HomeMy WebLinkAbout2000 04-24 CCP Regular Session AGENDA
CITY COUNCIL STUDY SESSION
April 24, 2000
6:00 P.M.
CONFERENCE ROOM B
I . City Council discussion of agenda items and questions
2. Discussion of direction for deferred utility charge policy study
3. Discussion of August Council Retreat date
4. Report on Brookdale Development Agreement
5. Miscellaneous
6. Adjourn
I
City of Brooklyn Center
A great place to start. A great place to stay.
To: Mayor Kragness and Council Members Hilstrom, Lasman, Nelson and Peppe
From: Michael J. McCauley
City Manager
Date: April 20, 2000
Re: Utility Hook Up Deferments
After November when the hook -up charges for Joslyn were set by the Council, further research was
undertaken to follow -up on that decision toward the goal of presenting potential frameworks to clean
up the current maze of deferments. Attached are materials prepared by Ms. Spector providing
additional information and research, along with a map of the properties with deferments. As
indicated in Ms. Spector's memo, many properties with deferred charges are:
- currently served by water and sewer;
- unlikely to develop;
- likely to be developed for residential uses that would be adversely impacted by large fees;
or
- areas targeted for re- development that we would not want to impact with additional charges.
I am also enclosing a copy of the materials you received in November when the fees were set for
Jolsyn. The materials prepared by Ms. Spector for the November meeting outline a possible
framework for organizing a uniform and reasonable set of charges for new hook -ups.
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
Member introduced the following resolution and moved
its adoption:
RESOLUTION NO.
RESOLUTION SETTING WATER CONNECTION FEE FOR JOSLYN SITE
REDEVELOPMENT
WHEREAS, the Joslyn site is being redeveloped to reclaim a Federal superfund
site; and
WHEREAS, the City of Brooklyn Center is reviewing the third connection charges
for water service that date back to the 1950s and 1960s; and
WHEREAS, overcoming the impediments to redevelopment of the superfund site
have been substantial and are requiring large multi- million dollar grants from the State of
Minnesota and the Metropolitan Council, as well as the use of tax increment financing since the
cost of reclaiming and cleaning the site so that it can be used greatly exceed the value of the site
itself; and
WHEREAS, the City Council wishes to charge a water service connection fee that
will reflect a contribution to the value of having water available to the site, but not pose an
impediment to the redevelopment of this superfund site.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center that the sum of $25,000 is hereby set as the complete and total connection fee that
would be charged for water connections from the Joslyn redevelopment site to the City's water
system to be apportioned between the three parcels.
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof.
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
City of Brooklyn Center
A great place to start. A great place to stay.
To: Mayor Kragness uncil Members Hilstrom, Lasman, Nelson and Peppe
From: Michael J. McCauley
City Manager
Date: November 4,1999
Re: Joslyn Water Connection
In the process of platting the Joslyn Development, approximately $100,000 + in water hook up fees
have been identified since the property would be divided into 3 parcels. As a superfund site, you are
aware that re- development of this site involves extraordinary costs that we are attempting to
overcome through tax increment and substantial grants from the State and Metropolitan Council.
$100,000 + in water hook up fees negatively impacts that effort. We are proposing for the Council's
consideration 2 options to overcome this problem:
1) Amend the tax increment agreement to increase the amount of tax increment by the
amount of the hook -up fees.
2) Waive the hook -up fees based on the unique nature of the development in a superfund site
recognizing the extraordinary obstacles to its development.
Hook -up fees were created back in the 1950's and 1960's when mains were installed. Some
properties were not required to pay the full hook up fees back in the 50's. The owners who received
partial deferment are no longer the owners of many of these properties. Hook up fees have also been
imposed for additional connections beyond the original. Staff is reviewing all of the potential sites
subject to these fees. A number of properties have been identified and issues with those properties
that indicate that these fees may be an impediment to redevelopment. The fees do assist the utility,
but do not greatly impact the utility. This is because future main replacement is funded through
current utility rates and not through charges against specific properties. We anticipate recommending
a revision of hook up fees generally. Revisions would reduce or remove impediments to
development or redevelopment generally. Those revisions will probably include a recommendation
to remove the hook up fees from in -fill residential lots and small commercial lots along Brooklyn
Boulevard. Larger commercial sites and potential residential developments would have lower flat
fees than the current results of long term deferral. A recommendation and report on the overall
approach should be ready next Spring.
Based on the need to facilitate the development of this superfund site and the substantial investment
of State, Metropolitan Council, and Tax Increment monies, I would suggest Option 2 as the better
option. That option would not directly impact the utilities since the fees are not relied upon in the
budget and planning process since they are unknowns dependent on redevelopment. Also, the goal
of having this property fully on the tax rolls as soon as possible would be served by waiving the
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
deferred charges. A fee for connection is being proposed that would reflect a charge to have new
services, without creating an impediment to development of the superfund site. This would be
consistent with the analysis and recommendations that will be presented next year to deal with many
other lots that are affected by deferred charges for connection, many of which are developed lots.
BROOKLYN
Public Works Department
MEMORANDUM
TO: Michael J. McCauley
Streets
ITI, FROM: Diane Spector CJ "'
parks SUBJ: Utility Hookups, Joslyn Superfund Site
Public DATE: November 4, 1999
Utilities
Central
Garage The Joslyn Superfund redevelopment site consists of three developable parcels: a.parcel
on which the Wickes Distribution Center is currently being built; another parcel which is
being actively marketed, and a third, smaller site which likely will not be developed for a
Watershed number of years. Under the existing utility hookup policy, these parcels are subject to
Management water hookup charges; no sanitary sewer hookup charges are outstanding. The total
amount of the hookup charges, based on 1999 rates, is $121,117. The hookup charges
are intended to represent the parcel's share of the cost of providing utility service to the
parcel; in other words, not only a share of the water main, but also the trunk main, the
wells, and the towers.
The existing policy computes charges per square foot, on the presumption that larger
parcels would require more intensive utility use. The existing policy is also very difficult
to administer, and is confusing not only to potential developers, but also to staff. It has
long been a priority of the Public Works Department to review this policy and make
recommendations to the City Council for ways to improve this policy. This study and
policy change is scheduled to being later this year, and be for completed by March, 2000.
However, the issue of utility hookups for the Joslyn site need to be resolved now.
There are a number of ways to approach this issue.
Superfund Site
The Joslyn site is unique in that it is a Superfund site which requires contributions of
funding from a number of sources to make its redevelopment feasible. Substantial private
funds have been invested to clean up the site, as well as additional public funds from
various grant sources. A TIF soils district has been established to provide an additional
source of funding. When work is complete and the property redeveloped, it will provide
a substantial public benefit in the form of new jobs, and when the TIF district is
dissolved, a substantial addition to the tax base.
An additional expense of over $120,000 will provide a further complicate the tenuous
financing of this improvement. Thus, the Council could consider waiving the utility
hookups for these parcels as another public contribution to this redevelopment.
Tiered Rate
My initial thought for the structure of the revised hookup policy is that it become a tiered, flat rate, on the
presumption that the consumption, sewage collection and discharge, and fire protection needs would be
relatively similar for similar classes of properties, and the incremental differences would be negligible.
For example, the tiers and rates could be as simple as:
Land Use Area ( Water I Sewer
Commercial/Industrial >5 Acres $10,000 $5,000
<5A $5,000 $3,000
Retail/Office > 5 Acres $5,000 $3,000
<5 Acres $3,000 $3,000
Multi Family > 5 Acres $5,000 $3,000
<5 Acres' $3,000 $3,000
Single Family $1,000 $500
Of course, this rate structure would require additional study, as well as a determination of which parcels fall
into which category. The established policy would have to be rewritten.
Under this type of schedule, the Joslyn site would be charged only for water hookups, as it has no outstanding
sanitary sewer hookups. Two of the parcels are in excess of 5 acres, so each would be charged a hookup fee
of $10,000. The third parcel is under 5 acres, and would be charged $5,000 at such time in the future when
it is developed.
JOSLYN ADDITION 1:T DOC.NO.
• *� ` \\\ � C.R. DOC. N0.
•aml6ar M•Ir w •►r
ui w >a w+w
-
y, so m
\ • I11avI- • oa•>'" / acA1E in rcc7
�'- — .— s r•Tir i sew .—. — — � \ r. r mhe�e . 4L
• \ DETAIL /' • fsiT w w ro =ma
� • •oalrs •a IloaAlnit raw
+ � q 4 t � \
l A- L iao, OAS {_ m r \ WA= w 2% I i
- w, FM waxs�
-r1 T A \
w••
O� � c\ \ \ \ \ =A fmv -IY OP Ac= N 10 SAW
" . \ wA 80VA W ar KMW4L •W a• aw IWOMS
' 619 qb5 sT \ \\\ \\`\� euruaw - -.4
bil sommy 0 W.,
i ts
�?
� oI • -II oanrlr s � — i ^ I tpW�� I.lt1 �� � �� , (� S 5 �' � � ` I ,�e4e
'• - - - -- - -- - - - -- � - - - -- — ago W%nr9am S� aAnxur[a
t _. _ •arc la :� $ 1
1 w 1 --b ~r x 12WMl• - I — — — — — — —. _ . — — x ea'as t w ssa� t.
I ( I s I ADDS I I LOT a. BLOCK I
LOT 2. stocs 1 I
I � I ,. I I �1; I prd w�l. hE1o�w�s1 � �� ,�•
31 I
I i / VALE 00 DAs '
•.m" m •an afeoom fec morel um I � i 4 4 nit depoh I I $
A ( ( >�[evlolwty pa4d , j » 30 #ZWW "
a ( = VALE AM 0AY"5 157' emu. r�.��IT
s 43ss'39• w 39.50
I I N W"4Vfr W 743.42 s 49'38'01 w 32.67
4 I .ar,�r -..•
MEMORANDUM
DATE: April 20, 2000
TO: Michael J. McCauley, City Manager
FROM: Diane Spector, Director of Public Works
SUBJECT: Status Report on Utility Hookup Policy
When Brooklyn Center first constructed its municipal water and sanitary sewer facilities in the
late 1950s, much of this construction proceeded in the manner which is common in developing
communities now: in residential areas the developer constructed the streets and utilities and
passed that cost along to the homeowner as part of the purchase price of the new lot or home. In
a number of cases, the Village /City did some or all of the infrastructure work, and then assessed
100 percent of that cost to the benefitting properties. Whether the Village /City or developer
constructed the improvements, all residential properties were assessed a $490 "service
connection" charge.
Many of the supply and collection facilities - wells, towers, and lift stations - were constructed
using funds generated by the "prepays" of these assessments. In other words, the Village /City
would sell revenue bonds to finance the construction of water mains and services and then assess
properties. The property owners would generally pay the assessments in full rather than over
time - a "prepay." The Village/ City would then earn interest off all these prepays, and use the
amounts not necessary to make bond payments to pay for capital improvements.
Where there were existing homes and businesses, bringing in municipal sewer and water
proceeded on a little different basis. In almost every case, the costs of sanitary sewer
interceptors, lift stations, and laterals as well as service connections were assessed at 100 percent
of the cost distributed as special assessments to all benefitting parcels. The only cases where
parcels may not have paid for sanitary sewer service are a few vacant parcels.
However, it was a'different story with water. Residential property owners who didn't want to
connect up to City water right away were allowed to defer their service connection charge. Many
did eventually convert from private wells to city water. There are perhaps 15 -20 properties
which are still on rivate wells. Generally, the convert when the homeowner wants to sell the
p Y� Y
roe and a condition f e n municipal property c d hon o the buyer's s financin is that the roe b o
rtY Y g property rtY al water. P
A number of commercial properties balked at being assessed for water hookup. In some cases,
this reluctance to hookup and to pay assessments endangered the feasibility of improvement
projects. In the interest of keeping water installation projects on track, in some cases adjustments
were made and in others, deals were cut. Non - residential properties were supposed to be charged
a hookup charge based on a calculation of two things: an amount per linear foot of frontage, and
an amount based on the size of the property. The linear foot charge was supposed to represent
the share of the cost of the pipe passing by the property, and the area charge was supposed to
represent the additional burden a larger property might put on the need to provide fire flow,
irrigation flow, etc. However, for example, it might be the case that a determination was made
that a particular commercial building might be "worth' ' two residential units, and thus it was
assessed two times the $490 service connection charge. Or, it was agreed that a property would
be assessed the frontage portion of the assessment, but defer the area charge. The result was that
there are many properties which did not pay their fair share of hookup charges at the time of
hookup.
City ordinances provide that properties that were not assessed at the time of hookup their full
share of the cost of providing water and sanitary sewer service to the property must pay that
additional amount upon development or redevelopment. We currently have in place an arcane
and difficult to administer program to meet the requirements of these ordinances. Most parcels
in the City have been adequately assessed, but there a few hundred parcels that still have
"outstanding utility hookups."
For commercial and industrial properties, it can take several steps to determine just what the
actual hookup charge would be. Old levy files must sometimes be consulted to determine what
the "fair share" was that the parcel should have been assessed at the time of hookup. It is
difficult for property owners and developers to understand this system, and very few staff
members fully grasp all the nuances of the program. There have been times when hookup
charges have come as an unwelcome surprise to a developer. There have also been times when
an outstanding hookup charge has been a barrier to redevelopment.
As development and redevelopment increase, it is time to look at streamlining and simplifying
the process. At this time, the City's water and sanitary sewer systems have been complete for
many years. Depreciation of the supply and collection facilities is fully funded or on pace to be.
At this time it is difficult to say that developed parcels that were not fully assessed at the time of
development are depriving the utility funds of dollars necessary to pay for facilities that those
parcels are using. Those parcels are adequately served, and are contributing to funding
depreciation just as other parcels are contributing. It is difficult to say to a redeveloper "Yes we
know you have water and sewer service now and have had for decades, but you still owe us a
hookup charge of $5,000 from 1963." In addition, there are a great many parcels on which there
are future hookup charges due which more than likely are never going to be redeveloped. It is
questionable whether we ought to even continue to maintain paperwork for deferred hookup
charges which are probably never going to happen.
To look at what truly is the outstanding liability, I have performed a detailed analysis of the
information that has accumulated over the years. I have eliminated from future consideration
parcels that are likely never to be redeveloped, for example, two 40 -foot wide residential lots that
have been combined into one lot with one service with a house built in the middle on the lot line,
or an oversized lot that probably at some point in the distant future could be subdivided into two
lots if the house in the middle ever burns down. I then worked with Community Development
to categorize the remaining parcels as "Likely, Maybe, or Unlikely" to develop or redevelop.
s ,
The number of parcels and acreage is shown in the table below. I then calculated the potential
hookup fees due using the rates already established for 2000. I should note that there were
several parcels where I was unable to perform this calculation because the hookup charge would
depend on how the parcel was redeveloped and reconfigured.
As can be seen in the attached tables, the total amount that we would realistically have an
opportunity to collect is quite low, just under $45,000. Most of these likely to redevelop parcels
are those where the city desires to encourage redevelopment: Brooklyn Boulevard, Northbrook
Shopping Center, etc. It may be desirable to amend the amount owed, or even to consider
forgiving the amount owed as an incentive for redevelopment, such as was done last fall for the
Joslyn site. If those parcels are removed from the equation, the amount that we could
realistically collect falls to almost $0.
Based on this information, I suggest the following points for Council discussion:
1) Is the Council willing to "forgive" the outstanding hookup charges for those
parcels that more than likely will never redevelop, or will redevelop only in
the very long term?
2) Should the hookup charge policy be amended so that it relates only to vacant,
undeveloped parcels, in effect "forgiving" the deferred portion of the hookup
charge on already developed parcels?
3) Should the hookup policy be amended so that it sets forth a uniform rate that
is unrelated to past status? In other words, whether or not a commercial
property was fully assessed for hookups in the past, if it redevelops it would
be charged $x for water hookup and $y for sewer hookup.
4) Should the policy be a type of hybrid, such as #3 above, but also including a
more costly hookup charge for vacant property hooking up to the system for
the first time? This would attempt to address a question of the fairness of #3
to parcels which have recently developed/redeveloped and paid a substantial
hookup charge, such as the Regal Theater site and the Joslyn site. Both of
these sites were combinations of parcels which were vacant and developed
parcels which may or may not have been fully charged for hookups.
5) How does the Council wish to handle single - family homes? There are a few
infill lots available that have potential future hookups. There are also a few
areas, such as the "Northeast Neighborhood," where a sizable new subdivision
could be constructed. A residential water and sanitary sewer hookup fee at
today's rates can add $5 -6,000 onto the cost of a residential lot.
6) What other concerns does the Council have?
TYPE I(All) ITotal Acreage of Parcels With Outstanding Hookup Charges
Sum of ACRES REDEV
CODE 1 2 3 Grand Total
Residential 2.051 13.195 49.589 64.835
Commercial 37.507 23.434 60.628 121.569
MultiFamily 6.833 54.597 61.43
Grand Total 39.558 43.462 164.814 247.834
1= Likely to Redevelop; 2 =Maybe Will Redevelop; 3= Llkely Will not Redevelop
TYPE (All) ITotal Number of Parcels With Outstanding Hookup Charges
Count of ACRES REDEV
CODE 1 2 3 Grand Total
Residential 4 14 67 85
Commercial 20 17 38 75
MultiFamily 9 22 31
Grand Total 24 40 127 191
TYPE IV (Total Number of Vacant Parcels With Outstanding Hookup Charges
Count of ACRES REDEV
CODE 1 2 3 Grand Total
Residential 4 2 6
Commercial 1 1 2 4
Grand Total 1 5 4 10
TYPE (All) Estimated Hookup Charges at Today's Rates, All Parcels
Sum of CHARGE REDEV
CODE 1 2 3 Grand Total
Residential $ - $ 4,226.65 $ 35,371.60 $ 39,598.25
Commercial $ 44,790.10 $ 76,073.43 $ 202,920.67 $ 323,784.20
MultiFamily $ 7,474.62 $ 179,596.91 $ 187,071.53
Grand Total $ 44,790.10 $ 87,774.70 $ 417,889.18 $ 550,453.98
1= Likely to Redevelop; 2 =Maybe Will Redevelop; 3= Llkely Will not Redevelop
TYPE (All) Total Parcels
Count of CHARG REDEV
CODE 1 2 3 Grand Total
Residential 4 14 67 85
Commercial 19 17 39 75
MultiFamily 9 22 31
Grand Total 23 40 128 191
TYPE IV Estimated Hookup Charges at Today's Rates, Vacant Parcels
Sum of CHARGE REDEV
CODE 1 2 3 Grand Total
Residential $ - $ - $ -
Commercial $ - $ 589.88 $ 514.01 $ 1,103.88
Grand Total $ - $ 589.88 $ 514.01 $ 1,103.88
NOTE: A hookup charge could not be calculated for all parcels, as in a number of
cases the actual hookup charge would depend on how the parcel was developed or
redeveloped.
JL
AL
q:21 moll
Ap
MIN
MIN
MEAN
MM
n
T II � ��
�� Esau
COMM� DENO �
MEN
Redevelopment Potential
3
Land Use
Single Family
Multi Family
Toanhomes
DB
Commercial - Industrial
Service-Office
Retail
Public-Semi Public
Vacant
Open Spare /Park
BROOKLYN Parcels With Utility Hookups Due,
oea >ea
Potential For Redevelopment
City of Brooklyn Center
A great place to start. A great place to stay.
To: Mayor Kragness and C it Members Hilstrom, Lasman, Nelson and Peppe
From: Michael J. McCauley
City Manager
Date: April 20, 2000
Re: August Council Retreat
Carl Neu inquired if it would work to change the date for the Council Retreat in August. He
emphasized that the original date would be kept if that was not possible. He was available August
5th, 12th, and 19th. Those dates may not work due to some staff vacations.
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer -
i
t
i
City of Brooklyn Center Of fice of the Ci 1 v Manag ICY
3[
A great place to start. A great place to stay.
Michael J. McCauley
City Manager
April 19, 2000
Mr. James A. Schlesinger
President
Talisman Companies L.L.C.
1500 San Remo Avenue
Suite 135
Corral Gables, Flordia 33146
Dear Mr. Schlesinger:
I have advised the City Council regarding our recent conversation in which you expressed concerns
regarding the language in Sections 6.1 (g) and 2.2 (11) of the development agreement. Enclosed are copies
are of materials that have been supplied to the City Council by way of background on these issues. Included
in the materials supplied to the Council is a review of the current agreements that you supplied to Briggs and
Morgan. This material has been given to the City Council so that if you wish to proposal an addendum to
the development agreement for the City Council's consideration, they would have this background in order
to review any proposed addendum.
Sincere
Michael J. McCa
City Manager
MJM:mr
c: Mayor and Council Members
Mary Dyrseth
Robert D. Thistle
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
I
' F
• City of Brooklyn Center
A great place to start. A great place to stay.
To: Mayor Kragness and Council Members Hilstrom, Lasman, Nelson and Peppe
From: Michael J. McCaule
City Manager
Date: April 19, 2000
Re: History of Development Agreement
In last week's update, I advised you regarding a conversation with Jim Schlesinger. Mr. Schlesinger
was concerned about two provisions in the Development Agreement:
- the requirement that there be 3 years remaining on leases or agreements with the anchors
at the time the note is issued (Section 6.1 (g) page 14 of the Development Agreement) and
- the requirement that at least $50 Million be expended on "hard costs" for the projects
(Section 2.2 (11) on page 7 of the Development Agreement).
The number of years of leases or operating agreements changed during the discussions that began
in 1998. The City's first position (when bonds were being considered, before we converted to pay
as you go) was that operating agreements would need to be for a period as long as any bonds. This
then switched to requiring in the draft that operating agreements be co- terminus with any note. As
indicated in the following summary, the number of years inserted into Section 6.1 (g) was 3 as a
result of the negotiations and the handwritten information filled in by Talisman, LLC by fax on
December 31, 1999.
Man y of the details were not received for the exhibits until just before the agreements were approved
by the City Council or were supplied after the Council's approval, consistent with the outline of
terms.
On the issue of hard costs, the attached materials show some of the many iterations of cost and
income estimates supplied by Talisman over the course of the discussions. One of the earliest drafts
used $64 Million as the target for hard costs of the project. This number was reduced to $50 Million
in the later drafts and was not marked up by Talisman with the other changes proposed by them in
their December 31, 1999 fax. The various pro formas indicated at least $50 Million until the January
24, 2000 pro forma, which was referred to Springsted and dated the same date that the matter was
presented for City Council approval. I did not review that pro forma for purposes of calculating their
projection of expenditures since the Development Agreement specified the obligations. We were also
trying to resolve all of the issues on the list of eligible tenants for the Exhibits.
The following is a synopsis of the development of the Development Agreement:
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 - City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 - FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
May 22, 1998
letter to James A. Schlesinger
- Draft Term sheet including, among other items:
- `B) Conditions for issuance of bonds and use of bond proceeds:
1. Phases I &II are completed as agreed upon between the parties and
are fully leased for such terms and by such types of tenants as have
been agreed upon by the parties. Change orders during construction
of the phases varying from the agreed upon specifications would
required prior City approval.
2. Operating agreements have been executed between the developer
and Dayton's (or acceptable equivalent) Pennys, Sears, and Kohls for
a term not less than the term of the tax increment bonds to be issued.
(This was revised on September 14, 1998 Draft Terms to provide operating
agreements not less than term of note (rather than bonds))
September 25, 1998
letter to James A. Schlesinger
- "The recommendation to the City Council would be:
- $3 Million in the form of a note from the City to Talisman, payable solely
from net tax increment proceeds generated by the project and/or special
district taxes levied against the project property
- the note would bear interest at the rate of 8% per annum
- the note would be issued upon substantial completion of the project
- the general terms described in the 9/14/98 Draft of Brookdale Terms that
you received at our meeting (an additional copy is attached for your
convenience)."
November 12, 1998
letter to James A. Schlesinger
- transmitted draft development agreement and requested information for exhibits
December 18, 1998
letter to James A. Schlesinger
- follow-up requesting draft descriptions of
p
to letter of November 12th q g p
improvements, list of proposed eligible tenants and information needed for other
exhibits
September 16, 1999
letter to James A. Schlesinger
- request for information to finalize a development agreement including:
- Page 7 (11), we would suggest expenditure of at least $64 Million to
construct the minimum improvements. The minimum improvements will be
described in Exhibits D and E. In defining the minimum expenditure,
additional language would be added to the proposed development agreement
specifying that this would reflect hard construction cost of at least $64
million.
Hard construction costs would need to be defined. We generally anticipate
defining hard construction costs as set forth in your proforma to be actual
monies spent on construction, exclusive of soft cost. Included in the
definition of hard costs would be payments to anchor department sores for
remodeling to be undertaken by the anchor stores and some language with
respect to acquisition of the JC Penny's store, with a minimum commitment
for tenant improvements by the tenant.
- Page 14, Section 6.1 (g) I would suggest using language from the Dayton's
agreement with respect to 80 percent leasing to eligible tenants. We will have
to discuss the number of years to be inserted in that section for the major
anchor stores.
- Page 14, Section 6.1 (h) developer equity must be specified. It indicates a
percentage and I would suggest replacing the percentage with a number such
as $13 million.
- Page 15 (k) the market value of the appraisal would be not less than $90
million for an appraisal indicating the value of the mall and the anchor retail
stores.
October 27, 1999
letter to James A. Schlesinger
- re -draft sent of Development Agreement
- request information necessary to fill in blanks and exhibits
- Section 6.1 (g) blank as to number of years required for Dayton's Penny's, Sears
and Kohls
- $50 Million in Hard Costs
- $90 Million in Total value ($60 Million for mall)
- $13 Million in equity contribution by Talisman to project
December 31, 1999
Fax from James A. Schlesinger
- received pages with handwritten information to fill in blanks in development
agreement
- Section 4.1 $45,000,000 minimum value for mall
- Section 6.1 (g) The Development Property is at least 75% leased to Eligible
r,
Tenants pursuant to leases having remaining terms at the time of the issuance
of the Note of not less than -3vrs• years, and Dayton's Penny's, Sear's and
Kohl's have executed lease or operating agreements with respect to the
Adjacent Property at the time of issuance of the Note for remaining terms of
not less ' than 3 years: (underlined bold sections indicate handwritten
information supplied by Talisman)
January 3, 2000'
Federal Express from Talisman
- received 31 pages of proposed eligible tenants
January 10, 2000
letter to James A. Schlesinger
- revised development agreement:
- substantial completion changed from 2001 to 2002
- valuation minimums retained as of end of 2001 so that tax increments begin
2003 and end with 2007
- value at end of 2001 is at least $45 Million for Mall and $30 Million for adjacent
properties (total of $75 Million).
- revised percentage of occupancy from 75% to 80%
January 21, 2000
letter to James A. Schlesinger
- revised Exhibit "F"
- removed all outlets and fast food from eligible list
- 85% inserted for percentage of mall that must be occupied by eligible tenants
- revised Exhibit "D" eliminating outlot pad developments from required
improvements .
January 24, 2000
City Council approved Development Agreement
- latest pro forma from Talisman
Attached are copies of a spreadsheet highlighting information from 4 versions of the pro formas
supplied by Talisman LLC, the Draft Terms Sheets dated 5/22/98 and 9/14/98 (and accompanying
letters), letters dated November 12, 1998 and December 18, 1998, September 16, 1999 letter in
preparation for September 23, 1999 meeting on Development Agreement, November 5, 1999 letter
with re -draft of Development Agreement, the December 31, 1999 fax with handwritten information
for blanks or proposing changes in the document, a review undertaken by Briggs and Morgan of the
anchor agreements supplied by Talisman,.
Aug. 98 Feb 99 July 99 Jan 2000
PROJECT COSTS
Dept. Store
Dayton's $12,000,000 $8,160,000 $8,160,000 $8;160,000
J.C.Penny $500,000 $2,500,000 $2,500,000 $2,500,000
Other Dept. $500,000 $700,000 $900,000 $1,100,000
Tenant Improvements $9,039,710 $19,123,346 $17,629,683 $11,961,313
Son /Loews $6,750,000
Y ($5,550,400)
Hard Costs $27,551,818 $19,667,182 $21,312,700 $20,332,316
Hard Cost Contingency $1,000,000 $3,602,577 $980,384 $980,384
Soft Costs $9,743,000 $10,850,000 $11,130,000 $10,000,000
Soft Cost contingency $800,000 $300,000 $500,000
Const. Finance Cost/Fees $1,250,000 $1,363,600 $1,948,890
$67,084,528 $66,653,105 $64,276,367 $51,932,503
INCOME Tenant Groups Feb 99 July 99 Jan 2000
Dept. Stores Dept. Stores $1,327,147 $1,153,922 $1,153,922 $1,153,922
Pad Sites Pad Sites $1,699,112 $1,312,619 $1,237,555 $1,237,734
Mini Dept. Stores Mini Dept. Stores $0 $2,496,679 $2,41.3,267 $628,329
Mall Stores Mall Stores $13,464,748 $9,763,282 $9,013,417 $8,787,686
Kiosks Kiosks $0 $226,800 $475,560 $352,419
Temporary Tenants $172,800 $216,000 $0
Percentage Rent $216,400 $40,000 $0
Miscellaneous Income $150,000 $225,000 $225,000
$17,030,207 $15,169,302 $14,558,721 $12,385,090
Vacancy Vacancy allowance $842,870 $471,823 $459,392 $330,906
OP. EXPENSES
Common Area $2,759,264 $2,759,264 $2,759,264 $2,759,264
Real Estate Taxes $3,647,717 $3,538,726 $3,278,404 $1,992,934
Marketing Expenses $437,351 $437,351 $437,351 $437,351
Management Fees $235,500 $220,884
Non - Recoverable Inc[ Marketing $510,262 $109,338 $109,338 $109,338
Capital Reserves $118,825 $63,998 $59,938 $27,053
$7,473,419 $7,144,177 $6,865,179 $5,325,940
NET OPERATING INCOME FROM PRO FORMAS
$8,555,803 $8,329,374 $7,570,082
Less Tax Increment in Pro Forma $561,104 $1,152,434 $631,197
Adjusted Net Operating Income $7,994,699 $7,176,940 $6,938,885
Debt Service $6,865,353 $7,396,347 $7,026,429 $6,053,301
Return without TIF from Pro Forma $598,352 $150,511 $885,584
Income $17,030,207 $15,169,302 $14,558,721 $12,385,090
Operating Expenses ($7,473,419) ($7,144,177) ($6,865,179) ($5,325,940)
Vacancy ($842,870) ($471,823) ($459,392) ($330,906)
Debt Service ($6,865,353) ($7,396,347) ($7,026,429) ($6,053,301)
Add in TIF $0 $561,104 $1,152,434 $631,197
$1,848,565 $718,059 $1,360,155 $1,306,140
City of Brooklyn Center
A great place to start. A great place to stay.
May 22, 1998. ,
Mr. James A. Schlesinger
President, Talisman Companies, L.L.C.
1500 San Remo Avenue, Suite 135
Coral Gables, Florida 33146
Dear Mr. Schlesinger:
Enclosed please find a draft outline of items to be addressed and included in agreements that would
govern the potential use of tax increment financing to assist in the redevelopment of Brookdale. As
we discussed, we will be prepared to discuss the initial evaluation of the materials you supplied on
the financial aspects of the project on June 5th.
Additional information that will be needed as discussions progress will include:
- a complete identification of all the entities involved in the ownership structure for Talisman
Brookdale, L.L.C., some of the principals have been identified, but the documents would
indicate that all of the officers and principal shareholders /partners have not been identified
for BZA Brookdale Mall Corp. and CS Brookdale Realty Corp.
- additional financial information and verification would be anticipated as may be identified
by Springsted Financial Advisors, Inc.
- use of current cash flow pending redevelopment project.
- further information on the mortgage limitations on leasing over 10,000 sq. ft. or for more
than 5 years - is this an issue, or perfunctory between you and bank?
We look forward to meeting with you on June 5th to continue our discussions.
Sincer LManage
Muley
C
cc: Mayor & Coun cil Members
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
Draft: 5/22/98 Brookdale Terms Page i
DRAFT TERM SHEET: BROOKDALE MALL REDEVELOPMENT
I. Minimum Improvements:
Developer will construct the proposed phases, substantially as described and subject to
specified conditions regarding occupancy and term of occupancy commitments. Specifications
would be articulated to describe the phases with particularity on quality and type of construction and
the general tenancy levels required pursuant to a list of acceptable tenants or type of tenants.
The phases would generally include those describe in the materials previously supplied:
A) Phase I: mall reconfiguration with the creation of open spaces and treatments to be
specified as presented in developer's performance specifications as the same are further
defined between the'parties.
B) Phase II: construction of a new Dayton's (or acceptable equivalent) store having a
minimum of square feet.
C) Phase III: redevelopment of the existing Dayton's store into retail space pursuant to
specifications and target leasing levels and specified tenant quality and duration to be
negotiated between the parties.
The construction schedule will be specified in the agreement as proposed by developer: Phases I and
II by the end of 1999 and Phase III completed by the end of the year 2000.
II. City/EDA Use of Tax Increment Financing
A) The City would issue taxable general obligation tax increment financing bonds in the
maximum principal amount to be determined by negotiations based on:
- the ability of the project to generate tax increment
- the existence of legally permissible expenditures under tax increment financing law
- the determination of need for the use of tax increment financing assistance to
overcome obstacles to redevelopment.
B) Conditions for issuance of bonds and use of bond proceeds:
1. Phases I & II are completed as agreed upon between the parties and are fully
have been agreed upon b the
such gr p Y
leased for such term and by typ es of tenants as
parties. Change orders during constuction of the phases varying from the agreed upon
specifications would require prior City approval.
2. Operating agreements have been executed between the developer and Dayton's (or
t
Draft: 5/22198 Brookdale Terms Page 2
acceptable equivalent) Pennys, Sears, and Kohls for a term not less than the term of
the tax increment bonds to be issued.
3. Leases are committed for at least _% of the leasable square footage for Phase
III by the type of tenants as have been agreed upon by the parties..
4. The Developer has an assignable option to acquire the current Dayton's building.
5. Developer has submitted evidence of permanent financing for the entire
redevelopment project as well as construction financing, such permanent financing
being for a term not less than the term of the tax increment bonds to be issued. This
requirement would not preclude re- financing, with the City's prior written approval
or pre - payment of the mortgage under terms that protected the City's interests.
6. All developer's mortgagees shall consent to all terms of the development
agreement and shall consent to be bound by: the minimum market values, agreement
not to contest real estate tax valuation at or below amount set in agreement, and the
imposition of a special district tax and the agreement therefore.
7. The City and its financial advisor must determine, prior to issuance of any bonds
and the disbursement of any proceeds, that tax increment revenues will be sufficient
to provide at least 105% coverage of the payments for repayment of the bonds and
the cost of issuance of such bonds. Such 105% coverage of payments shall be
computed after allocation of 15% of tax increment revenues for housing purposes as
required by the special law applicable to this district.
8. Developer shall provide proof of equity contributions that may be specified in the
agreements.
9. No funds will be disbursed or advanced by the City prior to the completion of
Phases I & II and the conditions described above being satisfied.
III. Agreements Required to Implement the Use of Tax Increment, in addition to, or as part of a
Development Agreement:
A) An assessment agreement specifying a minimum market value for real estate tax
purposes:
- covering the improvements that will be made
- the date when the values will be in effect, whether the improvements are completed
or not
- covering the properties upon which the improvements will be made
- covering all properties that will be used to generate increment: this may include the
Draft: 522/98 Brookdale Terms Page 3
anchor stores, in which case their agreement to minimum market values and/or
nnposition of the special district tax must be negotiated and delineated as applicable
B) A deficiency agreement obligating the developer to pay to the City any amount necessary
to pay the principal and interest of bonds in the event of a tax increment deficiency for any
reason whatsoever, providing that a special district tax may be used to offset deficiency
payments to the extent such special tax revenues are received to offset the deficiencies from
tax increment. Such obligation may be secured by an assignment of rents or second
mortgage in a position junior to the 1st Mortgagee.
C) Consent and agreement to the creation of a special taxing district pursuant to Laws of
Minnesota 1998 Chapter 389, Article 11, Sections 10 and 28, together with the agreement
that the City may levy a tax in the amount_ necessary to pay principal and interest and any
penalties on bonds issued pursuant to the Development and Assessment Agreements.
Developer would receive credit for any proceeds received from tax increment applicable to
the project as outlined in the Development and Assessment Agreements (which agreements
may. be merged into one document) and any payment of deficiency payments.
IV. Use of Tax Increment Proceeds.
Bond proceeds may be used for allowable expenditures, potentially qualified expenditures
would include:
- relocation of utilities
- parking facilities
- acquisition of real property for redevelopment
- funds used for acquisition of real property for redevelopment would be
subject to:
- standard title and environmental review
- developer holding City harmless for environmental liability for
property
- reversionary right to the City in the event redevelopment of
conveyed property is not completed as required
- soil correction
- demolition
- site preparation
V. Other Conditions
A) Job and wage covenants may be required pursuant to State law specifying minimum job
and wage goals for the redevelopment.
B) Agreement and approval of a Planned Unit Development for the entire property
Draft: 5/MS Brookdale Tenns Page 4
comprising Brookdale, which PUD shall include adequate parking and proof of parking
arrangements.
C) The City shall have no participation in the project beyond that enumerated with specificity
in the agreements. Any requests for utility relocation, street improvements, or other
improvements not specifically identified in an agreement shall be solely at developer's
expense and handled by the City as any other request of a similar nature.
D) All agreements shall contain language requiring developer to carry adequate insurance
on the property and construction.
E) Restrictions on transfer or assignment of developer's interest in the property or its
obligations under the agreements.
F) Covenants on market value and the imposition of a special district tax shall survive
destruction or damage to the improvements on the real property and developer may be
required to demonstrate through insurance, or otherwise that developer will be able to meet
such obligations in the face of damage or destruction to the improvements, including all of
the properties comprising Brookdale, whether owned by developer or others.
G) Demonstration through insurance that developer has loss of business coverage sufficient
in the event of damage or destruction to the property sufficient to pay real estate taxes,
special district taxes, and principal and interest payments and operating costs during re-
construction.
II) An obligation to rebuild the property in the event of damage or destruction to the same
quality and value as required under the agreement. Developer's mortgage shall permit and
require developer to rebuild or repair and insurance proceeds shall be escrowed and
disbursed for construction costs until satisfactory (to the City) completion of the rebuilding
or repair. Developers agreements with the anchor stores shall similarly require them to
rebuild or repair to a specified level in the event of damage or total loss on their properties.
I) Developer shall pay a fee of $_ for the use of tax increment financing. Such fee to be
negotiated.
J) Leases shall not permit lessees to contest ad valorem or special district real estate taxes.
Under all circumstances, developer shall be responsible for the payment of real estate and
special district taxes. such obligation may not be transferred or assigned.
K) All outstanding and potential appeal of real estate taxes at Brookdale must be resolved
on a basis agreeable to the City.
L) Developer shall supply a professional appraisal by a nationally recognized expert
Draft: 5/22/98 Brookdale Terms Page 5
(acceptable to the City) in regional mall valuation. Such appraisal shall demonstrate that the
project, when completed will have a minimum fair market value at least equal to the value
specified in the Development agreement.
1Vl) The size of a new Da_yton's (or acceptable equivalent) store shall be a minimum of
^ , 000 square feet.
4
Office of the City Manager
City of Brooklyn' Center
Agreat place to start. A great place to stay.
Michael I McCauley
City tY g
September 25,1998 _ ' .
:.Mr. James A. Schlesinger
President
- Tali
sman ' anie
Com s . L.L.C.' . .
P
1500 San Remo Avenue, Suite 135
Coral Gables, Florida 33146
Dear Mr. Schlesinger:
Thank you for:meeting.last week to continue our discussions regarding your redevelopment project at Brookdale.
As we discussed, a preliminary outline of financial terms of a development agreement between Talisman Brookdale
L.L.C. and the ' City of Brooklyn Center would be recommended. for the City Council's consideration.- -The '
recommendation to the City Council would be:
- $3 Million in the form of a note from the City to Talisman, payable solely from net tax increment proceeds
generated by the project and/or special district taxes levied against the project property
= the note would bear interest at the rate of 8 %per annum
- the note would be issued upon substantial completion of the project
the general terms described in the 9/14/98 Draft of Brookdale Terms that you received at our meeting (an
additional copy is attached for your convenience
This general recommendation would be presented to the City Council at its October 19th work session at -7:00 p.m.
This.would be an opportunity for you to update the Council on the status of your plans.
A number of items will be necessary to develop a "draft agreement'along the terms generally described in the 9/14/98
Draft of Brookdale Terms. The City will need: :.
1,- - drawings and specifications that reflect current plan .
especially for those items that have changed from the original - plan such as the skylight treatments
2. your revised construction schedule"
3. = specific breakdown and detail for potentially qualified expenditures for tax increment reimbursement:
- relocation of utilities
- parking facilities
- acquisition of real property for redevelopment
-.soil correction
- demolition
- site preparation
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
Mr. Jim Schles "roger . -2= September. 25; I998
' . A 4r.. • A' minimum'value will need to be 'establis> zed pending the• completion of the project:: 'It is. anticipated
`that the minimum values would be $24. Million through the year. 1999 for taxes payable in: the year
2000: The minimus►r yah�e necessary to, support $3 Million in tax increment with interest at 8 Would.
be around $59 Million for the Mall; widi li assumed value of $32 Million for. the This. .
is an area "where the. use of a special district tax' may be appropriate to insure a cash flow -I% to � '
f ; .amortize the note"and interest. • This minimum : value• would. be -in place.through iepayaient o£ttie note. -• !
and a few years• following repayment
5: ..�A List of potentiarteinants to be reviewed by the City for inclusion in the development'agreement
6.'' Copies of operating agreements with the anchor: stores. =
7:. . Evidence of permanent financing. We would need the mosX current executed' lending documents, as
well'"as the permanent financing
S. . ='Identification ofwhichproperties are to.be subject to the development, agreement and/or.special taxing
-. district. :.
9_ :Job andwage goals by type, wage range; and number. -
. `10: Name of nationally recognized appraiser to be. proposed by Talisman.
'I would appreciate being:advised as to status of the finalization of an agreement witb.Daytons and the theaters.. At
our meeting you indicated that you 'would be receiving a draft from Dayton and anticipated signing an agreement=
for-theaters.. the earlier your planned, unit development proposal Iasi bE reviewed by City staff, the better able "
.we will be to resolve any issues and � develop a draft agreement that will - reference specific -plan, rather. , than .
• - referencing plans that would require City approval.
Again, thank' you for meeting.last and updating me on, your progress.
$ ..
'chaef.J. McC le . .
City Manager
Mim:sk
enc:
cc: -Mayor & City Council Members
Drag 9/14M Brookdale Tc= Page 1
DRAFT TERM. SHEET: BROOKDALE MALL REDEVELOPMENT
I. Minimum Improvements:
Developer will construct the proposed phases, substantially as described and subject to
specified conditions regarding occupancy and term of occupancy commitments. Specifications
would be articulated to describe the phases with particularity on quality and type of construction and
the general tenancy levels required pursuant to a list of acceptable tenants or type of tenants.
The phases would generally include those described in the materials previously supplied:
A) Phase I:. mall reconfiguration with the creation of open spaces and treatments to be
specified as presented in developer's performance specifications as the same are further
defined the parties.
B) Phase II: '
�f n Remodelin of the e xistin g Davton's store to a specified
level of renovation.
E}-�aso III: x..
=4 - target leasing levels =4 speeifie4 tenant quftRty en4 dwation to
negetiated between the Parties.
The construction schedule will be specified in the agreement as proposed by developer. Phases I and
II by the end of +999 and Phwe E4 eempleted the =4 0. f. the year 2
H. City/EDA Use of Tax Increment Financing i
A) The City would issue a note np?,bje so1fJv frpm net tax increm that was zrenerated
from the redevelopment n_ miect alld available for sucb use in the dish = gable - taxable
the maximum principal amount to be determined
by negotiations based on:
- the ability of the project to generate tax increment
- the existence of legally permissible expenditures under tax increment financing law
- the determination of need for the use of tax increment financing assistance to
overcome obstacles to redevelopment.
B) Conditions for issuance of note bonds and use of tax increment bead proceeds:
1. Phases I- & II are completed as agreed upon between the parties and are fillly
leased for such term and by such types of tenants as have been agreed upon by the
parties. Change orders during construction of the phases varying from the agreed
DrdL 9/14/98 BrookcWe Tam Page 2
upon specifications would require prior City approval.
2. Operating agreements have been executed between the developer and Dayton's far
aeeep bie - equivale*Penneys, Sears, and Kohls for a term not less than the term of
the tax increment bonds note to be issued.
1H by tite type L:.:.:: ..
1. Th., Dayton's
J-5 Developer has submitted evidence of permanent financing for the entire
redevelopment project as well as construction financing, such permanent financing
being for a term not less than the term of the note to be issued.
This requirement would not preclude re- financing, with the City's prior written
approval or pre - payment of the mortgage under terms that protected the City's
interests.
LO. All developer's mortgagees shall consent to all terms of the development
agreement and shall consent to be bound by: the minimum market values, agreement
not to contest real estate tax valuation at or below amount set in agreement, and the
imposition of a special district tax and the agreement therefore, La p ecial taxing
district a greement is enteM.d into tw e Talisman and the City
-7-
and the ilJ N1111+4 ,c v V,Ix V
to previde et least ge of the ray.iavu repwfnient of
, r ,
th ___a _t 2_ _ _ of s _L be Q.._L 1059 C.1Lt$i. (f payments V r t
5,,9.- Developer shall provide proof of equity contributions that may be specified in
the agreements.
No pavments on the note Ands will be &sbwsed or a&vanee made by the City
prior to the completion of Phases I & II and the conditions described above being
satisfied.
III: Agreements Required to Implement the Use of Tax Increment, in addition to, or as part of a
Development Agreement:
A) An assessment agreement specifying a minimum -market value for real estate tax
purposes:
Draft 9/14/98 Bmok(We Tams Page 3
- covering the improvements that will be made '
- the date when the values will be in effect, whether the improvements are completed
or not
- covering the properties upon which the improvements will be made
- covering all properties that will be used to generate increment: this may include the
anchor stores, in which case their agreement to minimum market values and/or
imposition of the special district tax must be negotiated and delineated as applicable
reasen f
offse ac.�EQlQuvf
iJ4 }iiivl.�lw� s V11rLLN�VN 1i VLl1
tax inerement Stibh obligation may be seeured by an S1 i11LiVlib
OPTION
C) Consent and agreement to the creation of a special taxing district pursuant to Laws of
Minnesota 1998 Chapter 389, Article 11, Sections 10 and 28, together with the agreement
that the City may levy a tax in the amount necessary to pay principal and interest and any
penalties on bonds issued pursuant to the Development and Assessment Agreements.
Developer would receive credit for any proceeds received from tax increment applicable to.
the project as outlined in the Development and Assessment Agreements (which agreements
may be merged into one document) and any payment of deficiency payments.
IV. Use of Tax Increment Proceeds.
Tax Incremeat-Bend- proceeds may be used for allowable expenditures, potentiallv_qualified
expenditures would include:
- relocation of utilities
- parking facilities
- acquisition of real property for redevelopment
- funds used for acquisition of real property for redevelopment would be
subject to:
- standard title and environmental review
- developer holding City harmless for environmental liability for
Property
- reversionary right to the City in the event redevelopment of
conveyed property is not completed as required
- soil correction
- demolition
- site preparation
Dmait 9/14/98 Bmokdale Teems Page 4
Contracts for construction or demolition must sep arate out costs for demolition an allowable
=enditures. Such. demolition or other allowable costs serving as the basi for reimbursement
through tax increment m ust be separate documented and ver fled.
V. Other Conditions
A) Job and wage covenants may be required pursuant to State law specifying minimum job
and goals for the redevelopment.
B) Agreement and approval of a Planned Unit Development for .the entire property
comprising Brookdale, which PUD shall include adequate parking and proof of parking
arrangements.
C) The City shall have no participation in the project beyond that enumerated with specificity
in the agreements. Any requests for utility relocation, street improvements, or other
improvements not specifically identified in an agreement shall be solely at developer's
expense and handled by the City as any other request of a similar nature.
D) All agreements shall contain language requiring developer to carry adequate insurance
on the property and construction.
E) Restrictions on transfer or assignment of developer's interest in the property or its
obligations under the agreements.
F) Covenants on market value. and the imposition of a special district tax shall survive
destruction or damage to the improvements on the real property and developer may be
required to demonstrate through insurance, or otherwise that developer will be able to meet
such obligations in the face of damage or destruction to the improvements, including all of
the properties comprising Brookdale, whether owned by developer or others.
G) Demonstration through insurance that developer has loss of business coverage sufficient
in the event of damage or destruction to the property sufficient to pay real estate taxes,
special district taxes, and principal and interest payments and operating costs during re-
construction.
M An obligation to rebuild the property in the event of damage or destruction to the same
quality and value as required under the agreement. Developer's mortgage shall permit and
require developer to rebuild or repair and insurance proceeds shall be escrowed and
disbursed for construction costs until satisfactory (to the City) completion of the rebuilding
or repair. Developers agreements with the anchor stores shall similarly require them to
rebuild or repair to a specified level in the event of damage or total loss. on their properties.
I) Develeper sht4l pay a fee of S for t1te me of iiivi'vuivu
Drag 9114NS BrookcWe Terms Page 5
negotiated. The _ e City will retain 5% of net tax increm o t as an administrative charge
determinin available tax increment for poses of makin navme on the note. 15°�
availab net tam increment (ex clusive of The 5% adiUjnistrative feeLm be used for
housing That is, in computing tax increment available for payments on the n ote. rough -
80% of the n et available increment in the district g enerated bv-the redevelo will be
available.
J) Leases shall not permit lessees to contest ad valorem or special district real estate taxes.
Under all circumstances, developer shall be responsible for the payment of real estate and
special district taxes. such obligation may not be transferred or assigned.
K) All outstanding and potential appeal of real estate taxes at Brookdale must be resolved
on a basis agreeable to the City.
L) Developer shall supply a professional appraisal by a nationally recognized expert
(acceptable to the City) in regional mall valuation. Such appraisal shall demonstrate that the
project, when completed will have a minimum fair market value at least equal to the value
specified in the Development agreement.
999 sq=e feet.
f
Office of the City Manager
3 City o f Brooklyn Center
A great place to start. A great place to stay.
Michael I McCauley
City Manager
November 12, 1998
Mr. James A. Schlesinger, President
Talisman Companies, L.L.C.
1500 San Remo Avenue
Suite 135
Coral Gables, FL 33146
Dear Mr. Schlesinger:
Enclosed please find a draft development agreement. At this point the draft development agreement does
not include special taxing district language. A notation is made on Page 12 in Section 4.3 to reserve a place
for special taxing district language, should you request its use. As has previously been indicated, a
substantial number of exhibits would be required. We are still awaiting draft descriptions from Talisman
Brookdale for the improvements, proposed list of eligible tenants, and several other items.
The attorney drafting the documents for the City is Mary Dyrseth- Ms. Dyrseth may be contacted at 612-
223 -6625. We look forward to resolving the exact terms of a development agreement and the necessary
exhibits.
Si
Michael J. McC ey
City Manager
MJM:sk
enc.
cc: Mary M. Dyrseth, Attorney At Law
cc /enc: Brad Hoffman, Community Development Director
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 - City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 - FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
Office of the City Manager
City of Brooklyn Center
A great place to start. A great place to stay.
Michael I McCauley
City Manager
December 18, 1998
Mr. James A. Schlesinger, President
Talisman Companies, L.L.C.
1500 San Remo Avenue
Suite 135
Coral Gables, FL 33146
Dear Mr. Schlesinger:
Following up on my letter of November 12th, we are still awaiting draft descriptions from Talisman
Brookdale for the improvements, proposed list of eligible tenants, and several other items that would be
appended to the draft development agreement as exhibits. Since the October 26th and November 16th
meetings to update the City Council were canceled by Talisman based on your plans not being at the point
where you would be prepared to make a presentation to the City Council, I would appreciate your estimate
of when you would be in a position to provide an update to the City Council on the plans for renovation.
As we discussed on September 14th, draft descriptions from Talisman Brookdale are needed in order to
complete a review of the proposed development and development agreement to describe the improvements
that have previously been presented by you to the City Council which would form the basis of inducing the
City's financial participation through tax increment financing. At its work session last night, the Council
expressed its concern over the lack of information available to them and the rumors in the community that
tend to question the viability of Talisman's proposals.
c ,
Michael J. Mc uley
City Manager
MJM:sk
cc: Mayor and Council Members
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
City Of Brooklyn Center Office of the City Manager
A great place to start. A great place to stay.
Michael J. McCauley
City Manager
September 16, 1999
Mr. James A. Schlesinger
President
Talisman Companies L.L.C.
1500 San Remo Avenue
Suite 135
Corral Gables, Flordia 33146
Dear Mr. Schlesinger i
In preparation for our meeting of September 23rd, the following items would need to be detailed so as to
work on finalizing a development agreement.
Page 2, a description of the State in which Talisman Brookdale L.L.C. is incorporated would be required.
Additionally, we will require proof of registration with the Secretary of State to do business in the State of
Minnesota. We have not checked for several months, but previous reviews by Bond Counsel has -not found
registration to do business in the State of Minnesota for Talisman Brookdale L.L.C.
Page 3 final payment ag p ym t date would be proposed to be August 1, 2007, or payment of all obligations due under
the note, whichever event occurs first. Also, on page 3 note payment date would mean February 1 and
August 1 of each year commencing on a date that will be determined with respect to the completion of
minimum improvements.
Termination date on page 4 would be the date when all obligations, including business subsidy reporting
obligations have been complied with and the final payment made on the note. This section may require
some additional delineation.
Again on page 5 in Section 2.2 (1), the State of Incorporation will need to be inserted.
Page 7 (1.1), we would suggest expenditure of at least $64 million to construct the minimum improvements.
The minimum improvements will be described in Exhibits D and E. In defining the minimum expenditure,
additional language would be added to the proposed development agreement specifying that this would
reflect hard construction cost of at least $64 million.
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 - FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
Hard construction costs would need to be defined. We generally anticipate defining hard construction costs
as set forth in your proforma to be actual monies spent on construction, exclusive of soft cosh. Included in
the definition of hard costs would be payments to anchor department stores for remodeling to be undertaken
by the anchor stores and some language with respect to acquisition of the JC Penny's store, with a minimum
commitment for tenant improvements by the tenant.
Again, on page 7 (12) construction of phase one of the minimum improvements would have to be specified
with a date that would no later than March 1, 2000. Substantial completion would be by December 30,
2000. We will have to discuss what will go into the market value number in that section. I would anticipate
that the number should be at least $60 million and should be as of January 2,00 1.
Page 7 (13), this section may need to be reworked with respect to the minimum value -of the anchors or a
combined value of the anchors and the mall totaling $90 million. The description for the phase two
improvements described in (13) are to be described in Exhibit E.
Page 9, Section 3.3 would require inserting the dates agreed upon for the same information on page seven.
Page 11, Section. 4.1 would indicate the phase one value of $60 million and an assessment agreement
remaining in effect through 2007.
Page 13, Section 5.1 would specify an interest discount rate of 8 percent in the event of damage, destruction,
or condemnation. Again on page 14, Section 6.10 minimum improvements would be $60 million for
phase one and phase two would be $30 million, unless a combined target is agreed upon.
Page 14, Section 6.1(g) I would suggest using the language from the Dayton's agreement with respect to
80 percent leasing to eligible tenants. We will have to discuss the number of years to be inserted in that
section and the number of years to be inserted in that section for the major anchor stores.
Page 14, Section 6.1(h) developer equity must be specified. It indicates a percentage and I would suggest
replacing the percentage with a number such as $13 million.
Page 15 (k) the market value of the appraisal would be at not less than $90 million for an appraisal indicating
the value of the mall and the anchor retail stores.
Page 15 0) the terms of financing will have to be identified with respect to the number of years of permanent
financing. Permanent financing was required as a condition of tax increment. In reviewing the orix loan
application, that would not appear to be permanent financing, but rather financing for a five year period.
Page 15, Section 6.2 we will have to insert the maximum tax increment financing that would be available
as evidenced by the tax increment revenue note. Additionally, the rate of interest would be specified in (2)
at 8 percent per annum.
Page 16, Section 6.4: a minimum number of full-time equivalent jobs must be created and specified as well
as an hourly wage specified. This will also be replicated in the business subsidy requirements that are now
in place due to Legislation enacted in the 1999 Session of the Minnesota Legislature.
Page 24 the address for notices to Talisman L.L.C. needs to be inserted.
We need to specify Exhibit C with respect to the eligible improvements. The draft document identified what
would be eligible improvements, the Exhibit must now be developed to specify the exact improvements that
will be undertaken, the total of which will exceed the amount of the tax increment note.
Exhibit D needs to be delineated as to the ific lan for the i..::.,1 °�...ents that will be undertaken s
P r o that
Exhibit D can be review and incorporated in the document at this time.
Exhibit E requires specification of the Dayton's store improvements. In reviewing the agreement with
Dayton's, this may be a problematic exhibit and we will need to discuss it
Exhibit F requires a description of eligible tenants. We have previously requested that you delineate the
eligible tenants and a description of how equivalence would be determined. As you are aware. the City,
Council wants to be assured that the tenant base going into and maintained at the mall during the term of
the tax increment agreement will be high quality tenants and not a discount grouping. I note there is
language in the Dayton's agreement that does some specifying, we would probably want additional
specificity and would like you to develop proposed language for review.
Exhibit H will be filled in based upon the amounts and dates set forth in the assessment agreement 'itself.
�'
I am enclosing a copy of the business subsidy policy that will be adopted pursuant to the recent State
Legislation. We will add provisions to the development agreement that will comply with this law. Basically
the subsidy portion of the agreement will have to state the public purpose for the subsidy, the goal of the
subsidy, and the financial obligations of the recipient if the goals are not met. The agreement will require
continued operations at the site where the subsidy is used for at least five years after the benefit date. The
information required for the agreement will be the names and addresses of apparent corporation of the
recipient, if any. Again as indicated the number of jobs and wages must be specified If the recipient fails
to make the subsidy agreement goals there are requirements to pay back assistance. Since this is a pay as
You go note that does not become applicable until all of the conditions are met, this may not be of great
concern if the five years runs from the date of the note, as approved to satisfaction of the note's obligation.
Ia addition to the language contained in the draft agreement that was provided to you last fall that we will
be discussing on the 23rd to develop finalization of language, we will have to develop an additional
provision relating to the percentage fee, participation by the City, and annual certification to the City if you
have received percentage rent or compensation from Dayton's or the theater.
The draft note will need to be amended to add as events of default, a failure to make required reports, a
decrease in value, a violation of occupancy requirements, and some language dealing with the loss of
Dayton's or another major anchor and a suitable replacement were not in place within a required period of
time.
With respect to defining hard costs and auditing hard costs, the agreement will require some methodology
for defining these costs as mentioned previously. W. Thistle will be bring language from the Mall of
America agreement that related to monitoring compliance with that type of provision for discussion.
I look forward to meeting with you next Thursday to discuss finalization of language.
Sincerely,
y
Michael J. McC
City Manager
MJM:mr
c: Robert Thistle
* - COMM.JOLVa'M- DATE NOV-05 -1999 TIME 14:18 P.01
MODE - MEMORY TRANSMISSION START=hGV-05 14 =17 14:18
FILE NO.- 095
NO. COM ABBR/NTWK STATION NAME/ PAGES PRG.NO. PROGRAM NAME
TELEPHONE NO.
001 OK a 13056629616 001/001
- 612 569 3494- eaoawaaa
3 City of Brooklyn Center Office of the City Manager
A great place to start. A great place to stay.
Michael I McCauley
City Manager
November 5, 1999
Mr. James A. Schlesinger
President Talisman Companies L.L.C.
1500 San Remo Avenue
Suite 135
Corral Gables, FL 33146
Dear Mr. Schlesinger.
As a follow -up to my letter of October 27 and the attached redraft of the development agreement, the
remaining Council dates at which a Public Hearing can be scheduled on approval of the development
agreement would be November 22 and December 13. Other than those two dates, a special City Council
meeting would be required. Also, since a Public Hearing must be scheduled we need time to publish and
notify of the proposed hearing date. In our previous conversations, you indicated that you needed to wrap
the matter up in November in order to be able to close on your permanent financing in December. Thus, we
await your provision of exlu' bits so that the document may be finalized. Please advise as to the time line for
completion of this process so that the dates may be scheduled and arrangements may be made for your
presentation and discussion of the final design with the City Council. Thank you for your continued
assistance in this matter.
S*mcere
M Ci
MJMunr
6301 Shingle Creek Pkwy; Brooklyn Center, MN 55430-2199 • City Hall & TDD Number (612) 569 -3$00
Recreation and Community Center Phone & TDD Number (612) 669 -3400 • FAX (612) 569.3494
An Afrmatiue Action1Equal Opportunities Employer
�a o— i �� CS : b I F'M r I�p►� P. 1
TALISMAN COMPANIES,LLC
1500 SAN REMO AVENUE
SUITS 135
CORAL GABLES, FLORIDA 33146
PHONE- (305) 662 -9569
FACSIMILE - (305) 669 -9968
F ACSIMILE TRANSMIT'T'AL SHEET
/Ve- Rley
II
COMPANY: DA TE: Y
"m NUmBR: - TOTAL NO. OF PAG5S INCLUDING COVER:
C 95
PKONB NUNSEP:
R
❑ URGENT ❑ FOR REVIEW 13 PLEASE COMMENT ❑ PLEASE REPLY ❑ PLEASE R=cm
NOMICOM ENTR
9882BB.ud
Vs to V2t LO/27/99 3
is :10;epm FROM P. 2
(10) The Drep
the Authority in will cooperate fully with the City and on of any traffic, parking, public
nuisance, or puby problems which may arise in connection
with - the constru operation of the Project.
(11) The D will expend at least the ca DitB s of con slimQu2n of the
Minimum Improvements,_ to the ohs of t Anchor '
Zenants for r _costs , ao 3 gi tion o •
and demolitio costs of DeveUWant Pro perty or Adiacent
groverty, which costs a r e exclusive o exuipment_or_.other
verav x�al_ �D�,vty and an "so postso such as arch itectural.
Mgineerin nac Pmer;.t,, admini.stratiXe overhe
lega_1 costs
(12) The construction of the Minimum Improvements will
commence on or before 2000, and
'barring Unavoidable Delays, the Minimum Improvements will be
substantially completed by ZZ31 Qy,eber 15. 200 1.
and will result in the Development Property having a market value
of at least Y F O OQg � ,Q �• as of Janua j 2y 20,03: 002
50'1 "" U
(13) The Developer has received assurances from the owner
of the Dayton Btar_q..1gcated gn t § iacgpt Development Property
*1: =- LL, ction of the Dayton Minimum Improvements will
commence on or be o e_ and barring
Unavoidable Delays,'the Daytons Minimum I provements will be
l --- se3srt�laiiy com:pTatle and will result
in the Isa Lam.,., �,d,�; agent Development Property having a market
value of at least Y 130.000,000 as of January 2,
ll4 X n arfi nt thA Dev mPalt Pro perty shall be ased or
used an J an adul -only entetan centpx. adults--c,�
. bookstore : adultg mptiog picture thqAter. mas parlor.
„uarlor or qg=a th e Devel c2per Movenant d agrees that
it 4kU ctive ; in - 4evel th e bevelgp"t Pro »,e_y include the
preservat;icuL of a Who ome PL TJd = f M iRF t cla V lity st�ae for
,the Dev P r9pgxty and Develo sh&U -not c ause the
Develop Prn e t to a for �► event or other vg rpose
Bch is i,}eonsist wi th de cen.y an d comma taste..
988288.Red •
V4 to V21 10/27/99 7
a- i b - y &b d : 02-pm FROM P. 3
ARTICLE III ..
CONSTRUCTION OF MINIMUM IMPROVMWS
Section 3.1. COnS r+ QUOn of Mini= _' =02' m n s The
Developer agrees that it will construct the Minimum Improvements
on the Development Property in conformance with the approved
Construction Plans. The Developer agrees that scope and scale
of the Minimum Improvements to be constructed shall not be
significantly less than the scope and scale of the Minimum
Improvements as detailed and outlined in the Construction Plans
and Exhibit D hereof.
Section 3.2. Co at_ructipn Plana The Developer shall
provide the Authority with Construction Plans, which shall be
subject to approval by the Authority as provided in this Section
�/► 3.2. The Construction Plans shall provide for the Minimum
Improvemen to be constructed on the Development Property, and
s in confg;7mi: w„ tf, the- 4ad evelopment Plan, this
Agre.eMORL,"and all'applicable state and local laws and
regulations. The Authority shall approve the Construction Plans
in writing if: (a) the Construction Plans conform to the terms
and conditions of this Agreement; (b) the Construction Plans S
conform to the terms and conditions of the Redevelopment Plan;
(c) the Construction Plans conform to all applicable federal,
state and local laws, ordinances, rules and regulations; (d) the
Construction Plans are adequate for purposes of this Agreement to
Provide for the 'construction of the Minimum Improvements; and (e)
no Event of Default under the terms of this Agreement has
occurred; provided, however, that any such approval of the
Construction Plans pursuant to this Section 3.2 shall constitute
approval for the purposes of this Agreement only and shall not be
deemed to constitute ap or waiver the Authority PP by Y or the
City with respect to any building, zoning or other ordinances or
regulation of the City, and shall not be deemed to be sufficient
Plans to serve as the basis for the issuance of a building permit
if the Construction Plans are not as detailed or complete as the
plans otherwise required for the issuance of a building permit.
Such Construction Plans must be rejected in writing by the
•
Authority within t mission or shall be
y n f �.f een (15) days of sub
deemed to have been approved by the Authority. If the Authority
rejects the Construction Plans in whole or in part, the Developer
shall submit new or corrected Plans within thirty
(30) days after receipt by the Developer of written notification
of the rejection, accompanied a written statement of the
Authority specifying the respects in which the Construction Plans
submitted by the Developer fail to conform to the requirements of
this Section 3.2. The provisions of this Section 3.2 relating to
approval, rejection and resubmission of corrected Construction
Plans shall continue to apply until the Construction Plans have
been approved by the Authority; provided, however, that in any
event the Developer shall submit Construction Plans which are
approved by the Authority prior to commencement of construction
988288.Red
V4 to V2; 10127/99 $
a - I b - y�db d: O3PM FROM P. 4
Of the Minimum Improvements. Approval of the Construction Plans
by the Authority shall not relieve the Developer of any
obligation to comply with the terms and provisions of this ,
Agreement, or the provision of applicable federal, state and
local laws, ordinances and regulations, nor shall approval of the
Construction Plans by the Authority be deemed to constitute a
waiver of any Event of Default.
If the Developer desires to make any material change in the
Construction Plans after their approval by the Authority, the
Developer shall submit the proposed change to the Authority for
its approval. If the Construction Plans, as modified by the
Proposed change, conform to the approval criteria listed in this
Section 3.2 with respect to the original Construction Plans and
do not constitute a material modification to the scope, size,
materials or use of the Minimum Improvements or to the site plan
therefor; the Authority shall approve the proposed change. Such
change in the Construction Plans shall be deemed approved by the
Authority unless rejected in writing within ten (10} days by the
Authority with a statement of the Authority's reasons for such
rejection.
Section 3.3. Commencement and Completion of nnst"c ice„
Subject to Unavoidable Delays, the Developer shall commence
construction of the Minimum Improvements by
195 March 1 . 2000, or on such other date as the parties shall
mutually agree in writing. Subject to Unavoidable Delays, t
Developer shall have substantially completed the construc on of
Minimum ,Improvements by D....�:.��L,« :r., ;:Zee November 15 : ?. 01.
Time lost as a result of Unavoidable Delays shall be added to
extend this date beyond si, Ibb E• Novembe 15,2 , a
number of days equal to the number of days lost as a result of
Unavoidable Delays. All work with respect to the Minimum
Improvements to be constructed or provided by the Developer on
the Development Property shall be in conformity with the
Construction Plans as submitted by the Developer and approved by
the Authority.
Section 3.4. Certificate of Completion Promptly after the
Developer has demonstrated to the reasonable satisfaction of
Authority that the Minimum, Improvements have been completed in
accordance with the provisions of this Agreement, including the
Construction Plans approved by the Authority, the Authority will
furnish the Developer with a Certificate of Completion, in
substantially the form set forth in Exhibit G attached hereto.
Such Certificate of Completion shall be a conclusive
determination of satisfaction of the agreements and covenants in
this Agreement with respect to the obligations of the Developer
to construct the Minimum Improvements.
If the Authority shall refuse or fail to provide a
Certificate of Completion in accordance with the provisions of
9882fl8.Red
W t0 v21 30/27/99 9
i Wy5 d 144PM FROM P. 5
this Section 3.4, the Authority shall, within ten (10) days after
written request by the Developer, provide the Developer with a
written statement indicating in adequate detail in what respects
the Developer has failed to complete the Minimum Improvements in
'accordance with the provisions of this Agreement, or is otherwise
in default under the terms of this Agreement, and what measures
or acts it will be necessary, in the opinion of the Authority,
for the Developer to take or perform in order to obtain such
Certificate of Completion. The An ry shall have the right to
and all of the hWks a recordQ_of the. Develoi:!&r to vO XjgX
the accurac of re nresentationa made bv_ a De er
Section 2. Zj;Lj 1 and 6. hereof_
Section 3.5. Daytgns Minimum Smurovement The Developer
represents to the Authority that it has received assurances fr
the owner of the Daytons Store locateljn the Ad
Development Property that the owner of the " will
construct the Daytons D....l.. Minimum I W rovemen on the
i.c.YL�,asa Aden
agt Development Property by I , ,
at a cost of at least $ , and that as a result thereof
the cornbinAd market valu o the Lc L w.,-1 _U'
b t j eers r
�. pR�ralonment Px gRgEtv and the Adiacent
Develo , Gov - r-t �la�ill be at 1 Vas�t S901. 000 000 as ' of January
2, The Developer understands that he Authority will not
issue the Tax Increment Note unless and til the Authority
receives evidence satisfactory to the Au hority that the Daytons
Minimum Improvements have been complete and th "the Devel�ame�
Pr ty and the agent . Devnment P qty have_ a cozabined
market va:Lg,t of at 1 9 000 V 0 L V. "- i
988288.Red
V4 to v2; 10/29/99 10
4-15 -1995 8:O4PM FROM P.6
4
ARTICLE IV -
ASSESSMENT AGREEMENT AND—ff'RC
Section 4.1. Rxer-uti of Ass =sment Agreement The
Developer agrees to, and-with the Authority shall execute an
Assessment Agreement in substa- htially the form attached hereto as
Exhibit H as authorized by Minnesota Statutes, Section 469.177,
Subdivision 8, which specifies the Assessor's Minimum Market
Value for the Development Property and the improvements located
thereon and the Minimum Improvements for calculation of real
property taxes. Specifically, the Developer shall agree to a
market value for the Development Property which will result in an
S assessed value as of January 2, i99 = , of not less than
Y �Y 0 (the Assessor's Minimum Market Value).
Nothing in the Assessment Agreement shall limit the discretion of
the assessor to assign a market value to the Development Property
in excess of such Assessor's Minimum Market Value nor prohibit
the Developer from seeking through the exercise of legal or
administrative remedies a reduction in such market value for
property tax purposes, provided however, that the Developer shall
not seek a reduction of such market value below the Assessor's
Minimum Market Value in any year so long as the Assessment
Agreement shall remain in effect. The Assessment Agreement shall
remain in effect until December 31, 2008 2 0 , for taxes payable
through the year X008 l�Q (the "Termination Date " -). The
Assessment Agreement shall be certified by the Assessor for the
City as provided in minnenota Statutes Section 469.177,
Subdivision 8, upon a finding by the Assessor that the Assessor's
Minimum Market Value represents a reasonable estimate based upon
the plans and specifications for the Minimum Improvements to be
constructed on the Development Property and the market value
previously assigned to the Development Property. Pursuant to
Minnesota statutes Section 469.177., Subdivision 8, the
Assessment Agreement shall be filed for record in the office of
the county recorder or registrar of titles of Hennepin County,
and such filing shall constitute.notice to any subsequent
encumbrancer or purchaser of the Development Property, whether
voluntary or involuntary, and such Assessment Agreement shall be
binding and enforceable in its entirety against any such
subsequent purchaser or encumbrancer, including the holder-of the
any mortgage of the Development Property.
Section 4.2. Real Property Taxes
(1) The Developer acknowledges that it is obligated under
law to pay all real property taxes payable with respect to the
Development Property and pursuant to the provisions of the
Assessment Agreement and any other statutory or contractual duty
that shall accrue subsequent to the date of its acquisition of
title to the Development Property and until the Developer's
obligations have been assumed by any other person with the
98B288.Red
V4 to V21 10/27/99 11
4 -1 b -1 �ft d : UbPM FROM P. 7
y 1
4
ART VI .
TAX INiT ASST ANCE PAE's T,,,�O AtTTSORY'IR +
t s
Section 6.1.
N= . The Developer will, dertake and construct the
El ible Improvements on a Development Property at a cost of
not less than � In order to assist with the
costs of the aibie Improvements, the Authority agrees
to provide tax increment assistance to the Developer as further
set forth in this Agreement. The tax increment assistance shall
be paid to.the Developer on a pay -as- you -go basis and the
principal amount shall be equal to the lesser of .(a) fteee,
or (b) the capital costs of the Eligible
2bProvements. The tax increment assistance shall be paid on the
�V\ terms and conditions set forth in Section 3.2 below; provided
however, that the Authority shall be under no obligation to
pr¢� r_aa� • �f +-hg asst4rance ntemplated in this Agreement or
toLa..ssu�l the Tax Increment Note until satisfaction of the
fo ing con=ti preceaenr:
1W (a) The Developer has prepared and provided a copy to
the Authority of the Construction Plans for the Minimum
Improvements;
(b) The Developer has obtained all necessary permits,
licenses, and authorizations necessary to commence and
complete the construction of the Minimum Improvements;
(c) The Authority has received evidence satisfactory
to it that, upon substantial completion of the Minimum
Improvements, the Development Property x...11 haye ear— the
Adi,aci=t Deve Q1 Mga Prover .v will t __,_U=pL guhstant
somvletion of the Dav tom MiniunuLjWrov ave a total,
aaa market value of at least 6
(d) The Developer has paid all of the Legal and
Administrative Expenses;
(e) The Developer shall be in material compliance with
all the terms and provisions of this Agreement;
(f) The construction of the Minimum. «
=mg vementq is completed, and the Authority has issued the
Certificate of Completion pursuant to Section 3.4 hereof;
988288.Red
Vd to V21 10/27/99 14
a- i b- i yy5 is : b6PM FROM P. 8
i
i (g) Th Development Property is at least �_ leased
to Eligible ants pursuant to leases having L�
rema3nincr to at the time of is uance Of th eota Of not
less than years, and Dayton's, Penny's, Sear's and
Kohl's have executed leases of operating agreements with
respect to the ry v1, G.L L_v a. c►�,.:.c�. L.. LL& : �. x l'.� C:yi�����:L � + �►.v�,L. i L 1'
for•- �dlacent Pron_ erty at the time of issuance of the ote
fo ren Airi„ terms of not less than � years;
(h) The Developer shall have B aia
- w.PL anent at least 1,13,000. 000 of its ecrnijv a_ P the
s °s of the Minimum Improvements ELV ►N ...�...�.L ,
(i) The Assessment Agreement is recorded in the
Hennepin County Recorder's office;
(j) The City has approved a planned unit development
for the Development property and received evidence
acceptable to it that provision has been made for adequate
parking for the Project; and
(k) The Authority has received an MAI appraisal from a
nationally recognized expert in regional mall valuation
showing the combined market value of the Development
Property at not less
than ' 0 : an4
(1) The Developer shall have d� .NVi�3L +attic., L., Ll.�
+�- es"aau .scll.l.��dL�.1V11 Vl' i.lmz- rauLlwiiLY, LI.L ;.L l aa.a
.
k,e a u{au`ut ialalat,itay avai L I r L l.:. vvt:�L +�:�Li.,,, vi
y
L c. I ►111ilU Yu�r1 V v �{ uG1aL.y, out.l klc.►. ►u L f ;. « V1
a Lclu+ V aaV1, xtu:� t.11cu� Y�ctls, a1aa 2 011 tbA
f inancinc out i�_ r the f inancina conm fitment attacb,qA
hereto asp bit L
�►{{) 114V iauLLuj. i L y aactCl ,� �,�,�,1 Y t� G Y i��.t ooLr.v.t�aa.�V.� r Lv ;.L,,
1 111 d C 77 cLy L Va 1ra "li u i{ {{{1U{ i{{{�,i V Y Gt{►G1
i1CLVG 1✓GGa1 bValt LA ut..L%;U - ,LL d I.VSL V.L' 111.C�. 1{:0o LLB.. •
.16 L1auL Ll .L,-- naLy ,.Naab ,r• -Lyyrl -y L".7 a 1Uai76GL v %, aL 1CQ.. L
S t iara. a� „ _Tax T nya=e N91%
, 6.1. 'xc" x.Lj-"l er 'R xa vz4,Luv. /L t,. (1) Upon
,satisfa of the conditions in Section 6.1 hereof, the
Authority wi reimburse the Developer for the lesser of
• 0 or the costs of the Eligible Improvements
through the issuance of the Authority's Tax Increment Revenue.
Note in substantially the form attached to this Agreement as
Exhibit I.
l Proposed language to be provided by Schlesinger.
9ae29e.Red
V4 to v2 10/27/99 15
•• �+ • vvrra rKLJM P. 9
(2) The unpaid principal amount of the Note shall bear
simple, non - compounded interest from the date of issuance of the
Note at the rate of 8.00* per annum. Interest shall be computed
on the,basis of a 360 day year consisting of twelve (12) 30 -day
months.
(3) The principal of the Note and interest thereon shall be
p solely from on ,.S LL. , .
.alA"Il b�ll►iL a ►`iti,dtti..l�LLtt:1a1. LV Lflt'. 1 - Lut.' liLr vaa v+ 3 ..�i..r� �wuaa p
M -, JJ cuaC'i suy u y L i %i r-w-1A ,Y jai. ,
L� i " aY 1Ll�.L4. i/aLC v G LL.L A1j fVi Lia Llaa waya.'1..� �,�.��:...r.c:3. c.::►v:,aaaL vi'
LL,_ lax Incrimo•+ :. on each Note Payment Date, and subject
to the provisions of the Note, the City shall pay, against the
accrued and unpaid interest then due on the Note and then to
reduce the principal of the Note, t h_a� ser of jJL 80* of any
Tax Increments received by t ho=ity during the preceding 6
months 00.
qzZ
(4) Notwithstanding an g herein in the Note to the
contrary, the Authority shall be under no obligation to apply or
pay the Tax Increments to the payment of the Note any earlier
than 30 days after it has received the Developer's statement
required by paragraph'(3) above. Any interest accruing on Tax
Increments held by the Authority pending the Note Payment Dates
or receipt of such statement from the Developer shall accrue to
the benefit of the Authority.
(5) The Note shall be :a special and limited obligation of
the Authority and not a general obligation of the Authority, and
only Tax Increments shall be used to pay the principal of and
interest on the Note. If, on any Note Payment Date-, the Tax
Increments for the payment of the accrued and unpaid interest on
the Note are insufficient for such purposes, the difference shall
be carried forward, without interest accruing thereon, and shall
be paid if and to the extent that on a future Note Payment Date
there are Tax Increments in excess of the amounts heeded to pay
the accrued interest then due on the Note_
(6) The, Authority's obligation to make payments on the Note
On any Note Payment Date or any date thereafter shall be
conditioned upon the requirement that (A) there shall not at that
time be an Event of Default that has occurred and is continuing
under this Agreement and (B) this Agreement shall not have been
terminated pursuant to Section 8.2(b).
(7) The Note shall be governed by and payable pursuant to
the additional terms thereof, as set forth in Exhibit I. In the
event of any conflict between the terms of the Note and the terms
of this section 6.2, the terms of the Note shall govern. The
issuance of the Note pursuant and subject to the terms of this
Agreement, and the taking by the Authority of such additional
actions as bond counsel for the Authority may require in
988289-Red
V4 to V2; 10/27/99 16
4 -1 Eb i `JJb tS : 0 /PM FROM P. 10
r
connection therewith, are hereby authorized and approved by the
Authority.
Section 6.3. jjse o£ Tax Incrsmen The Authority and the
City Increments, other than those to
Ci shall be free to use the Tax Incre
which the Developer is entitled pursuant to the provisions of
Section 6.2 hereof, for its administrative expenses and for any
other purpose for which the Tax Increments *may lawfully be used
pursuant to applicable provisions of the Minnesota law. The City
and Authority shall have no other financial participation in the
'
Project other than as specifically set fort h herein. Any utility
relocation, street improvements or other improvements which are
not,included as Eligible Improvements, the costs of which may be
reimbursed, in*whole or in part, with Tax Increm solely at the expense of the Developer. on 4 Seeti 6. . ' In order to satisfy the ;�� +3 +..,
Minnesota Statutes, "OLIS .33 Z LL.: "UAL
e "Business Subs Act"), the Developer a � � L.. aca L ioiY
..Ca. Lm;", &IllaalullAU\ Way= M"a GI U Y L -- wQ4,L %, . A L
4 i.GRM.3 WILL. L vYV YC"LS Vb L L G 3.C.Lr: vZ L la.. Z�j.. ;.C.4..... E. bL 1LC1J
r ctcr.a.ow
and agX ees tat the amount of _�he 0 8us idv" gra nted to
-the Deve greemenZ • a R S4, 8ko. 000__ancl that the
Sun s bgause th0 is not,
puffici fea kiAle for,._the Deve _to undertaj;g without the,
ago Subilidz e Tax .
evelo nt■ dint cict an the t�uY�lic vurxzos of the 1 UNUAAA
ubsidv i$ to encourage %ha coma tiMation o necessary p ublic
±Vrover4qTLxs and to red Ion bighted ar�+� as as replace
atructu =,jllyr_gt stand build3Ws. The Devel a grees t ha - t ® it
eat O. lc mJ& goal (the "G is "): It w l ,r
o in connection with the
develaSt of th Develepment P_gp at an hourly wage of at
least UJJ VAA �d4iyiYiuy L Lc..�r- y wala, +a ..LLIAAa t
laG� «Aa .,Fall Lv- 1..v1 ' 1A.9 v,, Ll ar. Er V r-l.. C.,ar
�L1i L=YE „ aA
d a G1W LOG iaNk,vot.G Lx 1�... L..
`.Ctta.`rG 3{A\. Ullai.LWIAW ;: t 1d WfayG lr.v\. L-� au a.+ saLb"�.a.aao�.
Ia. LL --. GvC.aa L "L L, .,.f wa3 L v L lac c.ra.GAaa.
i C�1ai.i G� YJY Lave �VC 1 ' Lx 1 11 LO+ iaaLv
►. aVi i .� aGa 'Gas
t t ('
1.1 .ay.la aya. �.G11161aL Ccu., io .L a:.1uiAumi LY : .dY kJA.VV!kU-L -t L Va. L a%: a. CkJCa2rauC -aaL
t V 1 LIL= i w.L.LL � of tire ' SLSLGIA�.G kJ1V V;.%^'Q- a by the
'a a a Llay.6i L Y L r i t-t Aaex . H �he ffo .y
1 5�i�. 1 0 CyluGaala:.� vi a.Gk•GG1c:�
, t �
b . - yy 0114 %ji �1aa L Ga.alllaaGaLc C#aarnr' — T?T
���Lt.Ja.VC. a1a41 '. V w`I1.�11i Gl ►IIGaa�N.r..aaL Va_ +. .:.Z.GGi, G.i
LLG vGt►yG LLIQ� L G .
988288.Red
V4 to V2j 10/27/99 17
a -1 b 1 yWO 0: etsrM rKUM P. 1 1
. L.\. Liwi v.;r, arc. vi L a. �aL L,, . C. Ll= bcx.3 - I •�
r � �r�w � aaJ.� •
i � V I. � Li.�
r ' 3 .aZauL ywA,i.1.Y V-rwL La I„ U% L +.uA ;;g ; ;ILla
�ia�v+� ► ►,G� L.�v.a "%w L L 1aG LV,4bL cia LI a�. t�a�a Lia..�+Lx u,u LV UJ�aictL l x
i�y.K�� V.♦ irii4•� • 4 }} �.Liay ia •/i H.�i►LiVaa L 3 iaY y �..' J d:s• `.V ��.i
• �&fi Gu iu UIG►tjv. lty..VQ10 0. LVi LIa 'iC ;.4, 1�V.iCJ
Vi •IDGiLd.JLriaa� QiiZ il.l.J 1Lliiy 1C11YiA.%Qt&K."LJ i� +.�+v3�'..i L �4.. vaa LL,
D two -v m the
r our r�ar��°
B P grew . whicbjp the the date on whi
Xlic : s are cq O. or ( b) the date on wh y± A
hmsiness the meat Pro as improved
X3.nim = Tmqr
If the q2AI are mot M t ._ the Dave to reuay
all or a Dar..t qf,,the Busine Subsid to tbAJuthor 32
interest (pI�n &prestR) O ; the imtjli= t rice deflator defined,
AP Minnesota Statutes Sectio 2 Sub division 2k accru
*•om n.d after Bene t. coM mot_semiannual lv.. Tf tY .
P--mat in fit.. the D-my-nIgWr will rex� a z>ortion of the
fusine SubOj plus Z t�ere_s determ multi blyjacr the
D-usinessss $ v_ by �.f r action . the__tauma o w h a the
xiux�ber of sobs ip.,th Goal were BQt cr at the w�ac
leve3 set - above: 410 the denomina pK of which ,A
ji.e. qagk= of io s s et forth a. 1a Goa l,gL L _.jb a Dev over
agrees tq con-tInue it SM prations opjha Deve l ovment ProRg&&v for
at leas a yea.. the Bent Datc.,
The Devejq2er agrees t (i) eport its vrW res s
gtchieving the foals to thgLjuthorit u i.� the Go are met. or
the BusiUAU-SmbAidXjj repaid. whi,Q�Iever occ ra earlier. (ii)
include in. re vart tb& J mf'ormation- _tired i.n fi 'v >�i p �.
of the Busin&gA Subs . A ct on forms velo v ha Minnesota
,22SX -t anent of Tzade and Sconom ;c Develop. and (iii) send
aoavleted rer " to thV of__the Depa� eat of Tide
and Econg4ic Develop ent and tot uthorit- - .i-mh_ @. Dev - 9-10 r
aarees tQ the revo*-ts no afar thaw Bch 1 of each year
eoarsaaencinu Marc 1. 2000: and within 30 days after the deadline
for meeting WIILGoalsg. 7be Authority ��1'eeB that if i#:� does
receive e r _w ort$,t will _L warnin within
Me wee kpf th . red filing Ote. If w ,%;hip 14 days of the.
Dos�t m arked datgo£ the war es the re are not - ►ad
Develov to vv to the Autho tv a petty of 'S100 for
each O VkMS t3mv until the regW is filed pia to a maximum of
.tj . 0 0 0 . _.._
988288.Red
V4 to V21 1 lg
•. � v � .:.:+:+ v . rrur�-� r Ruin I''. 12
F ectiQ 6.5,,, Plvments to Autho v. in co nsiderati on of
' the a ssistance a riveD to the DeveI.o ursuant to this AqGtgp ment,
/ pav the Aut42&Lty withi 10 days of
the f jXst_ 950.0 1 one half- Qty amount over
SSO-Opp v ner.0 as rents rece ved b tX} Develot�er t 3n X
21 a£ftliat@ in eaa h__ealendar ye r pursuan to Seatiag `
of the a r2Ment attach heret eks bit " tong
o ;g s to t u ority one 0
e tap reeei ed bv_ A Develo r an v h£ itq
affa a ates nurse nt _ of the Weemeent attam '
fth t L (tea " p er Leases ". _. CT'he Devel per ., urther
Agrees th w tho�xt t prior wri convent
x�at ame a or se ar take aMq
other_ a ct.JMOA waIgb _ VMld reduce thp IQ vnt o f the nereentacrw rA„�-
in th Lea oar TeFiba�� 7�se or take any other,
etio than woul redu the likelih_qgd, of such ve
gj t
r beincr„ d to the Rp -
Aect�ion „6.6, TAX Defer s or Ab atemeg,���
;he Dev per a grees as fo llows:
JAL
X 11 not seek administrve review or judicial
review Qf the npl.icab 2it of an _ -ax st atatfl
the t i oa of ILUal nrorPrty c:oA ained o che b evelo�nment
Property de ermin v tax officio to b applieah to
_ he Development Property or the De velog 2r rais a - the,
A&Syolicabij"v_ of any a as a defense in any
proceed. inc].ki4AagAelinauent- t= procee ncre- t�rovidp�-
4F. *ta�tute" �,nes ncludv local ordinance
9 69 0 1 - UtiM le •
` IJLI_ IY., wW not seek ad,jstrat$v reviews oX
jud icl.Q.. , r eviews 2L the constitu tj2nalit'y-.2f a4v taX
Atatu ref a to the taxjLUon of tbp-Deve
Dro v determ aMtax offi eial to bg
aRR; Jaable to the Develo Proper or the
Pavelo = or raALt unconst itutionalit y of an
y W statute as a cl�e in an vroceedinae, includi.na
inatxe t i:ax o rovi. howevg,�c. "tax
statutA " _Sloa s not d ude any_IpR4 ordi cA or
s
:i resol on le cr a tax-
9se2ae.Red
V4 to v2 j 10127/99 19
Tk ql not seen tax derral 04
abatement, either p resent 7. or �r�sneetive v aut zed )IM &r Xin Sta Section or AAY other
Ptate Qr,_fmderaj_U of the taiLition of–t];g
P=111 MM Property ''between —they datp_gg-,oxecution of
Te=imat,iM Date..
XUe Developer. am t ifv owner or tenant of the
,$_ • ao Pro�er b �.v tak. o tie ctions not 12rth in
41 above w e to th,e A unt Pro v. the Autho
ma�y IW end 3t Tax Sncr,�ts to t Develone* v�nc3Ar
-the Note 11 or apy hart of tl;a Tax rnerements until
C ' latte ��A f'n� V resolved_ Anv escrored Tax Incr
may be uW to na anv amour re _ ired .Go be abated shall be
Seed to a =t of pri d unde the Note.
4
a
1
i
9
i .
988288.Red
V4 to V21 3.0/27 2 0
I t—M r KIJM P. 14
j
discharged or denied within sixty (60) days after the
filing thereof; or a receiver, trustee or liquidator of
the Developer, or of the Project, or part thereof,
shall be appointed in any proceeding brought against
the Developer, and shall not be discharged within sixty
(60) days after such appointment, or if the Developer,
shall consent to or acquiesce in such appointment.
(g) The Holder of any mortgage on the Development
Property, or any improvements thereon, or any portion
thereof, commences foreclosure proceedings or accepts a deed
in lieu of foreclosure as a result of any default under the
applicable mortgage documents.
2p anv dUa on or afte ua ?. 20b , the
market ke Value Of
Develo uerty
i d r t
acenk ppy a12 ovcart i.a_.3_qss than S
cho = aut, vacates the Adjacent Development
property and is- no by _4Wher nat .
I=gsm zed retailer acceR&M&Jp to tha.&uthority within 1.2
mom '
than A o fJbe Develognent Pro r i q
leas othez !Jj a occup -is busi sses which is nod
a E ias ble Te nautL
v part o evelo pnt]at Prouerty is leased in
violati2jL_of the covenant in_S�gZion 2.1_clause• (141
MomfL_of
Section 8.2. Remedies on Defa ult. Whenever any Event of
Default referred to in Section s.l occurs and is continuing, the
Authority may take any one or more of the following actions after
the giving of thirty (30) days written notice to the Developer,
but only if the Event of Default has not been cured within said
thirty (30) days, or, if said Event of Default cannot reasonably
be cured within the time,' the Developer fails to give assurances
reasonably satisfactory to the Authority that the Event of
Default will be cured within a period of time reasonably
t acceptable to'the Authority, but in any event not to exceed 90
days;
.4"
y? (a) The Authority may suspend its performance under
this Agreement until it receives assurances from the
Developer, deemed adequate by the Authority, that the
Developer will cure its default and continue its performance
a,
under this Agreement.
988288.Red
V4 to V21 10/27/99 25
Cit o Brookl n Center Office of the City Manager .-
yf y
'A great place to start. A great place to stay.
Michael I McCauley.
City Manager
January 10, 2000
Mr. James A. Schlesinger
President
Talisman Companies L.L.C.
1500 San Remo Avenue
Suite 135
Corral Gables, Flordia 33146
Dear Mr. Schlesinger:
Enclosed please find a revised development agreement to reflect the materials accompanying your recent
facsimile transmittal and our discussion. Pursuant to your comments, substantial completion has been
pushed to 2002 from 2001. Valuation minim have been retained for value as of the end of 2001 so that
the five years of tax increment payments beginning in 2003 and ending with tax receipts generated in 2007
would be maintained That is, the document allows substantial completion in the year 2002, but is premised
on the work being substantially completed to the point that valuation at the end of 2001 is at least 45 million
dollars for the mall and 30 million dollars for the adjacent properties for a total market value at the end of
2001 of 75 million dollars. As indicated, this would be the value target regardless of whether the project
actually was completed. In our discussion you indicated that you felt that the project would in fact be
completed as previously discussed by the end of 2001, but for purposes of your lender you wish to have the
additional leeway for completion into the year 2002.
We are still reviewing the list of eligible tenants. I anticipate having that review completed shortly and
forwarding to you the City's evaluation of which tenants should be stricken from the list.
One change that I made in the development agreement since our conversation is increasing the percentage
of occupancy that must be by eligible tenants from 75 percent to 80 percent. In Section 8.10) the number
80 percent has been substituted for 75 percent.
I look forward to receiving the additional information that you will be supplying for the exhibits and
! materials so that they can be provided to the City Council by the end of this week in anticipation of the City
Council Work Session on Tuesday, January 18th. The City Council Work Session. will be begin at 6:00 p.m.
in Conference Room B at City Hall.
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
Page 2
January 10, 2000
We have discussed geveral times the Council's interest in the exterior treatments. You have previously
indicated that you could direct them to several sites in the Twin Cities Metropolitan area that would be
examples of the type of treatments being proposed as well as alternatives. This information would also be
of assistance to the City Council, especially if they could be directed to those locations prior to the 18th.
Sincerely,
Michael J. McC ey
City Manager
MJM:mr
c: Mayor and Councilmembers
Robert Thistle
BRIGGS & MORGRN Fax:612- 223 -6450 Apr 19 '00 10:47 P.01
W2200 First National Bank Building
332 Minnesota Street
Saint Paul, MN 55101 -1396
BRIGGS AND MORGAN Telephone 651 -223 -6600
Facsimile 651 -223 -6450
PROFESSIONAL ASSOCIATION www.briggs.com
FAX COVER SHEET
.April 19, 2000
Please deliver the following 4 paae(s) (This includes this cover sheet)
RECIPIENTS
Name Firm Phone Number Fax Number
Michael McCauley City of Brooklyn Center 763 -569 -3300 763 -569 -3494
FROM Jenny Grain
PHONE 651- 223 -6484
INSTRUCTIONS OR COMMENTS
If you have problems receiving these pages, please contact us at 651- 223 -6645 and ask to speak with the fax
operator.
BRIGGS & MORGAN Fax:612- 223 -6450 Apr 19 '00 10:47 P.02
MEMORANDUM
T0: Mary M. Dyrseth
FROM: Jenny Grain
DATE: April 19, 2000
RE: Brookdale Development Agreement - Terms of Leases and Operating
Agreements
QUESTION
Do the term provisions of the existing leases and operating agreements with anchor
stores satisfy the requirements of Section 6.1(g) of the Development Agreement?
CONCLTJSION
The operating agreement between Dayton's and Talisman does not comply.. All other
agreements appear to satisfy the literal requirements of Section 6.1(g) of the Development
Agreement.
ANALYSIS
Section 6.1(g) of the Development Agreement provides that the Brooklyn Center
Economic Development Authority is under no obligation to provide any of the assistance
contemplated in the Development P .. Agreement or to issue the Tax Increment Note until
Dayton's, Penney's, Sear's and Kohl's have executed leases or operating agreements at the
time of issuance of the Note for remaining term. s of not less than 3 years.
Pennev's
Penny's has entered into a Lease Amendment Agreement with Talisman dated July
30,1999 which, in Section 3, provides that the Lease dated July 26, 1965, as amended by the
Lease Amendment Agreement and all prior amendments, shall continue for a term
commencing July 30, 1999 and ending August 1, 2009. Pursuant to Section 9, Penny's is
1159605.1
BRIGGS & MORGRN Fax:612- 223 -6450 Rpr 19 '00 10:47 P.03
only required to overate its department store through July 31, 2002. The language in Section
6.1(g) of the Development Agreement relates to the term of the Lease. Penny's has the
obligation to lease the property even if they are not operating the department store.
Consequently, the Lease, as amended by the Lease Amendment Agreement, satisfies the
literal requirements of Section 6.1 g of the Development Agreement but ma (b) P �' y not satisfy the
intent if the City wants Penney's to continue to operate in the space. The Note would have
to have been issued on or about July 31, 1999 to satisfy a three year operating requirement.
If the requirement is simply to have a lease for 3 years, then the Lease, as amended by the
Lease Amendment Agreement, satisfies the requirement if the Note is issued by August 1,
2006.
Sear's
Sear's has entered into an Amendment to Operating Agreement with Talisman dated
April 30, 1999 which, in Section 1(i), provides .that the Operating Agreement dated
November 21, 1960, as amended by the Amendment to Operating Agreement and all prior
amendments, shall be reinstated and continue for a tend ending December 31, 2009. As in
the Penny's Lease Amendment Agreement, Section 1(v) provides that Sear's is only
required to operate its department store through December 31, 2002.
Kohl's
Kohl's, apparently as successor to Federated Department Stores, has entered into a
Ground Lease Agreement with Equitable Real Estate Shopping Centers, (presumably
Talisman is a successor) dated June 24, 1987 which, in Section 1. 1, provides that the Lease
shall continue for a term commencing June 24, 1987 and ending January 31,. 2010.
Consistent with the other stores' agreements, the operatine provisions only applied for five
years starting the date the department store opened to the public. We do not know when the
store was opened to the public so the operating tern may not have three years remaining.
Mervvn's
Mervyn's is not listed in Section 6.1(g) of the Development Agreement but has
entered into a Separate Agreement to Operating Agreement with Talisman dated September
15, 1999 which, in Section 8.9, provides that the Operating Agreement dated August 15,
1966, as amended by the Amendment to Operating Agreement and all prior amendments,
shall continue for a term ending December 31, 2009. Unlike the other stores' agreements
b f
the Mervyn's Operating Agreement does not provide a separate term for the operation of its
department store. The Operating Agreement, as amended by the Separate Agreement to
)159608.1
BRIGGS & MORGRN Fax :612- 223 -6450 Apr 19 '00 1048 P.04
Operating Agreement, will satisfy the requirements of Section 6.1(g) of the Development
Agreement if the Note can be issued by December 31, 2006.
Davton's
Dayton's entered into an Operating Agreement with Equitable Real Estate Shopping
Centers, (Talisman is a successor) dated May 18, 1978 which has a terns ending July 31,
1996 but which continues so long as the mall is operated as a mall and Dayton's operates as
a department or retail store until one of the parties gives a ninety -day termination notice. In
addition, Dayton's has entered into a Second Separate Agreement to Operating Agreement
with Talisman dated August 31, 1999 which, in Section 15.2(A), provides that Dayton's will
overate its department store for a period commencing on the date of completion of the
remodeling and ending no later than January 31, 2003.
Assuming that the intent behind Section 6.1(g) of the Development Agreement was
to show that the anchor stores have at least a three year obligation to operate their department
stores in their spaces in the mall, the January 31, 2003 term would be relevant for purposes
of determining compliance with Section. 6.1(g) of the Development Agreement. However,
to satisfy the requirements of Section 6.1(g) of the Development Agreement, the Note would
have to have been issued by January 31, 2000. Since the Note was not issued at that time,
the term of the agreement with Dayton's is too short.
1159608.1
CITY COUNCIL MEETING Public Copy
• City of Brooklyn Center
April 24, 2000 AGENDA
1. Informal Open Forum With City Council - 6:45 p.m.
- provides an opportunity for the public to address the Council on items which are not on the
agenda. Open Forum will be limited to 15 minutes, it is not televised, and it may not be
used to make personal attacks, to air personality grievances, to make political endorsements,
or for political campaign purposes. Council Members will not enter into a dialogue with
citizens. Questions from the Council will be for clarification only. Open Forum will not
be used as a time for problem solving or reacting to the comments made but, rather, for
hearing the citizen for informational purposes only.
2. Invocation - 7 p.m.
3. Call to Order Regular Business Meeting
4. Roll Call
5. Council Report
• 6. Approval of Agenda and Consent Agenda
-The following items are considered to be routine by the City Council and will be enacted
by one motion. There will be no separate discussion of these items unless a Councilmember
so requests, in which event the item will be removed from the consent agenda and
considered at the end of Council Consideration Items.
a. Approval of Minutes
- Councilmembers not present at meetings will be recorded as abstaining from the vote
on the minutes.
1. April 10, 2000 - Study Session
2. . April 10, 2000 - Regular Session
b. Licenses
C. 1998 Local Law Enforcement Block Grant
d. Resolution Awarding Bids for Furnishings at the New Brooklyn Center Liquor Store
e. Resolution Awarding Bid for Point of Sale and Inventory Software, Hardware, and
SVCS for Brooklyn Center Liquor Stores
•
CITY COUNCIL AGENDA -2- April 24, 2000
f. Resolution Approving Change Order Nos. 2 and 3, Improvement Project No. 1999 -19,
Contract 99 -M, Rehabilitation of Wellhouse Nos. 5 & 6
g. Resolution Declaring a Public Nuisance and Ordering the Removal of Diseased Trees
7. Public Hearings
a. An Ordinance Relating to the Location of Secondhand Goods Dealers, Pawn Shops,
Currency Exchanges, Tattoo Parlors and Body Piercing Establishments, and Massage
Parlors; Amending Brooklyn Center City Code Sections 23-610,23-661, 23-2309,23-
2203, and 23 -1709
-This item was first read on March 27, 2000; published in the official newspaper on
April 5, 2000; and is offered this evening for a second reading and public hearing.
- Requested Council Action:
-Open the public hearing.
-Take public input.
-Close the public hearing.
• - Motion to adopt ordinance.
b. Consideration of Issuance of Currency Exchange License to C -N -P Northwest, Ltd.
dba Cash -N -Pawn, 1964 57th Avenue North, Brooklyn Center, Minnesota
1. Resolution to Deny Issuance of a Currency Exchange License to C -N -P
Northwest, Ltd. dba Cash -N -Pawn, 1964 57th Avenue North, Brooklyn Center,
Minnesota
- Requested Council Action:
- Continue the public hearing.
-Take public input.
-Close the public hearing.
- Motion to adopt resolution.
8. Council Consideration Items
a. Resolution Expressing Recognition and Appreciation for the 27 Years of Dedicated
Public Service of Sergeant John Ptak with the City of Brooklyn Center
- Requested Council Action:
- Motion to adopt resolution.
b. Resolution Expressing Recognition and Appreciation for the 13 Years of Dedicated
Public Service of Officer John Rayl with the City of Brooklyn Center
• - Requested Council Action:
- Motion to adopt resolution.
. CITY COUNCIL AGENDA -3- April 24, 2000
C. Community Center Fitness Equipment
- Requested Council Action:
- Motion to authorize expenditure of $25,000.
d. Resolution Expressing Appreciation for the Gift of the Brooklyn Center Women's
Club in Support of Scholarship Opportunities for Summer Youth Sports and
Swimming Classes
- Requested Council Action:
- Motion to adopt resolution.
e. Tobacco Prevention Project
- Requested Council Action:
- Motion to support project.
f. Report on 2000 Code Enforcement Sweep
- Requested Council Action:
• -None, report only.
g. Resolution Accepting Bid and Awarding a Contract, Improvement Project Nos. 2000 -01,
02, and 03, Contract 00 -B, Garden City Central Street, Storm Drainage, and Utility
Improvements
- Requested Council Action:
- Motion to adopt resolution.
h. An Ordinance Amending Chapter 35 of the City Ordinances Regarding Church and
Educational Uses
- Requested Council Action:
- Motion to approve first reading of ordinance and set second reading and public
hearing for May 22, 2000.
9. Adjournment
i
City Council Agenda Item No. 6a
i
illl
• MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF BROOKLYN CENTER IN THE COUNTY
OF HENNEPIN AND THE STATE OF MINNESOTA
STUDY SESSION
APRIL 10, 2000
CONFERENCE ROOM B
CALL TO ORDER STUDY SESSION
The Brooklyn Center City Council met in study session and was called to order by Mayor Myrna
Kragness at 6:00 p.m.
ROLL CALL
Mayor Myrna Kragness, Councilmembers Debra Hilstrom, Kay Lasman, Ed Nelson, and Robert
Peppe. Also present: City Manager Michael J. McCauley, Assistant City Manager Jane Chambers,
and Recording Secretary Maria Rosenbaum.
CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS
• Councilmember Nelson requested that consent agenda item 6d, Resolution Authorizing Professional
Services for the Design of Improvement Project Nos. 2000 -16, Palmer Lake Ponds and 2000 -17,
Palmer Lake Trail, be removed and added to council consideration as item 81.
CITY CALENDAR
City Manager Michael McCauley informed the Council that staff will be working to ensure that the
calendar events for each department are correct.
CITY COUNCIL VOICE MAIL
Council discussed the recorded messages for their voice mail and the possibility of having them
shortened. Mr. McCauley informed the Council that one way to shorten a message would be to have
no alternative number provided.
• 04/10/00 -1- DRAFT
MISCELLANEOUS
Mr. McCauley informed the Council that the PCA is researching a petroleum odor in the area of 70th
Avenue North.
Councilmember Lasman asked about hazardous trees on private property. Mr. McCauley informed
the Council that if there is a tree on private property that is hazardous, the City could be involved;
however, if it is not hazardous, the tree is the responsibility of the property owner.
Mayor Kragness informed the Council that she had spoken to the Manager at Rainbow Foods about
the trash coming from the parking lot. The Manager did inform her that they would try to take care
of the problem.
Councilmember Hilstrom asked about the payment to Dayton's by James Schlesinger. Mr.
McCauley had not heard whether Dayton's received the payment or not and will check into that and
report back to the Council.
Council discussed the recent Prayer Breakfast that was held at the Earle Brown Heritage Center. It
was noted that some of the food and service was not satisfactory and that staff should be contacted
to be made aware of these matters.
Assistant City Manager Jane Chambers discussed the procedure to be used for the mock City
Council meetings with the 9th grade students at City Hall.
ADJOURNMENT
The Council adjourned the study session and continued to the informal open forum at 6:47 p.m.
City Clerk Mayor
04/10/00 -2- DRAFT
• MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF BROOKLYN CENTER IN THE COUNTY
OF HENNEPIN AND THE STATE OF MINNESOTA
REGULAR SESSION
APRIL 10, 2000
CITY HALL
1. INFORMAL OPEN FORUM WITH CITY COUNCIL
CALL TO ORDER INFORMAL OPEN FORUM
The Brooklyn Center City Council met in informal open forum at 6:47 p.m.
ROLL CALL
Mayor Myrna Kragness, Councilmembers Debra Hilstrom, Kay Lasman, Ed Nelson, and Robert
Peppe. Also present: City Manager Michael McCauley, Assistant City Manager Jane Chambers,
Public Works Director Diane Spector, City Attorney Charlie LeFevere, and Recording Secretary
Maria Rosenbaum.
• No one wished to address the Council.
ADJOURN INFORMAL OPEN FORUM
A motion by Councilmember Peppe, seconded by Councilmember Hilstrom to adjourn informal
open forum at 6:48 p.m. Motion passed unanimously.
2. INVOCATION
A representative from Maranatha Care Center provided the invocation.
3. CALL TO ORDER REGULAR BUSINESS MEETING
The Brooklyn Center City Council met in regular session and was called to order by Mayor Myrna
Kragness at 7:02 p.m.
04/10/00 -1- DRAFT
•
4. ROLL CALL •
Mayor Myrna Kragness, Councilmembers Debra Hilstrom, Kay Lasman, Ed Nelson, and Robert
Peppe. Also present: City Manager Michael McCauley, Assistant City Manager Jane Chambers,
Public Works Director Diane Spector, City Attorney Charlie LeFevere, and Recording Secretary
Maria Rosenbaum.
5. COUNCIL REPORT
Councilmember Nelson reported that he attended the Annual National League of Cities Conference
and that he was fortunate to hear the President of the United States speak and the opportunity to
speak to House of Representative Jim Ramstad while attending the conference.
Mayor Kragness reported that the Prayer Breakfast that was held on April 7, 2000, was very well
attended and commended the Committee for all its hard work.
6. APPROVAL OF AGENDA AND CONSENT AGENDA
Mayor Kragness requested that consent agenda item 6d, Resolution Authorizing Professional
Services for the Design of Improvement Project Nos. 2000 -16, Palmer Lake Ponds and 2000 -17,
Palmer Lake Trail, be removed to council consideration item 81.
A motion by Councilmember Nelson, seconded by Councilmember Hilstrom to approve the agenda
and consent agenda as amended. Motion passed unanimously.
6a. APPROVAL OF MINUTES
A motion by Councilmember Nelson, seconded by Councilmember Hilstrom to approve the minutes
from the March 27, 2000, study session and regular session, the March 20, 2000, general work
session with the Commission Chairs, and the April 3, 2000, general work session. Motion passed
unanimously.
6b. - LICENSES
A motion by Councilmember Nelson, seconded by Councilmember Hilstrom to approve the
following list of licenses. Motion passed unanimously.
04/10/00 -2- DRAFT
•
MECHANICAL
Advanced Energy Serv, Inc. 3650 Annapolis Lane, Plymouth
Air Corp. 4112 83rd Avenue N, Brooklyn Park
Albers Mechanical Services 200 West Plato Boulevard, St. Paul
Blaine Heating and Air 13562 Central Avenue NE, Anoka
Condor Fireplace and Stone Co. 8282 Arthur Street NE, Spring Lake Park
Dave's Appliance Htg & Air 1601 37th Avenue NE, Columbia Heights
Doody Mechanical, Inc. 520 Front Avenue, St. Paul
General Sheet Metal Corp. 2330 Louisiana Avenue N, Minneapolis
Midwest Maintenance & Mech. 710 Pennsylvania Avenue S, Minneapolis
Y p
NeMech Companies, Inc. 1633 Eustis Street, St. Paul
MOTOR VEHICLE DEALERSHIP
R.L. Brookdale Motors 6801 Brooklyn Boulevard
Brookdale Dodge 6800 Brooklyn Boulevard
Brookdale Ford, Inc. 2500 County Road 10
Iten Chevrolet Company 6701 Brooklyn Boulevard
I
RENTAL
Renewal:
1316 68th Lane N Valerie Blount MCKissak
5470 72nd Circle Myrna Hlady
S 5200 France Avenue N Christian Knutson
5736 Logan Avenue N Steve Loechler
6907 W Palmer Lake Dr Thomas Mylan, Lorraine Owings
Unity Place Townhomes CHDC Limited Partnership
Initial:
5837 Brooklyn Blvd Duane Ferguson
SIGN HANGER
All -Brite Sign, Inc. 13325 Commerce Boulevard, Rogers
Martin Sign, Inc. 13490 Thrush Street NW, Andover
6c. APPROVAL OF APPLICATION FOR WILLOW LANE PTA FOR
EXCLUDED BINGO AT WILLOW LANE ELEMENTARY SCHOOL ON
APRIL 28, 2000
A motion by Councilmember Nelson, seconded by Councilmember Hilstrom to approve application
for an excluded bingo license for an event to be held on April 28, 2000, at Willow Lane Elementary
School. Motion passed unanimously.
04/10/00 -3- DRAFT
•
6d. RESOLUTION AUTHORIZING PROFESSIONAL SERVICES FOR THE
DESIGN OF IMPROVEMENT PROJECT NOS. 2000 -16, PALMER LAKE
PONDS AND 2000 -17, PALMER LAKE TRAIL
This item was removed and placed as council consideration item 81.
6e. RESOLUTION PROHIBITING PARKING ON 63RD AVENUE NORTH,
BEARD AVENUE NORTH TO BROOKLYN BOULEVARD
RESOLUTION NO. 2000-63
Councilmember Nelson introduced the following resolution and moved its adoption:
RESOLUTION PROHIBITING PARKING ON 63RD AVENUE NORTH, BEARD AVENUE
NORTH TO BROOKLYN BOULEVARD
The motion for the adoption of the foregoing resolution was duly seconded by Councilmember
Hilstrom. Motion passed unanimously.
6f. RESOLUTION AUTHORIZING EXECUTION OF A JOINT POWERS
AGREEMENT WITH THE METROPOLITAN COUNCIL FOR
INSTALLATION, REPLACEMENT, AND MAINTENANCE OF BUS STOP
SIGNAGE
RESOLD TION NO. 2000-64
Councilmember Nelson introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING EXECUTION OF A JOINT POWERS AGREEMENT WITH
THE METROPOLITAN COUNCIL FOR INSTALLATION, REPLACEMENT, AND
MAINTENANCE OF BUS STOP SIGNAGE
The motion for the adoption of the foregoing resolution was duly seconded by Councilmember
Hilstrom. Motion assed unanimously.
P
6g. RESOLUTION AWARDING BIDS FOR PAINTING AND CARPENTRY FOR
THE NEW BROOKLYN CENTER LIQUOR STORE
RESOLUTION NO. 2000-65
Councilmember Nelson introduced the following resolution and moved its adoption:
04/10/00 -4- DRAFT
• RESOLUTION AWARDING BIDS FOR PAINTING AND CARPENTRY FOR THE NEW
BROOKLYN CENTER LIQUOR STORE
The motion for the adoption of the foregoing resolution was duly seconded by Councilmember
Hilstrom. Motion passed unanimously.
7. PUBLIC HEARINGS
7a. AN ORDINANCE RELATING TO THE REGULATION OF POOL TABLES;
REPEALING CITY CODE SECTIONS 23- 201.01 AND 23- 201.02 AND
AMENDING SECTION 23 -2102
City Manager Michael McCauley discussed this ordinance repealing City Code Sections 23- 201.01
and 23- 201.02 and amending Section 23 -2102 would remove sections regarding pool tables and
amend the definition of amusement devices to include pool or billiard or bumper pool tables and
bring pool tables under the same regulation as amusement devices.
A motion by Councilmember Lasman, seconded by Councilmember Nelson to open the Public
Hearing. Motion passed unanimously.
No one wished to address the Council.
S A motion by Councilmember Lasman, seconded by Councilmember Hilstrom to close the Public
Hearing. Motion passed unanimously.
ORDINANCE NO. 2000-03
Councilmember Lasman introduced the following ordinance and moved its adoption:
AN ORDINANCE RELATING TO THE REGULATION OF POOL TABLES; REPEALING CITY
CODE SECTIONS 23- 201.01 AND 23- 201.02 AND AMENDING SECTION 23 -2102
The motion for the adoption of the foregoing ordinance was duly seconded by Councilmember
Hilstrom. Motion passed unanimously.
04/10/00 -5- DRAFT
•
7b. CONSIDERATION OF ISSUANCE OF CURRENCY EXCHANGE LICENSE •
TO C -N -P NORTHWEST, LTD. DBA CASH -N -PAWN, 1964 57TH AVENUE
NORTH, BROOKLYN CENTER, MINNESOTA
Mr. McCauley discussed the Council approved the first reading of An Ordinance Relating to the
Location of Secondhand Goods Dealers, Pawnshops, Currency Exchanges, Tattoo and Body Piercing
Establishments, and Massage Parlors; Amending Brooklyn Center City Code Sections 23 -610, 23-
661, 23 -2309, 23 -2203, and 23 -1709, which would clarify that the intent of the current City
ordinance is not to allow pawnshops and secondhand goods dealers to occupy the same premises.
The ordinance also addresses prohibiting location on the same parcel even if separated by 300 feet.
Mr. McCauley suggested that the Council hold the public hearing which is required to consider the
currency exchange license submitted by C -N -P Northwest, LTD. dba Cash -N -Pawn and solicit
testimony from interested persons and that once the public hearing is closed the City Council
continue the public hearing to the April 24, 2000, meeting following the adoption of the proposed
ordinance amendment.
A motion by Councilmember Lasman, seconded by Councilmember Hilstrom to open the Public
Hearing. Motion passed unanimously.
No one wished to address the Council.
A motion by Councilmember Nelson, seconded by Councilmember Lasman to continue the public
hearing to April 24, 2000. Motion passed unanimously.
8. COUNCIL CONSIDERATION ITEMS
8a. RESOLUTION EXPRESSING RECOGNITION AND APPRECIATION OF
JAMES LANO FOR HIS SERVICE ON THE HOUSING COMMISSION
RESOLUTION NO. 2000 -66
Councilmember Hilstrom introduced the following resolution and moved its adoption:
RESOLUTION EXPRESSING RECOGNITION AND APPRECIATION OF JAMES LANO FOR
HIS SERVICE ON THE HOUSING COMMISSION
The motion for the adoption of the foregoing resolution was duly seconded by Councilmember
Nelson. Motion passed unanimously.
04/10/00 -6- DRAFT •
8b. RESOLUTION EXPRESSING APPRECIATION FOR THE GIFTS OF THE
. BROOKLYN CENTER LIONS CLUB IN SUPPORT OF THE ANNUAL
EARLE BROWN DAYS PARADE AND ENTERTAINMENT IN THE PARK
ACTIVITIES
Mayor Kragness discussed the Brooklyn Center Lions Club had presented the City donations of
$5,000 to be used for the annual Earle Brown Days Parade and $1,750 to be used for the annual
Entertainment in the Park activities and that this resolution would acknowledge the donations with
gratitude.
RESOLUTION NO. 2000-67
Councilmember Hilstrom introduced the following resolution and moved its adoption:
RESOLUTION EXPRESSING APPRECIATION FOR THE GIFTS OF THE BROOKLYN
CENTER LIONS CLUB IN SUPPORT OF THE ANNUAL EARLE BROWN DAYS PARADE
AND ENTERTAINMENT IN THE PARK ACTIVITIES
The motion for the adoption of the foregoing resolution was duly seconded by Councilmember
Peppe. Motion passed unanimously.
8c. RESOLUTION SUPPORTING STATE LEGISLATIVE ACTION IN 2000 TO
i INCREASE STATE HIGHWAY AND TRANSPORTATION FUNDING
Mr. McCauley discussed the City had been requested to approve a resolution supporting a long -term
increase in State funding for highways and transportation for the State Legislative action in 2000 and
that this resolution would strongly urge Governor Ventura and the State Legislature to complete the
good work they have begun and dedicate themselves to approving significant highway funding in
the 2000 Legislative Session.
RESOLUTION NO. 2000-68
Councilmember Lasman introduced the following resolution and moved its adoption:
RESOLUTION SUPPORTING STATE LEGISLATIVE ACTION IN 2000 TO INCREASE STATE
HIGHWAY AND TRANSPORTATION FUNDING
The motion for the adoption of the foregoing resolution was duly seconded by Councilmember
Nelson. Motion passed unanimously.
04/10/00 -7- DRAFT
•
8d. RESOLUTION AMENDING THE 2000 CENTRAL GARAGE BUDGET TO
PROVIDE FOR THE ACCELERATED REPLACEMENT OF THE SMART
RADAR TRAILER
Mr. McCauley discussed this resolution would amend the 2000 central garage budget to provide for
the accelerated replacement of the SMART trailer and authorize the sale of the existing unit to
LeSeuer County.
RESOLUTION NO. 2000-69
Councilmember Hilstrom introduced the following resolution and moved its adoption:
RESOLUTION AMENDING THE 2000 CENTRAL GARAGE BUDGET TO PROVIDE FOR THE
ACCELERATED REPLACEMENT OF THE SMART RADAR TRAILER
The motion for the adoption of the foregoing resolution was duly seconded by Councilmember
Lasman. Motion passed unanimously.
8e. RESOLUTION RECOGNIZING THE DESIGNATION OF BROOKLYN
CENTER AS A TREE CITY USA AND PROCLAMATION DECLARING
ARBOR DAY /ARBOR MONTH
Mr. McCauley reported that this will be the eighth year that the City or Brooklyn Center has been ,
designated as a Tree City USA by the National Arbor Day Foundation. This resolution would
recognize and accept the designation of Tree City USA on behalf of the residents of Brooklyn
Center; reaffirm its committee to urban forestry; and directs staff to, with the constraints of existing
resources, continue a high level of maintenance and reforestation efforts; and commends City staff
and the residents of Brooklyn Center for their work in maintaining and enhancing Brooklyn Center's
urban forest.
RESOLUTION NO. 2000 -70
Councilmember Lasman introduced the following resolution and moved its adoption:
RESOLUTION RECOGNIZING THE DESIGNATION OF BROOKLYN CENTER AS A TREE
CITY USA
The motion for the adoption of the foregoing resolution was duly seconded by Councilmember
Nelson. Motion passed unanimously.
04/10/00 -8- DRAFT
•
• A motion by Councilmember Lasman, seconded by Councilmember Nelson to adopt proclamation
declaring April 28, 2000, as Arbor Day and May 2000 as Arbor Month. Motion passed unanimously.
8f. RESOLUTION FOR POTENTIAL TRAILS, GREENWAYS AND PARKS IN
THE FIRST TIER COMMUNITIES
Mr. McCauley discussed this resolution would support the efforts of the Suburban Hennepin
Regional Park District to implement a First Tier System of trails, greenways, and parks and endorses
the plan for said system.
RESOLUTION NO. 2000-71
Councilmember Lasman introduced the following resolution and moved its adoption:
RESOLUTION FOR POTENTIAL TRAILS, GREENWAYS AND PARKS IN THE FIRST TIER
COMMUNITIES
The motion for the adoption of the foregoing resolution was duly seconded by Councilmember
Nelson. Motion passed unanimously.
8g. MAYORAL APPOINTMENT TO NORTHWEST SUBURBS CABLE
COMMUNICATIONS COMMISSION
Mayor Kragness requested ratification of Rex Newman to the Northwest Suburbs Cable
Communications Commission.
A motion by Councilmember Lasman, seconded by Councilmember Peppe to ratify mayoral
nomination of Rex Newman. Motion passed unanimously.
8h. STAFF REPORT RE: EARTH DAY AND PROCLAMATION DECLARING
EARTH DAY
Public Works Director Diane Spector reported on the City operations in which had made the City
more earth - friendly and requested that the Council adopt the proclamation declaring Earth Day in
Brooklyn Center as April 22, 2000.
Mayor Kragness informed the audience that in observance of the 30th anniversary celebration of
Earth Day, volunteers for the Adopt- A- Park/Trail/Street Program will participate in the spring kick-
off event Saturday April 22, 2000, and that participating groups will be treated to coffee, juice and
rolls at the Community Center before they begin the cleanup along with every youth participant
receiving a certificate recognizing their participation.
04/10/00 -9- DRAFT
•
Councilmember Lasman asked if there were persons interested in participating and did not belong •
to any group if they were welcome to attend the event on April 22, 2000. Ms. Spector informed the
Council that yes, anyone could volunteer and that interested persons should be at the Community
Center at 9 :00 a.m. on Saturday, April 22, 2000.
A motion by Councilmember Lasman, seconded by Councilmember Nelson to adopt proclamation
declaring April 22, 2000, as Earth Day in Brooklyn Center. Motion passed unanimously.
8i. STATUS REPORT FOR COMMERCIAL ZONING REORGANIZATION
Mr. McCauley reported that this item consisted of two matters. The first thing was the commercial
zoning district reorganizations recommended by the Planning Commission. It was the consensus
of the Planning Commission that four districts proposed in a report be reshuffled so that they
represent a progression from the least intense district to the most intense district as follows:
C -1 Neighborhood Commercial District
C -2 Brooklyn Boulevard Commercial District
C -3 Central Business District
C -4 Highway Commercial District
Mr. McCauley requested direction from the Council as to whether or not the Planning Commission
should move forward with the studying of the four districts. It was the consensus of the Council to
have the Planning Commission move forward with their study.
The second matter was an ordinance amendment regarding church and educational uses. A draft
ordinance amendment had been prepared which reflects the Planning Commission's
recommendation and was included in the Council's materials for review. The draft ordinance would
allow church uses in residential een the case as "special uses ". Churches
zonin districts as has b e p c
g
would continue to be uses allowed in the C -1 and C -2 zoning districts. Educational uses in
commercial districts such as the C -1 and C -2 districts, are clarified by making a distinction between
public and private elementary and secondary schools and other educational uses which would
include post secondary schools, business schools, and trade schools.
Councilmember Hilstrom asked if this change relates to religious uses. Mr. McCauley informed the
Council that under C -1 districts, religious uses are permitted and that only the post secondary uses
would be changed. With respect to the suggested provisions regarding educational uses,
Councilmember Hilstrom asked if the Council were to proceed with adopting this ordinance if the
ordinance could be amended at a later date. Mr. McCauley informed the Council that the draft
ordinance could be put on the agenda for April 24, 2000, and that the Council could have further
discussion on the matter at that time.
04/10/00 -10- DRAFT •
• It was the consensus of the Council to have this ordinance discussed and introduced at the April 24,
2000, meeting along with setting the public hearing.
8j. MODIFICATION OF MAY 1, 2000, BOARD OF EQUALIZATION
Mr. McCauley requested modification to the May 1, 2000, Board of Equalization meeting which was
to start at 6:00 p.m. The valuation notices were mailed to property owners with the time stating 7:00
p.m.
A motion by Councilmember Lasman, seconded by Councilmember Peppe to modify the May 1,
2000, Board of Equalization meeting from 6:00 p.m. to 7:00 p.m. Motion passed unanimously.
8k. RESOLUTION DECLARING APRIL 9-15,2000, AS NATIONAL PUBLIC
SAFETY TELECOMMUNICATIONS WEEK
Mr. McCauley iscussed this resolution would declare April 9 -15 2000 as National Public Y p � Safety
Telecommunications Week to express appreciation to the public safety dispatchers.
RESOLUTION NO. 2000 -72
Councilmember Lasman introduced the following resolution and moved its adoption:
• RESOLUTION DECLARING APRIL 9 -15, 2000, AS NATIONAL PUBLIC SAFETY
TELECOMMUNICATIONS WEEK
The motion for the adoption of the foregoing resolution was duly seconded by Councilmember
P g g Y
Hilstrom. Motion passed unanimously.
81. RESOLUTION AUTHORIZING PROFESSIONAL SERVICES FOR THE
DESIGN OF IMPROVEMENT PROJECT NOS. 2000 -16, PALMER LAKE
PONDS AND 2000 -17, PALMER LAKE TRAIL
Mr. McCauley discussed this resolution would authorize a contract with WSB and Associates to
provide professional services for Improvement Project ect Nos. 2000 -16, Palmer Lake Ponds and 2000 -
p p J
17, Palmer Lake Trail. WSB and Associates had submitted a proposal to provide professional
services including wetland delineation, EAW, survey, and preliminary and final design for said
improvements and is the same firm which conducted the Palmer Lake Study which makes them very
familiar with the improvements proposed.
04/10/00 -11- DRAFT
•
RESOLUTION NO. 2000-73 •
Councilmember Lasman introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING PROFESSIONAL SERVICES FOR THE DESIGN OF
IMPROVEMENT PROJECT NOS. 2000 -16, PALMER LAKE PONDS AND 2000 -17, PALMER
LAKE TRAIL
The motion for the adoption of the foregoing resolution was duly seconded by Councilmember
Nelson. Motion passed unanimously.
9. ADJOURNMENT
A motion by Councilmember Hilstrom, seconded by Councilmember Lasman to adj ourn the meeting
at 7:51 p.m. Motion passed unanimously.
City Clerk Mayor
04/10/00 -12- DRAFT
•
City Council Agenda Item No. 6b
i
City o f Brooklyn Center
A great place to start. A great place to stay.
MEMORANDUM
TO: Michael J. McCauley, City Manager
FROM: Maria Rosenbaum, Deputy City Clerk
DATE: April 19, 2000
:Ally
SUBJECT: Licenses for Council Approval
The following companies /persons have applied for City licenses as noted. Each company /person
has fulfilled the requirements of the City Ordinance governing respective licenses, submitted
appropriate applications, and paid proper fees. Licenses to be approved by the City Council on April
24, 2000:
COURTESY BENCH
Ameribench Company 4215 Winnetka Avenue North, New Hope
MECHANICAL
C O Carlson Air Conditioning 1203 Bryant Avenue North, Minneapolis
• Countryside Heating and Cooling 6511 Highway 12, Maple Plain
Dahl Heating 1933 164th Lane NE, Ham Lake
Marsh Heating and Air Cond. 6248 Lakeland Avenue North, Brooklyn Park
Pete's Repair, Inc. 8835 Xylon Avenue North, Brooklyn Park
Sunburst Heating and Air Cond. 1556 Oakways, Wayzata
MOTOR VEHICLE DEALERSHIP
Bob Ryan Oldsmobile 6700 Brooklyn Boulevard
Brookdale Chrysler Plymouth 6121 Brooklyn Boulevard
RENTAL
Renewal:
5401 Brooklyn Blvd Northport Properties
5407 Brooklyn Blvd Duane Orn
6025 Brooklyn Blvd Dorothy Ostrom - Ringstrom
4214 Lakeside Ave N James Shoultz
5242 Lakeside Place Brett Parker
5207 Xerxes Ave N Douglas Mollick
SIGN HANGER
Electric Light Sign Company 926 Dale Street North, St. Paul
Express Sign 13321 Killdeer Street NW, Andover
Leroy Signs 6325 Welcome Avenue N, Brooklyn Park
Nordquist Sign Company 312 West Lake Street, Minneapolis
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
City Council Agenda Item No. 6c
i
i
��pOKLYN CENrF
BROOKLYN CENTER
POLICE DEPARTMENT POLICE
MEMORANDUM
To: City Manager Michael McCauley
From: Chief Joel Downe
Date: April 14, 2000
Subject: 1998 Local Law Enforcement Block Grant
The U.S. Department of Justice has approved the expenditure of funds made available through
the 1998 Local Law Enforcement Block Grant. A committee of police employees met to
consider appropriate expenditures of the funds. Their recommendation was approved by a
citizen's advisory board and a public hearing was held on Tuesday, March 21, 2000 at 7:00 pm.
No one appeared at the public hearing.
• The following items are recommended for purchase:
1. Motorola HT -1000 Portable Radios
Quantity: 32
Total Cost: $28,998
The department currently uses Motorola MT -1000 radios which were issued in 1989.
Motorola no longer maintains internal parts for the MT -1000. The portable radios are
exceeding their 10 year life expectancy and are malfunctioning more frequently.
2. Panasonic Color Unitized Camera
Quantity: 2
Total Cost: $3,515
The two Panasonic cameras will be added to the north and south exterior of the police
facility at 6645 Humboldt Ave. These cameras are part of a plan to complete the security
system at the new police facility.
3. Sony Microcassette Recorders
Quantity: 2
Total Cost: $1,148
These two microcassette recorders will be installed in the interview rooms in the
detectives suite of the police department. They will add covert recording capability to
• interview rooms on the second floor.
. Memorandum
Page 2
4. Sony Color Video Printer
Quantity: 1
Total Cost: $1,412
This item replaces the black and white video printer that uses heat sensitive paper. Heat
sensitive paper is becoming more difficult to locate and more expensive. The current
black and white printer was purchased used fr om South St. Paul Police Department in
1989. The video printer is used to view surveillance film from business establishments.
The current black and white photos are of .poor quality and cannot be used to identify
suspects. The Sony color video printer offers sharp photos of excellent quality that can
be retrieved from video film.
5. Panasonic Color Monitor
Quantity: 1
Total Cost: $374
The color monitor is used in conjunction with the Sony color video printer to view the
surveillance tape.
• The total cost of all items is $35,447
The 1998 grant is $32,074.00. The match funds from the City of Brooklyn Center are $3,564.00.
The total funds available are $35,638.00.
I request that the matched funds be taken from 4552, Capital, Other Equipment.
JD:kh
grant5mpd
•
City Council Agenda Item No. 6d
•
April 19, 2000
MEMO
TO: Michael J. McCauley, City Manager
FROM: A.
ane Chambers, Assistant City Manager
Y g r
SUBJECT: Award of Bid for Furnishings at New Brooklyn Center Liquor Store
On April 17, bids were opened for bid package 12A, which is shelving, for the new Brooklyn
Center Liquor store at the Cub Foods site.
At its meeting of April 24, 2000, the City Council is requested to act on a resolution awarding the
bid to the low bidder, RECO Store Equipment. The Liquor Store Manager has not used this
supplier before, but the Architect on the project has experience with this supplier. The bid
estimate for the work was $32,000.
•
• Member introduced the following resolution and moved its adoption:
RESOLUTION NO.
RESOLUTION AWARDING BIDS FOR FURNISHINGS AT THE NEW BROOKLYN
CENTER LIQUOR STORE
WHEREAS, the City Council approved a lease agreement for a liquor store at the
Cub Foods Development Site by approving Resolution 99 -178 and in approving the lease
agreement recognized the City would be responsible for completion of the interior portion of the
liquor store site; and
WHEREAS, Ringdahl Architects has developed plans and specifications for the
completion of the interior portion of the store, including specifications for all equipment and
materials necessary; and
WHEREAS, bids were received on April 17, 2000 for Bid Package 12A,
Furnishings, for the new liquor store as follows:
AA Equipment Co $39,691.70
• RECO Store Equipment $32,895.83
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center that the Mayor and City Manager are hereby authorized to proceed to enter a
contract for work to be completed under Bid Package 12A with RECO Store Equipment.
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
City Council Agenda Item No. 6e
i
•
MEMO
To: Michael McCauley, City Manager
From: Patty Hartwig, MIS /Technology Coordinator
Subject: Retail Point of Sale and Inventory Software, Hardware, and Services for Municipal
Liquor Stores
Date: April 19, 2000
A Request for Bid for Retail Point of Sale and Inventory Software, Hardware, and Services for
Municipal Liquor Stores (Brookdale Corner and Northbrook) were opened on April 3, 2000 with
the following Bids submitted:
Total Register System Inc. $39,861
Dailey Data & Associates $46,073.99 (alternate $41,881.30)
Dynamic Products Midwest $54,405.57
Retail Data Systems $60,694.59
• POS Business Systems $66,804 (alternate $62,875.70)
North Country Business Products $78,211 (alternate $68,649)
The Liquor Stores current provider is Total Register System Inc. This System is more than six
years old. Implementing and getting the System functional was lengthy. Support of both
hardware and software has been unacceptable. The System is not user friendly creating
numerous operational problems. In addition, the Bid submitted is not complete.,
The Systems proposed by Dailey Data & Associates, Dynamic Products Midwest, POS Business
Systems and North County Business Products were demonstrated to Liquor Store staff. Only the
System provided by Dailey Data & Associates had a local working multi -store client where an
on -site evaluation was done.
The System provided by Dailey Data & Associates, CounterPoint, was further evaluated in detail
by Liquor Store staff. The System meets or exceeds all requirements outlined in the Request for
Bid document. Delivery and installation of the System will be within 21 business days from the
purchase order date.
Jerry Olson and I are recommending that the City purchase the System provided by Dailey Data
& Associates as the Liquor Stores Point of Sale and Inventory Software, Hardware, and Services.
Below is a summary of total costs:
• Michael McCauley, City Manager
Page 2
April 19, 2000
Dailey Data & Associates Bid Proposal Alternate #1
$42,759.92 (includes Minnesota Sales Tax)
(one printer from request removed/required credit card software in original bid added)
Software $14,590.50
User Hub Base System & Satellite (5 -User) (3 -User)
PC- Anywhere (2)
Hardware $25,469.42
Server/Host Computer (1)
8 -Port Hub (2)
Office Computers (3)
Printers (3)
Cash Registers (5)
Extra Cash Drawer Inserts (2)
Point -of -Sale Peripherals
Keyboard with Card Swipe (5)
• Cash Drawer(5)
Receipt Printer (5)
Hand -Held Scanner (5)
Pole Displays (5)
Back -Up Units for Computers (8)
Services $2,700
Installation of Software, Including Cabling
Training
Hardware Maintenance -90 days
(After 90 days hardware support $901hour)
Software Support-90 days -1 year of updates
(After 90 days software support $901hour or blocks of time at less rate)
c: Jane Chambers, Assistant City Manager
Jerry Olson, Liquor Stores Operations Manager
•
Member introduced the following resolution and moved its adoption:
• RESOLUTION NO.
RESOLUTION AWARDING BID FOR POINT OF SALE AND INVENTORY
SOFTWARE, HARDWARE, AND SVCS FOR BROOKLYN CENTER LIQUOR
STORES
WHEREAS, the City Council approved a lease agreement for a liquor store at the
Cub Foods Development Site by approving Resolution 99 -178 and in approving the lease
agreement recognized the City would be responsible for completion of the interior portion of the
liquor store site; and
WHEREAS, the new store will require an inventory control system and the current
inventory control system for remaining liquor store operations at the Northbrook store has
reached its useful life; and
WHEREAS, bids were received on April 3 for Liquor Stores Point of Sale and
Inventory Software based upon bid specifications written by the MIS /Technology Coordinator for
the City of Brooklyn Center as follows:
Total Register Systems $39,861.00
Dailey Data and Associates $46,073.99 (Alt #1 $41,881.30)
Dynamic Products Midwest $54,405.57
• Retail Data Systems $60,694.59
POS Business Systems $66,804.00 (Alt #1 $62,875.70)
North Country Business Products $78,211.00 (Alt #1 $68,649.00)
WHEREAS, in reviewing the bids received, the MIS /Technology Coordinator and
Liquor Store Manager determined that the best bid received in terms of overall acceptable services
and equipment was Alt # 1 from Dailey Data and Associates, and that modification of the bid was
necessary in terms of deleting one printer and including the credit card software from the original
bid package, for a total price of $42,759.92.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center that the Mayor and City Manager are hereby authorized to proceed to enter a
contract for work to be completed under the bid for Liquor Store Point of Sale and Inventory
Software, Hardware, and Svcs with Dailey Data and Associates for the cost of $42,759.92.
Date Mayor
ATTEST:
is City Clerk
The motion for the adoption of e foregoing resolution was duly seconded b member
r th g g res• u y y
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
City Council Agenda Item No. 6f
• MEMORANDUM
DATE: April 19, 2000
TO: Michael J. McCauley, City Manager
FROM: Michael Krech, Public Works Specialist
SUBJECT: Resolution Approving Change Order Nos. 2 and 3, Improvement Project No. 1999 -
19, Contract 99 -M, Rehabilitation of Wellhouse Nos. 5 & 6
On September 27, 1999, the City Council awarded a contract to Municipal Builders, Inc. for
remodeling Wellhouses #5 & #6. The awarded contract amount was $193,600.00. Funding for
the construction is being provided by the Water Utility Fund.
Change Order Number 1, in the amount of $10,131.00 was approved by Resolution No. 00 -18 on
January 24, 2000.
Change Order Number 2, in the amount of $3,753.00, is for additional electrical rewiring and
• relocation that was not anticipated in the original contract.
Change Order Number 3, in the amount of $5,600.00, is for installation of a combination graffiti
control - weather sealer that will allow city staff to more easily remove any future graffiti.
A resolution approving Change Order Nos. 2 and 3 in the amount of $9,353.00 is provided for
Council consideration.
•
Member introduced the following resolution and moved its adoption:
RESOLUTION NO.
RESOLUTION APPROVING CHANGE ORDER NOS. 2 AND 3, IMPROVEMENT PROJECT NO. 1999 -19,
CONTRACT 99 -M, REHABILITATION OF WELLHOUSE NOS. 5 & 6
WHEREAS, pursuant to a written contract signed with the City of Brooklyn Center, Minnesota,
Municipal Builders, Inc. is completing the following improvement in accordance with said contract:
Improvement Project No. 1999 -19, Contract 1999 -M, Rehabilitation of Wellhouses #5 and #6
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center,
Minnesota that:
1. Change Order Nos. 2 & 3 is hereby approved.
2. Project costs and revenues are hereby amended as follows:
COSTS As Amended Per Low Bid As Amended Per
Change Order Nos. 1. 2 & 3
Contract $193,600.00 $193,600.00
Contingency / Change Orders $4,000.00
Change Order No. 1 $10,131.00
Change Order No. 2 $3,753.00
Change Order No. 3 $5,600.00
Subtotal $197,600.00 $213,084.00
Admin/Legal /Engr. $16,000.00 $16,000.00
Total Estimated Project Cost $213,600.00 $229,084.00
REVENUES
Water Utility Fund $213,600.00 $229,084.00
Total Estimated Revenue $213,600.00 $229,084.00
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
• and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
City Council Agenda Item No. 6g
• MEMORANDUM
DATE: April 19, 2000
TO: Michael J. McCauley, City Manager
FROM: Joyce Gulseth, Public Works Administrative Aide
SUBJECT: Resolution Declaring a Public Nuisance and Ordering the Removal of Diseased
Trees
The attached resolution represents the official Council action required to expedite removal of the
trees most recently marked by the City tree inspector, in accordance with approved procedures.
It is anticipated that this resolution will be submitted for council consideration each meeting
during the summer and fall as new trees are marked.
•
Member introduced the following resolution and moved its
• adoption:
RESOLUTION NO.
RESOLUTION DECLARING A PUBLIC NUISANCE AND ORDERING THE REMOVAL
OF DISEASED TREES
WHEREAS, a Notice to Abate Nuisance and Diseased Tree Removal Agreement has
been issued to the owners of certain properties in the City of Brooklyn Center giving the owners
twenty (20) days to remove diseased trees on the owners' property; and
WHEREAS, the City can expedite the removal of these diseased trees by declaring
them a public nuisance.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn
Center, Minnesota that:
1. The diseased trees at the following addresses are hereby declared to be a public
nuisance:
TREE
PROPERTY OWNER PROPERTY ADDRESS NUMBER
--------------------------------------------------------------------------------- ----------------
JOHN & BERNICE LARSON 5925 COLFAX AVE N 1
• JEANNINE PFANN 6013 ABBOTT AVE N 2
2. After twenty (20) days from the date of the notice, the property owner(s) will
receive a second written notice providing five (5) business days in which to
contest the determination of the City Council by requesting, in writing, a
hearing. Said request shall be filed with the City Clerk.
3. After five (5) days, if the property owner fails to request a hearing, the tree(s)
shall be removed by the City. All removal costs, including legal, financing,
and administrative charges, shall be specially assessed against the property.
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor
• thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
City Council Agenda Item No. 7a
Office of the City Clerk
City ty
Ca o Brookl
y f y n Center
A great place to start. A great place to stay.
•
MEMORANDUM
TO: Michael I McCauley, City Manager
FROM: Sharon Knutson, City Clerk JOAM
DATE: April 20, 2000
SUBJECT: An Ordinance Relating to the Location of Secondhand Goods Dealers, Pawnshops, Currency
Exchanges, Tattoo and Body Piercing Establishments, and Massage Parlors; Amending
Brooklyn Center City Code Sections 23 -610, 23 -661, 23 -2309, 23 -2203, and 23 -1709
At its March 27, 2000, meeting, the City Council approved first reading of an ordinance relating to the
location of secondhand goods dealers, pawnshops, currency exchanges, tattoo and body piercing
establishments, and massage parlors; amending Brooklyn Center City Code Sections 23 -610, 23 -661, 23-
2309, 23 -2203, and 23 -1709. This ordinance amendment is offered April 24, 2000, for a second reading and
public hearing. This ordinance amendment clarifies the intent of the ordinance to allow pawnshops and
• secondhand goods dealers to occupy the same premises provided two licenses are issued, but that other listed
businesses may not occupy the same premises or be located within 300 feet of each other or in the same
parcel (i.e., on -sale liquor establishment, halfway house, currency exchange operation, tattoo establishment,
body piercing establishment, massage parlor, etc.).
•
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
I
Office of the City Clerk
3[ City of Brooklyn Center
A great place to start. A great place to stay.
•
MEMORANDUM
TO: Michael J. McCauley, City Manager
FROM: Sharon Knutson, City Clerk jwot
DATE: March 23, 2000
SUBJECT: Currency Exchange License Application
C -N -P Northwest, Ltd. dba Cash -N -Pawn
1964 57th Avenue North, Brooklyn Center, Minnesota
On March 8, 2000, the City received a letter from the Minnesota Department of Commerce requesting City
Council consideration of a currency exchange license application submitted by C -N -P Northwest, Ltd. dba
Cash -N -Pawn to operate as a currency exchange at 1964 57th Avenue North. Minn. Stat. § 53A.04 (a)
requires the governing board of the City to consider the issue and approve or disapprove the issuance of the
currency exchange license. The City is required to publish notice of the Council's intention to consider the
• currency exchange license and solicit testimony from interested persons, including those in the community
in which the applicant is located or is proposing to be located. Notice was published in the City's official
newspaper on March 22, 2000, indicating that the City Council will consider the issue at its April 10, 2000,
meeting. A copy of the notice is attached.
At its March 13, 2000, study session, the City Council discussed the currency exchange license application
submitted by C -N -P Northwest, Ltd. dba Cash -N -Pawn to operate at 1964 57th Avenue North. Cash -N-
Pawn is currently licensed by the City as a pawnshop at 1964 57th Avenue North. The matter as to whether
or not Cash -N -Pawn could be licensed as both a pawnshop and a currency exchange at the same location
was referred to the City Attorney and his March 13, 2000, letter of response is attached.
The
City Council requested City Attorney LeFevere to draft an ordinance amendment which clarifies the
intent of the ordinance to allow pawnshops and secondhand goods dealers to occupy the same premises
provided two licenses are issued, but that other listed businesses may not occupy the same premises or be
located within 300 feet of each other or in the same parcel (i.e., on -sale liquor establishment, halfway house,
currency exchange operation, tattoo establishment, body piercing establishment, massage parlor, etc.).
Attached is the draft ordinance prepared by City Attorney LeFevere. If approved for first reading, the
second reading and public hearing would be held April 24, 2000, with effective date as June 2, 2000.
Attachments
•
6301 Shingle Creek Pk •
g Pkwy, Brooklyn Center, MN 55430 -2199 City y Hall &TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
CITY OF BROOKLYN CENTER
•
Notice is hereby given that a public hearing will be held on the 24th day of April, 2000, at 7 p.m.
or as soon thereafter as the matter may be heard at City Hall, 6301 Shingle Creek Parkway, Brooklyn
Center, Minnesota, to consider an ordinance relating to the location of secondhand goods dealers,
pawnshops, currency exchanges, tattoo and body piercing establishments, and massage parlors.
Auxiliary aids for handicapped persons are available upon request at least 96 hours in advance.
Please notify the City Clerk at 763 -569 -3306 to make arrangements.
ORDINANCE NO.
AN ORDINANCE RELATING TO THE LOCATION OF SECONDHAND GOODS
DEALERS, PAWNSHOPS, CURRENCY EXCHANGES, TATTOO AND BODY
PIERCING ESTABLISHMENTS, AND MASSAGE PARLORS; AMENDING
BROOKLYN CENTER CITY CODE SECTIONS 23 -610, 23 -661, 23 -2309, 23-
2203, AND 23 -1709
THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS
FOLLOWS:
Section 1. Brooklyn Center City Code Section 23 -610 (pawnbrokers) is amended
• as follows:
Section 23 -610. PLACES INELIGIBLE FOR LICENSES. A license will not be
issued or renewed under this section for any place or for any business:
a. If taxes, assessments or other financial claims of the City or the State of
Minnesota on the licensee's business premise are delinquent and unpaid;
b. If the premise is located within 300 feet of. or in the same building as_ or on
the same legally subdivided. lot. piece. or parcel of land as anv of the
following uses: a school, day care center, church, hospital, on -sale liquor
establishment, halfway house, currency exchange operation, theater,
residence, secondhand goods dealer, tattoo establishment, body piercing
establishment, [or] massage parlor. or another pawnshop: provided however.
that a pawnshop and a secondhand goods dealer may occupv a sinLyle licensed
premises in common if both activities are licensed for that premises;
C. Where operation of a licensed premise would violate zoning ordinances;
d. Where the applicant's present license was issued conditioned upon the
applicant making specified improvements to the licensed premise or the
• property of the licensed premise which improvements have not been
completed or;
ORDINANCE NO.
•
e. Established as a pawnshop after April 2, 1996, which is within ten (10)
driving miles of any gambling casino.
Section 2. Brooklyn Center City Code Section 23 -661 (secondhand goods dealers)
is amended as follows:
Section 23 -661. PLACES INELIGIBLE FOR LICENSES. A license will not be
issued or renewed under this section for any place or for any business:
a. If taxes, assessments or other financial claims of the City or the State of
Minnesota on the licensee's business premise are delinquent and unpaid;
b. Within 300 feet of. or in the same building as. or on the same legally
subdivided lot. piece. or parcel of land as any of the following uses: a school
or day care center if the secondhand goods dealer will receive firearms or if
located within 300 feet of a pawnshop, tattoo establishment, currency
exchange operation, massage parlor, [or] body piercing establishment, or
another secondhand goods dealer: provided however. that a Pawnshop and a
• secondhand gods dealer may occupy a single licensed premises in common
if both activities are licensed for that Premises;
C. Where operation of a licensed premise would violate zoning ordinances; or
d. Where the applicant's present license was issued conditioned upon the
applicant making specified improvements to the licensed premise or the
property of the licensed premise which improvements have not been
completed.
Section 3. Brooklyn Center City Code Section 23 -2309 (tattoo and body piercing
establishments) is amended as follows:
Section 23 -2309. PLACES INELIGIBLE FOR LICENSE
a. No license shall be granted or renewed for operation on any property on
which taxes, assessments, or other financial claims of the state, county,
school district, or city are due, delinquent, or unpaid. In the event a suit has
been commenced under Minnesota Statutes, Section 278.0- 278.03,
questioning the amount or validity of taxes, the City Council may on
application waive strict compliance with this provision; no waiver may be
• granted, however, for taxes or any portion thereof which remain unpaid for
a period exceeding one (1) year after becoming due.
ORDINANCE NO.
b. No license shall be granted or renewed if the property is not properly zoned
or does not qualify as a legal nonconforming use for tattooing and/or body
piercing establishments.
C. Premises Licensed For Alcoholic Beverages. No license shall be g ranted or
renewed if the premises is licensed for the furnishing of alcoholic beverages
or is an adult establishment pursuant to Section 35 -2182.
d. No license shall be granted if the premises is within 300 feet of or in the
same building as. or pn the same legally subdivided lot. niece. or parcel of
land as any of the following uses: a church, school, day care center, hospital,
on -sale liquor establishment, halfway house, currency exchange operation,
theater, residence, pawnshop, secondhand goods dealer, [or] massage parlor,
or another tattoo or h ody_piercina establishment.
Section 4. Brooklyn Center City Code Section 23 -2203 (currency exchanges) is
amended as follows:
• Section 23 -2203. RESTRICTIONS. All Currency Exchanges shall be operated and
maintained in accordance with the requirements of state law and of this section:
A. The business may not be advertised with backlighted signs or awnings, roof
signs, portable signs, temporary signs, or freestanding signs. Window signs
shall not exceed thirty (30) percent of the window area and shall not block
views into the building at eye level.
B. The window and door area of any existing first floor facade that faces a
public street or sidewalk shall not be reduced, nor shall changes be made to
such windows or doors that block views into the building at eye level.
C. For new construction, at least thirty (30) percent of the first floor facade that
faces a public street or sidewalk shall be windows or doors of clear or lightly
tinted glass that allow views into the building at eye level.
D. The use of bars, chains or similar security devices that are visible from a
public street or sidewalk shall be prohibited.
E. The premises, all adjacent streets, sidewalks, and alleys, and all
sidewalks and alleys within one hundred (100) feet shall be inspected
• regularly for purposes of removing any litter found thereon.
ORDINANCE NO.
F. The business premises shall not be so equipped as to enable employees to
activate remote locking mechanisms to lock in patrons, customers, or others.
G. The licensee shall not engage in street solicitation for the business or
distribute handbills within three hundred (300) feet of the licensed premises.
H. The licensee shall not give away cigarettes or liquor to customers either free
or in connection with a check cashing transaction.
I. The business premises shall not be located within 300 feet of or in the same
building as. or on the same legally subdivided lot. niece. or parcel of land as
any of the following uses: a school, day care center, church, hospital, on -sale
liquor establishment, halfway house, theater, residence, pawnshop,
secondhand goods dealer, tattoo establishment, body piercing establishment,
[or] massage parlor. or another currencv exchange.
Section 5. Brooklyn Center City Code Section 23 -1709 (massage parlors) is
amended as follows:
• Section 23 -1709. CONDITIONS GOVERNING ISSUANCE OF A LICENSE.
C NSE.
1. No license shall be issued if the applicant or any of its owners, managers,
employees, agents or interested parties is a person of bad repute.
i
2. Licenses shall be issued only if the applicant and all of its owners, managers,
agents, employees or interested parties are free of convictions for offenses
which involve moral turpitude or which relate directly to such person's
ability, capacity or fitness to perform the duties and discharge the
responsibilities of the licensed activity.
3. Licenses shall be issued only to applicants who have not, within one year
prior to the day of application, have been denied licensure, have had a license
revoked or suspended in or by any community or political subdivision or the
State of Minnesota and whose owners, managers, or any interested parties
have not been similarly denied, revoked, or suspended.
4. Licenses shall be issued only to applicants who have answered fully and
truthfully all of the information requested in the application, who have paid
the full license fee and fee for investigation and have cooperated fully and
• truthfully with the City in the review of the application.
ORDINANCE NO.
•
5. If the applicant is a natural person, a license shall be granted only if such
person is 18 years of age or older.
6. Licenses may only be granted when in complete conformity with the zoning
code of the City of Brooklyn Center. No license shall be granted for any
premises which is within 300 feet of. or in the same building as. or on the
same legally subdivided lot. piece or parcel of land as a currency exchange
operation. secondha goods d ealer. pawn shoe. tattoo or bodv piercing
establishment anoth massage p arlor. school. day care center. church.
hospital. on -sale liquor establishment. halfwav house. theater or residence.
7. Licenses shall be granted only to establishments which can meet the safety,
sanitary and building code requirements of the City.
8. A license shall not be granted if granting the license (a) would be inconsistent
with the comprehensive development plans of the City, or (b) would
otherwise have a detrimental effect upon other property or properties in the
vicinity.
Section 6. This ordinance shall become effective after adoption and upon thirty (30)
days following its legal publication.
Adopted this day of .2000.
Mayor
ATTEST:
City Clerk
Date of Publication
Effective Date
• (Strikeout indicates matter to be deleted, underline indicates new matter.)
• CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS
Councilmember Lasman raised a question about the facilities for Lutheran Social Services for
agenda item 7c, Issuance of Revenue Bonds Under Minnesota Statutes, Sections 469.152 Through
469.165, as Amended, on Behalf of Brooklyn Center. Assistant City Manager Jane Chambers
responded that she believes the project is to finance equipment for two group homes in the City of
Brooklyn Center.
REPORT ON TRANSIT HUB'
Mr. McCauley reported that he responded to a letter from Senator Scheid regarding a transit hub in
Brooklyn Center and requested Council direction as to whether or not they were comfortable with
staff continuing to work on potential State funding for a transit hub in Brooklyn Center. It was the
consensus of the Council to have staff work with the Legislature if there would be a bill for funding
a transit hub.
MISCELLANEOUS
Council discussed a recent application received from Cash N Pawn requesting to be licensed as a
currency exchange operation at its pawn shop.
Mr. LeFevere will prepare an ordinance amendment to clarify that the Council's intent is to prohibit
licensing more than one operation at a single location. The matter will be placed on the March 27,
2000, City Council agenda.
�r ADJOURNMENT
The Council adjourned the study session and continued to the informal open forum at 6:45 p.m.
City Mayor
• 03/13/00 -2- DRAFT
City a MO'ft►te :� ... .
(Official Publication)
NOTICE OF UTUNT TO CONSIDER A
CURRENCY EXCHANGE LICENSE of
Notice is ` —� — Brooklyn Center given t
ill consider th application for a � cur -
rency exchange license from C-N -P Northwest, Ltd. dba
nlii ,koI.i.! a ers Cash =N -Pawn, to operate. at 3964 57th Avenue North,
Brooklyn Center _Minnesota. This consideration: will be
AFFIDAVIT OF PUBLICATION i or nin e`m may meet at The
h heard. The
i meeting will be held in the Council Chambers of the
Brooklyn Center City Hall, 6301 Slongle Creek Parkway,
STATE OF MINNESOTA) Brooklyn Center,. Minnesota.
Sharon Knu
SS. tson • j a'
City Clerk
COUNTY OF HENNEPIN) (March 22, 2000)Pl/Cnaency
Frank Chilinski, being duly sworn on an oath states or affirms, that he is the publisher of the
newspaper known as Sun - Sailor , or the presidents designated
agent, and has full knowledge of the facts stated below:
(A) The newspaper has compiled with all of the requirements constituting qualification as a
qualified newspaper, as provided by Minn. Stat. §331A.02, §331A.07, and other applicable
laws, as amended.
(B) The printed public notice that is attached was published in the newspaper once each week,
for one successive weeks; it was first published on Wednesday, the 22 day of
March 2000, and was thereafter printed and published on every Wednesday to and
including Wednesday, the day of , 2000; and printed below is a copy of
the lower case alphabet from A to Z, both inclusive, which is hereby acknowledged as being
the size and kind of type used in the composition and publication of the notice:
• sbcdeWklmnopgrstu
Punisher
Subscribed and sworn to or affi efore me
o this day o�' Zo 000 .
- I
l.rn
Not ■ .._
MERIDEL M. HEDBLOM
NOTARY PUBLIGMINNESOTA
MY COMMISSION EXPIRES 13J. 5
m
RATE INFORMATION
(1) Lowest classified rate paid by commercial users $ 2.85 Der line
for comparable' space
(2) Maximum rate allowed by law $ 6.20 per line
(3) Rate actually charged $ 1.40 per line
•
City Council Agenda Item No. 7b
Office of the City Clerk
City o f Brooklyn Center
A great place to start. A great place to stay.
MEMORANDUM
TO: Michael J. McCauley, City Manager
FROM: Sharon Knutson, City Clerk
DATE: April 20, 2000
SUBJECT: Consideration of Issuance of Currency Exchange License to C -N -P Northwest, Ltd. dba
Cash -N -Pawn, 1964 57th Avenue North, Brooklyn Center, Minnesota
At its April 10, 2000, meeting, the City Council continued the public hearing to consider issuance of
currency exchange license to C -N -P Northwest, Ltd. dba Cash -N -Pawn, 1964 57th Avenue North, Brooklyn
Center, Minnesota, to its April 24, 2000, meeting. Attached are the materials which were provided at the
April 10 meeting. Also attached is a resolution to deny issuance of a currency exchange license to C -N -P
Northwest, Ltd. dba Cash -N -Pawn, 1964 57th Avenue North, Brooklyn Center, Minnesota.
•
•
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
Member introduced the following resolution and moved its
• adoption:
RESOLUTION NO.
RESOLUTION TO DENY ISSUANCE F A CURRENCY O C EXCHANGE
LICENSE TO C -N -P NORTHWEST, LTD. DBA CASH -N -PAWN, 1964 57TH
AVENUE NORTH, BROOKLYN CENTER, MINNESOTA
WHEREAS, an application by C -N -P Northwest, Ltd. dba Cash -N -Pawn
( "Applicant ") for a currency exchange license has been referred to the City by the Minnesota
Department of Commerce; and
WHEREAS, the Council has conducted a public hearing on the application in
accordance with Minnesota Statutes, Section 53A.14; and
WHEREAS, the Council has determined that the proposed use is not in compliance
with the ordinances of the City and that the City should therefore disapprove the application as
hereinafter provided.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn
Center that:
• 1. The application for a license to operate a currency exchange at 1964 57th Avenue
North is denied by reason of Brooklyn Center Code, Section 23 -2203 (I) which
prohibits location of currency exchanges within 300 feet of a pawnshop. Because
a pawnshop is currently licensed for the same location, the proposed currency
exchange would be within 300 feet of the licensed pawnshop.
2. The City Clerk is directed to provide a certified copy of this resolution together
with notification that the City does not concur in the issuance of the license to the
Minnesota Department of Commerce.
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
• and upon vote being taken thereon, the following voted in favor thereof
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
Office of the City Clerk
City of Brooklyn Center
A great place to start. A great place to stay.
MEMORANDUM
TO: Michael J. McCauley, City Manager
FROM: Sharon Knutson, City Cler
DATE: April 5, 2000
SUBJECT: Consideration of Issuance of Currency Exchange License to C -N -P Northwest, Ltd. dba Cash -N-
Pawn, 1964 57th Avenue North, Brooklyn Center, Minnesota
On March 8, 2000, the City received a letter from the Minnesota Department of Commerce requesting City Council
consideration of a currency exchange license application submitted by C -N -P Northwest, Ltd. dba Cash -N -Pawn to
operate as a currency exchange at 1964 57th Avenue North. Minn. Stat. § 53A.04 (a) requires the governing board
of the City to consider the issue and approve or disapprove the issuance of the currency exchange license. The City
is required to publish notice of the Council's intention to consider the currency exchange license and solicit
testimony from interested persons, including those in the community in which the applicant is located or is proposing
to be located. Notice was published in the City's official newspaper on March 22, 2000, indicating that the City
Council will consider the issue at its April 10, 2000, meeting. A copy of the notice is attached.
• Sections 23 -2201 through 23 -2205 of the City Ordinances provide criteria for the City Council with regard to review
of an application for a currency exchange referred by the Commissioner of Commerce. Section 23 -2203 (1) specifies,
"The business premises shall not be located within 300 feet of a school, day care center, church, hospital, on -sale liquor
establishment, halfway house, theater, residence, pawnshop, secondhand goods dealer, tattoo establishment, body
piercing establishment, or massage parlor." At its March 13, 2000, study session, the City Council discussed the
currency exchange license application submitted by C -N -P Northwest, Ltd. dba Cash -N -Pawn to operate at 1964 57th
Avenue North. Cash -N -Pawn is currently licensed by the City as a pawnshop at 1964 57th Avenue North. The
matter as to whether or not Cash -N -Pawn could be licensed as both a pawnshop and a currency exchange at the same
location was referred to the City Attorney and his March 13, 2000, letter of response is attached.
At its March 27, 2000, meeting, the City Council approved first reading of An Ordinance Relating to the Location
of Secondhand Goods Dealers, Pawnshops, Currency Exchanges, Tattoo and Body Piercing Establishments, and
Massage Parlors; Amending Brooklyn Center City Code Sections 23 -610, 23 -661, 23 -2309, 23 -2203, and 23 -1709.
The ordinance amendment clarifies the intent of the current City ordinance to allow pawnshops and secondhand
goods dealers to occupy the same premises provided two licenses are issued, but that other listed businesses may not
occupy the same premises or be located within 300 feet of each other or in the same parcel (i.e., on -sale liquor
establishment, halfway house, currency exchange operation, tattoo establishment, body piercing establishment,
massage parlor, etc.). This ordinance amendment is scheduled for a second reading and public hearing on April 24,
2000. If adopted, its effective date would be June 2, 2000. Since the proposed ordinance amendment will be
presented to the City Council for second reading and public hearing on April 24,1 would recommend that the City
Council continue the public hearing to consider the currency exchange license application to April 24 following
adoption of the proposed ordinance amendment.
•
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
MINNESOTA DEPARTMENT OF COMMERCE
• = ° __
Financial Examinations Division
March 7, 2000
City Clerk
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430 -2199
RE: Currency Exchange License Application
C -N -P Northwest, Ltd. dba Cash -N -Pawn
Dear City Clerk:
Enclosed is a copy of an application submitted by Alan L. Cross to operate a currency exchange
business at 1964 57 Avenue North, Brooklyn Center, Minnesota. The name of the currency
exchange company is C -N -P Northwest, Ltd. dba Cash -N -Pawn.
Minnesota Statute 53A.04 (a) states:
"Within 30 days after the receipt of a complete application, the commissioner shall deny the
application or submit the application to the governing body of the local unit of government in
which the applicant is located or is proposing to be located. The commissioner may not approve
• the application without the concurrence of the governing body. The governing body shall give
published notice of its intention to consider the issue and shall solicit testimony from interested
persons, including those in the community in which the applicant is located or is proposing to be
located. If the governing body has not approved or disapproved the issue within 60 days of
receipt of the application, concurrence is presumed. The commissioner must approve or
disapprove the application within 30 days from receiving the decision of the governing body.
The governing body shall have the sole responsibility for its decision. The state shall have no
responsibility for that decision."
Please respond in writing within 60 days of the receipt of this notice as to the decision of the
governing body regarding the application for the currency exchange operation. If I do not hear
from you within 60 days, approval will be presumed and the license will be issued. If you have
any questions, please feel free to contact me.
VV9q truly yours,
R bin H. Bro kn
Financial Examinations Division
(651) 282 -9855
Enclosure
• 133 East Seventh Street, St. Paul, MN 55101 -2333
Telephone (651) 296 -2135 • Fax (651) 296 -8591 • TTY/TDD (651) 296 -2860
e -mail: financial @state.mn.us
Web Site: www.conunerce.state.mn.us
An Equal Opportunity Employer
i
-'' STATE OF MINNESOTA OFFICE USE ONLY CA
A=Y
DEPARTMENT OF COMMERCE Deputy I � A �
DIVISION ?)F FINANCIAL EXAMINATIONS Asst. 1 0
133 EAST 7TH STREET Chief
ST. PAUL, MINNESOTA 55101 Review
Data Entry
(651) 282 -9855 Currency Exchange
License Number Processing Date
- Surety Bond Number
CURRENCY EXCHANGE Insurance Company NAIC Number
LICENSE APPLICATION
The data, which you famish on this form, will be used by the Department of Commerce to assess your
qualifications for a license. voluntary. You are not le
q Disclosure of our social security number is olun Y all Y tY �' legally required
to provide this data; however, if you do not provide your social security number, the Department of Commerce
may be unable to grant a license. The Department may use social security numbers for revenue recapture as
authorized by Minnesota Statutes, Chapter 270A and for identification purposes. After issuance of a license, all
information contained in this application, except your social security number, is public pursuant to Minnesota
Statutes, Chapter 13.
A. TYPE OF LICENSE (check one)
® NEW ❑ RENEWAL ❑ AMENDED LICENSE
APPLICANT INFORMATION
NAME OF CURRENCY EXCHANGE
Cash -N -Pawn
NAME OF CORPORATION OR PARTNERSHIP( address:
1000 Shelard Parkway, Suite 405
C -N -P Northwest, Ltd. St. Louis Park, MN 55426
BUSINESS ADDRESS (No Post Office Boxes)
1964 57th Ave No.
CITY STATE ZIP CODE. COUNTY
Brooklyn Center I MN 55430 Hennepin
NAME OF INDIVIDUAL MANAGING THIS LOCATION STATE TAX ID NUMBER
Fredrick Davis 2979415
TELEPHONE NUMBER FAX NUMBER E -MAIL ADDRESS
(612) 525 -0854 ext 116 (612 ) 525 -1073
Check one: ❑ SOLE PROPRIETORSHIP ❑ ASSOCIATION
❑ PARTNERSHIP ❑ LIMITED LIABILITY PARTNERSHIP
_ ® CORPORATION ❑ LIMITED LIABILITY COMPANY
November 18, 1996 Minneapolis Hennepin MN
Date of Incorporation or O rganization Place of Incorporation County State
XTXTfnnl ` r T TD D DATA' V 1~ VrT-T A AT(:1~ A DDT '7 100 1 1115/1999
C. Additional licensed currency exchange locations operated by the applicant (use separate sheet if additional
space is needed).
2726 E. Lake Street
Street Address (P.O. Boxes are not acceptable)
Minneapolis MN 55406 Hennes
City State Zip Code County
Application filed by related corporation (Cash -N -Pawn of
201 57th Avenue N.E. Minnesota, Ltd.)
Street Address (P.O. Boxes are not acceptable)
Fridley MN 55432 Hanncnin
City State Zip Code County
Street Address (P.O. Boxes are not acceptable)
City State Zip Code County
r
Street Address (P.O. Boxes are not acceptable)
City State Zip Code County
D. Please provide the names and complete business addresses of owners, partners, officers, stockholders
(owning 10% or more of the corporate stock), and employees with authority to exercise management or
policy control over the company.
Full Name Official Percent Residence Social Security Birth Date
I Title Ownership I Address Number
Ki mer
Jack Hartsoe C.E.O. 9.7% P P. Louis PK, MN 5 -3 -50
I 15545 17th PN
Alan Cross C.F.O. 0 lymouth, MN 2 -20 -45
1605 Welters Wa}
I Craig Avery Director 31.1% den Prairie,,MN 8 -26 -48
1'1U18 Glen wilai
James Ostenson Stockholder 21.9% Bloomington, MN 2 -16 -49
E. ALL applicants must answer the following questions. If any questions are answered "YES," you
BUST attach a detailed written explanation and any legal documentation, if applicable.
Have you, any of the owners, partners, officers, managers, directors, or shareholders owning more�thati 10%
of the corporate stock:
YES NO
O ® 1. Held a currency exchange license in any other state other than Nfinnesota? If YES, the new
license application must include a verification of license certified by the state(s); all other
applicants must verify that the certification(s) previously submitted is accurate.
O - M 2. Been the subject of any inquiry or investigation by any division of the Minnesota
Department of Commerce?
O ® 3. Had any occupational license censured, suspended, revoked, cancelled, terminated or been
the subject of any type of administrative action in any state including Minnesota?
CR O 4. Have you ever been charged with, or convicted of, or been indicted for, or entered a plea to,
any criminal offense (felony, gross misdemeanor or misdemeanor), other than traffic
violations, in any State or Federal Court? Jack Hartsoe was convicted of trespass
a misdemeaner in Jan 1975 in Colorado
state court
C O 5. Been a defendant in any lawsuit involving claims of fraud, misrepresentation, conversion,
mismanagement of funds or breach of contract? Schedule attached re civil
class action lawsuit brought in late 1.996 & settled in early 1998
O L 6. Been notified by the Commissioner of Revenue, pursudnt to Minnesota Statutes, Section
270A.72, that you currently owe the State of Minnesota taxes?
O 12 7. Have any unclaimed property (unclaimed funds or property over 3 years old) to rep under
Minnesota Statutes, Section 345.37?
O U 8. Filed for bankruptcy or protection from creditors or currently have outstanding unsatisfied
judgment(s)?
O 0 9. Been affiliated with any other currency exchange?
O ®• 10. Will the applicant sell lottery tickets at the licensed location?
I HEREBY CERTIFY THAT ALL INFORMATION CONTAINED IN THIS APPLICATION AND ANY
ACCOMPANYING DOCUMENTS ARE TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE.
I CERTIFY THAT THIS DOCUMENT HAS NOT BEEN ALTERED OR CHANGED IN ANY MANNER
FROM ORM ADOPTED BY THE DEPARTiYtENT OF COMMERCE.
Signature-of Owner, Partner or Corporate Officer Date
Alan L. Cross
Print Name of Owner, Partner, or Corporate Officer
PLEASE PROVIDE THE FOLLOWING INFORMATION ON ALL NEW OR REN EWAL APPLICATIONS:
(unless otherwise noted)
O All NEW applicants must provide a signed, notarized statement from the applicant stating the proposed
location of the currency exchange is not located within 1/2 mile of another currency exchange.
O A current fee schedule of all fees charged by your currency exchange office for cashing checks, money
orders or travelers' checks. The list MUST include the type of check cashed, the fee charged, and whether
or not the fee varies depending on the amount of the check.
O All owners, partners, officers, stockholders (owning 10% or more of the corporate stock), and employees
with authority to exercise management or policy control over the company must request that the Bureau of
Criminal Apprehension conduct a background investigation on the form provided. Completed form(s)
MUST be submitted with your license or renewal application.
O The work experience covering ten (10) years prior to application for each person listed.
O A surety bond for $10,000 (on the forms provided) with a power of attorney form.
O A check or money order made payable to "Department of Commerce" for:
New Applicants: $1,500.00 ($1,000.00 non - refundable application fee and $500.00 licensing fee.)
Amendment Fee: $100.00
License Renewal Fee $500.00
O If applicant is a corporation, attach a copy of the Articles of Incorporation filed with the Secretary of State.
O If the applicant is a partnership, attach a copy of the Articles /Agreement of Partnership.
O The name under which the business will be conducted must be exactly the same as the name on your
license. If operating under any name other than the exact corporate or partnership name or, if an individual
proprietorship doing business under any name other than your first and last name, attach a copy of the
Assumed Name Certificate by the Minnesota Secretary of State (651) 296 -2803.
To apply, complete (please type or print in ink) and submit this form with the required
fee to the'Department of Commerce, Division of Financial Examinations, 133 East 7th
Street, St. Paul, MN 55101. Check or money order must be payable to the "Department
of Commerce ". WE CANNOT ACCEPT CASH. Incomplete forms will be returned to
the business address listed.
*or further information on the application process, applicants may contact the Division at
(651) 282 -9855 or via e -mail, financial @state.mn.us. The application is available on the
Commerce website, www.commerce.state.mn.us.
C -N -P NORTHWEST, LTD.
Currency Exchange License Application
Applicant hereby states under oath that to the best of its knowledge and belief
the proposed location of the currency exchange, 1964 57' Avenue North,
Brooklyn Center, MN, is not within one -half (1/2) mile of another currency exchange.
C -N -P Nwjhwest, Ltd
By: Ul
Alan L. Cross
Its: Chief Financial Officer
•
State of Minnesota
County of Hennepin
The fore 0 statement was acknowledged before me
this ,�--- _day of j P AN y ,+W, *;MO
d•••. JACKIE D. HARTSOE
b Alan L. Cross, Chief Financial Officer of NOTARY �tl ISS MINNESOTA
y MY COMMISSION EXPIRES
JANUARY 31, 2000
C -N -P Northwest, Ltd, a Minnesota corporation,
on behalf of the Corporation.
- tness my hand and Official Seal
Notary Public""
CASH -N -PAWN OF MINNESOTA, LTD.
Currency Exchange License Application
December 1999
EXPLANATION OF "YES" ANSWF,R TO QUESTIONS 5. PAGE 3.
In November of 1996, a class action suit was brought against the Company alleging that
in making pawn loans prior to August, 1996, it had violated Minnesota Statutes relating
to usurious rates of interest, rebates of unearned interest, and disposition of customers'
collateral. The Company denied these allegations on the basis that pawn loans were not
subject to the usury limitation and the related issues even prior to the 1996 statutory
clarification. However, to avoid the expense and disruption of protracted litigation, the
Company in January 1998 reached a settlement regarding the allegations. Terms of the
settlement include a cash payment of $85,000 plus a minimum of $75,000 of scrip
certificates that can be redeemed at the Company's stores. If less than $75,000 of scrip is
redeemed, the Company must pay the remaining portion in cash.
CASH -N PAWN
CURRENCY EXCHANGE LICENSE APPLICATION
December 1999
• PRIOR 10 YEARS WORK EXPERIENCE OF OFFICERS & 10 0 /6 STOCKHOLDERS:
1. Jack D. Hartsoe Dates from: 5 -22 -85 to 9 -30-93
Name of Business: Cash America International, Inc.
900 W. 7'" Street
Ft. Worth, Texas
Position: Regional Manager
Dates from: 10 -1 -93 to Present
Name of Business: Cash -N -Pawn
Position: President / C.E.O.
2. Alan L. Cross Dates from: 2 -1971 to 9 -30-91
Name of Business: Arthur Andersen & Co.
45 So. 7" Street, #2400
Minneapolis, MN 55402
Position: C.P.A- ( Staff/ Manager / Partner)
Dates from: 2 -1 -92 to 3 -31 -93
Name of Business: Quantum Communications Group, Inc.
7901 Flying Cloud Dr., #250
Eden Prairie, MN 55344
Position: Exec. V. P. & C.F.O.
Dates from: 5 -15 -93 to 5 -31 -95
• Name of Business: NuSports Systems, Inc.
Carlson Center
601 Lakeshore Pkwy, #1050
Minneapolis, MN 55305
Position: C.F.O.
Dates from: 10 -16 -95 to Present
Name of Business: Cash -N -Pawn
Position: C.F.O.
3. Craig C. Avery Dates from: 12 -15 -77 to Present
Name of Business: Craig C. Avery Company
.7808 Creekridge Circle, #310
Bloomington, MN 55439
Position: President / Owner
4. James L. Ostenson Dates from: 1978 to Present
Name of Business: James Development Company
7808 Creekridge Circle, #310
Bloomington, MN 55439
Position: President (Real Estate Development)
5. Frederick Davis Dates from: Pre 1994
Name of Business: Student
• Dates from: •7 -1 -94 to Present
Name of Business: Cash -N -Pawn
Position: Clerk/Ass't MgrJStore Manager
CASH -N -PAWN
Proposed Check Cashing Fee Schedule
Calendar Year 2000
Government checks up to $500.00, Greater of 2 %z% of face
money orders or travelers checks amount or $1.00
(First time customer 5 %)
Government checks over $500.00 Greater of 3% of face
and payroll checks amount or $1.00
(First time customer 6 %)
•
WAI
of Minne 3s.3
,,.ate sot
5
SECRETARY OF STATE
CERTIFICATE OF INCORPORATION
I, Joan Anderson Growe, Secretary of State of
Minnesota, do certify that: Articles of Incorporation,
duly signed and acknowledged under oath, have been filed on
this date in the Office of the Secretary of State, for the
incorporation of the following corporation, under and in
accordance with the provisions of the chapter of Minnesota
Statutes listed below.
This corporation is now legally organized under the
laws of Minnesota.
�4 Corporate Name: C -N -P Northwest, Ltd.
Corporate Charter Number: 9K -257
Chapter Formed Under: 302A
This certificate has been issued on 11/18/1996.
�.. Secretary of State.
MWO 9/ JWW M W M IM
R ta. ati:�/•ti rae
� 36,33
ARTICLES OF INCORPORATION
OF
C -N -P NORTHWEST, LTD.
The undersigned, of full age, for the purpose of forming a corporation under and i-
pursuant to the provisions of Chapter 302A, Minnesota Statutes and all amendments thereto, hereby
adopts the following Articles of Incorporation:
ARTICLE I
NAME
m
The name or the corporation shall be C -N -P Northwest, Ltd.
ARTICLE II
REGISTERED OFFICE
The location and post office address of the corporation's registered office in the State /
of Minnesota shall be 1000 Shelard Parkway, Suite 405, St. Louis Park, Minnesota 55426.
• ARTICLE III
CAPITAL STOCK
The total authorized number of shares of the corporation shall be One Million
(1,000,000), all of which shall be voting common stock, and the par value of each share shall be one
cent ($.01). The directors shall have the authority to establish more than one class or series of
shares.
.ARTICLE IV
PURPOSES AND POWERS
The corporation shall have general business purposes and shall possess all powers
necessary to conduct any business in which it is authorized to engage, including but not limited to,
all those powers expressly conferred upon business corporations by Chapter 302A of the Minnesota
Statutes, as it may from time to time be amended, together with those powers implied therefrom.
ARTICLE V
DURATION
The corporation shall have perpetual duration.
-1-
024001
• ARTICLE VI
PREEMPTIVE RIGHTS: CUMULATIVE VOTING
The shareholders of the corporation shall not have the preemptive rights provided by
Section 302A.413 of the Minnesota Statutes. The shareholders of the corporation shall not have the
right of cumulative voting.
ARTICLE VII
INCORPORATOR
The name and post office address of the incorporator is as follows:
Name Address
Robert F. Strauss 1400 AT &T Tower
901 Marquette Ave.
Minneapolis, MN 55402
ARTICLE VIII
LIMITATION OF LIABILITY
• A director of the corporation shall not be personally liable to the corporation or its
shareholders for monetary damages for breach of fiduciary duty as a director, except for liability
(a) for any breach of the director's duty of loyalty to the corporation or its shareholders, (b) for acts
or omissions not in good faith or that involved intentional misconduct or a knowing violation of law,
(c) under section 302A.559 of the Minnesota Business Corporation Act or section 80A.23 of the
Minnesota Securities Act, or (d) for any transaction from which the director derived an improper
personal benefit. If the Minnesota Business Corporation Act is amended after this Article becomes
effective to authorize corporate action further eliminating or limiting the personal liability of
directors, then the liability of a director of the corporation shall be eliminated or limited to the fullest
extent permitted by the Minnesota Business Corporation Act, as so amended.
An repeal or modification of this Article VIII b the shareholders of the corporation
Y P Y rP
shall not adversely, affect any right or protection of a director of the corporation existing at the time
of such repeal or modification.
ARTICLE IX
POWERS OF BOARD OF DIRECTORS AND SHAREHOLDERS,
Section 9.1 Actions by Board of Directors and Shareholders., Except as specifically set forth
herein, the Board of Directors shall take action by the affirmative vote of a majority of all the
directors. The Directors may vote in person or by proxy at any duly held meeting. Any action
required or permitted to be taken at a meeting of the Board of Directors may be taken by written
• action signed by all of the directors then in office, unless the action is one which need not be
-2-
II
3641
• approved by the shareholders, in which case such action shall be effective if signed by the number
of directors that would be required to take the same action at a meeting at which all directors were
present. Except as specifically set forth herein, shareholders shall take action by the affirmative vote
of a majority of the corporation's issued and outstanding voting shares. Any action required or
permitted to be taken at a meeting of the shareholders may be taken by written action signed by all
of the shareholders.
Section 9.2 Merger. Recanitalization. Dissolution. Consolidation and Sale of Assets. If and
when authorized by the affirmative vote of seventy-five (75%) of the corporation's issued and
outstanding voting shares, including any class required by law, the corporation may recapitalize,
merge; dissolve, or consolidate into or with any other foreign or domestic corporation, or sell, lease,
exchange or otherwise dispose of all or substantially all of its property and assets, upon such terms
and conditions and for such consideration as seventy-five percent (75 %) of all the members of the
Board of Directors shall deem advisable.
Section 9.3 Issuance and Redemption of Stock. Except as otherwise specifically set forth
in these Articles or Amendments hereto, any issuance or redemption of any stock of the corporation
or any options, warrants, stock rights, convertible debentures or similar securities shall require the
affirmative vote of seventy-five percent (75 %) of the corporation's issued and outstanding voting
stock in addition to any other requirements of law.
Section 9.4 Adoption. Amendments or Reveal of Bvlaws. The power to adopt, amend or
repeal the Bylaws of the corporation is reserved to the Board of Directors, except that the Board may
S not make or alter any Bylaw fixing the number, qualifications, classifications or terms of office of
the directors. Such authority in the Board of Directors is subject to the powers of the voting
shareholders to enact, change or repeal such Bylaws by the required vote to take action at any annual
meeting or any special meeting called for that purpose.
Section 9.5 Amendment of Articles of Incomoration. The shareholders shall take action to
amend these Articles of Incorporation by the affirmative vote of seventy -five (75 %) of the
corporation's issued and outstanding voting shares.
IN WITNESS WHEREOF, I have hereunto set my hand this /0' of November,
1996.
Robert F. Strauss, Incorporator
STATE OF MINNESOTA
DEPARTMFILE9 F STATE
• Nov 18 1996
380094 A &Adao jkatj
of ads
-3-
ITV. OSS PUB. INFO. Fax : 612 - 297 -7067 Dec 16 '98 10:50 P. 01
MINNESOTA SECRETARY OF STATE
CERTIFICATE OF
-' ASSUMED NAME
,.FH EQ
Minnesota Statutes Chapter 333
°12327116 G;
Read the directions on reverse side before completing. Firing fee: $25.00
The filing of an assumed name does not provide a user with exclusive rights to that name. The filing is required for
consumer protection in order to enable consumers to be able to identify the true owner of a business.
PLEASETYPE OR PRINT LEGIBLY IN BLACK INK FOR MICROFILMING PURPOSES.
I. State the exact assumed name under which the business is or will be conducted: (one business name per application)
CASN — PAWAI
2 State the address of the principal place of business. A complete street address or rural route and rural route box number is
required; the address cannotbe a P.0.8ox
1 ( -Al S A✓c1J06 / CEtaTER l�i.l SS �/3a
Street City State Zip code
3, � t the name and complete street address of all persons conducting business underthe above Assumed Name.
ach additional sheet(s) if necessary. If the business owner is a corporation, provide the legal corporate name and
registered office address of the corporation.
Name (please print) street City State Zp
C-N -P �IoRT/J��S'T, LTD. /otio SXsLAAD P Pxr syj �1N1F�ikPoLi3 Mil ssy►aG
.SJITL �Hos
4. 1 certify that I am authorized to sign this certificate and I Furth certify that I understand that by signing this certificate, I am
subject to the penalties of perjury as set forth in Minn es section 609.48 as if I had signed this certificate under
oath.
Signature (ONLY one person listed in #3 is required to sign.)
A LA4 L. G�os-s 1
e Print Name and Title
5 � � sas o ssy
Contact Person Daytime Phone Number
05920807 Rev. 11/9a
'trill!• -.
DEC 2 68941429
BOND MTMBER;
STATE OF MINNESOTA.
• DEPARTbOM OF COMMERCE
CURRENCY LXCXANGL 8V=TV SOND
KNOW A.L.E. PERSONS BY TRESB PRESENTS: Th Cash -N -Pawn Northwest, Ltd.
n Minnesota Corporation (Name of C uTreacy Exckwve)
Pcscripdaa 0rA0rm�afbusiacss orgaeimtion, including state of;ueovoratiw)
with busi,kss offct at 1964 57th Ave,,. N. Brooklyn Center, 1�1V 55430
as PRINCIPAL and WESTERN S[TFETvp wry' State, Zip)
(Name of 5
a corporation duly organimd under the laws of the States of South Dakota which is authorized
io wigase in thebtuiaess of insurance in the State of Kn tsow% as SURETY, ere hembyhcld and L'rmYy bound to
the Ilcpartment of Cornmace of the Stato OfMi:mesota in the stun of TBW THOUSAND X)014A�W (S10,000).
bL
e e Surety hereby bind themselves, •3teir reprarant3d uccess
vns, successors 'and assures, jaintly an acveraA d
these pre rerenta. y by
The parties further a ®ce that:
I. The purposo of this obligation, which is regidred by Minnesota Statatos, Section 53A..08, is to secure rho
compliance byprnncipal with fhet terms afMhulesata SMMU. Seat?dn 53A.02 to 53A - 13, and any other legatl
oblit,etipW arising out of two Prinaipat's conduct as st cumen exchanw.
2. This bond is for the benefit of the State of Minnesota and all persons suffering damgcS by reason of the
Principal's frt�tuo 9 vwszply witb Minnesoto StuhYbas, Scotian 53A.02 to S3A.08, or other leapl obligations
arising out a s conduct as a currency exchange,
i�he Principal shall vioUte 'Yi►lic ntsbie. S-ataWs, Section 53A.02 to 53A.09, or a:her legal abligations arising
out of its conduct as a anrreticy exchange. the Com m95sionc r of Commcror, as v/c It as anyparsun damaged as
a result of such violators shy] hare, is aciditian to all other legal remedies, a ri&t of action on this bond ix
the name ofthe Wumd party for loss sustained by th injured party;
4. This bond shall. be effective from December 20, 1999 =til rkKember 31, 2000
(Year)
Signed anti Sealed thi3 22nd e e, December � 1999
D WESTERN SURETY CCMPANY Sy. d1(� , M. Bent, Asst Se,
(Name of CASH -N -PAWN (Si of in t o�Surety Co
mph]►)
NORTHWEST, LTD. gy . ,�
(Name OfC`norrc Exchange) xchange) (Si - of Stele l'ro --
pr�tur, �'armeT,'or p'['t sidcni)
YY.)k Dr- PARTMENT USE ONLY
Appmvzd as to form and axeaurion by Department of Commora4.
Date
mg OC CE BOND 7199
` ASTRUCTIONS:
1. TNI side is to be oompieted by a notify public for both th e Principal and the Surety., . ,
2. Please attach the Power of Attorney and Certified Copy of the Corporate Resolution r +feh►ttlfntc PERILA =
' + xOTARY PUBLIC - MINNESOTA
ACKNOWLEDGMENT OF INDIVIDUAL =` HENNEPIN COUNTY
m z <•. My Commission Expires Jan. 31. 2000 "
STA TE .:.... .
C''UNT`I OF ate hh y117 ACKNOWLEDGMENT OF PRINCIPAL
On this �/ ' day of before me pamonally appeared
! known tom a- j1n#d.. vidual whose name i scnb on this
oond
form, who acknowledged that this hand "s ixeouted for the purposes thmain
[ Notary Seal p
Pirblrc -
1
ACKNOWLEDGMENT OF PARTNERSNIP
STATE OF )
COUNTY OF j ACKNOWLEDGMENT OF PRINCIPAL
On this day of 199_ before me personally appeared
known to me to be a partner in the partnership whose name is
subscribed on this bond forth, who edmowlodged to me that this bond was executed on behalf of M* partnership for the purposes
therein contained.
(Notary Seat) Notary Public
�J ACKNOWLEDGMENT OF CORPORATION
DATE OF/ I k �GfC�
`��� sL ACKNOWLEDGMENT Of PRINCIPAL
COUNTY OF / !f "
On MIS day of �E�l�`1 .4W before me personally appeared
who acknowledged that he or she is the
dpi corporation whose name is subscribed on this bond form, and plat as a corporate officer. he
Mii�Ar . t
JANIS R. NICOLAY
f1IDTMY PUBLIC - M SOTA I 1
1 by Comnbdm Expires Jsn• 31, 2005 the purposes therein contained
/ /Notary Public
ACKNOWLEDGMENT OF SURETY
STATE OF SOUTH DAKOTA )
`pUNTy Minnehaha ACKNOWLEDGMENT OF SURETY
On tNs 22nd day of December 199_ babes me penonany appeared
VL !Sent. toss t. Sec who acknwviod9ed that he or she In the attorney in fact who is
authorized to si on behalf of WESTERN SURETY COMPANY (surety company),
South DaKota corporation, on behalf the oorporation.
(state or place or corporation) - M. ANAWSKI, Notary Public
My Commission Expires 10 -8 -05
Lary Public
(Notary ;teal)
•
• Western Surety Comp
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS:
That WESTERN SURETY COMPANY, a corporation organized and existing under the laws of the State of South Dakota,
and authorized and licensed to do business in the States of Alabama, Alaska, Arizona, Arkansas, California, Colorado,
Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky,
Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New
Hampshire. New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,
Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia,
Wisconsin, Wyoming, and the United States of America, does hereby make, constitute and appoint
M. Bent o f Sioux Falls
State of South Dakota , its regularly elected Assistant Secretary
as Attorney -in -Fact, with full power and authority hereby conferred upon him to sign, execute, acknowledge and deliver for
and on its behalf as Surety and as its act and deed, all of the following classes of documents to -wit:
Indemnity, Surety and Undertakings that may be desired by contract, or may be given in any action or proceeding in any court of law or
equity, poIIcft)Agemnifying employers against loss or damage caused by the misconduct of their employees; official, bail, and surety and
fidelity all cases where indemnity may be lawfully given; and with full power and authority to execute consents and
waiv t ode{ ,ce or extend any bond or document executed for this Company, and to compromise and settle any and all claims
or, ftds ew� r against said Company.
tae'
V rn Surety ' art further certifies that the following is a true and exact copy of Section 7 of the by -laws of Western Surety
• any duly adopted ai_w in force, to -wit:
: on iolicies, undertakings, Powers of Attorney, or other obligations of the corporation shall be executed in the
co r , i ne -of 'any by the President, Secretary, any Assistant Secretary, Treasurer, or any Vice President, or by such other
Officers° �t � erectors may authorize. The President, any Vice President, Secretary, any Assistant Secretary, or the Treasurer may
appoint Att$3ffeii act or agents who shall have authority to issue bonds, policies, or undertakings in the name of the Company. The
corporate seat is not necessary for the validity of any bonds, policies, undertakings, Powers of Attorney or other obligations of the
corporation. The signature of any such officer and the corporate seal may be printed by facsimile.
In Witness Whereof, the said WESTERN SURETY COMPANY has caused these presents to be executed by its
President _ with the corporate seal affixed this 22nd day of December 1999
ATTEST WESTE S RETY COMP Y
Y -
Assistant Secretary Stephen T. Pate, President
STATE OF SOUTH DAKOTA
s
COUNTY OF MINNEHAHA
On this 22nd day of December 1999 , before me, a Notary Public, personally appeared
Stephen T. Pate _ _ . and A. Vietor
who, being by me duly sworn, acknowledged that they signed the above Power of Attorney as President
and Assistant Secretary, respectively, of the said WESTERN SURETY COMPANY, and acknowledged said instrument to be
the voluntary act and deed of said Corporation.
• ��gyyyyy�hy��h�gy�y�h�yyy
s B. THOMAS
s QEA NOTAR Y PUBLIC SE SOUTH DAKOTA Of,
s My Commission Expires 6 -2 -2003 8 Notary Public
Form 672 -11 -95
• Western
RIDER
It is hereby mutually agreed and understood by and between the Principal
and WESTERN SURETY COMPANY, that instead of as originally written:
The Principal's name has been changed to read:
C -N -P Northwest, Ltd.
No further changes other than above.
•
Nothing herein contained shall be held to vary, alter, waive or extend any of the terms, limits or
conditions of the bond except as hereinabo_ve set forth.
� f Y3
a be .� s effective on the 28th day of January 2000 , at
o'clock a.m., standard time.
U cfi"ed °�' firming part of bond No.
68941429
is b TERN SURETY COMPANY of Sioux Falls, South Dakota, to
° ° e9• ' .8 4D Pi. '• e a<
Eft iE 3t%0�
C -N- Morthwest, Ltd.
Signed this 28th day of January 2000
• WESTERN SURETY COMP NY
By •
President
Form 128 -9-95 00
• City of Brooklyn Center
(Official Publication)
NOTICE OF INTENT TO CONSIDER A CURRENCY EXCHANGE LICENSE
Notice is hereby given that the City Council of the City of Brooklyn Center will consider the
application for a currency exchange license from C -N -P Northwest, Ltd. dba Cash -N -Pawn, to
operate at 1964 57th Avenue North, Brooklyn Center, Minnesota. This consideration will be given
at the April 10, 2000, City Council meeting at 7 p.m. or as soon thereafter as the matter may be
heard. The meeting will be held in the Council Chambers of the Brooklyn Center City Hall, 6301
Shingle Creek Parkway, Brooklyn Center, Minnesota.
Sharon Knutson
City Clerk
•
I
CURRENCY EXCHANGES
Section 23 -2201. LICENSE REQUIRED; DEFINITION. No person shall engage in the business
of currency exchange within the City of Brooklyn Center without a license as provided by Minnesota
Statutes, Chapter 53A. The term "Currency Exchange" has the meaning given in Minnesota Statutes,
Section 53A.01, Subd. 1.
Section 23 -2202. ACTION ON REFERRAL FROM COMMISSIONER.
A. Upon referral of an application for a currency exchange license from the Commissioner of
Commerce and upon completion of statutory procedures for the consideration thereof, the
Council may approve the application, decline to act (in which case concurrence will be
resumed b 'o disappro the ap If the ap i
p y operate n of law), or disappro pp s
disapproved, the Council shall state its reasons therefor. Notice of disapproval may be
communicated to the Commissioner of Commerce before the completion of a resolution
stating such findings when necessary to avoid a presumption of concurrence.
B. Disapproval of an application may be based on one or more of the following grounds, in
addition to any other ground allowed by law:
1. Violation of any provision of the state currency exchange law contained in Minnesota
Statutes, Chapter 53A.
• 2. The applicant is not at least eighteen 18 ears of a
PP g ( ) e. Y g
3. The applicant is not the real party in interest in the application.
4. The location of the business for which a new currency exchange license is sought is
within one -half mile of an existing currency exchange licensed by the state.
5. The applicant or its proposed business location does not comply with applicable
zoning, building, fire, and health codes.
6. The license or permit was procured by misrepresentation of material facts, fraud,
deceit, or bad faith.
7. The applicant or one acting in his or her behalf made oral or written misstatements or
misrepresentations of material facts in or accompanying the application.
8. The license or permit was issued in violation of law, without authority, or under a
material mistake of fact.
Cit Brook Center 23 -79 Cit � o f y Ordinance
I
• 9. (a) The licensee or applicant (or any person whose conduct may by law be imputed
to the licensee or applicant) has violated or performed any act which is a violation
of, any of the provisions of these chapters or of any statute, ordinance or
regulation reasonably related to the licensed activity, regardless of whether
criminal charges have or have not been brought in connection therewith;
(b) The licensee or applicant has been convicted of a crime that may disqualify said
applicant from holding the license in question under the standards and procedures
in Minnesota Statutes Chapter 364; or
(c) The licensee or applicant (or any person whose conduct may by law be imputed
to the licensee or applicant) has engaged in or permitted a pattern or practice of
conduct of failure to comply with laws reasonably related to the licensed activity
or from which an inference of lack of fitness or good character may be drawn.
10. The licensed business, or the way in which such business is operated, maintains or
permits conditions that unreasonably annoy, injure, or endanger the safety, health,
morals, comfort, or repose of any considerable number of members of the public.
11. The licensee or applicant has shown by past misconduct or unfair acts or dealings:
physical abuse, assaults, or violent actions done to others, including, but not limited
to, actions meeting the definition of criminal sexual conduct pursuant to Minnesota
• Statutes Sections 609.342 through 609.3451; sexual abuse, physical abuse, or
maltreatment of a child as defined in Minnesota Statutes Section 626.5 56, subdivisions
2 and 10e, including, but not limited to, acts which constitute a violation of Minnesota
Statutes Sections 609.02, subdivision; 609.321 through 609.3451; or 617.246; neglect
or endangerment of a child as defined in Minnesota Statutes Section 626.557,
subdivision 2; the manufacture, distribution, sale, gift, delivery, transportation,
exchange, or barter of a controlled substance as defined in Minnesota Statutes Chapter
152; the possession of a controlled substance as defined in Minnesota Statutes Chapter
152 in such quantities or under circumstances giving rise to a reasonable inference that
the possession was for the purpose of sale or distribution to others; or by the abuse of
alcohol or other drugs, that such licensee or applicant is not a person of good moral
character or fitness required to engage in a licensed activity, business, or profession.
12. The applicant or someone acting on his or her behalf or under the applicant's direction
or control has violated any of the provisions of Section 23 -2203.
C. Persons and Corporations. If an applicant is a partnership, the application may be denied
if there is a basis for denial as to any partner. If the applicant is a corporation, the
application may be denied if there is a basis for denial as to any (i) shareholder holding
more than five (5) percent of the outstanding or issued stock of the corporation, or (ii)
officer or director of the corporation, or (iii) employee of the enterprise having policy or
•
City of Brooklyn Center 23 -80 City Ordinance
. management control over the enterprise.
Section 23 -2203. RESTRICTIONS. All Currency Exchanizes shall be operated and maintained
in accordance with the requirements of state law and of this section:
A. The business may not be advertised with backlighted signs or awnings, roof signs, portable
signs, temporary signs, or freestanding signs. Window signs shall not exceed thirty (30)
percent of the window area and shall not block views into the building at eye level.
B. The window and door area of any existing first floor facade that faces a public street or
sidewalk shall not be reduced, nor shall changes be made to such windows or doors that
block views into the building at eye level.
C. For new construction, at least thirty (30) percent of the first floor facade that faces a public
street or sidewalk shall be windows or doors of clear or lightly tinted glass that allow views
into the building at eye level.
D. The use of bars, chains or similar security devices that are visible from a public street or
sidewalk shall be prohibited.
E. The premises, all adjacent streets, sidewalks, and alleys, and all sidewalks and alleys within
one hundred (100) feet shall be inspected regularly for purposes of removing any litter
• found thereon.
F. The business premises shall not be so equipped as to enable employees to activate remote
locking mechanisms to lock in patrons, customers, or others.
G. The licensee shall not engage in street solicitation for the business or distribute handbills
within three hundred (300) feet of the licensed premises.
H. The licensee shall not give away cigarettes or liquor to customers either free or in
connection with a check cashing transaction.
I. The business premises shall not be located within 300 feet of a school, day care center,
church, hospital, on -sale liquor establishment, halfway house, theater, residence, pawnshop,
secondhand goods dealer, tattoo establishment, body piercing establishment, or massage
parlor.
Section 23 -2204. SEVERABILITY. If any part of this ordinance shall be adjudged to be invalid
by a court of competent jurisdiction, such judgment or decree shall not affect or impair the remainder
of this ordinance.
Section 23 -2205. PENALTY. Any person who violates or fails to comply with any provision
•
City of Brooklyn Center 23 -81 City Ordinance
. of this ordinance shall be guilty of a misdemeanor and subject to a find not to exceed $700 or
imprisonment for a period not to exceed ninety (90) days or both, together with the costs of
prosecution. Such penalty may be imposed in addition to a decision by the Council to disapprove
applications for new licenses or license renewals.
•
•
City of Brooklyn Center 23 -82 City Ordinance
470 Pillsbury Center
200 South Sixth Street
Minneapolis MN 55402
Graven (612) 337 -9300 telephone
(612) 337 -9310 fax
c H A R T E R E D http: / /wwwkennedy- graven.com
CHARLES L. LEFEVERE
Attorney at Law
Direct Dial (612) 337 -9215
email: clefevere @kennedy- graven.com
March 13, 2000
Mr. Michael McCauley
City Manager
City of Brooklyn Center
6301 Shingle Creek Parkway.
Brooklyn Center, MN 55430 -2199
RE: Application for Currency Exchange License at Pawnshop Location
Dear Mike:
The City_ has received an application to operate a currency exchange from a party currently
licensed for a pawnshop operation at the same location. You have asked whether both a currency
exchange and pawnshop business can be licensed for the same address:
The City Code prohibits issuance of a currency exchange license for a premises which is within
300 feet of a pawnshop. Section 23 -2203. Likewise, a pawnshop license may not be issued to a
premises within 300 feet of a currency exchange. Section 23 -610. At first blush it would seem,
therefore, that a currency exchange license may not be issued for a premises which currently has
a pawnshop license since the two would obviously be within 300 feet of each other. However, if
it is the intent of the City that two such establishments may not occupy the same premises, it may
be advisable to clarify this point by an ordinance amendment.
It seems to me that the ordinance is open to some interpretation for the following reason: Just as
the Code prohibits pawnshops and currency exchanges from being licensed within 300 feet of
each other, the Code also prohibits the licensing of both pawnshops and second hand goods
dealers within 300 feet of each other. In the case of these businesses, the code provides that if a
party is conducting both a pawnshop business and a second hand goods business, the applicant
must secure two licenses. Sections 23 -602 and 23 -652. This would seem to contemplate that
two such businesses may exist in the same location. In other words, if the code allows a
pawnshop license and hand goods license to be issued for the same premises would
a pawnshop and currency exchange business be ineligible for licenses on the same premises.
s
CLL- 177472v1
BR291 -4
Mr. Michael McCauley
March 13, 2000
• Page 2 of 2
It seems to me that there are two somewhat different public purposes served by the ordinance
provisions that require separation of uses. One of these is to protect one use from the adverse
impacts of another use. For example, pawnshops may not be located within 300 feet of churches
and schools. Presumably the purpose of this provision is to protect churches and schools from
the adverse impacts of a nearby pawnshop business. It could not be reasonably suggested that a
pawnshop could operate within a school since that would obviously be within 300 feet of a
school. However, some of the uses specified in the ordinance are probably specified not to
protect one use from another, but to prevent an unreasonable concentration of similar uses in one
location of the City. For example, the required separation between pawnshops and massage
parlors was probably not intended to protect the massage parlor, but to protect an unreasonable
concentration of such businesses. If the purpose of prohibiting the location of pawnshops within
300 feet of currency exchange businesses is not for the protection of either the pawnshop or the
currency exchange business, it could be argued that the purpose of the ordinance would be served
if they located on the same premises just as it would if second hand goods dealers and
pawnshops co- located on the same premises.
Therefore, it seems that it would be advisable to request some input from the City Council as to
whether the various uses listed in these code provisions should be allowed to locate on the same
premises. It may be that the intent of the ordinance is that pawnshops and second hand goods
• dealers may occupy the same premises provided two licenses are issued, but that the other listed
businesses may not. If this is the case, I would recommend that the City act to deny the
application for a currency exchange license on the ground that it is for a place that is ineligible
for a license. At the same time, I believe it would be advisable to modify the code provisions
which require separation to make it entirely clear which uses may be allowed to exist on the
same premises and which may not.
Even if the Council concludes that it is reasonable for two such businesses to exist on the same
premises, it may be advisable to clarify these ordinance provisions so no questions arise in the
future as to which types of business may be co- located and which may not.
Please iet me kno i
ow ifyou have an furmer uescians aboui iius maer. �ti
Y q.
Very truly yours,
Charles L. LeFevere
CLL:lh
CLL- 177472v1
BR291 -4
CITY OF BROOKLYN CENTER DRAFT
Notice is hereby given that a public hearing will be held on the 24th day of April, 2000, at 7 p.m.
or as soon thereafter as the matter may be heard at City Hall, 6301 Shingle Creek Parkway, Brooklyn
Center, Minnesota, to consider an ordinance relating to the location of secondhand goods dealers,
pawnshops, currency exchanges, tattoo and body piercing establishments, and massage parlors.
Auxiliary aids for handicapped persons are available upon request at least 96 hours in advance.
Please notify the City Clerk at 763 -569 -3306 to make arrangements.
ORDINANCE NO.
AN ORDINANCE RELATING TO THE LOCATION OF SECONDHAND GOODS
DEALERS, PAWNSHOPS, CURRENCY EXCHANGES, TATTOO AND BODY
PIERCING ESTABLISHMENTS, AND MASSAGE PARLORS; AMENDING
BROOKLYN CENTER CITY CODE SECTIONS 23 -610, 23 -661, 23 -2309, 23-
2203, AND 23 -1709
THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS
FOLLOWS:
Section 1. Brooklyn Center City Code Section 23 -610 (pawnbrokers) is amended
as follows:
Section 23 -610. PLACES INELIGIBLE FOR LICENSES. A license will not be
issued or renewed under this section for any place or for any business:
a. If taxes, assessments or other financial claims of the City or the State of
Minnesota on the licensee's business premise are delinquent and unpaid;
b. If the premise is located within 300 feet of. or in the same building as. or on
the same le gally subdivided lot, p iece. or parcel of land as anv of the .
following uses: a school, day care center, church, hospital, on -sale liquor
establishment, halfway house, currency exchange operation, theater,
residence, secondhand goods dealer, tattoo establishment, body piercing
establishment, [or] massage parlor. or another pawnshop: provided however.
that a nawnshpp and a secondhand go ods dealer may occupy a single licensed
premises i common if both activiti are licensed for that premises;
c: Where operation of a licensed premise would violate zoning ordinances;
d. Where the applicant's present license was issued conditioned upon the
applicant making specified improvements to the licensed premise or the
• property of the licensed premise which improvements have not been
completed or;
DRAFT - Page 2 1st reading approved by Council 3/27/00
e. Established as a pawnshop after April 2, 1996, which is within ten (10)
driving miles of any gambling casino.
Section 2. Brooklyn Center City Code Section 23 -661 (secondhand goods dealers)
is amended as follows:
Section 23 -661. PLACES INELIGIBLE FOR LICENSES. A license will not be
issued or renewed under this section for any place or for any business:
a. If taxes, assessments or other financial claims of the City or the State of
Minnesota on the licensee's business premise are delinquent and unpaid;
b. Within 300 feet of, or in the same building as, or on the same legally
subdivided 1pt piPrle, or parcel of land as any of the following uses: a school
or day care center if the secondhand goods dealer will receive firearms or if
located within 300 feet of a pawnshop, tattoo establishment, currency
exchange operation, massage parlor, [or] body piercing establishment, or
another secondhand g(?eds dealer: provided however. that a pawnshop and a
• secondhand goods dealer may occupy a single licensed premises in common
if both activities are licensed for that premises;
C. Where operation of a licensed premise would violate zoning ordinances; or
d. Where the applicant's present license was issued conditioned upon the
applicant making specified improvements to the licensed premise or the
property of the licensed premise which improvements have not been
completed.
Section 3. Brooklyn Center City Code Section 23 -2309 (tattoo and body piercing
establishments) is amended as follows:
Section 23 -2309. PLACES INELIGIBLE FOR LICENSE
a. No license shall be granted or renewed for operation on any property on
which taxes, assessments, or other financial claims of the state, county,
school district, or city are due, delinquent, or unpaid. In the event a suit has
been commenced under Minnesota Statutes, Section 278.0- 278.03,
questioning the amount or validity of taxes, the City Council may on
application waive strict compliance with this provision; no waiver may be
• granted, however, for taxes or any portion thereof which remain unpaid for
a period exceeding one (1) year after becoming due.
• DRAFT - Page 3 1st reading approved by Council 3127100
b. No license shall be granted or renewed if the property is not properly zoned
or does not qualify as a legal nonconforming use for tattooing and/or body
piercing establishments.
C. Premises Licensed For Alcoholic Beverages. No license shall be granted or
renewed if the premises is licensed for the furnishing of alcoholic beverages
or is an adult establishment pursuant to Section 35 -2182.
d. No license shall be granted if the premises is within 300 feet of. or in the
same building as. o on the sa me legally subdivided lot. niece. or parcel of
land as any of the following uses: a church, school, day care center, hospital,
on -sale liquor establishment, halfway house, currency exchange operation,
theater, residence, pawnshop, secondhand goods dealer, [or] massage parlor,
or another tattoo or body piercing establishment.
Section 4. Brooklyn Center City Code Section 23 -2203 (currency exchanges) is
amended as follows:
Section 23 -2203. RESTRICTIONS. All Currency Exchanges shall be operated and
maintained in accordance with the requirements of state law and of this section:
A. The business may not be advertised with backlighted signs or awnings, roof
signs, portable signs, temporary signs, or freestanding signs. Window signs
shall not exceed thirty (30) percent of the window area and shall not block
views into the building at eye level.
B. The window and door area of any existing first floor facade that faces a
public street or sidewalk shall not be reduced, nor shall changes be made to
such windows or doors that block views into the building at eye level.
C. For new construction, at least thirty (30) percent of the first floor facade that
faces a public street or sidewalk shall be windows or doors of clear or lightly
tinted glass that allow views into the building at eye level.
D. The use of bars chains or similar security devices that are visible from a
public street or sidewalk shall be prohibited.
E. The premises, all adjacent streets, sidewalks, and alleys, and all
sidewalks and alleys within one hundred (100) feet shall be inspected
regularly for purposes of removing any litter found thereon.
•
DRAFT - Page 4
Istreadin approved b
g S PP Y Council 3127100
F. The business premises shall not be so equipped as to enable employees to
activate remote locking mechanisms to lock in patrons, customers, or others.
G. The licensee shall not engage in street solicitation for the business or
distribute handbills within three hundred (300) feet of the licensed premises.
H. The licensee shall not give away cigarettes or liquor to customers either free
or in connection with a check cashing transaction.
I. The business premises shall not be located within 300 feet of. or in the same
building as. or on the same legally subdivided lot. niece. or parcel of land as
anv of the following uses: a school, day care center, church, hospital, on -sale
liquor establishment, halfway house, theater, residence, pawnshop,
secondhand goods dealer, tattoo establishment, body piercing establishment,
[or] massage parlor. or another currencv exchange.
Section 5. Brooklyn Center City Code Section 23 -1709 (massage parlors) is
amended as follows:
Section 23 -1709. CONDITIONS GOVERNING ISSUANCE OF A LICENSE.
1. No license shall be issued if the applicant or any of its owners, managers,
employees, agents or interested parties is a person of bad repute.
2. Licenses shall be issued only if the applicant and all of its owners, managers,
agents, employees or interested parties are free of convictions for offenses
which involve moral turpitude or which relate directly to such person's
ability, capacity or fitness to perform the duties and discharge the
responsibilities of the licensed activity.
3. Licenses shall be issued only to applicants who have not, within one year
prior to the day of application, have been denied licensure, have had a license
revoked or suspended in or by any community or political subdivision or the
State of Minnesota and whose owners, managers, or any interested parties
have not been similarly denied, revoked, or suspended.
4. Licenses shall be issued only to applicants who have answered fully and
truthfully all of the information requested in the application, who have paid
the full license fee and fee for investigation and have cooperated fully and
• truthfully with the City in the review of the application.
i
• DRAFT - Page 5 1st reading approved by Council 3/27/00
5. If the applicant is a natural person, a license shall be granted only if such
person is 18 years of age or older.
6. Licenses may only be granted when in complete conformity with the zoning
code of the City of Brooklyn Center. No license shall be granted for any
premises which is within 300 feet of. or in the same building as. or on the
same leaally subdivided lot. piece or parcel of land as a currencv exchange
operation. secondhand goods dealer. pawn shop. tattoo or bodv piercing
establishment. another massage parlor. school. day care center. church.
hospital. on -sale liquor establishment. halfwav house. theater or residence.
7. Licenses shall be granted only to establishments which can meet the safety,
sanitary and building code requirements of the City.
8. A license shall not be granted if granting the license (a) would be inconsistent
with the comprehensive development plans of the City, or (b) would
otherwise have a detrimental effect upon other property or properties in the
vicinity.
• Section 6. This ordinance shall become effective after adoption and upon thirty 30
P P rty ( )
days following its legal publication.
Adopted this day of , 2000.
Mayor
ATTEST:
City Clerk
Date of Publication
Effective Date
• (Strikeout indicates matter to be deleted, underline indicates new matter.)
http: / /www.revisor.leg. state .mn.us /cgi- bin/getstatchap.pl
Minnesota Statutes 1999, Chapter 53A.
Copyright 1999 by the Office of Revisor of Statutes, State of Minnesota.
== 53A.01
53A.01 Definitions.
Subdivision 1. Currency exchange. "Currency exchange"
means any person, except a bank, trust company, savings bank,
savings association, credit union, or industrial loan and thrift
company, engaged in the business of cashing checks, drafts,
money orders, or travelers' checks for a fee. "Currency
exchange" does not include a person who provides these services
incidental to the person's primary business if the charge for
cashing a check or draft does not exceed $1 or one percent of
the value of the check or draft, whichever is greater.
Subd. 2. Commissioner. "Commissioner" means the
commissioner of commerce.
HIST: 1989 c 247 s 1; 1995 c 202 art 1 s 25
53A.02
53A.02 License.
Subdivision 1. Requirement. A person may not engage
in the business of a currency exchange without first obtaining a
license from the commissioner. Not more than one place of
business may be operated under the same license, but the
• commissioner may issue more than one license to the same
licensee upon compliance by the applicant with all the
provisions of this chapter for each new license issued.
Subd. 2. Distance limitation. No license may be
issued or renewed under this chapter if the place of business to
be operated under the license is located or proposed to be
located within one -half mile of another licensed currency
exchange. The distance limitation imposed by this subdivision
is measured by a straight line from the closest points of the
closest structures involved.
Subd. 3. Prohibition. A licensee may not contract
with another person or business entity to manage the currency
exchange business. This subdivision does not prohibit the
licensee from employing persons to operate a currency exchange
facility.
HIST: 1989 c 247 s 2; 1992 c 504 s 2
== 53A.03
53A.03 Application for license; fees.
(a) An application for a license must be in writing, under
oath, and in the form prescribed and furnished by the
commissioner and must contain the following:
(1) the full name and address (both of residence and place
of business) of the applicant, and if the applicant is a
• partnership or association, of every member, and the name and
business address if the applicant is a corporation;
(2) the county and municipality, with street and number, if
any, of all currency exchange locations operated by the
1 of 7 4/5/00 8:22 PM
http: / /www. revisor. leg. state.mn.us /cgi- bin/getstatchap.pl
applicant; and
• (3) the applicant's occupation or profession, for the ten
years immediately preceding the application; present or previous
connection with any other currency exchange in this or any other
state; whether the applicant has ever been convicted of any
crime; and the nature of the applicant's occupancy of the
premises to be licensed; and if the applicant is a partnership
or a corporation, the information specified in this paragraph
must be supplied for each partner and each officer and director
of the corporation. If the applicant is a partnership or a
nonpublicly held corporation, the information specified in this
paragraph must be required of each partner and each officer,
director, and stockholders owning in excess of ten percent of
the corporate stock of the corporation.
(b) The application shall be accompanied by a nonrefundable
fee of $1,000 for the review of the initial application. Upon
approval by the commissioner, an additional license fee of $500
must be paid by the applicant as an annual license fee for the
remainder of the calendar year. An annual license fee of $500
is due for each subsequent calendar year of operation upon
submission of a license renewal application on or before
September 1. Fees must be deposited in the state treasury and
credited to the general fund. Upon payment of the required
annual license fee, the commissioner shall issue a license for
the year beginning January 1.
(c) The commissioner shall require the applicant to submit
to a background investigation conducted by the bureau of
criminal apprehension as a condition of licensure. As part of
• the background investigation, the bureau of criminal
apprehension shall conduct criminal history checks of Minnesota
records and is authorized to exchange fingerprints with the
Federal Bureau of Investigation for the purpose of a criminal
background check of the national files. The cost of the
investigation must be paid by the applicant.
(d) For purposes of this section, "applicant" includes an
employee who exercises management or policy control over the
company, a director, an officer, a limited or general partner, a
manager, or a shareholder holding more than ten percent of the
outstanding stock of the corporation.
HIST: 1989 c 247 s 3; 1992 c 504 s 3; 1993 c 354 s 1; 1999 c
223 art 2 s 2
== 53A.04
53A.04 Approval or denial of an application.
(a) Within 30 days after the receipt of a complete
application, the commissioner shall deny the application or
submit the application to the governing body of the local unit
of government in which the applicant is located or is proposing
to be located. The commissioner may not approve the application
without the concurrence of the governing body. The governing
body shall give published notice of its intention to consider
the issue and shall solicit testimony from interested persons,
including those in the community in which the applicant is
located or is proposing to be located. If the governing body
has not approved or disapproved the issue within 60 days of
receipt of the application, concurrence is presumed. The
commissioner must approve or disapprove the application within
30 days from receiving the decision of the governing body. The
governing body shall have the sole responsibility for its
2 of 7 4/5/00 8:22 PM
http: / /www. revisor. leg. state .mn.us /cgi- bin/getstatchap.pl
decision. The state shall have no responsibility for that
decision.
• (b) If the application is denied, the commissioner shall
send by mail notice of the denial and the reason for the denial
to the applicant at the address contained in the application.
If an application is denied, the applicant may, within 30 days
of receiving the notice of a denial, request a contested case
hearing pursuant to chapter 14; provided that if the denial is
based upon the refusal of the governing body to concur the
governing body must afford the applicant a hearing. The
applicant shall have no right to the hearing provided for in
this section if the denial is based upon the governing body's
refusal to concur but shall have a hearing before the governing
body.
(c) This section applies to initial applications and
renewal applications.
(d) The state shall have no responsibility for the action
of the governing body.
HIST: 1989 c 247 s 4; 1992 c 504 s 4
== 53A.05
53A.05 Change of name, ownership, or location.
Subdivision 1. Name or location. If a licensee
proposes to change the name or location of any or all of its
currency exchanges, the licensee shall file an application for
approval of the change with the commissioner. The commissioner
• shall not approve a change of location if the requirements of
sections 53A.02, subdivision 2, and 53A.04 have not been
satisfied. If the change is approved by the commissioner, the
commissioner shall issue an amended license in the licensee's
new name or location. A $100 fee must be paid for the amended
license.
Subd. 2. Ownership. The licensee shall notify the
commissioner 30 business days in advance of any change in
ownership of the currency exchange. The commissioner may revoke
the currency exchange license if the new ownership would have
resulted in a denial of the initial license under the provisions
of chapter 53A.
HIST: 1989 c 247 s 5; 1992 c 504 s 5; 1999 c 223 art 2 s 3
== 53A.06
53A.06 Fine, suspension, or revocation of license.
(a) The commissioner may suspend or revoke any license
under section 45.027 if the commissioner finds that:
(1) the licensee has failed to pay the annual license fee
or to maintain in effect the required bond or to comply with any
order, decision, or finding of the commissioner under Laws 1989,
chapter 247;
(2) the licensee, or any officer or director of a corporate
licensee, has violated any provision of Laws 1989, chapter 247,
• or any rule or order of the commissioner under this chapter or
chapter 45;
(3) the licensee, or any officer or director of a corporate
licensee, has violated any other law which would indicate that
3 of 7 4/5/00 8:22 PM
http:// www .revisor.leg.state.mn.us /cgi- bin /getstatchap.pl
the person is untrustworthy or not qualified to operate a
currency exchange; or
(4) any fact or condition exists which, if it had existed
at the time of the original or renewal application for the
license, would have warranted the commissioner refusing the
issuance of the license.
(b) A license may not be revoked until the licensee has had
notice of a hearing pursuant to the provisions of chapter 14.
(c) A licensee may surrender any license by delivery to the
commissioner. The surrender does not affect the licensee's
civil or criminal liability for acts committed before the
surrender, or affect the liability on the bond required by
sections 53A.01 to 53A.13, or entitle the licensee to a return
of any part of any license fee.
(d) Before suspension or revocation of the license, the
commissioner may fine a licensee for violations of Laws 1989,
chapter 247, as authorized under chapter 45.
HIST: 1989 c 247 s 6
== 53A.07
53A.07 Filing of fees; unreasonable fees.
Subdivision 1. Approval of fees. Fees charged at
each location for check cashing services must be filed with and
approved by the commissioner.
• Subd. 2. Amendment of fees. A licensee may amend its
fees at any time by filing the proposed amendments with the
commissioner. The application for amendment shall be in
writing, under oath, and in the form prescribed by the
commissioner. A fee of $50 shall accompany the application.
The commissioner shall approve or deny the application 60 days
after the filing of a complete application to amend its fees.
Subd. 3. Standards; unreasonable fees prohibited.
The commissioner may disapprove the fees filed by a currency
exchange if they are not fair and reasonable. In determining
whether a fee is fair and reasonable, the commissioner shall
take into consideration:
(1) rates charged in the past for cashing of checks by
those persons and organizations providing check cashing services
in the state of Minnesota;
(2) the income, cost, and experience of the operations of
currency exchanges existing prior to this enactment or in other
states under similar conditions or regulations;
(3) the amount of risk involved in the type of check to be
cashed and the location where the currency exchange operates;
(4) the general cost of doing business, insurance costs,
- security costs, banking fees, and other costs associated with
the operations of the particular currency exchange;
• (5) a reasonable profit for a currency exchange operation;
and
(6) any other matter the commissioner deems appropriate.
4 of 7 4/5/00 8:22 PM
http: / /www. revisor. leg. state .mn.us /cgi- bin/getstatchap.pl
The commissioner shall set a separate rate, consistent with the
above standards, for checks issued by a government entity in an
amount up to $500 to be cashed by a currency exchange.
HIST: 1989 c 247 s 7
== 53A.08
53A.08 Bond.
Before a license may be issued to a currency exchange, the
applicant shall file annually with and have approved by the
commissioner a surety bond, issued by a bonding company
authorized to do business in this state in the principal amount
of $10,000. The bond must run to the commissioner and is for
the benefit of creditors of the currency exchange for liability
incurred by the currency exchange on money orders issued or sold
by the currency exchange, for liability incurred by the currency
exchange for sums due to a payee or endorsee of a check, draft,
or money order left with the currency exchange for collection,
and for liability incurred by the currency exchange in
connection with providing currency exchange services. The
commissioner may require a licensee to file a bond in an
additional amount if the commissioner considers it necessary to
meet the requirements of this section. In determining the
additional amount of the bond which may be required, the
commissioner may require the licensee to file its financial
records, including all bank statements, pertaining to the sale
of money orders for the preceding 12 -month period. In no case
may the bond be less than the initial $10,000 or more than the
outstanding liabilities.
HIST: 1989 c 247 s 8; 1992 c 504 s 6
== 53A.081
53A.081 Annual report and investigations.
Subdivision 1. Annual report. On or before April 30,
a licensee shall file an annual report with the commissioner for
the previous calendar year. The report must contain information
that the commissioner may reasonably require concerning, and for
the purpose of examining, the business and operations of each
licensed currency exchange.
Subd. 2. Investigation. The commissioner may at any
time and shall at least once in each year investigate the
currency exchange business of any licensee and of every person,
partnership, association, and corporation engaged in the
business of operating a currency exchange in the manner provided
under section 45.027.
Subd. 3. Fees and expenses. The licensee shall pay
the costs of an examination or investigation in the manner
provided under section 60A.03, subdivision 5.
Subd. 4. Classification of data. Financial
information on individuals and businesses that is submitted to
the commissioner in the annual report under subdivision 1 are
private data on individuals or nonpublic data.
HIST: 1992 c 504 s 7; 1996 c 439 art 1 s 6; 1Spl997 c 3 s 19
• == 53A.09
53A.09 Powers; limitations; prohibitions.
Subdivision 1. Deposits; escrow accounts. A currency
5 of 7 4/5/00 8:22 PM
http://www.revisor.leg.state.mn.us/cgi-bin/getstatchap.pl
exchange may not accept money or currency for deposit, or act as
bailee or agent for persons, firms, partnerships, associations,
. or corporations to hold money or currency in escrow for others
for any purpose. However, a currency exchange may act as agent
for the issuer of money orders or travelers' checks.
Subd. 2. Gambling establishments. A currency
exchange located on the premises of a gambling establishment as
defined in section 256.9831, subdivision 1, may not cash a
warrant that bears a restrictive endorsement under section
256.9831, subdivision 3.
HIST: 1989 c 247 s 9; 1996 c 465 art 3 s 1
== 53A.10
53A.10 Violations.
Any person, firm, association, partnership, or corporation
that violates Laws 1989, chapter 247, shall be guilty of a
misdemeanor.
HIST: 1989 c 247 s 10
== 53A.11
53A.11 Books of account; annual report.
The licensee shall keep and use in the licensee's business
the books, accounts, and records that will enable the
commissioner to determine whether the licensee is complying with
the provisions of Laws 1989, chapter 247, and with the rules
adopted by the commissioner. A licensee shall preserve the
books, accounts, and records for at least two years after making
the final entry.
HIST: 1989 c 247 s 11
== 53A.12
53A.12 Rules.
The commissioner may adopt rules under chapter 14 as may be
necessary to administer and enforce this chapter.
HIST: 1989 c 247 s 12
== 53A.13
53A.13 Fee notice; false advertising; penalty.
Subdivision 1. Fee notice. The fees charged by
currency exchanges for rendering any service authorized by
sections 53A.01 to 53A.13 must be prominently displayed on the
premises of the currency exchange in the fashion required by the
commissioner.
Subd. 2. False advertising. A licensee may not
advertise, print, display, publish, distribute, or broadcast any
statement or representation that is false, misleading, or
deceptive, or that omits material information.
Subd. 3. Civil liability; penalty. A person who
violates any subdivision of this chapter is liable to the person
damaged by the violation for actual damages. The court may
award reasonable attorney fees and costs.
HIST: 1989 c 247 s 13
6 of 7 4/5/00 8:22 PM
http: / /www.revisor.leg. state .mn.us /cgi- bin/getstatchap.pl
== 53A.14
53A.14 Repealed, 1992 c 504 s 8
== 53A.miscl999 Minn. Stats. repealed, etc. secs in chap 53A
53A.14 Repealed, 1992 c 504 s 8
•
•
7 of 7 4/5/00 8:22 PM
City Council Agenda Item No. 8a
Member introduced the following resolution and moved its
is adoption:
RESOLUTION NO.
RESOLUTION EXPRESSING RECOGNITION AND APPRECIATION FOR THE
27 YEARS OF DEDICATED PUBLIC SERVICE OF SERGEANT JOHN PTAK
WITH THE CITY OF BROOKLYN CENTER
WHEREAS, Sergeant Ptak was hired as a police officer by the City of Brooklyn
Center on January 17, 1973; and
WHEREAS, Sergeant Ptak served as an investigator for two years and was promoted
to the position of sergeant April 15, 1979; and
WHEREAS, Sergeant Ptak has been a member of the emergency operations unit,
supervised the bicycle patrol, served on the department's safety committee, and coordinated the
police cadet program; and
WHEREAS, Sergeant Ptak has received numerous commendations for outstanding
police work; and
WHEREAS, Sergeant Ptak has received letters of thanks from numerous citizens for
assistance that he has rendered.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center that the mayor and council express their deep appreciation to Sergeant John Ptak
for his 27 years of dedicated public service.
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
•
City Council Agenda Item No. 8b
Member introduced the following resolution and moved its
• adoption:
RESOLUTION NO.
RESOLUTION EXPRESSING RECOGNITION AND APPRECIATION FOR THE
13 YEARS OF DEDICATED PUBLIC SERVICE OF OFFICER JOHN RAYL
WITH THE CITY OF BROOKLYN CENTER
WHEREAS, Officer Rayl was hired as a police officer by the City of Brooklyn Center
on March 23, 1987; and
WHEREAS, Officer Rayl served as a canine officer from 1987 to 1992; and
WHEREAS, in 1991, Officer Rayl and his canine partner, Gator, were the United
States Canine Association National Champions; and
WHEREAS, Officer Rayl is a recognized police canine expert who shared his
knowledge with other agencies; and
i
WHEREAS, Officer Rayl has received numerous commendations for his actions in
the line of duty; and
• WHEREAS, Officer Rayl has received numerous letters of thanks from citizens
commending him for his actions.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center that the mayor and council express their sincere gratitude to Officer John Rayl for
his 13 years of dedicated public service.
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon the following voted in favor thereof:
p g � g
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
•
City Council Agenda Item No. 8c
City of Brooklyn Center
A great place to start. A great place to stay.
• MEMORANDUM
TO: Mayor Kragness, Councilmembers Hilstrom, Lasman, Nelson, and Peppe
FROM: Michael J. McCauley, City Manager
DATE: April 14, 2000
SUBJECT: Fitness Equipment
As we have worked on the larger picture of addressing the building code deficiencies and needs in
the Civic Center complex, we have deferred addressing the issue of equipment. A recent
conversation with a resident brought the deferred replacement issue to the forefront. In discussing
with the resident the challenges facing community activities and recreation services personnel in
trying to keep very old, worn out equipment functional, I advised the resident that the replacement
of the equipment was the only functional way to provide an appropriate level of function and service
for patrons wanting to use our facility for exercise. Mr. Glasoe and I went down and looked at the
equipment, which I have always thought from a distance was very tired. In looking at the equipment
more closely and discussing with Mr. Glasoe the repeated calls for service to rebuild and keep
equipment running, some of which are no longer manufactured, we felt that we should move forward
in improving our level of service and offerings sooner rather than later. With the building process,
we would not be making significant improvements until 2001,
I would propose that the Council authorize expending up to $25,000 to replace equipment in the
exercise area. Mr. Glasoe is also exploring moving that equipment to the upper level of the
Community Center to provide a more inviting environment. Accelerating this process would have
two benefits. The first would be that we could provide much better equipment that we would be
planning on replacing in any event. The second benefit would be to reduce the amount of time
currently being spent trying to repair very old equipment. Some of the equipment may date as far
back as the 1970's. For $25,000, we would be able to purchase two new treadmills, a recumbent
stationary bike, and four exercise machines that would replace the current universal gym. The
current universal gym, which is no longer manufactured, has the foam coming out of the covers.
I would request that the Council authorize the expenditure of up to $25,000 from the central supplies
and support division of the budget, specifically from the contingency account. The contingency
account is designed to allow for some flexibility to either address unanticipated expenses or take
advantage of unanticipated opportunities that are advantageous in accomplishing City goals. The
conversation with the resident regarding the equipment and my discussions with Mr. Glasoe lead me
to believe that it would be advantageous for us to provide a much better level of equipment now,
rather than to continue deferring this issue. I would anticipate that in a final plan implemented in
2001 we would have some additional equipment included in that process or in the 2001 budget
process.
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
City Council Agenda Item No. 8d
City of Brooklyn Center
A great place to start. A great place to stay.
0 3[
MEMORANDUM
DATE: April 18, 2000
TO: Michael J. McCauley, City Manager r
FROM: Jim Glasoe Director of Community ctivities Recreation and Services Z
ty �1
SUBJECT: Resolution Expressing Appreciation f r the Gift of the Brooklyn Center
p g o y
Women's Club in Support of Scholarship Opportunities for Summer Youth
Sports and Swimming Classes
The Brooklyn Center Women's Club has presented to the City a donation of three hundred
dollars. ($300) It has been designated to be used to provide partial scholarships for low
income children wishing to participate in Summer swimming classes and youth sports
activities.
Staff recommends acceptance of this donation and asks that it be coded to the corresponding
activity budgets.
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 - City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 - FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
• its adoption: Member introduced the following resolution and moved
RESOLUTION NO.
RESOLUTION EXPRESSING APPRECIATION FOR THE GIFT OF THE BROOKLYN
CENTER WOMEN'S CLUB IN SUPPORT OF SCHOLARSHIP OPPORTUNITIES FOR
SUMMER YOUTH SPORTS AND SWIMMING CLASSES
WHEREAS, the Brooklyn Center Women's Club has presented to the City a
donation of three hundred dollars.($300) It has been designated to be used to provide partial
scholarships for low income children wishing to participate in Summer swimming classes and
sports activities; and
WHEREAS, the City Council is appreciative of the donation and commends the
Brooklyn Center Women's Club for its civic efforts.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn rookl n Center Minnesota:
1. Acknowledges the donation with gratitude.
2. Appropriates the donation to the corresponding activity budgets.
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor
thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
City Council Agenda Item No. 8e
April 19, 2000
MEMO
TO: Michael J. McCauley, City Manager
FROM: Chambers, Assistant City Manager
SUBJECT: Letter in support of Tobacco Prevention Project
North West Hennepin Human Services Council has requested a letter in support of a grant
application for a Tobacco Prevention Project in partnership with Hennepin County Health
Department, Minneapolis Department of Health and Family Support and Bloomington Health
Division.
All Cities represented on the Executive Board were requested to submit the support letter.
Letters such as this are a common part of the grant application process. It is my understanding
the funding for the project is part of the Tobacco Endowment funds received by the State of
Minnesota. Hennepin County will take the lead in the grant project, with North West Hennepin
Human Services being a "core" partner, representing the Northwest region.
•
•
03[ City o f Brooklyn Center
A great place to start. A great place to stay.
April 24, 2000
Suzanne Zuidema, Director
Hennepin County Community Health Department
525 Portland Ave. S
Minneapolis, MN 53415
Dear Ms. Zuidema:
This letter is in support of the efforts of Northwest Hennepin Human Services Council in the
tobacco prevention project in partnership with Hennepin County Health Department,
Minneapolis Department of Health and Family Support and Bloomington Health Division.
The City of Brooklyn Center understands the goal of this partnership is to reduce tobacco
smoking in Hennepin County by 30% by the year 2005 for youth aged 12 -17. The strategies that
will be used include reducing exposure to environmental tobacco smoke, reducing youth access
to tobacco products, promotion of comprehensive school -based prevention activities, and
providing linkages to cessation resources focusing on youth.
• The City of Brooklyn Center has actively supported North West Hennepin Human Services
Council activities through annual financial support, representation on the Board of Directors, the
Citizens Advisory Board, and through such programs as CO -OP Northwest. CO -OP Northwest
has a Police Cadet program which has recruited and prepared minority candidates to compete for
patrol positions. The City will shortly be hiring two cadet graduates of this program.
Smoking in city facilities is not allowed. The City operates a municipal golf course and
municipal liquor stores. Tobacco sales were eliminated at the municipal golf course in 1999.
Sales of tobacco at the municipal liquor stores is closely monitored by staff and every effort is
made to prohibit sales to minors. The City would welcome assistance in reducing youth demand
for tobacco, as that would assist City staff in enforcing no smoking regulations throughout city
facilities.
It is the City's understanding that the grant proposal will be a region wide initiative that will
include the voices of youth in an effort to reduce tobacco use.
Sincerely,
Michael J. McCauley
City Manager
•
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action/ Equal Opportunities Employer
i
City Council Agenda Item No. 8f
City of Brooklyn Center
A great place to start. A great place to stay.
•
To: Mayor Kragness and C '1 Members Hilstrom, Lasman, Nelson and Peppe
From: Michael J. McCauley
City Manager
Date: April 20, 2000
Re: Code Enforcement Sweep
A cross departmental team has been formalized for this year's code enforcement sweep. While
community development and the police department have always worked together on this effort, we
are making it a more structured and scheduled arrangement, with a better delineation of
responsibilities. The sweep will begin in May and be completed by the beginning of July using a
number of personnel from both departments. The recent resignation of the Neighborhood Liaison
has impacted this process. We are adding a community development intern and scheduling cadet and
community service officer time to inspect and re- inspect in a shorter period. The increased volume
and time associated with building repair issues will be better met with this allocation of people.
The 2000 budget identified $10,000 for additional sweep efforts. That money will partially cover the
increased clerical support and community development intern. These positions are being used to
overcome the backlog that we have previously experienced with data entry and re- inspections. The
clerical support will free the neighborhood liaison during the sweep to spend more time in the field
and less time handling voice mail and data entry. The total additional cost of personnel is around
$20,000. $10,000 is budgeted in Central Supplies & Support. The remainder will be covered by the
gap in coverage of the neighborhood liaison position, increased building inspection fees above
budgeted revenue, and other personnel costs that will be saved due to retirements in the police
department.
We hope to have a new neighborhood liaison start in the beginning of May.
The sweep will start in the southeast and move counterclockwise through the City. Complaints will
be responded to within 5 days of the complaint. Inspections will be made from the public right of
way, unless in response to a specific complaint or further inspection is warranted based on what is
observed from the right of way.
i
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action 1 Equal Opportunities Employer
MEMORANDUM
April 19, 2000
TO: Michael McCauley, City Manager
FROM: Anne Finn, Administrative Specialist
SUBJECT: Code Enforcement Plan
Since January of this year, an interdepartmental team has been meeting to conduct code
enforcement planning. The team members are Building Official Dave Fisher, Housing Inspector
Ed Lovelace, Sergeant Frank Roth and me. When a neighborhood liaison/community services
officer has been hired, s/he will also join the team. The team will implement the approved code
enforcement plan. We will meet weekly or biweekly during the seasonal code enforcement sweep
and will continue to meet as necessary after the sweep.
Following is an outline of the recommendations of the code enforcement team to date:
• I. Goals
A. The entire City should be inspected and reinspected on a regular basis.
B. The City should follow up to be certain that cited properties are brought into
compliance by the deadline issued.
C. The City should identify and maintain a list of properties that are cited more than one
time in a year. These properties should be inspected two to three times per year.
D. The City should respond to complaints of code violations within five business days.
E. The City should systematically track cases so that no question exists about the staff or
department responsible for follow -up on any given case.
H. Staffing Needs and Responsibilities
A. Mr. Lovelace will coordinate the code enforcement team. Further, he will be
responsible for working with property owners, the City prosecutor and clean -up
services in cases of hazardous property conditions. He will also be responsible for
maintaining a list of frequently cited properties and ensuring that the properties on the
• list are inspected three times annually.
AFi,aup1a.v 1
• B. Sgt. Roth will oversee code enforcement activities.
C. The neighborhood liaison/CSO, under Sgt. Roth's supervision, will be responsible for
the majority of code enforcement activities. S/he will conduct routine inspections and
complaint - related inspections as well as reinspections during the seasonal sweep and
throughout the year. During non -sweep months, the neighborhood haison/CSO will
be responsible for all code enforcement activities to include taking complaints,
conducting complaint- related inspections and reinspections, responding to resident
concerns about code enforcement issues, entering data, tracking pending compliance
orders and appearing in court as necessary.
D. The following table summarizes the staffing plan for the seasonal sweep (all will report
to Sgt. Roth and will work out of the Police Department):
Position Duties Hours/wee
k
Neighborhood will serve as the public's first point of contact 40
Liaison /CSO regarding code enforcement issues; will oversee and
participate in inspections, reinspections and complaint
responses; will assist data entry clerk as necessary;
will appear in court as necessary
Police Cadet I will inspect and reinspect properties as part of sweep 10 (seasonally,
and in response to complaints; will appear in court as for 16 weeks)
necessary
Police Cadet H will inspect and reinspect properties as part of sweep 10 (seasonally,
and in response to complaints; will appear in court as for 16 weeks)
necessary
Part-Time Community will inspect and reinspect,properties as part of sweep 10 -15
Service Officer I and in response to complaints; will appear in court as (seasonally, for
necessary 16 weeks)
Part -Time Community will inspect and reinspect properties as part of sweep 10 -28
Service Officer II and in response to complaints; will appear in court as (seasonally, for
necessary 16 weeks)
Community Development will inspect and reinspect properties as part of sweep 40 (seasonally,
Intern and in response to complaints; will appear in court as for 16 weeks)
necessary
Data Entry Clerk during seasonal sweep, will handle enforcement- 40 (seasonally,
related phone calls including complaints, will enter for 16 weeks)
complaints and orders into tracking system; will
provide the neighborhood liaison/CSO with timely
information regarding complaints; will produce
compliance order and follow -up letters to owners of
cited properties
Total Hours/Week 160 -183
AF /cod— fo-- t/pI —wpd 2
. E. City Prosecutor William Clelland will coordinate prosecution of property owners who
fail to comply or who repeatedly violate property codes. The neighborhood
liaison/CSO, other code enforcement staff, and members of the code enforcement
team will become involved prosecution procedures as necessary.
F. Sgt. Roth will assign police officers to code enforcement cases involving hostile
property owners.
G. Other staff may be assigned to code enforcement activities during or after the sweep as
determined by Sgt. Roth.
III. Training
A. Mr. Fisher and Sgt. Roth will coordinate code enforcement training for the
neighborhood liaison, Community Development intern, part-time CSOs, and cadets.
B. Mr. Fisher will gather illustrations of code violations for training purposes.
Inspections training will consist of slides, still pictures and on -site inspections.
Training will serve a dual purpose in that the on -site inspections will be reinspections
of properties that are under orders to be in compliance by this spring of 2000.
C. Community Development Secretary Rebecca Crass will provide software training to
everyone who will have access to the code enforcement system (see attached
• memorandum outlining eatures of stem
g system).
)
D. City Prosecutor Bill Clelland will provide code enforcement- related court system
training to the neighborhood liaison, Community Development intern, part-time CSOs
and cadets.
IV. Seasonal Sweep Implementation
A. Equipment and space needs.
L Two office spaces, each equipped with a desk, chair' and computer, will be
located at the Police Department to house the neighborhood liaison/CSO and the
data entry clerk. The Police Department will also provide appropriate space for
the Community Development intern, cadets, and part-time CSOs.
2. Sgt. Roth will obtain a large pin map for purposes of scheduling and tracking the
seasonal sweep.
3. Ms. Crass is in the final stage of testing a software system that will provide us
with an improved ability to track and run reports on code violations. It will also
• produce order and compliance letters to property owners. LOGIS will
implements the system prior to the start of the seasonal sweep. At that time it
AF /-&wfo m=t/p1wLv4 d 3
• will be available to the neighborhood liaison/CSO, other code enforcement staff,
and members of the code enforcement team. For consistency purposes, data will
be entered only by the neighborhood liaison/CSO and the data entry clerk.
4. The Community Development Department will provide one vehicle for use by
the Community Development intern. The Police Department will provide one
vehicle for use by the neighborhood liaison/CSO, and one vehicle to be shared by
the cadets and part-time CSOs. The DARE vehicle, when available, may also be
used by cadets or CSOs as necessary.
B. Seasonal sweep activities will begin April 26, 2000, and will end on or before August
31, 2000. A time line with planned dates for training, inspections, and reinspections is
attached.
C. The City will be inspected systematically by quadrant. When one quadrant has been
completed, the inspectors will move to the next quadrant.
D. Inspections will consist of a combination of walking and driving through
neighborhoods and inspecting what can be viewed from the street. The rear of
properties will be inspected if a violation is seen from the street or if a complaint about
the rear of the property is received.
• E. Reinspection dates will be tracked by the data entry clerk and the neighborhood
liaison/CSO. Reinspections will take place as stated in orders. The neighborhood
liaison/CSO will ensure that all cited properties are reinspected.
F. Complaints will be investigated within five business days. During the seasonal sweep,
the data entry clerk will check the complaint line messages and will maintain a list of
complaints for the neighborhood liaison/CSO. The neighborhood liaison/CSO will be
responsible for investigating or delegating investigations of complaints in a timely
manner. The neighborhood liaison/CSO will also be responsible for contacting
complainants who request responses. During non -sweep months, the neighborhood
liaison will handle all complaint- related code enforcement activities.
G. Frequently cited properties will be inspected at least three times annually. Mr.
Lovelace will be responsible for maintaining a list of frequently cited properties and
ensuring that the properties on the list are inspected as required.
H. Hazardous properties will be inspected by Mr. Lovelace. Mr. Lovelace will work with
property owners and, if necessary, with Mr. Clelland and/or clean -up services to
ensure the property is abated as quickly as possible.
I. The code enforcement team will meet throughout the seasonal sweep to monitor
progress and resolve issues. By the second Monday of every month during the sweep,
• the team will provide a written report on code enforcement activities to the City
aF /co&=forc=ent/plam%pd 4
• manager. The report will include a map illustrating the progress made by seasonal
sweep staff% the number of orders pending citywide, the number of properties brought
into compliance citywide, and a breakdown of the subjects of orders and complaints.
Please let me know if you have questions or need further information.
Attachments: seasonal sweep time line
Rebecca Crass memorandum regarding tracking system
City map with labeled quadrants
cc: Joel Downer
Dave Fisher
Brad Hoffman
Ed Lovelace
Frank Roth
•
AF /codewf"cemeWpIv -wpd 5
1 • Cownforcement Sweep Timeline 0 •
.. .......
.......... ..... .... . .. ...... . . .
. ..................... ....... .. ................... .. .... .........
....................... . . ....... .. .. ............... ... ...................
. ..... . . .
........................
........... ........
.. ....... I ..
. .....................
...... .... . . .. ......
Respond to complaints from residents within five (5) days of complaint
Code enforcement team meets weekly to monitor progress and resolve issues
Training of CD intern, cadets, NIJCSO
and part-time CSOs begins job
Full-time temporary
data entry clerk hired
Reinspect properties given
until Spring 2000 to
comply; begin prosecution
FWAXfingS for those not in
compliance
Inspect Quadrant I
Monthly Reinspect cited properties on ordered compliance dates; begin prosecution procedings for those not in
report due compliance
Inspect Quadrant 2 monthly
report due
Inspect Quadrant
Inspect Quadrant 4 I Monthly Monthly
report due report due
Memorandum
TO: Anne Finn
FROM: Rebecca Crass
SUBJECT: Code Enforcement
DATE: April 19, 2000
I have been working with LOGIS on the design and implementation of a new code enforcement
data base. We are currently testing the latest version of the program and it will be available for
use and in "production" within the next few weeks.
This program allows us to enter data related to complaints and violations found as a result of the
city wide sweep done each year. We will be able to enter and store data for future reference,
track the status of a specific address or violation, create various letters to property owners
• requesting compliance and, when appropriate, thanking property owners for compliance. We
have also created various reports that will allow us to calculate information such as the number
of properties cited, number of properties complied and what types of violations we see the most.
All city staff involved with code enforcement will have access to this program through PIMS
(Permit Information Management System) including the neighborhood liaison, code enforcement
team members, data entry clerks, community development staff and police department personnel.
•
City of Brooklyn Center
• Seasonal Sweep 2000
11 felt OFF
A
B C D E �F'
G ......
LU WALUMUL .4. riAH
J [f:
,
�U
_kio
MUER RE PARK
v
L i
➢ . tf,?N
t " tE A M BRUT
Irk
b 3 Quadrant 2 7
June 1-15* Ri q�
J_ Wy 16-3 1 4� 1 7y
. y� -�� {_ ' -� � r y � _S
:j
N
A
I ITHET
RAU
T
E . .. . . . .. . .
tiltst.�3�FY �:_� _ I 1 _— =� .
1 $ 10
':Zzt
u
AT m4p, � ��
RRUIR111111F] -z
'Ell WIN,
Oul Mi rl]": Afflig ';vzz?z
h ,
J 11� M�
r
�ri I:7 1-v
Ll M
3 r
%
: 1 , M I.
1z
;'
t
LH J_
-41
LOCAL STREET 4
INDEX 3UR J
ant 4 Quadrant I
June 16-30*
-15*
May I
I la L
Im
E PU U
5
M IN MM
i 1=4
HIM
U. MM
4 U=PPER
LA
H
Fmt)DL
.z
E
TWN
LAKE
7
N
*Dates are approximate. Inspecto w ill p rocee d f rom one qua to the next as inspections in each quad are
completed. W+ E
S
4/19/2000
City Council Agenda Item No. 89
MEMORANDUM
DATE: April 19, 2000
TO: Michael McCauley, City Manager
FROM: Todd Howard, City Engineer
SUBJECT: Resolution Accepting Bid and Awarding a Contract, Improvement Project Nos.
2000 -01, 02, and 03, Contract 2000 -B, Garden City Central Street, Storm Drainage,
and Utility Improvements
Summary Explanation
Bids for Contract 2000 -B were received and opened on April 19, 2000. The bidding results are
tabulated as follows:
Bid Amount
Bidder With Alternate A
Arcon Construction, Inc. $3,778,048.55
S.R. Weidema, Inc. $3,818,276.45
Thomas and Sons, Inc. $3,988,050.83
Northdale Construction $4,129,900.25
Barbarossa & Sons, Inc $4,359,461.62
Of the five (5) bids received, the lowest bid of $3,778,048.55 was submitted by Arcon Construction,
Inc. The Engineer's Estimate for the project was $3,673,000.00, which is within 3 % of the low bid.
Staff believes the slightly higher than anticipated costs are due primarily to escalating fuel prices.
The Engineer's estimate and the two low bidders are within 4% which is indicative of a competitive
bidding environment.
The contract documents allow for the City to select Alternate A (constructing an underground concrete
storm water treatment facility) or Alternate B (constructing a storm water treatment pond in Garden
City Park). Alternate A bid amount is $155,327.80 and Alternate B was bid at $212,535.38. Based on
price, staff is recommending the selection of bid alternate A.
Arcon Construction, Inc. has proven experience in performing all of the requirements included in this
contract and has the resources necessary to complete the project. Accordingly, staff recommends
acceptance of the low bid with Alternate A and award of the contract to Arcon Construction, Inc.
Recommended City Council Action
Approve the attached resolution accepting the low bid with Alternate A and awarding the Garden City
Central contract to Arcon Construction in the amount of $3,778,048.55.
•
Member introduced the following resolution and moved its
. adoption:
RESOLUTION NO.
RESOLUTION ACCEPTING BID AND AWARDING A CONTRACT, IMPROVEMENT
PROJECT NOS. 2000 -01, 02, AND 03, CONTRACT 2000 -B, GARDEN CITY CENTRAL
STREET, STORM DRAINAGE AND UTILITY IMPROVEMENTS
WHEREAS, pursuant to an advertisement for bids for Improvement Project Nos. 2000 -01,
02, and 03, bids were received, opened, and tabulated by the City Clerk and Engineer on the 19th day of
April, 2000..Said bids were as follows:
Bid Amount
Bidder With Alternate A
Arcon Construction, Inc. $3,778,048.55
S.R. Weidema, Inc. $3,818,276.45
Thomas and Sons, Inc. $3,988,050.83
Northdale Construction $4,129,900.25
Barbarossa & Sons, Inc $4,359,461.62
WHEREAS, it appears that Arcon Construction is the lowest responsible bidder.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn
Center, Minnesota that:
1. The Mayor and City Manager are hereby authorized and directed to enter into
a contract with Arcon Constructiog Harris, Minnesota in the name of the City
of Brooklyn Center, for Improvement Project Nos. 2000 -01, 02, and 03,
according to the plans and specifications therefor approved by the City Council
and on file in the office of the City Engineer.
2. The City Clerk is hereby authorized and directed to return forthwith to all
bidders the deposits made with their bids, except that the deposit of the
successful bidder and the next lowest bidder shall be retained until a contract is
signed.
3. The estimated project costs and revenues are as follows:
•
RESOLUTION NO.
COSTS Engineer's Estimate As Amended Per Low Bid
Contract $3,672,592.00 $3,778,048.55
Contingency (6 %) 220,356.00 $226,682.91
Subtotal Construction Cost
$3,892,948.00 $4,004,731.46
Admin/Legal /Engr. $239,000.00 $239,000.00
Reforestation $38,000.00 $38,000.00
Streetlights $75,000.00 $75,000.00
Total Estimated Project Cost $4,244,948.00 $4,356,731.46
REVENUES
Street Assessment $866,450.00 $866,450.00
MSA $304,050.00 $300,800.00
Water Fund $783,720.00 $724,040.00
Storm Drainage Assessment $288,288.00 $288,288.00
Storm Drainage Utility Fund $606,320.00 $621,856.00
Sanitary Sewer Utility $593,630.00 $688,873.00
General Fund (Schedule C) $ 61,730.00 $ 54,790.00
Special Assmnt. Const. Fund $740,760.00 $811,634.46
Total Estimated Revenue $4,244,948.00 $4,356,731.46
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
. whereupon said resolution was declared duly passed and adopted.
City Council Agenda Item No. 8h
CITY OF BROOKLYN CENTER
Notice is hereby given that a public hearing will be held on the 22nd day of May, 2000, at 7:00
p.m. or as soon thereafter as the matter may be heard at the City Hall, 6301 Shingle Creek
Parkway, to consider an Ordinance Amending Chapter 35 of the City Ordinances Regarding
Church and Educational Uses.
Auxiliary aids for persons with disabilities are available upon request at least 96 hours in
advance. Please contact the City Clerk at 569 -3300 to make arrangements.
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 35 OF THE CITY ORDINANCES
REGARDING CHURCH AND EDUCATIONAL USES
THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS
FOLLOWS:
Section 1. Chapter 35 of the City Ordinances of the City of Brooklyn Center is
Amended in the Following Manner:
Section 35 -314. R5 Multiple Family Residence District.
3. Special Uses
d. Public and private elementary and secondary schools offering a regular
course of study accredited by the Minnesota Department of Education
provided nrimary vehicular access is g ained to the use by a collector or
arterial street.
Section 35 -320. CI Service /Office District.
1. Permitted Uses
e. Places for religious uses assemblies such as chapels, churches, temples.
mosaues and svnagogues. we! c and e: �-=`�'-'� �'ibraries "
g
x. Libraries and art galleries.
•
. Ordinance No.
3. Special Uses
d. Educational uses including post secondary schools. business schools.
trade schools and the like. but excluding public and private elementary
and secondary schools (K -12).
Section 35 -322. C2 Commerce District
1. Permitted Uses
d. Service /office uses described in Subsection 1 (b) through 1 (u), atd
Subsection 1 (w). and Subsection 3 (c) of Section 35 -320.
h. Educational uses including post secondary schools. business schools.
trade schools and the like. but excluding public and private elementary
and secondary schools (K -12).
Section 2. This ordinance shall become effective after adoption and upon thirty
days following its legal publication.
•
Adopted this day of .2000.
Mayor
ATTEST:
Clerk
Date of Publication
Effective Date
(Strikeouts indicate matter to be deleted, underline indicates new matter.)