HomeMy WebLinkAbout10.02.80 MINUTES OF MAPLEWOOD CITY COUNCIL
7:30 P,M„ Thursday, October 2, 1980
~ Council Chambers, Municipal Building
Meeting No, 80-25
A, CALL TO ORDER
A regular meeting of the City Council of Maplewood, Minnesota, was held in the Council
'i Chambers, Municipal Building and was called to order at 7:30 P,M, by Mayor Greavu,
B, ROj,L CALL
John C. Greavu, Mayor Present
Norman G. Anderson, Councilman Present
Ij Gary W, Bastian, Councilman Present
Frances L, Juker, Councilperson Present
Earl L, Nelson, Councilman Present
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C. APPROVAL OF MINUTES
1, Minutes No. 80-21 (August 21, 1980)
Councilman Anderson moved to approve the Minutes of Meeting No, 80-21 (August 21 1980)
I as submitted.
Seconded by Councilman Nelson. Ayes - all,
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D. APPROVAL OF AGENDA
Mayor Greavu moved to approve the Agenda as amended:
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1. 5% Limitation on Commercial Revenue Notes
2, Minutes and Council Actions
3. Request from Attorney General
4. McKnight Road
5. Gambling Permit - Hill Murray
Seconded by Councilman Bastian. Ayes - all,
' E, CONSENT AGENDA
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Council removed Consent Agenda Item 4, 7 and 9 to become Items J 3, 4 and 5.
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j Mayor Greavu moved, seconded by Councilman Nelson, Ayes - all, to approve Items 1,
'j 2 3 5 6 8 of the Consent Agenda as recommended,
~ 1. Accounts Payable
I Approved the accounts (Part I - Fees, Services, Expenses, Check No, 004710 through
Check No, 004678 $508,920.31; Check No. 006960 through Check No, 007136 - $98,931.33:
~ Part II - Payroll - Check No, 25598 through Check No. 25731 - $52,010,29) in the
I amount of $659,861.93.
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2. Time Extension - Linwood Heights
Approved a 90 day time extension for the Linwood Heights Preliminary Plat subject
1 to original conditions.
3. Tax Abatement: City Owned Property
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Resolution No. 80-10-186
.WHEREAS, the City of Maplewood, Minnesota, acquired the above coded property
described as follows: Lot One (1), Block Five (5), Crestview, as per attached statement
of delinquent assessments pursuant to records in the office of the Director of Property
Taxation, Ramsey County, Minnesota.
FURTHER, the above described property was acquired by the City of Maplewood from
Marvin R. Anderson Construction Company for park expansion purposes. It formerly
was owned by J.R. Walker & Sons, Incorporated who conveyed title to Marvin R. Anderson
~ Construction Company by deed dated March 7, 1977,
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{ FURTHER, Warranty Deed from Marvin R. Anderson Construction Company to the City
_1 of Maplewood was inadverdently missplaced and was not recorded in the office of Ramsey
~ County Recorder. Property was used in 1977 and is presently used by the City of
Maplewood for Park Purposes.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of Maplewood, Minnesota, that
the assessments as above recited, identified by the above code number (57 20000 010 OS)
~ in the total amounts of $3,217.38 levied for 1978 and $3,051.92 for 1979, Be Abated ar'-
Cancelled form the records of the Director of Property Taxation, Ramsey County, Minn-''
esota.
5. Final Payment: Lift Station No. 7
Resolution No. 80-10-187
WHEREAS, pursuant to a written contract signed with the City on June 5, 1980,
E.F. Jedlicki, Inc, has satisfactorily completed the Remodeling of Lift Station Number
7 in accordance with such contract;
j~ NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF MAPLEWOOD, MINNESOTA, the work
completed under said contract is hereby accepted and approved; and
BE IT FURTHER RESOLVED that the City Clerk and Mayor are hereby directed to issue
a proper order for the final payment on such contract, taking the contractor's receipt
in full for the sum of $39,902.00.
~ 6. No Parking Zone - Frost Avenue Connection
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Resolution No. 80-10-187B
~ WHEREAS, the County has planned the improvement of Frost Avenue Connection from
East Shore Drive to Frost Avenue.
WHEREAS, the County will be expending County State Aid funds on the improvement
of said street; and
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2. Time Extension - Linwood Heights
Approved a 90 day time extension for the Linwood Heights Preliminary Plat subject
to original conditions.
3. Tax Abatement: City Owned Property
Resolution No. 80-10-186
A RESOLUTION requesting the cancellation and removal from taxation records in the
office of the Director of Property Taxation, Ramsey County, Minnesota, the assessments
levied identified as follows; viz:
RAMSEY COUNTY CODE NUMBER-LOCAL SPECIAL ASSESSMENTS NUMBERS-TOTAL AMOUNTS LEVIED
57-20000-010-05--Year 1978 - No. 208 $ 633.32
No. 216 389.20
No. 217 1,808.90
No. 248 52.02
No. 1597 333.94
TOTAL $ 3,217.38
57-20000-010-05--Year 1979 - No. 208 $ 612.40
No. 216 376.34
No. 217 1,719.74
No. 248 49.18
No. 1597 294.26
TOTAL $ 3,051.92
57-20000-010-05--Year 1980 - No. 208 $ 591.48
No. 216 363.50
No. 217 1,630.58
No. 248 46.34
No. 1597 278.18
No. 1909 287.66
TOTAL $ 3,197.74
WHEREAS, the City of Maplewood, Minnesota, acquired the above coded property des-
cribed as follows: Lot One (1), Block five (5), Crestview, as per attached statement
of delinquent assessments pursuant to records in the office of the Director of
Property Taxation, Ramsey County, Minnesota.
FURTHER, the above described property was acquired by the City of Maplewood from
Marvin H. Anderson Construction Company for park expansion purposes. It formerly
was owned by J. R. Walker & Sons, Incorporated, who conveyed title to Marvin N. Ander-
son Construction Company by deed dated March 7, 1977.
FURTHER, Warranty Deed from Marvin H. Anderson Construction Company to the City of
Maplewood was inadverdently missplaced and was not recorded in the office of Ramsey
Recorder. Property was used in 1977 and is presently used by the City of Maplewood
for Park Purposes. _
NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF MAPLEVJOOD, MINNESOTA, that
( the assessments as above recited, identified by the above code and numbers in the total
amounts of $3,217.28 for 1978, $3,051.92 for 1979 and $3,197.74 for 1980, BE ABATED
AND CANCELLED FROM THE RECORDS OF THE DIRECTOR OF PROPERTY TAXATION, RAMSEY COUNTY,
MINNESOTA. PLUS: ALL FORTHCOMING AMOUNTS LEVIED FOR YEAR OF 1981.
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5. Final Payment: Lift Station No. 7
Resolution No. 80-10-187
WHEREAS, pursuant to a written contract signed with the City on June 5, 1980,
E.F. Jedlicki, Inc. has satisfactorily completed the Remodeling of Lift Station
a No. 7 in accordance with such contract;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF MAPLEWOOD, MINNESOTA, the work
completed under siad contract is hereby accepted and approved; and
BE IT FURTHER RESOLVED that the City Clerk and Mayor are hereby directed to
issue a proper order for the final payment on such contract, taking the contractor's
receipt in full for the sum of $39,902.00.
6. No Parking Zone - Frost Avenue Connection
Resolut ion No. 80-10-1876
WHEREAS, the County has planned the improvement of Frost Avenue Connection
from East Shore Drive to Frost Avenue.
WHEREAS, the County will be expending County State Aid funds on the improve-
ment of said street; and
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WHEREAS, said improvement does not conform to the approved minimum standards as
j 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
'i the parking of motor vehicles on the East side of Frost Avenue Connection from East
~ Shore Drive to Frost Avenue at all times.
8. Final Payment - Street Resurfacing Program
Resolution No. 80-10-188
WHEREAS, pursuant to a written contract signed with the City on August 6, 1980,
Hardrives, Inc. has satisfactorily completed the Bituminous Resurfacing Improvement
Project 80-11;
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF MAPLEWOOD, MINNESOTA, the work
completed under said contract is hereby accepted and approved; and
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BE IT FURTHER RESOLVED, that the City Clerk and Mayor are hereby directed to issue
a proper order for the final payment on such contract, taking the contractor's
~ receipt in full for the sum of $56,051.88.
PULBIC HEARINGS
1. Street Vacation - Lark Avenue and Kennard Streets - Ristrom - 7:30 P,M.
a. Mayor Greavu convened the meeting for a public hearing regarding the request
of Mr. and Mrs. Reuben Ristrom to vacate Lark Avenue between Kennard Street and
Germain Street and Kennard Street between Cope Avenue and Lark Avenue. The Clerk
noted the dates of publication of the hearing notice and stated it was in order.
b. Acting Manager Schaller presented the staff report with the recommendation
of denial of both street vacations, on the basis that:
1. The vacations have not been shown to be in the public interest;
2. Both streets may be needed for the proposed Cope Avenue park site or private
development.
' c. Chairman Les Axdahl presented the following Planning Commission recommendation:
"Commissioner Fischer moved that the Planning Commission recommend to the City
Council denial of both street vacations, as being premature at this time on the
basis that:
~ 1. The vacations have not been shown to be in the public interest;
2. Both streets may be needed for the proposed Cope Avenue park site or private
development,
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Commissioner Whitcomb seconded, Ayes 10, Nays - 1 (Commissioner Prew)"
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d. Mayor Greavu called for proponents, None were heard.
e, Mayor Greavu called for opponents. The following were heard:
l Mr. John Kavanagh, 758 E. 4th Street;
(opposes vacation until the City acquires the property that is under condem-
nation)
f. Mayor Greavu closed the public hearing.
g, Councilman Nelson moved to deny the re nest of Mr, and Mrs. Reuben Ristrom to
vacate Lark Avenue between Kennard and Germain Streets and Kennard Street between
Cope Avenue and Lark Avenue, based on the staff recommendations.
Seconded by Councilman Anderson, Ayes - all,
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G. AWARD OF BIDS
None.
I H. UNFINISHED BUSINESS
I None.
I. VISITOR PRESENTATIONS.
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~ None.
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J. NEW BUSINESS
1, Housing Code Amendment - Second Reading
;I a, Acting Manager Schaller presented the staff report,
r b. Councilperson Juker presented a proposed ordinance pertaining to a single
family dwelling housing code.
c. Councilman Bastian moved to refer the proposed Housing Code to the Housing
and Redevelopment Authority for review.
Seconded by Councilman Nelson. Ayes - all.
F. PUBLIC HEARINGS (continued)
2. Alley Vacation - Block 5, Gladstone Addition - 7:45 P.M.
a, Mayor Greavu convened the meeting for a public hearing regarding the request
of Thomas Mathisen to vacate alley right of way west of Clarence Street, between
~ Summer and Ripley Avenues. The Clerk noted the dates of publication of the hearing
~ notice and stated it was in order.
b. Acting Manager Schaller presented the staff report.
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~ c. Chairman Les Axdahl presented the following Planning Commission recoxnmendatiox.
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"Comm~.ssioner Pellish moved the Planning Commission recommend to the City Council
~ vacation of the alley right of way west of Clarence Street between Ripley and
~ Summer Avenues, subject to retention of a 10 foot wide utility easement, located
on the east 1/2 of the subject right of way.
Approval is based upon the following findings:
1. The alley does not, and is not, proposed to serve a public purpose other than
as a corridor for overhead utilities;
2. The right of way has been established as rear yard space by adjacent land
owners;
3. It is in the public interest to vacate the subject alley right of way.
Commissioner Whitcomb seconded. Ayes all."
d. Mayor Greavu called for proponents. The following were heard:
Dan Hokinson, 1851 Clarence Street, questioned how the vacated alley property
will be divided.
e. Mayor Greavu called for opponents. None were heard.
f. Mayor Greavu closed the public hearing.
g. Councilman Anderson introduced the following resolution and moved its adoption:
80 - 10 - 189
WHEREAS, pursuant to the provisions of Minnesota Statutes, Section 412.851,
't - thereof, the Maplewood City Council, upon Petition of a majority of the owners
of the land abutting the north-south alley right of way proposed to be vacated,
! and after a public hearing preceeded by two (2) weeks published and posted notice,
proposes the vacation of the following described alley right of way located in
Block 5, Gladstone Addition to wit:
Property abutting alley to be vacated: Lots 1 thru 30, Block 5
Gladstone Addition.
WHEREAS, the Maplewood City Council finds that the vacation of the above
,j described alley right of way are in the interest of the public due to changing
land uses and obsolete platting.
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NOW, THEREFORE, BE IT RESOLVED, by the City Council, Ramsey County, Minnesota,
that the above described alley right of way be and hereby are, vacated subject to
retention of a 10 foot wide utility easement located an east 1/2 of the subject
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right of way and the City Clerk is hereby directed to prepare a notice of com-
pletion of the proceedings pursuant to the provisions of Minnesota Statutes,
Section 412.851 thereof, and shall cause the same to be presented to the County
Auditor for entry upon his transfer records and the same shall be thereafter filed
with the Ramsey County Recorder.
~ Seconded by Councilman Bastian. Ayes - all.
~ J. NEW BUSINESS (continued)
2. Report on Franchise Liquor License Request
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a, Acting Manager Schaller presented the staff report.
b. Mr. Gary Gandrud, attorney representing M.G.M. Liquor Warehouse, explained
1 the proposed off-sale liquor license for 1975 E. County Road D.
c. Mr. Carmen Sarrack, 1694 Ruth Street, spoke against having a franchised
liquor operation in Maplewood.
d. No action taken.
a
F. PUBLIC HEARINGS (continued)
' 3., Rezoning - Century Avenue - Burton - 8:00 P,M,
a. Mayor Greavu convened the meeting for a public hearing regarding a request
I of Mr. Warren V. Burton to rezone 763 No. Century Avenue from R-1 to BC. The
Clerk noted the dates of publication of the hearing notice and stated it was in
' order,
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j b. Acting Manager Schaller presented the staff report.
c. Chairman Les Axdahl presented the following Planning Commission recommendation:
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"Commissioner Whitcomb moved that the Planning Commission recommend to the City
Council approval to rezone the subject property to LBC Limited Business Commercial
! on the basis that:
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~ 1, The rezoning is in compliance with the Land Use Plan;
2. The rezoning would be a continuation of the adjacent commercial property to
the south;
3. The applicant has submitted a petition signed by over 51% of the adjacent
land owners agreeing to the proposed commercial zoning;
4. The LBC zoning would provide a safeguard .for the adjacent residential develop-
ment to prevent the construction of a possibly objectionable commercial busin-
ess;
5. The City may consider rezoning the property to BC in the future, providing
there is a specific development proposal for the site.
Commissioner Fischer seconded. Ayes all."
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. Councilman Anderson moved to deny the request of Warren Burton to rezone
763 No. Century from R-1 to BC and to Council to initiate a hearing to rezone
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the property in question from R-1 to LBC.
! Seconded by Councilman Bastian. Ayes - all.
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4, Special Use Permit - Gervais Avenue - Schreier
a. Mayor Greavu convened the meeting for a public hearing regarding the request
of Richard Schreier for a special use permit to construct a mini-storage warehouse
facility with a live in caretaker. The Clerk noted the date of publication for
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the hearing notice and stated it is in order.
b. Acting Manager Schaller presented the staff report.
c. Chairman Les Axdahl presented the following Planning Commission recommendation:
"Commissioner Whitcomb moved that the Planning Commission recommend to the City
Council approval of a special use permit for the proposed mini-storage warehouse
' development, based on the findings that:
' 1. The proposal is consistent with the City's Land Use Plan
2. The development will be compatible with the existing surrounding land uses
Approval is conditioned on the building permit being taken out within one year,
Upon approval of a building permit the special use permit is valid for the life
of the building. Approval is also subject to the conditions as outlined by the
~ Community Design Review Board on September 8, 1980.
Commissioner Barrett seconded, Ayes all."
d. Mr. Richard Schreier, the applicant, spoke on behalf of the request. He
also requested that the Fire Marshal make the decision of where the fire hydrant
should be located.
e. Mayor Greavu called for proponents or opponents. The following were heard:
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Mr. John Kavanagh, 758 E, 4th Street, questioned the location and type
of building was to be constructed.
~ f. Mayor Greavu closed the public hearing.
~ g. Councilman Bastian introduced the following resolution and moved its adoption:
80 - 10 - 190
WHEREAS, a petition was filed with the City of Maplewood as provided under
Section 915.010 of the Municipal Code of the City of Maplewood, said petition
having been signed by more than 50% of the owners of property within 200 feet
of the property described as follows:
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The E 132 feet of the West 305.0 feet of the NW 1/4 of the SW 1/4 of
'j Section 11, Township 29, Range 22 lying No, of STH 36
(1800 E, Gervais Avenue)
j which has been proposed for Special Use Permit.
WHEREAS, a public hearing was held on October 2, 1980 at 8:15 P,M. in the City
Hall, notice thereof having been duly published in the official City newspaper,
and notices of said hearing having been mailed to all property owners of record
within 200 feet of the area proposed for Special Use Permit to construct a mini-
~ storage warehouse facility with a live-in caretaker; and
~ i WHEREAS, the City Planning Commission has made its recommendations; and
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WHEREAS, it appears for the best interest of the public that said petition
be granted;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD, MINNESOTA,
that the petition for the above described Special Use Pemrit for construction of
a mini-storage warehouse facility with a live in caretaker be granted, subject to "
all conditions contained in the staff report as follows:
1. The Building Permit be taken out within one year;
2. Upon approval of a building permit, the special use permit is valid
for the life of the building;
i 3. The Fire Hydrant will be located as directed by the Fire Marshal.
~ Seconded by Councilman Nelson. Ayes - all.
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~ J. NEW BUSINESS (continued)
~ 3.`- Final Approval - Metro Self Storage - Highway 36 - Commercial Revenue Note
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1 a. Councilman Anderson questioned portions of the resolution giving final approval
to the Commercial Revenue Notes for Metro Self Storage.
~ b. Mayor Greavu introduced the following resolution and moved its adoption:
80 - 10 - 191
I BE IT RESOLVED by the City Council of the City of Maplewood, Minnesota, as
~ follows:
ARTICLE ONE
DEFINITIONS, LEGAL AUTHORIZATION AND FINDINGS
1-1. Definitions.
The terms used herein, unless the context hereof shall require otherwise shall
have the following meanings, and any other terms defined in the Loan Agreement
shall have the same meanings when used herein as assigned to them in the Loan
Agreement unless the context or use thereof indicates another or different meaning
or intent.
Act: the Minnesota Municipal Industrial Development Act, Minnesota Statutes,
Chapter 474, as amended:
~ Assignment of Leases and Rents: the agreement to be executed by the Borrower
assigning all the rents, issues and profits derived from the Project to the Lender
to secure the repayment of the Note and interest thereon;
1 Assignment of the Loan Agreement: the agreement to be executed by the City
~ and the Lender assigning the Loan Agreement to the Lender;
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Bond Counsel: the firm of Briggs and Morgan, Professional Association, of
St. Paul and Minneapolis, Minnesota, and any opinion of Bond Counsel shall be a
written opinion signed by such Counsel;
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Borrower: FED Investments, a Minnesota general partnership consisting of
Robert G. Davis, Oliver Erickson and Ronald Flanagan, its successors, assigns,
and any surviving, resulting or transferee business entity which may assume its
obligations under the Loan Agreement;
City: the City of Maplewood, Minnesota, its successors and assigns;
Construction Loan Agreement: the agreement to be executed by the City, the
Borrower and the Lender, relating to the disbursement and payment of Project
Costs for the acquisition of the Land and the construction and installation of the
Improvements;
Guaranty: the personal guaranty to be executed by Robert G. Davis, Oliver
Erickson and Ronald Flanagan, in favor of the Lender;
Improvements: the structures and other improvements, including any tangible
personal property, to be constructed or installed by the Borrower on the Land
in accordance with the Plans and Specifications;
Land: the real property and any other easements and rights described in
Exhibit A attahced to the Loan Agreement;
Lender: The Midway National Bank of St. Paul, St. Paul, Minnesota, its success-
ors and assigns;
i Loan Agreement: the agreement to be executed by the City and the Borrower,
providing for the issuance of the Note and the loan of the proceeds thereof to the
Borrower;:_ including any amendments or supplements thereto made in accordance with
its provisions;
Mortgage: the Mortgage, Security Agreement and Fixture Financing Statement to
~ be executed by the Borrower as mortgagor, to the Lender, as mortgagee, securing
payment of the Note and interest thereon;
Note: the $950,000 Commercial Development Revenue Note of 1980 (Metro Self-
Storage Project), to be issued by the City pursuant to this Resolution and the Loan
Agreement;
Note Register: the records kept by the City Clerk to provide for the regis-
tration of transfer of ownership of the Note;
Plans and Specifications: the plans and specifications for the construction
and installation of the Improvements on the Land, which are approved by the Lender,
i together with such modifications thereof and additions thereto as are reasonably
determined by the Borrower to be necessary or desirable for the completion of the
Improvements and are approved by the Lender;
' Principal Balance: so much of the principal sum on the Note as from time to
time may have been advanced to or for the benefit of the City and remains unpaid
at any time;
~ Project: the Land and Improvements as they may at any time exist;
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Project Costs: the total of all "Construction Costs" and "Loan and Carrying
Charges," as those terms are defined in the Loan Agreement;
Resolution: this Resolution of the City adopted October 2, 1980, together with
any supplement or amendment thereto.
All references in this instrument to designated "Articles," "Sections" and
other subdivisions are to the designated Articles, Sections and subdivisions of
this instrument as originally executed. The words "herein," "hereof" and "here-
under" and other words of similar import refer to this Resolution as a whole not
to any particular Article, Section or subdivision.
1-2. Legal Authorization,
The City is a political subdivision of the State of Minnesota and is authorized
under the Act to initiate the revenue producing project herein referred to, and to
issue and sell the Note for the purpose, in the manner and u;son the terms and
conditions set forth in the Act and in this Resolution.
- 1-3. Findings.
~ The City Council has heretofore determined, and does hereby determine, as
follows:
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(1) The City is authorized by the Act to enter into a Loan Agreement for the
public purposes expressed in the Act;
(2) The City has made the necessary arrangements with the Borrower for the
establishment within the City of a Project consisting of certain property all as
more fully described in the Loan Agreement and which will be of the character and
accomplish the purpose provided by the Act, and the City has by this Resolution
authorized the Project and execution of the Loan Agreement, the Assignment of
Loan Agreement, the Note and the Construction Loan Agreement, which documents
specify the terms and conditions of the acquisition and financing of the Project;
(3) in authorizing the Project the City°s purpose is, and in its judgment
the effect thereof will be, to promote the public welfare by: the attraction,
encouragement and development of economically sound industry and commerce so as
to prevent, so far as possible, the emergence of blighted and marginal lands and
areas of chronic unemployment; the development of revenue-producing enterprises
to use the available resources of the community, in order to retain the benefit of
the community's existing investment in educational and public service facilities;
the halting of the movement of talented, educated personnel of all ages to other
areas thus preserving the economic and human resources needed as a base for pro-
~ viding governmental services and facilities; the provision of accessible employment
opportunities for residents in the area; the expansion of an adequate tax base to
11 finance the increase in the amount and cost of governmental services, including
educational services for the school district serving the community in which the
Project is situated;
ij (4) the amount estimated to be necessary to partially finance the Project
Costs, including the costs and estimated costs permitted by Section 474.05 of the'
Act, will require the issuance of the Note in the principal amount of $950,000 as
i hereinafter provided;
(5) it is desirable, feasible and consistent with the objects and purposes of
the Act to issue the Note, for the purpose of partially financing the Project;
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(6) the Note and the interest accruing thereon do not constitute an indebted-
ness of the City within the meaning of any constitutional or statutory limitation
and do not constitute or give rise to a pecuniary liability or a charge against
the general credit or taxing powers of the City and neither the full faith and
_,._j credit or taxing powers of the City is pledged for the payment of the Note or
interest thereon; and
(7) The Note is an industrial development bond within the meaning of Section
103(b) of the Internal Revenue Code and is to be issued within the exemption pro-
vided under subparagraph (A) of Section 103 (b) (6) of the Code with respect to an
{ issue of $1,000,000 or less; provided that nothing herein shall prevent the City
from hereafter qualifying the Note under a different exemption if, and to the
extent, such exemption is permitted by law and consistent with the objects and
purposes of the Project.
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1-4. Authorization and Ratification of Project.
The City has heretofore and does hereby authorize the Borrower, in accordance
with the provisions of Section 474.03(7) of the Act and subject to the terms and
conditions set forth in the Construction Loan Agreement, to provide for the con-
struction and installation of the Project pursuant to the Plans and Speicifications
by such. means as shall be available to the Borrower and in the manner determined by
the Borrower, and without advertisement for bids as may be required for the con-
- struction and acquisition of municipal facilities; and the City hereby ratifies,
affirms, and approves all actions heretofore taken by the Borrower consistent with
and in anticipation of such authority and in compliance with the Plans and Specif-
ications.
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ARTICLE TWO
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NOTE
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2-1. Authorized Amount and Form of Note.
The Note issued pursuant to this Resolution shall be in substantially the form
set forth herein, with such appropriate variations, omissions and insertions as
are permitted or required by this Resolution, and in accordance with the further
provisions hereof; and the total principal amount of the Note that may be out-
standing hereunder is expressly limited to $950,000 unless a duplicate Note is
issued pursuant to Section 2-6. The Note shall be in substantially the following
form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
~ COUNTY OF RAMSEY
CITY OF MAPLEWOOD
Commercial Development Revenue Note of 1980
(Metro Self-Storage Project)
$950,000
1
FOR VALUE RECEIVED the CITY OF MAPLEWOOD, Ramsey County, Minnesota, (the
"City") hereby promises to pay the Midway National Bank of St. Paul, St. Paul,
~ Minnesota (the "Lender"), its successors or registered assigns, from the source
and in the manner hereinafter provided, the principal sum of Nine Hundred Fifty
Thousand and no/100 Dollars ($950,000), or so much thereof as may have been ad-
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vanced to or for the benefit of the City and remains unpaid from time to time
(the "Principal Balance"), with interest thereon at the rate of eleven percent
i (11%) per annum or at such higher rate as hereinafter provided, in any coin or
currency which at the time or'times of payment is legal tender for the payment
of public or private debts in the United States of America, in accordance with
the terms hereinafter set forth.
1. (a) From and after the date hereof and until the "Amortization Date",
(the first day of the calendar month next succeeding completion of the Project in
accordance with the Construction Loan Agreement hereinafter referred to, but in any
event completion shall be no later than October 31, 1981 unless extended by the
Lender), interest shall accrue from and after the date of each and every advance
made under this Note and shall be payable on the first day of the calendar month
next succeeding the date upon which the first advance is made, and on the first
day of each and every month thereafter.
(b) From and after the Amortization Date, the Principal Balance shall
be amortized on the basis of a 20 year amortzation schedule and shall be paid in
~ 120 equal consecutive monthly installments of $9,806.00 each, payable on the first
j day of each month commencing on the first day of the calendar month next succeeding
the Amortization Date and continuing until the tenth anniversary of the first
payment of principal and interest hereunder, on which date the Principal Balance
and accrued interest thereon shall be due and payable in full (the "Final Maturity
Date"). Payments shall be applied first to interest due on the Principal Balance
'I and thereafter to reduction of the Principal Balance.
(c) If the interest on this Note should become subject to federal income
taxation pursuant to a "Determination of Taxability" as that term is defined in
Section 4.07 of the Loan Agreement hereinafter referred to, and the Lender deliver
to the Borrower a copy of the notice of the "Determination of Taxability", the
interest rate shall be immediately increased to two and one-half percent (21z%) per
annum over the yeeld on 8 3/8% United States Treasury Bonds of 8/15/00/95, which
rate shall be adjusted each month according to the yeeld quoted on the first
business day of each month by the Chase Manhattan Bank, N.A. (or if such Bank
ceases to exist, or ceases to quote such yield, by such other Bank as the Lender
shall choose). Each monthly installment thereafter payable shall be adjusted
and shall be equal to the amount necessary to amortize the remaining Prinicpal
11 Balance with interest at said increased rate on the basis of a twenty year amori-
tzation schedule from the date of the first payment of principal and interest
hereunder with the final Principal Balance due and payable on the Final Maturity
Date; and in addition the Lender shall be entitled to receive an amount equal to
~ the aggregate difference between (i) the monthly payments theretofore made to
the Lender on this Note between the "Date of Taxability", as that term is defined
in the Loan Agreement, and the date of receipt by the Borrower of notice of such
"Determination of Taxability", and (ii) the monthly payments which would have been
made during such period if the increased rate had been in effect throughout such
period; all as provided in Section 4.07 of the Loan Agreement.
2. In any event, the payments hereunder shall be sufficient to pay all prin-
cipal and interest due, as such principal and interest becomes due, and to pay any
I pgemium, at maturity, upon redemption, or otherwise. Interest shall be computed
1 on the basis of a 30 day month and a 360 day year, but charged for the actual numbzr•
of days principal is unpaid.
` 3. If the Lender should not receive on the first day of any month all of the
~ principal and interest then due on the Note, and if the City should continue to
be in arrears through the fifteenth day of such month, then, in addition to all
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other sums due hereunder, the Lender shall be entitled to receive on the sixteenth
~ day of such month a service charge equal to four percent (4.00%) of the delinquent
i principal and interest.
4. Principal and interest and any premium due hereunder shall be payable
at the principal office of the Lender, or at such other place as the Lender may
designate in writing.
5. This Note is issuedby the City to provide funds for a Project, as defined
in Section 474.02, Subdivision 1, Minnesota Statutes, consisting of the acquisition
'I of real estate, and the construction of a self-storage warehouse facility thereon,
{ pursuant to a Loan Agreement of even date herewith between the City and FED
Investments, a Minnesota general partnership consisting of Robert G. Davis, Oliver
Erickson and Ronald Flanagan (the "Borrower") {the "Loan Agreement"), and this
Note is further issued pursuant to and in full compliance with the Constitution
and laws of the State of Minnesota, particularly Chapter 474, Minnesota Statutes,
and pursuant to a resolution of the City Council duly adopted on October 2, 1980
(the "Resolution").
6. This Note is secured by an assignment of the Loan Agreement by the City
to the Lender, a Mortgage, Security Agreement and Fixture Financing Statement, of
even date herewith between the Borrower, as mortgagor, and the Lender as mortgagee
(the Mortgage), by an Assignment of Leases and Rents, of even date herewith, from
the Borrower to the Lender (the "Assignment of Leases and Rents") and by a Personal
Guaranty executed by Robert G. Davis, Oliver Erickson and Ronald Flanagan. The
disbursement of the of the proceeds of this Note is subject to the terms and
~ conditions of a Construction Loan Agreement of even date herewith between the
Lender, the City and the Borrower (the "Construction Agreement").
7. The Lender may extend the times of payments of interest and/or principal
of or any penalty or permium due on this Note, including the date of the Final
Maturity Date, without notice to or consent of any party liable hereon and without
releasing any such party. However, in no event may the Final Maturity Date be
extended beyond thirty (30) years from the date hereof.
8. This Note may be prepaid at any time, either in whole or in part, but in
• case of prepayment of any amount or amounts in any calendar year the total of which
exceeds 20% of the original Principal Balance as of the Amortization Date, then
there shall also be paid, over and above the interest accrued under the terms
of this Note, a premium in an amount equal to the interest for 180 days, at the
rate of interest charged on the Note at the time of such prepayment on that portion
of such total prepayment which is in excess of 20% of the original Principal
Balance.
~ 9.. This Note is further subject to prepayment, at any time, without a premium
in whole or in part, upon the occurrence of certain events of damage, destruction
or condemnation of the property secured by the Mortgage, as specified in Section
j 5.02 of the Loan Agreement and Section 3-1 of the Resolution, or, at the option
;j of the Lender, within days after the Lender receives a notice of a "Determination
of Taxability" as that term is defined in Section 4.07 of the Loan Agreement,
~ 10. The monthly payments due under paragraph 1 hereof, shall continue to be
due and payable in full until the entire Principal Balance and accrued interest
i due on this Note have been paid regardless of any partial prepayment made hereunder.
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11. As provided in the Resolution and subject to certain limitations set forth
therein, this Note is transferable upon the books of the City at the office of the
i City Clerk, by the Lender in person or by his agent duly authorized in writing, at the
Lenders expense, upon surrender hereof together with a written instrument of transfer
satisfactory to the City Clerk, duly executed by the Lender or his duly authorized
agent. Upon such transfer the City Clerk will note the date of registration and the
name and address of the new registered Lender in the registration blank appearing
below. The City may deem and treat the person in whose name the Note is last reg-
istered upon the books of the City with the Note is last registered noted on the Note,
as the absolute owner hereof, whether or not overdue, for the purpose of receiving
payment of or on the account, for the purpose of receiving payment of or on the account
of the Principal Balance, redemption price or interest and for all other purposes,
j and all such payments so made to the Lender or upon his order shall be valid and
i effective to satisfy and discharge the liability upon the Note to the extent of the
sum or sums so paid, and the City shall not be affected by any notice to the contrary.
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12. All of the agreements, conditions, convenants, provisions and stipulations
contained in the Resolution, the Mortgage, the Assignment of Leases and Rents, the
Loan Agreement and the Construction Loan Agreement are hereby made a part of this
Note to the same extent and with the same force and effect as if they were fully set
forth herein.
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I~ 13. This Note and interest thereon and any penalty or premium due hereunder are
payable solely from the revenues and proceeds derived from the Loan Agreement, the
Mortgage and the Assignment of Leases and Rents, and do not constitute a debt of the
City within the meaning of any constitutional or statutory limitation, are not payable
from or a charge upon any funds other than the revenues and proceeds pledged to the
~ payment thereof, and do not give rise to a pecuniary liability payment thereof, and do
not give rise to a pecuniary liability of the Gity or, to the extent permitted by law,
i of any of its officers, agents or employees, and no holder of this Note shall ever
have the right to compel any exercise of the taxing power of the City to pay this
Note or the interest thereon, or to enforce payment thereof against any property of
the City, and this Note does not constitute a charge, lien or encumbrance, legal or
equitable, upon any property of the City, and the agreement of the City to perform or
cause the performance of the covenants and other provisions herein referred to shall be
subject at all times to the availability of revenues or other funds furnished for such
purpose in accordance with the Loan Agreement, sufficient to pay all costs of such
performance or the enforcement thereof.
14. It is agreed that time is of the essence of this Note. In the event of failure
by the City to pay when due any monthly installment of principal or interest within
fifteen (15) days after the due date, or any premium or penalty due hereunder, or if
an Event of Default shall occur, as set forth in the Mortgage, the Assignment of
Leases and Rents, the Construction Loan Agreement or the Loan Agreement, then the
Lender shall have the rifht and option to declare, upon ten (10) days written notice,
the Principal Balance and accrued interest thereon, immediately due and payable, .but
f solely from sums made available under the Loan Agreement and Mortgage. Failure to
exercise such option at any time shall not constitute a waiver of the right to exercise
the same at any subsequent time.
I~ 15. The remedies of the Lender, as provided herein and in the Mortgage, the
Assignment of Leases and Rents, the Loan Agreement and the Construction Loan Agreement
are not exclusive and shall be cumulative and concurrent and may be pursued singly,
successively or together, at the sole discretion of the Lender, and may be exercised
~ as often as occasion therefor shall occur; and the failure to exercise any such right
~ or remedy shall in no event be construed as a waiver or release thereof.
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16. The Lender shall not be deemed, by any act of omission or commission, to
have waived any of its rights or remedies hereunder unless such waiver is in
~ writing and signed by the Lender and, then only to the extent specifically set
~ ~ forth in the writing. A waiver with reference to one event shall not be construed
as continuing or as a bar to or waiver of any right or remedy as to a subsequent
~ event.
17. This Note has been issued without registration under state or federal
or other securities laws, pursuant to an exemption for such issuance; and accord-
ingly the Note may not be assigned or transferred in whole or part, nor may a
participation interest in the Note be given pursuant to any participation agreement
except in accordance with an applicable exemption from such registration require-
ments.
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
1 Note do exist, have happened and have been performed in regular and due form as
required by law.
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IN WITNESS WHEREOF, the City has cuased this Note to be duly executed in its
name by the manual signatures of the Mayor and the City Clerk and has caused the
corporate seal to be affixed hereto, and has cuased this Note to be dated October 2,
1980,
CITY OF MAPLEWOOD, MINNESOTA
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/s/ John C. Greavu
Attest: /s/ Lucille E. Aurelius
City Clerk
Seconded by Councilman Nelson. Ayes - Mayor Greavu, Councilmen Bastian
and Nelson.
Nays - Councilman Anderson.
Councilperson Juker abstained.
4. Final Payment - Howard Larpenteur Storm Sewer
a, Councilman Anderson questioned if the project was completed and why the price
'j of construction is more than the contract award. Staff explained the cost differ-
ence.
~ b. Councilman Anderson introduced the following resolution and moved its adoption:
80 - 10 - 192A
-i WHEREAS:
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A. The City Council of the City of Maplewood has heretofore ordered made
Improvement Project No. 75-6 and has let a construction contract therefor
pursuant to Minnesota Statutes Chapter 429.
B, Said construction contract was awarded on a unit price basis for a total
~ contract price of $44,497,50.
C. It is necessary and expedient that said contract be modified so as to
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include additional units of work designated as Improvement Project No.
75-6, Supplemental Agreement ~I1, at the same unit price at a cost of
$2,938.50, which additional amount does not exceed 25% of the original
contract price.
D. A Supplemental Agreement, attached hereto and incorporated herein by
reference, has been presented to the Council for the purpose of effecting
such modification.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MAPLEWOOD,
MINNESOTA, that the Mayor and City Clerk are hereby authorized and directed to
modify the existing contract with respect to Project No. 75-6, Supplemental
' Agreement lil, by executing said Supplemental Agreement.
~ Seconded by Councilman Nelson. Ayes - all.
c. Councilman Anderson introduced the following resolution and moved its adoption:
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I 80 - 10- 192B
j WHEREAS, pursuant to a written contract signed with the City on May 28, 1980,
!i C & H Contracting, Inc. has satisfactorily completed the Howard and Larpenteur
Storm Sewer Improvement Project 75-6 in accordance with such contract;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF MAPLEWOOD, MINNESOTA, the work
completed under said contract is hereby accepted and approved; and
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BE IT FURTHER RESOLVED that the City Clerk and Mayor are hereby directed to
issue a proper order for the final payment on such contract, taking the con-
1 tractor's receipt in full in the amount of $12,765.70.
Seconded by Councilman Nelson. Ayes - all.
5. Construction Agreement: Frost Avenue Connection - Project 78-9
~ a. Acting Manager Schaller presented the staff report.
b. Councilman Anderson moved to amend the Frost Avenue Connection agreement to
~ clearly indicate that the City of Maplewood would have complete control of the
detached bike path once construction is completed by the County.
I Seconded by Councilman Bastian. Ayes - all.
!1 c. Councilman Anderson introduced the following resolution and moved its adoption:
I! 80 - 10 - 193
WHEREAS, the City Council of the City of Maplewood, Minnesota, on July 3,
1980 approved an amended agreement with the County of Ramsey, Minnesota, concerning
~ the Frost Avenue and East Shore Drive Improvements, City Improvement Project 78-9;
~ and
WHEREAS, the Council now deems it necessary and proper to further amend the
agreement;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MAPLEWOOD,
;i MINNESOTA:
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That the City Clerk and the City Manager are henceforth empowered to execute
the attached amended agreement.
~ Seconded by Councilman Bastian. Ayes - all.
COUNCIL PRESENTATIONS
1. 5% Limitation on Commercial Revenue Notes
S
a. Councilman Nelson moved to reconsider the recent Council action to limit the
Commercial Revenue Notes to 5% of the City's assessed valuation.
Seconded by Councilman Anderson. Ayes - all.
,~j b. Council instructed the City Attorney to investigate the question as to the
Council's responsibility to Commercial Revenue Notes that have had preliminary
approval some time ago, but never had final approval.
' c. Staff will investigate.
2. Minutes and Council Actions
a. Councilman Anderson stated that the motions reflected in the minutes are not.
always clear. In the future perhaps the Council could be more detailed in their
motions.
H. UNFINISHED BUSINESS (continued)
1. Mr. Frank Yoch, formerly of 1826 Radatz Road
a. Mr. Yoch requested clarification of pending assessments.
b. Staff stated a pending assessment was from the time an improvement that would
affect the property was ordered by the Council.
K. COUNCIL PRESENTATIONS (continued)
2. Police Reserves - Request from Attorney General
a, Mayor Greavu requested an Attorney General's opinion if reserve officers are
covered under Workman's Compensation.
4, McKnight Road
a. Mayor Greavu reported on meeting at Maplewood Junior High regarding the
McKnight Road improvements,
5. Building Construction Regulations
a. Mayor Greavu questioned if when building and using 2 x 4's they have to be 16'
on center; if 2 x 6's are used, can they be 24' on center.
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b. Staff will investigate.
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L. ADMINISTRATIVE PRESENTATIONS
1. Gambling Permit - Hill Murray
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a. Acting Manager Schaller presented the staff rpeort.
b. Mayor Greavu moved to approve the gambling permit as requested by Hill Murray .
for November 2, 1980.
Seconded by Councilman Anderson. Ayes -all.
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M. ADJOURNMENT
10:05 P.M.
-City Clerk
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