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HomeMy WebLinkAbout08-27-2001MINUTES MAPLEWOOD CITY COUNCIL 7:00 P.M., Monday, August 27, 2001 Council Chambers, Municipal Building Meeting No. 01-18 A. B. C. D. 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 Cardinal. PLEDGE OF ALLEGIANCE ROLL CALL Robert Cardinal, Mayor Present Sherry Allenspach, Councilmember Present Kenneth V. Collins, Councilmember Present Marvin C. Koppen, Councilmember Present Julie A. Wasiluk, Councilmember Present APPROVAL OF MINUTES: Councilmember Collins seconded the motion to the Massage Therapy Ordinance. Councilmember Collins moved to approve the minutes of Meeting No. 01-17 (August 13, 2001) as amended. Seconded by Councilmember Allenspach Ayes- Mayor Cardinal, Councilmembers Allenspach, Wasiluk, Collins Abstain-Councilmember Koppen Councilmember Collins was present at the meeting and arrived shortly after 6:00. Councilmember Collins moved to approve the minutes of CounciUManager Worksho~(August 13. 2001) as amended. Seconded by Councilmember Wasiluk Ayes- Mayor Cardinal, Councilmembers Allenspach, Wasiluk, Collins Abstain-Councilmember Koppen E. APPROVAL OF AGENDA: M 1. Preliminary Approval of Tax Levy M2. Harvest Festival N1. Announcements Open House New Fire Station Councilmember Wasiluk moved to approve the Agenda as amended. Seconded by Councilmember Collins Ayes-All F. APPOINTMENTS/PRESENTATIONS None G. CONSENT AGENDA: Councilmember Collins moved to approve the Consent Agenda items 1-2 and 4-10. Seconded by Councilmember Wasiluk Ayes-All Councilmember Koppen moved to approve Consent Agenda item 3. Seconded by Councilmember Wasiluk 1. Approval of Claims Ayes-Councilmembers Allenspach, Wasiluk, Koppen and Collins Abstain-Mayor Cardinal ACCOUNTS PAYABLE $1,666.00 Checks #55018 thru #55019 dated 8/7 thru 8/9/01 $505,758.92 Checks #55020 thru #55106 dated 8/10 thru 8/14/01 $77,544.40 Disbursements via debits to checking account dated 8/7 thru 8/10/01 $2,401.25 Checks #55107 thru #55108 dated 8/14/01 $118,283.38 Checks #55109 thru #55166 dated 8/21/01 $166,996.39 Disbursements via debits to checking account dated 8/13 thru 8/20/01 $872,650.34 Total Accounts Payable PAYROLL $353,519.71 Payroll Checks and Direct Deposits dated 8/17/01 $25,937.64 Payroll Deduction check #85309 thru #85313 dated 8/17/01 $379,457.35 Total Payroll $1,252,107.69 GRAND TOTAL 2 2. Annual Maplewood Historical Society Payment Authorized a $2000 payment to the Maplewood Historical Society in the city's budget each year. 3. Conditional Use Permit Review-Feed Products (Bulk Storage) (1300 McKnight Road) Approved the review of the conditional use permit for Feed Products and Service, 1300 McKnight Road, in one year. 4. Independent Estates Final Plat (Tilsen Court, west of Lakewood Drive) Approved the Independent Estates Final Plat. This approval is subject to the county recording the deed restriction and covenants required by the city. 5. Recreation Program Donation Accepted the donation and the requests that the finance department place the funds in the proper account for future distribution. 6. Lease Purchase-Ricoh Copier Approved the recommendation for the city manager and the city clerk to enter into a lease agreement with Metro Sales for a new copier. 7. Temporary Food and Beer License-St. Jerome's Catholic Church Approved the applications for temporary beer and food to St. Jerome's Catholic Church. 8. Request from U. S. Bench Corporation Approved the transfer of the currently licensed benches from American Courtesy Bench to United States Bench Corporation. 9. Special Use Permit-Ramsey County Sheriffs Department-Fright Farm Approved the permit for the Ramsey County Sheriffs Department to hold their annual "Fright Farm", October 19-20 and October 26-31. 10. Transfer of Funds-Contingency Account-General Fund Election Approved the transfer of $700 from the city contingency account to the City Clerk Election Budget to cover the cost of notification mailing. H. PUBLIC HEARINGS 1. 7:00 P.M. Maplewood Business Subsidy Policy a. Mayor Cardinal convened the meeting for a public hearing. b. City Manager Fursman introduced the staff report. c. Assistant City Manger Coleman presented the specifics of the report. d. Mayor Cardinal opened the public hearing, calling for proponents or opponents. The following persons were heard: Dan Hartman, Springstead Financial Advisor George Rossbach, 1406 E. County Road C, Maplewood e. Mayor Cardinal closed the public hearing. Councilmember Collins moved to adopt the following business subsidypolicy that has Maplewood's criteria and proiect review policies, procedures and criteria for anyproiect or property that would receive a subsidy from Maplewood: MAPLEWOOD BUSINESS SUBSIDY POLICY PURPOSE AND AUTHORITY O 1 The purpose of this document is to establish the criteria for the City of Maplewood (the "Grantor") for granting of business subsidies for private development. Maplewood shall use the criteria as a guide in the processing and reviewing applications requesting business subsidies. 02 The City's ability to grant business subsidies is governed by the limitations established in Minnesota Statutes 1167.993 through 1167.994 (the "Statutes"). 03 Unless specifically excluded by the Statutes, business subsidies include grants by state or local government agencies, contributions of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient of the subsidy, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government facilities given to a business. 1.04 These criteria are to be used in conjunction with other relevant policies of the Grantor. 1.05 The City may deviate from these criteria by documenting in writing the reason(s) for the deviation. The documentation shall be submitted to the Department of Trade and Economic Development with the neat annual report. 1.06 The Grantor may amend this document at any time. Amendments to these criteria are subject to public hearing requirements contained in the Statutes. 2 PUBLIC PURPOSE REQUIREMENT 2.01 All business subsidies must meet a public purpose. 2.02 The creation or retention of jobs maybe, but is not required to be, a public purpose for granting a subsidy. The determination that jobs are not a public purpose for the subsidy and that the related wage and job goals are zero shall be made following a public hearing. 2.03 Job retention may only be used as a public purpose in cases where job loss is specific and demonstrable. The City shall document the information used to determine the nature ofthe job loss. 2.04 The creation of tax base shall not be the sole public purpose of a subsidy. 2.05 The wage floor for wages to be paid for the jobs created shall be $10.50 hour. The $10.50 wage floor is the minimum that the city will accept. In most cases the city will require higher than minimum wages in order to meet the intent and public purpose of the subsidy policy. 3 BUSINESS SUBSIDY APPROVAL CRITERIA 3.01 All new projects approved by Maplewood should meet the following minimum approval criteria. However, it should not be presumed that a project meeting these criteria would automatically be approved. Meeting these criteria creates noncontractual rights on the part of any potential developer. 3.02 To be eligible to receive a business subsidy, the recipient must meet the following minimum requirements: a. The subsidy must achieve a public purpose. b. The project must meet local plans and ordinances. a The recipient shall provide information demonstrating that granting the subsidy is necessary for the proposed development to occur. d. The recipient enters into an agreement pursuant to these criteria and the Statutes. 3.03 The business subsidy shall be provided within applicable state legislative restrictions, debt limit guidelines, and other appropriate financial requirements and policies. 04 The project must be in accord with the Comprehensive Plan and Zoning Ordinances, or required changes to the plan and Ordinances must be under active consideration by the City at the time of approval. 3.05 Maplewood will not provide business subsidies to projects that have the financial feasibility to proceed without the benefit of the subsidy. In effect, the city will not provide business subsidies solely to broaden a developer's profit margins on a project. Before considering a business subsidy request, the Grantor may undertake the help of independent firms before underwriting the project to help ensure that the request for assistance is valid. 06 Before approval of a business subsidy, the developer shall provide any required market and financial feasibility studies, appraisals, soil boring, information provided to private lenders for the project, and other information or data that the Grantor or its financial consultants may require in order to proceed with an independent underwriting. 07 Any developer requesting a business subsidy should be able to demonstrate past successful general development capability as well as specific capability in the type and size of development proposed. 3.08 The developer must retain ownership of the project at least long enough to complete it, to stabilize its occupancy, to establish the project management, and to initiate repayment of the business subsidy, if applicable. 09 A recipient of a business subsidy must enter into a subsidy agreement with the Grantor as described in Section 4. 10 A recipient of a business subsidy must make a commitment to continue operations within the City for at least five years after the benefit date. 11 Any business subsidy will be the lowest possible level and least amount of time necessary, after the recipient maximizes the use of private debt and equity financing first. 4 SUBSIDY AGREEMENT 4.01 In granting a business subsidy, the Grantor shall enter into a subsidy agreement with the recipient that provides the information, wage and job goals, a commitmentto provide necessary reporting data and recourse for failing to meet goals required by the Statutes. 4.02 The subsidy agreement maybe incorporated into a broader development agreement for a project. 4.03 The subsidy agreement will describe the requirements for the recipient to provide the reporting information required by the Statutes. Seconded by Councilmember Koppen Ayes-All 2. 7:10 P. M. Alamo Car Rental Conditional Sue Permit (2525 White Bear Avenue) a. Mayor Cardinal convened the meeting for a public hearing. b. City Manager Fursman introduced the staff report. c. Assistant City Manger Coleman presented the specifics of the report. d. Commissioner Eric Ahlness presented the Planning Commission report. e. Mayor Cardinal opened the public hearing, calling for proponents or opponents. The following person(s) was/were heard: Steve Lewis, District Manager of Alamo Car Rental, 8000 Knox Ave., Bloomington, MN Mayor Cardinal closed the public hearing. Councilmember Allenspach moved to adopt the following resolution that approved a conditional use permit for rental of motor vehicles at Maplewood Auto Center, 2525 White Bear Avenue. RESOLUTION O1-08-68 CONDITIONAL USE PERMIT RESOLUTION WHEREAS, Alamo Car Rental applied for a conditional use permit for the rental of motor vehicles at the Maplewood Auto Center: WHEREAS, this permit applies to property located at 2525 White Bear Avenue. The legal description is: SUBJECT TO EASEMENTS: N 280 FEET OF LOT 2 & ALL OF LOT 1 BLOCK 1, MAPLE RIDGE MALL (PIN 11-29-22-22-0040) WHEREAS, the history of this conditional use permit is as follows: On August 6, 2001, the planning commission recommended that the city council approve this permit. 2. On August 27, 2001, the city council held a public hearing. The city staff published a notice in the paper and sent notices to the surrounding property owners. The council gave everyone at the hearing a chance to speak and present written statements. The council also considered reports and recommendations of the city staff and planning commission. NOW, THEREFORE, BE IT RESOLVED that the city council approves the above-described conditional use permit based on the building and site plans. The city approved this permit because: The use would be located, designed, maintained, constructed and operated to be in conformity with the city's comprehensive plan and code of ordinances. 2. The use would not change the existing or planned character of the surrounding area. 3. The use would not depreciate property values. 4. The use would not involve any activity, process, materials, equipment or methods of operation that would be dangerous, hazardous, detrimental, disturbing or cause a nuisance to any person or property, because of excessive noise, glare, smoke, dust, odor, fumes, water or air pollution, drainage, water runoff, vibration, general unsightliness, electrical interference or other nuisances. 5. The use would generate only minimal vehicular traffic on local streets and would not create traffic congestion or unsafe access on existing or proposed streets. 6. The use would be served by adequate public facilities and services, including streets, police and fire protection, drainage structures, water and sewer systems, schools and parks. 7. The use would not create excessive additional costs for public facilities or services. 8. The use would maximize the preservation of and incorporate the site's natural and scenic features into the development design. 9. The use would cause minimal adverse environmental effects. Approval is subject to the following conditions: 1. All construction of the Alamo Car Rental business shall follow the site plan approved by the city. The director of community development may approve minor changes. 2. The proposed motor vehicle rental use must be substantially started within one year of council approval or the permit shall become null and void. The council may extend this deadline for one year. 3. The city council shall review this permit in one year. 4. The owner of the Maplewood Auto Center at 2525 White Bear Avenue will do the following on the site as required by city code and community design review board original conditions prior to Alamo Car Rental obtaining a conditional use permit: a. Ensure that there is no illegal parking on the site including no parking on the grass and no stacking of vehicles (i.e., two vehicles to one stall). b. Ensure that the entire site is cleared of trash including all illegally dumped material located within the drainage ditch behind the auto mall. c. Ensure that the trash dumpster is placed inside the dumpster enclosure at all times. d. Ensure that the site is in compliance with the city's temporary sign ordinance including obtaining a sign permit for all temporary signs over 16 square feet and only allowing one temporary sign per business located within the center. e. Ensure that all landscaped areas are maintained including removing all weeds from the landscaped area around the base of the center's pylon sign. f Replace the following missing signs on the site as specified in the community design review board's conditions for approval of the development: a stop sign and a no left turn sign to be located at the exit onto White Bear Avenue. g. Submit a revised landscape plan to the city for approval. The landscape plan must show the replacement of 14 trees and 28 shrubs (species and location may vary from original plan). h. Submit a letter of credit to the city to cover the installation and materials required by the approved landscape plan. 5. The required landscaping must be installed by May 1, 2002, or earlier. Seconded by Councilmember Koppen Ayes-All 3. 7:20 P. M. Family Service Center Conditional Use Permit (2525 White Bear Ave.) a. Mayor Cardinal convened the meeting for a public hearing. b. City Manager Fursman introduced the staff report. c. Assistant City Manger Coleman presented the specifics of the report. d. Mayor Cardinal opened the public hearing, calling for proponents or opponents. The following person(s) was/were heard: George Rossbach, 1406 E. County Road C, Maplewood e. Mayor Cardinal closed the public hearing. Councilmember Wasiluk moved adopt the following resolution that changes the conditions of approval for the Ramsey Coun . Family Service Center at 2001 Van Dyke Street: RESOLUTION 01-08-69 CONDITIONAL USE PERMIT REVISION RESOLUTION WHEREAS, Maplewood city staff initiated a revision to the conditional use permit for the Ramsey County Family Service Center. WHEREAS, this permit applies to the facility at 2001 Van Dyke Street that is northeast of the Ramsey Nursing Home. The legal description is: SUBJ TO AVE THE W 620 FT OF N 438 FT OF SW 1/4 AND W 620 FT OF S 235 8/10 FT OF NW 1/4 ALSO N 52 FT OF S 287 8/10 FT OF W 160 05/100 SD NW 1/4 ALL IN SEC 14 TN 29 RN 22 AND SUBJ TO AVES AND ESMTS AND EX W 620 FT OF N 438 FT THE W 810 FT OF N 2 OF SW 1/4 OF SEC 14 TN 29 RN 22 WHEREAS, the history of this conditional use permit is as follows: 1. On January 25, 1999, the city council held a public hearing. City staff published a notice in the paper and sent notices to the surrounding property owners. The council gave everyone at the hearing a chance to speak and present written statements. The council also considered reports and recommendations from the city staff and planning commission. The city council approved the conditional use permit for this facility at this meeting, subject to several conditions. 2. On August 27, 2001, the city council held a public hearing to consider a change to the conditions of approval for the conditional use permit. City staff published a notice in the paper and sent notices to the surrounding property owners. The council gave everyone at the hearing a chance to speak and present written statements. The council also considered reports and recommendations from the city staff. NOW, THEREFORE, BE IT RESOLVED that the city council approve the above-described conditional use permit revision, because: 1. The use would be located, designed, maintained, constructed and operated to be in conformity with the city's comprehensive plan and code of ordinances. 2. The use would not change the existing or planned character of the surrounding area 3. The use would not depreciate property values. 4. The use would not involve any activity, process, materials, equipment or methods of operation that would be dangerous, hazardous, detrimental, disturbing or cause a nuisance to any person or property, because of excessive noise, glare, smoke, dust, odor, fumes, water or air pollution, drainage, water runoff, vibration, general unsightliness, electrical interference or other nuisances. 5. The use would generate only minimal vehicular traffic on local streets and would not create traffic congestion or unsafe access on existing or proposed streets. 6. The use would be served by adequate public facilities and services, including streets, police and fire protection, drainage structures, water and sewer systems, schools and parks. 7. The use would not create excessive additional costs for public facilities or services. 8. The use would maximize the preservation of and incorporate the site's natural and scenic features into the development design. 9. The use would cause minimal adverse environmental effects. Approval is subject to the following revised conditions: 1. All construction shall follow the site plan approved by the city. The director of community development may approve minor changes. 2. The proposed construction must be substantially started within one year of council approval or the permit shall become null and void. The council may extend this deadline for one year. 3. The city council shall review this permit in one year. 4. The county shall add more parking to the site if the city council deems it necessary. ...a w..~.:,..,..,.w~:,.~........ 56. There shall be no increase in size or capacity of the structure. 6~. The County shall assume financial responsibility for all services provided to the residents of the Shelter that would normally be charged to the citizens (Example: Ambulance and paramedic runs) 7~ All elements of the listed Emergency Housing Program Parameters shall remain in force unless a change is agreed to by the City Council at a subsequent CUP review. 10 8. Ramsey County agrees to spend at least $70.000 on improvements to the county fairgrounds and campus such as new lighting, a sign plan, apedestrian/traffic safety plan and staff/consultant time for working on grants for the restoration of the county barn. All such plans or improvements shall be reviewed and approved by city staff It is further requested that the County Fair Board Review and comment on improvements on the campus. Ramsey County also shall donate $70,000 to Maplewood for building repair or improvements at the Bruentrup farm at 2170 County Road D. The County shall make this payment to Maplewood by October 1, 2001, unless the city council agrees to atime extension. 9~. Parking spaces on the North side of the designated East -West Van Dyke Ave. Shall be redesigned in accordance with the concerns of the Fair Board in the use of this area The new layout shall meet the approval of the fair Board and the City. Each year at a prearranged time before and during fair week, all these new parking areas shall be evacuated from the use of the fair board at their discretion, if the use of these is to be an advantage to them. 103. If at any time, the City Council determines there is a need, the County will contract for, or provide from their own staff, security patrols in the complex bounded by the Willard Munger Trail, White Bear Avenue, Ripley Street, and the Goodrich Golf course. Times and extent of the patrol will be established at that point in time. 11~ 4. This Conditional Use Permit will be reviewed annually, and if in the opinion of the City Council, any evidence of negative repercussion to the area, or valid reason that the facility has caused undue hardship to the residents, the city may revoke the Conditional Use Permit with no financial obligation to the city, and the normal amortization process would not apply. The County would then have one hundred and twenty (120) days to cease operations as a homeless shelter and devote the structure to an acceptable planned backup use such as elderly care. 12~H. Ramsey County shall be responsible for the maintenance and plowing on the sidewalk along White Bear Avenue from the County facilities to the Gateway Trail. Seconded by Councilmember Koppen Ayes-All 4. 7:30 P.M. Farm Zoning a. Mayor Cardinal convened the meeting for a public hearing. b. City Manager Fursman introduced the staff report. c. Assistant City Manager Coleman presented the specifics of the report. 11 d. Commissioner Eric Ahlness presented the Planning Commission. e. Mayor Cardinal opened the public hearing, calling for proponents or opponents. Mayor Cardinal closed the public hearing. Councilmember Collins moved to adopt the following ordinance amendment in order to allow landscaping and other similar businesses in the farm zone with a conditional use permit: ORDINANCE 814 AN ORDINANCE AMENDING THE FARM RESIDENCE DISTRICT The Maplewood City Council approves the following changes to the Maplewood Code of Ordinances: Section 1. This amendment adds subdivision (5) to Section 36-52 (Farm Residence District Conditional Uses) (additions are underlined): Section 36-52. Conditional uses. The following uses maybe permitted by conditional use permit: (1) Any use allowed by conditional use in the R-1 Residence District, except that equipment and vehicles used for on-site farming or equipment and vehicles used for an on-site landscaping business, or any other similar business approved with a conditional use permit as described in Section 36-52(~ below, shall be a permitted use. As an accessory use to residential property, a landscaping business, or any other similar use that is determined to be the same general character as a landscape business, if on a parcel of land which is four (4) acres or lamer. Where there is a question concerning the appropriateness of a similar use as a conditional use within the farm residence district, the planning commission shall review the question and forward a recommendation to the city council for final determination. The landscaping or similar type business must meet the findings for a conditional use permit as well as the followine: a. No exterior storage of commercial vehicles, equipment, or material associated with the business. Storage of these items must be in an approved accessory structure that meets the findings below: 1. The accessory structure must meet the size and heieht reauirements as snecified in Section 36-77 (Accessory Structures 2. When adjacent a residential lot, the accessory structure must comply with the setback requirements specified in Section 36-28(c)(6)(b) (Additional Design Standards). When adiacent to a commercial lot, the accessory structure must comply with Section 36-71 and 36-72 (Residential Side and Rear Setbacks for Accessory Structures 3. When adjacent a residential lot, the accessory structure, and other areas of the lot where deemed necessary, shall comply with Section 36-27(a), (b), (c), and (d) (Landscaping and Screening). b. No more than one (1) nonresident employee shall be allowed to work on the premises. a The hours of operation are limited to 7 am. to 7 p.m., Monday through Saturday. 12 Seconded by Councilmember Koppen Ayes-All 5. 7:40 P.M. Code Amendment-Rezoning (First Reading) a. Mayor Cardinal convened the meeting for a public hearing. b. City Manager Fursman introduced the staff report. c. Assistant City Manager Coleman presented the specifics of the report. d. Mayor Cardinal opened the public hearing, calling for proponents or opponents. d. Mayor Cardinal closed the public hearing. Councilmember Wasiluk moved adopt the following ordinance amendment changing the voting requirement for zoning code amendments and zoning map changes: ORDINANCE 815 AN ORDINANCE AMENDING THE AMENDMENTS AND CHANGES ARTICLE Section 1. This amendment revises Section 36-484 (Council Vote Required) (additions are underlined and deletions are stricken): Section 36-484. Council vote required. The city council may adopt and amend a zoning ordinance, including an amendment to this chapter which includes the zoning map, by a maiority *~- vote of all its members. An exception to this requirement is the adoption or amendment of any portion of a zoning ordinance that changes all or part of the existing classification of a zoning district from residential to commercial or industrial. In this case, the city council must approve such a change by atwo-thirds majority vote of all its members. Seconded by Councilmember Koppen Ayes-All I. AWARD OF BIDS None J. UNFINISHED BUSINESS 1. Adopt Resolution Accepting Preliminary Report and calling For Public Hearing for Bush Avenue Improvements City Project 01-04 a. City Manager Fursman introduced the staff report. b. Assistant City Engineer Chris Cavett presented the specifics of the report. Councilmember Allenspach moved to adopt the following resolution that accepts the preliminary report and calling for a public hearing for September 10, 2001 for the Bush Avenue Reconstruction Project 13 RESOLUTION 01-08-70 ACCEPTING REPORT AND CALLING FOR PUBLIC HEARING WHEREAS, pursuant to resolution of the council adopted July 9, 2001, a report has been prepared under the direction of the city engineer by TKDA Engineers with reference to the improvement of Bush Avenue between Bartelmy Lane and Stillwater Road, City Project 01-04, and this report was received by the council on August 27, 2001, and WHEREAS, the report provides information regarding whether the proposed project is necessary, cost-effective, and feasible, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD, MINNESOTA: 1. The council will consider the improvement of such street in accordance with the report and the assessment of abutting property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429 at an estimated total cost of the improvement of $325,000. 2. A public hearing shall be held on such proposed improvement on the l0a' day of September, 2001, in the council chambers of city hall at 7 p.m. and the clerk shall give mailed and published notice of such hearing and improvement as required by law. Seconded by Councilmember Koppen Ayes -All K. NEW BUSINESS 1. Preliminary Approval for Issuance of Equipment Certificates, Improvement Bonds, and Refunding Bonds a. City Manager Fursman introduced the staff report and presented the specifics of the report. b. The following people were heard: Dan Hartman, Briggs & Morgan Councilmember Collins moved to approve the following resolution for option two, the General Obligation Equipment Certificate: RESOLUTION 01-08-71 RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $690,000 GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2001A A. WHEREAS, the City Council of the City of Maplewood, Minnesota (the "City"), has heretofore determined that it is necessary and expedient to issue its $690,000 General Obligation Equipment Certificates of Indebtedness, Series 2001A (the "Certificates") to finance the cost of acquisition and installation of equipment for the City's Communication Center; and 14 B. WHEREAS, the City has retained Springsted Incorporated, in Saint Paul, Minnesota ("Springsted"), as its independent financial advisor and is therefore authorized to sell these obligations by a competitive negotiated sale in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Maplewood, Minnesota, as follows: 1. Authorization. The City Council hereby authorizes Springsted to solicit proposals for the competitive negotiated sale of the Certificates. 2. Meeting; Proposal Opening. This City Council shall meet at the time and place specified in the Terms of Proposal attached hereto as Exhibit A for the purpose of considering sealed proposals for, and awarding the sale of, the Certificates. The Clerk or designee, shall open proposals at the time and place specified in such Terms of Proposal. 3. Terms of Proposal. The terms and conditions of the Certificates and the negotiation thereof are fully set forth in the "Terms of Proposal" attached hereto as Exhibit A and hereby approved and made a part hereof. 4. Official Statement. In connection with said competitive negotiated sale, the Clerk and other officers or employees of the City are hereby authorized to cooperate with Springsted and participate in the preparation of an official statement for the Certificates, and to execute and deliver it on behalf of the City upon its completion. Mayor Cardinal seconded. Ayes-Mayor Cardinal, Councilmembers Allenspach, Wasiluk and Collins Nays-Councilmember Koppen Councilmember Koppen moved to approve the following resolution providing for the competitive negotiated sale of $3,280,000 General Obligation Improvements Bonds, Series 2001B. 15 RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $3,280,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2001B A. WHEREAS, the City Council of the City of Maplewood, Minnesota (the "City"), has heretofore determined that it is necessary and expedient to issue its $3,280,000 General Obligation Improvement Bonds, Series 2001B (the "Bonds") to finance the cost of various improvement projects in the City; and B. WHEREAS, the City has retained Springsted Incorporated, in Saint Paul, Minnesota ("Springsted"), as its independent financial advisor and is therefore authorized to sell these obligations by a competitive negotiated sale in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Maplewood, Minnesota, as follows: 1. Authorization. The City Council hereby authorizes Springsted to solicit proposals for the competitive negotiated sale of the Bonds. 2. Meeting: Proposal Opening. This City Council shall meet at the time and place specified in the Terms of Proposal attached hereto as Exhibit A for the purpose of considering sealed proposals for, and awarding the sale of, the Bonds. The Clerk or designee, shall open proposals at the time and place specified in such Terms of Proposal. 3. Terms of Proposal. The terms and conditions of the Bonds and the negotiation thereof are fully set forth in the "Terms of Proposal" attached hereto as Exhibit A and hereby approved and made a part hereof. 4. Official Statement. In connection with said competitive negotiated sale, the Clerk and other officers or employees of the City are hereby authorized to cooperate with Springsted and participate in the preparation of an official statement for the Bonds, and to execute and deliver it on behalf of the City upon its completion. Councilmember Koppen seconded Ayes-All Mayor Cardinal moved to approve the following resolution accepting the General Obligation Improvement Refunding Bonds, Series 2001C: RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $1,030,000 GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 2001C A. WHEREAS, the City Council of the City of Maplewood, Minnesota (the "City"), has heretofore determined that it is necessary and expedient to issue its $1,030,000 approximate principal amount of General Obligation Improvement Refunding Bonds, Series 2001C (the "Bonds") to currently refund on February 1, 2002, the 2003 through 2008 maturities, totaling $1,835,000 in principal 16 amount of the City's outstanding General Obligation Improvement Refunding Bonds, Series 1992A, dated December 1, 1992; and B. WHEREAS, the City has retained Springsted Incorporated, in Saint Paul, Minnesota ("Springsted"), as its independent financial advisor and is therefore authorized to sell these obligations by a competitive negotiated sale in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Maplewood, Minnesota, as follows: 1. Authorization. The City Council hereby authorizes Springsted to solicit proposals for the competitive negotiated sale of the Bonds. 2. Meeting; Proposal Opening. This City Council shall meet at the time and place specified in the Terms of Proposal attached hereto as Exhibit A for the purpose of considering sealed proposals for, and awarding the sale of, the Bonds. The Clerk or designee, shall open proposals at the time and place specified in such Terms of Proposal. 3. Terms of Proposal. The terms and conditions of the Bonds and the negotiation thereof are fully set forth in the "Terms of Proposal" attached hereto as Exhibit A and hereby approved and made a part hereof. 4. Official Statement. In connection with said competitive negotiated sale, the Clerk and other officers or employees of the City are hereby authorized to cooperate with Springsted and participate in the preparation of an official statement for the Bonds, and to execute and deliver it on behalf of the City upon its completion. THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $1,030,000* CITY OF MAPLEWOOD, MINNESOTA GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 2001C (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Thursday, October 4, 2001, until 10:00 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 5:00 P. M., Central Time, of the same day. SUBMISSION OF PROPOSALS Proposals maybe submitted in a sealed envelope or by fax (651) 223-3046 to Springsted. Signed Proposals, without final price or coupons, maybe submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale 17 specified above. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner of the Proposal submitted. DETAILS OF THE BONDS The Bonds will be dated November 1, 2001, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 2002. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature February 1 in the years and amounts as follows: 2003 $290,000 2004 $270,000 2005 $255,000 2006 $120,000 2007 $55,000 2008 $40,000 * The City reserves the right, after roposals are opened and prior to award, to increase or reduce the principal amount o{{the Bonds o eyed or sale. Any such increase or reducrion will be in a total amount not to exceed $50, D00 and will e made in multiples of $5, 000 in any of the maturiries. In the event the principal amount o the Bonds is increased or reduced, any premium offered or any discount taken by the successful bid er will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced. Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds, provided that no serial bond may mature on or after the first mandatory sinking fund redemption date of any term bond. All term bonds shall be subject to mandatory sinking fund redemption and must conform to the maturity schedule set forth above at a price of par plus accrued interest to the date of redemption. In order to designate term bonds, the proposal must specify "Last Year of Serial Maturities" and "Years of Term Maturities" in the spaces provided on the Proposal Form. BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds maybe made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. 18 OPTIONAL REDEMPTION The City may elect on February 1, 2006, and on any day thereafter, to prepay Bonds due on or after February 1, 2007. Redemption maybe in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge special assessments against benefited property previously pledged to the City's General Obligation Improvement Refunding Bonds, Series 1992A. The proceeds will be used to refund the 2003 through 2008 maturities of the City's General Obligation Improvement Refunding Bonds, Series 1992A, dated December 1, 1992. TYPE OF PROPOSALS Proposals shall be for not less than $1,022,790 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $10,300, payable to the order of the City. If a check is used, it must accompany the proposal If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond maybe drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in level or ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefore at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser through DTC in New York, New York. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE On the date of actual issuance and delivery of the Bonds, the City will execute and deliver a Continuing Disclosure Undertaking (the "Undertaking") whereunder the City will covenant for the benefit of the owners of the Bonds to provide certain financial and other information about the City and notices of certain occurrences to information repositories as specified in and required by SEC Rule 15c2-12(b)(5). OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as anearly-final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (651) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 40 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Seconded by Councilmember Koppen Ayes -All Councilmember Allenspach moved to schedule the second special meeting for October 4, 2001. Seconded by Councilmember Koppen. Ayes-All 2. Schroeder Milk Expansion Final Development Agreement (2080 Rice Street) a. City Manager Fursman introduced the staff report. b. Assistant City Manger Coleman presented the specifics of the report. Councilmember Koppen moved to approve the following development agreement for the tax- increment financing for the expansion of the Schroeder Mild processing plant at 2080 Rice Street. DEVELOPMENT AGREEMENT BY AND BETWEEN CITY OF MAPLEWOOD AND SCHROEDER MILK CO. DEVELOPMENT AGREEMENT THIS AGREEMENT, made as of the 27~' day of August, 2001, by and between the City of Maplewood, Minnesota (the "City"), a municipal corporation existing under the laws of the State of Minnesota and Schroeder Milk Co. (the "Developer"), a Minnesota corporation. WITNESSETH: WHEREAS, pursuant to Minnesota Statutes, Section 469.124 to 469.134, the City has heretofore established Development District No. 1 (the "Development District') and has adopted a Development Program therefor (the "Development Program"); and WHEREAS, pursuant to the provisions of Minnesota Statutes, Section 469.174 through 469.179, as amended (hereinafter, the "Tax Increment Act'), the City has heretofore created on August 13, 2001, within the Development District, Economic Development District No. 1-5 (the "Tax Increment District') and has adopted a tax increment financing plan therefor (the "Tax Increment Plan") which provides for the use of tax increment financing in connection with certain development within the Development District; and WHEREAS, in order to achieve the objectives of the Development Program and particularly to make the land in the Development District available for development by private enterprise in conformance with the Development Program, the City has determined to assist the Developer with the financing of certain costs of a Project (as hereinafter defined) to be constructed within the Tax Increment District as more particularly set forth in this Agreement; and WHEREAS, the City believes that the development and construction of the Project, and fulfillment of this Agreement are vital and are in the best interests of the City, the health, safety, morals and welfare of residents of the City, and in accordance with the public purpose and provisions of the applicable state and local laws and requirements under which the Project has been undertaken and is being assisted; and WHEREAS, the requirements of the Business Subsidy Law, Minnesota Statutes, Section 1167.993 through 1167.995, apply to this Agreement; and WHEREAS, the City has adopted criteria for awarding business subsidies that comply with the Business Subsidy Law, after a public hearing for which notice was published; and WHEREAS, the Council has approved this Agreement as a subsidy agreement under the Business Subsidy Law. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: ARTICLE I DEFINITIONS Section 1.1. Definitions. All capitalized terms used and not otherwise defined herein shall have the following meanings unless a different meaning clearly appears from the context: Agreement means this Agreement, as the same may be from time to time modified, amended or supplemented; Business Day means any day except a Saturday, Sunday or a legal holiday or a day on which banking institutions in the City are authorized by law or executive order to close; C~ means the City of Maplewood, its successors and assigns; Developer means Schroeder Milk Co., a Minnesota corporation, its successors and assigns; Development District means the real property included in the Development District No. 1 heretofore established; Development Program means the Development Program approved in connection with the Development District; Development Property means the real property described in Exhibit A attached to this Agreement; Event of Default means any of the events described in Section 5.1 hereof; Prime Rate means the rate of interest from time to time publicly announced by U. S. Bank National Association in St. Paul, Minnesota, as its "prime rate" or "reference rate" or any successor rate, which rate shall change as and when that rate or successor rate changes; Project means the development of an approximately 55,000 square foot expansion of the Developer's existing manufacturing facility to be constructed by the Developer on the Development Property; Site Improvements means the site improvements constructed or installed on the Development Property described in Exhibit B attached to this Agreement; State means the State of Minnesota; Tax Increments means 90% of the tax increments derived from the Development Property which have been received by the City in accordance with the provisions of Minnesota Statutes, Section 469.177; Tax Increment Act means Minnesota Statutes, Sections 469.174 through 469.179, as amended; Tax Increment District means Economic Development District No. 1-5 located within the Development District, a description of which is set forth in the Tax Increment Financing Plan, which was qualified as an economic development district under the Tax Increment Act; Tax Increment Financing Plan means the tax increment financing plan approved for the Tax Increment District by the City on August 13, 2001 and any future amendments thereto; and Unavoidable Delays means delays, outside the control of the party claiming its occurrence, which are the direct result of strikes, other labor troubles, unusually severe or prolonged bad weather, acts of God, fire or other casualty to the Project, litigation commenced by third parties which, by injunction or other similar judicial action or by the exercise of reasonable discretion, directly results in delays, or acts of any federal, state or local governmental unit (other than the City) which directly result in delays. ARTICLE II REPRESENTATIONS AND WARRANTIES Section 2.1. Representations and Warranties of the City. The City makes the following representations and warranties: (1) The City is a municipal corporation and has the power to enter into this Agreement and carry out its obligations hereunder. (2) The Tax Increment District is an "economic development district' within the meaning of Minnesota Statutes, Section 469.174, Subdivision 12, and was created, adopted and approved in accordance with the terms of the Tax Increment Act. (3) The development contemplated by this Agreement is in conformance with the development objectives set forth in the Development Program. (4) To finance certain costs within the Tax Increment District, the City proposes, subject to the further provisions of this Agreement, to apply Tax Increments to reimburse the Developer for a portion of the costs of the Site Improvements paid by the Developer as further provided in this Agreement. Section 2.2. Representations and Warranties of the Developer. The Developer makes the following representations and warranties: (1) The Developer is a Minnesota corporation and has the power to enter into this Agreement and to perform its obligations hereunder and is not in violation of the laws of the State. (2) The Developer shall cause the Project to be constructed in accordance with the terms of this Agreement, the Development District, and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, energy conservation, building code and public health laws and regulations). (3) The construction of the Project would not be undertaken by the Developer, and in the opinion of the Developer would not be economically feasible within the reasonably foreseeable future, without the assistance and benefit to the Developer provided for in this Agreement. (4) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provision of any contractual restriction, evidence of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (5) The Developer will cooperate fully with the City with respect to any litigation commenced with respect to the Project. (6) The Developer will cooperate fully with the City in resolution of any traffic, parking, trash removal or public safety problems which may arise in connection with the construction and operation of the Project. (7) The construction of the Project will commence on September 1, 2001 and, barring Unavoidable Delays, the Project will be substantially completed by August 1, 2002. ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY Section 3.1. Reimbursement of Costs. As consideration for the execution of this Agreement and the construction of the Project by the Developer, subj ect to the further provisions of this Agreement, including but not limited to the limitations on source of reimbursement and amount set forth in Section 3.3 hereof, the City agrees to reimburse the Developer for $500,000 of the cost of the Site improvements paid by the Developer (the "Reimbursement Amount'). The Developer shall upon installation or construction of the Site Improvements provide the City with paid invoices reflecting the cost of the Site Improvements in an amount not less than the Reimbursement Amount. Section 3.2. Limitations on Undertaking of the City. Notwithstanding the provisions of Sections 3.1, the City shall have no obligation to the Developer under this Agreement to reimburse the Developer for the Reimbursement Amount, if the City, at the time or times such payment is to be made is entitled under Section 4.2 to exercise any of the remedies set forth therein as a result of an Event of Default which has not been cured. Section 3.3. Limitation of Costs: Methods of Payment. (1) The sole source of funds from which the City is obligated to reimburse the Developer for the Reimbursement Amount is limited to Tax Increments and nothing herein shall be construed to obligate the City to use any of its general funds or other municipal funds to reimburse the Developer for such costs. (2) Provided that the Developer has supplied the City paid invoices required by Section 3.1 and no Event of Default shall have occurred and be continuing hereunder, the City shall reimburse the Developer the Reimbursement Amount from Tax Increments in the following manner: On February 1 and August 1 in each year, commencing on August 1, 2003, the City shall pay to the Developer Tax Increments that it received and retained during the preceding 6 month period. Such payments by the City to the Developer shall continue until the earlier of February 1, 2012 or the date that the Developer has received the Reimbursement Amount (the "Termination Date"). Section 3.4. Business Subsidies Act. (1) In order to satisfy the provisions of Minnesota Statutes, Sections 1167.993 to 1167.995 (the "Business Subsidies Act'), the Developer acknowledges and agrees that the amount of the "Business Subsidy" granted to the Developer under this Agreement is the Reimbursement Amount which is the Site Improvements paid by the Developer and reimbursed by Tax Increments and that the Business Subsidy is needed because the Development Property is not sufficiently feasible for the Developer to undertake without the Business Subsidy. The Tax Increment District is an economic development district and the public purpose of the Business Subsidy is to encourage the construction of manufacturing facilities in the City. The Developer agrees that it will meet the following goals (the "Goals': It will create at least 30 full time jobs in connection with the development of the Development Property at an hourly wage of at least $15.00 per hour within two years from the `Benefit Date", which is the date the Development Property is acquired by the Developer. (2) If the Goals are not met, the Developer agrees to repay all or a part of the Business Subsidy to the City, plus interest ("Interest') set at the implicit price deflator defined in Minnesota Statutes, Section 275.70, Subdivision 2, accruing from and after the Benefit Date, compounded semiannually. If the Goals are met in part, the Developer will repay a portion of the Business Subsidy (plus Interest) determined by multiplying the Business Subsidy by a fraction, the numerator of which is the number of jobs in the Goals which were not created at the wage level set forth above and the denominator of which is 30 (i.e. number of jobs set forth in the Goals). (3) The Developer agrees to (i) report its progress on achieving the Goals to the City until the Goals are met, or the Business Subsidy is repaid, whichever occurs earlier, (ii) include in the report the information required in Subdivision 7 of the Jobs Act on forms developed by the Minnesota Department of Trade and Economic Development, and (iii) send completed reports to the City. The Developer agrees to file these reports no later than March 1 of each year commencing March 1, 2002, and within 30 days after the deadline for meeting the Goals. The City agrees that if it does not receive the reports, it will mail the Developer a warning within one week of the required filing date. If within 14 days of the post marked date of the warning the reports are not made, the Developer agrees to pay to the City a penalty of $100 for each subsequent day until the report is filed up to a maximum of $1,000. (4) The Developer agrees to continue operations within the City for at least five (5) years after the Benefit Date. (5) There are no other state or local government agencies providing financial assistance for the Project other than the City. (6) There is no parent corporation of the Developer. ARTICLE IV EVENTS OF DEFAULT Section 4.1. Events of Default Defined. The following shall be "Events of Default' under this Agreement and the term "Event of Default' shall mean whenever it is used in this Agreement any one or more of the following events: (a) Failure by the Developer to timely pay any ad valorem real property taxes assessed with respect to the Development Property. (b) Failure of the Developer to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement. (c) The holder of any mortgage on the Development Property or any improvements thereon, or any portion thereof, commences foreclosure proceedings as a result of any default under the applicable mortgage documents. (d) If the Developer shall: (A) file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act of 1978, as amended or under any similar federal or state law; or (B) make an assignment for the benefit of its creditors; or (C) admit in writing its inability to pay its debts generally as they become due; or (D) be adjudicated a bankrupt or insolvent; or if a petition or answer proposing the adjudication of the Developer, as a bankrupt or its reorganization under any present or future federal bankruptcy act or any similar federal or state law shall be filed in any court and such petition or answer shall not be discharged or denied within sixty (60) days after the filing thereof; or a receiver, trustee or liquidator of the Developer, or of the Project, or part thereof, shall be appointed in any proceeding brought against the Developer, and shall not be discharged within sixty (60) days after such appointment, or if the Developer, shall consent to or acquiesce in such appointment. Section 4.2. Remedies on Default. Whenever any Event of Default referred to in Section 4.1 occurs and is continuing, the City, as specified below, may take any one or more of the following actions after the giving of thirty (30) days' written notice to the Developer, but only if the Event of Default has not been cured within said thirty (30) days: (a) The City may suspend its performance under this Agreement until it receives assurances from the Developer, deemed adequate by the City, that the Developer will cure its default and continue its performance under this Agreement. (b) The City may cancel and rescind the Agreement. (c) The City may take any action, including legal or administrative action, in law or equity, which may appear necessary or desirable to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement. Section 4.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the nondefanlting party is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power maybe exercised from time to time and as often as maybe deemed expedient. Section 4.4. No Implied Waiver. In the event any agreement contained in this Agreement should be breached by any party and thereafter waived by any other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 4.5. Agreement to Pay Attorney's Fees and Expenses. Whenever any Event of Default occurs and the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement or performance or observance of any obligation or agreement on the part of the Developer herein contained, the Developer agrees that it shall, on demand therefor, pay to the City the reasonable fees of such attorneys and such other expenses so incurred by the City. Section 4.6. Indemnification of City. (1) The Developer covenants and agrees that the City, its governing body members, officers, agents, including the independent contractors, consultants and legal counsel, servants and employees thereof (hereinafter, for purposes of this Section, collectively the "Indemnified Parties") shall not be liable for and agrees to indemnify and hold harmless the Indemnified Parties against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Project, provided that the foregoing indemnification shall not be effective for any actions of the Indemnified Parties that are not contemplated by this Agreement. (2) Except for any willful misrepresentation or any willful or wanton misconduct of the Indemnified Parties, the Developer agrees to protect and defend the Indemnified Parties, now and forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from the actions or inactions of the Developer (or if other persons acting on its behalf or under its direction or control) under this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Project; provided, that this indemnification shall not apply to the warranties made or obligations undertaken by the City in this Agreement or to any actions undertaken by the City which are not contemplated by this Agreement but shall, in any event and without regard to any fault on the part of the City, apply to any pecuniary loss or penalty (including interest thereon from the date the loss is incurred or penalty is paid by the City at a rate equal to the Prime Rate) as a result of the Project causing the Tax Increment District to not qualify or cease to qualify as an "economic development district" under Section 469.174, Subdivision 12, of the Act or to violate limitations as to the use of Tax Increments as set forth in Section 469.176, Subdivision 4c. (3) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City or the City and not of any governing body member, officer, agent, servant or employee of the City. ARTICLE V DEVELOPER'S OPTION TO TERMINATE AGREEMENT Section 5.1. The Developer's Option to Terminate. This Agreement may be terminated by Developer, if (i) the Developer is in compliance with all material terms of this Agreement and no Event of Default has occurred; and (ii) the City fails to comply with any material term of this Agreement, and, after written notice by the Developer of such failure, the City has failed to cure such noncompliance within ninety (90) days of receipt of such notice, or, if such noncompliance cannot reasonably be cured by the City within ninety (90) days, of receipt of such notice, the City has not provided assurances, reasonably satisfactory to the Developer, that such noncompliance will be cured as soon as reasonably possible. Section 5.2. Action to Terminate. Termination of this Agreement pursuant to Section 5.1 must be accomplished by written notification by the Developer to the City within sixty (60) days after the date when such option to terminate may first be exercised. A failure by the Developer to terminate this Agreement within such period constitutes a waiver by the Developer of its rights to terminate this Agreement due to such occurrence or event. Section 5.3. Effect of Termination. If this Agreement is terminated pursuant to this Article V, this Agreement shall be from such date forward null and void and of no further effect; provided, however, the termination of this Agreement shall not affect the rights of either party to institute any action, claim or demand for damages suffered as a result of breach or default of the terms of this Agreement by the other party, or to recover amounts which had accrued and become due and payable as of the date of such termination. Upon termination of this Agreement pursuant to this Article V, the Developer shall be free to proceed with the Project at its own expense and without regard to the provisions of this Agreement; provided, however, that the City shall have no further obligations to the Developer with respect to reimbursement of the expenses set forth in Section 3.2. ARTICLE VI ADDITIONAL PROVISIONS Section 6.1. Restrictions on Use. Until termination of this Agreement, the Developer agrees for itself, its successors and assigns and every successor in interest to the Development Property, or any part thereof, that the Developer and such successors and assigns shall operate, or cause to be operated, the Project as a manufacturing facility and shall devote the Development Property to, and in accordance with, the uses specified in this Agreement. Section 6.2. Conflicts of Interest. No member of the governing body or other official of the City or the City shall have any financial interest, direct or indirect, in this Agreement, the Development Property or the Project, or any contract, agreement or other transaction contemplated to occur or be undertaken thereunder or with respect thereto, nor shall any such member of the governing body or other official participate in any decision relating to the Agreement which affects his or her personal interests or the interests of any corporation, partnership or association in which he or she is directly or indirectly interested. No member, official or employee of the City shall be personally liable to the City in the event of any default or breach by the Developer or successor or on any obligations under the terms of this Agreement. Section 6.3. Titles of Articles and Sections. Any titles of the several parts, articles and sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 6.4. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by any party to any other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, and (a) in the case of the Developer is addressed to or delivered personally to: Schroeder Milk Co. 2080 Rice Street Maplewood, MN 55113 (b) in the case of the City is addressed to or delivered personally to the City at: City of Maplewood 1830 East County Road B Maplewood, MN 55109-2702 or at such other address with respect to any such party as that party may, from time to time, designate in writing and forward to the other, as provided in this Section. Section 6.5. Counterparts. This Agreement maybe executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 6.6. Law Governing. This Agreement will be governed and construed in accordance with the laws of the State. Section 6.7. Expiration. This Agreement shall expire on the Termination Date, unless earlier terminated or rescinded in accordance with its terms. Section 6.8. Provisions Surviving Rescission or Expiration. Sections 4.5 and 4.6 shall survive any rescission, termination or expiration of this Agreement with respect to or arising out of any event, occurrence or circumstance existing prior to the date thereof. Section 6.9. Assignability of Agreement. This Agreement maybe assigned only with the consent of the City. IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and on its behalf, and the Developer has caused this Agreement to be duly executed in its name and on its behalf and its seal to be hereunto affixed, on or as of the date first above written. Seconded by Councilmember Wasiluk Ayes-All 3. Cable Commission Resolution a. City Manager Fursman introduced the staff report and presented the specifics of the report. Councilmember Collins moved to adopt the following resolution which supports the elimination of the dual voting procedure utilized by the Ramsey-Washington Cable Commission II in lieu of the proportionaUWeightedrnethods of voting: RESOLUTION O1-08-74 SUPPORTING ELIMINATION OF THE DUAL VOTING PROCEDURE UTILIZED BY THE RAMSEY-WASHINGTON CABLE COMMISSION II IN LIEU OF THE PROPORITONAL/WEIGHTED METHOD OF VOTING WHEREAS, the Ramsey-Washington Cable Commission II will be considering a proposal to change its voting procedure; and WHEREAS, the City of Maplewood is opposed to the current dual voting procedure that is utilized by the Cable commission; and WHEREAS, the Maplewood believes that the weighted/proportional voting represents the most appropriate voting methodology. NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Maplewood hereby deems that should the voting procedures not be properly modified, the City of Maplewood recommends elimination of the dual voting process and support proportionaUweighted voting procedures. NOW THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Maplewood hereby deems that should the voting procedures not be properly modified, the City of Maplewood will have to consider other options with respect to its relationship with the Ramsey- Washington Cable Commission. Seconded by Mayor Cardinal Ayes-Mayor Cardinal, Councilmember Collins Nays-Councilmembers Wasiluk, Koppen, Allenspach L. VISITOR PRESENTATIONS 1. Handicapped Parking--Caroline Peterson, 1999 Jackson Street, thanked the city for the handicapped parking that was installed at City Hall. 2. Joy Park--Dave Johnson, 2587 Lydia, voiced a complaint about Joy Park. 3. Dispatch Referendum--Jerry Marki, 1247 Neuman Road, questioned why Dispatch was brought back when the citizens of Maplewood voted it down in November of 2000. M. COUNCIL PRESENTATIONS 1. Preliminary Approval of Tax Levy Councilmember Collins moved to accept the recommendation and adopt the resolution that will dive preliminar~pproval of the tax levy of $10.348.230 which will be a ceiling and which the prepared budget as presented is under the limit by $ 920,330. Councilmember Allenspach seconded Ayes-Mayor Cardinal, Councilmember Collins, Allenspach Nays-Councilmembers Koppen, Wasiluk 2. Harvest Festival The Payne/Arcade Harvest Festival will take place September 13-15. N. ADMINISTRATIVE PRESENTATIONS 1. The open house for the new fire station on Clarence Street will be on September 8, 10:00 - 2:00 p.m. O. ADJOURNMENT The meeting adjourned at 9:50 p.m.