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HomeMy WebLinkAbout04.14.86 MINUTES OF MAPLEWOOD CITY COUNCIL 7:00 P.M., Monday, April 14, 1986 Council Chambers, Municipal Building Meeting No. 86-09 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 7:02 P.M. by Mayor Greavu. B. ROLL CALL John C. Greavu, Mayor Present Norman G. Anderson, Councilmember Present Gary W. Bastian, Coun cilmember Present Frances L. Joker, Councilmember Present Charlotte Wasiluk, Councilmember Present - C. APPROVAL OF MINUTES 1. Meeting No. 86-08 (March 24, 1986) Councilmember Anderson moved to approve the Minutes of Meeting No. 86-08 (March 24, 1986) as submitted. Seconded by Councilmember Joker. Ayes - all. D. APPROVAL OF AGENDA Mayor Greavu moved to approve the Agenda as amended: 1. Open Meeting Law 2. Highway 61 and Parkway Drive 3. Gambling Ordinance 4. Park Debris 5. Motorcycle Ordinance 6. Drainage Pond Dredging 7. Battle Creek Park 8. Discussionwith City Attorney Bannigan 9. Remove Items H-3 and 2-1 from Agenda. Seconded by Councilmember Bastian. Ayes - all. E. CONSENT AGENDA Council removed Item E-3 to become Item I-10. Councilmember Bastian moved, Seconded by Councilmember Joker, Ayes - all, to approve the Consent Agenda, Items E-1 and 2 and E-4 through 8 as recommended. 1. Accounts Payable Approved the accounts (Part 2 - Fees, Services, Expenses Check Register dated March 31, 1986 - April 02, 1986 - $565,766.86: Part II, Payroll dated April 4, 1986 - gross amount $131,610.79) in the amount of $697,377.65. 4/14 2. Disposal of Old Financial Records Authorized the City to apply to the State-for disposal of old financial records. Resolution No. 86 - 4 - 44 WHEREAS, M.S.A. 138.17 governs the destruction of City records; and WHEREAS, a list of records has been presented to the Council with a request in writing that destruction be approved by the .Council,; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MARLEWOOD, MINNE- SOTA: 1. That the Finance Director is hereby directed to apply to the Minnesota State Historical Society for an order authorizing destruction of the records as described in the attached list. 2. That upon approval by the State of the attached application, - the Finance Director is.hereby authorized and directed to destroy the records listed. 3. Amendment of Tanners Lake Partners Project 1982 Revenue Note Discussed under I-10. 4. Final Plat: Cave's English Street Addition Approved the Final Plat for Cave's English Street Addition to Maplewood. 5. Budget Transfer/Lanier Transcriber Approved a budget transfer from the Contingency Account inthe amount of $750.00 to purchase a Lanier Transcriber/Dictating/recording device. 6. Roseville Water Service Resolution No. 86 - 4 - 45 WHEREAS, Construction 70 desires to build on Rice Street adjacent to the Cub Foods site; WHEREAS, the City of Maplewood cannot provide water service to the site; NOW, THEREFORE, BE IT RESOLVED BY THE MAPLEWOOD, MINNESOTA, CITY COUNCIL that the City of Roseville is requested to provide water service to the auto service center proposed by Construction 70. 7. Water Service - Little Canada Resolution No. 86 - 4 - 46 WHEREAS, Maplewood Acres, Inc., desires to build-on County Road B east of Cub Foods; - 2 - 4/14 WHEREAS, the City of Maplewood cannot provide water service to the site; NOW, THEREFORE, BE IT RESOLVED BY THE MAPLEWOOD, MINNESOTA, CITY COUNCIL that the City of Little Canada is requested to provide water service to the Hilltop Shopping Center site. 8. Accept Donation - Paramedic Fund Recommended the acceptance of a $500.00 gift from the family of Hedvig Johnson to be used by the Maplewood Police Paramedic Program. It was further recommended that this money be placed:in,paxameflic apcount 0.1-4600-43:for future use. F. PUBLIC HERRINGS 1. 7:00 P.M., P.U.D. Revision Cave's English Street Addition a. Mayor Greavu convened the meeting for a public hearing regarding the request of Ed Cave and Sons, Inc., for revision of the conditional use - permit forCave's English Street Addition to build a double dwelling, rather than a single dwelling, on Lot One, Block One. b. Manager Lais presented the Staff report. - c. Director of Community Development Geoff Olson presented the specifics of the proposal and the Planning Commission recommendation for approval. d. Mayor Greavu called for proponents. None were heard. e. Mayor Greavu called for opponents. None were heard. f. Mayor Greavu closed the public hearing. g. Mayor Greavu introduced the following resolution and moved its adoption: 86-4- 47 WHEREAS, Ed Cave and Sons, Inc., initiated a conditional use permit to revise Lot One, Block One of Cave's English Street Addition planned unit development from a single to a double dwelling lot. All other lots continue to be designated for single dwelling use. WHEREAS, the procedural history of this conditional use permit is as follows: 1. This conditional use permit was initiated by Ed Cave and Sons, Inc., pursuant to the Maplewood Code of Ordinances. 2. This conditional use permit was reviewed by the Maplewood Planning Commission on March 17, 1986. The Planning Commission recommended to the City Council that said permit be approved. 3. The Maplewood City Council held a public hearing on April 14, 1986. Notice thereof was published and mailed pursuant to law. All per- sons present at said hearing were given an opportunity to be heard - 3 - 4/14 and present written statements. The Council also considered reports and recommendations of the City Staff and Planning Commission. NOW, THEREFORE, BE IT RESOLVED BY THE MAPLEWOOD CITY COUNCIL that the above-described conditional use permit revision be approved on the basis of the following findings-of-fact: 1. The revised use is in conformity with the City's Comprehensive Plan and with the purpose and standards of the zoning code. 2. The establishment or maintenance of the use would not be detri- mental to the public health, safety or general welfare. 3. The use would be located, designed, maintained and operated to be compatible with the character of that zoning district. 4. The use would not depreciate property values. 5. The use would not be hazardous, detrimental or disturbing to present and potential surroundingland uses, due to the noises, glare, smoke, dust, odor, fumes,water pollution, water run-off, vibration, general unsightliness, electrical interference or other nuisances. 6. The use would generate only minimal vehicular traffic on local streets and shall not create traffic congestion, unsafe access or parking needs that will cause undue burden to the area proper- ties. 7. The use would be serviced by essential public services, such as streets, police, fire protection, utilities, schools and parks. 8. The use would not create excessive additional requirements at public cost for public facilities and services; and would not be detrimental to the welfare of the City. 9. The use would preserve and incorporate the site's natural and scenic features into the development design. 10. The use would cause minimal adverse environmental effects. Approval is subject to the following conditions: Adherence to the original site plan, dated November 7, 1985, as revised herein and as required to be amended by the Maplewood City Council on December 9, 1985, unless a change is approved by the City's Community Design Review Board. Adopted this 14th day of April, 1986. - Seconded by Councilmember Wasiluk. Ayes: Mayor Greavu, Councilmembers Bastian and Wasiluk Nays: Councilmembers Juker and Anderson - 4 - 4/14 2. 7:10 P.M., P.U.D., Preliminary Plat and Street Vacation - Cave's English Street Second Addition a. Mayor Greavu convened the meeting for a public hearing regarding the request of Ed Cave and Sons, Inc., fora planned-unit development for five small-lot, single-dwelling lots and 36 condominium units; for the vacation of existing street and alley rights-of-way; and for approval of a preliminary plat. b. Manager Lais presented the Staff report. c. Director of Community Development Geoff Olson presented the specifics of the proposal and the Planning Commission recommendation for approval. d. Mayor Greavu called for proponents. None were heard. e. Mayor Greavu called for opponents. The following expressed their opinions: Ms. Bernal, 2200 English Street Mr. John Loipersheck, 2156 English Street f. Mayor Greavu closed the public hearing. g. Councilmember Anderson moved to table this Item until the meeting of April 28, 1986, so that the Council can question the Developer, Ed Cave and Sons, Inc. Seconded by Councilmember Juker. Ayes - all. 3. 7:20 P.M., Code Amendment Parking (2nd Reading) 4 Votes a. Mayor Greavu convened the meeting for a public hearing to amend the Maplewood . Code of Ordinances (second reading) to permit nine-foot wide parking stalls, rather than ten foot, for 90 degree parking and to require hard-surfaced parking lots and striping. _ b. Manager Lais presented the Staff report. c. Director of Community Development, Geoff Olson, presented the specifics of the proposal. d. Mayor Greavu called for proponents. None were heard. e. Mayor Greavu called for opponents. None were heard. f. Mayor Greavu closed the public hearing. g. Mayor Greavu moved second reading of an ordinance amending the Code to re- duce parking spaces to 9 feet"wide and to require parking lots and associated driveways shall be hard surfaced. Seconded by Councilmember Wasiluk. Ayes - Mayor Greavu, Councilmembers Bastian and Wasiluk Nays - Councilmembers Anderson and Juker Motion failed. - 5 - 4/14 4. 7:30 P.M., Crestview Drive - Hudson Place Watermain (4 Votes) a. Mayor Greavu convened the meeting for a public hearing to construct - water main improvements on Hudson Place from McKnight Road to Sterling Street and Crestview Drive to approximately 1,100 feet south. - b. Manager Lais presented the Staff report. c. City Engineer Ken Haider presented the specifics of the proposal. d. Mayor Greavu called for all who wished to be heard for or against the proposal. The following were heard and stated their opinions: Letters of approval were read from the following: Gary and Janice Sherburne, 137 N. Crestview Drive Donald and Beverly Disselkamp, 188 N. Crestview Drive Those appearing in person before Council were the following: Fred McCormick, 230 Crestview Drive Warren H. Robens, 140 N. Crestview Drive David Elton, speaking for Christ United Methodist Church - Wilfred Muir,. 212 Crestview Drive Charles Ferrise, 170 Crestview Drive Henry P. Dembicz ak, 140 N. Crestview Drive Gene Kulzer, 152 Crestview Drive Mark Skeie, 155 N. Crestview Drive Joseph Boland, 131 Crestview Drive Kristine Bergk, 222 N. Crestview Drive e. Mayor Greavu closed the public hearing. f. Councilmember Anderson introduced the following resolution and moved its adoption: 86- 4-48 WHEREAS, after due notice of public hearing on the construction of water main improvements on Hudson Place from McKnight Road to Sterling Street and Crestview Drive from Hudson Place to approximately 1,100 feet south, a hear- . ing on said improvement in accrodance with the notice duly given was duly held on April 14, 1986, and the Council has heard all persons desiring to be heard on the matter and has fully considered the same; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD, MINNESOTA, as follows: 1. That it is advisable, expedient and necessary that the City of Maplewood construct water main improvements on Hudson Place from McKnight Road to. Sterling Street and Crestview Drive from Hudson Place to approximately 1,100 feet south as described in the notice of hearing thereon, and orders the same to be made. - 6 - 4/14 2. The City Engineer is designated Engineer for this improvement and is hereby directed to prepare final plans and specifica- - tions for the making of said improvement. Seconded by Councilmember Bastian. Ayes - Councilmembers Anderson, Bastian, Joker and Wasiluk Nays - None Mayor Greavu abstained. 5. 7:50 P.M., Holiday Inn - Liquor License Application - Morgan P. Nederhiser a. Mayor Greavu convened the meeting for a public hearing to approve the liquor license application of Morgan Patrick Nederhiser, Holiday Inn, Maplewood. b. Manager Lais presented the Staff report. c. Mayor Greavu called for proponents. - Mr. Morgan P. Nederhiser spoke on his own behalf. d. Mayor Greavu called for opponents. None were heard. e. Mayor Greavu closed the public hearing. f. Councilmember Joker introduced the following resolution and moved its adoption: 86 - 4 - 49 NOTICE IS HEREBY GIVEN that pursuant to action by the City Council of~ the City of Maplewood onApril 14, 1986, an On-Sale Intoxicating Liquor License was approved for Morgan P. Nederhiser, dba Holiday Inn - Maplewood, 1780 East County Road D. The Council proceeded in this matter as outlined under the provisions of the City Ordinances. Seconded by Councilmember Anderson. Ayes - all. G. AWARD OF BIDS 1. Ambulance a. City P4anager Lais presented the Staff report. b. Director of Public Safety Ken Collins presented the specifics of the proposal. c. Councilmember Joker introduced the following resolution and moved its adoption: 86 - 4 - 50 BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD, MINNESOTA, that the bid - 7 - 4/14 of Road Rescue in the amount of $56,778.00 is the lowest responsible bid for the purchase of a 1986 modulor ambulance and the proper City officials are hereby authorized and directed to enter into a contract with said bidder for and on behalf of the City. Seconded by Mayor Greavu. Ayes - all. H. UNFINISHED BUSINESS 1. Condor Storm Sewer a. Councilmember Bastian moved to table this Item to be discussed at a shirt-sleeve session scheduled for Monday May 5 at 7:30 P.M. Seconded byMayor Greavu. Ayes - all. 2. County Solid Waste Plan a. Mayor Greavu asked for comments from the Council on solid waste. b. Councilmember A7asiluk moved to appoint a task force to investigate solid waste. Seconded by Councilmember Bastian. Ayes - all. 3. Neighborhood Park Acquisition a. Removed from Agenda. I. NEW BUSINESS 1. Code Amendment Home Occupation Signs (1st Reading) a. Removed from Agenda 2. Reschedule May 26 Council Meeting - a. Mayor Greavu moved to reschedule the May 26 Council Meetingto Thursday, May 22, 1986, at 7:00 P.M, in the Council Chambers. Seconded by Councilmember Bastian. Ayes - all. 3. Art Contests - City Hall a. Councilmember Bastian recommended the appointment of a Committee to formulate plans for an Art Contest to coincide with the opening of the new City Hall. Volunteers to that Committee are as follows: _ Gail Speckman, a painter Frank Zeller, a painter Charles Helsel from the 3M Company Sandra Dickey Maureen Gosselin, Maplewood Community Arts Rich Doolittle, an art teacher at North High School Kevin Kupferschmidt, a painter b. Councilmember Bastian moved that the City ofMaplewood initiate a task - 8 - 4/14 force for the arts comprised of the above mentioned volunteers, with Gary Bastian serving as ad hoc and would have the charge to come back to the Council with their recommendations. Seconded by Councilmember Wasiluk. Ayes - all. 4. Ramsey County 1986 Contract - Overlay Program Beam Avenue, Hazelwood - White Bear Avenue Larpenteur Avenue, Van Dyke - Beebe Lydia, .25 Miles East of White Bear Avenue - McKnight a. Manager Lais presented the Staff report. - b. Mayor Greavu introduced the followih resolutions and moved their adoption: 86 - 4 - 51 WHEREAS, plans for Project 62-619-11 showing proposed alignment, profiles, grades and cross-sections for the construction, reconstruction or improvement - of County State-Aid Highway No. 19 within the limits of the City as a State Aid Project have been prepared and presented to the City. - NOW, THEREFORE, BE IT RESOLVED: That said plans be in all things approved. Dated this 14th day of April, 1986. 86 - 4 - 52 RESOLUTION REQUESTING RAMSEY COUNTY TO RESTRICT PARKING ALONG A PORTION OF LARPENTEUR AVENUE WHEREAS, theCountyhas planned the resurfacing_of Larpenteur Avenue (CSAH 30) from Van Dyke Street to Beebe Road; and WHEREAS, the County will be expending County State Aid Highway funds (S.A.P. 62-630-23) on the improvement of said street; and Tdf7EREAS, said improvement does not conform to the approved minimum standards as previously adopted for such County State Aid streets and that approval of the proposed construction as a County State Aid street project must, therefore, be conditioned upon certain parking restrictions; and WHEREAS, the extent of these restrictions, that would be a necessary prerequisite to the approval of this construction as a County State Aid project in the City, has been determined. NOW, THEREFORE, IT IS HEREBY RESOLVED, that the City requests the County to restrict the parking of motor vehicles on the north side of Larpenteur Avenue from Van Dyke Street to Hazel Street. 86 - 4 - 53 WHEREAS, plans for Project 62-630-23 showing proposed alignment, profiles, grades and cross-sections for the construction, reconstruction - 9 - 4/14 or improvement of County State-Aid Highway No. 30 within the limits of the City as a State Aid Project have been prepared and presented-to the City, NOW, THEREFORE, BE IT RESOLVED: That said plans be in all things approved. Dated this 14th day of April, 1986. 86-4-54 RESOLUTIONREQUESTING RAMSEY COUNTY TO RESTRICT PARKING ALONG A PORTION OF BEAM AVENUE WHEREAS, the County has planned the resurfacing of Beam Avenue (CSAH 19) from Trunk Highway 61 to White Bear Avenue; and WHEREAS, the County will be expending County State Aid Highway funds (S.A.P. 62-619-10) on the improvement of said street; and WHEREAS, said improvement does not conform to the approved minimum standards as previously adopted for such County State Aid streets and that approval of the proposed construction as a. County State Aid street project must, therefore, be conditioned upon certain parking restrictions; and WHEREAS, the extent of these restrictions, that would be a necessary prerequisite to the approval of this construction as a County State Aid project in the City, has been determined. NOW, THEREFORE, IT IS HEREBY RESOLVED, that the City requests the County to restrict the parking of motor vehicles on both sides of Beam ' Avenue from Trunk Highway 61 to White Bear Avenue. 86-4- 55 WHEREAS, plans for Project 62-619-10 showingproposedalignment, profiles, grades and cross-sections for the construction, reconstruction or improvement of County State-Aid Highway No. 19 within the limits of the City as a State Aid Project have been prepared and presented to the City. NOW, THEREFORE, BE IT RESOLVED: That said plans be in all things approved. Dated this 14th day of April, 1986. i Seconded by Councilmember Anderson. Ayes - all. 5. White Bear Avenue Pavement Rehabilitation a. Manager Lais presented the Staff report. - 10 - 4/14 b. Councilmember Juker introduced the following resolutions arid~movc.d'their adoption: 86- 4- 56 WHEREAS, plans for Project 62-665-29 showing proposed alignment, pro- files, grades and cross-sections for the construction, reconstruction or improvement of County State-Aid Highway No. 65 within the limits of the City as a State Aid Project have been prepa:rc:d and presented to the City. NOW, THEREFORE, BE IT RESOLVED: That said plans be in all things approved. Dated this 14th day of April, 1986. 86-4-57 WHEREAS, plans for Project 62-665-30 showing proposed alignment, pro- files, grades and cross-sections for the construction, reconstruction or _ improvement of County State-Aid Highway No. 65 within the limits of the City as a State Aid Project have been prepared and presented to the City. NOW, THEREFORE, BE IT RESOLVED: That said plans be in all things approved. Dated this 14th day of April, 1986. Seconded by P7ayor Greavu. Ayes - all. 6. Frost Avenue Reconstruction Project 83-1 a. Manager Lais presented the Staff report. b. Countilmember Anderson introduced the following resolution and moved its adoption: 86 -4-58 WHEREAS, the City Council has previously approved plans and specifications for Frost Avenue Reconstruction (Adele to Birmingham), Project No. 83-1; and WHEREAS, an agreement has been prepared defining project responsibilities between the City of Maplewood and Ramsey County. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MAPLE- WOOD, MINNESOTA: The agreement, a copy of which is attached hereto ahd_made apart herecif, is hereby approved. The Mayor and City Manager are hereby authorized and instructed to execute said agreement. Seconded by Councilmember Juker. Ayes - all. 7. Hazelwood Reconstruction Project 85-27 a. Manager Lais presented the Staff report. - 11 - 4/14 b. Mayor Greavu introduced the following resolution and moved its adoption: 86 - 4 - 59 WHEREAS, the City Engineer for the City of Maplewood has been authorized and directed to prepare a report with reference to the improvement of Hazel- wood Avenue from County Road C to Beam Avenue byconstruction of street, storm sewer, bituminous path and utility services, and WHEREAS, the said City Engineer has prepared the aforesaid report for the improvement herein described: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD, MINNESOTA, as follows: 1. The report of the City Engineer advising this Council that the proposed improvement on Hazelwood Avenue from County Road C to Beam Avenue by construction of street, storm sewer, bituminous path and utility services is feasible and should best be made as proposed, is hereby received. 2. The Council will consider the aforesaid improvement in accordance with the reports and the assessment of benefited property for all or a portion of the cost of the improvement according to M.S.A. Chapter 429, at an estimated total cost of the improvement of $636,460.00. 3. A public hearing will be held in the Council Chambers of the City Hall at 1380 Frost Avenue on Monday, the 28th day of April, 1986, at 7:10 P.M.. to consider said. improvement. The City Clerk shall - give mailed and published noticeof said hearing and improvement as required by law. Secondedby Councilmember Wasiluk. Ayes - PQayor Greavu, Councilmembers Anderson, Juker and Wasiluk Nay - Councilmember Bastian 8. McKnight Road Reconstruction Project 81-20 a. Manager Lais presented the Staff report. b. Mayor Greavu introduced the following resolution and moved its adoption: 86-4-60 WHEREAS, the City Engineer for the City of Maplewood has been authorized and directed to prepare a report with reference to the - improvement of McKnight Road from Beaver Lake to Larpenteur Avenue by construction of street, storm sewer, water main, sanitary sewer, bituminous path and concrete sidewalk, and - 12 - WHEREAS, the said City Engineer has prepared the aforesaid report for the improvement herein described: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD, MINNESOTA, as follows: 1. Thereport of the City Engineer advising this Council that the proposed improvement on McKnight Road from Beaver Lake to Larpenteur Avenue by construction of street,-storm sewer, water main, sanitary sewer, bituminous path and concrete sidewalk is feasible and should best be made a5 proposed, is hereby received, 2. The Council will consider the aforesaid improvement in accordance with the reports and the assessment of benefited property for all or a portion of the cost of the improvement according to T4.S.A. Chapter 429, at an estimated total cost of the improvement of $2,302,986.00. 3. A public hearing will be held. in the Council Chambers of the City Hall at 1380 Frost Avenue on Monday, the 28th day of April, 1986, at 7:00 P.M. to consider said improvement. The City Clerk shall give mailed and published notice of said hearing and improvement as required by law. Seconded by Councilmember Anderson Ayes - 2dayor Greaw, Cc::m cilmembers Anderson, Juker <~:nd Wasiluk Nay - Councilmember Bastian. 9. Purchase of Radio Equipment a, Manager Lais presented the Staff report. b. Councilmember Juker moved to approve the purchase of the radio equip- ment from Motorola Communications and Electronics, Inc., on an existing bid from the City of Robbinsdale, asrecommended by Staff and that a budget trans- fer of $2,450 from the Unappropriated Fund balance in the Capitol Improvement -Projects Fund. Seconded by Mayor Greaw. Ayes - all. 10, Item E-3 became Item I-10, Amendment of Tanners Lake Partners Project 1982 Revenue Note. a. Manager Lais presented the Staff report. b, Carey LeBlanc, Manager of~Cricket Inn, spoke. c. Councilmember Juker introduced the f411owingresolution andmoved its adoption: - 13 - 4/14 86-4-61 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MAPLE440OD WHEREAS, (a) On August 23, 1982, the City of Maplewood (the "City") issued its $3,000,000 Commercial Development Revenue Note of 1982 (Tanners Lake Partners Project). (the "Note") pursuant to the terms of a Final Note Resolution adopted by the City on August 9, 1982 (the "Note Resolution"); and (b) The Note was purchased by First National Bank of Minneapolis (the "Lender") and is still held by the Lender; and (c) In connection with the issuance of the Note the City and Tanners Lake Partners, a Minnesota general .partnership (the "Borrower") entered into a loan agreement dated August 23, 1982 (the "Loan Agreement") pursuant to which the City loaned to the Borrower the proceeds received by the City from the sale of the Note to finance the acquisition of land and construction thereon of a 114 room motel (the "Project") and required that the Borrower pay directly to the Lender sums sufficient to repay the Note according to its terms; and (d) The interest of the City in the Loan Agreement has been assigned to the Lender pursuant to a pledge agreement also dated August 23, 1982; and (e) The Borrower and Lender have negotiated a modification of the Note '.i which, in the opinion of Briggs and Morgan, Professional Association, bond counsel to the City, requires the participation of the City in order to ensure that the interest on the Note does not, by virtue of its amendment, become subject to federal income taxation; and (f) The Borrower and Lender have requested that the City consent to the amendment of the Note to: 1. Allow the Borrower to immediately prepay up to $500,000 of the Note without penalty. - 2. Reduce the primary interest rate on the Note from 148 to ' 11.658 with payments of interest only to be due from May 1, 1986, until September 1, 1992. 3. Provide for up to $100,000 of additional interest to be paid on the Note calculated at the rate of 4.0358 per annum for the period from May 1, 1986 until September 1, 1992 provided that such additional interestshall be payable only from 508 of the net cash flow of the Project. The additional interest will accumulate, without interest thereon, until September 1, 1992. If the Lender has not received $100,000 of additional interest on the Note by September 1, 1992, the Lender will be entitled to receive the balance of such additional interest in a lump sum payment from the net proceeds received from the sale or refinancing of the Project in excess of $600,000. - 14 - 4/14 4. The Lender will release the personal quaranty executed by Newell P. Weed, Jr. and will add a personal guarantee from Edmund Chute; and (g) The Borrower has represented to the City that the representations on which the City relied in adopting the Note Resolution and in entering into the Loan Agreement remain true and correct as of the date hereof. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Maplewood, Minnesota, as follows: ,'j 1. The findings and representations contained in the Note Resolution adopted by the City on August 9, 1982, authorizing the Note, are hereby rati- fied, reaffirmed and. remain in full force and effect with respect to the Note, provided that all references to the Note in the Note Resolution shall, from and after May 1, 1986, be deemed to refer to the Note as amended by this reso- lution. 2. The Mayor and City Clerk of the City are hereby authorized to execute an amendment to the Note in substantially the form attached hereto as Exhibit A, with such modifications or omissions as may be approved by the city attor- ney for the City of Maplewood, and any other documents (including an Amend- ment to the Loan Agreement, an Amendment the Pledge Agreement, an IRS Election Statement and a Form 8038) which in the opinion of Briggs and Morgan, Pro- fessional Association, as bond counsel. are necessary to allow bond counsel to render its opinion that the amended Note continues to bear interest which is exempt from federal income taxation. Adopted April 14, 1986. CITY OF MAPLEWOOD, MINNESOTA Mayor ATTEST: City Clerk EXE32BIT A AMENDMENT TO COMMERCIAL DEVELOPMENT REVENUE NOTE OF 1982 (TANNERS LAKE PARTNERS PROJECT) THE CITY OF MAPLEWOOD, Ramsey County, Minnesota (the "City"), pursuant to a resolution of the City Council adopted April 14, 1986, hereby amends the $3,000,000 Commercial Development Revenue Note of 1982 (Tanners Lake Partners) (the "Note") originally issued on August 23, 1982, as follows: A. Paragraph 1 of the Note is hereby amended in its entirety to read: "l. (a) Interest only shall be paid for the period from May 1, 1986 through August 31, 1991 at the rate of (i) 11.65 Primary Interest per annum and (ii) 4.035 Contingent Interest per annum, up to a - 15 - 4/14 maximum of $100,000, all as defined in paragraph lA, below. Subject to the .conditions set forth in paragraph lA, below, in- terest shall accrue from the date hereof and shall be payable on the first day of the calendar-month next succeeding the date hereof and on .the first day of each and every month thereafter through and including August 1, 1992. (b) Commencing on October 1, 1992 and on the first day of each calendar month thereafter, the Principal Balance shall be amortized in equal consecutive monthly installments of $24,825.11 and a final installment on August 1, 2012 (the "Final Maturity Date") which shall_be equal to the unpaid Principal Balance and accrued interest thereon. .Any payment shallbe applied first to accrued interest - and thereafter to reduction of the Principal Balance. (c)(i) In the event that the interest on this Note shall become subject to federal income taxation pursuant to a Determination of Taxability (as hereinafter defined), the interest rate on this Note shall be increased, retroactively effective from and after the Date of Taxability (as hereinafter defined) to 19~ per annum (the "Tax- . able Rate"), provided that if the Determination of Taxability occurs prior to September 1, 1992, the Contingent Interest required by para- .graph 1(a)(ii), above, shall be paid in addition to the interest at the Taxable Rate required by this subparagraph 1(c)(i). The City shall immediately upon demand pay to the Holder and to each prior Holder affected by such Determination of Taxability an amount equal to the amount by which the interest accrued retroactively at such increased rate from the Date of Taxability to the date of payment exceeds the amount of interest actually accrued and paid to the Holder and any such prior Holder during said period. (Such obliga- tion of the City shall survive the payment in full of the principal amount of this Note). .Commencing on the first day of the month next following the date of payment of such additional interest and con- - tinning onthe first day of each month thereafter (unless the Holder shall accelerate the maturity of the Note pursuant to clause (ii) of this paragraph (c)), this Note shall be payable as follows: (A) if amortization of the Principal Balance had not theretofore commenced, the monthly payments of inter- - est due only hereunder shall be increased to reflect, in addition to the Contingent Interest, the accrual of interest at the Taxable Rate and the monthly installments of principal and interest payable commencing with the Octo- ber 1, 1992 payment shall be recomputed on the basis of the Taxable Rate on an assumed thirty year amortization; or (B) if amortization of the Principal Balance had theretofore commenced_the monthly installments of principal and in- terest payable commencing with the next succeeding pay- ment shall be recomputed on the basis of the Taxable Rate and amortization over the remaining portion of the original assumed amortization. - 16 - 4/14 (ii) Upon a Determination of Taxability, the Holder may declare the entire Principal Balance of this Note together with accrued interest thereon at such retroactively increased Taxable Rate to be immediately due and payable, plus the prepayment premium calculated in accordance with paragraph 8 hereof. (iii) The Holder shall give notice, as soon as practicable, to the Borrower of any Notice of Taxability, as hereinafter defined, received by the Holder and permit the Borrower to contest, litigate i or appeal the same at its sole expense; provided that any such con- test, litigation or appeal is, in the reasonable opinion of the Holder, being undertaken and carried forward in good faith, dili- gently and with reasonable dispatch. In the event any such contest, litigation or appeal is undertaken, the increased interest provided in paragraph (b)(i) shall, nevertheless, be payable to the Holder and shall be held by the Holder in escrow (without paying interest thereon) pending final disposition of such contest, litigation or appeal, provided that the Borrower shall indemnify and hold harmless the Holder and each prior Holder from any and all penalties, interest or other liabilities which they may incur on account of such contest, litigation or appeal. (iv) The terms "Determination of Taxability," "Date of Taxa- bility" and "Notice of Taxability" shall have the meanings ascribed to such terms in the Loan Agreement, dated as of August 23, 1982 between the City and Tanners Lake Partners (the "Borrower"), as amended by the Amendment to Loan Agreement dated May 1, 1986 (col- lectively the "Loan Agreement")." B. The Note is hereby amended by adding the following paragraph lA: ' "1Fi. (a) Contingent Interest in the maximum amount of $100,000 is payable out of 50~ of the Net Available Cash Flow of the Project, as de- fined herein. For the purpose of calculating the amount of Contingent Interest payable each year, "Net Available Cash Flow" of the Project shall mean the "Gross Revenues" derived by the. Company from the operation of the project less "Debt Service Payments" and "Operating Expenses", all as defined below. (b) To the extent that the Contingent Interest payments for any year do not equal at least 4.035, and provided that the Lender has not already received the maximum amount of $100,000 of Contingent Interest, the Contingent Interest necessary to provide the Holder with a total of 4.035 Contingent Interest per annum will accumulate (without interest thereon) and will be payable from 50~ of future Net Available Cash Flow and, to the extent not paid from Net Available Cash Flow, from 100 of any "Sale or Repayment Proceeds" derived from the sale or~nefinancing of the Project in excess of $600,000, all as more fully described in the Loan Agreement. (c) For the purpose of calculating the amount of money avail- able for the payment of Contingent Interest, the terms used in this Para- - graph lA shall have the following meanings: - 17 - 4/14 Debt Service-Payments: all principal and interest due on (i) this Note, (ii) the $135,000 loan made by Days Inn to Tanners Lake-Partners, (iii) the $300,OOO.revolving line of credit to Tan- - ners Lake Partners with the-Lender; and (iv) any other loan to Tanners Lake Partners approved by the Lender; Gross Revenues: all income and revenue from the project and from the operations thereof, paid and or received by Tanners Lake Partners and its manager, agent, employees or representatives; Net Available-Cash-Flow: the Gross Revenues derived from the operation of the Project minus Debt Service payments and Operating Expenses; Operating Expenses: all operating expenses of the Project (except debt service and depreciation) determined in accordance with generallyaccepted accounting principles made during a calen- dax~~year or applicable portion thereof (in the case of payment for a partial year), including, but without limitation, expenses paid or incurred with respect to: (A) the administration or operation of the Project; B) current maintenance and repairs necessary tp maintain the Project in adequate repair and operating condition (not including capital improvements or amounts paid from reserve accounts); (C) labor and cost of material and supplies necessarily used for such current operation, maintenance and repairs (not including capital improvements or amounts paid from reserve accounts); (D) premiums for insurance of the project against risks. and in - amounts for which insurance is usually carriedby prudent owners of like properties including but not limited to insurance required by the Loan Agreement or the Mortgage; (E) premiums for insurance of the Company and its partners and employees against liability for damage to persons and property in- curred in connection with such operation, in amounts such as are usually carried by prudent operators of similar enterprises; (F) charges, reasonably required for the accumulation of a reserve for the renewal, replacement, or improvement of the Project not to exceed 3~ of gross revenue; (G) management fees not to exceed 7.5~ of gross revenue; (H) real estate taxes and current installments of special assessments; (I) license and permit fees; and (J) utilities. Sale orRepayment: means the sale or other disposition of the Project (a "Sale"), or, in the absence of a Sale, the repayment of - 18 - 4/14 the principal and interest, if any, payable upon maturity or remarketing of the Bonds (a "Repayment"). For this purpose, a Sale includes a syndication, after three years following con- struction completion, of more than 50~ of the economic interest (not including tax benefits) in Tanners Lake Partners. - Sale or Repayment Proceeds: means the proceeds from a Sale after deduction of (i) all expenses related to such Sale and (ii) all amounts necessary to repay the loans described in the defini- tion of Debt Service Payments or, in the case of a Repayment, an amount equal to the appraised fair market value of the Project less debt repayment and the estimated expenses of a Sale of such Project." C. The Note is hereby amended by adding the following Paragraph 1B: 1B. Adjustment upon non-deductible percentage being applicable to the Note and upon change in non-deductible percentage. If the percentage of reduction (the "Disallowance Deduction") set forth in Section 291(a)(3) of the Internal Revenue Code of 1954, as amended (the "Code"), with respect to any financial institution, is deter- mined to be applicable to the Lender's ownership of the Note and once determined to be applicable to the Note, upon any change in the Disallowance Deduction, the interest rate on the Note shall automatically be adjusted as of the effective date of such change by adding thereto a percentage equal to the Disallowance Deduction in effect after such change minus the Disallowance Deduction in ef- fect immediateiy prior to such change times 4.35, with the disallow- ance adjustment rate being expressed as decimals. D. Paragraph 5 of the Note is hereby amended to delete Newell P. Weed, Jr. as one of the guarantors and to add, as a guarantor, Edward Chute. E. Paragraph 7 of the Note is hereby amended to allow prepayment of up to $500,000 of the Principal Balance of the Note, without penalty, provided that such prepayment is received on or before May 2, 1986. - IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts and things required to exist, happen and be performed precedent to or in the issuance of this Amendment to the Note do exist, have happened and have been performed in regular and due form as required by law, and that except as specifically .stated herein, the terms and conditions of the Note remain unchanged. IN WITNESS WHEREOF, the City has caused this Amendment to the Note to be duly executed in its name by the manual signatures of the Mayor, City Clerk, and has caused the corporate seal to be affixed hereto, and has caused this Amendment to the Note to be dated May 1, 1986. CITY OF MAPLEWOOD, MINNESOTA Mayor ATTEST: City Clerk (SEAL) - 19 - 4/14 Seconded by Councilmember Wasiluk. Ayes - all. J. VISITOR PRESENTATIONS None. K. COUNCIL PRESENTATIONS 1. Open Meeting Law a. Councilmember Juker requested a clarification of the Open Meeting Law. City Attorney John Bannigan stated all meetings are open to the public. There are a few stated exceptions, one of which is labor union negotiations. Another would be personnel problems. All meetings need to be taped or notes taken by the City Clerk as Secretary to the Council. Tapes arld minutes from personnel meetings shall be kept separately and in a secure location. 2. Highway 61 and Parkway Drive a. Councilmember Juker questioned if State could be contacted regarding the placement of a !'no turn onred" sign while going southbound on Highway 61 at the intersection of Parkway Drive. b. Staff will investigate. 3. Gambling a. Gary Bastian would like to review the City's current gambling laws. b. Tabled to a future date. 4. Park Debris a. Councilmember Bastian discussed the debris' that was put in Cope Avenue Park site. b. City Engineer Haider will investigate. 5. Motorcycle Ordinance a. Councilmember Bastian complained of the noise caused by motoreyu`ies-,near Woodlyn and County Road D. - b. Staff will investigate. _ 6. Drainage Pond Dredging a. Councilmember Bastian questioned when the drainage pond at Maplewood Heights Park would be dredged of its sand debris. b. Councilmember Bastian suggested a strong worded letter be sent to the County requesting them to clean the sand from their roads before it becomes a problem to our system. c. Staff will investigate. - 20 - 4/14 - - 7. Battle Creek Park a. Manager Lais will meet with Ramsey County. L. ADMINISTRATIVE PRESENTATIONS None. M. ADJOURNMENT - 9:38 P.M. City Clerk - 21 - .4/14