HomeMy WebLinkAbout19970407_jointMINUTES
OF THE JOINT MEETING OF THE
EDINA CITY COUNCIL AND THE
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT CITY HALL
APRIL 7,1997 - 7:OO P.M.
ROLLCALL Answering rollcall were Members Faust, Hovland, Kelly and Mayor Smith.
CONSENT AGENDA Motion made by Member Hovland and seconded by Member Faust to
approve the Consent Agenda items as presented with the exception of Agenda Item Ill. A.
Fire Works Display, 1997 4th of July Celebration, 111. C. Lake Cornelia Park Playground
Improvement and 111. K. Water Treatment Chemicals.
Rollcall:
Ayes: Faust, Hovland, Kelly, Smith
Motion carried.
*MINUTES OF THE REGULAR MEETING OF THE MARCH 17.1997. APPROVED Motion made
by Member Hovland and seconded by Member Faust approving the Minutes of the Regular
Meeting of March 17,1997.
Motion carried on rollcall vote - four ayes.
1997 EDINA BOYS STATE HOCKEY CHAMPIONS RECOGNIZED Mayor Smith commended the
I997 Edina Boys Hockey Team who won the Classic Lake Conference, Section 6AA
Championship. Resolutions of Commendation were presented each team member as
ambassadors of the City of Edina who represented the highest standards of athletic proficiency and
good sportsmanship.
PUBLIC HEARING HELD: RESOLUTION ADOPTED APPROVING AMENDMENTS TO ~
GRANDVIEW REDEVLEOPMENT PROJECT NO. I. GRANDVIEW AREA REDEVELOPMENT
PLAN AND GRADVIEW TAX INCREMENT FINANCING PLAN Assistant City Manager Hughes
reported on February 18, 1997, staff presented a report to the Edina HRA concerning the possible
acquisition of properties identified as Lewis Engineering and Kunz Oil (Parts Plus) within the
Grandview Redevelopment Area. On that occasion, the HRA adopted resolutions authorizing
acquisition of these properties by eminent domain if necessary. Staff also advised that such
resolutions were dependent upon the HRA and City Council adopting amendments to the tax
increment financing plan for the Grandview Tax Increment Financing District. Staff has prepared
amendments and has provided copies of the amendments to Hennepin County and the Edina
School District as required by State Law.
A copy of the proposed amendments, is filed in the office of the City Clerk. Approval of the
amendments requires adoption of resolutions by both the HRA and the City Council.
The proposed amendments provide authority for the HRA to acquire and provide financial or other
assistance to the properties generally referred to as Lewis Engineering and Kunz Oil (Parts Plus).
In addition, staff recommends the amendments include the possible acquisition of the Edina School
District bus storage facility even though the acquisition of this property is not now being pursued. In
staffs opinion, this is advisable because of potential legislation restricting tax increment financing
that could prohibit such a project in the future. School District representative have been advised the
City's proposal includes the bus storage facility acquisition in the proposed amendments. I
The proposed amendments provide for an acquisition and site development budget of
$3,900,000.00. The plan also provides for the use of tax increments to pay interest costs and
various administrative expenses allowed by State Law. As noted earlier, copies of this plan have
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MinutedEdina City CouncillApril7.1997
been sent to Hennepin County and the Edina School District. Hennepin County submitted
comments regarding the amendments in correspondence dated March 27, 1997. Jeff Spark,
County Administrator noted this amendment is essentially a technical amendment adjusting the
budgeted expenditures of tax increments and recommended no opposition to the amendment.
Staff recommends adoption of the amendments.
No public comments were received.
Member Faust introduced the following resolution and moved its approval:
I.
2.
3.
4.
RESOLUTION APPROVING AMENDMENTS
TO GRANDVIEW REDEVELOPMENT PROJECT NO. I ,
GRANDVIEW AREA REDEVELOPMENT PLAN AND
GRANDVIEW TAX INCREMENT FINANCING PLAN
AND MAIN FINDINGS WITH RESPECT THERETO
BE IT RESOLVED by the City Council of the City of Edina, Minnesota as follows:
The Commissioners of the Housing and Redevelopment authority in and for the City of
Edina, Minnesota (the “HRAJJ) and the City of Edina, Minnesota (“the City’,), have
previously approved the Grandview Area Redevelopment Plan (the “Redevelopment
Plan”) to be undertaken pursuant thereto, and in order to finance the public
redevelopment costs to be incurred by the City and the HRA in connection with the
Redevelopment Plan and Redevelopment Project, the HRA and the City have approved
Grandview Tax Increment Financing Plan (the “Financing Plan”), which establishes a
tax increment financing district which is designated by the HRA as the Grandview Tax
Increment Financing District (Hennepin County No. 1202) (the “District”). The HRA has
approved an amendment to the Redevelopment Project, the Redevelopment Plan and
the Tax Increment Financing Plan which is entitled “Amendments to Grandview
Redevelopment Project No. I, Grandview Area Redevelopment Plan and Grandview Tax
Increment Financing Plan” (the “AmendmentyJ). The Amendment authorizes the
acquisition and redevelopment by the HRA of the Property in the area subject to the
Redevelopment plan and the additional expenditures of tax increment revenues derived
from the District to pay public redevelopment costs of the acquisition and
redevelopment of such property by the HRA or another party and to pay administrative
expenses of the HRA and City.
This Council on April 7, 1997, held a public hearing on the Amendment after notice of
the public hearing was published in the official newspaper of the City not less than ten
(IO) days prior to the date of the hearing. At such public hearing all persons desiring to
be heard with respect to the Amendment were given an opportunity to express their
views with respect thereto.
This Council has previously found that the District is a redevelopment district within the
scope of Minnesota Statutes, Section 469.174, subdivision IO and the Amendment will
not change such prior findings. The Amendment further serves the original goals and
objectives of the City and HRA in approving the Redevelopment Plan, the
Redevelopment Project and the Financing Plan, by redeveloping property in the City in
order to prevent or reduce blight, blighting factors and the causes of blight.
Pursuant to Minnesota Statutes, Section 469.175, subdivision 4, it is hereby found that
(A) The District, is a redevelopment district, as defined in Minnesota Statutes, Section
469.174, subdivision IO, for the reasons set forth in previous findings by this
Council, and the Amendment does not alter these previous findings.
(B) The proposed development to be undertaken in accordance with the Redevelopment
Plan, as amended by the Amendment, in the opinion of this Council would not occur
solely through private investment within the reasonable foreseeable future and
therefor the use of tax increment financing is deemed necessary.
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MinutedEdina City CounciVApril7.1997
(C) The Financing Plan, as amended by the Amendment, conforms to the general plan
for the development of the City as a whole.
(D)The Financing Plan, as amended by the Amendment, will afford maximum
opportunity consistent with the sound needs of the City as a whole for the
development of the area subject to Redevelopment Plan by private enterprise.
(E) The City confirms its election of the method of tax increment computation set forth
in Minnesota Statutes, Section 469.177, subdivision 3, clause (I) with respect to the
District.
Passed by the Council this 7th day of April, 1997.
,-
Mayor
Attest:
City Clerk
Member Kelly seconded the motion.
Rol lcal I :
Ayes: Faust, Hovland, Kelly, Smith
Resolution adopted.
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FINAL DEVELOPMENT PLAN, 3917-3929 WEST 50TH STREET. EDINA PROPERTIES
CONTINUED TO APRIL 21.1997 Affidavits of Notice were presented, approved and ordered placed
on file.
Presentation By Planner
Planner Larsen informed the Council the subject property is zoned PCD-2, Planned Commercial
District -2, and is developed with a one story concrete block and brick building. The existing building
occupies approximately one half of the site with paved area occupying the remaining lot area. The
City’s municipal parking ramp and service tunnel are located south of the subject property with the
Edina Theatre located to the east and a retail office building adjacent to the west.
Planner Larsen explained the proponents have submitted Final Development Plan application to
redevelop the site. The plan includes demolishing the existing structure and replacing it with a two
story building plus basement. The plan includes a first floor retail area with the basement area
occupied by storage and a restaurant. The second floor would be occupied by an expansion of the
Edina Theatre to include four new screens with 798 seats. The second floor theater area will be
connected by a walk-bridge from the existing Edina Theatre. The plan includes widening of the walk-
way alley between the theater and the proposed building and would provide direct access from the
ramp.
Planner Larsen noted the proposed plan is architecturally similar to a plan reviewed by the City
Council in June of 1996. The previous plan proposed a four story redevelopment for the site when
reviewed by the Planning Commission. The plan was reduced to three stories when presented to
Council. Ultimately, the Council approved a two story plan. The approved plan could have a
maximum Floor Area Ratio (FAR) of no more than 1.5, which is the maximum allowed in the PCD-2
District. The plan currently before Council has a FAR of 1.43. In addition, the proposed development
intensity is consistent with the 50th and France Redevelopment Plan. The proposed building height is
47.5 feet or the same as the adjacent theater. The building complies with the City’s height regulations
of fifty feet or four stories in the PCD-2 district.
Planner Larsen reminded Council the Zoning Ordinance requires one parking space for each 200
square feet of floor area for general retail. At this rate the new building would create a parking
demand of 128 spaces. The four theaters in the proposed building have a total of 798 seats. In the
50th and France context, the theater is considered part of a shopping center for parking purposes. At
one space for each 10 seats, the theater creates a demand for an additional 80 parking spaces.
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MinuteslEdina City CounciilAprii7.1997
Planner Larsen submitted recommendations from the Engineering Department relative to the design
of the entrances to the South Ramp. The west entrance onto the second level will require stairs due
to the height difference between the tunnel and parking ramp. The east entrance onto the ramp’s
second level will require a ramp system to meet ADA guidelines.
Planner Larsen noted that in addition to the skyway connecting the proposed addition to the existing
theater, the developers plan a canopy over the pedestrian walkway connecting the parking ramp to
50m Street. A similar canopy was included in the previously approved plan. The canopy would be a
joint venture between the City’s HRA and Edina Properties.
Planner Larsen reviewed the results of a parking survey taken between March 1 and 29, 1997 of the
50m and France Avenue Municipal Parking. He explained staff focused on Saturday when both retail
and theater use would be operating. The survey included all three municipal ramps and the 49%
Street surface lot. The data gathered was used to calculate the average percentage of occupancy in
each lot in two time periods: before 4:OO p.m. and 4:OO p.m. or later. The following are the results of
the survey:
Percentage of Parking Utilized on Saturdays between March 1 & 29, 1997
Before 4:OO 4:OO or Later
North Ramp 61 % 30%
Clancy’s Lot 93% 68%
Middle Ramp 76% 63%
South Ramp 65% 56%
Planner Larsen noted it has been proposed to re-sign the contract parking portions of the ramps to
read “Contract Parking 8:OO a.m. until 6:OO p.m.” freeing additional parking for theater patrons.
Planner Larsen concluded the Planning Commission recommends Final Development Plan approval
subject to:
I. Modification of the plan to conform with the Engineering Department’s recommendations;
2. Payment of parking assessment for use of public parking; and
3. Development Agreement with HRA covering the proposed canopy.
I
Planner Larsen introduced John Pazanhanick, Director of Store Development for Edina Properties,
the proponent. Mr. Pazanhanick stated he would be available to answer any questions.
Council Discussion
Member Kelly stated he would be abstaining from discussion and voting since he has previously
done work for Cineplex Odeon.
Mayor Smith noted the need for a three fifths vote on Final Development Plans. He asked Mr.
Pazanhanick, in light of Member Maetzold’s absence and Member Kelly abstaining, if the proponent
would prefer to continue consideration of their plan until the next Council meeting.
Mr. Pazanhanick requested the Council continue consideration of Edina Properties’ Final
Development Plan until April 21 , 1997.
Member Hovland made a motion to continue consideration of Final Development Plan for
3917-3929 West 50’h Street until April 21,1997. Member Faust seconded the motion.
Ayes: Faust, Hovland, Smith
Kelly abstained
Motion carried.
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MinuteslEdina City Council/April7.1997
CONSIDERATION OF CURB CUT DELAYED UNTIL APRIL 21, 1997 DIVERSIFIED
PHARMACEUTICAL SYSTEMS (DPS) FACILITY (W. 78TH STREET) Affidavits of Notice were
presented, approved and ordered placed on file.
Staff Presentations
Planner Larsen reminded Council the subject property is completely located within the City of
Bloomington, south of W. 78th St. and west of Cecilia Circle. The site is approximately eleven acres in
size. Planner Larsen reviewed the proposed recommendations Council is being asked to consider: 1)
Authorize the City Manager to execute the Letter of Understanding between Liberty and the City (he
noted John Gattuso of Liberty Property has signed the draft letter), 2) Authorize the necessary curb cut
permits, and 3) Authorize staff to develop a Joint Powers Agreement with the City of Bloomington to
cover construction of the recommended roadway improvements, including the signalization of West
78‘h St. and Cecilia Circle.
Planner Larsen reviewed the four major points contained in the draft Letter of Understanding:
1.
2.
3.
4.
Liberty would agree to pay a minimum of $261,000 but no more than $281,000 to Edina towards
the cost of the roadway improvements to W. 78th St. Liberty‘s contribution includes the
signalization of Cecilia Circle and approximately 1/2 of roadway improvement between Cecilia
Circle and the west boundary of Liberty’s property.
Liberty agrees to provide a landscaping plan and schedule ’acceptable to Edina and in
conformance with Bloomington’s requirements. The plan will emphasize screening along the
north side of the parking structure and surface parking lot. The landscaping shall be subject to
final approval of the Edina Planning Director and the Bloomington Planning Manager. Liberty
would agree to post a landscape performance bond or suitable security with the City of
Bloomington guaranteeing all plant materials for two growing seasons. Liberty assumes
maintenance responsibility for all plantings within the public right of way.
Liberty agrees to move the westerly access to the parking structure as far to the south as
practicable. Liberty also agrees to provide a right turn lane at the “ceremonial” entrance from east
bound W. 78th St.
Liberty agrees to enter into a Deed Restriction in favor of Edina relative to the construction of an
additional office building in the northwesterly expansion area identified on the April 3, I997 RSP
site plan.
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Plans for the additional building on the site will be submitted to Edina for site plan,
landscaping and design review.
Any additional building on the site shall be limited to 27 feet in height, measured from the
average ground elevation along the northerly elevation of the building.
Any additional building on the site shall be limited to a total gross floor area of 48,000 sq.
ft., as defined in the City of Edina Zoning Ordinance.
Liberty will not construct an additional building on the site for any tenant except for
occupancy by DPS, any other affiliate of Smith Kline Beecham Health Care Service, or its
contract providers, and will not subdivide the property to create a new lot for an additional,
speculative building.
Mayor Smith asked why the developer changed from the last meeting when he stated that Liberty they
would build no additional buildings before obtaining Edina’s approval, to the current proposal of
potentially only one building not more than 48,000 sq. ft. He also asked how Edina’s setback rules
would apply to the DPS proposal and whether the proposed landscaping would meet Edina’s
requirements. Planner Larsen replied Edina’s setback requirements would be thirty-five feet or the
height of the building, whichever is greater, therefore, in this case it would be thirty-five feet. He stated
the landscaping, as proposed is significantly above Edina’s requirements and those of the City of
Bloomington. 1
Mayor Smith asked if the Cecilia Circle curb cut would be for the exclusive use of the Liberty Property
site. Planner Larsen replied the curb cut would not establish a way to access property south of DPS.
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MinuteslEdina City CouncillApril7.1997
Member Hovland suggested the concerns raised by the Dewey Hills residents be addressed in the
Letter of Understanding, such as traffic management signs minimizing use of the ceremonial drive. He
questioned how the single parking entrance was arrived at for the ceremonial drive and how Liberty's
contribution to the roadway improvement was calculated. Planner Larsen explained it is believed with
the addition of the right turn lane on W. 78" and southern location of the parking entrance, adequate
stacking will be created for cars entering the parking structure. Preliminary engineering estimates
indicate the Liberty portion would be $261,000. Liberty has agreed to pay at least this amount and up
to an additional $20,000. Planner Larsen stated if the true cost of the improvements is less than
$261,000 Edina would retain the difference. If the costs exceed $281,000 Edina would pay the
additional costs.
Mayor Smith asked if both the City of Edina and the City of Bloomington would be named on the
landscaping bond. Planner Larsen replied it was decided after discussing this issue with the City
Attorney, that only the City of Bloomington would be named on the bond. Attorney Gilligan noted the
method for handling claims against the landscaping bond could be addressed in the Joint Powers
Agreement between Edina and Bloomington.
Member Kelly noted that the deed restrictions offered in the Letter of Understanding are not the deed
restrictions offered by Mr. Gattuso at the March 17, I997 meeting. He asked if the allowing the City to
exercise only architectural control and limiting the building size resulted from negotiation. Planner
Larsen answered that after the last meeting Mr. Gattuso talked with his client and was informed of the
possibility of a need to provide daycare for their employees.
Mayor Smith noted that Mr. Gattuso will have an opportunity to respond to this issue after the staff
presentations are complete.
Presentation by Enaineer
Engineer Hoffman explained staff has been reviewing the fourteen roadway projects noted in the SRF
Traffic Study presented to the Council March 17, 1997. Staff has ascertained which projects are
achievable during 1997 and 1998. Beginning at the east end of W. 781h St. Engineer Hoffman outlined
the improvements and proposed year of construction.
East Bush Lake Rd. & W. 781h St. to be modified improving capacity, constructed by Hennepin
County, Bloomington and Edina during 1997
0 W. 78" St. & Cahill Rd. from just east of E. Bush Lake Rd. to Cecilia Circle improvements planned
for 1997
Cecilia Circle down and through Gleason area, DPS would pay for a portion of this improvement
including engineering costs. The signal at Cecilia would be similar to 82nd & Knox, with restrictions
on traffic flow to the north. The proposed roadway concept is five lanes with medians in the middle
and turn lanes. Loop detectors will be placed at Glasgow and Lochmere to create west bound gaps
for traffic turning onto W. 78* St.
0 Signal at Gleason and W. 78" St. - Bloomington has indicated they will pay for half of the costs. If
Edina intends to use State Aid Gas Tax, the intersection must meet signal warrants. Engineer
Hoffman indicated at this time he does not think the road meets warrants.
0 Braemar Frontage Road - Engineer Hoffman believes this improvement must be tied in with the
signal at Gleason Road.
I Funding for the improvements would come from Edina's state aid gas tax, Bloomington's state aid gas
tax and the developers contribution of up to $281,000.00.
Engineer Hoffman noted additional issues for consideration include the cut through traffic, speed
issues and the school bus stop. He suggested involving area neighbors before deciding the locations
of school bus stops.
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MinutedEdina City CouncillApril7.1997
Member Hovland asked if the schedule for the proposed improvements would coincide with
construction and opening of the DPS building. Engineer Hoffman answered that yes all the proposed
improvements should be completed by the fall of '98.
Member Hovland asked when the proposed school budmass transit stop east of Lochmere would be
installed, and suggested staff investigate installing the stop as soon as possible. Engineer Hoffman
replied the City could install the stop immediately, but could not use state aid funds. However, staff
believes the neighbors may decide a different solution is better for their neighborhood.
' I
Member Faust asked if the area proposed for a bus stop could be used for a right turn lane. Engineer
Hoffman replied it is possible. However, staff did not envision installing right turn lanes at every
intersection because of right of way issues. Member Faust urged staff investigate the installation
wherever possible.
Mayor Smith asked about the Bloomington project for signal and geometric changes at West Bush
Lake Road and W. 78th Street. He noted this project was slated for 1998 subject to Bloomington
obtaining funding and questioned if a firm construction date has been determined. Engineer Hoffman
answered that Bloomington intends to make the improvement, however, their Capital Improvement
Plan had not been finalized. Staff will pursue this issue with Bloomington to obtain an end date for the
project's construction.
Member Hovland questioned timing of the signal installation at Gleason and W. 78th St. Engineer
Hoffman stated the Dewey Hill residents are requesting help in obtaining east bound gaps in traffic to
aid turning onto W. 78th St. He repeated the need to achieve a balance and not install a signal before
the frontage road is in place to stop cut through traffic. Timing of the installations will be critical due to
the upcoming state project on TH 169. Installing the Gleason signal too soon will bring traffic off of
TH169 and 62 Crosstown into Edina as motorists try to avoid construction zones.
Member Kelly asked if staff will be eliciting final construction dates in the Joint Powers Agreement with
Bloomington for projects over which Bloomington has jurisdiction. Engineer Hoffman replied
affirmatively.
Presentation by Police Chief
Police Chief Bernhjelm informed the Council checked with the School District and was informed
presently students are picked up and dropped off only on the north side of W. 78th St. Therefore, the
School District believes there is no reason to operate the school bus stop arms since no student must
cross opposing traffic. He added the State Patrol does not recommend attempting to stop traffic on a
four-lane road with bus stop arms. Chief Bernhjelm noted the addition of a bus stop would improve
safety for the buses and their passengers.
Chief Bernhjelm stated the speed limits on W. 78th St. are set by MnDOT following studies of the area
and engineering analysis. The speed limits on W. 78th St. are clearly posted. Currently the speed limit
changes from 40 mph (west of Glasgow Drive) to 35 mph (east of Glasgow Drive). He recommended
after the proposed roadway and safety improvements are complete the City request a speed limit
review by MnDOT.
Chief Bernhjelm suggested additional speed limit attention be given by:
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Deployment of the State Patrol radar trailer for advising drivers in the area about their speed.
(The State's trailer is available on a limited basis.)
Creation of a joint powers agreement with Bloomington for joint enforcement authority on this
roadway. Edina has a similar arrangement on Minnesota Drive that works well.
Use of additional patrols using laser and radar speed measurement.
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MinuteslEdina City CouncillApril7.1997
Chief Bernhjelm reported the base line data on traffic volume and origin and destination are being
gathered on Gleason Rd. and Delaney Blvd., north of W. 78'h St. Staff will gather volume data on Long
Brake Trail. These data will be used for comparison with post-construction data to determine the most
efficient ways to minimize traffic impact in the residential neighborhoods.
City Manaaer Presentation
Manager Rosland noted staff has met with both the developer and the City of Bloomington. Staff is in
the process of finalizing two formal agreements, a Letter of Understanding with Liberty Property and a
joint powers agreement with the City of Bloomington. Manager Rosland believes Bloomington will do
everything within their ability to accomplish their portion of the proposed improvements by the time the
DPS building is complete in the fall of 1998.
I
Manager Rosland pointed out that staff is gathering traffic statistics to make available data needed to
make decisions on the entire City. He cautioned installation of the Gleason signal too early could make
further problems on Gleason Road and urged waiting until the City is able to install the "Braemar"
frontage road or such time as warrants are met at Gleason.
Manager Rosland informed Council Bloomington has agreed to reviewed their density in the corridor
south of W. 78" St. during their Comprehensive Plan Review.
Proponent Comment
John Gattuso stated his desire to clarify a point with regard to the second phase. He stated, "When I
was before you at our last meeting, I made the statement that we will come before Edina for approval
on that project. If you read the Memorandum of Understanding that I signed it says very clearly that we
will come before Edina for approval of architecture and land development which was my agreement
and furthermore this represents a greater limitation on development not a lesser."
Public Comment
Bruce Malkerson, Suite 1500 AT & T Tower, 901 Marquette Avenue, Minneapolis, MN, stated he
represented Dewey Hill Ill Townhome Association, Inc. and the Association is concerned over the
impact the DPS development will have on their homes as stated in his April 1, 1997 letter to the
Council. Mr. Malkerson stated he had major concern over the ceremonial entrance to the DPS property
and its negative impact on traffic and subsequent impact on the Dewey Hill residents. Mr. Malkerson
requested language be added to the curb cut permit. He suggested the curb cut be linked to the
building size of phase one of the DPS development and suggested requiring an amendment to the
curb cut for any additional development. Mr. Malkerson expressed concern regarding the speed limit
on W. 78'h St. and the safety issue speeding causes. Mr. Malkerson stated the Dewey Hill entrance at
Lochmere and W. 78" St. will be gravely impacted by the development. He asked for immediate
installation of the signal at Gleason Road. Mr. Malkerson also requested additional police enforcement
on W. 78'h St.
Robert Bennet, 7600 Delaney Boulevard, echoed the concerns as stated by Mr. Malkerson. He added
that John Gattuso of Liberty Property is backing out of an agreement made before the City Council
March 17, 1997. Mr. Bennet stated he did not believe the proposed Joint Powers Agreement deals with
additional development/redevelopment that will occur after DPS is built. He thinks the traffic study was
not comprehensive enough in dealing with the traffic generated south of W. 78th St. Mr. Bennet
suggested Liberty be requested to deposit monies for future traffic management. He understands that
decisions regarding traffic signals are questions of balance. Mr. Bennet reminded Council of his
previous suggestion to turn Delaney into a CUI de sac. Mr. Bennet asked what plans have been made
to handle construction traffic occuring before the road improvements are built. Mr. Bennet concluded
urging the Council to lessen the size of the proposed development now if possible.
Harold Grossman, 7782 Lochmere Terrace, noted he is the president of the Dewy Hill Home Owners
Association. Mr. Grossman stated getting onto W. 78" St. from Lochmere Terrace to go east is
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MinuteslEdina City CouncillApril 7.1997
currently like committing hari kari and the situation will become much worse with the additional traffic
generated by this huge development. In addition to the speed of the traffic, W. 78th St. is curved
making it even more dangerous. Mr. Grossman stated a light is needed before someone is badly
injured. He added the ceremonial drive is a bad idea and will become a traffic nightmare for the
residents to the north of the development. Mr. Grossman urged the ceremonial drive be moved or not
constructed at all. I
Mary Jo Kingston, 7774 Lochmere Terrace noted her appreciation for the opportunity to speak. She
expressed concern over the traffic danger the development will bring to the area, especially the
ceremonial drive opposite Lochmere Terrace. Ms. Kingston stated that Steve Ellingson, DPS’s
engineer assured her earlier in the planning process that a signal would be installed at Lochmere and
W. 78th St. Now, Ms. Kingston finds there is no signal planned. She urged Council and staff to use all
their creativity to find a workable solution for the traffic in the area and to protect the residents,
especially Lochmere Terrace.
Elaine Sampson, 7751 Shaughnessy Road explained she is a Dewey Hill resident one street west of
Lochmere. Ms. Sampson pointed out the solutions discussed seem to only be short term in nature and
urged consideration be given to the need for widening the bridges to support 1-494 eastbound. She
added she supports the installation of a light at Gleason and noted the City’s notification process
should have been larger allowing Gleason resident to give input at this time.
Harold Grossman asked the developer how they intend to control the parking of 1,200 to 1,500
employees. He explained he only has I20 employees and finds he cannot control where they park. He
does not believe the ceremonial drive will be controlled.
Council Discussion/Action
Member Kelly told Mr. Gattuso he appreciated the effort made to work with the community on the DPS
project. However, he stated his extreme disappointment in the deed restrictions stated in the proposed
“Letter of Understanding”. Member Kelly continued that Mr. Gattuso previously gave a commitment
when he appeared at the March 17, 1997, meeting. He noted that Council meetings are recorded and
can be transcribed if necessary. Member Kelly noted his displeasure at being let down in front of
Edina’s citizens. Member Kelly told Mr. Gattuso that if Mr. Gattuso thought he was not able to follow
through on his previous commitment he should have informed Council at the previous meeting. Council
would have had an opportunity to deliberate the issue. Member Kelly noted Mr. Malkerson brought up
a good point in proposing the curb cut be limited to the first building.
Member Faust stated she sympathizes with persons attempting to enter W. 78th St. from the
neighborhood. She urged the City to get the frontage road and signal installed as soon as possible to
help entering W. 78th St.
Member Faust asked if the City could legally ask for a deposit against future traffic problems. Attorney
Gilligan replied he will research this issue, but typically the City would specially assess benefited
properties.
Member Faust asked about the recommendation of whether or not a cul de sac should be installed on
Delaney. Manager Rosland noted staff believes this is not the time to CUI de sac Delaney since traffic
would be pushed up other residential streets. Staff is looking for a more balanced solution. He
suggested the Cahill signal could help the traffic.
Member Faust requested the frontage road installation get a high priority and that the City monitor
speed on W. 78th St. and study the issue of potentially making Delaney into a CUI de sac.
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MinuteslEdina City CouncillApril7.1997
Member Hovland agreed with staff that installing a signal at Gleason is premature at this time. The
frontage road should be made a priority and the Gleason Road neighbors should be involved in
discussion of traffic measures in their neighborhood.
Member Hovland suggested the City go to MnDOT immediately requesting a speed limit reduction. He
suggested the Lochmere/Glasgow school bus stop be done immediately to increase safety of school
children.
Member Hovland acknowledged the difficulty exiting Lochmere onto W. 78‘h St. and requested the data
available on this intersection be reviewed. He suggested installation of the underground foundations for
a signal be completed at Lochmere and the ceremonial drive when the roadway improvements are
constructed.
Member Hovland stated his frustration that Edina cannot have more authority over the land use
decisions in this situation. He agreed with Member Kelly’s concern with the developers representation
to Council at the previous meeting as compared with the present meeting. He noted the need for
negotiation and compromise, but added that the amendment to the curb cut should be investigated.
Mayor Smith noted the concern of the Council when a developer offers different messages at each
meeting. He continued stating many excellent suggestions were offered tonight and an agreement will
be reached when Edina’s parameters are met. He outlined the following points:
I. The City Attorney is directed to research whether or not the requested curb cut can be based
upon land use. This should be done in addition to deed restrictions.
2. Get a better definition of the potential uses for the “ceremonial drive”. The City does not want this
to become a truck entrance
3. Strengthen of the proposed signage throughout the site and parking structure.
4. Obtain a deadline date for the completion of the Bloomington intersection improvement.
5. Move forward immediately on a request for speed limit reduction.
6. Develop a future traffic assessment agreement, similar to the parking assessments in the 50a &
France area.
7. Develop a plan and subsequent agreement for handling traffic during construction.
8. Lobby MnDOT for Bush Lake Road bridge widening.
9. Elicit a distinct agreement from Bloomington regarding future Bloomington development in the
corridor south of W. 78’ St.
IO. Install everything except the actual lights for signals at Gleason Road. Look into funding and if
deemed necessary install this light before warrants are met.
11. Involve the neighbors in working out the best neighborhood solution to the school bus stop
locations and report findings.
Manager Rosland stated staff will formulate the Letter of Understanding and Joint Powers Agreement
including the items noted by Council and present them for consideration at the April 21 , 1997 meeting.
Member Hovland asked if any similar agreement exists where similar planning constraints are in place.
Attorney Gilligan answered a like agreement exists on Minnesota Drive with the City of Minnetonka.
Member Kelly made a motion that the legal documents with the developer and the legal
documents with the City of Bloomington be structured to include the aforementioned points
and brought back for consideration at the April 21, 1997 Council meeting. Member Faust
seconded the motion.
Ayes: Faust, Hovland, Kelly, Smith
Motion carried.
Page IO
MinuteslEdina City CouncillApril7.1997
*PUBLIC HEARING DATE OF APRIL 21. 1997. SET FOR PLANNING MATTERS Motion made by
Member Hovland and seconded by Member Faust setting April 21, 1997, as hearing date for
planning matters:
I. Final Rezoning, R-I Single Dwelling Units District to PRD-I, Planned Residence districts,
Philip Stephen Company, generally located south of Vernon Avenue and west of Olinger
Road;
2. Final Plat Approval, Olde Vernon, Philip Stephen Company, generally located south of
Vernon Avenue and west of Olinger Road;
3. Final Rezoning, R-I, Single Dwelling Unit District to PRD-4, Planned Residence district,
5120 and 5124 France Avenue, Hans Kuhlman; and
4. Amendments to Edina City Code, Zoning Section 815, the “Antenna Ordinance”.
I
Motion carried on rollcall vote - four ayes.
*LOT DIVISION GRANTED - 5451 AND 5501 GROVE STREET Motion made by Member
Hovland and seconded by Member Faust approving a lot division at 5451 and 5501 Grove
Street.
RESOLUTION
WHEREAS, the following described tracts of land consisting of a vacant Outlot would
combine two developed parcels with frontage on Grove Street.
Lot I, Block 1, WARDEN ACRES DAHLE REPLAT and
Lot 2, Block 1, WARDEN ACRES DAHLE REPLAT and
OUTLOT A , WARDEN ACRES DAHLE REPLAT
WHEREAS, the owners of the described tracts of land constitute two separate tracts of
land constitute two separate parcels:
WESTERLY PARCEL: (19,959 square feet)
Lot I, Block 1, WARDEN ACRES DAHLE REPLAT and that part of Outlot A, WARDEN
ACRES DAHLE REPLAT which lies westerly of the easterly 75.00 feet thereof;
EASTERLY PARCEL: (20,469 square feet)
Lot 2, Block I, WARDEN ACRES DAHLE REPLAT and the easterly 75.00 feet of Outlot
A, WARDEN ACRES DAHLE REPLAT.
WHEREAS, it has been determined that compliance with the Subdivision and Zoning
Regulations of the City of Edina and said Parcels as separate tracts of land do not interfere
with the purposes of the Subdivision and Zoning Regulations as contained in the City of
Edina Code Sections 810 and 850.
NOW, THEREFORE, it is hereby resolved by the City Council of the City of Edina that the
conveyance and ownership of said Parcels as separate tracts of land is hereby approved
and the requirements and provisions of Code Section 810 and Code Section 850 are hereby
waived to allow said division and conveyance thereof as separate tracts of land but are not
waived for any other purpose or as to any other provision thereof, and subject, however, to
the provision that no further subdivision be made of said Parcels unless made in
compliance with the pertinent ordinances of the City of Edina or with the prior approval of
this Council as may be provided for by those ordinances.
I AND
Motion carried on rollcall vote - four ayes.
fl
AVENUElPlanner Larsen explained the deadline for initial action on the Final Development Plan
request of 5229 Eden Avenue expires May 6, 1997. The Planning Commission will not hear the
request until their April 30, 1997 meeting. Therefore, the earliest date the City Council could hear
the request will be May 19, 1997 or after the initial action expiration date. Planner Larsen stated
staff is recommending Council grant a sixty day extension for action on the request. I
Page I1
MinuteslEdina City CouncillApril7.1997
Member Hovland made a motion granting an extension for action until July 6, 1997 for the
Final Development Plan request at 5229 Eden Avenue, Four S Properties and Gordon Lewis.
Member Kelly seconded the motion.
Ayes: Faust, Hovland, Kelly, Smith
Motion carried. I
BID AWARDED FOR 1997 41H OF JULY FIREWORKS DISPLAY CELEBRATION Member
Hovland said he removed the 1997 4'h of July fireworks display from the consent agenda for further
explanation of the purchase. Director Keprios explained the Council has set the limit of the amount
to be spent on the annual fireworks display.
Member Hovland made a motion for award of bid for the 1997 4'h of July fire works display
celebration to sole bidder RES Specialty Pyrotechnics at $7,600.00. Member Faust seconded
the motion.
Ayes: Faust, Hovland, Kelly, Smith
Motion carried.
*AWARD OF BID FOR THREE SEASON GAZEBO FOR CENTENNIAL LAKES PARK Motion of
Member Hovland and seconded by Member Faust for award of bid for three season gazebo
for Centennial Lakes Park to recommended low bidder, Cornerstone Construction at
$12,850.00.
Motion carried on rollcall vote - four ayes.
BID AWARDED FOR LAKE CORNELIA PARK PLAYGROUND EQUIPMENT AND
LANDSCAPING Mayor Smith removed the Lake Cornelia Park playground equipment and
landscaping bid award from the consent agenda questioning the Edina Federated Women's Club
donation of $16,000.00. Director Keprios explained the funds have been received from the Club
and are being held in an account earmarked for the project.
Member Hovland made a motion for award of bid for playground equipment and
landscaping for the Cornelia Lake Playground to recommended low bidder, Arrigoni
Brothers Company at $225,057.50. Member Faust seconded the motion.
Ayes: Faust, Hovland, Kelly, Smith
Motion carried.
*BIDS REJECTED FOR 50TH AND FRANCE LANDSCAPE IMPROVEMENTS Motion made by
Member Hovland and seconded by Member Faust to reject the bids received for 50a and
France landscape improvements. The project will be re-bid as two separate projects.
Motion carried on rollcall vote - four ayes.
*AWARD OF BID FOR ONE FULL-SIZE 4 DOOR SEDAN (FIRE DEPARTMENT) Motion made
by Member Hovland and seconded by Member Faust for award of bid for one full-size 1997
Dodge intrepid 4-door sedan to Brookdale Dodge, Inc., through State of Minnesota
Cooperative Purchasing Agreement Contract 4141 05 Permit #501523 at $1 6,21 I .OO.
Motion carried on rollcall vote - four ayes.
*PARK BRIDGES AND APPROACHES (#96-5PK) BID AWARD CONTINUED TO APRIL 21,
1997 Motion made by Member Hovland and seconded by Member Faust to continue the
award of bid for park bridges and approaches (#96-5PK) to the meeting of April 21,1997.
Motion carried on rollcall vote - four ayes.
*AWARD OF BID FOR PARK FENCING BIRCHCREST PARK. CHOWEN PARK AND
COUNTRYSIDE PARK Motion made by Member Hovland and seconded by Member Faust for
Page I2
MinuteslEdina City CouncillApril7.1997
award of bid for park fencing for Birchcrest Park, Chowen Park and Countryside Park to
recommended low bidder, Mid-Metro Construction at $34,553.80.
Motion carried on rollcall vote - four ayes.
*AWARD OF BID FOR HEATED ASPHALT PATCH BOX Motion made by Member Hovland
and seconded by Member Faust for award of bid for heated asphalt patch box to
recommended second bidder, Stepp Manufacturing at $45,950.00.
I
Motion carried on rollcall vote - four ayes.
*AWARD OF BID FOR SAND. ROCK. BITUMINOUS MATERIALS. CONCRETE AND ENGINE
OIL Motion made by Member Hovland and seconded by Member Faust for award of bid for
sand, rock, bituminous materials, concrete, propane and engine oil to recommended low
bidders as follows: Concrete Sand (delivered) to Fisher Aggregate, Inc. at $3.85 per ton;
Course Sand (delivered) to Fisher Aggregate, Inc., at $4.60 per ton; Buck Shot (delivered) to
Prior Lake Aggregate at $10.75 per ton; C1.2 Limestone (delivered) to CAMAS, Inc., at $6.44
per ton; C1.5 Limestone to CAMAS, Inc., at $6.07 per ton; Seal Coat Chips (delivered) to
Midwest Asphalt at $15.20 per ton; Asphalt 2331 (picked up at plant) to C.S. McCrossan"
(vendor I) at $16.40 per ton, or to Bituminous Roadways (vendor 2) at $17.75 per ton;
Asphalt 2331 (delivered) to Bituminous Roadways at $20.75 per ton; 2331 Fine Asphalt Wear
(picked up at plant) to Bituminous Roadways* (vendor I) at $18.50 per ton or C. S.
McCrossan (vendor 2) at $18.39 per ton; 2331 Fine Asphalt Wear (delivered) to Bituminous
Roadways at $21.50 per ton; 2331 41B142B Asphalt Wear (picked up) to C.S. McCrossan*
(vendor I) at $17.20 or Bituminous Roadways (vendor 2) at $18.00; 2331 41B/42B Asphalt
Wear (delivered) to Bituminous Roadways at $21.00; 2331 Find 3/8 Patch Mix Asphalt Wear
(picked up) to C.S. McCrossan* (vendor I) at $17.00 or Bituminous Roadways (vendor 2) at
$18.50 per ton; 2331 Find 3/8 Patch Mix Asphalt Wear (delivered) to Bituminous Roadways
at $21.50 per ton; Concrete 1-3 yards (delivered) to CAMAS, Inc. at $61.48 per cubic yard,
plus small load charge; Concrete 3+ Yards (delivered) to CAMAS, Inc., at $61.48 per cubic
yard; Emulsified AsDhalt CRS2 to Ashland at $0.5334 per gallon; Emulsified Tack Oil to
Richards Asphalt at $0.6400 per gallon; Enuine Oil 15/40 to Hallman Oil at $2.89 per gallon;
Enqine Oil 40W to Hallman Oil at $3.49 per gallon; Enaine Oil 5W/30 to Hallman Oil at $2.89
per gallon; Enaine Oil Hvd. Tellus T46 to Hallman Oil at $3.39 per gallon; Engine Oil ATF-
Donox TG to Hallman Oil at $2.99 per gallon; Enaine Oil 15W40 to Hallman Oil at $15.00 per
gallon; Rubberized Crack Filler to Construction Materials at $0.295 per gallon; Red Ball
&areaate to Byran Rock at $10.72 per ton; Cut Back Asphalt RC (delivered) to Koch
Refinery** at $0.9404 per gallon; Propane LP to Suburban Propane** at $33.98 per cylinder;
Winter Mix Asphalt to Bituminous Roadways** at $41.50 per ton (*these bids are awarded on
basis of total cost per ton including trucking and labor) (*"bids rejected).
I
Motion carried on rollcall vote - four ayes.
*AWARD OF BID FOR RANGE GOLF BALLS FOR BRAEMAR GOLF COURSE Motion made
by Member Hovland and seconded by Member Faust for award of bid for range golf balls for
Braemar Golf Course to recommended low bidder, Spalding Sports Worldwide at
$23,280.00.
Motion carried on rollcall vote - four ayes.
BID AWARDED FOR WATER TREATMENT CHEMICALS FOR CITY WELLS AND SWIMMING
POOLS Mayor Smith asked removal of the water treatment chemicals for City wells and swimming
pools from the consent agenda and inquired if there is any difference in chemicals between
suppliers, e.g. smell of the water. Engineer Hoffman commented he believes there is no difference
in chemicals between suppliers. I
Member Kelly made a motion for award of bid for water treatment chemicals for City wells
and swimming pools for hydrofluosilic acid and liquid chlorine to recommended low bidder,
Page 13
MinuteslEdina City CouncillApril 7.1997
Hawkins Chemical at $49.47 per CWT and for caustic soda to recommended low bidder,
Hawkins Chemical at $20.00 per CWT. Member Hovland seconded the motion.
I Ayes: Faust, Hovland, Kelly, Smith
Motion carried.
*3.2 BEER LICENSE RENEWALS APPROVED Motion made by Member Hovland and
seconded by Member Faust approving 3.2 beer license renewals for Szechuan Star
Restaurant and New Hong Kong, Inc.
Motion carried on rollcall vote - four ayes.
RESOLUTION ADOPTED ORDERING IMPROVEMENTS. ACCEPTING FEASIBILITY REPORTS,
AND SETTING HEARING DATE OF MAY 5.1997. FOR 1) NORMANDALE CHURCH STORM
SEWER AND 2) DEWEY HILL SIDEWALK Engineer Hoffman noted a petition was received for a
sidewalk on the south side of Dewey Hill Road from Cahill Road to Delaney Boulevard. Estimated
cost of the improvement is $32,343.75 and funding would be from state aid funds. The proposed
improvement has been reviewed and considered feasible. Staff suggested a hearing date be set for
May 5,1997.
A petition has also been received from Normandale Lutheran Church requesting a storm sewer
extension on Wilryan from the church parking lot to W. 62nd Street. The estimated cost of the
improvement would be $36,200.00, funded through special assessment and the stormwater utility.
The proposed improvement has been reviewed and considered feasible. Staff suggested a hearing
date be set for May 5, 1997.
Member Faust introduced the following resolution and moved its adoption: I RESOLUTION RECElVlNG REPORTS AND CALLING HEARING ON IMPROVEMENTS
WHEREAS, feasibility reports have been prepared by the City Engineer with
reference to the improvements known as the Normandale Church Storm Sewer
Improvement No. STS-246 and Dewey Hill Sidewalk Improvement No. S-54 and received by
the City Council on April 7,1997, and
WHEREAS, the improvements are found to be feasible and necessary.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF EDINA,
The Council will consider the aforementioned improvements in accordance with the
reports and the assessment of abutting property for all or a portion of the cost of the
improvement pursuant to Minnesota Statues, Chapter 429 at an estimated cost of the
improvement:
a)
6)
A public hearing shall be held on such proposed improvements on the 5'h day of May,
1997, in the council chamber of the city hall at 7:OO p.m. and the clerk shall give
mailed and published notice of such hearing and improvement as required by law.
MINNESOTA:
1.
Normandale Storm Sewer estimated at $36,200, and
Dewey Hill Sidewalk estimated at $32,343.73
2.
Member Hovland seconded the motion.
Ayes: Faust, Hovland, Kelly, Smith
Motion carried.
RESOLUTION APPROVED FOR WEST 78'" STREET AND CAHILL SIGNALIZATION AND
STREET IMPROVEMENT PLANS Engineer Hoffman explained as part of the overall improvement
of the City transportation infrastructure, staff recommends signalization of West 78th St. and Cahill
Road. After review of traffic accidents along West 78'h in the Cahill Road vicinity, staff recommends
adding a center lane for left turns onto Cahill, Cecilia, and south driveways in between Cahill and
Cecilia. Traffic signal warrants are met for signalizing the intersection, therefore qualifying the
project for state-aid funding.
I
Page 14
'\
13:
. Minutes/Edina Citv CounciVApril7.1997
The estimated project cost is $385,000 including engineering and interconnection to the ICTM
signal systems to the east. The Integrated Corridor Traffic Management System (ICTM) is a series
of interconnected traffic signal systems running from 34'h Avenue on the east in Bloomington to
East Bush Lake Road in Edina. These systems are all interconnected and operated by a sub-
regional computer controlled system during peak traffic hours.
Engineer Hoffman added the proposed project is listed within the Corridor Report completed by
SRF. Staff recommends approval of the project, using state aid funding.
I I
Member Hovland introduced the following resolution and moved its approval
RESOLUTION ORDERING STREET IMPROVEMENT NO. BA-314
RECONSTRUCTION OF WEST 78'h STREET
FROM RAILROAD BRIDGE TO CECILIA CIRCLE
AND TRAFFIC SIGNAL AT CAHILL ROAD
WHEREAS, the City Engineer has prepared plans and specifications for the
improvement reconstructing West 78th Street between the railroad bridge and Cecilia Circle
and Sherwood Avenue, and signalizing the intersection of West 78'h Street and Cahill Road
and has presented such plans and specifications to the City Council for approval;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Edina that it has
duly considered the views of all persons interested, and being fully advised of the pertinent
facts does hereby determine to proceed with the construction of said improvement,
including all proceedings which may be necessary in eminent domain for the acquisition of
necessary easements and rights for construction and maintenance of such improvement.
Said improvement is hereby designated and shall be referred to in all subsequent
proceedings as:
IMPROVEMENT PROJECT NO. BA-314
BE IT FURTHER RESOLVED that Improvement BA-314 is hereby ordered as proposed.
BE IT FURTHER RESOLVED that plans and specifications, a copy of which is on file in the
office of the City Clerk are hereby approved.
BE IT FURTHER RESOLVED that the City Clerk shall prepare and cause to be inserted in
the official paper an advertisement for bids upon the making of such improvement under such
approved plans and specifications. Member Kelly seconded the motion.
Ayes: Faust, Hovland, Kelly, Smith
Resolution adopted. *
MILL AND OVERLAY OF EXISTING STATE AID STREETS Engineer Hoffman explained staff
recommends milling and overlaying of the following streets: West 70th Street from Amundson to
Metro at $1 05,300.00; West 70th Street - France to Xerxes $1 67,200.00; Cahill Road - West 70th to
West 78th Street $125,800.00; and Gleason Road - Valley View to Dewey Hill $120,600.00. All
streets are deemed not needing reconstruction but a major renovation such as "milling and
overlaying". The procedure is the removal of the top two or three inches of asphalt followed by
paving with new asphalt. The improvements are listed under Improvement No. A-1 81.
Engineer Hoffman noted the last project is a Richfield mill and overlay project on West 76th Street.
The project is identified as Improvement A-182. The City would pay the portion of the project
entering Edina for approximately 280 feet. The project cost would be $19,980.00 and would be
eligible for state-aid funding. Staff recommended that all five projects be funded through state-aid
gas tax funds. Estimated cost is $538,880.00.
Member Kelly introduced the following resolution and moved its adoption:
RESOLUTION ORDERING STREET IMPROVEMENTS
PORTIONS OF W. 70TH ST, CAHILL ROAD,
Page 15
NOS. A-I81 AND A-I82 REMILL AND OVERLAY
MinuteslEdina Citv CouncillArwil7.1997
GLEASON ROAD, AND W. 76TH ST.
WHEREAS, the City Engineer has prepared plans and specifications for milling and
overlaying of the following streets: West 70fi Street - Amundson to Metro; West 70fi Street -
France to Xerxes; Cahill Road - West 70th to West 78fi Street; Gleason Road - Valley View to
Dewey Hill; and West 76* (280’ located in Edina) and has presented such plans and
specifications to the City Council for approval;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Edina that it has
duly considered the views of all persons interested, and being fully advised of the pertinent
facts does hereby determine to proceed with the construction of said improvement,
including all proceedings which may be necessary in eminent domain for the acquisition of
necessary easements and rights for construction and maintenance of such improvement.
Said improvement is hereby designated and shall be referred to in all subsequent
proceedings as:
IMPROVEMENT PROJECT NOS. A481 and A-482
I
BE IT FURTHER RESOLVED that Improvements A-I81 and A482 are hereby ordered as
proposed.
BE IT FURTHER RESOLVED that plans and specifications, a copy of which is on file in the
office of the City Clerk are hereby approved.
BE IT FURTHER RESOLVED that the City Clerk shall prepare and cause to be inserted in
the official paper an advertisement for bids upon the making of such improvement under such
approved plans and specifications.
Member Faust seconded the motion
Ayes: Faust, Hovland, Kelly, Smith
Resolution approved.
I APPOINTMENT MADE TO RECYCLING AND SOLID WASTE COMMISSION: VACANCIES
REMAIN ON RECYCLING AND SOLID WASTE COMMISSION AND ART CENTER COMMllTEE
Mayor Smith recommended appointment of Anne Cronin to the Recycling and Solid Waste
Commission for a two year term to February I, 1999. He asked that names of interested persons
be submitted to him for consideration in filling the vacancies on the Recycling and Solid Waste
Commission and the Art Center Committee.
Member Faust made a motion appointing Anne Cronin to fill the vacancy on the Recycling
and Solid Waste Commission. Member Kelly seconded the motion.
Ayes: Faust, Hovland, Kelly, Smith
Motion carried.
UPDATE OF CITY PURCHASING POLICIES APPROVED Finance Director Wallin reminded
Council at one of their Saturday Planning Sessions, current purchasing policies were reviewed and
changes introduced to the City’s purchasing policies. Recommended changes were as follows:
I. Change the dollar threshold at which written purchase orders are required from $500 to
2. Change the dollar threshold at which Council approval is required from $5,000 to
$1 5,000
3. Change the dollar threshold at which sealed bid procedures are required from $15,000
to $20,000
$1,000
Rationale for the changes are:
All purchases are originally approved under the City’s budget process. Purchasing procedures
are secondary to the Council’s approval of the budgetary requests of each department.
Recommended thresholds are significantly stricter than the statutory requirements. City
purchasing requirements are listed in M.S.ij 471.345 under the Uniform Municipal Contracting
Law. The table below reflects the statutory requirements, current pricing policies and the
proposed changes:
I
Page I6
*.'
Current dollar thresholds do not reflect the change in prices of products over time. The current
dollar thresholds were last changed in 1983.
The Finance Department processed over 7,000 purchase orders in 1996.
Under the proposed changes, Edina is still stricter than its neighboring cities. (See table below)
I
EDINA
PROPOSED
BLOOMINGTON EDEN ST. LOUIS
PRAIRIE PARK
Written PO Req with
Alternate Quotes
Council Approval
Required
Sealed Bid Process Req
Member Kelly made a motion approving the recommended changes to the City of Edina
Purchasing Policies as presented. Mayor Smith seconded the motion.
Ayes: Faust, Hovland, Kelly, Smith
Motion carried.
$1,000 $3,000 $2,000 $1 0,000
$1 5,000 $25 , 000 $25,000 $25,000
$20,000 $25,000 $25,000 $25,000
D.A.R.E. GRADUATION DATESlTlMES ANNOUNCED Chief Bernhjelm informed Council the
Police Department will graduate more than 600, !jth grade students from eight Edina elementary
schools in April and May through the Drug Abuse Resistance Education (DARE) program. The
DARE program focus is on building skills in our youth that are vital to their remaining drug and
alcohol free. During the 17 week program, uniformed, trained Edina police officers help students in
classes dealing with consequences, risks, assertiveness, media influences, self-esteem, and drug
use and misuse.
Chief Bernhjelm encouraged Council Members to attend these ceremonies adding positive
influence and support to the DARE program.
*PETITION RECEIVED FOR STORM SEWER REQUEST REFERRED TO ENGINEERING FOR
FEASIBILITY Motion made by Member Hovland and seconded to Member Faust to refer the
petition received from Karl Schmidt, 8 Bridge Lane for storm sewer request to the
Engineering Department for processing as to feasibility.
Motion carried on rollcall vote - four ayes.
RESOLUTION APPROVED FOR CONSENT TO TRANSFER AND ASSIGNMENT OF HOUSING
1 Assistant Manager
Hughes explained the Edina Park Plaza is a 202 unit senior citizen residence that is part of
Edinborough. The property owner, Edina Park Plaza Associates Limited Partnership, is selling the
development to the Brookdale Living Communities of Minnesota. The anticipated closing date is
April 9,1997.
The development was constructed via Housing Revenue Bonds issued by the City in 1986, and
was refunded and reissued in 1989. In connection with the sale of the development, the parties are
requesting that the City consent to the assignment of the various obligations with respect to the
Page 17
MinuteslEdina City CouncillApril7.1997
Housing Revenue Bonds to the purchaser of the property. Staff recommends the City consent to
the assignment.
Correspondence was received in support of the consent to the Assignment from Daniel V. Epstein,
Vice President of Edina Park Plaza Associates Limited Partnership and from James T. Buchholz,
Attorney at Law, representing Edina Park Plaza Limited Partnership, an Illinois partnership. I
RESOLUTION
BE IT RESOLVED, that the Edina City Council, at their April 7, 1997, approved the
Consent to Transfer and Assignment of Housing Development Refunding Revenue Bonds
for the Edina Park Plaza, as on file in the office of the City Clerk. and
BE IT FURTHER RESOLVED, that the City Council of the City of Edina authorizes
execution of said Consent.
Rollcall:
Ayes: Faust, Hovland, Kelly, Smith
Resolution approved.
RESOLUTION APPROVED AUTHORIZING SALE OF GENERAL OBLIGATION TAX
INCREMENT FINANCING BONDS (SERIES 1997B) Assistant Manager Hughes noted seven
sealed bids for the General Obligation Tax Increment Financing Bonds (Series 1997B) were
opened April 7, 1997, and were included in the Official Statement circulated by the City’s financial
advisor on behalf of the City.
Brenda Krueger of Springsted, Inc., explained Cronin & Company, Incorporated, Smith Barney was
the high bidder at $5,056,474.20 and recommended Cronin be awarded the bid. The bids were as
follows:
INTEREST I NET TRUE
INTEREST INTEREST
BIDDER RATE PRICE COST RATE
CRONIN & CO.,INC 4.50% 1999 $5,056,474.20 $2,949,436.63 5.3368%
SMITH BARNEY 4.65% 2000
4.75% 2001
4.80% 2002
4.85% 2003
4.95% 2004
5.05% 2005
5.10% 2006
5.15% 2007
5.20% 2008
5.30% 2009-201 0
5.35% 2011
5.40% 2012
5.50% 2013
PIPER JAFFRAY 4.50% I999 $5,057,337.47 $2,956,570.45 5.3483%
4.65% 2000
4.75% 2001
4.80% 2002
4.85% 2003 *
4.95% 2004
5.05% 2005
5.15% 2007
5.20% 2008
5.10% 2006
Page 18
MinuteslEdina City Council/April 7.1997
5.25% 2009
5.35% 2010
5.40% 2011
5.45% 2012
5.50% 2013
DAlN BOSWORTH 5.00% 1999-2004 $5,037,814.35 $2,959,934.61 5.3726%
5.05% 2005
5.1 0% 2006-2007
5.20% 2008
5.25% 2009
5.30% 2010
5.35% 2011
5.375%2012
5.40% 2013
FBS Investment 4.40% I999
Services, Inc. 4.50% 2000
Norwest Investment 4.60% 2001
Services, inc. 4.70% 2002
Dougherty Dawkins 4.80% 2003
Inc. 4.90% 2004
Juran & Moody, A 5.00% 2005
Division of Miller, 5.10% 2006
Johnson & Kuehn 5.20% 2007
Inc. 5.25% 2008
John C. Kinnard & 5.30% 2009
Co. Inc. 5.40% 2010
5.45% 2011
5.50% 2012-2013
I
$5,044,960.00 $2,982,193.33 5.400%
GRIFFIN, KUBIK, 4.80% 1999 $5,034,010.00 $2,992,482.08 5.4308%
STEPHENS, & 4.90% 2000-2001
THOMPSON INC. 5.00% 2002-2004
5.1 0% 2005-2007
5.20% 2008
5.25% 2009
5.40% 201 0-201 1
5.50% 2012-2013
WILLIAM R. HOUGH 5.20% 1999-2003 $5,034,010.00 $2,996,744.58 5.4491 %
& co. 5.30% 2004-201 1
NlKE SECURITIES, 5.375% 2012-2013
JC BRADFORD & CO.
BETZOLD,BERG &
NUSSBAUM & CO.
DEAN WITTER 4.85% 1999-2003 $5,034,010.00 $3,004,123.75 5.451 I %
REYNOLDS INC. 4.95% 2004
ABN AMRO 5.05% 2005
CHICAGO CORP. 5.15% 2006
SECURITIES, INC., 5.30% 2009
OPPENHEIMER & 5.40% 2010
PRUDENTIAL 5.25% 2007-2008
Page 19
MinuteslEdina City CouncillApril7.1997
CO., INC. 5.45% 2011
PAINEWEBBER INC.5.50% 2012-2013
Member Hovland introduced the following resolution and moved its approval:
RESOLUTION RELATING TO $5,090,000 GENERAL OBLIGATION TAX
INCREMENT BONDS, SERIES 1997B; AUTHORIZING THE ISSUANCE,
AWARDING THE SALE, FIXING THE FORM AND DETAILS, AND PROVIDING
FOR THE EXECUTION AND DELIVERY THEREOF AND THE SECURITY
THEREFOR
BE IT RESOLVED by the City Council (the Council) of the City of Edina, Minnesota
Section I. Authorization and Sale.
I .Ol . Authorization. The City has previously issued its General Obligation Temporary
Tax Increment Bonds, Series 1997A (the “Temporary Bonds”) pursuant to Minnesota
Statutes, Section 469.178, subdivision 5(a), to finance the costs of acquisition of property
for a public park and ponding area and costs of construction of improvements to such
property (the “Project”), which acquisition and improvement is to be undertaken by the
Housing and Redevelopment Authority of Edina, Minnesota (the “HRA”) as a part of the
Southeast Edina Redevelopment Project of the HRA. The Temporary Bond was purchased
by the HRA. To refund the Temporary Bonds and pay costs of the Project the Council
authorizes the issuance and sale by the City of its General Obligation Tax Increment Bonds,
Series 1997B (the Bonds), in the principal amount of $5,090,000 pursuant to Minnesota
Statutes, Chapter 475 and Section 469.178.
1.02. Sale of Bonds. The City has retained Springsted Incorporated, an independent
financial advisor, to assist the City in connection with the sale of the Bonds. Pursuant to
Minnesota Statutes, Section 475.60, subdivision 2, paragraph (9), the requirements as to
public sale do not apply to the issuance of the Bonds. Proposals have been received for the
sale of the Bonds, and the Council has .publicly considered all proposals presented in
conformity with the terms and conditions distributed by the City to potential purchasers of
the Bonds. The most favorable of such proposals is ascertained to be that of Cronin &
Company, Incorporated Smith Barney and associates, (the Purchaser), to purchase the
Bonds at a price of $5,056,474.20 plus accrued interest on all Bonds to the day of delivery
and payment, on the further terms and conditions hereinafter set forth.
1.03 Award of Bonds. The sale of the Bonds is hereby awarded to the Purchaser and
the Mayor and City Manager are hereby authorized and directed on behalf of the City to
execute a contract for the sale of the Bonds in accordance with the terms of the bid. The
good faith deposit of the Purchaser shall be retained and deposited by the City until the
Bonds have been delivered and shall be deducted from the purchase price paid at
settlement. The good faith checks of other persons who submitted proposals to purchase
the Bonds shall be returned to them forthwith.
1.04. Issuance of Bonds. All acts, conditions and things which 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 the Council to
establish the form and terms of the Bonds, to provide security therefor and to issue the
Bonds forthwith.
Section 2. Form of Bonds. The Bonds shall be prepared in substantially the following
form:
(the City), as follows:
I
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF EDINA
GENERAL OBLIGATION TAX INCREMENT BOND, SERIES 1997B
Page 20
Date of
MinuteslEdina City Council/ADril7.1997
Maturity Original Issue CUSIP
April I, 1997
REGISTERED I OWNER:
PRINCIPAL
AMOUNT: 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
above named, the principal amount indicated above, on the maturity date specified above,
with interest thereon from the date hereof at the annual rate specified above computed on
the basis of the number of days elapsed in a 360-day year consisting of twelve 30-day
months, payable on February I and August 1 in each year, commencing February I, 1998, 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 Finance Director in Edina, Minnesota, as Registrar, Transfer Agent and Paying
Agent (the “Bond Registrar”), or its successor designated under the Resolution described
herein, the principal hereof, are payable in lawful money of the United States of America by
check or draft of the City or the Bond Registrar if a successor to the City Finance Director
as Bond Registrar has been designated under the Resolution described herein.
This Bond is one of an issue in the aggregate principal amount of$5,090,000 (the
“Bonds”), all of like date and tenor except as to serial number, interest rate, redemption
privilege and maturity date, issued pursuant to a resolution adopted by the City Council on
April 7, 1997 (the ccResoIution~’) to refund certain of the City’s outstanding temporary tax
increment bonds, and 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. The Bonds are payable primarily from tax
increments to be derived from a tax increment financing district established by the City and
from tax increment financing districts established by the Housing and Redevelopment
Authority in and for the City of Edina (the “Districts”) which have been pledged to the
payment of the Bonds by the Resolution. 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 not been and are irrevocably pledged. The Bonds are issuable only
as fully registered bonds, in denominations of $5,000 or any integral multiple thereof, of
single maturities.
Bonds maturing in the years 1999 through 2006 are payable on their respective
stated maturity dates without option of prior payment, but Bonds having stated maturity
dates in the years 2007 through 2013 are each subject to redemption and prepayment, at the
option of the City and in whole or in part and if in part, in the maturities selected by the City
and by lot, assigned in proportion to their principal amount, within any maturity, on
February I, 2006 and on any 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 date,
become due and payable at the redemption price herein specified and from and after such
date (unless the City shall default in the payment of the redemption price) such Bond or
Page 21
I
MinuteslEdina City CouncillArJril7.1997
portions of Bonds shall cease to bear interest. Upon the 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.
The Bonds have been designated by the City as “qualified tax-exempt obligations”
pursuant to Section 265(b) of the Internal Revenue Code, a 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 for any tax, fee or governmental charge required
to be paid with respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the 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.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED 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 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 City from the
Districts; 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.
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 the Bond Registrar,
or in the event the City Finance Director is no longer acting as Bond Registrar, by one of the
authorized representatives of the Bond Registrar.
IN WITNESS WHEREOF, the City of Edina, Hennepin County, State of Minnesota, by
its City Council, has caused this Bond to be executed by the signatures of the Mayor and
the City Manager and has caused this Bond to be dated as of the date set forth below.
I
I
Date of Authentication: CITY OF EDINA
City Manager Mayor
CERTIFICATE OF AUTHENTICATION
This is one af the Bonds delivered pursuant to the Resolution mentioned
within.
BY City Finance Director, I
as Bond Registrar
Page 22
MinuteslEdina Citv CouncillApril7. 1997
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 UNlF TRANS MIN ACT .......... Custodian ..........
in common (Cust) (Minor)
TEN ENT -- as tenants
by the entireties
JT TEN -- as joint tenants
with right of
survivorship and
not as tenants in
common
under Uniform Transfers to
Minors
Act ...................................................
(State)
Additional abbreviations may also be used.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
hereby irrevocably constitutes and appoints attorney to transfer the
within Bond on the books kept for registration thereof, with full power of substitution in the
, the within Bond and all rights thereunder, and I premises.
Dated:
PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE:
Signature(s) must be guaranteed by an
“eligible guarantor institution” meeting the
requirements of the Bond Registrar, which
requirements include membership or
participation in the Securities Transfer
Association Medallion Program (STAMP) or
such other “signature guaranty program” as
may be determined by the Bond Registrar in
addition to or in substitution for STAMP, all
in accordance with the Securities Exchange
Act of 1934, as amended.
I
~
NOTICE: The signature to this assignment
must correspond with the name as it
appears upon the face of the within Bond in
every particular, without alternation or any
change whatsoever.
Section 3. Bond Terms. Execution and Delivery.
Page 23
MinuteslEdina City CouncillAmil7.1997
3.01. Maturities. Interest Rates. Denominations. Payment. The City shall forthwith
issue and deliver the Bonds, which shall be denominated “General Obligation Tax
Increment Bonds, Series 1997B”. The Bonds shall be in the aggregate principal amount of
$5,090,000 and shall be issuable in the denomination of $5,000 each or any integral multiple
thereof, shall mature on February1 in the years and amounts set forth below, and Bonds
maturing in such years and amounts shall bear interest computed on the basis of the
number of days elapsed in a 360-day year consisting of twelve 30-days months from date of
original issue until paid or duly called for redemption at the rates per annum shown
opposite such years and amounts as follows:
&aJ
1999
2000
2001
2002
2003
2004
2005
2006
Amount Rate
$1 00,000 %
125,000
150,000
175,000
200,000
225,000
250,000
405,000
Year
2007
2008
2009
201 0
201 I
2012
201 3
Amount &&
$425,000 %
445,000
465,000
490,000
515,000
545,000
575,000
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.
3.02. Dates: Interest Payment Dates. Each Bond shall bear a date of original issue of
April 1,1997, and shall be dated as of the date of authentication. Interest on the Bonds shall
be payable on February I and August I in each year, commencing February I, 1998, 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. Reuistration. The City shall appoint, and shall maintain, a bond registrar,
transfer agent and paying agent (the Registrar). The effect of registration and the rights and
duties of the City and the Registrar with respect thereto shall be as follows:
(a) Reaister. 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;
(b) Transfer of Bonds. Upon surrender for transfer of any 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 day of the month preceding each interest payment date
and until such interest payment date.
(c) Exchanae of Bonds. 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.
(d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be
promptly canceled by the Registrar and thereafter disposed of as directed by the
City.
(e) Improuer or Unauthorized Transfer. When any Bond is presented to the 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 legally authorized.
Page 24
*l b
MinutedEdina City CouncillApril 7.1997
The Registrar shall incur no liability for its refusal, in good faith, to make transfers
which it, in its judgment, deems improper or unauthorized.
(f) Persons Deemed Owners. The City and 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.
(9) Taxes. Fees and Charaes. 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.
(h) Mutilated. Lost. Stolen or Destroyed Bonds. In case any Bond shall 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 connection 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 canceled 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.
3.04. ADpointment of Initial Reaistrar. The City hereby appoints the City Finance
Director, as the initial Registrar. In the event that the City determines to discontinue the
book entry-only system for the Bonds as described in paragraph (c) of Section 3.07, or DTC,
as defined in Section 3.07, determines to discontinue providing its services with respect to
the Bonds and a new securities depository is not appointed for the Bonds, the City will
designate a suitable bank or trust company to act as successor Registrar if the City Finance
Director is then acting as Registrar. 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 and shall deliver the bond register to the successor Registrar.
3.05. Redemption. Bonds maturing in the years I999 through 2006 shall not be
subject to redemption prior to maturity, but Bonds maturing in the years 2007 through 2013
shall each be subject to redemption and prepayment, at the option of the City, in whole or in
part, and if in part, in the maturities selected by the City and, within any maturity, in $5,000
principal'amounts selected by the Registrar by lot, on February I, 2006 and on any 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 Clerk 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 redemption
shall specify the redemption date, redemption price, the numbers, interest rates and CUSlP
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
Page 25
I
MinuteslEdina City CouncillADril7.1997
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 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 Trust Company, of Garden City, New York; and Philadelphia
Depository Trust 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.
Bonds in a denomination larger than $5,000 may be redeemed in part in any integral
multiple of $5,000. The owner of any Bond redeemed in part shall receive, upon surrender of
such Bond to the Registrar, one or more new Bonds of such same series in authorized
denominations equal in principal amount to the unredeemed portion of the Bond so
surrendered.
3.06. Preparation and Delivery. The Bonds shall be prepared under the direction of
the City Finance Director and shall be executed on behalf of the City by the signatures of
the Mayor and the City Manager. In case any officer whose signature shall appear on the
Bonds shall cease to be such officer before the delivery of any Bond, such signature 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 the manual
signature of the Registrar, or in the event the City Finance Director is no longer acting as
Registrar, an authorized representative of the Registrar. Certificates of authentication on
different Bonds need not be signed by the same representative. The executed certificate of
authentication on each Bond shall be conclusive evidence that it has been authenticated
and delivered under this resolution. When the Bonds have been so executed and
authenticated, they shall be delivered by the City Finance Director to the Purchaser 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
I
3.07. Securities Depositow.
(a) For purposes of this Section the following terms shall have the following
meanings:
“Beneficial Owner” shall mean, whenever used with respect to a Bond, the
person-in whose name such Bond is recorded as the beneficial owner of such Bond
by a Participant on the records of such Participant, or such person’s subrogee.
“Cede & Co.” shall mean Cede & Co., the nominee of DTC, and any successor
nominee of DTC with respect to the Bonds.
“DTC” shall mean The Depository Trust Company of New York, NewYork.
“Participant” shall mean any broker-dealer, bank or other financial institution
for which DTC holds Bonds as securities depository.
“Representation Letter” shall mean the Representation Letter from the City to
DTC with respect to the procedures of DTC presently on file with DTC.
(b) The Bonds shall be initially issued as separately authenticated fully registered
bonds, and one Bond shall be issued in the principal amount of each stated maturity
of the Bonds. Upon initial issuance, the ownership of such Bonds shall be registered
in the bond register in the name of Cede & Co., as nominee of DTC. The Registrar
and the City may treat DTC (or its nominee) as the sole and exclusive owner of the
Page 26
MinuteslEdina Citv CounciI/ADril7.1997
Bonds registered in its name for the purposes of payment of the principal of or
interest on the Bonds, selecting the Bonds or portions thereof to be redeemed, if
any, giving any notice permitted or required to be given to registered owners of
Bonds under this resolution, registering the transfer of Bonds, and for all other
purposes whatsoever; and neither the Registrar nor the City shall be affected by any
notice to the contrary. Neither the Registrar nor the City shall have any responsibility
or obligation to any Participant, any person claiming a beneficial ownership interest
in the Bonds under or through DTC or any Participant, or any other person which is
not shown on the bond register as being a registered owner of any Bonds, with
respect to the accuracy of any records maintained by DTC or any Participant, with
respect to the payment by DTC or any Participant of any amount with respect to the
principal of or interest on the Bonds, with respect to any notice which is permitted or
required to be given to owners of Bonds under this resolution, with respect to the
selection by DTC or any Participant of any person to receive payment in the event of
a partial redemption of the Bonds, or with respect to any consent given or other
action taken by DTC as registered owner of the Bonds. So long as any Bond is
registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all
principal of and interest on such Bond, and shall give all notices with respect to such
Bond, only to Cede & Co. in accordance with the Representation Letter, and all such
payments shall be valid and effective to fully satisfy and discharge the City's
obligations with respect to the principal of and interest on the Bonds to the extent of
the sum or sums so paid. No person other than DTC shall receive an authenticated
Bond for each separate stated maturity evidencing the obligation of the City to make
payments of principal and interest. Upon delivery by DTC to the Registrar of written
notice to the effect that DTC has determined to substitute a new nominee in place of
Cede & Co., the Bonds will be transferable to such new nominee in accordance with
paragraph (d) hereof.
(c) In the event the City determines that it is in the best interest of the Beneficial
Owners that they be able to obtain Bonds in the form of bond certificates, the City
may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the
availability through DTC of Bonds in the form of certificates. In such event, the
Bonds will be transferable in accordance with paragraph (e) hereof. DTC may
determine to discontinue providing its services with respect to the Bonds at any time
by giving notice to the City and the Registrar and discharging its responsibilities with
respect thereto under applicable law. In such event the Bonds will be transferable in
accordance with paragraph (d) hereof.
(d) In the event that any transfer or exchange of Bonds is permitted under paragraph
(b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by
the Registrar of the Bonds to be transferred or exchanged and appropriate
instruments of transfer to the permitted transferee in accordance with the provisions
of this resolution. In the event Bonds in the form of certificates are issued to owners
other than Cede & Co., its successor as nominee for DTC as owner of all the Bonds,
or another securities depository as owner of all the Bonds, the provisions of this
resolution shall also apply to all matters relating thereto, including, without
limitation, the printing of such Bonds in the form of bond certificates and the method
of payment of principal of and interest on such Bonds in the form of bond
certificates.
Section 4. Use of Proceeds and Securitv Provisions.
Section 4.01. Use of Proceeds and Construction Fund. The proceeds of the Bonds in
the amount of $5,000,000, are irrevocably appropriated to pay and redeem the Temporary
Bonds on the date of issuance of the Bonds. Any accrued interest on the Bonds shall be
deposited in the Sinking fund created pursuant to Section 4.02 hereof. There is hereby
established on the official books and records of the City a Series 1997 B General Obligation
Tax Increment Bond Construction Fund (the Construction Fund). To the Construction Fund
Page 27
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MinuteslEdina City CouncillAljril7.1997
there shall be credited all remaining proceeds of the Bonds and all remaining proceeds of
the Temporary Bonds on hand with the City. From the Construction Fund there shall be paid
by the City or HRA all costs and expenses of the Project and the issuance of the Bonds.
After payment of all costs of the Project, the Construction Fund shall be discontinued and
any Bond proceeds and other funds remaining therein shall be transferred to the Sinking
Fund created pursuant to Section 4.02 hereof. I .
Section 4.02. General Obliaation Tax Increment Bond Sinkina Fund. The Bonds shall
be payable from a separate Series 1997B General Obligation Tax Increment Bond Sinking
Fund (the Sinking Fund) which shall be created and maintained on the books of the City as
a separate debt redemption fund until the Bonds, and all interest thereon, are fully paid.
There shall be credited to the Sinking Fund the following:
(a) Any amount deposited therein pursuant to Section 4.01 hereof.
(b) All taxes levied and all other money which may at any time be received for or
appropriated to the payment of the principal of or interest on the Bonds, including
the tax increments herein pledged and appropriated to the Sinking Fund and all
collections of any ad valorem taxes levied for the payment of the Bonds.
(c) Any other funds appropriated by the Council for the payment of the Bonds.
There are hereby established two accounts in the Sinking Fund, designated as the
“Debt Service Account” and the “Surplus Account.” AI1 money appropriated or to be
deposited in the Bond Fund shall be deposited as received into the Debt Service Account.
On each February I, the City Finance Director shall determine the amount on hand in the
Debt Service Account. If such amount is in excess of one-twelfth of the debt service payable
from the Bond Fund in the immediately preceding 12 months, the City Finance Director shall
promptly transfer the amount in excess to the Surplus Account. The City appropriates to the
Surplus Account any amounts to be transferred thereto from the Debt Service Account as
herein provided and all income derived from the investment of amounts on hand in the
Surplus Account. If at any time the amount on hand in the Debt Service Account is
insufficient to meet the requirements of the Bond Fund, the City Finance Director-shall
transfer to the Debt Service Account amounts on hand in the Surplus Account to the extent
necessary to cure such deficiency.
4.03. Tax Increment Financina District. The City hereby irrevocably pledges to the
Sinking Fund tax increments derived from the tax increment financing districts of the
Housing and Redevelopment Authority of Edina (the HRA), designated by Hennepin County
as Nos. 1201 (Southeast Edina-Edinborough Tax Increment Financing District), 1203
(Centennial lakes Tax Increment Financing District) and 1200 (50th and France
Redevelopment Area) and tax increments derived from the tax increment financing district
of the City designated by Hennepin County as No. 1204 (Southdale Tax Increment Financing
District), which are either paid to the City (in the case of the tax increment financing district
established by the City) or received by the City from the HRA to pay the Bonds (in the case
of the tax increment financing districts established by the HRA). Such tax increments shall
be deposited in the Sinking Fund in an amount sufficient to pay all principal and interest
when due on the Bonds. Nothing herein shall preclude the City or the HRA from hereafter
making further pledges and appropriations of the tax increments herein pledged for the
payment of the Bonds for the payment of other obligations of the City or HRA or to pay
costs eligible to be paid from the tax increments herein pledged.
4.04. Full Faith and Credit Pledued. 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. It is estimated that the tax increment from the
Districts 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 and all other obligations of the City payable from tax
increments from the Districts 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.
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4.05. Additional Bonds. The City reserves the right to issue additional bonds payable
from the Sinking Fund.
Section 5. Defeasance. When all of the Bonds have been discharged as provided in
this section, all pledges, covenants and other rights granted by this resolution to the
holders of the Bonds shall cease. The City may discharge its obligations with respect to any
Bonds which are 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. The City
may also discharge its obligations with respect to any prepayable Bond called for
redemption on any date when it is prepayable according to their terms, by depositing with
the Registrar on or before that date a sum sufficient for the payment thereof in full; provided
that notice of the redemption thereof has been duly given as provided in Section 3.05. The
City may also at any time discharge its obligations with respect to 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 general obligations of the United States or securities of United
States agencies which are authorized by law to be so deposited, bearing interest payable at
such time and at such rates and maturing on such dates as shall be required, without
reinvestment, to pay all principal and interest to become due thereon to maturity or, if
notice of redemption as herein required has been duly provided for, to such earlier
redemption date.
Section 6. Reaistration. Certification of Proceedinas. Investments of Moneys,
Arbitraae and Official Statement.
6.01. Reaistration. The City Clerk is hereby authorized and directed to file a certified
copy of this resolution with the County Auditor of Hennepin County, together with such
other information as he shall require, and to obtain from the County Auditor a certificate
that the Bonds have been entered on upon the Auditor’s register as required by law.
6.02. Certification of Proceedinas. The officers of the City and the County Auditor of
Hennepin County are hereby authorized and directed to prepare and furnish to the
Purchaser, and to Dorsey & Whitney LLP, 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. Covenant. The City covenants and agrees with the holders from time 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 Regulations
promulgated thereunder (the Regulations), as such are enacted or promulgated and in effect
on the date of issue of the Bonds, 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
such Code and Regulations. The Project to be financed with 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. The City shall not enter into any lease, use or other agreement
with any non-governmental person relating to the use of the Project or security for the
payment of the Bonds which might cause the Bonds to be considered “private activity
bonds” or “private loan bonds” within the meaning of Section 141 of the Code.
6.04. Arbitraae Rebate. The City acknowledges that the Bonds are subject to the
rebate requirements of Section 148(f) of the Code. The City covenants and agrees to retain
such records, make such determinations, file such reports and documents and pay such
amounts at such times as are required under said Section 148(f) and applicable Regulations
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to preserve the exclusion of interest on the Bonds from gross income for federal income tax
purposes, unless the Bonds qualify for the exception from the rebate requirement under
Section 148(f)(4)(C) of the Code and no ccgross proceeds” of the Bonds (other than amounts
constituting a “bona fide debt service fund”) arise during or after the expenditure of the
original proceeds thereof. In furtherance of the foregoing, the City Finance Director is
hereby authorized and directed to execute a Rebate Certificate, in the form prescribed by
Bond Counsel, and the City hereby covenants and agrees to observe and perform the
covenants and agreements contained therein, unless amended or terminated in accordance
with the provisions thereof.
6.05. Arbitraae Certification. The Mayor and City Manager, being the officers of the
City charged with the responsibility for issuing the Bonds pursuant to this resolution, are
authorized and directed to execute and deliver to the Purchaser a certificate in accordance
with the provisions of Section 148 of the Code, and Section 1.148-2(b)(2) of the Regulations,
stating the facts and estimates 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 said Code
and Regulations.
6.06. 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. The City represents that in calendar year 1997
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.
6.07. Official Statement. The Official Statement relating to the Bonds, dated March 24,
1997 (the Official Statement), prepared and distributed on behalf of the City by Springsted
Incorporated, is hereby approved. Springsted Incorporated, is hereby authorized of behalf
of the City to prepare and distribute to the Purchaser a supplement to the Official statement
listing the offering price, the interest rates, 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. Within seven business
days from the date hereof, the City shall deliver to the Purchaser a reasonable number of
copies of the Official Statement and such supplement. The officers of the City are hereby
authorized and directed to execute such certificates as may be appropriate concerning the
accuracy, completeness and sufficiency of the Official Statement.
I
Section 7. Continuing Disclosure.
(a) Purpose and Beneficiaries. To provide for the public availability of certain
information relating to the Bonds and the security therefor and to permit the original
purchaser and other participating underwriters in the primary offering of the Bonds
to comply with amendments to Rule 15~2-12 promulgated by the Securities and
Exchange Commission (the “SEC”) under the Securities Exchange Act of 1934 (17
C.F.R. 8 240.15~2-12), relating to continuing disclosure (as in effect and interpreted
from time to time, the “Rule”), which will enhance the marketability of the Bonds, the
City hereby makes the following covenants and agreements for the benefit of the
Owners (as hereinafter defined) from time to time of the Outstanding Bonds (as
hereinafter defined). The City is the only “obligated person” in respect of the Bonds
within the meaning of the Rule for purposes of identifying the entities in respect of
which continuing disclosure must be made.
If the City fails to comply with any provisions of this Section 7, any person aggrieved
thereby, including the Owners of any Outstanding Bonds, may take whatever action at law
or in equity may appear necessary or appropriate to enforce performance and observance
of any agreement or covenant Contained in this Section 7, including an action for a writ of
mandamus or specific performance, Direct, indirect, consequential and punitive damages
shall not be recoverable for any default hereunder to the extent permitted by law.
Notwithstanding anything to the contrary contained herein, in no event shall a default under
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MinutesIEdina Citv CouncillApril7.1997
this Section 8 constitute a default under the Bonds or under any other provision of this
resolution.
As used in this Section 7, “Owner” or “Bondowner” means, in respect of a Bond, the
registered owner or owners thereof appearing in the bond register maintained by the
Registrar or any “‘Beneficial Owner” (as hereinafter defined) thereof, if such Beneficial
Owner provides to the Registrar evidence of such beneficial ownership in form and
substance reasonably satisfactory to the Registrar. As used herein, “Beneficial Owner”
means, in respect of a Bond, any person or entity which (i) has the power, directly or
indirectly, to vote or consent with respect to, or to dispose of ownership of, such Bond
(including persons or entities holding Bonds through nominees, depositories or other
intermediaries), or (b) is treated as the owner of the Bond for federal income tax purposes.
As used herein, “Outstanding “ means when used with reference to Bonds means all Bonds
which have been issued and authenticated by the Registrar except (i) Bonds which have
been paid in full (ii) Bonds which have been canceled by the Registrar or surrendered to the
Registrar for cancellation and (iii) Bonds which have been discharged as provided in
Section 5 hereof.
(b) Information To Be Disclosed. The City will provide, in the manner set forth in
subsection (c) hereof, either directly or indirectly through an agent designated by the
City, the following information at the following times:
(I) on or before 365 days after the end of each fiscal year of the City,
commencing with the fiscal year ending December 31, 1997 the following
financial information and operating data in respect of the City (the “Disclosure
Information”):
I
(A) the audited financial statements of the City for such fiscal year,
prepared in accordance with generally accepted accounting principles
promulgated by the Financial Accounting Standards Board as
modified in accordance with the governmental accounting standards
promulgated by the Governmental Accounting Standards Board or as
otherwise provided under Minnesota law, as in effect from time to
time, or, if and to the extent such financial statements have not been
prepared in accordance with such generally accepted accounting
principles for reasons beyond the reasonable control of the City,
noting the discrepancies therefrom and the effect thereof, and certified
as to accuracy and completeness in all material respects by the fiscal
officer of the City; and
(B) To the extent not included in the financial statements referred to in
paragraph (A) hereof, the information for such fiscal year or for the
period most recently available of the type set forth below, which
information may be unaudited, but is to be certified as to accuracy and
completeness in all material respects by the fiscal officer of the City,
to the best of his or her knowledge, which certification may be based
on the reliability of information obtained from governmental or other
third party sources:
Most recent population estimate; City Property Values; City Indebtedness; City Tax
Rates; Levies and Collections; and Current General Fund Budget.
Notwithstanding the foregoing paragraph, if the audited financial statements are not
available by the date specified, the City shall provide on or before such date unaudited
financial statements in the format required for the audited financial statements as part of
the Disclosure Information and, within IO days after the receipt thereof, the City shall
provide the audited financial statements.
Any or all of the Disclosure Information may be incorporated by reference, if it is
updated as required hereby, from other documents, including official statements, which
have been submitted to each of the repositories hereinafter referred to under subsection
(b) or the SEC. If the document incorporated by reference is a final official statement, it
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MinuteslEdina City CouncillApril7.1997
must be available from the Municipal Securities Rulemaking Board. The City shall clearly
identify in the Disclosure Information each document so incorporated by reference.
If any part of the Disclosure Information can no longer be generated because the
operations of the City have materially changed or been discontinued, such Disclosure
Information need no longer be provided if the City includes in the Disclosure Information a
statement to such effect; provided, however, if such operations have been replaced by
other City operations in respect of which data is not included in the Disclosure Information
and the City determines that certain specified data regarding such replacement operations
would be a Material Fact (as defined in paragraph (2) of this subsection (b)), then, from and
after such determination, the Disclosure Information shall include such additional specified
data regarding the replacement operations.
If the Disclosure Information is changed or this Section 7 is amended as permitted
by this paragraph (I) or subsection (d), then the City shall include in the next Disclosure
Information to be delivered hereunder, to the extent necessary, an explanation of the
reasons for the amendment and the effect of any change in the type of financial
information or operating data provided.
(2) In a timely manner, notice of the occurrence of any of the following events
which is a Material Fact (as hereinafter defined):
Principal and interest payment delinquencies;
Non-payment related defaults;
Unscheduled draws on debt service reserves reflecting financial
difficulties;
Unscheduled draws on credit enhancements reflecting financial
difficulties;
Substitution of credit or liquidity providers, or their failure to
perform;
Adverse tax opinions or events affecting the tax-exempt status of
the security;
Modifications to rights of security holders;
Bond calls;
I
(I) Defeasances;
(J) Release, substitution, or sale of property securing repayment of the
securities; and
(K) Rating changes.
As used herein, a “Material Fact” is a fact as to which a substantial likelihood exists
that a reasonably prudent investor would attach importance thereto in deciding to buy, hold
or sell a Bond or, if not disclosed, would significantly alter the total information otherwise
available to an investor from the Official Statement, information disclosed hereunder or
information generally available to the public. Notwithstanding the foregoing sentence, a
“Material Fact’’ is also an event that would be deemed ccmaterial’y for purposes of the
purchase, holding or sale of a Bond within the meaning of applicable federal securities
laws, as interpreted at the time of discovery of the occurrence of the event.
(3) In a timely manner, notice of the occurrence of any of the following events
or conditions:
(A) the failure of the City to provide the Disclosure Information
required under paragraph (I) of this subsection (b) at the time
specified thereunder;
(B) the amendment or supplementing of this Section 7 pursuant
to subsection (d), together with a copy of such amendment or
supplement and any explanation provided by the City under
paragraph (2) of subsection (d);
(C) the termination of the obligations of the City under this
Section 7 pursuant to subsection (d);
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MinuteslEdina Citv Council/April7,1997
(D) any change in the accounting principles pursuant to which the
financial statements constituting a portion of the Disclosure
Information are prepared; and
(E) any change in the fiscal year of the City.
(c) Manner of Disclosure. The City agrees to make available the information
described in subsection (b) to the following entities by telecopy, overnight delivery,
mail or other means, as appropriate:
(I) the information described in paragraph (I) of subsection (b), to each then
nationally recognized municipal securities information repository under the
Rule and to any state information depository then designated or operated by
the State of Minnesota as contemplated by the Rule (the “State Depository”), if
any;
(2) the information described in paragraphs (2) and (3) of subsection (b), to
the Municipal Securities Rulemaking Board and to the State Depository, if any;
and
(3) the information described in subsection (b), to any rating agency then
maintaining a rating of the Bonds and, at the expense of such Bondowner, to
any Bondowner who requests in writing such information, at the time of
transmission under paragraphs (I) or (2) of this subsection (c), as the case
may be, or, if such information is transmitted with a subsequent time of
release, at the time such information is to be released.
(I) The covenants of the City in this Section 7 shall remain in effect so long as
any Bonds are Outstanding. Notwithstanding the preceding sentence,
however, the obligations of the City under this Section 7 shall terminate and
be without further effect as of any date on which the City delivers to the
Registrar an opinion of Bond Counsel to the effect that, because of legislative
action or final judicial or administrative actions or proceedings, the failure of
the City to comply with the requirements of this Section 7 will not cause
participating underwriters in the primary offering of the Bonds to be in
violation of the Rule or other applicable requirements of the Securities
Exchange Act of 1934, as amended, or any statutes or laws successory
thereto or amendatory thereof.
(2) This Section 7 (and the form and requirements of the Disclosure
Information) may be amended or supplemented by the City from time to time,
without notice to (except as provided in paragraph (3) of subsection (b)) or the
consent of the Owners of any Bonds, by a resolution of this Council filed in
the office of the recording officer of the City accompanied by an opinion of
Bond Counsel, who may rely on certificates of the City and others and the
opinion may be subject to customary qualifications, to the effect that: (i) such
amendment or supplement (a) is made in connection with a change in
circumstances that arises from a change in law or regulation or a change in
the identity, nature or status of the City or the type of operations conducted
by the City, or (b) is required by, or better complies with, the provisions of
paragraph (b)(5) of the Rule; (ii) this Section 7 as so amended or
supplemented would have complied with the requirements of paragraph (b)(5)
of the Rule at the time of the primary offering of the Bonds, giving effect to
any change in circumstances applicable under clause (i)(a) and assuming that
the Rule as in effect and interpreted at the time of the amendment or
supplement was in effect at the time of the primary offering; and (iii) such
amendment or supplement does not materially impair the interests of the
Bondowners under the Rule.
If the Disclosure Information is so amended, the City agrees to provide,
contemporaneously with the effectiveness of such amendment, an
(d) Term: Amendments: Interpretation.
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MinuteslEdina City CouncillApril7.1997
explanation of the reasons for the amendment and the effect, if any, of the
change in the type of financial information or operating data being provided
hereunder.
(3) This Section 7 is entered into to comply with the continuing disclosure
provisions of the Rule and should be construed so as to satisfy the requirements of
paragraph (b)(5) of the Rule.
Section 8. Severability. If any section, paragraph or provision of this resolution shall be held
to be invalid or unenforceable for any reason, the invalidity or unenforceability of such
section, paragraph or provision shall not affect any of the remaining provisions of this
resolution.
Section 9. Headinas. Headings in this resolution are included for convenience of reference
only and are not a part hereof, and shall not limit or define the meaning of any provision
hereof.
Attest:
Mayor
Member Faust seconded the motion.
Rollcall:
Ayes: Faust, Hovland, Kelly, Smith
Resolution adopted.
CLAIMS PAID Member Kelly made a motion to approve payment of the following claims as
shown in detail on the Check Register dated April 3, 1997, and consisting of 40 pages:
General Fund $475,651 34; Communications $1,073.81 ; Working Capital $10,392.66; Art
Center $1 7,225.43; Swimming Pool Fund $13,659.45; Golf Course Fund $48,257.03; Ice
Arena Fund $12,071.65; Gun Range Fund $143.1 I; EdinboroughlCentennial Lakes
$17,151.33; Utility Fund $351 ,I 10.95; Storm Sewer Utility Fund $229.68; Liquor Dispensary
Fund $268,241.17; Construction Fund $11,925.62; Park Bond Fund $57,795.57; IMP Bond
Redemption #2 $1,076.35; 1-494 commission $29.29; TOTAL $1,286,034.64. Member Hovland
seconded the motion.
Rollcall:
Ayes: Faust, Hovland, Kelly, Smith
Motion carried.
There being no further business on the Council agenda, Mayor Smith declared the meeting
adjourned at 10:33 P.M.
c 0 City Clerk
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