HomeMy WebLinkAbout2013 07-22 CCP Regular SessionAGENDA
CITY COUNCIL STUDY SESSION
July 22, 2013
6:00 p.m.
City Council Chambers
A copy of the full City Council packet is available to the public. The packet ring binder is
located at the front of the Council Chambers by the Secretary.
1.City Council Discussion of Agenda Items and Questions
2.Miscellaneous
3.Discussion of Work Session Agenda Items as Time Permits
4.Adjourn
CITY COUNCIL AGENDA -2- July 22, 2013
Resolution Accepting Work Performed and Authorizing Final Payment,
Improvement Project No. 2012-10, Earle Brown and Opportunity Area Street
Lighting Replacement
g. Resolution Establishing Improvement Project Nos. 2014-01, 02, 03, and 04,
Wangstad Park Area Street and Utility Improvements
7.Presentations/Proclamations/Recognitions/Donations
a. Resolution Expressing Appreciation for the Donations of the Brooklyn Center
Walmart Store in Support of the Earle Brown Days Celebration
Requested Council Action:
—Motion to adopt resolution.
8.Public Hearings
a. Resolution Authorizing the Issuance of Revenue Bonds for Odyssey Academy
Project Under Minnesota Statutes, Sections 469.152Through 469.1655 and
Approving Related Documents
—This item was published in the official newspaper on July 4, 2013, and is offered
this evening for Public Hearing.
Requested Council Action:
—Motion to open Public Hearing.
—Motion to take public input.
—Motion to close Public Hearing.
—Motion to adopt resolution.
9. Planning Commission Items
a. Planning Commission Application No. 2013-008 Submitted by the Luther
Company, LLLP. Request for Site and Building Plan Approval of the New
Luther Brookdale Volkswagen Automobile Dealership Facility (6801 and 6837
Brooklyn Boulevard). The Planning Commission recommended approval of this
application at its July 11, 2013, meeting.
1. Resolution Regarding the Recommended Disposition of Planning
Commission Application No. 2013-008 Submitted by the Luther
Company, LLLP Requesting Site and Building Plan Approval of the New
Luther Brookdale Volkswagen Automobile Dealership Facility (6801 &
6837 Brooklyn Boulevard)
Requested Council Action:
—Motion to adopt resolution.
CITY COUNCIL AGENDA -3- July 22, 2013
b. Resolution Regarding the Recommended Disposition of Planning Commission
Application No. 2013-011 Submitted by the Luther Company, LLLP, the
Preliminary Approval of a PUD Amendment to the 2008 Luther Auto Toyota-
Honda Planned Unit Development by Incorporating Three Parcels of Land Area
(Totaling 1.78 Acres) Into the New Honda Automobile Dealership Site and
Includes a Proposed Site Development Plan to Provide Additional Vehicle
Storage Area for the Honda Dealership (All for the Properties Located at 3955,
4001 & 4007 — 69 th Avenue North)
Requested Council Action:
—Motion to adopt resolution.
c. Resolution Regarding the Recommended Disposition of Planning Commission
Application No. 2013-010 - Submitted by the Luther Company, LLLP to Rezone
Properties from R3-Multiple Family Residence to PUD/C2-Planned Unit
Development/ Commerce District
Requested Council Action:
—Motion to adopt resolution.
1. An Ordinance Amending Chapter 35 of the City Code of Ordinances
Regarding the Zoning Classification of Certain Land Generally Located at
3955, 4001 & 4007 — 69 th Avenue North
Requested Council Action:
—Motion to approve first reading and set second reading and Public
Hearing for August 12, 2013.
d. Resolution Adopting a Policy for Implementing Certain Architectural Design
Guidelines Which Encourage Active Living Principles for the City of Brooklyn
Center
Requested Council Action:
—Motion to adopt resolution.
10. Council Consideration Items
a.Mayoral Appointment of Alternate Commissioner to Serve on Shingle
Creek/West Mississippi Watershed Management Commissions
Requested Council Action:
—Motion to ratify Mayoral nomination.
b.Consideration of Type IV 6-Month Provisional
Humboldt Avenue North A202
1. Resolution Approving a Type IV Rental L
Avenue North A202
Requested Council Action:
—Receive staff report.
—Motion to open hearing.
—Receive testimony from applicant.
—Motion to close hearing.
—Motion to adopt resolution.
Rental License for 6819
icense for 6819 Humboldt
CITY COUNCIL AGENDA -4- July 22, 2013
c. Consideration of Type IV 6-Month Provisional Rental License for 6906 Newton
Avenue North
Requested Council Action:
—Receive staff report.
—Motion to open hearing.
—Receive testimony from applicant.
—Motion to close hearing.
—Take action on rental license application and mitigation plan.
11.Council Report
12.Adjournment
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
JOINT WORK SESSION WITH FINANCIAL COMMISSION
JULY 1, 2013
CITY HALL - COUNCIL CHAMBERS
CALL TO ORDER
The Brooklyn Center City Council met in Joint Work Session with the Financial Commission
and the session was called to order by Mayor Tim Willson at 6:37 p.m.
ROLL CALL
Mayor Tim Willson and Councilmembers Carol Kleven, Kris Lawrence-Anderson, Lin
Myszkowski, and Dan Ryan. Also present: City Manager Curt Boganey, Finance Director Dan
Jordet, Public Works Director/City Engineer Steve Lillehaug, and Deputy City Clerk Maria
Rosenbaum.
Others present were Financial Commissioners Patricia Glenn, Tunisia Kragness (left at 7:22
p.m.), Dan Schueller, Rex Newman, and Dean Van Der Werf.
OVERVIEW/INTRODUCTION AND INDIVIDUAL CAPITAL PROJECTS FUNDS
City Manager Curt Boganey informed this evening's discussion is to start the planning process
for the 2014-2028 Capital Improvements Program (CIP) and prioritize methods of funding for
the Capital Project Funds for 2014 and 2015. He noted that the error of not including the
Amphitheater Funding of $100,000 would be included with the next set of materials for
discussion on July 22, 2013, at the City Council Work Session.
Finance Director Dan Jordet and Public Works Director/City Engineer Steve Lillehaug outlined
the materials provided for the 2014-2028 CIP and the revisions being requested for the
Individual Capital Projects Funds for Capital Projects, Municipal State Aid (MSA), Street
Reconstruction, Technology Capital, and Overview of Utility Funds. The cash flows for each
fund were reviewed as well as the nature of the requests for the revisions being suggested.
It was noted that at the July 22, 2013, City Council Work Session, discussions will continue and
direction will be needed on how to proceed with the acceptance of the CIP and Capital Project
Funds. Also, some bond refinancing options are being considered and those options will be
included with the discussions on July 22, 2013.
MISCELLANEOUS
A question was raised as to whether or not the Welcome to the City of Brooklyn Center signs
will be replaced in the near future. The response was there is money in the 2016 Budget for
replacement of the entrance signs to the City.
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There was discussion regarding the Manganese concerns and it was noted that there will be a
presentation at one of the City Council meetings the August 12, 2013.
ADJOURNMENT
Councilmember Ryan moved and Councilmember Lawrence-Anderson seconded to adjourn the
Work Session at 8:16 p.m. Motion passed unanimously.
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MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF BROOKLYN CENTER IN THE COUNTY
OF HENNEPIN AND THE STATE OF MINNESOTA
STUDY SESSION
JULY 8, 2013
CITY HALL — COUNCIL CHAMBERS
CALL TO ORDER
The Brooklyn Center City Council met in Study Session called to order by Mayor Tim Willson
at 6:00 p.m.
ROLL CALL
Mayor Tim Willson and Councilmembers Carol Kleven, Kris Lawrence-Anderson, Lin
Myszkowski, and Dan Ryan. Also present were City Manager Curt Boganey, Finance Director
Dan Jordet, Director of Business and Development Gary Eitel, Planning and Zoning Specialist
Tim Benetti, Assistant City Manager/Director of Building and Community Standards Vickie
Schleuning, and Carla Wirth, TimeSaver Off Site Secretarial, Inc.
CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS
Councilmember Kleven requested discussion on Item 9c, in particular the agenda title indicatin.
that the addresses are "Listed Above." She noted the addresses are 3955, 4001, and 4007 69 th
Avenue North.
Councilmember Myszkowski requested the following correction to the Work Session minutes of
June 24, 2013:
Page 6, 5 th Paragraph: "Councilmember Myszkowski Lawrence-Anderson stated as a
board member and former parent of an Odyssey Academy student..."
Councilmember Lawrence-Anderson requested the following correction to the Study Session
minutes of June 24, 2013:
Page 2, 4 th Paragraph: "...so the Park & Recreation Commission is requesting the City
Council consider signage and the option of installing a surveillance camera to address
continued vandalism..."
It was the majority consensus of the City Council to accept corrections to the June 24, 2013
Study Session and Work Session minutes.
City Manager Curt Boganey stated the issue of vandalism at the West Fire House will be
scheduled for discussion at a future Work Session.
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Mr. Boganey noted the handout for Agenda Item 9b and indicated a change was made to Page 2
to indicate the EDA has now entered into a letter of intent. In addition, at the recommendation of
the City Attorney, language was removed from Pages 5 through 7, as it was not needed and
created confusion.
Councilmember Myszkowski requested discussion on Work Session Item 2, Draft Ordinance for
Parking, Driveways, and Waste Containers, Lot Coverage, and Snow Removal, noting each of
the three notices for the Public Hearing uses the same wording as the Sign Ordinance.
MISCELLANEOUS
SISTER CITY VISIT TO VOINJAMA LIBERIA
City Manager Curt Boganey introduced the item and noted the questions that had been raised by
Pastor Collins relating to the City's visit to Voinjama, Liberia. He reviewed the estimated costs
and proposed itinerary. Mr. Boganey stated those who have expressed interest include himself,
Mayor Willson, and Monique Drier (who would be funded by Hennepin County). He stated
Pastor Collins would like an indication by mid-August.
Mayor Willson asked whether a trip in January/February should be considered since there would
be better weather. Mr. Boganey agreed.
Councilmember Kleven stated her understanding that no tax dollars will be spent to support the
cost for Council Members to attend. Mr. Boganey stated based on the resolution adopted by the
City, the expectation is that these dollars would not be reimbursed by the City.
Mayor Willson asked about raising funds for staff and the Police Chief and Fire Chief to attend.
Mr. Boganey stated the Police Chief indicated he probably would not wish to go as it is a long
time for him to be away from his family. Mayor Willson asked Mr. Boganey to check with staff
and report back on that option.
Councilmember Myszkowski stated she may be able to make the trip and asked that her name be
added tentatively.
Councilmember Ryan stated he would also be interested in going but needs to first check his
schedule.
Mr. Boganey stated he will provide an update in several weeks.
PLACES OF RELIGIOUS ASSEMBLY IN THE CENTRAL COMMERCE OVERLAY
DISTRICT
Mr. Boganey introduced the item and request of John Tarley, African Assistance Program, to
lease space in the C-2 Commerce District for an event center for religious gatherings, activities,
and celebration. He stated staff met with Mr. Tarley to hear the specifics of the request and
discussed the request with the City Attorney. It is staffs opinion that an event center that can be
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rented to users should not change the character of the operation unless it was more frequent than
a weekly or if space is created that is dedicated to an exclusive religious purpose. Mr. Boganey
stated staff sent Mr. Tarley a letter explaining the Special Use Permit process and that a regularly
scheduled church assembly must be incidental in the overall rental of the event center.
Mayor Willson stated the vision may be more for weddings and baptism, which could be rented
by multi-denominations. Mr. Boganey indicated that would not change the character of the event
center. Mayor Willson noted a well-worded document will be required to assure there is no
misunderstanding in the future.
Councilmember Ryan requested a map of the overlay zone.
PROPERTY OWNER OCCUPANCY REQUIREMENT
Mr. Boganey stated Councilmember Kleven requested discussion of a property owner's concerns
about the City's ordinance that requires a rental license for any residential property that is not
occupied by its owner. He stated it was known when this ordinance was adopted that some
property owners would not be supportive. However, the City needed tools to take effective
action when relatives of the homeowner were not conducting themselves in a reasonable or
acceptable manner to the neighborhood. Mr. Boganey read the ordinance language, noting it is
clearly stated.
Mayor Willson stated the focus of the prior discussion was for care of elderly parents, but it was
still decided to tighten the ordinance language to provide the ability to address the situations.
Mr. Boganey reviewed the packet of information provided to the City Council and explained the
exceptions allowed under the current ordinance. He stated this resident has indicated she does
not like this ordinance restriction because she is away from the property and her relatives are
living in her home while she is away. Mr. Boganey asked the City Council whether they would
like to discuss this item further at a Work Session. This matter came to the City's attention when
the relative living in the home attempted to change the name on the water bill from the property
owner's name to the relative's name.
Mayor Willson stated in that case he would consider it to be a rental property requiring a license.
Mr. Boganey stated staff accommodates property owners under the terms of the ordinance.
Mayor Willson asked about the status of the property owner. Mr. Boganey stated she is in Texas
caring for her mother.
Councilmember Myszkowski asked whether the incidents in 2010 that triggered the ordinance
change were widespread. Mr. Boganey stated it was infrequent but when it did occur, the City
did not have the tools for enforcement without prosecutory action. Councilmember Myszkowski
stated she sees this is a necessary ordinance provision.
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ADJOURN STUDY SESSION TO INFORMAL OPEN FORUM WITH CITY COUNCIL
Councilmember Ryan moved and Councilmember Myszkowski seconded to close the Study
Session at 6:45 p.m.
Motion passed unanimously.
RECONVENE STUDY SESSION
Councilmember Ryan moved and Councilmember Lawrence-Anderson seconded to reconvene
the Study Session at 6:46 p.m.
Motion passed unanimously.
PROPERTY OWNER OCCUPANCY REQUIREMENT
The discussion continued on the requirement for property owner occupancy.
Councilmember Ryan stated he is not interested in discussing a revision to the ordinance, noting
a lot of research had been conducted when the ordinance language was amended to assure the
City was provided with a tool to deal with those specific situations and it has proven to be a
useful tool.
• The majority consensus of the City Council was to not schedule this matter for further
discussion.
DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS
DRAFT ORDINANCE REGARDING EXTERIOR STRUCTURE REQUIREMENTS
FOR MULTI-FAMILY PROPERTIES
Assistant City Manager/Director of Building & Community Standards Vickie Schleuning
introduced the item and presented the draft ordinance to encourage a more coordinated, uniform,
safe approach to exterior design and maintenance for multifamily properties. She displayed
pictures of multi-family structures that contained different types and colors of exterior building
materials. Ms. Schleuning asked the City Council for feedback on the draft ordinance.
Councilrnember Kleven stated support for a size and color requirement for address numerals.
She felt the numerals should be on the side of the road as well as by the front door so visitors can
find the correct location.
Mayor Willson agreed with the benefit of address numerals being affixed to a standard location
but questioned how it can be enforced. He noted that sometimes building materials are no longer
available, which could raise another issue.
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Councilmember Lawrence-Anderson supported the language related to address numerals and to
regulate exterior building materials but questioned how it would be enforced.
Discussion on this item continued and reached conclusion at the July 8, 2013, Work Session.
ADJOURNMENT
Councilmember Myszkowski moved and Councilmember Ryan seconded to close the Study
Session at 7:00 p.m.
Motion passed unanimously.
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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
JULY 8, 2013
CITY HALL — COUNCIL CHAMBERS
1. INFORMAL OPEN FORUM WITH CITY COUNCIL
CALL TO ORDER INFORMAL OPEN FORUM
The Brooklyn Center City Council met in Informal Open Forum called to order by Mayor Tim
Willson at 6:45 p.m.
ROLL CALL
Mayor Tim Willson and Councilmembers Carol Kleven, Kris Lawrence-Anderson, Lin
Myszkowski, and Dan Ryan. Also present were City Manager Curt Boganey, Finance Director
Dan Jordet, Director of Business and Development Gary Eitel, Planning and Zoning Specialist
Tim Benetti, Assistant City Manager/Director of Building and Community Standards Vickie
Schleuning, City Attorney Charlie LeFevere, and Carla Wirth, TimeSaver Off Site Secretarial,
Inc.
Mayor Tim Willson opened the meeting for the purpose of Informal Open Forum.
No one wished to address the City Council.
Councilmember Myszkowski moved and Councilmember Ryan seconded to close the Informal
Open Forum at 6:46 p.m.
Motion passed unanimously.
2.INVOCATION
As the Invocation, Mayor Willson requested a moment of silence and personal reflection.
3.CALL TO ORDER REGULAR BUSINESS MEETING
The Brooklyn Center City Council met in Regular Session called to order by Mayor Tim Willson
at 7:00 p.m.
4. ROLL CALL
Mayor Tim Willson and Councilmembers Carol Kleven, Kris Lawrence-Anderson, Lin
Myszkowski, and Dan Ryan. Also present were City Manager Curt Boganey, Director of
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Business and Development Gary Eitel, Planning and Zoning Specialist Tim Benetti, Assistant
City Manager/Director of Building and Community Standards Vickie Schleuning, City Attorney
Charlie LeFevere, and Carla Wirth, TimeSaver Off Site Secretarial, Inc.
5.PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was recited.
6.APPROVAL OF AGENDA AND CONSENT AGENDA
Councilmember Ryan moved and Councilmember Myszkowski seconded to approve the Agenda
and Consent Agenda, as amended, with amendments to the Study Session and Work Session
minutes of June 24, 2013, and the following consent items were approved:
6a. APPROVAL OF MINUTES
1.June 24,2013 — Study Session
2.June 24,2013 — Regular Session
3.June 24,2013 — Work Session
6b. LICENSES
AMUSEMENT DEVICES
Mendota Valley Amusement, Inc.
Brooklyn Center American Legion
MCTO
GARBAGE COLLECTION VEHICLE
Budget Waste Systems, Inc.
Farmers Union Industries dba Midwest Grease
Jate Mies, Inc.
SANIMAX USA, Inc.
Walters Recycling and Refuse
Waste Management — Blaine
MECHANICAL
Airics Heating
Anderson Residential Heating & A/C
Aspen Air
Freedom Heating & Air Conditioning, Inc.
First Choice Plumbing & Heating, LLC
Metro Heating & Cooling
Ray Welter Heating Company
RENTAL
INITIAL (TYPE II— two-year license)
3407 65 th Avenue N. / Granite City Apartments
390 Richmond Street, South St. Paul
6110 Brooklyn Boulevard
6845 Shingle Creek Parkway
3516 East Lake Street, Minneapolis
P.O. Box 26, Redwood Falls
11365 Xeon Street NW, Coon Rapids
505 Hardman Avenue, South St. Paul
P.O. Box 67, Circle Pines
10050 Naples Street NE, Blaine
2609 Highway 13 West, Burnsville
1628 Count?T Road 10, Spring Lake Park
308 SW 15" Street, Forest Lake
1568 143 III Lane NE, Ham Lake
29948 Highway 47 NW, Isanti
255 Roselawn Avenue, St. Paul
4637 Chicago Avenue S., Minneapolis
Christopher Kohler
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4212 62 nd Avenue N.
5024 71 st Avenue N.
6831 Drew Avenue N.
5311 Emerson Avenue N.
5801 Girard Avenue N.
4201 Lakeside Avenue #109
4207 Lakeside Avenue #236
4207 Lakeside Avenue #238
6700 Perry Avenue N.
7037 Perry Avenue N.
RENEWAL (TYPE — one-year license)
6937 Morgan Avenue N.
7212 Willow Lane N.
RENEWAL (TYPE II — two-year license)
1200 67 th Avenue N. / Emerson Chalet
6125 Lilac Drive N.
Crossings @ Brookwood Manor
5812 Camden Avenue N.
5321 Fremont Avenue N.
4201 Lakeside Avenue #302
5600 Lilac Drive N.
5724 Logan Avenue N.
5349 Northport Drive
RENEWAL (TYPE I— three-year license)
6107 Bryant Avenue N.
6706 Drew Avenue N.
7024 Newton Avenue N.
6724 Toledo Avenue N.
7193 Unity Avenue N.
SIGNHANGER
G Signs LLC
L and D Sign
Rafik Moore/RTO Investments LLC
Dallas Worth
David Gardner
Kim Chew
Cha Moua
Marie Dworshak
Judith Spanberger
Peng Zhao
James Haugdahl
Kin Chew
Dao Yang
Michael Beasley
Tom Morrow/VIP Properties
Lang Nelson Associates
Roberto Rodriguez
Larry Norals
Xavier Haro
Sue Xiong
Konstantin Ginzburg
Paul Ferfon
Daniel Yesnes
Yang Yang Zheng
Troy Pfingsten
Steve & Cheryl Schleif
Mary Turcotte
2739 Rushmore Road, Hastings
6045 Lake Elmo Avenue, Stillwater
6c.APPROVE REQUEST BY THE LUTHER COMPANY, LLP FOR AN
AMENDMENT TO THE DEVELOPMENT AGREEMENT FOR BRI MAR
2ND ADDITION TO EXTEND THE DEADLINE FOR THE COMPLETION
OF THE PRIVATE IMPROVEMENTS — FROM JULY 15, 2013, TO
JULY 15, 2014
6d.RESOLUTION NO. 2013-70 CALLING FOR A PUBLIC HEARING ON A
PROPOSAL FOR THE ISSUANCE OF CONDUIT REVENUE BONDS
(ODYSSEY ACADEMY PROJECT)
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Motion passed unanimously.
7. PRESENTATIONS/PROCLAMATIONS/RECOGNITIONS/DONATIONS
7a.RESOLUTION NO. 2013-71 EXPRESSING RECOGNITION AND
APPRECIATION OF ELLEN DAVIS FOR HER PUBLIC SERVICE ON THE
SHINGLE CREEK AND WEST MISSISSIPPI WATERSHED MANAGEMENT
COMMISSIONS
Councilmember Kleven moved and Councilmember Ryan seconded to approve RESOLUTION
NO. 2013-71 Expressing Recognition and Appreciation of Ellen Davis for her Public Service on
the Shingle Creek and West Mississippi Watershed Management Commissions.
Mayor Willson read in full a Resolution expressing recognition and appreciation to Ellen Davis
for her public service on the Shingle Creek and West Mississippi Watershed Management
Commissions.
Motion passed unanimously.
7b.NORTHWEST HENNEPIN HUMAN SERVICES COUNCIL ANNUAL UPDATE
Sharon Kephart, Brooklyn Center representative on the Advisory Commission of the Northwest
Hennepin Human Services Council (NWHHSC) stated she is a 17-year resident and has been
proud to represent the City of Brooklyn Center. She described the topics they had addressed,
activities undertaken, and training received during 2012.
Mandora Young, Brooklyn Center representative on the Advisory Commission of the
NWHHSC, thanked the City Council for the opportunity to serve the City in this capacity. She
stated she looks for resources for their clients including reaching out to other communities. Ms.
Young stated she will do her best for Brooklyn Center and its residents and wants to make a
difference.
Lyla PageIs, Senior Leadership Team, stated she is a 32-year resident and Registered Nurse for
more than 40 years. She described their work to identify 24/7 caregivers and to communicate
with them about The Gathering Space, a group respite opportunity.
Barb Jensen, Senior Leadership Committee, stated she became part of this Committee in 2009
and found they were doing many of the things in the Year 2000 Report that was prepared in 1984
relating to the needs of seniors. Ms. Jensen thanked the City Council for its continued leadership
and commitment.
Susan Blood, NWHHSC Executive Director, stated her appreciation for the citizen volunteers
who serve on their Board. She stated Brooklyn Center's 2012 contribution of $12,182 resulted
in receiving $62,216 of benefit. This means that for every one dollar. Brooklyn Center
contributed, it received $5.11 in services. Ms. Blood thanked the City Council for its support
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and City Manager Curt Boganey for serving on the NWHHSC Executive Committee.
Anita Perkins, Program Coordinator, described the 2012 activities of the Community Emergency
Assistance Program. She also presented the 2013 Guide to Human Services and emergency
resources folder that is handed out to residents.
Mayor Willson thanked Ms. Blood and those who work with and volunteer for NWHHSC for
their devotion to Brooklyn Center and meeting its residents' needs.
Councilmember Ryan moved and Councilmember Myszkowski seconded to accept the
Northwest Hennepin Human Services Council Annual Report.
Motion passed unanimously.
8. PUBLIC HEARINGS
8a. ORDINANCE NO. 2013-02 AMENDING AND REPEALING CERTAIN
SECTIONS OF CHAPTER 34 (SIGNS) AND CHAPTER 35 (ZONING) RELATED
TO DYNAMIC MESSAGE SIGNS (DMS) WITH PUBLIC USES
Planning and Zoning Specialist Tim Benetti introduced the item, discussed the history, and stated
the purpose of the proposed ordinance to amend and repeal certain sections of Chapter 34 (Signs)
and Chapter 35 (Zoning) related to Dynamic Message Signs (DMS) with public uses. He
advised of the Planning Commission's consideration, conducting two fully noticed Public
Hearings, and unanimous recommendation to the City Council to accept and adopt the new
ordinance amendment language presented in the draft ordinance. Mr. Benetti explained if this
ordinance is adopted following tonight's Public Hearing, it would not become effective until 30
days after publication.
Councilmember Ryan moved and Councilmember Kleven seconded to open the Public Hearing.
Motion passed unanimously.
No one appeared to speak.
Councilmember Myszkowski moved and Councilmember Lawrence-Anderson seconded to close
the Public Hearing.
Motion passed unanimously.
Councilmember Kleven moved and Councilmember Lawrence-Anderson seconded to adopt
ORDINANCE NO. 2013-02 Amending and Repealing Certain Sections of Chapter 34 (Signs)
and Chapter 35 (Zoning) related to Dynamic Message Signs (DMS) with Public Uses.
Motion passed unanimously.
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9. PLANNING COMMISSION ITEMS
9a.PLANNING COMMISSION APPLICATION NO. 2013-006 SUBMITTED BY
GATLIN DEVELOPMENT COMPANY — REQUEST FOR APPROVAL OF PUD
AMENDMENT NO. 5 TO THE SHINGLE CREEK CROSSING PLANNED UNIT
DEVELOPMENT SIGN PROGRAM, SPECIFICALLY TO ALLOW NINE (9)
MONUMENT TYPE SIGNS ON VARIOUS COMMERCIAL PAD SITES
WITHIN THE SHINGLE CREEK CROSSING PUD SITE
Mr. Benetti provided an overview of Planning Commission Application No. 2013-006 requesting
approval of PUD Amendment No. 5 to the Shingle Creek Crossing Planned Unit Development
Sign Program, and advised the Planning Commission recommended approval of the applications
at its June 26, 2013, meeting.
1. RESOLUTION NO. 2013-72 REGARDING RECOMMENDED
DISPOSITION OF PLANNING COMMISSION APPLICATION NO. 2013-
006 SUBMITTED BY GATLIN DEVELOPMENT COMPANY FOR A
PLANNED UNIT DEVELOPMENT AMENDMENT (NUMBER 5) TO THE
2011 SHINGLE CREEK CROSSING PLANNED UNIT DEVELOPMENT
Councilmember Myszkowski moved and Councilmember Ryan seconded to approve
RESOLUTION NO. 2013-72 Regarding Recommended Disposition of Planning Commission
Application No. 2013-006 Submitted by Gatlin Development company for a Planned Unit
Development Amendment (Number 5) to the 2011 Shingle Creek Crossing Planned Unit
Development.
Motion passed unanimously.
9b.PLANNING COMMISSION APPLICATION NO. 2013-007 SUBMITTED BY THE
ECONOMIC DEVELOPMENT AUTHORITY (EDA) FOR THE CITY OF
BROOKLYN CENTER — REQUEST FOR APPROVAL OF PUD AMENDMENT
TO THE 2007 BROOKLYN HOTEL PARTNERS LLC / EMBASSY SUITES
PLANNED UNIT DEVELOPMENT PROJECT, WHICH WOULD ALLOW THE
RECONFIGURATION AND APPROVAL OF A NEW 4-STORY, 81 ROOM
CANDLE WOOD SUITES ON THE VACANT DEVELOPMENT SITE OWNED
BY THE CITY'S EDA
Mr. Benetti provided an overview of Planning Commission Application No. 2013-007 requesting
a Planned Unit Development Project to allow the reconfiguration and approval of a new four-
story, 81 room, Candlewood Suites on the vacant development site owned by the City's EDA,
the background of this project, and advised the Planning Commission recommended approval of
the applications at its June 26, 2013, meeting. Mr. Benetti advised of the modifications made to
the draft resolution at the recommendation of the City Attorney.
City Attorney Charlie LeFevere answered questions of the City Council relating to the lot
division process. He explained the City normally requires a platting process but sometimes a
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modified process is allowed to divide the property by metes and bounds. In this case, the
property to be created is not likely to be changed or conveyed and will become EDA property.
1. RESOLUTION NO. 2013-73 REGARDING THE RECOMMENDED
DISPOSITION OF PLANNING COMMISSION APPLICATION NO. 2013-
007 SUBMITTED BY ECONOMIC DEVELOPMENT AUTHORITY FOR
THE CITY OF BROOKLYN CENTER OF A PLANNED UNIT
DEVELOPMENT AMENDMENT TO THE 2007 BROOKLYN HOTEL
PARTNERS, LLC/EMBASSY SUITES PLANNED UNIT DEVELOPMENT
TO PROVIDE FOR THE ALLOWANCE OF A NEW 81-UNIT
CANDLEWOOD SUITES HOTEL (LOCATED AT 2650 EARLE BROWN
DRIVE)
Councilmember Ryan moved and Councilmember Myszkowski seconded to approve
RESOLUTION NO. 2013-73 Regarding Recommended Disposition of Planning Commission
Application No. 2013-007 submitted by Economic Development Authority for the City of
Brooklyn Center of a Planned Unit Development Amendment to the 2007 Brooklyn Hotel
Partners, LLC/Embassy Suites Planned Unit Development to Provide for the Allowance of a
New 81-Unit Candlewood Suites Hotel (located at 2650 Earle Brown Drive).
Motion passed unanimously.
9c. REQUEST FOR APPROVAL OF A PROPOSED LAND USE AMENDMENT TO
THE CITY'S COMPREHENSIVE PLAN TO CHANGE THE THREE
ADDRESSED PROPERTIES LOCATED AT 3955, 4001, AND 4007 — 69 TH
AVENUE NORTH AND CONSISTING OF APPROXIMATELY 1.76 ACRES,
FROM SF-SINGLE FAMILY RESIDENTIAL TO RB-RETAIL/BUSINESS
(COMMERCIAL) FOR THE PURPOSE OF EXPANDING THE HONDA
DEALERSHIP, LOCATED AT 6800 BROOKLYN BOULEVARD
Mr. Benetti provided an overview of the request for approval of a proposed Land Use
Amendment to the City's Comprehensive Plan to change three properties consisting of
approximately 1.76 acres from SF-Single Family Residential to RB-Retail/Business to allow the
expansion of the Honda Dealership located at 6800 Brooklyn Boulevard. He reviewed
anticipated land use requests and advised the Planning Commission recommended approval of
the applications at its June 26, 2013, meeting. The development plan would be considered by the
City Council at a future date. Mr. Benetti stated if approved by the City Council, staff would
request authorization to submit this amendment to the Metropolitan Council for review.
1. RESOLUTION NO. 2013-74 GRANTING PRELIMINARY APPROVAL OF
A PROPOSED LAND USE AMENDMENT TO THE 2013
COMPREHENSIVE PLAN FROM "SF-SINGLE-FAMILY" TO "RB-
RETAIL BUSINESS," RELATIVE TO THE R3-MULTIPLE FAMILY
RESIDENTIAL ZONED LAND GENERALLY LOCATED AT 3955, 4001,
AND 4007 — 69 TH AVENUE NORTH AND AUTHORIZE THE FORMAL
07/08/13 -7- DRAFT
SUBMITTAL OF SAID AMENDMENT TO THE METROPOLITAN
COUNCIL
Councilmember Lawrence-Anderson moved and Councilmember Myszkowski seconded to
approve RESOLUTION NO. 2013-74 Granting Preliminary Approval of Proposed Land Use
Amendment to the 2013 Comprehensive Plan from "SF-Single Family" to "RB-Retail Business,"
relative to the R3-Multiple Family Residential Zoned Land Generally Located at 3955, 4001, and
4007 — 69 th Avenue North and Authorize the Formal Submittal of Said Amendment to the
Metropolitan Council.
Motion passed unanimously.
10. COUNCIL CONSIDERATION ITEMS
10a.CONSIDERATION OF TYPE IV 6-MONTH PROVISIONAL RENTAL LICENSE
FOR 5706 JAMES AVENUE NORTH
Mayor Willson polled the audience and asked whether anyone was in attendance to provide
testimony on this rental license. Seeing no one coming forward, Mayor Willson called for a
motion.
Councilmember Ryan moved and Councilmember Lawrence-Anderson seconded to approve the
issuance of a Type IV six-month provisional rental license and mitigation plan for 5706 James
Avenue North, with the requirement that the mitigation plan and all applicable ordinances must
be strictly adhered to before a renewal rental license would be considered.
Motion passed unanimously.
10b.CONSIDERATION OF TYPE IV 6-MONTH PROVISIONAL RENTAL LICENSE
FOR 4912 ZENITH AVENUE NORTH
Mayor Willson polled the audience and asked whether anyone was in attendance to provide
testimony on this rental license. Seeing no one coming forward, Mayor Willson called for a
motion.
Councilmember Myszkowski moved and Councilmember Lawrence-Anderson seconded to
approve the issuance of a Type IV six-month provisional rental license and mitigation plan for
4912 Zenith Avenue North, with the requirement that the mitigation plan and all applicable
ordinances must be strictly adhered to before a renewal rental license would be considered.
Motion passed unanimously.
07/08/13 -8- DRAFT
11. COUNCIL REPORT
Councilmember Ryan reported on his attendance at the following and provided information on
the following upcoming events:
•June 27, 2013, Earle Brown Days Parade
•June 28-29, 2013, Earle Brown Days Golf Tournament and Family-Friendly Events
•June 29, 2013, Brooklyn Center Rotary Family Fun and Games Event
•Thanked former Mayor Kragness for organizing the Honor Our Veterans Program
•July 1, 2013, Joint City Council! Financial Commission Meeting
•July 6, 2013, African Immigrants Family Reunion and Picnic
•July 12, 2013, American Cancer Society Relay for Life
Councilmember Kleven reported on her attendance at the following and provided information on
the following upcoming events:
•June 25, 2013, Multi-Cultural Advisory Committee and CSU Joint Meeting
•June 26, 2013, Tour of the Brooklyn Center ITT Technical Institute
•June 26, 2013, Morning and Afternoon Ceremonies when 500 people at each became United
States Citizens
•June 26, 2013 Planning Commission Meeting
•June 27, 2013, Exhibit on Minnesota Disasters at North Hennepin College
•June 27, 2013 Earle Brown Days Parade
•June 28, 2013, Served Food at the Centennial Park Dunkin Jamboree
•June 29, 2013, Earle Brown Days Events and Handed out Prizes
•July 1, 2013, Joint City Council / Financial Commission Meeting
•July 9, 2013, Centennial Park Entertainment by the Reuben Ristrom Band
•Dates and Locations for Free Breakfasts and Lunches in Brooklyn Center
•Popeye's is now open at 5430 Brooklyn Boulevard
Councilmember Myszkowski reported on her attendance at the following and provided
information on the following upcoming events:
•June 27, 2013, Brooklyn Center Business Association Luncheon
•June 27, 2013, Earle Brown Days Parade
•June 28, 2013, Set up Park for Earle Brown Festivities
•June 29, 2013, Volunteered with Earle Brown Days Committee to take registrations and help
vendors
•June 29, 2013, Honor Our Veterans Program and Capri Big Band
•July 1, 2013, Joint City Council / Financial Commission Meeting
Councilmember Lawrence-Anderson reported on her attendance at the following and provided
information on the following upcoming events:
•June 27, 2013, Brooklyn Center Business Association Luncheon
•June 27, 2013, Earle Brown Days Parade
•June 29, 2013, Garbage Patrol for Business Expo
•June 29, 2013, Honor Our Veterans Program
•June 29, 2013, Concert and Fireworks
07/08/13 -9- DRAFT
•July 1, 2013, Joint City Council / Financial Commission Meeting
Mayor Willson reported on his attendance at the following and provided information on the
following upcoming events:
•June 25, 2013, Multi-Cultural Advisory Committee Meeting
•June 26, 2013, Minneapolis Northwest Convention and Visitors Bureau Board Meeting
o June 27, 2013, Earle Brown Days Parade
•July 1, 2013, Joint City Council / Financial Commission Meeting
•July 6, 2013, African Immigrants Family Reunion and Picnic
12. ADJOURNMENT
Councilmember Ryan moved and Councilmember Lawrence-Anderson seconded adjournment of
the City Council meeting at 8:17 p.m.
Motion passed unanimously.
07/08/13 -10- DRAFT
MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/ECONOMIC
DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER
IN THE COUNTY OF HENNEPIN AND
THE STATE OF MINNESOTA
WORK SESSION
JULY 8, 2013
CITY HALL — COUNCIL CHAMBERS
CALL TO ORDER
The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work
Session called to order by Mayor/President Tim Willson at 8:17 p.m.
ROLL CALL
Mayor/President Tim Willson and Councilmembers/Commissioners Carol Kleven, Kris
Lawrence-Anderson, Lin Myszkowski, and Dan Ryan. Also present were City Manager Curt
Boganey, Finance Director Dan Jordet, Assistant City Manager/Director of Building &
Community Standards Vickie Schleuning, and Carla Wirth, TimeSaver Off Site Secretarial, Inc.
DRAFT ORDINANCE REGARDING EXTERIOR STRUCTURE REQUIREMENTS
FOR MULTI-FAMILY PROPERTIES
Assistant City Manager/Director of Building & Community Standards Vickie Schleuning
reintroduced the item and described the need to address maintenance of common areas and
exterior building materials for multi-family properties to assure the value of the entire complex is
not compromised.
Councilmember/Commissioner Myszkowski stated she had supported this idea until
Mayor/President Willson raised concerns relating to enforceability. She agreed with the benefit
of larger sized and consistent house numerals.
Councilmember/Commissioner Ryan stated he found some of the multi-family properties were
not in good repair and if the City Council/EDA is serious about placing mechanisms to preserve
the City's multi-family residences and values, there is a need for such a tool. He agreed with the
need for clear and straightforward addressing but sees there could be an issue when
exterior/architectural standards are imposed on buildings under multiple ownership.
Ms. Schleuning stated there will be an educational component and oftentimes, property owners
are proactive to address maintenance issues but the concern is when the association no longer
exists or does not have funds available.
Councilmember/Commissioner Ryan stated support for the City to have those types of tools so
an aesthetically unpleasing situation does not arise and so the exteriors match even though it may
not be the original building materials. He asked about the number of townhome rentals in
Brooklyn Center. Mr. Schleuning stated staff can provide that information.
07/08/13 -1- DRAFT
Councilmember/Commissioner Kleven stated address numerals should also be reflective so they
can be easily seen during evening hours.
Mayor/President Willson stated he is not opposed to considering an ordinance but wonders if the
City has legal footing when dictating or regulating color, shape, and building material. He noted
it may result in more of a guideline format than an ordinance.
Councilmember/Commissioner Myszkowski asked what it would take to reestablish homeowner
associations. Ms. Schleuning stated there is a process but it is cost prohibitive.
There was discussion on people's perception of color, which may differ. Ms. Schleuning stated
the intent is to have a plan in place for common areas and exterior maintenance but not to
become involved with regulating color. It was acknowledged that the properties under
consideration are multi-family with a shared wall, which is a distinction from single-family
properties
Councilmember/Commissioner Ryan stated in self-defined communities there can be a
requirement for homeowners to sign certain covenants regulating address and mailbox structure,
roofing materials, which is analogous to the townhome association arrangement. He noted that
originally the townhome association addressed consistent exterior material and color, which
established a precedent to which buyers agreed.
Mayor/President Willson stated if the City has such an agreement signed by the property owners,
it may be something to stand on but if it is not the original owner, they may not be aware of those
regulations.
City Manager Curt Boganey stated the City Council/EDA has expressed a consensus to do
something with respect to address numbers being more visible and uniform. In addition, points
have been raised on the issue of townhome associations and outgrowth of what happens when
they are abandoned. Mr. Boganey noted a separate track is to think through what it would take
or what could be done to encourage unified properties to become part of a townhome association
and how to prevent the breakup of single homes into multi-family units. Mr. Boganey stated
there is no City Council/EDA consensus to impose, through ordinance, requirements to work
uniformly. He stated staff will consider what can be accomplished through policy, guidance, and
persuasion to obtain cooperation.
DRAFT ORDINANCE FOR PARKING, DRIVEWAYS, AND WASTE CONTAINERS,
LOT COVERAGE, AND SNOW REMOVAL
Ms. Schleuning summarized the draft ordinance amendments and recommendation of the
Housing Commission. She noted the results of the resident survey had been provided for the
City Council's/FDA's review and were similar to the recommendation of the Housing
Commission. Ms. Schleuning displayed illustrations of front yard definitions and pictures
depicting Code violations involving parked vehicles. She stated the current ordinance allows
07/08/13 -2- DRAFT
vehicles to be stored in the side and rear yards on any surface. The new ordinance would require
some type of improved surface and total impervious yard surface area.
Councilmember/Commissioner Ryan asked if the property owner would have the option of
extending the driveway. Ms. Schleuning stated that is correct or they could extend a well-
maintained gravel driveway.
Ms. Schleuning next presented examples of allowable locations for storage of waste containers
and locations that would result in a violation. She stated the new ordinance would allow some
type of enclosure if within four feet of the garage or principle structure. Ms. Schleuning asked if
the City Council/EDA agrees with the newly defined front yard diagrams.
Mayor/President Willson stated he supports the ordinance across-the-board with the exception of
requiring garbage containers to not be placed before 4 p.m. the day before pickup due to holiday
situations. Ms. Schleuning stated residents will probably not complain about that type of
situation but the ordinance is meant to address the consistent violator. Mayor/President Willson
stated it does not matter whether or not there is a complaint because if it is written in the
ordinance and staff sees a violation, the ordinance would have to be enforced.
Ms. Schleuning stated if staff notices a violation, such as a pile of brush but the residents are
working on limb removal, it will be considered. Mayor/President Willson suggested the
ordinance then contain wording to indicate it is to address a continuous violation.
Mr. Boganey stated the concern is understood and suggested staff take it under consideration
whether to write language so it is clear the City will not be out every day looking for violations
or to establish Council policy guidance that is separate from the ordinance.
Councilmember/Commissioner Kleven asked why a time needs to be included in the ordinance
and asked how many complaints are received. She noted a resident may be at the hospital
visiting a family member or have another engagement and need to take out the garbage container
earlier. Also, in the winter months when it becomes dark earlier in the day, residents may want
to take out their garbage container before dark.
Councilmember/Commissioner Ryan stated support for the suggestion of Mr. Boganey to
develop an effective means to communicate that issue.
Mayor/President Willson thanked Ms. Schleuning for her work on this ordinance. Ms.
Schleuning agreed this is a complex issue and the ordinance also needs to be enforceable. She
noted the current ordinance starts at dusk and staff will review the language.
Councilmember/Commissioner Lawrence-Anderson stated she is fine with the language on
parking, driveways, and snow removal but has issue with the garbage cans. She stated her
biggest concern is that the City can barely enforce grass, weeds, and garbage cans that are out a
week later. She asked how the City would have enough Code Enforcement Officers to check
where garbage cans are placed. Councilmember/Commissioner Lawrence-Anderson stated she
07/08/13 -3- DRAFT
is concerned about enforcement and would not support adoption of an ordinance that cannot be
adequately enforced.
Councilmember/Commissioner Myszkowski stated she is supportive of all the language
proposed but would ask whether setting the time at 4 p.m. is arbitrary. She stated she supports
staff reviewing the language as discussed and wants to assure the ordinance, if adopted, is
enforceable. Councilmember/Commissioner Myszkowski stated she appreciates that there had
been a lot of community engagement throughout this process.
Councilmember/Commissioner Ryan stated the concern is the reputation of Brooklyn Center and
maintaining pride in the community. He stated if the explanation is clear and in concrete terms,
he thinks the community will be accepting. Councilmember/Commissioner Ryan thanked staff
for their work on this ordinance. He asked if other communities require snow removal within a
certain period of time to address reasonable care and maintenance. He noted if driveways are not
cleared, it may result in emergency response taking longer.
Councilmember/Commissioner Kleven stated she does not feel parking violations are enforced
or that vehicles should be allowed to be parked in the rear yard. She supported requiring snow
removal from driveways so the property does not appear to be vacant and invite theft.
Councilmember/Commissioner Kleven supported making no change to the language about
garbage containers and to focus on parking and driveway violations.
REPORT ON ASG BROOKLYN CENTER CONDUIT BOND REQUEST
Finance Director Dan Jordet introduced the item and presented an overview of staff's report on
the conduit financing request for $5,080,000 by ASG Brooklyn Center for Odyssey Charter
School. He advised of the answers received to staff's questions and indication the forecast is a
market study but the financial projections were reviewed by MMKR. In addition, the School has
a line of credit (not letter of credit) available to back the bonds. To address mitigation of risk,
the School has indicated the $100,000 denomination is acceptable and he will ask why they
crossed off language indicating: "at any point in their lifecycle."
Mayor/President Willson stated if there are a lot of sticking points and not a general consensus,
he is concerned about furthering this process. He stated the City has to conduct due diligence to
assure there is no impact on the City under any scenario. Mr. Jordet noted the public benefit to
Brooklyn Center may outweigh any risk to Brooklyn Center, as there is no financial risk or
impact to the City's bond rating.
Mr. Jordet stated by mid-week, he expects to receive the bond indenturing and will provide an
update to the City Council/EDA by Friday. He explained that if the City issues over $10 million
in a fiscal year, banks are not allowed to purchase those bonds because of FDIC regulations. The
City has four bond issues in 2013: $5 million for this project, $4 million of improvement bonds,
$2 million for the street reconstruction project; and, $6.9 million and $2 million of refinancing
on TIF debt and water meter project debt. It was noted the interest savings are about $485,000
over the life of the bonds or a present value of $435,000.
07/08/13 -4- DRAFT
Mr. Jordet stated he is working on the opportunity costs of incurring the bank qualification
penalty (higher interest) that would cut into the savings or the option of simply issuing between
January 1 and February 1 when the bond payments are due.
Mayor/President Willson asked if there would be additional savings if the City's refinancing is
done today rather than being delayed to January/February. Mr. Jordet explained why that is not
the case and that the City can realize most of the savings even if it occurs in January/February.
Councilmember/Commissioner Ryan stated he wanted to assure there was a worthy public
purpose and the City also needs to be aware of any resulting costs on future bond issues.
Councilmember/Commissioner Myszkowski noted it was indicated the interest rate of 7% is high
and asked about the factors that resulted in a higher interest rate. Mr. Jordet stated municipal
bonds tend to be lower because the interest income is tax exempt and the security for repayment
is the fall tax base of the issuer. However, if the risk is higher or a city's bond rating is lower,
then investors demand a higher interest rate on their investment. Mr. Jordet stated these would
not be municipal bonds so the investor may ask for a higher rate. He explained that Springsted
had indicated this type of bond was running in a 5% range and Ziegler said they had used 7% as
a conservative estimate of the interest rate.
Councilmember/Commissioner Myszkowski asked if a 7% interest rate is a risk indicator. Mr.
Jordet stated it can be.
Councilmember/Commissioner Myszkowski referenced sensitivity risk indicators and that a
change in two or more factors can create extreme difficulty. She asked if that would relate to a
change in em-ollment, lower aide, or budget shifts, which could happen over a 30-year term. Mr.
Jordet stated that is correct as the four sensitivity factors were based on enrollment and State aid
numbers.
Councilmember/Commissioner Myszkowski asked whether this issue is too small to be rated by
a bond rating agency. Mr. Jordet stated the City's bond attorney indicated it relates to the size of
the school and because the Charter School bond market is relatively new so they do not have a
good basis for giving well-informed ratings. The rating agency may be looking for larger issues
to get ratings before rating some of the smaller issues.
Mr. Jordet stated the hearing has been noticed and will be held on July 22, 2013. He reviewed
actions available to the City Council at that time.
• ADJOURNMENT
Councilmember/Commissioner Ryan moved and Councilmember/Commissioner Lawrence-
Anderson seconded adjournment of the City Council/Economic Development Authority Work
Session at 9:42 p.m.
Motion passed unanimously.
07/08/13 -5- DRAFT
City Council Agenda Item No. 6b
COUNCIL ITEM MEMORANDUM
DATE: July 16, 2013
TO: Curt Boganey, City Manager
FROM: Maria Rosenbaum, Deputy City Clerk /1
■A(13V.
SUBJECT: Licenses for City Council Approval
Recommendation:
It is recommended that the City Council consider approval of the following licenses at its July 22, 2013,
2013.
Background:
The following businesses/persons have applied for City licenses as noted. Each business/person has
fulfilled the requirements of the City Ordinance governing respective licenses, submitted appropriate
applications, and paid proper fees. Applicants for rental dwelling licenses are in compliance with Chapter
12 of the City Code of Ordinances, unless comments are noted below the property address on the attached
rental report.
MECHANICAL
JJJJ, LLC
Kath HVAC
Legacy Mechanical
Yours By Design Heating & Cooling
RENTAL
See attached report.
SIGN HANGER
A-Sign & Screen Printing Co.
7694 Brooklyn Blvd, Brooklyn Park
3096 Rice Street, Little Canada
114 Thomas Circle, Monticello
1543 126 th Avenue NE, Minneapolis
708 Lowry Avenue N, Minneapolis
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
Greater than 1
Greater than 3
3-4 units
1-2
3 units 0-0.75
COUNCIL ITEM MEMORANDUM
Rental License Category Criteria Policy — Adopted by City Council 03-08-10
Property Code and Nuisance Violations Criteria
License Category
(Based on Property
Code Only)
Type I — 3 Year
Number of Units
..•••`,1-2 units 0-1
Property Code Violations per
Inspected Unit
Type II —2 Year 1-2 units
3+ units
Greater than 1
Greater than 0.
but not more than 4
75 but not more than 1 5
- ■11■1111•••••••■1Type III — 1 Year 1-2 units Greater t11,11 but not more than 8
3+ units Greater than 1 5 but not more than 3
Type IV — 6 Months 1-2 units
3+ units
Greater than 8
Greater than 3
Number of Units Validated Calls for Disorderly Conduct
Service & Part I Crimes
(Calls Per Unit/Year)
License
Category
No Category
Impact
1-2
3-4 units
5 or more units
0-1
0-0.25
0-0.35
Decrease 1
Category
Greater than 1
Greater than 0.25
but not more than 3
but not more than 1
1-2
3-4 units
5 or more units Greater than 0.35 but not more than 0.50
Decrease 2
Categories
5 or more units Greater than 0.50
Budget Issues:
There are no budget issues to consider.
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
Eco
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City Council Agenda Item No. 6c
Member introduced the following resolution and
moved its adoption:
RESOLUTION NO.
RESOLUTION DECLARING BROOKLYN CENTER TO BE A HEALTHY
EATING AND ACTIVE LIVING COMMUNITY
WHEREAS, lack of physical activity and unhealthy eating patterns are a major
cause of overweight and obesity; and
WHEREAS, sedentary lifestyles and unhealthy eating patterns result from social,
economic, environmental, and individual factors, including: advances in technology that have
reduced physical activity (cars, television, computers, and other electronic devices); increased
marketing and consumption of unhealthy food items (high fat, sugar, sodium, and calorie
content; larger portion sizes); insufficient environmental support (sidewalks, trails, and bicycle
paths; safe streets, neighborhoods, and playgrounds; access to fresh fruits, vegetables, and full
service grocery stores); and insufficient social and policy support (nutrition and physical activity
standards for school, childcare, recreation, and workplace settings, vending machine and catering
policies); and
WHEREAS, obesity is associated with increased risk of numerous health
conditions, including coronary heart disease, stroke, and high blood pressure; type 2 diabetes,
cancers, such as endometrial, breast, and colon cancer; high total cholesterol or high levels of
triglycerides; liver and gallbladder disease; sleep apnea and respiratory problems; degeneration
of cartilage and underlying bone within a joint (osteoarthritis); reproductive health complications
such as infertility; and mental health conditions; and
WHEREAS, overweight and obesity increase the risk of premature death; and.
WHEREAS, as of 2010, more than two-thirds of United States adults were
. overweight or obese; and
WHEREAS, almost 50 percent of children are overweight or obese; and
WHEREAS, adult obesity rates have grown from 15 percent in 1980 to 34 percent
in 2008; and
WHEREAS, approximately 63 percent of Minnesota adults are overweight or
obese; and
WHEREAS, more than 23 percent of Minnesota children ages 10 — 17 are
overweight or obese; and
RESOLUTION NO.
WHEREAS, in 2007, nearly 15 percent of Minnesota children 2 — 5 years of age
enrolled in the Supplemental Nutrition Program for Women, Infants, and Children were obese;
and
WHEREAS, obesity is recognized as a public health epidemic that calls for
preventive actions by local communities to eliminate this threat to community health, well-being,
and prosperity; and
WHEREAS, the City of Brooklyn Center has a responsibility to preserve,
promote, and improve the health of its citizens by taking active steps to increase healthy eating
and active living within its jurisdiction.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota, that the City of Brooklyn Center, working in partnership with
citizens and businesses, will make every effort to support and promote healthy eating and active
living among its citizens through adoption of this Healthy Eating and Active Living Community
Resolution.
July 22, 2013
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
COUNCIL ITEM MEMORANDUM
DATE: July 12, 2013
TO: Curt Boganey, City Manager
FROM: Kelli Wick, HR Director
SUBJECT: RESOLUTION AUTHORIZING A CHANGE IN THE RATE STRUCTURE
FOR THE EMPLOYEE DUAL AND HOUSEHOLD MEMBERSHIP FEES AT
THE COMMUNITY CENTER
Recommendation:
It is recommended that the City Council consider approval/adoption of the resolution authorizing
a change in the rate structure for the employee dual and household membership fees at the
community center.
Background:
In 2009 the City Council approved a resolution authorizing employee use of the Community
Center at no charge. This also allowed for employees to upgrade to a dual or household
membership by paying the difference between the fees. After review of membership and
processes the Wellness Committee is recommending changing the rate structure for dual and
household memberships to a 20% discount off regular rates.
The review of the dual and household memberships resulted in this change request. In one
situation the employee was no longer living in the same household with the other person on their
membership. The process of monitoring the dual and household employee membership options
is cumbersome because we do not have access to their family situations or living arrangements.
Rather than eliminate the dual or household memberships the committee felt charging a higher
rate for these memberships may deter misuse.
Budget Issues:
There are no budget issues to consider.
Council Goals:
Ongoing:
1. We will provide streamlined, cost effective, quality services with limited resources
Mission' attractive, clean, safe, inclusive community that enhances the quality uf
,for all people aml preserves the public trust
Member introduced the following resolution and moved
its adoption:
RESOLUTION NO.
RESOLUTION AUTHORIZING A CHANGE IN THE RATE STRUCTURE FOR
THE EMPLOYEE DUAL AND HOUSEHOLD MEMBERSHIP FEES AT THE
COMMUNITY CENTER
WHEREAS, the City of Brooklyn Center recognizes that the health of its employees
is very important; and
WHEREAS, the Brooklyn Center Wellness Committee requested that Brooklyn
Center employees be able to use the Community Center at no charge during non-work hours in 2009;
and
WHEREAS, after review of the program and participation the Brooklyn Center
Wellness Committee is requesting to change the rate structure for dual and household memberships.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota, that Employees are authorized to use the Community Center according
to the following parameters:
1.Regular employees upon request will be provided individual memberships to the
Community Center.
2.Employees can upgrade to a dual or household membership. The cost of a dual or
household membership will be discounted 20%.
3. Use of the Community Center will be restricted to non-work hours.
July 22, 2013
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
COUNCIL ITEM MEMORANDUM
DATE:
TO:
FROM:
SUBJECT:
July 22, 2013
Curt Boganey, City Manager
Vickie Schleuning, Assistant City Manager/Director of Building & Community
Standards
Resolution Declaring a Public Nuisance and Ordering the Removal of Diseased
Trees
Recommendation:
It is recommended that the City Council declare a public nuisance and order the removal of
diseased trees for certain properties as listed in the resolution.
Background:
The attached resolution represents the official Council action required to expedite removal of
diseased trees that were recently marked by the City Tree Inspector. The City of Brooklyn
Center has maintained a policy of removing and properly disposing of diseased trees in order to
prevent tree diseases from spreading throughout the community. The removal of diseased trees
is defined in City Ordinance Chapter 20-301 to 20-306. Although the City has historically
focused on Dutch Elm disease, other transmissible diseases and infestations are addressed as
well.
Property owners are given the opportunity to remove the diseased tree on their own or enter into
an agreement to allow the City to remove the diseased tree. Where an agreement with the
property owner is executed, a minimal administrative charge of $50 is applied to the costs
associated with the tree removal.
After a diseased tree is declared a public nuisance by the City Council, another Compliance
Notice will be provided to the property owner allowing additional time, at least five days, for
voluntary correction, again providing an option for an agreement with the City. If the property
owner does not correct the violation or enter into an agreement, the City will remove the
diseased tree. An administrative abatement service charge will be charged based on the cost of
the abatement, with a minimum charge of $150.
Budget Issues:
The City's share of the cost of removal for diseased trees within the public right-of-way and on
City property is included in the 2013 budget under the Public Works Forestry operating budget.
The cost of removal for diseased trees located on private property is the responsibility of the
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
COUNCIL ITEM MEMORANDUM
respective property owner, and if unpaid, is specially assessed to the property.
Council Goals:
Strategic:
8. We will encourage citywide environmental sustainability efforts.
Ongoing:
I. We will provide streamlined, cost effective, quality services with limited resources.
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
Member introduced the following resolution and moved its
adoption:
RESOLUTION NO.
RESOLUTION DECLARING A PUBLIC NUISANCE AND ORDERING THE
REMOVAL OF DISEASED TREES AT CERTAIN PROPERTIES IN
BROOKLYN CENTER, MINNESOTA
WHEREAS, Brooklyn Center City Code Section 20-301 declares any diseased tree
a public nuisance and provides for abatement by the City if not corrected by the property owner;
and
WHEREAS, removal of diseased trees and abatement of the public nuisances is
necessary to prevent the spread of tree diseases and to protect the environmental quality and
desirability of neighborhoods; and
WHEREAS, a Notice to Abate Nuisance and a Diseased Tree Removal Agreement
has been issued to the owners of certain properties in the City of Brooklyn Center allowing the
owners twenty (20) days to remove diseased trees on the owners' property; and
WHEREAS, the City can expedite the removal of these diseased trees by declaring
them a public nuisance.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota, that:
1. The diseased tree at the following address is hereby declared to be a public
nuisance.
Pronertv Address Tree No. and Type
7020 Unity Ave N 19 — Pine
6001 Camden Ave N 20— Maple
3713 72 11d Ave N 21 — Elm
6718 Drew Ave 22 & 23 — Elm
4901 Beard Ave 24— Elm
5649 Colfax Ave 28 — Elm
1100 57 th Ave N 29 — Elm
5338 Humboldt Ave N 30— Elm
6265 Brooklyn Dr 31 — Elm
4313 66th Ave 32 — Ash
5301 Northport Dr 33 — Elm
5138 Ewing Ave N 34 — Birch
5006 Howe Lane 35 — Elm
5724 Girard Ave N 37 — Elm
RESOLUTION NO.
6006 Humboldt Ave N 41 — Elm
5406 Girard Ave N 42—Elm
6237 Bryant Ave N 43—Elm
5813 Knox Ave N 44 — Elm
5924 Washburn Ave N 45, 46, 47,& 48— Elm
6931 Ewing Ave N 50 - Elm
2.After twenty (20) days from the date of the initial notice, the property owner(s) will
receive a second written notice providing five (5) business days in which to contest
the determination of the City Council by requesting, in writing, a hearing. Said
request shall be filed with the City Clerk.
3.After five (5) days, if the property owner fails to request a hearing, the tree(s) shall
be removed by the City. The cost of abatement shall be recorded and become the
personal responsibility of the owner of record. If unpaid, the costs shall be
specially assessed to the property in accordance with city codes and Minnesota
Statutes Chapter 429.
July 22, 2013
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. 6f
COUNCIL ITEM MEMORANDUM
DATE: July 16, 2013
TO: Curt Boganey, City Manager
FROM: Steve Lillehaug, Director of Public Works/City Engineer q'S-
SUBJECT: Resolution Accepting Work Performed and Authorizing Final Payment,
Improvement Project No. 2012-10, Earle Brown and Opportunity Area Street
Lighting Replacement
Recommendation:
It is recommended that the City Council approve the Resolution Accepting Work Performed and
Authorizing Final Payment, Improvement Project Nos. 2012-10, Earle Brown and Opportunity
Area Street Lighting Replacement.
Background:
On November 13, 2012, the City Council awarded Contract 2012-J to Killmer Electric Company
of Crystal, Minnesota for the Earle Brown an Opportunity Area Street Lighting Replacement.
Killmer Electric Company has successfully completed the construction work and is requesting
final payment for the project.
Budget Issues:
The original contract amount with Killmer Electric Company for the project improvements was
$220,883.00. The total value of work certified for final payment is $216,100.70. The total project
cost including contingencies/administration/engineering/legal is $246,399.87 and was completed
4.4% over budget in the amount of $10,516.87. The attached resolution provides a summary of
the final amended costs and funding sources for the project.
Council Goals:
Strategic:
7.We will continue to maintain the city's infrastructure improvements
8.We will encourage citywide environmental sustainability efforts
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
Member introduced the following resolution and moved
its adoption:
RESOLUTION NO.
RESOLUTION ACCEPTING WORK PERFORMED AND AUTHORIZING FINAL
PAYMENT, IMPROVEMENT PROJECT NO. 2012-10, EARLE BROWN AND
OPPORTUNITY AREA STREET LIGHTING REPLACEMENT
WHEREAS, pursuant to a written contract signed with the City of Brooklyn Center,
Minnesota, Killmer Electric Company, of Crystal, Minnesota has completed the following
improvements in accordance with said contract:
Improvement Project No. 2012-10, Contract 2012-J, Earle Brown and Opportunity
Area Street Lighting Replacement
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota that:
1.Final payment shall be made on Improvement Project No. 2012-10, Contract
2012-J, Earle Brown and Opportunity Area Street Lighting Replacement,
taking the contractor's receipt in full. The total amount to be paid for said
improvements under said contract shall be $216,100.70.
2.The estimated project costs and revenues are hereby amended as follows:
COSTS As Original AwardAs Final
Lighting Contract $ 220,883.00 $ 216,100.70
Admin/Legal/Engr.$ 15,000.00 $ 30,299.17
Total Project Costs $ 235,883.00 $ 246,399.87
REVENUES
Street Light Utility Funds $ 235,883.00 $ 246,287.37
Plan and Spec. Sales -0-$ 112.50
Total Project Revenues $ 235,883.00 $ 246,399.87
July 22, 2013
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
City Council Agenda Item No. 6g
COL 1\ CT EM Mi,MORANDUM
DATE: July 16, 2014
TO: Curt Boganey, City Manager
FROM: Steven L. Lillehaug, Director of Public Works/City Engineer CO
SUBJECT: Resolution Establishing Improvement Project Nos. 2014-01, 02, 03, and 04,
Wangstad Park Area Street and Utility Improvements
Recommendation:
It is recommended that the City Council consider approval of the Resolution Establishing
Improvement Project Nos. 2014-01, 02, 03, and 04, Wangstad Park Area Street and Utility
Improvements.
Background:
In 2015, the City will be entering the 20 th year of its long-range street and utility rehabilitation
program, referred to as the Neighborhood Street and Utility Improvement Program. The program
has consisted of a systematic rehabilitation and/or replacement of the City's aging infrastructure.
This program has included the reconstruction of public streets, replacement of deteriorating
water and sanitary sewer facilities, and the construction of new storm sewer and drainage
facilities. In addition, other neighborhood improvements are often considered as part of the
projects, including park and lighting improvements, landscape improvements, and traffic control
improvement.
In accordance with the City's Capital Improvements Plan (CIP), an area referred to as the
Wangstad Park Area is programmed for improvements in 2014 (see attached map for specific
street locations). At this time, staff requests that the City Council establish this street and utility
improvement project so that investigative engineering work may begin.
The Wangstad Park Area Street and Utility Improvements project area consists of approximately
3.0 miles of streets and utilities. The area consists of approximately 266 residential properties
and 6 commercial properties. The project is expected to include complete replacement of existing
water main, sanitary sewer and all the storm drainage systems in the project area.
Typically, in order for a project to be completed within a specified calendar year, preliminary
design must commence almost one year in advance. This includes initiation of the public
notification and participation process that consists of informing affected property owners;
conducting field surveys; at least one public informational meeting; and an extensive amount of
information and data collection. Initial design also includes detailed technical engineering work,
underground infrastructure inspections and assessments, and soil/geotechnical investigations.
Upon authorization by the City Council, the following actions would take place:
a Collect data, including field surveys, review traffic counts and review maintenance
records.
Mission: Ensuring an attractive, safe, inclusive community that enhances the quality of life
for people and preserves the public mist
COUNCIL ITEM MEMO NDUM
•Evaluate project in accordance with the City's Complete Streets Policy
•Conduct storm sewer system and watermain distribution system analyses.
•Conduct televised inspections of the sanitary and storm sewers and soil/geotechnical
investigations.
•Conduct a public informational meeting in the fall of 2013 to present initial findings to
the neighborhood and to gauge public interest in the improvement project.
•Prepare a feasibility report for review by the City Council. The City Council could then
consider setting a date for a project hearing.
To date, the City has completed 78.5 miles of local street and utility reconstruction since
initiating the Neighborhood Street and Utility Improvement Program. This represents
approximately 75% percent of the total local roadways within Brooklyn Center.
Budget Issues:
The Wangstad Park Area Street and Utility Improvements project is identified in the City's
Capital Improvement Program with a preliminary project cost estimate of $7,080,000. The
estimated cost for preliminary field work, preparation of a project feasibility report and design is
$236,000.
Council Goals:
Strategic:
7. We will continue to maintain the city's infrastructure improvements
Ongoing:
5. We will ensure the City drinking water is high quality and that the storm water is
properly managed
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
Member introduced the following resolution and moved
its adoption;
RESOLUTION NO.
RESOLUTION ESTABLISHING IMPROVEMENT PROJECT NOS. 2014-01, 02,
03, AND 04, WANGSTAD PARK AREA STREET AND UTILITY
IMPROVEMENTS
WHEREAS, the City's Capital Improvement Program identifies specific streets for
proposed infrastructure improvements in 2014; and
WHEREAS, the City Council has reviewed the scope of proposed improvements for
the Wangstad Park Area; and
WHEREAS, the City Council desires to begin the process of information gathering
and solicitation of public comments
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota, that:
1.Improvement Project Nos. 2014-01, 02, 03, and 04, Wangstad Park Area
Street and Utility Improvements are hereby established.
2.Staff is directed to begin field work, contact property owners in the
neighborhood to obtain comments and input, and hold public informational
meetings for property owners in the neighborhood where improvements are
proposed.
3.The City Engineer shall prepare a project feasibility report for review by the
City Council in the fall of 2013.
4.Estimated project costs for preliminary field work, geotechnical
investigations, and sewer televising costs are as follows:
COST AMOUNT
Preliminary Design and Plan Prep. $160,000
Televising $ 5,000
Field Survey $ 15,000
Geotechnical Investigation $ 20,000
Storm Sewer system analysis $ 28,000
Watermain system analyses $ 8,000
Estimated Costs Total $236,000
RESOLUTION NO.
REVENUES AMOUNT
Sanitary Sewer Utility Fund $ 53,000
Water Utility Fund $ 66,500
Storm Sewer Utility Fund $ 50,900
Street Reconstruction Fund $ 65,600
Estimated Revenues Total $236,000
July 16, 2013
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.
Wangstad Park Area Improvements
The Wangstad Park area extends from
Noble Avenue to Brooklyn Blvd and
from 63r d Avenue to 61s t Avenue.
The total project length is 15,884 feet.
The neighborhood consists of
approximately 266 residential
properties (R1 and R4) and 6
commercial properties (Cl).
Streets
June Avenue from 61s t to 63rd is a
designated Municipal State Aid
Route. The majority of the streets in
the project area were originally
constructed between 1966 and 1968.
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Existing streets are generally 30 feet wide with no curb and gutter. The street pavement is deteriorated
throughout most of the neighborhood. The overall pavement condition rating is poor. Proposed street
improvements consist of the reconstruction of the street subgrade, installation of curb and gutter to improve
drainage and placement of bituminous street pavement.
Water main
The existing water main in the project area is 6-inch and 8-inch diameter cast iron pipe installed in 1955 and
between 1960 and 1969. A majority of the existing water main is believed to have a cement based internal liner.
The corrosion rate within the project area has not been thoroughly documented at this time. Water records
indicate that three main breaks have occurred within the neighborhood. The current cost estimate includes
complete replacement of the water main.
Sanitary Sewer
The sanitary sewer in the project area consists of 8-inch diameter vitrified clay pipe (VCP) installed between
1956 and 1960. Approximately 81 percent of the sanitary sewer is subjected to frequent problems with root
intrusion. Root sawing must be performed on an annual basis to maintain the system conveyance capacity. The
condition of the sanitary sewer system within the neighborhood is rated as poor. Complete replacement of all
sanitary sewer pipes and access structures are proposed as part of the project.
Storm Sewer
The Wangstad Park neighborhood has only one short stretch of storm sewer on 61s t Avenue. An expansion of
the storm drainage system within the project area is necessary to reduce local flooding and preserve street
pavement. The existing storm sewer in the project area flows from France Avenue to Brooklyn Blvd. The pipe
size and material are unknown. The cost estimate for this project area assumes new storm sewer installation in
the entire project area.
Street Lighting
The existing street light system is overhead power, with wood poles and a cobra head light fixture. The current
cost estimate includes replacing the 6 wood poles with 6 fiberglass poles with a decorative rectilinear fixture and
underground power.
i
Project Summaries Page 111
2014-2028 Capital Improvement Program
City Council Agenda Item No. 7a
COUNCIL ITEM MEMORANDUM
DATE: July 16, 2013
TO: Curt Boganey, City Manager
FROM: Jim Glasoe, Director of Community Activities
Recreation and Services
SUBJECT: Resolution Expressing Appreciation for the Donations of the Brooklyn Center
Walmart Store in Support of the Earle Brown Days Celebration
Recommendation:
It is recommended that the City Council consider approval/adoption of a resolution accepting
and recognizing the donations from the Brooklyn Center Walmart store in support of the 2013
Earle Brown Days civic celebration
Background:
The Brooklyn Center Walmart store provided 19 boxes of individual chips, 26 cases of water, 75
packages of buns, 38 packages of hot dogs and ketchup and mustard to support this year's Earle
Brown Days Festival Dunkin's Jamboree event? The total cash value of this generous donation
was $622.22
With these donations, the Brooklyn Center Walmart store has gone "above and beyond" in
supporting the City of Brooklyn Center! Walmart is truly a company committed to creating
"community".
Budget Issues:
There are no budget issues to consider.
Council Goals:
Strategic:
4. We will improve the City's image
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
Member introduced the following resolution and moved its
adoption:
RESOLUTION NO.
RESOLUTION EXPRESSING APPRECIATION FOR THE DONATIONS OF THE
BROOKLYN CENTER WALMART STORE IN SUPPORT OF THE EARLE
BROWN DAYS CELEBRATION
WHEREAS, the Brooklyn Center Walmart store has presented to the City a
donation of 19 boxes of individual chips, 26 cases of water, 75 packages of buns, 38 packages of hot
dogs, ketchup, and mustard with a value of Six Hundred Twenty Two Dollars ($622); and
WHEREAS, they have designated that the donations be used to support the 2013
Earle Brown Days Festival Dunkin's Jamboree Event; and
WHEREAS, the City Council is appreciative of these donations and commends the
Brooklyn Center Walmart store for its civic efforts.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota:
1. Acknowledges the donations with gratitude.
July 22, 2013
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. 8a
COUNCIL ITEM MEMORANDUM
DATE: 17 July 2013
TO: Curt Boganey, City Manager
FROM: Daniel Jordet, Director of Financ
SUBJECT: Public Hearing on Request for uthorization to Issue Conduit Revenue Bonds
ASG Brooklyn Center/Odyssey Academy
Recommendation:
It is recommended that, following a public hearing on the item, the City Council consider a
resolution authorizing the issuance of conduit revenue bonds on behalf of Odyssey Academy and
ASG Brooklyn Center.
Background:
On May 26, 2013 the City received an application for Conduit Revenue Bond Financing from
ASG Brooklyn Center, a non-profit corporation, to finance the purchase and renovation of the
property at 6201 Noble Avenue (copy attached). The property was formerly operated as Orchard
Lane Elementary School and is currently owned by the Osseo Independent School District 279.
The building has for several years been leased to Odyssey Academy, a non-profit charter school,
for its operations.
While Odyssey would like to purchase the property and implement renovation and deferred
maintenance projects, it is prohibited by State law from owning real property. A non-profit
corporation was formed, unaffiliated with Odyssey but with the specified intent of acquiring,
renovating and leasing the property to Odyssey. This corporation, ASG Brooklyn Center, will be
overseen by a three member Board of Directors. ASG's source of revenue will be Odyssey's
allotment of Lease Aid from the State of Minnesota, which is based on enrollment.
The Bonds will be in a principal amount of $ 5,300,000. $ 5,000,000 of the issue will be tax
exempt and $ 300,000 will be taxable. Taxable bonds are issued when administrative costs
exceed 2.00% of the face value of the bonds. They will be amortized over 30 years at an
estimated interest rate of 7.00%.
The bonds, if issued, will carry the City of Brooklyn Center's name. Full fiscal, legal and moral
responsibility for repayment of the debt, however, will rest solely with ASG. ASG's sole source
of revenue will be Odyssey Academy and the State Funded Lease Aid provided to Odyssey. The
City faces no liability for repayment of the bonds using either City reserves or any levy against
the City's tax base. Likewise, neither positive nor negative activity with this bond will affect the
City's bond rating with Standard & Poor's.
Four informational memorandums have been sent to you and the Council describing the process
of developing this bond issue request for an action item. This process has included reviewing
financial statements, reviewing financial forecasts, reviewing lease and proposed lease
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
COUNCIL ITEM MEMORANDUM
documents and reviewing draft bond documents. The underwriter of the proposed issue, B.Z.
Ziegler and Company, has also prepared a draft Official Statement (copy attached) with
additional technical details about the issue, about Odyssey Academy, and about the ongoing
administration of the bonds following issuance. The City Council has met on two previous
occasions in public meetings to review materials and discuss issues. The July 22, 2013 regular
meeting will include a public hearing on this matter, notice of which was published in the
Brooklyn Center Sun Post on July 4, 2013. Following the public hearing it will be the City
Council's option to take action on the proposed issuance of $ 5,300,000 of conduit revenue
bonds.
Budget Issues:
As detailed in the Conduit Debt Administrative Guidelines of the City, a fee of 0.50% of the face
value of the bonds is charged to the applicant. This issue would produce $ 26,500 in revenue to
the City of Brooklyn Center. The Guidelines also indicate that the applicant will pay the costs of
the legal counsel of the City in this matter. The applicant has also paid a $ 3,000 non-refundable
application fee.
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
I City of Brooklyn Center
Application for
Conduit Revenue Bond Project Financing
1. Applicant
a.Business Name - ASG Brooklyn Center
b.Business Address - 801 Nicollet Mall, Suite 325
Minneapolis, Minnesota 55402
c.Business Form [8]Corporation 0 Partnership 0 Individual 0 Other
d.Authorized Representative - Name Greg Gredvig
Title Board Chair
Telephone 612-709-7658
. Name(s) and Addresses of Major Stockholders or Principals:
a.Name N/A (Applicant is a Address
non-profit corporation with
no owners or principals
b.Name Address Title
c. Name Address Title
Title
3.Give Brief Description of Nature of Business, Principal Products, Etc.:
Applicant's sole purpose is to open the facility at 6201 Noble Ave North and lease the facility to
Odyssey Academy
4.Purpose of Requested Financing:
Purchase of facility at 6201 Noble Avenue and completion of deferred
a.0 New Facility? (describe) maintenance and some renovations
Located at?6201 Noble Avenue North, Brooklyn Center, Minnesota
b.0 Expansion? (describe)
DOCS -#3897668 -v1
. . .5. Project Cost and Financing
For: Land $3,876,000
Building
Equipment
Loan and Legal Fees
$ 411,747
Interest During Construction
Contingency
$ 150,000
Other Fees and Costs
$ 641,653
Total Cost
$5,080,000
Less Equity -0-
Financing Requested $5,080,000
6. Have You Applied For Conventional Financing?
a.Yes Describe -
Tax-exempt bond financing was more advantageous to the school because of the
current interest rate environment. Also, $500,000 -$1,000,000 of equity for
b.No Why Not? conventional financing was not available.
7. Business Profile:
a.Are you located in the City of Brooklyn Center Now? El Yes 0 No
b.Number of employees in Brooklyn Center
i. Before this project 46
Ii After this project 50
c.Approximate annual sales $3,670,000
d.Length of time in business 15 yrs.
e.Do you have plants in other locations?
In Brooklyn Center - 11 yrs.
0 Yes 13 No If Yes Where?
f.Attach a brief biographical-type write-up on your Company or Business. See attached.
NOTE: ALL RESPONSES TO THIS SECTION RELATE TO THE SCHOOL, NOT THE BORROWER.
8. Names Of:
a. Underwriter — Firm Name B.C. Ziegler & Co. Address 200 S. Wacker Dr., Suite 2000
Chicago, IL 60606
Representative Will Fossel Telephone 312-705-7236
i. Has preliminary financial analysis by underwriter required by City policy been completed and attached to this
application along with the loan application? El Yes 0 No See attached.
b.Bond Counsel — Firm Name Kennedy & Graven Address 200 S. 6 th Street, Ste. 470
Minneapolis, MN 55402
Attorney Name Ben Johnson Telephone 612-337-9259
c.Corporate Counsel — Film Name Lindquist & Vennum Address 80 S. 8th Street, Ste. 4200,
Minneapolis, MN 55402
Attorney Name Craig Kepler Telephone 612-371-3544
2
DOCS -#3897668 -v1
9.Have you ever been in bankruptcy 0 Yes 1E3 No Defaulted on any Bond or Mortgage
Commitment' 0 Yes IN No
If yes, give details,
10.What is your target date for:
a.Construction start - July 23, 2013
b.Construction Completion September 1, 2014
11. Do you have preliminary City approval for zoning and construction? 0 Yes
a.If "yes", then please ask those City Departments to send preliminary approval memos to the Finance.
Department N/A We are not doing work that impacts zoning, primarily interior cosmetic updates.
b.If "no", then please submit preliminary site and building plans to Building & Community Standards and Public
Works Department prior to submitting this application if possible. N/A We are not doing work that impacts
zoning, primarily interior cosmetic updates.
12. Financial References:
a.Bank Sunrise Banks, Kathy Bjerke, 651-523-7833
b.Mortgage
c. Other Conduit Revenue Bonds, if any (give name of Trustee)
ASG Brooklyn Center
Applicant
By:
Greg Gredvig
Board Chair
Date
/.2c)(
For Further Information, Contact:
Finance Department
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
Telephone (763) 569-3345
(Also, note that a $3,000 non-refundable processing fee is to accompany this application.
Issuance fee is calculated as follows: 0.50% of par up to $20,000,000, plus 0.15% of par in excess of $20,000,000.)
3
DOCS-#3897668-v1
5/22/13 Overview of Odyssey Academy
Odyssey Academy-History and Mission
Odyssey Academy is a Minnesota nonprofit corporation and a governmental agency of the State
of Minnesota. Odyssey was incorporated May 1, 1998, and services grades K-8. Odyssey is
located in Brooklyn Center, Minnesota with 288 students currently enrolled. The school plans to
increase enrollmentto 333 students for the 2013-2014 school year and increase enrollment to
360 students within 3 years.. Odyssey is authorized by The Audubon Center of the North
Woods. The majority of the students attending the school come from Minneapolis, one of the
lower performing school districts in the state.
Odyssey Academy is committed to providing a nurturing, innovative, and challenging
environment emphasizing independent thinking, active learning, high academic achievement and
social responsibility through paituerships with families, teachers, and communities.
The Fundamental values and beliefs that support the mission, goals, and programs of Odyssey
Academy are:
•Children, by nature, are learners and are capable of high achievement;
•Families are the first and primary educators for children;
•Children need a safe learning environment, accepting of their individuality and diversity
learning styles and abilities;
•Learning occurs best when positive, long-lasting relationships exist between families,
educators, and communities; and
•Children become involved citizens and contribute to the community when they
experience supportive environments and caring relationships with others.
Odyssey Academy-Academic Program
Odyssey teaches the general curriculum framework well aligned with Minnesota State standards,
Odyssey's comprehensive program of instruction is based on best practices and research-based
data supporting the efficacy of this rich and rigorous curriculum. The school takes pride in
promoting project-based learning that is taught within a nurturing community.
Through philosophy and practice, Odyssey Academy seeks to fulfill the following purposes for
establishment of charter schools as stated in law:
•Improve student learning
o Maintaining small class sizes (maximums of 18:1 in kindergarten and 22:1 in
grades 1-8)
o Special service (Title I, mentoring, special education)
o Systematic assessments and reporting to parents (parents are partners in the
process)
o Summer programming to eliminate the learning slump between spring and next
fall
Increase learning opportunities for students
o Environmental education (including residential grades 1-8)
o Spanish taught grades K-8 for all students
o Extensive accessibility and use of technology
o Student peer helpers
4
DOCS-#3897668-v1
Use of different and innovative teaching methods
o Use of project-based learning principles
o Multi-grade groupings
o Man-ling
o Experiential learning
Create different and innovative forms of measuring student outcomes
o Curriculum aligned to Minn e sota standards, but often the approach is different
o Students and parents partners in education (volunteerism and mentoring)
Measurement Of student learning
o Multiple assessments:
o Student demonstrations and exhibits 3 times per year
o State assessments
o Standardized assessment at all grades (NWEA 3 times per year, AIMSweb
ongoing) -
Create new professional opportunities for teachers
o 1/3 of School Board is Made up of Odyssey staff
o All teachers are members of Professional Learning Communities (meet 3 times
per mo.)
o Lead team of teachers advises Executive birector
o School Improvement Committee provides direction to individual and school-wide
professional developrrient
5
DOCS-#3897668-v1
427-,40
Zieo. er
PRELIMINARY BOND STRUCTURE
AS OF MAY 2STR, 2013
Issuer: City of Brooklyn Center {Issuer')
Description: Series 2013 Revenue Boads (the 'Bonds')
School: Odyssey Academy the 'School)
B o x-rower: ASG Brooklyn Center the 'Borrower') to be managed b sr.eivtirey
separate board from the School. The board will comprise a total of 3
- two charter school and experience-d real estate
profes.sionals and an experienced financial professional employed at
Wells Fargo.
Underwriter:
Credit Ratios-,
Purpose:
Par Amount of Bonds:
Repayment:
Collateral & 'Security:
P1-12 10:V01v:102 03 13
Ziezles and Company (‘Ziester")
The School will not apply for s Credit Rating the 'Ratins=)
The expected use of bond proceeds is to provide Odysse7,- Ac.aderar
with the necessary funds to 1) finance the acqui.sition of a) a 4,8,116
sq.. ft.., two-sto_ry building and b) 1.2.73 acres of lancl, 2i .s.) replace the
fixtures and tloorinsz that hare outlived their useful lives b) provide
for red.esisznrrit , renovations to meet .security needs, upsracle lighting in
the chisslooms. and American with Disability Act updates, c) install air
conditioning to accommodate the newly established summer extended
day prozr.arniniag,. d repir the exterior shell of the property and the
park-Utz lot and e'! install exterior signa..1-re to better iderify the sc..hoo.,I,
3) fund a debt service reserve fund, 4) fund up to 6 months of
ca,..?italize-d interest on the bonds, and 5) pay for certain costs of
iss.uance related to this financin2-
Approiriately $4,E,O..000 in tax-exempt bond proceeds and $300,000
in taxable bond proceeds. This includes a purchase price of
S2,324,00 ,0 for the land and anprovements and S1,430,00,0
renovations plus capitalited interest, a debt service reserve fund and
costs of issuance of the bonds.
semi:a :10.1,7-.111 interest and annual principal payin-snts .„
fund payntents
First mortgage lien and appropriate title insumace on land and
buildinz,s located at 6201 Noble Avenue North, Brooklyn
Center, MN 55429;
6
DOCS-#3897668-v1
Ponty lien on all revenues of the Borrower subiect to the
Intercieditor Asreement for Operating . Line of Credit;
School to eater into Account Control ..eement
with tsnstee
Oa) The Borrower will have secured a .30-Tear lease
from the School in which the School's payinents
from state lease aid will, at mmum. fully cover
debt set-vice and related empenses for the entire
maturity of the taix-e..mempt bond
(iLl. Fully funded Debt Service Reserve Fund eqnal to the lesser of
inariinum annual debt service, esclncling final year,
of pat amotant, and 33 1 -25',.of average a1 adinsted debt
service, excinding final year
Financial Conant
Repair & Rep cement Fund to be funded as follows: $2.000 to
be deposited monthly b...0-;-ining July 1, 2014 unbl the balance is
5100,000
To be finalized. espected Annual Debt Service Covera: Ra6o
of at least 1,,20 commencinz. June 30, 2014 and each pine 30
thereafter
To be finalir.ed, erected .Days Cash on Hand of at 'east 45
clays cointnenciing, June :0, 2014 and each Tnne 30 thereafter
Additional debt test to be negotiated
Finimcial Reporting The School shard provide:
Requirements;
Interitallv prepared, unaudited quarte-tly filiancial statements
including a balance sheet, income statement. and statement of
cash flows to be provide-cl within 45 days of Twitter end
Annual audited financials within 150 days of FIE
Submission of annual compliance c iicate signed by the
School u-ithin 120 days of FI —E„
j- EnrolLment and andel-me data to be released on an annual
basis
Annual 13 ,1-aver of the School within :0 days of board approval
ixi) Provide forecasts andoa other informaon as may be
PH2 10.SSC‘01v2021.15
7
DOCS-#3897668-v1
reasonably resnested by Ziegler
:aye St01 caLis
Conditions Precedent: blit not knited to. the following, with docliments to be
5..AtisfactoiT in form and snbstance to Ziegler.
Evidence satisfactorr to Ziegler that the School is anthorized
enter into this transacb.on
Review of underfring bond clocntnents satisfactorr to Z•ezler
and their underwh.ter's counsel including satisfactoq legal
opinions
Receipt of a satisfactc.lry GIlaranteed 3.1a7-ii -unm Price
czonstmc tion contm.,t for the renovaons of the Facility
iv Cr-trent MiAil certified appraisal to be provided to Zieg,ler
facilities being financed with the Sees 2013 Bonds
Submission of Phase I envirormiental report to be ordered and
paid for b7,- the School
(vi‘.., inaterial adverse chailge in the condition, financial or
otherwise. o..,erations, properties, assets or prospects of the
School
vsi No material threatened or pending litigation or material
contingent obligations
Documentation: Financing documents in form and substance satisfactorr to Ziegler
must be executed and delivered containing representations. warranties,
covenants, conditions to financiiaq, events of default and other
• provisions as are appropriate in Ziegler's c.pinion.
This summary is not A commitment by Ziegler to purchase all or any part of the bonds or
provide financing for any projects contemplated herein. All terms and conditions of any
potential underwriting are subject to the signing. of an engagement letter with Ziegler,
subject to the terms and conditions contained within said engagement letter,
PH2 10.389011-2021.15
8
DOCS-#3897668-vl
Ziegler
SOURCES AND USES OF FUNDS
City of Brooklyn Center
Charter School Revenue Bonds, Series 2013
(Odyssey Charter School Project)
*** PRELIMINARY - Tax-Exempt @ 7.00%, $100k of Cap-I ***
Sources of Funds
Par
Amount
Plus:
Accrued
Less:
Discount Total
Bond Proceeds:
Tax-Exempt Term Bond 5,000,000.00 5,000,000.00
Taxable Term Bond 300,000.00 300,000.00
5,300,000.00 0.00 0.00 5,300,000.00
Par Plus:Less:
Uses of Funds Amount Accrued Discount Total
Project Fund Deposits:
Property Acquisition 2,524,000.00 2,524,000.00
Improvements - Hard Costs 1,430,000.00 1,430,000.00
Project Contingency 115,000.00 115,000.00
Additional Project Costs 47,000.00 47,000.00
4,116,000.00 4,116,000.00
Other Fund Deposits:
Debt Service Reserve Fund 424,300.00 424,300.00
Capitalized Interest Fund 100,000.00 100,000.00
524,300.00 524,300.00
Delivery Date Expenses:
Cost of Issuance 278,039,23 278,039.23
Underwriter's Discount 119,250.00 119,250.00
397,289.23 397,289.23
Other Uses of Funds:
Cushman & Wakefield Developer Fee 125,000.00 125,000.00
Brokerage Fee 134,280.00 134,280.00
Additional Proceeds 3,130.77 3,130.77
262,410.77 262,410.77
5,300,000.00 0.00 0.00 5,300,000.00
Notes:
1)Assumes issuer fee of $20k, trustee fee of $5k, and bond counsel fee of $50k.
2)Reserve fund earnings assumed to earn 0.60%.
3)Additional project costs include $7k architect fees, $30k asbestos abatement, & $10k in structural engineer fee.4)Preliminary and subject to change.
Jul 10, 2013 11:25 am Prepared by Ziegler Investment Banking Page 1
Ziegler
COST OF ISSUANCE
City of Brooklyn Center
Charter School Revenue Bonds, Series 2013
(Odyssey Charter School Project)
*** PRELIMINARY - Tax-Exempt @ 7.00%, $100k of Cap-I ***
Cost of Issuance $/1000 Amount
Bond Counsel 9.43396 50,000.00
Borrower Counsel 7.54717 40,000.00
Underwriter Counsel 7.54717 40,000.00
Financial Forecast 2.16981 '11,500.00
Market Study 2.26415 12,000.00
Facility Inspection/10 Yr. Cap 1.41509 7,500.00
Environmental Inspection 0.56604 3,000.00
Asbestos, Radon, Paint Inspect 0.56604 3,000.00
Appraisal 0.94340 5,000.00
Misc Project Fees 3.19340 16,925.00
Issuer Fee 5.00000 26,500.00
Trustee Fee 0.94340 5,000.00
Closing Fee 0.18868 1,000.00
Commitment Fee 0.13113 695.00
Title Premium 1.08962 5,775.00
Endorsement Fee 0.09434 500.00
Disbursing Fees - 12 @ $250 0.56604 3,000.00
Priority Recording and Picture 0.02830 150.00
Mortgage Registration Tax 2.46274 13,052.50
Recording Fees 0.16981 900.00
OSBO Monies due to Odyssey 6.13995 32,541.73
52.46023 278,039.23
Jul 10, 2013 11:25 am Prepared by Ziegler Investment Banking Page 2
PRELIMINARY OFFICIAL STATEMENT DATED JULY , 2013
5 ti. .P. BOOK-ENTRY ONLY RATING: Standard & Poor's: " 5 9
7 < / 7 SEE "BOND RATING"=
., a) In the opinion of Kennedy & Graven, Chartered, Saint Paul, Minnesota, as Bond Counsel to the Issuer, under existing laws, regulations, rulings,
and decisions, and assuming compliance by the Issuer, the Charter School, and the Company with all requirements of the Internal Revenue Code of 1986,,
5 as amended, interest on the Series 2013A Bonds is excluded from gross income of the owners thereof for federal income tax purposes or in taxable net
income of individuals, estates or trusts for Minnesota income tax purposes, and is not an item of tax preference for purposes of the computation of
federal or Minnesota alternative minimum tax imposed on individuals and corporations. Interest on the Series 2013A Bonds is subject to the Minnesota,-.-,
5 t', franchise tax measured by income and imposed on corporations and financial institutions and is included in adjusted current earnings for the proposes of
- computation offederal alternative minimum tax imposed on corporations. No opinion will be expressed by Bond Counsel regarding other state or federal tax
consequences caused by the receipt or accrual of interest on the Series 20I3A Bonds or arising with respect to the ownership of the Series 20I3A Bonds.5. -0: 0 Interest on the Series 20138 Bonds is taxable as ordinary income for federal and State income tax purposes. See "TAX MATTERS" herein.
? '6- , -2 O THE CITY OF BROOKLYN CENTERc: ..CHARTER SCHOOL LEASE REVENUE BONDS0 -6'(ODYSSEY ACADEMY CHARTER SCHOOL PROJECT)0 ,..' t.-..;.' •n .a. $4,790,000* SERIES 2013A
ii $290,000* TAXABLE SERIES 2013B
z — —Dated: Date of Issuance Due: July 1, as shown on the inside front cover
0 a; z-,,,- The above-referenced (i) Charter School Lease Revenue Bonds (Odyssey Charter School Project), Series 2013A (the "Series 2013A
2 2 7, Bonds"), in the original aggregate principal amount of $4,790,000*, and (ii) Taxable Charter School Lease Revenue Bonds (Odyssey Charter
School Project), Series 2013B (the "Series 2013B Bonds," and together with the Series 2013A Bonds, the "Series 2013 Bonds"), in the original
j'2 ':,)' aggregate principal amount of $290,000*, are special, limited obligations of the City of Brooklyn Center (the "Issuer"). The Series 2013 Bonds
5 r, do not constitute general obligations or a debt, liability, or pledge of the full faith and credit of the Issuer, the State of Minnesota (the "State"), the
.4 . :_-'. --E' Issuer or of any political subdivision or agency thereof. The Series 2013 Bonds are not secured by or payable from any taxes, revenues or
5,`'-' 72 assets of the Issuer except for the Issuer's interest in the Loan Agreement and amounts held pursuant to the Indenture as described herein.
2 0 _ Undefined capitalized terms used herein are defined in the text hereof or APPENDIX I of this Official Statement.
5 7-', 3
:=.- °,, 2. . :3-- , Pursuant to the Loan Agreement, all proceeds of the Series 2013 Bonds will be loaned by the Issuer to ASG Brooklyn Center, a -
5 !--•.' t4..— Minnesota non-profit corporation (the "Company"). Proceeds of the Series 2013 Bonds will be used by the Company to: (i) finance theEr) g,acquisition, renovation, construction and equipping of (a) an existing approximately 48,116 square foot school building located at 6201 Noble
Avenue North in the Issuer, all for use as a public charter schoolhouse for kindergarten through grade eight (the "Schoolhouse"), to be owned
.7. by the Company and leased to Odyssey Academy Charter School, a Minnesota nonprofit corporation (the "Charter School"); (ii) fund the
2 r.. ej Reserve Fund; (iii) finance the payment of a portion of the interest on the Series 2013 Bonds; and (iv) finance the payment of the costs ofz c, v
issuing the Series 2013 Bonds.
17 . i-3 a.!
i-j, 72" $2 The Series 2013 Bonds will be payable from the money held for the payment thereof by U.S. Bank, National Association, as Trustee under the
• 9- Indenture, including amounts held in the Reserve Fund and Loan Repayments to be made by the Company under the Loan Agreement. The
'SeriesSeries 2013 Bonds will be secured by a mortgage lien on and security interest in the Schoolhouse and an assignment of all rents, revenues and
- 77,14 t profits of the Project in favor of the Trustee, subject to certain Permitted Encumbrances. The Schoolhouse will be leased by the Company to5 TA E;r, 7.6,. the Charter School pursuant to a Lease Agreement, which the Company assigns to the Trustee and under which the Charter School will be
... required to make Lease Payments in amounts sufficient to pay debt service on the Series 2013 Bonds, plus certain other payments.= a .n
E' B 8The Series 2013 Bonds will be issued as fully registered bonds in the denomination of $100,000 or any integral multiple of $5,000 in excess
-'---,. -- thereof and will initially be registered in the name of Cede & Co., as registered owner and nominee for The Depository Trust Company, New York,??. ,_, ,I 7
-3 2 -,--c, New York ("DTC"). Purchases of the Series 2013 Bonds will be made in book-entry form only. Purchasers of beneficial interests will not receive
= .-- ',5 certificates representing their interest in the Series 2013 Bonds.
If) 1 g
l'_-4, "4:i- The Series 2013 Bonds are subject to redemption as described herein under "THE SERIES 2013 BONDS - Redemption of Series 2013 Bonds."5 E.: :'-E") An investment in the Series 2013 Bonds is subject to certain risks. See "BONDHOLDERS' RISKS" herein. This cover page contains certain information
''-',' for quick reference only. This cover page is not intended to be a summary of the Series 2013 Bonds or the security therefor. Investors must read the
entire Official Statement, including the Appendices hereto, to obtain information essential to the making of an informed decision.
E "-7 O_0E- . ,„.:-:tri > . The Series 2013 Bonds are offered when, as and if issued and accepted by B.C. Ziegler and Company (the "Underwriter"), subject to the
2 '3 14. opinion as to the validity and tax-exempt status of the Series 2013A Bonds and the validity of the Series 2013B Bonds by Kennedy & Graven,.?-
..r., .,..,_, .E.., Chartered, Saint Paul, Minnesota, Bond Counsel to the Issuer. Certain legal matters in connection with the Series 2013 Bonds will be passed upon for
the Underwriter by Fox Rothschild LLP, Philadelphia, Pennsylvania, for the Charter School by Lindquist & Vennum PLLP, Minneapolis, Minnesota,-
ii --.) %-•••-'7 3 F, u and for the Company by Linguist & Vennum PLLP, Minneapolis, Minnesota. It is expected that the Series 2013 Bonds will be delivered on or about
•E-q • `-= July , 2013. For information with respect to the Underwriter, see "UNDERWRITING" herein.:-..' c/D ‘5.
1:..3 Tz '-'
3 ' B.C. Ziegler and Company
.-.: .
ii ..g 0
t'..... ,i,
— r)
*Prelintinaty; subject to change.
20810983v2 07/10/2013
SEE THE INSIDE FRONT COVER FOR THE MATURITY SCHEDULES FOR THE SERIES 2013 BONDS
The date of this Official Statement is July , 2013
MATURITY SCHEDULES
$4,790,000*
The City of Brooklyn Center
Charter School Lease Revenue Bonds
(Odyssey Academy Charter School Project)
Series 2013A
Maturity Date Principal
(July 1)* Amount Interest Rate Price CUSIP**
2017
2018
2019
2020
2021
2022
2023
% Series 2013A Term Bonds Due July 1, 2028*
Price of % to Yield %
CUM): **
* % Series 2013A Term Bonds Due July 1, 2033*
Price of % to Yield %
CUSIP: **
* % Series 2013A Term Bonds Due July 1, 2043*
Price of % to Yield %
CUSIP: **
$290,000*
The City of Brooklyn Center
Taxable Charter School Lease Revenue Bonds
(Odyssey Academy Charter School Project)
Series 2013B
* % 2013B Term Bonds Due July 1, 2017*
Price of % to Yield %
CUSIP: **
Preliminary; subject to change.
** CUSIP data is provided by Standard & Poor's, CUSIP Service Bureau, a Standard & Poor's Financial Services, LLC
business. The CUSIP numbers listed above are being provided solely for the convenience of bondholders only at the time of
issuance of the Series 2013 Bonds and neither the Issuer nor the Underwriter nor the Company makes any representation with
respect to such numbers or undertake any responsibility for their accuracy now or at any time in the future.
For a schedule of the mandato"), sinking find payments with respect to each maturity of the Series 2013 Bonds, see "THE
SERIES 2013 BONDS — Redemption of Series 2013 Bonds—Mandatory Sinking Fund Redemption" herein.
20810983v2 07/10/2013
Issuer
The City of Brooklyn Center
Brooklyn Center, Minnesota
Company
ASG Brooklyn Center
Brooklyn Center, Minnesota
Charter School
Odyssey Academy Charter School
Brooklyn Center, Minnesota
Charter School Officials
Jodie Hadenbrook, Chairperson
Alicen Thorstad, Vice Chairperson
Danielle Gruber, Clerk
Jim Rosengren, Treasurer
Faaria Husain, Member
Kris Lawrence-Anderson, Member
Pa Modou Aim, Member
Anna Morphew, Member
Barb Newbauer, Member
John Sedey, Executive Director
Dona Fehr, Business Manager
Kari Mitchell, Director of Operations
Bond Counsel to the Issuer
Kennedy & Graven, Chartered
Saint Paul, Minnesota
Charter School's Counsel
Lindquist & Vennum PLLP
Minneapolis, Minnesota
Company's Counsel
Lindquist & Vennum PLLP
Minneapolis, Minnesota
Underwriter
B.C. Ziegler and Company
Chicago, Illinois
Underwriter's Counsel
Fox Rothschild LLP
Philadelphia, Pennsylvania
Trustee and Paying Agent
U.S. Bank National Association
Minneapolis, Minnesota
20810983v2 07/10/2013
No person has been authorized by the Issuer, the Underwriter, the Company, or the Charter
School to give any information regarding the Series 2013 Bonds, the Company, the Charter School, the
Schoolhouse, the Project, the offering contained herein and related matters or to make any representations
other than those contained in this Official Statement and if given or made, such other information or
representations must not be relied upon as having been authorized by any of the foregoing. This Official
Statement does not constitute an offer to sell or the solicitation of an offer to buy in any state in which it
is unlawful for any person to make such offer or solicitation. The information contained in this Official
Statement has been furnished by or on behalf of the Company and the Charter School and other sources
which are believed to be reliable. The information and expressions of opinion herein are subject to change
without notice, and neither the deliveiy of this Official Statement nor any sale made hereunder shall, under
any circumstances, create any implication that there has been no change in the affairs of the parties referred to
above since the date hereof.
The information and expressions of opinion herein are subject to change without notice and
neither the deliveiy of this Official Statement at any time nor any sale made hereunder creates any
implication that the information herein is correct as of any time subsequent to its date.
The Underwriter has provided the following sentence for inclusion in this Official Statement.
The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part
of, the Underwriter's responsibilities to investors under the, federal securities laws as applied to the facts
and circumstances of this transaction, but the Underwriter does no guarantee the accuracy or
completeness of such information.
Neither the Issuer nor any of its members, agents, employees or representatives have reviewed
this Official Statement or investigated the statements or representations contained herein, except for those
• statements relating to the Issuer set forth under the captions "THE ISSUER" and "ABSENCE OF
LITIGATION - Issuer." Except with respect to the infoimation contained under such captions, neither
the Issuer nor any of its members, agents, employees or representatives makes any representation as to the
completeness, sufficiency and truthfulness of the statements set forth in this Official Statement. Members
of the governing body of the Issuer and any other person executing the Series 2013 Bonds are not subject
to personal liability by reason of the issuance of the Series 2013 Bonds. The Issuer assumes no
responsibility for this Official Statement and has not reviewed or undertaken to verify any information
contained herein.
The Trustee has not participated in the preparation of this Official Statement or any other
disclosure documents relating to the Series 2013 Bonds. Except for information under the heading "THE
TRUSTEE," the Trustee has or assumes no responsibility as to the accuracy or completeness of any
information contained in this Official Statement or any other Such disclosure documents.
References in this Official Statement to Minnesota law, the Series 2013 Bonds, the Indenture, the
Loan Agreement, the Lease, the Pledge Agreement, the Mortgage, and other documents do not purport to
be complete. Potential investors should refer to such statutes and documents for full and complete details
of their provisions. Copies of such documents are on file with the Trustee and the Company.
The Underwriter is a registered broker/dealer and a member of FINRA and SIPC. Nondeposit
investment products offered by the Underwriter are not FDIC insured, are subject to investment risk,
including loss of principal, and are not guaranteed by a bank unless otherwise specified. The Underwriter
and its affiliates may also act as an investment advisor to issuers whose securities may be sold to a
purchaser of the Series 2013 Bonds.
20810983v2 07/10/2013
• THE SERIES 2013 BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, AND THE INDENTURE HAS NOT BEEN QUALIFIED UNDER THE
TRUST INDENTURE ACT OF 1939, AS AMENDED, IN RELIANCE UPON EXEMPTIONS
CONTAINED IN SUCH ACTS. THE REGISTRATION OR QUALIFICATION OF THE SERIES 2013
BONDS IN ACCORDANCE WITH THE APPLICABLE PROVISIONS OF LAWS OF THE STATES IN
WHICH SERIES 2013 BONDS HAVE BEEN REGISTERED OR QUALIFIED AND THE EXEMPTION
FROM REGISTRATION OR QUALIFICATION IN OTHER STATES CANNOT BE REGARDED AS A
RECOMMENDATION THEREOF. NEITHER THESE STATES NOR ANY OF THEIR AGENCIES
HAVE PASSED UPON THE MERITS OF THE SERIES 2013 BONDS OR THE ACCURACY OR
COMPLETENESS OF MS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE
CONTRARY MAY BE A CRIMINAL OFFENSE.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
THIS OFFICIAL STATEMENT, INCLUDING THE APPENDICES HERETO,
CONTAINS STATEMENTS WHICH SHOULD BE CONSIDERED "FORWARD-LOOKING
STATEMENTS," MEANING THEY REFER TO POSSIBLE FUTURE EVENTS OR
CONDITIONS. SUCH STATEMENTS ARE GENERALLY IDENTIFIABLE BY THE WORDS
SUCH AS "PLAN," "EXPECT," "ESTIMATE," "BUDGET," OR SIMILAR WORDS. THE
ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN
SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES, AND OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS,
PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE MATERIALLY DIFFERENT
FROM ANY FUTURE RESULTS, PERFORMANCE, OR ACHIEVEMENTS EXPRESSED OR
IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THE COMPANY DOES NOT
EXPECT OR INTEND TO ISSUE ANY UPDATES OR REVISIONS TO THOSE FORWARD-
LOOKING STATEMENTS IF OR WHEN ITS EXPECTATIONS, OR EVENTS, CONDITIONS
OR CIRCUMSTANCES ON WHICH SUCH STATEMENTS ARE BASED, OCCUR. THE
FINANCIAL FORECAST CONTAINED IN APPENDIX D ATTACHED TO THIS OFFICIAL
STATEMENT IS NOT A HISTORICAL STATEMENT OF FINANCIAL PERFORMANCE BUT
IS A FORWARD LOOKING PROJECTION OF FUTURE, PROJECTED FINANCIAL
PERFORMANCE.
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TABLE OF CONTENTS
SUMMARY INFORMATION Recruitment of Students for an Immersion Program 27
INTRODUCTORY STATEMENT 1 Key Personnel 28
General 1 Self-Management by the Charter School 28
Loan of Series 2013 Bond Proceeds 2 Factors Associated with Education 28
Mortgage 2 Operating/Working Capital Financing 28
Disbursing Agreement 2 Tax-Exempt Status of the Company and the Charter School 29
Lease 2 IRS Compliance Program 29
Pledge Agreement 3 Tax-Exempt Status of the Series 2013A Bonds 29
Reserve Fund 3 Changes in Law; Annual Appropriation; Inadequate State
Special Covenants of the Company and the Charter School 3 Payments 30
Possible Future Transfer and Assignment of the Company's Value of Mortgaged Property 30
Rights to Affiliated Building Company 4 Construction Risks 30
Miscellaneous 4 Vacation of Alley 31
Bondholders' Risks 4 Environmental Regulations 31
THEISSUER 4 No Appraisal of theSchoolhouse • 32
THE COMPANY 5 Maintenance of the Schoolhouse 32
THE CHARTER SCHOOL 5 Damage or Destruction 32
THE PROJECT 6 Effect of Federal Bankruptcy Laws on Security for the
Land and Building Acquisition 6 Series 2013 Bonds 33
Construction 6"Enforcement of Remedies 33
The Owner's Representative 7 Secondary Market 33
Transfer and Assignment to Affiliated Building Company 7 Maintenance of Credit Rating 33
THE CHARTER SCHOOL'S FINANCE MANAGER 8 No Credit Enhancement Facility 34
SOURCES AND USES OF FUNDS 9 Failure to Provide Ongoing Disclosure 34
DEBT SERVICE SCHEDULE 10 Private School Vouchers 34
THE SERIES 2013 BONDS 11 Redemption Prior to Maturity 34
Interest; Maturity; Payment 11 Forward-Looking Statements 34
Redemption of Series 2013 Bonds 11 Additional Indebtedness 35
Notice of Redemption; Payment 14 Summary 35
SECURITY FOR THE SERIES 2013 BONDS 15 CHARTER SCHOOLS IN MINNESOTA 35
Special, Limited Obligations 15 State Payments 35
Payments Under the Loan Agreement, Assignment of AUDITED FINANCIAL STATEMENTS OF THE
Loan Agreement 15 CHARTER SCHOOL 38
Reserve Fund 15 UNAUDITED FINANCIAL STATEMENTS OF THE CHARTER
Mortgage 16 SCHOOL 38
Subordination, Non-Disturbance, and Attomment Agreement 16 . THE FINANCIAL FORECAST 38
Lease 16 TAX MATTERS 39
Pledge Agreement 16 Tax Exemption 39
Intercreditor Agreement Requirement for Future Line of Credit 17 Other Federal Tax Considerations 39
Additional Bonds 17 Bond Premium 40
Additional Indebtedness 18 The Series 2013B Bonds 40
Various Operating Covenants of the Charter School 20 Legislative Proposals 40
Transfer and Assignment to Affiliated Building Company 22 BOND RATING 41
Defeasance 23 UNDERWRITING 41
BONDHOLDERS' RISKS 23 CONTINUING DISCLOSURE 42
Nature of Special, Limited Obligations 23 ENFORCEABILITY OF OBLIGATIONS 42
Dependence on Company's Ability to Pay Loan Repayments;LEGAL MATTERS 42
Ability of Charter School to Pay Lease Payments 23 RELATIONSHIPS AMONG THE PARTIES 43
State Budget Issues 24 ABSENCE OF LITIGATION 43.
No Taxing Authority; Dependence on State Payments 25 Issuer 43
Financial Forecast 25 Company and Sole Member 43
Non-Renewal or Termination of Charter Agreement Charter School 43
by Authorizer 25 THE TRUSTEE 44
Department of Education Approval of Authorizer 26 MISCELLANEOUS 44
Financial Statements 26 Registration of Series 2013 Bonds 45
Property Tax Exemption 26 Interest of Certain Persons Named in this Official Statement 45
Competition for Students 27 Official Statement Certification of the Company and the Charter
Effect of Student Enrollment upon Receipt of State Payments 27 School 45
APPENDIX A — THE CHARTER SCHOOL A-1
APPENDIX B — THE COMPANY AND THE PROJECT B-1
APPENDIX C — MINNESOTA LAWS RELATING TO CHARTER SCHOOLS C-1
APPENDIX D — FINANCIAL FORECAST D-1
APPENDIX E — AUDITED FINANCIAL STATEMENTS OF THE CHARTER SCHOOL FOR THE FISCAL YEARS
ENDED JUNE 30, 2012 AND 2011 E-1
APPENDIX F — UNAUDITED INTERIM FINANCIAL STATEMENTS OF THE CHARTER SCHOOL FOR THE
TWELVE-MONTH PERIOD ENDED JUNE 30, 2013 F-1
APPENDIX G — BOOK-ENTRY ONLY SYSTEM G-1
APPENDIX H — ECONOMIC AND DEMOGRAPHIC INFORMATION H-1
APPENDIX I — DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF DOCUMENTS I-1
APPENDIX J — FORM OF BOND COUNSEL OPINION J-1
APPENDIX K — FORM OF CONTINUING DISCLOSURE AGREEMENT K-1
20810983v2 07/10/2013
SUMMARY INFORMATION
The following is a summary of certain information contained in this Official Statement. The summary is
not comprehensive or complete and is qualified in its entirety by reference to the complete Official Statement.
Undefined capitalized terms used below are defined in APPENDIX I hereto or elsewhere in this Official Statement.
The Series 2013 Bonds The Charter School Lease Revenue Bonds (Odyssey Academy Charter School Project),
Series 2013A (the "Series 2013A Bonds"), in the original aggregate principal amount
of $4,790,000* and the Taxable Charter School Lease Revenue Bonds (Odyssey
Academy Charter School Project), Series 2013B (the "Series 2013B Bonds" and
together with the Series 2013A Bonds, the "Series 2013 Bonds"), in the original
aggregate principal amount of $290,000*, are to be issued by the City of Brooklyn
Center (the "Issuer"), in authorized minimum denominations of $100,000 or any
integral multiple of $5,000 in excess thereof, pursuant to an Indenture of Trust, dated
as of July 1, 2013 (the "Indenture"), between the Issuer and U.S. Bank, National
Association, Minneapolis, Minnesota (the "Trustee"). See "THE SERIES 2013
BONDS" in this Official Statement.
Issuer The City of Brooklyn Center (the "Issuer") is authorized to issue the Series 2013
Bonds pursuant to (i) Minnesota Statutes, Sections 469.152 through 469.165, as
amended (the "Act"); and (ii) resolutions of the Issuer. See "THE ISSUER" in this
Official Statement.
The Company The Company is ASG Brooklyn Center, a Minnesota non-profit corporation (the
"Company").. The Company was formed for the purpose of owning and leasing the
Schoolhouse to Odyssey Academy Charter School, a Minnesota nonprofit corporation
(the "Charter School"). See "THE COMPANY" and "APPENDIX B — THE
COMPANY AND THE PROJECT" in this Official Statement.
The Charter School Odyssey Academy Charter School, a Minnesota nonprofit corporation (the "Charter
School"), will lease the Schoolhouse from the Company. The Charter School is a
501(c)(3) organization and a public charter school organized under Minnesota law and
operated pursuant to a Charter Agreement between the Charter School and Audubon
Center of the North Woods (the "Authorizer"). See "THE CHARTER SCHOOL,"
"APPENDIX A - THE CHARTER SCHOOL," and "APPENDIX C - MINNESOTA
LAWS RELATING TO CHARTER SCHOOLS" in this Official Statement.
Use of Proceeds Proceeds of the Series 2013 Bonds will be loaned to the Company pursuant to a Loan
Agreement, dated as of July 1, 2013 (the "Loan Agreement"), between the Issuer and
the Company, in order for the Company to: (i) finance the acquisition, renovation,
construction and equipping of (a) an existing approximately 48,116 square foot
school building located at 6201 Noble -Avenue North in the Issuer (collectively, the
"Project"), all for use as a public charter schoolhouse for kindergarten through
grade eight (the "Schoolhouse"), to be owned by the Company and leased to the
Charter School; (ii) fund the Reserve Fund; (iii) finance the payment of a portion
of the interest on the Series 2013 Bonds; and (iv) finance the payment of the costs
of issuing the Series 2013 Bonds. See "THE PROJECT" and "SOURCES AND
USES OF FUNDS" in this Official Statement.
Payment Interest accrues on the Series 2013 Bonds at the rates set forth on the inside cover
hereof from the date of issue and is payable on January 1 and July 1 of each year
commencing January 1, 2014*, by check or draft of the Trustee to the persons, who
were the registered owners of the Series 2013 Bonds as of the 15th day of the month
preceding each interest payment date provided that any Significant Bondholder may
receive payment of interest by wire transfer upon proper instruction to the Trustee.
*Preliminary, subject to change.
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Principal and premium, if any, will be payable at the principal corporate trust office of
the Trustee. See "THE SERIES 2013 BONDS" in this Official Statement.
Special,
Limited Obligations The Series 2013 Bonds are special, limited obligations of the Issuer payable solely
from the Loan Payments to be made by the Compa ny, and other Ands pledged therefor
under the Indenture. The Series 2013 Bonds are not secured by or payable from any
taxes, revenues or assets of the Issuer, except for the Issuer's interest in the Loan
Agreement and amounts held pursuant to the Indenture as described herein. The
Series 2013 Bonds do not give rise to a general obligation or general liability of the
Issuer, the State of Minnesota (the "State"), or of any political subdivision or agency
thereof or a charge against the general credit, and shall never constitute nor give rise
to a pecuniary liability of the Issuer, the State, or any political subdivision or agency
thereof The Series 2013 Bonds do not constitute a debt, moral obligation, liability or
loan of credit or a pledge of the fill faith and credit or taxing power of the Issuer, the
State, or of any political subdivision thereof
The obligations of the Company under the Loan Agreement are a general credit pledge
of the Company, provided, however that the Company does not have taxing power and
does not have the ability to charge fees to the Charter School's students in the event
that revenues of the Company under the Lease are not sufficient to pay operations and
debt service on the Series 2013 Bonds. See "SECURITY FOR THE SERIES 2013
BONDS" in this Official Statement.
Security for
the Series 2013 Bonds The Series 2013 Bonds will be secured by and payable from an assignment and pledge
of (i) all money held under the Indenture, including Series 2013 Bond proceeds
initially deposited in the Reserve Fund, (ii) the interest of the Issuer in the Loan
Agreement (except for certain rights to indemnification and payments of fees and
expenses), and (iii) Lease Payments due from the Charter School, which will be
automatically transferred to the Trustee from the Sweep Account pursuant to a Pledge
and Covenant Agreement, dated as of July 1, 2013 (the "Pledge Agreement"), between
the Charter School and the Trustee. The Series 2013 Bonds will also be secured under
the terms of the Mortgage. See "APPENDIX I - DEFINITIONS OF CERTAIN
TERMS AND SUMMARIES OF DOCUMENTS - THE LOAN AGREEMENT -
Covenants of the School" in this Official Statement. The Series 2013 Bonds are not
secured by or payable from any taxes, revenues or assets of the Issuer, except for the
Issuer's interest in the Loan Agreement and amounts held pursuant to the Indenture as
described herein. See "SECURITY FOR THE SERIES 2013 BONDS" in this Official
Statement.
Risk Factors Purchase of the Series 2013 Bonds involves a degree of risk. A prospective purchaser
of the Series 2013 Bonds is advised to read this entire Official Statement, including the
Appendices attached hereto, in its entirety, particularly the section entitled
"BONDHOLDERS' RISKS" herein, for a discussion of certain risk factors, which
should be considered in connection with an investment in the Series 2013 Bonds.
Optional Redemption The Series 2013A Bonds are subject to optional redemption, in whole or in part, by the
Company on July 1, 2023* or any Business Day thereafter, at a redemption price equal
to the principal amount of the Series 2013A Bonds to be redeemed plus accrued
interest to the redemption date, and, on certain dates, a premium. The Series 2013B
Bonds are not subject to optional redemption. The Series 2013 Bonds are also subject
to redemption at a redemption price equal to the principal amount, plus accrued interest
upon the occurrence of certain events of damage, destruction or condemnation. See
"THE SERIES 2013 BONDS — Redemption of Series 2013 Bonds" in this Official
Statement.
*Preliminaly, subject to change.
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Mandatory Redemption .... The Series 2013 Bonds are subject to special mandatory redemption in the event of a
Determination of Taxability, in whole, at a redemption price equal to the sum of the
principal amount of the Series 2013 Bonds, plus accrued interest on the Series 2013
Bonds, plus for the Series 2013A Bonds, a premium. The Series 2013 Bonds are also
subject to mandatory sinking fund redemption as set forth herein. See "THE
SERIES 2013 BONDS — Redemption of Series 2013 Bonds" in this Official Statement.
Trustee and
Paying Agent U.S. Bank National Association in Minneapolis, Minnesota.
Form The Series 2013 Bonds will be registered under a book-entry system in the name of
The Depository Trust Company ("DTC") or its nominees. The Series 2013 Bonds will
be issued in denominations of $25,000 or any integral multiples of $5,000 in excess
thereof.
Exchange and Transfer While the Series 2013 Bonds remain in book-entry only form, transfer of ownership by
Beneficial Owners may be made as described in "THE SERIES 2013 BONDS" and
"APPENDIX G — BOOK-ENTRY ONLY SYSTEM" in this Official Statement.
Tax Status In the opinion of Kennedy & Graven, Chartered, Saint Paul, Minnesota, as Bond
Counsel to the Issuer, under existing laws, regulations, rulings, and decisions, and
assuming compliance by the Issuer, the Charter School, and the Company with all
requirements of the Internal Revenue Code of 1986,, as amended, interest on the
Series 2013A Bonds is not included in gross income of the owners thereof for federal
income tax purposes or, to the same extent, in taxable net income of individuals, estates
or trusts for Minnesota income tax purposes, and is not an item of tax preference for
purposes of the computation of federal or Minnesota alternative minimum tax imposed
on individuals and corporations. Interest on the Series 2013A Bonds is subject to the
Minnesota franchise tax measured by income and imposed on corporations and
financial institutions and is included in adjusted current earnings for the purposes of the
computation of federal alternative minimum tax imposed on corporations. Interest on
the Series 2013B Bonds is taxable as ordinary income for federal and State income tax
purposes. No opinion will be expressed by Bond Counsel regarding other state or
federal tax consequences caused by the receipt or accrual of interest on the Series 2013
Bonds or arising with respect to the ownership of the Series 2013 Bonds. See "TAX
MATTERS" and "APPENDIX J — FORM OF BOND COUNSEL OPINION" in this
Official Statement.
Continuing Disclosure
Agreement Pursuant to the requirements of Securities and Exchange Commission Rule 15c2-12
(17 CFR Part 240, § 240.15c2-12), the Company and the Charter School have agreed
for the benefit of the Registered Owners and Beneficial Owners of the Series 2013
Bonds to provide certain financial information, other operating data and notices of
material events. See "CONTINUING DISCLOSURE," and "APPENDIX K — FORM
OF CONTINUING DISCLOSURE AGREEMENT" in this Official Statement.
Delivery Information The Series 2013 Bonds are offered when, as, and if issued by the Issuer and accepted
by the Underwriter, subject to prior sale and the approving legal opinion of Bond
Counsel and certain other conditions. It is expected that delivery of the Series 2013
Bonds will be made on or about July , 2013 through the facilities of DTC in
New York, New York, against payment therefor.
Financial
Statements The Charter School's audited financial statements for the fiscal years ended
June 30, 2012 and 2011 are included in this Official Statement as APPENDIX E.
*Preliminary, subject to change.
20810983v2 07/10/2013
These are the most recent audited financial statements available for the Charter School.
The financial statements in APPENDIX E have been audited by Malloy, Montague,
Kamowski, Radosevich & Co., P.A., Minneapolis, Minnesota. See "AUDITED
FINANCIAL STATEMENTS OF THE CHARTER SCHOOL" and "APPENDIX E —
AUDITED FINANCIAL STATEMENTS OF THE CHARTER SCHOOL FOR THE
FISCAL YEARS ENDED JUNE 30, 2012 AND 2011" in this Official Statement.
The unaudited financial statements for the twelve-month period ended June 30, 2013
are contained in APPENDIX F. The unaudited financial statements contained in
APPENDIX F have been prepared by the Charter School and have not been audited,
reviewed or examined by any independent accounting firm. See "APPENDIX F —
UNAUDITED INTERIM FINANCIAL STATEMENTS OF THE CHARTER
SCHOOL FOR THE TWELVE-MONTH PERIOD ENDED JUNE 30, 2013" in this
Official Statement.
The financial statements of the Company are not included in this Official Statement
because the Company does not have significant fmancial resources and is not
anticipated to have significant assets other than the Schoolhouse. It is expected that the
financial statements of the Company may be included in a consolidated schedule to the
Charter School in the future.
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iv
20810983v2 07/10/2013
Financial Forecast The Financial Forecast (the "Financial Forecast") attached hereto in APPENDIX D is a
projection of the future financial performance of the Charter School based upon certain
assumptions made by the Charter School and contained therein. No assurances can be
given that the operations of the Charter School will equal or exceed the projected future
financial performance set forth in the Financial Forecast, The Financial Forecast is for
the six fiscal years of the Charter School ending June 30, 2014 through June 30, 2018.
Set forth below is selected projected data of the Charter School for the stated years.
Annual Surplus
Debt service on 2013 Bonds
Deposit to Capital Improvement
Reserves on 2013 Bonds
Capitalized Assets*
Net Income Available for Debt Service
Debt Service Payments
Debt service on 2013 Bonds
Total Debt Service Payments
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Debt Service Coverage Ratio
Additional
Information The summaries of or references to constitutional provisions, statutes, resolutions,
agreements, contracts, financial statements, reports, publications and other documents
or compilations of data or information set forth in this Official Statement do not
purport to be complete statements of the provisions of the items summarized or
referred to and are qualified in their entirety by the actual provisions of such items,
copies of which are either publicly available or available upon request and the payment
of a reasonable copying, mailing and handling charge from the Underwriter.
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20810983v2 07/10/2013
OFFICIAL STATEMENT
$4,790,000*
THE CITY OF BROOKLYN CENTER
CHARTER SCHOOL LEASE
REVENUE BONDS
(ODYSSEY ACADEMY CHARTER SCHOOL
PROJECT)
SERIES 2013A
$290,000*
THE CITY OF BROOKLYN CENTER
TAXABLE CHARTER SCHOOL LEASE
REVENUE BONDS
(ODYSSEY ACADEMY CHARTER SCHOOL
PROJECT)
SERIES 2013B
INTRODUCTORY STATEMENT
The following is a brief introduction as to certain matters discussed elsewhere in this Official
Statement and is qualified in its entirety as to such matters by such discussion and the text of the actual
documents described or referenced. Any capitalized term not required to be capitalized is used with the
meaning assigned in APPENDIX I or in the Indenture, the Loan Agreement or other document with
respect to which the term is used. Definitions contained in the text hereof are for ease of reference only
and are qualified in their entirety by the definitions in APPENDIX I or the documents with respect to
which such terms relate. The Appendices hereto are an integral part of this Official Statement and each
potential investor should review the Appendices in their entirety.
General
This Official Statement provides information regarding the Charter School Lease Revenue Bonds
(Odyssey Academy Charter School Project), Series 2013A (the "Series 2013A Bonds") in the original
aggregate amount of $4,790,000* and Taxable Charter School Lease Revenue Bonds (Odyssey Academy
Charter School Project), Series 2013B (the "Series 2013B Bonds" and together with the Series 2013A
Bonds, the "Series 2013 Bonds") in the original aggregate amount of $290,000* to be issued by the the
City of Brooklyn Center (the "Issuer") pursuant to an Indenture of Trust (the "Indenture"), dated as of
July 1, 2013, between the Issuer and U.S. Bank National Association, Minneapolis, Minnesota (the
"Trustee"). Pursuant to a Loan Agreement (the "Loan Agreement"), dated as of July 1, 2013, between the
Issuer and ASG Brooklyn Center, a Minnesota non-profit corporation (the "Company"), proceeds of the
Series 2013 Bonds will be loaned (the "Loan") to the Company. See "APPENDIX I — DEFINITIONS
OF CERTAIN TERMS AND SUMMARIES OF DOCUMENTS" in this Official Statement.
Proceeds of the Series 2013 Bonds will be used by the Company to: (i) finance the acquisition,
renovation, construction and equipping of (a) an existing approximately 48,116 square foot school
building located at 6210 Noble Avenue North in the Issuer (collectively, the "Project"), all for use as
a public charter schoolhouse for kindergarten through grade eight (the "Schoolhouse"), to be owned
by the Company and leased to Odyssey Academy Charter School (the ."Charter School"), a
Minnesota nonprofit corporation; (ii) fund the Reserve Fund; (iii) finance the payment of a portion of
the interest on the Series 2013 Bonds; and (iv) finance the payment of the costs of issuing the Series
2013 Bonds. See "THE PROJECT" and "SOURCES AND USES OF FUNDS" in this Official
Statement. See "APPENDIX A — THE CHARTER SCHOOL" and "APPENDIX B — THE COMPANY
AND THE PROJECT" in this Official Statement.
Loan of Series 2013 Bond Proceeds
Proceeds of the Series 2013 Bonds will be loaned to the Company pursuant to the Loan
Agreement under which the Company will agree to make monthly payments ("Loan Repayments")
*Preliminaty; subject to change. 1
20810983v2 07/10/2013
which, if fully and promptly paid, will be sufficient to pay when due the scheduled principal of and
interest on the Series 2013 Bonds. See "APPENDIX I — DEFINITIONS OF CERTAIN TERMS AND
SUMMARIES OF DOCUMENTS — THE LOAN AGREEMENT" in this Official Statement. Pursuant to
the Indenture, the Issuer will pledge to the Trustee, for the benefit of the holders of the Series 2013
Bonds, all of its interest in the Loan Agreement (other than certain indemnification and expense
reimbursement payments) to secure payment of the principal of, premium, if any, and interest on the
Series 2013 Bonds. Pursuant to a Tax Regulatory Agreement (the "Tax Regulatory Agreement"),
between the Company, the Charter School, and the Trustee, the Company and the Charter School will
make certain representations and covenants related to maintaining the exclusion from gross income for
federal income tax purposes of interest on the Series 2013A Bonds.
Mortgage
Pursuant to a Mortgage, Security Agreement and Assignment of Rents, dated as of July 1, 2013
(the "Mortgage"), to be executed by the Company in favor of the Trustee, the payment of the principal of,
premium, if any, and interest on the Series 2013 Bonds will be secured by a mortgage lien on and security
interest in the Schoolhouse, subject to certain "Permitted Encumbrances" described in the Mortgage. See
"APPENDIX I — DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF DOCUMENTS — THE
MORTGAGE" in this Official Statement.
Disbursing Agreement
The proceeds of the Series 2013 Bonds deposited in the Construction Fund will be disbursed to
pay Project Costs pursuant to the terms of the Disbursing Agreement, dated as of July 1, 2013 (the
"Disbursing Agreement") between the Issuer, the Company, the Trustee, and [Disbursing Agent] (the
"Disbursing Agent"). The obligation of the Trustee to disburse funds for Project Costs under the
Disbursing Agreement is subject to a number of conditions precedent, including a determination by the
Trustee and Disbursing Agent that amounts remaining in the Construction Fund are sufficient to acquire
and complete the Project. Pursuant to the Disbursing Agreement, the Disbursing Agent is obligated to
collect lien waivers with respect to each disbursement of funds prior to approving the next disbursement.
Lease
k
Pursuant to a Lease Agreement, dated as of July 1, 2013 (the "Lease"), the Company will lease
the Schoolhouse, as improved by the Project, to the Charter School. The Charter School shall use the
Schoolhouse for the charitable purpose of operating a public charter school in accordance with Minnesota
Statutes, Section 124D.10. The term of the Lease is equal to the term of the Series 2013 Bonds.
Payments due from the Charter School, as lessee, to the Company, as lessor, under the Lease will be
withdrawn by the Trustee from the Charter School's Sweep Account (defined herein) for deposit in the
Revenue Fund, and are expected, in the aggregate, to exceed the amount necessary for the Company to
pay semi-annual debt service on the Series 2013 Bonds and certain other fees and costs in connection
with the Series 2013 Bonds.
Lease payments made by the Charter School shall be paid, in part, from building lease aid
received by the Charter School from the State of Minnesota the "State") pursuant to Minnesota Statutes,
Section 124D.11, subd. 4. See "APPENDIX I — DEFINITIONS OF CERTAIN TERMS AND
SUMMARIES OF DOCUMENTS — THE LEASE" in this Official Statement.
2
20810983v2 07/10/2013
Pledge Agreement
As additional security on the Series 2013 Bonds, the Charter School pledges certain of its
revenues to the Trustee for payments on the Series 2013 Bonds as necessary, pursuant to a Pledge and
Covenant Agreement, dated as of July 1, 2013 (the "Pledge Agreement"), from the Charter School to the
Trustee. The Pledge Agreement also provides that in the event building lease aid is insufficient to make
lease payments under the Lease, general education funding from the State, and other State and federal
pass-through education funding sources shall be applied to the payment of such insufficiency. See
"APPENDIX I —DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF DOCUMENTS — THE
INDENTURE" and "— THE PLEDGE AGREEMENT" in this Official Statement. Under the Pledge
Agreement, the education revenues received by the Charter School from the State will be deposited into a
Sweep Account, from which the Trustee shall withdraw the payments due from the Charter School under
the Lease.
Reserve Fund
On the closing date for the issuance of the Series 2013 Bonds, proceeds of the Series 2013 Bonds
in an amount equal to the Reserve Fund Requirement ($ ) will be deposited in the Reserve Fund
created: by the Indenture. Earnings on amounts in the Reserve Fund will be deposited therein so long as
the balance therein is less than the Reserve Fund Requirement. Amounts in the Reserve Fund will secure
. the Series 2013 Bonds and may be used by the Trustee to pay principal of and interest on the Series 2013
Bonds in the event sums in the Bond Fund are insufficient for such purpose. See "SECURITY FOR THE
SERIES 2013 BONDS — Reserve Fund" and "APPENDIX I — DEFINITIONS OF CERTAIN TERMS
AND SUMMARIES OF DOCUMENTS — THE INDENTURE — The Reserve Fund" in this Official
Statement
Special Covenants of the Company and the Charter School
The Loan Agreement places certain restrictions on the incurrence of indebtedness by the
Company and requires the Company to impose certain restrictions on the Charter School pursuant to the
Lease or the Pledge Agreement. In particular, the Loan Agreement prohibits the Company from incurring
Additional Indebtedness (defined in APPENDIX I) other than Additional Bonds issued pursuant to the
Indenture. See "APPENDIX I — DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF
DOCUMENTS — THE LOAN AGREEMENT — Additional Bonds and Additional Indebtedness" in this •
Official Statement.
The Company has also agreed in the Loan Agreement to cause the Charter School to make certain
covenants in the Lease or Pledge Agreement to (a) limit Additional Indebtedness, (b) provide certain
periodic financial reports, (c) make all applications for applicable State and federal funds, and
(d) maintain unrestricted Cash on Hand in the amounts required by the Loan Agreement and Pledge
Agreement. See "APPENDIX I — DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF
DOCUMENTS — THE LOAN AGREEMENT — Covenants of the School" and " — THE LEASE" in this
Official Statement.
Possible Future Transfer and Assignment of the Company's Rights to Affiliated Building Company
Subject to the requirements of the Loan Agreement, the Company has agreed in the
Memorandum Concerning Option to Acquire Real Property (the "Option") that the Company will sell,
transfer or convey, for consideration of $1.00 and the assumption of all of the Company's obligations
with respect to the Schoolhouse and the other transferred assets, the Schoolhouse and all related accounts
and reserves and assign its interest in and obligations under the Loan Agreement (including the
3
20810983v2 07/10/2013
Company's obligations with respect to payment of the Series 201 3 Bonds), the Mortgage, the Lease, the
Continuing Disclosure Agreement and the Tax Regulatory Agreement to an Affiliated Building Company
or an Exempt Organization designated by the Charter School which entity shall assume such obligations.
See "SECURITY FOR THE SERIES 2013 BONDS - Transfer and Assignment to Affiliated Building
Company" in this Official Statement.
Miscellaneous
This Official Statement (including the Appendices hereto) contains descriptions of, among other
matters, the Indenture, the Loan Agreement, the Mortgage, the Disbursing Agreement, the Lease, the
Pledge Agreement, the Issuer, the Project, the Company, the Charter School and the Series 2013 Bonds.
Such descriptions and information do not purport to be comprehensive or definitive. All references to
documents described herein are qualified in their entirety by reference to such documents, copies of
which are available for inspection at the principal corporate trust office of the Trustee.
Bondholders' Risks
Certain risks associated with an investment in the Series 2013 Bonds are discussed under
"BONDHOLDERS' RISKS" in this Official Statement.
THE ISSUER
Pursuant to Minnesota Statutes, Sections 469.152 through 469.165, as amended (the "Act"), the
Issuer is empowered to issue the Series 2013 Bonds. The Issuer is not pledging its credit to the
Series 2013 Bonds. The Issuer does not and will not in the future monitor the financial condition of the
Company or the Charter School, the operation of the Schoolhouse, or otherwise monitor payment of the
Series 2013 Bonds or compliance with the documents relating thereto. The responsibility for the
operation of the Schoolhouse will rest entirely with the Company and the Charter School.
The Series 2013 Bonds are special, limited obligations of the Issuer. No recourse by any Holder
of the Series 2013 Bonds will be had for the payment of the principal of, premium, if any, or interest on
any of the Series 2013 Bonds or for any claim based thereon or upon any obligation, covenant, or
agreement in the Indenture or the Loan Agreement, against any past, present, or future officer, member,
counsel, advisor or agent of the Issuer or any successor thereto, as such, directly or through the Issuer or
any successor thereto, under any rule of law or equity, statute or constitution, or by the enforcement of
any assessment or penalty or otherwise, and all such liability of any such officer, member, counsel,
advisor or agent as such has been expressly waived as a condition of and in consideration of the execution
of the Indenture, the Loan Agreement and the issuance of the Series 2013 Bonds.
All payments made by the Company pursuant to the Loan Agreement will be made directly to the
Trustee for disbursement to the Holders. None of the revenues to pay the Series 2013 Bonds will come
from the Issuer and therefore the Issuer's financial information and status is irrelevant to any investment
decision with respect to the Series 2013 Bonds. As a result, no information regarding the Issuer will be
provided in respect of any continuing disclosure requirement relating to the Series 2013 Bonds. The
Issuer has not assumed responsibility for any information in this Official Statement, except for the
information under this caption and the caption "ABSENCE OF LITIGATION — Issuer."
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THE COMPANY
• The Company is ASG Brooklyn Center, a Minnesota non-profit corporation. The Company shall
acquire, construct and be the owner of the Project, and shall lease the facilities comprising the Project to
the Charter School. Additional information about the Company is located in "APPENDIX B — THE
COMPANY AND PROJECT" in this Official Statement.
THE CHARTER SCHOOL
Odyssey Academy Charter School, a Minnesota nonprofit corporation (the "Charter School"), is
exempt from federal income taxation pursuant to Section 501(a) of the Code as a result of the application
of Section 501(c)(3) of the Code. The Company will lease the Project to the Charter School. The Charter
School educates students in kindergarten through eighth grade, as authorized by the Charter Agreement.
The Charter School is a public charter school and it will operate the Schoolhouse under
applicable laws of the State. Under the provisions of Minnesota Statute, Section 124D.10, as amended
(the "Charter School Act"), an authorized organization may sponsor a charter school. The authorization
for a charter school must be in the form of a written contract for a term not exceeding five years and
which must contain a description of the charter school program, the specific outcomes that the charter
school pupils are expected to achieve, admission policies and procedures, management and administration
of the charter school, requirements and procedures for program and financial audits, insurance coverage,
and certain additional information required by law. The Charter School has executed a contract (the
"Charter Agreement"), with the Audubon Center of the North Woods, a nonprofit corporation authorized
by the State to sponsor charter schools (the "Authorizer"), in conformity with the Charter School Act.
The Charter School entered into the initial Charter Agreement as of May 1, 1998. The current Charter
Agreement was entered into on July 1, 2011, and extends to June 30, 2014. The Charter School is the
only school authorized by the Authorizer.
The Charter School receives its funding from a combination of (a) State aids under the following
programs: General Education Aid (which coincides with enrollment), Special Education, Limited English
Proficiency, Compensatory Aid and Building Lease Aid (which coincides with enrollment); and
(b) Federal programs administrated by the State including Title I, Part A of the No Child Left Behind
Elementaiy and Secondary Education Act (NCLB/ESEA), Improving Basic Program, Title II, Part A of
the NCLB/ESEA, Teacher/Principal Training and Recruitment, Title II, Part D, Enhancing Education
Through Technology, Title HI, Limited English Proficient Students, and Title V, Part A — Regular
Innovative Programs. Additional information about the Charter School is located in "APPENDIX A —
THE CHARTER SCHOOL" in this Official Statement. See also "CHARTER *SCHOOLS IN
MINNESOTA — State Payments" and "APPENDIX C — MINNESOTA LAWS RELATING TO
CHARTER SCHOOLS" in this Official Statement for further information regarding State funding of
charter schools.
THE PROJECT
The Project consists of the acquisition, renovation, construction and equipping of (a) an existing
approximately 48,116 square foot school building located at 6201 Noble Avenue North in the Issuer.
[MORE TO COME] See "APPENDIX B — THE COMPANY AND THE PROJECT — THE PROJECT"
in this Official Statement.
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Land and Building Acquisition
Pursuant to an a purchase and sale agreement dated April , 2013 and amended July , 2013
(collectively, the "Purchase Agreement"), the Company will purchase, using proceeds of the Series 2013
Bonds, the land and buildings from Osseo School District (ISO 279) (the "Seller"). The Company will
purchase the land and buildings for a purchase price of $2,324,000 subject to closing adjustments upon
the terms set forth in the Purchase Agreement. An additional purchase price of $200,000 (the "Additional
Purchase Price") is payable by the Company provided (1) there is no default under the Bonds; and (2)
based upon the most recent audited financial statements of Charter School and the applicable enrollment
reports of Charter School to the Minnesota Department of Education: (a) two (2) consecutive school
years of Charter School meeting enrollment projections of the following number of Projected Pupil Units
as defined by the Minnesota Department of Education — school year 2013/2014, 347.98; school year
2014/2015 and thereafter 370.78; (b) two (2) consecutive fiscal years of Charter School having at least
forty-five (45) Days Cash on Hand, after deducting any portion of the Additional Purchase Price to be
paid in the preceding fiscal year; and (c) two (2) consecutive fiscal years of the Charter School meeting
the Debt Service Coverage Ratio required under the Loan Agreement.
Construction
The Project will be constructed by RJM Construction, LLC (the "Contractor"). The Contractor is
based in Minneapolis, Minnesota, and has more than years experience providing pre-construction
planning, construction management and general contracting services to commercial, educational, retail,
office, industrial and senior housing clients. The Company will enter into a Guaranteed Maximum Price
Contract (the "Construction Contract") with the Contractor. Subject to additions and deductions
• authorized by the Company pursuant to the Construction Contract, the guaranteed maximum price will
nof exceed $ for the construction of the Project. The Construction Contract provides that
the Contractor will achieve substantial completion of the renovation of the existing buildings by
, and will pay $1,100 per day for each day of unexcused delay. The Construction Contract
requires the Contractor to provide a payment and performance bond equal to 100% of the guaranteed
maximum price of the Construction Contract.
The Owner's Representative and Developer
The Company has engaged NORTHMARQ to serve as the owner's representative for
construction of the Project pursuant to the Development Management Services Agreement dated July
2013 (the "Development Management Services Agreement"). Pursuant to the Development Management
Services Agreement, NORTHMARQ will assist the Company with completion of the Project, including
monitoring the project budget and schedule throughout construction. NORTHMARQ specializes in
providing real estate development and consulting services to charter school clients. [NORTHMARQ to
provide] See "APPENDIX B — THE COMPANY, AND THE PROJECT — THE PROJECT — The
Owner's Representative and Developer" in this Official Statement.
Transfer and Assignment to Affiliated Building Company
Subject to the requirements of the Loan Agreement, the Company has agreed in the Option that
the Company shall sell, transfer or convey, for consideration of $1.00 and the assumption of all of the
Company's obligations with respect to the Schoolhouse and the other transferred assets, the Schoolhouse
and all related accounts and reserves and assign its interest in and obligations under the Loan Agreement
(including the Company's obligations with respect to payment of the Series 2013 Bonds), the Mortgage,
the Lease, the Continuing Disclosure Agreement and the Tax Regulatory Agreement to an Affiliated
Building Company or an Exempt • Organization designated by the Charter School which entity shall
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assume such obligations. See "SECURITY FOR TBE SERIES 2013 BONDS - Transfer and Assignment
to Affiliated Building Company" in this Official Statement.
After the end of fiscal year , an Affiliated Building Company would become eligible to
own the Project and lease it to the Charter School under current State law. Under the Option, the
Affilitated Building Corporation also must be recognized as a tax-exempt organization under Section
501(c)(3) of the Code when it acquires the Project. It is anticipated that the Affiliated Building Company
will begin the application process to the Minnesota Department of Education ("MDE"), and to the
Internal Revenue Service (the "IRS") to be recognized as a tax-exempt organization under Section
501(c)(3) of the Code, at that time. If approved by MDE and recognized by the IRS as a tax-exempt
entity, the Affiliated Building Company and Charter School expect to exercise the Option at the end of
fiscal year 2014. Upon such assignment, assumption, and/or transfer, the Affiliated Building Company or
the Exempt Organization designated by the Charter School will be responsible for all obligations of the
Company, including payment of the Series 2013 Bonds. If such assignment, assumption, or transfer does
not occur, the obligations of the Company as currently constituted will continue under the Loan
Agreement, the Mortgage, the Lease, the Continuing Disclosure Agreement and the Tax Regulatory
Agreement.
SOURCES AND USES OF FUNDS
Following are the expected sources and uses for funds (excluding investment income) associated
with the Series 2013 Bonds:
Sources of Funds*
Series 2013A Bond Proceeds
Series 2013B Bond Proceeds
Total Sources of Funds
Uses of Funds*
Acquisition of Schoolhouse
Construction Project
Real Estate Expenses
Reserve Fund Requirement
Capitalized Interest Fund
Costs of Issuance**
Total Uses of Funds
*Preliminary subject to change.
**Includes Underwriter's compensation, legal fees and expenses, printing, Trustee fees, Issuer fees, accountant fees, and other
expenses associated with the issuance of the Series 2013 Bonds.
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DEBT SERVICE SCHEDULE
The table below sets forth the amounts required to be paid with respect to the Series 2013 Bonds,
assuming no prepayments. All amounts shown in the table below are gross debt service prior to the
application of any earnings on amounts deposited in the Reserve Fund and the other funds and accounts
established under the Indenture. Interest on the Series 2013 Bonds will be paid on January 1 and July 1 of
each year, commencing January 1, 2014*. Principal of the Series 2013 Bonds will be paid on July 1 of
each year, commencing (i) July 1, * for the Series 2013A Bonds and (ii) July 1, * for the
Series 2013B Bonds.
Series 2013A Bonds Series 2013B Bonds
Principal Interest Principal Interest Total Debt
Year Amount* Amount Amount* Amount Service
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044**
Totals
*Preliminary; subject to change.
** Includes application of the amount on deposit in.the Reserve Fund to the final payment of principal due on the Series 2013A
Bonds.
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THE SERIES 2013 BONDS
Interest; Maturity; Payment
The Series 2013A Bonds will be issued in the original aggregate principal amount of $4,790,000*
and the Series 2013B Bonds will be issued in the original aggregate principal amount of $290,000*. The
Series 2013 Bonds will bear interest as set forth on the inside front . cover hereof. Interest will be payable
semiannually on January 1 and July 1 (each an "Interest Payment Date") of each year, commencing on
January 1, 2014*. Interest will be calculated on the basis of a 360-day year with twelve (12) months of
thirty (30) days.
The Series 2013 Bonds will be issued in the form of fully registered bonds without interest
coupons in the denomination of $100,000 or any integral multiple of $5,000 in excess thereof.
The principal of, interest on, and premium, if any, on the Series 2013 Bonds shall be payable
when due by wire of the Trustee to The Depository Trust Company, New York, New York ("DTC"),
which will in tum remit such principal, interest and premium, if any, to Participants (as defined below),
which Participants will in turn remit such principal, interest and premium, if any, to the. Beneficial
Owners (as defined below) of the Series 2013 Bonds as described herein. See "APPENDIX G - BOOK-
ENTRY ONLY SYSTEM" in this Official Statement.
In the event the Series 2013 Bonds are not registered in the name of Cede & Co., as nominee of
DTC, or another eligible depository as described below, the principal of, interest on, and premium, if any,
on each Series 2013 Bond will be payable only at the corporate trust operations center of the Trustee in
Minneapolis, Minnesota, as described in the Indenture. Payment of interest on the Series 2013 Bonds will
be paid by .check or draft mailed on each Interest Payment Date by the Trustee to the registered owners of
record appearing on the registration books kept by the Trustee as of the applicable Regular Record Date
preceding each Interest Payment Date, or upon request, as provided in the Indenture, of any registered
owner of at least $1,000,000 in aggregate principal amount of Series 2013 Bonds, by electronic wire
transfer on each Interest Payment Date to the account designated by such registered owner to the Trustee
in writing on or before the Regular Record Date for any interest payment.
The registered owner of any Series 2013 Bond will be the person or persons in whose name or
names a bond is registered on the registration books kept for that purpose by the Trustee in accordance
with the terms of the Indenture.
Redemption of Series 2013 Bonds
Optional Redemption. The Series 2013A Bonds are subject to optional redemption on
July 1, 2023* and any Business Day. thereafter at the option of the Issuer, at the request of the Company,
in whole or in part, and in inverse order of maturity, and, if less than all of a maturity, then by lot within a
maturity, at par, plug accrued interest to the date fixed for redemption:
The Series 2013B Bonds are not subject to optional redemption.
Mandatory Sinking Fund Redemption. Series 2013A Bonds maturing as set forth below will be
subject to mandatory redemption in part and by lot in such manner as the Trustee may determine through
the operation of mandatory sinking fund payments as provided in the Indenture, at the principal amount
so to be redeemed plus accrued interest to the redemption date, in accordance with the following
schedules:
*Prelitninaly; subject to change.
20810983v2 07/10/2013
Series 2013A Bonds Maturing July I, 2028*
Payment Date
(July 1)
2024
2025
2026
**Stated Maturity.
Principal Amount*
Payment Date
(July 1)
2027
2028
Principal Amount*
Series 2013A Bonds Maturing July 1, 2033*
Payment Date
(July 1)Principal Amount*
Payment Date
(July 1) Principal Amount*
2032
2033
2029
2030
2031
**Stated Maturity.
Series 2013A Bonds Maturing July 1, 2044*
Payment Date Payment Date
(July 1) Principal Amount* (July 1) Principal Amount*
2034 2040
2035 2041
2036 2042
2037 2043
2038 2044
2039
**Stated Maturity.
(The remainder of this page is intentionally left blank.)
*Prelinzinaiy; subject to change. 10
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Series 2013B Bonds are subject to mandatory sinking fund redemption at a redemption price
equal to 100% of the principal amount so to be redeemed plus accrued interest to the redemption date, in
accordance with the following schedule:
Series 20I3B Bonds Maturing July 1, 2017*
Redemption Date
(July 1) Principal Amount*
2015
2016
2017
**Stated Maturity.
At the option of the Company exercised not less than forty-five (45) days prior to any sinking
fund redemption date, the Company may (i) deliver to the Trustee for cancellation such Series 2013
Bonds in any aggregate principal amount desired, or (ii) receive a credit in respect of such sinking fund
obligation for any Series 2013 Bonds which prior to such date have been purchased or redeemed
(otherwise than through the operation of the sinking fund) and not otherwise previously been applied as a
credit against sinking fund payments. The foregoing credits shall be applied by the Trustee to sinking
fund payments as directed by the Conipany.
Extraordinary Redemption. The Series 2013 Bonds are subject to redemption at the option of the
Company in whole, and not in part (except pursuant to (a) below), at their principal amount plus accrued
interest, if any of the events set forth below shall occur:
(a)If, at any time a portion of the Schoolhouse, which is not essential to the use of the
Schoolhouse and without which net revenues of the Schoolhouse and the Company are not materially
adversely affected, is damaged or destroyed or taken in a condemnation proceeding and the Company
elects to apply Net Proceeds to redemption of a portion of the Series 2013 Bonds.
(b)If, at any time, the Schoolhouse shall have been damaged or destroyed (i) to such extent
that it cannot be reasonably restored within a period of six (6) months to substantially the condition
thereof immediately preceding such. damage or destruction, (ii) to such extent that the Company is thereby
prevented, in the Company's judgment, from carrying on its normal operations at the Schoolhouse for a
period of six (6) months or more, or (iii) to such extent that the cost of restoration thereof would exceed
the Net Proceeds of insurance required to be carried thereon pursuant to the requirements the Loan
Agreement.
(c)If, at any time, title to, or the temporary use for a period of six (6) months or more of all
or substantially all the Schoolhouse, or such part thereof as shall materially interfere in the Company's
judgment, with the operation of the Schoolhouse for the purpose for which the Schoolhouse was
designed, shall have been taken under the exercise of the power of eminent domain or be effectively taken
through the exercise of police or other similar power by any governmental body or by any person, firm or
corporation acting under governmental authority (including such a taking or takings •as results in the
Company being thereby prevented from canying on its normal operations at the Schoolhouse for a period
of six (6) months or more).
(d)If, at any time, changes which the Company cannot reasonably control or overcome in the
economic availability of materials, supplies, labor, equipment and other properties and things necessary
*Preliminary; subject to change. 11
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for the efficient operation of the Schoolhouse for the purpose contemplated by the Loan Agreement shall
have occurred, or technological or other changes shall have occurred which in the judgment of the
Company render the continued operation of the Schoolhouse uneconomic for such purposes.
(e) If, at any time, as a result of any changes in the Constitution of the State or the
Constitution of the United States of America or of legislative or administrative action (whether state or
federal) or by final decree, judgment or order of any court or administrative body (whether state or
federal) entered after the contest thereof by the Company in good faith, the Loan Agreement shall have
become void or unenforceable or impossible of performance in accordance with the intent and purposes
of the parties as expressed in the Loan Agreement, or unreasonable burdens or excessive liabilities shall
have been imposed on the Company in respect to the Schoolhouse, including, without limitation, federal,
state or other ad valorem, property, income or other taxes not being imposed on the date of the Loan
Agreement which in the judgment of the Company render the continued operation of the Schoolhouse
uneconomic.
To exercise its options under (b), (c), (d), or (e) above, the Company must, within sixty (60) days
following the event authorizing or requiring such redemption, give notice to the Issuer and the Trustee,
specifying a redemption date not less than fifty (50) days nor more than ninety (90) days from the date
such notice is mailed.
Mandatory Redemption upon Determination of Taxability. All Series 2013 Bonds are subject to
mandatory redemption in whole, at their principal amount, plus accrued interest, plus for the
Series 2013A Bonds, a 3% premium, upon the occurrence of a Determination of Taxability (as defined in
APPENDIX I), on a redemption date not later than thirty (30) days following the finalization of such
Determination of Taxability.
Acceleration. Upon an Event of Default under the Indenture, all Series 2013 Bonds are subject to
acceleration and prepayment on any date selected by the Trustee at their principal amount, plus accrued
interest, without premium.
Notice of Redemption; Payment
The Trustee is required to cause notice of redemption to be mailed to the then owner of each
Series 2013 Bond to be redeemed, by first class mail not less than thirty (30) days nor more than forty-
five (45) days prior to the redemption date. Failure to mail or any defect in any such notice shall not
affect the validity of any proceedings for the redemption of any Series 2013 Bond not affected by such
failure or defect. Interest on any Series 2013 Bonds or portions thereof called for redemption ceases to
accrue on the date established for redemption.
In the case of an optional redemption under the Indenture, the notice may state (a) that it is
conditioned upon the deposit of money, in an amount equal to effect the redemption, with the Trustee on
or before the redemption date or (b) that the Company retains the right to rescind such notice on or prior
to the scheduled redemption date (in either case, a "Conditional Redemption"), and such notice and
optional redemption shall be of no effect if such money is not so deposited or if the notice is rescinded as
hereinafter described. On or before the redemption date (except for mandatory sinking fund redemption),
funds sufficient to redeem such Series 2013 Bonds, including accrued interest thereon to the redemption
date, shall be deposited with the Trustee. The Series 2013 Bonds thus called shall not, on or after the
specified redemption date, bear any interest and, except for the purpose of payment, shall not be entitled
to the lien of this Indenture. Any Conditional Redemption may be rescinded in whole or in part at any
time on or before the redemption date if the Company delivers a certificate of the Company to the Issuer
and the Trustee instructing the Trustee to rescind the redemption notice. The Trustee shall give prompt
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notice of such rescission to the affected Bondholders. Any Series 2013 Bonds subject to Conditional
Redemption where redemption has been rescinded shall remain outstanding, and the rescission shall not
constitute an Event of Default. Further, in the case of a Conditional Redemption, the failure of the
Company to make funds available in part or in whole on or before the redemption date shall not constitute
an Event of Default, and the Trustee shall give immediate notice to DTC or the affected Bondholders that
the redemption did not occur and that the Series 2013 Bonds called for redemption and not so paid remain
outstanding.
SECURITY FOR THE SERIES 2013 BONDS
Special, Limited Obligations
THE SERIES 2013 BONDS ARE SPECIAL, LIMITED OBLIGATIONS OF THE ISSUER
AND WILL NOT CONSTITUTE A DEBT, LIABILITY, GENERAL OBLIGATION OR PLEDGE OF
THE FULL FAITH AND CREDIT OF THE ISSUER, THE CITY, THE STATE OR ANY POLITICAL
SUBDIVISION THEREOF. THE ISSUANCE OF THE SERIES 2013 BONDS DOES NOT DIRECTLY
OR INDIRECTLY OR CONTINGENTLY OBLIGATE THE ISSUER, THE CITY, OR THE STATE
OR ANY POLITICAL SUBDIVISION THEREOF TO PAY THE SERIES 2013 BONDS FROM
TAXES OR TO ANY APPROPRIATION THEREFOR. NO BONDHOLDER WILL HAVE THE
RIGHT TO DEMAND PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST
ON THE SERIES 2013 BONDS OUT OF ANY FUNDS OR FROM ANY SOURCES OF REVENUE
OTHER THAN THOSE EXPRESSLY PLEDGED TO THE PAYMENT OF THE SERIES 2013
BONDS PURSUANT TO THE INDENTURE.
Payments Under the Loan Agreement; Assignment of Loan Agreement
Monthly Loan Repayments from the Company are required under the Loan Agreement to be paid
directly to the Trustee in amounts that will be sufficient, if paid promptly and in full, to pay when 'due all
principal of and interest on the Series 2013 Bonds. Under the Indenture, the Issuer has pledged its interest
in the Loan Agreement (including the payments payable thereunder to the Issuer by the Company, but
excluding certain rights of the Issuer to payment of fees, expenses and indemnification) to the Trustee to
secure the Series 2013 Bonds. See "APPENDIX I - DEFINITIONS OF CERTAIN TERMS AND
SUMMARIES OF DOCUMENTS - THE LOAN AGREEMENT" in this Official Statement. The Trustee
is authorized to exercise the rights of the Issuer and enforce the obligations of the Company under the
Loan Agreement. Payments are due from the Company on a full-recourse basis.
Reserve Fund
On the date of issuance of the Series 2013 Bonds, proceeds of the Series 2013 Bonds in an
amount equal to the Reserve Fund Requirement ($ ), will be deposited in the Reserve Fund
created under the Indenture and held by the Trustee. Thereafter, unless needed to maintain the amount in
the Reserve Fund at the Reserve Fund Requirement, investment income on amounts in the Reserve Fund
will be deposited in the Bond Fund.
Amounts in the Reserve Fund may be used by the Trustee to pay principal of, premium, if any,
and interest on the Series 2013 Bonds in the event sums in the Bond Fund are insufficient for such
purpose. Amounts in the Reserve Fund are valued semi-annually as provided in the Indenture. In
accordance with the Loan Agreement, the Company is required to cure any deficiency in the Reserve
Fund within thirty (30) days that occurs as a result of a valuation, and if the deficiency occurs as a result
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of a withdrawal, the Company is required to restore such withdrawal within ninety (90) days. Amounts in
the Reserve Fund may be invested in Permitted Investments.
Mortgage
Under the Mortgage, Security Agreement and Assignment of Rents, dated as of July 1, 2013 (the
"Mortgage"), the Company will grant to the Trustee a mortgage lien on and security interest in the
Schoolhouse, subject to certain Permitted Encumbrances as described in the Mortgage. Under the•
Mortgage, the Company also will grant a security interest in all leases and rents with respect to the
Schoolhouse. See "APPENDIX I - DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF
DOCUMENTS - THE MORTGAGE" in this Official Statement.
Subordination, Non -i isturbance, and Attornment Agreement
In connection with the issuance of the Series 2013 Bonds, the Trustee, the Company, and the
Charter School will enter into a Subordination, Non-Disturbance, and Attornment Agreement, dated as of
July 1, 2013 (the "SNDA"). Pursuant to the SNDA, the Trustee, the Company and the Charter School
agree, among other items, that (i) the lien of the Mortgage and the Assignment are at all times superior to
the rights of the Charter School under the Lease, (ii) the Trustee and the Company will not disturb the
Charter School and its use of the Schoolhouse under the terms of the Lease (even during a foreclosure
event) unless the Charter School is in default under the Lease, (iii) if a transfer of the Schoolhouse occurs,
then the purchaser/transferee taking possession of the Schoolhouse will attom to the rights of the Charter
School under the terms of the Lease (for the balance of the Lease term), and (iv) the Charter School will
not take any action to assign, cancel, or terminate the Charter School's obligations under the Lease and
the Pledge Agreement, except as expressly permitted.
Lease
Payments due under the Lease will be in amounts sufficient to pay debt service on the
Series 2013 Bonds. Pursuant to the Mortgage, the Company will assign its interest in the Lease to the
Trustee as additional security for the Series 2013 Bonds. See "APPENDIX I - DEFINITIONS OF
CERTAIN TERMS AND SUMMARIES OF DOCUMENTS - THE LEASE" in this Official Statement.
Pledge Agreement
Under the Pledge Agreement, the Charter School grants to the Trustee a security interest in
certain revenues and assets of the Chatter School as additional security for the Lease Payments under the
Lease. The Charter School has further agreed in the Pledge Agreement to establish and maintain a
depository account (the "Sweep Account") at or another FDIC insured
banking institution into which there shall be deposited twice each month all funding provided to the
Charter School from the State of Minnesota Department of Education, including but not limited to
General Education Revenues, Building Lease Aid, other special funds and pass-through payments of
federal education funds. Under the terms of the Sweep Account, there shall be automatically transferred
to the Trustee (as assignee of the Company) an amount from the Sweep Account equal to all amounts
then-due and payable by the Charter School pursuant to the Lease. Each Lease Payment from the Charter
School is structured to include an amountsufficient to pay then-due and payable principal and interest on
the Series 2013 Bonds. Such transfers to the • Trustee are to be made on the same Business Day for
deposits received before 12:00 noon, Central time, or if the deposits are received after 12:00 noon,
before 12:00 noon on the next succeeding Business Day. In the event that the amount available from the
first deposit in a month of State funds is insufficient to pay the amounts due under the Lease, the amount
of any such insufficiency shall be transferred- to the Trustee from the second monthly deposit .(or from
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succeeding deposits thereafter) of State funds. After the amounts due under the Lease in any month have
been fully paid to the Trustee, the balance available in the Sweep Account shall be remitted to the Charter
School and shall be available to the Charter School to use for any authorized purposes. The Sweep
Account shall not otherwise be available to pay any expenses or secure any obligations of the Charter
School or Company. See "APPENDIX I - DEFINITIONS OF CERTAIN TERMS AND SUMMARIES
OF DOCUMENTS - THE PLEDGE AGREEMENT" in this Official Statement.
Intercreditor Agreement Requirement for Future Line of Credit
In recent years, the Charter School obtained a line of credit (a "Line of Credit") to assist with
operating, needs during the holdback of State Funds. The Charter School does not currently have a Line
of Credit. In the event that the Charter School in future years obtains a Line of Credit, the Charter School
and the Line of Credit provider will be required to enter into an Intercreditor Agreement with the Trustee
in substantially the form attached to the Loan Agreement.
Additional Bonds
Pursuant to the Indenture, the Issuer, at the request of the Company, is authorized to issue
Additional Bonds secured and payable on a parity basis with the Series 2013 Bonds provided that, prior to
the issuance of any such Additional Bonds, the following terms and conditions have been met:
(a)the Trustee has received a copy, duly certified by the Issuer, of the resolution adopted by
the Issuer authorizing the issuance of such Additional Bonds and the execution and delivery of (i) a
supplemental indenture, supplementing and amending the Indenture, which supplemental indenture shall
not require the approval of any Registered Owner of the Series 2013 Bonds, providing the date, interest
rates and maturities of such Additional Bonds, options and requirements for redemption prior to maturity
with respect to such Additional Bonds, deposit of proceeds to the various funds and accounts, and such
other terms as may be required by reason of the foregoing and which adopts the applicable provisions of
this Indenture, (ii) an amendment supplementing and amending the Loan Agreement, (iii) an amendment
supplementing and amending the Mortgage, and (iv) an amendment to the Lease pursuant to which the
Charter School is obligated to make additional Lease Payments sufficient to pay the principal and interest
due with respect to such Additional Bonds and any related costs or expenses;
(b)the Trustee has either (1) received (i) an opinion or report of an independent certified
public accountant to the effect that the Charter School's Net Income Available for Debt Service for the
Fiscal Year immediately preceding the date on which such Additional Bonds are to be issued for which
audited financial statements are available, plus Eliminated Expenses, totals at least 100% of maximum
Principal and Interest Requirements on Long-Term Indebtedness of the Charter School (including such
requirements for the proposed Additional Bonds but excluding such requirements for any Indebtedness of
the Charter School to be refinanced thereby) payable in any Fiscal Year, and (ii) a certificate of the
Charter School representative, verified by an independent certified public accountant, to the effect that
Net Income Available for Debt Service for the next Fiscal Year beginning after the Fiscal Year in which
any improvements being financed by such proposed Additional Bonds are to be placed in service, or, if no
improvements are to be financed thereby, beginning with the first Fiscal Year after the Fiscal Year in
which the proposed Additional Bonds are to be issued, will be at least 125% of the maximum Principal
and Interest Requirements on Long-Term Indebtedness of the Charter School (including such
requirements for the proposed Additional Bonds but excluding such requirements for any then
outstanding Long-Term Indebtedness of the Charter School or Bonds to be refinanced by the proposed
Additional Indebtedness) for each Fiscal Year beginning with the second Fiscal Year after the Fiscal Year
in which any improvements being financed by such proposed Additional Bonds are to be placed in
service, or, if no improvements are to be financed thereby, beginning with the first Fiscal Year after the
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Fiscal Year in which the proposed Additional Bonds are to be issued, but before the final stated maturity
of all then Outstanding Bonds; or (2) received the prior written consent of the Majority Bondholder to the
issuance of such Additional Bonds;
(c)the Trustee has received a certificate of the Company Representative to the effect that
there is no Event of Default then existing under the Loan Agreement or the Indenture;
(d)the Trustee has received an opinion of Bond Counsel to the effect that the issuance of
such Additional Bonds will not affect adversely the exclusion from gross income for federal income tax
purposes of interest on any Outstanding Tax Exempt Bonds;
(e)the Trustee has received original executed counterparts of the agreement supplementing
and amending the Loan Agreement, the Mortgage, the Pledge Agreement and the Lease, and the
supplemental indenture supplementing and amending the Indenture;
(f)the Trustee has received a request and authorization to the Trustee on behalf of the Issuer
and signed by its Issuer Representatives to authenticate and deliver such Additional Bonds to the
purchasers therein identified, upon payment to the Trustee, but for the account of the Issuer, of a sum
specified in such request and authorization, plus accrued interest thereon, if any, to the date of delivery;
(g)the Trustee has received an executed opinion of Bond Counsel to the effect that (i) the
Additional Bonds have been duly authorized, executed and delivered and constitute the binding limited
obligations of the Issuer, enforceable in accordance with their terms, subject to normal bankruptcy
exceptions, and (ii) the interest on such Additional Bonds is excluded from gross income for federal
income tax purposes (unless it is intended that such interest be taxable); and
(h)the Trustee has received written confirmation from any Rating Agency then maintaining
a rating on the Series 2013 Bonds that the rating on the Series 2013 Bonds will not be adversely affected
by the issuance of the Additional Bonds.
The Pledge Agreement also provides similar limitations on the Charter School's ability to incur
Indebtedness. See "SECURITY FOR THE SERIES 2013 BONDS — Additional Indebtedness" and
"APPENDIX I - DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF DOCUMENTS - THE
LOAN AGREEMENT - Additional Bonds and Additional Indebtedness" in this Official Statement.
Additional Indebtedness
The Loan Agreement places certain restrictions on the incurrence of indebtedness by the
Company and requires the Company to impose certain restrictions on the Charter School pursuant to the
Lease or the Pledge Agreement.
Additional Indebtedness of the Company
The Company has covenanted in the Loan Agreement that it will not incur any indebtedness other
than the Series 2013 Bonds or Additional Bonds issued pursuant to the Indenture. See "SECURITY FOR
THE SERIES BONDS — Additional Bonds" and "APPENDIX I - DEFINITIONS OF CERTAIN TERMS
AND SUMMARIES OF DOCUMENTS - THE LOAN AGREEMENT - Additional Bonds and
Additional Indebtedness" in this Official Statement.
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Additional Indebtedness of the Charter School
The Charter School has covenanted in the Pledge Agreement that it will not incur any
indebtedness unless it (i) receives the written consent of the Majority Bondholder or (ii) the Charter
School can satisfy certain requirements described in the Loan Agreement and Pledge Agreement.
Long-Term Indebtedness. Pursuant to the Loan Agreement and Pledge Agreement, the Charter
School may incur Long-Term Indebtedness upon the satisfaction of certain requirements, including
furnishing to the Trustee: (i) an opinion or report of an independent certified public accountant to the
effect that the Charter School's Net Income Available for Debt Service for the Fiscal Year immediately
preceding the date on which such Long-Term Indebtedness is to be incurred for which audited financial.
statements are available, plus Eliminated Expenses, totals at least 100% of maximum Principal and
Interest Requirements on Long-Term Indebtedness of the Charter School (including such requirements for
the proposed. Long-Term Indebtedness but excluding such requirements for any Indebtedness of the
Charter School to be refinanced thereby) payable in any Fiscal Year, and (ii) a certificate of the Charter
School representative, verified by an independent certified public accountant, to the effect that Net
Income Available for Debt Service for the next Fiscal Year beginning after the Fiscal Year in which any
improvements being financed by such proposed Long-Term Indebtedness are to be placed in service, or,
if no improvements are to be financed thereby, beginning with the first Fiscal Year after the Fiscal Year
in which the proposed Long-Term Indebtedness is to be incurred, will be at least 125% of the maximum
Principal and Interest Requirements on Long-Term Indebtedness of the Charter School (including such
requirements for the proposed Long-Tenn Indebtedness but excluding such requirements for any then
outstanding Long-Term Indebtedness of the Charter School or Bonds to be refinanced by the proposed
Long-Term Indebtedness) for each Fiseal Year beginning with the second Fiscal Year after the Fiscal
Year in which any improvements being financed by such proposed Long-Term Indebtedness are to be
placed in service, or, if no improvements are to be financed thereby, beginning with the first Fiscal Year
after the Fiscal Year in which the proposed Long-Term Indebtedness is to be incurred, but before the final
stated maturity of all then Outstanding Bonds.
Notwithstanding the requirements of the prior paragraph, the Charter School may incur Long-
Term Indebtedness: (A) if and to the extent necessary to provide additional funds for completing payment
of the cost of any improvements or alterations for which any Long-Term Indebtedness shall have been
incurred; or (B) for refinancing the principal amount of any. Outstanding Long-Tenn Indebtedness
provided the Principal and Interest Requirements on Long-Term Indebtedness (including such
requirements for the proposed Long-Term Indebtedness but excluding such requirements for the Long-
Term Indebtedness to be refinanced thereby) for each Fiscal Year after the Fiscal Year in which the
proposed Long-Term Indebtedness is to be incurred but before the final Stated Maturity of all then
Outstanding Bonds will not exceed the amount of Principal and Interest Requirements on Long-Term
Indebtedness that would have been available for each such Fiscal Year had such proposed Long-Term
Indebtedness not been incurred.
The Charter School may only incur Long-Term Indebtedness if the incurrence of such Long-
Term Indebtedness will not cause the Rating Agency to lower or withdraw its rating on Outstanding
Bonds.
Purchase Money Indebtedness. The Charter School may also incur Long-Term Indebtedness
without regard to the limitations set forth in the Indenture, Loan Agreement, and Pledge Agreement if:
(i) such Long-Term Indebtedness is secured solely by a security interest in personal property financed
with such Long-Term Indebtedness; (ii) the aggregate payments required to be made by the Charter
School in each Fiscal Year with respect to all Long-Term Indebtedness incurred as such purchase money
indebtedness does not exceed five percent (5%) of the Gross Revenues of the Charter School, as defined
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in the most recent audited financial statements of the Charter School, determined as of the date such
Long-Term Indebtedness is to be incurred; (iii) such Long-Term Indebtedness amortizes over a period of
not more than sixty (60) months; and (iv) the Charter School certifies that the incurrence of such Long-
Term Indebtedness will not cause it to be in violation of the Operating Covenants of the Charter School.
Short-Term Indebtedness. The Charter School may incur Short-Term Indebtedness in an amount
that does not exceed in any Fiscal Year the lessor of: (i) $300,000; or (ii) the amount by which $300,000
exceeds. the proceeds of Authorized Receivable Sales (as defined in the Loan Agreement) in the same
Fiscal Year. The average monthly outstanding balance of any such Short-Term Indebtedness may not
exceed five percent (5%) of the Gross Revenues of the Charter School in the preceding Fiscal Year.
Except as provided in any Intercreditor Agreement, any Short-Term Indebtedness incurred by the Charter
School must be subordinate to the lien of the Bondholders and may not be secured by any security interest
in or lien against the Schoolhouse. Any Intercreditor Agreement must be substantially in the form
provided in the Loan Agreement. See "APPENDIX I — DEFINITIONS OF CERTAIN TERMS AND
SUMMARIES OF DOCUMENTS — THE INTERCREDITOR AGREEMENT" in this Official Statement.
Authorized Receivable Sales. The Charter School may conduct Authorized Receivable Sales in
an amount that does not exceed in any Fiscal Year the lessor of (i) $300,000; or (ii) the amount by which
$300,000 exceeds the proceeds of Short-Term Indebtedness in the same Fiscal Year. The Loan
Agreement defines "Authorized Receivable Sale" as the sale of receivables if such receivables are due
and payable no later than the date one (1) year from the date of such sale.
See "APPENDIX I — DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF
DOCUMENTS — THE LOAN AGREEMENT — Additional Bonds and .Additional Indebtedness" and
"- Covenants of the School" in this Official Statement.
Various Operating Covenants of the Charter School
The Loan Agreement and the Pledge Agreement also contain other financial requirements and
covenants that the Charter School must comply with in the future. See "APPENDIX I — DEFINITIONS
OF CERTAIN TERMS AND SUMMARIES OF DOCUMENTS — THE LOAN AGREEMENT" and
" - THE PLEDGE AGREEMENT" in this Official Statement.
Operating Reserve Balance and Days Cash on Hand Covenant. Pursuant to the terms of the
Pledge Agreement, the Charter School covenants and agrees to maintain an unrestricted Cash on Hand in
its operation fund equal to or greater than forty-five (45) Days Cash on Hand. "Days Cash on Hand"
means (a) Cash on Hand of the Charter School, as shown on the financial statements for each Fiscal Year
divided by (b) the quotient of Operating Expenses, as shown on the financial statements for such Fiscal
Year, divided by 365. The Cash on Hand will be tested as of the end of each Fiscal Year, commencing
June 30, 2014. Amounts on deposit in such operating fund may be used to pay Operating Expenses or
may be used for any other lawful purpose. The foregoing is subject to the qualification that if applicable
state or federal laws or regulations, or the rules and regulations of agencies having jurisdiction (including,
without limitation, changes in State or federal funding schedules), will not permit or enable the Charter
School to maintain such level of Cash on Hand, then the Charter School will, in conformity with the then
prevailing laws, rules or regulations, maintain its Cash on Hand equal to the maximum permissible level.
If the Cash on Hand for any testing date is less than forty-five (45) Days Cash on Hand, the
Trustee shall give notice thereof to Bondholders, and the Charter School will promptly employ an
Independent Consultant to review and analyze the operations and administration of the Charter School,
inspect the Schoolhouse, and submit to the Charter School and Trustee written reports, and make suc.h
recommendations as to the. operation and administration of the Charter School as such Independent
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Consultant deems appropriate, including any recommendation as to a revision of the methods of operation
thereof. The Charter School agrees to consider any recommendations by the Independent Consultant and,
to the fullest extent practicable, to adopt and carry out such recommendations. So long as the Charter
School is otherwise in full compliance with its obligations under the Loan Agreement, including the
operating reserve- balance covenant, and to the fullest extent practicable, the recommendations of the
Independent Consultant, it shall not constitute an Event of Default if the Cash on Hand for any testing
date, is less than thirty (30) Days Cash on Hand.
Debt Service Coverage Ratio Covenants. In addition to the Cash on Hand covenant discussed
above, the Charter School shall maintain a Net Income Available for Debt Service in each Fiscal Year,
commencing with the Fiscal Year ending June 30, 2014, that will be at least 120% of the Principal and
Interest Requirements on Long-Term Indebtedness during such Fiscal Year.
If the Charter School maintains sixty (60) Days Cash on Hand as measured on the last day of each
Fiscal Year, then the Charter School will budget and set expenses and will operate its Schoolhouse,
subject to applicable requirements or restrictions imposed by law, such that the Charter School's Net
Income Available for Debt Service in each Fiscal Year, commencing with the Fiscal Year ending
June 30, 2014, will be at least 100% of the Principal and Interest Requirements on Long-Term
Indebtedness during such Fiscal Year. If the Charter School is meeting the operating reserve balance
covenant discussed above, but the Charter School has not maintained or does not budget that the Charter
School will maintain sixty (60) Days Cash on Hand for the next Fiscal Year, then the Charter School will
budget and set expenses and will operate the Schoolhouse, subject to applicable requirements or
restrictions imposed by law, such that the Charter School's Net Income Available for Debt Service in
each Fiscal Year, commencing with the Fiscal Year ending June 30, 2014, will be at least 110% of the
Principal and Interest Requirements on Long-Term Indebtedness during such Fiscal Year. .
If (i) the Net Income Available for Debt Service for any Fiscal Year ending on or after
June 30, 2014 is less than 120% of the Principal and Interest Requirements on Long-Term Indebtedness
during such Fiscal Year, the Trustee will give notice thereof to the Bondholders, and the Charter School
will promptly employ an Independent Consultant to review and analyze the operations and administration
of the Charter School, inspect the Schoolhouse, and submit to the Charter School and Trustee written
reports, and make such recommendations as to the operation and administration of the Charter School as
such Independent Consultant deems appropriate, including any recommendation as to a revision of the
methods of operation thereof. The Charter School agrees to consider any recommendations by the
Independent Consultant and, to the fullest extent practicable, to adopt and cany out such
recommendations. Such Independent Consultant shall be acceptable to the Trustee.
So long as the Charter School is otherwise in full compliance with its obligations under the Loan
Agreement, including following, to the fullest extent practicable, the recommendations of the Independent
Consultant, it shall not constitute an Event of Default if the Net Income Available for Debt Service for
any Fiscal Year ending on or after June 30, 2014, is less than 120% of the Principal and Interest
Requirements on Long-Term Indebtedness for such Fiscal Year (as evidenced by the Charter School's
audited financial statements for such Fiscal Year).
Notwithstanding the immediately preceding paragraph, regardless of whether the Charter School
has retained an Independent Consultant, if at the end of the Fiscal Year 2014 or any subsequent Fiscal
Year, the Net Income Available for Debt Service as of the end of such Fiscal Year is less than 100% of
the Principal and Interest Requirements on Long-Term Indebtedness for such Fiscal Year (as evidenced
by the Charter School's audited financial statements for such Fiscal Year), then the Trustee will give
notice thereof the Bondholders and EMMA and either (y) declare an Event of Default or (z) exercise one
or more of the remedies permitted under the Loan Agreement and the Indenture.
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Capital Improvements Fund. The Company has covenanted to deposit a portion of the Lease
Payment to be made by the Charter School to the Company to the Capital Improvements Fund established
pursuant to the Indenture in an amount equal to the Monthly Deposit (as defined in APPENDIX I).
Amounts in the Capital Improvements Fund will be used by the Company for the payment of items of
repair, improvement, and replacement with respect to the Schoolhouse, which constitute capital
expenditures under generally accepted accounting principles or which constitute major periodic repair or
maintenance of the Schoolhouse, such as the annual painting or recarpeting a section of the Schoolhouse
(as opposed to incidental repairs). See "APPENDIX I - DEFINITIONS OF CERTAIN TERMS AND
SUMMARIES OF DOCUMENTS" in this Official Statement.
Capital Assessment Plan. Commencing with the Fiscal Year ending June 30, 2018, and every 5th
anniversary thereof, the Company agrees to furnish to the Trustee, the Original Purchaser and EMMA
(and to the Issuer, upon request), by no later than 150 days after the close of such Fiscal Year during the
term hereof, within thirty (30) days of approval by the Board of the Company, a five-year comprehensive
capital assessment plan (which may be sent electronically) to be prepared by an independent engineer,
building inspector or other qualified professional with respect to the Company's capital facilities,
detailing the condition and projected sources of funding such needs. If funds on hand are not sufficient to
meet the capital needs set forth in the capital assessment plan, the Company shall budget for such capital
needs such that the capital needs can be met within the five-year period covered by the capital assessment
plan. The Monthly Deposit to the Capital Improvements Fund shall be increased as necessary to an
amount sufficient to satisfy such needs over the five year period covered by the capital assessment plan.
Transfer and Assignment to Affiliated Building Company
Subject to the requirements of the Loan Agreement, the Company has agreed in the Option that
the Company shall sell, transfer or convey, for consideration of $1.00 and the assumption of all of the
Company's obligations with respect to the Schoolhouse and the other transferred assets, the Schoolhouse
and all related accounts and reserves and assign its interest in and obligations under the Loan Agreement
(including the Company's obligations with respect to payment of the Series 2013 Bonds), the Mortgage,
the Lease, the Continuing Disclosure Agreement and the Tax Regulatory Agreement to an Affiliated
Building Company or an Exempt Organization designated by the Charter School which entity shall
assume such obligations. Under the terms of the Loan Agreement, the Company is authorized to make
such sale, transfer or conveyance upon delivery by the Company to the Trustee of (a) a certificate of the
Company that there is no default or Event of Default then existing under the Loan Agreement, the
Mortgage, the Lease, the Continuing Disclosure Agreement or the Tax Regulatory Agreement; (b) a
certificate of the Charter School that there is no default or Event of Default then existing under the Lease,
the Pledge Agreement, the Continuing Disclosure Agreement or the Tax Regulatory Agreement;
(c) assumption by the Affiliated Building Company or the Exempt Organization designated by the Charter
School in writing of all representations, duties and obligations of the Company under the Loan
Agreement, the Pledge Agreement, the Mortgage, the Continuing Disclosure Agreement, the Tax
Regulatory. Agreement, the Assignment of Lease, the Lease, and the Indenture; (d) a final Certificate of
Occupancy for the Project; (e) a positive review and comment letter from the Minnesota Department of
Education approving the acquisition; (I) an opinion of Bond Counsel to the effect that the transfer does
not adversely affect the tax-exempt status of the Tax-Exempt Bonds and (g) an opinion of Independent
Counsel that the duties and obligations of the Company under the Loan Agreement, the Mortgage, the
Continuing Disclosure Agreement, the Tax Regulatoiy Agreement, the Assignment of Lease, and the
Lease, are enforceable against the transferee.
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Defeasance
Upon certain terms and conditions specified in the Indenture, including provisions for the
payment of such Series 2013 Bonds, the Series 2013 Bonds or portions thereof will be deemed to be paid
and the security provided in the Indenture and the Mortgage may be discharged prior to maturity or
redemption of the Series 2013 Bonds. In that case, the Series 2013 Bonds will be secured solely by the
cash and securities deposited with the Trustee for such purpose.
BONDHOLDERS' RISKS
No person should purchase any Series 2013 Bonds without carefully reviewing the following
information, which summarizes some, but not all factors that should be carefully considered before such
purchase.
Nature of Special, Limited Obligations
The Series 2013 Bonds are special, limited obligations of the Issuer, payable solely from amounts
pledged under the Indenture to the.payment of principal, interest and premium, if any, on the Series 2013
Bonds (which includes Loan Repayments from the Company, amounts in the Reserve Fund, Lease
Payments from the Charter School and other amounts held by the Trustee under the Indenture and
proceeds realized under the Mortgage), and do not give rise to a general obligation or general liability of
the Issuer or a charge against its general credit or taxing powers and shall never constitute nor give rise to
a pecuniary liability of the Issuer. The Series 2013 Bonds do not constitute a debt, moral obligation,
liability or loan of credit or a pledge of the full faith and credit or taxing power of the Issuer, the City, the
State, or of any political subdivision thereof
Dependence on Company's Ability to Pay Loan Repayments; Ability of Charter School to Pay
Lease Payments
Payment of principal of, premium, if any, and interest on the Series 2013 Bonds is intended to be
made from payments of Loan Repayments by the Company under the Loan Agreement, except to the
extent payment is intended to be made from other amounts held under the Indenture such as Series 2013
Bond proceeds or investment earnings. The Company has no significant assets or business other than the
assets and business related to the Schoolhouse. The ability of the Company to make Loan Repayments
will depend on the Company's ability to generate revenues sufficient to pay the Loan Repayments from
the Lease to the Charter School. Future revenues of the Company from the Schoolhouse will primarily
depend on the ability of the Charter School to make payments under the Lease.
The Charter School's ability to make payments under the Lease is dependent on its revenues,
including building lease aid received from the State of Minnesota, which are largely dependent on student
enrollment and educational funding from the State. Because lease aid is limited to 90% of the lease
amount, subject to certain caps as described under the heading "CHARTER SCHOOLS IN •
MINNESOTA — Building Lease Aid" in this Official Statement, lease aid alone will be insufficient to
make the total payments due under the Lease. See "APPENDIX A — THE CHARTER SCHOOL,"
"APPENDIX B — THE COMPANY, AND THE PROJECT — BUDGET, ACCOUNTING; AND DEBT"
and "APPENDIX D — FINANCIAL FORECAST" in this Official Statement: The Charter School's
general revenues are a combination of (a) State aids provided under the following programs: General
Education Aid (which coincides with enrollment), Special Education, Limited English Proficiency,
Compensatory Aid and Building Lease Aid (which coineides with enrollment), and (b) Federal programs
administrated by the State including Title I, Part A of the No Child Left Behind Elementary and
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Secondary Education Act (NCLB/ESEA), Improving Basic Program, Title II, Part A of the NCLB/ESEA,
Teacher/Principal Training and Recruitment, Title II, Part D, Enhancing Education Through Technology,
Title III, Limited English Proficient Students, and Title V, Part A - Regular Innovative Programs. Prior
enrollment history is no guaranty of future enrollment and revenue.
In addition, State aid payments are not always received by the Charter School from the State on a
timely basis, which may result in late payments by the Charter School under the Lease and Pledge
Agreement, which may, in turn, result in late payments by the Company under the Loan Agreement.
Future revenues and expenditures of the Company will be subject to the amounts and the timing
of future revenues to the Charter School, which cannot be determined with assurance. Prior revenues and
expenditures of the Charter School are no guaranty as to future revenue and expenditures of the Charter
School.
State Budget Issues
The State of Minnesota has experienced budget shortfalls in recent biennums. Rather than
relying upon increased tax revenue to fund K-12 education costs (except for a minor increase of $50 per
student in both Fiscal Year 2011 and Fiscal Year 2012), the Minnesota Legislature has enacted a number
of funding reductions/spending shifts and holdbacks to close such budget shortfalls. For Fiscal Year
2013, the Charter School (like all Minnesota charter schools) received 64.3% of its annual entitlement
between July 1, 2012 and March 15, 2013. The Charter School is scheduled to receive the remaining
35.7% of its Fiscal Year 2013 entitlement between July 15, 2013, and January 15, 2014.
The current State budget biennium runs from July 1, 2011 through June 30, 2013. The 2012
Legislative session concluded in mid-May 2012. The 2012 Legislature did not make any substantive
changes in State funding for charter schools. The Governor and Legislature were not able to agree upon a
State budget for the 2011-2013 Biennium prior to July 1, 2011 and the State government shutdown for 20
days. During the State shutdown, only critical State operations related to programs affecting life, safety
and the protection of property were continued to be funded (at prior biennium levels) as a result of a
Ramsey County District Court order. Education funding (such as payments to the Charter School) was
deemed to be critical (along with approximately 80% of other State funding) and such payments were
funded, however, no assurance can be made that such payments would be made in the case of a future
State government shutdown. As a result of the State budget agreement between the Governor and the
Legislature for the 2011-2013 Biennium, certain payments to State public education schools (including
the Charter School) were delayed and certain holdbacks have been increased. Future State budget
agreements may involve further revisions to State education funding that cannot be determined at this
time. See "No Taxing Authority; Dependence on State Payments" and "Changes in Law; Annual
Appropriation; Inadequate State Payments" below in this BONDHOLDERS' RISKS section,
"CHARTER SCHOOLS IN MINNESOTA," and "APPENDIX C — MINNESOTA LAWS RELATING
TO CHARTER SCHOOLS" in this Official Statement.
No Taxing Authority; Dependence on State Payments
The Charter School does not possess any taxing authority and is substantially dependent upon the
State to continue to provide funding for public charter schools. Moreover, the Company does not have
any taxing authority and has no significant assets or business other than the assets and business related to
the Schoolhouse. The obligation of the State under the State law to fund the Charter School is
conditioned upon the availability of funds appropriated or allocated for the payment of such obligation. If
funds are not allocated and available for the building lease aid or other State aids, no liability accrues to
the State in such event. In the event the State were to withhold the payment of money from the Charter
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School for any reason; even a reason that is ultimately determined to be invalid or unlawful, it is likely
that the Charter School would be forced to cease operations.
State aid payments are distributed to all public schools according to a "holdback" system that
allows adjustments to be made after the end of each fiscal year. Legislation passed for the 2011-2012
school year set this holdback amount to 35.7%. Under current state law, the State must reduce the
holdback during the year when the State updates its budget and the budget shows a surplus. As a result of
State budget surpluses, on December 15, 2012, the State reduced the 35.7% holdback to 17.3%, and on
February 28, 2013, it was further reduced to the current hold back amount of 13.6%. As a result, 86.4%
of each school's allocated state aid funds will be distributed over 16 payments from July through
February. No state aid funds will be distributed March through June. The remaining 13.6% holdback of
each school's allocated state aid, as adjusted for fluctuations in pupil enrollment, will be distributed to
each school the following July and October. The holdback amount is subject to change in future years.
See "CHARTER SCHOOLS IN MINNESOTA" and "APPENDIX A – THE CHARTER SCHOOL –
STATE AID PAYMENTS" in this Official Statement.
Financial Forecast
The Financial Forecast (the "Financial Forecast") prepared by Malloy, Montague, Karnovvski,
Radosevich & Co., P.A. ("Malloy") and contained in "APPENDIX D – FINANCIAL FORECAST" is
based upon certain assumptions made by the Charter School. No assurance can be given that the results
described in the Financial Forecast will be achieved. The Charter School does not intend to issue an
additional Financial Forecast and, accordingly, there are risks inherent in using the Financial Forecast in
the future as the Financial Forecast becomes outdated. The Financial Forecast is only for fiscal years
ending June 30, 2014 through June 30, 2018, and does not cover the entire period during which the
Series 20 13 Bonds may be outstanding. The Budget Project has not been revised to reflect the final
pricing of the Series 2013 Bonds. See "APPENDIX D – FINANCIAL FORECAST" in this Official
Statement.
No guaranty can be made that the Financial Forecast will correspond with the results actually
achieved in the future by the Charter School because there is no assurance that actual events will
correspond with the assumptions made by the Charter School. For example, the Financial Forecast
makes certain assumptions as to continued demand for educational facilities such as the Schoolhouse and
future enrollment at the Charter School. Actual operating results of the Charter School may be affected
by many factors, including, but not limited to, increased costs, lower than anticipated enrollment, reduced
State funding, changes in demographic trends, and local and general economic Conditions. The
Financial Forecast, which appears in "APPENDIX D — FINANCIAL FORECAST" in this Official
Statement, should be read in its entirety.
Non-Renewal or Termination of Charter Agreement by Authorizer
Under the Charter School Act, a charter school sponsor (knoWn as an "authorizer" under State
law) may or may not renew the Charter Agreement at the end of any renewal term, or may unilaterally
terminate the Charter Agreement (subject to certain reasonable notice and appeal 'procedures available to
the Charter School) upon any of the following grounds: (1) failure to meet the requirements for pupil
performance contained in the Charter Agreement; (2) failure to meet generally accepted standards of
fiscal management; (3) violations of law; or (4) other good cause shown. See "APPENDIX A – THE
CHARTER SCHOOL" "APPENDIX B – THE COMPANY AND THE PROJECT – THE CHARTER
AGREEMENT AND THE AUTHORIZER" and "APPENDIX C – MINNESOTA LAWS RELATING
TO CHARTER SCHOOLS" in this Official Statement. Decisions made by the Charter School's
Authorizer, will depend upon the policies and evaluations of future board members and staff of the
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Authorizer. Although the Charter School expects that the Charter Agreement will be renewed and
extended for the term of the Series 2013 Bonds, no assurance can be given that future boards or
administrative staffs of the Authorizer will continue to renew the Charter Agreement.
Department of Education Approval of Authorizer
Every charter school in Minnesota must be authorized by a 501(c)(3) organization, school district,
or post-secondary institution approved by the Commissioner of the Department of Education (the
"Commissioner"), pursuant to State law as an "authorizer". Each authorizer must be approved by the
State Department of Education and is subject to review every five years. If the Commissioner finds that
an authorizer has not fulfilled its requirements under State law, the Commissioner may subject the
authorizer to corrective action, which may include terminating the charter contract with any schools the
authorizer has chartered. Further, State law was amended in 2010 to change the criteria for becoming an
authorizer and the oversight and accountability requirements applicable to authorizers. As a result, a
number of previoiisly-approved authorizers are no longer eligible to sponsor charter schools. There can
be no guaranty that the Authorizer will continue to remain in good standing with the State as an approved
authorizer. See "APPENDIX C — MINNESOTA LAWS RELATING TO CHARTER SCHOOLS" in this
Official Statement.
Financial Statements
The Audited Financial Statements of the Charter School attached hereto as "APPENDIX E -
AUDITED FINANCIAL STATEMENTS OF THE CHARTER SCHOOL FOR THE FISCAL YEARS
ENDED JUNE 30, 2012 AND 2011" reflect the last two years of operation of the Charter School for
which audited financial statements have been prepared. Unaudited financial statements of the Charter
School are attached hereto as "APPENDIX F — UNAUDITED INTERIM FINANCIAL STATEMENTS
OF THE CHARTER SCHOOL FOR THE TWELVE-MONTH PERIOD ENDED JUNE 30, 2013." The
unaudited financial statements have been prepared by the Charter School and not audited by any
accounting firm. For information regarding the Company's and the Charter School's expectations after
the issuance of the Series 2013 Bonds, see "APPENDIX D — FINANCIAL FORECAST" in this Official
Statement. The financial statements of the Company are not included in this Official Statement because
the Company does not have significant financial resources and is not anticipated to have significant assets
other than the Schoolhouse. It is expected that the financial statements of the Company will be included
in a consolidated schedule to the Charter School in the future.
Property Tax Exemption
Under present Minnesota law and rulings, generally public charter schools are exempt from
property taxes levied by political subdivisions of the state so long as such :property is used for public
school purposes (although such property is subject to special assessments for local improvements to the
property). The Financial Forecast does not anticipate the payment of property taxes by either the
Company or the Charter School. However, such laws, regulations and rulings are subject to change, and
no assurance can be given that any future change in exempt status would not have a material adverse
effect on the Company.
Competition for Students
A significant portion of the Charter School's revenues is based on the number of students
enrolled in the education facilities of the Charter School. The Charter School faces competition from
other educational facilities and could face additional competition in the future as a result of the
organization of, the construction of new, or the renovation of existing, public schools or other public
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charter schools in the areas served by the Charter School. No assurance can be given that the enrollment
of the Charter School will not be adversely affected by the availability of other educational facilities in
the service areas of the Charter School and elsewhere.
The Charter School will be competing for students with the Saint Paul School District No. 625
(the "School District"), as well as private schools and other public charter schools located within or near
the City of Saint Paul, and Ramsey County; Minnesota. The Charter School's students currently come
primarily from within the School District. In the 2012-2013 school year, there are 75 public schools in
the School District (50 elementary schools, 12 middle schools, 13 high schools) serving approximately
38,000 students in the School District. See "APPENDIX A — THE CHARTER SCHOOL — SERVICE
AREA" and "— COMPETING SCHOOLS" in this Official Statement. No assurance can be given that the
Charter School will attract and retain the number of students that are needed to produce the Pledged
Revenues that are necessary to pay the principal of and interest on the Series 2013 Bonds, or that
additional schools will not be created in or near the Charter School's service area.
Effect of Student Enrollment upon Receipt of State Payments
The State General Education Revenues and Building Lease Aid payments to the Charter School
are based on the number of students enrolled in the Charter School. See "CHARTER SCHOOLS IN
MINNESOTA — State Payments" and "APPENDIX C — MINNESOTA LAWS RELATING TO
CHARTER SCHOOLS — Funding for Charter Schools" in this Official Statement. For the 2012-2013
school year, the Charter School has enrolled 322 students, and has a current wait list of 64 students (as of
February 2013) for the 2013-2014 school year. The Charter School's State Aid payments will be adjusted
to reflect the Average Daily Membership of students at the Charter School. In addition, the Financial
Forecast contains certain assumptions regarding enrollment of the Chatter School in future school years
and the assumptions set forth in the Financial Forecast also make certain assumptions regarding State
education funding payments in the future. No assurance can be given that the Charter School will attract
or retain the number of students set forth in the Financial Forecast or that are needed to produce the
Pledged Revenues in amounts sufficient to pay the principal of and interest on the Series 2013 Bonds.
See "APPENDIX A — THE CHARTER SCHOOL - ENROLLMENT AND DEMOGRAPHICS" and
"APPENDIX D — FINANCIAL FORECAST" in this Official Statement.
Recruitment of Students for an Immersion Program
The Charter School is a German language immersion school. Classes are taught primarily in
German As a result, the Charter School may have more difficulty than other charter schools which are
not immersion schools in replacing students who leave through attrition. Accordingly, the Charter School
relies on strong recruitment in Kindergarten and retention between grade levels. Parents of over % of
the Charter School's current students have indicated that they will reenroll their children for the 2013-
2014 school year. The Charter School's retention rate was % in 2012-2013, % in 2011-2012, and
% in 2010-2011. If the Charter School were to face significantly higher levels of attrition, the
Charter School could potentially have difficulty attracting sufficient numbers of new students to retain its
projected enrollment levels. See "APPENDIX A — THE CHARTER SCHOOL - ENROLLMENT —
Student Retention" and "APPENDIX D — FINANCIAL FORECAST" in this Official Statement.
Key Personnel
The Charter School's creation, curriculum, educational philosophy, and day-to-day operations
reflect the vision and commitment of the individuals who serve as the Charter School's administrators or
serve on the Charter School's Board of Directors (the "Key Personnel"). In the absence of an outside
manager, the Charter School is highly dependent upon its Key Personnel. The loss of any Key Personnel
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could adversely affect the Charter School's operations, its ability to attract and retain students, and
ultimately its financial results. The Charter School has not obtained any "key person" insurance policies
with respect to any of its Key Personnel. For more information regarding the Charter School's Key
Personnel see "APPENDIX A — THE CHARTER SCHOOL — GOVERNANCE; ADMINISTRATION;
AND FACILITY" in this Official Statement.
Self-Management by the Charter School
The Charter School does not contract with outside professionals, such as a professional charter
school management company, for the management and operation of the .Charter School. As a general
rule, charter school management companies assist charter schools in their crucial management functions
including: recruiting and evaluating staff; human resources and payroll; budgeting and fiscal management
and reporting; and other administrative functions. In the absence of a professional management company,
such duties are done by Charter School administrators and staff.
Factors Associated with Education
There are a number of factors affecting schools in general, including the Charter School, that
could have an adverse effect on the Charter School's financial position and its ability to make the
payments required under the Lease. These factors include, but are not limited to (i) the ability to attract a
sufficient number of students; (ii) future legislation and regulations affecting charter schools and the
educational industry in general; (iii) increasing costs of compliance with federal or State regulatory laws
or regulations, including, without limitation, laws or regulations concerning environmental quality, work
safety and accommodating persons with disabilities; (iv) increased costs of attracting and retaining or a
decreased availability of a sufficient number of teachers, including as related to any unionization of the
Charter School's work force with consequent impact on wage scales and operating costs of the Charter
School; (v) cost and availability of insurance for charter schools in the State; and (vi) changes in existing
statutes pertaining to the powers of the Charter School and legislation or regulations which may affect
program funding. The Charter School cannot assess or predict the ultimate effect of these factors on its
operations or the financial results of operations.
Operating/Working Capital Financing
In certain prior years, the Charter School has agreed to a Line of Credit with
") for cashflow purposes due to the State
holdbacks of certain education payments. The Charter School does not currently have a Line of Credit.
In the event that a line of credit is required in the future, no assurance can be given that
will continue to renew the Line of Credit in the future on similar terms to
what are currently in place. No assurance can be given that, in the event that
does not offer to renew the Line of Credit on terms that are acceptable to the Charter School in the future,
the Charter School will be able to obtain other operating financing on terms similar to those of the Line of
Credit to meet its cash-flow needs. Any future working capital financing incurred by the Charter. School
will have to comply with the restrictions set forth in the Pledge Agreement. See "SECURITY FOR THE
SERIES 2013 BONDS," "APPENDIX A — THE CHARTER SCHOOL — BUDGET; ACCOUNTING;
AND DEBT — Existing Debt and Obligations," and "APPENDIX I — DEFINITIONS OF CERTAIN
TERMS AND SUMMARIES OF DOCUMENTS — THE LOAN AGREEMENT," and "— THE PLEDGE
AGREEMENT" in this Official Statement.
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Tax-Exempt Status of the Company and the Charter School
The Charter School and the Company are currently exempt from federal income tax. The Charter
School is a public charter school. The Charter School is a Minnesota nonprofit corporation and
organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the
"Code"), and the Company is a Minnesota non-profit corporation, the Sole Member of which is a
Delaware nonprofit corporation and organization described in Section 501(c)(3) of the Code. Under
present federal law, regulations and rulings, the income and revenue of nonprofit, 501(c)(3) qualified
exempt organizations are exempt from federal income tax, except for any unrelated business income as
defined in the Code, and their revenues are exempt from the State sales tax except for certain services. If
the Charter School and the Company fail to continue to meet the requirements necessary to preserve their
status as non-profit corporations and a tax-exempt charitable organizations under Section 501(c)(3) of the
Code, the interest on the Series 2013A Bonds may become taxable retroactive to the date of issuance of
the Series 2013A Bonds. If the Charter School and the Company do not maintain their status, the Charter
School could experience expenses which are greater than those projected in APPENDIX C and revenues
which are lower than those projected in APPENDIX C, which would adversely affect the Charter
School's ability in the future to pay the amount due under the Lease and the Company's ability to pay the
amount due under the Loan Agreement with respect to Series 2013 Bonds. The Charter School and the
Company have covenanted in the Lease and the Tax Regulatory Agreement that they will not take any
actions or fail to take any actions, the result of which would adversely affect the Charter School's or the
Company's status as a nonprofit corporation or their respective status as tax-exempt charitable
organizations under Section 501(c)(3) of the Code.
IRS Compliance Program
The Internal Revenue Service has an active program of conducting examinations of tax-exempt
bonds through its Tax-Exempt and Government Entities Division (the "TE/GE Division"). In recent
years, the number of Internal Revenue Service tax-exempt bond examinations has increased, and public
statements made by individual Internal Revenue Service officials indicate that the number of Internal
Revenue Service Examinations of tax-exempt bonds may continue to increase in the future. Bond
Counsel will render an opinion with respect to the tax-exempt status of interest on the Series 2013A
Bonds, as described under the caption "TAX MATTERS" in this Official Statement. However, the
Charter School has not sought and is not expected to seek a ruling from the Internal Revenue Service with
respect to the tax-exempt status of the Series 2013A Bonds. No assurance can be given that the Internal
Revenue Service will not examine the Series 2013A Bonds. If the Internal Revenue Service examines the
Series 2013A Bonds, such examination may have an adverse impact on the marketability and price of the
Series 2013A Bonds. See "THE SERIES 2013 BONDS — Redemption of Series 2013 Bonds —
Mandatory Redemption upon Determination of Taxability," and "TAX MATTERS" in this Official
Statement.
Tax-Exempt Status of the Series 2013A Bonds
The tax-exempt status of the interest on the Series 2013A Bonds is conditioned upon the Charter
School and the Company complying with the requirements of the Code and applicable Treasury
Regulations as they relate to the Series 2013A Bonds and the Charter School and Company's continuing
to be a tax-exempt organizations under Section 501(c)(3) of the Code. Failure of the Charter School and
the Company to comply with the terms and conditions of the Loan Agreement, the Indenture, the Lease,
and other documents as described herein, or failure of the Charter School and the Company to continue to
be recognized as tax-exempt organizations under Section 501(c)(3) of the Code, may result in the loss of
the tax-exempt status of the interest on the Series 2013A Bonds retroactiVe to the date of issuance of the
Series 2013A Bonds. See "TAX MATTERS" in this Official Statement. Holders of Series 2013A Bonds
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will not receive any additional interest to compensate them for federal income taxes, interest and penalties
which may be assessed with respect to such interest. The Series 2013 Bonds are subject to mandator)/
redemption upon a Determination of Taxability, at a redemption price equal to par, plus accrued interest,
and a premium on the outstanding Series 2013 A Bonds. There can be no assurance that, in the event of a
Determination of Taxability, sufficient money would be available in such event to redeem the Series 2013
Bonds. Further, there can be no assurance that a Determination of Taxability will follow promptly the
events which give rise to the Determination of Taxability, so that tax obligations may accrue for
substantial periods preceding the redemption of Series 2013A Bonds upon a Determination of Taxability.
If interest on the Series 2013A Bonds should become includable in gross income for purposes of federal
income taxation, the market for and value of the Series 2013A Bonds would be adversely affected.• See
"THE SERIES 2013 BONDS — Redemption of Series 2013 Bonds — Mandatory Redemption upon
Determination of Taxability" and "TAX MATTERS" in this Official Statement.
Changes in Law; Annual Appropriation; Inadequate State Payments
Future changes to the Charter School Act by the State Legislature could be adverse to the
financial interests of the Charter School and could adversely affect the security for the Series 2013 Bonds.
There can be no assurance given that the State Legislature will not in the future amend the Charter School
Act in a manner which is adverse to the interests of the registered owners of the Series 2013 Bonds.
Minnesota may experience downturns in its economy and tax revenues in the future. The
provisions of the Charter School Act are subject to amendment by the State Legislature, including the
reduction of State funding, which could adversely affect the Charter School. STATE BUDGET
CONSIDERATIONS MAY ALSO ADVERSELY AFFECT APPROPRIATIONS FOR CHARTER
SCHOOL FUNDING. See "No Taxing Authority, Dependence on State Payments" above.
Value of Mortgaged Property
Security for the Series 2013 Bonds includes a mortgage lien on the Schoolhouse evidenced by the
Mortgage from the Company to the Trustee. Attempts to foreclose under the Mortgage may be met with
prolracted litigation and/or bankruptcy proceedings, which proceedings cause delays. See
"ENFORCEABILITY OF OBLIGATIONS." Thus, there can be no assurance that upon the occurrence
of an Event of Default, the Trustee will be able to obtain possession of the Schoolhouse and generate
revenue therefrom in a timely fashion. Because of the special nature, location, and other factors relating
to the Schoolhouse, there can be no assurance that proceeds derived from the sale of the Schoolhouse
upon default and foreclosure of the Mortgage would be sufficient to pay all amounts due in respect of the
Series 2013 Bonds. Furthermore, the Mortgage contains several Permitted Encumbrances as described in
the Mortgage. See "APPENDIX I - DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF
DOCUMENTS - THE MORTGAGE" in this Official Statement.
Construction Risks
Construction or renovation of any facility is subject to the risks of cost overruns and delays due to
a variety of factors including, among other things, site difficulties, labor strife, delays in and shortages of
materials, weather conditions, fire and casualty. Any delay in completion of the construction of the
Project could materially adversely affect the timely enrollment of students in the Charter School, which
could affect receipt of revenues from the Project. Noncompletion of the Project would materially
adversely affect the value of the security under the Mortgage. As discussed more fully under the heading
"THE PROJECT," to reduce construction risks, the Company has entered into the Construction Contract.
The Construction Contract does not cover the furniture, fixtures, and equipment to be purchased by the
Company from proceeds of the Series 2013 Bonds for the Project. The Construction Contract provides
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for liquidated damages in the event that the Project is not completed according to schedule, subject to
certain extensions set forth in the Construction Contract, but such amounts may not be sufficient to
compensate the Company and the Charter School fully for any losses associated with a late completion of
the Project. See "THE PROJECT" in this Official Statement.
Environmental Regulations
The Schoolhouse is subject to various federal, State and local laws and regulations governing
health and the environment. In general, these laws and regulations could result in liability to the owner of
the Schoolhouse (and to any beneficiary of a mortgage on the Schoolhouse, particularly following any
sale or foreclosure proceeding) for remediating adverse environmental conditions on or relating to the
Schoolhouse, whether arising from preexisting conditions or conditions arising as a result of the activities
conducted in connection with the ownership and operation of the Schoolhouse.
Although the Charter School believes that it is in material compliance with applicable
environmental laws for the Schoolhouse and the Project, costs incurred by the Company with respect to
environmental remediation or liability could adversely affect its financial condition and its ability to own
and operate the Schoolhouse. If excessive costs are incurred by the Company in connection with
remediating environmental problems or from liability to third parties, such costs could make it impractical
for the Loan Agreement to be continued pursuant to its current terms or such costs could make it more
difficult to successfully relet the Schoolhouse.
A Phase I Enviromnental Site Assessment (the "Phase I"), dated April 10, 2013, was completed
by Landmark Environmental, LLC, , Minnesota at the Project site. The Phase I found
that one 10,000 gallon underground storage tank ("UST") was at the Project site from 1965 to 1986, and a
second 10,000 gallon UST is currently present on the site. The Phase I also found potential asbestos-
containing material on the boiler in the furnace room of the Schoolhouse. Neither of these findings were
determined to be reportable environmental conditions ("RECs"). The Phase I concludes, "The Phase I
ESA revealed no evidence of RECs in connection with the Property for the specific property use of the
User; therefore, based on the future use of the Property, no further investigation is recommended."
Applied Environmental Service, Inc. ("AES") conducted a radon screening survey of the
Schoolhouse in April 2013. No findings exceeded the threshold of 4.0 picocuries per liter of air.
Appraisal of the Schoolhouse
The Company engaged Dahler, Dwyer & Foley, Inc. to conduct an appraisal of the Schoolhouse
on February 11, 2013 (the "Appraisal"). The Appraisal found an "as is" market value of the Schoolhouse
of $3,650,000, and an "as complete" market value of the Schoolhouse of $4,975,000. In the event of a
foreclosure of the Mortgage, the value of the Schoolhouse in such event cannot be determined and may be
substantially less than the appraised value of the Schoolhouse and no assurance that the value received for
the Schoolhouse will be sufficient to pay the principal of and interest due on the Series 2013 Bonds.
Maintenance of the Schoolhouse
The Schoolhouse, like other such buildings, requires ongoing capital repairs and improvements to
maintain its value and, although the Charter School and the Company intend to maintain the Schoolhouse
in good condition, and a Capital Improvements Fund is established pursuant to the Indenture with a
Monthly Deposit requirement, no assurance can be given that the Charter School and the Company will
have sufficient revenues in the future to be able to maintain a regular capital improvements program for
the Schoolhouse in the future.
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Damage or Destruction
Although the Company and Charter School will be required to obtain certain insurance, as set
forth in the Loan Agreement and the Lease, there can be no assurance that the Schoolhouse will not suffer
losses for which insurance cannot be or has not been obtained or that the amount of any such loss, or the
period during which the Schoolhouse cannot generate revenues, will not exceed the coverage of such
insurance policies. In addition, such insurance may be obtained through the use of the State-sponsored
Minnesota School Boards Association Trust rather than a private insurance company. The Minnesota
School Boards Association Trust is not reviewed or rated in the same way as a private insurance company
or subject to the same regulatory oversight.
Effect of Federal Bankruptcy Laws on Security for the Series 2013 Bonds
Bankruptcy proceedings and equity principles may delay or otherwise adversely affect the •
enforcement of Bondholders' rights in the property granted as security for the Series 2013 Bonds.
Furthermore, if the security for the Series 2013 Bonds is inadequate for payment in full of the Series 2013
Bonds, bankruptcy proceedings and equity principles may also limit any attempt by the Trustee to seek
payment from other property of the Company, if any. See "ENFORCEABILITY OF OBLIGATIONS" in
this Official Statement. Also, federal bankruptcy law permits adoption of a reorganization plan, even
though it has not been accepted by the holders of a majority, in the aggregate principal amount of the
Series 2013 Bonds if the Bondholders are provided with the benefit of their original lien or the
"indubitable equivalent." In addition, if the bankruptcy court concludes that the Bondholders have
"adequate protection," it may (i) substitute other security subject to the lien of the Bondholders, and
(ii) subordinate the lien of the Bondholders (a) to claims by persons supplying goods and services to the
Company after bankruptcy and (b) to the administrative expenses of the bankruptcy proceeding. The
bankruptcy court may also have the power to invalidate certain provisions of the Mortgage that make
bankruptcy and related proceedings by the Company an event of default thereunder.
Enforcement of Remedies
The remedies available to the Trustee or the registered owners of the Series 2013 Bonds upon an
Event of Default under the Indenture or the Loan Agreement are in many respects dependent upon
judicial actions which are often subject to discretion and delay. Under existing constitutional and
statutory law and judicial decisions, the remedies provided in the Indenture and the Loan Agreement may
not be readily available or may be limited. The various legal opinions to be delivered concurrently with
the delivery of the Series 2013 Bonds will be qualified as to the enforceability of the various legal
instruments by limitations imposed by the valid exercise of the sovereign powers of the State and the
constitutional powers of the United States of America, bankruptcy, reorganization, insolvency or other
similar laws affecting the rights of creditors generally.
Secondary Market
The Underwriter expects to effect secondary market trading in the Series 2013 Bonds. However,
the Underwriter is not obligated to repurchase any Series 2013 Bonds at the request of the holders thereof
and cannot assure that there will be a continuing secondary market in the Series 2013 Bonds. In addition,
adverse developments, including insufficient cash flow, may have an unfavorable effect upon prices for
the Series 2013 Bonds in the secondary market.
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No Credit Enhancement Facility
There is no letter or credit, bond insurance policy, or other credit enhancement facility securing
the Series 2013 Bonds, nor is there any provision for a credit enhancement facility to be provided to
secure any of the Series 2013 Bonds.
Failure to Provide Ongoing Disclosure
The Company and the Charter School will enter into the Continuing Disclosure Agreement
pursuant to Rule 15c2-12, promulgated by the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as amended ("Rule 15c2-12"). Failure by the Company or the Charter School to
comply with the Continuing Disclosure Agreement and Rule 15e2-12 may adversely affect the liquidity
of the Series 2013 Bonds and their market price in the secondary market. See "CONTINUING
DISCLOSURE" in this Official Statement.
Private School Vouchers
Various proposals offering private school vouchers to families to assist with the cost of private
schools have been considered across the country and in the State, and enacted in several locations. No
such voucher program is currently in place in the State. However, if similar private school voucher
programs are enacted in the future, private schools may become more desirable, due to the availability of
financial assistance. If private school vouchers are provided for in the State, this may lead to the
organization of more private schools and increased competition for the Charter School.
Redemption Prior to Maturity
The Series 2013 Bonds are subject to redemption at the option of the Charter School and in the
event of certain occurrences. See "THE SERIES 2013 BONDS — Redemption of Series 2013 Bonds" in
this Official Statement.
Forward -Looking Statements
This Official Statement contains certain statements such as the Financial Forecast that are
"forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than
statements of historical facts included in this Official Statement, including without limitation statements
that use terminology such as "estimate," "plan," "budget," "expect," "intend," "anticipate," "believe,"
"may," "will," "continue," and similar expressions, are forward-looking statements. These forward-
looking statements include, among other things, the discussions related to the Charter School's operations
and expectations regarding student enrollment, future operations, revenues, capital resources, and
expenditures for capital projects. Although the Company and the Charter School believe that the
assumptions upon which the forward-looking statements contained in this Official Statement are based
are reasonable, any of the assumptions could prove to be inaccurate and, as a result, the forward-looking
statements based on those assumptions also could be incorrect. All phases of the operations of the
Company and the Charter School involve risks and uncertainties, many of which are outside the control of
the Company and the Charter School and any one of which, or a combination of which, could materially
affect the results of the Company's or the Charter School's operations and whether the forward-looking
statements ultimately prove to be correct. Factors that could cause actual results to differ from 'those
expected include, but are not limited to, general economic conditions such as inflation and interest rates,
both nationally and in Minnesota where the Schoolhouse are located; the willingness of the °State to fund
charter school operations at present or increased levels; competitive conditions within the Charter
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School's market, including the acceptance of the education services offered by the Charter School; lower
enrollments than projected; unanticipated expenses; the capabilities of the Charter School's management;
changes in government regulation of the education industry or in the Charter School Act; future claims for
accidents at the Schoolhouse site and the extent of insurance coverage for such claims; and other risks
discussed in this Official Statement.
No representation or assurance can be given that the Company will realize revenues in amounts
sufficient to make the required payments under the Loan Agreement or that the Charter School will
realize revenues in amount sufficient to make the required payments under the Lease. No market study or
demand analysis has been prepared for the Charter School to analyze the existing or future demand for the
Charter School's educational services. The realization of future Revenues is dependent upon, among
other things, the matters described in the foregoing paragraphs and future changes in economic and other
conditions that are unpredictable and cannot be determined at this time. The Underwriter makes no
representation as to the accuracy of the projections contained herein or as to the assumptions on which the
projections are based.
Additional Indebtedness
The Loan Agreement requires the Company to impose certain restrictions on the Charter School
pursuant to the Lease or the Pledge Agreement. The Company has covenanted in the Loan Agreement
that it will not incur any indebtedness other than the Series 2013 Bonds or Additional Bonds issued
pursuant to the Indenture. In the Pledge Agreement, the Charter School has covenanted that it will only
incur Long-Term Indebtedness, Short-Term Indebtedness, or Purchase Money Indebtedness in accordance
with the restrictions imposed by the Loan Agreement and Pledge Agreement. See "SECURITY FOR
THE SERIES 2013 BONDS — Additional Bonds" and "SECURITY FOR THE SERIES 2013 BONDS —
Additional Indebtedness" in this Official Statement.
Summary
The foregoing is intended only as a summary of certain risk factors attendant to an investment in
the Series 2013 Bonds. In order for potential investors to identify risk factors and make an informed
decision, potential investors should be thoroughly familiar with this entire Official Statement and the
appendices hereto.
CHARTER SCHOOLS IN MINNESOTA
[IVIALLOY TO REVIEW]
State Payments
As further described in "APPENDIX C — MINNESOTA LAWS RELATING TO CHARIER
SCHOOLS — Funding for Charter Schools," Minnesota charter schools receive funding from state, local,
and federal sources. The primary source of funding for Minnesota charter schools is State funding. The
various types of State funding distributed to Minnesota charter school can be divided conceptually into
several main categories: (i) general education revenue, (ii) transportation revenue, (iii) special education
revenue, (iv) building lease aid, (v) compensatory aid, and (vi) other state funding.
General Education Revenue. Under the Minnesota Charter Schools Act, General Education
Revenue must be paid to a charter school as though it were a district. The amount is distributed through a
statutory formula. Under the formula, funding is determined by pupil units, or a Minnesota resident pupil
under age 21. The system of pupil units, as defined by Minn. Stat. § 126C.05 subd.1, is applied to a
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charter school by first determining the Average Daily Membership of students in each grade level.
Average Daily Membership is a pupil count that reflects actual student enrollment over the school year. It
is determined by calculating the sum for all pupils of the number of days in the charter school's school
year that each pupil is enrolled ; divided by the number of days the charter school is in session. The
Average Daily Membership is then multiplied by the following factor to determine the pupil units:
(i)a kindergarten pupil is counted as .612 pupil units;
(ii)a pupil in grades 1-3 is counted as 1.115 pupil units;
(iii)a pupil in grades 4-6 is counted as 1.06 pupil units;
(iv)a pupil in grades 7-12 is counted as 1.3 pupil units;
(v) a pupil in postsecondary enrollment programs is counted as 1.3 units.
Under Minn. Stat. § 126C.10, subd. 2, basic revenue for each district or charter school equals the
formula allowance multiplied by the adjusted marginal cost pupil units for the school year. The formula
allowance (for schools that receive transportation aid) is $5,074 for fiscal year 2008, $5,124 for fiscal
years 2009 through 2011, $5,174 for fiscal year 2012, and $5,224 for fiscal year 2013.
A charter school's membership is broken down into the number of students in each category and
the number is multiplied by the relevant pupil units. The State allocates the applicable funding level for
the charter school according to the total number of pupil units.
The formula is defined as the State average general education revenue per pupil unit, plus the
referendum equalization aid allowance in the pupil's district of residence, minus an amount equal to the
product of the formula allowing according to Minn., Stat. § 126C.10, subd. 2, multiplied by .0485,
calculated without basic skills revenue, extended time revenue, alternative teacher compensation revenue,
and transportation sparsity revenue, plus basic skills revenue, extended time revenue, basic alternative
teacher compensation aid according to Minn. Stat. § 126C.10, subd. 345, and transition revenue as though
the charter schools were a school district. The general education revenue for each extended time marginal
cost pupil unit equals $4,378.
Transportation Revenue. Transportation revenue must be paid to a charter. school that provides
transportation. In addition to the general revenue calculated in the manner set forth in the previous
paragraph, a charter school providing transportation services must receive general education aid equal to
the sum of the product of an amount equal to the product of the formula allowance defined under Minn.
Stat. § 126C.10, subd. 2, multiplied by .0485 plus the transportation sparsity allowance for the school
district in which the charter school is located times the adjusted marginal cost pupil units, plus the product
of $223 times the extend time marginal cost pupil units.
Special Education Revenue. Special education revenue must be paid for each child with a
disability. A charter school must be paid special education as though it were a school district. The aid is
equal to the State total special education aid multiplied by the ratio of the district's initial special
education aid to the State total initial special education aid.
Building Lease Aid. Building lease aid may be distributed to a charter school if it the school
finds that it is economically advantageous to rent or lease a building or land for any instructional purposes
and determines that the total operating capital revenue is insufficient for its purposes. The Commissioner
must review the school's request for aid and determine (a) whether the request is reasonable based on
price of current market values, (b) whether the request conforms to applicable State laws and rules, and
(c) the appropriateness of the lease in regards to the circumstances and needs of the charter school.
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The amount of building lease aid per pupil unit served for a charter school for any year shall not
exceed the lesser of:
(i)90 percent of the approved cost; or
(ii)the product of the pupil units served for the current school year times $1,200
See also "APPENDIX C — MINNESOTA LAWS RELATING TO CHARTER SCHOOLS — Funding for
Charter Schools" in this Official Statement.
Compensatory Aid. Compensatory aid is distributed to a charter school based on the number of
students who receive free or reduced lunch. See "APPENDIX C — MINNESOTA LAWS RELATING
TO CHARTER SCHOOLS" in this Official Statement.
Other State Aid. The State also provides aid to charter schools in several other categories,
including First Grade Preparedness and Limited English Proficiency.
Receipt of State Funding. During 2012-2013, a charter school receives 86.4% of its aid in
sixteen installment payments between July and February. No state aid funds are distributed in the months
March through June. The remaining 13.6% holdback of each school's allocated state aid, as adjusted for
fluctuations in pupil enrollment, will be distributed to each school the following July and October. The
holdback is subject to change.
If a charter school ceases operations prior to June 30 of a school year, the Commissioner shall
withhold the estimated State aid owed to the charter school. The charter school board of directors and the
authorizer• must submit to the Commissioner a closure plan and financial information about the charter
school's liabilities and assets. After receiving the closure plan, financial information, an audit of pupil
counts, and documentation of lease expenditures, the Commissioner may release cash withheld and may
continue regular payments if amounts are owed.
The Commissioner may reduce a charter school's State aid under Minn. Stat. §§ 127A.42
or 127A.43 if the charter school board fails to correct any violations. The Commissioner may reduce a
charter school's State aid by an amount not to exceed sixty percent of the charter school's basic revenue
for the period of time that a violation of law occurs.
A charter school is eligible to receive other aids, grants, and revenue as if it were a school district.
A charter school, however, may not receive aid, a grant, or revenue if a levy is required to obtain the
money, or if the aid, grant, or revenue replaces levy revenue that is not general education revenue. A
charter school may receive money from any source for capital facilities needs. The charter school,
however, may not use money received from the State to purchase land or buildings. The board of
directors of a charter school may not levy taxes or issue bonds to receive funds.
Tort Liability. Under Minnesota law, a charter school is subject to the same limits on tort
liability as a traditional public school district or other municipality.
See "APPENDIX C — MINNESOTA LAWS RELATING TO CHARTER SCHOOLS" in this
Official Statement for a more complete discussion of the Minnesota laws governing charter schools.
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AUDITED FINANCIAL STATEMENTS OF THE CHARTER SCHOOL
The audited financial statements for the Charter School as of and for the Fiscal Years ended
June 30, 2012 and 2011 (the "Audited Financial Statements"), are included in APPENDIX E to this
Official Statement. The Audited Financial Statements were audited by Malloy, Montague, Kamowski,
Radosevich & Co., P.A., Minneapolis, Minnesota (the "Auditor"), as stated in their report thereon. The
financial statements of the Company are not included in this Official Statement because the Company
does not have significant financial resources and is not anticipated to have significant assets other than the
Schoolhouse. It is expected that the financial statements of the Company will be included in a
consolidated schedule to the Charter School in the future. See "APPENDIX E - AUDITED FINANCIAL
STATEMENTS OF THE CHARTER SCHOOL FOR THE FISCAL YEARS ENDED JUNE 30, 2012
AND 2011" in this Official Statement.
UNAUDITED FINANCIAL STATEMENTS OF THE CHARTER SCHOOL
APPENDIX F to this Official Statement contains the unaudited balance sheets and income
statements of the Charter School as of and for the twelve-month period ended June 30, 2013. . The
unaudited financial statements contained in APPENDIX F have been prepared by the Charter School and
have not been reviewed, audited, or examined by any independent accounting finn. See "APPENDIX F —
UNAUDITED INTERIM FINANCIAL STATEMENTS OF THE CHARTER SCHOOL FOR THE
TWELVE-MONTH PERIOD ENDED JUNE 30, 2013" in this Official Statement.
THE FINANCIAL FORECAST
The Charter School has prepared the Financial Forecast and related assumptions included in
APPENDIX D to this Official Statement. The Financial Forecast is based on the assumptions made by
management of the Charter School as to, among other things, future enrollment levels, future costs and
future revenues. The Financial Forecast is for the five fiscal years of the Charter School ending
June 30, 2014 through June 30, 2018. The Financial Forecast (including the notes thereto) should be
read in its entirety.
The Financial Forecast is based on various assumptions that represent only the beliefs of the
Charter School's management as to the most probable future events and are subject to material
uncertainties. No assurances can be given that the Charter School will, in fact, be able to generate
sufficient revenue and attain the enrollment levels as stated in the Financial Forecast, and variations from
the Financial Forecast for each of such matters should be expected to occur. Accordingly, the operations
and financial condition of the Charter School in the future will inevitably vary from those set forth in the
Financial Forecast, and such variance may be material and adverse. See "BONDHOLDERS' RISKS —
Financial Forecast" in this Official Statement.
The Charter School has not assumed any responsibility after the issuance of the Series 2013
Bonds to update the Financial Forecast or to provide any financial forecasts or projections in the future.
The Underwriter and the Issuer have made no independent inquiry as to the assumptions on which the
Financial Forecast is based and assume no responsibility therefor. See "APPENDIX D — FINANCIAL
FORECAST" in this OfficialStatement.
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TAX MATTERS
Tax Exemption
In the opinion of Kennedy & Graven, Chartered, Saint Paul, Minnesota, as Bond Counsel to the
Issuer, under existing laws, regulations, rulings, and decisions, and assuming continuing compliance by
the Company and the Charter School with covenants made to satisfy requirements of the Internal Revenue
Code of 1986, as amended (the "Code"), interest on the Series 2013A Bonds is excluded from gross
income for federal income tax purposes and, to the same extent, is excluded from net income of
individuals, estates, and trusts for Minnesota income tax purposes. Interest on the Series 2013A Bonds is
not an item of tax preference for purposes of the computation of the alternative minimum tax imposed on
individuals and corporations under federal law and on individuals, estates, and trusts under Minnesota
law. Interest on the Series 2013A Bonds is included in adjusted current earnings of corporations in
determining alternative minimum taxable income for purposes of the federal alternative minimum tax
imposed on corporations. Interest on the Series 2013A Bonds is subject to the Minnesota franchise tax
imposed on corporation, including financial institutions. Interest on the Series 2013B Bonds is taxable as
ordinary income for federal income tax purposes.
In expressing its opinion, Bond Counsel will rely on an opinion of Lindquist & Vennum PLLP,
Minneapolis, Minnesota, as counsel to the Charter School and the Company, as to those matters with
respect to which their opinion is rendered.
The Code establishes certain requirements (the "Federal Tax Requirements") that must be
satisfied subsequent to the issuance of the Series 2013A Bonds in order that, for federal income tax
purposes, interest on the Series 2013A Bonds will continue to be excluded from gross income for federal
income tax purposes. The Federal Tax Requirements include, but are not limited to, requirements relating
to the expenditure of proceeds of the Series 2013A Bonds, requirements relating to the operation of the
facilities financed by the Series 2013A Bonds, restrictions on the investment of proceeds of the
Series 2013A Bonds prior to expenditure, and the requirement that certain earnings on the "gross
proceeds" of the Series 2013A Bonds be paid to the federal government. Noncompliance with the
Federal Tax Requirements may cause interest on the Series 2013A Bonds to become subject to federal
and Minnesota income taxation retroactive to their date of issue irrespective of the date on which such
noncompliance occurs or is ascertained. In expressing its opinion, Bond Counsel will assume compliance
by the Issuer, the Company, the Charter School, and the Trustee with the tax covenants contained in the
Loan Agreement, the Tax Regulatory Agreement, and the Indenture.
Other Federal Tax Considerations
Interest on the Series 2013A Bonds may be included in the income of a foreign company for
purposes of the branch profits tax imposed by Section 884 of the Code. In the case of an insurance
company subject to the tax imposed by Section 831 of the Code, the amount which otherwise would be
taken into account as losses incurred under Section 832(b)(5) of the Code must be reduced by an amount
equal to fifteen percent of the interest to be paid on the Series 2013A Bonds that is received or accrued
during the taxable year. Under the circumstances described in Section 86 of the Code, recipients of
certain social security and railroad retirement benefits may be required to take into account interest on the
Series 2013A Bonds in determining the taxability of such benefits. Passive investment income, including
interest on the Series 2013A Bonds, may be subject to federal income taxation under Section 1375 of the
Code for an S corporation that has Subchapter C earnings and profits at the close of the taxable year if
greater than twenty-five percent of its gross receipts is passive investment income. The Series 2013A
Bonds have not been designated by the Issuer as "qualified tax-exempt obligations" within the meaning of
Section 265(b)(3) of the Code.
36
20810983v2 0711012013
Bond Premium
The Series 2013A Bonds with a stated maturity of July 1, 20, 20_ and 20_ (the "Premium
Bonds"), have been sold to the public at an amount in excess of the stated redemption price at maturity.
Such excess of the purchase price of such Premium Bonds over the stated redemption price at maturity
constitutes original issue premium with respect to such Premium Bonds. A purchaser of a Premium Bond
must amortize any original issue premium over the term of such Premium Bond using constant yield
principles, based on the purchaser's yield to maturity. As *original issue premium is amortized, the
purchaser's basis in such Premium Bond is reduced by a corresponding amount, resulting in an increase
in the gain (or a decrease in the loss) to be recognized for federal income tax purposes upon a sale or
disposition of such Premium Bond prior to its maturity. Even though the purchaser's basis is reduced, no
federal income tax deduction is allowed. Purchasers of any Premium Bonds at a premium, whether at the
time of initial issuance or subsequent thereto, should consult with their own tax advisors with respect to
the determination and treatment of premium for federal income tax purposes and With respect to state and
local tax consequences of owning such Premium Bonds.
Holders of Premium Bonds should consult their tax advisors with respect to computation and
accrual of original issue discount and with respect to the state and local tax consequences of owning
Discount Bonds and Premium Bonds.
The Series 2013B Bonds
Interest to be paid on the Series 2013B Bonds is includable in gross income of the recipient for
federal income tax purposes and in taxable net income of individuals, estates and trusts for Minnesota
income tax purposes, and is subject to Minnesota franchise taxes imposed on corporations and financial
institutions.
Legislative Proposals
Bond Counsel's opinion is given as of its date and Bond Counsel assumes no obligation to
update, revise, or supplement such opinion to reflect any changes in facts or circumstances or any changes
in law that may hereafter occur. Proposals are regularly introduced in both the United States House of
Representatives and the United States Senate that, if enacted, could alter or affect the tax-exempt status of
municipal bonds. For example, legislation has been proposed by President Obama that would, among
other things, limit the amount of exclusions (including tax-exempt interest) or deductions that certain
higher-income taxpayers could use to reduce their tax liability. The likelihood of adoption of this or any
other such legislative proposal relating to tax-exempt bonds cannot be reliably predicted. If enacted into
law, current or future proposals may have a prospective or retroactive effect and could affect the value or
marketability of tax-exempt bonds (including the Series 2013A Bonds). Prospective purchasers of the
Series 2013 Bonds should consult their own tax advisors regarding the impact of any such change in law.
The above is not a comprehensive list of all federal tax consequences which may arise from the
receipt of interest on the Series 2013A Bonds. The ,receipt of interest on the Series 2013A Bonds may
otherwise affect the federal or state income tax liability of the recipient based on the particular taxes to
which the recipient is subject and the particular tax status of other items or deductions. Bond Counsel
expresses no opinion regarding any such consequences. All prospective purchasers of the Series 2013
Bonds are encouraged to consult with their personal tax advisors as to the tax consequences of or tax
considerations for, purchasing or holding the Series 2013 Bonds.
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UNDERWRITING
The Series 2013 Bonds will be purchased by B.C. Ziegler and Company, Chicago, Illinois (the
"Underwriter"). The Underwriter has agreed to purchase the Series 2013A Bonds for a purchase price of
, which amount represents the principal amount of the Series 2013A Bonds
($4,790,000*), less the Underwriter's discount of $ plus Original Issue Premium of
. The Underwriter has agreed to purchase the Series 2013B Bonds for a purchase price of
, which amount represents the principal amount of the Series 2013B Bonds ($292,000*),
less the Underwriter's discount of $ . The Underwriter is purchasing the Series 2013 Bonds
pursuant to the terms of a Bond Purchase Agreement (the "Bond Purchase Agreement") between the
Issuer, the Charter School, the Company and the Underwriter. The Bond Purchase Agreement also
provides that the Company will pay miscellaneous out-of-pocket expenses of the Underwriter. The Bond
Purchase Agreement provides that the Underwriter will purchase all Series 2013 Bonds if any are
purchased, and that the obligation to make such purchase is subject to certain terms and conditions set
forth in the Bond Purchase Agreement, the approval of certain legal matters by counsel, and certain other
conditions. Expenses associated with the issuance of the Series 2013 Bonds are being paid by the
Company from proceeds of the Series 2013 Bonds. The right of the Underwriter .to receive compensation
in connection with the Series 2013 Bonds is contingent upon the actual sale and delivery of the
Series 2013 Bonds. The initial offering prices set forth on the inside front cover hereof may be changed
from time to time by the Underwriter. The Underwriter reserves the right to join with dealers and other
investment banking firms in offering the Series 2013 Bonds to the public. The Charter School has agreed
under the Bond Purchase Agreement to indemnify the Underwriter and the Issuer against certain
liabilities, including certain liabilities under federal and state securities laws.
CONTINUING DISCLOSURE
Rule 15c2-12, promulgated by the Securities and Exchange Commission under the Securities
Exchange Act of 1934, imposes continuing disclosure obligations on the issuers of certain state and
municipal securities to permit participating underwriters to offer and sell the issuer's securities. In order
to comply with the requirements of Rule 15c2-12, the Company, the Charter School, and the Trustee have
entered into a Continuing Disclosure Agreement, dated as of July 1, 2013. If an Affiliated Building
Company or Exempt Organization designated by the Charter School assumes the Company's obligations
pursuant to the Option and the Loan Agreement, the Affiliated Building Company or Exempt
Organization will become the obligated party with respect to the Series 2013 Bonds. See "APPENDIX.K
- FORM OF CONTINUING DISCLOSURE AGREEMENT" in this Official Statement.
The Issuer does not have any obligation with respect to the Continuing Disclosure Agreement
because the Issuer is not an "obligated party" under the terms of Rule 15c2-12. The Issuer will not
Monitor the compliance by the Company or the Charter School with the terms of the Continuing
Disclosure Agreement.
ENFORCEABILITY OF OBLIGATIONS
On the date of delivery of the Series 2013 Bonds, Kennedy & Graven, Chartered, Saint Paul,
Minnesota, Bond Counsel to the Issuer, will deliver its opinion, dated the delivery date, that the
Series 2013 Bonds, the Loan Agreement, the Tax Regulatory Agreement, the Bond Purchase Agreement,
and the Indenture are valid and legally binding on the Issuer, enforceable against the Issuer in accordance
with their respective terms. Lindquist & Vennum PLLP, Minneapolis, Minnesota, as counsel to the
Company, will deliver its *opinion that the Loan Agreement, the Tax Regulatory Agreement, the
*Prelbninaly; subject to change. 38
20810983v2 07/10/2013
Mortgage, the Lease, the Pledge Agreement, the Bond Purchase Agreement, the Continuing Disclosure
Agreement, the Disbursing Agreement, and the SNDA are valid and legally binding agreements of the
Company, each enforceable in accordance with its respective terms. Lindquist & Vennum PLLP,
Minneapolis, Minnesota, as counsel to the Charter School, will deliver its opinion that the Lease, the
Bond Purchase Agreement, the Continuing Disclosure Agreement, the Tax Regulatory Agreement, the
Account Control Agreement, and the Pledge Agreement are valid and legally binding agreements of the
Charter School, each enforceable in accordance with its respective terms. The foregoing opinions will be
generally qualified to the extent that the enforceability of the respective instruments may be limited by
laws, decisions and equitable principles affecting remedies and by bankruptcy or insolvency or other
laws, decisions and equitable principles affecting creditors' rights generally. While the Series 2013
Bonds are secured or payable pursuant to the Indenture, the Loan Agreement, the Mortgage, the Lease,
and the Pledge Agreement, the practical realization of payment from any security will depend upon the
exercise of various remedies specified in the respective instruments. These and other remedies are
dependent in many respects upon judicial action, which is subject to discretion and delay. Accordingly,
the remedies specified in the above documents may not be readily available or may be limited.
LEGAL MATTERS
Legal matters incident to the issuance and sale of the Series 2013 Bonds and -with regard to the
tax-exempt status of interest on the Series 2013 Bonds under existing laws are subject to the legal opinion
of Kennedy & Graven, Chartered, Saint Paul, Minnesota, as Bond Counsel. Certain legal matters in
connection with the Series 2013 Bonds will be passed upon for the Underwriter by Fox Rothschild LLP,
Philadelphia, Pennsylvania and for the Charter School and the Company by Lindquist & Vennum PLLP,
Minneapolis, Minnesota.
RELATIONSHIPS AMONG THE PARTIES
[TO COME]
ABSENCE OF LITIGATION
Issuer
To the actual knowledge of the Issuer, there is no litigation pending against the Issuer seeking to
restrain or enjoin the issuance or delivery of the Series 2013 Bonds, questioning or affecting the legality
of the Series 2013 Bonds or the proceedings and authority under which the Series 2013 Bonds are to be
issued or questioning the validity or enforceability of the Indenture, the Bond Purchase Agreement, the
Loan Agreement, the Disbursing Agreement, or the Mortgage.
Company
In connection with the issuance of the Series 2013 Bonds, the Company has represented that there
is no litigation pending, seeking to restrain or enjoin the issuance or delivery of the Series 2013 Bonds or
questioning or affecting the legality of the Series 2013 Bonds or the proceedings and authority under
which the Series 2013 Bonds are to be issued. There is no litigation pending which in any manner
questions the undertaking of the financing by the Company or the validity or enforceability of the
Indenture, the Loan Agreement, the Bond Purchase Agreement, the Tax Regulatmy Agreement, the
Continuing Disclosure Agreement, the Account Control Agreement, the Lease, the Pledge Agreement, the
Disbursing Agreement, the Mortgage, or the Option.
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Charter School
In connection with the issuance of the Series 2013 Bonds, the Charter School has represented that
there is no litigation pending, seeking to restrain or enjoin the issuance or delivery of the Series 2013
Bonds or questioning or affecting the legality of the Series 2013 Bonds or the proceedings and authority
under which the Series 2013 Bonds are to be issued. There is no litigation pending which in any manner
questions the undertaking of the financing by the Charter School or the validity or enforceability of the
Bond Purchase Agreement, the Tax Regulatory Agreement, the Continuing Disclosure Agreement, the
Account Control Agreement, the Lease, the Pledge Agreement, the Mortgage, or the Option.
THE TRUSTEE
The Issuer has appointed U.S. Bank, National Association, a national banking association
organized under the laws of the United States, to serve as Trustee. The Trustee is a national banking
association organized and existing under the laws of the United States of America, having all of the
powers of a bank, including fiduciary powers, and is a member of the Federal Deposit Insurance
Corporation and the Federal Reserve System. The Trustee is to carry out those duties assignable to it
under the Indenture. Except for the contents of this section, the Trustee has not reviewed or participated
in the preparation of this Official Statement and assumes no responsibility for the nature, contents,
accuracy, fairness or completeness of the information set forth in this Official Statement or for the recitals
contained in the Bond Indenture or the Series 2013 Bonds, or for the validity, sufficiency, or legal effect
of any of such documents.
Furthermore, the Trustee has no oversight responsibility, and is not accountable, for the use or
application by the Issuer of any of the Series 2013 Bonds authenticated or delivered pursuant to the
Indenture or for the use or application of the proceeds of such Series 2013 Bonds by the Issuer. The
Trustee has not evaluated the risks, benefits, or propriety of any investment in the Series 2013 Bonds and
makes no representation, and has reached no conclusions, regarding the value or condition of any assets
or revenues pledged or assigned as security for the Series 2013 Bonds, or the investment quality of the
Series 2013 Bonds, about all of which the Trustee expresses no opinion and expressly disclaims the
expertise to evaluate.
MISCELLANEOUS
The foregoing does not purport to be comprehensive or definitive, and all references to any
document herein are qualified in their entirety by reference to each such document. All references to the
Series 2013 Bonds are qualified in their entirety by reference to the forms thereof and the information
with respect thereto included in the aforesaid documents. Copies of these documents are available for
inspection during the period of the offering at the offices of the Underwriter in Minneapolis, Minnesota
and thereafter at the principal corporate trust office of the Trustee. In addition to certain information
provided herein, all information contained in the Appendices A, B, C, D, E, and F, along with information
regarding the Financial Forecast and projected debt service coverage under the caption "SUMMARY
INFORMATION" has been provided by the Charter School or Company or been derived from
information ptovided by the_ Charter School or Company. The Underwriter makes no representations or
warranties as to the accuracy or completeness of the information in any of the Appendices.
The Company, the Charter School, and the Issuer have authorized and approved. the use and
distribution of thiS Official Statement, although the Issuer has not reviewed or approved any matters
herein and assumes no responsibility for the accuracy or completeness of the information herein except
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for the information under the caption "THE ISSUER" and "ABSENCE OF LITIGATION — Issuer" in
this Official Statement.
Registration of Series 2013 Bonds
Registration or qualification of the offer and sale of the Series 2013 Bonds (as distinguished from
registration of the ownership of the Series 2013 Bonds) is not required under the federal Securities Act
of 1933, as amended. THE COMPANY ASSUMES NO RESPONSIBILITY FOR QUALIFICATION
OR REGISTRATION OF THE SERIES 2013 BONDS FOR SALE UNDER THE SECURITIES LAWS
OF ANY JURISDICTION IN WHICH THE SERIES 2013 BONDS MAY BE SOLD, ASSIGNED,
PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED.
Interest of Certain Persons Named in this Official Statement
The fees to be paid to Bond Counsel, counsel to the Company, counsel to the Charter School,
counsel to the Underwriter, the Trustee, and the Underwriter are contingent upon the sale and delivery of
the Series 2013 Bonds.
Official Statement Certification of the Company and the Charter School
The preparation of this Official Statement and its distribution has been authorized by the
Company and the Charter School. This Official Statement has been "deemed final" by the Charter School
and the Company in compliance with the provisions of Rule 15c2-12. This Official Statement is not to be
construed as an agreement or contract between the Company or the Charter School and any purchaser,
owner or holder of any Series 2013 Bond.
(The remainder of this page is intentionally left blank.)
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Member introduced the following resolution and moved
its adoption:
RESOLUTION NO.
RESOLUTION AUTHORIZING THE ISSUANCE OF REVENUE BONDS FOR
ODYSSEY ACADEMY PROJECT UNDER MINNESOTA STATUTES, SECTIONS
469.152 THROUGH 469.1655 AND APPROVING RELATED DOCUMENTS
WHEREAS, City of Brooklyn Center, Minnesota (the "City") is duly organized and
existing under the Constitution and laws of the State of Minnesota; and .
WHEREAS, under the Minnesota Municipal Industrial Development Act, Minnesota
Statutes, Sections 469.152-469.1655, as amended (the "Act"), each city of the State of Minnesota,
including the City, is authorized to issue revenue bonds to finance, in whole or in part, the costs of the
acquisition, construction, improvement, or extension of revenue producing enterprises, whether or not
operated for profit; and
WHEREAS, ASG Brooklyn Center, a Minnesota nonprofit corporation (the
"Borrower"), has represented to the City that it is proposing to assist Odyssey Academy, a Minnesota
nonprofit corporation (the "School"), in the acquisition, renovation, construction and equipping of a
school building located at 6201 Noble Avenue North in the City, for use as a public charter schoolhouse
for kindergarten through grade eight (the "Schoolhouse"); and
WHEREAS, the Borrower has requested that the City issue one or more series of
revenue bonds to be designated Charter School Lease Revenue Bonds (Odyssey Academy Project) (the
"Bonds") and loan the proceeds derived from the sale of the Bonds to the Borrower, pursuant to the terms
of a Loan Agreement, dated on or after August 1, 2013 (the "Loan Agreement"), between the City and the
Borrower to finance costs related to: (i) the acquisition, renovation, construction and equipping of the
Schoolhouse (the "Project"); (ii) funding certain reserve funds; (iii) the payment of a portion of the
interest on the Bonds; and (iv) the payment of the costs of issuing the Bonds; and
WHEREAS, the Schoolhouse will be owned by the Borrower and will be leased to
and operated by the School, and an operating public charter school; and
WHEREAS, the revenue bonds proposed to be issued by the City to finance the
Project will constitute revenue obligations secured solely by: (i) the revenues derived from the Loan
Agreement; (ii) a pledge and assignment of all School revenues, including money due to the School from
the State of Minnesota Lease Aid Payment Program (the "Program"); (iii) an agreement to pay all money
due to the School from the Program to a dedicated account subject to a monthly sweep to the trustee
accounts for the benefit of the holders of the revenue bonds; (iv) other revenues pledged to or otherwise
received by the Borrower, except for those revenues necessary for ordinary operational expenses and
required under Minnesota law; (v) a debt service reserve fund to be held by a trustee for the benefit of the
holders of the revenue bonds; (vi) a first mortgage and security agreement granted by the Borrower with
respect to the Project; and (vii) other security provided or arranged by the Borrower or the School; and
RESOLUTION NO.
WHEREAS, under the terms of Section 147(f) of the Internal Revenue Code of 1986,
as amended (the "Code"), the revenue bonds may not be issued as tax-exempt bonds unless the City
Council of the City approves the revenue bonds after a public hearing following publication of a notice
published in accordance with the requirements of Section 147(f) of the Code and Treasury Regulations,
Section 5f.103-2; and
WHEREAS, following the publication of a notice (the "Public Notice") of a public
hearing in the Brooklyn Center Sun-Post, the official newspaper of the City on July 8, 2013, at least 14
days before the regularly-scheduled meeting of the City Council of the City on July 22, 2013, the City
Council conducted a public hearing at which a reasonable opportunity was provided for interested
individuals to express their views on the proposal to undertake and finance the Project and the proposed
issuance of the revenue bonds; and
WHEREAS, the Public Notice included a general description of the Project, the
maximum aggregate face amount of the revenue bonds to be issued with respect to the Project, the
identity of the initial owner, operator, or manager of the Project, the location of the Project by street
address, and a statement that a draft copy of the proposed application to Minnesota Department of
Employment and Economic Development ("DEED"), together with all attachments and exhibits, would
be available for inspection at the offices of the City; and
WHEREAS, the City Council conducted a public hearing this same date with respect
to the proposal to undertake and finance the Project and the issuance of the Bonds, as requested by the
Borrower;
NOW, THEREFORE, BE IT RESOLVED by the City Council (the "Council") of the
City of Brooklyn Center, Minnesota (the "City"), as follows:
1.For the purposes set forth above, there is hereby authorized the issuance, sale, and
delivery of one or more series of revenue bonds to be designated Charter School Lease Revenue Bonds
(Odyssey Academy Project), Series 2013 (the "Series 2013 Bonds" or the "Bonds"), of the City in an
original aggregate principal amount not to exceed $5,300,000 subject to the approval of the Project by
DEED, as required by the Act.
It is hereby found and determined that the Project furthers the purposes set forth in the Act and
the Project constitutes a "project" within the meaning of Section 469.153, subdivision 2(b) of the Act.
2.If the Series 2013 Bonds are issued in more than one series, the separate series shall be
separately designated in such manner as is deemed appropriate by the Mayor and City Clerk (collectively,
the "City Officials"), in their discretion. The Series 2013 Bonds shall be issued under the terms of an
Indenture of Trust, dated on or after August 1, 2013 (the "Indenture"), between the City and U.S. Bank
National Association, as trustee (the "Trustee"). The Series 2013 Bonds shall bear interest at fixed rates
established by the terms of the Indenture. The Series 2013 Bonds -shall be designated, shall be numbered,
shall be dated, shall mature, shall be subject to redemption prior to maturity, shall be in such form, and
shall have such other terms, details, and provisions as are prescribed in the Indenture, in the form now on
file with the City, with the amendments referenced herein. The City hereby authorizes the Series 2013
Bonds to be issued as "tax-exempt bonds" the interest on which is excluded from gross income for federal
and State of Minnesota income tax purposes. Any separate series of Series 2013 Bonds may be issued as
"taxable bonds" if deemed necessary and appropriate by the City Officials and bond counsel.
RESOLUTION NO.
All of the provisions of the Series 2013 Bonds, when executed as authorized herein, shall be
deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein
and shall be in full force and effect from the date of execution and delivery thereof. The Series 2013
Bonds shall be substantially in the forms in the Indenture on file with the City, which forms are hereby
approved, with such necessary and appropriate variations, omissions, and insertions (including changes to
the aggregate principal amount of each series of Series 2013 Bonds, the stated maturities of each series of
Series 2013 Bonds, the principal amount of Bonds maturing on each maturity date, the interest rates on
the Series 2013 Bonds, and the terms of redemption of the Series 2013 Bonds) as the City Officials, in
their discretion, shall determine. The execution of the Series 2013 Bonds with the manual or facsimile
signatures of the City Officials and the delivery of the Series 2013 Bonds by the City shall be conclusive
evidence of such determination.
3.The Series 2013 Bonds shall be special limited obligations of the City payable solely
from the revenues provided by the Borrower pursuant to the Loan Agreement and from the revenues and
security pledged, assigned, and granted pursuant to the following documents: (i) the Mortgage, Security
Agreement and Assignment of Rents, to be dated on or after August 1, 2013 (the "Mortgage"), from the
Borrower, as mortgagor, to the Trustee, as mortgagee; (ii) the Assignment of Lease, dated on or after
August 1, 2013 (the "Assignment"), from the Borrower, as assignor, to the Trustee, as assignee; and (iii)
the Pledge and Covenant Agreement, dated on or after August 1, 2013 (the "Pledge Agreement"), from
the School to the Trustee. The proceeds of the Bonds will be disbursed pursuant to a Disbursing
Agreement, dated on or after August 1, 2013 (the "Disbursing Agreement"), among the Borrower, the
Trustee, and a disbursing agent to be selected by the Borrower, and will be subject to the provisions of a
Tax Regulatory Agreement, dated on or after August 1, 2013 (the "Tax Regulatory Agreement"), among
the Borrower, the School and the Trustee. The City Council of the City hereby authorizes and directs the
City Officials to execute and deliver the Indenture to the Trustee, and hereby authorizes and directs the
execution of the Series 2013 Bonds in accordance with the terms of the Indenture, and hereby provides
that the Indenture shall provide the terms and conditions, covenants, rights, obligations, duties, and
agreements of the owners of the Series 2013 Bonds, the City, and the Trustee as set forth therein.
All of the provisions of the Indenture, when executed as authorized herein, shall be deemed to be
a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in
full force and effect from the date of execution and delivery thereof. The Indenture shall be substantially
in the form on file with the City, which is hereby approved, with such necessary and appropriate
variations, omissions, and insertions as do not materially change the substance thereof, or as the City
Officials, in their discretion, shall determine, and the execution thereof by the City Officials shall be
conclusive evidence of such determination.
4.The loan repayments to be made by the Borrower under the Loan Agreement are fixed to
produce revenues sufficient to provide for the prompt payment of principal of, premium, if any, and
interest on the Bonds issued under this resolution when due, and the Loan Agreement also provides that
the Borrower is required to pay all expenses of the operation and maintenance of the Project, including,
but without limitation, adequate insurance thereon and insurance against all liability for injury to persons
or property arising from the operation thereof, and all lawfully imposed taxes and special assessments
levied upon or with respect to the Project and payable during the term of the Loan Agreement.
RESOLUTION NO.
5.As provided in the Loan Agreement, the Bonds shall not be payable from nor charged
upon any funds other than the revenue pledged to their payment, nor shall the City be subject to any
liability thereon, except as otherwise provided in this paragraph. No holder of the Bonds shall ever have
the right to compel any exercise by the City of any taxing powers to pay the Bonds or the interest or
premium thereon, or to enforce payment thereof against any property of the City except the interests of
the City in the Loan Agreement and the revenues and assets thereunder, which will be assigned to the
Trustee under the terms of the Indenture. The Bonds shall recite that the Bonds are issued pursuant to the
Act, and that the Bonds, including interest and premium, if any, thereon, are payable solely from the
revenues and assets pledged to the payment thereof, and the Bonds shall not constitute a debt of the City
within the meaning of any constitutional, statutory or charter limitations.
6.The City Officials are hereby authorized and directed to execute and deliver the Loan
Agreement and a Bond Purchase Agreement, dated on or after August 1, 2013 (the "Bond Purchase
Agreement" and, together with the Loan Agreement, the Indenture, and the documents listed in Section 2,
the "Financing Documents") among the City, B.C. Ziegler (the "Underwriter"), the Borrower, and the
School. All of the provisions of the Loan Agreement and the Bond Purchase Agreement, when executed
and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the same
extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution
and delivery thereof. The Loan Agreement and the Bond Purchase Agreement shall be substantially in
the forms on file with the City which are hereby approved, with such omissions and insertions as do not
materially change the substance thereof, or as the City Officials, in their discretion, shall determine, and
the execution of the Loan Agreement and the Bond Purchase Agreement by the City Officials shall be
conclusive evidence of such determination.
7.The City hereby approves the Financing Documents in substantially the forms on file
with the City.
8.The City Officials and other officers, employees, and agents of the City are hereby
authorized to execute and deliver, on behalf of the City, the Financing Documents to which it is a party
and such other documents as are necessary or appropriate in connection with the issuance, sale, and
delivery of the Series 2013 Bonds, including various certificates of the City, the Information Return for
Tax-Exempt Private Activity Bond Issues, Form 8038, a certificate as to arbitrage and rebate, and similar
documents. The City hereby approves the execution and delivery by the Trustee of the Indenture and all
other instruments, certificates, and documents prepared in conjunction with the issuance of the Series
2013 Bonds that require execution by the Trustee. The Trustee is hereby appointed as Bond Registrar and
paying agent with respect to the Series 2013 Bonds. The City hereby authorizes Kennedy & Graven,
Chartered, as bond counsel of the City, to prepare, execute, and deliver its approving legal opinion with
respect to the Bonds.
9. The City has not participated in the preparation of the Preliminary Official Statement or
the Official Statement relating to the offer and sale of the Series 2013 Bonds (collectively, the "Official
Statement"), and has made no independent investigation with respect to the information contained therein
(other than with respect to information provided under the captions "THE ISSUER" and "ABSENCE OF
LITIGATION — Issuer," as it relates to the City), including the appendices thereto, and the City assumes
no responsibility for the sufficiency, accuracy, or completeness of such information. Subject to the
foregoing, the City hereby consents to the distribution and the use by the Underwriter of the Official
Statement in connection with the offer and sale of the Series 2013 Bonds.
RESOLUTION NO.
The Official Statement is the sole material cOnsented to by the City for use in connection with the offer
and sale of the Series 2013 Bonds. The City hereby approves the Continuing Disclosure Agreement,
dated on or after August 1, 2013 (the "Continuing Disclosure Agreement"), among the Borrower, the
School, and the Trustee, in the form now on file with the City, and hereby authorizes the Trustee to
execute and deliver the Continuing Disclosure Agreement.
10, Except as otherwise provided in this resolution, all rights, powers, and privileges
conferred and duties and liabilities imposed upon the City or the City Council by the provisions of this
resolution or of the aforementioned documents shall be exercised or performed by the City or by such
members of the City Council, or such officers, board, body, or agency thereof as may be required or
authorized by law to exercise such powers and to perform such duties.
No covenant, stipulation, obligation, or agreement herein contained or contained in the
aforementioned documents shall be deemed to be a covenant, stipulation, obligation, or agreement of any
member of the City Council the City, or any officer, agent, or employee of the City in that person's
individual capacity, and neither the City Council of the City nor any officer or employee executing the
Series 2013 Bonds shall be liable personally on the Series 2013 Bonds or be subject to any personal
liability or accountability by reason of the issuance thereof.
No provision, covenant, or agreement contained in the aforementioned documents, the Series
2013 Bonds or in any other document relating to the Series 2013 Bonds, and no obligation therein or
herein imposed upon the City or the breach thereof, shall constitute or give rise to any pecuniary liability
of the City or any charge upon its general credit or taxing powers. In making the agreements, provisions,
covenants, and representations set forth in such documents, the City has not obligated itself to pay or
remit any funds or revenues, other than funds and revenues derived from the Loan Agreement which are
to be applied to the payment of the Series 2013 Bonds, as provided therein and in the Indenture.
11.Except as herein otherwise expressly provided, nothing in this resolution or in the
aforementioned documents expressed or implied, is intended or shall be construed to confer upon any
person or firm or corporation, other than the City or any holder of the Series 2013 Bonds issued under the
provisions of this resolution, any right, remedy, or claim, legal or equitable, under and by reason of this
resolution or any provisions hereof, this resolution, the aforementioned documents and all of their
provisions being intended to be and being for the sole and exclusive benefit of the City and any holder
from time to time of the Series 2013 Bonds issued under the provisions of this resolution.
12.In case any one or more of the provisions of this resolution, other than the provisions
contained in Section 4 hereof, or of the aforementioned documents, or of the Series 2013 Bonds issued
hereunder shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect
any other provision of this resolution, or of the aforementioned documents, or of the Series 2013 Bonds,
but this resolution, the aforementioned documents, and the Series 2013 Bonds shall be construed and
endorsed as if such illegal or invalid provisions had not been contained therein.
RESOLUTION NO.
13, The Series 2013 Bonds, when executed and delivered, shall contain a recital that they are
issued pursuant to the Act, and such recital shall be conclusive evidence of the validity of the Series 2013
Bonds and the regularity of the issuance thereof; and that all acts, conditions, and things required by the
laws of the State of Minnesota relating to the adoption of this resolution, to the issuance of the Series
2013 Bonds, and to the execution of the aforementioned documents to happen, exist, and be performed
precedent to the execution of the aforementioned documents have happened, exist, and have been
performed as so required by law.
14.The officers of the City, bond counsel, other attorneys, engineers, and other agents or
employees of the City are hereby authorized to do all acts and things required of them by or in connection
with this resolution, the aforementioned documents, and the Series 2013 Bonds for the full, punctual, and
complete performance of all the terms, covenants, and agreements contained in the Series 2013 Bonds,
the aforementioned documents, • and this resolution. In the event that for any reason any of the City
Officials is unable to carry out the execution of any of the documents or other acts provided herein, such
documents may be executed and such actions may be taken by any official or employee of the City or the
City delegated the duties of any such City Official with the same force and effect as if such documents
were executed and delivered by such City Official.
15.The Borrower has agreed and it is hereby determined that any and all costs incurred by
the City in connection with the financing of the Project will be paid by the Borrower. It is understood and
agreed that the Borrower shall indemnify, defend and hold harmless the City against all liabilities, losses,
damages, costs and expenses (including attorney's fees and expenses incurred by the City) arising with
respect to the Project or the Bonds, as provided for and agreed to by and between the Borrower and the
City in the Loan Agreement.
16. This resolution shall be in full force and effect from and after its passage.
July 22, 2013
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. 9a
COUNCLIL ITEM YE moRANDum
DATE: July 22, 2013
TO: Curt Boganey, City Manager
FROM:. 6—)Tim Benetti, Planning and Zoning Specialist
THROUGH: Gary Eitel, Director of Business and Development
SUBJECT: Resolution Regarding the Recommended Disposition of Planning Commission
Application No. 2013-008 Submitted by the Luther Company, LLLP Requesting
Site and Building Plan Approval of the New Luther Brookdale Volkswagen
Automobile Dealership Facility (6801 & 6837 Brooklyn Boulevard)
Recommendation:
It is recommended that the City Council, following consideration of this item, adopt the
Resolution Regarding the Recommended Disposition of Planning Commission Application No.
2013-008 Submitted by the Luther Company, LLLP Requesting Site and Building Plan Approval
of the New Luther Brookdale Volkswagen Automobile Dealership Facility (6801 & 6837
Brooklyn Boulevard).
Background:
On July 11, 2013 the Planning Commission reviewed Planning Commission Application No.
2013-008 submitted by the Luther Company, LLLP for site and building plan approval for a new
32,100 sq. ft. Volkswagen Automobile dealership located at 6801 Brooklyn Boulevard.
Attached for review is Planning Commission Resolution No. 2013-10, in which the Commission
provided a favorable (unanimous) recommendation of the proposed site and building plan. Also
included with this resolution is a copy of the July 11, 2013 planning report regarding Planning
Commission Application No. 2013-008, which provides background information, an analysis of
the proposed site and building plans, and contains certain findings and recommendations.
Excerpts from the July 11, 2013 Commission meeting minutes as related to this consideration of
this matter are also attached for review.
Budget Issues:
There are no budget issues to consider.
Council Goals:
Strategic:
1. We will proceed aggressively with implementation of City's redevelopment plans.
4. We will improve the city's image.
illission: Ensuring CM attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
Member introduced the following resolution and moved its
adoption:
RESOLUTION NO. 2013 -
RESOLUTION REGARDING THE RECOMMENDED DISPOSITION OF
PLANNING COMMISSION APPLICATION NO. 2013-008 SUBMITTED BY
THE LUTHER COMPANY, LLLP REQUESTING SITE AND BUILDING
PLAN APPROVAL OF THE NEW LUTHER BROOKDALE VOLKSWAGEN
AUTOMOBILE DEALERSHIP FACILITY (6801 & 6837 BROOKLYN
BOULEVARD)
WHEREAS, Planning Application No. 2013-008, submitted by The Luther
Company, LLLP ("Developer"), requesting approval of a new Site and Building Plan of a
proposed Luther Brookdale Volkswagen automobile dealership facility, located at 6801 and 6837
Brooklyn Boulevard ( the "Subject Property"), and
WHEREAS, the Planning Commission held a public meeting on July 11, 2013, to
fully consider Planning Application No. 2013-008, and reviewed and received a planning report on
the proposed new Site and Building Plans for the proposed 32,100 sq. ft. Luther Brookdale
Volkswagen development and other related site improvements; and
WHEREAS, in light of all testimony received, and utilizing the guidelines for
evaluating the site and building plans as contained in Section 35-230 of the City's Zoning
Ordinance and the Comprehensive Plan, the Planning Commission considered the site and building
plans for the new Luther Brookdale Volkswagen facility, and determined it to be an appropriate
and reasonable redevelopment of the Subject Site; and
WHEREAS, the Planning Advisory Commission of the City of Brooklyn Center
does hereby recommend to the City Council that the Site and Building Plan of the proposed Luther
Brookdale Volkswagen facility as comprehended under Planning Application No. 2013-008, be
approved based upon the following considerations:
1.The Site and Building Plan is compatible with the standards, purposes and
intent of the City's Zoning Ordinance;
2.The Site and Building Plan on the Subject Site will facilitate the
redevelopment and improvement of this site, which allows for the utilization
of the land in question in a manner that is compatible with, complimentary
to and of comparable intensity to adjacent land uses as well as those
permitted on surrounding land;
3. The improvements and utilization of the property as proposed under the Site
Plan of this site is considered a reasonable use of the property and will
conform with ordinance standards;
RESOLUTION NO. 2013 -
4.The Site and Building Plan proposal is considered consistent with the
recommendations of the City's Comprehensive Plan for this area of the city;
5.The Site and Building Plan proposal appears to be a good long range use of
the existing land and this proposed development can be considered an asset
to the community; and
6. Based upon the above considerations, it is believed that the guidelines for
evaluating and approving a Site and Building Plan as contained in Section
35-230 (Plan Approval) of the City's Zoning Ordinance are met and the site
proposal is, therefore, in the best interest of the community.
AND WHEREAS, the Planning Advisory Commission of the City of Brooklyn
Center hereby further recommends the City Council approve Planning Application No. 2013-008
subject to the following conditions:
1.Developer agrees to comply with all conditions or provisions noted in the
City Engineer's Review memo, dated July 2, 2013.
2.The Developer shall provide a detail of the proposed retaining wall and
fence along the westerly lot line area. Final placement and approval shall
be made under the building permit review.
3.The Developer shall combine for tax purposes the two lots addressed as
6801 and 6837 Brooklyn Boulevard (Lots 1 and 2, Block 1, Northtown
Plaza 3 rd Addition) owned by Luther 394 Properties, LLC (Luther
Company LLLP); the combination of which secures the ability to use
these two lots for the single automobile dealership only. No separation of
these lots may occur without separate approval of a subdivision as
provided under Chapter 15 of the City Code of Ordinances.
4.The building plans are subject to review and approval by the Building
Official with respect to applicable codes prior to the issuance of permits;
and the final location or placement of any fire hydrants and other fire
related building code items shall be reviewed and approved by the Fire
Chief.
5. Final grading, drainage, utility and erosion control plans and any other site
engineering elated issues are subject to review and approval by the City
Engineer prior to the issuance of permits.
6. Any outside trash disposal facilities and roof top or on ground mechanical
equipment shall be appropriately screened from view. The new trash
RESOLUTION NO. 2013 -
enclosure with same building materials as those used to construct the
principal building.
7.All landscaped areas, including street boulevards, shall include approved
irrigation systems to facilitate site maintenance.
8.Site Plan approval is exclusive of all signs scheduled to be installed on this
site, including new wall (building) signs. New signs are subject to
Chapter 34 of the City Code of Ordinances and shall be approved under
separate sign permits.
9.Appropriate erosion and sediment control devices shall be provided on site
during construction as approved by the City's Engineering Department
and applicant shall obtain an NPDES construction site erosion permit from
the Minnesota Pollution Control Agency prior to disturbing the site.
10.Any major changes or modifications made to this Site and Building Plan
can only be made by an amendment to the approved Site and Building
Plan as approved by the City Council.
11.The Developer shall execute a separate Performance Agreement with
supporting financial guarantee approved by the City, which ensures the
Subject Property will be constructed, developed, and maintained in
conformance with the plans, specifications and standards comprehended
under this Site and Building Plan.
12.The Developer shall submit an as built survey of the property,
improvements and utility service lines prior to release of the performance
guarantee.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota, that Planning Application No. 2013-008 as submitted by The Luther
Company, LLLP requesting approval of a new Site and Building Plan of the proposed Luther
Brookdale Volkswagen automobile dealership facility, located at 6801 and 6837 Brooldyn
Boulevard , is hereby approved subject to the conditions memorialized herein.
July 22, 2013
Date Mayor
RESOLUTION NO. 2013 -
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.
MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION
OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF
HENNEPIN AND THE STATE OF MINNESOTA
JULY 11, 2013
CALL TO ORDER
The Planning Commission meeting was called to order by Chair Burfeind at 7:01p.m.
ROLL CALL
Chair Burfeind, Commissioners Randall Christensen, Carlos Morgan, Michael Parks, and
Stephen Schonning were present. Also present were Councilmember Carol Kleven, Secretary to
the Planning Commission Tim Benetti, Director of Business & Development Gary Eitel, and
Planning Commission Recording Secretary Rebecca Crass. Benjamin Freedman was absent and
excused.
APPROVAL OF MINUTES — JUNE 26, 2013
There was a motion by Commissioner Schonning, seconded by Commissioner Christensen,
to approve the minutes of the June 26, 2013 meeting as submitted. The motion passed.
CHAIR'S EXPLANATION
Chair Rahn 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.
APPLICATION NO. 2013-008 THE LUTHER COMPANY, LLLP
Chair Burfeind introduced Application No. 2013-008, a request for site and building plan
approval for a new 32,100 sq. ft. Volkswagen auto dealership facility located at 6801 Brooklyn
Boulevard. (See Planning Commission Information Sheet dated 7-11-13 for Application No.
2013-008.)
Mr. Benetti explained the site for the proposed new two-story building consists of 4.99 acres and
is zoned C-2 (Commerce). He added the proposal involves demolition of the existing buildings
on the site prior to construction of the new Volkswagen auto dealership. Mr. Benetti pointed out
the three access points along 68 1 Avenue North are being adjusted to the new layout of site and
the access near the corner of 68 th Avenue and Brooklyn Boulevard will be removed with the only
access of 68 th Avenue. He also stated the plans indicate a new retaining wall with a fence to be
located along the west property line.
The Chair called for further discussion or questions from the Commissioners.
Commissioner Morgan asked how many cars will be on the sales lot. Mr. Benetti replied the
number of parking spaces reflects how many cars will be available for sales and they are
showing 386 parking spaces on the plan.
MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION
JULY 11, 2013
Chair Burfeind asked if the building will look similar to the new building across the street. Mr.
Nguyen Hoang, Architect for Luther, stated the precast panels will be the same as the Toyota
building.
Chair Burfeind stated he noted there is a large sediment base used for water retention. Mr.
Hoang replied an underground water drainage system is planned on the site.
The Commissioners interposed no objections to approval of the Application.
ACTION TO RECOMMEND APPROVAL OF PLANNING COMMISSION RESOLUTION
NO. 2013-10 REGARDING THE RECOMMENDED DISPOSITION OF PLANNING
COMMISSION APPLICATION NO. 2013-008 SUBMITTED BY THE LUTHER COMPANY,
LLLP REQUESTING SITE AND BUILDING PLAN APPROVAL OF THE NEW LUTHER
BROOKDALE VOLKSWAGEN AUTOMOBILE DEALERSHIP FACILITY (6801 & 6837
BROOKLYN BOULEVARD)
There was a motion by Commissioner Christensen, seconded by Commissioner Schonning, to
approve Planning Commission Resolution No. 2013-10.
Voting in favor: Chair Burfeind, Commissioners Christensen, Morgan, Parks and
S chonning
And the following voted against the same: None
The motion passed unanimously.
The Council will consider the application at its July 22, 2013 meeting. The applicant must be
present. Major changes to the application as reviewed by the Planning Commission will require
that the application be returned to the Commission for reconsideration.
Page 2
7-11-13
mr
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BROOI 1 W
CENTER
Planning Commission Report
Meeting Date: July 11, 2013 •Application Filed: 06/11/13
•Review Period (60-day) Deadline: 08/10/13
•Extension Declared: N/A
•Extended Review Period Deadline: N/A
Application No. 2013-008
Applicant: The Luther Company, LLLP
Location: 6801-6837 Brooklyn Boulevard
Request: Site and Building Plan for new Luther Brookdale Volkswagen Dealership
INTRODUCTION
Luther Company is requesting review and consideration of a Site and Building Plan approval of
a new Volkswagen dealership building, located at 6801 Brooklyn Boulevard. The new
dealership site will replace the former Luther Brookdale Honda dealership facility, which is
slated to be removed and replaced with the new 32,100 sq. ft. Volkswagen facility.
The subject property consists of 4.99 total acres, and is zoned C2 (Commerce) District. A
special use permit is required for any retail auto dealership in the C2 zone (provided the site is at
least 3+ acres in size and structures occupy a minimum of 15% of the parcel). The Luther Honda
site was previously approved with a special use permit, which typically runs with the land, as
long as the allowed use continues to operate as such on the subject property. Approval of this
site and building plan will continue the allowable use provide under this original special use
permit; therefore, this special use is being amended (or appended to) as part of this overall site
considerations.
This site plan item does not require a public hearing, but can be considered under a standard
public meeting review, whereby comments from the general public may be allowed or noted for
the record. Written notices have been mailed to property owners within 350-feet of the site.
BACKGROUND
On November 13, 1967, the City approved a site and building plan for the original "automobile
agency" building on the main site. City records did not indicate if this site was approved with a
special use permit at that time (or if it was even required at that time).
On February 23, 1981, the City approved Planning Application No. 81015, the new site plan and
special use permit allowing the construction of a 3,100 sf. Honda sales office to the north of the
Pontiac-GMC building, which later became known (addressed) as 6837 Brooklyn Boulevard.
This application appears to be the first acknowledgement of the required special use permit on
the subject site.
On August 26, 1985, the City approved Application No. 85018 and 85019, the site plan and
preliminary plat of Northtown Plaza 3rd Addition. The plat provided for the split to the original
Pontiac/GMC/Honda site into two separate lots; one for the overall dealership site and the other
for a separate dealership lot to the north, along with a smaller sales office building on the site.
App. No. 2013-008
PC 07/11/2013
Page 1
-
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On August 28, 1989, the City approved Application No. 89021, a site plan approval of a 15,000
sq. ft. addition to the Honda dealership.
Under this Application No. 2013-008, the Developer is requesting to remove the two vacant
dealership buildings on the site, remove the old bituminous layer on the parking areas, and
replaces the overall site with the new 32,100 sf1 facility and repaves the vehicle parking/display
areas. The dealership will still retain the two platted lots (Lots 1 and 2, Northtown Plaza r i
Addition) for its continued use, and these lots will be combined for tax purposes and recognized
as a single, combined commercial development parcel.
• SITE BUILDING IMP OVEMENTS
The proposed Volkswagen dealership building will consist of a two-story high, glass entryway
leading into the front display showcase and office area. The remaining portion of the building
will consist of tip-up wall panels, with a "sandblasted" and "waterwashed" finishes. The
building will also contain typical pre-finished metal cap flashings and limited EIFS banding
along the upper wall sections. For the most part, the building appears to reflect an overall white
or sandstone appearance, with very limited separating colors.
The front exterior consists of the main entry into the main, first floor of the building, which
consists of 31,975 sq. ft. of floor area. The front-half of this first floor area is dedicated to the
interior display showcase area, along with typical reception/office/sales spaces. The rear-half is
dedicated to the on-site vehicle service shop area. This service area also includes an 83' x 40'
App. No. 2013-008
PC 07/11/2013
Page 2
(3,320 sf.) "service write-up" area adjacent to the front reception/sales area, which is accessed by
two, large, overhead bay doors located on the main (front) exterior. The second floor is
dedicated to additional offices, training and conference rooms, and consists of 9,515 sf1 of area.
A small 870 sf. mezzanine is located in the rear shop area. The total interior floor space is
42,360 sq. ft.
Under the C2 Zone, building setbacks are as follows:
Front Yard = 35 —ft. Rear Yard = 40-ft. Side-Yard = 10-ft. Corner Side = 25-ft.
The new building easily meets these setback requirements from all sides, with a front yard
showing of an approximate 100-foot setback off Brooklyn Blvd.; a 147-foot setback from 68 th
Avenue, and a 55-foot setback from the rear lot line.
The site also contains a 30' x 15' outdoor trash enclosure, which sits approximately 5-feet off the
rear lot line. The City has normally viewed these areas as "accessory structures, which allows
for setbacks up to 3-feet from side or rear lot lines.
ACCESS & PARKING
The existing site is accessed by five, separate entry points (noted by red-circles in diagram
below). Two of these accesses are located off of Brooklyn Boulevard and the remaining three
are situated along 68 th Avenue to the south. The two accesses along Brooklyn Blvd. are right-
in/right-out only, due to the existing median in Brooklyn Boulevard. The three along 68 th
Avenue are free movement access points.
App. No. 2013-008
PC 07/11/2013
Page 3
As illustrated on the new Site Plan layout (diagram below), the two access points along Brooklyn
Boulevard are scheduled to remain in place, and retain the 30-foot wide openings as permitted by
City Code. Staff does not see any reason to close or move these access points since they are
limited to this right in/right-out movements.
The three access points along 68 th Avenue are all being adjusted according to the new layout of
this dealership site. The access near the corner of 68 t1 and Brooklyn Blvd. is to be removed,
which is highly supported due to the dangerous proximity of this access to the road intersection.
The site will only be accessed off 68 th Avenue by the two driveway entries as shown on the
plans. The easterly entrance is being shifted slightly to the right (east) of the existing, middle
access; while the far west entrance is planned to be a new entry location into the site. The
Developer has done a nice job designing or placing these access points directly across from the
existing driveway accesses to the business located on the south side of 68 th Avenue, and spacing
them far enough from the 68 th and Brooklyn Blvd. intersection.
The total amount of outdoor surface parking to be provided under this plan is 386 spaces. The
Developer provided a Parking Summary calculation of this site on their plans, which reflects the
various uses and spaces inside this dealership and the required City Code allotment for the
various uses. The auto dealership site and its activities represent a need to provide up to 125
parking spaces. For all intents and purposes, most dealerships exceed the required number of
parking spaces in order to provide enough area to display and maintain their new and used
App. No. 2013-008
PC 07/11/2013
Page 4
vehicles on the site. This parking will also accommodate the periodic visitor or customers to the
site, and all employees. It appears that all drive-aisles meet the 24-foot width standards required
by Code, with adequate parking islands and separators in place.
•• GRADING/DRAINAGE/UTILITIES
The finished grades and necessary underground utilities for this redeveloped site are intended to
be constructed under a future land disturbance permit. The site is relatively flat and does not
appear to need any additional or substantial grading as part of this redevelopment plan. The
utility map includes a plan to provide a large, 50-ft. x 270-ft. underground storm water storage
chamber (Triton Series S-29H System). It appears that all portions of the parking areas will
connect to this underground chamber to handle the on-site drainage requirements of this site.
All other utilities such as water, sanitary sewer, gas and electric are currently available and will
be easily modified or relocated to accommodate this new building site. Fire hydrants and
building connections are also being placed in specific and strategic locations throughout the site,
with final locations to be approved under building permit review.
• LANDSCAPING
The site plan includes a detailed landscape plan, which illustrates certain amounts and locations
of various landscaping items throughout the site. Although City Code does not have any specific
requirements on landscaping, the City has operated under and held new and redeveloped areas to
comply with the city's adopted Landscape Points System policy, which provides certain
percentages and amount of landscaping based on a development's size (land area). This
landscape points system requires commercial sites to provide a specific amount or number of
landscaping units, and is based on a maximum percentage of certain materials (50% shade trees;
40% coniferous trees; 35% decorative trees; and 25% shrubs).
The Developer has accurately reflected 339.4 points needed for this 4.99 acre site. Plans call for
17 shade trees; 13 coniferous trees; 5 decorative trees; and 170 shrubs. The total percentages of
these materials meets the maximum percentages allowed and the number indicated at 340.5
points, which just meets the minimum required points.
Most of the new and existing over story-trees (shade, decorative and evergreens) are located in
the outer perimeter of the site, particularly along the street boulevards. This is very typical of
most auto dealership lots, due to the desire of property owners to keep their stock of vehicles
clean from tree sap, falling branches, pine cones, berries and birds. The Developer has made a
good effort in landscaping around the perimeter of the building and providing suitable
landscaping inside the various parking islands. All of these areas shall be well maintained and
irrigated per City Code.
App. No. 2013-008
PC 07/11/2013
Page 5
VOLKSWAGEN
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The existing site is partially fenced off to the rear by a 7-foot high chain linked fence.
'
This chain linked fencing is scheduled to be removed as part of the demolition plans.
The plans indicate a new retaining wall with fence, to be installed partially along the west
boundary line, as noted in the diagram below.
This wall/fence item appears to be approximately 350-feet in length, and appears to be used as
some protective screening from the US Post Office property to the west. The plans however, are
App. No. 2013-008
PC 07/11/2013
Page 6
absent of any details on this new fence and wall, and staff is unable to provide the Commission
with details on the height or size of the wall, or the type of fence planned for this area. The
Northtown Plaza 3' Additiion plat does not indicate if any drainage and utility easement is
present along this west boundary line. Commercial areas typically have 10-foot drainage
easements along their perimeters, and some structures are usually not permitted or recommended
unless the City Engineers allows such structures or similar encroachments in these areas.
Even though this wall/fence appears to be only "screening" the post office parking lot area, Staff
will require the Developers submit a full detailed plan of this wall and fence prior to issuance of
any permits. No other areas of this development are planned for any additional walls or fencing.
LIGHTING/TRASH
The site lighting plan calls for 40 new pole lights with down-cast cut off light standards scattered
throughout the site. The main vehicle parking/display areas and out lot line area are to be lit with
24-foot high, dual headed lamps; while the small section of the southern parking area is lit with
four, 24-foot high, 3-headed lamp light standards. The photometric plan indicates the site will
receive a high, intensity of light on the site itself, with a minimal and manageable amount of
spill-over beyond the property lines at the street levels.
As noted previously, the site plan illustrates a proposed 30' x 15' outdoor trash enclosure, which
sits approximately 5-feet from the rear lot line. This enclosure appears to be able to hold up to
four trash dumpsters. Although no elevation details are presented with these plans, the City has
made it clear to this (and other developers) that all trash enclosures must be made of matching or
similar material as the main building, and the enclosure must be securely fenced or closed at all
times.
CITY ENGINEER REVIEW
The City Engineer has provided a review and comments regarding this application in his July 2,
2013 memorandum to city planning staff, attached hereto. Some of these conditions may be
applicable at time of future land disturbance permit or building permit approvals.
RECOMMENDATION
Staff recommends the Planning Commission adopt the attached Resolution No. 2013-10, which
comprehends the approval of Planning Application No. 2013-008, a Site and Building Plan for
the proposed Luther Brookdale Volkswagen dealership facility, subject to the following
conditions:
1.Developer agrees to comply with all conditions or provisions noted in the City
Engineer's Review memo, dated July 2, 2013.
2.The Developer shall provide a detail of the proposed retaining wall and fence
along the westerly lot line area. Final placement and approval shall be made
under the building permit review.
3. The Developer shall combine for tax purposes the two lots addressed as 6801 and
6837 Brooklyn Boulevard (Lots 1 and 2, Block 1, Northtown Plaza 3' Addition)
App. No. 2013-008
PC 07/11/2013
Page 7
owned by Luther 394 Properties, LLC (Luther Company LLLP); the combination
of which secures the ability to use these two lots for the single automobile
dealership only. No separation of these lots may occur without separate approval
of a subdivision as provided under Chapter 15 of the City Code of Ordinances.
4.The building plans are subject to review and approval by the Building Official
with respect to applicable codes prior to the issuance of permits; and the final
location or placement of any fire hydrants and other fire related building code
items shall be reviewed and approved by the Fire Chief.
5.Final grading, drainage, utility and erosion control plans and any other site
engineering elated issues are subject to review and approval by the City Engineer
prior to the issuance of permits.
6.Any outside trash disposal facilities and roof top or on ground mechanical
equipment shall be appropriately screened from view. The new trash enclosure
with same building materials as those used to construct the principal building.
7.All landscaped areas, including street boulevards, shall include approved
irrigation systems to facilitate site maintenance.
8.Site Plan approval is exclusive of all signs scheduled to be installed on this site,
including new wall (building) signs. New signs are subject to Chapter 34 of the
City Code of Ordinances and shall be approved under separate sign permits.
9.Appropriate erosion and sediment control devices shall be provided on site during
construction as approved by the City's Engineering Department and applicant
shall obtain an NPDES construction site erosion permit from the Minnesota
Pollution Control Agency prior to disturbing the site.
10.Any major changes or modifications made to this Site and Building Plan can only
be made by an amendment to the approved Site and Building Plan as approved by
the City Council.
11.The Developer shall execute a separate Performance Agreement with supporting
financial guarantee approved by the City, which ensures the Subject Property will
be constructed, developed, and maintained in conformance with the plans,
specifications and standards comprehended under this Site and Building Plan.
12. The Developer shall submit an as built survey of the property, improvements and
utility service lines prior to release of the performance guarantee.
Attachments
Planning Commission Resolution No. 2013-10
City Engineer's Review Memo — dated 07/02/2013
Luther Brookdale Volkswagen Site and Building Plans
App. No. 2013-008
PC 07/11/2013
Page 8
Commissioner Christensen introduced the following resolution
and moved its adoption
PLANNING COMMISSION RESOLUTION NO. 2013-10
RESOLUTION REGARDING THE RECOMMENDED DISPOSITION OF
PLANNING COMMISSION APPLICATION NO. 2013-008 SUBMITTED BY
THE LUTHER COMPANY, LLLP REQUESTING SITE AND BUILDING
PLAN APPROVAL OF THE NEW LUTHER BROOKDALE VOLKSWAGEN
AUTOMOBILE DEALERSHIP FACILITY (6801 & 6837 BROOKLYN
BOULEVARD)
WHEREAS, Planning Application No. 2013-008 was submitted by The Luther
Company, LLLP ("Developer"), requesting approval of a new Site and Building Plan of a
proposed Luther Brookdale Volkswagen automobile dealership facility, located at 6801 and 6837
Brooklyn Boulevard ( the "Subject Property"), and
WHEREAS, the Planning Commission held a public meeting on July 11, 2013, to
fully consider Planning Application No. 2013-008, and reviewed and received a planning report on
the proposed new Site and Building Plans for the proposed 32,100 sq. ft. Luther Brookdale
Volkswagen development and other related site improvements; and
WHEREAS, in light of all testimony received, and utilizing the guidelines for
evaluating the site and building plans as contained in Section 35-230 of the City's Zoning
Ordinance and the Comprehensive Plan, the Planning Commission considered the site and building
plans for the new Luther Brookdale Volkswagen facility, and determined it to be an appropriate
and reasonable redevelopment of the Subject Site.
NOW, THEREFORE, BE IT RESOLVED by the Planning Advisory Commission
of the City of Brooklyn Center to recommend to the City Council that the Site and Building Plan of
the proposed Luther Brookdale Volkswagen facility as comprehended under Planning Application
No. 2013-008, be approved based upon the following considerations:
1.The Site and Building Plan is compatible with the standards, purposes and
intent of the City's Zoning Ordinance;
2.The Site and Building Plan on the Subject Site will facilitate the
redevelopment and improvement of this site, which allows for the utilization
of the land in question in a manner that is compatible with, complimentary
to and of comparable intensity to adjacent land uses as well as those
permitted on surrounding land;
3. The improvements and utilization of the property as proposed under the Site
Plan of this site is considered a reasonable use of the property and will
conform with ordinance standards;
Res. 2013-10
1 of 3
4.The Site and Building Plan proposal is considered consistent with the
recommendations of the City's Comprehensive Plan for this area of the city;
5.The Site and Building Plan proposal appears to be a good long range use of
the existing land and this proposed development can be considered an asset
to the community; and
6. Based upon the above considerations, it is believed that the guidelines for
evaluating and approving a Site and Building Plan as contained in Section
35-230 (Plan Approval) of the City's Zoning Ordinance are met and the site
proposal is, therefore, in the best interest of the community.
BE IT FURTHER RESOLVED by the Planning Advisory Commission of the City
of Brooklyn Center to recommend to the City Council that Planning Application No. 2013-008 be
approved subject to the following conditions:
I. Developer agrees to comply with all conditions or provisions noted in the
City Engineer's Review memo, dated July 2, 2013.
2.The Developer shall provide a detail of the proposed retaining wall and
fence along the westerly lot line area. Final placement and approval shall
be made under the building permit review.
3.The Developer shall combine for tax purposes the two lots addressed as
6801 and 6837 Brooklyn Boulevard (Lots 1 and 2, Block 1, Northtown
Plaza 3 rd Addition) owned by Luther 394 Properties, LLC (Luther
Company LLLP); the combination of which secures the ability to use
these two lots for the single automobile dealership only. No separation of
these lots may occur without separate approval of a subdivision as
provided under Chapter 15 of the City Code of Ordinances.
4.The building plans are subject to review and approval by the Building
Official with respect to applicable codes prior to the issuance of permits;
and the final location or placement of any fire hydrants and other fire
related building code items shall be reviewed and approved by the Fire
Chief.
5.Final grading, drainage, utility and erosion control plans and any other site
engineering elated issues are subject to review and approval by the City
Engineer prior to the issuance of permits.
6. Any outside trash disposal facilities and roof top or on ground mechanical
equipment shall be appropriately screened from view. The new trash
enclosure with same building materials as those used to construct the
principal building.
Res. 2013-10
2 of 3
7.All landscaped areas, including street boulevards, shall include approved
irrigation systems to facilitate site maintenance.
8.Site Plan approval is exclusive of all signs scheduled to be installed on this
_ site, including new wall (building) signs. New signs are subject to
Chapter 34 of the City Code of Ordinances and shall be approved under
separate sign permits.
9.Appropriate erosion and sediment control devices shall be provided on site
during construction as approved by the City's Engineering Department
and applicant shall obtain an NPDES construction site erosion permit from
the Minnesota Pollution Control Agency prior to disturbing the site.
10.Any major changes or modifications made to this Site and Building Plan
can only be made by an amendment to the approved Site and Building
Plan as approved by the City Council.
11.The Developer shall execute a separate Performance Agreement with
supporting financial guarantee approved by the City, which ensures the
Subject Property will be constructed, developed, and maintained in
conformance with the plans, specifications and standards comprehended
under this Site and Building Plan.
12.The Developer shall submit an as built survey of the property,
improvements and utility service lines prior to release of the performance
guarantee.
July 11, 2013
Date
ATTEST:
Secretary
The motion for the adoption of the foregoing resolution was duly seconded by member Schonning,
and upon vote being taken thereon, the following voted in favor thereof:
Chair Burfeind, Commissioners Christensen, Morgan, Parks, and Schonning.
and the following voted against the same: None
whereupon said resolution was declared duly passed and adopted.
Res. 2013-10
3 of 3
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MEMORANDUM
DATE: July 2, 2013
TO: Tim Benetti, Planning and Zoning Specialist
FROM: Steven J. Jankowski, Assistant City Engineer
SUBJECT: Public Works Special Use Permit Site Plan Review — Luther Volkswagen
The Public Works Department staff has reviewed the following plan sheets which have been
prepared by Landform and are all dated June 11, 2013.
C-001 Civil Title Sheet
C-101 Existing Conditions
C-102 Demolition
C-201 Site plan
C-301 Grading, Drainage, Paving & Erosion Control
C-401 Utilities
E-201 Photometrics
L-201 Landscape Plan
These submissions have been prepared for the demolition of two buildings on the site and the
construction of a single new building. The following recommendations, comments and
conditions are provided:
Plan Items
1.Sheet C-102. Existing water and sanitary sewer shall be disconnected, removed and
plugged or bulkheaded at the main as necessary prior to building demolition.
2.Sheet C-201
a.No monument or pylon signs were noted on this site plan. If anticipated, the
location of such signs should be identified and should not encroach into the right
of way and or easements.
b.Concrete driveway aprons along 68 th Avenue must follow City standard details.
3. Sheet C-301
a.Revise the location of the northerly proposed rock entrance off of Brooklyn
Boulevard. It appears on the concrete access which is to be saved.
b.The grading near both entrances on to 68 th Avenue should be modified to insure
that stormwater does not leave the site.
c. Provide additional details and plans on the placement of the retaining wall along
the west edge of the property, which should include: its location relative to the
property line and silt fencing; materials; and typical section of the wall.
4. Sheet C-401.
a.Provide pretreatment before all storm water treatment facilities and/or prior to
connections to the City's storm water system.
b.Fire and domestic water services must be separated prior to entering the building.
Domestic and fires services must have separate exterior gate valves or PIVs to
allow isolation of individual water services lines.
Luther Volkswagen Special Use Permit — Site Plan Review Page 2
July 2, 2013
5.Sheet L-201. Revise the landscape plan to insure that the drive entrances onto 68 th
Avenue comply with the sight triangle requirements of section 25-802 of City Code when
the tree species proposed reach their mature dimensions.
6.Irrigation is required for the site. An irrigation plan must be provided.
General Items
7.The final construction plans must be certified by a licensed engineer in the state of Minnesota and
forwarded to the City Engineer for approval.
8.A review of this development is required by the Shingle Creek Watershed Management
Commission. All City and Watershed storm drainage, treatment and infiltration standards are
required to be met. Hydraulic and Hydrology storm water calculations documenting the basis of
the proposed design must be submitted for review and approval.
9.All work and materials must conform to the City of Brooklyn Center's standard specifications
and details. The City's standard details must be included in the final site plans.
10.A general project phasing plan must be provided for the development.
11.During construction of the site improvements and until the permanent turf and plantings are
established, the developer will be required to reimburse the City for the
City's administration and engineering inspection efforts.
12.Upon project completion, the applicant must submit an as-built survey of the property,
improvements and utility service lines and structures, and provide certified record drawings for
any associated private and/or public improvements prior to issuance of the certificate of
occupancy. The survey must also verify that all property corners have been established and are in
place at the completion of the project as determined and directed by the City Engineer.
13.Inspection for the private site improvements must be performed by the developer's design/project
engineer. Upon project completion, the design/project engineer must formally certify through a
letter that the project was built in conformance with the approved plans and under the
design/project engineer's immediate and direct supervision. The engineer must be certified in the
state of Minnesota and must certify all required as-built drawings.
14.The applicant must conduct fire flow testing of the water system in the presence of Public
Works Utility staff. The applicant must provide sufficient data to the City Building
Official to document the extent of fire flow capacity for the proposed building.
15.Provide vehicle turning and tracking movement diagrams for delivery vehicles and
garbage trucks.
16.Provide details for pedestrian and bicycle facilities throughout the site (e.g. bike racks,
benches, trail and sidewalk connectivity plans to internal and regional systems, etc.).
17.Provide a travel demand management plan.
18.The plan has been forwarded to Hennepin County for review and comment; the developer shall
comply with all conditions required by Hennepin County.
19.The applicant shall be responsible for coordinating site development plans with all private utility
companies (Xcel Energy, CenterPoint Energy, Qwest Communications, Comcast, etc. )
Easements and Agreements
20.A Construction Management Plan and Agreement is required that addresses general construction
activities and management provisions, traffic control provisions, emergency management
provisions, storm water pollution prevention plan provisions, tree protection provisions, general
public welfare and safety provisions, definition of responsibility provisions, temporary parking
provisions, overall site condition provisions and non-compliance provisions. A $5,000 deposit
will be required as part of the non-compliance provision.
21. A development/subdivision agreement will be required that includes all conditions of the
project approval, subject to the final site plan approval by the City Engineer.
Luther Volkswagen Special Use Permit — Site Plan Review Page 3
July 2, 2013
22.A Performance Agreement is required that includes all conditions of the project approval, subject
to the final site plan approval by the City Engineer.
23.An overall Easement Agreement is required that will provide the City perpetual accessibility to
all private utilities and storm drainage areas to inspect and enforce proper utility service and
maintenance for the entire site. This easement agreement also includes private inspection,
maintenance, and reporting responsibilities. Easements to provide utility service to the
development should be dedicated as necessary.
24.Private site appurtenances (e.g. light poles, signs etc.) shall not encroach into public easements. If
such an encroachment exists and is determined by the City to be not adverse to the public interest,
such encroachments will require an Encroachment Agreement.
25.A 10 foot drainage and utility easement around the perimeter of the site must be dedicated to the
City.
Anticipated Permitting
26.The following City of Brooklyn Center permits are required: demolition permit, land disturbance
permit, building permit, utility disconnect and connection permit and a driveway cut permit.
27.A Hennepin County permit is required for any work within County right-of-way and/or for
driveway work along Brooklyn Boulevard.
28.A Minnesota Pollution Control Agency NPDES storm water construction permit is required.
29.A Shingle Creek Watershed Management Commission (SCWMC) plan review and approval is
required.
30.Other permits not listed herein may be required. It is the Responsibility of the applicant to obtain
such permits as warranted.
Prior to Issuance of Land Alteration and/or Building Permit
31.The construction of project will require an encroachment on an adjacent property. Documentation
must be submitted showing authorization for this activity.
32.Copies of all required permits must be provided to the City.
33.Final construction plans and specification must be submitted and approved by the City Engineer/
34.A letter of credit or cash escrow shall be deposited with the City in the amount of 100% of the
estimated cost determined by the city to comply with land alteration requirement, site
improvement, and restoration of the site. The city may reduce that amount of the surety if work is
completed and accepted.
35.The Construction Management Plan and Agreement has been executed and the associated
separate cash escrow has been deposited with the City.
36.An executed easement agreement must be provided.
37.A preconstruction conference is scheduled and held with City staff and other entities designated
by the City.
38. All storm water pollution prevention plan (SWPPP) BMPs must be installed prior to any
disturbance of the property.
All aforementioned items, comments and recommendations are provided based on the information
submitted by the applicant at the time of this review. The site plan must be developed and maintained
in substantial conformance with the referenced plans, unless modified by the staff recommended
conditions above. Subsequent approval of the final plan may require additional modifications based
on engineering requirements associated with final design of the water supply, storm drainage, sanitary
sewer, final grading, geometric design and other design elements as established by the City Engineer
and other public officials having jurisdiction over approval of the final site plans
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City Council Agenda Item No. 9b
COUNCIL ITEM MEMORANDUM
DATE: July 22, 2013
TO: Curt Boganey, City Manager
FROM: Tim Benetti, Planning and Zoning Specialist IG2—
THROUGH: Gary Eitel, Director of Business and Development
SUBJECT: Resolution Regarding the Recommended Disposition of Planning Commission
Application No. 2013-011 Submitted by the Luther Company, LLLP, the
Preliminary Approval of a PUD Amendment to the 2008 Luther Auto Toyota-
Honda Planned Unit Development by Incorporating Three Parcels of Land Area
(Totaling 1.78 Acres) Into the New Honda Automobile Dealership Site and
Includes a Proposed Site Development Plan to Provide Additional Vehicle
Storage Area for the Honda Dealership (All for the Properties Located at 3955,
4001 & 4007 – 69th Avenue North)
Recommendation:
It is recommended that the City Council, following consideration of this item, adopt the
resolution regarding the recommended disposition of Planning Commission Application No.
2013-011, submitted by the Luther Company, LLLP to give preliminary approval of a PUD
Amendment to the 2008 Luther Auto Toyota-Honda Planned Unit Development by incorporating
three parcels of land area (totaling 1.78 Acres) into the new Honda automobile dealership site
and includes a proposed site development plan to provide additional vehicle storage and parking
area for the Honda dealership (all for the properties located at 3955, 4001 & 4007 – 69 th Avenue
North).
Background:
On July 11, 2013 the Planning Commission reviewed concurrently Planning Commission
Application Nos. 2013-010 and 2013-011, submitted by the Luther Company, LLLP for rezoning
from R3 (Multiple Family Residence) to PUD/C2 (Planned Unit Development/Commerce) District
and a new Planned Unit Development Amendment to the 2008 Luther Auto Toyota-Honda
Planned Unit Development project.
As noted in the related July 22, 2013 Council Summary memo on the proposed Luther Company
rezoning request, the final PUD Amendment its related final Site and Development Plan of this
same area is projected to be presented at the August 12, 2013 regular City Council meeting.
Attached for review is Planning Commission Resolution No. 2013-11, in which the Commission
provided a favorable and joint recommendation of the proposed rezoning and Planned Unit
Development Amendment approval.
4'IiSSI011: EllS111ing alt attractive, clean, stye, inclusive community that enhances the quality of life
for all people and preserves the public trust
COUNCIL ITEM MEMORANDUM
The City Council should refer to the same copy of the July 11, 2013 planning report regarding
Planning Application Nos. 2013-010 and 2013-011, which is included in the previous Luther
Company rezoning (resolution and draft ordinance) Council Summary packet.
Excerpts from the July 11, 2013 Commission meeting minutes as related to this consideration of
this matter are also attached for review.
Budget Issues:
There are no budget issues to consider.
Council Goals:
Strategic:
1. We will proceed aggressively with implementation of City's redevelopment plans.
4. We will improve the city's image.
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
Member introduced the following resolution and moved its
adoption:
RESOLUTION NO. 2013 -
RESOLUTION REGARDING THE RECOMMENDED DISPOSITION OF
PLANNING COMMISSION APPLICATION NO. 2013-011 SUBMITTED BY
THE LUTHER COMPANY, LLLP, FOR A PUD AMENDMENT TO THE 2008
LUTHER AUTO TOYOTA-HONDA PLANNED UNIT DEVELOPMENT, BY
INCORPORATING THREE PARCELS OF LAND AREA (TOTALING 1.78
ACRES) INTO THE NEW HONDA AUTOMOBILE DEALERSHIP SITE,
WHICH IS PART OF THE APPROVED 2008 LUTHER AUTO HONDA-
TOYOTA PLANNED UNIT DEVELOPMENT, AND INCLUDES A PROPOSED
SITE DEVELOPMENT PLAN TO PROVIDE ADDITIONAL VEHICLE
STORAGE AND PARKING AREA FOR THE HONDA DEALERSHIP
(LOCATED AT 3955, 4001 & 4007 — 69 th AVENUE NORTH)
WHEREAS, Planning Commission Application No. 2013-011 submitted by The
Luther Company, LLLP, requesting PUD Amendment to the 2008 Luther Auto Toyota-Honda
Planned Unit Development, by incorporating three parcels of land area (totaling 1.78 Acres) into
the New Honda Automobile Dealership Site, which is part of the approved 2008 Luther Auto
Honda-Toyota Planned Unit Development, and includes a proposed Site Development Plan to
Provide Additional Vehicle Storage and Parking Area for the Honda Dealership, for the properties
located at 3955, 4001 & 4007 — 69 th Avenue North); and
WHEREAS, the Planning Commission held a duly called public hearing on July
11, 2013, whereby a planning report was presented and public testimony regarding the rezoning
and planned unit development amendment and its related proposed site development plan were
received; and
WHEREAS, the current zoning of R3 (Multiple Family Residence) district and
underlying land use of SF-Single Family, as identified in the 2030 Comprehensive Plan would not
allow the redevelopment of this site as planned by The Luther Company under such zoning and
land use category; and
WHEREAS, the City of Brooklyn Center is reviewing under separate application
and public hearing process a land use amendment to the current 2030 Comprehensive Plan in order
to change the current land use designation from "SF-Single Family" to "RB-Retail Business"; and
WHEREAS, subject to a successful outcome of this land use amendment action and
rezoning applications, the City would allow the approval of this proposed Planned Unit
Development Amendment as comprehended under this Planning Application No. 2013-011; and
RESOLUTION NO. 2013 -
WHEREAS, the Planning Commission considered the planned unit development
amendment request in light of all testimony received, the guidelines for evaluating a planned unit
development amendment as contained in Section 35-355 of the City's Zoning Ordinance.
AND WHEREAS, the Planning Advisory Commission of the City of Brooklyn
Center does hereby recommend to the City Council that Application No. 2013-011 submitted by
The Luther Company, LLLP be approved based upon the following findings:
1.The PUD Amendment as presented appears to be a reasonable request and
redevelopment of this land area, and the reduced parking setback and
buffer requirements can be allowed due to the mitigation plans by the
Developer in providing the screening and landscaping as presented in the
proposed site development plans;
2.The Planned Unit Development Amendment is compatible with the
standards, purposes and intent of the Planned Unit Development section of
the City's Zoning Ordinance
3.The Planned Unit Development Amendment proposal will allow for the
utilization of the land in question in a manner which is compatible with,
complimentary to and of comparable intensity to adjacent land uses as well
as those permitted on surrounding land.
4.The utilization of the property as proposed under the Planned Unit
Development Amendment is considered a reasonable use of the property
and will conform with ordinance standards, except for the allowance of
reduced parking setbacks from 35-feet to 15-feet along the east boundary
line and from 35-feet to 25-feet along the south boundary line.
5.The modifications from the Zoning Ordinance standards as noted in No. 4
above are justified on the basis of the development being an appropriate
redevelopment of this area and that they are offset or mitigated by various
factors contained in the approved development plan.
6.The Planned Unit Development Amendment proposal is considered
consistent with the recommendations of the City's Comprehensive Plan for
this area of the city.
7. The Planned Unit Development proposal appears to be a good long range
use of the existing land and this redevelopment can be considered an asset
to the community.
RESOLUTION NO. 2013 -
8. Based upon the above considerations, it is believed that the guidelines for
evaluating Planned Unit Development as contained in Section 35-355 of
the City's Zoning Ordinance are met and the proposal is, therefore, in the
best interest of the community.
AND BE IT FURTHER RESOLVED by the Planning Advisory Commission of the
City of Brooklyn Center, that Application No. 2013-011 submitted by The Luther Company, LLLP
requesting Plarmed Unit Development Amendment to the 2008 Luther Auto Brookdale Honda-
Toyota PUD, be approved subject to the following conditions and additional PUD standards:
1.The Developer shall be allowed reduced setbacks for the vehicle
storage/parking area comprehended under this amended PUD Site and
Development Plan, from 35-feet to 15-feet along the east boundary line; and
from 35-feet to 25-feet along the south boundary line.
2.The Developer shall submit for future Planning Commission review the
final site development plan of this vehicle parking/storage area. The plans
shall include or acknowledge the extension of underground inigation
systems to cover boulevard areas, including all areas inside and outside the
new walls and/or fences.
3.No land disturbance or building permit will be issued for construction of the
proposed parking area or any improvements in this area, until the Developer
combines the three lots subject to this amendment process into one single -
use lot with Lot 1, Block 1, Bri Mar Second Addition (Honda Dealership
Lot) or steps have been made by the Developer to make application for
completing the subdivision plat.
4.All conditions noted in the City Engineer's Review Memorandum (dated
07/02/2013) and all other subsequent or updated conditions required by the
City Engineer are submitted and/or fulfilled.
5. The Developer shall enter into a PUD agreement with the City of Brooklyn
Center to be reviewed and approved by the City Attorney prior to the
issuance of building permits.
NOW THEREFORE BE IT RESOLVED, the City Council of the City of Brooklyn
Center, that Application No. 2012-011 submitted by The Luther Company, LLLP requesting
Planned Unit Development Amendment to the 2008 Luther Auto Brookdale Honda-Toyota PUD,
be approved subject to the conditions and standards as memorialized herein.
RESOLUTION NO. 2013 -
July 22, 2013
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.
MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION
JULY 11, 2013
APPLICATION NO. 2013-010 and 2013-011 THE LUTHER COMPANY, LLLP
Chair Burfeind introduced Application Nos. 2013-010 and 2013-011, a request to rezone the
three parcels from R3 (Multiple Family Residence) District to PUC/C2 (Planned Unit
Development/Commerce) District and a request for PUD Amendment approval to the 2008 Luther
Auto Toyota-Honda Planned Unit Development, By Incorporating Three Parcels of Land Area
(Totaling 1.78 Acres) into the New Honda Automobile Dealership Site, which is part of the
approved 2008 Luther Auto Honda-Toyota Planned Unit Development, and includes a proposed
Site Development Plan to Provide Additional Vehicle Storage and Parking Area for the Honda
Dealership (All For The Properties Located at 3955, 4001 & 4007 — 69 th Avenue North)
Mr. Benetti provided a brief history of the property involved and reviewed the properties
acquired by the Luther Company as part of the redevelopment of the site(s) which are part of the
rezoning. Mr. Benetti further reviewed the city's Rezoning Evaluation Policy and Review
Guidelines as they relate to this application. He further provided analysis of the PUD
amendment including the following:
The original 2008 Luther Brookdale Honda-Toyota PUD was approved based on the following
considerations:
1)The rezoning of the entire planned development site from C2 (Commerce) and R3
(Multiple Family Residence) to new PUD/C2 (Planned Unit Development/Commerce)
District.
2)The creation of two new lots under a new Bri-Mar 2' Addition, specifically:
a)Lot 1, Block 1, Bri Mar 2 ' Addition (the northerly lot) consisting of 8.17 acres,
reserved for the new Brookdale Honda Dealership, addressed as 6800 Brooklyn
Boulevard; and
b)Lot 2, Block 1, Bri Mar 2' Addition (southerly lot), consisting of 8.23 acres, •
reserved for the development of a new Toyota dealership, addressed as 6700
Brooklyn Boulevard.
3)The development of a new Honda dealership facility with 53,277 sq. ft. of showroom,
office, service operation and storage facility; and a new (separate) Toyota dealership
facility with 56,521 sq. ft. of showrooms, office, service operation and storage facilities.
4)Allowing an automobile repair facility abutting R-1, R-2 or R-3 zoned property;
5)Waiving the requirement to combine 4215- 69 th Avenue North into a single parcel with
6800 Brooklyn Boulevard because of common ownership and common use; and
6)Allowing a slight encroachment into the 15 ft. green strip at the southwest corner of the
Toyota site to allow a decorative main display pad with a pergola and a fence and a
"Welcome to Brooklyn Center" ground message.
Page 3
7-11-13
MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION
JULY 11, 2013
In 2011 Luther Company requested subdivision plat approval of their proposed Bri Mar 2h d
Addition, which replatted five parcels into the two, larger lots. Luther also submitted a request
for minor amendment to the previously approved 2008 planned unit development (PUD) with the
following modifications:
1)Allow the Honda dealership building to be reduced from 53,277 sf. to 52,228 sf.;
2)Allow the Toyota dealership building to be reduced from 56,521 sf. to 53,830 sf.;
3)Allow the two dealership building to modify their original footprint (overall shapes)
and readjust their positions on the new individual lots;
4)Minor parking lot improvementmodifications; and
5) Revise the original 2008 preliminary plat submittal of Bri Mar 2 ' Addition by
readjustment of lot lines between the Honda and Toyota dealership sites; and include
the former Pilgrim Cleaners parcel (4215 69 th Avenue N.) into the Honda lot.
Both the PUD Amendment and Bri-Mar 2 nd Addition plat were approved that same year, and
construction of the two dealership facilities began in the latter part of 2011 and completed in late
2012.
Mr. Benetti explained that under this PUD amendment, Luther is requesting approval to
incorporate three newly acquired residential lots into the approved PUD.
Commissioner Christensen stated there was a previous discussion about a reduced buffer on the
south side of the property which seems to be close to one of the townhomes. Mr. Benetti stated
there will be a 10 ft. screen wall along the property line bordering the neighboring townhomes.
There was further discussion regarding the screening and buffering proposed for the site.
PUBLIC HEARING — APPLICATION NO. 2013-010
There was a motion by Commissioner Christensen, seconded by Commissioner Morgan, to open
the public hearing on Application No. 2013-010, at 7:31 p.m. The motion passed unanimously.
Chair Burfeind called for comments from the public.
Ms. Melina Garcia, 6913 France Ave N, and April Heckard, 6907 France Ave N, stated they
received a notice about the meeting and are here to express their concern regarding the
application. They feel the business is now encroaching into the residential area and will create
additional traffic in the area. They are also concerned about the lighting on the site and how it
will affect their property. They are both new homeowners and feel even with additional
buffering, their homes will not feel the same. They stated they felt after getting a notice about
the meeting they would have Some input but feel that this is already a done deal.
Ms. Garcia and Ms. Heckard asked for further information regarding the previously approved
plan. Mr. Benetti explained the history of the two new Toyota and Honda auto dealerships
Page 4
7-11-13
MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION
JULY 11, 2013
recently constructed. He further described the process involved in amending the previously
approved PUD.
Ms. Garcia and Ms. Heckard stated they are concerned with flood lights pouring onto their
property if this is approved. Mr. Eitel explained that this area is proposed for parking of vehicles
only and with the width of 69 th Avenue North, the neighbors on the north side of 69 th Avenue
should have no impact from lighting on the site. He added that the lights would be required to
project downward.
Ms. Garcia asked if there is any consideration to add landscaping on the site and not just the big
concrete wall. Mr. Benetti replied there would be additional landscaping on the site to include
trees, shrubs, etc. to provide aesthetic, buffering and screening improvements.
Ms. Heckard asked about access to the site. Mr. Benetti responded all access points to the site
will be through the Honda site and no additional access to 69' will be provided. He added the
driveways to the single family homes that were demolished will be removed along 69 th Avenue.
Mr. Eitel stated the city's goal is to maintain the residential integrity of the surrounding
neighborhoods and the City is sensitive to the points being raised.
Ms. Garcia asked why the height of the wall changes on the site. Mr. Eitel explained the
screening along 69 th and France will be 8 ft. in height and drops down to 6 ft. further west.
Ms. Linda McGinty, Luther Companies, thanked the residents who took the time to come here.
She stated there were some requirements such as no overhead paging and lighting on the site
must meet certain levels so as to not cause glare. She added if the lighting significantly impacts
their livability they should contact her because they want to be a good neighbor. She also
clarified they are attempting to provide additional parking on the site in order to allow
development of the VW dealership on the west side of Brooklyn Boulevard which they are
currently using for storage of vehicles.
CLOSE PUBLIC HEARING
There was a motion by Commissioner Christensen, seconded by Commissioner Schonning, to
close the public hearing on Application No. 2013-010. The motion passed unanimously.
PUBLIC HEARING — APPLICATION NO. 2013-011
There was a motion by Commissioner Schonning, seconded by Commissioner Christensen, to
open the public hearing on Application No. 2013-011, at 8:02 p.m. The motion passed
unanimously.
Chair Burfeind called for comments from the public.
Ms. McGinty, Luther Companies, pointed out an item from Steve Jankowski's report, Item No.
18, stated a cross access agreement is required between two properties. She stated there is going
to be one lot, not two, so no cross access agreement should be required.
Mr. Eitel replied staff acknowledges this agreement may be an error and will be corrected.
Page 5
7-11-13
MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION
JULY 11, 2013
Ms. Melina Garcia, 6913 France Ave N, and April Heckard, 6907 France Ave N asked for
clarification on the second application.
Chari Burfeind explained there were two separate applications and public hearings, one is for
Rezoning and the second is for the PUD amendment.
Ms. Garcia asked if there were any plans by the car dealerships to move or expand any further.
Mr. Benetti responded the Luther Companies has invested heavily in the City and they do not
anticipate them walking away from the site or the business since they do very well. He also
stated there are no long range plans beyond what is being presented tonight.
Mr. Eitel stated the median area along 69 th Avenue North is maintained by the city and
improvements to the landscaping will occur if needed.
CLOSE PUBLIC HEARING
There was a motion by Commissioner Morgan, seconded by Commissioner Christensen, to close
the public hearing on Application No. 2013-011. The motion passed unanimously.
The Chair called for further discussion or questions from the Commissioners.
Commissioner Christensen stated he would suggest the applicant and staff get together to verify
and confirm the size and locations of fences and screening and work with the neighbors for an
amicable solution.
Chair Burfeind stated the public hearings are for the residents to voice their concerns and he
appreciates them coming out and encourages them to continue to voice their opinion and talk to
the applicant further. He pointed out the Commission is an advisory body and the City Council
makes all final decisions.
Commissioner Christensen asked about the brightness of the lighting on the site.
Mr. Hoang replied they will have the capability to dim the lights at certain times of the night,
however, with security concerns, they must keep the lights on at all times. He added they
attempt to make the lighting as uniform as possible and the heights of the poles can also be
lowered to create less glare on the site. He added there is a city lighting standard which will be
met and there won't be any light shining on surrounding properties.
The Commissioners interposed no objections to approval of the Application.
ACTION TO RECOMMEND APPROVAL OF PLANNING COMMISSION RESOLUTION
NO. 2013-11 REGARDING THE RECOMMENDED DISPOSITION OF PLANNING
COMMISSION APPLICATION NO. 2013-010 AND 2013-011 SUBMITTED BY THE
LUTHER COMPANY, LLLP TO REZONE PROPERTIES FROM R3 (MULTIPLE FAMILY
RESIDENCE) TO PUD/C2 (PLANNED UNIT DEVELOPMENT/COMMERCE) DISTRICT
AND
PUD AMENDMENT TO THE 2008 LUTHER AUTO TOYOTA-HONDA PLANNED UNIT
Page 6
7-11-13
MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION
JULY 11, 2013
DEVELOPMENT, BY INCORPORATING THREE PARCELS OF LAND AREA (TOTALING
1.78 ACRES) INTO THE NEW HONDA AUTOMOBILE DEALERSHIP SITE, WHICH IS
PART OF THE APPROVED 2008 LUTHER AUTO HONDA-TOYOTA PLANNED UNIT
DEVELOPMENT, ANI) INCLUDES A PROPOSED SITE DEVELOPMENT PLAN TO
PROVIDE ADDITIONAL VEHICLE STORAGE AND PARKING AREA FOR THE HONDA
DEALERSHIP (ALL FOR THE PROPERTIES LOCATED AT 3955, 4001 & 4007 — 69 th
AVENUE NORTH)
There was a motion by Commissioner Schonning, seconded by Commissioner Christensen, to
approve Planning Commission Resolution No. 2013-11.
Voting in favor: Chair Burfeind, Commissioners Christensen, and Schonning
And the following voted against the same: Morgan and Parks
The motion passed.
The Council will consider the application at its July 22, 2013 meeting. The applicant must be
present. Major changes to the application as reviewed by the Planning Commission will require
that the application be returned to the Commission for reconsideration.
Page 7
7-11-13
City Council Agenda Item No. 9c
COUNCHI ITEM MEMORANDUM
DATE: July 22, 2013
TO: Curt Boganey, City Manager
FROM: Tim Benetti, Planning and Zoning Specialist
THROUGH: Gary Eitel, Director of Business and Development AL
SUBJECT: Resolution Regarding the Recommended Disposition of Planning Application No.
2013-010 - Submitted by the Luther Company, LLLP to Rezone Properties from
R3-Multiple Family Residence to PUD/C2-Planned Unit Development/
Commerce District
— AND-
Consideration of An Ordinance Amending Chapter 35 of the City Code of
Ordinances Regarding the Zoning Classification of Certain Land Generally
Located at 3955, 4001 & 4007— 69 1h Avenue North.
- Motion to Approve First Reading and Set Second Reading and Public Hearing
for August 12, 2013
Recommendation:
It is recommended that the City Council, following consideration of this item, adopt the
Resolution regarding the recommended disposition of Planning Commission Application No.
2013-010, submitted by the Luther Company, LLLP to rezone properties from R3-Multiple
Family Residence to PUD/C2-Planned Unit Development/Commerce District, for the properties
located at 3955, 4001 & 4007 — 69 th Avenue North. Following this action, it is further
recommended the Council consider the first reading of the attached draft Ordinance by making a
Motion to approve first reading and set second reading and public hearing for August 12, 2013.
Background:
On July 11, 2013 the Planning Commission reviewed under separate public hearings Planning
Commission Application Nos. 2013-010 and 2013-011, submitted by the Luther Company, LLLP
for Rezoning from R3-Multiple Family to PUD/C2 Planned Unit Development/Commerce; and an
amendment to the 2008 Luther Auto Toyota-Honda Planned Unit Development project.
At the June 8, 2013 meeting, the City Council adopted Resolution No. 2013-74, which granted
preliminary approval of a proposed land use amendment to the 2030 Comprehensive Plan from
SF-Single Family to RB-Retail Business, relative to the subject area. The land use amendment
application has been submitted to the Metropolitan Council and is currently undergoing official
review.
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for people and preserves the public trust
COUNCIL ITEM MEMO ' ANDUM
By adopting this Resolution, the City Council is taking the first steps in approving the request by
The Luther Company to rezone these properties. In setting the next public hearing date for
August 12, 2013, the City Council will consider under new public hearing and 2 ' Reading of the
proposed Ordinance to amend Chapter 35 — Zoning, along with amending the official Zoning
Map for the City of Brooklyn Center.
At this August 12, 2013 City Council meeting, the anticipated considerations related to this
overall PUD Amendment requests should include the following:
1)final approval of the land use amendment change from SF-Single Family to RB-
Retail Business;
2)final approval (adoption) of the Ordinance Amendment to Chapter 35 — Zoning
(amending the official Zoning Map); and
3) final approval of the amended Site and Development Plan of the 2008 Luther Auto
Toyota-Honda Planned Unit Development project.
Staff anticipates a decision or finding from the Metropolitan Council on the land use change
prior to the August 12 th meeting. If for any reason this land use decision has not been made by
the Met Council prior this second public hearing date, the City Council may still proceed with
approving the rezoning, but direct city staff to delay publication of the ordinance until said
decision has been made [by the Met Council].
Attached for review is Planning Commission Resolution No. 2013-11, in which the Commission
provided a favorable recommendation of the proposed rezoning request and preliminary approval
of the Planned Unit Development Amendment. Also included with this resolution is a copy of
the July 11, 2013 planning report (combined) regarding Planning Commission Application Nos.
2013-010 and 2013-011, which provides background information; separate analysis of the
rezoning and PUD amendment requests; along with certain findings and recommendations.
Excerpts from the July 11, 2013 Commission meeting minutes as related to this consideration of
this matter are also attached for review.
Budget Issues:
There are no budget issues to consider.
Council Goals:
Strategic:
1. We will proceed aggressively with implementation of City's redevelopment plans.
4. We will improve the city's image.
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for people and preserves the public trust
Member introduced the following resolution and moved its
adoption:
RESOLUTION NO. 2013 -
RESOLUTION REGARDING THE RECOMMENDED DISPOSITION OF
PLANNING COMMISSION APPLICATION NO. 2013-010 SUBMITTED BY
THE LUTHER COMPANY, LLLP TO REZONE PROPERTIES FROM R3-
MULTIPLE FAMILY RESIDENCE TO PUD/C2-PLANNED UNIT
DEVELOPMENT/COMMERCE DISTRICT (LOCATED AT 3955, 4001 & 4007
— 69 th AVENUE NORTH)
WHEREAS, Planning Commission Application No. 2013-010 submitted by The
Luther Company, LLLP, requesting the rezoning from R3 (Multiple Family Residence) to
PUD/C2 (Planned Unit Development/Commerce) District, for the properties located at 3955,
4001 & 4007 — 69th Avenue North; and
WHEREAS, the proposal comprehends the rezoning of the above mentioned
properties to facilitate the planned and future redevelopment of the three parcels by incorporating
the properties into the 2008/2011 Luther Brookdale Honda-Toyota PUD, to create additional
vehicle parking and storage area for the Honda dealership site; and
WHEREAS, the Planning Commission held a duly called public hearing on July
11, 2013, whereby a planning report was presented and public testimony regarding the rezoning
and planned unit development amendment and its related proposed site development plan were
received; and
WHEREAS, the current zoning of R3 (Multiple Family Residence) district and
underlying land use of SF-Single Family, as identified in the 2030 Comprehensive Plan would not
allow the redevelopment of this site as planned by The Luther Company under such zoning and
land use category; and
WHEREAS, the City of Brooldyn Center is reviewing under separate application a
land use amendment to the current 2030 Comprehensive Plan in order to change the current land
use designation from "SF-Single Family" to "RB-Retail Business"; and
WHEREAS, subject to a successful outcome of this land use amendment action, the
City would allow the recommended rezoning of these properties to take place; and
WHEREAS, the Planning Commission considered the rezoning request in light of
all testimony received, the guidelines for evaluating rezoning contained in Section 35-208 of the
City's Zoning Ordinance, along with the provisions and standards of the Planned Unit
Development district contained in Section 35-355 of the City's Zoning Ordinance; and
RESOLUTION NO. 2013 -
AND WHEREAS, the Planning Commission of the City of Brooldyn Center does
hereby recommend to the City Council that Application No. 2012-010 submitted by The Luther
Company, LLLP be approved based upon the following findings:
1.The proposed rezoning appears to demonstrate a clear and public need or
benefit to the community and regional area, as it will improve the
appearance of the city and enhance the quality of life, property values and
civic pride in this neighborhood area;
2.The rezoning and its related development proposal will not be a detriment
to the neighborhood, and should provide a positive effect on the
community; subject to the site plan issues being fully resolved by the City
and Applicants;
3.The rezoning will facilitate the redevelopment plan of this site, which will
be compatible with the goals and policies of the City's Comprehensive
Plan and underlying land use plan.
4.The proposed zoning is consistent and compatible with the surrounding
land use classifications;
5.The proposed rezoning will provide an opportunity to provide an ideal
redevelopment of a targeted area for the community's commercial sector,
especially around the Brooklyn Boulevard and 69 th Avennue North
corridor areas, and will help stimulate new investments in the
neighborhood and community.
6.The proposed rezoning will enhance and strengthen City Center's
economic viability and status in the regional market place by the
following supporting statements:
a)helps to increase employment opportunities, tax base and
eliminates a vacant commercial building site;
b)provides for the redevelopment of a potentially obsolete and
underutilized site into a use(s) that address needs in the
marketplace;
c) The proposed rezoning and related development plan will provide
an opportunity to create a new zoning district provides for a more
flexible use of the commercial site and which encourages good
design.
RESOLUTION NO. 2013 -
NOW THEREFORE BE IT RESOLVED, the City Council of the City of Brooklyn
Center, that Application No. 2012-010 submitted by The Luther Company, LLLP requesting to
rezone from R3 (Multiple Family Residence) to PUD/C2 (Planned Unit Development/Commerce)
District, the properties located at 3955, 4001 & 4007 — 69 th Avenue North, may be approved
subject to the following conditions and considerations:
1.The Metropolitan Council approval of the land use amendment change of
this site from "SF-Single Family" to "RB-Retail Business" designation.
2.The rezoning shall become valid only if the City Council adopts the
proposed land use amendment change (under separate consideration), and
accepts and approves the final development/site and building plans for this
Planned Unit Development.
3.The rezoning is subject to the successful acceptance and approval by the
City Council of the final development/site plan proposed for the subject
site.
4.All conditions noted in the City Engineer's Review Memorandum (dated
07/02/2013) and all other subsequent or updated conditions required by
the City Engineer are submitted and/or fulfilled.
July 22, 2013
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
CITY OF BROOKLYN CENTER
Notice is hereby given that a public hearing will be held on the 12th day of August , 2013, at
7:00 p.m. or as soon thereafter as the matter may be heard at the City Hall, 6301 Shingle Creek
Parkway, to consider an Ordinance Amending Chapter 35 of the City Ordinances Regarding
the Zoning Classification of Certain lands, generally located in the northwest quadrant section
of the City of Brooklyn Center, located at 3955, 4001 & 4007 — 69 th Avenue North.
Auxiliary aids for persons with disabilities are available upon request at least 96 hours in
advance. Please contact the City Clerk at (763) 569-3300 to make arrangements.
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 35 OF THE CITY CODE OF
ORDINANCES REGARDING THE ZONING CLASSIFICATION OF
CERTAIN LAND GENERALLY LOCATED IN THE NORTHWEST
QUADRANT SECTION OF THE CITY OF BROOKLYN CENTER,
LOCATED AT 3955, 4001 & 4007 — 69 th AVENUE NORTH.
THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS
FOLLOWS:
Section 1. Chapter 35 of the City Ordinances of the City of Brooklyn Center is hereby
amended in the following manner:
Section 35-1120. MULTIPLE FAMILY RESIDENCE DISTRICT (R3). The
following properties are hereby established as being within the (R3) Multiple Family
Residence District zoning classification:
Tract A, Registered Land Survey No. 806.
f -a line parallel with and distant 289.74 f
th-Avenue North, formerly County Road No. 130.
The City-owned land situated in that Part of Lot 3, Auditor's Subdivision No.
25, Hennepin County, Minnesota described as follows: Commencing at a
Point on the East Line of said Lot 3, 289.74 feet South of the centerline of 69 th
Avenue North (formerly County Road No. 130); thence West parallel with the
centerline of said 69 th Avenue North a distance of 150.34 feet; thence North
parallel with the East Line of said Lot 3 to the centerline of said 69' Avenue
North; thence East along the centerline of said 69 th Avenue North to the
Northeast Corner of said Lot 3, treating the said centerline of said 69 th Avenue
1
North as the North Line of said Lot 3; thence South along the East Line of said
Lot 3, 289.74 feet to the Place of Beginning. [Parcel I.D. No. 34-119-21-21-
0003 — Addr. 6831 France Avenue North].
Section 35-1240. PLANNED UNIT DEVELOPMENT DISTRICT (PUD).
The following properties are hereby established as being within a (PUD) Planned
Unit Development District zoning classification:
4. The following properties are designated as PUD/C2 (Planned Unit
Development/Commerce):
Tract A, Registered Land Survey No. 806, Hennepin County,
Minnesota. [Addr: 4007 — 69th Avenue North].
The East Half of That Part of Lot 3, Auditor's Subdivision No. 25,
Hennepin County, Minnesota described as follows: Commencing at a
Point on the East Line of Said Lot 3, 289.74 feet South of the
centerline of 69th Avenue North (formerly County Road No. 130)„
which Point is marked by a Judicial Landmark; thence West parallel
with the centerline of said 69th Avenue North, 300.68 feet for the
Point of commencement of the land to be herein described; thence
continuing West parallel with the centerline of said 69th Avenue
North, 150.34 feet; thence North parallel with the East Line of said Lot
to the centerline of said 69th Avenue North, treating said centerline as
the North Line of said Lot 3; thence East along the centerline of said
69th Avenue North, to its Intersection with a line running North and
South parallel with and distant 300.68 feet West of the East Line of
said Lot; thence South on the last mentioned parallel line to the Point
of Commencement of the land described herein. [Addr: 4001 — 69th
Avenue North]
That Part of Lot 3, Auditor's Subdivision No. 25, Hennepin County,
Minnesota described as follows: Commencing at a Point on the East
Line of said Lot 3, 289.74 feet South of the centerline of 69th Avenue
North (formerly County Road No. 130); thence West parallel with the
centerline of 69th Avenue North a distance of 300.68 feet; thence
North parallel with the East line of said Lot 3 to the centerline of 69th
Avenue North; thence East along the centerline of 69th Avenue North
to the Northeast Comer of said Lot 3, treating the said centerline of
69th Avenue North as the North Line of said Lot 3; thence South along
the East Line of said Lot 3, 289.74 feet to the Place of Beginning;
Except That Part Thereof Described as follows: The City-owned land
situated in that Part of Lot 3, Auditor's Subdivision No. 25, Hennepin
County, Minnesota described as follows: Commencing at a Point on
2
the East Line of said Lot 3, 289.74 feet South of the centerline of 69th
Avenue North (formerly County Road No. 130); thence West parallel
with the centerline of said 69th Avenue North a distance of 150.34
feet; thence North parallel with the East Line of said Lot 3 to the
centerline of said 69th Avenue North; thence East along the centerline
of said 69th Avenue North to the Northeast Corner of said Lot 3,
treating the said centerline of said 69th Avenue North as the North
Line of said Lot 3; thence South along the East Line of said Lot 3,
289.74 feet to the Place of Beginning. [Addr: 3955 — 69th Avenue
North].
Section 2. This ordinance shall become effective after adoption and upon thirty days
following its legal publication.
Adopted this day of , 2013.
Mayor
ATTEST:
City Clerk
Date of Publication
Effective Date
(Note: (Strikeout text indicates matter to be deleted, while underline indicates new matter.)
3
MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION
JULY 11, 2013
APPLICATION NO. 2013-010 and 2013-011 THE LUTHER COMPANY LLLP
Chair Burfeind introduced Application Nos. 2013-010 and 2013-011, a request to rezone the
three parcels from R3 (Multiple Family Residence) District to PUC/C2 (Planned Unit
Development/Commerce) District and a request for PUD Amendment approval to the 2008 Luther
Auto Toyota-Honda Planned Unit Development, By Incorporating Three Parcels of Land Area
(Totaling 1.78 Acres) into the New Honda Automobile Dealership Site, which is part of the
approved 2008 Luther Auto Honda-Toyota Planned Unit Development, and includes a proposed
Site Development Plan to Provide Additional Vehicle Storage and Parking Area for the Honda
Dealership (All For The Properties Located at 3955, 4001 & 4007 — 69 th Avenue North)
Mr. Benetti provided a brief history of the property involved and reviewed the properties
acquired by the Luther Company as part of the redevelopment of the site(s) which are part of the
rezoning. Mr. Benetti further reviewed the city's Rezoning Evaluation Policy and Review
Guidelines as they relate to this application. He further provided analysis of the PUD
amendment including the following:
The original 2008 Luther Brookdale Honda-Toyota PUD was approved based on the following
considerations:
1)The rezoning of the entire planned development site from C2 (Commerce) and R3
(Multiple Family Residence) to new PUD/C2 (Planned Unit Development/Commerce)
District.
2)The creation of two new lots under a new Bri-Mar 2" Addition, specifically:
a)Lot 1, Block 1, Bri Mar 2nd (the northerly lot) consisting of 8.17 acres,
reserved for the new Brookdale Honda Dealership, addressed as 6800 Brooklyn
Boulevard; and
b)Lot 2, Block 1, Bri Mar 2" Addition (southerly lot), consisting of 8.23 acres,
reserved for the development of a new Toyota dealership, addressed as 6700
Brooklyn Boulevard.
3)The development of a new Honda dealership facility with 53,277 sq. ft. of showroom,
office, service operation and storage facility; and a new (separate) Toyota dealership
facility with 56,521 sq. ft. of showrooms, office, service operation and storage facilities.
4)Allowing an automobile repair facility abutting R-1, R-2 or R-3 zoned property;
5)Waiving the requirement to combine 4215- 69 th Avenue North into a single parcel with
6800 Brooklyn Boulevard because of common ownership and common use; and
6)Allowing a slight encroachment into the 15 ft. green strip at the southwest corner of the
Toyota site to allow a decorative main display pad with a pergola and a fence and a
"Welcome to Brooklyn Center" ground message.
Page 3
7-11-13
MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION
JULY 11, 2013
In 2011 Luther Company requested subdivision plat approval of their proposed Bri Mar 2'd
Addition, which replatted five parcels into the two, larger lots. Luther also submitted a request
for minor amendment to the previously approved 2008 planned unit development (PUD) with the
following modifications:
1)Allow the Honda dealership building to be reduced from 53,277 sf. to 52,228 sf.;
2)Allow the Toyota dealership building to be reduced from 56,521 sf. to 53,830 sf.;
3)Allow the two dealership building to modify their original footprint (overall shapes)
and readjust their positions on the new individual lots;
4)Minor parking lot improvement modifications; and
5) Revise the original 2008 preliminary plat submittal of Bri Mar 2 nd Addition by
readjustment of lot lines between the Honda and Toyota dealership sites; and include
the former Pilgrim Cleaners parcel (4215 69 th Avenue N.) into the Honda lot.
Both the PUD Amendment and Bri-Mar 2 nd Addition plat were approved that same year, and
construction of the two dealership facilities began in the latter part of 2011 and completed in late
2012.
Mr. Benetti explained that under this PUD amendment, Luther is requesting approval to
incorporate three newly acquired residential lots into the approved PUD.
Commissioner Christensen stated there was a previous discussion about a reduced buffer on the
south side of the property which seems to be close to one of the townhomes. Mr. Benetti stated
there will be a 10 ft. screen wall along the property line bordering the neighboring townhomes.
There was further discussion regarding the screening and buffering proposed for the site.
PUBLIC HEARING — APPLICATION NO. 2013-010
There was a motion by Commissioner Christensen, seconded by Commissioner Morgan, to open
the public hearing on Application No. 2013-010, at 7:31 p.m. The motion passed unanimously.
Chair Burfeind called for comments from the public.
Ms. Melina Garcia, 6913 France Ave N, and April Heckard, 6907 France Ave N, stated they
received a notice about the meeting and are here to express their concern regarding the
application. They feel the business is now encroaching into the residential area and will create
additional traffic in the area. They are also concerned about the lighting on the site and how it
will affect their property. They are both new homeowners and feel even with additional
buffering, their homes will not feel the same. They stated they felt after getting a notice about
the meeting they would have Some input but feel that this is already a done deal.
Ms. Garcia and Ms. Heckard asked for further information regarding the previously approved
plan. Mr. Benetti explained the history of the two new Toyota and Honda auto dealerships
Page 4
7-11-13
MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION
JULY 11, 2013
recently constructed. He further described the process involved in amending the previously
approved PUD.
Ms. Garcia and Ms. Heckard stated they are concerned with flood lights pouring onto their
property if this is approved. Mr. Eitel explained that this area is proposed for parking of vehicles
only and with the width of 69 th Avenue North, the neighbors on the north side of 69 th Avenue
should have no impact from lighting on the site. He added that the lights would be required to
project downward.
Ms. Garcia asked if there is any consideration to add landscaping on the site and not just the big
concrete wall. Mr. Benetti replied there would be additional landscaping on the site to include
trees, shrubs, etc. to provide aesthetic, buffering and screening improvements.
Ms. Heckard asked about access to the site. Mr. Benetti responded all access points to the site
will be through the Honda site and no additional access to 69 th will be provided. He added the
driveways to the single family homes that were demolished will be removed along 69 th Avenue.
Mr. Eitel stated the city's goal is to maintain the residential integrity of the surrounding
neighborhoods and the City is sensitive to the points being raised.
Ms. Garcia asked why the height of the wall changes on the site. Mr. Eitel explained the
screening along 69 th and France will be 8 ft. in height and drops down to 6 ft. further west.
Ms. Linda McGinty, Luther Companies, thanked the residents who took the time to come here.
She stated there were some requirements such as no overhead paging and lighting on the site
must meet certain levels so as to not cause glare. She added if the lighting significantly impacts
their livability they should contact her because they want to be a good neighbor. She also
clarified they are attempting to provide additional parking on the site in order to allow
development of the VW dealership on the west side of Brooklyn Boulevard which they are
currently using for storage of vehicles.
CLOSE PUBLIC HEARING
There was a motion by Commissioner Christensen, seconded by Commissioner Schonning, to
close the public hearing on Application No. 2013-010. The motion passed unanimously.
PUBLIC HEARING — APPLICATION NO. 2013-011
There was a motion by Commissioner Schonning, seconded by Commissioner Christensen, to
open the public hearing on Application No. 2013-011, at 8:02 p.m. The motion passed
unanimously.
Chair Burfeind called for comments from the public.
Ms. McGinty, Luther Companies, pointed out an item from Steve Jankowski's report, Item No.
18, stated a cross access agreement is required between two properties. She stated there is going
to be one lot, not two, so no cross access agreement should be required.
Mr. Eitel replied staff acknowledges this agreement may be an error and will be corrected.
Page 5
7-11-13
MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION
JULY 11, 2013
Ms. Melina Garcia, 6913 France Ave N, and April Heckard, 6907 France Ave N asked for
clarification on the second application.
Chari Burfeind explained there were two separate applications and public hearings, one is for
Rezoning and the second is for the PUD amendment.
Ms. Garcia asked if there were any plans by the car dealerships to move or expand any further.
Mr. Benetti responded the Luther Companies has invested heavily in the City and they do not
anticipate them walking away from the site or the business since they do very well. He also
stated there are no long range plans beyond what is being presented tonight.
Mr. Eitel stated the median area along 69 th Avenue North is maintained by the city and
improvements to the landscaping will occur if needed.
CLOSE PUBLIC HEARING
There was a motion by Commissioner Morgan, seconded by Commissioner Christensen, to close
the public hearing on Application No. 2013-011. The motion passed unanimously.
The Chair called for further discussion or questions from the Commissioners.
Commissioner Christensen stated he would suggest the applicant and staff get together to verify
and confirm the size and locations of fences and screening and work with the neighbors for an
amicable solution.
Chair Burfeind stated the public hearings are for the residents to voice their concerns and he
appreciates them coming out and encourages them to continue to voice their opinion and talk to
the applicant further. He pointed out the Commission is an advisory body and the City Council
makes all final decisions.
Commissioner Christensen asked about the brightness of the lighting on the site.
Mr. Hoang replied they will have the capability to dim the lights at certain times of the night,
however, with security concerns, they must keep the lights on at all times. He added they
attempt to make the lighting as uniform as possible and the heights of the poles can also be
lowered to create less glare on the site. He added there is a city lighting standard which will be
met and there won't be any light shining on surrounding properties.
The Commissioners interposed no objections to approval of the Application.
ACTION TO RECOMMEND APPROVAL OF PLANNING COMMISSION RESOLUTION
NO. 2013-11 REGARDING THE RECOMMENDED DISPOSITION OF PLANNING
COMMISSION APPLICATION NO. 2013-010 AND 2013-011 SUBMITTED BY THE
LUTHER COMPANY, LLLP TO REZONE PROPERTIES FROM R3 (MULTIPLE FAMILY
RESIDENCE) TO PUD/C2 (PLANNED UNIT DEVELOPMENT/COMMERCE) DISTRICT
AND
PUD AMENDMENT TO THE 2008 LUTHER AUTO TOYOTA-HONDA PLANNED UNIT
Page 6
7-11-13
MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION
JULY 11, 2013
DEVELOPMENT, BY INCORPORATING THREE PARCELS OF LAND AREA (TOTALING
1.78 ACRES) INTO THE NEW HONDA AUTOMOBILE DEALERSHIP SITE, WHICH IS
PART OF THE APPROVED 2008 LUTHER AUTO HONDA-TOYOTA PLANNED UNIT
DEVELOPMENT, AND INCLUDES A PROPOSED SITE DEVELOPMENT PLAN TO
PROVIDE ADDITIONAL VEHICLE STORAGE AND PARKING AREA FOR THE HONDA
DEALERSHIP (ALL FOR THE PROPERTIES LOCATED AT 3955, 4001 & 4007 — 69 th
AVENUE NORTH)
There was a motion by Commissioner Schonning, seconded by Commissioner Christensen, to
approve Planning Commission Resolution No. 2013-11.
Voting in favor: Chair Burfeind, Commissioners Christensen, and Schonning
And the following voted against the same: Morgan and Parks
The motion passed.
The Council will consider the application at its July 22, 2013 meeting. The applicant must be
present. Major changes to the application as reviewed by the Planning Commission will require
that the application be returned to the Commission for reconsideration.
Page 7
7-11-13
11F7t , a"
BROOKLYN
CENTER
Planning Commission Report
Meeting Date: July 11, 2013 •Application Filed: 06/11/13
•Review Period (60-day) Deadline: 08/10/13
•Extension Declared: N/A
•Extended Review Period Deadline: N/A
Application No. 2013-010 & 2013-11
Applicant: The Luther Company, LLLP
Location: 3955, 4001 & 4007 — 69 th Avenue North
Request: Rezoning from R3 (Multiple Family Residence) to PUD/C2 (Planned Unit
Development/Commerce) District — AND - Planned Unit Development Amendment
INTRODUCTION
The Luther Company is requesting to rezone three parcels generally located east of the new
Luther Auto Honda dealership. The three single family parcels are locally addressed as 3955,
4001 & 4007 — 69 th Avenue North, and consists of 1.78 acres in total area.
As part of this rezoning request, Luther is also requesting a separate PUD Amendment to include
the proposed rezoned parcels into their Luther Toyota-Honda Planned Unit Development,
approved in 2008 and modified with additional approvals in 2011.
This report will provide background information, an analysis, and suggested recommendations to
this rezoning request. This item is being presented under a public hearing, with proper notice
published in the local newspaper and mailed to the surrounding property owners.
BACKGROUND
The Luther Company acquired all of the land for its new Honda-Toyota dealership businesses on
both sides of Brooklyn Boulevard, generally between 1-94 and 69 th Avenue North, as well as two
single family homes off of 69 th Avenue. This redevelopment included the remodeling and
expansion of the dealership at 6801 and 6837 Brooklyn Boulevard referred to as the "Luther
West Side Development" (Planning Commission Application No. 2008-003) plus the two new
automobile dealerships recently developed and completed on the adjacent properties, addressed
as 6700 and 6800 Brooklyn Boulevard ("Luther Auto East Side Development")
On July 17, 2008, the Planning Commission adopted Planning Commission Resolution No.
2008-005, which recommended the rezoning of the five (5) parcels owned by Luther Auto from
C-2 Commerce and R-3 Multiple Family to PUD/C-2 Planned Unit Development/Commerce.
This PUD also considered the overall development plan of the site, which illustrated the original
layout of the two dealership sites.
A majority of this Luther East Development was previously zoned C2 (Commerce) when
purchased by Luther, except for the two single-family sites at the northeast corner of the site,
which were zoned R3 Multiple Family Residence at that time. On July 28, 2008, the City
Council adopted Resolution No. 2008-81, which approved the rezoning and the new
development plan for the new Luther Auto Honda-Toyota Planned Unit Development. The
Council also approved the replatting of this land under the now completed and recorded "Bri
Rezoning -Luther
PC 07/11/2013
Page 1
Mar 2 nd Addition" plat.
The subject area is situated across from R1 Single Family Residence District, separated by a
fairly wide, 4-lane/divided roadway system (69 th Avenue); R3 Multiple Family Residence to the
east and south; and as noted previously the PUD/C2 zoning to the west. The R1 district across
the street is separated from this site by the four-lane divided roadway system of 69 th Avenue
North, which is nicely buffered by the extra wide right-of-way (note: the City acquired a number
of single-family residences in the late 1990's to provide for this wider width, and installed a 10-
foot trail and wooden screening fence along the abutting R1 residences along this roadway).
The adjacent R3 zoned parcel to the east of the subject site is owned by the City of Brooklyn
Center and contains the city's Water Tower No. 1. There are no plans to remove this tower or
convey any portion of this land to Luther. To the south of this site are the Victoria Townhouse
Apartments (6740 Grimes Avenue N.), which contain 48-units, serving primarily low to
moderate income individuals and families.
The three subject parcels under this consideration have also been acquired and are slated to be
cleared by Luther Auto to facilitate the expansion of their recently opened Honda dealership.
This area is planned to be converted into additional vehicle storage only. In order to include this
area into their auto development, the land must be rezoned. As noted, the new Luther
Honda/Toyota development was approved with an overall PUD/C2 (Planned Unit
Development/Commerce) district zoning, and these new lots need to take on this same zoning to
facilitate this expansion.
LUTHER HONDA - REZONING PARCELS
Rezoning -Luther
PC 07/11/2013
Page 2
ZONING DISTRICTS
IT-11 RI One Family Residence
_A R2 Two Family Residence
- I R3 Multiple Family Residence
R4 Multiple Family Residence
126 Multiple Family Residence
R6 Multiple Family Residence
R7 Multiple Family Residence
Elj CI Service/Office
EI CIA Sevice101fice
go C2 CommerceI= I-I Industrial Park
1.2 General Industry
IMF 01 Public Open Space
02 Public 8 Private Open Space
Oceirvice 8 Multiple
Family Re sidence
Units-, PUDIRI Planned e rn y
P
D misleannt/nleildulUtl?Ftamily
FD'UevDefolpnPileannUngliUce.itService
PUS/CIA Planned Unit
ma", DeveloprnentIOffice.Service
i%UD,.I ,C2prnPleannuildomUmniet m
K-1:4 OeUvDel lot pPrnlaennnteidndUunsi ttria 1 Park
tI1144 PUD-MIXED
IM Central Commerce Overlay District
This rezoning is unable to take place until the land use is amended, since all city zoning must be
consistent with the underlying land use for certain areas. As the Planning Commission is aware,
this proposed land use amendment was presented under separate request item by the City of
Brooklyn Center (on behalf of Luther) at the June 26 th regular meeting. This rezoning will only
become effective and subject to the official acceptance and adoption of this land use change by
the Met Council and Brooklyn Center City Council.
LAND USE & ZONING HISTORY
As noted in the June 26 th Planngin Report regarding the land use change, the subject lots has not
undergone any significant changes throughout the last four decades. In 1961, the subject site
was and most of the surrounding properties were zoned Single Family. The areas to the west of
the site (which contained the original car dealership lot) was zoned B-3 (General Business
District), which was the precursor to the City's current C2 Commerce District.
Sometime between 1970 and 1974, staff discovered the subject site and surrounding properties
were rezoned from R1-Single Family to R3-Multiple Family Residence. To the best of staffs
knowledge, this site and the surrounding parcels have remained under the R3 District since this
1974 Zoning Map publication.
Since 1982, the City three previous comprehensive plans identified this same area under a
general "Single Family" land use designation, even though the land was zoned R3 since at least
1974.
Rezoning -Luther
PC 07/11/2013
Page 3
ANALYSIS
As with all rezoning requests, the Planning Commission must review the rezoning proposal
based on the Rezoning Evaluation Policy and Review Guidelines contained in the zoning
ordinance. The policy states that rezoning classifications must be consistent with the City's
Comprehensive Plan and must not constitute "spot zoning", which is defined as a zoning
decision which discriminates in favor of a particular land owner and does not relate to the
Comprehensive Plan or accepted planning principals. Each rezoning proposal must be
considered on its merits and measured against the City's policy and against the various
guidelines, which have been established for rezoning review.
The following is a review of the rezoning guidelines contained in the zoning ordinance as we
believe they relate to the applicant's comments and their proposal:
a.Is there a clear and public need or benefit?
It is staffs opinion that this rezoning and related development plan for these three parcels
can be viewed as meeting a clear and public need or benefit to the community, as it is
consistent with the general redevelopment criteria established by the City and also
consistent with the City's Comprehensive Plan. The rezoning will provide an ideal
opportunity for the planned improvements by the Developer to their new Honda
dealership site, by helping to expand and install additional parking needed for this new
auto dealership. The redevelopment will provide an increase to the tax base in the
community and may provide additional full-time employment opportunities.
This rezoning and expansion will not be a detriment to the neighborhood, and should
have a positive effect on the community. The parking expansion and the combination of
the three parcels under a unified PUD designation rather than using the standard zoning,
provides the flexibility the Applicant seeks in expanding this site. Overall, this
development plan will be compatible with the goals and policies of the City's
Comprehensive Plan and underlying land use plan.
It is staffs opinion that this redevelopment proposal can be seen as meeting a clear and
public need or benefit if it is consistent with the redevelopment criteria established by the
City. The expanded redevelopment of this site will provide a balance to the overall
business needs of the community and the other needs of adjoining properties. The
redevelopment will provide an increase to the tax base in the community and may
provide additional full-time employment opportunities.
b.Is the proposed rezoning consistent and compatible with the surrounding land use
classifications?
It is staffs belief that the proposed rezoning will be consistent and compatible with those
surrounding uses, especially if the land use change is approved. Moreover, the zoning
provides additional setbacks and landscaping measures that provide buffers and screening
measures, which were implemented to alleviate any impacts to the surrounding uses.
Rezoning -Luther
PC 07/11/2013
Page 4
c.Can all proposed uses in the proposed zoning district be contemplated for
development of the subject property?
The subject site has been targeted for future expansion and incorporation into the
previously approved and adjacent Luther Auto PUD project. These lots have been or will
be cleared by the developer, and the City supports this business expansion into this area
and made part of the current planned unit development.
Under this proposed PUD and the related development/site plan, the proposed use as a
parking area is allowable and permitted [accessory] use in the C2 District. The creation
of this PUD will allow for limited flexibility to the Applicant in providing reduced buffer
requirements, which will be addressed under the Development/Site Plan review. The
City will identify and provide under a future PUD agreement certain restrictions and uses
allowed or approved for this site, and may identify and provide for needed standards or
requirements as the development dictates or as the Planning Commission and City
Council require.
d.Have there been substantial physical or zoning classification changes in this area
since the subject property was zoned?
In terms of physical and/or zoning classification changes, this area of Brooklyn
Boulevard and 69 th Avenue (including the subject site and the immediate surrounding
properties) has seen some of the most significant changes approved or experienced by the
City, especially the last 10-12 years.
In the early 1990's, the City commissioned a Brooklyn Boulevard Amenities Study,
which planned for certain roadway and amenity improvements along this corridor, from
1-694 northward. Brooklyn Boulevard began seeing improvement installed in 2000-2002
as part of the Hennepin County project, which included widening the roadway, new
medians, trails and sidewalks and decorative street lighting. The project also included the
City's coordination of various landscape amenities as part of this reconstruction, which
included landscaping nodes placed at the corners; colored concrete pavers; ornamental
iron fences; ornamental benches; landscaping islands, and ornamental pedestrian light
fixtures. Most of these improvements are evident today, especially in and around this
Brooklyn Blvd. and 69 th Avenue intersection.
In 2002, the "Boulevard Market" properties northwest of the subject site (directly across
from Brooklyn Boulevard) were developed, which included a rezoning of a number of R1
One Family Residence properties along with various commercial establishments zoned as
C2 (Commerce), all of which were combined (replatted) and rezoned into a new overall
PUD/C2 district. The PUD plans approved a 3,960 sf. Super-America convenience
store/gas station/car wash; a 4,230 sf. restaurant or retail building; a 4,538 sf. Culver's
Restaurant; and a 21,500 sf. multi-tenant retail building. Most of this development is
complete except for the 4,230 sf. retail site. As part of this PUD plan approvals, the City
authorized the reduction of parking/drive aisle setbacks and green strips along the
Brooklyn Boulevard corridor, plus a significant reduction in the 35-foot buffer
Rezoning -Luther
PC 07/11/2013
Page 5
requirements from the adjacent residential neighborhood.
Another significant change farther away, but near the area is the Northwest Family
Services Center/CEAP office improvements at the corner of Brooklyn Blvd. and 71 st
Avenue N. This new PUD allowed the use of specific setback standards to provide green
and open space areas from the existing neighborhood, flexibility in the location of interior
lot lines, parking and structured parking setbacks, and the ability to deviate from the
dedication of the standard side yard drainage and utility easements.
One of the most significant and recent change in the area occurred in 2011, when the City
re-authorized the PUD rezoning and an updated Development/Site and Building plans for
the new Luther Honda and Luther Toyota City dealerships.
As indicated previously in this report, the subject area has been guided as "SF Single
Family" and while starting out as zoned R1-Single Family during the 1960's, it was
inexplicably rezoned to R3 Multiple Family. The area continued to be used as single
family uses and the site was never investigated or researched by outside developer for
multiple family residential development, other than a proposal made in 1970 (which was
actually denied). The adjacent properties along Brooklyn Boulevard eventually saw
some changes, to both land use and zoning, but most of these changes were supported or
recognized as being acceptable due to the commercial corridor that is present along this
important city business corridor.
e.In the case of City initiated rezoning proposals, is there a broad public purpose
evident?
This evaluation criterion is not applicable in this case because it is not a City initiated
rezoning proposal, but rather a developer initiated proposal.
f.Will the subject property bear fully the ordinance development restrictions for the
proposed zoning district?
Staff believes the PUD Amendment proposal (and rezoning of the three parcels) will bear
fully the development restrictions for this Planned Unit Development without any
significant deviations or modifications from the standard ordinance requirements. The
property line abutments will have sufficient buffer, setback and screening as called for in
the ordinance.
g.Is the subject property generally unsuited for uses permitted in the present zoning
district with respect to size, configuration, topography or location?
The subject site currently contains 1.76 acres of land area, with one vacant single family
residence. The current zoning of R3 Multiple Family Residences would allow
approximately 14 units based on the required 5,400 sf. (land area) per unit. But with the
35-foot and 40-foot setback requirements, the buildable space becomes quite limited,
especially on these old, single family lots. A multi-family development also becomes
hindered or less attractive due to the median controlled 69 th Avenue roadway, which is
where access would need to be given. Acquisition or transferring of the lots to the
Rezoning -Luther
PC 07/11/2013
Page 6
adjacent Victoria Apartments for their own expansion would have been possible, had
they expressed any interest to expand their own residential campus. However, the city is
not aware of any efforts to expand this affordable housing site since its creation in 1979.
The expansion of the dealership's parking area is generally suited for this area and those
permitted under the current [underlying] Cl and C2 zoning districts.
The Applicant intends to combine these three parcels together under possible plat or lot
combination process. Combination of these lots eliminates three driveways onto 69 th
Avenue, which is projected to carry increased traffic as Brooklyn Boulevard and the
surrounding area redevelops. Generally speaking, it is the City's position that
inappropriate single family residential uses in and around this Brooklyn Boulevard
conidor should be replaced with other uses. To continue with the residential uses,
especially single-family, would be inappropriate. Consolidation is necessary for
commercial redevelopment.
h.Will the rezoning result in an expansion of a zoning district warranted by: 1.
Comprehensive Planning; 2. Lack of developable land in the proposed zoning
district, or; 3. The best interest of the community?
The new PUD/C2 zoning should comply with the current 2030 Comprehensive Plan,
subject to the successful outcome of the proposed land use change from Single Family to
RB-Retail Business. The Applicant's desire of combining parcels works best to
effectively control development and traffic along this busy 69 th Avenue roadway
corridor. Through the Planned Unit Development process, the City can negotiate controls
of land use as promotion to the community's best interests. A change to commercial land
use falls reasonably within the established surrounding land uses and for those planned in
this sector of the city.
In general, Staff would support this PUD proposal as it does appear to have merit beyond
just the particular interests of the developer and should lead to redevelopment that can be
considered consistent and compatible with surrounding land uses. The proposal is
consistent with the City's Comprehensive Plan for this area and can be considered in the
best interests of the community.
i.Does the proposal demonstrate merit beyond the interests of an owner or owners of
an individual parcel?
Staff believes that the new zoning has merit beyond just the particular interests of the
City and/or the developer(s), in that it provides an ideal opportunity for a planned unit
development which provides for an ideal opportunity to provide a small expansion to an
already successful Honda dealership site. This new PUD zoning will assist in the
redevelopment and transformation of this site that can be consistent and compatible with
surrounding land uses. The zoning would provide an opportunity for quality
development that is consistent with the City's Comprehensive Plan and be considered in
the general best interests of the community.
Rezoning -Luther
PC 07/11/2013
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PUD AMENDMENT ANALYSIS
The original 2008 Luther Brookdale Honda-Toyota PUD was approved based on the following
considerations:
1)The rezoning of the entire planned development site from C2 (Commerce) and R3
(Multiple Family Residence) to new PUD/C2 (Planned Unit Development/Commerce)
District.
2)The creation of two new lots under a new Bri-Mar 2 nd Addition, specifically:
a)Lot 1, Block 1, Bri Mar 2 nd Addition (the northerly lot) consisting of 8.17 acres,
reserved for the new Brookdale Honda Dealership, addressed as 6800 Brooklyn
Boulevard; and
b)Lot 2, Block 1, Bri Mar 2 nd Addition (southerly lot), consisting of 8.23 acres,
reserved for the development of a new Toyota dealership, addressed as 6700
Brooklyn Boulevard.
3)The development of a new Honda dealership facility with 53,277 sq. ft. of showroom,
office, service operation and storage facility; and a new (separate) Toyota dealership
facility with 56,521 sq. ft. of,showrooms, office, service operation and storage facilities.
4)Allowing an automobile repair facility abutting R-1, R-2 or R-3 zoned property;
5)Waiving the requirement to combine 4215- 69 th Avenue North into a single parcel with
6800 Brooklyn Boulevard because of common ownership and common use; and
6)Allowing a slight encroachment into the 15 ft. green strip at the southwest corner of the
Toyota site to allow a decorative main display pad with a pergola and a fence and a
"Welcome to Brooklyn Center" ground message.
In 2011 Luther Company requested subdivision plat approval of their proposed Bri Mar 2'
Addition, which replatted five parcels into the two, larger lots. Luther also submitted a request
for minor amendment to the previously approved 2008 planned unit development (PUD) with the
following modifications:
1)Allow the Honda dealership building to be reduced from 53,277 sf. to 52,228 sf.;
2)Allow the Toyota dealership building to be reduced from 56,521 sf. to 53,830 sf.;
3)Allow the two dealership building to modify their original footprint (overall shapes)
and readjust their positions on the new individual lots;
4)Minor parking lot improvement modifications; and
5) Revise the original 2008 preliminary plat submittal of Bri Mar 2 nd Addition by
readjustment of lot lines between the Honda and Toyota dealership sites; and include
the former Pilgrim Cleaners parcel (4215 69 th Avenue N.) into the Honda lot.
Rezoning -Luther
PC 07/11/2013
Page 8
Both the PUD Amendment and Bri-Mar 2' Addition plat were approved that same year, and
construction of the two dealership facilities began in the latter part of 2011 and completed in late
2012.
Under this PUD Amendment, Luther is again requesting an amendment to the original 2008
Luther Honda-Toyota PUD, by simply incorporating the three residential lots into said PUD.
These lots have been acquired by Luther, and have either been cleared or awaiting removal by
Luther. Luther only intends to use the 1.78 acres of land area for additional vehicle parking and
storage for the new Honda dealership site; no buildings are planned for this area. The plans call
for this area to be laid out or striped for 305 new spaces. Most of these spaces will be
demarcated for tandem vehicle (end-to-end) parking spaces. Normally, this would not be
allowed in typical commercial developments; however, since Luther has made it clear this area is
simply to provide vehicle storage, with no employee or customer parking permitted, this should
not pose any problems to the overall use and travel ways through the main dealership sites.
As noted previously, the lots are cunently zoned R3 Multiple Family Residence, and are under
separate consideration to change the underlying land use from SF Single Family to RB Retail
Business, and rezone to PUD/C2.
Assuming if the land use change and zoning to PUD/C2 were to take place, the parking setbacks
for this area would be as follows:
Front yard = 15- feet Rear Yard = 35-feet; Side Yards = 35-feet
A normal parking setback from a street right of way is 15-feet. The other 35-ft. setbacks reflect
additional buffer requirements under Section 35-412, which requires the added space for
screening and landscaping wherever C2 zoned developments abut an R1, R2 or R3 zoned
property. The properties to the east and south of this area will remain under the R3 zone.
As part of this amendment request, Luther is requesting the allowance of reduced setbacks for
this parking area. The plans maintain the 15-foot setbacks along 69 th Avenue; while reducing the
35-foot setbacks along the east and south boundary lines (abutting R3 lands) to 25 feet. Within
these reduced buffer areas, Luther fully intends to complete an aggressive landscaping and
screening plan to alleviate and minimize any impacts caused by this encroachment, and will
provide similar fencing and landscaping along the northern boundary abutting 69th Avenue.
Although the city does have any details just yet, plans call for a 10-foot high fence along the
southerly boundary line to the Victoria Townhome Apartment complex; and an 8-foot high fence
along the west boundary line with the city-owned parcel; and an 8-foot and 6-foot fence along
the northerly areas.
The 8-foot fence and landscaping along 69 th Avenue should provide suitable screening and
security for this additional parking area. The physical edge of the parking sits approximately 50-
feet from the 69 t1 Avenue curb-line, with a potential 34-ft. + boulevard to be created when the
three lots are platted later in the future.
Prior to the official opening of the two dealerships on November 5, 2012, the Developer served
notice to the City that they had completed all of the private improvements identified in the
Rezoning -Luther
PC 07/11/2013
Page 9
approved PUD development plans, with the exception of the following items:
•Replacement of approximately 960 ft. of existing fence along the common rear lot lines;
•The construction of a new fence along the side lot line of 4007 69th Ave.;
•Replacement of approximately 580' of decorative fence along 69th Ave.; and
•The landscaping along the eastern lot line, adjacent to the residentially zoned properties.
The delay in completing these improvements specifically related to an option the Developer was
working on with Planning Staff to upgrade a proposed 8-foot cedar fence for screening to an 8 to
10-foot high, decorative masonry wall. The City Council/EDA recently determined the
feasibility of allocating Tax Increment Housing Improvement funding to assist in this new
decorative, masonry screening wall for the new Luther Honda-Toyota dealership site. Staff
further anticipates that with enough TIF assistance and funding, the Developer may be able to
provide the 8-10 foot high decorative screening all along the entire boundary lines abutting the
R3 zoned lands, which is extensive.
At this time, Luther is awaiting multiple decisions on the additional parcels of land they wish to
incorporate into their 2011 Luther Honda-Toyota PUD, which include a land use change, PUD
Amendment (updated development plans) and rezoning. Staff anticipates once Luther is assured
of these related land use decisions, they will proceed accordingly and complete all of the new
fencing, landscaping and wall improvements. The planned improvements noted on the PUD
Amendment plans appear sufficient and appropriate for the three areas. There are no other plans
to amend the main portions of the Luther Honda-Toyota PUD at this time, and all the
consideration of approval and standards approved under the original 2008 PUD and modified by
the amendment in 2011 shall remain in effect, except for those modified or appended to the
Luther PUD Agreement as noted herein.
RECOMMENDATIONS
The rezoning element of this proposed PUD Amendment application (rezoning and site plan) can
be given a favorable recommendation, since City Staff feels this rezoning portion meets the
criterion used to evaluate such change, and the proposed concept plan associated with this PUD
would be an acceptable means of achieving what the Applicant seeks in the redevelopment of
this site.
Therefore, Staff recommends the Planning Commission consider and also recommend approval
of this proposed zoning change of this site from R3 Multiple Family Residence to PUD/C2
(Planned Unit Development/Commerce) district, based on the following findings, which are also
memorialized in the attached Planning Commission Resolution No. 2013-11:
A.The proposed rezoning appears to demonstrate a clear and public need or benefit to the
community and regional area, as it will improve the appearance of the city and enhance
the quality of life, property values and civic pride in this neighborhood area;
B.The rezoning and its related development proposal will not be a detriment to the
neighborhood, and should provide a positive effect on the community; subject to the site
Rezoning -Luther
PC 07/11/2013
Page 10
plan issues being fully resolved by the City and Applicants;
C.The rezoning will facilitate the redevelopment plan of this site, which will be compatible
with the goals and policies of the City's Comprehensive Plan and underlying land use
plan.
D.The proposed zoning is consistent and compatible with the surrounding land use
classifications;
E.The proposed rezoning will provide an opportunity to provide an ideal redevelopment of
a targeted area for the community's commercial sector, especially around the Brooklyn
Boulevard and 69 th. Avennue North corridor areas, and will help stimulate new
investments in the neighborhood and community.
F.The proposed rezoning will enhance and strengthen City Center's economic viability and
status in the regional market place by the following supporting statements:
i. helps to increase employment opportunities, tax base and eliminates a vacant
commercial building site;
provides for the redevelopment of a potentially obsolete and underutilized site
into a use(s) that address needs in the marketplace;
The proposed rezoning and related development plan will provide an opportunity
to create a new zoning district provides for a more flexible use of the commercial
site and which encourages good design.
With these findings, Staff recommends the Planning Commission provide a recommendation to
the City Council to authorize the change of zoning of the subject site from R3 Multiple Family
Residence to PUD/C2 (Planned Unit Development/Commerce) district, subject to the following
conditions:
1.The Metropolitan Council approval of the land use amendment change of
this site from "SF-Single Family" to "RB-Retail Business" designation.
2.The rezoning shall become valid only if the City Council adopts the
proposed land use amendment change (under separate consideration), and
accepts and approves the final development/site and building plans for this
Planned Unit Development.
3.The rezoning is subject to the successful acceptance and approval by the
City Council of the final development/site plan proposed for the subject
site.
4.All conditions noted in the City Engineer's Review Memorandum (dated
07/02/2013) and all other subsequent or updated conditions required by
the City Engineer are submitted and/or fulfilled.
Rezoning -Luther
PC 07/11/2013
Page 11
Furthermore, the PUD Amendment as presented also appears to be a reasonable request and
redevelopment of this land area, and the reduced parking setback and buffer requirements can be
allowed due to the mitigation plans by the Developer in providing the screening and landscaping
as presented.
Therefore, Staff recommends the Planning Commission consider and also recommend approval
of this proposed Planned Unit Development Amendment to the 2008 Luther Auto Brookdale
Honda-Toyota PUD, based on the following findings, which are also memorialized in the
attached Planning Commission Resolution No. 2013-11:
1.The Planned Unit Development Amendment is compatible with the
standards, purposes and intent of the Planned Unit Development section of
the City's Zoning Ordinance.
2.The Planned Unit Development Amendment proposal will allow for the
utilization of the land in question in a manner which is compatible with,
complimentary to and of comparable intensity to adjacent land uses as well
as those permitted on surrounding land.
3.The utilization of the property as proposed under the Planned Unit
Development Amendment is considered a reasonable use of the property
and will conform with ordinance standards, except for allowing the reduced
parking setbacks from the east and south boundary lines, from 35-feet to 25-
feet in both areas.
4.The modifications from the Zoning Ordinance standards as noted in No. 3
above are justified on the basis of the development being an appropriate
redevelopment of this area and that they are offset or mitigated by various
factors contained in the approved development plan.
5.The Planned Unit Development Amendment proposal is considered
consistent with the recommendations of the City's Comprehensive Plan for
this area of the city.
6.The Planned Unit Development proposal appears to be a good long range
use of the existing land and this redevelopment can be considered an asset
to the community.
7. Based upon the above considerations, it is believed that the guidelines for
evaluating Planned Unit Development as contained in Section 35-355 of
the City's Zoning Ordinance are met and the proposal is, therefore, in the
best interest of the community.
And subject to these separate findings, Staff recommends the Planning Commission provide a
recommendation to the City Council to authorize the Planned Unit Development Amendment to
the 2008 Luther Auto Brookdale Honda-Toyota PUD, subject to the following conditions:
Rezoning -Luther
PC 07/11/2013
Page 12
1.The Developer shall submit for future Planning Commission review the
final site development plan of this vehicle parking/storage area. The plans
shall include or acknowledge the extension of underground irrigation
systems to cover boulevard areas, including all areas inside and outside the
new walls and/or fences.
2.No land disturbance or building permit will be issued for construction of the
proposed parking area or any improvements in this area, until the Developer
combines the three lots subject to this amendment process into one single -
use lot with Lot 1, Block 1, Bri Mar Second Addition ( Honda Dealership
Lot) or steps have been made by the Developer to make application for
completing the subdivision plat.
3.All conditions noted in the City Engineer's Review Memorandum (dated
07/02/2013) and all other subsequent or updated conditions required by the
City Engineer are submitted and/or fulfilled.
4.The Developer shall enter into a PUD agreement with the City of Brooklyn
Center to be reviewed and approved by the City Attorney prior to the
issuance of building peunits.
Rezoning -Luther
PC 07/11/2013
Page 13
Commissioner Schonning introduced the following resolution
and moved its adoption
PLANNING COMMISSION RESOLUTION NO. 2013-11
RESOLUTION REGARDING THE RECOMMENDED DISPOSITION OF
PLANNING COMMISSION APPLICATION NO. 2013-010 AND 2013-011
SUBMITTED BY THE LUTHER COMPANY, LLLP TO REZONE
PROPERTIES FROM R3 (MULTIPLE FAMILY RESIDENCE) TO PUD/C2
(PLANNED UNIT DEVELOPMENT/COMMERCE) DISTRICT
AND
PUD AMENDMENT TO THE 2008 LUTHER AUTO TOYOTA-HONDA
PLANNED UNIT DEVELOPMENT, BY INCORPORATING THREE
PARCELS OF LAND AREA (TOTALING 1.78 ACRES) INTO THE NEW
HONDA AUTOMOBILE DEALERSHIP SITE, WHICH IS PART OF THE
APPROVED 2008 LUTHER AUTO HONDA-TOYOTA PLANNED UNIT
DEVELOPMENT, AND INCLUDES A PROPOSED SITE DEVELOPMENT
PLAN TO PROVIDE ADDITIONAL VEHICLE STORAGE AND PARKING
AREA FOR THE HONDA DEALERSHIP (ALL FOR THE PROPERTIES
LOCATED AT 3955, 4001 & 4007 — 69 th AVENUE NORTH)
WHEREAS, Planning Commission Application No. 2013-010 submitted by The
Luther Company, LLLP, requesting the rezoning from R3 (Multiple Family Residence) to
PUD/C2 (Planned Unit Development/Commerce) District, for the properties located at 3955,
4001 & 4007 — 69 th Avenue North; and
WHEREAS, the proposal comprehends the rezoning of the above mentioned
properties to facilitate the planned and future redevelopment of the three parcels by incorporating
the properties into the 2008/2011 Luther Brookdale Honda-Toyota PUD, to create additional
vehicle parking and storage area for the Honda dealership site; and
WHEREAS, Planning Commission Application No. 2013-011 submitted by The
Luther Company, LLLP, requesting PUD Amendment to the 2008 Luther Auto Toyota-Honda
Planned Unit Development, by incorporating three parcels of land area (totaling 1.78 Acres) into
the New Honda Automobile Dealership Site, which is part of the approved 2008 Luther Auto
Honda-Toyota Planned Unit Development, and includes a proposed Site Development Plan to
Provide Additional Vehicle Storage and Parking Area for the Honda Dealership, for the properties
located at 3955, 4001 & 4007 — 69 th Avenue North); and
WHEREAS, the Planning Commission held a duly called public hearing on July
11, 2013, whereby a planning report was presented and public testimony regarding the rezoning
and planned unit development amendment and its related proposed site development plan were
received, and
WHEREAS, the current zoning of R3 (Multiple Family Residence) district and
underlying land use of SF-Single Family, as identified in the 2030 Comprehensive Plan would not
Res. 2013-11
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allow the redevelopment of this site as planned by The Luther Company under such zoning and
land use category; and
WHEREAS, the City of Brooklyn Center is reviewing under separate application
and public hearing process a land use amendment to the current 2030 Comprehensive Plan in order
to change the current land use designation from "SF-Single Family" to "RB-Retail Business"; and
WHEREAS, subject to a successful outcome of this land use amendment action, the
City may allow the recommended rezoning of these properties; and
WHEREAS, the Planning Commission considered the rezoning request in light of
all testimony received, the guidelines for evaluating rezoning contained in Section 35-208 of the
City's Zoning Ordinance, along with the provisions and standards of the Planned Unit
Development district contained in Section 35-355 of the City's Zoning Ordinance; and
AND WHEREAS, the Planning Commission also considered the planned unit
development request in light of all testimony received, the guidelines for evaluating a planned unit
development amendment as contained in Section 35-355 of the City's Zoning Ordinance.
NOW, THEREFORE, BE IT RESOLVED by the Planning Advisory Commission
of the City of Brooklyn Center to recommend to the City Council that Application No. 2012-010
submitted by The Luther Company, LLLP be approved based upon the following findings:
1.The proposed rezoning appears to demonstrate a clear and public need or
benefit to the community and regional area, as it will improve the
appearance of the city and enhance the quality of life, property values and
civic pride in this neighborhood area;
2.The rezoning and its related development proposal will not be a detriment
to the neighborhood, and should provide a positive effect on the
community; subject to the site plan issues being fully resolved by the City
and Applicants;
3.The rezoning will facilitate the redevelopment plan of this site, which will
be compatible with the goals and policies of the City's Comprehensive
Plan and underlying land use plan.
4.The proposed zoning is consistent and compatible with the surrounding
land use classifications;
5. The proposed rezoning will provide an opportunity to provide an ideal
redevelopment of a targeted area for the community's commercial sector,
especially around the Brooklyn Boulevard and 69 th Avennue North
corridor areas, and will help stimulate new investments in the
neighborhood and community.
Res. 2013-11
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6. The proposed rezoning will enhance and strengthen City Center's
economic viability and status in the regional market place by the
following supporting statements:
a)helps to increase employment opportunities, tax base and
eliminates a vacant commercial building site;
b)provides for the redevelopment of a potentially obsolete and
underutilized site into a use(s) that address needs in the
marketplace;
c) The proposed rezoning and related development plan will provide
an opportunity to create a new zoning district provides for a more
flexible use of the commercial site and which encourages good
design.
AND THEREFORE, BE IT ALSO RESOLVED by the Planning Advisory
Commission of the City of Brooklyn Center to recommend to the City Council that Application
No. 2012-011 submitted by The Luther Company, LLLP be approved based upon the following
findings:
1.The PUD Amendment as presented appears to be a reasonable request and
redevelopment of this land area, and the reduced parking setback and
buffer requirements can be allowed due to the mitigation plans by the
Developer in providing the screening and landscaping as presented in the
proposed site development plans;
2.The Planned Unit Development Amendment is compatible with the
standards, purposes and intent of the Planned Unit Development section of
the City's Zoning Ordinance.
3.The Planned Unit Development Amendment proposal will allow for the
utilization of the land in question in a manner which is compatible with,
complimentary to and of comparable intensity to adjacent land uses as well
as those permitted on surrounding land.
4.The utilization of the property as proposed under the Planned Unit
Development Amendment is considered a reasonable use of the property
and will conform with ordinance standards, except for allowing the reduced
parking setbacks from the east and south boundary lines, from 35-feet to 25-
feet in both areas.
5. The modifications from the Zoning Ordinance standards as noted in No. 3
above are justified on the basis of the development being an appropriate
redevelopment of this area and that they are offset or mitigated by various
factors contained in the approved development plan.
Res. 2013-11
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6.The Planned Unit Development Amendment proposal is considered
consistent with the recommendations of the City's Comprehensive Plan for
this area of the city.
7.The Planned Unit Development proposal appears to be a good long range
use of the existing land and this redevelopment can be considered an asset
to the community.
8. Based upon the above considerations, it is believed that the guidelines for
evaluating Planned Unit Development as contained in Section 35-355 of
the City's Zoning Ordinance are met and the proposal is, therefore, in the
best interest of the community.
BE IT FURTHER RESOLVED by the Planning Advisory Commission of the City
of Brooklyn Center, whom hereby recommend to the City Council, that Application No. 2012-010
submitted by The Luther Company, LLLP requesting to rezone from R3 (Multiple Family
Residence) to PUD/C2 (Planned Unit Development/Commerce) District, the properties located at
3955, 4001 & 4007 — 69 th Avenue North, may be approved subject to the following conditions and
considerations:
1.The Metropolitan Council approval of the land use amendment change of
this site from "SF-Single Family" to "RB-Retail Business" designation.
2.The rezoning shall become valid only if the City Council adopts the
proposed land use amendment change (under separate consideration), and
accepts and approves the final development/site and building plans for this
Planned Unit Development.
3.The rezoning is subject to the successful acceptance and approval by the
City Council of the final development/site plan proposed for the subject
site.
4.All conditions noted in the City Engineer's Review Memorandum (dated
07/02/2013) and all other subsequent or updated conditions required by
the City Engineer are submitted and/or fulfilled.
AND BE IT FURTHER RESOLVED by the Planning Advisory Commission of the
City of Brooklyn Center, whom hereby recommend to the City Council, that Application No.
2012-011 submitted by The Luther Company, LLLP requesting Planned Unit Development
Amendment to the 2008 Luther Auto Brookdale Honda-Toyota PUD, subject to the following
conditions:
The Developer shall submit for future Planning Commission review the
final site development plan of this vehicle parking/storage area. The plans
shall include or acknowledge the extension of underground irrigation
Res. 2013-11
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July 11, 2013
Date Chair
7/7
ATTEST:
Secretary
systems to cover boulevard areas, including all areas inside and outside the
new walls and/or fences.
2.No land disturbance or building permit will be issued for construction of the
proposed parking area or any improvements in this area, until the Developer
combines the three lots subject to this amendment process into one single -
use lot with Lot 1, Block 1, Bri Mar Second Addition (Honda Dealership
Lot) or steps have been made by the Developer to make application for
completing the subdivision plat.
3.All conditions noted in the City Engineer's Review Memorandum (dated
07/02/2013) and all other subsequent or updated conditions required by the
City Engineer are submitted and/or fulfilled.
4. The Developer shall enter into a PUD agreement with the City of Brooklyn
Center to be reviewed and approved by the City Attorney prior to the
issuance of building permits.
The motion for the adoption of the foregoing resolution was duly seconded by Member
Christensen
and upon vote being taken thereon, the following voted in favor thereof:
Chair Burfeind, Commissioners Christensen , and Schonning.
and the following voted against the same: Morgan and Parks
whereupon said resolution was declared duly passed and adopted.
Res. 2013-11
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MEMORANDUM
DATE: July 2, 2013
TO: Tim Benetti, Planning and Zoning Specialist
FROM: Steven J. Jankowski, Assistant City Engineer
SUBJECT: Public Works PUD Amendment Site Plan Review — Luther Brookdale Toyota
Parking Expansion
The Public Works Department staff has reviewed the following plan sheets which have been
prepared by Landform and are all dated June 11, 2013:
C-001 Civil Title Sheet
C-101 Existing Conditions
C-200 Site Expansion Overall Plan
C-201 Site Expansion Enlarged Plan
These submissions have been prepared for an amendment to planned unit development (PUD) of
the Luther Honda and Toyota site located at 6700 and 6800 Brookdale Boulevard to include the
rezoning of three residential lots adjacent to site. The following recommendations, comments
and conditions are provided:
Plan Items
1. The following item(s) are required PUD application and review items that have not been
provided and/or included with the application and drawings as required by City
Ordinance 35-355 and likewise have not been evaluated as required:
a.Removal Plans
b.Utility Plans
c.Drainage Plans
d.Grading, Temporary Erosion Control and Permanent Erosion Control Plans
e.Lighting Plans
f.Landscape Plans detailing species and sizes must be submitted.
g. Irrigation is required for the site. A copy of the irrigation plan must be provided.
2. A detailed plan showing the location of the fence and an architectural detail must be
submitted.
3.It is understood that the proposed parking is for vehicle storage and is not to be construed
as public parking since it does not meet the City standards for public parking.
4.The final construction plans must be certified by a licensed engineer in the state of
Minnesota and forwarded to the City Engineer for approval.
5. This development is required by the Shingle Creek Watershed Management Commission
to meet rate, quality, and volume requirements for the portion of the site disturbed. The
City will provide review for meeting these requirements. The developer must submit
necessary hydraulic and hydrology drainage calculations.
Public Works PUD Amendment Site Plan Review - Luther Parking Expansion Page 2
July 2, 2013
6.All work and materials must conform to the City of Brooklyn Center's standard
specifications and details. The City's standard details must be included in the final site
plans.
7.Upon project completion, the applicant must submit an as-built survey of the property,
improvements and utility service lines and structures, and provide certified record
drawings for any associated private and/or public improvements prior to issuance of the
certificate of occupancy. The survey must also verify that all property corners have been
established and are in place at the completion of the project as determined and directed
by the City Engineer.
8.Inspection for the private site improvements must be performed by the developer's
design/project engineer. Upon project completion, the design/project engineer must
formally certify through a letter that the project was built in conformance with the
approved plans and under the design/project engineer's immediate and direct supervision.
The engineer must be certified in the state of Minnesota and must certify all required as-
built drawings.
9.The applicant shall be responsible for coordinating site development plans with all
private utility companies (Xcel Energy, CenterPoint Energy, Qwest Communications,
Comcast, etc.).
Easements, Agreements and Platting
10.The applicant will be required to plat all parcels and combine with the adjacent Luther
lot.
11.A declarations of covenants and restrictions agreement is required that includes all
conditions of the PUD project approval.
12.A development/subdivision agreement will be required that includes all conditions of the
project approval, subject to the final site plan approval by the City Engineer.
13.A 10-ft drainage and utility easement around the perimeter of the property shall be
dedicated to the City at the time of replatting.
14. A Construction Management Plan and Agreement is required that addresses general
construction activities and management provisions, traffic control provisions, emergency
management provisions, storm water pollution prevention plan provisions, tree protection
provisions, general public welfare and safety provisions, definition of responsibility
provisions, temporary parking provisions, overall site condition provisions and non-
compliance provisions. A $2,500 deposit will be required as part of the non-compliance
provision. Through this document, the developer and property owner will acknowledge:
a.The property will be brought into compliance within 24 hours of notification of a
violation of the construction management plan, other conditions of approval or
City code standards.
b.If compliance is not achieved, the City will use any or all of the escrow dollars to
correct any deficiency and/or issue.
15. A Performance Agreement is required that includes all conditions of the project approval,
subject to the final site plan approval by the City Engineer.
16. An overall Easement Agreement is required that will provide the City perpetual
accessibility to all private utilities and storm drainage areas to inspect and enforce proper
utility service and maintenance for the entire site. This easement agreement also includes
private inspection, maintenance, and reporting responsibilities. Easements to provide
utility service to the development should be dedicated as necessary.
Public Works PUD Amendment Site Plan Review - Luther Parking Expansion Page 3
July 2, 2013
17.Private site appurtenances (e.g. light poles, signs etc.) shall not encroach into public
easements. If such an encroachment exists and is determined by the City to be not
adverse to the public interest, such encroachments will require an Encroachment
Agreement.
18.A cross-access driveway agreement is required between adjacent properties.
Anticipated Permitting
19.A City of Brooklyn Center land disturbance permit is required.
20.A City of Brooklyn Center demolition permit is required for the removal of the existing
residence.
21.A City of Brooklyn Center utility abandonment permit will be required.
22.A City of Brooklyn Center Permit to work within the right of way of 69 th Avenue will be
required to remove the three drive approaches and remove utilities.
23.A Minnesota Pollution Control Agency NPDES storm water construction permit is
required.
24.A plan review will be required by the City to ensure that the standards of the Shingle
Creek Watershed Management Commission (SCWMC) are met.
25.Other permits not listed herein may be required. It is the Responsibility of the applicant to
obtain such permits as warranted.
Prior to Issuance of Land Alteration and/or Building Permit
26.Copies of all required permits must be provided to the City.
27.Final construction plans and specification must be submitted and approved by the City
Engineer.
28.A letter of credit or cash escrow shall be deposited with the City in the amount of 100%
of the estimated cost determined by the city to comply with land alteration requirement,
site improvement, and restoration of the site. The city may reduce that amount of the
surety if work is completed and accepted.
29.The Construction Management Plan and Agreement has been executed and the associated
separate $2,500 cash escrow has been deposited with the City, which is for the non-
compliance provision. This escrow must be accompanied by the agreement and signed by
the developer and property owner.
30.An executed easement agreement must be provided.
31. A preconstruction conference is scheduled and held with City staff and other entities
designated by the City.
All aforementioned items, comments and recommendations are provided based on the
information submitted by the applicant at the time of this review. The site plan must be
developed and maintained in substantial conformance with the referenced plans, unless
modified by the staff recommended conditions above. Subsequent approval of the final plan
may require additional modifications based on engineering requirements associated with final
design of the water supply, storm drainage, sanitary sewer, final grading, geometric design
and other design elements as established by the City Engineer and other public officials
having jurisdiction over approval of the final site plans
Luther Brookdale Honda/Toyota
Motors Management Corporation
ooklyn Centel,
NARRATIVE FOR
REZOWING &
PUD AMENDMENT
JUNE 11, 2013
•
FORM
H 011! Yie
INTRODUCTION
On behalf of Luther Brookdale Honda/Toyota ("Motors Management Corporation"), Landform is pleased to
submit concept plans for Rezoning and Planned Unit Development (PUD) Amendment. In addition, Luther
Company, LLLP (Motors Management Corporation") requests an extension for the existing Performance
Agreement. Rezoning, PUD Amendment and a Performance Agreement extension approval allows for the new
1.78 acre expansion of the existing parking lot at this Luther dealership at 6700 and 6800 Brooklyn Boulevard
in Brooklyn Center, MN. We are excited about the improvements proposed for this site.
CONCEPT PLANS
The new 1.78 acre expansion for a vehicle stock storage parking lot includes properties at 4007 69th Ave N,
4001 69th Ave N and 3955 69th Ave N that are located in the R-3 District (Multiple Family Residence). The
Luther dealership is located within a PUD and subject to PUD Guidelines and the City Ordinance regulations.
We have prepared concept plans that complies with the general purpose and intent of Design Guidelines,
Master Plan, and City Ordinance for the new expansion of the existing parking lot on this site.
Rezoning
The new 1.78 acres, zoned as R-3 (Multiple Family Residence) is proposed to be rezoned to PUD and
subsequently replatted as part of Lot 1, Block 1, Bri Mar 2 n1 Addition.
PUD amendment
This PUD amendment would add the rezoned new 1.78 acres into the existing PUD subject to PUD conditions
with the following exceptions.
1.South and East Yard
The new concept plan provides a higher fence and planted screening reducing the required buffer on the
south and east yard. The south yard abuts residential houses (zoned R-3) and the east yard abuts the City
owned water tower (zoned R-3). The new concept plan provides a higher fence and plantings (located
outside the fence toward neighboring uses) to improve screening, buffering and maximize the landscaped
street area for the neighboring abutting uses.
2.Screening
The new concept plan shows compliance with screening requirements by using a pre-cast concrete panel
system on the south and east yard of the new 1.78 acres and the development at 6700 and 6800 Brooklyn
Boulevard. The pre-cast concrete panel system uses four different heights to exceed screening
requirements and matches the character of the Luther dealership architecture on-site.
BAA13037 NDF ORM June 11, 2013
Narrative for Rezoning & PUD Amendment
2
Performance Agreement
The Luther Company, LLLP ("Motors Management Corporation") requests a one year extension for the
Performance Agreement executed November 9, 2011. This extension approval would allow for new expansion
of the existing parking lot at the Luther dealership at 69 th and Brooklyn Boulevard in Brooklyn Center, MN.
SUMMARY
We respectfully request approval of this Rezoning and PUD Amendment and extension of the Performance
Agreement to allow the new expansion of the existing parking lot at the Luther dealership at 69 th and Brooklyn
Boulevard in Brooklyn Center, MN.
CONTACT INFORMATION
This document is respectfully submitted by:
Tracey Kinney, AICP
Landform
105 South Fifth Street, Suite 513
Minneapolis, MN 55330
Any additional questions regarding this application can be directed to Steve Sabraski at
ssabraskilandform.net or 612.638.0243.
BAA13037 LANDFORM June 11, 2013
Narrative for Rezoning & PUD Amendment
3
Commissioner introduced the following resolution and moved its
adoption
PLANNING COMMISSION RESOLUTION NO. 2013-11
RESOLUTION REGARDING THE RECOMMENDED DISPOSITION OF
PLANNING COMMISSION APPLICATION NO. 2013-010 AND 2013-011
SUBMITTED BY THE LUTHER COMPANY, LLLP TO REZONE
PROPERTIES FROM R3 (MULTIPLE FAMILY RESIDENCE) TO PUD/C2
(PLANNED UNIT DEVELOPMENT/COMMERCE) DISTRICT
AND
PUD AMENDMENT TO THE 2008 LUTHER AUTO TOYOTA-HONDA
PLANNED UNIT DEVELOPMENT, BY INCORPORATING THREE
PARCELS OF LAND AREA (TOTALING 1.78 ACRES) INTO THE NEW
HONDA AUTOMOBILE DEALERSHIP SITE, WHICH IS PART OF THE
APPROVED 2008 LUTHER AUTO HONDA-TOYOTA PLANNED UNIT
DEVELOPMENT, AND INCLUDES A PROPOSED SITE DEVELOPMENT
PLAN TO PROVIDE ADDITIONAL VEHICLE STORAGE AND PARKING
AREA FOR THE HONDA DEALERSHIP (ALL FOR THE PROPERTIES
LOCATED AT 3955, 4001 & 4007 — 69' AVENUE NORTH)
WHEREAS, Planning Commission Application No. 2013-010 submitted by The
Luther Company, LLLP, requesting the rezoning from R3 (Multiple Family Residence) to
PUD/C2 (Planned Unit Development/Commerce) District, for the properties located at 3955,
4001 & 4007— 69 th Avenue North; and
WHEREAS, the proposal comprehends the rezoning of the above mentioned
properties to facilitate the planned and future redevelopment of the three parcels by incorporating
the properties into the 2008/2011 Luther Brookdale Honda-Toyota PUD, to create additional
vehicle parking and storage area for the Honda dealership site; and
WHEREAS, Planning Commission Application No. 2013-011 submitted by The
Luther Company, LLLP, requesting PUD Amendment to the 2008 Luther Auto Toyota-Honda
Planned Unit Development, by incorporating three parcels of land area (totaling 1.78 Acres) into
the New Honda Automobile Dealership Site, which is part of the approved 2008 Luther Auto
Honda-Toyota Planned Unit Development, and includes a proposed Site Development Plan to
Provide Additional Vehicle Storage and Parking Area for the Honda Dealership, for the properties
located at 3955, 4001 & 4007— 69 th Avenue North); and
WHEREAS, the Planning Commission held a duly called public hearing on July
11, 2013, whereby a planning report was presented and public testimony regarding the rezoning
and planned unit development amendment and its related proposed site development plan were
received, and
WHEREAS, the current zoning of R3 (Multiple Family Residence) district and
underlying land use of SF-Single Family, as identified in the 2030 Comprehensive Plan would not
Res. 2013-11
1 of 5
allow the redevelopment of this site as planned by The Luther Company under such zoning and
land use category; and
WHEREAS, the City of Brooklyn Center is reviewing under separate application
and public hearing process a land use amendment to the current 2030 Comprehensive Plan in order
to change the current land use designation from "SF-Single Family" to "RB-Retail Business"; and
WHEREAS, subject to a successful outcome of this land use amendment action, the
City may allow the recommended rezoning of these properties; and
WHEREAS, the Planning Commission considered the rezoning request in light of
all testimony received, the guidelines for evaluating rezoning contained in Section 35-208 of the
City's Zoning Ordinance, along with the provisions and standards of the Planned Unit
Development district contained in Section 35-355 of the City's Zoning Ordinance; and
AND WHEREAS, the Planning Commission also considered the planned unit
development request in light of all testimony received, the guidelines for evaluating a planned unit
development amendment as contained in Section 35-355 of the City's Zoning Ordinance.
NOW, THEREFORE, BE IT RESOLVED by the Planning Advisory Commission
of the City of Brooklyn Center to recommend to the City Council that Application No. 2012-010
submitted by The Luther Company, LLLP be approved based upon the following findings:
1.The proposed rezoning appears to demonstrate a clear and public need or
benefit to the community and regional area, as it will improve the
appearance of the city and enhance the quality of life, property values and
civic pride in this neighborhood area;
2.The rezoning and its related development proposal will not be a detriment
to the neighborhood, and should provide a positive effect on the
community; subject to the site plan issues being fully resolved by the City
and Applicants;
3.The rezoning will facilitate the redevelopment plan of this site, which will
be compatible with the goals and policies of the City's Comprehensive
Plan and underlying land use plan.
4.The proposed zoning is consistent and compatible with the surrounding
land use classifications;
5. The proposed rezoning will provide an opportunity to provide an ideal
redevelopment of a targeted area for the community's commercial sector,
especially around the Brooklyn Boulevard and 69 1h Avennue North
corridor areas, and will help stimulate new investments in the
neighborhood and community.
Res. 2013-11
2 of 5
6. The proposed rezoning will enhance and strengthen City Center's
economic viability and status in the regional market place by the
following supporting statements:
a) helps to increase employment opportunities, tax base and
eliminates a vacant commercial building site;
provides for the redevelopment of a potentially obsolete and
underutilized site into a use(s) that address needs in the
marketplace;
c) The proposed rezoning and related development plan will provide
an opportunity to create a new zoning district provides for a more
flexible use of the commercial site and which encourages good
design.
AND THEREFORE, BE IT ALSO RESOLVED by the Planning Advisory
Commission of the City of Brooklyn Center to recommend to the City Council that Application
No. 2012-011 submitted by The Luther Company, LLLP be approved based upon the following
findings:
1.The PUD Amendment as presented appears to be a reasonable request and
redevelopment of this land area, and the reduced parking setback and
buffer requirements can be allowed due to the mitigation plans by the
Developer in providing the screening and landscaping as presented in the
proposed site development plans;
2.The Planned Unit Development Amendment is compatible with the
standards, purposes and intent of the Planned Unit Development section of
the City's Zoning Ordinance.
3.The Planned Unit Development Amendment proposal will allow for the
utilization of the land in question in a manner which is compatible with,
complimentary to and of comparable intensity to adjacent land uses as well
as those permitted on surrounding land.
4.The utilization of the property as proposed under the Planned Unit
Development Amendment is considered a reasonable use of the property
and will conform with ordinance standards, except for allowing the reduced
parking setbacks from the east and south boundary lines, from 35-feet to 25-
feet in both areas.
5. The modifications from the Zoning Ordinance standards as noted in No. 3
above are justified on the basis of the development being an appropriate
redevelopment of this area and that they are offset or mitigated by various
factors contained in the approved development plan.
Res. 2013-11
3 of 5
6.The Planned Unit Development Amendment proposal is considered
consistent with the recommendations of the City's Comprehensive Plan for
this area of the city.
7.The Planned Unit Development proposal appears to be a good long range
use of the existing land and this redevelopment can be considered an asset
to the community.
8. Based upon the above considerations, it is believed that the guidelines for
evaluating Planned Unit Development as contained in Section 35-355 of
the City's Zoning Ordinance are met and the proposal is, therefore, in the
best interest of the community.
BE IT FURTHER RESOLVED by the Planning Advisory Commission of the City
of Brooklyn Center, whom hereby recommend to the City Council, that Application No. 2012-010
submitted by The Luther Company, LLLP requesting to rezone from R3 (Multiple Family
Residence) to PUD/C2 (Planned Unit Development/Commerce) District, the properties located at
3955, 4001 & 4007 — 69 th Avenue North, may be approved subject to the following conditions and
considerations:
1.The Metropolitan Council approval of the land use amendment change of
this site from "SF-Single Family" to "RB-Retail Business" designation.
2.The rezoning shall become valid only if the City Council adopts the
proposed land use amendment change (under separate consideration), and
accepts and approves the final development/site and building plans for this
Planned Unit Development.
3.The rezoning is subject to the successful acceptance and approval by the
City Council of the final development/site plan proposed for the subject
site.
4.All conditions noted in the City Engineer's Review Memorandum (dated
07/02/2013) and all other subsequent or updated conditions required by
the City Engineer are submitted and/or fulfilled.
AND BE IT FURTHER RESOLVED by the Planning Advisory Commission of the
City of Brooklyn Center, whom hereby recommend to the City Council, that Application No.
2012-011 submitted by The Luther Company, LLLP requesting Planned Unit Development
Amendment to the 2008 Luther Auto Brookdale Honda-Toyota PUD, subject to the following
conditions:
1. The Developer shall submit for future Planning Commission review the
final site development plan of this vehicle parking/storage area. The plans
shall include or acknowledge the extension of underground irrigation
Res. 2013-11
4 of 5
systems to cover boulevard areas, including all areas inside and outside the
new walls and/or fences.
2.No land disturbance or building permit will be issued for construction of the
proposed parking area or any improvements in this area, until the Developer
combines the three lots subject to this amendment process into one single -
use lot with Lot 1, Block 1, Bri Mar Second Addition (Honda Dealership
Lot) or steps have been made by the Developer to make application for
completing the subdivision plat.
3.All conditions noted in the City Engineer's Review Memorandum (dated
07/02/2013) and all other subsequent or updated conditions required by the
City Engineer are submitted and/or fulfilled.
4. The Developer shall enter into a PUD agreement with the City of Brooklyn
Center to be reviewed and approved by the City Attorney prior to the
issuance of building permits.
July 11, 2013
Date Chair
ATTEST:
Secretary
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:
Chair , Commissioners and .
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
Res. 2013-11
5 of 5
9
. ,.4 R
1 lian ea '',
"N
t hli t ,!LL
City Council Agenda Item No. 9d
COUNCIL EMORANDUM
DATE: July 22, 2013
TO: Curt Boganey, City Manager
FROM: Tim Benetti, Planning and Zoning Specialis
THROUGH: Gary Eitel, Director of Business and Development )1At
SUBJECT: Resolution Adopting A Policy For Implementing Certain Architectural Design
And Land Use Guidelines Which Encourage Active Living Principles For The
City of Brooklyn Center
Recommendation:
It is recommended that the City Council consider the resolution adopting A Policy For
Implementing Certain Architectural Design And Land Use Guidelines Which Encourage Active
Living Principles for the City Of Brooklyn Center.
Background:
Approximately seven months ago, city staff was approached by Hennepin County staff to assist
with developing a generalized land use policy and/or complete street policy for the community.
The policies were directly related to Hennepin County's own Active Living Program, which
encourages cities within Hennepin County to provide resources or similar programs to encourage
healthier and active living for all citizens.
Active Living is a way of life that integrates physical activity into daily routines through
activities such as biking, walking and/or taking transit. Since 2006, Hennepin County has been
committed to Active Living when they teamed up with Blue Cross and Blue Shield (BCBS) to
develop an active living program. The main goal of the program is to help cities and agencies
encourage a more "active living" lifestyle for all citizens, specifically by integrating physical
activity into daily routines; replacing inactive trips in vehicles with active trips, such as walking
to school, bicycling to the store or taking transit to work. Furthermore, collaborating on policy
changes and infrastructure planning can help make the healthy, active choice the easy choice in
communities.
As part of this participation in the Active Living Program, Hennepin County encouraged the city
planners to provide or implement certain architectural design and land use guidelines, which may
help promote or encourage active living principles within future developments and/or projects.
Hennepin County also encouraged the city engineers to begin work on a complete street plan or
policy.
On May 16, 2013, the Planning Commission's reviewed and discussed the City's participation in
Hennepin County's Active Living Program with presentations on a potential Complete Streets
Policy and potential development of a new General Land Use Policy by city staff. Both policy
concepts were generally supported by the Commission.
Mission: Ensuring an attractive, clean, sale, inclusive coninnwity that enhances the qualkv of life
JOY ell people and preserves the public illIS1
COUNCIL ITEM MEMO IN DUM
At the June 10, 2013 Work Session, Public Works Director/City Engineer Steve Lillehaug
introduced a proposed "Complete Streets Policy" for the benefit of the City. This led to the
formal presentation of a resolution to adopt the Complete Streets Policy on June 24, 2013, which
was adopted under Resolution No. 2013-69.
At the July 11, 2013 Planning Commission meeting, planning staff presented a resolution along
with a draft "Policy For Implementing Certain Architectural Design and Land Use Guidelines
Which Encourage Active Living Principles for the City of Brooklyn Center." Upon brief
discussion, the Commission adopted Planning Commission Resolution No. 2013-12, which
provides a favorable recommendation to the city Council to adopt the proposed policy. Excerpts
from the July 11, 2013 Commission meeting minutes as related to this consideration of this
matter are also attached for review.
Budget Issues:
There are no budget issues to consider.
Council Goals:
Strategic:
1. We will proceed aggressively with implementation of City's redevelopment plans.
4. We will improve the city's image.
. -
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
Member introduced the following resolution and moved its
adoption:
RESOLUTION NO. 2013 -
RESOLUTION ADOPTING A POLICY FOR IMPLEMENTING CERTAIN
ARCHITECTURAL DESIGN AND LAND USE GUIDELINES WHICH
ENCOURAGE ACTIVE LIVING PRINCIPLES FOR THE CITY OF
BROOKLYN CENTER
WHEREAS, the City of Brooklyn Center, as part of the City's Active Living
Hennepin County Partnership, is committed to establishing a Policy for Implementing Certain
Architectural Design and Land Use Guidelines Which Encourage Active Living Principles for
the City of Brooklyn Center; and
WHEREAS, on May 16, 2013, the Planning Commission held its regular meeting
and was given a presentation by city engineering and city planning staffs, respectively, of a draft
"Complete Street Policy of the City of Brooklyn Center" and a proposed draft "General Land
Use Policy for Redevelopment, Architectural Guidelines and Pedestrian Plans" for the benefit of
the City of Brooklyn Center; and
WHEREAS, on June 10, 2013, the City Council Work Session included an
overview presentation by City staff of the Complete Streets Policy, whereby the City Council
voiced its support and desire to formally consider the Complete Streets Policy for adoption; and
WHEREAS, on June 24, 2012, the City Council adopted a separate Complete
Streets Policy that promotes equal consideration for all modes of transportation; promotes public
health and physical activity through the constructed environment; encourages walking and biking
as additional means to access businesses and encourage economic development; and promotes
the design of transportation corridors with all users in mind from the start reduces costly
retrofits; and
WHEREAS, as part of this continuing efforts to support this newly adopted
Complete Streets Policy, the City's Active Living Hennepin County Partnership and in
conjunction with the general planning and zoning initiatives for the City, which help create better
and well-designed developments, the Planning Commission reviewed the updated draft "Policy
for Implementing Certain Architectural Design and Land Use Guidelines Which Encourage
Active Living Principles".
AND WHEREAS, on July 11, 2013, upon full consideration of this item, the
Planning Commission did thereby recommend the City Council consider adopting the Policy for
Implementing Certain Architectural Design and Land Use Guidelines Which Encourage Active
Living Principles for the City of Brooklyn Center, by adopting Planning Commission Resolution
No. 2013-12.
RESOLUTION NO. 2013-
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Brooklyn Center does hereby accepts the recommendation formulated by the Planning
Commission, and adopts the Policy for Implementing Certain Architectural Design and Land
Use Guidelines Which Encourage Active Living Principles for the City of Brooklyn Center that
may be used and implemented to guide future land use decisions and projects in the City of
Brooklyn Center.
July 22, 2013
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.
A 'ND bLf for
rnp rnthg Certain Arc Tdtectura
leMgn and And Use ukoleHnes
OMIc i
Encourage Acthge juring P rhici p PS
for the
Cky of Brook yn Ce Ater
City of Brooklyn Center —Active Living Land Use Design Policy July 22, 2013
INTRODUCTION
During the past 50 years, road building has focused on moving as many cars as possible, as quickly as
possible. Safety and accessibility for pedestrians, bicyclists, motorists and transit riders have too often
been left out or addressed inadequately. "Complete Streets" is a term used to describe transportation
planning and design policies and processes that emphasize safety and accessibility for all users. In
conjunction with this Complete Streets policy, the City of Brooklyn Center wants to ensure that the
needs and safety of pedestrians, bicyclists, motorists, and transit riders of all ages and abilities are taken
into account not only in the overall design and operation of its roads, but also in the design and layout of
any new future development or redevelopment site within the City.
The implementation of an Active Living Program for a community is due to an outgrowth of recent
trends, such as the following:
e About 40 percent of Minnesotans do not drive, including children, seniors,
people with disabilities, and people who cannot afford a vehicle. Complete
streets helps to ensure that everyone has safe access to transportation options
to lead active and independent lives.
e Minnesota has an aging population. As people age, their dependence on
transportation modes beyond vehicles increases. Roads that can support biking
and walking to community destinations and transit will help an aging population
meet its transportation needs.
o The population of the United States is increasingly concentrated in urban areas
with this trend projected to increase into the future, which will result in
increased transportation demand that can be efficiently served through a multi-
modal transportation system.
O Governmental agencies are required to bring the transportation system into
compliance with the ADA to facilitate safe and convenient access for those with
disabilities.
•An increased number of Minnesotans are overweight or obese. If left unchecked,
obesity will add another $3.7 billion in health care expenses for Minnesotans by
2020. By building infrastructure that support more walking and biking,
communities can help create opportunities for people to be more physically
active, while improving public health and reducing health care costs.
O Gas prices are increasing, causing people to move to alternative modes of
transportation beyond the single occupancy vehicle.
41 Government agencies need to do more with less. Roadways need to be planned
and designed using a comprehensive process to ensure that costly future
roadway retrofits are avoided.
City of Brooklyn Center —Active Living Land Use Design Policy July 22, 2013
Active living policies should encourage the integration of physical activity into daily routines through
activities such as biking, walking and/or taking transit. Such activities promote active living which has
the following benefits:
•Improves physical and mental health
•Decreases risk of chronic disease
•Reduces medical costs associated with chronic disease
•Reduces transportation costs
•Reduces pollution and improves air quality
•Builds safer, stronger communities
•Increases quality of life
The City of Brooklyn Center joined Active Living Hennepin County (ALHC), a partnership of cities,
businesses, state and local agencies, and the county. The goals of ALHC members are; increasing
opportunities for active living in their communities through policy change, infrastructure planning,
marketing and communications, mentoring new and potential organizations, and hosting workshop
events. The funding provided by ALHC through Blue Cross Blue Shield of Minnesota and the State
Health Improvement Program (SHIP) was instrumental in the development of this policy which was
considered and adopted through City Council Resolution on July 22, 2013.
BACKGROUND
History
Brooklyn Center was primarily developed in the 1950's, 1960s and 1970s during a time in which the
personal automobile dominated land use and transportation planning practices and policies. As a result,
the city is highly auto-oriented and some areas lack adequate connections to adjoining neighborhoods,
parks, commercial areas and community institutions.
Since then, our economy, demographics and personal attitudes have changed drastically - we face rising
gas prices, growing senior and immigrant populations, and large proportions of the population want to
live in bicycle friendly and walkable neighborhoods. We must therefore ensure our design practices
address or reflect active living designs and principles in future land use decision-making.
City of Brooklyn Center —Active Living Land Use Design Policy July 22, 2013
POLICY
This policy includes the following elements:
Vision. Active Living is a way of life that integrates physical activity into daily routines through activities
such as biking, walking and/or taking transit. The City of Brooklyn Center hereby recognizes that the
location and design of buildings and public spaces influence Active Living. Brooklyn Center will strive to
locate sites in areas that are linked to community destinations and accessible by all modes of
transportation. Moreover, Brooklyn Center will integrate active living elements into the design of
building infrastructure and spaces while continuing to ensure the safety and security of customers,
visitors, workers, citizens and city property.
These architectural design guidelines are provided to encourage a high standard of design of buildings
proposed for new commercial, office, multi-family residential, civic and industrial development in
Brooklyn Center. A new or improved development, especially the building's size, shape, height, mass
color, materials, texture, window and entry placement and amenities provide users a specific image of a
development and the community as a whole. Implementing or incorporating 'these guidelines or
features into a new development or redeveloped site will offer an opportunity to the developers and/or
owners of such sites to provide lesser site requirements than normally prescribed under City Code.
A text amendment of these and similar architectural guidelines may be incorporated into the City Code
for Brooklyn Center, and may be applicable to only the Central Commerce District (CCD) and all new
proposed Planned Unit Development (PUD) areas.
BUILDING ORIENTATION
1.Buildings frontages should be encouraged to be built as near to the front street (ROW) line
wherever possible, with entrances situated or located along this front edge.
2.Buildings containing restaurants and adjacent to water features shall maximize opportunities for
outdoor patios, internal views of the water and pedestrian relationships with other recreational
interactions.
3.Buildings should be encouraged to be sited in ways to make the entries or intended uses clear to
and convenient for pedestrians.
4.Buildings should be connected to public streets via sidewalks.
5.Public safety should be encouraged during building location and site connectivity decisions using
CPTED (Crime Prevention Through Environmental Design) principles, including connection to
well-lit sidewalks that are buffered by street trees or other amenities.
6.Pedestrian level building windows front the street and entrances are well-lit for user security.
7. Developments should be encouraged in which parking lots are designed to facilitate shared
parking between businesses. Consideration will be given when designing parking lots as multi-
use spaces for off-hour activities.
City of Brooklyn Center —Active Living Land Use Design Policy July 22, 2013
BUILDING DESIGN
Building Mass
1.Varying scale of buildings shall be encouraged.
2.Varying rooflines to create interest in design styles shall be encouraged.
3.Multiple buildings on the same site should be designed with a visual relationship among
buildings while providing for pedestrian plazas, open space and view corridors.
4.Buildings that create a visually interesting "rhythm" by varying form, volume, massing, heights
and site orientation are encouraged, while maintaining a visual relationship to adjacent
structures.
5.Buildings over 40' in height are encouraged to employ a step-back design so as to not seem as
imposing from the street or pedestrian walkways.
6.Developments should encourage vehicle parking behind or under buildings.
Facade Design
1.Windows and doors or openings should comprise at least 50% of the length of a building and at
least 30% of the area of the ground floor along arterial and collector street facades.
2.Facades should utilize recessed entryways and windows, groupings of windows, horizontal and
vertical offsets and reveals on surface planes to break up long continuous flat walls.
3.Masonry detailing such as soldier coursing, plane changes, or patterning shall be encouraged.
4.The use of cornices, ornamental lights, graphics, tenant blade signs, and other architectural
details shall be encouraged.
5.On-story buildings shall reflect a two-story appearance with the use of upper windows, roof
forms, and undulated skylines. Storefront glass shall dominate each facade. Where true, clear
storefront glass is not feasible due to tenant functions, the use of spandrel glass is acceptable.
6.Multi-tenant buildings shall break up the rhythm of the façade for individuality of shops to
reinforce a "main street" theme of architecture.
Doors and Windows
1.Canopies are to be encouraged at entry ways.
2.A minimum of 8' clear space shall be provided from sidewalk elevation to the lowest point of a
canopy and or suspended sign.
3. Window and doors should be glazed in clear glass for retail buildings. Mirrored windows are
discouraged.
LANDSCAPE AND SITE TREATMENT
Landscape design
1.Plant material should be utilized within the master plan as an aid to provide continuity within
the site and provide a recognized definition of its boundaries.
2.Over-story trees shall be utilized along external and internal roadways to reinforce roadway
pattern but, placed so as to not block visibility of pedestrians and bicycles.
3. Plant materials are to be utilized within parking lot islands, grouped massing of landscape is
encouraged in parking lots versus individual planting to maximize landscape impact and allow
functional snow removal. Some islands may be paved as pedestrian walk areas to meet
pedestrian circulation requirements.
July 22, 2013City of Brooklyn Center —Active Living Land Use Design Policy
4.Loading, service, utility and outdoor storage areas that are visible from public roadways shall be
predominantly screened with fencing, walls, landscaping or berms. When natural materials are
used as principal screening, 75% opacity must be achieved year round through the use of
evergreen trees.
5.Plant materials shall be selected with regard to its interesting structure, texture, color, seasonal
interest, climate zone durability and its ultimate growth characteristics.
6.Where building sites limit planting, the placement of plant materials in planters, pots, or within
paved areas is encouraged.
7.Perennial/shrub planting beds, trees and turf areas shall be irrigated with an automatic
irrigation system to provide optimal plant establishment and long-term plant health.
Lighting
1.Energy efficient lighting should be encouraged to provide continuity and consistency throughout
a development and area. All parking lot lights should be uniform in style, color, and height.
2.Pedestrian lighting should be encouraged and of pedestrian scale height (12'-18') and be
uniform in style and color.
3.Light poles, fixtures, and bases should be a consistent dark color (i.e. bronze, black, or brown).
4.Exterior wall lighting should be encouraged to enhance the building design and the adjoining
landscape.
5.Lighting styles and building fixtures shall be of a design and scale compatible with the building
and adjacent areas. Dark sky and cutoff style fixtures shall be used for safety reasons and
environmental purposes. Shoe or hat-box style fixtures are acceptable for taller parking lot
lighting. More detailed ornamental style fixtures shall be encouraged for pedestrian impact.
6.Light levels that promote a safe environment are required. Excessive brightness should be
prohibited.
Pedestrian Connections
1.Parking facilities should be designed to accommodate pedestrian and bicycle access to the
buildings.
2.Developments should have sidewalks and crosswalks to connect parking to allow for safe
pedestrian movement through the parking lot.
3.Pedestrian connectivity should be incorporated to link buildings within the site.
4.Pedestrian connections should be made to the existing public sidewalk system.
5.Benches or seating should be provided for pedestrians.
6.Striping and signage of crosswalks shall be required at intersections.
7. Outdoor seating areas and outdoor sales areas should be encouraged or incorporated where
appropriate. Such areas shall utilize a unified theme and approach to the defining elements
(structural elements, railings, shading, paving, lighting, landscaping) for the creation of these
exterior spaces.
Bicycle Connections
1.Bike parking should be provided in close proximity to primary building entrances or in
prominent areas that serve multiple businesses.
2.Bike parking or storage should be located in the back of buildings unless there is an entrance
near the location.
3.Bike racks shall be of a type that supports the wheel and frame of the bike.
4.Indoor bicycle racks, controlled-access bicycle storage room, bicycle lockers, and bicycle corrals
are secure parking options.
City of Brooklyn Center —Active Living Land Use Design Policy July 22, 2013
5.Trail connections should be maintained and connected to any existing overpass system.
6.City will consider and support an adjustment to the required parking standards or required
number of vehicle spaces if a development demonstrates or provides on-site bicycle parking.
Implementation
Planning
Establishing plans and protocols is a critical step in creating well-designed and reasonably planned
developments. Effective planning results in design guidance and implementation clarity that allows the
developers and project designers to efficiently move forward on individual projects in a collaborative
and cost-efficient manner.
The implementation of certain design guidelines as proposed herein must be integrated throughout the
City, and may be institutionalized through ordinance amendments, planning documents and checklists,
and design manuals. Land Use Design Guidelines and criterion may be incorporated into specific
planning documents, including the city's comprehensive plan, neighborhood plans, active living plans,
and transportation plans. A community's zoning ordinance, subdivision ordinances, and/or design
policies should be updated to reflect the community's supportive approach to active living design
elements.
Development Resources
The implementation of this Land Use Policy will require city resources and staff time. A summary of
anticipated activities along with their timing and frequency is present in the table below:
Process Element Timing / Frequency
Staff training Continuous
Adopt design standards Update periodically
Amendments to the City Code & Comp Plan Consider when updating code & plan
Implement and evaluate performance measures Periodically
Coordinate with other jurisdictions Continuous
Regularly apply for grants Continuous
Review feasible funding sources and adopt revisions
to city CIP
Annually with CIP update
MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION
JULY 11, 2013
CONIDERATION OF A RESOLUTION ADOPTING A POLICY FOR
IMPLEMENTING CERTAIN ARCHITECTURAL DESIGN GUIDELINES WHICH
ENCOURAGE ACTIVE LIVING PRINCIPLES FOR THE CITY OF BROOKLYN
CENTER
Mr. Benetti provided background information related to the city's participation in Hennepin
County's Active Living Program which involves adopting and implementing Architectural
Design Guidelines Which Encourage Active Living Principles.
Mr. Benetti stated the items proposed are merely guidelines and not requirements but the city can
provide for them under a policy whereby developers would be required to abide by the policy
established. He further reviewed the details related to the following:
Building Orientation
Building Design
Landscape and Site Treatment
Mr. Benetti pointed out this plan/policy will work with the city's Complete Streets Policy to
complement each other.
Commissioner Morgan asked Mr. Benetti is staff feels good about this. Mr. Benetti replied staff
wants developers to know what is expected by a developer by establishing certain guidelines and
policies. He added in most cases developers will design their sites to accommodate the city's
recommendations.
Mr. Eitel added the city should start with a policy and work with it which leads to adoption of
ordinances that will state what must be done. He further stated this policy will be incorporated
with the Streets Policy to encompass pedestrian flow and traffic flow.
Commissioner Morgan asked why cities don't like mirrored glass on buildings. Mr. Benetti
replied that a mirrored reflection does not allow people to see inside a building and sometimes
becomes a safety issue.
ACTION TO RECOMMEND APPROVAL OF PLANNING COMMISSION RESOLUTION
NO. 2013-12 ADOPTING A POLICY FOR IMPLEMENTING CERTAIN
ARCHITECTURAL DESIGN GUIDELINES WHICH ENCOURAGE ACTIVE LIVING
PRINCIPLES FOR THE CITY OF BROOKLYN CENTER
There was a motion by Commissioner Morgan, seconded by Commissioner Schonning, to
approve Planning Commission Resolution No. 2013-12.
• Voting in favor: Chair Burfeind, Commissioners Christensen, Morgan, Parks and
Schonning
And the following voted against the same: None
The motion passed unanimously.
Page 8
7-11-13
City Council Agenda Item No. 10a
COUNCIL ITEM MEMORANDUM
DATE: July 15, 2013
TO: Curt Boganey, City Manager
FROM: Sharon Knutson, City Clerk
SUBJECT: Mayoral Appointment of Alternate Commissioner to Serve on Shingle Creek /
West Mississippi Watershed Management Commissions
Recommendation:
It is recommended that the City Council consider ratification of the Mayoral appointment of
David Vlasin, 5712 Colfax Avenue North, to the Shingle Creek / West Mississippi Watershed
Management Commissions with term to expire January 31, 2015.
Background:
Brooklyn Center is a member of both the Shingle Creek Watershed Management Commission
and the West Mississippi Watershed Management Commission. Each member city appoints one
Commissioner and one Alternate Commissioner. There is one vacancy for Alternate
Commissioner. Notice of vacancy on the Commission was posted at City Hall and Community
Center and on the City's website and aired on Cable Channel 16 beginning June 10, 2013.
Announcement was made in the June 20, 2013, edition of Brooklyn Center Sun-Post.
A letter was sent to those persons who previously had submitted an application for appointment
to a Brooklyn Center advisory commission informing them of the vacancy and requesting that
they call the City Clerk if they are interested in applying for the Commission. They were given
the choice of either submitting a new application or having their application previously
submitted considered. Notices were also sent to current advisory commission members.
Copies of the applications received for Commissioner were forwarded to City Council Members
in the June 14, 2013, update. Attached for City Council Members only are copies of the
applications received for Alternate Commissioner:
Robert Marvin 4711 Twin Lake Avenue
David Vlasin 5712 Colfax Avenue North
The applicants were notified that their application for appointment would be considered at the
July 22, 2013, City Council meeting. Mayor Willson recommends appointment of David Vlasin.
As previously requested by the City Council, the City Advisory Commission Bylaws are not
included in the materials but can be found on the City's website at
www.cityofbrooklyncenter.org . The membership roster is also available at this site and in the
City Council Reference Book.
Budget Issues:
There are no budget issues to consider.
Mission: Ensuring an attractive, clean, safe comma:107 that enhances the quality of life and preserves the public trust
COUNCIL ITEM MEMORANDUM
DATE: July 22, 2013
TO: Curt Boganey, City Manager
FROM: Sharon Knutson, City Clerk SinACtil."&(-
SUBJECT: Type IV 6-Month Provisional Rental License for 6819 Humboldt Ave N A202
Recommendation:
It is recommended that the City Council consider approval of the Mitigation Plan, Resolution
and issuance of a Type IV 6-Month Provisional Rental License for 6819 Humboldt Ave N A202.
The applicant or representative has an opportunity to present evidence regarding the submitted
Mitigation Plan. If the Council chooses to modify or disapprove the Mitigation Plan, it is
recommended that the motion be to direct staff to prepare proposed findings for disapproval of
the Mitigation Plan and notify the, license applicant of any pending license actions to be taken at
a subsequent Council Meeting.
Background:
This owner is applying for a renewal rental license. The property qualifies for a Type IV Rental
License based on the number of property code violations (nine) and validated police nuisance
incidents (zero). The property owner met the condition(s) of the Type IV Rental License.
The property owner received a Type IV Rental License on February 11, 2013 on condition of
adherence to the Mitigation Plan and City Ordinances. The owner has met the Mitigation Plan
and applicable ordinances.
Staff is recommending approval of the continued Type IV Rental License in lieu of denial,
revocation or suspension because the owner is working with staff to meet the license
requirements and the property is currently in compliance with the ordinance. The property
owner and property management representative have met with staff from Building and
Community Standards and the Police Department to discuss renovation plans and police calls. In
the past few weeks the property owner has conducted several evictions and is working to
rehabilitate vacated units.
The following is a brief history of the license process actions.
Current rental license approval activities:
04-04-2013 The owner, RSLD Properties, applied for renewal of the rental dwelling license
for 6819 Humboldt Ave N A202, a single family dwelling.
04-25-2013 An initial rental inspection was scheduled. No one was on site to meet the
inspector.
04-29-2013 An initial rental inspection was conducted. Nine property code violations were
cited, see attached rental criteria.
04-29-2013 A $100 reinspection fee was charged to the property owner.
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
05-16-2013
05-29-2013
05-29-2013
05-3 1-20 13
06-04-2013
06-12-2013
07-12-2013
07-25-2013
Prior Type IV
08-2 1-20 12
09-04-2012
10-04-2012
12-18-2012
12-28-2012
11-30-2012
12-31-2012
01-09-2013
01-11-2013
01-25-2013
01-31-2013
COUNCIL ITEM MEMORANDUM
The $100 reinspection fee was paid.
A reinspection was conducted and passed.
City records indicate zero validated police incident/nuisance calls occurred in the
past twelve months.
The previous Type IV license expired.
A letter was sent to the owner(s) notifying of qualification for Type IV 6-Month
Provisional Rental License, including additional requirements to obtain a rental
license. I.e. submit mitigation plan, completion of Phases I, II, and III of Crime
Free Housing Program, etc.
A Mitigation Plan was submitted.
The Mitigation Plan was finalized.
A letter was sent to the owner notifying that the hearing before the Council will
be held July 22, 2013.
Rental License approval activities:
The Owner, New Concepts Management, applied for renewal of the rental
dwelling license for 6819 Humboldt Ave N, A202, a single family dwelling.
An initial rental inspection was conducted. Twelve property code violations were
cited, see attached rental criteria.
A follow up inspection was conducted and passed.
A follow up rental inspection was conducted and passed.
City records indicate zero validated police incident/nuisance calls occurred in the
past twelve months.
The previous rental license expired.
A letter was sent to the owner(s) notifying of qualification for Type IV 6-Month
Provisional Rental License, including additional requirements to obtain a rental
license. I.e. submit mitigation plan, completion of Phases I, II, and III of Crime
Free Housing Program, etc.
A second letter was sent to the owner(s) notifying of qualification for Type IV 6-
Month Provisional Rental License, including additional requirements to obtain a
rental license. I.e. submit mitigation plan, completion of Phases I, II, and III of
Crime Free Housing Program, etc.
A Mitigation Plan was submitted.
The Mitigation Plan was finalized.
A letter was sent to the owner notifying that the hearing before the Council will
be held February 11, 2013.
If approved, after six months, a new rental license is required. The license process will begin in
approximately four months. The new license will be based on the property code violations found
during the initial renewal license inspection and the number of validated police calls for services
for disorderly activities and nuisances as defined in 12-911. The terms of the mitigation plan
must also be met.
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
COUNCIL ITEM MEMORANDUM
Excerpt from Chapter 12 of City Code of Ordinances:
Section 12-913. TYPE IV PROVISIONAL LICENSES.
1.Rental properties that meet the provisional licensing criteria as described in Section 12-
901 are eligible only for provisional licenses.
2.The City will provide by mail to each licensee a monthly report of any police and fire
calls and incidents and applicable property Code violations as described in Section 12-
901.
3.Mitigation Plan. The applicant for a provisional license must submit for Council review
a mitigation plan for the license period. The mitigation plan shall describe steps
proposed by the applicant to reduce the number of police and fire calls and/or the
property Code issues described in Section 12-901 and 12-911 to a level that qualifies for
a Type I, II, or III license. The mitigation plan may include such steps as changes in
tenant screening procedures, changes in lease terms, security measures, rules and
regulations for tenant conduct, security personnel, and time frame to implement all
phases of the Crime Free Housing Program.
4.Council Consideration. The application with a proposed mitigation plan will be
presented to the City Council together with a recommendation by the City Manager or the
Manager's designee as to the disposition thereof. After giving the applicant an
opportunity to be heard and present evidence, the Council shall approve, disapprove, or
approve with conditions the application and the mitigation plan. If the Council
disapproves an application and mitigation plan or approves it with conditions, it shall
state its reasons for so doing in writing. In evaluating a mitigation plan, the Council will
consider, among other things, the facility, its management practices, the nature and
seriousness of causes for police and fire incidences and/or property Code issues and the
expected effectiveness of measures identified in the plan to reduce the number of police
and fire incidences and/or property Code violations. In evaluating a mitigation plan
submitted by an applicant already under a provisional license, the Council will also
consider the effectiveness of measures identified in the applicant's previous mitigation
plan and the need for different or additional measures to reduce police and fire incidences
and/or property Code violations.
5. Compliance with Mitigation Plan. The licensee shall comply with the mitigation plan as
approved or modified by the Council. No later than the tenth day after each calendar
month, the licensee shall mail or deliver to the City Manager a written report describing
all steps taken in furtherance of the mitigation plan during the preceding month.
Mission: Ensuring an attractive, clean, strfe, inclusive community that enhances the quality of life
for allpeople and preserves the public trust
COUNCIL ITEM MEMORANDUM
Rental License Category Criteria Policy — Adopted by City Council 03-08-10
1.Determining License Categories.
License categories are based on property code and nuisance violations noted during the initial or
renewal license inspection or for a category verification inspection, along with excessive
validated police service calls occurring over a year. License categories are performance based
and more accurately depict the condition of the property and the City costs of service.
2.Fees.
Fee amounts are determined by the costs of the city to license, inspect, monitor and work with
the property to ensure category conditions are met. License fees do not include reinspection
fees, late fees, charges for criminal or civil enforcement actions, or other penalties.
3.Category Conditions.
The licensee or designated agent must meet the category conditions in the time period specified
by the City. A licensee must meet all original conditions required by the License Category, even
if a subsequent license category is achieved.
4.License Category Criteria.
a. Property Code and Nuisance Violations.
Property code violation rates will be based on the average number of property code
violations per unit identified during the licensing inspection or category verification
inspection. Property code violations for purposes of determining licensing categories
shall include violations of property code and nuisances as defined in Chapter 12, 19, 7
and other applicable local ordinances. The City may, upon complaints or reasonable
concerns that the establishment no longer complies with the license category criteria,
perform a category verification inspection to the same standards as the license renewal
inspection as indicated below.
Inspections will be conducted in conjunction with established department policies. In
cases where 100% of the units are not inspected, the minimum inspection standards will
be established as follows:
•At least 75% of units will be inspected for properties with 15 or less units.
•At least 25% of units, to include a minimum of 12 units, will be inspected for
properties with 16 or more units.
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
0-11-2 unitsType I — 3 Year
3+ units 0-0.75
Property Code and Nuisance Violations Criteria
License Category
(Based on Property
Code Only)
Number of Units Property Code Violations per
Inspected Unit
Type 11-2 Year 1-2 units
3+ units
Greater than 1 but not more than 4
Greater than 0.75 but not more than 1.5
Type III — 1 Year 1-2 units
3+ units
Greater than 4 but not more than 8
Greater than 1.5 but not more than 3
Type IV —6 Months 1-2 units
3+ units
Greater than 8
Greater than 3
COUNCIL ITEM MEMORANDUM
b. Police Service Calls.
Police call rates will be based on the average number of valid police calls per unit per
year. Police incidences for purposes of determining licensing categories shall include
disorderly activities and nuisances as defined in Section 12-911, and events categorized
as Part I crimes in the Uniform Crime Reporting System including homicide, rape,
robbery, aggravated assault, burglary, theft, auto theft and arson.
Calls will not be counted for purposes of determining licensing categories where the
victim and suspect are "Family or household members" as defined in the Domestic
Abuse Act, Minnesota Statutes, Section 518B.01, Subd. 2 (b) and where there is a
report of "Domestic Abuse" as defined in the Domestic Abuse Act, Minnesota Statutes,
Section 518B.01, Subd. 2 (a).
License
Category
Number of Units Validated Calls for Disorderly Conduct
Service & Part I Crimes
(Calls Per Unit/Year)
No Category
Impact
1-2 0-1
3-4 units 0-0.25
5 or more units 0-0.35
Decrease 1
Category
1-2 Greater than 1 but not more than 3
3-4 units Greater than 0.25 but not more than 1
5 or more unitsGreater than 0.35 but not more than 0.50
Decrease 2
Categories
1-2 Greater than 3
3-4 units Greater than 1
5 or more units Greater than 0.50
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
COUNCIL ITEM MEMORANDUM
Budget Issues:
There are no budget issues to consider.
Council Goals:
Strategic:
-We will ensure a safe and secure community
-We will stabilize and improve residential neighborhoods
Attachment
- Copy of Mitigation Plan Approved as Part of the July 22, 2013 Type IV Rental License
Approval
- Resolution Approving a Type IV Rental License for 6819 Humboldt Ave N A202
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for people and preserves the public trust
City of Brooklyn Center Phone: 763-569-3300 TTY 711
6301 Shingle Creek Parkway Fax: 763-569-3360
F Brooklyn Center, MN 55430-2199 www.cityofbrooklyncenter.org
NIIMINSMISIMINSEIRMSER
Rental License Mitigation Plan--Type IV Rental License
Handwritten plans will not be accepted. Please type or use finable form on City website.
Section A—Property Information
Property Address: 6819 Humbolt Ave. N. #202 55430
Owner Name: RLSD Properties Local Agent: New Concepts Management
Owner Address:
421 Laurel Court Thunder Bay, Ontario, CN P7A7L3
Agent Address:
5707 Excelsior Blvd. SI Louis Park, MN 55416
Owner Phone: 807 -4741493 Agent Phone: 952-922-2500
Owner Email:raycharestl@shaw.ca Agent Email:michelle@ncrngi.com
Rental License: New •Renewal: Current
*Pending
(Six months
License Expiration Date: 5'31 '13
Type IV License Exp. Date: 11-3 " 3
from current license expiration)
Based on property conditions and/or validated police nuisance incidents, the above referenced property
qualifies for a Type IV Rental License. Before your license application can be considered by the City Council,
a Mitigation Plan must be completed and reviewed by City staff. A fully completed Mitigation Plan must be
submitted immediately to ensure timely completion of the license application process. The Mitigation Plan
should indicate the steps being taken to correct identified violations and the measures that will be taken to
ensure ongoing compliance with City Ordinances and applicable Codes. The Mitigation Plan provides an
opportunity to review property concerns and identify possible solutions to improve the overall conditions and
management of the property.
NOTICE: Time is Running Out--You must TAKE ACTION NOW in order to meet all the city ordinance
and Mitigation Plan requirements within this *pending license period and avoid legal actions.
Section B— Required Documents
Submit the following documents with the Mitigation Plan for approval:
1 I Crime Free Housing Program Training Certificate (if completed, if not completed, please include
scheduled date in Section C.
2 Copy of Lease including Minnesota Crime Free I lousing Lease Addendum
3. Submit written report by 10 th of each month (after license approval).
1 1
I V 1
Section C— Crime Free Housing Program Requirements
ji e I
I. Use written lease including Crime Free Housing Lease Addendum.
2. Conduct criminal background check for all prospective tenants. Provide documentation to City if
requested.
3 Pursue the eviction of tenants who violate the terms of the lease or any addendums.
1Ii
Page 1 Type IV Mitigation Plan Bev 11-16-11
4. Attend City approved eight hour Crime Free Housing course.
Date Course Completed: 11-18-2009 or Date Course Scheduled:
Phase!!I Complete Security Assessment and implement all security improvements recommended by the
Brooklyn Center Police Department.
Date Scheduled; Improvements to be completed by: _.(-2/ /911---S
Phase III
I will attend a minimum of 50% of the ARM meetings (two).
I will attend the ARM meetings scheduled for: 07'11-2013
ril & 09-12-2013
Do these two meeting dates occur before the *pending Type IV License expiration date? Yes r IN0
(*See Section 4) If no, you will only be able to qualify for a Type TV Rental License upon renewal.
LII I will have no repeat code violations previously documented within the past year.
III
For properties with four or more units:
I will conduct resident training annually that includes crime prevention techniques.
I will hold regular resident meetings.
Section D — Long Term Capital Improvements Plan
Based on condition and age, estimated replacement dates are provided for common capital items. Funding
should be considered accordingly. However, items broken, worn or otherwise in violation prior to the estimated
replacement date will re uire earlier corrections.
Date Last Replaced Estimated
Replacement Date
Furnace/AC-2010_2025
Water Heater-2010 2020
Kitchen Appliances-2009 2011
Laundry Appliances-2011 2030
Exterior
-Paint/Siding, fascia, trim 2012 2017
-Windows 2000 2025
-Roof 2010 2035
-Fence 2005 2020
-Shed na na
-Garage na na
-Driveway 2000 2020
-Sidewalks 2000 2030
Smoke Alarms & Carbon Monoxide Alarms 2012 2013
Other(s)
Section E — Steps to Improve Management and Conditions of Property
Implementing the following best practices may assist in the management of your property.
By checking the boxes below, you agree to:
[ 1 1Ill 1.Check in with tenants every 30 days.
2.Drive by property to check for violations twice a month.
Page 2 Type IV Mitigation Plan Rev 11-16-11
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Pne,c Type IV Mitigation Plan Rev 11.16.11
Member introduced the following resolution and
moved its adoption:
RESOLUTION NO.
RESOLUTION APPROVING A TYPE IV RENTAL LICENSE FOR 6819
HUMBOLDT AVE N A202
WHEREAS, City Ordinance Sections 12-900 to 12-916 set forth requirements for
licensed rental properties; and
WHEREAS, the property located at 6819 Humboldt Ave N A202, was issued a
Type IV Rental License on February 11, 2013; and
WHEREAS, City Ordinance Section 12-901.2 requires a property owner who
receives a Type IV Rental License complete Phase I, II and III of the Crime Free Housing
Program; and
WHEREAS, City Ordinance Section 12-914.3.c establishes the requirement for an
owner of a Type IV rental property to complete Phase II of the Crime Free Housing Program,
including attendance at a minimum of 50 percent of Owners/Managers Association Meetings,
complete Crime Prevention Through Environmental Design Requirements and City Ordinance
Section 12-913 requires submittal of monthly updates; and
WHEREAS, the property qualifies for a Type IV Rental License based on the
number of property code violations (nine) found during the initial health and life safety
inspection and validated police nuisance incidents (zero);
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota, that a TYPE IV Rental License is hereby approved for the property
at 6819 Humboldt Ave N A202, Brooklyn Center, MN.
July 22, 2013
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. 10c
COUNCIL ITEM MEMORANDUM
DATE: July 22, 2013
TO: Curt Boganey, City Manager
FROM: Sharon Knutson, City Clerk
SUBJECT: Type IV 6-Month Provisional Rental License for 6906 Newton Ave N
Recommendation:
It is recommended that the City Council consider approval of the Mitigation Plan and issuance of
a Type IV 6-Month Provisional Rental License for 6906 Newton Ave N. The applicant or
representative has an opportunity to present evidence regarding the submitted Mitigation Plan. If
the Council chooses to modify or disapprove the Mitigation Plan, it is recommended that the
motion be to direct staff to prepare proposed findings for disapproval of the Mitigation Plan and
notify the license applicant of any pending license actions to be taken at a subsequent Council
Meeting.
Background:
This owner is applying for a renewal rental license. The previous rental license was a Type II
rental license. This property qualifies for a Type IV provisional rental license based on ten
property code violations found during the initial rental license inspection and zero validated
police incidents/nuisance calls for the past twelve months.
Staff from Administration, Building & Community Standards and Police Departments worked
with the property owner regarding a mitigation plan, which requires Phase I, II and III of the
Crime Free Housing Program, and other items included by City ordinance for a Type IV License.
A Mitigation Plan has been developed addressing the requirements of the ordinance and any
issues specific to the property.
Therefore, staff is recommending approval of the Type IV Rental License on condition of
adherence to the Mitigation Plan. Plbase refer to the attached copy of the Mitigation Plan for
more information.
The following is a brief history of the license process actions:
01-03-2013 The Owner, Eric Syrstad, applied for renewal of the rental dwelling license for
6906 Newton Avenue N, a single family dwelling.
01-28-2013 An initial rental inspection was conducted. Ten property code violations were
cited, see attached rental criteria.
02-27-2013 A second rental inspection was conducted and passed with weather deferral
related to repair or replacement of the siding and soffits.
02-27-2013 City records indicate zero validated police incident/nuisance calls occurred in the
past twelve months.
03-31-2013 The previous rental license expired.
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust •
COUNCIL ITEM MEMORANDUM
05-20-2013
05-20-2013
05-23-2013
05-30-2013
06-12-2013
06-05-2013
06-25-2013
07-15-2013
A letter was sent to the owner(s) notifying of qualification for Type IV 6-Month
Provisional Rental License, including additional requirements to obtain a rental
license. I.e. submit mitigation plan, completion of Phases I, II, and III of Crime
Free Housing Program, etc.
The owner was notified of past due property taxes.
A rental inspection was conducted for all weather deferred items and passed.
Property taxes were confirmed paid.
A second letter was sent to the owner(s) notifying of qualification for Type IV 6-
Month Provisional Rental License, including additional requirements to obtain a
rental license. I.e. submit mitigation plan, completion of Phases I, II, and III of
Crime Free Housing Program, etc.
A Mitigation Plan was submitted.
The Mitigation Plan was finalized.
A letter was sent to the owner notifying that the hearing before the Council will
be held July 22, 2013.
If approved, after six months, a new rental license is required. The license process will begin
immediately. The new license will be based on the property code violations found during the
initial renewal license inspection and the number of validated police calls for services for
disorderly activities and nuisances as defined in 12-911. The terms of the mitigation plan must
also be met.
Excerpt from Chapter 12 of City Code of Ordinances:
Section 12-913. TYPE IV PROVISIONAL LICENSES.
1.Rental properties that meet the provisional licensing criteria as described in Section 12-
901 are eligible only for provisional licenses.
2.The City will provide by mail to each licensee a monthly report of any police and fire
calls and incidents and applicable property Code violations as described in Section 12-
901.
3.Mitigation Plan. The applicant for a provisional license must submit for Council review
a mitigation plan for the license period. The mitigation plan shall describe steps
proposed by the applicant to reduce the number of police and fire calls and/or the
property Code issues described in Section 12-901 and 12-911 to a level that qualifies for
a Type I, II, or III license. The mitigation plan may include such steps as changes in
tenant screening procedures, changes in lease terms, security measures, rules and
regulations for tenant conduct, security personnel, and time frame to implement all
phases of the Crime Free Housing Program.
4.Council Consideration. The application with a proposed mitigation plan will be
presented to the City Council together with a recommendation by the City Manager or the
Manager's designee as to the disposition thereof. After giving the applicant an
opportunity to be heard and present evidence, the Council shall approve, disapprove, or
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
COUNCIL ITEM MEMORANDUM
approve with conditions the application and the mitigation plan If the Council
disapproves an application and mitigation plan or approves it with conditions, it shall
state its reasons for so doing in writing. In evaluating a mitigation plan, the Council will
consider, among other things, the facility, its management practices, the nature and
seriousness of causes for police and fire incidences and/or property Code issues and the
expected effectiveness of measures identified in the plan to reduce the number of police
and fire incidences and/or property Code violations. In evaluating a mitigation plan
submitted by an applicant already under a provisional license, the Council will also
consider the effectiveness of measures identified in the applicant's previous mitigation
plan and the need for different or additional measures to reduce police and fire incidences
and/or property Code violations.
5. Compliance with Mitigation Plan. The licensee shall comply with the mitigation plan as
approved or modified by the Council. No later than the tenth day after each calendar
month, the licensee shall mail or deliver to the City Manager a written report describing
all steps taken in furtherance of the mitigation plan during the preceding month.
Rental License Category Criteria Policy — Adopted by City Council 03-08-10
1.Determining License Categories.
License categories are based on property code and nuisance violations noted during the initial or
renewal license inspection or for a category verification inspection, along with excessive
validated police service calls occurring over a year. License categories are perfounance based
and more accurately depict the condition of the property and the City costs of service.
2.Fees.
Fee amounts are determined by the costs of the city to license, inspect, monitor and work with
the property to ensure category conditions are met. License fees do not include reinspection
fees, late fees, charges for criminal or civil enforcement actions, or other penalties.
3.Category Conditions.
The licensee or designated agent must meet the category conditions in the time period specified
by the City. A licensee must meet all original conditions required by the License Category, even
if a subsequent license category is achieved.
4.License Category Criteria.
a. Property Code and Nuisance Violations.
Property code violation rates will be based on the average number of property code
violations per unit identified during the licensing inspection or category verification
inspection. Property code violations for purposes of determining licensing categories
shall include violations of property code and nuisances as defined in Chapter 12, 19, 7
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
COUNCIL ITEM MEMORANDUM
and other applicable local ordinances. The City may, upon complaints or reasonable
concerns that the establishment no longer complies with the license category criteria,
perform a category verification inspection to the same standards as the license renewal
inspection as indicated below.
Inspections will be conducted in conjunction with established department policies. In
cases where 100% of the units are not inspected, the minimum inspection standards will
be established as follows:
*At least 75% of units will be inspected for properties with 15 or less units.
o At least 25% of units, to include a minimum of 12 units, will be inspected for
properties with 16 or more units.
Property Code and Nuisance Violations Criteria
License Category
(Based on Property
Code Only)
Number of Units Property Code Violations per
Inspected Unit
Type I — 3 Year 1-2 units 0-1
3+ units 0-0.75
Type 11-2 Year 1-2 units Greater than 1 but not more than 4
3+ units Greater than 0.75 but not more than 1.5
Type III — 1 Year 1-2 units Greater than 4 but not more than 8
3+ units Greater than 1.5 but not more than 3
Type IV — 6 Months 1-2 units Greater than 8
3+ units Greater than 3
b. Police Service Calls.
Police call rates will be based on the average number of valid police calls per unit per
year. Police incidences for purposes of determining licensing categories shall include
disorderly activities and nuisances as defined in Section 12-911, and events categorized
as Part I crimes in the Uniform Crime Reporting System including homicide, rape,
robbery, aggravated assault, burglary, theft, auto theft and arson.
Calls will not be counted for purposes of determining licensing categories where the
victim and suspect are "Family or household members" as defined in the Domestic
Abuse Act, Minnesota Statutes, Section 518B.01, Subd. 2 (b) and where there is a
report of "Domestic Abuse" as defined in the Domestic Abuse Act, Minnesota Statutes,
Section 518B.01, Subd. 2 (a).
License
Category
Number of UnitsValidated Calls for Disorderly Conduct
Service & Part I Crimes
(Calls Per Unit/Year)
No Category 1-2 0-1
.Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for al/ people and preserves the public trust
Impact 3-4 units
5 or more units
0-0.25
0-0.35
1-2
3-4 units
5 or more units
Greater than 1 but not more than 3
Greater than 0.25 but not more than 1
Greater than 0.35 but not more than 0.50
Decrease 1
Category
1-2
3-4 units
5 or more units
Greater than 3
Greater than 1
Greater than 0.50
Decrease 2
Categories
COUNCIL ITEM MEMORANDUM
Budget Issues:
There are no budget issues to consider.
Council Goals:
Strategic:
-We will ensure a safe and secure community
-We will stabilize and improve residential neighborhoods
Attachment
- Mitigation Plan
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
Based an property conditions and/or validated police nuisance incidents, the above referenced property
qualifies for a Type IV Rental License. Before your license application can be considered by the City Council,
a Mitigation Plan must be completed and reviewed by City staff. A fully completed Mitigation Plan must be
submitted immediately to ensure timely completion of the license application process. The Mitigation Plan
should indicate the steps being taken to correct identified violations and the measures that will be taken to.ensure ongoing compliance with City Ordinances and applicable Codes. The Mitigation Planprovides an
opportunity to review property concerns and identify possible solutions to improve the overall conditions and
management of the property.
NOTICE: Time is Running Out--You must TAKE ACTION NOW' in order to meet all the city ordinance
and Mitigation Plan requirements within this *pending license period and avoid legal actions.
Atz' :44-&---H'u&-44,034,041W mak asw , _ ,
Submit the following documents with the Mitigation Plan for approval:
Crime Free Housing Program Training Certificate (if completed, if not completed, please include
scheduled date in Section C.
2 Copy of Lease including Minnesota Crime Free Housing Lease Addendum
3, Submit written report by 10 th of each month (after license approval).
1!:'''MMV Wan _Mt ilfflir_L—EAWAIMOIRM_McsMOPE
EP717 I
I.Use written tease including Crime Free Housing Lease Addendum.
2, Conduct criminal background check for all prospective tenants. Provide documentation to City if
requested. •I= 3. Pursue the eviction of tenants who violate the terms of the lease or any addendums.
I
I
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430-2199
Phone; 763-569-3300 TIT 711
Fax: 763-569-3360
www.cityofbroOklyncentenorg
3 —17 •
Rental License Mitigation flan—Type IV Rental License
Honthorillen plans will not be accepted. Please type or use fillable foim on City website,
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Page B WO IV Mitig .atIon Plan Rev 114641
5/30/2013
Date
I. or 1 No—Nlitiplaina Plea Appro ,-..k-dit-1
miunity Standards Department /110e
tional Owner or Agent Signature '(If apilicable)
M 3. Evict tenants in violation of the lease and all addendums,
4.Provide lawn/snow service.
5.Provide garbage service,
6 Install security system.
7, Provide maintenance service plan for appliances. Name of service co.:
8.I am and will remain current on payment of utility fees, taxes, assessments, fines, penalties and other
financial claims due to the City.
9.Other(s): i will continue to correct any code violations and make repairs/ maintain the property In a responsible manner.
Please read thoroughly:
If the Type II/ Rental License is approved by the City Council, the Licensee must comply with the approved
Mitigation Plan and all applicable city codes. No later than the 10 th of each calendar month, the licensee must
submit to the Building and Community Standards Department a written report describing all steps taken to
comply with the Mitigation Plan.
I verify thatall information provided above is true and tic:curate. I understand that if I do not comply with an
approved Mitigation Plan, comply with all applicable ordinances within the license period, or operate beyond
the license expiration date; enforcement actions such as citations, formal complaint or license review may
result,
Eric Syrstad (property owner)
Owner or Agent Name and Title (Please Print)
e '673
Owner or Agent Signature Date
Brenten G Hayden (agent/ property manager
-Additional Owner 6r A entName and Title afdfipticrib/0 (Pleose Print)
AGENDA
CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY WORK SESSION
July 22, 2013
Immediately Following Regular City Council and EDA Meetings Which Start at 7:00 P.M.
Council Chambers
City Hall
A copy of the full City Council packet is available to the public. The packet ring binder is
located at the front of the Council Chambers by the Secretary.
ACTIVE DISCUSSION ITEMS
1. Vandalism at Fire House Park
PENDING LIST FOR FUTURE WORK SESSIONS
Later/Ongoing
1.Comprehensive Overview of Capital Needs and Debt Funding Plans — August 12,
2013
2.BC University
3.Assessment Hearing Policy
4.Strategic Plan Annual Report for Year Ending 2012
5.Inclusion and Diversity Follow Up — Community Engagement Strategies
6.Manganese Follow Up
7.African Assistance Program Zoning Issues
8.Mission and Values Statement Review and Strategic Plan Update
Parking Lot Issues
1. Joint Meeting with Charter Commission
Work Session Agenda Item No. 1