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HomeMy WebLinkAbout08/17/1982 MEMO TO: Mayor and Council FROM: John K. Anderson/City Administrator RE : Non-agenda Informational Items DATE : August 12 , 1982 1 . Ron Scherer, one of our police officers , is being cited by LeRoy for violation of a City Ordinance relating to water service . Ron connected to the Bluff Avenue watermain without a permit to connect , without paying the $300 connection fee , without getting a meter from SPUC (he had a used one from an older home ) and with- out having the trench and installation inspected . 2 . Because we have tabled the PIR Fund discussion until after budget discussion we will not have time to put it on the ballot this year. 3 . Attached is the Revenue ; Expenditure Report for the month ending 7/31/82 4. Attached is the Building Activity Report for the month ending 7/31/82 . 5 . Attached is the Police Department Quarterly Activity Report for the period ending 7/31/82 . 6 . Attached is the invitation to the Minnesota League of Cities Regional meeting in Maplewood on 9/16/82 . Please contact Jeanette to make reservations . 7 . Attached is a memo from the League regarding crucial policy issues facing cities in 1983 . Some of them may be issues that could be covered in our new weekly newspaper articles . 8 . On the agenda is a staff recommendation to amend the City Code by permitting gambling pursuant to state law. Council should know that both the Legion Club and the V.F.W. currently have a gambling license from the City and if Council desires not to amend the City Code , the licenses cannot be renewed in 1983 and probably should be rescinded for the balance of 1982 and fees refunded . 9 . Attached is a copy of a letter sent to Harry Weinandt re : mainten- ance of roads in Weinandt Acres . 10 . Attached are the minutes of the July 7th and July 13 , 1982 S .P.U.C. meeting. 11 . Butch Ring has asked that we approve the attached claim. The Relief Association is a separate fund run by the Fire Department Relief Association and audited by them. The City' s only involve- ment is in approval of the Association' s By-Laws . Since their independent audit costs are charged to the Association , it is consistent that incidental travel costs likewise be charged to the Association. We are handling this administratively , but you may hear about it . Some parallel examples might be Bo Non-agenda Informational Items Page Two August 12 , 1982 charging inspection time to the General Fund instead of the pro- ject , SPUC charging the City instead of SPUC for SPUC travel expense to a water or electric meeting, or Local #320 union members charging travel to the City instead of the union. 12 . Gregg found the attached description of the Hennepin County Cooperative Purchasing Program and thought Councilmembers might be interested. 13 . 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W a 0.1 ...0 v C !N • K N C W 0 • 0'Z 0 r I- • a H a a • • a' . U.- Ct. • •4 • W J 4 V) V) W J 0 a •a W C h- W M Z : O a a 0 U p- , o a J►- 0 • C C IL W (n Y 1. Z I CC '" N Li U U 7 N W¢ .-. U Z L U. Z 0 0 2 W W a W(/) Z 4 O 0 0 0 W 4 F- Z Z . O 2 V) I.- I+ .-• > - U W I. f- /- I- -,I- a X Z Z 2 1-. O Z W 4 W 0 0 U = 1 I- Cr U 4)- 0 N 0 0 O N • .H • CO Z U d 0 M ON * O` n Cr 0, I 0 • .. W C- f I •r • CITY OF SHAKOPEE BUILDING ACTIVITY REPORT July, 1982 • PERMITS ISSUED Yr. to Date Total Previous Year Number Number Vatwit ion Number Valuation 5680-5706 MO. YTD. , Single Farn. -Sewered 3 9 498,170 2 20 1,177,600 Single Farn. -Septic - 3 209,500 3 5 407,000 Multiple Dwellings 1 7 564,240 0 1.0 1 ,104,000 (Mo.Units) (YTD Units) (2) (20) (0) (28) Dwelling Additions 8 40 254,375 7 19 Other. 1 4 74,280 - - - Business District 2 2 790,000 1 3 240,000 Agricultural - - - - 1 132,000 Industrial -Sewered - - - 1 2 1,185,000 industrial -Septic - - - 2 3 792,000 Accessory/Garages 3 24 136,450 6 26 144,350 Signs & Fences 3 27 39,296.50 0 7 15,050 E' i i•cp I ace;;/Wood Stove 1 5 6,605 0 3 6,400 Grading/Foundation - 2 11,165 0 2 0,000 Remodeling (Res. ) 2 18 68,400 0 18 73,330 Remodeling ( Inst . ) - - - 0 2 5,300 Remodeling (Other) 1 13 701,848 2 26 1,074,000 TOTAL TAXABLE 26 167 3,354,329.50 24 146 6,524,855 TOTAL INSTITUTTCNAL - - - 0 2 5,300 GRANT) TOTAL 26 167 3,354,329.50 24 148 6,530,155 MO . YTD. MO . YIP Variances 1 11 1 3 Conditional Use 2 13 4 10 U(•-.;oni n - - 0 1 Moving 1 1 2 3 Electric Ir Permit,: 21 96 13 99 Plmbg. & Htg. Permits 19 100 20 113 Razing Permits Residential - - - - Commercial - - - - Total dwelling units in City alter completion of all construction permitted to date 3,540 Cora Underwood 131 dg. Dept . Secretary ...N, . CITY OF SHAKOPEE BUILDING PERMITS ISSUED IN JULY, 1982 5680 James E. Johnson 1970 E. 11th Avenue House $ 50,300 5681 Kent Busch 334 East 5th Garage $ 6,000 5682 Gerald Schmidt 1041 Legion Street House $ 51,100 • ; ./ .e,,ie !♦(, _ ,, ,;',t,( 5683 Wiggin, Inc. 1947 W.' 12th'Avenue 4 unit twnhse (1 unit) $ 18,000 / ;/ '.v ) Vii/ ",', ; i,. , .-.,-,-- 5684 Wiggin, Inc. 1949 W. 12th Avenue 4 unit twnhse (1 unit) $ 18,000 � _., , 5685 Lambrecht Const. 300 E. 1st Avenue Alt. $ 15,000 5686 Attracta Sign 6268 Hwy 101 Sign $ 7,200 5687 G.F. Juergens 287 Marschall Road Ofc. Bldg. $760,000 5688 Larry Link 1165 Monroe Addn. $ 4,000 5689 J.B. Swedenborg 123 W. 2nd Addn. $ 30,000 5690 Jan Lick 120 E. 1st Ave. Sign $ 200 5691 Ronald Schmitt 721 Brook Lane Move Garage $ 1,500 5692 Allan Farrell 1067 S. Main Deck $ 500 5693 Thomas Henning 622 E. 2nd Addn. $ 4,600 5694 H.J. Ring 3360 Marschall Road Storage Bldg. $ 6,600 5695 Georgia Halloran 522 E. 1st Ave. Alt. $ 7,500 5696 VOID 5697 David Stang 5035 Eagle Creek Blvd. Deck $ 2,000 5698 Donald Hamilton 1054 S. Main Deck $ 1,000 5699 Jake Lennox 736 S. Atwood Addn. $ 2,562 5700 H.R. Spurrier . 1717 Presidential Lane House $ 62,750 5701 Jeffrey Jasper 1957 E. Shakopee Ave. Addn. $ 18,000 5702 Viereck Fireplace 1005 Van Buren Fireplace $ 1,650 5703 Kenneth Berg 222 E. 1st Ave. Alt. $ 2,800 5704 Greg Hoehn 506 W. 4th Ave. Demolition $ 500 5705 James Tongen 1005 Ramsey Fence $ 250 5706 Daniel Gerold 1102 E. 2nd Ave. Alt. $ 3,000 $1,075,012 x3 H H H H H C!1 b p' U1 rJ :! 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OFFICE OF MAYOR 770-4524 Y August 9, 1982 AUG 91982 CITY OF SHKPEE To the Mayor, Councilmembers, All Other City Officials, and Their Spouses : I wish to extend to you a cordial invitation to attend the Regional Meeting of the League of Minnesota Cities in conjunction with the Association of Metropol- itan Municipalities to be held at the Holiday Inn in Maplewood on September 16, 1982. The Holiday Inn is located behind the Maplewood Mall at I-694 and White Bear Avenue. Beginning at 2:30 p.m. , there will be a Roundtable Discussion for all Local Government Officials. The program will include a presentation on and demon- stration of the Small City (microcomputer) Management Information Systems (utility billing, budget/accounting) , by Tom Thelen of the League staff and Roger Sell , Executive Director of the Intergovernmental Information Services Advisory Council . The supper will begin at 6:30 p.m. and tickets are $9.00 including gratuity. A social hour with a cash bar will precede the supper at 5:30. I am enclosing a postcard for reservations to be returned by September 9, 1982. You will note that if you make reservations for more persons than actually attend, you may be billed for those who do not come unless I am notified three days before the meeting of any changes. After supper there will be a panel discussion by Leaaue staff and board members of questions of concern to attending cities. A brief status report on the League building will be given. Legislators and candidates have been invited to attend as well as representatives from those state agencies who come into frequent contact with cities. Adjournment will be no later than 9:30 p.m. incerely yours, ,,-- ....-_ 2,0--4a-, _.,,f..x..,,......., John Greavu Host Mayor Enclosures - 2 AGENDA LEAGUE OF MINNESOTA CITIES AND ASSOCIATION OF METROPOLITAN MUNICIPALITIES MAPLEWOOD, MINNESOTA SEPTEMBER 16, 1982 Afternoon Program Thomas Thelen, Field Representative, presiding. 2:30 - 3:30: Crime & Law Enforcement in Metro Area 3:30 - 5:30: (With coffee break) Presentation on and demonstration of the Small City (microcomputer) Management Information System (for utility billing, budget/accounting) . Evening Program 5:30 - 6:30: Social Hour - Cash Bar 6:30 - 7:30: Dinner 7:30 - 9:30: Evening Meeting a) League building completion report. b) Update on the city-state financial relationship. c) Explanation of the League of Minnesota Cities Legislative Action Program, including the policy development process and legislative district activities. d) Answers to questions about local problems of general interest by a League attorney and other League staff. 9:30: Adjournment NOTE: Copies of the most frequently requested League publications will be available. 1 7 RECEIVED 11i AUG 0 21982 panCITY OF SHAKOPEE 1GI-4Jleague of minnesota cities L. July 29, 1982 Dear Local Official: 1983 will be a crucial year for Minnsota Cities. The new Governor and Legislature are sure to face more difficult state budget decisions. Will cities continue to lose revenues as a result of reduced state aid and credit payments? If there are further state cuts, will they be made fairly and timed so cities can make responsible budget and service changes? Will the levy limit and other laws be changed to allow cities more local authority and flexibility to deal with decreasing state and federal revenues? Will the state continue to enact mandates which require additional expenditures? Will the state further restrict the ability of cities to negotiate fair labor contracts? You as a city official can play an important part in assuring that the answers to the above questions meet the need of cities and the people they serve. The enclosed LMC "Issue Papers" explain five major problems facing Minnesota Cities and offer solutions. These problems will be solved in a manner satisfactory to cities only if city officials become more actively involved in influencing state government. It is our hope that these "Issue Papers" will be an effective tool for informing legislative candidates of key city issues and ultimately obtaining commitments from them to support LMC positions on these issues. The League is also sending the "Issue Papers" to all candidates so they will not be caught unaware by your questions and concerns. We ask you to do several things in the next two months: 1) Discuss these issues personally with legislative and even gubernatorial candidates. 2) Sponsor a special public meeting in your city where these issues can be raised. 3) Make an effort to educate citizens and the media in your city about these problems so they also can express their concern to candidates. (If "average citizens" as well as city officials are concerned about levy limits or state aid cuts, the cities' position will be much stronger.) We encourage cities in the same districts to jointly sponsor candidates' meetings. Contact the League with time and place and we'll make every effort to have a staff person there to help provide information. In mid-September, we will follow up on these efforts, and ask you to survey your candidates as to their stands on these issues. Thank you for your efforts on behalf of this project. Active participation by city offi- cials can help guarantee a more successful legislative effort to cities in 1983. Sincerely,, Josephine Nunn Mayor, City of Champlin President, League of Minnesota Cities 1 83 university avenue east, st. paul, minnesota 551 01 (61 2) 227-5600 i • . . I ____ 1 r _ . tkii-p) milli 111 6_._MJJ league of minnesota cities THE STATE-LOCAL FISCAL RELATIONSHIP ISSUE PAPER PROBLEM The future of the state-local fiscal relationship in Minnesota is in doubt. The combined program of school aids, local government aids, welfare transfer payments, property tax credits and other payments has become too complex, unpredictable and unstable. There is no articulated state policy to guide decisions concerning the appropriate balance between the property, sales, and income tax or the extent to which each local government should rely on local versus state-paid revenue sources. Direct property tax relief programs are confused with general aid programs and the net impact of all these programs on tax burdens is not well understood. BACKGROUND Since the summer of 1980, cities have undergone a series of state actions which have made it more difficult to operate city government: Three separate cutbacks in local government aid, imposition of new and more restrictive levy limits, cut-backs in the homestead credit reimbursement payments, a shift in the payment schedule for aids and credits, and long delays in the payment of some aids and credits. The timing of many of these actions has made it even more difficult to adjust budgets or take other actions to respond to the problems. There is no end in sight, with cities concerned about whether they will actually receive from the state their full 1982 or 1983 local government aid and homestead credit payments. Cities are now planning their 1983 budgets in this atmosphere of uncertainty. SOLUTION The Legislature and the Governor should place top priority on comprehensively re-working the state-local fiscal system in Minnesota and clarifying the policy objectives of such a system. The system needs to be simplified and made more understandable so that there will be greater accountability at all levels of government. State policymakers, in consultation with local officials, must agree on the proper balance between income, sales, and property taxes, and the types of government functions that should be supported by those taxes. Cities must be allowed more autonomy over local revenues, including the property tax. Cities must be able to count on total revenues adequate to maintain the level of services required by their citizens. The portion of those revenues received as state-paid aids or credits must be reliable as well as equitable. If the state-local fiscal problems are not comprehensively addressed the crisis-to-crisis conditions which have existed for the past two years will continue to plague the state and local governments. 7/29/82 (OVER) , r t_• .s,ty ,, L =-,;,t., �,,;_ rr f, 1 ii 01 {A11 2) 227-5600 Aw. ,�nrr -__��r."""� ' .mow. .. . i. '�� •; .v{, -. �' c mss. .;t.z i=b `` ""4 ++ "t'." MANDATES ISSUE PAPER PROBLEM Each session, the legislature enacts new laws which require cities to perform specific functions, without providing any financial assistance or permitting any flexibility in the tax levy to pay for those new responsibilities. BACKGROUND New Mandates. The legislature continues to enact each session new laws which require cities to perform certain new functions. Each new mandate, taken individually, may cost relatively little in comparison with the entire city budget, but the cumulative effect is to force cities to expend substantial funds to pay for these mandates before allocating the remainder of the city's funds to pay for traditional services (such as police and fire protection, sewer and water service, parks and recreation, regulatory efforts, etc.) This trend to enact new mandates, often without input from cities or even over their objections, will continue unless the legislature itself becomes concerned with cumulative effects of these mandated costs. Examples of new recent mandates enacted in 1982 include: requiring cities to establish by ordinance fees for land use administrative procedures; permitting manufactured homes in all cities unless regulated by enacting ordinance; forcing city attorneys to prosecute gross misdemeanors in DWI violations; requiring cities give disabled police officers and fire fighters less hazardous city jobs yet continue full police/fire pay for these persons; and requiring the recording of all variances and conditional use permits. Old Mandates. A variety of out-of-date mandates remain in state law. These continue to be costly even though their need is questionable. SOLUTIONS 1. The Legislature should show restraint in enacting new mandates, and should adopt a process requiring the preparation and consideration of the fiscal impact on local government of every proposed new mandate. 2. The efforts of the Governor's Task Force to Reduce State Government Mandates on Local Governments should be supported and any resulting legislation should be enacted. 7/29/82 .T111 mIll DI .`P--J i lea - f `'innesota cities PUBLIC EMPLOYMENT LABOR RELATIONS PROBLEM The balance between public employees and public employers in labor negotiations is very delicate. Proposed legislation would swing this balance too far in favor of the public employees. BACKGROUND About seventy percent of city general fund expenditures go to pay employees. Compensation and other employment issues can best be resolved when the labor relations laws encourage negotiation and compromise rather than solutions imposed by arbitrators. In order for the negotiation process to work, there must be a balance between the employer and employees so that neither side has an undue advantage. Two recent proposals of public employee representatives would seriously disrupt the existing balance. The first proposal would permit non-essential (non-police or fire personnel) employees to refuse to cross picket lines of other public employees. Thus, if the employees of one union went on strike, the employees in other unions could (and undoubtedly would) refuse to cross picket lines and cause severe disruption in the provision of city services. The second proposal would limit the definition of supervisors. Persons who could effectively recommend but who lacked the authority to hire, transfer, suspend, promote, discharge, assign, reward, and discipline other employees, would no longer be considered supervisory employees. Supervisory employees are often used to maintain the basic services of a city when a strike occurs. Under this proposal, in a great majority of cities (over 700) there would be no supervisory employees since only the city council has the powers listed above. In the remainder of cities, the city manager and perhaps a few others would be the only supervisory employees. The enactment of either or both of these policies would give employees more bargaining power than necessary and disrupt the existing employer/employee negotiation balance. SOLUTION No major changes should be made in the existing public employment labor relations laws, and the two proposals outlined above should not be enacted. 7/29/82 'I E3 J ruvensity avenr Jr east, ase. K��-cul n�innesota 551 01 181 2) 227-5000 • IIII league of minnesota cities LOCAL REVENUE SOURCES ISSUE PAPER PROBLEM The ability of cities to raise revenues locally -- either through the property tax or other means -- is too severely limited. The current levy limit law has created a system that is often arbitrary, unfair, overly complicated, and actually may encourage higher property tax levies than necessary. Statutory restrictions on license fees and against any type of local sales taxes also contribute to a lack of flexibility to raise revenue at the local level. This is especially troublesome at a time when demand for local services is in- creasing and state and federal assistance is dwindling. BACKGROUND Levy Limits. The current law restricts cities to an 8% increase in their general levy each year. It also allows for various special levies for purposes such as payment of bonded debt. Thus the actual amount levied by a city may increase by more than 8% in a given year.* Why is this law viewed as unreasonable by so many cities? The subject is quite complex, but a few major points can be made: 1. The "levy limit base" -- the amount to which the allowable 8% is applied -- has largely been set arbitrarily and may bear no relation to a city's current needs -- either in terms of the non-property tax revenues available to the city or the service needs of its citizens. There must be flexibility in the property tax especially as other revenue sources grow less reliable. 2. In 1982, new bases were set based on the actual levy for taxes payable in 1981 and many cities were "caught with their levies down." Their bases were lowered -- they were in effect penalized for having kept property taxes lower than they could have been. 3. Levy limits may encourage a city to borrow to finance a capital project or purchase that might better be paid by a one-time levy. 4. Since each year's increase is now determined by the prior year's actual levy, the incentive is to use the maximum 8% levy authority whether you need it that year or not. Otherwise the city loses future revenue-raising ability. *This does not mean that the city's budget may increase by 8% or greater, since property tax revenues are usually much less than half of a city's operating budget. This also does not mean that the city mill rate will increase. Growth in assessed valuation often results in a lower or level mill rate. (OVER) 1B3 university avenue east, 5t. paul, minnesota 551 01 (61 2) 227-5600 -2- FACT: The impact of cities on the overall property tax burden is relatively small. For every property tax dollar levied the average distribution has been: 1982 1981 Cities 17.1% 18.5% Schools 49.5% 45.7% Counties 27.4% 29.5% Towns 1.9% 2. 1% Special Districts 2.4% 2.7% Tax Increment Districts 1.4% 1.1% FACT: The large increases in total 1982 property taxes are due primarily to shifts in school financing from state to local sources. For taxes payable in 1982, the net school levy (i.e. the portion actually payable by local taxpayers after deduction of state-paid property tax credits) is approxi- mately 38% higher than the 1982 net levy. At the same time, the amount of state- paid education aids for the 1982-83 school year decreased by almost 17% from the prior year. Schools are obtaining about 36.7% of their total revenues from the locally paid (i.e. not including state-paid credits) property tax for 1982-83, compared to 26.9% for 1981-82. This is the highest share paid by the locally paid property tax since 1971-72. (Note "total revenues" refers to all revenues from state aids and credits and property taxes - about 85% of all school revenues.) Local Sales Tax. Cities are prohibited from enacting any local sales taxes. Duluth has a general sales tax enacted prior to the prohibition, and about six other cities have obtained special authority for limited sales taxes on hotels, motels, amusements, etc. License fees. Cities may exercise a great deal of discretion in setting almost all types of license fees, including those for on-sale liquor, subject to many court decisions limiting cities' power in this area. However, the state has determined statutory maximum license fees for off-sale liquor, on-sale wine, bottle clubs, and Sunday sales. The statutory fees are unrealistically low. SOLUTIONS 1. The 8% levy limit law applied to cities should be repealed. 2. The Governor and Legislature should approve new legislation which: A. Allows all cities to tax at local option, hotels, motels, admissions or amusements. B. Remove the few existing statutory maximum license fees for off-sale liquor, on-sale wine, bottle clubs, and Sunday liquor. 7/29/82 Hip 11111017p 4 _ league.:::: of ... _1innEsoca cities LOCAL GOVERNMENT AID ISSUE PAPER PROBLEM The level of funding for the Local Government Aid (LGA) program has been steadily decreasing, thereby eroding a major source of revenue to cities. BACKGROUND LGA is paid to all 855 Minnesota cities to be used for general government purposes. It is distributed on the basis of a formula. Cities rely on LGA to varying degrees, depending on such factors as the historical formula distribution changes and other sources of revenue available to the city. Until 1981, LGA worked in conjunction with the levy limit law to ensure that LGA dollars spent by the state would replace dollars that-might otherwise be raised through the property tax. The levy and aids used to equal the "levy limit base", which was allowed to increase by 8% overall. In 1981, the two systems were divorced, so that levy limits no longer reflect changes in LGA funding. Since only the previous year's levy is allowed to increase by 8%, the increase in overall revenues may be much less than 8%, especially since LGA has been cut significantly. One result is that losses in LGA cannot be recouped from the property tax -- the revenues have simply "disappeared". Another result is that "high LGA" cities -- hardest hit by cuts -- have relatively lower levy limits and so are caught in a double bind of limited revenues. FACT: LGA payments to cities have been decreasing. Real Increase Calendar Amount Paid Percent Increase (Decrease) Year To Cities (Decrease) (corrected for CPI) 1978 $162,612,298 -- -- 1979 189,824,764 16.7% 5.3% 1980 208,274,623 9.7% (2.7%) 1981 213,255,187 2.4% (6.5%) 1982 205,420,204 (3.7%) (17.2%) (Note: The most conservative analysis shows that overall state spending for the 1981-83 biennium increased 6.3% over the 1979-1981 biennium.) (OVER) I f vt,1 1 1( A,. t ,,, ,i C, [G 1 RJ 22 7--5600 -2- FACT: LGA is a key revenue source for many cities. LGA comprises about 16% of the state-wide total of city governmental revenues. However, many cities actually rely on LCA to a greater extent than that figure indicates. In November, 1981, 142 cities responding to a League survey stated that LGA comprised at least 30% of their 1982 operating budget. 61 of those cities stated that LGA comprised 40% of their operating budget. A separate study by the Minnesota Project in 1981 found that LGA comprises from 25-60% of expenditures for about half of cities with a population 2,500 to 10,000 and for three-fourths of cities under 2,500. SOLUTION The Governor and Legislature should take the necessary budget, tax and appropriate actions to ensure that the amount already appropriated for 1983 LGA is not cut. Assuming the current state-local finance system is still in place in 1984, the 1984 LGA appropriations should increase at least at the same rate as state revenues. 7/29/82 C � CITY OF SHAKOPEE ;. . = ‘": ,',,I INCORPORATED 1870 et' ;' 129 E. First Ave. - Shakopee, Minnesota 55379-1376 (612) 445-3650 41101L1l Jfiy . 4 August 11 , 1982 Mr. H. L. Weinandt 2984 Marschall Road Shakopee , MN 55379 Re : Maintenance of Roads in Weinandt Acres Dear Mr. Weinandt : As you know, City Council asked that I confer with Jim Karkanen, the Street Superintendent , to determine the level of maintenance required on the shoulder of roads in Weinandt Acres . Jim indicated that his crew will regrade the shoulders and replace material where needed to fill low spots , etc . Jim said that this work would be scheduled for completion before August 31st . If you have any further questions please contact me. Sincerely, . l'. --.\ t 47,,,,6,0„ John K. Anderson City Administrator JKA/jms cc : ity Council Jim Karkanen J T 17 c // t' c 7 r I 0 I I r oi J r c' -, s V l 1 0 1 J An Equal Opportunity Employer /C MINUTES OF THE SHAKOPEE PUBLIC UTILITIES COMMISSION (Regular Meeting) The Shakopee Public Utilities Commission convened in regular session on July 7th, 1982 at 4:30 P.M. in the Utilities meeting room. Commissioner Bishop offered a prayer for divine guidance in the deliberations of the Commission. MEMBERS PRESENT: Commissioners Bishop, Nolting and Kirchmeier. Also Liaison Wampach, Haager.'Vari Haut and .Secretary Mendenc John Anderson, City Admirfistrator; Mayor Reinke .and Rod°'Kraes were::also present Superintenmlent Leaveck was absent. Motion by Kirchmeier, seconded by Nolting that the minutes of the June 7, 1982 regular meeting be approved as kept. Motion carried. BILLS READ: City of Shakopee 20,032.00 American National Standards Institute, Inc. 5.75 Androc Products, Inc. 268.00 Auto Central Supply Co. 17.49 Battery Tire Warehouse 31.22 Berens Super Market 141.14 Boardman, Suhr, Curry and Field 3,260.00 Border States Electric Supply Co. 41.30 Boustead Electric and Manufacturing Co. 37.59 Capesius Agency, Inc. 14,938.50 Burmeister Electric Co. 1,478.80 City of Shakopee 1,552.17 City of Shakopee 11,836.44 Clay's Printing Service 342.25 Coinco Coin Acceptors, Inc. 311.56 Julius A Coller II 20.10 Elk River Concrete 50.00 Dressen Oil Co. 388.33 Dunnings Hardware 3.20 Feed Rite C *trols, Inc. 1,316.53 Goodin Company 110.24 Harmons Hardware Hank 46.29 Hanus Mechanical Service 1,134.00 Juba's Super.Valu 20.99 Krass, Meyer, Kanning and Walsten 1,284.00 Lathrop Paint Supply Co. 8.96 Ed Leaveck 126.85 Leef Bros. , Inc. 30.30 The Lynde Company 156.71 Ted Neisen 248.00 Northern States Power Co. 827.44 Northern States Power Co. 215,571.60 Northland Electric Co. 55.89 North Star Water Works Products 205.39 Northwestern Bell Telephone Co. 247.23 Schoell and Madson, Inc. 70.50 Serco 56.00 Shakopee Ok Hardware 91.94 Shakopee Lumber Co. 215.00 Shakopee Public Utilities Commission 334.57 Shakopee Services 18.00 Shakopee Valley News 80.19 Starks Cleaning Service 17.30 Suel Business Equipment 4.52 Superintendent of Documents 25.00 Total Tool Supply Co. 1,779.70 Valley Propane, Inc. 10.43 Vaughn's 53.80 Lou Van HOut 148.14 Voss electric Supply Co. 491.35 Water Products Co. 271.91 Wesco 534.29 Wills Auto 712.50 Zip Penn, Inc. 40.12 Ed Sharkey 659.84 Ray Siebenaler 628.30 R.J. Joachim 650.72 Motion by Kirchmeier, seconded by Nolting that the bills be allowed and ordered paid. Motion carried. Rod Krass, City Attorney was present to inform the Commission of their options available in the acquisition of the Minnesota Valley Electric Cooperative customers. A discussion followed. Manager Van Hout read a communication from the Community Services regarding the baseball field lighting and the tennis court lighting. The letter dated June 30, 1982 will be placed on file. A letter from Mr. John Ahern regarding the Hwy 101 trunk water assessment was read and a discussion followed. Motion by Nolting, seconded by Kirchmeier that the recommendation from the Shakopee Public Utilities Commission to the Common Council of the City of Shakopee be to not reopen the assessment hearing and that the Public Utilities Commission declines payment of any damages regarding Mr. Ahern's assessment. Motion carried. Motion by Kirchmeier, seconded by Nolting that the minutes of the June 15, 1982 special meeting be approved as kept. Motion carried. There will be a meeting regarding the Northern States Power Co. acquisition as soon as the consultants return with the required figures Manager Van Hout brought the Commission up to date on the redividing of the service area with Minnesota Valley electric Cooperative on the Sand Point Subdision. This matter had been settled between the staffs but will be formalized with a Resolution by the Commission. Manager Van Bout brought the Commission up to date on the progress of Pumphouse #6. The Pumphouse is operable but has to be cleared of the sand before it is put into operation. Liaison Wampach advised the Commission of City Council action on the insurance package. The status of the acquisition of Lock and Dam #2 was discussed. The electric Service for the new addition to St. Francis Hospital was discussed. A discussion was held on the costs incurred involving the changing of transformer sizes due to the new addition. There was a total of 5 fire calls for the month of July, 1982 for a total of four hours. Commissioner Kirchmeier advised the Commission on some of the provisions in the cable T.V. ordinance draft. There were no new plats for the month of July, 1982. Motion by Nolting, seconded by Kirchmeier that the meeting be adjourned. Motion carried. The next regular meeting was set for August 9, 1982 at 4:30 P.M. in the Utilities meeting room. A special meeting will be held on July 13, 1982 at 4:30 P.M. g-!-ce • Lou an Out t IC/ 1 MINUTES OF THE SHAKOPEE PUBLIC UTILITIES COMMISSION (SPECIAL MEETING) The Shakopee Public Utilities Commission convened in special session at 4:40 P.M. on July 13, 1982 in the Utilities meeting room. Commissioner Bishop offered a prayer for divine guidance in the deliberations of the Commission. MEMBERS PRESENT: Commissioners Bishop, Nolting and Kirchmeier. Also Liaison Wampach, Utilities Manager Van Hout, Superintendent Leaveck, City Administrator John Anderson, Attorney's Rod Krass and Dick Olson, Financial Consultants Derick Dahlen and George Hoedemann. Attorney Krass gave an update of the matter and presented various options. Discussion followed. Motion by Commissioner Nolting, that the Utilities Commission requests City Council to file an appeal on the condemnation award to District Court. Motion seconded by Commissioner Kirchmeier. Motion carried. Motion by Kirchmeier, seconded by Nolting that the meeting be adjourned. Motion carried. atfoo ,"" 74-- ou n Hout, Manager .44 MEMO TO: John K. Anderson, City Administrato FROM: Gregg Voxland, Finance Director RE: Mileage Claim - Fire Department DATE: August 13 , 1982 Introduction The Fire Chief has submitted a claim for mileage on behalf of Marvin Athmann in the amount of $11 . 20. Background The trip was made by Mr. Athmann to attend a Fire Relief Associa- tion meeting. It appears to staff that this claim is more appropriately an expense of the Relief Association and not the City. A review of vouchers for 1981 showed that the City did not pay for a similar trip. It appears that the City did pay for a similar trip in 1980, but staff did not "catch it" to question the claim. Alternatives 1 . Approve the claim for payment of $11 . 20 to Marvin Athmann. 2 . Disapprove the claim. Recommendation Alternative #2 is recommended. Action Requested Move to disallow the mileage claim of $11 . 20 for Marvin Athmann. GV/jms 5 iC Lo1 1 O s-a N 2 m }° t0) E jJ � s0) 0 c�• - Om El X L0 } tos >i..) o ) >NQ- � } L. 'I a s a a)� a' )c3 48 El,,-F-72_ a) 0 '„3 Q s } \WO Q N Z . 0) 0= o t. Ot • C aL > =Q aOC O UV ,Os ._ a 2-'11 '6' N L -2 t •-.4 . WZZ ocOt C ill 52 tn •F ED 1. Q � Qa o�� a ;'7 L L a) Ca) • i N ” tQ � 3a ) aQ � o W 0)-0 s C Oa }mOCcaa 'Ca } o0 c > } E OLLsp a)� E °� � � VC— U), N = c aE Z 7 N Q} aO E a } a) O +,_ 7 a O / f = -aC 7O w 0O -a m ' t c ua. 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V) at) (D Q 1a m7' o -° - C -oQ Q70n� � 7 N ' a �, VZ � sC•- Ts(7 00 _. 3 N. = Q Q (OD 0-cQ 7-O Q N(Q (Q Q -0n30 (.0 (0. =c -p o 3 O�0 F (Q 7 7 c c c = T (D = = = 7 0 N D o�C Q O ....< 2, (D _. 0 Q '3' N 7 Ci r^ o• p (Q 0 T= _ ° D 7 C 7 N -► x (�D O 7 3 n • -O CD n c D• 0 0 = c0 -' 0--L•+ Os ( 1 H _ rt,CD 13 11 Cnif eb Ztatez Sienafa r WASHINGTON, D.C. 20510 AUG 1 3 1982 August 10 , 1982 CITY®F 31-1AKOPEE Mr . John Anderson City Administrator 129 E. First Avenue Shakopee , Minnesota 55379 Dear John : Thanks for getting in touch with me concerning legislation (S . 2541 ) affecting Industrial Development Bonds ( IDBS) . The entire issue of IDBs was considered and included in the Tax Equity and Fiscal Responsibility Act (H.R. 4961 ) , which recently passed the Senate . As you may know, when Congress convened earlier this year , deficit projections for 1983 and beyond were close to $200 billion per year . Clearly, it was necessary to take some action to reduce these . My preference was to hold back the growth of all government spending and resort to revenue increases only if reasonable spending and reductions were not enough to significantly impact the budget deficit . The plan that I had worked out would have reduced spending by $234 billion during the next three years and increased revenues by $65 billion . The final decision that Congress reached regarding the budget was to reduce spending by $281 billion and raise revenues $98 billion (pretty close to my original plan ! ) . While I felt the $98 billion was a bit too high, I also was aware that it was the best compromise figure we were going to reach in negotiating between those Congressmen and Senators who wanted to balance the budget only by tax increases and those who wanted no tax increases at all . The agreement represented a good balance between spending cuts and revenue increases , with nearly $3 of spending reductions for every $1 of tax increases . Once the President ruled out any change in the individual tax cuts ( I must say I agreed and the President let us know that he would veto any bill that touched the individual tax cuts) , the Senate Finance Committee , which writes tax legislation , decided to first get at the taxes that are due but not paid before they took a look at increasing taxes or establishing new taxes . And, in fact , the tax bill gets a good deal of the $98 billion from improved reporting and compliance . Although Industrial Development Bonds ( IDBs) have been t abused by some users, I do not believe they should be eliminated, especially when so little long-term financing is available . As you know, the Treasury Department originally proposed August 10 , 1982 Page 2 restrictions on IDBs that would have effectively eliminated their use . The bill reported by the Finance Committee (of which I am not a member ) also proposed substantial restrictions , particularly for small issues of IDBs. The committee recommended public hearings and approval by elected officials before tax-exempt IDBs could be issued. It also recommended that the business using tax-exempt IDBS could not use the Accelerated Cost Recovery System (ACRS) to depreciate the facilities financed by IDBS. Instead, the facilities could only be depreciated on a straight-line method over a longer useful life rather than the ACRS life . Finally, the committee recommended prohibiting the use of small issue IDBs after 1985 . Because of the importance to Minnesota and small business, I had strong reservations about the committee bill , especially the depreciation provisions and sunset of small issue IDBs. During the marathon session on the Senate floor it became clear , however , that some restrictions would be passed. As a result , I worked with Dave Durenberger and other Senators to develop a compromise that Senator Dole (the chairman of the committee) would accept . That compromise retained the public hearing and approval requirments , and partially eased the restrictions on depreciation and the sunset date . Facilities financed by IDBS must still be depreciated on a straight-line method, but over the ACRS life instead of the longer life recommended by the committee . Unfortunately, the bill would prohibit the sale of small issue IDBs after September 30 , 1987 (we may be able to change this before 1987 ! ) . The bill also prevents the use of small issue IDBS for recreation and entertainment facilities like golf courses, massage parlors and skating rinks. While the compromise restricts the use of IDBS more than I would like , it is better than the committee recommendation. I believe these changes will still allow the use of IDBS for legitimate purposes. With this compromise , I doubt very much that S . 2541 will receive attention in this Congress. However , should its concept be taken up in a future Congress, I ' ll keep your views in mind. While I did not agree with all the provisions the Finance Committee included, I felt that the overall bill was a good one . Without question once the Senate began taking out one provision after another , the whole bill would have unravelled and we' d be left facing $200 billion plus deficits. Getting the budget August 10 , 1982 Page 3 deficits under control has to be 5,Aur t.\. priority. If interest rates don ' t come down (and they . re ) we! can all look forward to a very gloomy future and very seveie remdies . Again, thanks for contactifg me/ S 'h ere , udy Boschwitz United States Senator RB/cb TENTATIVE AGENDA ADJ .REG.SESSION SHAKOPEE, MINNESOTA AUGUST 17 , 1982 Mayor Reinke presiding 1] Roll Call at 7:00 P.M. 2] Recess for H.R.A. Meeting 3] Reconvene 4] Approval of Minutes of July 20th, August 3rd and August 10th, 1982 5] Communications: a] Nat ' l . League of Cities re : Housing Legislation/Fiscal Year 1983 6] Liaison Reports from Councilmembers 7] RECOGNITION BY CITY COUNCIL OF INTERESTED CITIZENS : a] Wally Stock, Mayor of Prior Lake b] 8] Old Business: a] Minnesota Valley Fifth Addition Storm Sewer 9] Planning Commission Recommendations: a] Final Plat of Eagle Creek Junction 1st Add'n. - Res. No. 2034 10] Resolutions and Ordinances: a] Res. No. 2043, Authorizing Sale and Issuance of Commercial Development Revenue Bonds in Amount of $1, 100,000 for the Shakopee Professional Group b] Res. No. 2042, Appointing Judges of Election and Establishing Compensation c] Res. No. 2039, Setting A Hearing On Expanding The Boundaries of the Highrise Tax Increment Project and District (bring item 7a from 8/3 agenda) 11] New Business: a] Downtown Redevelopment Project: 1] Commercial Redevelopment Loan Procedures, and 2] Application Guidelines - Discussion b] 8:00 P.M. PUBLIC HEARING - Expanding Boundaries of the Highrise .Tax Increment Project and District - memo on table c] Illegal Rental Unit - 436 East 5th Avenue d] Regulations on Issuance of Pool Table Licenses e] Liquor and Beer License Regulations f] Approve Payment of Bills in Amount of $262,036. 28 g] Change Order No. 2 for Valley Industrial Boulevard South 12] Consent Business : a] Application for On Sale Sunday Liquor License from VFW b] Travel/Subsistence Reimbursement for Jeanne Andre c] Traffic Control/4th and Spencer d] Transfer of Funds 13] Other Business: a] b] c] 14] Adjourn to Tuesday, August 24th, at 7:00 P.M. (Budget Work Session) John K. Anderson City Administrator TENTATIVE AGENDA SHAKOPEE HOUSING AND REDEVELOPMENT AUTHORITY Adjourned_ Regular Session August 13 , 1982 Chairman Leroux presiding 1 . Roll call at 7 : 00 P.M. 2 . Approval of minutes of August 3 , 1982 . 3 . Fourth and Minnesota Neighborhood Revitalization Project . a . Authorize closings . 4. Proposed Amendment to Elderly Highrise Redevelopment Project - Resolution No. 82-5 . 5 . Downtown Redevelopment Project Discussion of Commercial Rehabilitation Loan Program Procedures and Guidelines for Interest Rate Reduction Program. 6 . Other Business . 7 . Adjourn. Jeanne Andre Executive Director ti:, V PROCEEDINGS OF THE HOUSING AND REDEVELOPMENT AUTHORITY REGULAR SESSION SHAKOPEE, MINNESOTA AUGUST 3, 1982 Chrm. Leroux called the meeting to order at 7:00 P.M. with Comm. Vierling, Wampach and Colligan present. Absent was Comm. Lebens. Also present were Jeanne Andre, HRA Director; John K. Anderson, City Admr. and Judith S. Cox, City Clerk. Vierling/Wampach moved to approve the minutes of June 29, 1982 as kept. Motion carried unanimously. The HRA Director presented the quarterly report from the Scott County HRA regard- ing housing assistance to Shakopee residents. Chrm. Leroux stated he had been told that Shakopee received 50% of the available block grants, and asked for clarification. He stated he wanted to be sure Shakopee was receiving its fair share. The HRA Director explained that if the City applied for its own Block Grant, it did not participate in Scott County 's program. Further discussion ensued. The HRA Director stated she would determine what percentage Shakopee is receiving for rehabilitation grants, plus the unallocated amounts. The City Admr. stated this percentage information could be requested as an on-going quarterly report. Colligan/Vierling moved to approve the letter from O'Connor and Hannan, dated June 24, 1982, for fees for services rendered on the Downtown Tax Increment Project and District. Roll Call: Ayes; Vierling, Leroux, Colligan Noes; Wampach Motion carried. The HRA Director gave a verbal report on the Rehabilitation Loan Program which is in the process of establishing criteria and requirements for eligibility for rehab- ilitation loans for downtown businesses. She stated it is now being looked into at the staff level, and may be ready for Council review on August 17, 1982. The HRA Director stated that one of the houses in the Fourth and Minnesota Neigh- borhood Revitalization Project should be ready to be closed within the next two weeks. Colligan/Wampach moved to authorize appropriate HRA officials to make, execute and deliver deed to Lot 5, Block 3, Macey Second Addition, subject to inspection and approval by staff of improvements constructed therein, to Goodwin Builders, Inc. This action to be in accordance with Contract for Deed between Goodwin Builders, Inc. and the Shakopee Housing and Redevelopment Authority, for the purpose of conveying said property to authorized buyer identified by HRA. Roll Call: Ayes; Unanimous Noes; None Motion carried. Chrm. Leroux stated the Shakopee Development Comp. , which was formed many years ago and went dormant, is again becoming active to participate in the Minnesota Star Cities Program. They hope for a joint meeting between them and the City Council, ICC and Downtown Committee to establish mutual goals. Vierling/Wampach moved to adjourn to August 17, 1982 at 7:00 P.M. Motion carried unanimously. Meeting adjourned at 7:20 P.M. Jeanne Andre HRA Director Diane S. Beuch, Recording Secretary 3 MEMO TO: Members of the Shakopee Housing and Redevelopment Authority (HRA) FROM: Jeanne Andre, Executive Director RE: Closings Under the 235 Homeownership Program Fourth and Minnesota Neighborhood Revitalization Project DATE : August 13 , 1982 Background: The final two units in Macey Second Addition should be ready to close by the end of August . The units are : Lot 3 , Block 3 , to be purchased by Lois Keim constructed by Goodwin Builders , Inc . Lot 4, Block 3 , to be purchased by Mark and Jeanne Foudray constructed by Goodwin Builders , Inc . The units are not yet complete , but will be before staff arranges for the execution of the deeds . The Shakopee Building Inspector and FHA inspector must grant final approval before the closings occur. Requested Action: The following motions should be adopted by the HRA to prepare for the closings : 1 . Authorize appropriate HRA officials to make , execute and deliver deed to Lot 3 , Block 3 , Macey Second Addition, subject to in- spection and approval by staff of improvements constructed therein, to Goodwin Builders , Inc . This action to be in accordance with contract for deed between Goodwin Builders , Inc . and the Shakopee Housing and Redevelopment Authority, for the purpose of conveying said property to authorized buyer identified by HRA. 2 . Authorize appropriate HRA officials to make , execute and deliver deed to Lot 4, Block 3 , Macey Second Addition, subject to in- spection and approval by staff of improvements constructed therein, to Goodwin Builders , Inc . This action to be in accordance with contract for deed between Goodwin Builders , Inc . and the Shakopee Housing and Redevelopment Authority, for the purpose of conveying said property to authorized buyer identified by HRA. JA/cau ej RESOLUTION NO. 82-5 A RESOLUTION DETERMINING TO UNDERTAKE A MODIFIED REDEVELOPMENT PROJECT BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Shakopee, Minnesota, as follows: Section 1. Recitals. 1.01. There has previously been established an Elderly Highrise Redevelopment Project No. 1. 1.02. There has been prepared and presented to the Authority a Modification to the amended Revelopment Plan dated July 30th, 1982, proposing a modification to said Elderly Highrise Redevelopment Project, Project No.1 (the Project) . 1.03. The Authority has investigated the facts and reviewed the proposed Modification, and hereby finds, determines and declares that it is necessary and in the best interests of the City and its inhabitants for the Authority to undertake and complete the Project in accordance with said Modified Redevelopment Plan, and in accordance with the modification authority in Paragraph XI of the original Amended Redevelopment Plan for said Project. 1.04. The undertaking and completion of the Project in accordance with said Modified Redevelopment Plan, will result in the accomplishment of the public purposes and objectives set forth in Minnesota Statutes, Sections 462.411 through 462.485. Section 2. Submission to Planning Commission. The Secretary is authorized and directed to submit a certified copy of this Resolution and said Modification to the Redevelopment Plan to the Planning Commission of the City and shall request the Commission to issue its written opinion as to whether said Modification to Redevelopment Plan conforms to the comprehensive plan for the development of the City, the Zoning Ordinance and to any other general plan for the development of the Project Area and surrounding area. Section 3. Submission to City Council. The Secretary is authorized and directed to submit a certified copy of this Resolution to the City Council and requests that said City Council accept the proposed Modification and call a public hearing on said Modification to be held at some time subsequent to the receipt of the written opinion of the Planning Commission that the Modification to said Redevelopment Plan conforms to the comprehensive plans for the development of the City and for the conformance to the Zoning Ordinance and any other general plan for the development of the Project area. Upon receipt of such written opinion by the Planning Commission and subsequent to the holding of said public hearing, this Authority does request that the City Council approve the Modification to the Redevelopment Plan in accordance with Minnesota Statutes, Section 462.521. MEMO TO: Shakopee Housing and Redevelopment Authority (HRA) Commissioners FROM: Jeanne Andre , Executive Director RE: Proposed Amendment to the Elderly Highrise Redevelopment Project DATE: August 13 , 1982 Introduction and Background : As noted at the August 3 , 1982 meeting of the HRA, Assistant City Attorney Krass has recommended revisions to the proposed amendment to the Amended Redevelopment Plan for the Elderly Highrise Redevel- opment Project presented on August 3 , 1982 . If Mr. Krass prepares the suggested revisions prior to the August 17th meeting of the HRA, they will be presented at the meeting. Recommended Action : Adopt Resolution No. 82-5 , A Resolution Determining to Undertake an Amended Redevelopment Project , if appropriately revised by the Assistant City Attorney. JA/cau eA-5 Cou toLt L. f / A MEMO TO: Mayor and Council FROM: John K. Anderson/City Administrator RE : Downtown Redevelopment Project Commercial Redevelopment Loan Procedures and Application Guidelines DATE : August 12 , 1982 Introduction : The attached procedures and guidelines have been drafted by O' Connor & Hannan and reviewed by Rod Krass , Jeanne Andre and myself . The Application Guidelines will have to be adopted by the HRA and/or the City Council in Ordinance form. Program: The Commercial Redevelopment Loan Program is designed to utilize the lending expertise of our local banks and savings and loans . Rod Krass and I will be meeting with them to go over the program now that we have the procedures and guidelines . The program procedures are designed to minimize City involvement in the loan process so that it can be handled in a standard loan fashion with City participation being limited to initiating the process , preliminary approval , inspection and a final approval (note another step is included if "IDBS" - Industrial Revenue Bonds are involved) . The program' s Application Guidelines are designed to be broad enough to handle the loan request that we might experience from the Down- town Redevelopment Project area . The Guidelines include all of the Minnesota State Statute enabling legislation requirements . Alternatives : 1 . Drop the program as an element of our Downtown Redevelopment Project . 2 . Accept the program as drafted as the guidelines for the Commercial Redevelopment Loan element of our Downtown Redevelopment Project . 3 . Amend or otherwise change the proposed guidelines and procedures . Recommendation: The staff and the consultants feel that the loan program may well be one of the keys to redevelopment of Shakopee ' s downtown. We therefore recommend Alternative #2 . We now have two businesses in the Downtown Redevelopment Project Tax Increment District that are waiting for final approval of this program and we have had an inquiry from two more . Action Requested : Direct staff to prepare the necessary ordinance creating the guidelines for the Commercial Redevelopment Loan Program for the Downtown Redevel- opment Project . JKA: cu Attachment O 'CONNOR & HANNAN PATRICK J.O'CONNOR SUITE 800 FREDERICK W.THOMAS ATTORNEYS AT LAW 1919 PENNSYLVANIA AVENUE N.W. JOE A.WALTERS WASHINGTON, D.C. 20006 THOMAS A.KELLERIQ MICHAEL E.MKGUIRE THIRTY-EIGHTH FLOOR I D5 TOWER (202)887-1400 ROBERT J.CHRISTIANSON,JR. CHARLES B. FAEGRE 80 SOUTH EIGHTH STREET PATRICK J.O'CONNOR FRANK J.WALZ WILLIAM T.HANNAN• EDWA W. JAMES R.DORSEY MINNEAPOLIS, MINNESOTA 55402 JOHNRJD.FLYNNOOKE• ANDREW J. SHEA WILLIAM R.McGRANN H.ROBERT HALPER• WALTER C.PARKINS JOSEPH E.DILLON KENT E.RICHEY THOMAS H.OUINN• (612)341-3800 JAMES OTIS REYER HOWARD G.FE LD MAN• JAMES A.RUBENSTEIN TELEX 29-0584 DAVID R.MELINCOFF• DELANCEY W.DAVIS• JEREMIAH J.KEARNEY TELECOPIER 612 341-3800 (256) RICHARD G. MORGAN WILLEM F.VAN VLIET THOMAS R.SHERAN THOMAS V.VAKERICS• MYLES J.AMBROSE• JOHN A.BURTON,JR. JAMES R.CASSERLY TERENCEE P. CARNIVAL ROBERT A.BRUNIG VELAZOUEZ, 21 DAVID BURLINGAME P. BOYLE• HOPE S. FOSTER• FREDERICK W.MORRIS MADRID I, SPAIN MARTIN M. BERLINER • BRIAN P.PHELAN• WILLIAM E.FLYNN DOUGLAS J. FRANZEN 431-31-00 GREGORY A. KEARNS• THOMAS R.JOLLY• WILLIAM D. HULL TELEX 23543 ANN WOOD ROBERTS • BARRY J. CUTLER• MICHAEL J.CONLON• DAVID W.KELLEY PATRICK J. CANTY• DONALD S.ARBOUR• STEVEN J.TIMMERFOCAL COUNSEL SUITE 3100 SECURITY LIFE BUILDING PETER C.NISSEL• DAVID KANTOR LINDA C. SCHWARTZ FRANK J. WIRGA- 1616 GLENARM PLACE PATRICK E.O•DONNELL• ARLIN B.WAELTI DENVER, COLORADO 80202 J.WILLIAM W. HARSCH• CAROL N.PARK• (3031573-7737 JOSEPH E.PATTISON• 'IIARII B W. GARIII;ON III• WII.I.IAM 1 1,1 111 11,1III 1•I''3) •Ir (111/N4E1 GORDON K.I.,AIf.R CHRISTOPHER H. MUN( II • ROBERT J.STEELE• CHRISTINA W. FLEPS• MICHAEL E.VEVE• MARTHA PRIDDY PATTERSON• JAMES H. HOLT• MARY SUSAN PHILP• GRANT E. MORRIS,JR.• F.GORDON LEE• DONNA R.FITZPATRICK• BRIAN DUNN• LAURENCE ROSCH ER• BRENDA A.JACOBS• J.TIMOTHY O'NEILL August 5, 1982 OF COUNSEL JOSEPH F. CASTIELLO• T. BROOKE EARN SWORTH 1,• JOHN FORD EVANS,JR.• •NOT MEMBER OF MINNESOTA BAR Mr. John Anderson R 'Eta • City Manager "` City of Shakopee City Hall AUG 619 2 129 East First Avenue Shakopee, Minnesota 55379 crry OF e�AKOPEE Dear John: Please find attached revised Loan Application, second draft of "Proposed Guidelines for City of Shakopee Commercial Re- habilitation Loan Interest Rate Reduction Program, " and first draft of "City of Shakopee Commercial Rehabilitation Loan Procedures. " I believe these documents reflect our discussion of Monday, August 2 . In addition, I have taken the liberty of making some further revisions to the proposed guidelines, specifically: (i) Clarifying paragraph A. 1 . to make clear that the applicant need not be the owner of the building, but that the owner' s approval of the loan, repairs, and mortgage is a necessary prerequisite to any loan; (ii) Broadening the language of paragraph B. 4 .b. to make clear that all mechanical or structural components of the building are eligible for funding through rehabilitation loans; 5 Mr. John Anderson August 5, 1982 Page 2 (iii) Modifying. paragraph B. 4 .c. to allow for the funding of reasonable additions of a commercial character to existing buildings in conjunction with other rehabilitation repairs; (iv) Adding new paragraph C. 8 . , providing that after completion of rehabilitation, the building must remain insured for its full replacement value for the life of the loan. If you have any questions, or additional suggested revisions to these documents, prior to meeting with the banks, please do not hesitate to contact me. Sincerely yours, Wood Kidner WK:ks Enclosures cc: Rod Krass, City Attorney Jeanne Andre, Chairman of the Housing and Redevelopment Authority tin and for the City of Shakopee City of Shakopee/Procedure for Rehabilitation Loans FIRST DRAFT A-O'CONNOR & HANNAN August 3, 1982 CITY OF SHAKOPEE COMMERCIAL REHABILITATION LOAN PROCEDURES STEP ONE Potential loan applicant contacts City. Applicant is directed to contact: Housing and Redevelopment Authority in and for the City of Shakopee, Minnesota Attn: Jeanne Andre City Hall 129 East First Avenue Shakopee, Minnesota 55379 The HRA should forward a copy of the Program Guidelines to the potential applicant, together with a list of participa- ting lenders ( "Lenders ") and the appropriate contact persons at each Lender . Lenders shall have primary responsibility for the processing of applications for loans under the Pro- gram. STEP TWO The potential Applicant contacts a Lender . At the in- itial meeting with the Applicant, the Lender should take the following actions : A. Have the applicant complete a Loan Application for the Program. B. Review the Program restrictions with the Applicant to determine eligibility of the building and the proposed improvements under the Program. C. Determine if Applicant can provide a mortgage on the property to be rehabilitated to secure the loan. All mortgages must be executed by the fee owner of the pro- perty. If the Applicant is not the fee owner , written agreement of the fee owner to execute the mortgage should be obtained prior to any other action on the loan application. D. Review estimated costs Applicant will incur to obtain the loan: Bond Counsel Fee (O'Connor & Hannan) City of Shakopee Administrative Fee Lender ' s Loan Fee Title Insurance Cost (Morgagee' s Policy) Recording Fees (Mortgage, Bond Documents) _ Charge for Lender ' s Credit Report Appraisal Fees These costs will be eligible for inclusion in the loan. E. Advise Applicant that if the Housing and Redevelop- ment Authority (HRA) should give preliminary approval to the Loan Application, an inspection by the City and/or the Lender , a City Code Compliance Report, and an M.A. I . ap- praisal will be necessary. STEP THREE If , after completion of Step 1 , the Applicant desires to proceed with the Loan Application, the Lender should take the following additional steps: A. Have the Applicant complete the Lender ' s loan application. B. Have the Applicant prepare a detailed list of pro- posed improvements and estimated costs for each; plans should also be provided if they have been drawn. C. Applicant ' s Loan Application, together with the list of improvements and estimated costs, and plans, if any, should be forwarded to the HRA for approval , Attention: Jeanne Andre. D. Caution applicant not to begin construction of the proposed improvements prior to final approval of the loan by the HRA. Improvements commenced prior to final loan ap- proval by the HRA shall not be eligible to be financed with loan proceeds . STEP FOUR A. The HRA reviews the Loan Application and supporting documents and gives its preliminary approval to the loan. B. The Lender performs a credit report on the Appli- cant and gives its preliminary approval to the loan. STEP FIVE A. The Lender instructs the Applicant to obtain: (i) an M.A. I . appraisal of the property to be rehabilitated; - 2 - (ii ) an inspection and City Code Compliance Report from the City; and (iii ) firm bids on all improvements to be financed from the loan. The applicant should also prepare and submit personal and business financial statements to the Lender , and approve Lender ' s submission of these statements to the City. _ B. The Lender gives its final approval to the loan. C. The Lender forwards the appraisal, the Code Compli- ance Report, the firm bids , the financial statements, and notification of its final approval to the HRA, Attention: Jeanne Andre. D. The HRA gives its final approval to the loan. If the loan is to be financed through the issuance of an indus- trial development bond (IDB) or tax exempt mortgage , final approval should not be given until the issuing authority (either the HRA or the City) has approved a resolution giving preliminary approval to the issuance of the IDB or tax-exempt mortgage. STEP SIX A. Lender notifies Applicant that rehabilitation work may now begin. B. Lender obtains abstract to property from Applicant and applies for title insurance binder . C. If the loan is to be financed by the issuance of an IDB or tax-exempt mortgage, the HRA notifies bond counsel, O'Conpor & Hannan, 3800 IDS Tower , 80 South Eighth Street, Minneapolis, Minnesota, 55402, Attn: Arlin Waelti , to initi- ate preparation of the necessary bond documents, and places bond counsel in contact with the relevant employees of Lender and with Applicant or Applicant ' s counsel. STEP SEVEN A. Lender , Applicant, and Bond Counsel determine closing date. B. All bond documents are circulated by bond counsel for approval and execution by the parties. C. After closing date is set, mortgage is filed prior to closing. A certificate of filing of the mortgage must be obtained for closing. - 3 - i STEP EIGHT The Closing • A. All bond counsel fees and the City' s administrative fee shall be payable at this time. B: Lender will receive assignment of the mortgage and the promissory note and assignment of the promissory note from the HRA or City, as applicable. C. City will appoint the Lender Trustee for the City for the benefit of any holder (s) of any industrial develop- ment bonds or tax exempt mortgage. D. Bank should obtain a certificate of hazard insur- ance from the Applicant. STEP NINE A. Net proceeds of the loan will be deposited in an escrow account at the Lender , with the Lender acting as Trustee. Lender will disburse from this account pursuant to a Loan Disbursement and Escrow Agreement executed by and between the Lender , the Applicant, and the HRA. B. Upon completion of improvements financed by the loan, Lender will forward sworn construction statement and lien waivers to title insurance company and obtain final title policy. C. Any funds remaining in the escrow account after completion of all improvements to be financed from the loan will Be applied to the loan balance, first to interest and then to principal. - 4 - APPLICATION CITY OF SHAKOPh:r, COMMERCIAL REHABILITATION LOAN PROGRAM Applicant's Name Home Phone Address Bus. Phone Address of Building to be Rehabilitated: Owner's Name, Address, and Phone Number: Building Size: Sq.Ft. No. of Stories: Year Built: Present Use (Names and types of businesses - indicate by floor) : Mortgage or Contract for Deed: Principal balance (Attach oopy of most recent statement) : Mortgagee (Bank) or CD Holder: Other Mortgages or Liens upon the Building: Building Insurance: Company & Policy Number Amount of Coverage Type of Coverage Rehabilitation work proposed and loan amount requested (Attach detailed des- cription of proposed improvements, list of contractors and estimates, and complete cost breakdown: Have other sources of financing this work been sought? If so, please describe: Are any repairs or improvements required by court order, statute, or ordin- ance to be made on this building? If so, please describe. These must be in- cluded in the project: Have you, your family, your business, or tenants in the building ever re- ceived and used the proceeds of any revenue bonds? If so, please describe: I have read the Program Description and Guidelines for this program and agree to abide by its requirements and to provide the necessary information and documents; additionally, I understand and agree that a thorough inspec- tion of the premises to be rehabilitated by agents of the City of Shakopee and/or the Lender will be necessary prior to approval of the loan. Signature Date City of Shakopee/Comm. Rehab. Guidelines SECOND DRAFT-A-O'CONNOR & HANNAN August 4 , 1982 PROGRAM DESCRIPTION AND GUIDELINES FOR CITY OF SHAKOPEE COMMERCIAL REHABILITATION LOAN INTEREST RATE REDUCTION PROGRAM A. ELIGIBLE PARTICIPANTS 1. Any individual, partnership, corporation or other business entity shall be eligible to make application for loans under the Program. The applicant need not be the owner of the premises to be rehabilitated; provided, how- ever , that the owner of the building shall be required to approve the loan and the rehabilitation work, and to execute any mortgage on the building relating thereto. B. ELIGIBLE PROJECTS 1. Loans will be awarded under the Program for the rehabilitation of small and medium-sized commercial build- ings. A commercial building shall be any building the pri- mary ground floor function of which is a retail, service, or office use. 2. Buildings qualifying as small or medium-sized com- mercial buildings eligible for loans under the Program shall have a total floor area not exceeding 20 , 000 square feet. 3r To be eligible, the building to be rehabilitated: a. Must be located within the City of Shakopee Downtown Development District; b. Must be in conformance with the City' s zoning code; c. Must comply, after rehabilitation, with the City' s Comprehensive Plan and with any approved development plan for the Downtown Development District; d. Must not have been identified for public acquisition; e. Must be insured for its full replacement. value. 4 . Improvements and expenditures financed under the Program shall be limited as follows: a. Rehabilitation loans shall not include expenditures for the acquisition, instal- lation or repair of furnishings, person- alty, or trade fixtures. b. In the case of mixed-use structures, eligible improvements shall include only those relating to the commercial portion of the building, the commercial operation of the building, or mechanical or struc- tural repairs relating to the building as a whole (including repairs to the build- ing ' s facade, roof, plumbing, electrical systems, structural elements , heating and cooling systems, fire safety systems and insulation) . All work done must meet City Code. c. Rehabilitation loans shall be used for the rehabilitation of existing buildings, and shall not be used for the construc- tion of new facilities. However , con- struction of reasonable additions to existing buildings which, together with other rehabilitation improvements, will enhance commercial use of the building shall constitute qualifying rehabilita- tion expenses. d. Refinancing of existing debt shall not be allowed under the Program. e. If the rehabilitation work is to be per- formed by the owner or the owner ' s em- ployees , expenditures for labor costs shall not be allowed. C. LOAN REQUIREMENTS AND RESTRICTIONS 1. Applicants must have the financial means to repay the loan, as determined by the lending institution. 2. The applicant shall provide a mortgage on the building as security for the loan. 3. The maximum amount which any applicant shall be eligible to borrow for the rehabilitation of any particular small or medium-sized building shall be the lesser of : (i) $200,000 ; or (ii) 80 percent of the estimated market value of the building after completion of its rehabilita- tion, less the principal balance of any prior mortgage ex- isting on the building as of the time application for the loan is made. 4. The maximum term of any rehabilitation loan under the Program shall be 20 years. 5. The City shall charge an administrative fee in the amount of one-half of one percent (1/2%) of the principal amount of the loan, or $500 , whichever is lesser , with re- spect to each rehabilitation loan made pursuant to the Pro- gram. This fee shall be paid by each loan recipient to the City prior to or at the loan closing. 6 . All costs , expenses, and fees associated with the Project shall be paid by the applicant. Such costs are eligible for inclusion in the loan, and include : a . Cost of materials and labor (unless such labor is that of the owner or owner ' s employees) . b. Architect ' s fees. c. Attorney' s fees. d . Bank charges such as, but not limited to, the following: (i) appraisal fees; (ii) credit reports; (iii) inspections; (iv) abstracting and filing fees; (v) mortgage registration taxes; (vi) title insurance premiums; (vii) service charges. e. The City' s administrative fee. 7. Rehabilitation loans shall not be approved unless the building is being brought into full compliance with the provisions of the City Code. The City and/or the Lender will perform a thorough inspection of the premises to be rehabilitated prior to the approval of any rehabilitation loan under the Program. 8. After rehabilitation, and prior to retirement of the loan, the rehabilitation property must remain insured for its full replacement value. D. SELECTION GUIDELINES In under the Program, approving applications f for heCity shall considerllt bthe followinion g n factors : g (a) The availability and affordability of private mortgage credit; (b) The availability and affordability of other governmental programs; (c) Whether the building is required , pursu- ant to any court order , statute or ordin- ance, to be repaired , improved or reha- bilitated; and (d) Whether the proposed improvements will result in conformance with building and zoning codes and improvement of the aes- thetic quality of commercial areas . 2 . The City shall give priority to the following ap- plications for rehabilitation loans: a. An application to finance repairs or rehabilitation which are required pursu- ant to court order , statute or ordinance; b. An application by an applicant who has been unable to obtain financing through other means; c. An application to finance the rehabilita- tion of a building which is essential to maintaining the commercial nature of an area. 72.A 6 MEMO TO: Members of the Shakopee Housing and Redevelopment Authority (HRA) FROM: Jeanne Andre,Executive Director RE : Establishing Value of Remaining Lots in Macey Second Addition DATE: August 16 , •1982 Introduction: The HRA needs to establish values for lots in Macey Second Addition to be sold in 1982 . Background Information: The actual value of the lots created in Macey Second Addition will not be used in establishing the price of homes sold under the Shakopee 235 Homeownership Program. However, the HRA has created a Promissory Note requiring the home purchasers to repay the Shakopee Housing and Redevelopment Authority an amount equal to the lot value (or a proportion thereof ) if the home is sold within five years of the date of purchase . Therefore we must establish a value for each lot to be used in the Promissory Note . Based on the recommendation of LeRoy Houser, Shakopee Building Inspector, I recommend that a price of approximately $1 . 25 per square foot be used to establish a value for the lots on which buildings are now scheduled for construc- tion. Applying that rate to each lot and leveling the price off, I recommend the establishment of the following prices for the lots in Macey Second Addition: Lot 3 , Block 3 $11 , 200 Lot 4, Block 3 $11 , 300 Lot 5 , Block 3 $11 , 350 Recommended Action : Adopt Resolution 82-6 through 82-8 establishing the above lot values ( copy of 82-6 enclosed as sample ) . JA/cau RESOLUTION NO . 82-6 A RESOLUTION AUTHORIZING HRA OFFICIALS TO ENTER INTO PROMISORY NOTE AND SECOND REAL ESTATE MORTGAGE FOR PAYMENT OF LOT VALUE UPON RESALE BY HOMEBUYER FOR LOT 3 BLOCK 3 , MACEY SECOND ADDITION WHEREAS , the Housing and Redevelopment Authority in and for the City of Shakopee , with the assistance of a Community Development Block Grant , is able to provide lots at no cost to qualified low- and moderate-income families in its Fourth and Minnesota Neighborhood Revitalization Project ; and WHEREAS , the Authority , in the administration of this program , would like to encourage sale to families who plan to homestead and improve the property over an extended period ; and WHEREAS , this goal can be encouraged by the execution of a "Promissory Note for Payment of Lot Value upon Resale by Homeowner" and a Second Real Esta Mortgage between the homebuyer and the Authority ; NOW, THEREFORE , BE IT RESOLVED , that the Housing and Redevelop- ment Authority in and for the City of Shakopee hereby authorizes and directs the appropriate officials to execute such a promissory note and second real estate mortgage in the amount of $11 ,200 with a buyer selected to purchase Lot 3 , Block 3 of Macey Second Addition. Adopted in adjourned regular session of the Housing and Redevelop- ment Authority in and for the City of Shakopee held this day of , 1982 . Chairman ATTEST : Executive Director 0/ cc • cl&z,vizeiafidze 411(4PelciiP National 1301 Pennsylvania Avenue NW Officers: League Washington,D.C. President Ferd L.Harrison Of 20004 Mayor,Scotland Neck,North Carolina Cities (202)626-3000 First Vice President Cable:NLCITIES Charles Royer Mayor,Seattle,Washington Second Vice President g a j George Latimer Mayor,St.Paul,Minnesota ) Immediate Past President • �' William H.Hudnut,Ill Mayor,Indianapolis,Indiana Executive Director Alan Beals CITY OF ti',:f EE To: (1) Mayors and Managers of Direct Member Cities (2) Executive Directors of State Municipal Leagues (3) Steering Committee Members From: George Gross, Director, Federal Relations &C.< Subject: NLC Legislative Letter: 11 June 82 In this issue: Housing Legislation - Fiscal Year 1983 The House is expected to begin consideration on June 15 of H. R. 6296 , the Housing and Urban-Rural Recovery Act of 1982. The bill reauthorizes most existing federal housing programs, establishes new programs to stimulate construction of single-family homes and- multifamily rental units, extends FHA and Farmer' s Home programs, and creates a new program to assist homeowners facing mortgage foreclosures. The bill reported by the House Banking Committee rejects most of the Administration' s housing proposals, which called for dramatic changes in existing federal housing assistance, virtually eliminating all new construction of assisted housing and replacing it with a housing voucher system for existing housing. The Administration opposes the bill. Following is a summary of the major provisions of the legislation. HUD Assisted Housing Programs. The bill authorizes $15. 6 billion for section 8 low and- -moderate income housing and the public housing programs, with $1. 7 billion of that amount to be used for public housing modernization. The authorized amount would be sufficient to assist approximately 140 ,500 families (15 ,000 newly constructed public housing units, 4 , 000 newly constructed Indian public housing units, 16,000 section 202 elderly or handicapped units, 4 ,500 section 8 substantial rehabilitated units, and 101,000 section 8 existing units) . $1. 6 billion is authorized for public housing operating subsidies and public housing authorities may also use development funds to cover operating costs. $671 million is authorized for section 202 elderly and handicapped housing loans. $1. 9 billion is provided for GNMA tandem mortgage purchase commitments for 1983. Past Presidents:Tom Bradley,Mayor,Los Angeles.California•Henry W.Maier,Mayor,Milwaukee,Wisconsin•Tom Moody,Mayor,Columbus,Ohio•Jessie M.Rattley,Councilwoman.Newport News,Virginia•John P.Rousakis,Mayor,Savannah,Georgia•Directors:Richard Arrington,Jr.,Mayor,Birmingham,Alabama•Carol Bellamy,Council President,New York,New York•Arne Boyum,Executive Director,North Dakota League of Cities•Richard S.Caliguiri,Mayor,Pittsburgh,Pennsylvania•Malcolm Clark,Council Member,Port Arthur,Texas•Joanne Collins,Council Member,Kansas City,Missouri•Thomas H.Cooke,Jr.,Mayor,East Orange,New Jersey•David Cunningham,Council Member,Los Angeles,California•W.Elmer George,Executive Director, Georgia Municipal Association•Karen M.Graves,Commissioner,Salina,Kansas•Anne Gresham,Council Member,Grand Prairie,Texas•Paul E.Haney,Council Member,Rochester,New York• Jonathan B.Howes,Mayor Pro Tern,Chapel Hill,North Carolina•George M.Israel,Ill,Mayor,Macon,Georgia•Myra Jones,Vice Mayor,Little Rock,Arkansas•Christopher G.Lockwood, Exo".utive Director,Maine Municipal Association•Bob Martinez,Mayor,Tampa,Florida•Robert H.Miller,Executive Director,South Dakota Municipal League•Jack Nelson,Mayor,Beaverton, Oregon•Mary Neuhauser,Council Member,Iowa City,iowa•C.David Nuessen,Mayor,Quincy,Illinois•Hernan Padilla,Mayor,San Juan,Puerto Rico•Donald R.Peoples,Chief Executive, Butte,Montana•Martin L.Peterson,Executive Director,Association of Idaho Cities•Michael J.Quinn,Executive Director,Indiana Association of Cities and Towns•Vernon H.Ricks,Jr.,Mayor Pro Tern,Takoma Park,Maryland•Arthur E.Trujillo,Mayor,Santa Fe,New Mexico•George V.Voinovich,Mayor,Cleveland,Ohio•Daniel K.Whitehurst,Mayor,Fresno,California•Don A. Zimmerman,Executive Director,Arkansas Municipal League. -2- Multifamily Construction Stimulus. The bill authorizes $1. 3 billion in FY 1983 for a new program providing flexible assistance to states, local governments, or state or local agencies for the construction or rehabilitation of multifamily rental or cooperative housing. States, local governments, or their agencies could use the funds to provide capital grants , loans, interest reduction payments, land purchase grants, or other means of stimulating the construction or rehabilitation of projects. Projects would be selected based on the severity of the shortage of decent rental housing, non-federal public and private support, contribution to the neighborhood, the degree of displacement, and other factors. Projects assisted would have to ensure for a period of 20 years that 20 percent of the assisted units are occupied by or available to low-income families. Rents could not exceed 25 percent of a tenant's adjusted income and could not be increased without 30 days notice. State and local bonds issued to finance projects could qualify as tax-exempt bonds, and FHA insurance would be available to projects that meet applicable standards. Rural Housing. The legislation reauthorizes most rural housing programs in FY 1983 at essentially the same levels as FY 1982, including $4. 2 billion for insured and guaranteed loans for low- and moderate-income families. Of this amount, $2 . 7 billion would be for homeownership loans, $940 million for rental housing loans, and $500 million for the Section 502 loan guarantee program. It authorizes $25. 6 million for farm labor housing loans and $50 million for home repair loans and grants, of which not more than $25 milliom for farm labor housing grants; $398 million for rural rental assistance payments, of which at least $173 million would be for newly constructed and substantially rehabilitated housing; and $15 million for rural self-help housing grants. pIngle-Family Housing Production. In FY 1983, a new stimulus rogram would be authorized at $3. 5 billion for mortgage interest subsidies on new single-family homes, manufactured homes, and condominium or cooperative units. Priority will be given to first-time buyers and the subsidy will be recaptured when the home is sold. The program provides a mortgage interest subsidy of 6 percent below market rate, but in no case can the mortgage rate be lower than 9. 5 percent for 7 years for families with incomes at or below 115 percent of the area median income. It would provide a subsidy of 4 percent below market rates, but not lower than 10 percent, for 5 years for families with incomes between 116 percent and 130 percent of area median. Purchasers must pay at least 25 percent of their income toward monthly mortgage payments. Assistance could be extended beyond the 5 or 7 year period if HUD determines that the assistance is necessary and appropriations are made from recaptured assistance payments or unused contract authority. L/C; addition, $1. 1 billion is authorized to extend the regular 235 homeownership program, which provides subsidies to reduce -3- mortgage interest rates down to 4 percent; this is estimated to stimulate the construction of approximately 10,000 homes for families whose income does not exceed 95 percent of area median. Rehabilitation Loans. The bill authorizes $5. 5 million for the Section 312 rehabilitation loan program in FY 1983. Together with funds available from loan repayments, this should provide a program level of $69 million. /�ommunity Development Block Grants. The bill extends the eligi- t/ bility of metropolitan cities and urban counties for CDBG assistance through FY 1983 regardless of population changes. It requires states operating CDBG programs for small cities to submit performance reports according to standards prescribed by HUD. It permits CDBG assistance to neighborhood-based nonprofit groups to be used for the development of shared housing for the elderly. The bill authorizes $225 million for the Section 108 loan guarantee program in FY 1983; the guarantees are to assist local governments to acquire property needed to accommodate CDBG projects. * * * NLC strongly supports the provisions of H.R. 6296. It is a comprehensive housing bill including assistance for both single family home ownership and multifamily rental 'housing that assists low-income families. In addition, the bill provides needed authority for the continuation of the section 8 existing housing program and maintenance of the existing housing stock. NLC expects two important amendments to be offered on the House floor. Please contact your Representative and urge him or her At-1%P-) 0/ to oppose these or any other crippling amendments to H. R. 6296, P _ the Housing and Urban-Rural Recovery Act of 1982. / (1) Rep. Chalmers Wylie (R-Ohio) will offer an amend- ment to prohibit using the new multifamily rental housing production program in communities with rent control ordinances-. NLC strongly opposes this amendment as an unwarranted federal intrusion into local decision making. Rent control and other forms of housing regulation have historically been con- sidered within the clear authority of local officials who are much better able to assess local housing conditions and solutions than the Federal Government. (2) Rep. Stewart McKinney (R-Conn) may offer an amend- ment to transfer the $1. 3 billion provided for the new multifamily housing production program to the Community Development Block Grant Program. NLC strongly opposes this amendment. The CDBG program is already overloaded with too many functions as a result of budget cuts in 1982 in other programs. Adding housing new construction as an eligible -4- activity would place even greater pressures on these limited funds with no assurances that housing will be built or targeted to low-income families. All House Members may be reached on 202-225-3121 . MEMO TO: Mayor and Council FROM: John K. Anderson, City Administrator RE: Minnesota Valley Fifth Addition DATE: August 13 , 1982 Introduction Dick Wiggin appeared before the City Council on August 3 , 1982 to discuss two problems relating to his plat for Minnesota Valley Fifth Addition. The first problem related to the driveway loca- tion on the lot across from the Mall entrance on 12th Avenue. The second problem relates to storm sewer construction , its timing , and who should pay for it . Investigation The Mayor, City Engineer , Councilman Wampach and I met with Dick and Bill Sinn at the site on August 5 , 1982 . The concern about the driveway location was resolved. The City agreed that a drive- way could be constructed approximately 75 feet from the south curb line on 12th Avenue . The storm sewer involves 54 feet of storm sewer that needs to be installed before Mr. Wiggin can do the final paving of Taylor Street . It was suggested that the cost be assessed to lands to be developed in the future and lying south of Minnesota Valley Fifth. Therefore , if Mr. Wiggin and Mr. Watson, the other landowner involved, were to agree in advance to the assessment , the City could build the storm sewer with PIR Funds , spread the assessments to repay the PIR Fund , and constuct the storm sewer so Mr. Wiggin could then complete Taylor Street over the storm sewer to complete his development requirements for Minnesota Valley Fifth. Mr. Wiggin agrees that the assessments will be spread now and that when Minnesota Valley 6th and 7th are developed he would pay the balance pursuant to present developers agreements . contaced Nr. Wiael of Watson Construction, the only other land- owner in the drainage basin , and he agreed to the assessment concept . Therefore , the Council has two clear a 1.Ler_naLives . Storm Sewer Alternatives 1 . Do nothing. In this case Mr. Wiggin could not complete Minnesota Valley Fifth, would be subject to a continued escrow, and would not be able to put in a second driveway for garages to his 4-plex. 2 . Construct the storm sewer with PIR Funds and assess the cost by prior agreement to the "benefited" property owners . This would resolve all of the above problems and get the storm sewer extended 54 feet to the edge of the Minnesota Valley Fifth Addition plat where it should be . 3 . Other. Minnesota Valley Fifth Addition Page Two August 13 , 1982 Recommendation Staff recommends alternative #2 with the condition that we receive written assessment agreements from Watson Construction and Mr. Wiggin. This will • allow Mr. Wiggin to properly complete the public improvements for Minnesota Valley Fifth. Action Requested 1 . Authorize staff to obtain storm sewer assessment waivers of hearings from Mr. Wiggin and Watson Construction accepting the cost of 54 feet of storm sewer estimated to cost $1860 said costs to be spread over properties they own in the drainage basin. JKA/jms • • '2' C;a*. S)/3 MEMO TO : John K. Anderson City Administrator , b T✓ FROM : H . R. Spurrier l City Engineer L_l �----- RE : Minnesota Valley /5th Ad tion Storm Sewer City of Shakopee Storm Sewer Policy DATE : July 19, 1982 Introduction : The City has policy for the extension of storm sewer. Application of the policy as it relates to laterals and trunks presents a problem. Background : A storm sewer is an element of public improvements required for the property south of Valley !von including Minnesota Valley 5th Addition. In an effort to establish funding responsibility for the storm sewer, it became clear that City policy was unclear in specifying that responsibility. The present policy assumes that somehow the definition of "lateral" and "trunk" exist. These definitions do not exist and the actual definition used by the City is a policy matter, not an Engineering definition. There are some Engineering facts that are necessary for the definition but these facts relate to oversizing required to accommodate increased runoff as a result of existing or proposed land disturbing activities. There are many approaches to establishing the definition of "laterals" and "trunks" . Listed below is a recommended criteria for each : I . Trunks a. Required pipe serves an area upstream and beyond the assessed or developed area. b. Required pipe size is larger than a specific minimum diameter, 36 inches (any diameter 18 inch and greater could be used) . c. Required pipe size would be smaller if the tributary basin was un- developed. John K. Anderson -2- July 19, 1982 II . Laterals a. Required pipe size is srrraller than 33 inches (any diameter greater than 18 inch could be specified) . b. Required pipe does not have to be extended beyond the development or assessed area. Listed below are four alternatives for specifying and assessing storm sewer laterals and trunk : Alternate I : Present policy as administered: Laterals 18 inch/greater Trunks 18 inch/greater Developer is responsible for the entire cost of any pipe which serves the developed land. The City pays half the cost of any pipe which serves land outside the development. Alternate II : Present policy modified: Laterals 18 inch/36 inch Trunks 42 inch/greater Developer is responsible for the entire cost of pipe 18 inch through 36 inch. City pays half the cost of 42 inch and larger. Alternate III : Specific pipe size: Laterals 18 inch/36 inch Trunks 42 inch/greater Developer is responsible for the entire cost of pipe 18 inch through 36 inch. City pays oversizing for pipe 42 inch and larger. Oversizing is the cost of the pipe construction less the cost of 36 inch pipe construction. Alternate IV : Historic Flow : Developer is responsible for the entire cost of any 18 inch pipe and is responsible for the entire cost of any facilities or pipe required to convey the historic flow and any increased runoff from the developer's land. The City may require the developer to provide additional capacity. Any oversizing required as a result of providing additional capacity, shall be paid by the City. John K . Anderson -3- July 19, 1982 These alternatives presume that the definition of ''laterals" and "trunks" has been established pursuant to the criteria specified above. Alternate Pros Cons 1 . Preserves existing policy . 1. Developer may pay an unfair percent of the cost in some cases. 2. Limits the cost to a developer. 2. The City may pay an unfair percent of the cost in some cases. 3. Policy penalizes larger developments. 4. City faces resistence in requiring additional oversizing. 5. City faces uncertain cost. Alternate II Pros Cons 1. Limits the cost to a developer. 1. Developer may pay an unfair percent of the cost in some cases. 2. The City may pay an unfair percent of the cost in some cases. 3. City faces resistance in requiring additional oversizing. 4. City faces uncertain cost. Alternate III Pros Cons 1 . City exposure to cost is certain. 1. Developer may pay an unfair percent of the cost in some cases. 2. A larger share of project cost is paid by the developer. 3. The cost to a developer is limited. John K . Anderson -4- July 19, 1982 Alternate IV Pros Cons 1. City exposure to cost is certain. 1. Developers in large drainage ways would not have resources to build 2. Developer's cost is related to use. necessary improvements. To reiterate, the question of what a lateral or trunk should be and what over- sizing should be is not an Engineering question, but a policy question. The alternatives range from Alternate I, which has the greatest cost assessed to the City to Alternate IV, which has a minimum exposure to cost for the City. The most appropriate alternative is perhaps somewhere between Alternate I and Alternate IV. As it is applied now, larger developments are penalized by present policy, where smaller subdivisions such as Minnesota Valley 5th Addition and Furrie 2nd Addition benefit because any facilities installed benefit land outside the subdivision and could be considered trunk facilities because they benefit off-site areas. Attached is the draft copy of proposed Storm Drainage Criteria. City staff proposes to meet with developers and consultants working in the City prior to recommending the adoption of the criteria. It would, therefore, be appropriate to consider a revision or modification of present lateral and trunk storm sewer assessment at the same time, regardless of what decision Council makes regarding the oversizing or trunk cost. A decision should be made soon on the definition for "trunk storm sewers" and "laterals storm sewers" . The problem of Mr. Wiggin's storm sewer still exists. Pursuant to present policy, the City would pay half the cost of the extension of his storm sewer because the storm sewer serves tributary areas outside the development. In the case of Mr. Wiggin's storm sewer, it is the recommendation of City staff that one-half the cost of that storm sewer be paid by the City, pursuant to present policy. City staff is not aware of what Mr. Wiggin's specific request will be at the meeting, and therefore, this memoranda addresses only the question of lateral and trunk sewer costs. HRS/jiw Attachment MEMO TO: John K. Anderson City Administrator FROM: Jeanne Andre Acting City Planner RE: Final Plat of Eagle Creek Junction 1st Addition DATE : August 13, 1982 Introduction : Attached is Resolution No. 2034 , A Resolution Approving The Final Plat Of Eagle Creek Junction 1st Addition. The Planning Commission reviewed this plat on August 5, 1982 and recommended its approval subject to the conditions listed in the resolution. Also attached is the case report which the Planning Commission received prior to its meeting which served as the basis of their discussion on the plat . Recommended Action : Adopt Resolution No. 2034, A Resolution Approving The Final Plat of Eagle Creek Junction 1st Addition. • JA/j vm Attachments DATE: August 5 , 1982 CASE: PC 82-21P ITEM: Final Plat of Eagle Creek Junction, First Addition APPLICANT: Inca Development (Gary Laurent ) LOCATION : Southeast Quadrant of County Road 16 and 17 ZONING : R-4, Multifamily Residential LAND USE : Vacant . AREA: 23 . 92 Acres SECTION : Section 11 . 28 ; Section 12 PLANNING COMMISSION ACTION CITY COUNCIL ACTION Proposal : The applicant is requesting Final Plat approval for Eagle Creek Junction, First Addition, which includes one developable parcel , which was designated as Lot 1 , Block 1 , in the preliminary plat . All other area in the preliminary plat will be included in three outlots , not to be developed at this time . Considerations : 1 . The final plat incorporates the increased roadway width requested by 'the County Engineer. 2 . The lot lines for Lot 1 , Block 1 , have been resituated to provide the 113 ,400 square feet required for the building proposed for this lot . 3 . The City Engineer and Public Utilities Manager are reviewing the storm sewer and electrical easements provided on the final plat to assure conformance with the existing utility services . An 'oral report of their findings will be made at the Planning Commission meeting. 4. The developer has agreed to provide public water service from County Road 16 to the fire hydrant to be placed in the center island of the parking lot . The developer has also agreed to extend the service toward the southwest corner of the lot to provide an additional hydrant at the rear of the lot if required by the State Fire Marshall prior to issuance of a building permit . Alternately the water service may be extended to the southwest corner upon platting and development of Outlot C. Easements have been provided on the final plat for this possible extension of water service. In addition a developer' s agreement must be executed to provide for initial water service. The extension of the service will be provided by the execution of a recordable agreement agreeing to be assessed for the project and waiving the right to a public hearing, as outlined in Sec . 12 . 06 , Subd. 1D of the City Code . 5 . The Fire Department will call on the State Fire Marshall to review the building plans prior to issuance of a building permit . If a rear hydrant is necessary it will be provided pursuant to consideration 4. Final Plat of Eagle Creek Junction, First Addition August 5 , 1982 PC 82-21P Page Two 6 . No parcels on the proposed plat are desired for park purposes , so a cash park dedication is recommended, payable at the time of building permit issuance. 7 . The applicant has been granted a variance from the sideyard setback to provide for zero lotline construction for the multi- family residence proposed for Lot 1 , Block 1 , as well as a Conditional Use Permit to exceed the height limitation in an R-4 zone, both contingent on final plat approval of Eagle Creek Junction First Addition. 8 . The applicant has requested that development of a pedestrian access along the County Road 16 right-of-way be deferred at this time. Subsequent platting and development of the Outlots may lend itself to some other configuration of pedestrian access agreeable to the City . The City can assure the subsequent pro- vision of sidewalks through the agreement called for under Section 12 .06 Subd. 1D of the City Code . 9 . Drainage from Lot 1 , Block 1 , can be adequately managed with existing facilities in County Road 17 . 10. The plat should include the designation "First Addition" in its title. Staff Recommendation: Staff recommends approval of the Final Plat of Eagle Creek First Addition subject to the below listed conditions . Requested Action: Recommend approval to the City Council of the final plat of Eagle Creek Junction First Addition subject to the following conditions : 1 . Name of plat be designated as Eagle Creek Junction First. Addi- tion. 2 . Approval of a Title Opinion by the City Attorney . 3 . Park dedication to be made in cash at the time of building permit issuance. 4. Execution of a recordable agreement agreeing to accept future assessment for pedestrian walkway and extension of water service for improved fire protection or looping and waiving all. rights to a hearing on the improvements and assessments , such agreement to run with the land and be binding on all heirs and assigns of the applicant . 5 . Execution of a recordable agreement providing for the joining of building proposed for Lot 2 , Block 1 , preliminary plat of Eagle Creek Junction ( portion of Outlot A in First Addition) to the building on Lot 1 , Block 1 Eagle Creek First Addition, or increasing the setback of the Lot 2 building by 20 feet or one half the height of the Lot 1 building, whichever is less . Final Plat of Eagle Creek Junction, First Addition August 5 , 1982 • • PC 82-21P Page Three 6 . Execution of an easement over the westerly portion of Outlot A, to allow access to provide maintenance for the structure to be built on Lot 1 , Block 1 . This easement would terminate upon construction of a building adjoining the building on Lot 1 , Block 1 . 7 . Execution of a• Developer' s Agreement for the construction of the required improvements : a ) Water system to be installed in accordance with the require- ments of the Shakopee Public Utilities Commission. JA; jms Planning Commission Action : Approved Eagle Creek Junction 1st Addition , as described on the Preliminary Plat of Eagle Creek Junction as Lot 1, Block 1, with conditions as ref'ereuced ;above. i RESOLUTION NO. 2034 A Resolution Approving The Final Plat Of Eagle Creek Junction 1st Addition WHEREAS, the Planning Commission of the City of Shakopee did approve the Final Plat of Eagle Creek Junction 1st Addition on August 5, 1982 and has recommended its adoption; and WHEREAS, all notices of hearing have been duly sent and posted and all persons appearing at the hearing have been given an opportunity to be heard thereon; and WHEREAS, the City Council has been fully advised in all things. • NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, that the Final Plat of Eagle Creek Junction 1st Addition, as described in Exhibit "A" hereto attached, be, and the same hereby is approved and adopted with the requirements that : • 1. Name of the plat be designated as Eagle Creek Junction 1st Addition. 2. Approval of Title Opinion by the City Attorney . 3. Park dedication be made in cash at the time of Building Permit issuance. 4. Execution of a recordable agreement agreeing to accept future assessment for pedestrian walkway and extension of water service for improved fire protection or looping and waiving all rights to a hearing on the improvements and assessments; such agreement to run with the land and be binding on all heirs and assigns of the applicant. 5. Execution of a recordable agreement providing for the joining of the building proposed for Lot 2, Block 1, as described on the Preliminary Plat of Eagle Creek Junction (portion of Outlot A in 1st Addition) to the building on Lot 1, Block 1, Eagle Creek 1st Addition, or increasing the setback of the building for Lot 2 by 20 feet or one-half the height of the building on Lot 1, whichever is less. 6. Execution of an easement over the westerly portion of Outlot A, to allow access to provide mainten- ance for the structure to be built on Lot 1, Block 1, said easement to terminate upon construc- tion of a building adjoining the building on Lot 1, Block 1. 7. Execution of a Developer' s Agreement for the construction of the required improvements : a) Water system to be installed in accordance with the requirements of the Shakopee Public Utility Crmmission. Resolution No. 2034 Page -2- BE iT FURTHER RESOLVED, that the Mayor and City Clerk be and the same are hereby authorized and directed to execute said approved Plat and Developer' s Agreement . Adopted in session of the City Council of the City of Shakopee, Minnesota held this day of , 1982. Mayor of the City of Shakopee ATTEST: • City Clerk Approved as to form this day of , 1982. City Attorney Resolution No. 2034 1 EXHIBIT "A" Know all men bythese presents that Marcella Larson, a widow, not remarried , owner and proprietor and Inca Development, a Partnership consisting of Dean Walden, Randolph Laurent and Gary L. Laurent, purchasers under Contract for Deed of the following described property situated in the County of Scott , State of Minnesota to wit : That part of the Southeast Quarter of Section 6 , Township 115 , Range 22 described as follows : Commencing at the southeast corner of said Southeast Quarter; thence on an assumed bearing of North 0 degrees 38 minutes 47 seconds West, a distance of 216 . 13 feet to the centerline of County Road No. 16 , thence North 60 degrees 18 minutes 19 seconds West along said centerline, a distance of 182. 48 feet to the actual point of beginning of the tract of land to be described; thence continuing North 60 degrees 18 minutes 19 seconds West along said centerline, a distance of 817. 02 feet , thence northwesterly along said center- line , a distance of 499. 99 feet along a tangential curve to the left , having a radius of 32,536 . 65 feet ; thence North 61 degrees 11 minutes 08 seconds West along said centerline a distance of 213. 95 feet ; thence South 28 degrees 48 minutes 52 seconds West to the northeasterly right-of-way line of the abandoned Chicago, Milwaukee, St. Paul and Pacific Railway as per Document No. 179992, thence South 65 degrees 54 minutes 36 seconds East along said right-of-way line to an intersection with a line which bears South 0 degrees 37 minutes 41 seconds West from the point of beginning; thence North 0 degrees 37 minutes 41 seconds East to the point of beginning. Also that Rainbow Terrace, Inc . , a Minnesota corporation, owner and proprietor and Inca Development , a Partnership consisting of Dean Walden, Randolph Laurent and Gary L. Laurent purchasers under Contract for Deed of the following described property situated in the County of Scott , State of Minnesota to wit : That part of the Southeast Quarter of Section 6 , Township 115 , Range 22 described as follows : Beginning at the point of intersection of the southwesterly right-of-way line of the abandoned Chicago, Milwaukee, St . Paul and Pacific Railway as per Document No. 179992 and the northerly extension of the centerline of Sibley Street , said centerline being a line 30 feet westerly of, measured at a right angle to and parallel with the westerly line of Block 2, Scenic Heights 1st Addition, thence on a bearing of South along the northerly extension of said centerline of Sibley Street a distance of 116 . 68 feet to the easterly extension of the north line of Hesse ' s 2nd Addition to Shakopee; thence on a bearing of west along the north line of said Hesse' s 2nd Addition to Shakopee and Hesse' s 1st Addition to Shakopee, a distance of 661. 42 feet to the centerline of County Road No. 17 as per Document No. 144715; thence North 18 degrees 48 minutes 03 seconds West along said centerline of County Road No. 17, a distance of 203. 32 feet ; thence continuing northerly along said centerline, a distance of 291. 12 feet along a tangential curve to the right having a radius of 1909 . 86 feet , to the southwesterly right-of-way line of the abandoned Chicago, Milwaukee , St Paul and Pacific Railway as per Document No. 17992; thence South 65 degrees 54 minutes 36 seconds East along said right-of-way line to the point of beginning. For purposes of this descrip- tion the east line of the Southeast Quarter of Section 6 , Township 115, Range 22 is assumed to bear North 0 degrees 38 minutes 47 seconds West . Resolution No . 2034 Exhibit "A" (Cont . ) Page -2- Also that Inca Development , a Partnership consisting of Dean Waldon, Randolph Laurent and Gary L. Laurent , owner and proprietor of the following described property situated in the County of Scott, State of Minnesota to wit : • That part of• the Southeast Quarter of Section 6 , Township 115 , ltNnCe 22 described as follows : Commencing at Ltie southeast corner of said South- east Quarter; thence on an assumed bearing of North 0 degrees 38 minutes 47 seconds West , a distance of 216 . 13 feet to the centerline of County Road No. 16 ; thence North 60 degrees 18 minutes 19 seconds West along said centerline a distance of 999. 50 feet , thence northwesterly along said center- line a distance of 499. 99 feet along a tangential curve to the left , having a radius of 32,536 . 65 feet ; thence North 61 degrees 11 minutes 08 seconds West along said centerline a distance of 213. 95 feet to the actual point of beginning of the tract of land to be described; thence continuing North 61 degrees 11 minutes 08 seconds We>t along said centerline , a distance of 255. 00 feet ; thence South 11 degrees 13 minutes 39 seconds West a distance of 288. 56 feet ; thence South 29 degrees 04 minutes 52 seconds West , a distance of 152. 14 feet to the northeasterly right-of-way line of the abandoned Chicago, Milwaukee, St. Paul and Pacific Railway as per Document No . 179992; thence South 65 degrees 54 minutes 36 seconds East along said right-of-way line to an intersection with a line which bears South 28 degrees 48 minutes 52 seconds West from the point of beginning, thence North 28 degrees 48 minutes 52 seconds East to the point of beginning. All that part of the abandoned Chicago, Milwaukee, St . Paul and Pacific Railway right-of-way as per Document No. 179992 which lies within the Southeast Quarter of Section 6 , Township 115, Range 22 and the Northeast Quarter of Section 7, Township 115, Range 22, lying easterly of the centerline of County Road No. 17 as per Document No. 144715 and lying westerly of the following described line : Commencing at the southeast corner of said Southeast Quarter; thence on an assumed bearing of North 0 degrees 38 minutes 47 • seconds West , a distance of 216 . 13 feet to the centerline of County Road No. 16; thence North 60 degrees 18 minutes 19 seconds West along said centerline, a distance of 182. 48 feet to the actual point of beginning of the line to be described ; thence South 0 degrees 37 minutes 41 seconds West to the south- westerly right-of-way line of the abandoned Chicago, Milwaukee, St . Paul and Pacific Railway as per Document No. 179992 and there terminating. All that part of the abandoned Chicago, Milwaukee, St . Paul and Pacific Railway right-of-way as per Document No. 179992 which lies within the Northeast Quarter of Section 7 , Township 115 , Range 22, lying southwesterly of the centerline of said railway as per Document No. 179992 and lying northwesterly of the northeasterly extension of the northwesterly line of Lot 8 , Block 4 , Scenic Heights 2nd Addition and lying easterly of the following described line : Resolution No. 2034 • Exhibit "A" (Cont . ) Page -3- Commencing at the southeast corner of said Southeast Quarter, thence on an assumed bearing of North 0 degrees 38 minutes 47 seconds West, a distance of 216 . 13 feet to the centerline of County Road No. 16 , thence North 60 degrees 18 minutes .19 seconds West along said centerline, a distance of 182. 48 feet to the actual point of beginning of the line to be described; thence South 0 degrees 37 minutes 41 seconds West to the southwesterly right-of-way line of the abandoned Chicago, Milwaukee, St . Paul and Pacific Railway as per Document No. 179992 and there terminating. / Dmf DORSEY, WINDHORST, HANNAFORD, WHITNEY& HALLADAY 2200 FIRST BANK PLACE EAST MINNEAPOLIS,MINNESOTA 55402 880 W-FIRST NATIONAL BANK BLDG. (612)340-2600 1150 RING BUILDING ST.PAUL,MINNESOTA 55101 1200 18TH STREET N W (612)227-8017 WASHINGTON,D .20036 CABLE:DOROW (202)296-2780 P.O.BOX 848 TELEX:29-0605 (800)424-2942 340 FIRST NATIONAL BANK BLDG. ROCHESTER,MINNESOTA 55903 TELECOPIER:(612)340-2868 312 FIRST NATIONAL BANK BLDG. (507)288-3156 WAYZATA,MINNESOTA 55391 (612)475-0373 201 DAVIDSON BLDG. 8 THIRD STREET NORTH 30 RUE LA BOETIE GREAT FALLS,MONTANA 59401 75008 PARIS,FRANCE (406)727-3632 TEL:(1)562-32-50 JOSEPH C.GONNELLA (612) 227-8017 Please reply to St. Paul office. Ms. Judith S . Cox City Clerk City Hall 129 E. First Avenue Shakopee, MN 55379 Re: $1, 100, 000 Commercial Development Revenue Bonds (The Shakopee Professional Group Project) , Series 1982, City of Shakopee, Minnesota Dear Ms. Cox: Enclosed please find seven copies of a resolution for the consideration of the City Council authorizing the issuance of the above Bonds and approving the forms of the operative documents in connection therewith. We also enclose a copy of the most recent drafts of the operative documents so that they may be presented to the Council and placed on file in your office as required by Section 1. 05 of the resolution. As you know, the parties request that the resolution be placed on the agenda for the regular meeting of the Council on Tuesday, August 17 , 1982. Because of the participation of Mr. Krass in the financing, we have been asked to review the documents relating to this transaction as special counsel to the City. In that capacity, we have reviewed the documents enclosed herein, and state that they contain such provisions relating to indemnity and limitations of liability of the City as are customary in these financings and are necessary to protect the City from incurring any liability with respect to the Bonds beyond that which is permitted by Minnesota Statutes, Section 474. 10. If you have any questions relating to the resolution or 'these matters, we would be happy to respond. Very truly yours, JCG: cmh Joseph . Gonnella Enclosures cc: Mr. John K. Anderson $1 ,100 ,000 COMMERCIAL DEVELOPMENT REVENUE BONDS ( The Shakopee Professional Group Project) Series 1982 Issuer: City of Shakopee, Minnesota Governing body: City Council Kind, date, time and place of meeting : A regular meeting held August 17 , 1982 , at o 'clock .m. , at Members present: Members absent: Documents attached : Minutes of said meeting (pages ) : through , including: RESOLUTION NO. _,96113 RESOLUTION AUTHORIZING THE SALE AND ISSUANCE OF COMMERCIAL DEVELOPMENT REVENUE BONDS UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT TO FINANCE A PROJECT THEREUNDER, SECURED BY PAYMENTS TO BE RECEIVED PURSUANT TO A MORTGAGE LOAN AGREEMENT AND A PLEDGE AND ASSIGNMENT OF THE CITY' S INTEREST IN THE MORTGAGE LOAN AGREEMENT AND PAYMENTS THEREUNDER TO A ,TRUSTEE, AND AUTHORIZING THE EXECUTION OF DOCUMENTS I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of the corporation in my legal custody, from which they have been transcribed; that the documents are a correct and complete transcript of the minutes of a meeting of the governing body of the corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at the meeting, insofar as they relate to the obligations; and that the meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice given as required by law. WITNESS my hand officially as such recording officer this day of August, 1982 . Judith S. Cox, City Clerk Councilmember introduced the following resolution and moved its adoption: RESOLUTION NO. .26 /7/3 RESOLUTION AUTHORIZING THE SALE AND ISSUANCE OF COMMERCIAL DEVELOPMENT REVENUE BONDS UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT TO FINANCE A PROJECT THEREUNDER, SECURED BY PAYMENTS TO BE RECEIVED PURSUANT TO A MORTGAGE LOAN AGREEMENT AND A PLEDGE AND ASSIGNMENT OF THE CITY'S INTEREST IN THE MORTGAGE LOAN AGREEMENT AND PAYMENTS THEREUNDER TO A TRUSTEE, AND AUTORIZING THE EXECUTION OF DOCUMENTS BE IT RESOLVED by the City Council of the City of Shakopee, Minnesota ( the City) , as follows: Section 1 . Authorization and Recitals. 1 .01. Authority. The City is authorized by the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Chapter 474 , as amended ( the Act) , to issue its revenue bonds and to make secured loans to finance the acquisition of land and the construction thereon of one or more buildings useful in connection with a revenue- producing enterprise, constituting a "project" as defined in Section 474 . 02 of the Act. 1 .02. Proposed Project and Bonds. Representa- tives of The Shakopee Professional Group ( the Partner- ship) , a Minnesota general partnership, have proposed that the City, acting under and pursuant to the Act, issue and sell its $1 ,100 ,000 Commercial Development Revenue Bonds (The Shakopee Professional Group Project) , Series 1982 (the Bonds) for the purpose of defraying the costs of a Project ( the Project) consisting of the acquisition of land and the construction thereon of one or more buildings suitable for use as an office building. Pursuant to the proposal, the proceeds of the Bonds will be loaned by the City to the Partnership, and the Partnership will agree to make payments sufficient to pay the principal of, premium, if any, and interest on the Bonds. The City will assign its interest in the Loan Agreement (as hereinafter defined) to a Trustee (as hereinafter designated) for the benefit of Holders of the Bonds. 1 .03. Preliminary Approval . By preliminary resolution duly adopted on March 17 , 1981, after a public hearing duly called, noticed and held on March 3, 1981 , this Council approved the sale of commercial development revenue bonds pursuant to the Act in the amount of S1 , 000 ,000 and the loan of the proceeds to the Partnership to finance the Project and authorized the preparation of appropriate documents. Due to increased interest costs because of prevailing unfavorable interest rates, the Partnership requests, and this Council hereby approves, the issuance of the Bonds in the aggregate principal amount of $1 , 100 ,000. 1 . 04 . Project Costs. Representatives of the Partnership have advised this Council and this Council hereby finds that the cost of the Project approximates $1 , 225 ,000 . Under the Loan Agreement (as hereinafter defined) , the Partnership is obligated to pay costs of the Project in excess of the proceeds of the Bonds from its own funds . 1. 05 . Documentation. Pursuant to the preliminary resolution, there have been prepared and presented to this Council copies of the following documents, all of which are now, or shall be, placed on file in the office of the City Clerk: (a) a Mortgage Loan Agreement ( the Mortgage Loan Agreement) , to be dated as of August 1 , 1982 , proposed to be made and entered into between the City and the Partnership pursuant to which the City will loan the proceeds of the Bonds to the Partnership and the Partnership will mortgage and grant a security , interest in the Project to the City; and ( b) an Indenture of Trust ( the Indenture) , to be dated as of August 1 , 1982, proposed to be made and entered into between the City and F&M Marquette National Bank, of Minneapolis, Minnesota, as trustee (the Trustee) , creating and authorizing the issuance of and establishing the terms and conditions of the Bonds; and (c) a Guaranty Agreement ( the Guaranty) , to be dated as of August 1 , 1982, proposed to be given by Bernard H. Baumann, A. L. Furrie, Phillip R. Krass, Barry K. Meyer , John M. Manahan, Donald D. Schesso, Helen C. Baumann, Marilyn J. Krass, Laura Meyer , Kathleen F. Manahan, Nancy B. Schesso, and Krass, Meyer , Kanning & Walsten Chartered , a Minnesota professional corporation, and Baumann-Furrie & Company, a Minnesota general partnership ( the Guarantors) to the Trustee, guaranteeing performance -2- by the Partnership of its obligations under the Mortgage Loan Agreement; and ( d ) a Disbursing Agreement ( the Disbursing Agreement) ,' to be dated as of August 1 , 1982 , proposed to be made and entered into between the Trustee and Title Insurance Company of Minnesota, and (e) a Bond Purchase Agreement ( the Bond Purchase Agreement) , dated as of August , 1982 , between the City, the Partnership, the Guarantors and Miller Securities Incorporated (the Underwriter) , pursuant to which the City agrees to sell and the Underwriter • agrees to purchase the Bonds; ( f) a Preliminary Official Statement (the Preliminary Official Statement) , dated July 30 , 1982 , relating to the Bonds; and (g) a form of Official Statement ( the Official Statement) , pursuant to which the information relating to the City, the Partnership, the Project, the Bonds, and the documents described herein will be given to purchasers of the Bonds by the Underwriter. Section 2. Findings. It is hereby found, determined and declared that: (a) the Project, as defined herein and in the , Loan Agreement, constitutes a project authorized by Section 474 .02, Subdivision la of the Act; (b) the purpose of the Project is and the effect thereof will be to promote the public welfare by encouraging and retaining the location, retention and development of economically sound commerce within the City so as to prevent, so far as possible, the emergence of blighted and marginal lands and areas of chronic ur:.1,mployment; by promoting the use of available resources of the community thereby retaining the benefit of its existing investment in educational and public service facilities; and by discouraging the movement of talented, educated personnel of mature age to other areas , thus preserving the economic and human ' resources needed as a base for providing governmental services and facilities; (c) the Project is located in the City at a site which is readily accessible to potential employees residing within the City and the surrounding community; -3- (d) the Project has been approved by the Commissioner of Securities and Real Estate of the State of Minnesota as tending to further the purposes and policies of the Act; ( e ) the financing of the Project, the issuance and sale of the Bonds in the aggregate principal amount of $1 ,100 , 000 , the execution and delivery of the Mortgage Loan Agreement, the Bond Purchase Agreement and the Indenture and the performance of all covenants and agreements of the City contained in the Mortgage Loan Agreement, the Bond Purchase Agreement and the Indenture and of all other acts and things required under the Constitution and laws of the State of Minnesota to make the Mortgage Loan Agreement, the Indenture,, the Bond Purchase Agreement and the Bonds valid and binding obligations enforceable in accordance with their terms, are authorized by the Act; (g ) it is desirable that an issue of Commercial Development Revenue Bonds in the amount of $1 ,100 ,000 , be issued by the City upon the terms set forth in this resolution and the Indenture, under the provisions of which the City's interest in the Mortgage Loan Agreement and the payments thereunder will be pledged to the Trustee as security for the payment of the principal of, premium, if any, and interest on the Bonds; (h ) the loan repayments required by the Mortgage , Loan Agreement are fixed, and are required to be revised from time to time as necessary, so as to produce income and revenue sufficient to provide for the prompt payment of principal of, premium, if any, and interest on all Bonds issued under the Indenture when due; and the Mortgage Loan Agreement also provides that the Partnership 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 taxes and special assessments levied upon or with respect to the Project and payable during the term of the Mortgage Loan Agreement; and • ( i ) under the provisions of Section 474 . 10 of the Act and as provided in the Mortgage Loan Agreement and the Indenture, the Bonds are not to be payable from nor charged uion any funds of the City other than -4- the revenue pledged to the payment thereof; the City is not subject to any liability thereon; no holders of the Bonds shall ever have the right to compel any exercise of the taxing powers of the City to pay any of the Bonds or the interest thereon nor to enforce payment thereof against any property of the City except its interest in the Mortgage Loan Agreement; the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except its interest in the Mortgage Loan Agreement; each Bond issued under the Indenture shall recite that the Bonds, including the interest thereon, are payable solely from the revenues pledged to the payment thereof, and are issued pursuant to Minnesota • Statutes, Chapter 474; and no Bond shall constitute a debt of the City within the meaning of any constitutional or statutory limitation; provided, however , that nothing contained in this Subsection 2 ( i) shall impair the rights of Holders of the Bonds to enforce covenants made for the security of the Bonds as provided in Section 474 . 11 of the Act and as limited by the Mortgage Loan Agreement and the Indenture. Section 3 . Authorization and Approval of the Project, Mortgage Loan Agreement, Guaranty, Indenture, Disbursing Agreement, Bond Purchase Agreement, Preliminary Official Statement and Official Statement. The forms of the Mortgage Loan Agreement, the Indenture, the Guaranty, the Disbursing Agreement, the Bond Purchase Agreement, Preliminary Official Statement and the Official Statement referred to in Section 1.05 hereof are approved. The Mortgage Loan Agreement, with such variations, insertions and additions as the City Administrator and Bond Counsel may hereafter deem appropriate, is directed to be executed in the name and on behalf of the City by the Mayor, City Administrator and City Clerk, upon execution thereof by the Partnership and execution of the Guaranty by the Guarantors. The Indenture, with such variations, insertions and additions as the City Administrator and Bond Counsel may hereafter deem appropriate, is directed to be executed in the name and on behalf of the City by the Mayor , City Administrator and City Clerk and delivered to the Trustee. The Bond Purchase Agreement, with such variations, insertions and additions as the City Administrator and Bond Counsel may hereafter deem appropriate, is directed to be executed in the name and on behalf of the City by the Mayor, City Administrator and City Clerk. Copies of all of the documents shall be delivered, filed and recorded as provided therein. The -5- Mayor, City Administrator and City Clerk are also authorized and directed to execute such other instruments as may be required to give effect to the transactions herein contemplated, including a statement of election on the part of the City that the $10 ,000 ,000 limitation of Section 103 ( b) (6 ) (D) of the Internal Revenue Code of 1954 , as amended, apply to this financing. Section 4 . Authorization and Execution of the Bonds. 4 . 01 . Authorization. In order to provide for the financing of the Project and in anticipation of the collection of payments under the Mortgage Loan Agreement, • the City shall proceed forthwith to issue under the Act its Bonds to be designated "City of Shakopee, Minnesota, Commercial Development Revenue Bonds ( The Shakopee Professional Group Project) , Series 1982" in the aggregate principal amount of $1 ,100 ,000. The Bonds shall be dated as of August 1 , 1982 , and shall mature in the years and in the amounts, and contain the redemption and other provisions and embody the form set forth in the Indenture. The Bonds shall bear interest at the rates of interest set forth in Exhibit A attached hereto. The City hereby consents to the distribution of the Oficial Statement to prospective purchasers of the Bonds, but assumes no responsibility for the contents thereof. 4 . 02. Sale and Execution. The proposal of the Underwriter to purchase the Bonds at a price of $1 ,034 ,000 plu§ accrued interest, upon the terms and conditions set forth in the Indenture is hereby accepted. The Mayor , City Administrator and City Clerk are hereby authorized and directed to execute the Bonds as prescribed herein and in the Indenture and to deliver them to the Trustee, together with a certified copy of this resolution, the other documents required in the Indenture, and such other certificates, documents and instruments as may be appro- priate to effect the transaction herein contemplated. The Trustee is hereby appointed authenticating agent pursuant to Minnesota Statutes , Section 475 .55 , subdivision 1 . 4 .03. Modifications , Absence of Officers. The approval hereby given to the various documents referred to above includes an approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the City Administrator and Bond Counsel prior to the execution of the documents. The execution of any instrument by the appropriate officer or officers of the -6- City herein authorized shall be conclusive evidence of the approval of such documents in accordance with the terms hereof. In the absence of the Mayor , City Administrator or the City Clerk, any of the documents authorized by this resolution to be executed, may be executed by the acting Mayor , City Administrator or City Clerk , respectively. Section 5. Certification of Proceedings. The Mayor , City Administrator and City Clerk and other officers of the City are authorized and directed to prepare and furnish to the Underwriter and to Bond Counsel certified copies of all proceedings and records of the City relating to the Bonds, and such other affidavits and certificates as may be required to show the facts relating to the legality and marketability of the Bonds as such facts appear from the books and records in the officers' custody and control or as otherwise known to them; and all such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements contained therein. Section 6. Effective Date. This resolution shall be effective immediately upon its final adoption. Adopted by this Council this 17th day of August, 1982. Approved: Mayor Attest: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Councilmember and upon vote being taken thereon, the following voted in favor thereof: and -the following voted against the same: whereupon the resolution was declared duly passed and adopted. -7- EXHIBIT A $1 ,100 ,000 Commercial Development Revenue Bonds ( The Shakopee Professional Group Project) Series 1982 Year Amount Interest Rate 1985 $ 25 ,000 11 .50% 1986 25,000 11 .75% 1987 25,000 12 .00% 1988 25 ,000 12 .25% 1989 25 ,000 12 . 50% ,1990 25 ,000 12 .75% 2002 950 ,000 15 .00% -8- MEMO TO: John K. Anderson/City Administrator FROM: Judith S . Cox/City Clerk RE: Appointment of Election Judges DATE: August 13, 1982 Introduction: Attached is a resolution appointing election judges for the primary on September 14th and establishing their compensation. Background : Many of the election judges named have worked in previous elections . There are about ten new people being appointed all of which do qualify to serve as election judges . The compensation contained in the resolution is what was paid last year and is in the 1982 budget . Action Requested : Offer Resolution No . 2042 , A Resolution Appointing Judges of Election and Establishing Compensation, and move its adoption. JSC/cau RESOLUTION NO. 2042 A RESOLUTION APPOINTING JUDGES OF ELECTION, AND ESTABLISHING COMPENSATION BE IT 'RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, that : 1 ) The following persons are hereby appointed Judges of Election for the five polling precincts within the City of Shakopee designated in Resolution No. 2021 , adopted July 6 , 1982 : FIRST PERCINCT: Gladys M. Theis - Chrm. Donald Clemens Susan Niewind Ann Noterman Lillian Kopisca Claude_Sinnen Donald Trutnau • Ruth O'Reilley Narma Hausladen Mary Lou Kaley Marcie Schmitt Linda Mankowski Marie Kocks ________ Winnie Anderson SECOND PRECINCT: Carol Bishop - Chrm. Carolyn Nevin Barbara Runge Hazel Bisek Lois Kubes Lucille Odenwald June Regan Beryl Barrett Connie Berens Candace Kragthorpe Joanne Kruger Ethel Schneider THIRD PRECINCT: Maetta Jurewicz - Chrm. Pat Clemens Kathryn Marschall Joyce Schwartz Joanne Davis Frank Schneider Dean Trutnau Rose McCourtney Phyllis Schesso June Sebald Orma Kraai LeVaun Schmitt Lillian Weinandt Sally Herzog FOURTH PRECINCT: Glenda Spiotta - Chrm Sharon Fernholz Doris Ann Solseth Helen O' Brien Sylvester Gerald Marie Czaja Marge Bischoff Dorothy Breimhorst Delores Morke ) a Ray Schmitt Joanne_Co11er FIFTH PRECINCT: VirgiLla Ceske - Chrm Marie Nigg Sally Juba Rudy Maurine Dean Obernolte Mary Ann Mertz Judy Ess Paulette Rislund Rose Jasper Rita Steinhoff — Thea May Janet O'Connor Louise Vyskocil Carol Link 2 ) The Election Judges shall be compensated for their work at the rate of $3 . 35 per hour and the Chairman of the Election Judges shall be compensated' at the rate of $3 . 85 per hour. 3 ) The proper officials be and hereby are authorized and directed to do and perform all acts necessary to carry out the terms , intents , and purposes of this Resolution. Adopted in adj . reg . session of the City Council of the City of Shakopee , Minnesota , held this 17th day of August , 1982 . Mayor of the City of Shakopee ATTEST: City Clerk - Approved as -to form this ci a y of , City Attorney c, RESOLUTION NO. 2039 �J L� J n A RESOLUTION ACCEPTING A MODIFICATION BY ENLARGEMENT ;\ OF THE REDEVELOPMENT PROJECT AND MODIFICATION OF THE AMENDED REDEVELOPMENT PLAN BE IT RESOLVED by the City Council of the City of Shakopee, Minnesota, as follows: Section 1. Recitals. This Council has received from the Shakopee Housing and Redevelopment Authority (the Authority) a Resolution of the Authority determining to modify by enlargement the Redevelopment Project and modify the Amended Redevelopment Plan; and will receive a written opinion of the Planning Commission relating thereto which has been requested by the Authority. The Authority has requested that the City Council consider and approve the Modification by Enlargement of the Redevelopment Project and Modification of the Amended Redevelopment Plan therefor all in accordance with Minnesota Statutes Section 462.521. Section 2. Hearing and Notice. This Council shall meet at City Hall on Tuesday the day of for the purpose of holdingpublic 1982, at o'clock p.m. , on e on by of the Redevelopment Project and Modificationnofhthe oAmended iRedevelopmentment Plan for said Project. The City Clerk is authorized and directed to publish notice of the meeting and the purpose of it in the official newspaper not less than ten (10) nor more than thirty (30) days prior to the date of said public hearing. Adopted in adjourned regular session of the City Council of the City of Shakopee held this 17th day of August, 1982. Mayor ATTEST: City Clerk Approved as to form this day of August, 1982 . City Attorney MEMO TO: City Council J �-° FROM: LeRoy Houser/Building Official RE: Illegal Rental Unit - 436 East 5th Avenue DATE: August 5, 1982 Introduction: Through the course of our City wide clean up, an illegal basement rental unit was discovered. Background: This rental unit was installed without benefit of required permits, and does not meet City Housing or State Building Code requirements. Their letter dated July 27, 1982 is prima facie evidence that the owners acknowledge the existence of the violations indicated in my letter to them dated June 23, 1982 (attached) . It appears they will repair all items indicated in my report. However, re a variance of the ceiling height requirement. I have rovided quest ph a of the code regarding ceiling heights for residences. For general information the requirement for 7'6" ceiling is to provide proper light deflection and mini- mize smoke retention at breathing and vision level. Alternatives: Approve variance providing an alternate method to provide proper light deflection and minimize smoke retention. Recommendation: Deny request for variance. Action Requested: Deny request for variance application for ceiling height requirement for the rental unit located at 436 Fast 5th Avenue. LH:cu Attachments CITY F S AKOPEE � 1 1; INCORPORATED 1870 + .k4 129 F. First Ave. - Shakopee, Minnesota 55379-1376 (612) 445-3650 i`•�'t • • June 23, 1982 § ", Mr. John Block/Mr. William Brody 5206 Brighton lane 1`knuxls View, MN 55112 Dear Sir: Please be advised your rental unit located at 436 East 5th Street, Shakopee, MN, has been inspected for axle compliance. The basement unit is in non- compl i ance with the Shakopee housing (:cxle alxi is deemed substandard for the following reasons: 1 . Hazardous wiring 2. Hazardous plumbing 3. I lu dequa t o ceiling heights 4. Hazardous water supply system 5. Lack of adequate exit facilities 6. Infestation of insects 7. Lack of adequate heating facilities It is by this letter you arc directed to have the basement unit vacated no later. then July 23, 1982. It you have any questions regarding this report please feel free to contact me. Your cooperation is requested, failure to do so will result in formal charges Ix'iug brought against you. Respectfully submitted, ;)/(. /70--c4-42-1 LeRoy Houser Building Official LU:cu cc: Warren Fladager r 1 r . - V a An Equal Opportunity Employer T 1979 EDITION 1205-1207t • G uously identified for male or female use, each of which contains at least i ( I , one water closet. 1 ,►' Additional water closets shall be provided on each floor for each sex at the rate of one for every additional 10 guests,or fractional part thereof,in excess of 10. Every dwelling unit shall be provided with a kitchen equipped with a kitchen sink and with a bathroom equipped with facilities consisting of a ;; water closet, lavatory and either a bathtub or shower. Each sink, lavatory of� and bathtub or shower shall be equipped with hot and cold running water necessary for its normal operation. For other requirements on water closets,see Sections 510 and 1711. Yards and Courts Sec. 1206. (a) Scope. This section shall apply to yards and courts hav- ing required windows opening therein. (b) Yards.ftrtyard shall be not less than 3 feet in width for one-story, and twopstorttididiagikkor.buildings more than two stories in height the, ltminimum widti,of theyard shall be increased at therateof l foot-for each, dditional story.For buildings exceeding 14 stories In height,therm' width of yard shall be computed on the basis of 14 stories. (c) Courts. Every court shall be not less than 3 feet in width. Courts ;,j having windows opening on opposite sides shall be not less than 6 feet in width. Courts bounded on three or more sides by the walls of the building shall be not less than 10 feet in length unless bounded on one end by a street or yard. For buildings more than two stories in height the court shall be increased 1 foot in width and 2 feet in length for each additional story. For buildings exceeding 14 stories in height, the required dimensions shall be computed on the basis of 14 stories. Adequate access shall be provided to the bottom of all courts for clean- ing purposes.Every court more than two stories in height shall be provided with a horizontal air intake at the bottom not less than 10 square feet in area and leading to the exterior of the building unless abutting a yard or public space. The construction of the air intake shall be as required for the court walls of the building, but in no case shall be less than one-hour fire resistive. (d) Projection into Yards. Eaves and cornices may project into any re- quired yard not more than 2 inches for each foot of yard width. Unroofed landings, porches and stairs may project into any required yard, provided no portion except for guardrails extends above the floor level of a I habitable room and provided further that no such projection shall obstruct I a required exitway. + Room Dimensions Sec. 1207. (a) Ceiling Heights. Habitable space shall have a ceiling height of not less than 7 feet 6 inches except as otherwise permitted in this section. Kitchens, halts, bathrooms and toilet compartments may have a is of nor less 'measured to the lowest projection from the ceiling. Where exposed beam ceiling members are spaced at less — than 48 inches on center, ceiling height shall be measured to the bottom of these members. Where exposed beam ceiling members are spaced at 48 .. inches or more on center,ceiling height shall be measured to the bottom of the deck supported by these members, provided that the bottom of the members is not less than 7 feet above the floor. /jt any room in'a building has a sloping ceiling, the . prescribed ceiling 1height for AK to $ z t imehlY331144111111WiratateOf. No pot- - ttwn•of the"reann measuring Ii.,s Muir feet from•th finished floor Mille usher-ceitittg shat[beisi tkauivo the arra tilrwbf: ._.. If any room has a furred ceiling,the prescribed ceiling height is required in two-thirds the area thereof, but in no case shall the height of the furred ceiling be less than 7 feet. (b) Floor Area. Every dwelliag-uait,shali.have at kashmir irmiktilsoh — 1 shallhave not:1less than 150 N1t ble t„coomo. s cept'kitct thatl haVelin f :j :-thahHCl ,._ feet. -. cyt dwelling iinitii 41411 toninIfYivith ttitaitieskirrmeralvfArsitNn • 1208. (c) w dth.,No habitue mold other Lusa a, .t hall be less t*utn.7 -.41861141inydimension. Efficiency Dwelling Units Sec. 1208. An efficiency dwelling unit shall conform to the re- quirements of the code except as herein provided: 1. The unit shall have a living room of not less than 220 square feet of superficial floor area. An additional 100 square feet of superficial floor .,,� area shall be provided for each occupant of such unit in excess of two. 2. The unit shall be provided with a separate closet. 3. The unit shall be provided with a kitchen sink,cooking appliance and refrigeration facilities, each having a clear working space of not less than 30 inches in front. Light and ventilation conforming to this code shall be provided. 4. The unit shall be provided with a separate bathroom containing a ; water closet,lavatory and bathtub or shower. Shaft Enclosures Sec. 1209. Exits shall be enclosed as specified in Chapter 33. Elevator shafts, vent shafts, dumbwaiter shafts, clothes chutes and other vertical openings shall be enclosed and the enclosure shall be as specified in Section 1706. Fire-warning and Sprinkler Systems Sec. 1210. (a) Fire-warning Systems. Every dwelling unit and every guest room in a hotel or lodging house used for sleeping purposes shall be 88 RECEIVED AUG 0 4 1982 CITY CF SHAKOPEE July 27, 1982 The Honorable Mayor and Members of the Shakopee City Council 129 East First Avenue Shakopee, MN 55379 Re: Duplex at 436 East Fifth Street Dear Mayor and Members of the City Council : We have been informed by Mr. LeRoy Houser, Shakopee's Building Official , to write to you in an attempt to obtain a waiver or variance of the building code with respect.to the height requirement of the lower level of our house at 436 East Fifth Street. We purchase this house in April of 1981, as an investment. A copy of our Contract for Deed is enclosed with this request. The house in question was sold to us as a duplex, and in fact, you will note that the third from the last sentence of the typed portion on the second page of this Contract warrants that the house is a duplex. We,have been informed by Mr. Houser that in many respects this building does not comply with Shakopee's requirements. We have consulted with some contractors in the Shakopee area to determine the cost of making this house conform and our best estimate at this point if that we will have to expend approximately $12,000.00 to do the things which can be done to require compliance. There is, however, one matter which is economically, if not physically, impossible for us to do. Apparently, the lower level of the home does not have the height required for a duplex and we are simply not going to be able to raise that lower level . We are prepared to do all other things necessary to comply and to expend the funds required to comply, if you, as the City Council , could see fit to waive the lower level height requirement. This is not something that we would ask you to do if we were constructing a duplex, but the house is up and has been utilized as a duplex for some period of time, and with all of the improvements we are prepared to make, we believe will be a safe and inhabitable residence. We would be happy to appear before you as a Council to discuss the matter and answer any other further questions that you may have. We appreciate your consideration of our request. Yours very truly, „z2/ i3A_e_r_4 ffe William M. Brody, individually ine" for Susan M. Brody, John H. Block and Marilyn L. Block, purchasers z m Zfjiggreertlent, Z Made and entered into this 23rd ,. . day of Z April , 1901 , by and between . we:iron 1. 1�lada,ge;r.. Arad m z Nancy E. Fladager, husband and wire --11 parties of the first part, and William M. lirody ,-tud Susan I.i. Brody , husband & wi • hand John HBlock and _.,tija-rlyn ,(,-„- .,Hluc;h, hu:.;Ua.id .e;:. wife parties of the s"cone part; o an undivided 50% interest mitnt5%tin, That the said part. -es of the first part, in consideration of the covenants and A w agreements of said parties of the second part, hereinafter contained, hereby sell.... and agree....to convey I _ unto said parties of the second part, as joint tenants and not as tenants in conrnron, their assigns, the Z survivor of said parties,and the heirs and assigns of t he survivor, by a C tin tra c t... for • .Deed n accompanied by an abstract evidencing good title in part..i.i.n.; of the first part at the date hereof, or • ! by an owner's duplicate certificate of title, upon the prompt and frill performance by said parties of the 3 ijsecond part, of their part of this agreement, the tract s of land, lying and being in the County of Z ' Scott and State of Minnesota, described as follows, to-wit: Z m m The best- 107,22 feet of Outlot A, Block '10D, Wermeerskirohen' s 2nd o Addition to tite City of Shakopee, Scutt County, Minnesota , according w to the plat thereof on file and of record in the office of the Register of Deeds , in and for said county and state. Also, Lot Six (6) , Block Seventy—Seven (77) , except the South Eight • II (8) feet thereof, Shakopee, Scott County, Minnesota , according to ' the plat thereof on file and of record in the office of the Register of Deeds (Recorder) in and for said county and state. I. Personal Property included in this sale : carpeting, drapes , curtains , II and window hangings throughout. Two (2) refri.t;er-ators , two (2) stoves , �! and clothes dryer in utility room. ii �� alnd said parties of the second part, in consideration ;f t he premises, hereby fierce to pay said part_ of the first part,at a place to be designated its and for the purchase price of said premises, 1 the sum of Seventy Five Thousand and no/l00----x($75,.000.00 Dollars, in manner and at times following, to-unit: .;.,i15,000.00 in hand paid, receipt of which - s hereby acknowledged; $47,246.37 by assuming and agreeing to pay in acco4 nce with terms of contract for deed, dated March 15, 1979, between Harold 'olein and Shirley L. Solea,, his wife, as Vendors and Warren Fladager and 1 fancy Fladager, his wife, which contract is recorded as Docu:rent '.ro. 168528,'—z—z n March 16, 1979, in the office of the County Rooe.rder of Scott County, ,1innesota and which contract provides that contract balance shall be paid i>;i nonthly installments of $325.00 per month, which oayrnerlts shall be in payme f interest on contract balance at rate of 8;0 per annum, and principal of alance of monthly payments. Any remaining unpaid balance of principal or 1 Interest shall be paid in full on April 15, 1994. If there is any balance d rom Warren Fladager and Nancy Fladager under said contract on April 15, 19 hey shall make!<:those payments so that said contract for deed will be paid e : ccordance with its terms . The balance of ; 12,753.63 shall be paid in month installments of $130.00 on the 1st day of each mouth commencing June 1, 198 and continuing until May 1, 1991, when any remaining balance shall be paid eu11. Said monthly payments shall consist of interest , computed monthly at ate of 11% per annum, and balance shall be principal payment and shall be 1 • o reduce balance due under this contract. All or any part of principal bad • •f said two contracts may be prepaid at any time without penalty There is •e Said parties of the second part further covenant and agree as follows: to pay, before penalty attaches thereto, all taxes clue and payable (0 ! ; in the year 1982.,y and in subsequent years, and all special assessments heretofore or hereafter levied. - also that any buildings and improvements now on said land, or which shall hereafter be erected, placed;•or nuul)thereon, stall not be removed therefrom, but shall be and remain the prola•rty of the part 1@:3 of the first. part until this cont met shall,l,e fully performed by the parties of the second part; and at their own expense, to keep the buildings on said premises at.all times insured in some reliable insurance company or companies,to be approved by the part.3-El _of the first part,against loss by fire for at least the suns of flan. 'ncurable valaue, or balance due under above contract, whichever is 115 and against loss by windstorm for at least the sum of full insurable value, or balance due ..und.er above contract, whichever i.s lees Dollars payable to said part 7108 of the first part, t i U Lr ' heirs or assigns, and,in ease of loss,should there lie any surplus over and above the amount then owing said part _les.of the first part, their heirs,or assigns, the balance shall be paid over to the said parties of the second part as their interest shall appear, and to deposit with the parties of the first part policies of said insurance. But should the second parties fail to pay any items to be paid by said parties under the terms hereof,same nifty be paid by first part j-05andshall be forthwith payable, with interest thereon, as an additional amount due first part .le,.under this contract. But should default be made in the payment of principal or interest due hereunder,or of any part thereof, to be by seeond parties paid,or should they fail to pay the taxes or assessments upon said land, premiums upon said insurance,or to la•rform any or either of the covenants,agreements, terms or conditions herein contained,to be by said second parties kept or performed,the said part 1.u b.. ..of the first part may,at t h©2r .option,by written notice declare this contract cancelled and terminated,and all rights,title and interest acquired thereunder by said second parties,shall thereupon cease and terminate, and all improvements made upon the premises, and all payments made hereunder shall belong to said part i.O. of the first part as liquidated damages for breach of this contract by said second parties,said notice to be in accordance with the statute in such case made and provided. Neither the extension of the time ---------- --- --- ----- e , • • • of payment of any sum or sums of money to be paid hereunder.nor any waiver by the part leg_ of the first part of—fib e cir rights to declare this contract forfeited by reason of any breach thereof,shall in any manner affect t he right of said part les __to cancel !! this contract because of defaults subsequently maturing,and no extension of time shall he valid unless evidenced by duly signed instrument. Further, after service of notice and failure to remove, within the period allowed by law, the default therein specified, said parties of the second part hereby specifically agree,upon demand of said part i_N of the first part,quietly and peaceably to surrender to them_ possession of said premises, and every part thereof, it }ring understood that until such default, said parties of the second part are to oss have on of saidessi � p . p,•e.,,,;sm (cont ' d) tnortgage on these premises to First Nat' 1 Bank o: ! thakopee, on which there was a current balance as of April 6, 1981 of $5,99 .l he buyers do not assume nor agree to pay said mortgage which will be paid .y iiarold J. Solem and Shirley .L. Solem. Vendors reserve the right to refinanc ! :the present encumbrance at any time at his sole expense, which shall not, b ' ;its terms exceed the terms nor balance of this contract at any time, and if .Ouch a contract is made, buyers agree to join in the refinancing agreement. Vendors will pay i of real estate taxes due in 1981, and all special assess 'meets levied at time - of closing. Vendors warrant that this property compliei With City of Shakopee rules as a legal duplex. Vendeos reserved the right t . approve in writing any lease or rental agreement which Vendors have entered ' into, if such agreements shall continue after date of closing. Vendors warr.ln' that all appliances, heating, air conditioning, wiring and plumbing used an ! located on said premises are in proper working order at date of closing. ex and Sellers mutuallyagree1 g sBu ' n 1, that pro-rata adjustments of rents, interest insu �=n 6.4y water$&_g e u r.i= nd cu 'rent operating expenses shall. be made as of 15-:1. tt p gree , By and between the parttes hereto, that the ttme of payment.stall be an essential part of this contract; and that all the covenants and agreements herein contained shall extend, run with the land, and bind the heirs, executors, administrators and assigns of the respective parties hereto. J fl ttegtimonp ittibereof, The parties hereto have hereunto set their hand.... the day and year first above written. ,_10 6,014,„„,\_„,,t .f _ , ;,•,- .. . I W .rren I a - I. F1 da_ _r - ..-.E. N.� ;, *, lipNan E. idea'=r William M. dy ...-G- U i'/7 . • 146,-a�As �r M B y 2� � ==�tate Q J`'� jnne eta, �7.4,,,, x. floc County of ,I:IENN1.1N Marlyn L. Block • The foregoing, instrument was acknowledged before me this 23rd day of April , .19....81._...., By cy.C:::i..:a..S ",,�� . THIS INSTRUMENT WAS DRAFTED BY {.''<.. 9. `}reel' orlres Great West Land Development C o. HOT',7.Y V2l:C—MltttIESOTA 6533 Cedar Avenue Sou-cf.. ky.cc.ru� sioA.w7; '�slyly5,1985 • R i c h f i e l d iMN 551}2 (Address) - Revised as per instructions from Buyers Attorney Ernest Erickson Flour Exchange Bldg. , Suite 1010 310 - 4th Ave. So. IIpls . MN. it w 4.'4tl o w z r. Cl.. Q. 0; Q 0 Q. •.i 0. o ° aabnAw o °ai o h io- C o &.. G U .'S .,, w c c cr M Qui m ti V • . y k.' d C 'M C a o c3U O rb k a ` ` FQ 'd, . C 4. C ... rob Q O w o y v ,Z .. v e o o U Co 'LZ 2C jla ISI I TO: John K. Anderson/City Administrator FROM: Judith S. Cox/City Clerk RE: Regulations on Issuance of Pool Table Licenses DATE: August 2, 1982 • Introduction: I have been asked by Jackson Chilquist of Abeln's Bar if he could apply for a pool table license. Background: Mr. Chilquist has an on sale and off sale 3.2 beer license and also a set-up license. In reviewing the City Code Sec. 6.31 Subd. 3F it states that it is unlawful for any pool table licensee not having an on-sale liquor license, to sell or possess, or knowingly allow any person on the licensed premises to sell or possess, intoxi- cating liquor. Mr. Chilquist has a set up license, but not a liquor license, so he would not be permitted to allow consumption on the premises and also have a pool table license under the current City Code. Except for reference to "allowing any person on the premises to possess intoxicating liquor without an on-sale liquor license", both Subd. 3F and 3G are redundent because state liquor laws already prohibit the sale of liquor and beer without a license. Alternatives: 1. Leave the City Code unchanged. This will continue to prohibit the issuance of both a set up license and a pool table license to the same establishment. In discussing this matter with Mr. Coller, the City Attorney, he could think of no reason why we might want this kind of a regulation. 2. Amend the City Code deleting Subd. 3F and 3G. This would permit an establish- ment to possess a set up license and a pool table license. The other language being deleted is still covered by state law (as stated above) . Recommendation: I recommend Alternative number two, that the City Code be amended. Recommended Action: Direct the City Attorney to prepare an ordinance amending the City Code by deleting Subd. 3F and 3G of Section 6.31. JSC:cu /1 Q ,' MEMO TO: John K. Anderson, City Administrator FROM: Judith S. Cox , City Clerk RE: Liquor and Beer License Regulations DATE : August 9 ,. 1982 Introduction It has been brought to my attention that the City Code currently prohibits gambling or gambling devices from being permitted on any premises holding a beer or liquor license . Background The City Code is in conflict with the state law which does permit gambling devices known as "paddle wheels" or "tipboards" , or apparatus used in conducting raffles , when such activities are licensed by the local unit of government. Is it the Council ' s desire to prohibit all gambling or permit gambling as allowed in the state law? Alternatives 1 . Amend the City Code to be consistent with state law. 2 . Make no changes to the City Code and issue no gambling licenses . Recommendation Direct the City Attorney to prepare an ordinance amending the City Code to,prohibit gambling or gambling devices on any premises licensed to sell 3 . 2 beer or intoxicating liquor, except that gambling devices may be kept or operated and raffles conducted on licensed premises and adjoining rooms when such activities are licensed by the local unit of government pursuant to M. S .A. 349 . 26 and 340 . 14 . Action Requested Direct the City Attorney to prepare an ordinance amending the City Code by permitting gambling pursuant to state law. JSC/ jms • N N N N N N N N N N N N N • N • N N N N N N N N • N • N • N • .3 r / • NNNN NNNNNNNNN * N • NNNNNNNN • N • N * N * -r n 50 • W W W CA W W W W W W W W W • u • W W W W W W W W • W • W • W • W 2 9 • O 700 00(JO CDU 0 30 0 O s 0700 0C)00 0 • U • O • O * PCl N ' • N N N N N N N N N N N N N • N . . r • C) • 0 • S n • .4 -4.4 .4 o5 m 05OD05 O` T O`O5 0 a • 0 U 0 CD • a • 1'0 x n z -4 0 -4 • o o -n r OC C.' •0G :. O (A C. 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Jo gunoure aq,L -81.osauuTIAI 'aadoxegg 3o WgTO au Ag pagdope suoTguorJroadg paspuPgg aziq t rt aouepaoaos uT pauLzojaad aq 'Tugs paT3Toads os you vox Ruy •uTa.zaq paT3Toads asTM.raggo ssaTun papuaure su goBaguoj TsuT9r.zo au. uT paT3Toads suoTgrpuoo amus au .zapun 'anoqu paouaaajaa '1.oe.zguo0 au uT pa;BaodaoouT aq -nulls xaoM pagTaosap anoge au 00 '00S$ 0 amen ale6 pue lue.apAq aTbaolau •Z £L 'fiL0 'L$ 0 pagpeo.a II! ea.ze Bios D!ue6.Jo II!Ja.1 pue Tnagns •L X(xxWX I/pappd) aq oq xaoM 3o uoTgdraosaj 08•S6911fiL $ aapaO a2uBu0 oq roz.rd, paaaqumoug spunJ TPgo,L 00'ZLL '£ $ 'oN n.zgg L •oN (s)Jap.zo a ur 08•£8s 'l fi l $ qunouIv qo eaguo0 Tt uTJrj0 Z-Z8 : •om gouaquo Z86L 'ti lsn6ny :aqua •a.suoj Aempeo •os •pnl8 •pul Aailen aureN goaCoad Z : •ej .rap.z0 o:dum UGH° HO&vHO MEMO TO: John K. Anderson/City Administrator FROM: Judith S . Cox/City Clerk RE: Application for On Sale Sunday Liquor License from V. F.W. DATE : August 13 , 1982 Introduction: The City has received an application from the VFW for a Sunday Liquor License . They recently received approval for their On Sale Club License and there bond and insurance are in order. Action Requested : Approve the application and grant an On Sale Sunday Intoxicating Liquor License to V. F.W. Post 4046 , 132 East 1st Avenue . JSC/cau • /: MEMO TO: John K. Anderson, City Administrator FROM: Anci rt RE: Travel/Subsistence Reimbursement DATE: - yusl- 13, l)$-2... Introduction The staff member listed below is requesting Council approval for reimbursement of travel/subsistence expenses. Background Staff frequently has to use their own funds to pay for conference or travel expenses. The process for Council to approve reimbursement requests within the regular bill cycle can entail a wait of up to five weeks before the employee receives the money. In order to alleviate a possible hardship on the employee by expediting compensation for expenses incurred on City business, this request is forwarded out of the normal bill cycle. The employee and expenses are: Name: kkanry rc. Amount : Purpose: M,_Hc 0 .,14 Pn, ti,..� �Cr hKs�'nrss Alternatives 1 . Approve payment 2. Defer to normal bill cycle 3. Deny all or part of request Recommendation Alternative #1. Action Move to approve payment to Tea n y r.e, in the amount of $ 31,1,9 for travel/subsistence reimbursement. ;., •�, City of Shakopee _ : 1 "s'�" K P f f �' POLICE DEPARTMENT �.•,.. �NNESIpt • ^ ,r 4'` � ��\ �� q j.kl 476 South Gorman Streetilit a ` 11,-- ' Y ''' P i. �a 0 SHAKOPEE, MINNESOTA 55379iff:A.--,:.. - f 1 S \`A POC ` ; � Tel. 445-6666 ' v' 55 379 , -iip TO: Mayor, Council Members FROM: Tom Brownell SUBJECT: Traffic Control/4th Avenue and Spencer Street DATE: August 10, 1982 INTRODUCTION The Shakopee Fire Department has requested additional traffic control at the intersection of 4th Avenue and Spencer Street. BACKGROUND The Fire Department frequently uses 4th Avenue when responding to service in the eastern section of the city. The residence located on the northwest corner of the intersection of East 4th Avenue and Spencer Street creates a visual obstruction for vehicles proceeding east on 4th Avenue, which requires the emergency vehicles to completely stop prior to proceeding through the intersection. The intersection is presently con- trolled by stop signs for east/west traffic on East 4th Avenue. The request has been reviewed with the City Engineer. RECOMMENDATION Erect stop signs on the northwest and southeast corner of the intersection requiring vehicles proceeding north and southbound to stop, thus creating a four-way stop intersection. COUNCIL ACTION REQUESTED Direct staff to erect stop signs on the northwest and southeast corners of the intersection at East 4th Avenue and Spencer Street. go �E,tvE JO Prott t MEMO TO: City Council FROM: LeRoy Houser/Building Official RE: Transfer of Funds DATE: August 2, 1982 Introduction: Four thousand dollars is in the budget for carpeting of the police station for the 1982 budget year. With the concurrence of the Police Chief I would like to 'assign $2,000 of this money to installing and modifying the overhead doors of the police station. I will budget in 1983 again for carpet replacement of the police station. Background: The two overhead doors are a constant service problem. It is my opinion the torsion bar and assembly is to light for the weight of the doors. I proposed to install two new metal insulated doors and reduce the height of the new installation by two full panels. The reduced height will not impede the police department use of the garage and will be more energy efficient. We have had three service calls already this year at about $160.00 per shot. Alternatives,: 1. Wait until 1983. 2. Leave as is and continue paying maintenance repair. 3. Do nothing. 4. Transfer funds to install and modify the overhead doors as stated above. Action Requested: Authorize the transfer of $2,000 of the budgeted carpet money to overhead door installation for the police station. LH:cu