HomeMy WebLinkAbout06-22-1998 MINUTES OF MAPLEWOOD CITY COUNCIL
7:00 P.M., Monday, June 22,1998
Council Chambers, Municipal Building
Meeting No. 98-13
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 Present
Kevin Kittridge, Councilmember Present
Marvin C. Koppen, Councilmember Absent
D. APPROVAL OF MINUTES:
1. Minutes of Council/Manager Workshop of June 1, 1998
Councilmember Carlson moved to approve the minutes ofthe CounciUManager Workshop ofJune
1, 1998 as presented.
Seconded by Councilmember Kittridge Ayes -all
2. Minutes of Regular Council Meeting #98-12 (June 8,1998)
Mayor Rossbach moved to approve the minutes of Regular Council Meeting No. 98-12 (June 8,
1998) as amended.
Seconded by Councilmember Allenspach Ayes -Rossbach, Allenspach, Kittridge
Abstain -Carlson
E. APPROVAL OF AGENDA:
Mayor Rossbach moved to approve the Agenda as submitted.
Seconded by Councilmember Allenspach Ayes -all
F. APPOINTMENTS/PRESENTATIONS
G. CONSENT AGENDA:
Mayor Rossbach moved, seconded by Councilmember Kittridge; ayes -all, to approve the Consent Agenda,
Items Gl - G12, as recommended.
1. Approval of Claims
Approved the following claims:
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ACCOUNTS PAYABLE:
$ 105,001.00 Checks #7521-#7533 dated 6-1-98 thru 6-5-98
$ 104,034.07 Checks #38107-#38243 dated 6-9-98
$ 1,350.00 Check #7534 dated 6-10-98
$ 188,912.64 Checks #38246-#38359 dated 6-16-98
$ 399,297.71 Total Accounts Payable
PAYROLL:
$ 291,812.61 Payroll Checks and Direct Deposits dated 6-12-98
$ 49,183.50 Payroll Deduction Checks #65874-#65888 dated 6-12-98
$ 340,996.11 Total Payroll
$ 740,293.82 GRAND TOTAL
2. Sanitary Sewer Connection Exception
Approved aten-year extension to the hookup exception for the homes at 980, 1020, 1060 and 1090
McKnight Road South.
3. Seniors and Others with Disabilities Committee 1997-1998 Annual Report
Accepted the 1997-1998 Maplewood Seniors and Persons with Disabilities Committee Annual
Report.
4. Resolution of Appreciation -John Bringewatt
Approved the following resolution:
98-06-57
RESOLUTION OF APPRECIATION FOR JOHN BRINGEWATT
WHEREAS, John Bringewatt has been a member of the Maplewood Seniors and Persons with
Disabilities Committee since October 9, 1996 and has served faithfully in that capacity; and
WHEREAS, the Committee has appreciated John's experience, insights and good judgment; and
WHEREAS, John has freely given his time and energy, without compensation, for the bettermentofthe
City of Maplewood; and
WHEREAS, John has shown dedication to his duties and has consistently contributedhis leadership and
effort for the benefit of the City.
NOW, THEREFORE, IT IS HEREBY RESOLVED for and on behalf of the City of Maplewood,
Minnesota, and its citizens, that John Bringewatt is hereby extended our gratitude and appreciation for his
dedicated service and we wish him continued success in the future.
5. Resolution of Appreciation -Joanne Rains
Approved the following resolution:
98-06-58
RESOLUTION OF APPRECIATION FOR JOANNE RAINS
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WHEREAS, Joanne Rains has been a member ofthe Maplewood Seniors and Persons with Disabilities
Committee since February 14, 1996 and has served faithfully in that capacity; and
WHEREAS, the Committee has appreciated Joanne's experience, insights and good judgment; and
WHEREAS, Joanne has freely given her time and energy, without compensation, for the betterment of
the City of Maplewood; and
WHEREAS, Joanne has shown dedication to her duties and has consistently contributed her leadership
and effort for the benefit of the City.
NOW, THEREFORE, IT IS HEREBY RESOLVED for and on behalf of the City of Maplewood,
Minnesota, and its citizens, that Joanne Rains is hereby extended our gratitude and appreciation for her
dedicated service and we wish her continued success in the future.
6. Oak Ridge Estates -Preliminary Plat Review
Approved aone-year time extension for Phase Four of the Oak Ridge Estates preliminary plat
(subject to the conditions approved on May 13, 1996).
7. Conditional Use Permit Review - 2570 White Bear Avenue (National Tire Warehouse)
Moved to defer the reviewal of the Conditional Use Permit for the National Tire Warehouse at
2570 White Bear Avenue only in the event that a problem arises or the owner proposes major
changes to the site.
8. Conditional Use Permit Review - 2194 Van Dyke Street (Launderville Towing)
Reviewed the Conditional Use Permit for Launderville Towing at 2194 Van Dyke Street and
moved to review the permit again in one year.
9. Conditional Use Permit Review - 500 Carlton Street (US West Monopole)
Moved to defer the reviewal of the Conditional Use Permit for the US West Monopole at 500
Carlton Street only in the event that a problem arises or the owner or operator proposes major
changes to the site.
10. Conditional Use Permit Review - 2345-2399 Ariel Street (Heather Ridge)
Reviewed the Conditional Use Permitfor Heather Ridge at 2345 to 2399 Ariel Street and moved
to review the permit again in one year.
11. Conditional Use Permit Review - 1815 Van Dyke Street (Goodrich Golf Dome)
Reviewed the Conditional Use Permit for 1815 Van Dyke Street.
12. Surplus Property -Public Works
Declared listed items as surplus and authorized their disposal.
H. PUBLIC HEARINGS
1. 7:06 P.M.: English Street, Larpenteur Ave. to Frost Ave., Project 96-19
Assessment Hearing
a. Mayor Rossbach convened the assessment hearingfor the English Street Improvements, Project
96-19.
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b. Attorney Steven Kelly explained the procedure for public hearing.
c. Manager McGuire introduced the staff report.
d. City Engineer Haider presented the specifics of the report.
e. Mayor Rossbach opened the public hearing, calling for proponents or opponents. The following
persons were heard:
Kathy Tvedt, 1761 English Street
Bob Long, 1870 English Street
Bob Hiele, Pastor, Lake Phalen Community Church
Bill Spateen, Member of Lake Phalen Community Church
f. Mayor Rossbach closed the public hearing.
g. Councilmember Carlson introduced the following Resolution and moved its adoption:
98-06-59
RESOLUTION ADOPTING THE ASSESSMENT ROLL FOR THE ENGLISH STREET
IMPROVEMENTS: PROJECT 96-19
WHEREAS, pursuant to proper notice duly given as required by law, the City Council has met and
heard and passed on all objections to the proposed assessment for the construction of English Street as
described in the files of the City clerk as Project 97-19, and has amended such proposed assessment as it
deems just,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD, MINNESOTA:
1. Such pproposed assessment, as amended, a copy ofwhich is attached hereto and made a part
hereoY; is hereby accepted and shall constitute the special assessment against the lands
named therein, and each tract of land therein included is hereby found to be benefited by the
proposed improvement in the amount of the assessment levied against it.
2. Such assessment shall be payable in equal annual installments extending over a period of
20, the first of the installments to be payable on or after the first Monday m January, 1999,
and shall bear interest at the rate of 6.1 percent per annum from the date ofthe adoption of
this assessment resolution. To the first installment shall be added interest on the entire
assessment from the date of this resolution until December 31, 1998. To each subsequent
installment when due shall be added interest for one year on all unpaid installments.
3. It is hereby declared to be the intention ofthe Council to reimburse itself in the future forthe
portion othhe cost ofthis improvement paid for from municipal funds by levying additional
assessments, on notice and hearing as provided for the assessments herein made, upon any
properties abutting on the improvement but not made, upon any properties abutting on the
improvement but not herein assessed for the improvement, when changed conditions relating
to such properties make such assessment feasible.
4. To the extentthatthis improvement benefits nonabutting properties which may be servedby
the improvement when one or more later extensions or improvements are made, but which
are not herein assessed, therefore, it is hereby declared to be the intention ofthe Council, as
authorized by Minnesota Statutes Section 420.051, to reimburse the City by adding any
portion of the cost so paid to the assessments levied for any of such later extension or
improvements.
5. The Clerk shall forthwith transmit a certified dupplicate of this assessment to the county
auditor to be extended on the property tax lists ofthe county, and such assessments shall be
collected and paid over in the same manner as other municipal taxes.
Seconded by Councilmember Kittridge Ayes -all
2. 7:29 P.M.: Tax-Exempt Housing Bond ReFmancing
Village on Woodlynn Avenue
a. Mayor Rossbach convened the meeting for a public hearing regarding the tax-exempt
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housing bond refinancing for the Village on Woodlynn Avenue.
b. Manager McGuire introduced the staff report.
a Community Development Director Coleman presented the specifics of the report.
e. City Attorney Kelly explained the procedure for public hearings.
f. Mayor Rossbach opened the public hearing, calling for proponents or opponents. The
following persons were heard:
Mary Ippel, Representing Briggs and Morgan
Howard Rechstedt, 4925 Hodgson, Shoreview
g. Mayor Rossbach closed the public hearing.
h. Councilmember Allenspach introduced the following Resolution and moved its adoption
subject to the following conditions:
1. The applicant and owner shall meetthe City's tax-exempt financingrequirements.
Councilmember Allenspach moved to amend to the conditions of the Resolution
accordingly:
2. The a licant or owner shall a Ma lewood an administrative fee not to exceed
25,000 at the bond closing.
Seconded by Mayor Rossbach Ayes -all
3. Any exterior changes to the site will be subjectto City staffand possibly CDRB or
City Council review and approval. Any such changes will be subject to the
applicable review process and procedures.
98-06-60
RESOLUTION AUTHORIZING THE ISSUANCE OF
$1,635,000 TAXABLE MULTI FAMILY HOUSING REVENUE REFUNDING BONDS
GNMA COLLATERALIZED MORTGAGE LOAN -
VIL AGE OF WOODLYN PROJECT) SERIES 1998A AND
$549,000 TAXABLE MULTIFAMILY HOUSING REVENUE REFUNDING BONDS
GNMA COLLATERALIZED MORTGAGE LOAN -
VIL AGE OF WOODLYN PROJECT ,SERIES 1998B AND
$100,000 SUBORDINATE MULTIFAMILY HOUSI G REVENUE REFUNDING BONDS
(VILLAGE OF WOODLYN PROJECT) SERIES 1998C AND
$170,000 SUBORDINATE MULTIFAMILY HOUSING REVENUE REFUNDING BONDS
(VILLAGE OF WOODLYN PROJECT) SERIES 1998D
WHEREAS, pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act'), the City of
Maplewood, Minnesota (the "City") is authorized to issue revenue bonds for the purpose offinancing and
refinancing a multifamily housing development; and
WHEREAS, the City has received from Cottages of Maplewood, L.P., a Minnesota limited partnership
(the "Company"), aproposal thatthe City refinance the Project hereinafter described throughthe issuance of
revenue bonds or obligations (the `Bonds") pursuant to the Act; and
WHEREAS, the Projectto be refinanced by the Bonds is the 59-unit multi-family rental housingfacility
located at 2122 Woodlyn Avenue in the City known as "Village on Woodlyn" (the "Project') previously
financed by the City. Multifamily Rental Housing Revenue Bonds, Series 1989 (Cottages of aplewood
Project) dated as otyMay, 1989 (the "Prior Bonds"); and
WHEREAS, the City proposes to refinance the Project by the issuance of its $1,635,000 Taxable
Multifamily Housing Revenue Refunding Bonds (GNMA Collateralized Mortgage Loan -Village of
Woodlyn Protect) Series 1998A and $549,000 Taxable Multifamily Housing Revenue Refunding Bonds
GNMA Collateralized Mortgage Loan -Village of Woodlyn Project), Series 1998B and $100,000
ubordinate Multifamily Housing Revenue Refunding Bonds (Village of oodlyn Project), Series 1998D
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(collectively, the "Bonds") under the Act pursuantto this Resolution; and
WHEREAS, the City conducted a public hearing on the proposal ofthe Company thatthe Cityrefinance
the Project by the issuance of the Bonds, at 7:00 p.m. on June 22, 1998, for which hearing the City
published advance notice and at which hearing all persons who appeared or submitted comments were given
an opportunity to express their views with respect to the Project and the Bonds; and
WHEREAS, the Bonds will be issued under an Indenture of Trust (the "Indenture"), dated as of July 1,
1998 between the City and U. S. Bank Trust National Association (the "Trustee") and the assignment of
certain Project revenues setforth under the Indenture, all in accordance with the terms ofthe Indenture; and
the Bonds and the interest on the Bonds shall be payable solely from the revenues pledged therefor and the
Bonds shall not constitute a debt ofthe City wrthm the meaning of anyy constitutional or statutory limitation,
nor shall the Bonds constitute nor give rise to a pecuniary liability oY~the City or a charge againstthe credit
or taxing powers and shall not constitute a charge, lien or encumbrance, legal or equitable, upon any
property of the City other than the City's interest in the Project; and
WHEREAS, proceeds ofthe Bonds will be loaned to the Company pursuantto a Loan Agreementdated
as of July 1, 1998 by and between the City and the Company (the "Loan Agreement') and the loan
repayments thereunder and the Bonds will be secured as provided in the Indenture and in the Loan
Agreement;
NOW, THEREFORE BE IT RESOLVED bythe City Council ofthe City ofMaplewood, Minnesota, as
follows:
1. Proposal. For the purpose of financing the Project, the issuance, sale and delivery of the
Bonds is hereby authorized. The proceeds ofthe Bonds together with other funds provided
by the Company, shall be applied to refunding the Prior Bonds and refinancingthe Pro ect.
The Bonds shall be in such series, principal amounts, shall bear interest at rates, shad be
numbered, shall be dated, shall mature, shall be subjectto redemption prior to maturity, and
shall be in such form and have such other details and provisions as may be prescribed m the
Indenture, substantially in the form now on file with the City. The Bonds shall be special
obligations of the City payable solely from the revenues provided by the Loan Agreement
and other funds pledged pursuantto the Indenture. The Bonds are not to be payable from
nor charged upon any funds of the City other than the revenues pledged to their payment,
nor is the City subjectto any liability thereon; no holders of the Bonds shall ever have the
right to compel any exercise of the taxing power of the City to pay any ofthe principal of,
premmm, if any, or interest on the Bonds; the Bonds shall not constitute a charge, hen or
encumbrance, legal or equitable, upon any property ofthe City, and each Bond shall recite
that the Bonds, including interest thereon, are payable solely from the revenues pledged to
the payment thereof and that no Bond shall constitute a debt ofthe City within the meaning
of any constitutional or statutory limitation. The Bonds shall contain a recital thatthey are
issued pursuantto the Act and such recital shall be conclusive evidence ofthe validity and
regularity of the issuance thereof.
2. Terms of Bonds. The Bonds will bear interest at the rates set forth in the Indenture, not to
exceed 10.00% per annum, and will be in the principal amounts and will mature and be
subjectto redemption, all as setforth in the Indenture, Pursuantto the Loan Agreement, the
City will loan the proceeds of the Bonds to the Company to refund the Prior Bonds and to
refinance the Project. The payments to be made by the Company under the Loan Agreement
are fixed so as to produce revenue sufficient to pay the principal of, premium, if any, and
interest on the Bonds when due. It is further proposed that the City assign certain rigghhts
under the Indenture and the Loan Agreement to the Trustee as security for payment o~the
Bonds under the Indenture. A Regulatory Agreement dated as oY~ July 1, 1998 (the
"Regulatory Agreement') will be entered into, by and among the City, the Trustee and the
Company containing certain requirements regarding operation ofthe project as a qualified
residential rental project under the Internal Revenue Code of 1986, as amended. A Bond
Purchase Agreement (the "Bond Purchase Agreement') will be entered into by and among
the City, the Company and Miller & Schroeder Financial, Inc. (the "Purchaser") with
respect to purchase of its Bonds.
3. Forms of Documents Submitted. Forms ofthe following documents have been submittedto
the Council for approval:
a. the Loan Agreement;
b. the Indenture;
c. the Bond Purchase Agreement; and
d. the Regulatory Agreement.
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4. Findings. It is hereby found, determined and declared that:
a. The refinancing of the Project furthers the policies of the Act;
b. The Project and the refinancing thereofpromotes the public welfare by providing
necessary housing facilities, so that adequate housing facilities are available to
residents of the State of Minnesota at a reasonable cost;
c. The Act authorizes the issuance and sale ofthe Bonds, the execution and delivery
by the City ofthe Loan Agreement, Regulatory Agreement, Indenture and Bond
Purchase Agreement (collectively the "Bond Documents"), the performance ofall
covenants and agreements ofthe City contained in the Bond Documents, and the
performance of all other acts and things required under the constitution and laws
of the State of Minnesota to make the Bond Documents and Bonds valid and
binding obligations of the City in accordance with their terms;
d. It is desirable that the Bonds be issued by the City upon the terms set forth in the
Indenture;
e. The payments under the Loan Agreement are fixed to produce revenue sufficient
to provide for the prompt payment of principal of, premmm, if any, and interest on
the Bonds issued under the Indenture when due, and the Loan Agreement and
Indenture also provide that the Company is required to ppay all expenses of the
operation and maintenance ofthe facilities to be financed by the Bonds, including
but without limitation, adequate insurance thereon and insurance against all
liability for injury to persons or property arising from the operation thereof, and
any taxes and special assessments levied upon or with respect to the premises of
said facilities and payable during the term ofthe Loan Agreement and Indenture;
f. As provided in the Loan Agreement and Indenture, the Bonds are not to be
payable from or charged upon any funds other than the revenue pledged to the
payment thereof; the City is not subject to any liability thereon, no holder of any
Bond shall ever have the right to compel any exercise by the City of its taxing
powers to pay any of the Bonds or the interest or premium thereon, or to enforce
paymentthereof against any property ofthe City exceptthe interests ofthe City in
the Loan Agreement, which have been assigned to the Bond Trustee under the
Indenture; the Bonds shall not constitute a charge, lien or encumbrance, legal or
equitable, upon any property of the City except the interests of the City m the
Loan Agreement which have been assigned to the Trustee under the Indenture; the
Bonds shall recite that the Bonds do not constitute or give rise to a pecuniary
liability or moral obligation of the City, the State of Minnesota or any of its
political subdivisions, and that the Bonds, including interestthereon, are payable
solely from the revenues pledged to the payment thereof; and the Bonds shall not
constitute a debt of the City within the meaning of any constitutional or statutory
limitation.
5. Approval of Forms; Execution. Subjectto the approval ofthe City Attorney, and
the provisions of paragraph 9 hereof, the forms of the Bond Documents and
exhibits thereto and all other documents listed in paragraph 3 hereof are approved
substantially in the form submitted. Subject to the provisions of paragraph 9
hereof, the Bond Documents, in substantially the forms submitted, are directed to
be executed in the name and on behalf of the City by the Mayor and Clerk or
Manager. Subject to the provisions of paragraph 9 thereof, the Bonds are to be
executed in the name of and on behalY~ of the City by the Mayor and Clerk or
Manager, and are to be delivered to the Trustee for authentication and delivery to
the Purchaser. Any other City documents and certificates necessary to the
transaction described above may be executed by the appropriate City officers.
Copies of all ofthe documents necessary to the transaction herein described shall
be delivered, filed and recorded as provided herein and in the Loan Agreement
and Indenture.
6. Official Statement. The City hereby consents to the preparation and distribution
of a Preliminary Official Statement dated and a final Official Statement
(collectively, the "Official Statement") to the Purchaser. The City has reliedupon
the Company and the Purchaser and legal counsel retained by them to assure the
accuracy and completeness of the information set forth in the Official Statement
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6-22-98
and therefore the City has not participated, and will not participate significantly,
in the preparation ofthe Official Statement. The City has not made, and will not
make, any independent investigation ofthe information contained therein, except
under the headings "THE CITY" or "THE ISSUER", and it assumes no
responsibility for the accuracy or completeness of such information. The
Preliminary Official Statement will be designated as a "near final" Official
Statement for purposes of Rule 15c2-12 of the Securities and Exchange
Commission.
7. Issuance. The City shall proceed forthwith to issue the Bonds, in the form and
upon the terms set forth in the Indenture and this Resolution. The Bonds shall be
issued in principal amounts, shall be payable or prepayable at such time or times,
shall bear interest at such rates and shall be subject to such other terms and
conditions as set forth in the Indenture. The City officers are authorized and
directed to execute and deliver the Bonds as prescribed in the Indenture.
8. Records and Certificates. The Mayor, Clerk, Manager and other officers of the
City are authorized and directed to prepare and furnish to the Purchaser certified
copies of all proceedings and records of the City relating to the Bonds, and such
other affidavits and certificates as may be required to show th facts relatingto the
legality of the Bonds as such facts appear from the books and records in the
off"icers' custody and control or as otherwise known to them; and all such certified
copies, certificates and affidavits, including any heretofore furnished, shall
constitute representations of the City as to the truth of all statements contained
therein.
9. Changes in Forms Approved; Absent and Disabled Officers. The approval hereby
given to the various documents referred to above includes approval of such
additional details therein as may be necessary and appropriate and such
modifications thereof, deletions therefrom and additions thereto as may be
necessary and appropriate and approved by counsel to the City, the appropriate
City staffperson or by the officers authorized herein to execute or accept, as the
case may be, said documents prior to their execution; and said officers or staff
members are hereby authorized to approve said changges on behalf of the City.
The execution of any instrument by the appropriate ofticer or officers ofthe City
herein authorized shall be conclusive evidence ofthe approval of such documents
in accordance with the terms hereof. In the event of absence or disability of the
officers, any of the documents authorized by this Resolution to be executed may
be executed without further act or authorization of the City Council by any
member of the City Council or any duly designated acting official, or by such
other officer or officers ofthe City as, m the opinion ofthe City Attorney, may act
in their behalf.
10. Indemnification by Company. It is understood and agreed thatthe Company shall
indemnify the City against all liabilities, losses, damages, costs and expenses
(including attorney's tees and expenses incurred by the City) arising with respect
to the Project or the Bonds, as provided for and agreed to by and between the
Company and the City in the Loan Agreement.
11. Public Hearing Notice. The form ofNotice of Public Hearing and the publication
thereof in the Maplewood Review on June 3, 1998 is hereby ratified and
approved.
12. Headings; Terms. Paragraph headings in this Resolution are for convenience of
reference only and are not a part hereof, and shall not limit or define the meaning
of any provision hereof. Capitalized terms used but not defined herein shall have
the meanings given them in the Indenture or Loan Agreement.
Seconded by Councilmember Carlson Ayes -all
3. 7:40 P.M.: Tax-Exempt Housing Bonds
Maple Knoll Townhouses (1800-1926 Mesabi Ave.)
a. Mayor Rossbach convened the meeting for a public hearing regarding the tax-exempt
housing bonds for the Maple Knoll Townhouses.
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b. Manager McGuire introduced the staff report.
a Community Development Director Coleman presented the specifics of the report.
d. City Attorney Kelly explained the procedure for public hearings.
e. Mayor Rossbach opened the public hearing, calling for proponents or opponents. The
following persons were heard:
Mary Ippel, Representing Briggs and Morgan
Jay Jenson, Miller & Schroeder Financial
g. Mayor Rossbach closed the public hearing.
h. Councilmember Carlson introduced the following Resolution and moved its adoption
subject to the following conditions:
1. Mr. Doran and Governmental and Educational Assistance Corporation shall meet
the City's tax-exempt financing requirements.
2. Mr. Doran or Governmental and Educational Assistance Co oration shall a
Maplewood an administrative fee of 28,600 at the bond closing.
3. Any exterior changes to the site will be subjectto City staffand possibly CDRB or
City Council review and approval. Any such changes will be subject to the
applicable review process and procedures.
98-06-61
RESOLUTION RECITING A PROPOSAL FOR A HOUSING FINANCE PROGRAM
TO FINANCE A MULTIFAMILY HOUSING DEVELOPMENT PROJECT,
GIVING PRELIMINARY APPROVAL TO THE PROJECT AND THE ISSUANCE OF
REVENUE BONDS PURSUANT TO MINNESOTA LAW, AND RATIFYING NOTICE PUBLICATION
AND
THE PREPARATION OF A HOUSING FINANCE PROGRAM (MAPLE KNOLL APARTMENTS
PROJECT)
WHEREAS, Minnesota Statutes, Chapter 462C (the "Acf') confers upon cities, the power to issue
revenue bonds to finance a program for the purposes ofplanning, administering, making orpurchasing loans
with respect to one or more multifamily housing developments within the boundaries of the City; and
WHEREAS, the City of Maplewood, Minnesota (the "City") has received from Governmental and
Educational Assistance Corporation (the "Developer") a propposal that the City undertake a program to
finance a Project hereinafter described, through the issuance ot~revenue bonds or obligations (in one ormore
series) (the "Bonds") pursuant to the Act); and
WHEREAS, the City desires to facilitate the development of rental housingg within the community,
encourage the development of affordable housing opportunities for residents ot~the City; encourage the
development ofhousing facilities designed for occupancy by individuals or families with low and moderate
incomes; and encourage the development of blighted or underutilized land and structures within the
boundaries of the City; and the Project will assist the City in achieving these objectives; and
WHEREAS, the Project to be financed by the Bonds consists ofthe acquisition and rehabilitation of an
existing multifamily rental housing development of approximately 57 units located at 1880 Mesabi Avenue
in the City which will result in the provision of additional rental housing opportunities to individuals or
families with low and moderate incomes within the community; and
WHEREAS, in accordance with Minnesota Statutes, Section 46X,04, Subdivision 2, the City has
heretofore submitted to the Metropolitan Council (the "Council") a program to finance the Project and the
City has received a letter dated , 1998 from the Council stating that Council staffhas reviewed the
proposal and finds no apparent inconsistencies between the proposal and Council policies; and
WHEREAS, apublic hearing on the Project was held on the date hereof, after notice was published and
materials made available for public inspection atthe City Hall, all as required by the Act and Section 147(f)
ofthe Internal Revenue Code of 1986, as amended (the "Code"), at which public hearing allthose appearing
who desired to speak were heard and written comments were accepted; and
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WHEREAS, no public official ofthe City has either a direct or indirect financial interest inthe Project
nor will any public official either directly or indirectly benefit financially from the Project.
NOW, THEREFORE, BE IT RESOLVED bythe City Council ofthe City of Maplewood, Minnesota,
as follows:
1. The City hereby gives preliminary approval to the proposal ofthe Developer that the City
undertake the Project, described above, and the program offinancingg therefor, pursuant to
the Act, consisting of the acquisition and rehabilitation of multifamily rental housing
facilities within the City pursuant to the Developer's specifications and to a revenue
agreementbetweenthe City and the Developer on suchterms and conditions withprovisions
for revision from time to time as necessary, so as to produce income and revenues sufficient
to pay, when due, the principal and interest on the Bonds in the total principal amount ofnot
to exceed $3,500,000 to be issued pursuant to the Act to finance the acquisition and
rehabilitation of the Project; and said agreement may also provide for the entire interest of
the Developer therein to be mortgaged to the purchasers of the Bonds, or a trustee for the
holder(s) of the Bonds; and the City, acting by and through the City, hereby undertakes
preliminary to issue its bonds in accordance with such terms and conditions.
2. At the option of the City, the financing may be structured so as to take advantage of
whatever means are available and are permitted b law to enhance the security for, or
marketability of, the Bonds; provided that any such financing structure must be consentedto
by the Developer.
3. On the basis of information available to the City it appears, and the City hereby finds, that
the Project constitutes a multifamily housing development within the meaning of
subdivision 5 of Section 46X.02 ofthe Act; thatthe availability ofthe financing under the
Act and the willingness of the City to furnish such financing will be a substantial
inducementto the Developer to undertake the Project, and that inducementto the Developer
to undertake the Project, and that the effect of the Project, if undertaken, will be to
encourage the provision of additional multifamily rental housing opportunities to residents
of the City, and to promote more intensive development and use of land within the City.
4. The Project and the program to finance the Project by the issuance of revenue bonds, is
hereby given preliminary approval by the City subject to final approval by the City, the
Developer and the purchasers of the bonds as to ultimate details of the financing of the
Project.
5. All prior actions taken by the City Staff in directing Briggs and Morgan, Professional
Association, acting as bond counsel to: (I) cause notice of the hearing to be given in
accordance with the Act and the Code, substantially in the form of the attached Notice of
Public Hearing; and (ii) prepare a housing program for financing the Project prepared in
accordance with the provisions of Minnesota Statutes, Section 46X.03 are hereby ratified,
affirmed and approved.
6. The Developer has agreed and it is hereby determined that any and all costs incurred by the
City in connection with the financing of the Project whether or not the Project is carried to
completion will be paid by the Developer.
7. Briggs and Morgan, Professional Association, acting as bond counsel, is authorizedto assist
in the preparation and review of necessary documents relating to the Project, to consult
Bonds as to the maturities, interest rates and other terms and provisions ofthe Bonds and as
to the covenants and other provisions of the necessary documents and submit such
documents to the City for final approval.
8. Nothing in this Resolution or the documents prepared pursuant hereto shall authorize the
expenditure of any municipal funds on the Prod ect other than the revenues derived from the
Project or otherwise granted to the City for this purpose. The Bonds shall not constitute a
charge, lien or encumbrance, legal or equitable, upon any property or funds of the City
except the revenue and proceeds pledged to the payment thereof, nor shall the City be
subject to any liabilityy thereon. The holder of the Bonds shall never have the right to
compel any exercise oY~the taxing power ofthe City to pay the outstanding principal on the
Bonds or the interest thereon, or to enforce payment thereon against any pproperty of the
City, except such property as may be expressly pledged for the security ofthe Bonds. The
Bonds shall recite m substance that Bonds, inc udmgthe interestthereon, are pa able solely
from the revenue and proceeds pledged to the payment thereof. The Bonds shall not
constitute a debt ofthe City within the meaning of any constitutional or statutory limitation.
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6-22-98
9. In anticipation of the approval by all necessary entities of the housing program and the
issuance ofthe Bonds to finance all or a portion ofthe Project, and in order that completion
ofthe Project will not be unduly delayed when approved, the Developer is hereby authorized
to make such expenditures and advances toward pa ment ofthat portion ofthe costs ofthe
ProJectto be financed from the proceeds ofthe Bonds, as the Developer considers necessary,
including the use of interim, short-term financing, subject to reimbursement from the
proceeds ofthe Bonds if any when delivered but otherwise without liability on the partofthe
City.
10. The Developer shall enter into various agreements with the City which shall impose the
following restrictions on the Developer and the Project;
a. Construction must begin by June 22, 1999. The City Council may grant a time
extension if just cause is shown.
b. Contracts entered into with Contractors doing work on the Project shall provide that:
i. The contractor shall not discriminate in the hiring or firing of
employees on the basis of race, color, creed, religion, national
origrn, sex, marital status, status with regard to public assistance,
disability or age.
ii. The contractor shall compensate employees with wages and financial
renumeration as provided under the United States Code, Section
276A, as amended through June 23, 1986, and under Minnesota
Statutes 1985, Sections 177.41-177.44.
iii. The contractor shall be required to employ Minnesota residents in at
least 80% ofthe j obs created by the prof ect; and, at least 60% ofthe
group shall be residents of the seven-county metropolitan area.
Resident status under both of the above categories shall be
determined as of the date of this resolution. However, if the
contractor can show that these quotas are not feasible because of a
shortage of qualified personnel in specific skills, the contractor may
request the City Council for a release from the two residency
requirements. The requirements shall continue for the duration of
the construction project.
iv. The contractor shall be an active participant in a State of Minnesota
apprentice program, approved by the Department of Labor and
Industry.
v. All provisions ofthese tax-exemptfinance requirements shall apply
to all subcontractors working on the Project.
c. The Developer shall pay an administrative fee to the City at closing calculated in
accordance with the City's tax-exempt revenue requirements.
d. The Developer shall comply with the City's tax-exempt revenue requirements,
including the optional design requirements.
Seconded by Councilmember Allenspach Ayes -all
4. 7:44 P.M.: First Financial Office Building (East of 2025 E. Co. Rd. D)
Building Setback Variance
Parking Lot Setback Variance
Design Approval (Building, Site and Landscape Plans)
a. Manager McGuire introduced the staff report.
b. Community Development Coleman presented the specifics of the report.
c. Boardmember Mary Robinson presented the Community Design Review Board report.
d. Mayor Rossbach asked if anyone wished to speak before the Council regardingthis matter.
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6-22-98
The following person was heard:
Tony Sampair, 2950 White Bear Avenue, Applicant
Dave Ubel, 2191 County Road D
e. Councilmember Carlson introduced the following Resolution and moved its adoption:
98-06-62
RESOLUTION APPROVING A SETBACK VARIANCE
WHEREAS, Mr. Tony Sampair applied for setback variances from the zoning ordinance.
WHEREAS, these variances apply to the parcel east of 2025 E. County Road D. The legal description
is:
The easterly 156.01 feet of the westerly 354.01 feet of the southwest 1/4 of the southeast 1/4 of
Section 35, Township 30 North, Range 22 West, lying southerly ofthe southerly right-of--way line
of Interstate Highway No. 694.
WHEREAS, Section 36-28(c)(6) ofthe Maplewood code requires that commercial buildings with over
3000 square feet of wall surface area be set back 100 feet from property that is zoned residential.
WHEREAS, Section 36-28(c)(5)(b) ofthe Maplewood code requires that commercial parking lots be set
back 20 feet from property that is zoned residential.
WHEREAS, the applicant is proposing a building setback of 80 feet and a parking lot setbackof 15 feet
WHEREAS, this requires variances of 20 feet and five feet.
WHEREAS, the history of these variances is as follows:
1. On May 26, 1998, the community design review board recommended thatthe City Council
approve this variance.
2. The City Council held a public hearing on June 22, 1998. City staffpublished a notice in
the Maplewood Review and sent notices to the surrounding property owners as required by
law. The Council gave everyone atthe hearing an opportunity to speak and present written
statements. The Council also considered reports and recommendations from the City staff
and review board.
NOW, THEREFORE, BE IT RESOLVED thatthe City Council approve the above-describedvariance
for the following reasons:
1. Requiring side parking and building setbacks to meet code would result in an unattractive
and ill-conceived site plan because the building would be crowded toward the west lot line.
2. The adjacent lotto the east is planned for BC (business commercial) and will be considered
for a land use plan change to BC in the near ture by the City staff.
3. Complying with the code would cause the applicant undue hardship because of the
inconsistency of the zoning and land use designation for the lotto the east.
4. The proposed variances would be in keeping with the spirit and intent of the ordinance
because the house on the abutting lot is 225 feet away and is screened by mature trees.
Seconded by Councilmember Allenspach Ayes -all
f. Councilmember Carlson moved to approve the building, site and landscaping plans date-
stam ed Ma 13 1998 for the ro osed First Financial Buildin east of 2025 E. Count
Roa D, subject to the following conditions:
1. Repeatthis review in two years ifthe City has not issued a building permitfor this
project.
2. Before getting a building permit the applicant shall:
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6-22-98
a. Submit grading, drainage, utility and erosion control plans for City engineer approval.
b. Revise the site plan for staff approval by:
(1) Omitting the driveway connection to the adjacent lot.
(2) Adding one more handicap-accessible parking space for a total of 58 parking
spaces.
(3) Providing a 15-foot parking-lot setback from the north lot line.
3. The applicant shall complete the following before occupying the building:
a. Install a handicap parking sign for each handicap parking space. Handicap spaces must
comply with ADA requirements. One space must be van accessible.
b. Paint any rooftop mechanical equipment to match the color of the upper part of the
building. (code requirement)
a Construct a trash dumpster enclosure to match the building with a 100 percent opaque
gate. (code requirement)
d. Install an in-ground lawn irrigation system for all landscaped areas. (code requirement)
e. Direct or shield the site lights so they do not shine in drivers eyes.
f. Provide continuous concrete curbing around all parking lots and drives.
g. Post the nine-foot-wide parking spaces for employees only (code requirement).
Parking spaces for visitors or customers must be at least 9 '/z feet wide.
h. Sod all turf areas, including the boulevard, except planting beds if a different ground
cover or mulch is to be used.
4. If any required work is not done, the City may allow temporary occupancy if:
a. The City determines thatthe work is not essential to the public health, safety or welfare.
b. The City receives a cash escrow or an irrevocable letter of credit for the required work.
The amount shall be 200 percent of the cost of the unfinished work. An unfinished
landscaping shall be completed by June 1 ifthe building is occupied in the tall or winter
or within six weeks if the building is occupied in the spring or summer.
c. The City receives an agreement that will allow the City to complete any unfinished
work.
5. Signs are not approved in this review. The applicant must submit the sign plans to stafffor
approval and obtain the necessary sign permits.
6. All work shall follow the approved plans. The Director of Community Development may
approve minor changes.
7. The architectural plans are approved with the deletion of the brick accent from the second
story with a substitution of stucco instead.
Seconded by Councilmember Allenspach Ayes -all
I. AWARD OF BIDS
1. English Street, Larpenteur Ave. to Frost Ave., Project 96-19
a. Manager McGuire introduced the staff report.
13
6-22-98
b. Councilmember Carlson introduced the following Resolution and moved its adoption:
98-06-63
RESOLUTION FOR AWARD OF BIDS FOR ENGLISH STREET CONSTRUCTION: PROJECT 96-19.
BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD, MINNESOTA, thatthe bid of
Forest Lake Contracting, Ina In the amount of $367,752.00 is the lowest responsible bid for the
construction of English Streetfrom Larpenteur Avenue to Frost Avenue, City Project 96-19, and the Mayyor
and Clerk are hereby authorized and directed to enterinto a contract with said bidderfor and on behalY'of
the City.
The Finance Director is hereby authorized to make the financial transfers necessary to implement the
financing plan for the project.
Seconded by Councilmember Allenspach Ayes -all
J. UNFINISHED BUSINESS
NONE
K. NEW BUSINESS
1. Special Approval -Saint John's Hospital Lot Division (1575 Beam Avenue)
a. Manager McGuire introduced the staff report.
b. Community Development Director Coleman presented the specifics of the report.
a Commissioner Lorraine Fischer presented the Planning Commission report.
d. Mayor Rossbach asked if anyone wished to speak before the Council regardingthis matter.
The following person was heard:
Malcolm McDonald, representing HealthEast Saint John's Hospital
e. Councilmember Kittridge introduced the following Resolution and moved its adoptionbased
on the following conditions:
1. The legal description for the lot division shall follow the plan shown on page 7 of
the June 16, 1998 staff report. The Director of Community Development may
approve minor changes.
2. Record the following with Ramsey County:
a. A perpetual access easement that allows ingress and egress from the
landlocked parcel (Parcel 2) across Parcel 1 to the public street. The
Director of Community Development may approve minor changes to
plans.
b. A perpetual easement agreement that allows the users and owners of
Parcel 2 to park their vehicles on Parcel 1.
c. An agreement against the property that:
(1) Holds the City harmless from any liability for using the
private driveway or any delay in emergency vehicles finding
the structure(s).
(2) States that the property owners shall maintain, plow and sand
this driveway to the satisfaction of the Police and Fire
Chiefs.
City staff shall review this agreement. The property owner shall provide the City with
14
6-22-98
copies of all recorded documents.
3. Install a sign at Hazelwood Street and the driveway that states the address ofthe
future structure(s).
98-06-64
RESOLUTION ALLOWING DIVISION OF PROPERTY AT 1575 BEAM AVENUE
WHEREAS, Mr. Kyle Davis, representing HealthEast Saint John's Hospital, is asking that the City
approve a code variation to divide the Saint John's Hospital property at 1575 Beam Avenue into two lots;
WHEREAS, the legal description of the property is:
The West 727.75 feet, as measured at right angles, of the Southwest Quarter of the Northeast
Quarter of Section 3, Township 29, Range 22, Ramsey County, Minnesota.
WHEREAS, Section 30-8(f)(4) of the City Code requires all lots to abut on a publicly dedicated and
maintained street.
WHEREAS, the proposed Parcel Two would not front on apublicly-maintained street.
WHEREAS, the history of this request is as follows:
1. The Planning Commission discussedthis request on June 15, 1998. Theyrecommendedthat
the City Council approve the request.
2. The City Council discussed this request on June 22, 1998. The Council gave everyone at
the meeting a chance to speak and present written statements. The Council also considered
reports and recommendations from the City staff and Planning Commission.
NOW, THEREFORE, BE IT RESOLVED that the City Council allow the lot division for the above-
describedproperty with the following conditions:
1. The legal description for the lot division shall follow the plan shown on page 7 ofthe June
16, 1998 staff report. The Director of Community Development may approve minor
changes.
2. Record the following with Ramsey County:
a. A perpetual access easement that allows ingress and egress from the landlocked parcel
(Parcel 2) across Parcel 1 to the public street. The Director of Community Development
may approve minor changes to plans.
b. A perpetual easement agreement that allows the users and owners of Parcel 2 to park
their vehicles on Parcel 1.
c. An agreement against the property that:
(1) Holds the City harmless from any liability for using the private driveway or
any delay m emergency vehicles finding the structure(s).
(2) States thatthe property owners shall maintain, plow and sand this drivewayto
the satisfaction otYthe Fire Chief.
City staff shall review this agreement. The property owner shall provide the City with copies of all
recorded documents.
3. Install a sign at Hazelwood Street and the driveway that states the address of the future
structure(s).
Seconded by Councilmember Carlson Ayes -all
2. Harvester Avenue and Sterling Street Improvements, Project 97-16
Approve Plans and Specifications
Authorize Advertising for Bids
15
6-22-98
a. Manager McGuire introduced the staff report.
b. Councilmember Carlson introduced the following Resolution and moved its adoption:
98-06-65
RESOLUTION APPROVING PLANS AND ADVERTISEMENT FOR BIDS FOR
HARVESTER AVENUE/STERLING STREET IMPROVEMENTS: PROJECT 97-16
WHEREAS, pursuant to resolution passed by the City Council on May 11, 1998, plans and
specifications for Harvester Avenue and Sterling Street Improvements, Project 97-16, have beenpreparedby
(or under the direction of) the City Engineer, who has presented such plans and specifications to the Council
for approval.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
MAPLEWOOD, MINNESOTA:
1. Such plans and specifications, acopy of which are attached hereto and made a part hereof,
are hereby approved and ordered placed on file in the office of the City Clerk.
2. The City Clerk shall prepare and cause to be inserted in the official paper and in the
Construction Bulletin an advertisement for bids upon the making of such improvement
under such approved plans and specifications. The advertisement shall be published twice,
at least ten days before the date set for bid opening, shall specify the work to be done, shall
state that bids will be publicly opened and considered by the Council at 10:00 a.m. on the
24th day of July, 1998, at the City Hall and that no bids shall be considered unless sealed
and filed with the Clerk and accompanied by a certified check or bid bond, payable to the
City of Maplewood, Minnesota for five percent of the amount of such bid.
3. The City Clerk and City Engineer are hereby authorized and instructed to receive, open and
read aloud bids received at the time and place herein noted, and to tabulate the bids
received. The Council will consider the bids, and the award of a contract, atthe regular City
Council meeting of July 27, 1998.
Seconded by Councilmember Kittridge Ayes -all
3. Harvester Avenue and Sterling Street Improvements, Project 97-16
Order Preparation of Assessment Roll
Schedule Assessment Hearing
a. Manager McGuire introduced the staff report.
b. Councilmember Carlson introduced the following Resolution and moved its adoption:
98-06-66
RESOLUTION ORDERING THE PREPARATION OF THE ASSESSMENT ROLL
FOR THE HARVESTER AVENUE/STERLING STREET IMPROVEMENTS: PROJECT 97-16
WHEREAS, the City Clerk and City Engineer have been authorized to receive bids forthe improvement
of Harvester and Sterling Street, City Project 97-16.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD,
MINNESOTA that the City Clerk and City Engineer shall forthwith calculate the pproper amount to be
specially assessed for such improvement against every assessable lot, piece or parcel oY~land abutting on the
streets affected, without regard to cash valuation, as provided by law, and they shall file a copy of such
proposed assessment in the City Office for inspection.
FURTHER, the Clerk shall, upon completion of such proposed assessment, notify the Council thereof.
Seconded by Councilmember Allenspach Ayes -all
16
6-22-98
a Councilmember Carlson introduced the following Resolution and moved its adoption:
98-06-67
RESOLUTION ORDERING THE ASSESSMENT HEARING
FOR THE HARVESTER AVENUE/STERLING STREET IMPROVEMENTS: PROJECT 97-16
WHEREAS, the Clerk and the Engineer have, at the direction ofthe Council, prepared an assessment
roll for the construction of Harvester Avenue and Sterling Street, City Project 97-16, and the said
assessment is on file in the office of the City Clerk.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD,
MINNESOTA:
1. A hearing shall be held on the 27th day of July, 1998, at the City Hall at 7:00 p.m. to pass
upon such proposed assessment and at such time and place all persons owning property
affected by such improvement will be given an opportunity to be heard with reference to
such assessment.
2. The City Clerk is hereby directed to cause a notice of the hearing on the proposed
assessmentto be published in the official newspaper, at leasttwo weeks prior to the hearing
and to mail notices to the owners of all property affected by said assessment.
3. The notice ofhearing shall state the date, time and place ofhearing the general nature ofthe
improvement the area to be assessed, that the proposed assessment roll is on file with the
Clerk and that written or oral objections will be considered.
Seconded by Councilmember Kittridge Ayes -all
L. VISITOR PRESENTATIONS
NONE
M. COUNCIL PRESENTATIONS
1. Committee Reports
Councilmember Allenspach reported that Northeast Suburban Transit (NEST) is meetingwith other
cities involved to confirm if they will contribute to NEST.
N. ADMINISTRATIVE PRESENTATIONS
NONE
17
6-22-98
O. ADJOURNMENT
Mayor Rossbach moved to adjourn the meeting at 8:20 p.m.
Seconded by Councilmember Allenspach Ayes -all
Karen Gui of e, City C er
18
6-22-98