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HomeMy WebLinkAbout1998 11-09 CCP Regular Session CITY COUNCIL MEETING Public Copy • City of Brooklyn Center November 9, 1998 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 er sonal attacks to air personality grievances, to make political endorse p p ty p menu, 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. -Rev. Tim Johnson, Brookdale Covenant Church 3. Call to Order Regular Business Meeting Flag Ceremony -Cub Scout Pack 401 . 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. Special Work Session - August 31, 1998 2. Special Work Session - October 19, 1998 3. Regular Session - October 26, 1998 4. Special Session - November 4, 1998 b. Licenses C. Resolution Accepting Work and Authorizing Final Payment, Improvement Project No. 1998 -08, Contract 1998 -C, Reforestation of 1997 Street Improvement Areas CITY COUNCIL AGENDA -2- November 9, 1998 d. Resolution Accepting Work and Authorizing Final Payment, Improvement Project No. 1998 -26 Contract 1998-G, " 998 G, Relocation of 16 Water Main at West Fire Station e. Resolution Accepting Work and Authorizing Final Payment, Improvement Project No. 1998 -30, Contract 1998 -P, Miscellaneous Sidewalk and Retaining Wall Replacements 7. Planning Commission Items a. Planning Commission Application No. 98020 Submitted by John Craig. Request for Special Use Permit approval for a vending machine supply home occupation involving the use of an accessory building at 6921 Logan Avenue North. The Planning Commission recommended approval of this application at its October 29, 1998, meeting. - Requested Council Action: - Motion to approve Planning Commission Application No. 98020 subject to the conditions recommended by the Planning Commission. b P1 ® annmg b Commission Application No. 98022 Submitted by Kathleen Godar. Request for Special use Permit approval to conduct a home occupation that will involve customer traffic at 7004 Oliver Avenue North. The Planning Commission recommended approval of this application at its October 29, 1998, meeting. - Requested Council Action: - Motion to approve Planning Commission Application No. 98022 subject to the Pp 5 pp J conditions recommended by the Planning Commission. 8. Council Consideration Items a. Report on 69th and Brooklyn Boulevard Project - Requested Council Action: -City Manager will provide verbal update. b. Report on Brookdale - Tax Rebate - - Requested Council Action: -City anager will provide verbal update. tY 1. p P C. Resolution Authorizing Execution of Grant Agreement End Grant for the Brooklyn Center Earle Brown Heritage Center Restoration Project - Requested Council Action: - Motion to adopt resolution. CITY COUNCIL AGENDA -3- November 9, 1998 • d. Resolution Approving the Contract for Minnesota Teamsters Public and Law Enforcement Employees' Union, Local #320 and the City of Brooklyn Center for the Calendar Years of 1998 and 1999 - Requested Council Action: - Motion to adopt resolution. e. Preliminary Design Parameters, Improvement Project No. 1999 -05, 53rd Avenue Trail - Requested Council Action: - Council Discuss. f. Set Date of Presentation by Ernee McArthur - Requested Council Action: - Motion to set November 23, 1998, 6:30 p.m. for presentation regarding Historical Society Project. 9. Adjournment e City Council Agenda Item No. 6a • • MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL • OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL WORK SESSION AUGUST 31, 1998 CITY HALL CONFERENCE ROOM B CALL TO ORDER The Brooklyn Center City Council met for a Work Session at Brooklyn Center City Hall and was called to order by Mayor Myrna Kragness at 7:04 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Debra Hilstrom, and Kay Lasman. Councilmember Peppe was absent and excused. Also present: City Manager Michael J. McCauley, Assistant City Manager/HR Director Jane Chambers, Public Works Director Diane Spector, Community Development Director Brad Hoffinan, Financial Consultant Michael Mulrooney, Bob Thistle, Chuck Lenthe, and Recording Secretary Maria Carlson. DISCUSSION OF DEVELOPMENT ISSUES • City Manager Mike McCauley explained the Brookdale Center proposal was still underway and Mr. Schlesinger is targeting the same as outlined previously, however, without a new Dayton's store. Mr. McCauley informed the Council he had met with Mr. Schlesinger to discuss financing, and then shared some breakdowns regarding the redevelopment budget. He said Mr. Schlesinger initially proposed a project costing approximately $122.6 million and is now indicating a total redevelopment budget of $92,469,528. In Mr. Schlesinger's initial request, he was requesting $15 million in TIF, and is now requesting $7 million which would bring the net redevelopment costs to $85,469,528. Mr. McCauley suggested a range for negotiating with a pay -as- you -go plan. Mayor Kragness asked for more details with pay -as- you -go financing. Mr. McCauley explained if the City were to enter into an agreement to pay Mr. Schlesinger, the money would come from net tax income, as opposed to bonds. Councilmember Hilstrom believed the pay -as- you -go financing was better for this project. 08/31/98 -1- DRAFT Councilmember Hilstrom raised the question of how many years the pay -as- you -go financing would be and if it would start now. Mr. McCauley replied approximately five years and that the Council • would need to target the amount, and then set the date. Mr. Mulrooney discussed he had reviewed the proposal from Talisman and wanted to review with the Council the latest proposal. The latest project proposed by Talisman includes a redevelopment budget between $60 million to $65 million plus the initial acquisition price. The redevelopment costs would result in the following improvements to Brookdale: ► Renovation by Dayton's of its existing facility. ► Total renovations to the existing mall areas and new mall areas totaling 184,776 SF. ► Construction of a 20 screen theater which will occupy 89,000 SF of Brookdale area. ► Construction of a 20,000 SF, 450 seat West Court Amphitheater area. The budget previously proposed totaled $122,666,077 and with this new project proposal the total is $92,469,528, with a variance of ($30,196,549). The new project proposal promotes a significant reduction in expenditures, and the reduction is heavily pronounced in the hard costs associated with the project. The reduction in project costs is impacted by a reduction in the overall size of the project. The previous proposal had a final project size of 1,288,395 SF. The new proposal states the project will be 1,200,813 SF. This is a reduction of 87,582 SF, and the final cost would be $77 per foot or a reduction of $18 per foot. Mr. Mulrooney explained the cash on cash return breakdown and that the cash flow return with cash • on cash would be at 22.34 percent, and that this is reasonable for most real estate projects. Without the City's participation, Talisman would be required to invest additional equity in the project assuming the project costs are held constant and the bank loan is maximized for the project. Mr. Mulrooney stated that it is important to note that the information previously supplied by Talisman annualized the cash flow from Brookdale as the mall is currently configured at $1,853,052, and if Talisman undertakes the revitalization effort, the new proposal projects the net cash flow to be $1,675,765. Further explanation is needed by Talisman to identify why a substantial investment is being made which would result in a net decrease in cash flow. Mayor Kragness stated she would like to see the financing pay as you go, but that some assurance is needed on the development that would occur. Mr. McCauley discussed that the language could be worked out and that there needs to be a site plan in the near future. He suggested a few dates be set for deadlines to help the project process. Councilmember Hilstrom raised the question about Target being in Mr. Schlesinger's plan. She did not want to bankrupt other stores at a later date if stores were to open later with Talisman's development. 0 8/31 /98 -2- DRAFT • Mr. McCauley suggested he would recommend negotiation with Mr. Schlesinger and then make a report to the Council. The Council recessed at 8:30 p.m., and reconvened at 8:35 p.m. MISCELLANEOUS Mr. McCauley requested discussion of the miscellaneous items now and then move on to the discussion of the draft Capital Improvement Plan (CIP). Random Acts of Kindness letters will be going out soon and Mr. McCauley requested Council help with recruiting people for recognition. There has been an oversight in the Code Enforcement process with regard to the compliance letter and this will be taken care of by September 4, 1998. DISCUSSION OF DRAFT CAPITAL IMPROVEMENT PLAN Mr. McCauley discussed this draft CIP for streets is at a funding level of five years and that the plan is now a 25 year plan instead of a 20 year plan for completion of all streets. He suggested that Ms. Spector discuss the street improvements, parks, and miscellaneous projects. The utilities section will be discussed with the Rate Study at an Enterprise Work Session which will be set at a later date. . Ms. Spector stated that the City spent time looking at different neighborhoods to determine the best way to fund these improvements and that City staff had designed this plan, which she believes makes the CIP have a better outcome. In this five year plan it is proposed to complete two State Aid Street projects, the mill and overlay of Earle Brown Drive from John Martin Drive north to the new Earle Brown Heritage Center parking lot; and reconstruct 73rd Avenue from Humboldt to Camden. A question was raised as to where this money comes from. Ms. Spector responded this project would be eligible for State Aid Funding, and that streets that were included in this draft plan are available for State Aid Funding. Fifty percent of State Aid is based on population and the other 50 percent is on need of what has not been constructed in the last 20 years. In the next five years, neighborhoods with substantial drainage improvements would be dealt with and it is proposed to then move to the Garden City area and have this completed in three years. Councilmember Lasman raised the question about sidewalks being repaired. Ms. Spector responded that sidewalks will be worked on south of 694 next year, and that the final five year plan would include finishing the Southeast neighborhood and the Tangle town area. • 08/31/98 -3- DRAFT Under the Parks, Public Facilities, and Capital Equipment section, the playgrounds are as planned with no further changes. There is an issue that was highlighted that is not in the plan. The Lions • Club is looking to donate the cost of a shelter at Lions Park. This would put some pressure on the Golf Course and CARS Director Jim Glasoe is looking into this issue and will address the Council before accepting any donation. Last year all improvements were identified and a seven/eight year plan was developed. Over the past year there have been more accurate costs and these amounts are different than was planned for 1999. The lighting cost is one that is highlighted in this section due to cheaper costs being used. Ms. Spector noted these lights are for public safety. Councilmember Lasman raised a question about the Central Park parking lot and if it is in this five year plan. Mr. McCauley responded that depending on the plan for this area, he would like to wait and do all reconstruction at one time. Councilmember Lasman suggested having the parking lot maintained until the construction does take place. The wading pool at the Community Center was discussed and Mr. McCauley suggested to wait until the year 2000 to do anything major with this area. ADJOURNMENT Councilmember Carmody made a motion to adjourn the meeting at 10:10 p.m., seconded by Councilmember Lasman. Motion passed unanimously. City Clerk Mayor 08/31/98 -4- 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 SPECIAL WORK SESSION OCTOBER 19, 1998 CITY HALL CONFERENCE ROOM B CALL TO ORDER The Brooklyn Center City Council met for a Work Session at Brooklyn Center City Hall and was called to order by Mayor Pro Tern Kay Lasman at 7:05 p.m. ROLL CALL Councilmembers Kathleen Carmody, Kay Lasman and Robert Peppe. Mayor Myrna Kragness arrived at 7:10 p.m., and Councilmember Debra Hilstrom arrived at 7:14 p.m. Also present: City Manager Michael J. McCauley, Community Development Specialist Tom Bublitz, Finance Director Charlie Hansen, and Recording Secretary Maria Rosenbaum. City Manager Michael McCauley asked to start the Work Session with Item 5, Metro Transit • Plans and Options, and then go back to Item 1, Liquor Budget. METRO TRANSIT PLANS AND OPTIONS Mr. Michael McCauley discussed that the Met Council is requesting a potential location for transit operations near Brookdale and that a meeting has been scheduled with the developer of the Cub site, Talisman, and City Staff to review options and concepts that would be more permanent and acceptable. The Council discussed options and impacts on Brooklyn Center of tax exempt facilities already in the City. LIQUOR BUDGET Mr. McCauley discussed this budget reflects a continuation of the present configuration that would meet the financial goals previously set by the Council, and that a five -year projection of capital needs is included with the agenda materials. The discussion this evening would be what direction, if any, the Council would like to take. Finance Director Charlie Hansen discussed that with removing the boulevard liquor store, some costs were capitalized and he recommends a benchmark for the Liquor Fund which is that cash, minus accounts payable, should be at least 50 percent of accumulated depreciation. 10/19/98 4- DRAFT Councilmember Hilstrom raised a question regarding the liquor store number 2 summary. She • wanted to know if the summary included all the stores salaries. Mr. McCauley responded that all liquor store employee salaries are accounted for in the Liquor Fund. A portion of Finance department salaries are reimbursed through administrative fees paid by the Liquor Fund. The Council discussed the issue of the loss of the boulevard store building and land. The Council consensus was to defer any decisions on the future long term direction of the liquor stores until 1999, as previously agreed. Mayor Kragness reported that she had some calls regarding not being able to see the new liquor store entrance and asked if some new signing could be used. The Council suggested that a temporary sign permit be investigated. GOLF COURSE BUDGET Mr. McCauley discussed this budget reflects a continuation of present operations and projects an increased net revenue. The proposal for replacing lost storage /work space has been refined and the scope and cost reduced substantially. The budget proposal contains $8,000 to improve the garage to allow for some minor heated work. Major work will be moved to the garage after removal of the shelter building at Lion's Park. At this point the golf course projects a positive net cash flow. The golf course did have reduced revenues due to the storm water pond construction. Unless the final results for year end come in lower, staff was not requesting compensation to the fund for the lost • revenue. EARLE BROWN HERITAGE CENTER BUDGET Mr. McCauley recommended to defer discussion of the Earle Brown Heritage Center Budget until the work session on November 16, 1998. Adjustments need to be made and more staff and department head time is needed for review. CO -OP NORTHWEST Mr. McCauley discussed that a separate Community Housing Development Organization (CHDO) is being formed. The federal government has pressured to have the CHDO removed from CO -OP Northwest because it is too tied to governmental units in its board. CO -OP Northwest is re- evaluating its mission in light of the separation of the CHDO. The City has not used CHDO. CHDO works exclusively on low -and moderate - income projects. The City is addressing all income levels with the Housing Resources Center. Mr. McCauley indicated that staff was not inclined to recommend to the Council that the City participate in a fee standing CHDO and pay for such operations. It was the consensus of the Council not to participate. 10/19/98 -2- DRAFT • 1 DEFERRED LOAN PROGRAM Mr. McCauley asked the Council for clarification on the direction of the deferred loan program. The Council adopted the budget, with the understanding that the budget could be modified at a later point. The Council also, by motion put a freeze on fiscal 1998 use of the deferred loan program. Councilmember Hilstrom asked if any money had been used. Community Development Specialist Tom Bublitz discussed that technically no money has been used. The current status was that Hennepin County was in the process of finishing four grant applications. No new applications have been taken for some time since there is a long waiting list. There was additional discussion on how CDBG monies could be used and the various restrictions on it. Council and staff discussed those options, including using CDBG monies to fund eligible operating expenditures such as senior transportation or Northwest Hennepin Human Services. If CDBG funds were used for operating monies, this would be a change in previous Council policy. The Council policy has been to use CDBG monies for building projects only. The Council had specifically determined in the past not to use CDBG funds for operating expenditures. If the Council should change its policy and use CDBG funds for operating expenditures, the City could consider using current funds from the General Fund that were used for those operating expenses for unrestricted project monies in targeted areas. The Council discussed an interest in targeting neighborhoods in a rotating basis to encourage projects such as re- roofing. This approach would leverage the City's money by finding economies of scale for projects in neighborhoods that would be targeted. As a result of the discussion, staff will instruct Hennepin County to finish processing the four applications that are in progress, but to forego any new application processing from the waiting list. Staff will report back to the Council with options that may be available using CDBG funds for operating expenses to free up General Fund monies and whether there would be any CDBG eligible ways to approach targeted rehabilitation. CITY COUNCIL 1999 GOALS The 1999 goals were included in the agenda material for the Council to review. If there were no changes this goals would be considered at the October 26, 1998, City Council meeting. The Council had no changes from the materials. DISCUSSION OF SETTING NOVEMBER 30,1998, AS CITY COUNCIL WORK SESSION Mr. McCauley requested Council consideration to set November 30, 1998, as a City Council Work Session to discuss the General Fund. It was the consensus of the Council to add to the next Regular Session Agenda to set November 30, 1998, as a Work Session. 10/19/98 -3- DRAFT t MISCELLANEOUS Senator Rod Grams or a representative from his office would like to present the City with an award • for participation in National Night Out. Councilmember Hilstrom reported she received a call from a Brooklyn Center senior citizen regarding transportation from (Five Cities or PRISM). This transportation service was not able to provide her transportation to the requested location. ADJOURNMENT Councilmember Lasman made a motion to adjourn the meeting at 9:20 p.m., seconded by Councilmember Carmody. Motion passed unanimously. City Clerk Mayor 10/19/98 -4- 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 OCTOBER 26, 1998 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 and was called to order by Mayor Myrna Kragness at 6:45 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Debra Hilstrom, Kay Lasman, and Robert Peppe. Also present: City Manager Michael J. McCauley, Assistant City Manager/HR Director Jane Chambers, Finance Director Charlie Hansen, Public Works Director Diane Spector, Police Chief Joel Downer, City Attorney Charlie LeFevere, and Recording Secretary Maria Rosenbaum. INFORMAL OPEN FORUM Verna Mendosa, a University of Minnesota student, was present to visit the City of Brooklyn Center's City Council. ADJOURN INFORMAL OPEN FORUM A motion by Councilmember Carmody, seconded by Councilmember Lasman to adjourn the informal open forum at 6:49 p.m. Motion passed unanimously. 2. INVOCATION No invocation was offered. 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 7:00 p.m. 10/26/98 -1- DRAFT 4. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Debra Hilstrom, Kay Lasman, and Is Robert Peppe. Also present: City Manager Michael J. McCauley, Assistant City Manager/HR Director Jane Chambers, Public Works Director Diane Spector, Police Chief Joel Downer, City Attorney Charlie LeFevere, and Recording Secretary Maria Rosenbaum. 5. COUNCIL REPORT Councilmember Carmody reported she attended the second Community meeting hosted by the Parks and Recreation Commission at Garden City and that it was very informative. Councilmember Lasman reported she attended the Crime Prevention meeting on October 21, 1998; the next meeting will be on November 18, 1998, and there is a tentative fund raising event on November 30, 1998. Mayor Kragness reported she attended the Housing Commission meeting and the Time of Sale Ordinance was discussed. The matters referred by the Council previously were discussed and this ordinance will be on the agenda November 9, 1998. 6. APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Hilstrom requested Item 6e be removed from consent and added to consideration for discussion. A motion by Councilmember Carmody, seconded by Councilmember Lasman to approve the agenda and consent agenda as amended. Motion passed unanimously. 6a. APPROVAL OF MINUTES A motion by Councilmember Carmody, seconded by Councilmember Lasman to approve the minutes from the Regular Session on October 13, 1998. Motion passed unanimously. 6b. LICENSES A motion by Councilmember Carmody and seconded by Councilmember Lasman to approve the following list of licenses. Motion passed unanimously. COMMERCIAL KENNEL Pandora's Box Vet Clinic MECHANICAL SYSTEMS 10/26/98 -2- DRAFT 6e. APPROVAL OF OFF -SALE 3.2 MALT LIQUOR LICENSE AT HOLIDAY STATIONSTORES A motion by Councilmember Carmody, seconded by Councilmember Lasman to approve off -sale 3.2 malt liquor license at Holiday Stationstores. Motion passed unanimously. 6d. APPROVAL OF APPLICATION FOR MINNESOTA LAWFUL GAMBLING EXEMPT PERMIT SUBMITTED BY ANOKA COUNTY PHEASANTS FOREVER FOR AN EVENT TO BE HELD MARCH 6, 1999, AT EARLE BROWN HERITAGE CENTER, 6155 EARLE BROWN DRIVE A motion by Councilmember Carmody, seconded by Councilmember Lasman to approve application for Minnesota lawful gambling exempt permit submitted by Anoka County Pheasants Forever for an event to be held March 6, 1999, at Earle Brown Heritage Center, 6155 Earle Brown Drive. Motion passed unanimously. 6e. RESOLUTION AUTHORIZING THE TRANSFER OF FUNDS FROM THE SPECIAL ASSESSMENT CONSTRUCTION FUND TO THE GO IMPROVEMENTS OF 1994 DEBT SERVICE FUND This item was removed from the Consent Agenda and placed as Item No. 8i under Council Consideration Items. 6f. RESOLUTION ESTABLISHING IMPROVEMENT PROJECT NO. 1998 -16, MAC PARK NATURE PRESERVE TRAIL PROJECT AND NAMING FISCAL AGENT FOR ADMINISTRATION OF GRANT FUNDS RECEIVED THROUGH THE REGIONAL TRAIL INITIATIVE GRANT PROGRAM RESOLUTION NO. 98 -184 Councilmember Carmody introduced the following resolution and moved its adoption: RESOLUTION ESTABLISHING IMPROVEMENT PROJECT NO. 1998 -16, MAC PARK NATURE PRESERVE TRAIL PROJECT AND NAMING FISCAL AGENT FOR ADMINISTRATION OF GRANT FUNDS RECEIVED THROUGH THE REGIONAL TRAIL INITIATIVE GRANT PROGRAM The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. • 10/26/98 -3- DRAFT 6g. RESOLUTION APPROVING FINAL PLAT, EVANGELICAL LUTHERAN CHURCH OF THE MASTER 3RD ADDITION RESOLUTION NO. 98 -185 Councilmember Carmody introduced the following resolution and moved its adoption: RESOLUTION APPROVING FINAL PLAT, EVANGELICAL LUTHERAN CHURCH OF THE MASTER 3RD ADDITION The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. 6h. APPROVAL OF MINNESOTA LAWFUL GAMBLING APPLICATION TO CONDUCT EXCLUDED BINGO SUBMITTED BY WILLOW LANE PTA FOR AN EVENT TO BE HELD NOVEMBER 20,1998, AT WILLOW LANE ELEMENTARY SCHOOL, 7020 PERRY AVENUE NORTH A motion, by Councilmember Carmody, seconded by Councilmember Lasman to approve Minnesota lawful gambling application to conduct excluded bingo submitted by Willow Lane PTA for an event to be held on November 20, 1998, at Willow Lane Elementary School, 7020 Perry Avenue North. Motion passed unanimously. 7. PUBLIC HEARING 7a. AN ORDINANCE VACATING UTILITY EASEMENTS IN CERTAIN LOTS IN BLOCK 1, JOHN RYDEN SECOND ADDITION This ordinance was presented tonight for a second reading and Public Hearing. This ordinance is to vacate utility easements on eight lots in JOHN RYDEN SECOND ADDITION. Vacating these easements would allow the owners of the eight properties to purchase their part of the long, narrow parcel, combine it with their main parcel, and have 11 %2 more feet of usable back yard. These vacations would be the last step in finally cleaning up the issue of this long, narrow tax forfeit parcel. Private utilities had been notified of this pending vacation, and no objections had been received. A motion by Councilmember Lasman, seconded by Councilmember Hilstrom to open the Public Hearing. Motion passed unanimously. There was no one who wished to addressed the Council. A motion by Councilmember Lasman, seconded by Councilmember Hilstrom to close the Public Hearing. Motion passed unanimously. 10/26/98 -4- DRAFT . ORDINANCE NO. 98 -12 Councilmember Carmody introduced the following ordinance and moved its adoption: AN ORDINANCE VACATING UTILITY EASEMENTS IN CERTAIN LOTS IN BLOCK 1, JOHN RYDEN SECOND ADDITION The motion for the foregoing ordinance was duly seconded by Councilmember Lasman. Motion passed unanimously. 7b. AN ORDINANCE AMENDING CHAPTER 35 OF THE CITY ORDINANCES REGARDING THE ZONING CLASSIFICATION OF CERTAIN LAND (BROOKDALE CHRYSLER PLYMOUTH) This ordinance amending Chapter 35 of the City Ordinances regarding the zoning classification of certain land (Brookdale Chrysler Plymouth) was presented to tonight for a second reading and Public Hearing. On September 28, 1998, the City Council adopted Resolution No. 98 -169 which approved Planning Commission Application No. 98017 submitted by Dave Phillips on behalf of Brookdale Chrysler Plymouth. This application was a request for rezoning and site and building plan approval under the Planned Unit Development process involving the properties at 6121 Brooklyn Boulevard (Brookdale Chrysler Dealership) and 6107 Brooklyn Boulevard (vacant land). It is recommended following the • Public Hearing to adopt the ordinance amendment describing the property rezoned from C -2 and C to PUD /C -2. A motion by Councilmember Lasman, seconded by Councilmember Hilstrom to open the Public Hearing. Motion passed unanimously. There was no one who wished to addressed the Council. A motion by Councilmember Lasman, seconded by Councilmember Hilstrom to close the Public Hearing. Motion passed unanimously. ORDINANCE NO. 98 -13 Councilmember Lasman introduced the following ordinance and moved its adoption: AN ORDINANCE AMENDING CHAPTER 35 OF THE CITY ORDINANCES REGARDING THE ZONING CLASSIFICATION OF CERTAIN LAND (BROOKDALE CHRYSLER PLYMOUTH) . 10/26/98 -5- DRAFT The motion for the foregoing ordinance was duly seconded by Councilmember Carmody. Motion passed unanimously. 8. COUNCIL CONSIDERATION ITEMS 8a. RESOLUTION ADOPTING GOALS FOR 1999 Mayor Kragness asked Councilmember Peppe to read the Council goals. Councilmember Peppe read the following: Goal 1: Support Brookdale Redevelopment By: • use of tax increment assistance • review and evaluation of land use applications • prompt construction and plan review /inspection • monitoring developer performance Goal 2: Continue and Improve Code Enforcement and Compliance Activities By: • coordinated effort of police and community development departments • evaluation of additional approaches to improve compliance such as greater penalties and alternate approaches such as charging property owner for violation removal by City if fail to comply Goal 3: Increase Proactivity Towards Fighting Crime By: . • increased visibility of police in neighborhoods • continue and expand on high participation rate in neighborhood watch groups • begin recruitment of park watch groups or extensions of neighborhood watch to include parks • two newsletter articles on neighborhood watch and encouraging active participation Goal 4: Finish Fire and Police Building Construction Goal 5: Evaluate Housing Programs and Policies By: • Council decision on resource allocation • survey current practices in other cities on occupancy limits and coordinate that review with housin g commission • continue ARM participation • Council decision on point -of- -sale ordinance • review first -time home buyer programs • review potential and actual offerings by Greater Metropolitan Minneapolis Housing Corporation 10/26/98 -6- DRAFT . Goal 6: Plan for Needed Work at Community Center and City Hall By: • preparation of overview of options, mandatory Americans With Disabilities • Act modifications and required repairs to walls, roofs, and heating, ventilation air conditioning � b • solicitation of citizen input • development of plans with architect and construction manager • development of budget Goal 7: Create Neighborhood Traffic Safety Plan • enforcement of speed limits • define goals and attainable results ✓ hire consultant to assist in development of neighborhood traffic safety planning ✓ coordinate with neighborhood watch groups Goal 8: Continue and Improve Long -Term Financial Planning • continue five -year planning for utilities and capital improvements • continue /expand five -year planning for other funds • review and develop contingency planning RESOLUTION NO. 98 -186 Councilmember Hilstrom introduced the following resolution and moved its adoption: • RESOLUTION ADOPTING GOALS FOR 1999 The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. 8b. PROPOSED YEAR 2000 COMPLIANCE ACTIVITIES City Manager Michael McCauley requested the Council authorize the use of Contingency Funds to hire LDSi to conduct studies for the Year 2000. These studies would include inventory of personal computers and equipment that may be subject to the Year 2000 related malfunctions. An agreement has been proposed and the City Attorney suggested changes that are being made. This work is anticipated to begin immediately upon the execution of the agreement. Council discussed several Year 2000 issues. Mr. McCauley advised that much work will remain in evaluating embedded chips. Embedded chips are not part of the LDSi study. A motion by Councilmember Lasman, seconded by Councilmember Carmody to approve activities and authorize City Manager to use Contingency Funds to hire LDSi to conduct Year 2000 studies. Motion passed unanimously. • 10/26/98 -7- DRAFT 8c. SET DATE AND TIME OF WORK SESSION Mr. McCauley requested setting Monday, November 30, 1998, for a General Work Session that will focus on budget issues. A motion by Councilmember Carmody, seconded by Councilmember Peppe to set November 30, 1998, as a Work Session at 7:00 p.m. in Conference Room B, City Hall. Motion passed unanimously. 8d. RESOLUTION REGARDING THE CITY OF BROOKLYN CENTER'S COMPREHENSIVE PLAN Mr. McCauley discussed this resolution had been prepared to assure the Metropolitan Council that an erosion control ordinance would be adopted as required by the Metropolitan Council. This would allow the Council to continue its review of the Comprehensive Plan. RESOLUTION NO. 98 -187 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION REGARDING THE CITY OF BROOKLYN CENTER'S COMPREHENSIVE PLAN The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Peppe. Motion passed unanimously. • 8e. RESOLUTION AUTHORIZING THE TRANSFER OF SURPLUS FUNDS FROM THE GENERAL FUND TO THE SPECIAL ASSESSMENT CONSTRUCTION FUND AND THE CAPITAL IMPROVEMENTS FUND This resolution transfers $350,000 of Surplus Funds from the General Fund to the Special Assessment Construction Fund and the Capital Improvements Fund. There is a need in the Special Assessment Construction Fund for $225,000 to pay for a portion of the 1999 neighborhood street improvements, and a need in the Capital Improvements Fund for $125,000 to provide an annual ongoing level of effort to fund park and building needs. Councilmember Hilstrom made a notation that the Council planned to have this Surplus Fund as part of its plan for capital funding. RESOLUTION NO. 98 -188 Councilmember Hilstrom introduced the following resolution and moved its adoption: 10/26/98 -8- DRAFT • RESOLUTION AUTHORIZING THE TRANSFER OF SURPLUS FUNDS FROM THE GENERAL FUND TO THE SPECIAL ASSESSMENT CONSTRUCTION FUND AND THE CAPITAL IMPROVEMENTS FUND The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Carmody. Motion passed unanimously. SE RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,085,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1998A This bond will cover the 1998 street reconstruction and storm sewer construction projects. Special assessments will be collected over the next ten years and will be used to make principal and interest payments on the bonds. Mr McCauley informed the Council this is consistent with City plans. RESOLUTION NO. 98 -189 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,085,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1998A The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Carmody. Motion passed unanimously. 8g. RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,585,000 GENERAL OBLIGATION STATE -AID ROAD REFUNDING BONDS, SERIES 1998B This bond will be used to refund in advance of maturity the 2001 through 2006 maturities of the City's $3,000,000 General Obligation State -Aid Road Bonds, Series 199113, dated September 1, 1991. Springsted, Inc., estimates that the refunding bonds could be sold at significantly lower interest rates and with the costs of issuance there is projected present value savings of over $100,000. RESOLUTION NO. 98 -190 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,585,000 GENERAL OBLIGATION STATE -AID ROAD REFUNDING BONDS, SERIES 1998B 10/26/98 -9- DRAFT The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Peppe. Motion passed unanimously. 8h. RESOLUTION AWARDING BID FOR WEST FIRE STATION Mr. McCauley discussed this resolution is awarding the bid received from the lowest responsible bidder, Axel H. Ohman, Inc., for masonry work at the West Fire Station. A question was raised as to if there were any other bids received. Mr. McCauley responded that there were five bids received and that Axel H. Ohman, Inc., had the lowest base bid for this portion of work. RESOLUTION NO. 98 -191 Councilmember Carmody introduced the following resolution and moved its adoption: RESOLUTION AWARDING BID FOR WEST FIRE STATION The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Hilstrom. Motion passed unanimously. 8i. RESOLUTION AUTHORIZING THE TRANSFER OF FUNDS FROM THE SPECIAL ASSESSMENT CONSTRUCTION FUND TO THE GO IMPROVEMENT OF 1994 DEBT SERVICE FUND Councilmember Hilstrom requested this resolution be removed from the Consent Agenda and added to Council Consideration for clarification. She wanted to clarify that the monies being transferred from the Special Assessment Construction Fund to the GO Improvement of 1994 Debt Service Fund was a transfer of money to the appropriate fund. The monies were placed in the Special Assessment Construction Fund from MSA Funds for debt coverage of assessments and need to be transferred to the Debt Service Fund. RESOLUTION NO. 98 -192 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING THE TRANSFER OF FUNDS FROM THE SPECIAL ASSESSMENT CONSTRUCTION FUND TO THE GO IMPROVEMENT OF 1994 DEBT SERVICE FUND The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Hilstrom. Motion passed unanimously. 10/26/98 -10- DRAFT The Council recessed at 7:39 p.m. due to the fact that the representative from Senator Rod Grams' office was not present. It was the consensus of the Council to call to order the Economic Development Authority meeting. This meeting adjourned at 7:42 p.m., and then Council took a break and reconvened at 8:10 p.m. 9. PRESENTATIONS - SenatorRod Grams: National Ni Out Award Rich Tostenson, a representative from Senator Rod Grams office, presented an award to Mayor Kragness on behalf of Senator Rod Grams for participation in National Night Out. Brooklyn Center was one of 30 cities recognized during the National Crime Prevention Month. Mayor Kragness then presented the award to Police Chief Joel Downer and Officer Dave Grass. Mr. Grass read the award and reported there are now 148 groups participating in the Neighborhood Watch. 10. ADJOURNMENT A motion by Councilmember Hilstrom, seconded by Councilmember Lasman to adjourn the meeting at 8:15 p.m. Motion passed unanimously. City Clerk Mayor 10/26/98 -11- 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 SPECIAL SESSION NOVEMBER 4, 1998 CITY HALL CALL TO ORDER The Brooklyn Center City Council met in special session as an election canvass board and was called to order by Mayor Myrna Kragness at 5:45 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Debra Hilstrom and Robert Peppe. Councilmembers Kathleen Carmody and Kay Lasman were absent and excused. Also present were City Manager Michael J. McCauley, City Clerk Sharon Knutson, and Administrative Technician/Deputy City Clerk Maria Rosenbaum. CANVASS OF ELECTION RETURNS The Brooklyn Center City Council proceeded to canvass the Ci ty election returns from the various City precincts, reporting ballots cast in the City of Brooklyn Center contests as follows: OFFICE OF MAYOR BALLOT COUNT Myrna Kragness 6,076 Robert Peppe 5,197 Write -in Votes 37 OFFICE OF COUNCIL MEMBER BALLOT COUNT Debra Hilstrom 6,519 Ed Nelson 4,560 Jerry Blamey 3,895 Chuck Lenthe 3,356 Write -in Votes 71 RESOLUTION NO. 98 -193 Upon completing the election canvass, Councilmember Hilstrom introduced the following resolution and moved its adoption: RESOLUTION REGARDING CANVASS OF NOVEMBER 3, 1998, GENERAL ELECTION 11/4/98 -1- DRAFT The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Peppe and the motion passed unanimously. ADJOURNMENT A motion by Councilmember Peppe and seconded by Councilmember Hilstrom to adjourn the meeting passed unanimously. The Brooklyn Center City Council meeting adjourned at 5:47 p.m. City Clerk Mayor Recorded and transcribed by: Sharon Knutson 11/4/98 -2- DRAFT City Council Agenda Item No. 6b • • City of Brooklyn Center A great place to start. A great place to stay. MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Maria Rosenbaum, Administrative Technician DATE: November 4, 1998 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 November 9, 1998: AMUSEMENT DEVICES - VENDOR Metro Coin, Inc. 9903 Valley View Road, Eden Prairie MECHANICAL SYSTEMS Automatic Garbage Door and Fireplaces 220 -77th Avenue NE, Minneapolis Suburban Air 8419 Center Drive, Minneapolis Whole Aire Company, Inc. 7330 205th Avenue NW, Elk River RENTAL DWELLING Initial: Kathy Becker 5746 Irving Avenue North Jason Johnson 4204 Lakebreeze Avenue North 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Mall & 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 • MEMORANDUM DATE: November 5, 1998 TO: Michael J. McCauley, City Manager FROM: Scott A. Brink, City Engineer_ SUBJECT: Resolution Accepting Work Performed and Authorizing Final Payment, Improvement Project No. 1998 -08, Contract 1998 -C, Reforestation of 1997 Street Improvement Areas On April 13, 1998, the City Council awarded a contract to North Metro Landscaping, Inc. in the amount of $47,092.10 for Contract 1998 -C. North Metro Landscape has completed the work as specified. The final certified amount is $49,766.88. The final contract amount has increased by $2,674.78 due to additional trees required to replace those removed during the 1997 construction season. Sixteen trees were added to the contract after the award. The original contract specified 286 trees and the final quantity was 302 trees planted. A $1,700 deduct has been assessed for liquidated damges for not completing the work within the specified time. It is recommended to accept the work performed in the amount of $48,066.88. • ® its adoption: Member introduced the following resolution and moved RESOLUTION NO. RESOLUTION ACCEPTING WORK PERFORMED AND AUTHORIZING FINAL PAYMENT, IMPROVEMENT PROJECT NO. 1998 -08, CONTRACT 1998 -C, REFORESTATION OF 1997 STREET IMPROVEMENT AREAS WHEREAS, pursuant to a written contract signed with the City of Brooklyn Center, Minnesota, North Metro Landscaping has satisfactorily completed the following improvement in accordance with said contract: Improvement Project No. 1998 -08, Contract 1998 -C, Reforestation of 1997 Street Improvement Areas NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that: 1. It is hereby directed that final payment be made on said contract, taking the Contractor's receipt in full. The total amount to be paid for said improvement under said contract shall be $48,066.88. 2. The work completed under said contract is accepted and approved according to the following schedule: As Bid As Final I Project Area Orchard France I Total Orchard France Total Lane West Ave. 1998 -08 Lune West Ave. 1998 -08 Contract $41,037.56 $ 6,054.54 $47,092.10 $42,671.96 $7,094.92 $49,766.88 Contingency 4,103.76 605.45 4,709.21 (1,700.00) -- (1,700.00) (10 %) Liq. Damages Liq. Damages Subtotal $45,141.32 $ 6,659.99 $51,801.31 $40,971.96 $7,094.92 $48,066.88 Construction Eng., Legal, 2,125.00 375.00 2,500.00 3,912.74 978.18 4,890.92 Admin. (4 %) Total Project Cost $47,266.32 $ 7,034.99 $54,301.31 $44,884.70 $8,073.10 $52,957.80 • • RESOLUTION NO. As Bid As Final Improvement No. 1997 -01, 02 & 03 1997 -04, 05 & 06 1997 -01, 02 & 03 1947 -04, 05 & 06 Project Area Orchard Lane West France Ave. Orchard Lane West France Ave. SA Construction Fund $47,266.32 - -- $44,884.70 MSA - - -- $ 7,034.99 - -- $8,073.10 Total $47,266.32 $ 7,034.99 $44,884.70 $8,073.10 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. 6d • MEMORANDUM DATE: November 3, 1998 TO: Michael J. McCauley, City Manager FROM: Scott A. Brink, City Engineer5k SUBJECT: Resolution Accepting Work Performed and Authorizing Final Payment, Improvement Project No. 1998 -26, Contract 1998 -G, Relocation of 16" Water Main at West Fire Station On May 11, 1998, the City Council awarded a contract to Northdale Construction in the amount of $64,741.96 for Contract 1998 -G. The work essentially provided for the relocation of a 16 inch water main loop to provide for the construction of the West Fire Station. Northdale Construction has completed the work as specified. The final contract amount of $72,741.86 is 12 per cent higher than the contract bid. The increase can be attributed to additional pipe fitting quantities and an oversize 16" valve manhole that was needed during the course of the work. A 10 per cent contingency had been provided to cover any additional costs • incurred. It is recommended to accept the work performed in the amount of $72,741.86. • • adoption: Member introduced the following resolution and moved its RESOLUTION NO. RESOLUTION ACCEPTING WORK AND AUTHORIZING FINAL PAYMENT, IMPROVEMENT PROJECT NO. 1998 -26, CONTRACT 1998 -G, RELOCATION OF 16" WATER MAIN AT WEST FIRE STATION WHEREAS, pursuant to written contract signed with the City of Brooklyn Center, Minnesota, Northdale Construction has satisfactorily completed the following improvement in accordance with said contract: Improvement Project No. 1998 -26, Contract 1998 -G, Relocation of 16" Water Main at West Fire Station NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that: 1. The work under said project is accepted and approved according to the following schedule: COST As Bid Final Amount Contract $64,741.96 $72,741.86 Contingency (10 %) $ 6.479.19 $ -0- Subtotal $71,216.15 $72,741.86 Admin. /Engr. /Legal $ 5.000.00 $ 2.778.00 Total $76,216.15 $75,519.86 REVENUE Water Utility Fund $76,216.15 $75,519.86 2. It is hereby directed that final payment be made on said contract, taking the Contractor's receipt in full. The total amount to be paid for said improvement under said contract shall be $72,741.86. 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 • MEMORANDUM DATE: November 5, 1998 TO: Michael J. McCauley, City Manager FROM: Scott A. Brink, City Engine{ SUBJECT: Resolution Accepting Work Performed and Authorizing Final Payment, Improvement Project No. 1998 -30, Contract 1998 -P, Miscellaneous Sidewalk/Retaining Wall On September 14, 1998, the City Council awarded a contract to Rosti Construction Company, Inc. in the amount of $53,420.00 for Contract 1998 -P. The work essentially provided for replacement of various portions of boulevard retaining walls and sidewalk sections that had deteriorated and were in need of replacement. A total of $75,000 was budgeted in the 1998 MSA Local Fund for sidewalk and retaining wall improvements. Rosti Construction Company, Inc. has completed the work as specified. The final contract for Rosti Construction in the amount of $54,421.93 is 1 per cent over the original contract bid. It is recommended to accept the work performed by Rosti Construction in the amount of $54,421.93. Jordan & Sons contracted for sod replacement of the boulevards damaged by the wall reconstruction. The final contract for Jordan & Sons is $1,890.00. It is recommended to accept the work performed by Jordan & Sons in the amount of $1,890.00. • • its adoption: Member introduced the following resolution and moved RESOLUTION NO. RESOLUTION ACCEPTING WORK AND AUTHORIZING FINAL PAYMENT, IMPROVEMENT PROJECT NO. 1998 -30, CONTRACT 1998 -P, MISCELLANEOUS SIDEWALK AND RETAINING WALL REPLACEMENTS WHEREAS, pursuant to written contract signed with the City of Brooklyn Center, Minnesota, Rosti Construction has satisfactorily completed the following improvement in accordance with said contract: Improvement Project No. 1998 -30, Contract 1998 -P, Miscellaneous Sidewalk and Retaining Wall Replacements NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that: 1. The work under said project is accepted and approved according to the • following schedule: COST As Bid Final Amount Contract ( Rosti Const.) $53,420.00 $54,421.93 Contract (Jordan & Sons) $ -0- $ 1,890.00 Contingency (10 %) $ 5.420.00 $ -0- Subtotal $58,840.00 $56,311.93 Admin. /Engr. /Legal $ 3,500.00 $ 2.500.00 Total $62,340.00 $58,811.93 REVENUE MSA -Local Fund $62,340.00 $58,811.93 2. It is hereby directed that final payment be made on said contract, taking Rosti Construction's receipt in full. The total amount to be paid for said improvement under said contract shall be $54,421.93. 3. It is hereby directed that final payment be made on said contract, taking Jordan & Sons' receipt in full. The total amount to be paid for said improvement under said contract shall be $1,890.00. RESOLUTION NO. 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 1 • MEMO To: Michael J. McCauley, City Manager From: Ronald A. Warren, Planning and Zoning Specialise. Subject: City Council Consideration Item - Planning Commission Application No. 98020 Date: November 4, 1998 On the November 9, 1998 City Council Agenda is Planning Commission Application No. 98020 submitted by John Craig requesting Special Use Permit approval to conduct a vending machine supply home occupation involving the use of an accessory building at 6921 Logan Avenue North. Attached for your review are copies of the Planning Commission Information Sheet for Planning Commission Application No. 98020 and also an area map showing the location of the property under consideration, the Planning Commission minutes relating to the Commission's • consideration of this matter and other supporting documents. This matter was considered by the Planning Commission at their October 29, 1998 meeting and was recommended for approval. It is recommended that the City Council, following consideration of this matter, approve the application subject to the conditions recommended by the Planning Commission. Application Filed on 8 -31 -98 • City Council Action Should Be Taken By 10 -30 -98 (Applicant Has Waived the 60 Day Limitation) Planning Commission Information Sheet Application No. 98020 Applicant: John Craig Location: 6921 Logan Avenue North Request: Special Use Permit (Home Occupation) The applicant, Mr. John Craig, requests special use permit approval to conduct a family operated vending machine business involving the storage of some inventory in the garage. The property in question is zoned R -1 and is the fourth house north of 69th Avenue on the west side of Logan Avenue (6921 Logan). It is bounded on the north, west and south sides by single family homes and on the east by Logan Avenue Nvith single family homes also located on the opposite side of Logan Avenue. Home occupations that involve the use of an accessory structure on the property are classified as "special home occupations" requiring the granting of a special use permit by the City Council, following review and public hearing by the Planning Commission. The use of the home as a business office or place of business for a vending machine company without the use of an accessory building for storage would be considered a " permitted home occupation" not requiring any formal approval by the City Council. • The applicant has submitted a brief letter (copy r ( p, attached) in which he describes the home occupation which has apparently been in operation for some time. He notes that they store all snack items inside the home but do store soft drinks in their garage. He explains that their premises has been inspected by representatives of the Department Agriculture from the State of Minnesota and has provided us with a copy of his current license /certification from the Department of Agriculture which expires on March 31, 1999. Mr. Craig notes that they bring all the product that is to be stored in the garage to the site in their own vans. He notes that there are no outside deliveries and no one comes to the site on business. It should be noted that Mr. Craig has explained to me that the only employees within the business are those residing on the premises. Special home occupations are defined as any gainful occupation or profession carried on within a dwelling unit or any permitted accessory buildings or installations on a lot, by a family member residing within the dwelling unit, which is clearly incidental and secondary to the residential use of the dwelling unit, the accessory structure and the lot upon which it is being conducted. The ordinance goes on to cite such things as barber and beauty services, shoe repair, photography studios, group lessons, saw sharpening or motor driven appliances and small engine repair and 10 -29 -98 . 10 -15 -98 Page 1 similar activities as being the types of home occupations considered to be "special home occupations ". Special home occupations are subject to the further limitations contained in Section 35 -406 of the zoning ordinance (copy attached). Among other things, special home occupations should not involve the use of equipment not customarily found in a residential dwelling, should not employ more than one non - resident employee, create traffic congestion on the lot or the streets adjacent thereto, require the parking of vehicles related to the home occupation on street, nor produce light, glare, noise, odor or vibrations perceptible beyond the boundaries of the lot nor include the retail sale of merchandise produced off of the lot. As indicated, the applicant's proposed home occupation for which the special use permit must be granted involves the storage of soft drinks in an accessory building. This is the nature of the requested approval. It appears that the hours of operation and the activity level involved with this vending business are relatively low. It should be noted that the business should not require the need to ark q P vehicles related to the proposed home occupation on a consistent basis or in conflict with the parking requirements contained in Section 19 -103, Subdivision 12 of the city ordinances relating to the parking and storage of vehicles within the city (copy attached). This does not mean that vehicles that exceed the size limits contained in this section of the ordinance may never be on the property, but only that they be confined to pick ups and deliveries. Continual parking beyond two hours would be a violation of the city's ordinances and are not condoned by any granting of a special use permit for the operation. i All in all, we see the proposal as being a very low level home occupation based on the information provided by the applicant and it is considered to be incidental and secondary to the residential use of the property. A public hearing has been scheduled and notices of the Planning Commission's consideration have been sent to neighboring property owners. It appears that this home occupation can be kept to a relatively low level and should not cause problems in the neighborhood if it is conducted in an appropriate manner. Therefore, approval of this special use permit could be made subject to at least the following conditions: I. The special use permit is granted only for a vending machine supply business involving the storage of soft drinks in the accessory building. This use may not be altered or expanded in any way not comprehended by this application without first securing an amendment to this special use permit. 2. The special use permit is subject to all applicable codes, ordinances and regulations. Any violation thereof may be grounds for revocation. 10 -29 -98 10 -15-98 Page 2 3 . All parking associated with the home occupation shall be off street on improved space provided by the applicant. Vehicle parking on the property shall be in compliance with Section 19 -103, Subdivision 12 of the city ordinances. 4. The hours of operation shall be between the hours of 8 a.m. and 5 p.m., Monday through Friday. Customer service shall not be provided on the property. 5. A current copy of the applicant's license /certification from the Minnesota Department of Agriculture shall be kept on file with the city. 10 -29 -98 10 -15 -98 Page 3 NEYION '3AY •N NEII?Ort AVE N It19}lON 3AY LDRGAN AVE N t 1000 - iltiS, - Nl90 t 3AY _ ' LOGAN AVE N 1800 O c_ N 3AV Of GI t KHOX AVE N 1600 �3AY S3ml O > t n Uj Ir N 3AY 53rrif JAWS AVE N 1700 ��YVP pt TRYING AYE. > IRVING AA N 7i OIIIAUI — z —-- t 1600 Exh z V ?I —. L I 111/80LDT AVE N h I � 1500 lily: `' •ti" � I }r — h�? 1 CIRARD AYE. N. GIRARD AYE H 1400 IRAIID AYE._ —.-- > t > 8 HfREUIT (? fRELOM AVE N rn i- 1300 FII AVE. cY � 'N '3AV tDSU NOSY30 AVE. I. ElERSON AVE N / 1100 [ r`d r N _ ` "CtfT AVE N y rl 3AY 1NO anG — 1100 z DUPONI AYE• N. • ° COLFAX AVE N XYJIOO i - i �J 1F1 1000 70LF -}A-YEt'i -� � FF NN..,, / � ,Vy ENTMIl AVE H /' N '3AV 11TYA1A t POO ALDRICH AVE N U �Vaido , _ 600 GUDEH AVE N 1 v J N Z N 3AY to C"EN AVE. N. 1 T00 rfJDl MJ Ell Q$+-- A N 3AY _ 5TH AVE N rn •N •3AV 'HIS, z _'_� ►� i � 600 r TH 151 - WEST R!VE 1 I It RIVER RD f, -�•= =- �� -... DALLAS DAL RD r.ss r-r•- WILLOW LA. _ > IP 300 DALLAS RD N D.C. VENDING 6921 COCAIN AVE N. • BROOKLYN CENTER MINNESOTA 55430 (612)566.1611 I r / 7 1 i 8 /?1 /9a f Ron Warren I Planning Commission, D.C.Vending is a family owned vending company which we operate out of the home i We store all snack items inside the building i but store all of our soda items 'in the garage. We have been inspected by a representative of the Department of Agriculture of the State of Minnesota. We all of the product to be stored to this site in our own vans. There are no outside deliveries, and no one comes to this site on business. Thanks f r your consideration, o / �ohn Craiu / D.C.v ending D.C. VE1NDING • 6421 LOCAN AVE. N. • BROOKLYN CENTER MINNESOTA 55430 � (61- T0; Brooklyn Center Planning j Ron Warren { This note serves to waive the 60 day response clause as written in the city regulations. �ohn Craig DC .Vending • f �} • 1 i 1 • t Y f Section 35 -405. ADDITIONAL REQUIREIENTS FOR HOME OCCUPATIONS: 1. No home occupation shall produce light, glare, noise, odor or vibration perceptible beyond the boundaries of the lot. 2. No home occupation shall involve the use of any accessory structures or installations. 3. No home occupation shall involve the use of equipment other than that customarily found in a residential dwelling unit. 4. No home occupation shall involve the retail sale of merchandise produced off the lot. 5. No home occupation shall involve the employment on the lot of persons who are not members of the family residing on the lot. 6. No home occupation providing day care shall serve more than twelve (12) children in the R1 district, five (5) children in the R2 and R3 districts, or five (5) children, including children of the family occupying a dwelling unit in other residential districts (R4 through R7). This subsection is not intended to supersede any lease arrangements which may be more restrictive. 7. No home occupation shall cause traffic congestion on the lot containing the home occupation or on the streets adjacent thereto. 8. No automobile parking related to the home occupation shall be permitted on the street. Section 35 -406. ADDITIONAL REQUIREI'viENTS FOR SPECIAL HOME OCCUPATIONS: 1. All special home occupations shall require approval of a special use permit pursuant to Section 35 -220 of the Brooklyn Center Zoning Ordinance. 2. No special home occupation shall use more than one accessory structure or installation and such structure or installation must be a permitted use under Section 35 -310 and Section 35- 311 of the Brooklyn Center Zoning Ordinance. 3. A special home occupation may use equipment not customarily found in a residential dwelling unit. 4. No special home occupation shall employ, at any one time, more than one person who is not a member of the family occupying the dwelling unit. 5. No special home occupation may include the teaching of more than ten (10) students at one time who are not members of the family occupying the dwelling unit. 35 -55 6. No special home occupation shall cause traffic congestion on the lot containing the special home occupation or on the streets adjacent thereto. 7. No automobile parking related to the special home occupation shall be permitted on the street provided, however, that upon a finding that the special home occupation is not feasible without on street parking, the City Council may authorize parking on the street based upon a consideration of Section 35 -220.2 and of the following: a. The amount of the applicant's street frontage. b. The rights of adjacent residents to park on the street. C. Preservation of the residential character of the neighborhood. S. No special home occupation shall produce light, glare, noise, odor or vibration perceptible beyond the boundaries of the lot. 9. No special home occupation shall include the retail sale of merchandise,produced off the lot. Section 35 -410.. SPECIAL REQUIRES " TS IN R3, R4, R5, R6 AND R7 DISTRICTS. 1. All storage shall be contained wholly within an enclosed building. 2. The incineration of waste matter shall be conducted in approved equipment located within the building wherein the permitted use is conducted. Equipment shall be considered "approved" when approved by the zoning official and sanitarian. 3. Where a proposed R3, R4, R5, R6, or R7 development abuts an R or R2 district other than at a public street line, buffer provisions shall be established. There shall be provided a protective strip not less than 25 feet wide in the case of R6 and R7 uses and not less than 15 feet wide in the case of R3, R4 and R5 uses. The protective strip shall contain an opaque fence or a Council approved substitute. The protective strip shall be landscaped and not be used for parking, garages, driveways, off -street loading or storage. The screening device design must be approved by the City Council as being in harmony with the residential neighborhood and providing sufficient screening of the multiple dwelling area. A proposed fence shall be no less than four feet in height and shall not extend within 10 feet of any street right -of -way. 4. No building permit shall be issued until a site and parking layout has been approved as provided in Section 35 -230. No parking shall be permitted within 15 feet of the street right - of -way, and the 15 foot area shall be maintained as a green strip. • 35 -56 /9 IL') 3 4. Accumulations of rubbish as defined herein. 6. The dumping of any effluent, garbage, rubbish, wastewater, or other noxious substance upon public or private property. 6. Any open well, pit, excavation, structure, barrier or other obstruction which endangers public health, safety or welfare. 7. The pollution of any public or private well or cistern, any public stream, lake, canal, or body of water by effluent, garbage, rubbish or other noxious substance. S. Any noxious weeds, or any other vegetation which endangers public health, safety or welfare, or which is contraband within the meaning of state or federal laws. 9. The emitting or production of dense smoke, foul odor, noise, noxious fumes, gases, soot, cinders or sparks in quantities which unreasonably annoy, injure, or endanger the safety, health, morals, comfort, or repose of any number of members of the public. 10. The public exposure of persons having a contagious disease or condition which endangers public health, safety or welfare. 11. Accumulation of junk, disused furniture, appliances, machinery, automobiles and parts thereof or any matter which may become a harborage for rats, snakes or, vermin, which creates a visual blight, or which may be conducive to fire, or which endangers the comfort, repose, health, safety or welfare of the public. 12. The parking and/or storage of construction equipment, farm vehicles and equipment, or a commercial vehicle with a length greater than 21 feet, or a height greater than 8 feet, or a gross vehicle weight greater than 9,OOa pounds, continuously for more than two hours on any property within a residential zoning district or being lawfully used for residential purposes or on any public street adjacent to such properties. Such equipment and vehicles shall include, but are not limited to, the following: dump trucks, construction trailers, back hoes, front -end loaders, bobcats, well drilling equipment, farm trucks, combines, thrashers, tractors, tow trucks, truck - tractors, step vans, cube vans and the like. The prohibitions of this subdivision shall not apply to the following: a) Any equipment or vehicle described above being used by a public utility, governmental agency, construction company, moving company or similar company which is actually being used to service a residence not belonging to or occupied by the operator of the vehicle. 19 =' b) Any equipment or vehicle described above which is actually making a pickup or delivery at the location where it is parked. Parking for any period of time beyond the time reasonably necessary to make such a pickup or delivery and in excess of the two hour limit shall be unlawful. c An Q Any equipment or vehicle exceedin the above described length, height or weight limitations, but which is classified as recreation equipment as specified in Minnesota Statutes 168.011, Subdivision 25. d) Any equipment or vehicle described above which is parked or stored on property zoned residential and being lawfully used as a church, school, cemetery, golf course, park, playground or publicly owned structure provided the equipment or vehicle is used by said use in the conduct of its normal affairs. e) Any equipment or vehicle described above which is parked or stored on property which is zoned residential and the principal use is nonconforming within the meaning of Section 35 -111 of the City Ordinances, provided such parking or storage is not increased or expanded after the effective date of this ordinance. 13. The outside parking and/or storage on vacant property of usable or unusable vehicles, trailers, watercraft, snowmobiles, recreational vehicles,. all- terrain vehicles, construction vehicles and equipment, or similar vehicles, materials, supplies, equipment, ice fish houses PP skateboard ramps, play houses or other nonpermanent structures except as may be permitted by the Zoning or Sign Ordinances. 14. The outside parking and/or storage on occupied residentially used property of usable or nonusable vehicles, trailers, watercraft, snowmobiles, recreational vehicles, all terrain vehicles and similar vehicles, materials, supplies, equipment, ice fish houses, skateboard ramps, or other nonpermanent structures unless they comply with the following: a) Vehicles, trailers and watercraft may be parked or stored outside in any yard provided, however, if they are parked or stored in the front yard area, or a yard area abutting a public street, they must be parked or stored on an authorized parking or driveway area or a paved or graveled extension of an authorized parking or driveway area and be in compliance with Section 19 -1301 through 1305 of the City Ordinances. Authorized driveways and paved or graveled extensions thereof may not exceed 50% of the front yard or a yard area abutting a public street unless approved by the city council as part of a plan approval for an apartment complex pursuant to Section 35 -230 of the City Ordinances. 19 -3 i City Council Agenda Item No. 7b a MEMO To: Michael J. McCauley, City Manager From: Ronald A. Warren, Planning and Zoning Specialist 7 Subject: City Council Consideration Item - Planning Commission Application No. 98022 Date: November 4, 1998 On the November 9, 1998 City Council Agenda is Planning Commission Application No. 98022 submitted by Kathleen Godar requesting Special Use Permit approval to conduct a home occupation that will involve customer traffic at 7004 Oliver Avenue North. Attached for your review are copies of the Planning Commission Information Sheet for Planning Commission Application No. 98022 and also an area ma showing the location of the PP P g property under consideration, the Planning Commission minutes relating to the Commission's consideration of this matter and other supporting documents. • This matter was considered by the Planning Commission at their October 29, 1998 meeting and was recommended for approval. It is recommended that the City Council, following consideration of this matter, approve the application subject to the conditions recommended by the Planning Commission. • Application Filed on 10 -13 -98 City Council Action Should Be Taken By 12 -12 -98 (60 Days) Planning Commission Information Sheet Application No. 98022 Applicant: Kathleen Godar Location: 7004 Oliver Avenue North Request: Special Use Permit (Home Occupation) The applicant, Kathleen Godar, requests Special Use Permit approval to conduct a home occupation that will involve customer traffic at her home, 7004 Oliver Avenue North. The property in question is zoned R -1 and is the second house north of 70th Avenue North on the east side of Oliver Avenue North. It is bounded on the north, east and south by single family homes and on the west by Oliver Avenue North with single family homes and a portion of East Palmer Lake Park on the opposite side of that street. Home occupations that involve customer traffic at the home are considered special uses requiring the granting of a special use permit by the City Council, following review and public hearing by the Planning Commission. The applicant has submitted a letter (copy attached) describing the home occupation and explaining how it would operate. Ms. Godar is an independent sales representative for Colesce Couture, which sells lounaewear, daywear and intimate apparel. She characterizes the line of clothing as being compared to Victoria's Secret rather than Frederick's of Hollywood. She shows gowns and other items on the party plan, which involves going out to people's homes in a social setting to offer the company's line of clothing. The applicant also specializes in offering custom fit support bras, which require specialized fitting services, which she believes should not be done in a party atmosphere and is better conducted in privacy. She wishes to offer this customized fitting service in her home. It should be noted that we consider the line of business being conducted by the applicant to be a permitted home occupation, not requiring a special use permit, if it is done through the party sales and no customer traffic or over the counter sales of merchandise are being conducted in the home. Tupperware, cosmetic products and other types of merchandise are offered in this way. It is the fact that she proposes to have persons come to her home that she is required to obtain a special use permit, the same as we require such a permit for a beauty/barber service. In many respects this home occupation is like a dressmaking service as listed under the permitted home occupations category. However, even dressmaking services that include customer traffic in the home would be considered a special use. Ms. Godar, in her letter, explains how the business would be operated on an appointment only basis during specific hours during the week. She notes that she has a three bedroom home where she resides by herself and that one of the bedrooms is set u to do the fittings. She requests P g q 1029 -98 Page 1 hours of operations to be between 9:00 a.m. and 8: 30 p.m. Monday through Thursday, 9:00 to 5:00 p.m. on Friday and 9:00 a.m. until 3:00 p.m. on Saturdays. She notes that she has a two car garage and a driveway that holds six cars. The appointments would, however, be on a one at a time basis. She adds that she has a security system in her home, including a smoke detector which is located outside the bedroom. It is monitored and hooked up to the fire department. She points out that this is a low key operation with one person coming sporadically, by appointment, to her home. The staff agrees that this home occupation can be considered a low key operation and should, if operated properly, not cause problems within the neighborhood. Concern is expressed with respect to the fact that there should be no over the counter sale of merchandise as this is a specific prohibition in the regulations relating to home occupations. The applicant's requested home occupation appears to be a reasonable request. Attached for the Commission's review is a copy of the definitions for Home Occupation and Home Occupation, Special contained in Section 35 -900 of the City's Zoning Ordinance and also a copy of Section 35 -406 regarding requirements for Special Home Occupations. A public hearing has been scheduled and notices of the Planning Commission's consideration have been sent to neighboring property owners. All in all, we see the proposed home occupation as being very low key, if operated in the manner described by the applicant. Again, no over the counter sales of merchandise should be offered as part of this home occupation. The selling of products should be done in the manner described through party situations and off - premise contacts. Approval of this special use permit is recommended subject to at least the following conditions: 1. The special use permit is granted only for the customized fitting of intimate apparel at 7004 Oliver Avenue North in conjunction with off - premise sales of this merchandise. This use may not be altered or expanded in any way not comprehended by this application without first securing an amendment to this special use permit. 2. The special use permit is subject to all applicable codes, ordinances and regulations. Any violations thereof may be grounds for revocation. 3. All parking associated with the home occupation shall be off - street on improved space provided by the applicant. Vehicle parking on the property shall be in compliance with Section 19 -103, Subdivision 12 of the City Ordinances. 4. The hours of operation for the customized fittings shall be between the hours of 9:00 a.m. and 8:30 p.m. Monday through Thursday, '9 :00 a.m. to 5:00 p.m. on Friday and • 10 -29 -98 Page 2 9:00 a.m. to 3:00 p.m. on Saturday. 5. There is no over the counter sales of merchandise comprehended through the granting of this special use permit. Sales shall be conducted off - premises. 10 -29 -98 Paae 3 N 3W VC"3'd3 Do� N 3AY OVYW19 -3iYTTmmi9 it - HtH fit - �1 - -� _ _' O &ww 9 N[ H 3AY IOX►"l ( —' ._N. -- A `Q�-�- � I.. 0091 IRvING AA CIR. N. H 3AY NIAH, r u, vi Lc) DOD r N 3AY S3mv r 4 j AVE. N. 0091 H 3AV X" 1 ��--����� Doer - I j KBTFR" TL M 3AY NYDO, 1 _ `�—+ �- ,I- �� —}—� .. JIMME CREE'� 001)z N 3AY HYT" �� _ �" WAG Mill ti T Coll 0-4 - - T; — T - -------- -- N 3AV H3" � 0027 N 3AY WWI) � ,�0 N ��� % z ` _�`` ' X 0ou N Dotz m3yo X N 3AY ON ? ?Ssrtw H 3AY 11 .......... IN 3AV NvOlv3"s N< H 3AY SYMOM "V DoLl N 3AY Hiiii 00— Mgt t + Z N )CS ow N 3AY UhMMIA FREEWAY H 3AY �O"MYA R VE DOTI 3A 3( y �14 12 IP — N 3AY Mi TO: BROOKLYN CENTER PLANNING COMMISSION RE: SPECIAL HOME OCCUPATION FROM: KATHY GODAR 7004 Oliver Avenue North Phone: 612- 566 -6301 Brooklyn Center, MN 55430 Fax: 612 -566 -3666 I am an independent sales representative for Colesce Couture, which sells Loungewear, Daywear, and Intimate Apparel. It is a very "classy" line with very well made gowns. It could be compared to Victoria Secret (NOT Fredericks of Hollywood!) The company's home office is in Dallas, Texas, and has been in existence for twenty -eight years. I show my gowns on the party plan, that is, I go into peoples' homes and do "parties" (much like Tupperwear parties.) However, the company offers a line of custom -fit support bras, which very few sales representatives get involved with selling (due to the initial investment of buying the bras.) I have purchased a Bra Kit and am very interested in doing this part of the business. There is a tremendous need for women to be properly fit in a bra. The majority of women are wearing the wrong size bra because this service is rarely offered in department stories. • The following are reasons I would like to offer this service in my home: -There are 250 sizes in each custom fit -bra -I am 50 years old, with a bad back, seeing a chiropractor constantly, and cannot physically carry my gowns plus bras to someone's home. -I definitely do not feel bra fitting should be done in a "party" atmosphere. I believe it is a very intimate process and should be offered in privacy. What I do is to go into someone's home, show my gowns at the party, then show a custom -fit bra and tell anyone if they are interested in a bra fitting to make an appointment with me and we can fit them in the privacy of my home. I will only have one person in my home at a time, and a fitting takes about thirty minutes. I live in a three bedroom home, residing there by myself. One of the bedrooms is set up to do bra fittings. The hours of operation will vary, but would probably fall between 9:00am and 8:30 PM Monday through Thursday, 9:00am to 5:00 on Friday, and on Saturdays 9:00am until 3:00pm. (probably every other Saturday.) I will not work on Sundays. I have a two car garage and only one vehicle and the driveway holds six cars. However, I will only be having one person over at a time. I will be the only one involved in doing the fittings. I have attended training seminars in Vegas and am a certified bra fitter. I have done an internship here in the cities with a lady who has sold the bras for twenty -eight years. I am very concerned with healthy breast issues and try to educate my customers as to some do's and don'ts, I do not just try to tit the bra. I have a security system in my home, including a smoke detector right outside the bedroom which is monitored and hooked to the fire department. I feel there is no problem in that respect. I would like to put a sign in my yard following the cities specifications which would read: BETTER BRAS By Appointment Only �_ 61.. 566 -6 01 This will be a very low key operation. Just one person sporadically, by appointment, being fitted for a bra in the privacy of my home. I feel it is a great service to our community and do not believe it will create an problems in the neighborhood. YP � I hope you will approve my application so I can offer this service to the many women who need it. I will cooperate with nth any city ordinances or other restrictions I must abide by. Thank you for your time and consideration in this matter. Cz Kathy Godar Enclosures Section 35-40-5.. ADDITIONAL REQUIREMENTS FOR HOME OCCUPATIONS: le I. No home occupation shall produce light, glare, noise, odor or vibration perceptible beyond the boundaries of the lot. 2. No home occupation shall involve the use of any accessory structures or installations. 3. No home occupation shall involve the use of equipment other than that customarily found in a residential dwelling unit. 4. No home occupation shall involve the retail sale of merchandise produced off the lot. 5. No home occupation shall involve the employment on the lot of persons who are not members of the family residing on the lot. 6. No home occupation providing day care shall serve more than twelve (12) children in the R1 district, five (5) children in the R2 and R3 districts, or five (5) children, including children of the family occupying a dwelling unit in other residential districts (R4 through R7). This subsection is not intended to supersede any lease arrangements which may be more restrictive. 7. No home occupation shall cause traffic congestion on the lot containing the home occupation or on the streets adjacent thereto. S. No automobile parking related to the home occupation shall be permitted on the street. Section') 5-406.. ADDITIONAL REQUIRENSENTS FOR SPECLALL, HOME OCCUPATIONS: 1. All special home occupations shall require approval of a special use permit pursuant to Section 3; -220 of the Brooklyn Center Zoning Ordinance. 2. No special home occupation shall use more than one accessory structure or installation and such structure or installation must be a permitted use under Section 35 -310 and Section 35- 311 of the Brooklyn Center Zoning Ordinance. 3. A special home occupation may use equipment not customarily found in a residential dwelling unit. 4. No special 'home occupation shall employ, at any one time, more than one person who is not a member of the family occupying the dwelling unit. No special home occupation may include the teaching of more than ten (10) students at one time who are not members of the family occupying the dwelling unit. 6. No special home occupation shall cause traffic congestion on the lot containing the special home occupation or on the streets adjacent thereto. 7. No automobile parking related to the special home occupation shall be P ermitted on the street provided, however, that upon a finding that the special home occupation is not feasible without on street parking, the City Council may authorize parking on the street based upon a consideration of Section 35 -220.2 and of the following: a. The amount of the applicant's street frontage. b. The rights of adjacent residents to park on the street. C. Preservation of the residential character of the neighborhood. 8. No special home occupation shall produce light, glare, noise, odor or vibration perceptible beyond the boundaries of the lot. 9. No special home occupation shall include the retail sale of merchandise produced off the lot. Section 3> -410. SPECIAL REQUIREMENTS N R3, R4, R6, R6 AND R7 DISTRICTS. I. All storage shall be contained wholly within an enclosed building. 2. The incineration of waste matter shall be conducted in approved equipment located within the building wherein the permitted use is conducted. Equipment shall be considered "approved" when approved by the zoning official and sanitarian. 3. Where a proposed R3, R4, RS, R6, or R7 development abuts an R1 or R2 district other than at a public street line, buffer provisions shall be established. There shall be provided a protective strip not less than 25 feet wide in the case of R6 and R7 uses and not less than 15 feet wide in the case of R3, R4 and R6 uses. The protective strip shall contain an opaque fence or a Council approved substitute. The protective strip shall be landscaped and not be used for parking, garages, driveways. off -street loading or storage. The screenina device design must be approved by the City Council as being in harmony with the residential neighborhood and providing sufficient screening of the multiple dwelling area. A proposed fence shall be no less than four feet in height and shall not extend within 10 feet of any street right -of -way. V 4. No building permit shall be issued until a site and parking layout has been approved as provided in Section 35-230. No parking shall be permitted within 15 feet of the street right - of -way, and the 15 foot area shall be maintained as a green strip. 35 -56 t croup Ua%, U.1re f-acluty - A tacilay iicens, cu oy the Nlinnesota Department of Public Weltare to provide child care for six or more children at one time. This term also includes, but is not limited to, facilities having programs for children known as nursery schools, day nurseries, child care centers, play groups, day care centers, cooperative day care centers and Head Start programs. j Home Occupation - Subject to the further limitations of Section 35 -405 of the Zoning Ordinance, a home occupation is any gainful occupation or profession, carried on within a dwelling unit, by a family member residing within a dwelling unit, which is clearly incidental and secondary to the residential use of the dwelling unit and the lot upon which it is constructed, including, without limitation, dressmaking, secretarial services, professional offices, answering services, individual music or art instruction, individual hobby crafts, and day care and similar activities. 4 Home Occupation. Special. - Subject to the further limitations of Section 35 -406 hereof, and subject to approval by the City Council, a special home occupation is any gainful occupation or profession carried on within a dwelling unit or any permitted accessory buildings or installations on a lot, by a family member residing within the dwelling unit, which is clearly incidental and secondary to the residential use of the dwelling unit, the accessory structures, and the lot upon which it is constructed, including, without limitation, barber and beauty services, shoe repair, photography studios, group lessons, saw sharpening, motor driven appliances and small engine repair, and similar activities. Hospital - An institution licensed by the state Department of Health primarily engaged in providing, by or under the supervision of physicians, to ' inpatients (A) diagnostic services and therapeutic services for medical diagnosis, treatment, and care of injured, disabled or sick persons, or (B) rehabilitation services for the rehabilitation of injured, disabled, or sick persons. Hotel - A building which provides a common entrance, lobby, and stairways, and in which lodging is commonly offered with or without meals for periods of less than a week. Loading Space - A space accessible from a street, alley, or way in a building or a lot for the use of motor vehicles while loading or unloading merchandise or materials. Lot - A lot is a parcel or portion of land in a subdivision or plat of land, separated from other parcels or portions by description, as on a subdivision or record of survey map, or by metes and bounds, for the purpose of sale or lease or separate use thereof. Lot Area - The area of a horizontal plane bounded by the front, side and rear lot lines. Lot. Corner - A lot at the junction of and abutting on two or more intersecting streets. Lot. Depth -The mean horizontal distance between the front lot line and the rear lot line of a lot measured within the lot boundaries. Lot. Interior - A lot other than a corner lot. Lot Line - A property boundary line of any lot held in a single or separate ownership. Lot Line. Front - That boundary of a lot which is along an existing or dedicated street. In the case of corner lots, the zoning official shall determine, but only for the purpose of this ordinance, which lot line or lines shall be considered front lot lines; such determination shall not be construed as stating in which direction buildings shall face. In general, the narrower of the lines abutting streets shall be the City of Brooklyn Center 35 -83 City Ordinance • MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR MEETING OCTOBER 29, 1998 CALL TO ORDER The Planning Commission met in a study session called to order by Chair Willson at 7:30 p.m. ROLL CALL Chair Tim Willson, Commissioners Graydon Boeck, Rex Newman, Sean Rahn, and Dianne Reem were present. Also present were Secretary to the Planning Commission/Planning and Zoning Specialist Ronald Warren, Planning Commission Recording Secretary Arlene Bergfalk. Councilmember Kathleen Carmody attended a portion of the meeting. Commissioners Stephen Erdmann and Ed Nelson were excused. APPROVAL OF MINUTES - SEPTEMBER 24. 1998 There was a motion by Commissioner Reem, seconded by Commissioner Rahn, to approve the minutes of the September 24, 1998 meeting as submitted. The motion passed unanimously with Commissioners Boeck and Newman abstaining. The minutes of the October 15, 1998 meeting were noted with the correction that Commissioner Stephen Erdmann's absence was excused. A quorum to conduct business was not present at that meeting, therefore, the minutes were considered as informational only. CHAIR'S EXPLANATION Chair Willson explained the Planning Commission's role as an advisory body. One of the Commission's functions is to hold public hearings. In the matters concerned in these hearings, the Commission makes recommendations to the City Council. The City Council makes all final decisions in these matters. JOHN CRAIG - APPLICATTnN N 98020 (SPECIAL USE PER MIT FOR HOME OCCUPATION INVOLVING USE OF ACCESSORY BUILDING Chair Willson introduced Application No. 98020, a request for special use permit approval, submitted by John Craig, to conduct a home occupation to supply vending machines from his residence at 6921 Logan Avenue North. This application was filed on 08 -31 -98 requiring City Council action by 10- 30 -98; however, the applicant waived the 60 day statutory limitation. Mr. Warren presented the staff report and described the location of the Craig residence in the R -1 zone. The applicant uses the garage (accessory structure) to store soft drink inventory, this operation is classified as a "special home occupation" and according to zoning ordinances requires a special 10 -29 -98 1 use permit. The home occupation is a family operation and has a current license /certification from the Minnesota Department of Agriculture. (See attached Planning Commission Application • Information Sheet dated 10 -15 and 10- 29 -98.) Mr. Warren defined home occupations and described the limitations of special home occupations under Sections 35 -405 and 35 -406 and Section 19 -103 related to parking and storage of vehicles. Based on the information provided by the applicant regarding the vending machine supply operations and staff review of the application, Mr. Warren recommended approval of the special use permit subject to 5 conditions outlined in the staff report. A public hearing on the application, properly noticed, is scheduled at this meeting. Chair Willson called for questions from the Commissioners. Commissioner Boeck requested clarification regarding the definition of "accessory structure" as it relates to garages. Mr. Warren explained that any garage, including a tuck -under garage, is considered an accessory structure in this circumstance. Noting this home occupation (business) apparently has been operating for some time, Commissioner Reem inquired whether a status change prompted Planning Commission review and consideration at this time. Mr. Warren explained that during an inspection on another matter by the Code Enforcement Officer at the residence, the inventory of soda in the applicant's garage was questioned. A subsequent investigation culminated in the application for a special use permit to continue the business, which heretofore operated without the required special use permit. Reem also inquired whether City approval coincides with State licensing. Mr. Warren stated that only the State license /certification is issued/renewed annually. PUBLIC HEARINQ - APPLICATION NO. 98020 There was a motion by Commissioner Boeck, seconded by Commissioner Reem, to open the public hearing at 7:45 p.m. The motion passed unanimously. Chair Willson called for comments from the public. Mr. John Craig, the applicant, stated he was available to answer questions. Chair Willson requested that Mr. Craig make certain he possess copies of the applicable City ordinances regarding this special home occupation to ensure knowledge of the regulations/limitations under which his business must operate. Mr. Warren indicated those documents will be provided to Mr. Craig. Commissioner Boeck requested clarification regarding the use of trucks to transport the products to the residence for storage and subsequent distribution. Commissioner Reem inquired about the frequency of deliveries, size of equipment, and overnight parking of trucks. Mr. Craig explained that he and his two sons operate the business, own a truck, make their own • purchases of product, and deliver product to the residence. There are no large commercial Pepsi or 10 -29 -98 2 Coke vehicles making pallet deliveries into the area. In addition, two delivery vans are used to distribute product to various vending machine operations on a daily basis. These vehicles are parked overnight at the residence. During discussion, it was discovered the truck is 24' long and, therefore, exceeds the size limitations under Section 19 -103 for overnight parking in the R -1 zone. Mr. Craig was instructed to cease parking of the vehicle at the residence. Mr. Craig stated the truck will be parked over night at another location. During discussion, it was also discovered that one of Mr. Craig's sons has moved from the residence, therefore, he is considered a non - resident employee, the maximum allowed for home occupations under Section 35 -406. Chair Willson called for other comments from the public. Ms. Kathleen Carmody, 7024 Knox Avenue North, stated the large truck creates a safety concern especially for neighborhood children. She requested that prohibition of overnight parking of that vehicle be strictly enforced. No other individuals from the public appeared before the Commission during the public hearing on Application No. 98020. • CLOSE PUBLIC HEARING There was a motion by Commissioner Boeck, seconded by Commissioner Newman, to close the public hearing on Application No. 98020 at 7:55 p.m. The motion passed unanimously. ACTION TO RECOMMEND APPROVAL OF APPLICATION NO. 98020 - JOHN CRAIG There was a motion by Commissioner Boeck, seconded by Commissioner Rahn, to recommend to the Council that it approve Application No. 98020, for a special use permit to conduct a special home occupation requested by John Craig, 6921 Logan Avenue North, subject to the following conditions: 1. The special use permit is granted only for a vending machine supply business involving the storage of soft drinks in the accessory building with a non - resident employee as allowed by Section 35 -406. This use may not be altered or expanded in any way not comprehended by this application without first securing an amendment to this special use permit. 2. The special use permit is subject to all applicable codes, ordinances and regulations. Any violation thereof may be grounds for revocation. 3. All parking associate with the home occupation shall be off street on improved space provided by the applicant. Vehicle parking on the property shall be in compliance with Section 19 -103, Subdivision 12 of the city ordinances. 10 -29 -98 3 4. The hours of operation shall be between the hours of 8 a.m. and 5 p.m., Monday through Friday. Customer service shall not be provided on the property. 5. A current copy of the applicant's license /certification from the Minnesota Department of Agriculture shall be kept on file with the city. Voting in favor: Chair Willson, Commissioners Boeck, Newman, Rahn, and Reem. The motion passed unanimously. The Council will consider the recommendation at its Monday, November 9, 1998 meeting. The applicant must be present. Major changes to the application as reviewed by the Commissioners will require that the application be returned to the Commission for reconsideration. APPLICATION NO. 98022 - KATHLEEN GODAR- SPECIAL USE PERMIT TO CONDUCT HOME OCCUPATION INVOLVING CUSTOMER TRAFFIC Chair Willson introduced Application No. 98022, a request for a special use permit to conduct a home occupation involving customer traffic, submitted by Kathleen Godar, 7004 Oliver Avenue North. This application was filed on 10 -13 -98 and Council action is required by 12 -12 -98 (60 days). Mr. Warren presented the staff report and described the location of the Godar residence at 7004 Oliver Avenue North in the R -1 zone. This home occupation involves customer traffic at the residence therefore requires a special use permit as outlined under Sections 35 -900 and 35 -406 of the zoning ordinances. (See attached Planning Commission Information Sheet dated 10- 29 -98.) • The applicant, an independent sales representative for Colesce Couture, wishes to offer a custom fitting service for support brassieres on a private basis in her home. Ms. Godar's application letter describes a low key operation, involving one person at a time on an appointment basis, conducted during normal business hours in her home. This fitting service in her home expands the current allowable home occupation of selected apparel through party sales. Mr. Warren pointed out that the existing home occupation of the applicant involving parry sales of selected apparel is not affected or part of this application since it is a permitted home occupation. The proposal which comprehends customer traffic at the residence requires the special use permit. Mr. Warren pointed out, however, that over the counter sales of merchandise is not allowed. Product sales must be through party sale of products and must continue through off - premises /parry plans. Based on staff review, Mr. Warren recommended approval of the special use permit subject to certain conditions outlined in the staff report. A public hearing properly noticed is scheduled at this meeting. Chair Willson called for questions from the Commissioners. Commissioner Newman inquired whether the sign proposed by the applicant is acceptable and Mr. Warren replied that it is appropriate under the sign regulations and will require a sign permit before it can be erected. 10 -29 -98 4 Commissioners Rahn and Boeck questioned whether traffic flow and parking in the area would be affected. It was noted that parking is not permitted on 70th Avenue North and appropriate signage is posted. Ms. Godar's application indicates there is sufficient customer parking on the property, therefore there would be no need for street parking. At Commissioner Boeck's request, Mr. Warren defined "over the counter sales" as being the sale of merchandise produced off - premises. This type of selling is interpreted differently than one -time garage sales, craft sales, etc. which are allowed. Mr. Warren indicated he would investigate a "consignment sale" sign/operation that apparently exists in Commissioner Boeck's neighborhood. PUBLIC HEARING - APPLICATION NO. 98 -022 There was a motion by Commissioner Boeck, seconded by Commissioner Reem, to open the public hearing on Application No. 98022 at 8:18 p.m. The motion passed unanimously. Chair Willson called for comments from the public. Chair Willson reported he received a telephone call from a resident who lives on 70th Avenue North who stated her support and is comfortable with the application. Ms. Kathleen Godar, the applicant, stated she would answer questions. Commissioner Newman inquired about the proposed signage and plans for other advertising such as newspapers. Ms. Godar stated the sign will state "by appointment only" and include her telephone number. She indicated the company allows advertising including in newspapers. She also stressed that she does not carry any inventory in her home, therefore, no over the counter sales are made. The party sales business is conducted away from her home where orders are taken, paid for, and subsequently delivered at some time in the future when the fulfilled orders are received by her. Commissioner Reem inquired about how many customers might be anticipated during a week. Ms. Godar stated that over the past two months, she has had approximately 10 customers. No other individuals from the public appeared before the Planning Commission during the public hearing on Application No. 98022. CLOSE PUBLIC HEARING - APPLICATION NO. 98022 There was a motion by Commissioner Newman, seconded by Commissioner Rahn, to close the public hearing at 8:22 p.m. The motion passed unanimously. ACTION TO RECOMMEND APPROVAL OF APPLICATION NO. 98022 - KATHLEEN GODAR There was a motion by Commissioner Boeck, seconded by Commissioner Reem, to recommend to the Council that it approve application No. 98022, a request submitted by Kathleen Godar, for a home occupation special use permit involving customer traffic at 7004 Oliver Avenue North, subject to the following conditions: 1. The special use permit is granted only for the customized fitting of intimate apparel at 7004 Oliver Avenue North in conjunction with off - premise sales of this 10 -29 -98 5 9 I merchandise. This use may not be altered or expanded in any way not comprehended by this application without first securing an amendment to this special use permit. 2. The special use permit is subject to all applicable codes, ordinances and regulations. Any violations thereof may be grounds for revocation. 3. All parking associated with the home occupation shall be off -street on improved space provided by the applicant. Vehicle parking on the property shall be in compliance with Section 19 -103, Subdivision 12 of the City Ordinances. 4. The hours of operation for the customized fittings shall be between the hours of 9 a.m. and 8:30 p.m., Monday through Thursday; 9 a.m. to 5 p.m., Friday; and 9 a.m. to 3 p.m., Saturday. 5. There is no over the counter sales of merchandise comprehended through the granting of this special use permit. Sales shall be conducted off - premises. Voting in favor: Chair Willson, Commissioners Boeck, Newman, Rahn, and Reem. The motion aased unanimously. P The Council will consider the recommendation at its Monday, November 9, 1998 meeting. The applicant must be present. Major changes to the application as reviewed by the Commissioners will require that the application be returned to the Commission for reconsideration. FUTURE MEETING DATES The next meeting of the Planning Commission is scheduled for Thursday, November 12, 1998. Mr. Warren reviewed agenda items for that meeting. Mr. Warren alerted the Commissioners that based on pending applications, another meeting of the Commission may be scheduled (possibly December 10) to take timely action on those matters. A joint meeting with the Council is scheduled for Thursday, December 17, 1998. ADJOURNMENT There was a motion by Commissioner Boeck, seconded by Commissioner Reem, to adjourn the Planning Commission meeting. The motion passed unanimously. The meeting adjourned at 8:35 P.m. Chair Recorded and transcribed by: Arlene Bergfalk TimeSaver Off Site Secretarial 10 -29 -98 6 City Council Agenda Item No. 8a City of Brooklyn Center A great place to start. A great place to stay. I • To: Mayor Kragness and o cil Members Carmody, Hilstrom, Lasman and Peppe From: Michael J. McCauley City Manager f Date: November 5. 1998 Re: 69th & Brooklyn Boulevard In June of 1998, the Economic Development Authority entered into a contract with Boulevard Shoppes, LLC (David Nelson, President). The contract outlines the terms under which the EDA would make Tax Increment Financing assistance available to Boulevard Shoppes, LLC. This contract was the culmination of a solicitation for development proposals that was undertaken in 1995. The initial 1995 agreement to allow Mr. Nelson to pursue potential redevelopment proposals for EDA consideration was extended. Mr. Nelson has been involved in two previous redevelopment projects on Brooklyn Boulevard: the Edina Realty office building and a 6,000 square foot office building at 56th and Brooklyn Boulevard. The June, 1998 Contract for Private Redevelopment is contingent on the redeveloper being able to do several things, including: - acquiring all the property necessary for the proposed redevelopment - securing financing - presenting acceptable construction plans. There are two ways under the contract that the EDA would be involved in acquiring property. The EDA has agreed to acquire properties that the redeveloper cannot acquire through negotiation or offers if, and only if all of the following occur: - redeveloper requests the EDA to use eminent domain - redeveloper submits and receives plan approval - redeveloper has submitted proof of financing for the project - redeveloper deposits sufficient funds to cover all of the EDA's costs of acquisition through eminent domain. Boulevard Shoppes, LLC has not requested that the EDA commence eminent domain proceedings at this time. If the redeveloper requested that the EDA commence eminent domain proceedings and complied with all of the prerequisites for the EDA to commence such proceedings, the EDA would have the option to use the quick take provisions of Minnesota law. Under a quick take, the EDA • could require possession 90 days after notice to the property owner. 6301 Shingle Creek Pkwy, • g y, Brooklyn Center, MV 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 • The other way the EDA would become involved in acquisition is pursuant to Section 3.1 (a) of the contract which provides that the EDA may, at its sole discretion, assume any option or purchase agreement negotiated by the Redeveloper and acquire the property under the terms of such agreement. If the EDA were to acquire property under that provision, it would require an executed purchase agreement or option between the redeveloper and the owner. That is, this provision would not authorize the EDA to negotiate its own contract for acquisition of property. If the EDA were to interject itself into such negotiations and enter into contracts or make representations of future results, it may be construed as interfering with the redevelopers's rights under the contract. The premise under the contract is that the redeveloper will generate sufficient tax increment to cover most of cost of acquisition. Properties bordering Brooklyn Boulevard must be acquired in order to have sufficient right of way for the widening of Brooklyn Boulevard. The EDA has acquired some of those parcels. Other parcels along Brooklyn Boulevard between 69th and 70th would still be required even if the redevelopment did not go forward. The parcels on June Avenue would be needed for any large scale redevelopment of that area. Smaller redevelopment projects could go forward by taking only one side of June avenue. The contract with Boulevard Shoppes, LLC provides that either party may terminate the agreement if closing on the entire redevelopment property does not occur by December 31, 1998. Termination is accomplished by 10 days written notification of intent to terminate. Additionally, the contract provides that the minimum improvements must be in place by December 31, 1999. L REVIEW OF PROGRESS • Mr. Hoffman met with the residential owners on October 1 st. Attached is a memorandum from Mr. Hoffman outlining the meeting and subsequent actions. Attached to Mr. Hoffman's memorandum is a matrix showing the status of all of the parcels in the proposed redevelopment project area. Attached also is a copy of an offer from Boulevard Shoppes, LLC that is representative of the contingent offers that have been made. As indicated in the matrix, Boulevard Shoppes, LLC has closed and acquired title to the property at 6938 June. Ms. Chambers also called several of the residents during the week of October 26th to review their concerns. Among the comments received by Ms. Chambers were: - One resident was unhappy with the uncertainty and had received offer with a closing date of February 2nd and wanted December 2nd closing date. - One resident would not talk with redeveloper any more and did not like treatment by redeveloper. This couple indicated they would wait for the City to condemn their property rather than deal with redeveloper. - One resident expressed frustration with the process, the offer, the City and redeveloper. - One resident that was a renter was concerned because private acquisition did not result in relocation assistance and her rent was $425 per month. • II CODE ENFORCEMENT Orders were issued on 3 June Avenue properties on September 1 st. The orders related to brush piles, inoperable vehicles and storage. On one property there were orders related to the facia that should be deferred pending the resolution of the redevelopment. III. FUNDING The EDA has expended over $300,000 acquiring properties already. The estimated cost of the EDA's share of acquiring the remaining right of way needed for the Brooklyn Boulevard widening project is $820,000 (this estimate could well prove to be low). Some of the costs of right of way acquisition along Brooklyn Boulevard are anticipated to be reimbursed by Hennepin County on a pro rata basis. The final costs estimates are not complete for Brooklyn Boulevard and the City will have to participate in its pro rata share of the County's costs for acquiring right of way south of 69th. At current estimates, approximately $300,000 to $400,000 of TIF bond proceeds might be available after payment of Brooklyn Boulevard anticipated expenses budgeted for TIF including right of way, engineering, under grounding of utilities, and street scape enhancements ( Local State Aid has been identified for use in the Brooklyn Boulevard project. The cost estimates are still preliminary and there is little breathing room in the estimates.) The terms of the redevelopment agreement contemplate a $600,000 direct write down of acquisition costs to the redeveloper less the costs incurred by the EDA for acquisition and demolition of the properties already acquired by the EDA. The outstanding offers on residential properties not acquired or optioned by the redeveloper would . total approximately $387,000. This would not include the HUD property under foreclosure with an assessed value of $70,800 (may be available for less from HUD) or houses optioned by the redeveloper. When Mr. Hoffman requested written offers to sell, he received 2 offers that were both higher than the offers made to them by the redeveloper. One offer was to sell to the EDA for $105,000 (assessed value of $76,600 and redeveloper offer of $98,500). The other offer was to sell to the EDA for $104,000 (assessed value of $55,000 and redeveloper offer of $94,000). III. OPTIONS The EDA's options exist only withing the context of the redevelopment agreement with Boulevard Shoppes, LLC. The EDA may not unilaterally change the agreement. The EDA may propose changes in the agreement to the redeveloper. Additionally, if the EDA or the redeveloper cancels the agreement because the redeveloper does not meet the acquisition goals either by itself or in combination with a request for the EDA to exercise eminent domain, the EDA would have options in addressing the uncertainty hanging over the residences along June Avenue. During the agreement, the options available to the EDA would be: 1. acquire properties for which the redeveloper has a signed option or purchase agreement (the risk associated with such acquisitions would be that the EDA would own the property without a redevelopment if the redeveloper did not go forward) • 2. offer to acquire residential properties by amending the redevelopment agreement with the redeveloper's consent to such amendment (the risk here would be the same as in 1. and would likely shift the risk of acquisition costs above the redeveloper's offer to the EDA, whereas in 1. any costs, even if they exceed offers, associated with eminent domain are chargeable against the EDA's write down) 3. defer any actions until December 31st, or the redeveloper completes acquisition, whichever occurs first. In the event either the EDA or redeveloper cancels the agreement, the options facing the EDA would include (assuming funds were available): 1. acquire residences through eminent domain 2. acquire residences only through offers from owners 3. determine that there is no intention to acquire the residences in the absence of a redevelopment proposal 4. determine there is no foreseeable future interest in acquiring residences or entertaining or seeking new redevelopment proposals that would impact the residences J. take no action. i • MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Brad Hoffman, Community Development Director DATE: November 4, 1998 SUBJECT: October Meeting with 69th and June Homeowners On October 1, 1998, I met with a group of homeowners who reside within the proposed redevelopment area (69th and Brooklyn Boulevard), and whose homes would potentially be subject to acquisition. The purpose of the meeting was to listen to the concerns and problems the homeowners were experiencing with the partnership as represented by Dave Nelson. Attending the meeting were Julie Berg, Annette Bannister, a renter, Darlene Gustafson and her daughter Darnell, Roger Patterson, and Dan and Caroline Holmes. The concerns expressed by a number of the residents included: frustration with the developer failing to return calls, the inadequacy of the offers given to them, closing dates along with contingent purchase agreements. In short the owners were frustrated by the lack of specific direction for the project until the end of December. Some of them expressed concerns with finding a home during the winter months, some had health related issues but all wanted a specific answer as to if and when the purchase of their respective homes would occur. Annette Bannister had questions about relocation benefits to her as a renter. Roger Patterson stated he had a purchase agreement with the partners and the meeting was not relevant to him and he left. I reviewed the contract with Boulevard Shoppes Ltd. noting that the partnership with whom we have a contract has until December 31, 1998, to perform certain tasks primary of which is to bring a financing package to the EDA proving they can do the project. At that time, the partnership can ask the EDA to acquire all remaining properties within the project area not controlled by them. I did indicate to them that if they were interested in having the EDA acquire their property to write a letter to me with an offer to sell their home that included all perceived relocation benefits. I also explained the condemnation process and the timing of the process. As a practical matter, should the EDA condemn the property we would probably have the homes in April or May of 1999. For those who wanted to sell their homes now and would write the letter I would try to identify a revenue source to accomplish this. This assumes the EDA approval of the purchase as well as the partners since they have certain contractual rights in this matter. I received two offer letters. One from Dan and Caroline Holmes (6932 June Avenue North) in the amount of $105,000 and the second from Roger and Darlene Gustafson (6935 June Avenue North) • in the amount of $104,000. I was unable to identify a funding source that would not be speculative in nature on the EDA's part. CDBG funds are committed, EDA and T1F bond funds are also subject • Michael J. McCauley November 4, 1998 Page 2 to a number of other projects. Around the 12th of October, I informed the two (2) parties that I was not able to find or recommend funding for the purchase of those homes at this time. I spoke with Darnell Gustafson and she indicated her preference to wait for condemnation and a late spring acquisition. I spoke with Dan Holmes and agreed to speak with Peggy Johnson of Rottlund Homes to do what I could to facilitate their purchase of a new home under these conditions. I have not spoken directly with Peggy Johnson but have left her a detailed message on the status of the project and the likelihood of the acquisition of the Holmes property. Apparently there was some confusion about this matter being on the Council agenda on the 26th. When discussing a tentative time line for when this matter might be before the Council, I indicated the soonest it could be would be the 26th if I could identify a funding source for the acquisition. I believe I indicated to them that I would contact them when it would be before the Council. • REVISED Property Address Owner Assessed Market Value Partnership Offer Comments /Status 6945 June Ave N EDA N/A N/A EDA owned 6935 June Ave N R C Gustafson ETAL $55,000 $94,000 Unresolved 6927 June Ave N Lane & Ernst N/A N/A Partnership has an option to purchase unassigned Lane & Ernst N/A NIA Partnership has an option to purchase unassigned Ernst, Lane & Ernst N/A N/A Partnership has an option to purchase 4300 69th Ave N Ernst, Lane & Ernst N/A N/A Partnership has an option to purchase 6900 Brooklyn Blvd Ernst, Lane & Ernst N/A N/A Partnership has an option to purchase unassigned Ernst, Lane & Ernst N/A N/A Partnership has an option to purchase 6912 Brooklyn Blvd Lane & Ernst N/A N/A Partnership has an option to purchase 6938 Brooklyn Blvd F G Moen $97,000 $150,000 Signed purchase agreement 6944 Brooklyn Blvd EDA N/A N/A EDA owned 6950 Brooklyn Blvd EDA NIA N/A EDA owned 6956 Brooklyn Blvd EDA N/A N/A EDA owned 4315 70th Ave N Dennis & Carole Hansen $226,700 Verbal offer /unresolved 4307 70th Ave N Duoos Bros Amer Legion $124,300 Discussion ongoing 4208 69th Ave N City of Brooklyn Center N/A N/A City owned 4212 69th Ave N City of Brooklyn Center N/A NIA City owned 6912 June Ave N Rosella Lane $73,300 $97,700 Purchase Agreement 6918 June Ave N Thomas Somers $70,800 N/A HUD Repossessed 6932 June Ave N Daniel Holmes $76,600 $97,700 Unresolved 6938 June Ave N Roger Patterson ETAL $74,800 $98,500 Purchased 6944 June Ave N Julie Marie Berg $65,600 $98,000 Unresolved I eu cry ir- i -!if Ir1esc:a Ass ac:zi: :Cn cl REALTORSZ, which disclaims any liability ansing out of use or misuse of this form. t. Date Q70,rT lgpt? 1998 2. Page 1 of r O Pa: 3. RECEIVED OF Boulevard Sh000es. LLC. S 5. the sum of 17'TV7 urlvTnRF V0/00• 5500.00* • 0. by CHECK -CASH -NOTE as earnest money to 6e deposited upon _ (circle ony __ acceptance of Purchase Agreement by aft parties, on 7. before the next business day after acceptance, In a trust account of the title insurance company If Purchase ttcuwgbsokas but to be returned to Buy - Agreement Is not accepted by Seller. Said earnest money is part payment for the purchase of the property located at: 9. Street Address: r 0 n , 'rTT \r r a v O• 7`1 10. City of BrOoklvn Center , County of Hennepin State of Minnesota, 11. Legally described as: rn+- 14 PT.x t . T,an;:±s grooklvn Center Addition 12. oTn Y 7_11a_91_11_0051 i3. including the following property, if any, owned by Seiler and used and located on said property: gardan bulbs, plants, shrubs, a: 14. trees; storm sash, stonrt• doors, screens and awnings; window shades, blinds, traverse and curtain and drapery. rods; attached lighti; 15. fixtures and bulbs: plumbing fixtures, water heater, heating plants (with any bumers, tanks, stokers and other equipment used 16. connection therewith), built -in air conditioning equipment, electronic air filter, Water Softener OWNED f RENTED i NONE, built -in humidir 17• and dehumidifier, liquid (circle one) q gas tank and controls (if the property of Seller), sump pump; attached television antenna, cable TV jac: 13. and wiring; BUILT -INS; dishwashers, garbage disposals, trash compactors, ovens, cook . top stoves, microwave ovens, hood far, 19. intercoms: ATTACHED: carpeting; mirrors; garage door openers and all controls; smoke detectors; fireplace screens, doors ar 20. heatilators; AND: the following Personal property: 21. 22. 23. all of which property Seller has this day agreed to sell to Buyer for sum of: (S p n n n n + 24. Nt>a Fight Thousand 1 /00* 25. which Buyer agrees to pay in the following manner. Dollars 25. and 5 q 3_ g s g cash on 1 ?-2-98 the date of closing. and 2 the balance of S n by financing in accordance with the attached addendum: 23. rCircte ail that applyl °• This Purchase Agreement IS / M subject to a contingency addendum. (If answer is IS, see attached addendum.) _ (circle one) _ 30. This Purchase Agreement IS / IS NOT subject to cancellation of a previously written Purchase Agreement dated _ (urea one) _ 31. This Purchase Agreement !S; IS NOT subject to _ (c=e one) _ I an Inspection Addendum. (If answer is IS, sr_ attached addendum.) 32. Attached are other addenda which are made a part of this Purchase Agreement. (Enter page or pages on line 2) 33. DEED /MARKETABLE TITLE: Upon performance by Buyer, Seller shall deliver a General Warranty Deed 3 4. jcined in by spouse, if any, conveying marketable title, subject to: 35. (A) Building and zoning laws, ordinance, state and federal regulations: (8) Restrictions relating to use or improvement of the 30. effective forfeiture provisions; (C) Reservation of any mineral rights by the State of Minnesota; 0 drains property withc 37. interfere with existing ) Utility and ge easements which do rg g im rovements• P (E) Rights of tenants as follows (unless specified, not subject to tenancies): None. 33. 39. (F) Others (Must be specified In writing): 43. S ?=_CIAL ASSESSMENTS shall be paid as follows: aI`:;+s ^ ­ SHALL PAY ON DATE OF CLOSING all Installments (circle oneP 42. of special assessments certifled for payment with the real estate taxes due and Payable in the year of dosing. 43 ' �`!'!' " "" " SHALL PAY on date of closing all other special assessments levied as of the date of ciosinc (crae one) ...' "t :vSELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as of the date of this agreement !c 4 5. improvements that have been ordered by the City Council or other assessing authorities. (Seller's provision for payment shall be by payment into 40• escrew of 2 times the estimated amount of, he assessments, or less as required by Buyer's lender.) ` a:+-S +' "�T" " '::'SELLER SHALL PAY on date of dosing any deferred real estate taxes (i.e. Green Acres, etc.) or speciz (Circe one) 48. assessments payment of which is required as a result of the dosing of this sale. Buyer shall pay real estate taxes due and payable In t "e Per and any unpaid special assessments payable therewith and thereafter, the payment of which is not 49. year following closing and therea 50. Otherwise provided. 51. As of the date of this agreement, Seller represents that Seller HAS / HAS NOT received a notice of hearing for a new public improvement (circle one),_ 52. project from any governmental assessing authority, the costs of which project may be assessed against the property. It a notice of pending 53. special assessment is issued after the date of this agreement and on or before the date of closing, Buyer shall assume payment a 5 4. A" / NONE / QZ; irb F: _ (urue one) _ of any such special assessments, and Seller shall provide for payment cr 55. date of closing ALL f 4004x- A-C.ry : (arde one) of any such special assessments. If such special • 50• assessments or escrow amounts for said special assessments as required by Buyer's lender shall exceed 5 - IVA this 57. Purchase Agreement shall be null and void at Seller's option; parties agree to sign cancellation of Purchase Agreement and all earnest 53. money paid hereunder shall be refunded to Buyer, unless one or both of the parties agrees in wr 59. assume, Pay, or provide for the payment of such excess. or before the date of dosing, tc 00. Seller and Buyer Initial: Seiler(s) Date Buyers) 01• MN :PA -1 (8193) _ Data ) 62. Page 2 63. TITLE S EXAMINATION: Seller shall, within a reasonable time after acceptance of this agreement, furnish an abstract of title, or a regtstere and bens, and Ieviea and 64, property abstract ie Commitment `or Tue insurance, certified to data to include proper searches covering bankruptcies, state and federal judgmer. 6 5• pending special assessments, Buyer small be allowed 10 business days after receipt of abstract examination of title and making any objectior 66, which shall be made in writing or deemed waived, If any objection is so made, Seller shall have 10 business days from receipt of BuysY3 wr tie 67. title objections to notify Buyer of Setter's intention to make title marketable within 120 days from Seller's receipt of such written objection. If not c 68, is given, payments hereunder required shall be postponed pending correction of title, but upon correction of title and within 10 days after writte 69. notice to Buyer the parties shall perform this Purchase Agreement according to its terms. If no such notice Is given or if notice is given b. 70. title is not corrected within the time provided for, this Purchase Agreement shall be null and void, at option of Buyer, neither party shall be liab 71. for damages hereunder to the other and earnest money shall be refunded to Buyer; Buyer and Seller agree to sign cancellation of Purcha<_ 72. Agreement. BUYER AGREES TO ACCEPT AN OWNER'S TITLE POLICY IN THE FULL AMOUNT OF THE PURCHASE PRICE IN LIE 73. OF AN ABSTRACT OF TITLE IF THE PRCPERTY IS SUBJECT TO A MASTER ABSTRACT OR IF NO ABSTRACT OF TITLE IS IN SELLER' 7 POSSESSION OR CONTROL. If Buyer is to receive such polity (1) the title examination period shall commence upon Buyer's receipt of a curre; 75. title insurance commitment and (2) Seller shall pay the entire premium for such policy if no lenders policy is obtained, and only the addition 76. cost of obtaining a simultaneously issued owner's policy if a tender's policy Is obtained (Buyer shall pay the premium for the lender's policy 77• SUBDIVISION OF LAND: If this sale constitutes or requires a subdivision of land owned by Seller, Seller shall pay all subdivision expense 78. and obtain all necessary governmental approvals. Seller warrants the legal description of the real property to be conveyed has been or w, 79. be approved for recording as of the date of closing, 80. SELLER WARRANTIES: SELLER WARRANTS THAT BUILDINGS, ARE OR WILL BE, CONSTRUCTED ENTIRELY WITHIN THE BOUNDAR St. LINES OF THE PROPERTY. SELLER WARRANTS THAT THERE IS A RIGHT OF ACCESS TO THE PROPERTY FROM A PUBLIC RIGH 82. OF WAY. THESE WARRANTIES SHALL SURVIVE THE DELIVERY OF THE DEED OR CONTRACT FOR DEED. 83. SELLER WARRANTS THAT PRIOR TO THE CLOSING, PAYMENT IN FULL WILL HAVE BEEN MADE FOR ALL LABOR, MATERIAL_ 84. MACHINERY, FIXTURES OR TCOLS FURNISHED WITHIN THE 120 DAYS IMMEDIATELY PRECEDING THE CLOSING IN CONNECTIC' 85. WITH CONSTRUCTION, ALTERATION CR REPAIR OF ANY STRUCTURE ON OR IMPROVEMENT TO THE PROPERTY. 85. SELLER WARRANTS THAT SELLER HAS NOT RECEIVED ANY NOTICE FROM ANY GOVERNMENTAL AUTHORITY AS TO VIOLATIOf 87. OF ANY LAW, ORDINANCE OR REGULATION, IF THE PROPERTY IS SUBJECT TO RESTRICTIVE COVENANTS, SELLER WARRANT: 88. THAT SELLER HAS NOT RECEIVED ANY NOTICE FROM ANY PERSON OR AUTHORITY AS TO A BREACH OF THE COVENANTS. AN 89. NOTICES RECEIVED BY SELLER WILL BE PROVIDED TO BUYER IMMEDIATELY. 90. RISK OF LOSS: if there is any loss or damage to the property between the date hereof and the date of closing, for any reason includ n 91, fire, vandalism, flood, earthquake or act of God, the risk of loss shall be on the Seller. If the property is destroyed or substantially damaged befor 92. the closing date, this Purchase Agreement shall become null and void, at Buyer's option, and earnest money shall be refunded to Buye 92. Buyer and Seller agree to sign canceilation of Purchase Agreement. 94. TIME OF ESSENCE: Time is of the essence in this Purchase Agreement. 95. ENTIRE AGREEMENT: This Purchase Agreement, any attached exhibits and any addenda or amendments signed by the parties, shall constitute 56. the entire agreement between Seller and Buyer, and supersedes any other written or oral agreements between Setter and Buyer. This Purchase 97. Agreement can be modified only in writing signed by Seller and Buyer. 98. ACCE'PTANC'E: Buyer understands and agrees that this Purchase Agreement is subject to acceptance by Seller in writing. The delivery c 99. ail papers and monies shall be made at the listing broker's office. 100. DEFAULT: If Buyer defaults in any of the agreements herein, Seller may terminate this Purchase Agreement, and payments made hereunce 101. may be retained by Seller as liquidated damages. If This Purchase Agreement is not so terminated, Buyer or Seller may seek actual damage. 102. for breach of this agreement or specific performance of this Agreement: and, as to specific performance, such action must bbe� commence 103. within six months after such right of action arises. 1 IC5. Page 3 Data :948 105. REAL ESTATE TAXES shall be paid as follows: 107. Buyer shall pay, PRORATED FROM DATE OF CLOSING, !4ZT44Z_V.4r_4C4;& real estate taxes due and o 'arc!e one) payable In the year 19_ 109. Seller shall pay, PRORATED TO DAY OF CLOSING ' real estate taxes are due and payable in the year 1998. If t:' (UrCe one) 109. closing data is changed, the real estate taxes paid shall, if prorated, be adjusted to the new dosing date. Seller warrants taxes due ar • 110. payable in the year 1998 will be FULL•IIART-Sl 1`10mestead classification. If part or non - homestead classification is circle- (arde one) _ 111. Seller agrees to pay Buyer at closing 5 the difference between non /oart homestead taxes and full homestead taxes toward the non•homastea 112• portion of the real estate taxes. Buyer agrees to pay any remaining balance of non - homestead taxes when they become due and payabl 113. No representations are made concerning the amount of subsequent real estate taxes. 114. POSSESSION: Seller shall deliver possession of the property not later than at the closing. 115. All interest, homeowner association dues, rents, fuel oil, liquid petroleum gas and all Charges for city water, city sewer, electricity, and natur 116. gas shall be prorated between the parties as of date of dosing. Seller agrees to remove ALL DEBRIS AND ALL PERSONAL PROPERT 117. NOT INCLUDED HEREIN from the property by possession date. 118. ENVIRONMENTAL CONCERNS: To the best of the Seilees knowledge there are no hazardous substances or underground storage tanks, exce 119. herein noted: None t 120. 121. SPECIAL WARRANTIES. 122• SELLER WARRANTS THAT THE PROPERTY IS DIRECTLY CONNECTED TO: CITY SEWER X YES C NO CITY WATER X YES Q NC 123. SELLER/BUYER AGREES TO PROVIDE WATER QUALITY TEST RESULTS AND /OR SEPTIC SYSTEM CERTIFICATION IF REQUIRED B _ (circle one) _ • 124. GOVERNING AUTHORITY AND /OR LENDER. SELLER WARRANTS THAT ALL APPLIANCES, HEATING, AIR CONDITIONING, WIRIN 125. AND PLUMBING SYSTEMS USED AND LOCATED ON SAID PROPERTY WILL BE IN WORKING ORDER ON THE DATE OF CLOSINC 126• EXCEPT AS NOTED ON ATTACHED ADDENDUM. BUYER HAS THE RIGHT TO INSPECT PROPERTY PRIOR TO CLOSING. 127. OTHER: 128. 129• BUYER ACKNOWLEDGES THAT NO ORAL REPRESENTATIONS HAVE BEEN MADE REGARDING POSSIBLE PROBLEMS OF WATE 130. IN BASEMENT, OR DAMAGE CAUSED BY WATER OR ICE BUILD -UP ON THE ROOF OF THE PROPERTY AND BUYER RE )E 131. SOLELY IN THAT REGARD ON THE FOLLOWING STATEMENT BY SELLER: 132• SELLER HAS I HAS NOT HAD A WET BASEMENT, AND HAS I HAS NOT HAD ROOF, WALL OR CEILING DAMAGE CAUSED BY WATE (circle one) _ _ (arae one)_ 133. OR ICE BUILD -UP, BUYER l4AS / HAS NOT RECEIVED A REAL ESTATE TRANSFER DISCLOSURE STATEMENT. 134. e BUYER HAS RECEIVED THE TRUTH IN HOUSING INSPECTION REPORT, IF REQUIRED BY MUNICIPALITY. 135• BUYER HAS RECEIVED THE WELL DISCLOSURE STATEMENT REQUIRED BY MINNESOTA STATUTES SEC. 1031.:35. 136. BUYER & SELLER INITIAL: Buyer(s) Sellers) 137. 140. S'' ' .^'s'1 141. 142. 143. ^.zarrc-E: 144. =W"' i _ ,. {c ,. _ _. .� :i�`. ., �fi - 7 .°.'. „�.. - . nrrrnr. 145. I, the owner of the property, _; - -„ 3_4 ;64A ;aa I agree to Purchase the prcperty for the price and en :he 145• t _ _. -; :­!_-acne to s3,1 ;w said property 'r -- 3riat, terns and conditions set forth above. 14 7. _ _... ._'. - ,_Jrs'Jant :0 t'tis 143. BOULEVARD SHOPPES LLC icnq 149. TTTT_T^ u3RT: mvz)r7 (Scwr7 Pnntaa N a­) y' e 1 ' 0 • (SCb Saa;ray NUmou) T?�TrTT ) TOT C! r) �T yy (S (Martial S4tut) prulOra Pr1ttW Nam.) 151. 5�art S :pnatural Its: DD T: C Tr) TNTT (oat.) 152• (Sawrt 7rrtaa Nam.) • 153. (S.G S. " N-0.1 (MaJxat Status) 154, FINAL ACCEPTANCE DATE 155• THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER AND SELLERS. 155. MN:PA3 (8193) IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. oas3aa.ot ADDENDUM to PURCHASE AGREEMENT by and between BOULEVARD SHOPPES, LLC, BUYER and • T1 ?1' T^ �,� CCD(` . SELLER The following terms and conditions are hereby incorporated in the Purchase Agreement dated Q -.) -Q R , 1993 (the "Purchase Agrcement "), by and between Buyer and Seller, regarding the real property commonly known as Aa44 June Ave.N. , Brooklyn Center, Minnesota (the "Property "). Wherever there is a conflict between the Purchase Agreement and this Addendum (this "Addendum "), the provisions of this Addendum shall govern. The Purchase Agreement and this Addendum are sometimes collectively referred to herein as "this Agreement." l.) CONDITIONS. The obligations of Buyer under this Agreement arc conditioned upon satisfaction or waiver by Buyer of each of the following by the respective dates indicated: (a) Performance of Seller's Obligations Seller shall have performed all of the obligations required to be performed by Seller under this Agreement, as and when required by this Agreement, including without limitation that Seller shall allow Buyer and Buyer's agents access to the Property without charge and at all reasonable times for the purpose of investigation and testing. Buyer shall pay all costs and expenses of such investigation and testing and shall hold Seller and the Property harmless from all costs and liabilities relating to the Buyer's activities. Buyer shall further repair and restore any damage to the Property caused by or occurring during Buyer's testing and return the Property to substantially the same condition as existed prior to such entry. (b) Insoection and Testing Buyer shall have determined on or before the date of closing stated in the Purchase Agreement (the "CIosing Date "), that it is satisfied with the results of and matters disclosed by: (i) soil tests, engineering inspections, hazardous waste and environmental reviews and other tests and inspections of the Property, to the extent, if ally, provided by Seller; and (ii) any additional tests and inspections of the Property undertaken at Buyer's sole cost and expense, all to assure Buyer that the Property is suitable for its intended development. Seller shall provide copies of all of the environmental reports and information regarding the Property, • if any, in Seller's possession or control. (c) Financing On or before the Closing Date, Buyer shall have obtained a commitment satisfactory to Buyer providing for a loan to Buyer of sufficient funds to complete the purchase, demolition and redevelopment proposed by Buyer. (d) TTF Commitment. Buyer shall have obtained a binding commitment from the City of Brooklyn Center pledging certain tax increment finance revenues to Buyer's purchase or the Property in an amount that is satisfactory to Buyer in Buyer's sole judgment, such tax increments to be used to finance all or a part of the public improvements applicable to the Property. (e) Governmental Aoorovals. On or before the Closing Date, Buyer shall have obtained from the City (and all other applicable federal, state and local governmental authorities) the approvals necessary to demolish the existing building on the Property, and to redevelop the Property as proposed by Buyer; provided that none of such approvals shall be effective against the Proper,-, until after Buyer's purchase of the Property on the Closing Date. us, U, LCII lJ1i,i.il1. l.�ll JI IJCtJIC 4iC I.iUStl:' Date, Sul cl shall lid,C llelei,:ll11�: cost of demolishing the existing building on the Prc:a�etl­, .Vitro tae cost of preparing the Property for red ; „,,;,,; wiii not exceed 171K11' and (g) Title. On or before the Closing Date, title shall have been found acceptable by Buyer, or been made acceptable in accordance with the requirements and terms of the Purchase Agreement. If any condition set forth in this Section has not been satisfied, or waived in writing by Buyer, then Buyer may terminate this Agreement at any time on or before the CIosing Date by notice to Seller. Upon receipt of such notice from Buyer, Seiler shall promptly return the Earnest Money to Buyer. Upon such return, neither Seller nor Buyer shall have any further rights or obligations under this Agreement. . Seller and Buyer specifically state and acknowledge that all of the conditions set forth in this Agreement are for the sole and exclusive benefit of Buyer, and Buycr shall have the unilateral right to waive any condition by notice to Seller. 2 .) REPRESENTATIONS, WARRANTIES AND rNDEiVfNITY BY SELLER. Seller represents and warrants to Buyer as follows: (a) Title to Procerty. Seller shall on the date of closing, own the Property, free and clear of all encumbrances, except those waived by Buyer pursuant to the terms of Section 6 of the Purchase Agreement. (b) Assessments. Seller has received no notice of actual or threatened special assessments or reassessments of the Property. 3. RELOCATION COSTS. Buy and Setter agree Y gr that payments specified in this Agreement represent Buyer's full and complete financial obligation to Seller. Seller specifically acknowledges that such payments constitute full and complete reimbursement for any and all relocation expenses incurred by Seller pursuant to this Agreement. 4.) ASSiGNVfF.NT. Neither Seller nor Buyer may assign this Agreement or its rights and obligations under this Agreement, without the prior written consent of the other party. Notwithstanding the foregoing, Buyer reserves the right to, at Buyer's sole discretion, (i) transfer this Agreement to an affiliate of Buyer; or (ii) establish a separate entity to acquire or hold title to the Property and to transfer this Agreement to such entity for such purpose, but in each case retaining its liabili ty hereunder. 5.) NOTICES. Any notice required or permitted to be given hereunder will be properly given in accordance with this Agreement, if it is mailed, by United States certified mail, return receipt requested, postage prepaid; or if deposited cost paid with a nationally recognized, reputable overnight courier, properly addressed as follows: If to Seller: Julie Berg 90 T -- A nr Brooklyn Center, Minnesota If to Buyer. Boulevard Shoppes, LLC C /(� rlatti ri No1 can 7330 D�'Nlji. E,vj 55443 Notice shall be effective, and the time for response to any notice by the other party shall commence to run, one (1) business day after any such deposit. Either Seller or Buyer may change its address for the • service of notice by giving notice of such change to the other party, in any manner above specified, ten (10) days prior to the effective date of such change. 6.) MISCELLANEOUS. The headings used herein are for convenience only and are not to be used in interpreting this agreement. This Ag interpreted under shall be construed, enforced and inte reted i r the laws of the State of Minnesota. This Agreement may not be modified, amended or changed orally, but only by an agreement in writing signed b Buyer and Seller. To t Y _ he full extent applicable, the representations, warranties and covenants contained in this Agreement shall not merge with the warranty deed, but shall survive and be fully enforceable subsequent to execution and delivery of such document. Neither party will be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by such party. IN WITNESS WHEREOF, Buyer and Seller have executed this Addendum as of the date first above written. BUYER: SELLER: Bv: By: (Print Name)- _ (Print Name) Y Its: D Its: 0415562.01 1519Y (`tEtiY 8/96) naua•o,�, co.. st, e,w. v Addendum to Purchase Agreement Disclosure of information on Lead -Based Paint anc Lead -Based Paint Hazards This form approved by the Minnesota Association of ReattorsO, which disclaims any liability arising out of the use or misuse of this form. Date 9 - 1PgA Page c - of Addendum to Purchase Agreement between parties dated Q -� - , 19_98_ pertaining to the purchase and sale of th property at a^ 7 2 .; aaZ .1 -. ?F. Section 1: Lead Warning Statement Eve)y purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978, is notified that Suc property may present exposure to lead from lead -based paint that mav place young children at risk of developing lead poisoning. Lec poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotien behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant womem The seller of airy interest : residential real property is required to provide the buyer with any information on lead -based paint hazards front risk assessments c inspections in the seller's possession and notify the buyer of airy known lead -based paint hazards. A risk assessment or inspection f. possible lead -based paint hazards is recommended prior to purchase. Seller's Disclosure (initial) (a) Presence of lead -based paint and/or lead -based paint hazards (check one below): ❑ Known lead -based paint and/or lead -based paint hazards are present in the housing (explain). ❑ Seller has no knowledge of lead -based paint and/or lead -based paint hazards in the housing. (b) Records and reports available to the seller (check one below): ❑ Seller has provided the purchaser with all available records and reports pertaining to lead -based paint and/c lead -based paint hazards in the housing (list documents below). ❑ Seller has no reports or records pertaining to load -based paint and/or lead -based paint hazards in the housing. Purchaser's Acknowledgment (initial) (c) Purchaser has received copies of all information listed under (b) above. (d) Purchaser has received the pamphlet Protect Your Fancily from Lead in Your Honre. (e) Purchaser has (check one below): ❑ Received a 10 -day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead -based paint and/or lead -based paint hazards (If checked, see Section II below); or ❑ Waived the opportunity to conduct a risk assessment or inspection for the presence of lead -based paint and/c leadibased paint hazards. Real Estate Licensee's Acknowledgment (initial) (� Real estate licensee has informed the seller of the seller's obligations under 42 U.S.C. 4352(d) and is aware of licensee's responsibility to ensure compliance. Certification of Accuracy The following parties have reviewed the information above and certify, to the best of their knowledge, that the information provided E the siznatory is true and accurate. Seiler Date Purchaser Boulevard Shoppes, LLC Date Seller Date Purchaser Dat: Real Estate Licensee Date Real Estate Licensee Data Section II: Contingency (Initial only if first box under Purchaser's Acknowledgment letter (e) above is checked.) I This contract is contingent upon a risk assessment or an inspection of the property for the presence of lead -based paint and/ lead -based paint hazards to be conducted at the purchaser's expense. The assessment or inspection shall be completed within ten 0 0y — calendar days after acceptance of the Purchase AgreemenC This contingency shall be deemed removed, and t. -(strike out one). the Purchase Agreement shall be in full force and effect, unless purchaser or real estate licensee assisting or acting on behalf purchaser delivers to Seiler or real estate licensee assisting or acting on behalf of seller within three (3) calendar days after t: assessment or inspection is timely completed a written list of the specific deficiencies and the corrections required, together wit copy of any risk assessment or inspection report. If the seller and purchaser have not agreed in writing within three (3) calend days after delivery of the written list of required corrections that: (A) some or all of the required corrections will be made; or (' the purchaser waives the deficiencies; or (C) an adjustment to the purchase price will be made, the Purchase Agreement sh: automatically be deemed null and void, and all eamest money shall be refunded to the purchaser. It is understood that t. purchaser may unilaterally waive deficiencies or defects, or remove this contingency, providing that the purchaser or the r- estate licensee assisting or acting on behalf of purchaser notifies the seller or real estate licensee assisting or acting on behalf TLX:SALE (8/96) seller of the waiver or removal in writing within the time specified. City Council Agenda Item No. 8b e MEMORANDUM • TO: Michael J. McCauley, City Manager FROM: Charlie Hansen. Finance Director Stephen Baker, City Assessor DATE: November 4, 1998 SUBJECT: Brookdale Tax Appeal Refund The former owners of the Brookdale Center appealed its valuation for property tax purposes each year from 1992 through 1996. The cases were resolved in March 1998 and the settlement approved by the Bankruptcy Court in August 1998. The City of Brooklyn Center's share of the settlement has been calculated and will have to be paid in the near future. As the years progressed, estimates were made of the City's likely loss from the case. These increased as each additional year under appeal was added and as the likely decision of the Tax Court became apparent. Each year, an amount was recorded as uncollectible taxes for that year and set up as a liability in the General Fund. This liability was last updated in March 1998 as the books were closed on 1997 and equaled $1,079,513 for the Brookdale Center case. Hennepin County has sent the attached final calculation of Brooklyn Center's liability. For general property tax levies, the amount owed is $1,068,848.46. This is less than the liability set up in the General Fund by $10,664.54. However, there is also an amount owed for the separate HRA property tax levy in the amount of $32,898.20. All HRA tax revenues are transferred to the EDA. No amounts were ever recorded as uncollectible taxes and set up as a liability for the estimated losses in the EDA Fund. This fund had a fund balance of $496,527 on December 31, 1997. It normally has an operating surplus unless a large redevelopment project is done within the year. The entire $32,898.20 will have to be recorded as uncollectible taxes in the 1998 operating results. Hennepin County may send us an invoice for the total owed of $1,101,746.66, or they may just deduct this amount from the December tax settlement. • } Brookdale Refund All Years Tax Refund $ 4,572,682.69 Interest on Refund $ 809,562.98 Taxing District Tax Rafe % of Total Rate Tax Refund interest Refund' Hennepin County $ 1,242,888.94 $ 221,424.28 City of Brooklyn Center $ 910,416.38 ( $ 158,432.08 Brooklyn Center HRA ! $ 28,168.81 $ 4,729.39 $ 938,585.19 $ 163,161.47 School District #281 $ 2,1 $ 383,563.01 Vo Tech #287 ( $ 17,091.20 $ 3,727.69 $ 2,178,213.99 $ 387,290.70 Metro Taxing Districts � � � $ 152,863.80 � $ 27,087,84 Other Districts ( ( $ 60,130.77 $ 10,598.69 Total Payable 1993 Rate $ 4,372,682.69 $ 809,562.98 { Memorandum Date: March 16, 1998 To: Charlie Hansen, Finance Director From: Stephen Baker, City Assessor Potential Tax Refunds as of March 10, 1998 Non /Mall Parcels (Pending) Non -Mall Tax Capacity under appeal - $1,088,632 Tax Capacity Reductions from Pending Non -Mall Cases $146,172 Pending City Tax Refund - $47,510 Pending City Interest Refund $3,143 Sub -Total Refunds - $50,653 (Open ) Non -Mall Tax Capacity under appeal - $1,272,511 Estimated Percentage of Reduction 8.50% Estimated Loss in Tax Capacity $108,163 Estimated City Tax Refund - $35,248 Estimated City Interest Refund $1,954 Sub -Total Refunds - $37,203 Estimated Total Non -Mall Refunds Pending (from City) $87,856 Mall Parcels Total Mall Tax Capacity under appeal - $12,688,729 Estimated Percentage of Reduction 29.60% Pending City Tax Refund - $934,361 Pending City Interest Refund 145,152 Pending Total Mall Refunds (from City) $1,079,513 $1,167,369 The non -mall parcels currently open should be resolved within 18 months. The "Mall Parcels" are resolved pending approval by the New York Bankruptcy Court. The pending settlement has been approved by the Board of Directors of Midwest Real Estate Limited Partnership, the petitioner. Interest on Refunds Included Estimated Total Pending City Refunds $1,167,369 Contingency of 20% of (Open) Non -Mall Petitions $7,441 Total Outstanding Liability $1,174,810 F.\ASSESSISPREDSHT\STEV EB4R FNDS98.XLS13 -18-98 3/16/982:32 PNI s City Council Agenda Item No. 8c • • its adoption: Member introduced the following resolution and moved • RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF GRANT AGREEMENT END GRANT FOR THE BROOKLYN CENTER EARLE BROWN HERITAGE CENTER RESTORATION PROJECT WHEREAS, attached hereto and incorporated here and by reference as Exhibit A is a proposed grant agreement between the State of Minnesota Department of Administration and the City of Brooklyn Center to receive grant monies authorized by 1998 Minnesota Laws Chapter 404, Section 23, Subdivision 19; and WHEREAS, these grant monies were obtained for the purpose to acquire land and improve it for parking and to design, construct, furnish, and equip an additional building, together with connecting structures and remodeling of existing buildings at the Earle Brown Heritage Center; and WHEREAS, the terms and conditions set forth in the grant agreement are appropriate. • NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the Mayor and City Manager be and hereby are authorized to execute Grant Agreement End Grant for the Brooklyn Center Earle Brown Heritage Center Restoration Project on behalf of the City of Brooklyn Center. 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. RESOLUTION NO. EXHIBIT A GRANT AGREEMENT END GRANT for the Brooklyn Center Earle Brown Heritage Center Restoration PROJECT THIS AGREEMENT shall be effective as of the day of , 199_, and is made and entered into by and between the city of Brooklyn Center, a statutory city (hereinafter referred to as the "Public Entity "), and the Department of Administration (hereinafter referred to as the "State Entity "). WHEREAS, under the provisions contained in 1998 Minn. Laws ch. 404, sec. 23, subd. 19, the Public Entity has been given the authority to acquire land and improve it for parking and to design, construct, furnish, and equip an additional building, together with connecting structures and remodeling of existing buildings at the Earle Brown Heritage Center; and WHEREAS, under the provisions contained in 1998 Minn. Laws ch. 404, sec. 23, subd. 19, the State of Minnesota has allocated Two Million Five Hundred Thousand Dollars ($2,500,000.00), which is to be given to the Public Entity as a grant to assist it in the acquisition of land and improvements for parking and in the designing, constructing, furnishing and equiping of an additional building, together with connecting structures and the remodeling of existing buildings at the Earle Brown Heritage Center as authorized by 1998 Minn. Laws ch. 404, sec. 23, subd. 19; and WHEREAS, the monies allocated to fund the grant to Public Entity are the proceeds of state general obligation bonds authorized to be issued under Article XI, § 5(a) of the Minnesota Constitution; and WHEREAS, the Public Entity and the State Entity desire to set forth herein the provisions relating to the granting of such monies and the disbursement thereof to the Public Entity. NOW, THEREFORE, in consideration of the grant described herein, the parties hereto do hereby agree as follows: s 1 RESOLUTION NO. EXIIIBIT A Article I DEFLNITIONS Section 1.01 Defined Terms. As used in this Agreement, the following terms shall have the meanings set out respectively after each (such meanings to be equally applicable to both the singular and plural forms of the terms defined), unless the contents hereof specifically indicate otherwise: A. "Agreement" - means this Grant Agreement for the Brooklyn Center Earle Brown Heritage Center Restoration Project. B. "Commissioner's Order" - means that certain "Order Amending Order of the Commissioner of Finance Relating to Use and Sale .of State Bond Financed Property" executed by the Finance Commissioner on July 20, 1995. C. "Declaration" - means a declaration in the form of Attachment A attached hereto, indicating that the Facility is bond financed property within the meaning of the G.O. Compliance Legislation, an d is subject to certain restrictions imposed thereby. D. "Event of Default" - means those events delineated in Section 2.05 hereinbelow. E. "Facility" - means Earle Brown Heritage Center, which is located on the real property located in the County of Hennepin, State of Minnesota, legally described in Attachment B attached hereto and incorporated herein by reference. F. "Fair Market Value" - means; (i) the price that would be paid by a willing and qualified buyer to .a willing and qualified seller as determined by an appraisal which assumes that any and all mortgage liens or encumbrances on the property being sold, which negatively effect the value of the Facility, will be released, or (ii) the price bid by a purchaser under a public bid procedure after reasonable public notice, with the proviso that any and all mortgage liens or encumbrances on the property being sold, which negatively effect the value of the Facility, will be released at the time of acquisition by such purchaser. 2 RESOLUTION NO. EXHIBIT A G. "Finance Commissioner" - means the State of Minnesota acting through its Commissioner of Finance and any b representatives resentatives thereof. P H. "G.O. Compliance Legislation" - means Minn. Stat. § 16A.695 (1994 & 1995 Supp.), as such may subsequently be amended, modified or replaced. I. "G.O. Bonds" - means the state general obligation bonds, issued under the authority granted in Article XI, § 5(a) of the Minnesota Constitution, the proceeds of which are used to fund the Grant, or any bonds issued to refund or replace such bonds. J. "Grant" - means a grant of monies from the State Entity to the Public Entity in j an amount of Two Million Five Hundred Thousand Dollars ($2,500,000.00). K. "IRS Code" - means the Internal Revenue Code of 1986, as amended from time to time, and all treasury regulations, revenue procedures and revenue rulings issued pursuant thereto. L. "Lessee" - means the entity which the Public Entity contracts with under a Use Contract. M. "Project" - means the acquisition, improvement, renovation, rehabilitation, and/or new construction of the Facility, as specified in Section 2.02 hereinbelow. N. "Public Entity" - means Brooklyn Center, a statutory city. O. "State Entity" - means the Minnesota Department of Administration. P. "Use Contract" - means a lease, management contract or other. similar contract between Public Entity and any other entity, and which involves or relates to the Facility. Article H GRANT Section 2.01 Grant of Monies. The State Entity shall issue the Grant to the Public Entity, the proceeds of which shall be disbursed in accordance with the provisions contained 3 RESOLUTION NO. EXMBIT A hereinbelow. The parties hereto do agree and acknowledge that the Grant is not intended to be a loan of monies in - or manner. an form . r Y Section 2.02 Use of Grant Proceeds. The Public Entity shall use the proceeds of the Grant to; (Check all appropriate lines.) Acquire the Facility, Improve the Facility, Renovate or rehabilitate the Facility, Construct the Facility, X Acquire land and improve it for parking and to design, construct, furnish and equip an additional building, together with connecting structures and the remodeling of existing buildings, in such a manner as will allow the Facility to be operated in the manner specified in Section 2.03 hereinbelow. Section 2.03 Operation of the Facility. The Public Entity shall operate the Facility, or cause it to be operated, as the Earle Brown Heritage Center, or for such other use as the legislature may from time to time designate, and may enter into Use Contracts with Lessees to so operate the Facility; provided that such contracts have been approved, in writing, by the State Entity and the Finance Commissioner. The Public Entity shall also annually determine that the Facility is being so used, and shall supply a statement, sworn to before a notary public, to such effect to both the State Entity and the Finance Commissioner. With respect to any program which will be operated in the Facility, the Public Entity covenants with, and represents and warrants to, the State Entity that (i) it has the ability and a plan to fund the program which will be operated in the Facility, (ii) it demonstrated such ability and supplied such plan to the State Entity prior to the execution of this Agreement, and (iii) it will not enter into a Use Contract with a Lessee unless such Lessee has demonstrated to the State Entity that it has the ability and a plan to fund the program which Lessee intends on operating in the Facility. Section 2.04 Public Entity Representations and Warranties. The Public Entity further covenants with, and represents and warrants to the State Entity as follows: 4 RESOLUTION NO. EXHIBIT A A. It has legal authority to enter into, execute, and deliver this Agreement and the Declaration, and it has taken all actions necessary and incident to its execution and delivery of such documents. B. This Agreement, the Declaration, and any and all other documents referred to herein are the legal, valid and binding obligations of the Public Entity enforceable against the Public Entity in accordance with their respective terms. C. It will comply with all of the terms, conditions, provisions, covenants, requirements, and/or warranties contained in this Agreement, the Declaration, the G.O. Compliance Legislation, and the Commissioner's Order. D. It has made no material false statement, or misstatement of fact, in connection with its receipt of the Grant, and all of the information it previously submitted to the State Entity, or which it will submit to the State Entity in the future, relating to the Grant or the disbursement of any `of the proceeds of the Grant, is and will be true and correct. E. It is not in violation of any provisions of its charter, or of the laws of the State of Minnesota, and there are no actions, suits, or proceedings pending, or to its knowledge threatened, before or by any judicial body or governmental authority, against or effecting it relating to the Facility, and it is not in default with respect to any order, writ, injunction, S decree, or demand of any court or any governmental authority which would impair its ability to enter into this Agreement and the Declaration, or to perform any of the acts required of it in this Agreement and the Declaration. F. Neither the execution and delivery of this Agreement or the Declaration, nor compliance with any of the terms, conditions, requirements, or provisions contained herein, is prevented by, is a breach of, or will result in a breach of, any term, condition, or provision of any agreement or document to which it is now a party, or by which it is bound. G. The Facility has been, or will be: (Check all appropriate lines.) Acquired. Improved. Renovated or rehabilitated. Newly constructed. 5 RESOLUTION NO. EXHIBIT A X Acquired and improved for parking and an additional facility designed, constructed, furnished and equipped, and connecting structures constructed, and existing buildings remodeled, All of such has been, or will be, done in such a manner as will allow the Facility to be operated in the manner specified in Section 2.03 hereinabove. H. The Facility and the contemplated use thereof will not violate any applicable zoning or use statute, ordinance, building code, rule or regulation, or any covenant or agreement of record, relating to the Facility. I. The Project was, or will be, performed and completed in compliance with all applicable laws, statutes, rules, ordinances, and regulations issued by any federal, state, or local political subdivisions having jurisdiction over the Facility. J. All applicable licenses, permits and bonds required for the performance and completion of the Project were, or will be, obtained. K. It will operate, maintain, and manage the Facility in compliance with all applicable laws, statutes, rules, ordinances, and regulations issued by any federal, state, or local political subdivisions having jurisdiction over the Facility. L. It has the following interest in the real property and the structures and improvements which are part of the Facility, and, in addition, will possesses any and all easements necessary for the operation, maintenance and management of the Facility in the manner specified in Section 2.03 hereinabove: 6 RESOLUTION NO. EXMBIT A (Check the appropriate line.) _ Fee simple title to both the real estate and the structures and improvements; or _ A lease on the real estate for a term which is at least as long as the expected useful life of the structures and improvements, and fee simple title to the structures and improvements. M. It will fully enforce the terms and conditions contained in any Use Contracts to which it is a parry. N. It will fully comply with the matching funds requirement, if any, contained in Section 5.21 hereinbelow. O. It will use the proceeds of any insurance policies on the Facility in accordance with the provisions contained in Section 5.01 hereinbelow. P. It will use the proceeds of any condemnation of the Facility in accordance with the provisions contained in Section 5.02 hereinbelow. Q. It will fully comply with the G.O. Compliance Legisla tion and the Commissioner's Order. R. It shall furnish such satisfactory evidence regarding the representations and warranties described herein as may be required and requested in writing by either the State Entity or the Finance Commissioner. Section 2.05 Event(s) of Default. Any of the following shall, upon either the State Entity or the Finance Commissioner giving the Public Entity thirty (30) days notice thereof, and Public Entity's failure to cure during such time period, constitute an Event of Default under this Agreement. A. If, without the written consent of both the State Entity and the Finance Commissioner and while any G.O. Bonds are outstanding and unpaid, any part of the Facility ceases to be used as the Earle Brown Heritage Center. B. If, without the written consent of both the State Entity and the Finance Commissioner, the Public Entity sells, transfers, leases, encumbers, or otherwise conveys, RESOLUTION NO. EXHIBIT A in any way or manner, whether voluntary, involuntary, or by action of law, all or any part i of its interest in the Facility, or amends or modifies any agreement relating to such sale which had previously been so consented to and approved of by the Finance Commissioner. C. If, without the written waiver of both the State Entity and the Finance Commissioner and while any G.O. Bonds are outstanding and unpaid, the Public Entity fails to annually determine that the Facility is being used as the Earle Brown Heritage Center as is required under Section 2.03 hereinabove. D. If, without the written waiver of both the State Entity and the Finance Commissioner and while any G.O. Bonds are outstanding and unpaid, the Public Entity fails to annually supply the statement required under Section 2.03 hereinabove to both the State Entity and the Finance Commissioner. E. If, without the written waiver of both the State Entity and the Finance Commissioner and while any G.O. Bonds are outstanding and unpaid, the Public Entity fails to maintain, or cause to be maintained, fire and extended coverage insurance on the Facility in an amount equal to the full insurable value of the Facility. F. If, without the written waiver of both the State Entity and the Finance Commissioner, the Public Entity fails to use the proceeds of any insurance policies on the Facility in accordance with the provisions contained in Section 5.01 hereinbelow, or fails to cause such insurance proceeds to be so used. G. If, without the written waiver of both the State Entity and the Finance Commissioner, the Public Entity fails to use the proceeds of any condemnation of the Facility in accordance with the provisions contained in Section 5.02 hereinbelow, or fails to cause such condemnation proceeds to be so used. H. If the Public Entity, upon request, refuses to allow the State Entity, auditors for the State Entity, the Legislative Auditor for the State of Minnesota, or the State Auditor for the State of Minnesota, to inspect, audit, copy, or abstract, any and all of the Public Entity's books, records, papers, or other documents relevant to the Grant, or the Facility. I. If the Public Entity, while any G.O. Bonds are outstanding and unpaid, refuses to allow the State Entity, after ten (10) days prior written notice, to inspect the Facility. J. If, without the written waiver of both the State Entity and the Finance Commissioner the Public Entity fails to fully enforce any term or provision contained in a Use Contract to which it is a parry. 8 RESOLUTION NO. EXHIBIT A K. If the Public Entity fails to comply with the G.O. Compliance Legislation, or the Commissioner's Order. L. If the Public Entity fails to fully comply with the matching funds requirements, if any, contained in Section 5.21 hereinbelow. M. If any representation, covenant, or warranty made by the Public Entity hereunder shall prove to have been untrue in any material respect, or materially misleading as of the time such representation, covenant, or warranty was made. N. If, without the written consent or waiver of both the State Entity and the Finance Commissioner, the Public Entity fails to fully comply with any provision, term, condition, covenant or warranty contained in this Agreement or the Declaration. Section 2.06 Remedies. Upon the occurrence of an Event of Default the State Entity or the Finance Commissioner may exert any or all of the following remedies. A. The State Entity may refrain from disbursing the proceeds of the Grant. B. The Finance Commissioner, as a third party beneficiary of this Agreement, may demand that all of the proceeds of the Grant already disbursed to the Public Entity be returned to it, and upon such demand the Public Entity shall return such proceeds to the Finance Commissioner. C. Both the State Entity and the Finance Commissioner, as a third party beneficiary of this Agreement, may exert any additional remedies they may have in law or equity. Section 2.07 Notification of Event of Default. The Public Entity shall furnish to both the State Entity and the Finance Commissioner, as soon as possible and in any event within seven (7) days after it has obtained knowledge of the occurrence of each Event of Default, or each event which with the giving of notice or lapse of time or both would constitute an Event of Default, a statement setting forth details of each Event of Default, or event which with the giving of notice or upon the lapse of time or both would constitute an Event of Default, and the action which the Public Entity proposes to take with respect thereto. Section 2.08 Termination of Grant and Grant Agreement. If the proceeds of the Grant are not fully disbursed in accordance with the provisions contained in Article IV hereinbelow on or before first day of June, 1999, or such later date as the Public Entity and the State Entity may agree to in writing, then; (i) the State Entity's obligation to disburse any remaining portion of the Grant shall terminate, and (ii) if none of the Grant has been disbursed then this Agreement shall terminate and no longer be of any force or effect. 9 RESOLUTION NO. EXHIBIT A This Agreement shall also terminate and no longer be of any force or effect upon the sale of the Facility in accordance with the provisions contained in Section 3.05 hereinbelow, and transmittal of all or a portion of the proceeds of such sale to the Finance Commissioner in compliance with the provisions contained in Section 3.06 hereinbelow. Section 2.09 Effect of Event of Default. If an Event of Default occurs and the Public Entity is required to and does return the amount specified in Section 2.06.B hereinabove to the Finance Commissioner, then the following shall occur. A. The Finance Commissioner shall, as soon as legally possible, use such amount to redeem the G.O. Bonds. B. The provisions, covenants, representations and/or warranties contained in Sections 2.03, 2.04.G through 2.04.N, 2.05.A, 2.05.C, 2.05.1), 2.05.I, 2.05.J, 2.051, 2.06.B, 3.03, 3.04, 3.05.A, 4.01, 4.02, 5.06 through 5.09, and 5.21 herein shall terminate and no longer be of any force or effect; provided that all other Sections and provisions contained in this Agreement shall survive and remain in full force and effect. C. The amount returned by the Public Entity shall be credited against any amount which shall be due to the Finance Commissioner under Section 3.06 hereinbelow, and against any amount that becomes due and payable because of any other Event of Default. Article III COMPLIANCE WITH G.O. COINIPLLkNCE LEGISLATION AND THE CONIti1ISSIONER'S ORDER Section 3.01 State Bond Financed Property. The Public Entity and the State Entity acknowledge and agree that the Facility is "state bond financed property ", as such term is used in the G.O. Compliance Legislation and the Commissioner's Order, and, therefore, the provisions contained in such statute and order apply to the Facility and any Use Contracts relating thereto. Section 3.02 Preservation of Tax Exempt Status. In order to preserve the tax exempt status of the G.O. Bonds, the Public Entity agrees that during the time period that any G.O. Bonds are outstanding and unpaid: A. It will not use the Facility, or use or invest any proceeds of the Grant or any other sums treated as "bond proceeds" under § 148 of the IRS Code including "investment proceeds," "invested sinking funds," and "replacement proceeds," in such a manner as to cause the G.O. Bonds to be classified as "arbitrage bonds" under § 148 of the IRS Code. 10 RESOLUTION NO. EXHIBIT A B. It will deposit and hold any and all proceeds of the Grant which it receives under this Agreement into a "segregated non - interest bearing account until such funds are used for payments for the Project in accordance with the provisions contained herein. C. It will, upon written request, provide the Finance Commissioner any and all information required to satisfy the informational requirements set forth in the IRS Code including, but not limited to, §§ 103 and 148 thereof. D. It will, upon direction from the Finance Commissioner, take such actions and furnish such documents as the Finance Commissioner determines to be necessary to ensure that the interest to be paid on the G.O. Bonds is exempt from federal taxation, which such action may include either; (i) compliance with proceedings intended to classify the G.O. Bonds as a "qualified bond" within the meaning of IRC § 141(e), (ii) changing the nature and/or terms of the Use Contract so that it complies with Revenue Procedure 93 -19, or (iii) compliance with Internal Revenue Code provisions, regulations, or revenue procedures which amend or supersede the foregoing. E. It will not otherwise use any of the proceeds of the Grant, including earnings thereon, if any, or take, or permit to or cause to be taken, any action that would adversely affect the exemption from federal income taxation of the G.O. Bonds, nor otherwise omit, take or cause to be taken any action necessary to maintain such tax exempt status, and if it should take, permit, omit to take, or cause to be taken, as appropriate, any such action, it shall take all lawful actions necessary to rescind or correct such actions or omissions, promptly upon having knowledge thereof. Section 3.03 Use Contracts. Each and every Use Contract which the Public Entity enters into must comply with the following requirements: A. It must" contain a provision delineating the statutory authority under which the Public Entity is entering into and executing the Use Contract, and must comply with the substantive and procedural provisions of such statute. B. It must contain a provision stating that the Use Contract is being executed and entered into in order to carry out a specific governmental purpose, and must delineate such governmental purpose. C. It must be for a term, including any renewals that are solely at the option of the Lessee, that is substantially less than the useful life of the Facility, but may allow for renewals beyond the original term upon a determination by the Public Entity that the use 11 RESOLUTION NO. EX MIT A continues to carry out a specific governmental purpose, and must delineate such governmental se. term which is equal to or shorter than fifty percent (50 %) of the 0 o A fty P g P�'P q useful life of the Facility will meet the requirement that it be for a time period which is.. substantially shorter than the useful life of the Facility. D. It must contain a provision which will provide for oversight by the Public Entity. Such oversight may be accomplished by way of a provision that will require the Lessee to provide to the Public Entity; (i) an initial program evaluation report, and (ii) a program Midget, at least annually, showing forecast program revenues and expenses for the next fiscal year. E. It must allow for termination by the Public Entity in the event of a default thereunder by the Lessee, or in the event that the governmental purpose delineated in the Use Contract is terminated or changed. F. It must require the Lessee to pay all costs of operation and maintenance of the Facility, unless thq Public Entity is authorized by law to pay such costs and agrees to pay such costs. G. If any monies are to be paid to the Public Entity under the Use Contract, then it must contain a provision requiring that each and every party thereto shall, upon direction by the Finance Commissioner, take such actions and furnish such documents to the Finance Commissioner as it determines to be necessary to ensure that the interest to be paid on the G.O. Bonds is exempt from federal income taxation. H. It must be approved, in writing, by the Finance Commissioner, and any proposed Use Agreement which is not approved, in writing, by the Finance Commissioner shall be null and void and of no force or effect. I. If the amount of the Grant exceeds of Two Hundred Thousand and No /100 Dollars ($200,000.00), then it must contain a provision requiring the Lessee, for one year from the date of the Use Contract, to list any vacant or new positions it may have with job services of the Commissioner of Economic Security for the State of Minnesota, or the local service units, as required by Minn. Stat. § 268.66 Subd. 1 (1994), as such may subsequently be amended, modified or replaced. Section 3.04 Receipt of Monies Under a Use Contract. If the Public Entity receives any monies under a Use Contract while any G.O. Bonds are outstanding, then a portion of such monies in excess of the amount the Public Entity needs, and is authorized to use, to pay the 12 RESOLUTION NO. EXHIBIT A operating expenses of the Facility, or to pay the principal, interest, redemption premiums, and other expenses on debt related to the Facility, other than the debt on the G.O. Bonds and debt for which the Public Entity has no financial liability, must be paid by the Public, Entity to the Finance Commissioner. The portion of such excess monies that the Public Entity shall pay to the Finance Commissioner shall be determined and established by the Finance Commissioner, and, absent circumstances which would indicate otherwise, such portion shall be determined by multiplying such excess amount by a fraction the numerator of which is the. amount of G.O. Bonds, and the denominator of which is the total principal amount of all public debt financing incurred with respect to the Facility other than public debt issued by a public entity for which it has no financial liability. Section 3.05 Sale of Facility. The Public Entity may not, and shall not, sell the Facility unless all of the following provisions have been fully complied with. A. The Public Entity determines, by official action, that it is no longer usable or needed as the Earle Brown Heritage Center, B. The sale is made as authorized by law. C. The sale is for Fair Market Value. D. The written consent of the Finance Commissioner has been obtained. The acquisition of the Facility at a foreclosure sale, acceptance of a deed -in -lieu of foreclosure for the Facility, and/or enforcement of a security interest in personal property used in the operation of the Facility, by a lender that has provided monies for the acquisition or betterment of the Facility shall not be considered a sale of the Facility for the purposes of this Agreement if after its acquisition of the Facility such lender operates the Facility in a manner which is not inconsistent with the governmental program specified in Section 2.03 hereinabove and such lender uses its best efforts to sell the Facility to a third party for Fair Market Value. The ultimate sale and/or disposition of the Facility by the lender shall be deemed to be a sale of the Facility for the purposes of this Agreement, and the proceeds thereof shall be disbursed in accordance with the provisions contained in Section 3.06 hereinbelow. Section 3.06 Proceeds of a Sale. Upon the sale of the Facility, the net proceeds thereof shall be disbursed in the following manner and order. A. The first distribution from such net proceeds shall be to the Finance Commissioner in an amount equal to the amount of the Grant, and if the amount of such net 13 RESOLUTION NO. EXHIBIT A proceeds shall be less than the amount of the Grant then all of such net proceeds shall be distributed to the Finance Commissioner. B. The remaining portion of such net proceeds, after the distribution specified in Section 3.06.A hereinabove, shall be distributed to pay in full any outstanding public or private debt incurred to acquire or better the Facility. C. The remaining portion of such net proceeds, after the distributions specified in Sections 3.06.A & B hereinabove, shall be divided and distributed in proportion to the shares contributed to the acquisition or betterment of the Facilities by public and private entities, including the State Entity but not including any private entity that has been paid in full, that supplied funds in either real monies or like kind contributions for such acquisition and betterment, and the State Entity's distribution shall be made to the Finance Commissioner. Such public and private entities may agree amongst themselves as to any redistribution of such distributed funds. The Public Entity shall not be required to pay or reimburse the State Entity for any funds above and beyond the full net proceeds of such sale, even if such net proceeds are less than the amount of the Grant, and are. insufficient to redeem or defense the outstanding G.O. Bonds. Section 3.07 Changes to G.O. Compliance Legislation or the Commissioner's Order. In the event that the G.O. Compliance Legislation and/or the Commissioner's Order are amended in a manner which reduces any requirement imposed against the Public Entity, or if the Facility is exempted from the G.O. Compliance Legislation and the Commissioner's Order, then the State Entity shall, upon written request by the Public Entity, enter into and execute an amendment to this Agreement to implement herein such amendment to, or exempt the Facility from, the G.O. Compliance Legislation or the Commissioner's Order. Article IV DISBURSEIMNT OF GRANT PROCEEDS Section 4.01 Disbursement of Grant. Upon compliance with the conditions delineated in Section 4.02 hereinbelow, the State Entity shall disburse the entire proceeds of the Grant to the Public Entity. Section 4.02 Condition Precedent to Disbursement of Grant. The obligation of the State Entity to disburse the proceeds of the Grant to the Public Entity is subject to the condition 14 RESOLUTION NO. EXMBIT A precedent that the State Entity shall have received the following on or before the date of such disbursement: A. The Declaration duly executed by the Public Entity. B. A draw requisition, duly executed on behalf of the Public Entity; (i) describing, in detail, what the proceeds of the Grant will be used to pay for (i.e. acquisition, improvement, renovation, rehabilitation, or new construction of the Facility), and (ii) containing a certification that the value of such work or activity is equal to or greater than the amount of the proceeds of the Grant. C. If the Facility was improved, renovated, rehabilitated, or newly constructed, then evidence that; (i) such improvement, renovation, rehabilitation, or new construction was performed in a manner that will allow for the Facility to be operated in the manner specified in Section 2.03 hereinabove, and (ii) all required building permits and other permits for such improvement, renovation, rehabilitation or new construction were obtained. D. A "Certificate of Occupancy" from the applicable local municipality, or such other type or form of certificate as is customarily issued by such municipality, indicating that the Facility may be occupied, used and operated in the manner specified in Section 2.03 hereinabove. E. Evidence that the Facility and the contemplated use thereof are permitted by and comply with all applicable use or other restrictions and requirements imposed by applicable zoning ordinances or regulations, and have been duly approved by the applicable municipal or governmental authorities having jurisdiction. F. Evidence that all applicable licenses, permits, and bonds required for the performance and completion of the Project have been obtained. G. Evidence that the Public Entity has fee simple title to the real property upon which the Facility is situated. H. Evidence that the policies of insurance required under Section 5.01 hereinbelow are in full force and effect. I. Evidence of compliance with the provisions and requirements specified in Section 5.09 hereinbelow, and any and all additional applicable provisions and requirements contained in Minn. Stat. § 16B.335 (1994 & 1995 Supp.), as such may subsequently be amended, modified or replaced. 15 RESOLUTION NO. E IMIT A J. Evidence that the Public Entity has the ability and a plan to fund the program which will be operated in the Facility. K. Evidence that the Public Entity has fully complied with the matching funds requirements, if any, contained in Section 5.21 hereinbelow. Article V MISCELLANEOUS Section 5.01 Insurance. The Public Entity shall maintain, or cause to be maintained, builders risk insurance and standard fire and extended coverage insurance on the Facility in an amount equal to the full insurable value thereof, and shall name the State Entity as loss payee thereunder. If the Public Entity elects to maintain general comprehensive liability insurance on the Facility, then the Public Entity shall have the Finance Commissioner named as an additional named insured therein. At the written request of either the State Entity or the Finance Commissioner, the Public Entity shall promptly furnish to the requesting entity all written notices and all paid premium receipts received by the Public Entity regarding such required insurance, or certificates of insurance evidencing the existence of such required insurance. If damages which are covered by the insurance required hereinabove occurs to the Facility, then the Public Entity shall, at its sole option and discretion, either (i) use the insurance proceeds, or cause the insurance proceeds to be used, to fully or partially repair such damage" and to provide, or cause to be provided, whatever additional funds which may be needed to fully or partially repair such damage, or (ii) sell the damaged Facility in accordance with the provisions contained in Section 3.05 hereinabove. If the Public Entity elects to only partially repair such damage, then the portion of the insurance proceeds which are not used for such repair shall be applied in accordance with the provisions contained in Section 3.06 hereinbelow as if the Facility had been sold, and such amounts shall be credited against the amounts due and owing under Section 3.06 upon the ultimate sale of the Facility. If the Public Entity elects to sell the damaged Facility, then such sale must occur within a reasonable time period from the date the damage occurred and the cumulative sum of the insuran proceeds plus the proceeds of such sale must be applied in accordance with the provisions contained in Section 3.06 hereinabove, with the insurance proceeds being so applied within a reasonable time period from the date they are received by the Public Entity. 16 RESOLUTION NO. EXHIBIT A Section 5.02 Condemnation. If all or any portion of the Facility is condemned, then the Public Entity shall, at its sole option and discretion, either (i) use the condemnation proceeds, or cause the condemnation proceeds to be used, to fully or partially restore the Facility and to provide, or cause to be provided, whatever additional funds which may be needed to fully partially restore the Facility, or. (ii) sell the remaining portion of the Facility in accordance with the provisions contained in Section 3.05 hereinabove. If the Public Entity elects to only partially restore the Facility, then the portion of the condemnation proceeds which are not used for such restoration shall be applied in accordance with the provisions contained in Section 3.06 hereinbelow as if the Facility had been sold, and such amounts shall be credited against the amounts due and owing under Section 3.06 upon the ultimate sale of the Facility. If the Public Entity elects to sell the remaining portion of the Facility, then such sale must occur within a reasonable time period from the date the condemnation occurred and the cumulative sum of the condemnation proceeds plus the proceeds of such sale must be applied in accordance with the provisions contained in Section 3.06 hereinabove, with the condemnation proceeds being so applied within a reasonable time period from the date they are received by the Public Entity. Section 5.03 Records Keeping and Reporting. The Public Entity shall maintain, or cause to be maintained, books, records, documents and other evidence pertaining to the costs or expenses associated with the Project, and compliance with the requirements contained in this Agreement, the Declaration, the G.O. Compliance Legislation, and the Commissioner's Order, and upon request shall allow, or cause the entity which is maintaining such items to allow, the State Entity, auditors for the State Entity, the Legislative Auditor for the State of Minnesota, or the State Auditor for the State of Minnesota, to inspect, audit, copy, or abstract, any and all of its books, records, papers, or other documents relevant to the Grant. The Public Entity shall use, or cause the entity which is maintaining such books and records to use, generally accepted accounting principles in the maintenance of such books and records, and shall retain, or cause to be retained, all of such books, records, documents and other evidence for a period of five (5) years from the date that the Facility is fully completed and placed into operation. Section 5.04 Inspection of Facility. The Public Entity shall, upon request, allow, and will require any entity to whom it leases any portion of the Facility to allow, the State Entity to inspect the Facility. Section 5.05 Data Practices. The Public Entity agrees, with respect to any data which it possesses regarding the Grant, the Project, or the Facility, to comply with all of the provisions 17 RESOLUTION NO. EXHIBIT A and restrictions contained in the Minnesota Government Data Practices Act contained in Chapter 13 of the Minnesota Statutes, as such may be amended, modified or replaced. The Public Entity further agrees to indemnify, save, and hold the State Entity, the Finance Commissioner, and the State of Minnesota, their agents and employees, harmless from all claims arising out of, resulting from, or in any manner attributable to any violation of any provision of the Minnesota Government Data Practices Act, including legal fees and disbursements paid or incurred to enforce the provisions contained in this Section. Section 5.06 Non - Discrimination. The Public Entity agrees to not engage in discriminatory employment practices with respect to the Project, and it shall, with respect thereto, fully comply with all of the provisions contained in Minn. Stat. §§ 363.03 & 181.59 (1994 & 1995 Supp.), as such may subsequently be amended, modified or replaced. Section 5.07 Worker's Compensation. The Public Entity agrees to fully comply with all of the provisions relating to worker's compensation contained in Minn. Stat. §§ 176.181 Subd. 2, & 176.182 (1994 & 1995 Supp.), as such may subsequently be amended, modified or replaced, with respect to the Project. Section 5.08 Antitrust Claims. The Public Entity hereby assigns to the State Entity and the Finance Commissioner any and all claims it may have for over charges as to goods and/or services provided in conjunction with the Project which arise under the antitrust laws of the State of Minnesota or of the United States of America. Section 5.09 Review of Plans and Cost Estimates. The Public Entity and the State Entity agree to comply with all of the applicable provisions and requirements contained in Minn. Stat. § 16B.335 (1994 & 1995 Supp.), as such may subsequently be amended, modified or replaced, for the Project, and in accordance therewith the Public Entity and the State Entity agree to comply with the following provisions and requirements. A. The Public Entity shall provide any and all information which the State Entity may request in order for the State Entity to determine that the Project will comply with the provisions and requirements contained in Minn. Stat. § 16B.335 (1994 & 1995 Stipp), as such may subsequently be amended, modified or replaced. B. The Public Entity shall, prior to its proceeding with design activities for the Project, prepare a predesign package and submit it to the Commissioner of Administration for the State of Minnesota for review and comment. Such predesign package must be sufficient to define the scope, cost, and projected schedule for the Project, and must 1$ RESOLUTION NO. EXMBIT A demonstrate that the Project has been analyzed according to appropriate space and needs . standards. Any substantial changes to such predesign package must be submitted to the Commissioner of Administration for the State of Minnesota for review and comment. C. If the Project includes the construction of a new building, substantial alteration of the exterior dimensions or interior configuration of an existing building, or the acquisition of land, then the Public Entity shall not prepare final plans and specifications until it has prepared a program plan and cost estimates for all elements necessary to complete the Project and presented them to the Chairs of the Minnesota State Senate Finance Committee and Minnesota House of Representatives Ways and Means Committee and such chairs have made their recommendations, and it has notified the. Chair of the Minnesota House of Representatives Capital Investment Committee. Such program plan and cost estimates must note any significant changes in the work to be performed on the Project, or in its costs, which have arisen since the appropriation for the Project'was enacted or which differ from any predesign submittal. Provided, however, the provisions and requirements contained in this Section 5.09.0 shall not apply to the construction, renovation, or improvements to dams, highway rest areas, truck stations, storage facilities not consisting primarily of offices or heated work areas, trails, bike paths, sewer separation projects, water and wastewater facilities, campgrounds, roads, bridges, or any other capital project with a construction cost of less than Two Hundred Thousand and No /100 Dollars ($200,000.00). D. The Public Entity must notify the Chairs of the Minnesota State Senate Finance Committee, the Minnesota House of Representatives Capital Investment Committee and the Minnesota House of Representatives Ways and Means Committee of any significant changes to the program plan and cost estimates referred to in Section 5.09.0 hereinabove. E. The program plan and cost estimates referred to in Section 5.09.0 hereinabove must ensure that the Project will comply with all applicable. energy conservation standards contained in law, including Minn. Stat. §§ 216C.19 to 216C.21 (1994 & 1995 Supp.), as such may subsequently be amended, modified or replaced. F. If any of the proceeds of the Grant are to be used for the construction or remodeling of the Facility, then both the predesign package referred to in Section 5.093 hereinabove and the program plan and cost estimates referred to in Section 5.09.0 hereinabove must include provisions for cost - effective information technology investments 19 RESOLUTION NO. EX MIT A that will enable the occupant of the Facility to reduce its need for office space, provide more of its services electronically, and decentralize its operations where such provisions are deemed necessary by the Information Policy Office of the Department of Administration for the State of Minnesota. G. If the Project does not involve the construction of a new building, the substantial alteration of the exterior dimensions or interior configuration of an existing building, or the acquisition of land, then prior to beginning work on the Project the Public Entity shall just notify the Chairs of the Minnesota State Senate Finance Committee, the Minnesota House of Representatives Capital Investment Committee and the Minnesota House of Representatives Ways and Means Committee that the work to be performed is ready to begin. H. The Project must be; (i) completed in accordance with the program plan and cost estimates referred to in Section 5.09.0 hereinabove, (ii) completed in accordarice with the time schedule contained in the program plan referred to in Section 5.09.0 hereinabove, and (iii) completed within the budgets contained in the cost estimates referred to in Section 5.09.0 hereinabove. I. The proceeds of the Grant will not be disbursed until (i) the predesign package referred to in Section 5.093 hereinabove has been reviewed by and received a favorable recommendation from the Commissioner of Administration for the State of Minnesota, (ii) the program plan and cost estimates referred to in Section 5.09.0 hereinabove have received a recommendation by the Chairs of the Minnesota State Senate Finance Committee and Minnesota House of Representatives Ways and Means Committee, and (iii) the Chair of the Minnesota House of Representatives Capital Investment Committee has been notified pursuant to Section 5.09.G hereinabove. Section 5.10 Prevailing Wages. The Public Entity agrees to comply with all of the applicable provisions contained in Chapter 177 of the Minnesota Statutes, and specifically those provisions contained in Minn. Stat. §§ 177.41 through 177.43 (1994), as such may subsequently be amended, modified or replaced. Section 5.11 Liability. The Public Entity and the State Entity do both agree that they will be responsible for their own acts and the results thereof to the extent authorized by law, and they shall not be responsible for the acts of the other party and the results thereof. The Public Entity acknowledges and agrees that the liability of both the State Entity and the Finance 20 RESOLUTION NO. EXHIBIT A Commissioner is governed by the provisions contained in Minn. Stat. § 3.736 (1994), as such • may subsequently be amended, modified or replaced. Section 5.12 Relationship of the Parties. Nothing contained in this Agreement is intended or should be construed in any manner as creating or establishing the relationship of co- partners or a joint venture between the Public Entity, the State Entity, or the Finance Commissioner, nor shall the Public Entity be considered or deemed to be an agent, representative, or employee of either the State Entity, the Finance Commissioner, or the State of Minnesota in the performance of this Agreement, the completion of the Project, or operation of the Facility. The Public Entity represents that it has already secured, or will secure or cause to be secured, all personnel and/or persons required for the performance of this Agreement and the completion of the Project. Any and all personnel of the Public Entity, or other persons, while engaging in the performance of this Agreement, the completion of the Project, or the operation and/or maintenance, of the Facility, shall not have any contractual relationship with either the State Entity, the Finance Commissioner, or the State of Minnesota, and shall not be considered employees of any such entities. In addition, any and all claims that may or might arise on behalf of said personnel or other persons while so engaged arising out of employment, or alleged employment, including, but not limited to, claims under the Workers' Compensation Act of the State of Minnesota, claims of discrimination against the Public Entity, its officers, agents, contractors, or employees shall in no way be the responsibility of either the State Entity, the Finance Commissioner, or the State of Minnesota. Such personnel or other persons shall not require nor be entitled to any compensation, rights or benefits of any kind whatsoever fr om either the State Entity, the Finance Commissioner, or the State of Minnesota, including, but not limited to, tenure rights, medical and hospital care, sick and vacation leave, Workers' Compensation, Unemployment Compensation, disability benefits, severance pay and retirement benefits. Section 5.13 Notices. In addition to any notice required under - applicable law to . be given in another manner, any notices required hereunder must be in writing, and shall be sufficient if personally served or sent by prepaid, registered, or certified mail (return receipt requested), to the business address of the party to whom it is directed. Such business address shall be that address specified hereinbelow, or such different address as may hereafter be specified, by either party by written notice to the other: 21 RESOLUTION NO. EXIMIT A To the Public Entity at: City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Attention: Michael McCauley, City Manager To the State Entity at: Department of Administration 200 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 Attention: Larry Freund, Financial Management & Reporting Director To the Finance Commissioner at: Minnesota Department of Finance 400 Centennial Office Bldg. 658 Cedar St. St. Paul, MN 55155 Attention: Commissioner of Finance Section 5.14 Assignment or Modification. This Agreement and the Declaration shall be binding upon and inure to the benefit of the Public Entity and the State Entity, and their 22 RESOLUTION NO. EXIIMIT A S respective successors and assigns. Provided, however, that neither the Public Entity nor the State Entity may assign any of its rights or obligations under this Agreement or the Declaration without the prior written consent of the other party. No change or modification of the terms or provisions of this Agreement or Declaration shall be binding on either the Public Entity or the State Entity unless such change or modification is in writing and signed by an authorized official of the party against which such change or modification is to be imposed. Section 5.15 Waiver. Neither the failure by the Public Entity, the State Entity, or the Finance Commissioner, as. a third party beneficiary of this Agreement, in any one or more instances, to insist upon the complete and total observance or performance of any term or provision hereof, nor the failure of the Public Entity, the State Entity, or the Finance Commissioner, as a third party beneficiary of this Agreement, to exercise any right, privilege, or remedy conferred hereunder, or afforded by law, shall be construed as waiving any breach of such term, provision, or the right to exercise such right, privilege, or remedy thereafter. In addition, no delay on the part of either the Public Entity, the State Entity, or the Finance Commissioner, as a third party beneficiary of this Agreement, in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy preclude other or further exercise thereof, or the exercise of any other right or remedy. Section 5.16 Entire Agreement. This Agreement and the D eclaration embody the entire agreement between the Public Entity and the State Entity, and there are no other agreements, either oral or written, between the Public Entity and the State Entity on the subject matter hereof. Section 5.17 Choice of Law and Venue. All matters, whether sounding in tort or in contract, relating to the validity, construction, performance, or enforcement of this Agreement or the Declaration shall be controlled by and determined in accordance with the laws of the State of Minnesota. Public Entity agrees and consents that all legal actions initiated with respect to or arising from any provision contained in this Agreement shall be initiated, filed and venued in the State of Minnesota District Court located in the City of St. Paul, County of Ramsey, State of Minnesota. Section 5.18 Severability. If any term or provision of this Agreement is finally judged by any court to be invalid, the remaining terms and provisions shall remain in full force and effect, and they shall be interpreted, performed, and enforced as if said invalid provision did not appear herein. 23 RESOLUTION NO. EXIiIBIT A Section 5.19 Time of Essence. Time is of the essence with respect to all of the matters i contained in this Agreement. Section 5.20 Counterparts. This Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall be an original, but such counterparts shall together constitute one and the same instrument. Section 5.21 Matching Funds. The Public Entity must obtain and supply the following matching funds, if any, for the completion of the Project: NONE Any and all matching funds which are intended to meet the above delineated requirements must either be in the form of (i) cash monies, (ii) legally binding commitments for monies, or (iii) equivalent funds or contributions, including equity, which have been, or will be, used to complete and/or pay for the Project. ' , Section 5.22 Third -Party Beneficiary. The Public Entity and the State Entity agree that the public program to be operated in conjunction with the Facility will benefit the State of Minnesota, and the provisions and requirements contained herein are for the benefit of both the State Entity and the State of Minnesota. Therefore such entities acknowledge and agree that the State of Minnesota, by and through its Commissioner of Finance, is and shall be a third -party beneficiary of this Agreement. Section 5.23 Additional Requirements. The Public Entity and the State Entity agree to comply with the following additional requirements. NONE (THE REMAINING PORTION OF THIS PAGE WAS INTENTIONALLY LEFT BLANK) 24 RESOLUTION NO. EXI -IIBIT A IN TESTIl�1ONY HEREOF, the Public Entity and the State Entity have executed this Grant Agreement on the day and date indicated immediately below their respective signatures. PUBLIC ENTITY: City of Brooklyn Center, a statutory city. By: Its: And: Its: STATE ENTITY: Minnesota Department of Administration, • By: Its: Approved as to form and execution: Assistant Attorney General Approved by Department of Finance • 25 RESOLUTION NO. EXHIBIT A Exhibit A DECLARATION The undersigned, as owner of fee title to the real property legally described on Exhibit A, which is attached hereto and made a part hereof ( "Property "), hereby declares that title to the Property is hereby subject to the following restriction: The Property is bond financed property within the meaning of Minn. Stat. § 16A.695, as amended from time to_ time, is subject to the encumbrance created and requirements imposed thereby, and cannot be sold or otherwise disposed of by the public officer or agency which has jurisdiction over it or owns it without the approval of the Minnesota Commissioner of Finance, which approval must be evidenced by a written statement signed by the Commissioner of Finance and attached to the deed or instrument used to sell or otherwise dispose of the Property. Title to the Property shall remain subject-to this restriction until; (i) the restriction has been fully complied with as evidenced by a written approval from the Minnesota Commissioner of Finance, or (ii) a written release, releasing the Property from the restriction, signed by the Minnesota Commissioner of Finance, is recorded in the real estate records relating to the Property. i (SIGNATURE BLOCK AND ACKNOWLEDGMENT) This Declaration was drafted by: Marlys Christofferson Department of Administration 309 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 26 RESOLUTION NO. EXIiIBIT A Exhibit B _ LEGAL DESCRIPTION • • 27 City Council Agenda Item No. Sd • Member introduced the following resolution and 18 moved its adoption: RESOLUTION NO. RESOLUTION APPROVING THE CONTRACT FOR MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT EMPLOYEES' UNION, LOCAL #320 (DEPARTMENT HEADS) AND THE CITY OF BROOKLYN CENTER FOR THE CALENDAR YEARS 1998 & 1999 WHEREAS, Section 2.07 of the City Charter for the City of Brooklyn Center states that the City Council is to fix the salary or wages of all officers and employees of the City; and WHEREAS, an Arbitrator has awarded to Teamsters Employees' Union, Local #320 (Department Heads) a contract for the years 1998 and 1999 as attached; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center to authorize the Mayor and City Manager to execute the attached contract with Teamsters Local #320 (Department Heads) for calendar years 1998 and 1999 pursuant to the Arbitrator's award; and BE IT FURTHER RESOLVED that authorized wage and benefit adjustments not to exceed the maximum contained herein shall become effective according to the schedule of the contract which commences January 1, 1998. 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. ti 0 AG RE M BETWEEN THE CITY OF BROOKLYN CENTER AND MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT EMPLOYEES' UNION, LOCAL #320 (DEPARTMENT HEADS) Q e �c a `9w TE S ocx • Effective January 1, 1998 through December 31, 1999 TABLE OF CONTENTS ARTICLE PAGE I PURPOSE OF AGREEMENT .. ..............................1 II RECOGNITION ... ..............................1 III DEFINITIONS ............ ..............................1 IV EMPLOYER AUTHORITY .... ..............................2 V UNION SECURITY ....................................... 2 VI EMPLOYEE RIGHTS - GRIEVANCE PROCEDURE .................. 3 VII SAVINGS CLAUSE ......... ..............................5 VIII DISCIPLINE ............ ............................... 5 IX SALARIES .............. ..............................6 X SICK LEAVE ............. ..............................6 • XI JURY DUTY /PUBLIC DUTY ............................... 7 XII LAYOFFS ............... ..............................8 XIII HOLIDAYS .............. ..............................8 XIV VACATION .............. ..............................9 XV INSURANCE ............. .............................10 XVI LEAVE WITHOUT PAY .............................. ...10 XVII MILEAGE REIMBURSEMENT /CAR ALLOWANCE ................. 10 XVIII EMPLOYEE TRAINING .... ............................... 11 XIX RETIREMENT PAID HEALTH INSURANCE ..................... 12 XX WAIVER ............... .............................12 XXI DURATION ............. .............................13 APPENDIX A ....... ............................... 15 -16 • i • ARTICLE I. PURPOSE OF AGREEMENT This Agreement is made and entered into between the City of Brooklyn Center, hereinafter called the "EMPLOYER", and the Minnesota Teamsters Public and Law Enforcement Employees' Union, Local No. 320, hereinafter referred to as the "UNION ", The parties hereto agree as follows: It is the intent and purpose of this Agreement to: 1.1 Establish procedures for the resolution of disputes regarding the interpretation and /or application of the provisions set forth in this Agreement; and 1.2 Express in written form an Agreement between the parties on terms and conditions of employment for the duration of the Agreement. ARTICLE II. RECOGNITION 2.1 The Employer recognizes the Minnesota Teamsters Public and Law Enforcement Employees' Union, Local No. 320 as the exclusive representative, of all public employees who are within the meaning of Minnesota State Statute, Section 179A.03, Subdivision 14 for all Department Heads, Assistant Department Heads • and Division Heads under Bureau of Mediation Services (BMS) Case #95 -PCE- 1680 excluding Confidential employees. 2.2 In the event the Employer and the Union are unable to agree as to the inclusion or exclusion of a new job class, the issue shall be submitted to the Bureau of Mediation Services for determination. ARTICLE III. DEFINITIONS 3.1 UNION: Minnesota Teamsters Public and Law Enforcement Employees' Union, Local No. 320. 3.2 UNION MEMBER: A member of the Minnesota Teamsters Public and Law Enforcement Employees' Union, Local No. 320. 3.3 EMPLOYEE: A member of the exclusively recognized bargaining unit. 3.4 EMPLOYER: The City of Brooklyn Center. 3.5 PROBATIONARY PERIOD: Employees hired on or after January 1, 1996 shall serve a probationary period of twelve (12) months from the date of hire. • 1 • Probationary employees may use sick leave in accordance with Article X, and may use vacation after six months. Probationary employees may be terminated at the sole discretion of the Employer. ARTICLE IV. EMPLOYER AUTHORITY 4.1 The Employer retains the full and unrestricted right to operate and manage all personnel, facilities and equipment; to establish functions and programs; to set and amend budgets; to determine the utilization of technology; to establish and modify the organizational structure; to select, direct and determine the number of personnel; to establish work schedules; and to perform any inherent managerial functions not specifically limited by this Agreement. 4.2 Any term and condition of employment not specifically established or modified by this Agreement shall remain solely within the discretion of the Employer to modify, establish or eliminate. ARTICLE V. UNION SECURITY 5.1 The Employer shall deduct from the wages of employees who authorize such deduction in writing an amount necessary to cover monthly Union dues or a "fair share" deduction as provided by Minnesota State Statute 179A.06, Subd. 3, if the ® employee elects not to become a member of the Union. Such monies shall be remitted as directed by the Union. 5.2 The Union may designate employees from the bargaining unit to act as a Steward and an alternate and shall inform the Employer in writing of such choice and changes in the position of Steward and/or alternate. 5.3 The Employer shall make space available on the employee bulletin board's for posting Union notices and announcements. 5.4 Union Steward. The Employer agrees that the employee designated Steward under Article 6.2 of this Agreement shall be allowed a reasonable amount of duty time annually to attend to Union matters as designated by the Union in addition to the other Steward activities as provided for in this Agreement. 5.5 Identified Business Agents of the Union shall have the right to enter the facilities of the Employer so long as said visits do not interfere with the job duties and responsibilities of an Employee. 5.6 The Union agrees to indemnify and hold the Employer harmless against any and all claims, suits, orders or judgments brought or issued against the Employer as a • 2 • result of any action taken or not taken by the Employer under the provisions of this Article. ARTICLE VI. EMPLOYEE RIGHTS - GRIEVANCE PROCEDURE 6.1 DEFINITION OF A GRIEVANCE: A grievance is defined as a dispute or disagreement as to the interpretation or application of the specific terms and conditions of this Agreement. 6.2 UNION REPRESENTATIVES: The Employer will recognize representatives designated by the Union as the grievance representatives of the bargaining unit having the duties and responsibilities established by this Article. The Union shall notify the Employer in writing of the names of such Union representatives and of their successors when so designated, as provided by Section 6.2 of this Agreement. 6.3 PROCESSING OF A GRIEVANCE: It is recognized and accepted by the Union and the Employer that the processing of grievances as hereinafter provided is limited by the job duties and responsibilities of the employee and shall, therefore, be accomplished during normal working hours only when consistent with such employee duties and responsibilities. The aggrieved employee and a Union representative shall be allowed a reasonable amount of time without loss in pay when a grievance is investigated and presented to the Employer during normal • working hours provided the employee and the Union representative have notified and received the approval of the designated supervisor who has determined that such absence is reasonable and would not be detrimental to the work of the Employer. 6.4 PROCEDURE: Grievances as defined in Section 6.1 shall be resolved in conformance with the following procedure: Steo 1. An employee claiming a violation concerning the interpretation or application of this Agreement shall, within ten (10) calendar days after such alleged violation has occurred, present such grievance to the employee's supervisor as designated by the Employer. The Employer- designated representative will discuss and give an answer to such Step 1 grievance within ten (10) calendar days after receipt. A grievance not resolved in Step 1 and appealed to Step 2 shall be placed in writing setting forth the nature of the grievance, the facts on which it is based, the provision or provisions of the Agreement allegedly violated, the remedy requested, and shall be appealed to Step 2 within ten (10) calendar days after the Employer - designated Representative's final answer in Step 1. Any grievance not appealed in writing to Step 2 by the Union within ten (10) calendar days shall be considered waived. • Step 2 . If appealed, the written grievance shall be presented by the Union and . discussed with the Employer - designated Step 2 Representative. The Employer - designated Representative shall give the Union the Employer's answer in writing within ten (10) calendar days after receipt of such Step 2 grievance. A grievance not resolved in Step 2 may be appealed to Step 3 within ten (10) calendar days following the Employer - designated Representative's final answer in Step 2. Any grievance not appealed in writing to Step 3 by the Union within ten (10) calendar days shall be considered waived. Step 2a: If a grievance is not resolved at Step 2 of the grievance procedure, the parties, by mutual agreement, may submit the matter to mediation with the Bureau of Mediation Services. Submitting the grievance to mediation preserves timeliness for Step 3 of the grievance procedure. Any grievance not appealed in writing to Step 3 by the Union within ten (10) calendar days of mediation shall be considered waived. Step 3 . A grievance unresolved in Step 2a and appealed to Step 3 by the Union shall be submitted to Arbitration subject to the provisions of the Public Employment Labor Relations Act of 1971, as amended. The selection of an arbitrator shall be made in accordance with the "Rules Governing the Arbitration of Grievances," as established by the Bureau of Mediation Services. 6.5 ARBITRATOR'S AUTHORITY: a. The Arbitrator shall not have the right to amend, modify, nullify, ignore, add to or subtract from the terms and conditions of this Agreement. The arbitrator shall consider and decide only the specific issue(s) submitted in writing by the Employer and the Union and shall have no authority to make a decision on any other issue not so submitted. b. The arbitrator shall be without power to make decisions contrary to or inconsistent with or modifying or varying in any way the application of laws, rules or regulations having the force and effect of law. The arbitrator's decision shall be submitted in writing within thirty (30) days following the close of the hearing or the submission of briefs by the parties, whichever be later, unless the parties agree to an extension. The decision shall be binding on both the Employer and the Union and shall be based solely on the arbitrator's interpretation or application of the express terms of the Agreement and to the facts of the grievance presented. C. The fees and expenses for the Arbitrator's services and proceedings shall be borne equally by the Employer and the Union provided that each party shall be responsible for compensating its own representatives and 4 witnesses. If either party desires a verbatim record of the proceedings it may cause such a record to be made, providing it pays for the record. If both parties desire a verbatim record of the proceedings, the cost shall be shared equally. 6.6 WAIVER: If a grievance is not presented within the time limits set forth above, it shall be considered "waived ". If a grievance is not appealed to the next step within the specified time limit or any agreed extension thereof, it shall be considered settled on the basis of the Employer's last answer. If the Employer does not answer a grievance or an appeal thereof within the specified time limits, the Union may elect to treat the grievance as denied at that step and immediately appeal the grievance to the next step. The time limit in each step may be extended by mutual written agreement of the Employer and the Union in each step. 6.7 CHOICE OF REMEDY: If, as a result of the Employer response in Step 2, the grievance remains unresolved, and if the grievance involves the suspension, demotion, or discharge of an employee who has completed the required probationary period, the grievance may be appealed either to Step 3 of Article VI or a procedure such a Civil Service, Veterans Preference or Fair Employment. If appealed to any procedure other than Step 3 of Article VI, the grievance is not subject to the arbitration procedure as provided in Step 3 of Article VI. The aggrieved employee shall indicate in writing which procedure is to be utilized, Step • 3 of Article VI or another appeal procedure, and shall sign a statement to the effect that the choice of any other hearing precludes the aggrieved employee from making a subsequent appeal through Step 3 of Article VI. ARTICLE VII. SAVINGS CLAUSE In the event any provision of this Agreement shall be held to be contrary to law by a court of competition jurisdiction from whose final judgment or decree no appeal has been taken within the time provided, such provision shall be void. All other provisions of this Agreement shall continue in- full force and effect. The voided provision may be renegotiated at the written request of either party. ARTICLE Vill. DISCIPLINE 8.1 The Employer will discipline employees who have completed the required probationary period only for just cause: a) oral reprimand; b) written reprimand; G) suspension; d) demotion; or • 5 • e) discharge. 8.2 Suspension, demotions and discharges will be in written form. 8.3 Written reprimands, notices of suspension and notices of discharge which are to become part of an employee's personnel file shall be read and acknowledged by signature of the employee. If there has been no reoccurrence of the same offense, the letter of reprimand will be removed from the employee's file after twenty -four (24) months from the date of the offense. 8.4 Employees may examine their own individual personnel files at reasonable times under direct supervision of the Employer. 8.5 Discharges of non - veterans will be preceded by a five (5) day suspension without pay. 8.6 Employees will not be questioned concerning an investigation of disciplinary action unless the employee has had an opportunity to have a Union representative present at such questioning. 8.7 Grievances relating to this Article shall be initiated by the Union in Step 2 of the Grievance Procedure under Article VI. ARTICLE IX. SALARIES 9.1 Employees shall be paid in accordance with the attached salary pay schedules marked Appendix A (Salary). 9.2 A 3.0% Cost of Living increase for 1998 and a 3% Cost of Living increase for 1999. j 9.3 An employee may receive ten (10 %) percent in salary beyond the range in the pay plan based on merit to be awarded by the City Manager. 9.4 The starting salary, sick leave and vacation shall be. anywhere within the pay range for new hires with experience. ARTICLE X. SICK LEAVE 10.1 a. Eligibility. Sick leave with pay shall be granted to probationary and permanent employees at the rate of eight hours for each calendar month of full -time service or major fraction thereof. b. An advance of a maximum of 96 hours of sick leave which must be earned • 6 • before additional hours accumulate may be granted by the City Manager to newly hired employees who have a minimum of five years of job experience which is directly related to the position for which they are hired. 10.2 Usage. Sick leave shall be used normally for absence from duty because of personal illness or legal quarantine of the employee, or because of serious illness in the immediate family. Immediate family shall mean brother, sister, parents, parents -in -law, spouse, or children of the employee. Sick leave may be used for the purpose of attending the funeral of immediate family members plus brothers -in- law, sisters -in -law, aunts, uncles, nieces, nephews, grandparents, grandparents-in - law, and grandchildren of the employee. 10.3 Accrual: Sick leave shall accrue at the rate of eight (8) hours per month until 960 hours have been accumulated. After 960 hours have been accumulated, sick leave shall accrue at the rate of four hours per month, and simultaneously vacation leave, in addition to regular vacation leave accrual, shall accrue at the rate of two hours per month. Employees using earned vacation leave or sick leave shall be considered to be working for the purpose of accumulating additional sick leave. Workers' Compensation benefits shall be credited against the compensation due employees during sick leave. 10.4 Upon layoff from the City, full -time employee would receive 50% of accumulated • sick leave at current pay rate. Upon retirement from the City, full -time employee would receive 33% of accumulated sick leave at his /her current rate of pay. 10.5 Procedure: In order to be eligible for sick leave with pay, employees must: a. Notify their superior prior to the time set for the beginning of their normal work day. b. Keep their superior informed of their condition. C. Furnish a statement from a medical practitioner upon the request of the Employer. 10.6 Misuse Prohibited. Employees claiming sick leave when medically fit, except as otherwise specifically authorized in Section 10.2 shall be subject to disciplinary action up to the including discharge. ARTICLE XI. JURY DUTY /COURT APPEARANCE 11.1 Employees summoned for jury duty or subpoenaed to testify in court on behalf of the Employer shall receive an amount of compensation which will equal the • 7 • difference between the employee's regular pay and jury duty or witness fee compensation received. ARTICLE XII. LAYOFFS 12.1 Employees who are employed in a full -time capacity as a benefits earning employee with the City of Brooklyn Center at the time of their layoff and who will not be re- employed by the City of Brooklyn Center in another full -time position will qualify for the Severance Benefits for Laid -Off Employees Program. Employees participate in this program on a voluntary basis. 12.2 After sixty (60) calendar days prior written notice, the City Manager may lay -off permanent employees because of shortage of work or funds, abolition of positions, or other reasons outside the employee's control which do not reflect discredit on the service of the employee. Employees laid off will receive compensation equal to 25% of the last approved annual salary. 12.3 At the Employer's expense, qualified employees may, at their choosing, participate in the out placement service at the cost noted $2,500 or within six months of layoff:, whichever is reached first. Out placement services consistent of a career assessment, resume development, cover letter writing assistance, interviewing skills, networking and • developing job resources, all of which are provided bya professionally qualified out placement service. 12.4 The qualified employees will be allowed to continue health and life insurance coverage held at the time of layoff pursuant to COBRA law. The City will pay the portion of the premium costs for which other City employees are eligible for a period of three months after the lay -off date or earlier if other coverage is provided by another employer. ARTICLE XIM HOLIDAYS 13.1 The holidays shall be as follows: New Year's Day Martin Luther King Day President's Day Memorial Day Independence Day Labor Day Floating Holiday Veteran's Day Thanksgiving Day Day after Thanksgiving Christmas Day Floater Holiday 13.2 The scheduling of a floating holiday is subject to prior approval of the employee's supervisor. The floating holiday must be taken within the calendar year and shall _g_ not carry over from year to year. 13.3 When New Year's Day, Independence Day, Veterans Day, or Christmas Day falls on Sunday, the following day shall be observed as a holiday. When they fall on Saturday, the preceding day shall be observed as a holiday. Employees absent from work on the day following or the day preceding such a three -day holiday weekend without the express authorization of the Employer shall forfeit rights to holiday pay for that holiday. 13.4 To be eligible for holiday pay, employees must have been on paid status on the day before and the day after the holiday. Paid status includes paid vacation or other paid leave for which the employee received prior approval. 13.5 An employee shall have the option to work a Holiday in exchange for a floater holiday with the approval of the City Manager. ARTICLE XIV. VACATION 14.1 Amount. Permanent employees shall earn vacation leave at a rate of 6.67 hours for each calendar month of full -time service or major fraction thereof. Permanent employees with five consecutive years of service through ten consecutive years of service shall earn vacation at the rate of 120 hours per year. Permanent employees with more than ten consecutive years of service shall earn vacation leave according to the following schedule: During 11 th year of service 128 hours per year During 12th year of service 136 hours per year During 13th year of service 144 hours per year During 14th year of service 152 hours per year During 15th year of service 160 hours per year Employees using earned vacation leave or sick leave shall be considered to be working for purposes of accumulating additional vacation leave. 14.2 Usage. Vacation leave may be used as earned, except that the Employer shall approve the time at which the vacation leave may be taken. 14.3 All unused vacation shall be paid out at the end of each calendar year, at the discretion of each employee. Each employee will be allowed to accumulate vacation and carry up to 230 hours from year to year, however, employees must use 80 hours vacation per calendar year unless otherwise approved by the City Manager. • 9 • ARTICLE XV. INSURANCE 15.1 1998 - The City will contribute, effective with insurance premiums due January 1, 1998, payment of an amount not to exceed $375.00 per month per employee toward the cost of coverage under the Brooklyn Center group hospital/medical insurance plans and group dental insurance as fringe benefit compensation for full -time employees and eligible dependents. Dental insurance not to exceed $30 per month. In addition, the City will provide a $10,000 group term life insurance policy. 15.2 1999 - The City will contribute, effective with insurance premiums due January 1, 1999, payment of an amount not to exceed $400.00 per month per employee toward the cost of coverage under the Brooklyn Center group hospital /medical insurance plans and group dental insurance as fringe benefit compensation for full -time employees and eligible dependents. Dental insurance not to exceed $30 per month. In addition, the City will provide a $10,000 group term life insurance policy. 15.3 City will provide long term disability at 60% of the employee's base salary. ARTICLE XVI. LEAVE WITHOUT PAY 16.1 Leaves of absence without pay may be granted by the Employer where the best • interests of the City will not be harmed. Such leaves shall not exceed periods of ninety (90) calendar days unless based on disability or other good reasons. Vacation and sick leave benefits shall not accrue during periods of leaves of absence without pay. 16.2 Employees are obligated to return to work on the first work day following the period of approved leave unless prior approval for an extension of the leave has been granted by the Employer. 16.3 All City contributions toward employee leave accruals and insurance coverages will cease for non - medical [eaves without pay. Insurance benefits will continue if fully subsidized by the employee except that the City Manager may authorize the continuation of the City's contribution for employee insurance premiums during a leave of absence for medical reasons. If the employee chooses not to continue insurance coverage during a non - medical leave of absence upon return the insurance coverage will start the first day of the month following thirty days of re- employment. ARTICLE XVII. MILEAGE REIMBURSEMENT /CAR ALLOWANCE 17.1 Employees of the City who are required to drive a City vehicle to their home and keep it there while off duty to respond to emergency situations cannot use for City 10 • vehicles for their personal use. The employees who are authorized to keep a City vehicle at their home on a regular basis while off duty are as follows: 1. Chief of Police 2. Fire Chief 3. Police Captains 4. Liquor Stores Manager 17.2 Employees who, in conduct of official City Business, are authorized or required to use their personal automobiles for transportation shall be reimbursed at the rate consistent with IRS regulations for mileage incurred in the conduct of such business. An itemized mileage expense claim must be submitted to the City Manager for approval. ARTICLE XVIII. EMPLOYEE TRAINING 18.1 The Employer will reimburse to employees attending job - related courses who have been employed by the City of Brooklyn Center, on a full -time basis of a period of at least 18 months, 60% of the cost incurred by the Employee for the payment of tuition, fees, and purchases of textbooks required for such courses, provided the conditions listed below are met. Employees who have been employed by the City of Brooklyn Center or a full -time basis with at least two (2) complete years of employment will receive 75% of the cost incurred for tuition, fees, and textbooks, provided the following conditions have been met: a. The course has been approved by the City Manager prior to registration for, or participation in the course. b. The employee attains a grade of "C" or better in the course: or in those cases where grades are not assigned, the employee must show proof of satisfactory completion of the course. C. The employee has submitted, on forms to be provided by the City Manager's office, a written critique of the course, stated the value of the training to his /her position, and made such suggestions as may be pertinent for the conduct of future training sessions. d. The attendance of the employee at course sessions has been satisfactory. e. Individuals who are receiving compensation or reimbursement for education costs from the federal or state government shall not be eligible for additional reimbursement from the City. 11 18.2 In those instances where the City Manager deems it necessary or advisable that an • employee attend training sessions, the City shall pay all costs for fees, tuition and textbooks. The employee shall attend such courses or training sessions on his /her regular work time, or if such courses are only after regular work hours, compensatory time shall be granted to the employee. Upon completion of the training, the employee shall submit a critique of the course as required in paragraph "c" above. ARTICLE XIX. RETIREMENT PAID HEALTH INSURANCE The Employer shall provide to members of this bargaining unit the same contribution the Employer provides for other City employees. ARTICLE XX. WAIVER 20.1 Any and all prior agreements, resolutions, practices, policies, rules and regulations regarding terms and conditions of employment, to the extent inconsistent with the provisions of this Agreement, are hereby superseded. 20.2 The parties mutually acknowledge that during the negotiations which resulted in this Agreement, each had the unlimited right and opportunity to make demands and proposals with respect to any terms or conditions of employment not removed by law from bargaining. All agreements and understandings arrived at by the parties are set forth in writing in this Agreement for the stipulated duration of this Agreement. The Employer and the Union each voluntarily and unqualifiedly waives the right to meet and negotiate regarding any and all terms and conditions of employment referred to or covered in this Agreement or with respect to any term or condition of employment not specifically referred to or covered by this Agreement, even though such terms or conditions may not have been within the knowledge or contemplation of either or both parties at the time this contract was negotiated or executed. 12 ARTICLE XXI. DURATION The Agreement shall remain in full force and effect for a period commencing January 1. 1998 through December 31, 1999. In the event a new Agreement is not in effect January 1, 2000 all compensation, working conditions and benefits shall remain in effect as set forth in this Agreement until a successor Agreement is effected. 9 9 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on this day of , 1998. CITY OF BROOKLYN CENTER TEAM TERS LOCAL #320 IJ I APPENDIX A DEPARTMENT HEADS SALARY SCHEDULE - 1998 YEARLY RATES DIRECTOR OF PUBLIC SERVICES $65,940 $81,435 DIRECTOR OF FINANCE /CITY TREASURER $61,312 $75,720 CHIEF OF POLICE $59,721 $73,755 DIRECTOR OF COMMUNITY DEVELOPMENT $56,002 $69,161 COMMUNITY ACTIVITIES, RECREATION & SERVICES DIR. $55,320 $68,320 FIRE CHIEF $52,054 $64,287 MONTHLY RATES STEP A STEP B STEP C STEP D STEP E STEP F STEP G CITY ENGINEER $4,725 $4,961 $5,209 $5,340 $5,473 $5,610 $5,750 CITY ASSESSOR $4,497 $4,722 $4,958 $5,082 $5,209 $5,339 $5,472 POLICE CAPTAIN $4,388 $4,607 $4,838 $4,959 $5,083 $5,210 $5,340 ASSISTANT DIR. OF FINANCE $4,281 $4,495 $4,720 $4,838 $4,959 $5,083 $5,210 LIQUOR OPERATIONS MANAGER $4,075 $4,279 $4,493 $4,605 $4,720 $4,838 $4,959 EARLE BROWN HERITAGE CENTER MANAGER $3,783 $3,972 $4,171 $4,275 $4,382 $4,492 $4,604 STAFF SERVICES SUPERVISOR $2,678 $2,812 $2,953 $3,027 $3,103 $3,180 $3,260 14 APPENDIX A DEPARTMENT HEADS SALARY SCHEDULE - 1999 YEARLY RATES DIRECTOR OF PUBLIC SERVICES $67,918 $83,878 DIRECTOR OF FINANCE /CITY TREASURER $63,151 $77,992 CHIEF OF POLICE $61,513 $75,968 DIRECTOR OF COMMUNITY DEVELOPMENT $57,682 $71,236 COMMUNITY ACTIVITIES, RECREATION & SERVICES DIR. $56,980 $70,370 FIRE CHIEF $53,616 $66,216 MONTHLY RATES STEP A STEP B STEP C STEP D STEP E STEP F STEP G CITY ENGINEER $4,867 $5,110 $5,366 $5,500 $5,637 $5,778 $5,923 CITY ASSESSOR $4,632 $4,863 $5,106 $5,234 $5,365 $5,499 $5,637 POLICE CAPTAIN $4,520 $4,746 $4,983 $5,107 $5,235 $5,366 $5,500 ASSISTANT DIR. OF FINANCE $4,409 $4,630 $4,861 $4,983 $5,108 $5,235 $5,366 LIQUOR OPERATIONS MANAGER $4,197 $4,407 $4,627 $4,743 $4,862 $4,983 $5,108 EARLE BROWN HERITAGE CENTER MANAGER $3,897 $4,091 $4,296 $4,403 $4,513 $4,626 $4,742 STAFF SERVICES SUPERVISOR $2,759 $2,897 $3,042 $3,118 $3,196 $3,275 $3,357 15 City Council Agenda Item No. 8e • s . MEMORANDUM DATE: November 4, 1998 TO: Michael J. McCauley, City Manager FROM: Diane Spector, Director of Public Works SUBJECT: Preliminary Design Parameters, Improvement Project No. 1999 -05, 53rd Avenue Trail A preliminary design of the 53rd Avenue trail, greenway, and fence has been developed and is presented for Council review and approval. Options for some of the design elements have been prepared, and a decision by the council is requested at this time so that staff can prepare a final design. These design options regarding the 53rd Avenue trail and greenway and the fence between the greenway and the new lots on Bellvue Lane were mailed for public comment to all property owners in the area between Humboldt Avenue and I -94, from 53rd Avenue to 57th Avenue. In addition, an open house was held on Thursday, October 29, 1998, with a separate meeting with a representative from the Bellvue Neighborhood Association. • Design elements are described below. Attached are color renderings which provide some idea of g g p the look of the fence and its relationship to the houses and greenway. These renderings are for preliminary illustration purposes only. Greenway The greenway will be approximately 62 -65 feet wide from the back property lines of the new parcels to the back of the curb on 53rd (50 foot greenway plus 12 -15 feet of boulevard). The existing concrete sidewalk will be removed. The greenway can be thought of as two areas: the "front half," or the area from 53rd Avenue to about the middle, and the "back half," or the area from the middle of the greenway to the fence. The 10 foot trail will meander through the "front half," while the "back half' will be gently rolling with a slight rise. The fence will be offset from the property lines 12 -18 inches. This offset will allow the fence and columns to be located entirely on the greenway. As many of the healthy, attractive mature trees as possible will be retained. Additional landscaping will fill in gaps and will also be used to provide some screening and privacy. Ornamental trees and shrub rose plantings similar to those at Cahlander Park will be added. Also a possibility are naturalized low- maintenance spring bulbs such as daffodils and crocus. The greenway will be irrigated. A City entrance sign will be constructed in the area which was • formerly 4th Street. The trail will continue across the freeway bridge, across the City -owned parcel at Lyndale and 53rd, and cross Lyndale to the North Mississippi Regional Park trail. Fence The fence which is proposed is a five foot, black, industrial grade aluminum double rail fence, with stone columns every 32 feet. Two materials for the fence columns have been proposed, fieldstone and chipped face block. Additional ideas discussed were traditional brick, and limestone block. Almost all the persons at the open house who expressed an opinion preferred the fieldstone alternative. Some g hotos of other existing fences illustrating design detail are P attached for information. Because of the lot widths, it would not be possible to line up the columns on the property corners. Property owners desiring a back yard fence could bring their fence up to the 53rd Avenue fence and meet it perpendicularly. Restrictive covenants on the properties (see EDA item on terms of sale) would prohibit the property owners from erecting a fence parallel to the 53rd Avenue fence on their back yard lot line. City Entry Sign A City entry sign has not yet been designed, but is conceptualized as a fieldstone monument with an engraved wooden Brooklyn Center sign. As an alternative, a fieldstone planter such as those recently constructed at Palmer Lake and Evergreen would also work. The name portion of the park signs will either be fabricated in -house or purchased this winter, and will be either a steel I -beam type sign similar to Cahlander Park, or engraved wood. Council direction on the entry sign would be helpful so we can start developing design options for approval at a future Council meeting. Summary Council decision areas are: 1) The concept of "rolling terrain" in the "back half' of the greenway, with the trail confined to the "front half." 2) A landscaping theme of mature trees, ornamental trees, shrub roses, and naturalized bulbs. 3) Five foot, black industrial strength aluminum double rail fence. 4) Stone columns every 32 feet. 5) Column material: field stone, chipped face block, limestone, brick. 6) Entry sign: monument, planter, other. i Photos referenced in memo will be delivered tomorrow. 1 • • a i E% HSE EX GAR I � 10�B1T D/W F --- -- --- -- 0 1 w I I BUILDING BELLVUE PARK PAD ; I .J > X HSE EX HSE z I o ` �� Q 10'CONC D/W 1 ' 10'817 p jW C BELLVUE LANE z BUILDING 2 PAD Q C; ----- - - - - -- ` BUILDING ; ; BUILDING ; BUILDING ; ; BUILDING ; BUILDING PAD ' PAD PAD ' PAD PAD ' BUILDING PAD BUILDING / . 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