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HomeMy WebLinkAbout19960603_regularMINUTES OF THE REGULAR MEETING OF THE EDINA CITY COUNCIL HELD AT CITY HALL JUNE 3,1996 ., ROLLCALL Answering rollcall were Members Kelly, Maetzold, Smith and Mayor Richards. Member Paulus entered the meeting at 7:02. I CONSENT AGENDA ITEMS APPROVED Motion made by Member Maetzold and seconded by Member Kelly adopting the Council Consent Agenda as presented. Rollcall: Ayes: Kelly, Maetzold, Paulus, Smith, Richards Motion carried. LION’S WHITE CANE DAY PROCLAIMED Motion of Member Kelly seconded by Member Smith and carried unanimously adopting a Proclamation naming June 29, 1996, as White Cane Day in Edina. Lions International, with more than 1,300,000 members in the free world, has been dedicated to serving sight for over sixty years by helping the needy with sight problems through use of its White Cane donations. The Edina Lions Club voluntarily provides all manpower and leadership, and invites its neighbors to share in saving vision by donating to its White Cane Campaign and by proclaiming June 29, 1996, as Lion’s White Cane Day in Edina. *MINUTES OF THE REGULAR MEETING OF MAY 20, 1996, APPROVED Motion made by Member Maetzold and seconded by Member Kelly approving the Minutes of the Regular Meeting of May 20, 1996. Motion carried on rollcall vote - five ayes. PUBLIC HEARING HELD: FINAL DEVELOPMENT PLAN, EDINA PROPERTIES, 3917-3929 WEST 50TH STREET CONTINUED TO JUNE 17, 1996 Affidavits of Notice were presented, approved and ordered I placed on file. Presentation by Assistant City Mananer Assistant Manager Hughes explained the subject property is located on the south side of 50th Street west of the Edina Theatre. The property contains 17,595 square feet in area and is presently improved with a multi-tenant retail building of approximately 8,000 square feet. The property is currently zoned Planned Commercial District 2 (PCD-2). Redevelopment plans include demolishing the existing structure and replacing it with a building of three stories plus a basement. The proposed building would have a gross floor area of 36,870 square feet. Building height as viewed from 50th Street is three full stories approximately 49 feet in height, or approximately 1.5 feet higher than the Edina Theatre. Edina Properties also included a fourth story element in the extreme southeastern corner of the site. Proposed exterior materials are predominately brick with some precast concrete highlights. With two exceptions, the project conforms to the requirements of the zoning ordinance. Floor Area Ratio (FAR) exceeds zoning ordinance 1.5 FAR limits for the PCD-2 District with approximately 2.1 or 10,475 square feet or approximately one floor of the proposed building. The zoning ordinance permits the reuse of property at 50th and France without providing additional private parking. However, reuse is by Code limited to the floor area existing on the property or with an infill site to the planned density permitted by the 50th and France Plan approved in 1975. This property would qualify as an infill site and based on the 1975 Plan the density proposed was for a two story building. Therefore, the developers could rely on public parking if constructing a two story building, but must provide additional private parking for any building larger than two stories. The Planning Commission reviewed a four story plan at their May 1, 1996 meeting, but recommended approval of a two story development on the site. A couple weeks after the Planning Commission meeting the proponents returned with the three story plans currently before the Council. MinuteslEdina City CouncilNune 3,1996 Assistant Manager Hughes outlined the following positive features of the plan: I I. 2. 3. 4. 5. 6. Completes the development of an underutilized property at 50th and France, Improves pedestrian use of the alleyway between the Edina Theatre and the proposed building, Provides potential for a covered alleyway similar to the one constructed along the Belleson's property on the north side of 50th Street, Handsome building, complimentary to the nature of the comer, Provides an excellent tie into the parking ramp, the building would have a direct access to the ramp on 51st Street, and Plan shows a proper setback from 50th Street, lining up with other store fronts on 50th Street. Assistant Manager Hughes stated the negative side is limited essentially to the size of the building. Concern exists that a building this size could set precedent, affecting the "village" character of the area. The proposed development coupled with other developments of equal size could cause traffic and parking problems. Assistant Manager Hughes presented statistics showing monthly peak parking vacancies, as counted by the City's parking monitor, from 1989 until 1995. He pointed out the low, 71 in 1991, and another low, 140 spaces in 1994. Typically vacant spaces total about 200 for counts taken during daytime hours when the monitor is working. Assistant Manager Hughes concluded requesting Council if they wish to approve the development, direct staff to draft a zoning ordinance amendment creating either a separate district for 50th and France or another method to pennit the development. Staff does not think a variance process would be proper for this development request. Variances are reserved for properties with unique characteristics presenting hardships to development. Staff does not think the subject property fits that description. Proponent Comment Trace Lund, Owner/Operator of Edina Properties, introduced Marty Rudy Edina Properties Manager, and John Pazhanick, Director of Development. Mr. Lund noted the scope of proposed development changed as Edina Properties prepared to come to the City Council. Mr. Lund stated Edina Properties believes the three floor proposed development and their efforts to provide additional parking will allow for further development of the area. Mr. Lund reviewed the four element development philosophy of Edina Properties: I) creating and reinforcing the pedestrian linkages as appropriate to their properties, 2) conveying a traditional main street texture, 3) unwavering commitment to quality development with appropriate tenant use, and 4) a long term commitment to ownership, management and participation in the district. Mr. Lund showed slides of other Edina Properties' developments highlighting transitions made with each property. I Mr. Lund explained Edina Properties' priority remains the Lund's Food Store, followed by maintaining their present properties and lastly the overall welfare of the general business district. He stated their future intent to convert the Lund's Food Store to a Lund's Market Street Store, expanding the store approximately 4,000 square feet. They have worked through the site plan as needed for a marketplace store and one primary concern was the impact of parking on the ramp and as interrelated to the Lunds Food Store. Mr. Lund observed this project is far enough in the future that Edina Properties has considered the possibility of a private structured ramp over the lot. This is not anything imminent in their plans, but has been considered a solution for future parking needs. Regarding the current development's parking issues, Edina Properties, contracted with Westwood Engineering to look at the City's last five years' records and revisited parking profiles from the last few months. They also presented the project for discussion with the 50th and France Business Association. Mr. Lund stated the Westwood report supported elther a three or four floor development. Edina Properties concluded three floors was the best development alternative for this site. In addition, Edina Properties has reached a one year agreement with Edina Covenant Church leasing fiQ parking spaces at the Church's site. John Pazahanick emphasized the pedestrian linkage on the eastern side of the proposed development. Mr. Pazahanick explained the building has been set back an additional seventeen feet to create a thirty foot wide pedestrian linkage. This pedestrian alley will link the ramp on 51st Street to 50th Street. Edina Properties Page 2 MinuteslEdina Citv CouncillJune 3, 1996 devoted a great deal of architectural detail to this area creating a dramatic and dynamic space bringing people from the ramp out to 50th Street. Edina Properties approach blended the classical architectural of the area with contemporary thinking. Mr. Pazahanick stated Edina Properties plans on a large national retailer occupying a large portion of the first two floors, with three strong retail tenants along the pedestrian alley, the third floor will be office space and a restaurant is planned for the lower level along the pedestrian alley. He repeated Edina Properties commitment to the 50th and France area. I Mr. Lund concluded Edina Properties’ presentation requesting Council approve an amendment to the zoning ordinance and the proposed Final Development Plan. Public Comment John Palmer, 5813 Eastview Drive, stated for eleven years he has been a co-owner with Klaus Freyinger, of the building housing Chicos. Mr. Palmer‘s property is located at the northeast corner of 50th and France, and in the last eleven years has been improved successfully. Mr. Palmer feels the Edina Properties have also been successful in their redevelopment efforts making disagreeing with their development proposal difficult. However, he opposed the proposed development, primarily because the building is too large. The building would take away the village feel of the district. Hosmer Brown, stated he also has been in business in the 50th and France area for many years. Mr. Brown owns property in Edina and in Minneapolis. Mr. Brown noted he is very concerned with the value of property and he thinks, density and use create traffic, and traffic creates value. Since he is interested in value going up, he supports a development as proposed by Edina Properties. Mr. Brown congratulated Edina Properties on the development strategies at 50th and France. Mr. Brown continued, in his opinion today’s development is the fruition of foresight of twenty years ago when additional parking was proposed and developed. If the proposed redevelopment is approved, Mr. Brown asked Council to be sure there is enough parking for the future. Mitch Avery, President of the 50th and France Business and Professional Association, read the following resolution of the 50th & France Business and Professional Associations, lnc., for the record: “RESOLUTION OF THE BOARD OF DIRECTORS OF THE 50th and FRANCE BUSINESS AND PROFESSIONAL ASSOCIATION, INC. The Board of Directors of the 50th & France Business and Professional Association, Inc., extends its support for the proposed office-retail complex to be developed by Edina Properties on the south side of 50th Street, West of France Avenue. The Board of the Association has spent a great deal of time discussing the proposed project. The Board is on the firm belief that the development by Edina Properties will support, enhance and directly benefit virtually all merchants and service providers of the 50th & France area. Given this level of supporf we strongly encourage the members of the City Council to respond favorably to fhe development proposal of Edina Properties. We further encourage Edina Properties and the City of Edina to cooperatively and promptly reach agreement regarding the parking concerns related to the project.” Mr. Avery continued the Association believes Edina Properties deserves special consideration for the following reasons: Site is south of 50th and France on the side of the under utilized south ramp, Task force with Fulton neighborhood, 50th & France Association, Minneapolis Community Development Agency and Minneapolis’ Neighborhood Revitalization Program is looking into additional parking on the Minneapolis side, Lund’s agreement with Edina Covenant Church for employee parking, 50th & France Board is unaware of any other pending developments, 1. 2. 3. 4. Page 3 MinuteslEdina City CouncillJune 3,1996 5. 6. Plan enhances pedestrian atmosphere of area, and Proven track record of Edina Properties. Peny Anderson, 6613 Sally Lane, celebrated his 40th year working at Belleson's. Mr. Anderson expressed appreciation for the fine development done so far by Edina Properties. However, in his experience parking has always been an issue in the 50th & France area, and he has serious concern over the potential for parking problems if the proposed development is approved. Mr. Anderson also pointed out the Edina Theatre contributed to parking by paying for the third floor of the south ramp. Council Comment Member Maetzold asked three questions: what happens in the future when excess parking is gone, if this development is approved; has anyone looked at the zoning issue of leasing 50 parking spaces for commercial use in an R-I District; and could the City if it approves the requested development require the third floor only be utilized for office, not retail? Assistant Manager Hughes responded to the questions stating the city would have three options concerning parking. The City could grant variances, public parking could be added, or the City could require private parking be provided. Each case would need evaluation and determination of the best solution to the parking issue. Staff would need to review the leasing of parking in an R-I District to ascertain its consequences concerning zoning. The third floor's use could not be restricted to office only. Member Smith expressed concern regarding the financial impact of future public parking needs. He asked what contribution the Edina Theatre made when the ramp was improved and what means the City used to secure the Theatre's contribution. Assistant Manager Hughes explained cities may use Tax Increment Financing for public parking facilities. A Tax Increment District exists in the 50th & France area and could be utilized for constructing public parking. Concem exists that the legislature may soon change the rules precluding future public projects. If Tax Increment Financing were no longer available, cities could finance through their general fund or via special assessments. All ramps in the 50th & France area were built with tax increment financing funding 80% of the construction costs and the remaining 20% funded through special assessments. In the case of the Edina Theatre, the Theatre paid the entire 20% instead of their 2-3% proportionate share. This amounted to about $200,000 since the ramps total cost was approximately $1,000,000. Assistant Manager Hughes stated the City used a parking agreement to secure the 20% contribution from the Edina Theatre on the parking project. I Mayor Richards asked Mr. Lund, if in order to secure the third floor for his proposed development, would he be willing to donate outright in fee simple the land space in front of the Lund's Grocely Store in exchange for the public building ramped parking there to meet this anticipated density and possible future density if the City were to deviate from the 1.5 FAR? Mr. Lund replied he was not prepared to answer questions of that magnitude relative to his property. He stated he would have to reflect on the question before answering. Mr. Lund continued Edina Properties did look at construction cost of parking over that space, assuming there would be publidprivate project. Projected costs ran about $1,000,000. Edina Properties reviewed their 20% as it would play out for twenty years and concluded it would be a possibility. Mayor Richards suggested Mr. Lund be prepared to answer the question. He added a ramp would not necessarily need to be constructed as a public project. Only if the City could see a public parking ramp would be in the best interest of Edina then would the Council consider entering into a public project. Mayor Richards continued asking if Edina Properties had considered pulling the third floor of the proposed building back so as to be parallel with the Edina Theatre? Mr. Lund answered Edina Properties had looked at pulling back the third floor in concept. He stated this would perhaps ease some concerns with the mass of the building as raised by some citizens and would still I Page 4 . t. -.. . . MinutedEdina City Councilhne 3,1996 work from the leasing standpoint. There would be a decrease in gross floor area to 9,000 square feet from 14,000 square feet. Of this gross area, 7,000 square feet would be rentable. Member Paulus stated she appreciated parking appears adequate on paper, however, since flat open spaces, then the first and second floors of the ramps are most desirable parking is a concern. If this project moves forward some way of facilitating the use of the upper ramps must be found. Member Paulus observed currently traffic backs up with patrons looking for “prime” parking instead of using the upper levels of the ramps. She noted local business employees are not voluntarily using the upper levels of the ramps which adds to the congestion. Mayor Richards and Member Smith both indicated their desire for the 50th & France Business community to monitor employee and tenant parking to utilize the available ramps to the best possible use, and neither support the concept of off-site parking in residential di.stricts. Mayor Richards asked staff to investigate whether or not the City is in a position to participate in a public project benefitting all citizens. Member Kelly asked for a better visual depiction of the three floor building showing the setbacks and elevations in greater detail. Member Smith moved continuing the Final Development Plan for 3917 through 3929 West 50th Street until the June 17, 1996 Council meeting allowing staff and Edina Properties to investigate options available for meeting the parking issue and density issue. Member Kelly seconded the motion. Ayes: Kelly, Maetzold, Paulus, Smith, Richards Motion carried. PUBLIC HEARING HELD: PARTIAL RELEASE OF CONSERVATION RESTRICTION APPROVED, DONALD BEAUPRE, 5020 SCRIVER ROAD Affidavits of Notice were presented, approved and ordered placed on file. Presentation by Planner Assistant Planner Aaker informed Council, the City received a request from the property owner, Donald Beaupre of 5020 Scriver Road to allow a pool be located within an open space conservation restriction. The open space conservation restriction imposed upon the property states no building or other structures of any kind shall be constructed the easement area without express prior written approval of Edina. The conservation restriction should have been a I00 foot natural condition conservation easement imposed upland from the pond as a condition of subdivision approval of the property in 1977. A natural condition restriction is a no alter easement prohibiting removal of vegetation or construction of structures. The restriction area applied to the plat by legal description exceeded the 100 foot requirement. As a result the house had an extremely limited reatyard. In 1993, Council granted a previous property owner a conversion of a portion of the natural condition restriction to an open space restriction allowing more usable rearyard area. An open space restriction allow the area to be shrubbed, sodded and otherwise landscaped, however, structures require Council approval. The current request is for permission to locate a pool in the open space portion of the conservation restriction area and a fence in both the open space and natural condition conservation restriction. Proponent Comment Donald Beaupre, 5020 Scriver Road, stated he bought his home 1 % years ago, knowing the conservation restriction was in place and thinking it was not a problem. Now he would really like to build the pool in the open space area. In addition, allowing the fence to encroach into the natural condition area would allow better utilization of their backyard. Public Comment Page 5 MinuteslEdina Citv CouncillJune 3. 1996 Phillip Smith, 5024 Scriver Road, expressed his concern allowing encroachment into a twenty year old natural space conservation restriction. Mr. Smith stated a fence is a big structure when built into woods. He requested Council delay the vote allowing him to research the potential for a value change in his property, because in his opinion, the fence would alter the character of the neighborhood. In addition, if Council is changing the restriction on the Beaupre property, then please change his restriction as well. Perhaps he also will build into the area. D Council Discussion/Action Member Maetzold moved approval of the request to build a pool in the open space area, and a fence in the natural condition area of the conservation restriction of the property located at 5020 Scriver Road. Member Smith seconded the motion. Member Smith asked what happens to the open space if the request is granted? Would precedent be set by granting the request? Assistant Planner Aaker explained the Beaupres are not requesting a vacation of the conservation restriction, just that they be allowed to construct a pool and fence. She added the City deals with each conservation restriction request on a case by case basis. Mayor Richards comments it appears an error was made when the natural condition conservation restriction was placed on the property. He supports correcting the error, but sees no compelling reason to allow the fence to encroach into the natural condition conservation restriction. Was the same error made on the property at 5024 as made at 5020 Scriver Road and were any other lot involved? Assistant Planner Aaker responding stating only 5024 and 5020 Scriver Road were involved and that the line was not as far off on Mr. Smith’s property, being just a few feet from where it should be. I Member Maetzold withdrew his motion approving the request for a pool and fence and Member Smith withdrew his second. - Member Smith introduced the following resolution and moved its adoption. RESOLUTION PARTIALLY RELEASING CONSERVATION RESTRICTION Be it resolved by the Edina City Council to release the portion of the consenration restriction currently denoted as open space and conforming to the I00 foot topographic line from the pond for the property know as 5020 Scriver Road. Member Maetzold seconded the motion. Rollcall: Ayes: Kelly, Maetzold, Paulus, Smith, Richards Resolution adopted. Member Smith moved denying the request allowing a fence to encroach into the natural condition portion of the conservation restriction. Member Maetzold seconded the motion. Ayes: Kelly, Maetzold, Paulus, Smith, Richards Motion carried. *HEARING DATE SET FOR PLANNING MATTERS Motion made by Member Maetzold and seconded by Member Kelly setting a hearing date of June 17, 1996, for the following planning matters: I) 2) 3) 4) Preliminary Plat Approval - Arrowhead Pointe, Arrowhead Partners Preliminary Rezoning - R-I, Single Dwelling Unit District to PRDS, Planned Resident District, 5120 - 5124 France Avenue - Hans Kuhlman Zoning Ordinance Amendment - Providing for Hospices as Temporary Conditional Uses in R-I, Double Dwelling Unit Districts Temporary Conditional Use, Request to Operate a Hospice - 7019-7021 Lynmar Lane, N.C. Page 6 MinuteslEdina Citv CouncillJune 3. 1996 Little Memorial Hospice, Inc. Motion carried on rollcall vote - five ayes. *CRITERIA ESTABLISHED FOR MULTIPLE RESIDENTIAL PARKING GARAGE INSPECTORS Motion made by Member Maetzold and seconded by Member Kelly establishing criteria for multiple residential parking garage inspectors as follows: “Inspectors must have in their possession carbon monoxide detection equipment capable of measuring carbon monoxide within plus or minus three parts per million, (equivalent to the equipment used the City of Edina). Motion carried on rollcall vote - five ayes. TWO-WEEK EXTENSION GRANTED FOR PAINTING COMPLETION AT 4245 ALDEN DRIVE Sanitarian Velde reminded Council on September 26, 1995, Herb Knox, 4245 Alden Drive was notified by the Edina Health Department that his dwelling was in violation of the Edina Housing Code. Mr. Knox was directed to replace the roof on his house and scrape, prime and paint the exterior walls. Mr. Knox appealed these orders at the regular Council Meeting of October 16, 1995. The Council affirmed the orders and directed Mr. Knox to complete the repairs by June I , 1996. To date, the repairs are not completed. The roof has been replaced and the exterior walls are in the process of being scraped. Sanitarian Velde estimated it would take an additional two weeks to complete the repairs and recommended Council grant a two week extension to complete the painting at 4245 Alden Drive. Motion made by Member Smith and seconded by Member Kelly granting a two-week extension until June 14, 1996, for completing repairs to his home, at 4245 Alden Drive to Herb Knox and directing Staff to inform Mr. Knox no additional extensions will be granted. Ayes: Kelly, Maetzold, Paulus, Smith, Richards Motion carried. COMMUNITY HEALTH SERVICES ADVISORY COMMITTEE RECOMMENDATIONS ADOPTED REGARDING USE OF TOBACCO IN PUBLIC SCHOOLS: COMMUNICATION WITH EDINA SCHOOL BOARD RECOMMENDED Sanitarian Velde explained the Edina Community Health Services Advisory Committee has been engaged in an ongoing effort to reduce tobacco use by youth in our community. Efforts include: recommending prohibition of vending machine sales of tobacco, adopting a strict surveillance program for monitoring sales to youth and developing a poster project for sixth graders depicting the harm of using tobacco products. Past efforts have been and continue to be a benefit to the community, there is still a need to improve the health status of the youth in our community. Sanitarian Velde explained the Community Health Services Advisory Committee met recently and recommended the Council communicate to the Edina School Board the following statement: The Edina Community Health Board (City Council) urges the Edina School Board to adopt a zero tolerance policy regarding the use of tobacco products in the schools and on school grounds. To accomplish this end, the following policies should be considered: 0 0 0 0 Stiffer penalties should be adopted, similar to penalties for alcohol and drug use, for violators of the tobacco policy. Tobacco use should be prohibited on school grounds, whether indoors or outdoors. Monitors should be provided to prevent smoking in the bathrooms. Funding for these monitors could be sought from benevolent foundations or local businesses. The Student Council should be involved in an effort to effect change in the school climate regarding tobacco usage. Sanitarian Velde added the purpose and intent of these policies should be clearly and widely communicated to students and parents. _- Page 7 MinuteslEdina City CouriciVJune 3,1996 Member Smith made a motion directing staff to draft a letter for the Mayor‘s signature, to the Edina School Board urging them to adopt a zero tolerance. pplicy regarding the use of tobacco products in the schools and school grounds and that the purpose and intent of these policies be clearly and widely communicated to students and parents. Member Kelly seconded the motion. D Ayes: Kelly, Maetzold, Paulus, Smith, Richards Motion carried. CORRESPONDENCE RECEIVED FROM CONCERNED RESIDENT - WRITTEN RESPONSE ACKNOWLEDGED Mayor Richards noted a letter had been received from George Topor, 5709 Kemrich Drive, seeking response from six questions relating to the City‘s method of assessment for street projects. Engineer Hoffman responded to Mr. Topor‘s questions by way of a letter sent to his home. Mr. Topor acknowledged receipt of the letter and asked and received further clarification on two points. No further action was required. HEARING DATE CHANGED TO JULY I, 1996, FOR CABLE TELEVISION FRANCHISE RENEWAL Manager Rosland informed Council it was necessary to change the hearing date for renewal of the cable television franchise from June 17, 1996, to July I , 1996. PUBLIC HEARING HELD; PROPOSED AMENDMENT APPROVED OF CERTAIN TERMS $6,735,000 - MULTIFAMILY MORTGAGE REVENUE BONDS (VERNON TERRACE PROJECT) Affidavits of Notice were presented, approved and ordered placed on file. Peter Cooper, Attorney with McGrann, Shea, Franzen, et al., explained this amendment is similar to the amendments with the July, 1993 remarketing of the Vernon Terrace Project Mortgage Revenue Bonds. The principal differences are the proposed extension of final maturity of the Bonds from 2022 to 2025 being requested by the Company under terms of the contract for deed covering the Project and the additional restrictions in the Guaranty Agreement requested by the Remarketing Agents relating to termination of a Guarantor. Mr. Cooper introduced David Mullen, Vice President and Manager of FBS Investment Services, Inc., who was available for questions. I Member Maetzold stated he would abstain from participating in the discussion or final vote due to a possible conflict of interest. Following a brief discussion, Member Smith made a motion which was seconded by Member Kelly to adopt the following resolution: RESOLUTION APPROVING EXECUTION AND DELIVERY OF SECOND SUPPLEMENTAL INDENTURE, SECOND AMENDMENT TO LOAN AGREEMENT AND AUTHORIZING OTHER MATTERS RELATED TO MULTIFAMILY MORTGAGE REVENUE REFUNDING BONDS (VERNON TERRACE PROJECT) SERIES 1990 WHEREAS, pursuantto an Indenture of Trust dated as of July I, 1990, (cLlndenture”) between the City of Edina, Minnesota (the “City”) and First Trust National Association, as trustee (the cLTrustee”), the City issued -6 Multifamily Mortgage Revenue Refunding Bonds (Vernon Terrace Project) Series 1990 (the “Bonds”), which were secured by a certain Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Financing Statement dated as of July I, 1990 (the “Mortgage”); and I WHEREAS, proceeds from the sale of the Bonds were loaned to Ohmega Building Corporation, a Minnesota corporation (the “Company”), pursuant to a Loan Agreement dated as of July I, 1990, (the “Loan Agreement”) for the purpose of refunding prior bonds of the City issued to finance the acquisition and construction of a multifamily rental housing facility located in the City and known as Vernon Terrace Apartments (the LcProjecfy’); and Page 8 ‘ :a ,# b MinuteslEdina City CouncilNune 3,1996 WHEREAS, in connection with the mandatory tender and remarketing of the Bonds on July I, 1993, the City and the Trustee executed a First Supplemental Indenture amending the Indenture, and the City and the Company executed a First Amendment to Loan Agreement, amending the Loan I Agreement; and WHEREAS, as of July I, 1993, the Company sold the Project to Ted Bigos who acquired the Project pursuant to a contract for deed but subject to the Indenture, Loan Agreement and Mortgage; and WHEREAS, the Bonds are subject to mandatory tender and purchase on July I, 1996, (the “Mandatory Tender Date”); and WHEREAS, in connection with the Mandatory Tender Date the Company has requested amendments to the Indenture, Loan Agreement and Mortgage pursuant to a proposed Second Supplemental Indenture of Trust (the “Second Supplemental Indenture”), a proposed Second Amendment to Loan Agreement (the “Second Loan Agreement Amendment”), and a proposed First Amendment of Mortgage (the “First Amendment of Mortgage”), respectively, each proposed agreement being dated as of July 1, 1996, and on file with the City Clerk; and WHEREAS, the City has been advised that the foregoing amendments are permitted by the Indenture; and WHEREAS, the City Council has conducted a public hearing on the proposed extension of the final and average weighted maturity of the Bonds and amendments to the mandatory sinking fund schedule, following published notice in accordance with the requirements of Section 147(f) of the Internal Revenue Code. I NOW, THEREFORE, BE IT RESOLVED as follows: I. The form of each of the Second Supplemental Indenture, Second Loan Agreement Amendment and First Amendment of Mortgage on file are hereby approved. The Mayor and City Manager are hereby authorized and directed to execute in the name of and on behalf of the City the Second Supplemental Indenture and Second Loan modified Agreement Amendment, as such documents may be completed, amended or modified and approved by such officials, which approval shall be deemed conclusively given upon execution of such documents by the officials; provided however, that on the date of such execution Bond Counsel shall have delivered all opinions in connection therewith that are required by the Indenture to be delivered on or before such date. In the absence of the foregoing officials, any of the documents authorized by this Resolution shall be executed by those persons who are permitted by law to act in the absence of such officials. Upon the request of the Company, and subject to the approval of legal counsel to the City, the Second Supplemental Indenture shall be modified (a) to cause the Mandatory Tender Date (as defined in the Indenture) next occurring after July 1, 1996, to be that interest payment date for the Bonds which shall be designated by the Company, but no later than July I, 1999, and (b) to establish the interest rate to be borne by the Bonds on July I, 1996, as the rate designated by the Company, but not to exceed 5% per annum. The Mayor, City Manager and other officers of the City are authorized to approve and furnish, execute or deliver such other certifications, documents or instruments as McGrann Shea Franzen Carnival Straughn & Lamb. Chartered, as bond counsel, shall require, including such instruments as may be required for federal tax law purposes. ADOPTED June 3,1996. 2. 3. 4. 5. Rollcall: This resolution shall become effective as of the date and time of its adoption. Page 9 .f -. MinuteslEdina City CouncillJune 3,1996 Ayes: Kelly, Paulus, Smith, Richards Abstaining: Maetzold Resolution adopted: ,I ” I’ *RESOLUTION ADOPTED RELATING TO FINANCING OF PARK IMPROVEMENT, BRAEMAR EXPANSION AND NEW FIREEMS STATION ESTABLISHING COMPLIANCE WITH REIMBURSEMENTS BOND REGULATIONS UNDER INTERNAL REVENUE CODE Motion made by Member Maetzold and seconded by Member Kelly adopting the following resolution: RESOLUTION RELATING TO FINANCING OF PARK IMPROVEMENTS, EXPANSION OF BRAEMAR ARENA AND NEW FlREfEMS STATION; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE BE IT RESOLVED by the City Council of the City of Edina, Minnesota (the “City”), as follows: I. Recitals. (a) The United States Department of Treasury has promulgated final regulations governing the use of proceeds of tax-exempt bonds, all or a portion of which are to be used to reimburse the City for project expenditures paid by the City prior to the date of issuance of such bonds. Those regulations (Treasury Regulations, Section I .150-2) (the “Regulations”) require that the City adopt a statement of official intent to reimburse an original expenditure not later than 60 days after payment of the original expenditure. The Regulations also generally require that the bonds be issued and the reimbursement allocation made from the proceeds of the bonds within 18 months (or three years, if the reimbursement bond issue qualifies for the “small issuer” exception from the arbitrage rebate requirement) after the later of (i) the date the expenditure is paid or (ii) the date the project is placed in service or abandoned, but (unless the issue qualifies for the %mall issuer” exception from the arbitrage rebate requirement) in no event more than three years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs of issuance of the bonds. (b) The City desires to comply with requirements of the Regulations with respect to certain projects hereinafter identified. (a) The City proposes to undertake certain projects (the “Projects”), consisting of (i) the expansion of Braemar Arena by the construction of a third ice sheet at a total estimated cost of $2,750,000, (ii) the construction of a new FirelEMS station at a total estimated cost of $650,000 and (iii) certain park improvements and improvements to enterprise facilities, which improvements and the estimated costs thereof are generally described on Exhibit A hereto, which is hereby incorporated herein and made a part hereof. (6) Other than (i) expenditures to be paid or reimbursed from sources other than the Bonds (as hereinafter defined), (ii) expenditures permitted to be reimbursed under the transitional provision contained in Section 1.150-2(j)(2) of the regulations, (iii) expenditures constituting preliminary expenditures within the meaning of Section I .150-2(f)(2) of the Regulations, or (iv) expenditures in a “de minimus” amount (as defined in Section 1.150-2(f)(I) of the Regulations), no expenditures for the Projects have heretofore been paid by the City and no expenditures will be paid by the City until after the date of this Resolution. (c) The City reasonably expects to reimburse the expenditures made for costs of the Projects out of the proceeds of debt to be issued in one or more series in an estimated maximum aggregate principal amount of $8,650,000 (the “Bonds”), after the date of payment of all or a portion of the costs of the Projects. All reimbursed expenditures shall be capita1 expenditures, a cost of issuance of the Bonds or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Regulations. Budgetary Matters. As of the date hereof, there are no City funds reserved, allocated on a I 2. Official Intent Declaration. 3. Page IO MinuteslEdina Citv CouncillJune 3. 1996 long-term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long- term basis or otherwise set aside) to provide permanent financing for the expenditures related to the Projects, other than pursuant to the issuance of the Bonds. The statement of intent contained in this resolution, therefore, is determined to be consistent with the City’s budgetary and financial circumstances as they exist or are reasonably foreseeable on the date hereof. Reimbursement Allocations. The City’s financial officer shall be responsible for making the “reimbursement allocations” described in the Regulations, being generally the transfer of the appropriate amount of proceeds of the Bonds to reimburse the source of temporary financing used by the City to make prior payment of the costs of the Projects, Each allocation shall be evidenced by an entry on the official books and records of the City maintained for the Bonds or the Projects and shall specifically identify the actual original expenditure being reimbursed. ADOPTED this 3rd day of June, 1996. 4. Motion carried on rollcall vote - five ayes. CLAIMS PAID Member Smith made a motion to approve payment of the following claims as shown in detail on the Check Register dated May 29, 1996, and consisting of 31 pages: General Fund $381 ,I 88.60; C.D.B.G. $20.50; Communications $256.1 6; Working Capital $4,523.94; Art Center $9,997.33; Swimming Pool Fund $7,171.60; Golf Course Fund $20,714.98; Ice Arena Fund $2,533.15; Gun Range Fund $138.41; EdinboroughlCentennial Lakes $1 1,651.10; Utility Fund $99,460.02; Storm Sewer Utility Fund $1,794.53; Recycling Program $2,554.68; Liquor Dispensary Fund $184,596.72; TOTAL $726,601.72. Member Maetzold seconded the motion. Rollcall: Ayes: Kelly, Maetzold, Paulus, Smith, Richards Motion carried. There being no further business on the Council Agenda, Mayor Richards declared the meeting adjourned at 9:33 P.M. h Q i^JI.......- .City Clerk Page 11