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HomeMy WebLinkAbout19900319_regular269 R0I;LCAI.L MINUTES OF !t'HE RE.GlJLAR mTING OF THE EDINA CITY COUNCIL HELD AT CITY HAIL MARCH 19, 1990 Answering rollcall were Members Paulus, Rice, Smith, and Mayor Richards. CAMP FIRE BIRTHDAY WEEK PROCLAIMED proclamation which was adopted unanimously by motion of Member Paulus, seconded by Member Smith: UHERJUS, Camp Fire, the national youth organization celebrated its 80th birthday on March 17, 1990, and WHEREAS, Camp Fire councils teach boys and girls self-reliance and good citizenship; and 'GMEREBS, through contemporary programs and by speaking out on issues that affect youth and their families, today's Camp Fire is helping kids cope with their changing world; and WHJBEAS, in Camp Fire, the choices and opportunities are wide open for boys and girls; and 'GMEREBS, through Camp Fire, young people are learning to develop confidence and to gain skills needed to become tomorrow's leaders; and UHERJUS, Camp Fire is commended for the opportunities its programs offer to young people in the City of Edina and throughout the nation and for the many services these young people perform for their communities through Camp Fire; NOW, THEREFORE, I, Frederick S. Richards, Mayor of the City of Edina, do hereby proclaim March 19 to March 23, 1990, to be in the City of Edina. ADOPTED this 19th day of March, 1990. Mayor Richards presented the following PROCLAMATION CAMP FIRE BIRTHDAY WEEK Accepting the proclamation was Debora S. Berendts, Service Team Manager for Camp Fire clubs in Edina, Richfield and Bloomington, who briefly explained how Camp Fire benefits the youth of Edina. CONSENT AGENDA IT- ADOPTED Motion was made by Member Rice and was seconded by Member Smith to approve and adopt the consent agenda items as presented with the exception of the removal of item IV.B - Ordinance No. 451-A7 - Amending Ordinance No. 451 to Correct Error Therein Relating to Size of Sign. Rollcall : Ayes: Paulus, Rice, Smith, Richards Motion carried. *MINUTES OF REGULAR MEETING OF FEBRUARY 5 AND JOINT EIRA/COUNCIL MEETING OF MARCH 5, 1990 APPROVED to approve the minutes of the regular meeting of February 5, 1990 and the Joint HRA/Council meeting of March 5, 1990. Motion was made by Member Rice and was seconded by Member Smith Motion carried on rollcall vote, four ayes. FINAL DEVELOPMENT PLAN FOR 7101-13 AMUNDSON AVENCE CONTINUED TO 4/2/90 Planner Craig Larsen recalled that at the March 5, 1990 Council Meeting the public hearing on the final development plan for 7101-13 Amundson Avenue was continued to this meeting at the proponent's request. Staff has suggested that the proponent may want to continue the matter again to April 2, 1990 when the Council will consider the proposed tax increment district for the 70th Street and Cahill Road area. George Kosmides, proponent, stated that he did not object to the continuation. Motion was made by Member Smith to continue the public hearing on the final development plan for 7101-13 Amundson Avenue to April 2, 1990. seconded by Member Rice. Motion was Ayes: Paulus, Rice, Smith, Richards Motion carried. 270 3/19/90 AMENDMENT TO COMPREHENSIVE PL N ADOPTED: HERITAGE PRESERVATION OVERLAY DISTRICT PRELlMNBRY PLAT APPROVED FOR RON CLARK DEVELOPMENT (CLARKS 2ND ADDITION1 Affidavits of Notice were presented, approved and ordered placed on file. REPEBLED: PRELIMINARY REZONING TO PRD-2 PLANNED RESIDENTIAL DISTRICT GRANTED. AND . Presentation bv Planner Planner Larsen presented the request of Ron Clark Construction for Amendment to the Comprehensive Plan, Repeal of the Heritage Preservation Overlay District, Preliminary Rezoning to PRD-2 Planned Residential District and Preliminary Plat Approval for Highcroft. south of West 70th Street and west of Cahill Road and in total is approximately 12 acres in size. He noted that the subject property is generally located Planner Larsen said there are four actions required by the Council if the development is to go forward: Amendment to Comprehensive Plan from Quasi-public and Medium Density Residential to Single Family and Low Density Residential. Repeal of the Heritage Preservation Overlay District. Preliminary Rezoning from R-1 Single Dwelling Unit District to PRD-2 Planned Residential District. 4) Preliminary Plat Approval for Highcroft. (Single Family and Townhouse Lots). Comurehensive Plan Amendments - The Comprehensive Plan designates most of the site as Quasi-Public (churches, private schools, golf courses, cemeteries). The easterly 300 feet of the site (approximately 2 acres) is designated Medium Density Residential. buildings in a density range of 6-12 dwelling units per acre. Park, the entire west Cahill Road frontage from 70th to 78th Streets is designated Medium Density Residential. Planner Larsen explained that the proposed development would designate the existing school site without the parking from the existing Quasi-public to Single Family Residential, would designate the central portion containing the parking from the existing Quasi-public to Low Density Residential and would designate the easterly portion from its existing Medium Density Residential to Low Density Residential. single family development on the westerly 8.6 acres for 13 lots and townhouses for the easterly 4.2 acres to support 21 townhouses lots. The initial proposal contained 13 single family lots and 25 townhouse lots. This designation includes townhouses and low-rise apartment Except for Lewis There are two major components of the proposed development. The Conformance with Subdivision Ordinance - Single Familv Lots - The neighborhood, as defined in the Subdivision Ordinance, would include all developed single family lots within 500 feet of the perimeter of the property proposed for single family lots. The median dimensions and sizes for the defined neighborhood are: lot width of 110 feet, lot depth of 150 feet and lot area of 16,800 square feet. The initial proposal was for 13 single family lots; seven of the lots required variances either from the Subdivision Ordinance or the Zoning Ordinance or both. The revised proposal now under consideration still illustrates 13 lots but varfances are now required for only two lots. for Lot 13 (150 feet required, 120 provided). Lot 7 would require a lot width variance (110 feet required, lacks required width 50 feet back from the front property line) and a lot width perimeter ratio variance (0.1 required, 0.04 provided). The townhouse component would occupy the easterly 4.2 acres of the property. first two proposals considered by the Planning Commission called for 25 units; the result was a Medium Density Residential designation. A lot depth variance is required The According to the 3/19/90 271 Comprehensive Plan that would require a PRD-3 Planned Residential zoning of the property. The development proposed buildings containing between 3 and 7 dwelling units each. 25 to 21 units, with no more than four units in any building. The resulting density has been reduced from 5.9 per acre to 5 dwelling units per acre. Also, the zoning has been reduced from PRD-3 to PRD-2 which meets the definition for Low Density Attached Residential. Other multi-family developments along the Cahill Road frontage vary between between 7 and 12 dwelling units per acre. Townhouses generally vary between 7 and 9 dwelling units per acre. The townhouse component does comply with all Zoning Ordinance requirements for the PRD-2 District. The modified proposal now under consideration has been reduced from The Heritage Preservation Board met on November 28, 1989 to discuss the historical significance and future of the old St. Patrick's Church at 70th and Cahill. Board concluded that architecturally and historically the building itself was not significant but that the site was. They recommended that the building be removed and the history of the Cahill settlement and St. Patrick's Church be commemorated at the intersection by some type of monument. The At its meeting of February 28, 1990, the Community Development and Planning Commission reviewed the development proposal as now presented. At that time the Planning Commission took one vote on the overall development plan resulting in a 4-4 tie vote. would recommend that preliminary rezoning and preliminary approval be conditioned upon: 1) Final Rezoning, 2) Final Plat Approval, 3) Subdivison Dedication, 4) Developer's Agreement, 5) Landscaping Plan and Bond, and 6) Investigation of a Historical Park near 70th and Cahill. If the Council were to approve the four actions as stated, staff Presentation for Proponent Michael Gair, Gair & Associates, stated that he was representing Ron Clark, proponent, who was also present together with Nancy Horn, project manager for the development. Mr. Gair made a board presentation of the proposed development summarized as follows. The subject site is 12.8 acres in area with a quarter-mile frontage on West 70th Street. building fronting on West 70th Street. 180 foot parking facility east of the building and on the most easterly portion of the site is the old St. Patrick's Church building. The configuration of the property consists of 1,296 feet on West 70th Street, with the school portion measuring 651 x 601 feet. 695 feet. rear of the school building. the school building to 70th Street. an east-west direction and also a 40-foot drop in elevation on the most southern portion of the site. The existing school is an approximate 52,000 square foot, two story The school is served by an existing 180 x The "panhandle" extending to the east measures 139 x Physical features include steep slopes that are heavily wooded to the The slope continues northerly along the east side of There is a 40-foot drop in elevation going in Existing vegetation are white oaks on the eastern extremity. A neighborhood study was done of existing land use and existing densities which range from 1.8 units per acre to 8.3 units per acre. site are single family homes; east of Limerick Lane and north of West 70th Street are existing twin homes (Low Density); directly east across Cahill Road is the commercial area; directly south of the "panhandle" are townhomes and condominiums (Medium Density); and park exists directly south of the school building. Both West 70th Street and Cahill Road are collector streets. To the west and north of the Regarding land use concepts, they looked at existing uses and the lay of the land. The proposed single family land use component on the western 8 acres will relate well to the existing single family homes to the west and north. continuing northerly up to 70th Street will provide for transition between the single family and the townhomes on the eastern 4.2 acre "panhandle". The reason for the townhomes use is that they are dealing with a strip of land measuring 239 The slope 3 / 19 /90 272 feet north-south that abuts medium to high density to the south. family lots will be served by a cul-de-sac and the sites were laid out off of topography maps first and then the lotting arrangement was considered. family homes will range in price from $350-700,000. remaining 4.2 acres will range in price from $250-350,000. The 13 single The single The townhomes on the Three schemes have been considered for the development of the property. consisted of 13 single family homes and 25 townhomes. area residents had several concerns regarding that scheme. component there were a number of variances that would be required in terms of lot depth, lot width and perimeter area ratio. transition between townhomes and single family, the three access points along West 70th Street, and the density. In response, the plan was modified with some minor shifts in roadway alignment to reduce the number of lots requiring variances for the single family portion to Lots 7 and 13. there was a shifting of building pads to create a greater horizontal/vertical separation between the townhomes and the single family and to provide a dense evergreen buffer. retaining walls. The first The Planning Commission and In the single family There was also concern regarding the In addition, in the townhome area That also made it possible to reduce the height of the Even with those positive changes, there was still concern regarding the general density and orientation of the project. The single family component was modified so that the access to Lot 13 would be from 70th Street instead of from the cul-de-sac. This enabled a common orientation for the rear yards of Lots 13, 12, 11, 10 and 9. Additionally, by reorienting the townhomes and reducing the number of units the townhomes have rear yards that back up to the single family, the access points from 70th Street have been reduced from 3 to 2, some of the white . oaks can be saved and none of the townhouse buildings will contain more than 4 dwelling units. Had the 4.2 acres site for the townhomes been developed under the Medium Density designation, the yield could have been in the 25 to 30 unit range - in contrast this is 21 units with a density of 5 units per acre. shifting of the townhome building locations a more open feeling has been created. With the A floor plan of the 3-story Highpointe Condominiums building, located to the south, was shown to illustrate its relationship to the proposed townhouses. It pointed out that 9 units are oriented solely to the south, 6 units have a north-south orientation and only one unit orients exclusively to the north. distances between the two would range from 155 to 180 feet. The single family homes on the north side of 70th Street would view into the side or at oblique angles to the proposed townhomes. proposed as two story structures with a height 29 feet to the ridge and a setback of 90 feet. development. feet. The The westerly townhomes are Landscaping and berming is proposed along all the edges of the The pair of twin homes are single level walkouts with a height of 26 A traffic impact analysis for the proposed development has been prepared by Robert Morris, traffic engineer. average daily traffic that would be generated by the proposed housing development as compared to the traffic generated by the existing Montessori School. The analysis showed a considerable reduction in the Following the presentation by Mr. Gair, Mayor Richards commented that the Council has received copies of the numerous letters concerning the development from many of the neighborhood residents, some of whom are in the audience. have been made to individual Council Members have not been shared because the Council feels strongly that any discussion eake place at the public hearing. added that the Council is familiar with the site and is fully informed of the issues. Phone calls that He Mayor Richards then called for public comment. 3/19/90 273 Public Comment Speaking in objection to the proposed development were Steve Smithson, 5608 West 70th Street; Ted Steen, 5524 W. 70th Street, who presented 91 letters of objection from the neighborhood; Candice Rishavy, 5817 McGuire Road; Miles Hirschey, Highpointe Condominiums; Saul Collins, 5501 Village Drive; and Lowell Swanson, 5501 Village Drive. density of the townhouse component, also the issue of adequate guest parking. Evelyn Daniels, 5705 McGuire Road, and Ralph Linvill, 7005 Antrim Road, asked that the historical significance for this part of Edina be preserved. Speaking in support of the proposed development were: Diane Ebert, 7004 Lee Valley Circle; Joe Lyon, 7005 Lee Valley Circle; Darlene McDonald, 5501 Village Drive; Lyle Sauers, 5547 Village Drive; Neil McCouth, 7015 Lee Valley Circle; and George Kosmides, 7009 Lee Valley Circle. The major concern expressed by those objecting was the Ron Clark, proponent, spoke to several specific issues that had been raised. Guest parking/townhouses - Each unit has a double garage in front of which are two parking spaces. Patrick's Church - The church was one of the objections in marketing the Highpointe Condomiums as prospective buyers considered it an eyesore. Future condominium building/Highpointe caretaker - The disclosure statement declared that one or more future buildings may be added but that declarant was not obligated to do that. Landscaping at Highlander Townhomes - All landscaping was put in, with two trees added last summer in response to a resident's request. Density Issue/Single Family Homes - The possibility of single family homes all the way to Limerick Lane Lane was considered in several preliminary site plans. Because of the "panhandle" configuration single family homes (20,000 square foot lots) are not feasible, Also considered was 6 small single family units, with either zero lot lines or very narrow lots. could not be successfully marketed. of 5 units per acre is the lowest townhouse density in the City. In addition there are 11 guest parking spaces on the site. St. It was felt that those would not look good and Mr. Clark concluded that the proposed density Council Comments Mayor Richards observed that the issues and concerns that have been raised are controversial and that it may be helpful for the Council Members to state their viewpoints on the issues concerning the proposed development. Mayor Richards - 1) There is no under 1ying.R-1 zoning classification; all land that is undeveloped is R-1 zoning for holding purposes. serves as a guide as to how property should be developed when a development proposal comes forth. with the easterly portion as Medium Density. for a change from Medium Density to Low Density. should be developed on that site should be consistent with the Plan. The private sector is best suited to determine the market demand. 3) The facts as presented indicate that if developed as proposed there would be less traffic generated than presently exists. 4) The issue of future school need is decided by another elected body. 5) Issues concerning what was or was not done at developments to the south are not part of this process. for park and open space purposes in that part of Edina. some recognition of Edina's heritage and the early settlers in the Cahill area. 8) Density is an important issue that has been properly addressed in the proposal before the Council. The 1.5 units per acre for the single family portion relates well to the 2.1 units per acre in the Lanham Lane area, the 1.8 units per acre in the Lee Valley Circle area and the 2.0 units per acre north of 70th Street. Comprehensive Plan currently classifies the easterly portion as suitable for Medium Density, PRD-3 zoning which is a density greater than what is being proposed of 5.0 units per acre or Low Density, PRD-2 zoning. 9) The issue of setbacks from the Highpoint Condominiums on the south, for the pair of double units from 70th Street and the height of the townhouses as viewed from the homes I The Comprehensive Plan The Plan classified the school property as quasi-public The proposal before the Council is 2) The market forces and what 6) There is ample public sector property However, there should be The 274 3/19/90 north of West 70th Street are proper planning, reasons he intended to support the proposal. Member Rice - 1) Questioned adequacy of the physical development of the site to control runoff. Engineer Hoffman said there are some final details to be worked out but in general the plans are adequate. 2) Question as to access for emergency vehicles. Engineer Hoffman said ambulances can access the site; for fires, hoses would be laid from the fire vehicles on the street as is the case with all townhouses. Planner Larsen explained that in 1982 the overlay district zoning was approved in connection with a proposal to rezone the property to allow for a 22-unit, two story condominium building. The reason for the overlay district was that the old church was to be incorporated for private use as an amenity for that project. 4) Questioned site lines for traffic exiting from Highpointe condominiums. Engineer Hoffman said the proposed development would not change the existing site lines. 5) Asked if access and siting for Lot 13 had been resolved. Planner Larsen said the revised plan has added to the square footage for Lot 13 so that it now has a northeast orientation for the house with access from 70th Street. 6) Questioned the townhouse driveway grade as to safety. Planner Larsen said the curb cut was moved to the west to handle the grade differential. took exception to comments that this area has not been well planned. is another of use to other uses. comer for higher density than single family. proposal would be less than almost any other use. of the site, that should be commemorated as the original Irish settlement in the community but there is no need to preserve the church building. concluded that he is generally in favor of the development as proposed. Member Smith - 1) There will be substantially less traffic from the development proposed. 2) Density is a buffer issue to the residents to the north and a frustration issue to the residents to the south. Elements contributing to the transition from single family to low density are the major collector street classification and the topograph of the site. the pair of twin units does provide a buffer to the north. The view of the townhouses should be an improvement over the present parking lot. The low density as now proposed for the east portion of the site is an improvement over all. the residents to the south the 180 foot distance between the buildings seems to be adequate. Commissions hearings have been addressed and the proposal is good. Mayor Richards said that for those 3) Requested history of Heritage Preservation Overlay District. Member Rice commented that he The proposal example of how the City has handled the transition from certain types The Comprehensive Plan wisely classified the 7Oth/Cahill The traffic generated by the Relative to the historic nature Member Rice I The 90 foot setback provided for For Member Smith said that the issues and concerns raised at the Planning Member Paulus - 1) The townhouse development does not appear to be dense but parking could become an issue, especially for emergency vehicles. historical value of the area was lost by development in prior years. should be given to that area but a pocket park is not the answer. not have the dollars to create more park space. the area - the increase in traffic on 70th Street has been the major factor. What will bring new values to the area is housing stock of the single family homes. 4) Necklot Lot 7 raises great concern that a precedent will be set for future subdivisions. 5) Single family homes on the "panhandle" portion with zero lot lines would not be favorable. revenue it will generate, it has to do with planning the use of the land for the future. The school is obsolete and it would be too expensive to rehab the building. prohibitive. The development being proposed is the best alternative. Mayor Richards summarized the issues still to be addressed prior to final rezoning and plat approval: 1) townhouse parking for guests, 2) grading plan to control runoff and erosion, 3) ability for emergency vehicles to service the townhouses, 4) definitive conceptual plan to commemorate the St. Patrick Church/Irish settlers 2) The Importance The City does 3) Issue of devaluating homes in 6) This project has nothing to do with the Also, the cost to the City to purchase the building would be I 3/19/90 275 historical site, 5) review of single family Lot 7, and 6) site lines at Village Drive. Member Smith then introduced the following resolution and moved its adoption: RESOLUTION AMENDING THE COMPREHENSIVE PLAN FROM QUASI-PUBLIC AND MEDIUM DENSITY RESIDENTIAL TO SINGLE FAMILY AND LOW DENSITY RESIDENTIAL BE IT RESOLVED by the City Council of Edina, Minnesota, that it hereby approves and adopts the following Amendments to the City's Comprehensive Plan 1980/90 for property located at the southwest comer of Cahill Road and West 70th Street: 1. The designation for the westerly 8.6 acres is changed from Quasi-public to Single Family Residential on the Comprehensive Plan Land Use Map. 2. The designation for the easterly 4.2 acres is changed from Quasi-public and Medium Density Residential to Low Density Attached Residential on the Comprehensive Plan Land Use Map. Motion for adoption of the resolution was seconded by Member Rice. Rollcall : Ayes: Paulus, Rice, Smith, Richards Resolution adopted. Member Rice introduced Ordinance No. 825-A34 for First Reading as follows, subject to the following conditions: 1) Final Rezoning, 2) Final Plat Approval, 3) Subdivision Dedication, 4) Developer's Agreement, 5) Landscaping Plan and Bond, 6) Investigation of Historical Park near 70th and Cahill, and 7) Review of site lines at Village Drive: ORDINANCE NO. 825-A34 AN ORDINANCE AMENDING THE ZONING ORDINANCE (NO. 825) TO REHOVE PROPERTY FROM THE EIERITAGE PRESERVATION OVERLAY DISTRICT THE CITY COUNCIL OF THE CITY OF EDINA, MINNESOTA, ORDAINS: Section 1. Section 6 of Ordinance No. 825 of the City is hereby amended by removing the following described property from the Heritage Preservation Overlay District (HPD) : "That part of the Northwest 1/4 of the Northeast 1/4 of Section 8, Township 116, Range 21 described as follows: Commencing at the Northeast comer of the Northwest one quarter of Northeast one quarter thence South 15.5 rods, thence West 15.5 rods, thence North 15.5 rods, thence East 15.5 rods to beginning; and Commencing in the North line of Northwest one quarter of Northeast one quarter at a point 914.4 feet East from the Northwest comer thereof, then South 271.8 feet to North line of South 32 acres of Northwest one quarter of Northeast one quarter, then East to Northeast comer of said 32 acres, then North 16.55 feet, then West 15.5 rods, then North 239.2 feet, then West 161.6 feet to beginning except roads." Sec. 2. This ordinance shall be in full force and effect upon its passage and publication. Motion for First Reading of the ordinance was seconded by Member Paulus Rollcall : Ayes: Paulus, Rice, Smith, Richards First Reading granted. Member Paulus introduced Ordinance No. 825-A35 for First Reading as follows, subject to the conditions as previously stated: ORDINANCE NO. 825-A35 AN ORDINANCE AMENDING TIIE ZONING ORDINANCE (NO. 815) BY ADDING TO THE PLANNED RESIDENCE DISTRICT (PRD-2) THE CITY COUNCIL OF THE CITY OF EDINA, MINNESOTA, ORDAINS: the following thereto: Section 1. "The extent of the Planned Residence District (Sub-District PRD-2) is enlarged by the addition of the following property: Section 6 of Ordinance No. 825 of the City is amended by adding 31 19 /90 276 That part of the Northwest Quarter of the Northeast Quarter of Section 8, Township 116, Range 21, lying north of the north line of the south 32 acres thereof, which lies easterly of the following described line: Commencing at the northwest corner of said Northwest Quarter of the Northeast Quarter of Section 8; thence on an assumed bearing of North 89 degrees 49 minutes 20 seconds East, along the north line of said Northvest Quarter of the Northeast Quarter, 477.30 feet to the point of beginning; thence South 32 degrees 10 minutes 40 seconds East 99.84 feet; thence South 06 degrees 09 minutes 10 seconds East 162.11 feet; thence South 56 degrees 39 minutes 03 seconds East 43.97 feet to the intersection of the north line of said South 32 acres and said line there terminating." Sec. 2. This ordinance shall be in full force and effect upon its passage and publication. Motion for First Reading of the ordinance was seconded by Member Smith. i Rollcall : Ayes: Paulus, Rice, Smith, Richards First Reading granted. Member Smith introduced the following resolution and moved its adoption, subject to the conditions as previously stated: RESOLUTION GRANTING PRELIMINARY APPROVAL FOR CLARKS 2ND ADDITION BE IT RESOLVED by the City Council of the City of Edina, Minnesota, that that certain plat entitled "CLBRKS 2ND ADDITION", platted by Ron Clark Construction, Inc., a Minnesota corporation, and American National Bank and Trust Company, a national banking association, and presented at the regular meeting of the City Council of March 19, 1990 be and is hereby granted preliminary plat approval. Motion for adoption of the resolution was seconded by Member Rice. Rollcall : Ayes: Paulus, Rice, Smith, Richards Resolution adopted. PUBLIC HEBRING CONDUCTED: YEAR XVI CDBG PROGRAM BUDGET APPROVED Affidavits of Notice were presented by Clerk, approved and ordered placed on file. due notice having been given, a public hearing was conducted on the Community Development Block Grant (CDBG) Program for Year XVI. Planner Larsen stated that for Year XVI Hennepin County has been allotted 2.6 percent less than received in 1989 from the federal government. decrease. The proposed budget includes: Pursuant to The City's allocation reflects a similar Household and Outside Maintenance for the Elderly (H.O.M.E.) $ 24,450 Rehabilitation of Private Property 39,425 50,241 Removal of Architectural Barriers $134,116 Child Day Care Subsidy 20 , 000 Planner Larsen explained the removal of architectural barriers funding will be used to continue making handicapped access improvements to public buildings. Projects slated for this year include accessibility to the Community Center at entrance 5/6 located in the middle of the east elevation as well as handicapped improvements to a pair of first floor restrooms. With funds carried over from Year XV, a pair of restrooms at Braemar Arena will be upgraded. the Human Relations Commission reviewed the proposed Year XVI budget on March 5 and would be involved on a continuing basis through year with the intent that the Commission would have a significant impact on possible changes for next year's budget. Mayor Richards asked if there were any projects proposed that are not included in the budget. funding and staff has not been able to identify other eligible projects that would He mentioned that I Planner Larsen said that there have been no other requests for 3/19/90 277 be better. Planner Larsen said the program is funded directly through Hennepin County with staff receiving reports periodically on how the funds are spent. The Human Relations Commission will review the program this year as to continued funding. No further comment or objections were heard. Member Smith asked for more information on the child day care program. Member Smith introduced the following resolution and moved its adoption: RESOLUTION APPROVING PROPOSED PROGRAM FOR YEAR XVI URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS AND AUTHORIZING ITS SUBMITTAL WHEREAS, the City of Edina, through execution of a Joint Cooperation Agreement with Hennepin County, is a cooperating unit in the Urban County Community Development Block Grant Program; and WHEREAS, the City of Edina has developed a proposal for the use of Urban Hennepin County CDBG funds made available to it, following a public hearing on March 19, 1990 to obtain the views of citizens on local and Urban Hennepin County housing and community development needs and the City's following proposed use of Year XVI Urban Hennepin County Community Development Block Grant funds: H.0.M.E Program $ 24,450 (Household and Outside Maintenance for the Elderly) Child Day Care Subsidy 20,000 Rehabilitation of Private Property 39,425 Removal of Architectural Barriers 50.241 $134,116 BE IT RESOLVED that the City Council of Edina approves the proposed use of Year XVI Urban Hennepin County Community Development Block Grant funds and authorizes submittal of the proposal to Hennepin County for consideration by the Citizen Advisory Committee and for inclusion in the Year XVI Urban Hennepin County Community Development Block Grant Statement of Objectives and Project Use of Funds. Motion for adoption of the resolution was seconded by Member Paulus. Rollcall : Ayes: Paulus, Rice, Smith, Richards Resolution adopted. *FINAL REZONING PRD-4 TO PSR-4 AND FINAL PLAT APPROVAL FOR WALKeR METHODIST/RPI SERVICES. INC. CONTINUED TO 4/16/90 Motion was made by Member Rice and was seconded by Member Smith to continue the public hearing on final rezoning from PRD-4 Planned Residence District to PSR-4 Senior Citizen District and final plat approval for Walker Methodist and RPI Services, Inc. to April 16, 1990. Motion carried on rollcall vote, four ayes. *HEARING DATE OF 4/2/90 SET FOR RELEASE OF RESTRICTIVE COVENANTS/SOUTH HARRIET PARK STEINER ADDITION Motion was made by Member Rice and was seconded by Member Smith setting April 2, 1990 as the hearing date for the request to release restrictive covenants on the South Harriet Park Steiner Addition. Motion carried on rollcall vote, four ayes. ORDINANCE NO. 1031-A3 (NOXIOUS WEEDS) ADOPTED: SECOND READING WAIVED Manager Rosland stated that, as directed by the Council, an amendment has been drafted to the ordinance regulating noxious weeds. of Minnesota Statute 18.171 and would strengthen the City's ordinance regarding cutting and removal of noxious weeds and other rank vegetation. The amendment incorporates the provisions Member Rice introduced Ordinance No. 1031-A3 and moved its adoption with waiver of Second Reading as follows: ORDINANCE NO. 1031-A3 AN 0RDI"CE AMENDING ORDINANCE NO. 1031 TO DEFINE NOXIOUS WEEDS, PROVIDE FOR CUTTING AND REMOVAL OF NOXIOUS WEEDS AND OTHER VEGETATION, PROVIDE FOR CHARGING 3/19/90 278 THE COST OF SUCH CUTTING AND REMOVAL, AND CHANGING THE PENALTY "HE CITY COUNCIL OF "HE CITY OF EDINA, MIJ9NESOTA ORDAINS: a new Sec. 5 is hereby added as follows: I Section 1. Sec. 5 of Ordinance No. 1031 is hereby renumbered to Sec. 6, and "Sec. 5. Noxious Weeds and Other Veaetation: Removal: Assessina Costs. (a) Noxious weeds, as used in this ordinance, shall be those plants which are determined, from time to time, to be noxious weeds pursuant to Minnesota Statutes, 1990, Section 18.171, Subd. 5. (b) The weed inspector or assistant weed inspector of the City may enter upon property to cut, remove, destroy and eradicate rank growths of vegetation, including grass or weeds, which are a nuisance under Sec. 2(e) of this ordinance, and also noxious weeds. (c) be done only after written notice is served upon the owner and the occupant, if other than the owner, of the property to be entered, and failure of the owner or occupant to cut down, remove, destroy or eradicate the noxious weeds, or rank growths of vegetation, within the time, and in such manner, as the weed inspector or assistant weed inspector shall designate in such notice. the manner prescribed by Minnesota Statutes, Section 18.271, Subd. 2. and shall allow a minimum of seven (7) days for the property owner or occupant to comply with requirements of said notice. (d) entering a property pursuant to (c) of this Section, and cutting, removing, destroying and eradicating noxious weeds and rank growths of vegetation, shall be paid by the owner or occupant of the property entered pursuant to a notice containing the information and served as prescribed by Minnesota Statutes, Section 18.271, Subd. 4. If the City is not paid the amount stated in the notice within thirty (30) days or before the following October 1, whichever is later, such amount shall become a lien in favor of the City and a penalty of eight percent (8%) shall be certified to the auditor of Hennepin County for entry as a tax upon such property, all pursuant to the provisions of'Minnesota Statutes, Section 18.271, Subd. 4." Such entry by the weed inspector or assistant weed inspector shall Such notice shall be given in The costs and expenses incurred by the City in connection with Sec. 2. The penalty provisions of Sec. 6 of Ordinance No. 1031 are hereby "Sec. 6. Penalty. Any person who violates any provision of this ordinance shall be guilty of a misdemeanor and subject to the penalties set forth in Ordinance No. 175 in addition to the costs and taxes charged by this ordinance." amended to read as follows: Sec. 3. This ordinance shall be in and publication. ATTEST : Mayor W%@L Citv Clerk ., Motion for adoption of the ordinance was seconded by Member Paulus. Rollcall : Ayes: Paulus, Rice, Smith, Richards Ordinance adopted. ORDINANCE NO. 451-67 (SIGN ORDINANCE) ADOPTED: SECOND READING WAIVED Member Rice asked if any sign permit was approved under the ordinance adopted in October, 1989 which incorrectly stated the allowed square feet allowed per sign in the MDD-6 District. Planner Larsen said that none was approved and that the ordinance provisions affect only the development identification sign, e.g. the medical building in Centennial Lakes. 3/19/90 279 Member Rice introduced Ordinance No. 451-A7 and moved its adoption with waiver of Second Reading as follows: ORDINANCE NO. 451-87 AN ORDINANCE AMENDING ORDINAJ!TCE NO. 451 TO CORRECT ERROR THEREIN RELATING TO SIZE OF SIGN Section 1. Section 5, paragraph (h)(l)(d) of Ordinance No. 451 is hereby THJ3 CITY COUNCIL OF THE CITP OF EDINA, MINNESOTA, ORDAINS: amended to read as follows: (d) MDD-6 District: One sign per development not to exceed 100 square feet in area. For developments with more than one street frontage, one additional sign per street frontage provided each additional sign does not exceed 70 square feet in area. Sec. 2. and publication. This ordinance shall be in full force and effect upon its passage ATTEST : ULkS Mayor &a -3w*- City Clerk Motion for adoption of the. ordinance was seconded by Member Paulus. Rollcall : Ayes: Paulus, Rice, Smith, Richards Ordinance adopted. CONCERN OF RESIDENT CONCERNING ACTIVITIES AT WALNUT RIDGE PARK NOTED Richards advised that he had received a call from Barbara Arnold, 6515 Biscayne Boulevard, who was concerned about the activities that have been occurring at Walnut Ridge Park, e.g. drinking parties and subsequent debris. After brief discussion it was agreed to place this on a future agenda when Mrs. Arnold could be present so that the Council could discuss a general policy on that type of problem and give a sense of direction to staff. *AWARD OF BID FOR SAND. ROCK. BITUMINOUS MATERIAL. CONCRETE CONTINIJED TO 4/2/90 Motion was made by Member Rice and was seconded by Member Smith to continue the award of bid for sand, rock, bituminous material and concrete to April 2, 1990. Motion carried on rollcall vote, four ayes. Mayor *BID AWARDED FOR WATER TREATMENT CEIEnICALS seconded by Member Smith for award of bid for water treatment chemicals to sole bidder, Hawkins Chemical, Inc., at $48.25 per 100 lbs. of hydrofluosilicic acid and 100 lbs. of liquid chlorine. Motion carried on rollcall vote, four ayes. Motion was made by Member Rice and was *BID AWARDED FOR JOHN DEW MOWER Motion was made by Member Rice and was seconded by Member Smith for award of bid for a John Deere mower for the Park Department to recommended low bidder, Scharber & Sons, at $6,550.00. Motion carried on rollcall vote, four ayes. *BID AWARDED FOR GREENSMASTER MOWER seconded by Member Smith for award of bid for a Greensmaster mower for Braemar Golf Course to recommended low bidder, MTI Distributing, at $8,067.00. Motion was made by Member Rice and was Motion carried on rollcall vote, four ayes. *BID AWARDED FOR CUSHMAN TURF TRUCKSTER seconded by Member Smith for award of bid for a Cushman Turf Truckster to recommended low bidder, Cushman, at $8,355.00. Motion was made by Member Rice and was Motion carried on rollcall vote, four ayes. 280 3/19/90 *BID AWARDED FOR EMERGENCY REPAIR OF PUMP seconded by Member Smith for award of bid for emergency repair of pump at the 72nd Street lift station to sole supplier, Ualdor Pump, at $6,848.77. Motion was made by Member Rice and was Motion carried on rollcall vote, four ayes. TRAFFIC SAFETY COHMITTEE MINUTES OF 3/13/90 APPROVED of the following recommended action listed in Section A of the Traffic Safety Committee Minutes of March 13, 1990: 1) signs on Lincoln Drive at the entrance to Honeywell and also to repaint the double yellow striping in the area, 2) To install "NO PARKING BNPTJHE" signs on the east side of Drew Avenue 30' from the public intersections and 15' from the private driveways, and to acknowledge Sections B and C of the Minutes. Motion for approval was seconded by Member Rice. Member Smith moved approval To install "COMMERCIAL DRIVEWAY AHEAD - USE CAUTION" signs and two pedestrian Ayes: Paulus, Rice, Smith, Richards Motion carried. COOPERBTIVE CONSTRUCTION AGREEHENT WITH -PIN COUNTP FOR FRANCE AVENUE (W. 70TH STREET TO MNETESOTA DR) APPROVED step in the process to approve the construction project on France Avenue from West 70th Street to Minnesota Drive. Source Permit requirements for the Centennial Lakes project. It will also provide for intersection changes at West 70th Street, Hazelton Road and West 76th Street that should meet future traffic projections for those intersections on France Av. Engineer Hoffman stated that this is the last The project will satisfy one of the Indirect This project is a federal aid to urban roadways project and federal aid will fund 57% of the eligible construction items on France Avenue, estimated federal funding is $1.13 million. The estimated total project cost is $2.6 million which includes right of way costs. Engineer Hoffman explained that the project will also include a large storm sewer in the 72nd and France area which will connect to the Centennial Lakes project. This part of the project is another portion of the City's stormwater management plan, cost of which is estimated at $225,000 and will be funded by the stormwater utility. The balance of the project will be funded by county state aid, municipal state aid and assessment to benefited property owners. the side streets (West 70th Street, Hazelton Road and West 76th Street) is $227,000 and will be funded from municipal state aid and costs for right of way will be eligible municipal state aid costs. I The estimated construction cost on The estimated City construction share on France Avenue will be approximately $253,000 with approximately $100,000 being federal aid and the balance from municipal state aid and assessment. right of way costs of $305,000 will be eligible for reimbursement from municipal state aid. Additionally, the City will have potential which will be split with the county (50-50) and Recommended action required for the project: 1) Approve the Cooperative Construction Agreement and authorize Mayor and Manager to sign Agreement, 3) Adopt resolution for state aid funds, and 4) Reaffirm assessment for Street Improvement NO. BA-280. Member Smith introduced the following resolution and moved its adoption: VHEREBS, Agreement for participation in the construction of County State Aid Highway No. 17 between 210 feet north of West 77th Street and 75 feet north of West 70th Street, Hennepin County Project No. 8110, Agreement No. PU65-11-89, has been prepared and presented to the City. RESOLUTION 3/19/90 281 WHEREAS, Plans for Hennepin County Project No. 8110 showing proposed alignment, profiles, grades, and cross sections for the reconstruction of County State Aid Highway No. 17, within the limits of the City, as a Federal Aid and a State Aid Project, have been prepared and presented to the City. NOW, THEREFORE, IT IS RESOLVED: That said Agreement be in all things approved. BE IT PIJRTHER RESOLVED: That the Mayor and Manager are authorized to sign Agreement No. 65-11-89, Hennepin County Project No. 8110. Motion for adoption of the resolution was seconded by Member Paulus. Rollcall: Ayes: Paulus, Rice, Smith, Richards Resolution adopted. Member Smith introduced the following resolution and moved its adoption: WHEREAS, it has been deemed advisable and necessary for the City of Edina to participate in the cost of a construction project located on C.S.A.H. No. 17 within the limits of said municipality, and WHEREAS, said construction project has been approved by the Commissioner of Transportation and identified in his records as S.A.P. No. 120-020-026 and S.A.P. NOW, THEREPORE, BE IT RESOLVED: That we do hereby appropriate from our Municipal State-Aid Street Funds the sum of $785,000.00 to apply toward the construction of said project and request the Commissioner of Transportation to approve this authorization. Motion for adoption of the resolution was seconded by Member Paulus. Rollcall : Ayes: Paulus, Rice, Smith, Richards Resolution adopted. RESOLUTION NO. 120-020-027; Member Smith introduced the following resolution and moved its adoption: WHEREAS, the City Council of Edina, Minnesota, conducted a public hearing on March 21, 1988, pursuant to due notice given, to consider the following proposed improvement to be constructed under the authority granted by Minnesota Statutes, Chapter 429: RESOLUTION REAFFIRMING ORDERING OF IMPROVEMENT NO. BA-280 PEWANENT STREET SURFACING WITH CONCRETE CURB & GUTTER IMPROVEMENT NO. BA-280 WEIEREAS, the Notice of Public Hearing specified that the properties proposed to be assessed for a portion of the cost be assessed at $40.00 per lineal foot of property abutting France Avenue; WHEREAS, the Edina City Council after considering the views of all persons interested, and being fully advised of the pertinent facts, by resolution on March 21, 1988, determined to proceed with construction of said improvement and specified the area to be specially assessed for a portion of the cost; NOW, THEREFORE, BE IT RESOLVED that the Edina City Council hereby reaffirms the action taken by resolution on March 21, 1988, regarding Improvement No. BA-280. Motion for adoption of the resolution was seconded by Member Paulus. Rollcall : Ayes: Paulus, Rice, Smith, Richards Resolution adopted. RESOLUTION ADOPTED DESIGNATING MUNICIPAL STATE AID ROUTES that annually the engineering staff reviews the municipal state aid system in Edina per state requirements. street mileage designated as state aid routes, which routes must connect to other state aid routes or county/state highways. Engineer Hoffman stated The City is allowed to have 20 percent of its From time to time, staff will recommend changes to the system to encompass the major road system or expected road systems which have high traffic volumes. last minor changes were made in 1983. Staff would recommend the following changes : The 282 3/19/90 Removals (A) Grimes Avenue from West 44th Street to West 42nd Street and West 42nd Street from Grimes Avenue to France Avenue. (B) Valley View Road from County Road 18 East Frontage Road to the Valley View Road/Braemar Boulevard intersection. Additions (A) Parklawn Avenue from France Avenue to York Avenue. (B) Braemar Boulevard from the Valley View Road/Braemar intersection along Braemar past the Golf Dome to the Ikola Way intersection, thence westerly to the west side of the Braemar Arena lot, thence northerly to the Valley View Road/County Road 18 (now 169) ramp intersection. I . Member Rice introduced the following resolution and moved its adoption: RESOLUTION ESTABLISHING H"ICIPBL STATE AID HIGHUAYS UHEREAS, it appears to the City Council of the City of Edina, Minnesota, that the streets hereinafter described should be designated as Municipal State Aid Streets under the provisions of Minnesota Laws of 1967, Chapter 162; NOU, THEBEPORE, BE IT ReSOLVED, by the City Council of the City of Edina, County of Hennepin, that the streets described as follows, to-wit: 1. Parklawn Avenue from France Avenue to York Avenue (120-174-010) 2. be, and hereby are established, located, and designated as Municipal State Aid Streets of said City of Edina, subject to the approval of the Commissioner of Highvays of the State of Minnesota; BE IT FURTHER RESOLVED, by the City Council of the City of Edina, County of Hennepin that the streets described as follows, to-wit: 1. (120-167-010) 2. Grimes Avenue fromlforningside Road to West 42nd Street (120-167-020) 3. Uest 42nd Street from Grimes Avenue to France Avenue 4. Portion of Valley View Road from T.H. 169 East Frontage Road to the Valley View Road/Braemar Boulevard intersection (120-151-010) be, and hereby are removed from Municipal State Aid designation of said City of Edina, subject to the approval of the Commissioner of Highvays of the State of Minnesota; BE IT FURTHER RESOlVED, that the City Clerk is hereby authorized and directed to forward tvo certified copies of this resolution to the Commissioner of Highvays for his consideration, and that upon his approval of the designation of said streets, that same be constructed, improved and maintained as Municipal State Aid Streets of the City of Edina, to be numbered and known as Municipal State Aid Streets. ADOPTED this 19th day of March, 1990. Motion for adoption of the resolution was seconded by Member Smith. Braemar Boulevard from the Valley View Road/Braemar intersection to the Valley View R0adfl.H. 169 intersection (120-175-010) Grimes Avenue from Uest 44th Street to Morningside Road I (120-168-010) Rollcall : Ayes: Paulus, Rice, Smith, Richards Resolution adopted. REPORT ON DOG LICENSING DISCUSSED the Council, Chief Swanson had prepared a report on dog licensing which included facts as to rationale for licensing, number of licenses issued, number of renewals, estimates of the dog population and estimated cost for renewal mailout notices which has been recommended by staff. Manager Rosland stated that, as requested by Following some discussion as to the need for the initial license and yearly renewal, Manager Rosland suggested that staff develop a draft renewal notice and further information on the process. APPOINTHEXC MADE TO COMMUNITY HEALTH SERVICES ADVISORY COMMITTEE: VACANCY ON BOARD OF APPEBLS NOTED Mayor Richards advised that he intended to appoint Spencer 3/19/90 283 Turner to the Community Health Services Advisory Committee, whose name had been submitted by Member Smith. Motion was made by Member Smith for consent of the Mayor's appointment of Spencer Turner to the Community Health Services Advisory Committee for a two year term to 2/1/93. Motion was seconded by Member Rice. Ayes: Paulus, Rice, Smith, Richards Motion carried. Mayor Richards reminded the Council of the vacancy on the Board of Appeals and asked that names be submitted for that appointment. BEER LICENSE RENEWALS APPROVED Member Smith for approval of beer license renewals for the following establishments: On-sale - Biltmore Bowl, Braemar Golf Course, Braemar Golf Dome, Bravo! Italian Specialties, Corelli's Pizza & Pasta, Daytons Food Service, Edina American Legion Post, Empress Restaurant, Jerry's Foods (also off-sale), Original Pancake House, Pantry Restaurant, Southdale Bowl, Szechuan Star Restaurant, T J's Family Restaurant, and The Lotus 111; Off-sale - Edina Superette, Holiday Stations, Inc., Kennys Markets, Country Store and SuperAmerica Station. Motion was made by Member Rice and was seconded by Motion carried on rollcall vote, four ayes. RESOLUTION ADOPTED APPROVING PRECINCT NO. 20 POLLING LOCATION Motion was made by by Member Rice and was seconded by Member Smith for adoption of the following resolution: BE IT RESOLVED by the City Council of the City of Edina, Minnesota, that the polling place for Precinct 20 in the City of Edina be changed from Wooddale Montessori Academy (old Cahill School), 5601 W. 70th Street to Brookview Church, 5015 W. 70th Street. RESOLUTION Motion carried on rollcall vote, four ayes. HENNEPIN COUNTY RECYCLING RECOGNITION LUNCHEON SET FOR 4/18/90 Manager Rosland mentioned that the Hennepin County Board of Commissions has invited the Council and City staff to their annual Recycling Recognition Luncheon on April 18, 1990. He said that Janet Chandler, Recycling Coordinator, and he would attend and that if any of the Council Members could go to let him know so that reservations could be made. Member Smith suggested that the members of the Recycling Commission be contacted and invited to attend. REQUEST OF CITY OF EDEN PRAIRIE REGARDING FLYING CLOUD LANDFILL DEFERRED Mayor Richards referred to a request from the City of Eden Prairie to support them in opposing the expansion of the Flying Cloud Landfill. get more background information on the issue and suggested that this be deferred to a later date. He asked Manager Rosland to SUPPORT LETTER TO BE SENT OBJECTING TO HOST FEES FOR SOLID WASTE FACILITIES Manager Rosland called to the Council's attention a letter from Commissioner Sivanich advising that the cities of Minneapolis and Elk River are lobbying in favor of a legislative amendment to the Waste Management Act which would instate !'host fees'! for solid waste facilities located in those cities. The fee which is being lobbied is $1 per cubic yard. ensuring that cities which host such facilities are compensated for any expenses incurred, the county strongly objects to the proposed legislation and has asked the City of Edina to support their position. Following some discussion, Member Smith made a motion that a letter be drafted for the Mayor's signature in support of Hennepin County's position regarding the proposed legislation that would instate host fees for solid waste facilities in Minneapolis and Elk River. Motion was seconded by Member Rice. While Hennepin County is concerned about 284 3/19/90 Ayes: Paulus, Rice, Smith, Richards Motion carried. I MC SUPPORTS SINGLE TAX RATE ON HOMESTEADS Manager Rosland, on behalf of the City of Edina, had attended a press conference on March 19 in St. Paul, sponsored by the Municipal Legislative Commission (MLC), at which the MLC member cities announced support for legislation that would change Minnesota's property tax system to require a single tax rate on homesteads. Mayor Richards advised that he and Senator Ramstad (Minnetonka) and Rep. Limmer (Maple Grove) have introduced a bill calling for a constitutional amendment establishing a flat tax rate. sponsored by Rep. Blatz (Bloomington) and Senator Knaak (White Bear Lake) would establish a single tax rate by statute. spokesman for the elected officials from the 15 member cities who were present. Another bill Dan McElroy, Mayor of Burnsville, was the STUDENTS TO RECEIVE CERTIFICAWS FOR COUNCIL MEMBER PRESENTATION Member Paulus passed to the Council a copy of the certificate that the City staff had drafted to be given to students who listen to presentations on City government. that the second graders at Cornelia were excited when they received them and that this was an inexpensive and effective public relations aid. She said SCHOOL DISTRICT STRA"EG1C PLANNING - PHASE I1 NOTED Member Paulus presented a copy of the School District Strategic Planning - Phase I1 document resulting from a two-day retreat last week. through the planning process represent massive hours of community support. Initially it was felt that millions of dollars would be needed to implement the plans but the conclusion was that a lot of the cost will be absorbed over the next few years via the School's budgeting process. Member Paulus said at the end of the retreat she delivered a message about the City's budget crunch because one of the goals was to have the City fund a person who would control the problem of alcoholic abuse in the City, especially at the youth level. process and asked that they be informed of that timeframe and the procedure. She said that the six plans that have been developed I The School District does not understand the City's budget review CONDITION OF GIXASON ROAD SIDEWALKS REPORTED received a phone call from a resident who was concerned about the condition of the sidewalks on Gleason Road by the elementary school. there may be some upheaval at this time of year but that he would have staff check on the condition. Member Rice reported that he had Manager Rosland said that NOTICES TO TOWJ!IHOUSES/CONDOMrNIUH OWNE3S QUESTIONED In connection with the Ron Clark development heard earlier, Member Rice said he noted that notices were not given to owners of townhouses and condominiums within 500 feet of the proposed development and that he felt they should be notified. the ordinance requires notice to the single family homeowners who are used for neighborhood comparison purposes. hearing but are not notified for the initial Planning Commission hearing. that it could be done but would involve more staff time. Planner Larsen said that They are notified for the Council public He said After some discussion on the issue of who should be noticed in addition to the ordinance requirements, it was the consensus of the Council that this be placed on a future agenda for consideration. SUMMARY OF STRAWGIC PLANNING SESSION HELD ON 3/12/90 PRESENTED referred to the summary of the Strategic Planning Session held on March 12, 1990. He said the next step would be to put together a work plan based on the five major issues that were identified. Mayor Richards suggested that this matter be placed back on the agenda when all five Council Members would be present so that the Manager Rosland 3/19/90 285 .. . Council could discuss this in greater depth and reach a consensus as to the issues to be included in the work plan. RESOLUTION ADOPTED RELATING TO $3.080.000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 199OA: AWARDING THE SALE, FIXING TEIE FORM AND DETAILS, PROVIDING FOR TfFE EXECUTION AND DELIVWY THEREOF AND TBE SECURITY THEREFOR affidavits showing publication of the Notice of Bond Sale for the $3,080,000 General Obligation Tax Increment Bonds, Series 1990A of the City in a legal newspaper having general circulation in the City, and in a daily or weekly periodical published in a Minnesota city of the first class, which circulates throughout the state and furnishes financial news as a part of its service, as required by law. provisions of Minnesota Statutes, Chapter 475 and directed to be filed in the office of the City Clerk. The City Clerk presented I The affidavits were examined, found to comply with the The City Manager reported that 9 sealed bids for the $3,080,000 General Obligation Tax Increment Bonds, Series 1990A had been received prior to the time designated in the Notice of Bond Sale for the opening of bids. Bond Sale and the Terms and Conditions of Sale the bids have been opened, read and tabulated, and the terms of each have been determined to be as follows: Pursuant to the Notice of Total Interest Interest Bid for Cost -Net Name of Bidder Rates Principal Average - Rate BOATMEN'S NATIONAL BANK 6.70-2002/04 $3,035,882.70 $2,840,646.05 BANK OF ST. LOUIS 6.80-2005 6.8361% HARRIS TRUST AND 6.80-2002/04 $3,031,087.35 $2,880,767.02 BEAR, STEARNS & CO. KIDDER PEABODY & CO. SAVINGS BANK 6.85-2005 6.9326% INCORPORATED Bank of Oklahoma, N.A. William Blair & Company A. Webster Dougherty & Hutchinson, Shockey, Mercantile Bank N.A. Stern Brothers & Company Glickenhaus & Company Hamilton Investments, Inc. Mesirow & Company Prescott, Ball & Turben, Incorporated Van Kampen Merritt Inc. & Co., Inc. Erley & Co. BLUNT ELLIS & LOEWI, INC. THE NORTHERN TRUST COMPANY FBS INVESTMENT SERVICES, INC. NORWEST INVESTMENT SERVICES, INC. American National Bank St. Paul Juran & Moody, Inc. Park Investment 6.80-2002 $2,042,547.95 $2,896,290.39 6.90-2003/05 6.9700% 6.90-2002/05 $3,044,008.00 $2,903,172.00 6.9860% 6.80-2002 $3,033,184.00 $2,905,654.33 6.90-2003/05 6.9925% 286 3/19/90 Corporation Marquette Bank Minneapolis, N.A. M.H. Novick & Company, Inc . DAIN BOSWORTH INCORPORATED 6.85-2002 $3,046,120.00 MERRIU LYNCH CAPITAL MARKETS PIPER, JAFFRAY & HOPWOOD INC. Alison-Williams Company Robert W. Baird & Co. Incorporated CRONIN & CO. INC. SMITH BARNEY, HARRIS UPHAM & CO. INCORPORATED John G. Kinnard & Co. Incorporated MILLER, JOHNSON & KUEHN, INC. EDWARD D. JONES AND co. Dougherty, Dawkins, Strand, Yost, Incorporated Craig Hallum, Inc. Moore, Juran and Company, Inc . Member Smith introduced 6.90-2003 6.95-2004/05 6.80-2002 $3,041,500.00 6.90-2003 6.95-2004 7.00-2005 6.80-2002 6.90-2003 6.95-2004 7.00-2005 $3,039,960.00 6.90-2002/03 $3,043,040.00 6.95-2004 7.00-2005 $2,908,683.54 6.9998% $2,915,360.42 7.0159% $2,916,900.42 7.0196% $2,922,162.08 7.0323% the following: resolution and moved its adoption: I RESOLUTION REIAgING TO $3,080,000 GENERAL OBLIGATION TAX INCREMEJ!lT BONDS, SERIES 19908: AWARDING THE SALE, FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION BND DELIVERY THEReOF AND THE SECURITY THEREFOR - BE IT RESOLVED by the City Council of the City of Edina, Minnesota (the City), as follows : Section 1. Authorization and Sale. 1-01. Authorization. Pursuant to the provisions of Minnesota Statutes, Section 469.178 and Minnesota Statutes, Chapter 475, the City Council of the City has authorized the issuance and sale of its General Obligation Tax Increment Bonds, Series 19908 (the Bonds) in the principal amount of $3,080,000 for the purpose of providing funds for the payment of public redevelopment costs to be incurred by the City and the Housing and Redevelopment Authority of Edina, Minnesota (the HRA) in connection with the 50th and France Redevelopment Plan of the ERA (the Plan). required by Minnesota Statutes, Section 475.60. Sale and the Terms and Conditions of Sale, 9 sealed bids for the purchase of the Bonds were received at or before the time specified for receipt of bids. have been opened and publicly read and considered, and the purchase price, interest rates and net interest cost under the terms of each bid have been determined. Bank of St. Louis, in St. Louis, Missouri (the Purchaser), to purchase the Bonds 1.02. Sale of Bonds. Notice of the sale of the Bonds was duly published as Pursuant to the Notice of Bond I The bids The most favorable proposal received is that of Boatmen's National 3/19/90 287 at.a price of $3,035,882.70 plus accrued interest from the date of the Bonds to the date of delivery thereof, the Bonds to bear interest at the rates set forth in Section 3.01. The proposal is hereby accepted, and the Mayor and the City Manager are hereby authorized and directed to execute a contract on the part of the City for the sale of the Bonds with the Purchaser. unsuccessful bidders shall be returned forthwith. are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, existing, having happened and having been performed, it is now necessary for this Council to establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds forthwith. The good faith checks of the 1.03. Performance of Requirements. All acts, conditions and things which Section 2. Form of Bonds. 2.01. Bond Form. The Bonds shall be prepared in substantially the following form: [Face of the Bonds] UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF EDINA GENERAL OBLIGATION TAX INCREMENT BOND SERIES 1990A No. Date of Eats Maturity Oriainal Issue March 1, 1990 REGISTERED OWNER PRINCIPAL AMOUNT CUSIP SEE REVERSE FOR CERTAIN DEFINITIONS DOLLARS THE CITY OF EDINA, Hennepin County, Minnesota (the City), acknowledges itself to be indebted and, for value received, hereby promises to pay to the registered owner named above, or registered assigns, the principal amount specified above, on the maturity date specified above, with interest thereon from the date of original issue specified above, or the most recent interest payment date to which interest has been paid or duly provided for, at the annual rate specified above, payable on February 1 and August 1 in each year, commencing February 1, 1991, to the person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month, all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. The interest hereon and, upon presentation and surrender hereof at the office of the Bond Register hereafter designated, the , principal hereof, are payable in lawful money of the United States of America by check or draft of First Trust National Association, in St. Paul, Minnesota, as Bond Registrar, Transfer Agent and Paying Agent (the Bond Registrar) or its successor designated under the Resolution described herein. Additional provisions of this Bond are contained on the reverse hereof and such provisions shall for all purposes have the same effect as though fully set forth hereon. 288 3/19/90 This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Bond Registrar by manual signature of one of the authorized representatives of the Bond Registrar. County, State of Minnesota, by its City Council, has caused this Bond to be executed by the facsimile signatures of the Mayor and the City Manager and by a printed facsimile of the official seal of the City and has caused this Bond to be dated as of the date set forth below. IN WITNESS WHEREOF, the City of Edina, Hennepin Dated of Authentication: (Facsimile Signature) City Manager (Facsimile Signature) May0 r (Facsimile Seal) CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. First Trust National Association, as Bond Registrar Authorized Representative [Reverse of the Bonds1 This Bond is one of an issue in the aggregate principal amount of $3,080,000 (the *Bonds*), issued pursuant to a resolution adopted by the City Council on March 19, 1990 (the "Resolution*) to pay public redevelopment costs to be incurred by the City and the Housing and Redevelopment Authority of Edina, Minnesota (the."HRA*) in accordance with a Redevelopment Plan of the HRA (the "Plan"). The Bond is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Section 469.178 and Chapter 475. In addition, for the full and prompt payment of the principal and interest on the Bonds as the same become due, the full faith, credit and taxing power of the City have been and are irrevocably pledged. The Bonds are issuable only as fully registered bonds, in denominations of $5,000 or any multiple thereof, of single maturities. The Bonds are each subject to redemption and prepayment, at the option of the City in whole or in part, and if in part, in inverse order of maturities and in $5,000 principal amounts selected by lot, within any maturity, on February 1, 1997 and on any interest payment date thereafter, at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. At least thirty days prior to the date set for redemption of any Bond, notice of the call for redemption will be mailed to the Bond Registrar and to the registered owner of each Bond to be redeemed at his address appearing in the Bond Register, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond, not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption 3/19/90 289 date, become due and payable at the redemption price therein specified, and from and after such date,(unless the City shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. "qualified tax-exempt obligations" Pursuant to Section 265 of the Internal Revenue Code of 1986, as amended. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by his attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or his attorney: and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange, the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement €or any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City according to its terms have been done, do exist, have happened and have been performed in regular and due form as so required: that prior to the issuance hereof, the City has pledged and appropriated to a sinking fund established for the payment of the Bonds tax increments to be derived by the HRA from a tax increment district created by the HRA to finance public redevelopment costs to be paid or incurred by the HRA or City pursuant to the Plan, which tax increments are to be paid by the HRA to the City in amounts sufficient to pay the principal of and interest on the Bonds when due; that, if necessary for the payment of principal and interest on the Bonds, ad valorem taxes are required to be levied upon all taxable property in the City, which levy is not limited as to rate or amount; and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation. The Bonds have been designated by the City as The City and the Bond Registrar may deem and treat the IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to the applicable laws or regulations: TEN COM -- as tenants UNIF TRANS MIN ACT.. ... Custodian ..... in common (Cust) (Minor) by the entireties TEN ENT -- as tenants JT TEN -- under Uniform Transfers to as joint tenants Minors with right of survivorship and Act...................... not as tenants in (State) common Additional abbreviations may also be used, 3/19/90 290 2.02. Form of Certificate. A certificate in substantially the following form shall appear on the reverse side of each Bond, following a copy of the text of the legal opinion of Bond Counsel: opinion rendered by Bond Counsel on the issue of Bonds of the City of Edina which includes the within Bond, dated as of the date of delivery of and payment for the Bonds. ~ We certify that the above is a full, true and correct copy of the legal (Facsimile signature) (Facsimile signature) Section 3. Bond Terms. Execution and Deliverp. 3.01. Maturities. Interest Rates. Denominations. Pavment. and Dating of City Manager Mayor Bonds. denominated "General Obligation Tax Increment Bonds, Series 199OA." The Bonds shall be issuable in the denomination of $5,000 each or any integral multiple thereof, shall mature on February 1 in the years and amounts set forth below, and Bonds maturing in such years and amounts shall bear interest from date of issue until paid or duly called for redemption at the rates per annum shown opposite such years and amounts as follows: Year Amount Rate 2002 $700,000 6.70% 2003 745,000 6.70 2004 800,000 6.70 2005 835,000 6.80 The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, shall be payable by check or draft issued by the Registrar described herein. Each Bond shall be dated as of its date of authentication. February 1 and August 1 in each year, commencing February 1, 1991, to the owner of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. 3.03. Registration. The City shall appoint, and shall maintain, a bond registrar, transfer agent and'paying agent (the Registrar). registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: The Registrar shall keep at its principal corporate trust office a bond register in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth *y of the month preceding each interest payment date and until such interest papent date. Whenever any Bond is surrendered by the registered owner for exchange, the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney duly authorized in writing. be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is The City shall forthwith issue and deliver the Bonds, which shall be 3.02. Interest Pavment Dates. Interest on the Bonds shall be payable on The effect of (a) Reaister. (b) Transfer of Bonds. Upon surrender to the Registrar for transfer of any (c) -change of Bonds. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall (e) - roper or Unauthorized Transfer. When any Bond is presented to the 3/19/90 291 legally authorized. The Registrar shall incur good faith, to make transfers which it, in its unauthorized. (f) Persons Deemed Ovners. The City and no liability for its refusal, in judgment, deems improper or the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the City upon such Bond to the extent of the sum or sums so paid. (8) Taxes, Fees and Charges. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. become mutilated or be lost, stolen or destroyed, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond lost, stolen or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in coniiection therewith; and, in the case of a Bond lost, stolen or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be.given to the City. If the mutilated, lost, stolen or destroyed Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment. agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, subdivision 1. 3.04. Apuointment of Initial Rezistrar. The City hereby appoints First Trust National Association, of St. Paul, Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with First Trust National Association, as Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove any Registrar upon thirty (30) days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Finance Director shall transmit to the Registrar from the Bond Fund moneys sufficient for the payment of all principal and interest then due. prepayment, at the option of the City, in whole or in part, and if in part, in inverse order of maturities and, within any maturity, in $5,000 principal amounts selected by the Registrar by lot, on February 1, 1997 and on any interest payment date thereafter at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. At least thirty days prior to the date set for redemption of any Bond, the City Finance Director shall cause notice of the call for redemption to be mailed to the Registrar and to the registered owner of each Bond to be redeemed, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. The notice of (h) Mutilated. Lost. Stolen or Destroyed Bonds. In case nay Bond shall (i) Authenticatinv Anent. The Registrar is hereby designated authenticating 3.05. Redemption. Bonds maturing shall each be subject to redemption and 3/19/90 . -. 292 redemption shall specify the redemption date , redemption price, the numbers , interest rates and CUSIP numbers of the Bonds to be redeemed and the place at which the Bonds are to be surrendered for payment, which is the principal office of the Registrar. Official notice of redemption having been given as aforesaid, the Bonds or portions thereof so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions thereof shall cease to bear interest. In addition to the notice prescribed by the preceding paragraph, the City Finance Director shall also give, or cause to be given, notice of the redemption of any Bond or Bonds or portions thereof at least 35 days before the redemption date by certified mail or telecopy to the Purchaser and all registered securities depositories then in the business of holding substantial amounts of obligations of the character of the Bonds (such depositories now being The Depository Rust Company, of Garden City, New York; Midwest Securities Rust Company, of Chicago, Illinois; Pacific Securities Depository !hut Company, of San Francisco, California; and Philadelphia Depository Rust Company, of Philadelphia, Pennsylvania) and one or more national information services that disseminate information regarding municipal bond redemptions; provided that any defect in or any failure to give any notice of redemption prescribed by this paragraph shall not affect the validity of the proceedings for the redemption of any Bond or portion thereof. integral multiple of $5,000. receive, upon surrender of such Bond to the Registrar, one or more new Bonds in authorized denominations equal in principal amount to the unredeemed portion of the Bond so surrendered. direction of the City Manager and shall be executed on behalf of the City by the signatures of the Mayor and the City Manager, and shall be sealed with the official corporate seal of the City; provided that said signatures and the corporate seal may be printed, engraved, or lithographed facsimiles thereof. In case any officer whose signature, or a facsimile of whose signature, shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this resolution unless and until a certificate of authentication on such Bond has been duly executed by an authorized representative of the Registrar. different Bonds need not be signed by the same representative. certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. been so executed and authenticated, they shall be delivered by the City Manager to the purchaser thereof upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the purchaser shall not be obligated to see to the application of the purchase price. I Bonds in a denomination larger than $5,000 may be redeemed in part in any "he owner of any Bond redeemed in part shall 3.06. Preparation and Delivem. The Bonds shall be prepared under the I Certificates of authentication on "he executed When the Bonds have Section 4. Securitv Provisions. 4.01. Construction Fund. A Construction Fund is hereby created, as a special fund and designated on the books of the City as the "19908 Tax Increment Bonds Construction Fund" (the Construction Fund), to be held and administered by the City Finance Director separate and apart from all other funds of the City. The City hereby appropriates to the Construction Fund all of the proceeds received from the sale of the Bonds, less the amount to be deposited in the Bond Fund, pursuant to Section 4.02 hereof. time to time shall be used solely to pay capital and administrative costs of the City and HRB in connection with the Plan. Construction Fund upon completion of the improvements to be financed with the Bonds and payment of all of the costs thereof shall be transferred to the Bond Fund. Moneys on hand in the Construction Fund from Any amounts remaining in the 31 19 I90 293 4.02. Bond Fund. A Bond Fund is hereby created, as a special fund and designated on the books of the City as the "199OA Tax Increment Bonds Bond Fund" (the "Bond Fund"), to be held and administered by the City Finance Director separate and apart from all other funds of the City. interest on the Bonds shall be payable from the Bond Fund. So long as any of the Bonds or any additional bonds issued pursuant to Section 4.04 hereof and made payable from the Bond Fund, are outstanding and any principal thereof or interest thereon unpaid, the City Finance Director shall maintain the Bond Fund, as a separate and special account to be used for the payment of the principal of, premium, if any, and interest on the Bonds, and on all other general obligation bonds now or hereafter issued by the City and made payable therefrom, to finance capital and administrative costs of the €IRA or City in connection with the Plan. The City hereby irrevocably appropriates to the Bond Fund (a) the accrued interest on the Bonds, (b) the tax increments derived from the Tax Increment Financing District created pursuant to the Plan designated by Hennepin County as No. 1200 received by the City from the HRA to pay the Bonds, and (c) any other moneys appropriated or pledged by the terms of this Resolution to the Bond Fund. The City expressly reserves the right to use amounts in the Bond Fund (other than the amounts initially deposited therein upon the issuance of the Bonds) to finance or pay directly capital and administrative costs paid or incurred by the HRA or City pursuant to the Plan. The full faith and credit and taxing power of the City shall be and are hereby irrevocably pledged for the prompt and full payment of the principal of and interest on the Bonds. the tax increment and other funds herein pledged for the payment of the Bonds will be collected in amounts not less than five percent in excess of the amounts needed to meet when due the principal of and interest on the Bonds as required by Minnesota Statutes, Section 475.61. Consequently, no ad valorem taxes are now levied to pay the Bonds or the interest to come due thereon, pursuant to Minnesota Statutes, Section 469.178, subdivision 2. If the money on hand in the Bond Fund should at any time be insufficient to pay principal and interest due on all bonds payable therefrom, such amounts shall be paid from any other fund of the City and such other fund shall be reimbursed therefor when sufficient moneys are available in the Bond Fund. If on October 1 in any year the sum of the balance in the Bond Fund plus the amount of tax increment to be deposited therein is not sufficient to pay when due all principal and interest to become due on all bonds payable therefrom in the following calendar year, or the Bond Fund has incurred a deficiency in the manner provided in this Section 4.03, a direct, irrepealable, ad valorem tax shall be levied on all taxable property within the corporate limits of the City for the purpose of restoring such accumulated or anticipated deficiency in accordance with the provisions of this Resolution. bonds payable from the Bond Fund and tax increments pledged thereto as may be required to finance capital and administrative costs of other projects to be undertaken in accordance with the Plan. 4.05. Execution of Documents. authorized to execute and deliver on behalf of the City such documents as may be appropriate to evidence the pledge and appropriation of the tax increments by the J3RA to the City to pay the bonds. Defeasance. When any Bond has been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of such Bonds shall cease, and such Bonds shall no longer be deemed to be outstanding under this Resolution. The City may discharge its obligations with respect to any Bond thereto which is due on any date by depositing with the paying agent on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the paying agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. also discharge its obligations with respect to any prepayable Bond according to its terms, by depositing with the paying agent on or before that date an amount The principal of and 4.03. Full Faith and Credit Pledged. It is estimated that 4.04. Additional Bonds. The City reserves the right to issue additional The Mayor and City Manager are hereby Section 5. The Clty may 294 3/19/90 equal to the-principal, interest and redemption premium, if any, which are then due provided that notice of such redemption has been duly given as provided any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, to pay all principal, interest and redemption premiums to become due thereon to maturity or said redemption date. Investment of Honevs. Arbitrage. Desimation of Bonds as Qualified Tax EkemDt Obliaations and Official Statement and directed to file a certified copy of this resolution with the County Auditor of Hennepin County, together with such other information as the County Auditor shall require, and to obtain from said County Auditor a certificate that the Bonds have been entered on his bond register as required by law. 6.02. The officers of the City and the County Auditor of Hennepin County are hereby authorized and directed to prepare and furnish to the purchaser of the Bonds and to Dorsey & Whitney, Bond Counsel, certified copies of all proceedings and records of the City, and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 6.03. The City covenants and agrees with the holders fromtime to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the Code), and the Treasury Regulations promulgated thereunder (the Regulations), and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become subject to taxation under the Code and the Regulations. of Treasury an information reporting statement in the form and at the time prescribed by the Code. 6.04. Use of ImDrovements. In order to ensure that the interest on the Bonds does not become subject to taxation under the Code, the City covenants that the improvements to be financed with the proceeds of the Bonds will be owned and maintained by the City and available for use by members of the general public on a substantially equal basis, and that the City will not enter into any lease, use or other agreement with any non-governmental person relating to the use of such improvements or security for the payment of the Bonds which might cause the Bonds to be considered "private activity bonds" or "pr€vate loan bonds" within the meaning of Section 141 of the Code. Director shall ascertain monthly the amount on deposit in the Bond Fund. amount on deposit therein allocable to the Bonds ever exceeds the "minor portion" for the Bonds ($lOO,OOO), such excess shall either (i) not be invested except at a yield less than or equal to the yield of the Bonds, computed in accordance with Section 148(h) of the Code, or (ii) be used to purchase or to redeem Bonds. City reserves the right to amend the provisions of this Section 6.05 at any time, whether prior to or after the delivery of the Bonds, if and to the extent the City Council determines that the provisions of this Section 6.05 are not necessary, or otherwise require amendment, in order to ensure that the Bonds are not arbitrage bonds within the meaning of Section 148 of the Code and the Regulations. officers of the City chargea with responsibility for issuing the Bonds pursuant to I . herein. The City may also at any time discharge its obligations with respect to Section 6. County Auditor Reaistration. Certification of Proceedinps. 6.01. County Auditor Repistration. The City Manager is hereby authorized Certification of Proceedings. General Tax Covenant. I The City will cause to be filed with the Secretary 6.05. Investment of Honev on Deposit in Bond Fund. The City Finance If the The 6.06. Arbltraae Certeication. The Hayor and City Manager, being the 3/19/90 295 this resolution, are authorized and directed to execute and deliver to the purchaser thereof a certificate in accordance with the provisions of Section 148 of the Code, and Sections 1.103-13, 1.103-14 and 1.103-15 of the Regulations, stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds within the meaning of the Code and Regulations. For purposes of complying with the requirements of Section 148(f)(4)(C) of the Code relating to the exemption of certain small governmental units from the rebate requirements of the Code, the City represents that: 6.07. Exemption from Rebate Requirement. (i) (Ti) (iii) (iv) the City is a governmental unit with general taxing powers; the Bonds are not "private activity bonds" as defined in Section 141 of the Code (Private Activity Bonds); ninety-five percent of the net proceeds of the Bonds are to be used for the local governmental purposes of the City; and the aggregate face amount of all tax-exempt bonds (other than Private Activity Bonds) issued by the City in calendar year in which the Bonds are to be issued is not reasonably expected to exceed $5,000,000. Section 6.08. Interest Disallowance. The City hereby designates the Bonds as "qualified tax-exempt obligations" for purpose of Section 265(b) of the Code relating to the disallowance of interest expenses for financial institutions. City represents that in calendar year 1990 it does not reasonably expect to issue tax-exempt obligations which are not private activity bonds (not treating qualified 501(c)(3) bonds under Section 145 of the Code as private activity bonds for purposes of this representation) in an amount in excess of $10,000,000. 6.09. Official Statement. The Official Statement, dated as of March 7, 1990, relating to the Bonds prepared and distributed by Public Financial Systems, Inc., the financial consultant for the City, is hereby approved, and the officers of the City are authorized in connection with the delivery of the Bonds to sign such certificates as may be necessary with respect to the completeness and accuracy of the Official Statement. Public Financial Systems, Inc., is hereby authorized on behalf of the City to prepare and distribute to the Purchaser a supplement to the Official Statement listing the offering price, the interest rates, selling compensation, delivery date, the underwriters and such other information relating to the Bonds required to be included in the Official Statement by Rule 15~2-12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. hereof, the City shall deliver to the Purchaser 75 copies of the Official Statement and such supplement. directed to execute such notes as may be appropriate concerning the aCCwaCY, completeness and sufficiency of the Official Statement. The Within seven business days from the date The officers of the City are hereby authorized and Adopted by the City Council on March 19, Attest : %&%a City Clerk Mayor The motion for the adoption of the foregoing resolution was duly seconded by Member Rice and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor, whose signature was attested by the City Clerk. Paulus, Smith, Rice, Richards None 296 3/19/90 *CLAIMS PAID Motion was made by Member Rice and was seconded by Member Smith to approve payment of the following claims as shown in detail on the Check Register dated 03/19/90 and consisting of 28 pages: General Fund $236,106.50, Comrmmications $11,936.00, Art Center $2,466.44, Capital Fund $11,948.00, Golf Course Fund $37,748.64, Recreation Center Fund $10,318.80, Gun Range Fund $574.57, Edinborough Park $12,619.76, Utility Fund $27,423.23, Liquor Dispensary Fund $90,947.63, Construction Fund $137,616.25, Total $579,705.82. Motion carried on rollcall vote, four ayes. There being no further business on the Council Agenda, Mayor Richards declared the meeting adjourned at 11:47 p.m. City Clerk