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HomeMy WebLinkAboutCity Council - 01/16/19790 04te ROLL CALL EDEN PRAIRIE CITY COUNCIL TUESDAY, JANUARY Isom COUNCIL MEMBERy /' er „.1 COUNCIL STf4: (! 7:30 PM, CITY HALL 1ty Manager Roger Ulstad; City Attorney er Pauly; Planning Director Chris Eager; nce Director John Frane; Director of nity Services Bob Lambert; Engineer 1 Jullie; and Joyce Provo, Recording Secretary i` Mayor Wolfgang Penzel, Dean Edstrom, Dave Ost erholt, Sidney Pauly and Paul Redpath INVOCATION 'LEDGE OF ALLEGIANCE I. SWEARING IN CEREMONIES FOR PAUL REDPATH U. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS III. MINUTES A. Minutes of City Council Meeting held Tuesday, December 19, 1978 B. Minutes of City Council Meeting held Tuesday, January 2, 1979 IV. CONSENT CALENDAR A. Clerk's License List B. Set Public Hearing for Chatham Woods for February 6, 1979 C. Set Public Hearing for Norseman Industrial Park. 3rd Addition for February 6, 1979 D. Set Public Hearing for Lake Heights Addition for February 6, 1979 E. Set Public Hearing for Jerry's Super Valu for February 6, 1979 F. Authorize bids for 1 dump truck G. Authorize bids for quick lime for water treatment H. Accept street and utility improvements in Red Rock Hills 3rd Addition I. Accept sanitary sewer and watermain improvements for Hipps Mitchell Heights 3rd Addition V. PUBLIC HEARINGS Page fT, Page 73 Page 80 Page 83 Page 85 Page 86 Page 87 Page 88 Page 89 Page 91 A. Bluff's West 2nd Addition by Hustad Development Corporation, Dr. & Page 93 Mrs. Brandt, and B.F.I. Request for rezoning from Rural to R1-13.5 on 97 acres (ResolialTi No. 78-154 and Ordinance No. 7841) Continued Public Hearing from December 5, 1978 VI. REPORTS OF ADVISORY COMMISSIONS VII. ORDINANCES & RESOLUTIONS A. 2nd Reading of Ordinance No. 78-56, rezoning 11.7 acres from Rural to Commercial-Regional Service for Eden Prairie Neighborhood Center, BarMil Research Corporation and developers agreement B. Resolution No. 79-14, granting final approval for Municipal Industrial Development Bonds for C.P.T. Corporation 0/ co 4.-A 'Resolution No. 79-15, granting fina;:mola Municipal Industrial Development Bonds for Super Vali Resolution No. 79-16, orantini final approval for Municipal Industrial Development Bonds for Kensington Development /.0rpe4c,‘ e-- —4 Council Agenda - 2 - Tues.,January 16, 1979 B. Community Development Block Grant. Joint application for approximately Page 94 $65,000 of Federal funds to be used for eligible community projects. Page 95 Page 104 Page 109 Page 113 Page 119 Page 120 VIII. Resolution No. 79-19, granting preliminary approval for Municip#1 Industrial Development Bonds for Eden Hills Company AA p....of Jr o Resolution No. 79-20, •ranting preliminary approval for Municipal Industrial Development Bonds for Menard's, Inc. M 0 g REPORTS OF OFFICERS, BOARDS & COMMISSIONS A. Reports of Council Members I. Appointment of members to the Citizens Advisory Commission on Cable TV 2. Appointment of 1 Representative to the WAFTA Board for a 1 year term. Appointment by Council 3. Set date for Council to meet with Commissions (Request made by the Parks, Recreation & Natural Resources Commission) B. Report of City Manager I. Request for change order regarding developments agreement for Creekside Heights, item #3 C. Report of City Attorney D. Report of Director of Community Services 1. Mitchell Lake Park Option 2. Topview Park E. Report of City Engineer I. Consider bids for sanitary sewer extension for Super Valu head- quarters site, I.C. 5)-332 (Resolution Nos. 79-17 and 79-14 Page 121 Page 124 Page 125 Page in Council , Agenda 2. 3. 4. Final Plat aeproval for Olapit Hills Highland (Resolution No. )9-09I Report on meetings with. Mir tenter Area property, comers regarding transporiattcni floptovements Release of 10% retainage - MTh F. Report of Finance .0trector 1. Hunici..pal jodustrial Developsent B 2. si RepartIllal n e errs& Associates. and Hopped. ndustrial DTOPOflt W 111 — . • Palanieo-of .PtPer, UNAPPROVED MINUTES EDEN PRAIRIE CITY COUNCIL TUESDAY, DECEMBER 19, 1978 COUNCIL MEMBERS: COUNCIL STAFF PRESENT: INVOCATION: Councilman Dave Osterholt PLEDGE OF ALLEGIANCE ROLL CALL: All members present. 7:30 PM, CITY HALL Mayor Wolfgang Penzel, Billy Bye, Joan Meyers, Dave Osterholt and Sidney Pauly City Manager Roger Ulstad; City Attorney Roger Pauly; Planning Director Chris Enger; Finance Director John Frane; Director of Community Services Bob Lambert; City Engineer Carl Jullie; and Joyce Provo, Recording Secretary Mayor Penzel presented plaques to outgoing Council Members Joan Meyers and Billy Dye on behalf of the City Council in appreciation for their dedication and service to the City of Eden Prairie. I. APPRNVAL OF AGENDA AND OTHER ITEMS OF BUSINESS The following items were requested to be added to the agenda: A. Cable TV under the "Reports of Council Members" category B. Menard's Grading and Elevation Plan under the 'New Business" category MOTION: Meyers moved, seconded by Bye, to approve the agenda as amended and published. Motion carried unanimously. II. MINUTES OF THE CITY COUNCIL MEETING HELD TUESDAY, NOVEMBER 21, 1978 Pg. 2, 4th para., last line, strike "inhouse" and insert in lieu thereof "at Hustad's offices". Pg. 3, 1st para., 3rd line, strike 'waste" and insert in lieu thereof "wastes'. Pg. 6, item VII. A., 2n4 para., 2nd line, strike 'granting preliminary approval' MOTION: Bye moved, seconded by Meyers, to approve the minutes of the November 21, 1978 Council meeting as amended and published. Motion carried unanimously. III. CONSENT CALENDAR A. Clerk's License List B. Set Public Hearing for removal of diseased trees on private property for February 6, 1979 C. Set Public Hearing for Round Lake Estates for February 6, 1979 MOTION: Meyers moved, seconded by Bye, to approve items A - C on the Consent Calendar. Motion carried unanimously. GC Council Minutes - 2 - Tues.,December 19, 1978 IV. PUBLIC HEARINGS A. Bluff's West 2nd Addition by Rusted Development Corporation, Dr. & Mrs. Brandt, and B.F.I. Request for rezoning from Rural to R1-13.5 on 97 acres (Resolution To. 78-154 and Ordinance No. 78-41) Continued Public Hearing from December 5, 1978. Mayor Penzel referred to communication from Richard Putnam, Busted Development Corporation, requesting the Bluff's West 2nd Addition Public Hearing to he continued to permit resolution of the park and overall development plan question. MOTION: Meyers moved, seconded by Bye, to continue the Bluff's West 2nd Addition Public Hearing to the January 16, 1979 Council meeting. Motion carried unanimously. B. Thrift-Way Stores, request by Mr. Salzburg to rezone 5.409 acres from Hwy.-Conan. and Rural to Commercial-Regional Service for a grocery store. The site is located on the north side of West 78th Street and south of Leona Road (Ordinance No. 78-55) Continued Public Hearing from December 19, 1978 City Manager Ulstad explained the proponent called last Thursday, December 14, and requested that his application for consideration of rezoning he withdrawn. Mr. Ulstad talked to the proponent again on Monday of this week, December 18, and they did not wish to change their request. . -MOTION: Meyers moved, seconded by Bye, to close the Public Hearing on the rezoning request for Thrift-Way Stores without action due to the proponent's request for withdrawal. Motion carried unanimously. C. 4/5 Planned Study, recommendation on reinstating properties in SW, SE and NE quadrants back into Planned Study (Ordinance No. 7847) City Manager Ulstad explained there is an affidavit on file calling for this Public Hearing and property owners in the 4/6 quadrants have been notified of this hearing. City Planner Enger spoke to the Staff Report dated 11/16/78 and the recommendation by the Planning Commission of December 11, 1978, to place the areas as outlined in the Staff Report into Planned Study for a period of one year. MOTION: Bye moved, seconded by Meyers, to close the Public Hearing and give a 1st Reading to Ordinance No. 78-57, reinstating properties in the SW, SE and NE quadrants back into Planned Study. Motion carried unanimously. V. REPORTS OF ADVISORY COMMISSIONS A. Development Commission - Report from Chairman Dean Edstrom on the Eden Prairie Foundation Dean Edstrom, Chairman of the Development Connission, explained the commission has been considering the establishment of an Eden Prairie Foundation. The purpose of the Foundation would be to receive gifts from anyone in the community who wished to contribute to the community. There is some feeling if a Foundation is established it would be somewhat easier for people to give gifts to the community, i.e., they don't feel that any gift would be tangled up perhaps in the political process, might feel a Foundation would have a more objective view to the use of gifts, and the Foundation would be in a position to use gifts of money, property, etc., as it deemed fit for the community. 66 Council Minutes - 3 - Tues.,December 19, 1978 A. Development Commission (continued) . Edstrom stated a number of Foundations have been set up throughout the country, larger ones in this area would include the Minneapolis Foundation and the St. Paul Foundation, which are quite well known. Edina also has one and the City Staff has been working with the Development Commission and have communicated with the Edina people to see how their Foundation is operated. The concept is this would be a tax exempt corporation. Tax exempt status would be necessary for the purpose of keeping the fund in tact and used completely for the benefit of the community. There would be no minimum or maximums on the gifts that could be made. The gifts could be made in cash or in property, however, the Foundation Board would be in a position to refuse gifts if they felt the gift inappropriate, uneconomical, etc. Edstrom spoke to the Development Commission minutes from the meeting held November 15, 1978 where the Foundation was discussed in detail. One of the questions that came up during the consideration of the Foundation by the Development Commission was whether gifts of land by landowners or developers might be made to the Foundation., perhaps in lieu of cash park fees or park dedication in connection with development. Based on inquiries made, it does not SOW that would be the appropriate or possible direction for the Foundation simply because the Internal Revenue Service would look at those gifts as, in effect, a condition of development and consequently the developers would not achieve the tax advantages they would hope for by making a gift. Edstrom pointed out the recommendation of the Development Commission is that the Council at this time authorize the City Attorney to commence drafting the Articles of Incorporation and the Bylaws and to work again with the Development Commission to refine same, and then bring them back to the Council for review. General discussion tqpk place regarding the formation of an Eden Prairie Foundation and Mr. Edstrom answered questions of Council members. Osterholt suggested Staff get a copies of other communities bylaws and maybe a representative from one of the other Foundations to appear before the Council to tell how their Foundation functions and what the values are. MOTION: Osterholt moved, seconded by Pauly, to direct Staff to investigate further the success of these Foundations in other communities and report back to the City Council at the earliest opportunity. Motion carried unanimously. VI. ORDINANCES & RESOLUTIONS A. 2nd Reading of Ordinance No. 78-31, rezoning from Rural to RN 6,5 for Prairie East 7th and developers agreement Mayor Fenzel explained the proponents have requested this item to be continued to a future Council meeting as there is a wording difficulty in the developers agreement. Fenzel requested that somewhere in the developers agreement the name of "Windsor Development Corporation" appear. Bye stated it would help the Council if proposals would clearly delineate who the proponents are. MOTION: Osterholt moved, seconded by Pauly, to continue the 2nd Reading of Ordinance No. 78-31 and the developers agreement for Prairie East 7th to a future Council meeting. Motion carried unanimously. 6? Council Minutes 4 Tues.,December 19, 1978 B. Resolution No. 78428, grantinupreliminary approval for MIDB's for United Properties Boyd Stofer, Vice President of United Properties, spoke to their request • and outlined in detail their application for an Industrial Development Bond Project. Mr. Stofer showed slides of other properties in Minnesota owned by The Northland Company and properties managed by United Properties, a division of The Northland Company, along with aerial photographs of the property they are intending to purchase in Eden Prairie should the Council give favorable approval to the tax exempt mortgage. The property is located just west of the intersection of Washington Avenue and Valley View Road on an 8-acre site in the Norseman Industrial Park, 2nd Addition, and the intended use will be for office, warehouse and service uses. Stofer stated their reasons for approach- ing the Council on tax exempt financing is that the project is unfeasible with conventional financing. At this time they are looking at rates in excess of 10% and they have put an option on the property in anticipation of approval of tax exempt financing, and the option expires the 22nd of December. Bill Balsiger, Northland Mortgage Company, stated their intent is to sell this tax exempt mortgage to one investor, that investor is yet unnamed. They have talked to two investors who have shown ibterrat in the program* those being Metropolitan Life and New England Mutual. They cannot move forward with these .investors until they receive approval of the MOB request from the City Council. MOTION: Bye moved, seconded by Meyers, to adopt Resolution No. 78-228, granting preliminary approval for Municipal Industrial Development Bonds for United Properties. Motion carried unanimously. C. 2nd Reading of Ordinance No. 78-46, licensing and regulating the use and sale of Intoxicating liquor MOTION: Osterholt moved, seconded by Pauly, to approve the 2nd Reading of Ordinance No. 78-46, licensing and regulating the use and sale of intoxicating • liquor. Motion carried unanimously. VII. REPORTS OF OFFICERS, BOARDS & COMMISSIONS A. Reports of Council members 1. Councilwoman Sidney Pauly - Resolution No. 78-332, recommending the appointment of Edward Hjermstad to the Metropolitan Transit Commission Councilwoman Pauly spoke to Resolution No. 78332, and recommended adoption of same. MOTION: Pauly moved, seconded by Osterholt, to adopt Resolution No. 78-332, recommending the appointment of Edward Hjermstad to the Metropolitan Transit Commission. Motion carried unanimously. 2. Councilwoman Joan Meyers - Cable TV Meyers spoke to the Joint Powers Commission meeting held December 6* 1978 and reported on two items from that meeting: 1) Mr. Hanks, Chairman of the Joint Powers Commission and a Councilman from St. Louis Park, requested that the members point out to their City Councils that the COmilde ratio; of Cable TV doesn't cost the City anything, and even the approval of Cable Council Minutes 5 Tues.,December 19, 1978 2. Councilwoman Joan Meyers - Cable TV (continued) TV doesn't cost the City anything. However, there will be many people hours of commission work and franchise development, etc. Once the question is addressed by the Council to go or not to go with Cable TV, unless we go into the area of public programming, there isn't a cost and then it Is up to the private decision of homeowners along the wire whether or not they want to join. Mr. Hanks urged our City Council to consider the question of Cable TV in each of our communities: 2) To start with that consideration the Council should appoint a Citizens Advisory Commission as soon as possible. Meyers urged the Council to consider the appointment of this Commission at the 2nd Council meeting in January and explained that anybody appointed to the Commission has to be a resident of the City. Meyers suggested the Council include representatives from homeowners groups, churches, senior citizens, Chamber of Commerce, and maybe the library or friends of the library, and the School District. B. Report of City Manager 1. Adjustment to the 1979 Budget City Manager Ulstad spoke to his memo dated December 15, 1978. MOTION: Osterholt moved, seconded by Bye, to approve the recommendation of the City Manager to amend the 1979 Public Safety Department Budget by transferring $18,750 from the unappropriated surplus of the General' Fund to the Public Safety Department for the purpose of adding one additional police officer. Roll Call Vote: Osterholt, Bye, Meyers, Pauly and Penzel voted "aye". Motion carried unanimously. 2. Federal Wage and Price Guidelines City Manager Ulstad requested the Council's support of the Federal Wage and Price Guidelines as outlined in PELRA newsletter dated November 1, 1978. MOTION: Osterholt moved, seconded by Pauly, to approve the City Manager's recommendation to support the Federal Wage and Price Guidelines. Motion carried unanimously. C. Report of City Attorney No report. D. Report of Director of Community Services 1. Park Dedication Ordinance (Ordinance No. 78-229) Director of Community Services Lambert spoke to the proposed park dedication ordinance nothing that the ordinance was before the Parks, Recreation & Natural Resources Commission on 12/18/78 and the Commission requested additional time to review same. Penzel suggested the Council members make their recommendations to Mt. Lambert as to any modifications, and in the meantime wait for the Parks, Recreation & Natural Resources Commission to make a recommendation to the Council. Council Minutes - 6 - Tues.,December 19, 1978 I. Park Dedication Ordinance (continued) Osterholt commented if there is a thought in mind to make any increases In the fees, there should be some kind of a uniform adjustment or across the board increase. Pauly questioned if something could be put in the ordinance that land to be dedicated be good land. Also in the tot lot recommendation something that would be very cheap and would not have to be required, Is when land is being excavated and if there are any enormous boulders, a few of these boulders in a park are a tremendous thing to play on. Bye suggested input from potential developers as to their attitudes and ideas. Council members referred this item back. to Staff. 2. Mitchell Lake Park Option Director of Community Services Lambert spoke to his memo dated 12/15/78, recommending that the City enter into a five-year option on the Miller property that would allow the City to acquire warranty deeds on portions of the property acquired through grants. Lambert cemented he has talked about this proposal with representatives from the Miller's and they have some concern about the interest. The option agreement talks about-6% per annual interest, therefore the only way it could possibly be worked out would be when the City acquires the property each year, that interest cost would have to be added on to the price of the property. Lambert stated he is not comfortable about having to buy land this way, t,at doesn't see any other way to enter into this and try to secure grant money. Art Miller was in attendance at the meeting represented by his legal counsel, Dennis Moriarity and Jerome Jaspers. Mr. Moriarity commented if the City buys the first parcel, the 5th year they don't want the City to come in and buy the 2nd parcel - it has to be contiguous. Council members agreed the property under consideration is a beautiful choice piece of property for a park. Osterholt asked that figures be provided to the Council to identify what the City will have to pay and when they are obligated to pay. MOTION: Meyers moved, seconded by Pauly, to direct Staff to draw up an option agreement for the purchase of the Miller property as outlined in memo dated 12/15/78, incorporating concerns and figures that were discussed this evening, and bring the matter back for Council consideration for approval at the 1/2/79 Council meeting; or that it be brought before a special meeting unless an extension of the option is obtained for a 30-day period, at which time it could be presented then at a regular Council meeting. Motion carried unanimously. MOTION: Osterholt moved, seconded by Bye, to change the name of the park from "Mitchell Lake Park" to "Miller Park on Mitchell Lake". Motion carried unanimously. 70 Council Minutes - 7 - Tues.,December 19, 1978 E. Report of City Engineer 1. Consider bids for public works maintenance equipment City Engineer Jullie spoke to his memo dated December 14, 1978, and in addition informed the Council that the Long Late Ford Tractor Company on the bottom of one of their proposal forms did submit a bid price for a different modeled mower on the Ford 5600 tractor. They indicated a deduct price of $375.00 from their base bid of $15,431 for the roadside maintainer, which made their bid $8.00 lower than that of Valley Equipment Company. However, Staff still recommends the awarding of the bid to Valley Equipment for the tractor mower because the Ford 5600 tractor did not conform to the specifications. Jullie therefore recommended the awarding of the contract to McQueen Equipment Company in the amount of $53,231.00 for the jetting machine and the eductor machine, and to Valley Equipment Company in the amount of $15,064.00 for the tractor mower. MOTION: Bye moved, seconded by Meyers, to award the bid to McQueen Equipment Company in the amount of $53,231.00 for the jetting machine and eductor machine, and to Valley Equipment Company in the amount of $15,064.00 for the tractor mower as the low bid of Long Lake Ford Tractor did not meet the specifications. Roll Call Tote: Bye, Meyers, OsterhOlt. Pauly and Penzel voted "aye". Motion carried unanimously. 2. Final plat approval for Mitchell Lake Estates (Resolution No. 78430) MOTION: Bye moved, seconded by Meyers, to adopt Resolution No. 78-230, approving the final plat of Mitchell Lake Estates subject to the requirements of the Engineer's Report dated December 13, 1978. Motion carried unanimously. 3. Change Order No. 1, I.C. 51-320, Eden Road sanitary sewer contract, Northdale Construction Company City Engineer Jullie spoke to his memo dated December 14, 1978, and recommended approval of Change Order 1, I.C. 51-320 in the amount of $3,906.30. MOTION: Meyers moved, seconded by Pauly, to approve Change Order 1, I.C. 51-320, Eden Road sanitary sewer contract, and authorize payment of $3,906.30 to Northdale Construction Company. Roll Call Vote: Meyers, Pauly, Bye, Osterholt and Penzel voted "aye% Motion carried unanimously. F. Report of Finance Director 1. Payment of Claims Nos. 2433 - 2621 MOTION: Osterholt moved, seconded by Meyers, to approve Payment of Claims Nos. 2433 - 2621. Roll Call Vote: Osterholt, Meyers, Bye. Pauly and Penzel voted "aye% Motion carried unanimously. Council Minutes - 8- Tues.,December 19, 1978 2. Adjustments to the 1978 Budget (Resolution No. 78-231) Finance Director Prone spoke to memo dated 12/14/78 regarding adjustments to the 1978 budget, and recommended Council adopt Resolution No, 78-231 approving the budget adjustments. MOTION: Osterholt moved, seconded by Pauly, to adopt Resolution No. 78-231, approving the adjustments to the 1978 Budget as per memo dated December 14, 1978. Roll Call Note: Osterholt, Pauly, Bye, Mayers and Fenzel , voted "aye". Motion carried unanimously. VIII. NEW ausotss A. Menard's Grading and Elevation Plan Dan Johnson, Suburban Engineering, displayed the Concept development plan and how grading is proposed to take place on the Menard's site. Planning Director Enger exploited that he, along with City Engineer .1011g, received this plan today, 12119/78, and it is what they had asked for in terms of what Menard's had in Mind. Enger believes once the grading is accomplished it will enhance the development. The general overall: grading plan is good, once the mass grading begins to happen. Does have tonterltabOut the prolification of the -number of separate individual small =venial tut. ii 1 'City Engineer Jullie conmented the grading up along and close to Valley View , Road along the Ring Road alignment would be such so as to not encroach into the road bed of Valley View Road, and there would be no tie-in of the service road y' or Ring Road until such timLos the City completes its project, Which would include extending_theR)and Valley View Rood all the way over to Mitchell '----------901d:—At-thartime the City would include the connection of the Ring Road, . as Menard's shows, over to the bridge and cul ,-de-socing Valley View Road. TO do it now is just about impossible because of the grade separation between the grades on Schooner Boulevard and Valley View Road. ' Penzel suggested striking "concept plan" in the developer's agreement. Council members concurred. MOTION: Bye moved, seconded by Meyers, to receive the grading plan as submitted and make it part of the file on the Menard's request for approval. Motion carried unanimously. IX. ADJOURNMENT MOTION: Bye moved, seconded by Meyers, to adjourn the Council Meeting at 10:46 PM. Motion carried unanimously. UNAPPROVED MINUTES EDEN PRAIRIE CITY COUNCIL TUESDAY, JANUARY 2, 1979 COUNCIL MEMBERS: COUNCIL STAFF PRESENT: 7:30 PM, CITY HALL Mayor Wolfgang Penzel, Dean Edstrom, Dave Osterholt, Sidney Pauly and Paul Redpath City Manager Roger Ulstad; City Attorney Roger Pauly; Director of Community Services Bob Lambert; City Engineer Carl Jullie; and Joyce Prey°, Recording Secretary INVOCATION: Mayor Wolfgang Penzel PLEDGE OF ALLEGIANCE ROLL CALL: Penzel, Edstrom, Osterholt and Pauly present; Redpath absent. I. SWEARING IN CEREMONIES FOR MAYOR WOLFGANG PENZEL AND COUNCILMAN DEAN EDSTROM City Attorney Roger Pauly conducted the swearing in ceremonies for Mayor Penni and Councilman Edstrom. II. OFFICIAL DESIGNATION A. Appointment of Acting Mayor for 1979 MOTION: Osterholt moved, seconded by Edstrom, to appoint Councilwoman. Sidney Pauly as Acting Mayor for 1979. Osterholt„ Edstrom and Penzel voted "aye", Pauly "abstained". Motion carried. III. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS The following item was added to the agenda under the "New Business" category: A. Appointment of a Public Health Sanitarian MOTION: Osterholt moved, seconded by Edstrom, to approve the agenda as amended and published. Motion carried unanimously. IV. MINUTES OF THE CITY COUNCIL MEETING HELD TUESDAY, DECEMBER 5, 1978 MOTION: Osterholt moved, seconded by Pauly, to approve the minutes of the December 5, 1978 Council meeting as published. Osterholt, Pauly and Penzel voted "aye", Edstrom "abstained". V. CONSENT CALENDAR A. Clerk's License List B. Annual Minnesota DOT Agency Agreement approval (Resolution No. 79-07) C. Annual Minnesota DOT Engineering Technical Assistance Agreement (Resolution No. 79-08) '13 Council Minutes - 2 - Tues.olanuarY 2, 19 79 V. CONSENT CALENDAR (continued) D. Final Plat approval for Olympic Hills Highland (Resolution No. 79-09) E. Final Plat approval for Prairie East 8th Addition (Resolution No. 79-10) F. 2nd Reading of Ordinance No. 78-54, changing a street name within the City . of Eden Prairie from Cartway or West 184th Avenue to West 180th Avenue MOTION: Osterholt moved, seconded by Pauly, to approve items A, 8, C, E and F, thus eliminating item D. Item D to be added to the end of the agenda for discussion purposes. Motion carried unanimously. VI. REPORTS OF ADVISORY COMMISSIONS No reports. VII. APPOINTMENTS A. Metropolitan League of Municipalities - Appointment of 1 Representative and 4 Alternates MOTION: Osterholt moved, seconded by Edstrom, to appoint Mayor Fenzel as Representative to the Metropolitan League of Municipalities and the remaining four Council members as alternates. Motion carried unanimously. B. Health Officer - Appointment of 1 Health Officer for the year 1979 MOTION: Pauly moved, seconded by Osterholt, to reappoint Dr. Fred Ekrem as Health Officer for 1979,and that a letter of thanks and appreciation be sent to Dr. Ekrem on behalf of the Council. Motion carried unanimously. C. Suburban Rate Authority - Appointment of 1 Representative to the Suburban Rate Authority for 1070. MOTION: Osterholt moved, seconded by Pauly, to reappoint City Engineer Carl Jullie as the Representative to the Suburban Rate Authority for 1979. Motion carried unanimously. D. South Hennepin Human Services Council - Appointment of 2 Representatives for 2 year terms commencing 2/1/79 MOTION: Edstrom moved, seconded by Pauly, to reappoint Mary Hayden and Doug Meyer as representatives to the South Hennepin Human Services Council for 2 year terms commencing 211/79. Motion carried unanimously. E. Assistant Weed Inspector - Appointment of Assistant Weed Inspector for 1979 MOTION: Pauly moved, seconded by Osterholt, to reappoint Wes Dunsmore Assistant Weed Inspector for 1979. Motion carried unanimously. F. WAFTA Board - Appointment of 1 Representative for a 1 year term Fenzel requested this appointment be deferred to the January 16, 1979 Council meeting. MOTION: Osterholt moved, seconded by Edstrom, to continue the appointment to the WAFTA Board to the January 16, 1979 Council meeting. Motion carried unanimously. Council Minutes - 3 - Tues.,January 2, 1979 G. Human Rights & Services Omission - Appointment of 1 member to fill an unexpired term to 2/28/81 H. Development Commission - Appointment of 1 member to fill an unexpired term to 2/28/80 I. Planning Commission - Appointment of 1 member to fill an unexpired term to ' 2/28/80. Penzel requested that items G - I be continued to the February 1979 Council meeting. MOTION: Osterholt moved, seconded by Edstroo6 to continue items G - I to the February 1, 1979 Council meeting. Motion carried unanimously. VIII. ORDINANCES & RESOLUTIONS A. 2nd Reading of Ordinance No. 78-57, reinstating properties in SW, SE and NE quadrants back into Planned Study MOTION: Osterholt moved, seconded by Pauly, to adopt the 2nd Reading of Ordinance No. 78-57, reinstating properties in SW, SE and NE quadrants back into Planned Study. Motion carried unanimously. B. Resolution No. 79-01, authorizing use of facsimile signatures by Public Officials MOTION: Osterholt moved, seconded by Pauly, to adopt Resolution No. 79-01, authorizing use of facsimile signatures by Public Officials. Osterholt, Pauly and PenZel voted 'ayes; EdStrom "abstained°, Metion cArried. " Edstrom explained his reason for abstaining is the fact that he does have a minor amount of stock in Suburban National Bank. Edstrom stated he is, however, in the process of disposing of his holdings. C. Resolution No. 79-02, authorizing the treasurer to invest City of Eden Prairie Funds MOTION: Pauly moved, seconded by Osterholt, to adopt Resolution No. 79-02, authorizing the treasurer to invest City of Eden Prairie Funds. Motion carried unanimously. D. Resolution No. 79-03, designating an official newspaper MOTION: Osterholt moved, seconded by Edstrom, to adopt Resolution No. 79-03, designating Eden Prairie News as the City's official newspaper. Motion carried unanimously. E. Resolution No. 79-04, authorizing City officials -to transact Banking Business MOTION: Osterholt moved, seconded by Pauly, to adopt Resolution No. 79-04, authorizing City officials to transact Banking Business. Motion carried unanimously. 76' '24 Council Minutes - 4 - Tues.,January 2, 1979 F. Resolution No. 79-05, designating depository for the City of Eden Prairie Mayor Penzel referred to communications from Suburban National Bank and Midwest Federal requesting Council consideration to be named the official depository for the City of Eden Prairie. MOTION: Pauly moved, seconded by Osterholt, to adopt Resolution No. 79-05, designating Suburban National Bank as the dispository for the City of Eden Prairie. 'Pauly, Osterholt and Penzel voted "aye", Edstrom "abstained". Motion carried. Edstrom abstained for reasons stated in item VIII. B. Osterholt requested that staff respond at a future meeting what the advantages would be to have a savings and loan as the City's official depository. G. Resolution No. 79-06, desisnating,the official meeting_dates, time and place for the City of Eden Prairie Council members in 1979 MOTION: Edstrom moved, seconded by Osterholt, to adopt Resolution No. 79-06, designating the official meeting dates, time and place for the City of Eden Prairie Council members in 1979. Motion carried unanimously. IX. REPORTS OF OFFICERS, BOARDS & commusms A. -Reports of Council members 1. Mayor Penzel noted he has asked City Manager Ulstad to lock at a disclosure ordinance for Council's consideration at a future meeting. B. Report of City Attorney No report. C. Report of City Manager 1. Renewal of contract for Animal Patfol Services with Metropolitan Animal Patrol Services, Inc. (Name has been changed to: Municipal A Private Service, Inc.) City Manager Ulstad recommended the Council consider approval of extending the contract with Municipal & Private Service, Inc. until such time as Council wishes to change. Ulstad further commented the rates are within the 7% increase. MOTION: Osterholt moved, seconded by Edstrom, to renew the contract with Municipal & Private Service, Inc. for Animal Patrol Services as per contract submitted. Roll Call Vote: Osterholt, Edstrom, Pauly and Penzel voted "aye". Motion carried unanimously. 2. Appointment of City Attorney City Manager Ulstad recommended Council consider the appointment of Roger Pauly as City Attorney for 1979 at the same fees as were proposed for 1978. Edstrom referred to Attorney General's Opinion where the primary conclusion seems to be a question of whether the wife,' as Councilwoman, would receive some Council Minutes - 5 - Tues.,January 2, 1979 2. Appointment of City Attorney (continued) benefit from the services provided, and asked Mr. Pauly to respond to this question. City Attorney Pauly replied he is aware of the qualification provided in the Attorney General's Opinion as to the use of funds derived from the engagement for the support of his spouse and commented he has endeavored to take measures to separate those funds and see that they are not used for those purposes, and would expect to continue to do so in the future. MOTION: Osterholt moved, seconded by Edstrom, to appoint Roger Pauly as City Attorney for 1979 as per the recommendation of City Manager Ulstad. Osterholt, Edstrom & Penzel voted "aye", Pauly "abstained". Motion carried. D. Report of Planning Director I. Approval of Shady Oak Industrial Park Developers Agreement City Manager Ulstad spoke to the Shady Oak Industrial Park developer's agreement and recommended Council consider approval of same. Penzel requested changes in the developer's agreement as follows: Page 1, 2nd line, strike "1978" and insert "1979"; item 2, 2nd line, after "Council" insert "material' and in the same line after 10/2178 add "and reviewed and acted on by the City Council on 12/5/78'. Penzel further requested that an item appear in the agreement whereby Mr. Anderson will install Shady Oak Road on his property as he had previously agreed to at the Council meeting held 12/5/78. City Attorney Pauly pointed out another change to be made on page 4, striking "Richard W. Anderson", and inserting "Richard W. Anderson, Inc.". MOTION: Osterholt moved, seconded by Pauly, to approve the developer's agreement for Shady Oak Industrial Park with suggested changes. Motion carried unanimously. E. Report of Director of Community Services I. Approval of bids for tree removal truck Director of Community Services Lambert spoke to his memo dated 12/28/78, recommending the Council reject the bid and staff will look at other alternatives. MOTION: Osterholt moved, seconded by Edstrom, to reject the bid from Tri- State Tree Service in the amount of $16,000 for a tree removal truck, and if any cashier check or fees have been paid they be returned to the bidder. Motion carried unanimously. 2. Senior Citizen Transportation Program Director of Community Services Lambert spoke to his memo dated 12/22/78 outlining three alternatives. Staff recommended alternative 1, beginning the trial program with existing volunteers and the City's existing station wagon, and to continue to solicit volunteers as the program dewlaps. If the station wagon does not work out, Staff would then request approval to rent a van or station wagon. Council Minutes - 6 - • Tues.,January 2, 1979. 2. Senior Citizen Transportation Program (continued) Osterholt requested that an article be submitted to the local newspaper as to how the program will function. Edstrom commented it would be helpful to have some more data after the program has been tested to see precisely who is using the program, how frequently and what age bracket, etc. General discussion took place regarding the program, i.e., charges, if any, scheduling and volunteers. Lambert stated at this time he does not have the information regarding insurance, but will provide sane before the program is initiated. MOTION: Osterholt moved, seconded by Penzel, to approve the Senior Citizen Transportation Program as recommended by Director of Comnunity Services Lambert as outlined in memo dated 12/22/78, Alternative #1, for a six-month program based initially on volunteers and, if need be, on the basis of hired part-time drivers. Roll Call Vote: Osterholt, Penzel, Edstrom and Pauly voted "aye". Motion carried unanimously. Lambert brought to the Council's attention the donation received from Don Berne in the amount of $500.00 to be used for the future Senior Citizen Center. Council requested a thank-you letter be sent to Mr. Berne. Pauly suggested that a list of items needed for the Senior Citizen Center be publicized in the HAPPENINGS for possible donations. F. Report of City Engineer 1. Staff Additions for Engineering Department City Engineer Jullie spoke to his memo dated December 28, 1978 and answered questions of Council members. MOTION: Osterholt moved, seconded by Edstrom, to approve the additions to the Engineering Staff as per City Engineer's recommendation in memo dated December 28, 1978. Roll Call Vote: Edstrom, Osterholt, Pauly and Penzel voted "aye". Motion carried unanimously. G. Report of Finance Director 1. Payment of Claims Nos. 2622 - 2798 MOTION: Osterholt moved, seconded by Edstrom, to approve Payment of Claims Nos. 2622 - 2798. Roll Call Vote: Osterholt, Edstrom, Pauly and Penzel voted "aye". Motion carried unanimously. X. NEW BUSINESS A. Appointment of a Public Health Sanitarian City Manager Ulstad recommended the appointment of Wally Johnson as the Public Health Sanitarian. Council confirmed the appointment of Wally Johnson as Public Health Sanitarian as requested by City Manager Ulstad. Council Minutes 7 . Tues.elanuary 2, 1979. B. Final Plat approval for Olympic Hills Hiqhland (Resolution No. 79-09) Formerly item V. O. on agenda. Joe Christensen and Andrew Malynnwere present representing t h e p r o p o n e n t s and answered questions of Council members. There ware several questions asked by Council members which c o u l d net be answered by the proponent's representatints, i.e., 1) resolut i o n o f t w o roads on the plat named Clubhouse Road* 2) an overall detaile d WIXOM Pleat . for Olympic Hills, and 3) question of new addition being talked about between the existing, plan and The Preserve development as being Olym p i c H i l l s 8 t h Addition. MOTION: Osterholt moved, seconded by Edstrma * to Continue consideration of the Final Plat for Olympic Hills Highland to the January 1E% 1§19 CP#ncil meeting allowing the proponents time to answer questions raised by Council members. Motion carried unanineuery. XI. ADJOURNMENT MOTION Pauly moved* seconded by Osterholt, to adjourn the Cooncilineeting at 9:40 PM. Motion carried unanimously, 79 CITY OF EDEN PFAIRIE CLERK'S LICENSE APPLICATION LIST January 16, 1979 CONTRACTOR (Multi—family & Comm.) Adolfson & Peterson, Inc. Aerolift, Inc. Antler Construction Co. Condor Corporation Peter Dukinfield Company Hirsch Bros. Inc. John Lambin Construction Co. Loeffel-Engstand Co. Richard Miller Homes, Inc. Naugle ,Leck, Inc. Olson Concrete Co. Prairie Wood, Inc. Pump & Meter Service, Inc. Rutledge Construction Co. Scott Construction Corp. Starkey Labs, Inc. Syring Construction Robert 0. Weslund CONTRACTOR Cl & 2 Family) Marvin H. Anderson Co. Ran Con, Inc. Capp Homes Warren J. Carpenter Centex Homes ' Durst & Gans Eeklund & Swedlund Elfering Const. Co. Eliason Builders, Inc. Fireplace Construction Co. Ferris Construction Co. Gorco Construction Jensen Construction Co. H. A. Kloss & Son, Inc. Landico, Inc. Lyn/Dale Homes, Inc. Martin Homes, Inc. Robert H. Mason, Inc. Charles H. McDonald Co. Miles Garages C. W. Morris Construction Co. O. K. Service Palmer House Builders Meters Construction Co. Revier Construction Shaffer construction CONTRACTOR (1 & 2 Family) can't. Strom & Mayville, Inc. The Sussel Company T & E Construction Teri Homes, Inc. Trompy Homes, Inc. Watsom-Forsberg Co. West Suburban Builders Bachman Homes, Inc. PLUMBING Blaylock Plumbing Co. Bowler CO., Inc. Doody, Inc. Egan & SOW Co. Ford & Sons Plumbing Co. Grendabl Mechanical, Inc. Croth Water & Sewer Raymond E. Haag Plumbing Inc. Hoglund Mechanical Contractors, Inc. Horwitz Mechanical, Inc.' L. J. Katz Corp. Klemm Mechanical Contractor, Ina. Lakeside Plumbing & Heating, Inc. MOGuire Plumbing S Heating Metropolitan Mechanical Contractors Tom Motzko Plumbing & Heating Co. Murphy Plumbing & Heating National Installers Plumbing Project plumbing Richfield Plumbing Co. Royal Plumbing & Heating S &W of Shakopee, Inc. Solberg Plumbing Standard Plumbing & Appliance Co. StoMberg Plumbing Sunrise Plumbing, Inc. Swanson & Schiager Moen Plumbing, Inc. Thompson Plumbing Co. United Water & Sewer Co. Welter & Blaylock, Inc. Wenzel Plumbing & Heating, Inc. West Suburban Plumbing 20 Clerk's License Application List page 2 HEATING & VENTILATING GAS FITTER (con't.) Advanced Heating & Air Conditioning Metropolitan Mechanical Contractors Air Comfort Inc. Mill City Heating & Air Conditioning Allan Heating & Air Conditioning Minneapolis Gas Company B & C Heating Co. MUrph Plumbing & Heating Boulevard Sheet Metal S. Htg. Co. Nielsen Heating & Air Conditioning Bowler Co., Inc. Project Plumbing C. O. Carlson Air Conditioning Royalton Heating & Cooling Co. Centraire, Inc. Seasonal Control Co. Central Air Conditioning & Htg. Geo Sedgwick Heating & Air Cond. Co. Climate Engineering Standard Heating &Air Conditioning H. Conrad Manufacturing, Co. Sabuzban Heating & Air Conditioning Cool-Temp, Inc. Superior Contractors, Inc. Cromstrom' Htg. & Air Cond. Fred Vogt and Co. D. .7.'s Htg. & Air Cond. Ray N. Welter Heating Co. Del Air Conditioning, Inc. Wenzel Plumbing & Heating Inc. Doody, Inc. Yale, Inc. Eden Prairie Heating & Air Cond. Egan & Sons Co. WELL DRILLING Jack Gores & Sons Grendahl Mechanical, Inc. Dependable Well Co. Hoglund Mechanical Contractors, Inc. Leuthner Well Co. Horwitz Mechanical, Inc. Max Renner Well Co. neve Heating & Air Cond. Donald A. Rogers Metropolitan Mechanical Contr. Dom StnA.la's Well Drilling CO., Inc. Mill City Heating & Air Cond. Nielsen Heating & Air Cond. WEER SOFTENER Northwestern Service, Inc. Royal Plumbing & Heating ComMers Soft Water Co. Royalton Heating a Cooling Co. Twin City Softener Service Co., Inc. S & W of Shakopee, Inc. Seasonal Control Co. SCANVENGER Geo. Sedgwick Htg. & Air Cond. Southside Htg. & Air Cond., Inc. Rota-Rooter Standard Heating & Air Cond. Suburban Heating & Air Cond., Inc. FOOD ESTABLISHMENT - Type A Superior Contractors, Inc. Thoen Plumbing, Inc. Thompson Air Conditioning Co. Fred Vogt & Co. Ray N. Welter Heating Co. Yale, Inc. GAS FITTER Advanced Heating & Air Conditioning Bowler Co., Inc. Cromstrom's Heating & Air Cond., Inc. Del Air Conditioning, inc. Doody, Inc. Gas Supply, Inc. Grendahl Mechanical, Inc. Hoglund Mechanical Contractors, Inc. Kleve Heating & Air Cond., Inc. Canteen Co. of Minnesota Carousel Snack Bars of Minnesota General Nutrition Center Genghis Khan of Sapporo Hennepin County Vocational Center Jake's Pizza & Ice Cream MoDonalds McGlynn Bakeries, Inc. Power's Sears, Roebuck & Co. FOOD ESTABLISHMENT - Type A Roberts Drag Clerk's License Application List Page 3 FOOD ESTABLISHMENT - Tyne C Barbaric, Cheese House Lions Tap My Cheese Shop Nutrition World, Inc. Olympic Hills Golf Club Orange Julius Seromation Corporation RETAIL CANDY OUTLET Fannie May Candy Shops Fanny Farmer Candy Shops Morrow's Net Rouse RETAIL CANDY SHOP Pouses Sears, Roebuck and Co. VENDING MACHINES Canteen Company of Minnesota Cedar Hills Golf & Ski Coca Cola Bottling Co. Interstate United Corporation Servomation Corporation SirVend, Inc. These License have been approved by the department bead responsible for the licensed activity. ikt-t4u4v44,-- Rebecca Quernamoen, Deputy Clerk Date: Jan. 10, 1919 from TWA DEVELOPMENT CO. • 15602 Pairwood La. Minnetonka, Mn. 55343 To: City Manager Mr. Roger U1ata4 City of Eden Prairie, Mn. Request : TOM, DEVELOPMENT CO, luotOT requests to go Council, at a public Wring for Zoning and Plat appLuval. of CENDDWIIMKEL • • ROBERTECOLUNS GEORGE C. OF COUNSEL GEORGE A. KURTZ LAINCFPICIt ROBERT F. COLLINS rASSOCIATES • Ptak alma amoluseen January 9 : 1979 amino . prolowitumninnenontammt noeuriNitetwascium mmeaspatic mamma tow putrapszas ' Mir. Chris anger Eden Prairie City Hall 8950 Eden Prairie Road Wan Prairie, Minnesota 5930 Dear Chrise Thank you for your assistance Inet night in Pfesenti0971r.'nelles'tegUoated rezoning and plat of Dorman ttird -Addtuton. ' • 7' • Muse set the TOMOS Of the reitiOu#W 1.104 Plettf o*Int Park Third Addition on for hearing and 'eggrarel :kaftan the Ihisir0 City at its first asemAtroAdeeting,„ If zorInttnez4zAiozo is desired or you feel we shoUld prow* further for the'prOs please contacts*. ocElpac 14500 Valle& View Road Eden Prairie, lifirmescifa 55344 612441000 Honorable Mayor and City Council City of Eden Prairie Eden Prairie City Hall 050 Eden Prairie Road Eden Prairie, MN 55344 Dear Honorable Mayor and City Council: The Eden Prairie Plaowtog Cononission, at their January 8, meeting, app the reemendation to the city Council for attepramisof ieramiAg to :14* for Lots 1 and 17 and R 4.5 for 29 adage faelilY iota in Pike-IWO* Addition. Universal Land Corporation hereby requests that the Oomattl sets hearing date for hearings for Boa rezoning and valisbiary gar.i Sincerely, UNIVERSAt DRP/po ar Universal Land Corporation • iv., v. :jilt 4 • 411711 tbiZI Mayor Wolfgang Penni City Council City of Eden Prairie 4E50 Men Prairie Mad Eden Prairies Mn. $5344 rot ftgroilva ParkariI0 Nati rauhrfjthadt sAindaimon Gentlemen.: We would like to request a poblio hearing for a preliminary PI4kt and resmo 4 ng from rural to caratunity-eenhorvialohytamihrme04ated in the southwest intersection of County EniEL 18 and AMAMI* Parkway. . -• The approval Wald be far ah encice.ed mall -center 4 in corporating • 34,$00 a.f. derry 4s Super valusiMtm000044 :*444Wir4 hardware including approximately :MOO e f. af41004 1400.0470.414' We were given approval by the FlAileiTui CcImIiesiOn ilLttiW.Mf-j911 agreed at that time not to owe to the gouncii••,,prior county study for necessary iMprOveMenta to County kto4 lAb,:4,5040. Lake Parkway. As this study has now been oomP4tadi — proceed as quickly as so:resale. Thank you for your cooperation. Very truly. yours, •cammitionow J RR/iv _ NOME OFFICE: RYAN :BURC4NO. MISAINO, MINNESOTA 5,5718 - tillpTiOtii:Rid/R4.00 118 MINNEAPOLIS OFFICE: 7400 METRO BOULEVARD, EDINA, MINNESOIA 55435.:*.,Tge*.t.04.40/104944 . . City Council TO: THROUGH: FROM;. DATE: SUBJECT: Mayor Perrzel and lifters of Roger Matadi City Manager Carl Mille, Cit,Y ffigineer Jan, I% 1919 Bids for tailip trilet( Bidding specifications have been prepared for the purchase era dianitroick as 4 replacement for the oldest truck ift -Cruf figintenahde.flett,',,ThelgeOa--: call for a 17,500 OVW cat and, chassis:!4"th. our trucks have been purchatedttilittigh tha'2111finebilf COutitY- Calabin - ding systere, however the county ditUrret.specifi:•14.*1 _engines'In last bidding and therefore Our War:bidding necessary. -• tinted ;Ott Of the .triiCk...is dump box, sander and plow frame. 4,ffistiett iunds. isofotied 1979 butigrat to covet this itein.- Copies: of. the 4etell , Sgeta :ere:-On- the Engineering Dept. office:a., " • Recommend council authorization of bids for 4 $271.100:: to be received at 2:00 P.M. On tnAleedaYs CJJ: kh TO: THROUGH: FROM: - DATE: SUBJECT: Mayor Penzel and Members Of the City Council Roger Ulstad, City Manager Carl Jollie s City Engineer January 10, 1979 Bids For Quick Lib* Two Suppliers are now availabl 'ilat (taltiUm oxide) which is used by the City in our water softeiring Pretie#, _Pevigusity, only One supplier was available so the nOraRil 014ding-frocoaure-Weg .necessary; During 1978, we purchased 00, tuna of quick. That at a rate Of- *ban $51 per ton. West year, depending.undli rainfall:, we expect -usi.aikkit,-- 500 tons. The detail specifications for- the lack 1-iMe Wit the Engineering Dept. offitts. .Recomvend that the Council authorize that bi-ds be t4tim At 4:: Wednesday, Feb. 14, 1979, POr the 1919 supply of :quick CAM: kh TO: THROUGH: FROM DATE: SUBJECT: Mayor Penzel and Members of the ei Roger Ulstad, City Manager Carl Juflit, City Engineer January Ii, 1979 Red Rock Rills Third Additith Acceptance of Street and Utility- Teprietementa Houston Engineering Co., Bet tHe'AttiOh00 .4ett— er of'Deteiliflef 1 2 0 certified that the construction of .ituilitigt.-4ptretSir.AndlitililtreellOt:15 . completed for Red Rock tititt Third proved plans and specifications, -114::,E114::'Engineetirig;Stel.t ..hAVOLA:00 -final inspection of these improvementC -and it is -reuseithdttl.'lluttT.Iht,gt Council accept for continuous ownership and maintenanke:AW:streett.4# utilities in the Red Rock MIS Third twicittio0 1.:::subieWtO,C•pitajr...q10.! warranty commencing January it, 019:: • • -- CJJ:kh Attachment t.ssvhh,5 Efteiseertes $urveying ONTO/ 71161NEERI 13009,O3ansond Path West Apple V*11 i ota 5T24 121423.299$ rely. (10 10111.114 bicenbar 12, 1978 -. Wt. Carl Jullie, City Engineer City of Eden Prairie 8950 Eden Prairie Road Eden Prairie, MN 55344 Subject: RED ROCK RIZLS ADDiTIUN Street and Utility Improrementa Dear Carl: All the embiect improves:MO • Oielevel#opgiedirt :eo plans and specificationS rel4tfttlostat*OblArImErebaokloor and are on file with your offftat,. Uoustoolasteperfalt1WM044,e,F44:... time field inspection during utility insfillaiLiOn .:MMYRDPeriiiited,e211 testing of completed work in anoordanOL40,4:e.-aitetill-Ca.!10*'-; ' • • . . A final inspection of the completed Rt4Ject wAs'4044-cted Ar Naveobss- 30, 1978, by Messrs. Gene Schemes if your afise....sea 1.04,0441 de 3 0411-• , The contractors two (2) Year warranty as 0404010110i440120431P* effect and backed by a bond IA the amount of'474,47545-ehAe4 Pi* with your office. The Water and Sewer Service Data (tie sheets)-and the AS NAT FLANS. in your office. The project is hereby recommended for acceptance by the ity of Woo Prairie for public ownership and maintenance. . cc: File cc: Brown & Cris, Inc. Jal/he TO: THROUGH: . FROM: DATE: SUBJECT: Mayor Pend oti;Mteithers' Roger Ulstad Carl hi titysinvitto January 111 197g. . Mitchell Relghtilhl MOO* Auceetanai of .taftitary Sewelotilatermaift . . . Minnesota Valley Surveyors and Engineers Corp., per theslittathit'l Sept. 14, 1978, has certified that the .titittrittitilt . the stwit and watemain In the MOO'S ltitcher thfielitS Third Additilifrf MC: Meted in accordance with City. OptOtref rids :01i174Ot1f1ClitiOti .:i.,,11*,..-. City Engineering staff It is remittent* that the tv .feiicoocilAtte-oVotOikfssivsOtne'trt and maintenance the eauftary .siretWieteraaiiAkfffCtilitCiil Reign Addition, stikiect to a .'tiAr yot:wOriqty::tor.iic.efftltiVOcToott;:.q5.0979;-40 , further authorizing the reduction or thit,tettef . Of 4..fttift . dated Mar 1978, issued by Northwestern naOk.:504*(aWfOr*44:1 10qA9419i1 CaJ:kh Attachment MINNESOTA VALLEY SURVEYORS & ENGINEERS CORP. Inas 12Th AVENUE $011111 BURNSTILLE, MINNESOTA smy P 590.7750 September 14, 1978 Carl Jullie City Engineer City of Eden Prairie 8950 Eden Prairie Road Eden Prairie, Minnesota Res Hipp's. Mitchell Height* )rd Addi, Carl, We have completed field inspections on the sanitary sewer and watermain construction for the above projeCt. Construction performed the installation work and reeentl_ finalized construction. This contractor Used aeapptable - materials and methods for completion Of the work as shown on the Utility Plans and followed the.regOred starisler42: , as defined in the City of Eden Prairie aociptedapanifina#01$1. Further, this contractor was very cooperative an4 e8.Sir -*0 work with. On September 1, 1978 I inspected the Sanitary e$ and witnessed the air testing. Therefore. I would taco= acceptance by the City of Eden Prairie. If you have any further questions, please contact me. • Thank you. (L) DOUG GORUESKY • 9A MEMO TO: FROM: THROUGH: DATE: . RE: Mayor.and City Council Chris Enger, Director of Planning Roger Ulstad, City Manager January 12, 1979 Hustad Development Bluffs West 2n4 Addition City staff has been working with Hustads in an attempt to come to a common position relating to Bluffs 2nd addition and the general development to occur on the balance of B. F.I. property contemplated by Hustads. To briefly recap the history of review on this proposal: Hustadt original proposal contained about 198 lots. This proposal was fairly consistent with ordinance requirements with the exception that a variance was being requested on the lot widths. The Planning Commission and Parks, Recrea- tion and Natural Resources Commission reviewed this proposal and recommended approval subject to several items of concern. One of the major items was that the proposal included about thirteen lots platted on the north side of River- view Road. The staff and commissions felt that based upon the soil conserva- tion report, advising against development on such steep slopes, platting of these lots on the lower side of the river bluffs was unacceptable. The staff recommendation was to eliminate the lower lots and to add the area to the upper lots, thus creating large estate lots with building no Tower than the 860 contour. Hustads presented the original plan to the Council showing the lower its as one 12acre outlot to be considered at some later time.. The Council, however, was very concerned about the disposition of the 12 acre steep slope outlet, the absence of mini-parks, and the provision of a neighborhood park. Hustads returned with a preliminary plat showing 212 lots with lot size and setback variance requests, two totlots, agreement to pay the cash park fee and 2 units per acre gross density (using the 12 acre steep slope as a density transfer and agreeing to dedicate it to the City. At this point negotiations began with B.F.!. for acquisition of the neighbor- hood park site. There was approximately 31. acres in the area B.F.I. agreed to sell at $4,000/acre, however, at that time the staff felt that only 20 acres was necessary. Since B.F.I. was not willing to sell only 20 acres Hustad agreed to purchase the remaining 11 acres from B.F.I. to bring about the sale. After review of the development costs, the Council felt higher land might be more desirable. Mr. Lambert picked 12 acres further south which included about 7 of the original 20 acres and S different acres. B.F.I. quoted $10,000 per acre. The Council then requested an appraisal be done. The appraisal was $5,500/acre for the area quoted by B.F.I. at $10,000. Memo- Rusted Development Bluffs West 2h0 Add. Page 2 The Council also requested a general overall plan for development Hustad had in mind for the area. Since Husteds hasimentioned that they may pe contemplating some multiple north of Bluffs 2n4 addition and the 11 guide plan and the proposed update both *haw low density development for . this entire area the staff approtanwillaStedS with the idea of tranSferrire the 2 unit/acre density from the 31 acre lower area to the anticipate4ju ture additions. Under this plan, the doveloper'coad be allowed densities on the balance of the property while conveying the open space to the City in consideration Of this. The cash park fee/unit and tot lot areas were to stay the same. The staff tOggested ,sitee the City Council Seemed • to voice approval of the 212 lot Milt Weft 2nd plat itSeIf,.•hat this should not be changed. What tWstads have submitted to you now is an overall( plan which. encompasses 270 gross acres and would anticipate dpprortnately 807 units, 'bring thel den- sity overall to 2.99 unftifacre.. The Bluffs. West 2nd Additiii*WifiCressed *mettle preetus plan thCV00 had reviewed of 212 unit lett,44.441*.-02.20 uette14 04N ----H -'--"--- .We understand from Hustads thatahout 30% of the lots would taluire a •:44 ,04 frontage, 30% ea foot frontage end 40% 90 foot frontage. fret information, received you will note that 160 , lottare.shown less thenTIACTut4k '44 or 65% of the subdivision. This contrasts with Bluffs West 1st-40k:wet ap prove _ _ with approximately 15% under $12 4500. RECOMMENDATIONS The staff feels that the overall concept of providing open lead thm*ha density transfer is rood and the mix of housing -type:OnloppOrttinitY iprP- vides is desirable, however we recomend that the-0000$ ntiliiiditth Bluffs West 2nd Addition according to the 212 lot proposal previously soft by the Council, and that the 563 anticipated units in the balance of the project be revised down to obtain a gross density more consistent with. the City's existing standard of 2 units/acre. MEMO TO: Mayor and City Council FROM: Chris Enger, Director of Planning THROUGH: Roger Ulstad, City Manager 'DATE: January 12, 1979 RE: 1979 Community Development Block Grant Included: Planning Commission Minutes of December 18, 1978; Parks, Recreation and Natural Resources Commission Minutes of December 4, 1978; letter of December 7, 1978 to Eden Prairie Organizations; memo of November 29, 1978 to city Manager regarding 1979 Community Development Block Grant and Rules and Regulations:dasic eligible Activitie As the Council will recall from the November 29, 1978 memo we requested the Council consider a preliminary 1 and 3 year program of goals and Implementation projects for submission to the Planning Area Citizens Advisory Committee prior to • final adoption of a formal application to be submitted to Hennepin County. Mr. Don Bearnie is this community's representative on that board. The purpose of the P.A.C.A.C. is to review the preliminary community C.D.B.G. program and offer any comments they may have regarding goals or individual projects elegibility for funding. Once we obtain this input we will again return to the Council for approval of the application to Hennepin County. According to the Metropolitan Council, Eden Prairie has met its low and moderate income family need until 1981. However, we have a need for approximately 160 low and moderate income elderly units through 1980. Our Housing assistance plan would be for a goal of providing approximately.160 elderly low and moderate income units through 1930 and 133 family units In. 1981. Since Eden Prairie is only eligible for $65,000 per year until after the 1980 census, wemay look toward several methods of accomplishing these housing goals. These methods may take the form of any of the following possibilities. 1) Ranking the grant money per year and utilizing it to the most efficient extent to entice private construction of "market rate" units which are eligible for Federal "Section 8" rental subsidy to a builder as an incentive to providing these type of units. 2) Tax increment financing of an elderly project to offset the initial costs of land preparation and utilities. 3) MIDB's to create a more favorable financing picture. 4) City acquisition of desirable tax forfeited land for develop- ment purposes for an elderly project. Memo-1979 Community Development Block Grant Page 3 3. A three year plan including: a) Banking of grant money toward development incentives. b) Investigation of alternate energy sources for low and moderate income. c) Investigate transportation systems. d) Complete Preserve Park. . e) Investigate joint •andicappedjcaneunity facilities at Camp Indian Chief. 4. A One year action plan including: a) 7410.000 remodeling of Senior tenter at Staring Lake. b) $117.000 completion of Preserve park site. c) $45.000-$48.000 grant money banking toward development incentives. g q 4 MINUTES . EDEN PRAIRIE PLANNING COMMISSION MONDAY, DECEMBER 18, 1978 ffININI. CITY HALL COMMISSION MEMBERS PRESENT: OMISSION MEMBERS ABSENT: STAFF PRESENT: Vice-Chairman Richard Lynch, Liz Retteeath, Matthew Levitt, William Dearman and Oke Martinson Paul Redpath and Rod Sundstrom Chris Enger, Director of Planning Donna Stanley, Planning Secretary I. APPROVAL OF AGENDA MOTION: Levitt moved to approve Agenda as published, seconded by Dearman. Motion carried unanimously. II. MINUTES OF NOVEMBER 27, 1978 AND DECEMBER 11, 197a . MOTION: Dearman moved to continue the approval of the minutes of November 27, 1978 and. December Il, 1978 to the meeting of January 8, 1978. Retterath seconded, motion carried unanimously. III. MEMBERS REPORTS A. Chairman - None B. Others - None IV. REPORTS AND RECOMMENDATIONS A. Community Block Grant Development Funds City Planner Chris Enger summarized the purpose of the Urban Hennepin County Connwnity Development Block Grant Program, which is to provide decent housing, a suitable living environ- ment and increased economic opportunities for all residents with particular attention given to the needs of low and moderate in- come elderly and handicapped persons. He explained that this year the City has to look three years ahead and try to identify what needs we have in this area, or prepare a 'needs statement"; develop a three plan to meet those needs on a general basis; and develop a one year action plan to determine which projectswill be funded by the $65,000, which is Eden Prairie's share for this year. In response to questions on the options, the Planner explained the "land banking" process, which could te used in a.situatinn such as acquiring property for low and moderate income elderly housing. C711" .approved . Planning Commission Minutes 2 December 18, 1978 Bearman inquired whether research was an option, and suggested use of the funds to finance research through the Vocational Technical: Institute for solar energy units for the .Briarhill Apartments. Ms. Jullie Bye, Office of Planning and Development, Hennepin County, explained that the direction of Congress was that funds go directly into building, and into administration or planning. Dearman also suggested the development of a mini-bus to be used by the elderly, since they have no method of transportation within the City. Mr. Martinson arrived at 8:00 PR. There was discussion on the most appropriate areas for elderly housing, and there was general agreement that the Major Center Area or village center area were the best places, for the elderly housing, because of the proximity to the services they will need. Accessibility of public buildings in Eden Prairie to the handicapped was briefly discussed. Bearman inquired about the time frame for the program. The Planner explained that tonight's meeting was the first public hearing for 4.4.e purpose of gathering information, and that the City Council: would hold the final public hearing on January 16, 1979 after input from the communities and the Planning Areas Citizens Advisory Committee. MOTION: Bearman moved to close the Public Hearing on the Community Block Grant Development Funds, seconded by Levitt. Motion carried unani- Sously. MOTION: Beaman moved to adopt a general housing plan for 160 elderly units within the next 3 years and to consider the following goals: 11 land banking 2) alternative energy sources for low and moderate income elderly 3) inves- tigate joint facilities at Camp Indian Chief 4) continue to investigate different transportation systems; and to adopt the one year action plan as follows: 1) two park projects '2) remodel Senior Center at Staring Lake 3) investigate alternate energy source for low and moderate income housing. Levitt seconded. The motion carried unanimously. Minutes - Planning Commission . =her 18, 19113 DISCUSSION: A Drug Abuse Center was discussed, with senor agre that the funding would not be a4equate. The combination of facilities at Camp Indian Chief for mentally retarded teen-agers was also discussed briefly. Transportation wag further discussed., and it was re4uated that the possibility of buying a "park and ride" van or a shelter be investigated. MOTION: Bearman moved to call the question, seconded by Levitt. Motion carried unanimously. VOTE ON MOTION: Motion carried 4-0-1, with Martinson abstaining. APPROVED MINUTES EDEN PRAIRIE PARKS, RECREATION AND NATURAL RESOURCES COMMISSION MONDAY, DECEMBER 4, 1978 ' COMMISSION MEMBERS PRESENT: COMMISSION MEMBERS ABSENT: COMMISSION STAFF PRESENT: OTHERS PRESENT: 7:30 P.M., CITY HALL Richard Anderson, Chairperson; David Anderson, Steve Fl field, William Garens, Robert Johnson, Robert Kruell, George Tangen None Robert Lambert, Director of Community Services Richard Dahl, Eden Prairie News; • Al Dytier, Eden Prairie Sun O. Community Development Block Grant Protects - 1979 The only project being recommended at this time. Is the rehabilitation of the proposed senior citizen center at Staring Lake. Lambert asked for input and recomendations by the commission. R. Anderson asked if it would be possible for the commission to view the property, making it easier to offer recommendations. 'Lambert encouraged this and described briefly some of the possibilities. MOTION: Kruell moved that the commission recommend the use of Community Development Block Grant Funds for the rehabilitation of the proposed senior citizen center at Staring Lake Park. Motion was seconded by Oarens. DISCUSSION: Dave Anderson questioned the status of a previous Community Development Block Grant received by Eden Prairie to develop parks in the Preserve and Edenvale. It appeared that the Preserve park was complete, but not Edenvale's. Lambert explained that there is a .problemwitb title to the property at Edenvale, due to delinquent taxes. It will go on the tax delinquent list next May, at which time the city can obtain title. Scheduled for development then are skating rinks, warming house, ballfield, etc. The money is being held until then. Lambert pointed out that these kind of projects are no longer being funded through this program. ' VOTE: Motion Passed unanimously. RP. edam prigag CITY OFFICES / 1950 EDEN PRAIRIE ROAD / EDEN PRAIRIE, MINNESOTA 55344/ TELEPHONE (512)11414262 December 7, 1978 Dear Eden Prairie Organization: . Eden Prairie has joined with 40 other Hennepin County communities and Hennepin County to develop and submit an application for federal assistance as an Urban County, pursuhnt to the Housing and Community Development Act. The Urban Hennepin County Community Development Block Grant Program has been developed to provide decent housing, a suitable living enviroment and increased economic opportunities for all residents with pafticular attention given to the needs of low and moderate income persons. As an urban county participant, our city has been informed that we should use $65,000 as a planning target in developing our portion of the Urban Hennepin County Community Development Program. This planning target amount was determined by applying HUD's (Housing and Urban Development) national distribution formula to Urban Hennepin County and its participating communities. The City of Eden Prairie is requesting your participation in determining what the housing assistance and community development needs of our City are. In making these determinations, it is necessary to work within the program guidelines established by HUD. Copies of HUD's program regulations are available at the , City Hall or may be obtained from Hennepin County by calling t 348-6418. It is our intention to involve the residents as fully as possible in the development of this year's application. Your participation would be appreciatedat anyone or more of the following meetings: Human Rights Commission Dec. 11, 1978 7:30PM City Hall Planning Commission Dec. 18, 1978 7:00PM City Hall Parks, Recreation & Natural Resources Corn. City Council (public hearing) Members of the City and Hennepin County Staffs are available to meet with any group of interested citizens which would like additional Information on the Urban Hennepin County Community Development Block Grant Program. Sincerely, Dec. 18, 1978 . 7:30WM Jan. 16, 1979 7:30PM City Hall City Hail ris Enger, Planning Director Ridgewood Condominium Rebut McCollum 4145 5944 Neill' Lake Read Eden Prairie, Mn. 55344 Mitchell Heights towohou Dominick Lendine 8220 TaMareC Trail, Eden Prairie, Mn, 55344 Hill Creek John Hutchinson 9734 Mill Creek Drive Eden Prairie, Mn. 55344 EP Homeowner Assdciaticms mailed CD8G Information. on Dec, 6, 1978 Hidden Ponds I Gliscjinski 7152 Ticonderoga Trail Eden Prairie, Mn. 55344 Creekside Dennis Dirlam 15241 Creekwood Court Eden Prairie, Mn. 55344 Basswoods Townhouses Dave. '8781 Si:::;ood Road Eden Prairie, Mn. 55344 Atherton Townhouses Ted Johnson 8351 Mitchell Road Eden Prairie, Mn. 55344 St. Johns Wood Steve Jacobs 6920 St.Johns Drive Eden Prairie, Mn. 55344 Don Peterson Edenvale MOA 14500 Valley View Road Eden Prairie, Mn. 55344 Fairway Woods Don Anderson 14312 Fairway Woods Drive Eden Prairie, Mn. 55344 Creek Knolls Dean Luke 10450. White Tail Crossing: Eden Prairie, Mn. 55344 Anderson Lakes Property Own. Bud kik too, Ensign Read. Bloomington., Mn. Eden Hills Association Duncan lailfiew • 15807 Cedar.Ridge.Rnad Eden Prairie, Mn.• 55344 Duck Lake Estates Joan Varner 16709 llaywood Lane Eden Prairie, Mn. 55344 Lake Eden No. David Nett ' BUS Darnel Road Eden Prairie, Mn. 4 Cedar Point Townhouses Dave Speed 6913 Edenvale Blvd Eden Prairie, Mn. 55344 Golf View Eileen Elizer 14324 Wedgeway Court Eden Prairie, Mn. 55344 Sterling Field Asso.InC, John Pratt 6911 Boyd Ave Eden Prairie, Mn. 55344 Preserve MOA John Nelson 9051 High Point Circle Eden Prairie, Mn. 55344 Trails Townhouses Charles Grath 9140 Neil Lake Road Eden Prairie, Mn. 55344 •"*. S Or. Gary Peterson . Innunniel Lutheran 1015 Luther Way Eden Prairie, Mn. EP Preskyterian 11609 Leona. Road Eden Prairie, Mn. 55344 EP Methodist Church 15060 Scenic Heights Road Eden Prairie, Mn,. 65344 4 St Andrew Lutheran 13708 Molly Road Eden Prairie, Mn. 55344 .EP Organizations mailed CDSO material Dqt. 6, 1978 EP Lions Terry Fields 7141 Prairie View Drive Eden Prairie, Mn. 55344 Mrs. Jaycees Judie Westby 7107 Park View Lane Eden Prairie, Mn. 55344 CHURCHES EP Athletic Association Dennis Marble 17300 Padon Drive Eden Prairie, Mn. 55344 EP Community Club Sally Brown 10080 Bennett Place Eden Prairie, Mn. 55344 EP Historical Society Carol Hone . fool Eden Prairie Road Eden Prairie, Mn. 55344 League of Women Voters Spike Sarles 9480 Lakeland Terrace Eden Prairie, Mn. 55344 EP Rotary David Speed 6913 Edenvale Blvd Eden Prairie, Mn. 55344 Lioness Sandy Tebelius 7174 Topview Road Eden Prairie, Mn. 55344 EP Jaycees Tom McIntosh 8323 Hiawatha Avenue fden Prairie, Mn. 55344 EP Chamber Betty McNulty 8455 Flying Cloud Drive Eden Prairie, Mn. 55344 Dick Dahl EP Mews 15716 West 78th Street Eden Prairie, Mn. 55344 Dr. Fallon EP Schools 8025 School Road Eden Prairie, Mn. 55344 EP Racqueteers Bruce Brill 7041 Willow Creek Drive Eden Prairie, Mn. 55344 Mrs. L. Marks EP Pioneers 17924 Duck Lake Road Eden Prairie, Mn, 55344 EP Womens Club Mrs. Fred Holasek 7160 Willow Creek Road Eden Prairie, Mn. 55344 king of Glory • 17860 Duck Lake Road Eden Prairie, Mn. $5344 New Testament Church 12901 Valley View Road Eden Prairie,•Mn. 55344 Prairie Lutheran Preserve Center Eden Prairie, Ma. 55344 &mini mailed.40B8Oaterie Dec.54 1978 Charlton Mouse ' Mr. & Mrs. Martinez 8751 Preserve Blvd Eden Prairie, •in, 55344 Windslooe Manager 11345 Westwind Drive Eden Prairie, Mn. 55344 •.Denalti Berne, MCC .7132 frank14eCtrol9 • • 100•144011o,1%., 55f Wesel/Mouse & Mrs. Rollettad 8771 Preserve Ilvd Eden Prairte,Mrk 55344 Draft hill Manager 7025 Woodland Drive Eden Prairie, Mn, 65344 frogr.flOg* M. a_mrs..-morfotil • 8781 Eden •PitirtiemiL 0344 APPENDIX A • RULES AND REGULATIONS 8441 The interim strategy statement shall Include: (I) a brief description of the activity: (ii) • brief description of the needs and conditions the activity Is designed to address; and UM a brief description of how the activity will impact upon the needs and conditions which it is designed to address. (2) interim NSA designation. For those applications submitted during fiscal year 1918, applicants may deals- _ nate interim PISA's for activities sub- ject to this requirement. An interim NSA is selected by the applicant and designated In the Community Devel- opment Program. In determining the size of the NSA. the applicant shall take Into account the severity of Its problems and the amount of resources to be Provided to address those prob- lems. For each area designated as an NSA. the applicant shall include a brief narrative description of Its plan for stab Wring and upgrading the area which: (I) provides for a combination of Physical .improvements. necessary public facilities and services, private investment and citizen self-help acid- ties appropriate to the needs of the area: and (ii) coordinates public and private in- vestment efforts. ji 570.201 Ba-us eligible activities. Grant assistance may oe Used for the following activities: (a) Acquisition. Acquistion in whole or in part by a public agency, by pur- chase. lease, donation or otherwise, of real property (including air rights. water rights. rightsof -way. easements, and other interests therein) which to Cl) Blighted, deteriorated, deterio- rating. undeveloped or inappropriately developed from the standpoint of sound community development and growth, as determined by the recipient pursuant to State and local laws: (2) Appropriate for rehabilitation or conservation activities; (3) Appropriate for the preservation or restoration of historic sites, the beautification of urban land, the con- servation of open spaces, natural re- sources and scenic areas, the provision of recreational opportunities or the guidance of urban development: (4) To be used for the provision of public works, facilities and improve- ments eligible for assistance under this subpart: or (6) To be used for other public Pur- poses, including the conversion of land to other uses where necessary or ap- propriate to the community develop- ment program. Examples include an applicant purchasing land to be used for the development Of housing for Ice- and moderate-income persons. and an applicant which is a central -city of a metropolitan area using block grant funds to purchase houses in a non-Impacted suburban jurisdiction in order to provide a wider choice of housing opportunities for central cite lower-income residents. (b) Disposition. Disposition, through sale, lease, donation, or otherwise, of any real property acquired with block grant funds or its retention for Public purposes, provided that the proceeds from any such disposition shall be pro- gram income subject to the require- menta set forth in 1510.506, Further Information regarding dispbeition Is set forth In 8510.813. (c) Public • facilities and Improve- menus. Acquisition, construction, re- construction, rehabilitation, or bistal- bitten of certain publicly owned facili- ties and improvements, This May in- clude the execution of architectural design features. and similar treat- ments intended to enhance the esthet- ic quality of facilities and meats receiving block grant s such as decorative pavements, railings, sculpture, pools of water and tom- tains and other works of art. Public facilities and Improvements eligible for assistance under this parse:mph in- clude: (1) Senior centers. but excluding any facility whose primary function is to Provide residential accommodations or care on a 24-hour day basis (such as a group home). (2) PDXIC.T, playgrounds and other rep. reational facilities which are designed for participation, but not spectator fa- cilities such as stadiums. (3) Centers for the handicapped. The term "center for the handicapped" means any single or multipurpose fa- cility which seeks to assist persons with physical, mental, developmental and/or emotional Impairments to become more functional members of the community by providing Programs or services which may include, but are not limited to, recreation, education, health care, social development. Lade- pendent livine, phyalcsil rehabilitation and vocational rehabilitation: but ex- chiding any facility whose primary function is to provide residential care on a 24-hour a day basis (such as a group home or halfway house). For example. • sheltered workshop would be a single Purpose center for the handicapped, and a facility Providing several services for the handicapped would be a multipurpose center for the handicapped, teun of which are eligible for assistance. (4) Neighborhood facilities 8Iuch fa- clinks may be of either a single pur- pose or multipurpose nature and be designed to provide health, social, rec- reational or stiniliar community ser- vices primarily for residents of the neighborhood service area which is either: (I) A geographic location within the jurisdiction of a unit of general local government (but not the entire juris- diction) designated in comprehensive plans. ordinances -or other local doe's- ments as a neighborhood or. In a new community as defined le *570.403(a), a neighborhood, village or similar geo- graphical designation: or (II) An entire unit of general local government or a new community as defined in 570.403(a) which is under 28.000 population, with the exception of a facility which is designed solely as a communityvAde facility In a new community with a currently Projected population in excess of 25.000. (5) Solid waste disposal fireitiffes, which are defined as those physical Pute of solid waste management sea* tens commencing at and including the ' site or sites at which publicly or pri- vately owned collection vehicles charge municipal solid wastes. through the point of ultimate disposal including necessary site Improvements and cowering systems, including ap- propriate fixed and movable equip- ment Including vehicular containers used after the first stage of disposal at transfer stations, but not Including the final collections, (I) Such belittle* or equipment must be located in or serve areas where other activities in- eluded in the Community Develop'. meat Program are being carried out, such u a NSA. lib Equipment and ap- purtenances used in the initial collec- tion of solid waste are not troiliA•A among those solid waste disposal fa- cilities eligible for assistance under this Part. (6) Fire' protection facilities and equipment Such facilities and equip- meat must be located in or serve areas where other activities inebided in the Community Development Program are being carried out, such as a NSA. (1) Fire protection facilities are de- I fined as the land and necessary Ins' , provements thereto which are neces- sary for properlY housing and storing fire protection equipment and person- ' nel by a fire protection ormurdzstion, but not Including fire fighting schools . and their appurtenances. (ii) Fire protection equipment is de- fined as the appropriate eaulPmen 8 and apparatus which a fire protection organization requires for carrying out a program for protecting property and maintainizig the safety and welfare of the public. Including emergency mein- cal aid, from the dangers of fire. (4) Parking facilities. Such facilities must be located in or serve areas where other activities included in the Community Develetament Pharr= are being carried out, such as a NSA. (8) Public utilities, ether than water and sewer. which Irw'llutr (1) Facilities necessary for distribu- tion of the utility (but not production or generation, such as electrical gen- eration Plants); (ii) Buildings and inuarevemente that are an Integral part of the utility and MEM ageism vOL sa, NO. 41—W111141511AY, MAR= I. 1171 9VA-# 8442 RULES AND REGULATIONS are of such a nature that the • utility will not function without-them: and (111) The placing underground of ex- isting or new distribution facilities. Further Information regarding the ell. gibility of assistance to Privately owned utilities is set forth In f 570.201(1). (2) Street improvements. Streets, street lights, traffic signals, signs. street furniture, trees, bridges. cul- verts causeways, curbs, gutters, sidewalks, and other normal appurte- nances to streets and structures facili- tating the passage on, or usage of. streets, but excluding expressways and other limited access ways and their ap- purtenances. (10) Water and sewer facilities, in-cluding storm, sewers, except for sewage treatment works and intercep- tor sewers which are described as in 4570.206(a)(6). The term "storm sewers" means sewers or other con- duits. open or closed, or their appurte- nances which collect, transport and dispose of storm waters, surface water. street wash, other wash and ground mates or drainage into an existing water course, but excluding domestic waste water and commercial and in- dustrial wastes. (11) Foundations and plot/ones for air rights sites. (12) Pedestrian malls and watt-ways (13) Flood and drainage facilities, in cases where assistance for such facili- ties has been determined to be un- available under inner Federal laws or programs pursuant to the provisions of 570.807. The term "flood and drainage facilities" means those un- dertakings designed to influence or affect the flow in & natural water course (such as a river, stream, lake, estuary. bay, ocean or intermittent stream) and excludes storm sewers. (14) Other public facilities and OA-provements, not listed in this para- graph, except those described In If 570.207 (a)(1) and (f), which are nec- essary and appropriate to the Imple- mentation of the applicant's grategy for neighborhood revitalization or housing. 0) The applicant shall provide HUD with a description of the proposed fa- cility or improvement and the rela- tionship to applicant's strategy for neighborhood revitalizatlon or hous- ing. (0) Among the factors HUD will take Into account In authorizing assistance under this paragraph are the amount of benefit to low- and moderate- Income persons, the degree of Impact on the identified needs of the appli- cant, and the availability of other Fed- eral funds for the activity. (d) Clearance activities. Clearmce, demolition and removal of buildings and improvements, including move- ment of structures to other sites. De- molition of HUD assisted housing units may be undertaken only with the prior approval of HUD. to) Public services. Provision of public services (including labor, sup- plies and materials) which are directed toward improving ' the community's public services and facilities, including those concerned with employment, crime prevention. child care, health, drug abuse, education, welfare or tee-. reationsil needs, and which are direct. ed toward coordinating Public and Pri-vate development programs. Such ser-vices may be provided by State or local governments. quasi -Ponik• Private or nonprofit agencies. Including, but not limited to. 1100-approve4 counseling agencies, selected by the applicant for funds provided under this Part. In order to be eligible for block grant as- sistance, public services must meet each of the following criteria: (1) Public services are to be Provided for residents of neighborhood strata'sy areas in which block grant assisted Physical development activities are being carried out in a concentrated manner. Such Public services may be supported with block grant funds during the period which block grant assisted physical development activi- ties are being carried out. in a conceit- trated manner, and may be continued for no more than three years after the completion of such physical develop- merit activities. For the purpose of this paragraph: (1) Physical development activities Include only those described in 4510,201 (a) through (4). (r) through (hi, and (k). and 4570.202 through 4-570.203. (ii) The phrase "concentrated manner" shall mean that the block grant assisted Physical development activities are being carried out within an area in a coordinated manner to serve a common objective or purpose pursuant to a locally developed plan or strategy. (2) Such services must be directed toward meeting the needs of residents of such areas. Block grant assistance may incidentally be provided for such services only for those who are not residents of areas of concentrated physical development. (3) A public service must be either (I) a new service, or (II) a quantifiable in- crease in the level of a service above that which haa been provided by or in behalf of the applicant from local rev- enue sources or State funds received by the applimot in the twelve Wens dar months prior to submission of the block grant Ikrtplimf Inn (An exception to this requirement with regard to state-funded services may be made U HUD determines that the decrease In the level of a service was the result of events not within the control of the applicant.) (4) Federal assistance in providing or securing such public services must have been applied for and denied or not made available pursuant to the provisions of I 570.607. (5) Public services must be deter- mined by the applicant to be necesr or appropriate to support tne Phys. development activities to be carried out within Neighborhood Strategy Areas. For example. the Provision of lob training for area residents working on neighborhood revitalization pro- jects would be appropriate to support & concentration of block grant assisted physical development activities being carried out in the area. (I) The specific determination of support for each Pro- pmed public service is not required to be included in the application, but the applicant must briefly describe the re- lationship of the public service to the physical development activities. (ID HUD will accept the applicant's deter- mination that a public service is neces- sary and appropriate to support the 13113ateal development activities unless there Is substantial evidence to the contrary. in which case additional In- formation or assurances may be re- quested from the aindicarft Odd' to a determination of eligibility: (f) interim assistance. Interim assis- tance to alleviate harmful conditions where immediate public action is de- termined by the applicant to be neces- (1) The following activities may be undertaken as a prelude to more com- prehensiga-treatmast- in-eirees-wissos activities included in the Commur' Development Program are to be t, ried out, such as an NSA. in order to hold the area from further deteriora- tion during the interim period: (I) The repairing of streets, sidewalks, parks, plaYgrounds, publicly owned utilities and public bitildinvn an The improvement Of private properties to the extent necessary to eliminate immediate dangers to public health, safety or welfare: (ill) The establishment of temporary public playgrounds on vacant land: and (1v) The execution of special gar-bage, trash, and debris removal, in- eluding neighborhood clean up cam- paigns, but not the regular curbside collection of garbage or trash in an &res. (2) The following activities may be undertaken to the extent necessary to alleviate emergency conditions threat- ening the public health and safety in areas where the chief executive officer of the applicant determines that an Imminent threat to the public health and safety exists requiring immmiate resolution of emergency conditions: (I) the improvement of private Praia. ertieg (in the repair of streets, sidewalks, utilities, and other Public facilities and improvement.% and (111) the removal of trash and de unsafe structures, clearance of street; mom ittoorte. VOL 43, NO. 41—WI0NISOM., AUDI 1. 157111 RULES AND REGULATIONS 8443 Including snow removal, and other similar activities. The chief executive officer, or his designee, shall notify the appropriate HUD Area Office within seven days of determining that a situation exists which poses an Imminent threat to the public health and safety and that block grant funds will be used to alle- viate the emergency conditions. (i) Payment of the non-Federal sham required in connection with a Federal grant-in-aid program undertaken as part of the block grant activities. Pro- vided. That such payment shall be limited to activities otherwise eligible under this subpart. (h) Urban renewal completion. Pay- ment of the cost of completing an urban renewal project funded under Title I of the Housing Act of 1949 as amended. Further information regard- ing the eligibility of such costa is set forth in .570.801. (0 Relocation. Relocation payments and assistance for individuals, families, businesses, nonprofit organizations, and farm operations displaced by ac- tivities assisted under this Part. Fur. ther information regarding the eligi- bility of relocation costs is set forth In 1570.602. , (j) Loss of rental income. Payments to housing owners for losses of rental Income incurred In 'holding for tempo- rary periods housing units to be uti. heed for the relocation of individuals and families r"placed by program ac- tivities assisted under this Part. (k) Removal of architectural bar. nem. Special projects directed to the removal of material and architectural barriers which restrict the mobility and accessibility of elderly or handi- capped persons to publicly owned and privately owned buildings, facilities, and improvements. Further informa- tion regarding the removal of architec- tural barriers is available In publica- tion ANSI A117.1-1981 (R. 1971) of the American National Standards Insti- tute, Inc. • (I) Privately owned utilities. Acquisi- tion, construction, reconstruction. re- habilitiatlon, or installation of distri- ' bution facilities and lines of privately owned utilities where necessary and appropriate to implement the open- cant's strategy for neighborhood revi- talization or housing. Activities may Include the placing underground of new or existing distribution facilities. (1) The applicant shall provide HUD with a description of the proposed ac- tivity and the relationship to the ap- plicant's strategy for neighborhood re- vitalization or housing. (2) Among the factors-HUD will take Into account In authorizing suds ac- tivities are: (I) The degree of benefit to low- and moderate-income persons (11) The degree of impact on the in- dentitled needs of the applicant: and (tit) The availability of other Federal funds for the activity. § 570.202 Eligible relmbilitation and pros. tendon activities. Grant assistance may be used for the following activates for the miss , billtation of buildings and improve- ment& . (a) Rehabilitation of public residen- tial structures. Rehabilitation of pub- licly owned or acquired properties for use or resale in the provision of hous- ing. including - (1) Permanent housing unit& both single family and multifamily, for rental or sale and (2) Residential facilities, Including group homes, halfway houses, and emergency shelters. For example, a group home for the handicapped Or a temporary shelter for battered women may be provided through acquisition and rehabilitation of properties for those purposes. (h) Public housing modernization. Modernization and modernization planning of publicly-owned low-Income housing (excluding, the new construc- tion of office facilities for such public housing). N.B. block grant funds may also be pro- vided by an applicant to a public housing agency to be used for otherwise eligible so rheum ea.. public services such as security and day care meeting the requirements of 570.201(e) and planning and policy-plan- nine-mensgeinisit activities under 4576205 related to public housing improvements.) (e) Rehabilitation of private proper- ties. Block grant esseitanet may be used for the rehabilitation of privately owned properties. Assistance may con- sist of: (1) Acquisition for the purpose of re- habilitation. Block grant funds may be used to assist private entities. In- cluding those organized for profit and on a not-for-profit basis to acquire, for the purpose of rehabilitation, and re- habilitate properties for use or resale In the provision of housing which. upon completion of rehabilitation, at a minimum will meet the Section 8 Ex - listing Housing Quality Standards set forth in 24 CFR *882.109. Including ill Permanent housing units, both single family and multifamily, for rental or sale: and Oh Residential facilities. Including group homes, halfway houses, and emergency shelters: (2) Rehabilitation fintmeing. Block grant funds may be used to finance the rehabilitation of privately owned residential, non-residential (excluding industrial properties), and mixed use properties either within areas where activities included In the Community Development Program are being car- ried out, such as a NSA. or on a spot basis throughout the jurisdiction of the applicant for low- and moderate. income persons. Block grant funds may be used directly to finance reha- bilitation. including settlement costa through the direct use of block grant funds in the provision of assistance. such as grants, loans. loan guarantees and interest supplements; ton (I) Costs of rehabilitation of proper- ties. Including, repair directed toward cure of an accumulation of items of 'deferred maintenance, replacement of Priticesal fixtures and components of existing structures, and renovation through alteration, additions to, or en- hancement of existing structures, which may be undertaken singly, or In combination: (Il) Refinancing existing Indebted- ness secured by a property being reha- bilitated If such refinancing is neCeS• sary or appropriate to the execution of a Community Development Program: (iii) Measures to Increase the effi- cient use of energy in structures through such means as Installation of storm windows and doors, siding, well and attic insulation, and conversion, modification or replacement of heat- ing and eooling equipment, including the use of solar. alarm? equipment. (lv) Financing of costs associated with the connection of residential structures to water distribution lines or local sewer collection iirleg. or (v) Costs of initial homeowner war- ranty premiums for rehabilitation car- ried out with block grant emistanmm (3) Materials. Block grant funds MaY be used to provide materials, including tools, for use in the voismiltztion of properties either by the property owner or tenant, or where arrange- meats have been made for the pron. skm of labor, such as through a arrn grans. (d) Temporary relocation oewthrnee Block grant funds may be used for temporary relocation payments and assistance to individuals, famines. businesses, non-profit organizations, and farm operations displaced tempo- rarily by rehabilitation activities as- sisted under this part. Further Infor- mation regarding the eligibility of re- location costs is set forth in 1510.802. (e) Code enforcement Code enforce- ment in areas where activities included In the Community Development Pro- gram are being carried out, such as an NSA. which Is deteriorating or deterio- rated in which such enforcement to- gether with public improvements, re- habilitation amiamm..., and services to be provided. may be expected to arrest the decline of the area. (f) Historic preservation. Rehabilita- tion, preservation, restoration and ac- quisition of historic properties, either publicly or privately owned, which are those sites or structures that are either listed in or Flieim• to be listed In the National Register or Historic Places, listed in a State or local Inven- tory of Historic Places. or designated as a State or local land mark or Mater Meta mum vol. a. NO 41—WEDNESDAY, MUCH 1, leSs 41, 8344 RULES AND REGULATIONS lc district by appropriate law or ordi- nance. Publicly owned historic properties May be assisted, including those prop- ernes which are otherwise Ineligible for assistance Under this subpart. However, eligibility is limited only to those costa necessary for rehabilita- tion, preservation or restoration of the property and not for conversion or ex- pansion of the property for any Ineli- gible use. For example, a city museum serving low. and moderate-income per- sons. and listed in the National Regis- ter may be restored, but the addition of a new wing on. the museum could not normally be assisted, unless it were otherwise eligible for assistance pursuant to §570.203thi. . IS70.203 Eligible economic development activities. Grant assistance may be provided for the following development activi- ties which are not otherwise eligible for block grant assistance, which are directed toward the alleviation of . physical and economic distress, or the economic development of a new com- munity as described In 570.403(a) through stimulation of private invest- ment community revitalization, and. expansion of economic opportunities for low- and moderate-income persons. and handicapped persona and which are necessary and aPProiariate to im- plement the applicant's strategy for economic development. The applicau. shall Provide HUD with a description of the activity, and of the relationship to the applicant's strategy for economic development. In authorizing activities, HIID will take Into account the amount of long-term employment to be generated by the activity accessible to low- and =der- ate-Income persons, the necessity of the activity to stimulate private in- vestment- the degree of impact on the economic conditions of the applicant, and the availability of other Federal funds. (a) Acquisition. Acquisition of real property for economic development purposes: .(b) Public facilities and improve- ments. Acquisition, construction, re- construction. rehabilitation, or instal- lation of public facilities and improve- ments not otherwise eligible for assis- tance, except buildings and facilities for the general conduct of governMent which are excluded by 570.207(aX 1). For example, in an area with an un- employment rate In excess of the na- tional rate, a manpower training center'whicti is designed to prepare for the work force low- and moderate. income persons who are unemployed or underemployed. may be assisted where it is determined by the appli- cant that such a facility Is necessary and appropriate to support its eco- nomic development strategy. (c) Commercial and industrial facili- ties Acquisition. construction. recon- struction, rehabilitation or installation of: (1) Commercial or industrial build. togs and structures. including: (I) Purchase of equipment and fix- tures which are part of the real estate, but not personal property: and 7, (II) Energy conservation teepees* ments designed to encourage the effi- cient use of energy resources (Includ- ing renewable energy resources or al- ternative energy resources): (2) Commercial or industrial real Property improvements (Including rail- road spurs or similar extensions). §570.2e4 Eligible nihilism by Private nonprofit entitles, neighborhood-based nonevent organisations, local develop. meat con/orations, or smell business Investment companies. (a) General. Grant assistance rdaY be used by applicants to provide block Brant funds for activities designed to implement the applicant's strategies for economic development and neigh- boihood revitalization set forth in this section to be carried out by a private nonproft entity, a neighborhood-based nonprofit organization, local develop- ment corporation. or Small Business Investment Company (SHIM (1) Ap- plicant Responsibilities Applicants are nonetheless responsible for ensur- ing that block grant funds are utilized by such entities in a manner conies- tent with the requirements of this Van and other sinnicable Federal. State, or local law. Specific require- ments governing the administration of the use of block grant funds by such entitles are set forth in 570.612. Ap- plicants will also be responsible for the carrying out of applicable environmen- tal review and clearance reseonsibli- Wes. (2) Eligible Entities. Entities eligible to receive block grant funds under this section are: (i) A private non-Profit entity which is any organization, cor- poration, or association, duly orga- nized to promote and undertake com- munity development activities on a not-for-profit basis. Including new community associations as defined in g 570.403(b): (II) A neighborhood-based nonprofit organization which is an association or corporation, duly organized to pro- mote and undertake community devel- opment activities on a not-for-profit- basis within a neighborhood as de- fined pursuant to f 570.201(cX4), An organization is considered to be neigh- borhood-based if the majority of either its membership, clientele, or governing body are residents of the neighborhood where activities assisted with block grant funds are to be car- ried out: MD A Small Business Investment Company (SBIC) which is an entity organized pursuant to section 301(d) of the Small Business Investment Act of 1958 (15 U.S.C. 681(d)), includintl those which are profit making: and • (iv) A local development eorporr"mi which is an entity organized pun A to Title VII of the Headstart. Econ.,in- IC and Community Part-nership Act of 1974 (42 U.S.C. 2981); an entity eligible for assistance under section 502 of the Small Business In- vestment Act of 1958 (15 U.S.C. 696). a State development entity eligible for assistance under section 501 of the Small Business Investment Act of 1958 (15 U.S.C. 695), or other similar entity Incorporated pursUant to State, or local law. (b) Activities • eligible under ft 570.101-570.203, and f 570.205 and I 570.201. Grant assistance any be pro- vided by an applicant to be utilized by Private nonprofit entities, neighbor- hood-based nonprofit organizations. SBICa or local development corpora- tions for activities otherwise eligible for block grant assistance Pursuant to 1§570.201-570.203, ' f 570.208._ and 570.206, Where such entitles use block grant funds to acquire title to fa- cilities, including those described in §570.201(c) or §570.203(b), they shall be operated so as to be Open for use by. the general public during all normal hours of operation. Reasonable feet may be charged for the use of focal- tics acquired by such entitles, but charges, such as excessive membershila fees, which will have the effected tt•-% eluding low- and moderate-Income: sons from using the facilities are was permitted. • • (e) Community economic develop-ment or neighborhood revitalisation activities. Grant assistance may be provided by an applicant to be used be neighborhood-based nonprofit mord. aliens, SIIIC's or local development corporations, but not private nonprofit entities as defined in §11/0.2040taliiii. for community economic development or neighborhood revitalization activi- ties which are not otherwise eligible for assistance under this subpart and which are determined by the applicant to be necessary or appropriate to the accomplishment of Its Community De- velopment Program- Such activities may include the provision of block grant assistance for use by neighbor- hood-based nonprofit Organizations, SBIC. or local development. corpora- tions !sr. (1) iisistance through grants, loans, guarantees, interest supplements, or technical assistance to new or existing small businesses, minority businesses and neighborhood nooprefit business- es for (1) Working capital or operational funds: and (11) Capital for land, structural, property improvements, and fixture,' (2) Capitalisation of • SBIC or lc development corporation required as MOM 110151111, VOL 43. HO, 41—WEDNISDAY, MARCH 1, 1175 r)f, RULES AND REGULATIONS qualify for assistance under other Fed- specifies both short- and long-term ob- eml programs: jectives to guide the applicant's Corn- (3) Assistance to minority contra°. munity Development Program: tors to obtain petformance bondlnin or (4) Related planning and urban en. (4) Other activities, excluding those vironmentat design acitivities 1w:ed. • described as ineligible for block grant tag the preparation of communitywide assistance in if 570.207(aX1) and (et plans for land use, housing, open appropriate for community economic space, recreation, utilities, historic development or neighborhood revitan preservation. including surveys of his- ization. Where an applicant proposes tone properties, economic develop. to fund such entities to undertake so- ment, neighborhood preservation. re . nettles pursuant to this paragrants moval of architectural barriers to the the applicant shall: elderly and handicapped, and endron- (1) Provide RED with a complete de- mental assessment: scription of the proposed activity: (5) Collection of detailed data, prep- (in Provide HUD with a description &ration of analyses, engineering and of the relationship of the proposed se- design of facilities eligible for anis- tivitY to the applicant's strategy for Una) which can be constructed with neighborhood revitalization or econ. block grant funds; and mic development; and (5) Development of codes. ordinances (iii) Receive specific authorization and renulations, necessary for the ins- from HUD to undertake the activity. plementation of the plan, including local fair housing ordinances. 570.205 Eligible planning. 'and urban en- (b) Develonment dr a policy.plan- vironmental design eats, ning.management capacity so that the Grant assistance may be used for applicant =AY: the following planning, design, and en- a) Set long-term and short-term ob- vironmental costs: Jed:Ives related to the community de- (e) Development of a Comprehensive velopment and housing needs of its-nn Community Development Plan For risdiction: the purpose of this section. the term (2) Devise programs and activities to "Comprehensive community Develop. meet -these goals and objectives; ment Plan" means s statement or (3) Establish an urban environmen-, statements (in words, maps. Inustm. tat design administrative capacity to nom or other methods of communica. use a systematic, interdisciplinary ap. non) which identify the present conch. Proach to the integrated use of natin nous. needs and major problems of the ral and social sciences and environ. applicant's jurisdiction relating to the mental design arts in planning and de. specific objectives of the Communal(' (Minn mid= Development Preen= as set forth in - (4) Evaluate the Progress of such 1570.2(5) and set forth objectives, eon- programs and activines and the extent cies and standards to guide the devel- to which the goals and objectives have opment and implementation of such been accomplished: and . Community Development Program. (5) Carry out the management: co- Activities necessary to develop a Conn ordination and monitoring of the ac- prehensive Community Development nettles and programs that are a part Plan may Include: of the &nein-sews Community Devel- (1) Data gathering and studies nets- oPment Program. essary for the development of the (c) Comprehensive planning actitin Plan or its components, including the den In addition to the Planning setiel - production of base :napping and aerial ties otherwise eligible for assistance photography in coordination with the under this section, endstance maY be U.S. Geological Survey, and gathering also provided for comprehensive plan- information from citizens, but exclud- ning activities eligible for assistance Mg the gathering of detailed data and under the section 701 Planning a3b12. preparing of analyses necessary for lance program pursuant to 24 CFR the engineering and design of facilities Part 800 provided that such additional or activities Ineligible for block grant planning activities are necessary or ay- assistance pursuant to 570.201: propriate to meeting the needs and ob- (2) Development of statements. of Mr JetUves of the applicants' Community jeclives. policies and standards regard, Development Program. The applicant regard- ing proposed or forseeable changes in shall submit a description of the actin- the present conditions or problems af- fecting Ity to HOD. Among the factors HUD that are to be addressed by the Com- munity activities will be the impact of the ac- Development Program. includ- ing they on the needs and objectives Meil- further fair housing; ability of other Federal funds. (3) Development of a three-year Com- munity Development Plan Which Men- 574.2011 Administrative Iden- tifies the community development, housing, and economic conditions and needs demonstrates a comprehensive strategy for meeting those needs and 8445 munitY development activities fi- nanced. in whole or In part, with funds provided under this Part and housing activities covered In the applicant's Housing Assistance Plan (RAP). Costs Incurred in carrying out the program, whether charged to the program an a direct or an Indirect basis, must be In conformance with the requirements of Federal Management Circular (FMC) 74-4, "Cost Principles Applicable' to Grants and Contracts with State and Local Governments." All Items of cost listed in Attachment S. Section C of that Circular (except Item 8, preagree- ment cost, which are eligible only to the extent authorized In 570.301(e) are allowable without prior approval to the extent they constitute reason- able costa and are otherwise ' eligible under this subpart. (a) Eligible program administration costa Reasonable administrative costs and Staff expenses Include necessary expenditures for the following; (1) Salaries, wages and related costs of the applicant's staff and the staff of local public agencies engaged In carry- ing out the program: (2) Travel coats incurred for official business in carrying out the program (3) Administrative services Per formed under third-party contracts o. agreements , including such services (A. general legal services, accounting set vices and audit services; (4) Other costs for goons and ser- vices required for administration of the program including such goons and services as rental and maintenance of office space. Insurance, utilities. office supplies and rental or purchase of office equipment:. (5) Costs associated with the admin. istration of individual program amid- ties: and - (ID Reasonable administrative costs relating to the provision of rehabilita- tion loans under Section 312 of the Housing Act of 1984. as amended, and, where appropriate, administration of an urban homesteading program pur- suant to section 810 of the Housing and Community Development Act of 1974, as amended, in accordance with the Community Development Pro. gram or housing assistance plan. the applicant's jurisdiction will take into account in authorizing policies which will affirmatively tilled by the applicant. and the avail- GO The provision of information and other resources to residents and citizen organizationS participating in the planning, implementation, or as- sessment of activities being carried out with block grant tunes. This may in. dude assistance to neighborhood orga- nizations in areas of concentrated ac- tivities or to city-wide organizations conducting training or other activities designed to increase the capability of low- and moderate-income person., to Eligible be involved effectively In the develop- ment and planning and design of a Cons, community development program con- Payment of reasonable administra. antent with the applicable citizen ma- nse costs and carrying charges related ticipaticm requirements set forth In to the planning and execution of cons- this Part. MOIRA IttOnn4, VOL 43. NEL 41—WEDNESDAY, MAIM I, 14rS 8446 RULES AND REGULATIONS Cc) Provision of fair housing counsel- ing services and other activities de- signed to further the fair housing pro- visions of 570.307(k) and the housing objective of promoting greater choice of housing opportunities and avoiding undue concentrations of assisted per- sons In areas containing a high propor- tion of lower-income persons. For ex- ample. activities may include inform- ing members of minority groups, and the handicapped, of housing opportu- nities in non-traditional neighbor- hoods and providing information about such areas, and assisting mem- bers of minority groups. and the handicapped, through provision of escort services to brokers offices in non-traditional neighborhoods. (d) Provision of cams lance to facili- tate performance and payment bond- ing necessary for contractors carrying out activities assisted with block grant funds including. Payment of bond pre- miums In behalf of contractors. to) Property management. Reason- able costs of managing Properties ac- (mired with block grant funds. . (f Applications for Federal pro- puma including the block grant pro- gram and =AG program, mar be pre- pared with block grant funds where necessary and appropriate to imple- ment the applicant's comprehensive strategy for community development. Special provisions regarding letter to proceed for small city applicants are contained In Subpart P. • (g) Activities to facilitate the imple- mentation of a housing assistance plan for necessary expenses. Prior to construction, in planning and obtain- ing financing for the new construction or substantial rehabilitation of hous- ing for lower-income persona Activi- ties may include: (1) The costs of conducting prelimi- nary surveys and analyses of market needs: ' (2) Site and utility plans, narrative descriptions of the proposed construe- tion. preliminary cost estimates, urban design documentation. and "sketch drawings." but excluding architectur. al . engineering, and other details ordi- narily required for construction pur- poses, such as structural., electrical, plumbing, and mechanical details (3) Reasonable costs associated with development of applications for mort- gage and insured loan commitments. including commitment fees, and of ap- plications and proposals under the Section 8 housing assistance payments program pursuant to 24 CFR Parts 880-883: and (4) Fees associated with processing of applications for mortgage and in- sured loan commitments under pro- grams including those administered by HUD, Farmers Home Administration (Fini1A). Federal National Mortgage Association (FNMA). and the Govern- ment National Mortgage Association (GNMA). The new construction or direct fi- nancing of new construction of hous- ing is not eligible for assistance under this Part, except as described in 570.207(f). Environmental Studies. The rea- sonable costs of environmental studies, including historic preservation clear- ances. necessary to comply with 24 CFR Part 58. including project specific environmental assessments and clear. ances for activities eligible for assis- tance under this Part. 5570.207 Ineligible activities. The following is a list of activities which are ineligible for block grant as- sistance-under most circumstances and serves as a general guide regarding In- eligible activities. There are several authorities set forth in Subpart C which would Permit actIvities eked in this section to be undertaken with block grant funds. When an activity used as an example In this section meets the requirements for eligibility pursuant to Subpart C. such an astir- lit may be assisted with block grant funds even though it is used as an ex- ample of an ineligible activity. The list of examples of Ineligible activities Is merely Illustrative and does not consti- tute a list of all ineligible activities: (a) Public works, facilities and site or other improvements. The general rule is that public works, facilities and site or other improvements are ineligi- ble to be acquired, constructed, recon- structed, rehabilitated or installed unless they are eligible pursuant to g 570.201(c) or 570.203(b). or were previously eligible under any of the programs consolidated by the Act (except the public facilities loan pro- gram, the model cities program, and as an urban renewal local grant-in-aid eli- gible under section 11003)(3) of Nous- hag Act of 1949) and cited in 870.1(b). Activities undertaken to make facili- ties and improvements otherwise ineli- gible for development with block grant assistance accessible to the elderly and handicapped through removal of ar- chitectural barriers, or for the pug. poses of historic preservation pursuant to 54 570.201(k) and 570.202(f), respec- tively, are eligible for imsio."' with block grant funds and are not -pre- cluded by this section. Where acquisi- tion of real property includes an exist- ing improvement which is to be uti- lized in the provision of an ineligible public facility, the portion of the ac- quisition cost attributable to such im- provement, as well as the cost of any rehabilitation or conversion undertak- en to adapt or make the property suit- able for such use, shall be ineligible. Examples include the following: (1) Buildings and facilities for the general conduct of government, cannot be provided with block grant assis- tance, such as city halls and other headquarters of government where the governing body of the recipient meets regularly and which are Pre- dominantly used for municipal pur- poses, courthouses, police stations • other municipal office buildings: (2) Other facilities and improve- ments, which may not be provided with block grant, funds unless they are determined by HUD to be necessary and appropriate to the buldementa- lion of an applicant's strategy for com- munity development amid housing in accordance with §§ 570.201(c)(14) or. 570.203(03. Include: (I) Facilities used for ezhibitions,. spectator events and cultural pur- poses, including stadiums, sports arenas, auditoriums, concert hank cul- tural and art centers, convention cen- ters and exhibition bails, museums, central libraries, and similar facilities- For the purpose of this Paragraph. li- braries (including central libraries in units of general local government under 25,000 population where the cri- teria set forth In I 570.201(e)(4)(U) are satisfied). cultural, art and museum fa. Wines which meet the requirements for neighborhood facilities set forth In 570.201031(4) are considered neigh- borhood facilities and are therefore eligible for assistance. (U) Schools and educational AMU- ties. (including elementary, secondary, college, and university facilities). For the purpose of this Paragraish- A neighborhood facility, senior center or muter for the handicaps In which classes in practical and via- tional activities (such as first aid, ho- memaking: crafts. Independent living, etc.) are among the services provided Is not considered as a school or educa- tional facility: WO Airporis. subway& trolley lines, bus or other transit terminals, or sta- tions. and other transportation facili- ties. (excluding railroad spurs assisted pursuant to 5510.203(0). (iv) Hospitals. nursing homes and other medical facilities. For the pur- pose of this paragraph, a neighbor- hood facility, senior center, center for the handicapped, which provide gener- al health services is not considered to be a medical facility. ' (v) Treatment works for sewage or Industrial wastes of a liquid nature, consisting of the various devices used In the treatment of sewage and com- mercial and Industrial wastes of a liquid nature, including the necessary interceptor sewers, outfaU sewers, actual treatment facilities, pumping stations, power and other equipment. and their appurtenances. The term "Interceptor sewer" means a line which has as Its, primary purpose the diversion or transmission of sewage, from a collection system to a treat- ment facility, and applies to the V (A) In those situations where raw Or Inadequately treated sewage Is being Mara ItIONTER, VOL 43, NO, 41-1vIONISOAY, MAKS 1, 19711 471/ nto discharged from an existing public sewer, those sewer tines, whether grav- ity or force. and any pumping stations or other appurtenances thereto which are necessary to prevent or eliminate the discharge into any waterway of raw or inadequately treated sewage from an existing point or points of dis- charge in a public system are not big. This includes any necessary pump- ing stations, force mains or other ap- purtenances thereto: and (B) In all other situations, the line or lines which divert the flow to the treatment facility from the point of natural discharge of a collection system, where no treatment to be pro- vided. Including any necessary hag stations, force mains or other ap- purtenances are not eligible. (b) Purchase of equipment. The pur- chase of equipment with block grant funds Is generally ineligible. Cl) Construction equipment. The purchase of construction equipment is ineligible, but compensation for the use of such equipment through leas- ing, depreciation or use allowances pursuant to Attachment B of OMB Circular A-102 for an otherwise eligi- ble activity is an eligible use of block grant funds. An exception is the pur- chase of construction equipment which is used as a part of a solid waste disposal facility which Is eligible for block grant assistance Pursuant to 570.201(c)(5). such as a bulldozer used at a sanitary land= (2) Furnishings and personal proper- ty. The purchase of equipment, fix- tures. motor vehicles, or furnishings or other personalty not an integral struc- tural fixture is ineligible, except when necessary for use by a recipient or its subgrantees in the administration of It s Community Development Program Pursuant to 570.205(d). or as a part of a public service pursuant to f 510.201(e). (e) Operating and maintenance ce. ywnses, The general rule is that any expense associated with operating, maintaining or repairing public facili- ties and works or any expense associat- ed with providing public services not assisted with block grant funds is ineli- gible for assistance. However, operat- ing and maintenance expenses associ- ated with providing public services or Interim assistance otherwise eligible for assistance under this Part may be assisted. For example, the cost of a public service being operated with block grant funds in a neighborhood facility may include reasonable ex- penses associated with operating the RULES AND REGULATIONS public service within the facility, in- cluding costs of rent, utilities and maintenance. Examples of activities which are not eligible for block grant assistance are (1) Maintenance and repair of streets, parks. playgrounds, water and sewer facilities, neighborhood facili- ties. senior centers, centers for the handicapped, parking and similar public facilities. Examples of mainte- nance and repair activities for which block grant funds may not be used In- clude the (Wing of pot holes In streets, repairing of cracks in sidewalks, the mowing of retreational areas, and the replacement of expended street light bulbs. (2) Payment of salaries for staff, utility costs and similar expenses nec- essary for the operation of public works and facilities: and (3) Expenses associeted with provi- sion of any public service which is not eligible for assistance pursuant to 570.201(e). (d) General miverament expenses. Expenses required to carry out the regular responsibilities of the unit of general local government are not eligi- ble for assistance under this part. Ex- amples include all ordinary general government expenditures not related to the Community Development Pro- gram and not related to activities eligi- ble under this subpart. (e) Political activities. No expendi- ture may be made for the use of equip- ment or premises for pelItil",4 Pur- poses, sponsoring or conducting Candi- dates' meetings, engaging in voter reg- istration activity or voter transporta- tion or other partisan political activi- ties. (f) New housing constructices Assis- tance may not be used for the con- struction of new permanent residen. nal structures or for any proem= to subsidize or finance such new con- struction. except as provided under the last resort housing provisions set forth in 24 CFR Pert 43, or pursuant to 570.204(cX4). For the purpose of this Paragraph, activities in support of the development of low- or moderate- income housing in accordance with an approved Housing Assistance Plan chiding clearance, site s ,,,meeblage, provision of site and provision of public improvements and certain hous- ing preconstruction costs set forth in I 570.205(dX7), are not considered as programs to subsidize or finance new residential construction. (g) Income payments. The general rule is that assistance shall not be used for income payments for housing 3447 or any other purpose. Examples of In- eligible income payments include the ; following: payments for income main- tenants,. housing allowances. gown payments and mortgage subsidies. Ill Conforming changes are made to part MO as followc 5570,403 (Amended! 1. In f 570.403(h), the reference to 570.200(a)" is changed to "f 510.201(cX4)." f 570.405 lAmendedf 2. In 510.405(b). the reference to "f 370.200" Is changed to "Subpart C." 1570.402 amended) 3. In 570.407(d), the reference tc j "f 370.200" is changed to "Subpart C.' 5570Al2 (Amended! 4. In 5570,512(e), the reference ir '1570,200" is changed to "Subpart C.' 5570.031 (Amended) D. In I 570.601(bX4XM), the refer. awe to 1570.200" is changed to "Sub part C." STOAT amended) IL In 5570401, the references is "f 501.200(a)(8)." 570.200(b)," an: 510.200(a)(2r are changed t , "5510.201(e)," "5310.200(c)." ant '11510.201(cX13)." respectively. f 574.SOI !Amended] . 7. In f 570.1101(bX1X11), the refer ences to "5510.200" are changed is "Subpart C." ' f1510.907 [Amended) IL In f 570.907(h). the references it "5 570 '..!1101a)(8)" and 1 570.2001aX2/ are changed to "5570.201(e)" ant i 510.201(c)(13)." respectively. 5570.909 Untended.) 9. In 5 570.909(1)(1)X1), the referenm to 1 570.200" is changed to 'Subpar C." (Title I. Housing and Community Develop mane Act of 1214 (42 U.S.C. 1301 et seq.. Title I. Routing and Community Develop MIS Act of INT (Pub. L. 03.1211k and ter 7(d). Department at Rousing and Urban De velopment Act (42 U.S.C. 3435(taki Issued at Washington. D.C., E'tbru ary 21, 1978. ROBERT C. Emmy. Jr., Assistant Secretary for Coinasu- city Planning and Develop- ment. (PR Doe. 75411SPIled 2-23-1e: 124 pm) SEDERAI MOM Vat. 43, NO. 0—WIDNESOAT, MARCH I, 191$ AO MEMO: TO: Mayor and City Council FROM: Chris Enger, Director Of Planning THROUGH: Roger Ulstad, City Manager DATE: November 29, 1978 SUBJECT: 1979 Community Development Block Grant Eden Prairie's target allocation through Hennepin County for 1979 should be about $65,000. As we anticipated last year, the types of activities which are eligible for funding through this H.U.D. program are becoming more limited because of the low and moderate income direct benefit criteria. We do think we have some good suggestions for housing, community facilities and parks for the next 3 year pro- gram. The staff is anticipating following the schedule outlined below for obtaining citizen comments toward developing our December 5, 1978 C.D.B.G. program. December 7, 1978 publish public hearing notice for Planning Commission meeting of December 18th. • December 11, 1978 public meeting and discussion at Human Rights Commission December 18, 1978 public meeting and discussion at Parks, Recreation and Natural Resources Commission. December 18, 1978 public hearing before the Planning Commission Request City Council to set public hearing for January 16, 1979 January 4, 1979 publish hearing notice for January 16, 1979 City Council Public Hearing. January 16, 1979 Public Hearing before City Council Late January, 1979 Public Hearing before Planning Area Cititens Advisory Committee Back to City Council in February for final approval of program Forward to Hennepin County for County wide public hearing on entire Urban County program. We would therefore suggest that the Council set January 16, 1979 for a public hearing on Community Development Block Grant. ATTEST: John D. Fran°, City Clerk Published in the Eden Prairie News on the day of q 12.-26-78 CITY OF EDEN PRAIRIE RP HENNEPIN COUNTY, MINNESOTA ORDINANCE. 78-56 AN ORDINANCE RELATING TO ZONING AND AMENDING ORDINANCE 135. THE CITY COUNCIL OP THE CITY OF EDEN PRAIRIE DOES ORDAIN AS FOLLOWS: Section 1. Appendix A of Ordinance No. 135 is amended as follows:. The following described property, Lot 5, Block 1, Eden Prairie Center Addition, according to the plat thereof on file and of record in the Office of the Registrar of Titles, Hennepin County, Minnesota, shall be and hereby is removed from the rural District and shall. be included hereafter in the C-Reg-Ser (Regional Service) District. Section 2. The above described property shall be subject to the terms and conditions of that certain Developer's Agreement dated ,1978, entered into between Barmil Search Corporation, a Minnesota corporation, and the City of Eden Prairie, which Agreement is hereby made a part hereof and shall further be subject to all of the ordinances, rules and regulations of the City of Eden Prairie relating to the C-Reg-Ser (Regional Service) District. Section 3. This ordinance shall become effective from and after its passage and publication. FIRST READ at a regular meeting 9f the City Council of the City of Eden Prairie on the day of 4978, and finally read and adopted and ordered published at a regular meeting of the City Council of said City on the day of ,l978. Eden Prairie Neighborhood Center BarMil Search DEVELOPER'S AGREEMENT THIS AGREEMENT, made and entered into as of 1978 by and between BARMIL SEARCH CORPORATION, a minnesota corporation, 'hereinafter referred to as "Owner", and the CITY OF EDEN PRAIRIE, a municipal corporation hereinafter referred to as "City", WITNESSETH: WHEREAS, Owner has applied to City for changing the zoning from Rural to C-Reg-Ser(Regional Service) District for approximately 11.7 acres for development of land more fully described as follows: Lot 5, Block 1, Eden Prairie Ceiller Addition, according to the plat thereof on file and of record in the Office of the Registrar of Titles, Hennepin County, Minnesota. WHEREAS, Owner desires to develop the property for 5 commercial/retail lots. NOW THEREFORE, in consideration of the Mayor and Council of the City adopting Ordinance 78-56 changing the zoning from Ruralto C-Reg-Ser(Regional Service) District , Owner covenants and agrees to construction upon, development and maintenance of said property as follows: 1. Owner shall conform with all planning, architectural, engineering, landscaping and fee requirements of all City ordinances. 2. Owner shall plat and develop the pronerty in conformance with the material reviewed and approved by the City Council, dated 10-1-78, and attached hereto as Exhibit A except as otherwise provided herein. Agreement-EP Neighborhood Center page 2 • • • 3. Owner shall submit a development plan prior to approval .of final plat which shall show proposed grading, storm water drainage areas and direction of flow, preliminary utility plans, pending area and floodplain high water . levels for 100 year storm and minimum floor elevations for all lots. The development plan shall be subject to approval by the City Engineer. ' 4. Owner shall submit detailed construction and storm sewer plans • to Riley/Purtatory Creek Watershed District for review and approval. Owner shall follow all rules and recormendations of said Watershed District. S. Owner shall final plat corners at all street intersections and cul-de-sac returns having nine (9) foot radii to enable utility •cbmpanies to install their lines without crossing private - property. 6. Owner shall not request nor gain approval for a cut in the median of Schooner Boulevard(Ring Road) so as to permit two way access of the property thereto. A right-in/right-out from and to Schooner Boulevard only may be allowed provided necessary turn lanes are installed by the Owner in accordance with the City Engineer's approval. 7: Owner shall submit to the City Planning Department for review and approval a detailed landscaping plan including, but not limited to; landscaping throughout all parking , areas, screening of parking and service areas from public roads. 8. Owner shall construct concrete sidewalks, feet wide, 5 inches deep with let down curbs and gutters in the following locations: a. along the,(but within City right-of-way) west side of Franlo Road with right of public use. b. along the entire northeast boundary of the property from Franlo Road to US. 169 with right of public use. within the property boundary abutting the right-of-way of US 169/212, with right of public use. d. internal sidewalk systems, as outlined in red on Exhibit A. 47 Agreement-EP Neighborhood Center page 3 9. Owner shall pay cash park fees as to all of the property required by any ordinance in effect as of the date of the issuance of each building permit for construction on the property. Presently, the amount of cash park fee payment applicable to the property is $1200/acre. The amount to be paid by Owner shall be increased or decreased to the extent the City ordinances are amended or supplemented to require a greater or lesser amount as of the date of the issuance of any building permit for construction on the property. All sanitary sewer, watermain and storm sewer facilities 10. concrete curb and gutter and bituminious surfacing, whether to be public or private,-shall be-designed to-City standards by a Registered Professional engineer and submitted to the 'City Engineer for approval. The Owner, through his engineer, shall provide for competent daily inspection of all street utility construction both public and private. As built drawings with service and valve ties on reproduceable mylar and certification of completion and compliance with specifi- cations shall also be delivered to the city engineer. The Owner, prior to final plat approval, shall provide a bond or letter of credit in such form as shall be approved by the Cit:: and which guarantees completion of construction and pay- ment of costs thereof in an amount no less than the estimated costs of construction plus 20% of all street and/or utility systems to be owned and maintained by the City. The City shall accept such street and/or utility systemssubject to recommendations of the City Engineer and subject to receipt by the City of Owner's warranty, guarantying such systems against any defect or defects therein for a period of at least two years, together with a bond or letter of credit in the amount of 25% of the costs for such systems in such form as shall be acceptable to and containing such further terms as shall be required by the City. 11. Owner shall file this Agreement with the Register of Deeds, or (Registrar of Titles), and supply the City with a copy of this Agreement with information as to Document Number and date and time of filing duly certified thereon within 60 days from the date of this agreement. 12. If Owner fails to proceed in accordance with this Agreement within 24 months of the date hereof and provide proof of filingin accor- dance with paragraph 11 herein, Owner for itself, its successors, and assigns shall not oppose rezoning of said property to Rural. 13. Provisions of this Agreementshall be binding upon and enforceable against Owner, its successors, and assigns of the property herein described. Agreement-EP Neighborhood: Center 14. Owner represents and surreeta that It hme iontratt rights under en option egreement dated June 20, l916:hetooe# itoos and Hosort DivoloPoent Co., * Delemare.corporatiOnithiliolder of the fee title to the property, toe:Orate thofse title In the yropaLty free and clear of *II .mortgegesi ltens or other ermwehrances except restEittient OE tenor& 15. Prior to the dedication, trate*r or torveyanee ofeny reel property or Interest Vomits to the Alitroli preilded tend* Owner shall deltme t 6 tiot MY an 40$010Caddreoned:te:tha -City by an Attorney, ad in k form sto*ftablo'tn city*. to the condition 0 the tide of anth'itrOgierW;or in lieu of * title opinion, a tide Innutnunn polity insuring the condition of the prbpetfy 0 . Inman tbriibtbi In the DitY. 16. The condition of the title of any reel prollertyor any interest therein to he de itif.r.d, crannurrnd orcno4004 ea may be provided Wein by peer to city shell ease in City good and marketable title herein, free and dletr of any 202 tgagess liens* onewebranoes or asnrainenta. BY: STATE OF MINNESOTA Inger K.U1sted, Its Manager COUNTY OF HENNEPIN The foregoing instrument was acknowledged 1978 by Wolfgang H. PerzeI, the Mayor and of the City of Eden Prairie , a municipal corporation. before me this day of Roger K. U1stad7 -00 City Manager corporation on behalf of the Notary. Public BARMIL SEARCH . CORPORATION, nminnesota . carPor#W0 /Philip/Y. 4rrett,—Tqi 2 BY: ' X lifie (George Mikan: .lni; Ye-president STATE OF MINNESOTA) )SS. COUNTY OF HENNEPIN) The foregoing instrument was acknowledged before me this 1978 by Philip Y. Barrett. the President and George L. Mi of BarMil Search Corporation, on behalf of said corpota0 Notary Publi day of n. the LIE N. JOHNSON IIQUAt ValA.1111E440U RAMS EY COlArt l 190 11, Comm:woo W14% ass & _ tre-Trerspyrnvorwrortsastinva Agreement-BarMil Search page IN WITNESS WHEREOF, the parties to this Agreement have causal these presents to be executed the day and year aforesaid. CITY Of EDEN PRAIRIE, a municipal corporation of the State of Minnesota BY: Wolfgang H. Penzel , Its Mayor - `• • • -'-"• • • - • 47- . • .;;;;z! ..••••• IleiatIseritood Conte Ed. Prikto SA3 SqoAchtcs. c'psv...2s.m2 22.0 . 2 Site Pitat \1 , ,...' e• i ,I AI. , 1 1-‘,....?....0 ';.t 1 —4.451'4141 I" . -;>... i D \ 1 ,1:..1.1tntStS WE/OW.01r /..kA T'-....,•,;.;•;...- 7 / ..'..- , f.' trA 0 ' Nt (A ‘• • / / f / ....„„ _..„,..... ,..„, \ m *,... ..".• ‘,.... 'V r.A.---,....\. \ 1 SEARS AUTO CENTER •• r•so' I 02- OWNERS SUPPLEMENT TO DEVELOPER'S AGREEMENT BETWEEN BARMIL SEARCH CORPORATION AND THE CITY 0F EDEN PRAIRIE This Agreement made and entered into as of 1979, by and between Homart Development Co., a Delaware Corporation. ("Homart"), hereinafter referred to as Homart and the City of Eden Prairie, a Municipal corporation, hereinafter referred to as City. For and in consideration of, and to induce, City to adopt Ordinance 78-56 and to change the zoning of property owned by Homart from Rural to C-Reg-Ser (Regional Service) District, described as Lot 5, Block 1, Eden Prairie Center Addition . according to the plat thereof on file and of record in the office of the Registrar of Titles, Hennepin County, Minnesota, ("the property"), as more fully described in that certain Developer's Agreement entered into as of , 1979, by and between Barmil Search Corporation and City ("Developer's Agreement") Homart agrees with City as follows: (a) If Barmil Search fails to proceed in accordance with the Developer's Agreement within 24 months of the date hereof and to provide proof of filing as required there- in, Homart for itself, its successors and assigns shall not oppose the rezoning of the property to Rural. (b) This Agreement shall be binding upon the enforceable against Homart, its successors and the assigns of the property. Owners Supplement to Developer's Agree- ment Between Barmil Search Corporation and the City of Eden Prairie .oztrf or EDEN : )1uoi,49 ContoratiaM of the of "Wolfgang 11,-. Pen BY* STATE OF MINNESOTA) ) SS. COUNTY OP HENNEPIN ) The foregoing instrument was acknowledged hater 8 .1979 by .SIMUOMUS vigor, NENPPAIRIE of RomartOeVatipMent:go. on behaif o e corporation. MtALVILIWAAAA otaull zitavv.to OSAVI PUBIC 44p.at5cdA tiwve4s1N c.umert CoagiL7103 10145iwi. t am STATE OF MINNESOTA ) ) SS. COUNTY OF RFNWPFIN ) The foregoing instrument was acknowledged benzene this . of ,1979, by Wolfgang S. Penzel, the Mayor Ulstad, the city Manager of the City of Eden Prairie, a HUH corporation, on behalf of the corporation. • 103 P410 Member introduced the following reseal:- , tion and moved its adoption: RESOLUTION NO. 79-14 RESOLUTION AUTHORIZING THE SALE AND ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT TO FINANCE A PROJECT THEREUNDER, SECURED BY PAY - MENTS TO BE RECEIVED PURSUANT TO A LOAN AGREE- MENT AND A PLEDGE AND ASSIGNMENT OF THE CITY'S INTEREST IN THE LOAN AGREEMENT AND PAYMENTS THEREUNDER TO A TRUSTEE, AND AUTHORIZING THE EXECUTION OF DOCUMENTS BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota (the "City"), as follows: 1. It has been proposed that the City issue its Indus- trial Development Revenue Bonds (CPT Corporation Project), Series 1979 in the principal amount of $1,000,000 (the "Bonds") and loan the proceeds of the Bonds to CPT Corporation, a Minnesota corpor- ation (hereinafter, the "Company"), which will use the proceeds to provide funds to pay a portion of the cost of acquisition, con- struction and equipping of certain properties comprising a head- quarters facility including office, manufacturing, traiyiing and assembling facilities (collectively, the "Project") suitable and to be used by the Company and to be located in the City. The Council gave preliminary approval to the proposal by resolution duly adopted April 18, 1978, and pursuant to that resolution., the following documents relating to the Project have been submitted to the Council and are now, or shall be placed, on file in the office of the City Clerk: (a) Loan Agreement, dated as of January 1, 1979, proposed to be made and entered into between the City and the Company; (b) Indenture of Trust (hereinafter the "Inden- ture"), dated as of January 1, 1979, proposed to be made and entered into between the City and the First Trust Company of Saint Paul, as trustee (the "Trustee"); (c) Guaranty Agreement, dated as of January 1, 1979, between CPT-DISC, Inc. and CPT International, Inc., as Guarantors, and the Trustee;. (d) Agency Agreement (the "Agency Agreement"), be- tween the City and Dain, Kalman & 'Nail, Incorporated, as Agent .(the "Agent"); (e) Representation and Indemnity Agreement (the "Representation and Indemnity Agreement"), among the City, the Agent and the Company; (fl two Subscription Agreements (the "Subscription Agreements"), one among the City, the Company and North- western National Life Insurance Company, and the other among the City, the Company and North Atlantic Life In- surance Company of America (Northwestern National Life Insurance Company and North Atlantic Life Insurance Company,of America are collectively referred to as the "Original Purchasers"1 2. It is hereby found, determined and declared that: Cal the City is duly organized and existing under the Constitution and laws of the State of Minnesota and is authorized to issue industrial development revenue bonds in accordance with Minnesota Statutes, Chapter 474, as amended (the Actl; ani based upon representations made to the City as to the nature of the Project and the anticipated use of the proceeds of such Bonds, the properties described in the Loan Agreement and Indenture referred to in 'Section 1 constitute a project authorized by the Munici- pal Industrial Development Act, Minnesota Statutes, Chapter 474, as amended (the "Acel; teL the purpose of the Project is and the effect there- of will be to promote the public welfare by the attraction, encouragement, retention and development of economically sound industry and commerce so as to prevent, so far as possible, the emergence of blighted and marginal lands and areas of chronic unemployment; the development and retention of industry to use the available resources of the community in order to retain the benefit of its ex- isting investment in educational and public service facilities, by halting the movement of talented, edu- cated personnel of mature age to other areas and thus preserving the economic and human resources needed as a base for providing governmental services and facilities; more intensive development of land available in the com- munity to provide an adequate tax base to finance the increase in the amount and cost of governmental services; and a better distribution of tax burdens between indus- trial or commercial properties and residential proper- ties within the City; WI the Project has been approved by the Commis- sioner of Securities of the State of Minnesota as tending to further the purposes and policies of the Act; -2- Jos (el the financing of a portion of the cost of the Project, the issuance and sale of the Bonds, the execu- tion and delivery of the Loan Agreement, the Indenture, the Agency Agreement, the Representation and Indemnity Agreement and the Subscription Agreements, and the per- formance of all covenants and agreements of the City contained in such documents and of all other acts and things required under the Constitution and laws of the State of Minnesota to make such documents and the Bonds valid and binding obligations of the City in accordance with their terms, are authorized by the Act; (f) it is desirable that a series of Industrial Development Revenue Bonds in the amount of $1,000,000 be issued by the City upon the terms set forth in the Indenture, under the provisions of which the City's in- terest in the Loan Agreement and the payments thereunder will be pledged to the Trustee as security for the pay- ment of principal and interest on the Bonds; (g) the loan payments contained in the Loan Agree- ment are fixed, and required to be revised from time to time as necessary, so as-to produce income and revenue sufficient to provide for prompt payment of principal of and interest on all Bonds issued under the Indenture when due, and the Loan Agreement also provides that the Company is required to pay all expenses of the opera- tion and maintenance of the Project including, but 'with- out limitation, adequate insurance thereon and all taxes and special assessments levied upon or with respect to the Project and payable during the term of the Loan Agreement; (h) under the provisions of Minnesota Statutes, Section 474.10, and as provided in the Loan Agreement and Indenture, the Bonds are not to be payable from nor charged upon any funds of the City other than the rev- enue 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 power of the City to pay any of the Bonds or the interest thereon, nor to enforce payment thereof against any property of the City; the Bonds shall not constitute a charge, lien or encumbrance, legal or equit- able, upon any property of the City; each Bond issued under the Indenture shall recite that the Bond, includ- ing interest thereon, is payable solely from the revenue pledged to the payment thereof and shall contain a re- cital that the Bonds are issued pursuant to the Act, which recital, in accordance with the provisions of Sec- tion 474.08 of the Act shall be conclusive evidence of their • validity and of the regularity of their issuance; and no Bond shall constitute a debt of the City within the meaning of any constitutional or statutory limitation. -3- (il the execution and delivery of the documents . referred to in Section 1 of this resolution and the Bonds will not conflict with, or constitute on the part of the City a breach of, or a default under, any exist- ing resolution, ordinance, regulation, law or agreement, indenture, mortgage, lease or other instrument to which the City is subject or is a party or by which it is bound; 01 no litigation is pending, or, to the best knowledge of the members of this Council, threatened, against the City questioning the organization or bound- aries of the City or the right of any officer of the City to hold his or her office, or in any manner ques- tioning the right and power of the City to execute and deliver the Bonds, or otherwise questioning the validity of the Bonds or the execution, delivery or validity of the documents referred to in Section 1 of this resolu- tion, or questioning the appropriation of revenues to payment of the Bonds or the right of the City to loan the proceeds of the Bonds to the Company; and . MI all acts and things required under the consti- tution and laws of the State of Minnesota to make the Bonds and the documents referred to in Section 1 of this resolution to which the City is a party the valid and binding obligations of the City in accordance with their terms have been done; provided, however, that this finding is made solely for the purpose of estopping'the City from denying the validity of the Bonds, or any of the documents referred to in Section 1 of this resolu- tion to which the City is a party, by reason of the exis- tence of any facts contrary to this finding. 3. The documents referred to in Section 1 of this res- olution are approved. The Mayor and City Manager are hereby auth- orized and directed in the name and on behalf of the City, to exe- cute such of the documents referred to in Section 1 of this resoi• lution to which the City isa party,and such other documents, in- struments or certificates as are deemed necessary or desirable by the City Attorney and bond counsel. Copies of all documents shall be delivered, filed and recorded as provided therein. 4. In anticipation of the collection of payments under the Loan Agreement, the City shall proceed forthwith to issue its Industrial Development Revenue Bonds (CPT Corporation Project) Ser- ies 1979, dated as of the date of delivery thereof to the Original Purchasers, in the principal amount of $1,000,000, in the form and upon the terms set forth in the Indenture, which terms are for this purpose incorporated in this resolution and made a part here- of. The Series 1979 Bonds are the only bonds of the City auth- orized and to be issued for financing costs of the Project. The proposals of the Original Purchasers to purchase such Bondi at a price of par, upon the terms and conditions set forth in the -4- Subscription Agreements are hereby found and determined to be rea- sonable and are hereby accepted. The Mayor and City Manager are authorized and directed to prepare and execute the Bonds as pre- scribed in the Indenture and to deliver them to the Trustee, to- gether with a certified copy of this resolution and other docu- ments required by the Indenture, for authentication and delivery to the Original Purchasers. S. The Mayor and City Manager and other officers of the City are authorized and directed to prepare and furnish to the Original Purchasers of the Bonds, when issued, certified copies of all proceedings and records of the City relating to the Bonds, and such other affidavits and certificates an may be required to show 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 here - tofore furnished, shall constitute representations of the City as to the truth of all statements contained therein. 6. The approval hereby given to the Arai-Long documents referred to above includes an approval of such additiOnal details therein as may be necessary and appropriate and auoh modifications thereto, deletions therefrom and additinnn thereto as may be nec- essary and appropriate, and are approved by the City Attorney prior to the execution of the documents- The execution of any instru- ment by the appropriate officer or officers of the City herein authorized shall be conclusive evidence of the approval of such documents in accordance with the terms hereof. In the abaenoe or disability of the Mayor, any of the documents euthorized by this resolution to be executed, shall be executed by the acting Meyer , and in the absence of the City Manager, by suOh officer of the City who, in the opinion of the City Attorney, may execute such documents. Mayor Attest: City Ctiik iol Member introduced the following and moved its adoption: Resolution No. .21z RESOLUTION AUTHORIZING THE SALE AND ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT TO FINANCE A PROJECT THEREUNDER, SECURED BY PAYMENTS TO BE RECEIVED PURSUANT TO A LOAN AGREEMENT AND A PLEDGE AND ASSIGNMENT OF THE CITY'S INTEREST IN THE LOAN AGREEMENT AND PAYMENTS THEREUNDER TO A TRUSTEE, AND AUTHORIZING THE EXECUTION OF DOCUMENTS BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota (the City), as follows: 1. It has been proposed that the City issue its Industrial Development Revenue Bonds (Super Valu Stores, /nu. Project), Series 1979 (the Bonds), in the principal amount of 81,000,000, and loan the proceeds of the Bonds to Super Valu Stores, Inc., a Delaware corporation (the Company), which will use the proceeds to provide funds to pay a portion of the cost of acquisition, construction and equipping of certain properties to be used by the Company for the Company's executive office building (the Project) located in the City. The Council gave approval to the proposal by Resolution No. 78-76, and pursuant to that resolution, the following documents relating to the Project have been submitted to the Council and are now, or shall be placed, on file in the office of the City Clerk: (a) Loan Agreement, dated as of January 1, 1979, proposed to be made and entered into between the City and the Company; (b) Indenture of Trust (the Indenture), dated as of January 1, 1979, proposed to be made and entered into between the City and the Northwestern National Bank of Minneapolis, as trustee (the Trustee); and (c) Underwriting Agreement, among the City, the Company and Goldman, Sachs & Co. (the Original Purchaser). 2. It is hereby found, determined and declared that: (a) the City is duly organized and existing under the Constitution and laws of the State of Minnesota and is autherized to. issue industrial development revenue bonds in accordance with Minnesota Statutes, Chapter 474, as amended (the Act); (b) based upon representations made to the-City as - to the nature of the Project and the anticipated use of the proceeds of such Bonds, the properties described in the Loan 109 Agreement and the Indenture referred to in paragraph 1 constitute a project authorized by the Municipal Industrial Development Act, Minnesota Statutes, Chapter 474, as amended (the "Act"); (c) the purpose of the Project, as defined in the Loan Agreement and Indenture, is and the effect thereof will be to promote the public welfare by the attraction, encourage- ment, retention and development of economically sound industry .and commerce; the development and retention of industry to use the available resources of the community in order to retain the benefit of its existing investment in educational and pub- lic service facilities, by halting the movement of talented, educated personnel of mature age to other areas and thus pre- serving the economic and human resources needed as a base for providing governmental services and facilities; more intensive development of land available in the community to provide an adequate tax base to finance the increase in the amount and cost of governmental services; and a better distribution of tax burdens between industrial or commercial properties and residential properties within the City; (d) by letter dated June 15, 1978, the Commissioner of Securities of the State of Minnesota has approved the Project as required by Section 474.01, Subdivision 7 of the Act; (e) the financing of the Project, the issuance and sale of the Bonds, the execution and delivery of the Loan Agreement, the Underwriting Agreement and the Indenture, and the performance of all covenants and agreements of the City contained in the Loan Agreement, the Underwriting Agreement and Indenture, and the performance of all other acts and things required under the Constitution and laws of the State of Minnesota to make the Loan Agreement, the Underwriting Agreement, the Indenture and the Bonds valid and binding obligations of the City in accordance with their terms, are • authorized by the Act; (f) it is desirable that a series of Industrial Development Revenue Bonds in the principal amount of $1,000,000 be issued by the City upon the terms set forth in the Indenture, under the provisions of which the City's interest in the Loan Agreement and the payments thereunder will be pledged to the Trustee as security for the payment of principal and interest on the Bonds; (g) the loan payments contained in the Loan Agreement are fixed, and required to be revised from time to time as necessary, so as to produce income and revenue sufficient to provide for prompt payment of principal of and interest on all Bonds issued under the Indenture when due, and the Loan Agreement also provides that the Company is required to pay all expenses of the operation and maintenance of the Project including, but without limitation, adequate insurance thereon and all taxes and special assessments levied upon or with respect to the Project and payable during the term of the Loan Agreement; -2- (h) under the provisions of Minnesota Statutes, Section 474.10, and as provided in the Loan Agreement and Indenture, the Bonds are not to be payable from nor charged upon any funds of the City other than 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 power of the City to pay any of the Bonds or the interest thereon, nor to enforce payment thereof against any property of the City; the Bonds shall not constitute A charge, lien or encumbrance, legal or equitable, upon any property of the City; each Bond issued under the Indenture shall recite that the Bond, including interest thereon, is payable solely from the revenue pledged to the payment thereof; no Bond shall constitute a debt of the City within the meaning of any constitutional or statutory limitation; (i) the execution and delivery of the Loan Agreement, the Indenture, the Underwriting Agreement and the Bonds will not conflict with, or constitute on the part of the City a breach of, or a default under, any existing agreement, indenture, mortgage, lease or other instrument to which the City is subject or is a party or by which it is bound; (j) no litigation is pending, or, to the best knowledge of the members of this Council, threatened, against the City questioning the organization or boundaries of the City or the right of any officer of the City to hold his or her office, or in any manner questioning the right and power of the City to execute and deliver the Bonds, or otherwise questioning the validity of the Bonds or the execution, delivery or validity of the Loan Agreement, the Indenture or the Underwriting Agreement, or questioning the appropriation of revenues to payment of the Bonds or the right of the City to loan the proceeds of the Bonds to the Company; and (k) all acts and things required under the constitution . and laws of the State of Minnesota to make the Bonds, the Loan Agreement, the Indenture and the Underwriting Agreement the valid and binding obligations of the City in accordance with their terms have been done; provided, however, that this finding is made solely for the purpose of estopping the City from denying the validity of the Bonds, the Loan Agreement, the Indenture or the Underwriting Agreement by reason of the existence of any facts contrary to this finding. 3. The Loan Agreement, Indenture and Underwriting Agreement are approved. The Mayor and City Manager are hereby authorized and directed in the name and on behalf of the City, to execute the Loan Agreement, Indenture and Underwriting Agreement, and such other documents, instruments or certificates as are deemed necessary or desirable by the City Attorney and bond counsel. Copies of all documents shall be delivered, filed and recorded as provided therein. -3- II I 4. In anticipation of the collection of payments under the Loan Agreement, the City shall proceed forthwith to issue its Bonds, denominated Industrial Development Revenue Bonds (Super Valu Stores, Inc. Project), Series 1979, dated as of January 1, 1979, in the principal amount of $1,000,000, in the form and the terms set forth in the Indenture, which terms are for this purpose incorporated in this resolution and made a part hereof. The proposal of the Original Purchaser to purchase the Bonds at a price of par plus accrued interest, upon the terms and conditions set forth in the Underwriting Agreement is hereby found and determined to be reasonable and is hereby accepted. The Mayor, City Clerk and City Manager are authorized and directed to prepare and execute the Bonds as prescribed in the Indenture and to deliver them to the Trustee, together with a certified copy of this resolution and other documents required by the Indenture, for authentication and delivery to the Original Purchaser. Pursuant to Minnesota Statutes, Section 475.55, Subdivision 1, the Trustee is hereby designated authenticating agent for the Bonds. 5. The Mayor, City Clerk and City Manager and other officers of the City are authorized and directed to prepare and furnish to the Original Purchaser of the Bond*, when issued, certified copies of all proceedings and records of the City relating to the Bonds, and such other affidavits and certificates is may be required to show 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. 6. The approval hereby given to the various documents referred to above includes an approval of such additional de- tails therein as may be necessary and appropriate and such modi- fications thereto, deletions therefrom and additions thereto as may be necessary and appropriate and are approved by the City Attorney prior to the execution of the documents. The execution of any instrument by the appropriate officer or officers of the City herein authorized shall be conclusive evidence of the approval of such documents in accordance with the terms hereof. In the absence or disability of the Mayor, any of the documents authorized by this resolution to be executed, shall be executed by the acting Mayor, and in the absence of the City Manager or City Clerk, by such officer or officers of the City who, in the opinion of the City Attorney, may execute such documents. Mayor Attest: City Clerk RESOLUTION OF THE CITY OF EDEN PRAIRIE PROVIDING FOR THE ISSUANCE AND MAKING or A COMMERCIAL DEVELOPMENT REVENUE NOTE PURSUANT TO CHAPTER 474, MINNESOTA STATUTES, THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, TO PROVIDE FUNDS TO BE RELOANED TO KENSINGTON INVESTMENTS, INC., A MINNESOTA CORPORATION, AND NEIL A. BRASTAD, FOR A PROJECT AS DEFINED IN MINNESOTA STATUTES, SECTION 474.02, SUBDIVISION la. AND APPROVING LOAN AGREEMENT, CONSTRUCTION LOAN AGREEMENT, MORTGAGE AND SECURITY AGREEMENT, GUARANTEE AGREEMENT, ASSIGNMENT OF RENTS AND LEASES, AND BUY-SELL AGREEMENT. RESOLVED, BY THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE: 1. Statutory Powers. Pursuant to Chapter 474, Minne- sota Statutes, as amended, ("Act"), the City is authorized to issue, sell, and Make its revenue bond's ("CoMmerdial Development Revenue Note"), in anticipation of the col- lection of revenues for authorized projects, to finance in whole or in part, the cost of construction of authorized projects and to enter into such contracts and agreements which it may deem proper and feasible for or concerning the construction and financing of an authorized project. 2. Issuance of Commercial Development Revenue Note. The City shall issue, sell and make a Commercial Development Revenue Note, Series 1979 (Kensington Investments., Inc. and Neil A. Brasted, Project) substantially in the form set .forth in Exhibit "A" attached hereto and made a part hereof ("Note"), pursuant to the Act and shall reloan the proceeds of the Note to Kensington Investments, 'Inc., a Minnesota corporation, and Neil A. Brasted (hereinafter collectively referred to as "Borrower"), to pay the cost of construction and installation of an automotive parts office, manufacturing and warehouse facility on the real property described in Exhibit "B" attached hereto and made a part hereof (said improvements and real property are hereinafter referred to as the "Project"). 3. Purposes and Findings. The City Council hereby finds and states that: (a) The Project will promote, attract, encourage and develop economically sound industry and commerce, will help to prevent the emergence of blighted and marginal lands and areas of chronic unemployment, will assist in pre- venting economic deterioration of the area, will further put to use available resources in the community including the existing investment of the community in educational and publicService facilities, will help stop -the movement of talented, educated personnel of mature age to other areas, and will result in an increase to the tax base of the City, County and School District in which the Project is located. (b) The Commissioner of Securities for the State of Minnesota has given his approval to the Project by letter dated September 25, 1978, to Mayor Penzel. (c) The issuance, making and sale of the Note, the execution and delivery of the collateral documents as described in Paragraph 4 below .-•. which the City is a party. to and all other acts of the City of Eden Prairie in connec- tion therewith to make said documents valid and binding obligations of the City of Eden Prairie in accordance with their respective terms are authorized by the Act. (d) Under the terms of the Note and the collat- eral documents described in Paragraph 4 below and as provided in Minnesota Statutes 5474.10, the Note shall not be payable from nor charged upon any funds other than the sums payable by the Borrower pursuant to the Loan Agreement which are pledged to the payment thereof and the City is not subject to any liability thereon. No holder or holders of the Note shall ever have the right to compel any exercise of the taxing power of the City to pay the Note or the interest thereon, nor to enforce payment thereof against any property of the City. The Note shall not constitute a charge, lien or encumbrance, legal or equit- able,upon any property of the City. The Note shal) recite in substance that the Note, including interest thereon, is payable solely from the revenue of the Loan Agreement pledged to the payment thereof. The Note shall further recite that it shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 11q -2- 4. Collateral Documents. The following proposed documents relative to the Note and the Project have been submitted to the City: (a) Loan Agreement between the City and Borrower, a copy of which is attached hereto as Exhibit "C" and made a part hereof, whereby the City .agrees to reloan the proceeds of the Note to the Borrower; (b) Mortgage and Security Agreement, a copy of which is attached hereto as Exhibit "D" and made a part hereof, whereby the Borrower grants to First National Bank of Minneapolis a mortgage lien on the Project as security for the Note; (c) Assignment of Rents and Leases, a copy.of which is attached hereto as Exhibit "E" and made a part hereof, whereby the Borrower assigns all of the rents and leases from all or any part of the Project as additional security for the Note; (d) Construction Loan Agreement, a copy of which is attached hereto as Exhibit "F" and made a part hereof, betweer Borrower, First National Bank of Minneapolis and the City which sets forth the terms of disbursing the proceeds of the Note; (e) Guaranty Agreement by Thomas W. Noble to First National Bank of Minneapolis, a copy of which is attached hereto as Exhibit "G° and made a part hereof, whereby Thomas W. Noble guarantees to First National Bank of Minne- apolis, among other things, that the Borrower shall fully and punctually pay, as and when due, the indebtedness evidenced by the Note and Borrower's full and punctual compliance with all of the terms, covenants, and condi- tions of the Loan Agreement, Mortgage and Security Agreement, and Assignment of Rents and Leases and all other documents defined in the Loan Agreement; (f) Buy-Sell Agreement between First National Bank of Minneapolis, Borrower and Northwestern National Life Insurance Company, a copy of which is attached hereto as Exhibit "H" and made a part hereof, whereby Northwestern 115 National Life Insurance Company agrees to purchase the Note upon completion of the Project; (g) Subordination Agreement, a copy of which is attached hereto as Exhibit "I" and made a . part hereof, whereby Herleiv Belle and Borghild Belle subordinate all of their interest in the Project to the Mortgage and Security Agreement and the Assignment of Rents and Leases. All of which documents are sometimes referred to herein as the "Collateral Documents". The Mortgage and Security Agreement, Assignment of Rents and Leases, Buy-Sell Agreement and Guaranty Agreement by Thomas W. Noble are not to be executed by the City of Eden Prairie. The form of the Note and the Collateral Documents attached hereto are hereby approved. The City shall execute the Note, Loan Agreement and Construction Loan Agreement, all of which shall be executed in the name of and on behalf of the City by the Mayor and City Clerk, but the Loan Agreement and Construction Loan Agreement only upon execution thereof by the Borrower. The Note, Loan Agreement and Construction Loan Agreement shall be substantially in the form attached hereto, with all such changes therein, not inconsistent with the Act or other law, as may be approved by the officers executing same on behalf of the City, which approval shall be conclusively evidenced by their execution thereof. Copies of the Note and the Collateral Documents shall be delivered and filed or recorded as may be required. Collateral Documents which do not require execution by the City may be revised as approved by the Borrower. 5. Assignment of Loan Agreement. The City shall assign its rights under the Loan Agreement to First National Bank of Minneapolis, and does hereby consent to the reas- signment of such rights by First National Bank of Minne- apolis to Northwestern Natiohal Life Insurance Company or to any subsequent holder of the Note. However, such assignment and consent shall not operate to limit or otherwise affect the following covenants running to the City from Borrower contained within said Loan Agreement: Sections 2.02; 4.02; 4.04; 4.05; 4.07; 4.08; 4.09; and 7.06. The assignment of the Loan Agreement shall also be executed in the name of and on behalf of the City by the Mayor and City Clerk in sub- stantially the form attached hereto as Exhibit "I", with all such changes as may be approved by the officers executing same, which are not inconsistent with the Act or other laws, which approval shall be conclusively evidenced by their execution thereof. Ii t -4- 6. Disbursement. First National Bank of Minneapolis is hereby authorized and directed to disburse the proceeds of the Note directly to Borrower and such other parties as may be entitled to payment for Project costs as defined in the Loan Agreement, upon receipt of such supporting docu- mentation and compliance with such conditions and require- ments as First National Bank of Minneapolis may deem reason- ably necessary. All such sums disbursed directly to or for the benefit of Borrower pursuant to the Loan Agreement and Construction Loan Agreement shall constitute sums disbursed pursuant to the Note, shall constitute part of the indebted- ness evidenced thereby, and shall be deemed advanced to or for the benefit of the City. 7. Execution of the Note. The City shall issue and make its Commercial Development Revenue Note, Series 1978 (Kensington Investments, Inc. and Neil A. Brasted, Project), to be dated the date of delivery, in the principal amount of One Million Dollars (81,000,000.00) substantially in the form attached hereto as Exhibit "A". The Note shall be executed by the Mayor and the City Clerk and the official seal of the City shall be affixed thereto.- When executed the Note shall be delivered to First National Bank of Min- neapolis, but only upon receipt of the signed legal opinion of Thompson, Nielsen, Klaverkamp & James, P.A., as to the validity and enforceability of the Note, Loan Agreement, and Construction Loan Agreement and that the City has no pecuniary liability thereon and upon receipt by the City of original counterparts of all Documents to which it is a party. The Note shall contain a recital that it is issued pursuant to the Act, and such recital shall be conclusive evidence of . the validity and regularity of the issuance. 8. Amendment of Bond Resolution. Without the prior written consent of First National Bank of Minneapolis, Northwestern National Life Insurance Company and the Bor- rower, City shall not change, modify, alter, or terminate this Resolution. 9. Certified Copies. The Mayor and City Clerk and other City officers are authorized and directed to prepare and furnish First National Bank of Minneapolis, Northwestern National Life Insurance Company, Borrower and any subsequent holder of the Note, certified copies of all City proceedings and records relative to the Note and such affidavits or certificates as may be required to show the facts appearing from the City records, and all such certified copies, certi- ficates and affidavits, including any previously furnished, shall constitute representations of the City as to the truth and accuracy of all statements contained therein. In -5- • 20. Registration. Upon written request from the holder of the Note, the City Clerk, an Bond Register, shall provide for the registration of transfer or exchange of the Note. In the event of registration, principal and interest due on the Note shall be payable to the registered holder or assigns thereof. • 11. 'City Expense. All costs and expenses Incurred by or on behalf of the City in connection with issuing and making the Note shall be the e010 obligation and responsi- bility Of the Borrower, including but not limited to legal Lees. IGNATURB APPROVUOI ATPEST: tity clef* TO: Mayor and Council THRU: Roger Ulstad FROM: John Frane DATE: 'January 12, 1979 RE: Request for MIDB approval for Eden Hills Company - $1,600,000. The Eden Hills, a partnership consisting of Mr. William J. Bartolic, Mr. Gary E. Nordness. Mr. Howard L. Rekstad, Mr. Kenneth J. Bureau. and Mr. E. Ted Yoch, have applied to the city for preliminary approval for $1,600,000 in I. R. Bonds to be issued in the form of a mortgage. They propose to build on 86,532 square feet office/warehouse facility on 7 acres at the south end of puller Road. The property is zoned I-General which is proper for the use intended. We have personal financial statements from the partners which indicate a substantial net worth including interests in siarlliar type projects. Resolution #79-19 is attached for your consideration. - 8 .....,a."%g ri p l _ IllrE, a : F. 'ficuall: 4,1111110 Id mP5m1, niiiiMiiisid. inglik-471,......:1 t suiiiiim gm EN et 2 ___ mankfir, El talori. uer IWNITI, ig OA nil I al I givr.,#.4 A P UB TO: All Applicants . FROM: City of Eden Prairie, Minnesota RE: Industrial Development Revenue Bonds All applicants for Industrial Development Revenue Sends must submit the following material in duplicate to the City Clerk. .1. The attached: application emvested in total. 2. A letter from the apirlicant agreeing to pay all the City's costs incurred with respect to this application and/or the issuance of bonds pursuant thereto, whether or not bonds are issued. 3. Proposed resolution giving preliminary approval to the project, approved as to foto by the-City'AttorneY. 4. Proposed application to Coemissioner of Securities alone with a proposed statement of the purpose of the project. 5. letter from purchaser of bonds or note feither underwriter or private placement purchaser) representing to the City that it has evaluated the financial ability of the applicant and it is of the opiniorethat the applicant has the financial and manageoent capability to fulfill the obligations to be imposed by the proposed transectioo. 6. Letter from :toed attorney that he is prepared to grant a fuvorehle prelieinary opinion relating to the qualification of the project under the Minnesota Munieipal Industrial Developeent Art, Minnesota Statutes, Chapter 474 as amended. 7. All documents east be presented to the City Attorney at lceet two weels bef:.re the council reetine at which approval is rxVeSkr^d end presented to the city Clerk at least one week prior to that date. eeplicNnts are advir,.; teat the oeerative doze: .nts of the heed traesaction ;nest include the following: 1. A statement from the underwriter holding the City, its officials and employees, harmless of any error, misstatement or omission in any official statement. 2. Applicant shall ie3emnify the City, its officers and employees from all liability, darNees or costs incurred in connection with the ite-eakeee of the bonds. • 3. The opinion of bes.d counsel shall include a reezesent- ation that no seeistretion is required uneer the 3933 Securities Act, the 1924 St•ClnitiPS Fnchenee Act, the 1939 Trust Tralentere Act, or Any Blue Sky LW. or if such reeistretien or qualification is seevi2ed that it Las teen dune in full compliance with the tefemn4red art. ngsa 4. The opinion of bond counsel must approve as correctly stated, without material omission, any characterizatio n of the legal proceedings contained in the official statement. 5. The ooinions of bond counsel and applicant's counsel s h a l l be addressed to include the City. 6. In the case of a private placement, the purchaser must warrant that no public sale or offer of the bonds or notes will be made. The City will rake only the following representations, warranties and covenants in the operative documents to t h e bond transactions a. The City will covenant that it will cause prompt payment of principle and interest on the bonds to be rade solely from the source specified in the bond transaction (i.e. Loan Flreament). b. The City will covenant that it will faithfully perform all covenants contained in the operative documents and that it is duly authorized pursuant to the Constitution and laws of . the State to participate in the bond transaction. c. The City will covenant that it will execute such instruments of further assurance as a proposed trustee may reasonably require for the better assuring, transferring, conveying, pledeing, assigning, and confirming to the trustee the rights assigned in any of the operative documenta. d. The lity will represent that the project has been approved by the Commissioner of Securities of the State of Minnesota. e. The City will represent that the issuance of the bonds and the performance of the agreements . pursuant thereto have been duly ,authorized by the City. f. The City will tepresent that to finance the cest or pert of the cost of the project, the City prc,‹,cs to irs .ze its bends as 1.s.videcl for in the c.perative documents to the transaction. The applicant is responsible for submission of all nece e s a r y documents to the State Commissioner of Securities for his approval. if a public offering of the bonds is contemp)ated, the underwriter oust submit the additional follevinaiaferration: 1. The underwriter must warrant and represent to the City that it has examined the financial condition of tbe applicant and that there will exist a 'Ainimum ccA,”rage". of 2X the principle and interest due earned annually the previous year before taxes. for vxaeple, a $1,l00, 0 0 0 issue requires appreximately 5125,040 in anneal prieciple and interest 1.,aymt,nts. Therefore, $250,000 must have been earned before taxes by the mynpany the previous year. 2. The underwriter must warrant and represent that the • am:41cent possesses a demonstrated record of yearly inns-eases In earnings prior to taxes. 3. The underwriter meet rrant and represent to the City • that the appreised wan, of any tmi/ding %/hit% Sc part of the project, based on fair market rental value, is equal to or exceeds the total amount of bands end interest due. CITI OF EDEN PRAIRIE, amrsom Application for Industrial Developmmnt Bond Project Financing 1. Applicant: a. Business same - ampany b. Business Address - 2432 Prior Avanue North Roseville, Minnesota 55113 C. Business Form tcorporation partnership, sole proprietorship, etc./ -*Limited Partnership ; d. State of Incorporation or oTganization - Nft nesota e. Authorized Representative - &Meth J. Bureau/My f. Phone - 636-8050 . 2. NAME(S) AND ADDRFSSES OP MAJOR STOCANOLDERS OR PRINCIPALS: E. Ted Yoch Kenneth 3. Bureau William 3. Bartolic - Howard L. Rekstad Gary E. Nordness AAA" I. SIVE BRIEF DESCEIY130X OF EXTURE OP POSILESS, PRINC1Fr.L 1 ,4`70iTS, ETC: Real Estate Development C. CFAFTIOM OF I.FO:ECT a. Location and intended use: Fuller Road. 7.0228 acres of land, 86,02 square foot building. b. Present Ownership of project site: Andrei Justus c. Names and address of architect, enginier, and aeneral contractor: Architect: Douglas AL 14,12, 1002 Excelsior Ave. W., Hopkins, NN 55343 S. ESTIMATED PROJECT COST /OR: Land Puilding Eguipvcnt Other Total _1,400,000 - - - — $ 1,770,500 (4. cont.) General Contractor: Bartolic Construction, 2432 Prior Ave. N. ROseville,NN5L13. Engineers: Foehringer Engineering Electriesl. • i Pischer-EngineerinA14asonry. it t4 E • City of Eden Prairie. Minnesota Applicstion for Ino.ustrial Development Bond P:rdoct Financing.. Page Two S. BOND ISSUE - a. Amount of proposed bond issue 7 $1,600,000 b. 'Proposed date of sale of bond - Nardi I, 1979 c. Length of bond issue and proposed maturities - 25 years d. Proposed original purchaser of bonds - Institutional purchaser . Nana and address of suggested trustee - InatitatIonuould act as e. its DAM trustee. .f. Copy of any agreement between applicant end original purchaser - I Cannot be obtained until prelimitart resolution is received by Iri g. Describe Any ,interia financing sought or available Cannot be -Obta until penmen levier cannitts. b. Describe nature and amount of anikgrasent financing in addition to bond financing - 7. BUSINESS PROFILE - a. Axe you located in the City of Eden Prairie? No b. NuMber of employees in Eden Prairie? i. ?afore this project? - 0 - ii. After this recject? 60. c. Approx;:ate annual sales - d d. Length of time in business 12 years in Eden Prairie - 0 - e. no you have plants in other 2ocationenUS If so. she/e 7 Roseville,: I. Are you engaged in international trade? No 8 . MBES AND ADDRES1ES DP: a. Underwriter - Juran &Moody, inc. - Res Randy S. Nelson Roger K. Winges 114 EL 7th St. St. Paul, la 55101 Jr) City of Edon Prairie. ninnesota Application (el Industrial Development Bond Project Financing . Page Three i. Ras oreliminary financial analysis by underwriter regulred by City policy been completed and attached to this application? Final appraisal work.tobe.completed _ ii.IslInuervrater .s ienieWaritent to commit attached institutipnal er to this application? Letter is unobtan'table until resolutioa is passed. WO= that application is incomplete if either of the above is missing) Bond Counsel Dorsey, Windhors'c, Hannaford, Whitney & Ha1Lsday John Kirby, 1468 W. First National Bank Building, St. Paul, IN 55101 c. Corporate Counsel - Howard Stacker Northern Federal Building, St. Paul, MN 55101, d. Accountant - Baskins & Sells 1360 Nortliqestern National Bank Building St. Paul, tia 55101 9. WHAT IS YOUR TARGET DATE TOR: a. Construction start - HIT& 1, 1979 b. Construction completion - Deceraber .1, 1979 itt The undersigned applicant understands that the appreval of diee/precal by the City of Eden Prairie for industrial Develop-tent toed Financing does not expressry or inpliedly constitute any approval,. variance, or waiver of any provision or regeireeent relating to any toning, building. or other rule or ordinance or the City of Fawn Prairie, or any Other lee applicable to the property included in this prOect. FOX FURTHER IIIPCSMAT105. CONTACT' 11. Easing - to be covisted by the city planning akpart....nt. a. Property is coned - b. PrefInt reningaZ iis net) correct for the intended use. b. !ftLM4 fiV__ c. Peeing epplication received on uhich is cratect for the intended user. d. Variances required- HMV.. taaregEP RESOLUTION NO. RESOLUTION RELATING TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; GIVING PRELIMINARY APPROVAL TO THE PROJECT; REFERRING THE PROPOSAL TO THE COMMISSIONER OF SECURITIES ' FOR APPROVAL; AND AUTHORIZING EXECUTION OF A MEMORANDUM OF AGREEMENT AND PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota (the City) as follows; 1.1 The welfare of the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental acts; the development of industry to use available resources of the community in order to retain the benefit of its existing investment in educational and public service facilities; and the more intensive development of land available in the area to provide an adequate tax base to finance the increase in the amount and cost of governmental services provided by the City, the County and the School District in which the City is located. 1.2 Eden Hills Company, a Minnesota partnership (the Company) is considering acquisition of approximately 7 acres of land within the City and construction and equipping thereon of an 86,532 square foot office and warehouse facility (all such property hereinafter referred to as the Project), to be leased by the Company to various business enterprises. 1.3 The existence of the Project would add to the tax base of the City, Hennepin County and the school district in which the City is located and would provide increased oppor- tunities for employment for residents of the City and surrounding area. 1.4 This Council has been advised by a representative of the Company that with the aid of municipal borrowing, and its resulting low borrowing cost, the economic feasibility of undertaking the Project is significantly improved. 1.5 This Council has also been advised by a repre- sentative of Juran & Moody, Inc., of St. Paul, Minnesota, invest- ment bankers and dealers in municipal bonds, that on the basis of information submitted to them and their discussions with representatives of the Company and potential buyers of tax-exempt obligations, one or more mortgage revenue notes of the City could be issued and sold upon favorable rates and terms to finance the Project. 1.6. The City is authorized by Minnesota Statutes, Chapter 474, as amended (the Act), to issue its revenue bonds or notes to finance capital projects consisting of properties used and useful in connection with a revenue-producing enter- prise, such as that of the Company, and the issuance of such notes by the City would be a substantial inducement to the Company to construct the Project. 2. On the basis of information given the City to date, it appears that it would be in the best interest of the City to issue one or more mortgage revenue notes under the pro- . visions of the Act to finance the cost of the Project which is presently estimated to be approximately $1,600,000. 3. The Project is hereby given preliminary approval by the City and the issuance of notes for such purpose and in an amount up to $1,600,000 approved, subject to the approval of the Project by the Commissioner of Securities and to the mutual agreement of this Council, the Company and the initial purchasers of the notes as to the details of the notes and provisions for their payment. 71n all events, it is understood, however, that the notes of the City shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the Project, and any note, when, as and if issued, shall recite in substance that the note, including interest thereon, is payable solely from the revenues received from the Project and property pledged to the payment thereof, and shall not constitute a debt of the City. The adoption of this Resolution does not constitute a guarantee or .a firm commitment that the City will issue the notes as requested by the Company. The City retains the right in its sole discretion to withdraw from participation, and accordingly not issue the notes, should the City at any time prior to issuance thereof determine that it is in the best interest of the City not to issue the notes or should the parties to the transaction be unable to reach agreement as to the terms and conditiams .z. of any documents required for the transaction. 4. The form of Memorandum of Agreement relating to the issuance of the notes to finance the cost of the Project is hereby approved and the Mayor and City Clerk are hereby authorized and directed to execute the Memorandum of Agreement on behalf of the City. 5. In accordance with Section 474.01, Subdivision 7 of the Act, the Mayor is hereby authorized and directed to sub- mit an Application for the Project to the Commissioner of Secu- rities for his approval of the Project. The Mayor,' City Clerk, City Attorney and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with any pre4 liminary information be may need for this purpose, and the City Attorney is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Proieot, if it is approved by the Commissioner. Attest: City Clerk -- TO: Mayor and Council THRO: Roger Olstad FROM:. John Franc DATE: January 12, 1179 RE: 144.0.8.'s for NenardS 000,000 Renard Inc. is asking for City appruv 1 for Industrial Revenue Bond financing of their Eden Prairie. facility. The bonds Or siortrage will be placed with a single purchaker, ATT . doctsnentation required of Mehards has net been retiliVed as of today, however the City cciuld adopt a resolutiOn -nontingent:dpOn riktiellt:tif the additional required 'documents.. Resolution 19-20 is .wttaufted for your consideratio RESOLUTION RELATING TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; GIVING PRELIMINARY APPROVAL TO THE PROJECT; REFERRING THE PROPOSAL TO THE COMMISSIONER OF SECURITIES FOR APPROVAL; AND AUTHORIZING EXECUTION OF A PRELIMINARY AGREFMENT AND PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota (the "City"), as follows: Section 1. Policy and Purpose. 1.01. The welfare of the residents of the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental acts; the encouragement of employment opportunities for citizens of the State; the development of industry to use available resources'of the State in order to retain the benefit of its existing investment in educational and public service facilities; and the more intensive development of land available in metropolitan areas to provide an adequate tax base to finance the increase in the amount and cost of governmental services required to be provided by the State and its local government units, including the City, Hennepin County and the School District in which the City is located. 1.02. For the purposes specified in paragraph 1.01 the City is authorized by the Municipal Industrial Development Act, Minnesota Statutes, Chapter 474 (the "Art"), to acquire and lease real and per- sonal property for use by a revenue-producing enterprise, or to loan funds directly to the enterprise to be used for such acquisition, said funds to be raised through the issuance of revenue obligations of the City, the interest on which is exempt from federal and, under certain conditions, State income taxes. 1.03. Menard, Inc., a corporation organized under the laws of the State of Wisconsin, authorized to do business in the State of Minnesota (the "Corporation"), desires to undertake a project in the City, at a total cost presently estimated at approximately $3,000,000.00 comprising the acquisition of land and the design, construction and equipment thereon of buildings comprising approximately 65,000 sq. ft. to be used for business and warehousing activities (the "Project"). The Corporation proposes to immediately acquire all of the necessary land and to construct the buildings above referred to. 1.04. The Project would increase the level of economic activity in the City, would increase the tax base of the City, Hennepin County and the School District, and would provide additional employment oppor- tunities for residents of the City and surrounding area. 1.05. The Corporation has advised the City that conventional commercial financing for the cost of the Project is available only on a limited basis and at interest rates which decrease the economic feasi- bility of the Project; and that tax exempt revenue obligation financing pursuant to the Act would substantially increase the economic feasi- bility of the Project, and would be a significant inducement to the construction of the Project in the City by the Corporation. 1.06. The Corporation has proposed that the City issue its revenue obligations pursuant to the Act to finance up to $3,000,000.00 of the cost of the Project, and has also advised the City that a financial institution (the "Purchaser"), has tentatively agreed to purchase revenue obligations of the City issued in such amount for such purpose. The obligations are to be issued in one series. Section 2. Authorization. 2.01. Subject to approval of the Project by the Commissioner of Securities of the State of Minnesota as required by law, and subject to the mutual agreement of the City, Lbe Corporation and the Purchaser as to the details of the loan agreement, a mortgage and security agreement and other documents necessary to evidence and effect the financing of the Project and the issuance of the revenue obligations, the issuance of revenue obligations of the City pursuant to the Act in an amount not exceeding $3,000,000.00 is authorized to finance a portion of the cost of the Project. 2.02. The Mayor and City Manager are authorized and directed to submit the Project to the Commissioner of Securities for his approval as tending to further the purposes and policies of the Act, and to cause such information concerning the Project to be submitted to the Com- missioner as he shall require for this purpose. 2.03. The City's legal counsel and bond counsel are authorized to assist in the preparation and review of documents necessary to provide for the issuance, payment and security of the revenue Obligations; to consult with the Corporation and the Purchaser as to the terms and provisions of the, revenue obligations and the necessary documents; and to submit such documents to this Council for final approval. Section 3. No Liability of City. Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any moneys of the City of the Project other than the revenues thereof or the proceeds of the revenue obligations. The revenue obligations shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except the Project and the revenues pledged to the payment thereof, nor shall the City be subject to any liability thereon. No holder of any revenue obligations shall ever have the right to compel any exercise of the taxing power of the City to pay any such obligation or the interest thereon, nor to enforce payment thereof against any property of the City except the Project. Each revenue obligation shall recite on its face that the obligation, including interest thereon, is payable solely from the revenues pledged to the payment thereof. No obligations issued hereunder shall consti- tute indebtedness of the City within the meaning of any constitutional, statutory or charter limitation. Section 4. Project Expenditures. In anticipation of the approval of the Project by the Commissioner of Securities and the issuance of revenue obligations of the City to finance the Project, and in order that completion of the Project will not be unduly delayed when approved, the Corporation is hereby authorized to make such expenditures and advances toward payment of costs of the Project as it considers neces- sary, including the use of interim financing, subject to reimbursement from the proceeds of the revenue obligations when and if issued, but otherwise without liability on the part of the City. Section 5. Approval of Preliminary Agreement. The form of Pre- liminary Agreement relating to the issuance of the revenue obligations authorized in Section 2, presented ro the Council at this meeting, is hereby approved, and the Mayor and City Manager are hereby authorized and directed to execute the Preliminary Agreement on behalf of the City. Section 6. Withdrawal by City. The adoption by the City of this resolution does not constitute a guaranty that the City will issue the revenue obligations as requested by the Corporation. The City retains the right at its reasonable discretion to withdraw from participation, and accordingly not issue the revenue obligations should the parties be unable to reach agreement as to the structuring of the financing or as to the terms and conditions of any of the documents required for the transaction. The adoption of this Reeolution is also subject to the condi- tion that within one month from the date hereof the Corporation shall have submitted to the City Clerk a completed application for Industrial Development Bond Project Financing (including all requisite attachments) In form and content acceptable to the City Attorney and the City Clerk. If this condition is not satisfied, the City may on its own motion rescind, alter or modify this Resolution. Adopted December 19, 1978. Mayor Attest: City Manager -3- /el 0 CITY OF EDEN PRAIRIE, MINNESOTA Application for Industrial Development Bond Project Financing 1. Applicant: . a. Business Name - Renard, Inc. b. Business Address - Rt. 2, Eau Claire, WI 54701 c. Business Form (corporation, partnership, sole proprietorship, etc.) - Corporation d. State of Incorporation or organization - Wisconsin e. Authorized Representative -IMmi R. Rasmussen, Treasurer f. Phone - 1-71J-874-5911 2. NAME CS) AND ADDRESSES OF MAJOR. STOCKHOLDERS OR PRINCIPALS: a. John R. Nenard, Jr., President b. a. 3. GIVE BRIEF DESCRIPTION OF NATURE OP BUSINESS, PRINCIPAL PRODU C T S , E T C : Retail home center lumber yards, agri-building Sales and manufacturing 4. DESCRIPTION OF PROJECT a. Location and intended use; Intersection /NY. 494 and /iNy. b. Present ownership of project site: Teman smsesrawiroc. c. Names and address of architect, engineer, and general contractor: Not yet determined S. ESTIMATED PROJECT COST FOR: Land and land improvement Building Equipment Other Total $ O_Tiguatgazo0 t 9 • tg: $ 3,000,000.00 _ 1/4,1 0— F City of Eden Prairie, Minnesota Application for Industrial Development bond Project Financing Page Two 6. BOND ISSUE - a. Amount of proposed bond issue - $31 000,000400 b. Proposed date of sale of bond - May 1, 1979 cs. Length of bond issue and proposed maturities - Not yet negotiated d. Proposed original purchaser of bonds -First Wisconsin MWaionel Bank of Milwaukee e. Name and address of suggested trustee -Not yet determined f. Copy of any agreement between applicant and origi n a l p u r c h a s e r - None g. Describe any interim financing sought or availabl e - N o n e r e q u e s t e d h. Describe nature and amount of any permanent finan c i n g in addition to bond financing - None 7. BUSINESS PROFILE - a. Are you located in the City of Eden Prairie? ?reposed retail site b. Number of employees in Eden Prairie? None i. Before this project? None ii. After this project? NO c. Approximate annual sales - Eden Prairie 10,000,000.00 d. Length of time in business' 16 years in Eden Prairie Proposed e. Do you have plants in other locations?Yee If se, e h e r e ,20 location! in Wisconsin, Minnesota and Iowa f. Are you engaged in international trade? No 8 NAMES AND ADDRESSES OF a. Underwriter/ficivAycr (94- r 4n -X P At mAiew. * City of Eden Prairie, Minnesota Application for Industrial Development Bond Project Financing • Page Three I . Has preliminary financial analysis by underwriter/PA/1147'i: 17- is• ,e,reifre.ta" required by City policy been completed And attached to this application? Not applicable ii. Is underwriter's letter of intent to Commit attached to this application? Not applicable " (HO= that application is incomplete if either of the above is missing) b. Bond Counsel - To be named c. Corporate Counsel - Jan T. Caudell d. Accountant - ilphons Pitterle, Certified Public Accountant 9. BEAT IS 'MUM TARGET DATE POR: A. Construction start - May 1, 1979 b. Construction completion - November 1, 1979 10. The undersigned applicant understands that the approval or disapproval by the City of Eden Prairie for /ndust ,-,al Development bond financing does not expressly or impliedly constitute any approval, variance, or waiver of any provision or requirement relating to any zoning, building, or other rule or ordinance of the City of Men Prairie, or any other law applicable to the property included in this project. Menard, Inc. apppmt r.e ' By' f aaa 15 11, Treaaurer January 12, 1919 Date FOR FURTHER INFORMATION, CONTACT: 11. Zoning - to be oomplcted by the city planning department. a. Property is zoned - b. Present zoning (j) (is not) correct for the intended use. C. Zoning application received on for which is correct for the intended use. a. Variances required- Ojr7,190 *cor..0:14t0 1.044‘11-14 1 69(11Erldr-- 1#10-0 4-4 City Plenu 10/)S1411‘..40 Thank you fq; your consideration. 42-dad/rio,, Richard Putnam Busts0 Development Corporation RPj'er 12750 PIONEER TRAIL EDEN PRAIRIE, MINNESOTA 94t C{10 JAR 197S January 11, 1979 Eden Prairie City Council 8950 Men Prairie Road lie::en Prairie, Mn. 55344 Re: Yorkshire Point fear Mayor and Members of the City Council: Busted Development Corporation, Hart Custom Homes and Zachman Homes are requesting a change in the Yorkshire Point Zoning Agreement. Due (..w a number of circumstances, Hart Custom Homes can not complete the Yorkshire Point Project. They have built 6 homes and are committed to built one aeitioaal home. Hart has arrange(' to have Zachman Homes, Inc. take over the construction of the twenty remaining lots. Zachman Homes plans to construct three basic home styles with a varietfof exterior treatments. The 1979 price for each of the homes is 854,900 which includes: sale fee, 4i mortgage points, 4 x 8 storage buildings, fully developed lot, bituminous drive and sidewalk. Yorkshire Point is intended to be a small subdivision exclusively for lower priced single family homes. Hart Homes attempted to complete the project with a factory built system. Zachmen Homes, Inc. plans to complete the rroject with similar style, site built hones. We are confident the Zachman Homes will complete Yorkshire Point as a modest cost family neighborhood as originally planned. Mr. Zachman and I will be at the January 16th meeting to explain his plans In more .!etail. Agreement-Creekside Heights Page 2 (Vorkstuye R.) 3. Owner shall offer for sale and sell no fewer than six single family homes to be constructed on a portion of the property for less than $40,000 and the remainder of the single family homes to be constructed on a port i o n of the property for less than $50,000. 4. Owner shall, immediately after filing the plat, deliv e r to the City a warranty deed conveying to City good an d Marketable title free and clear of all mortgages, lien s , taxes, and assessments, the land described as Outlot A on Exhibit C, outlined in red, attached hereto. Owner shall file the warranty deed in the office of the Cou n t y Recorder or Registrar of Titles, and shall deliver to City a copy thereof with the filing data thereon. 5. Owner shall construct a 6 foot wide bituminous trail beginning at Creekview Circle and running northeaster l y between lots 10 and 11, on a 10 foot wide area includ e d in Outlot A depicted in red on Exhibit C, to the point of intersection of the back lot lines of lots 10 and 11, and from that point owner shall construct 6 foot wide steps, or a 6 foot wide blacktop trail (trail no t to exceed 10% in grade) northerly to the 820 topogra p h i c contour. A totlot shall be constructed in the general location as shown in green on Exhibit C which shall contain swings, slides, climbing structures, acceptabl e in design and construction to the City Park and Recrea t i o n staff., Owner shall further construct a 6 foot wide limestone trail, 5 inches deep compacted from the tot- lot area to a bridge crossing Purgatory Creek as shown on Exhibit C • Said bridge to be designed and constructed by Owner subject to review and approval of City Park and Recreation staff. All trail, steps, totlot, and bridge construction shall be completed at time of site grading and utility construction. 6. According to Ordinance 332, the cash park fee shall be waived in lieu of the dedication of and construction o f facilities described in paragraph 5 hereof. This agreement shall not imply the waiver of cash park fee provisions of Ordinance 332 with respect of all o t h e r property in the Busted Office PUD. 4116 ge9e40404 Owner shall p4.a.t a 16 foot drivehbetween lots 3 and 4 , 4 tj. Block 2, as described in Exhibit C, to provide acc e s s to the existing single family lot of Mr. & Mrs. Leroy dy.p•Peterson, Lot 2,1aqsU6 Exhibit C. Owner shall co n v e y ' the 16 foot drive"MiT4f: & Mrs. Leroy Peterson or t h e then owner of lot 2, Block 3, Exhibit C immediately u p o n filing the plat. The said plat shall be consistent wi t h City Engineering requirements. /22, . swunn... tritrumr.X.itA .7441+61 writiv41-4,300 irtt . . ' FINANCE OIVISIi I hereby certi. prior to this ••••••n••n•••• n•n••••nnn••n•• SURVEY OIVISIOt Pursuant to Chi been approved I .4 RUMEN 1 hereby Y terttt filed for retor o' REGISTRAR OF TI' 5-ffilitAtVeE 214. .40. r.-- — 0 o VW'''. • fthIV1: Z:r4tO: &Els 257 4106#170 R*1 • - MEMORANDUM TO: Mayor and City Council Parks, Recreation and Natural Resources Commission TRU: Roger K. Ulstad, City Manager FROM: Bob Lambert, Director of Community Services DATE: Janaury 12, 1979 • ' SUBJECT: Miller Park on Mitchell Lake At the December 19, 1978 City Council meeting staff recommended that the City enter into a five year option on the Miller property that will allow the City to acquire warranty deeds on portions of the property acquired through grants. The 73.68 acres would be divided into three lakeshore parcels of approximately 12.2 acres each. The remaining 37 acres would be divided into the final two parcels for acquisition in 1981 and 1982. The City would attempt to acquire the lakeshore parcels trough LAWCON and LCMR Grants. The final two parcels would be acquired with local money. The. staff also recommended considering selling a portion of the final two parcels for development and using the funds from the sale for development of the park. Mr. Moriarty, an attorney representing the Miller's, also brought up that the original option agreement talked about a 6% annual interest to be added to the acquisition price of each parcel each year. If the City failed to purchase any one of the parcels, the City would forfeit the $50,000 option. MOTION: Meyers moved, seconded Pauly, to direct Staff to draw up an Option agreement for the purchase of the Miller property as outlined in the memo dated December 15, 1978, incorporating concerns and figures that were discussed this evening, and bring the matter back for Council consideration for approval at the January 2, 1979 Council meeting; or that it be brought before a special meeting unless an extension of the option is obtained for a 30 day period, at which time it could be presented then at a regular Council meeting. Motion carried unanimously. MOTION: Osterholt moved, seconded by Bye, to change the name of the park from "Mitchell Lake Park" to "Miller Park on Mitchell Lake". Motion carried unanimoulsy. Mr. Moriarty called me this morning to indicate that he will send copies of the agreement today, and that he will be in attendance at the Council meeting on January 16, 1979 to answer any questions the Council may have on this option agreement. The option is a 30 day extension of the 1976 option and provides the figures Identifying the yearly payments and a map showing the approximate location of the parcels that we will buy each year. ii q Miller Park on Mitchell Lake -2- Jan. 12(79 1 have contacted RCM and BRW for estimated cost to survey Parcel 1 of the proposed site. I will have theta estimates by the January 16 Council meeting. Mr. Moriarty indicated that if the Council did tot wish to take final action on the 16th that the Council . Would then Seta! special meeting • prior to January 30 to make a, final decision on the acquisitton. BL:md 11 Minutes - o - I. Park Dedication Ordinance (continued) • Osterholt commented if there is a thought in mind to make any increases In the fees, there should be some kind of a uniform adjustment or across the board increase. Pauly questioned if something could be put in the ordinance that land to be dedicated be good land. Also in the tot lot recommendation something that would be very cheap and would not have to be required, Is when land is being excavated and if there are any enormous boulders, a few of these boulders in a park are a tremendous thing to play on. Bye suggested input from potential developers as to their attitudes and ideas. Council members referred this item back to Staff. 2. Mitchell Lake Park Option Director of Community Services Lambert spoke to his memo dated 12115/78, reLoariending that the City enter into a five-year option on the Miller property that would allow the City to acquire warranty deeds on portions of the property acquired through grants. Lambert commented he has talked about this proposal with representatives from the Miller's and they have some concern about the interest. The option agreement talks about 6% per annual interest, therefore the only way it could possibly be worked out would be when the City acquires the property each year, that interest cost would have to be added on to the price of the property. Lambert stated he is not comfortable about having to buy land this way, but doesn't see any other way to enter into •this and try to secure grant money. Art Miller was in attendance at the meeting represented by his legal counsel, Dennis Moriarity and Jerome Jaspers. Mr. Moriarity commented if the City buys the first parcel, the 5th year they don't want the City to come in and buy the 2nd parcel - it has to be contiguous. Council members agreed the property under consideration is a beautiful choice piece of property for a park. Osterholt asked that figures be provided to the Council to identify what the City will have to pay and when they are obligated to pay. MOTION: Meyers moved, seconded by Pauly, to direct Staff to draw up an option agreement for the purchase of the Miller property as outlined in memo dated 12/15/78, incorporating concerns and figures that were discussed this evening, and bring the matter back for Council consideration for approval at the 1/2/79 Council meeting', or that it be brought before a special meeting unless an extension of the option is obtained for a 3-day period, at which time it could be presented then at a regular Council meetins Motion carried unanimously. MOTION: Osterholt moved, seconded by Bye, to change the name of the park from "Mitchell Lake Park" to "Miller Park on Mitchell Lake". Motion carriec unanimously. 12g 8 al==i1311===3 tl: =2= 21 === at a - - • x:,0, 004 011443gI.Z frer.4 Ogslo) 4) I ifargicnra==ma===rartatz==rrra= ? . 4/ (#650) .4-* 1===2 S2 1:2 RI 1==113‘31 ,===1 : e j g MITCHELL (AERIAL PHOTO 1907 ) LAKE pf.6Apfroo. 4.• 4 I. 1 14 fAfist. r.t.t /oe. . g I I I 114.01- 4- ".. S. r.04.0L. 1 M,9A4F- 10.9 Mita NaLas ISM' AS* • vic : MEMORANDUM TO: THRU: FROM: DATE: SUBJECT: Mayor and City Council Parks, Recreation and Natural Resources Camnission Roger K. Ulstad, City Manager Bob Lambert, Director of Community Services January 12, 1979 Topview Park Earlter this week Mayor Penzel and City Planner, Chris Enger, net with residents of Topview to discuss the possible acquisition of a neighbor- hood park serving. the Topview residents on the Tinted site. I have attached my memorandum relating to that recommendation. At that meeting residents of Topview indicated that there was alikely neighborhood park site Jutt..**St of Gerard :Drive on the westOnedge'.. of Topview. After an onsiteinspectinn and reviewing the td#O.ofthat area, the staff feels that this -S etre pTus.site..woditianka sivideal neighborhood park serving TOpviow ant the proposed residentiai. develop- ment to the test. Chris Enger discussed the possible acqUisition of this parcel with the owner, Mr. Jerrold T. Miller. Mr. Miller has had a preliminary plat drawn up for that area, but would consider selling it for Par* purposes ifthe price was sufficient. At this paint, the staff would request permission, to approach Mr. Miller' to negotiate an acquisition price and secure all option on the property.: BL:md MEMORANDUM TO: FROM: DATE: SUBJECT: Chris Enger, City Planner Bob Lambert, Director of Conanuntiy Services'7-4W.- Janaury 9, 1979 Neighborhood Park Topview Area On January 8, 1979 you requested that I consider a suggestion that we develop a neighborhood park in the northern area of the Menard site. I can understad the reason for the suggestion.: there is a need for a neighbor- hood park in the area, there are some beautiful oak trees on that part of the site, a neighborhood park would provide a buffer between residential and commerical developed land. However, after looking at the pros and cons of a neighborhood: park in that • area there are several reasons Why I would not recommend a neighborhood park: in that location: a. The users would have to cross old Valley View Road: to gain access to the site, unless this road becomes a cul-de-sac. b. Outlet O is approximately 9 acres, a good portion of which is slope and wooded. c. There will be nearly $7%000 of assessments on this property from the ring rbad. With those costs added to the acquisition cost this would be extremely expensive land for neighborhood park purposes. d. There are new developments forthcoming along nakPr Road that will also be served by a park in this area, therefore the park should be more centrally located between Topview and the new developments to the northwest. I would recommend that acquiring a 5-7 acre park on the southwest side of the lowlands slough area and connecting this park with a trail system from Topview and from the development to the north, also connecting to a trail along the • creek and running to Forest Hills School. 111.:md )20 11"Z AlrfeA e-XAL-Ot 1joa . VAT' Crta)P4r frill rczAvri Itr 012-1 i-t Int- CITY OF EDEN PRAIRIE ' HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 79-17 RESOLUTION ACCEPTING BID WHEREAS, pursuant to an advertisement for bids for the following improvements: Improvement Contract 51-332 bids were received, opened and tabulated according to law. Those bids received are shown on the attached, Summary of Bids; and WHEREAS, the City Engineer recomnends award , of contract to 0 & P Contracting, Inc. as the lowest responsible'bidder. NOW, THEREFORE, BE IT RESOLVED by the Eden Prairie City Council as follows: The Mayor and City Manager are hereby authorized: and directed to enter into a contract with 0 & P Contracting,. Inc. in the name of the City of Eden Prairie in the amount of $122,768.12 in accordance with the plans and specifications thereof approved by the Council and on file in the office of the City Engineer. ADOPTED by the Eden Prairie City Council on ATTEST: Wolfgang H. Penal, Mayor John D. Frane, City Clerk 0 A P CONTRACTING, INC. BROWN & CRIS, INC. IDEAL ENTERPRISES, INC. RICHARD KNUTSON, INC. BARBARDSSA &-SONS, Tic. DE LUXE CONSTRUCTION, INC. ORFEI & SONS, INC. O. L. CONTRACTING, INC. NODLAND ASSOCIATES, INC. NORTHERN CONTRACTING, INC. ART CONTRACTING, INC. $122,768.12 124,517.60 124,998,00 YR .00 127,465.00 128,061,t0 132,343.80 134.271.80 142.750.00 147.081.00 174460.00 ' CITY OF EDEN PRAIRIE IMPROVEMENT CONTRACT 51-332 SUPER VALU DEVELOPMENT Very trulis,, -1 David O. Husby, P.E. RIEKE CARROLL MULLER ASSOCIATES, INC. RIEKE CARROLL MULLER 'ASSOCIATES 1NC January 12, 1979 Carl Jullie, P.E. City of Eden Prairie 8950 Eden Prairie Road Eden Prairie, MN. 55343 RE: EDEN PRAIRIE SUPER VALU DEVELOPMENT IMPROVEMENT CONTRACT 51-332 RCM PROJECT 781023 Dear Mr. Jullie, Bids on the above project were received on Thursday, January 11. 1979 at 10:00 A.M. The lowest bid was submitted by 0 & P Contracting, Inc. in the amount of $122,768.12. A summary of the eleven bids is tabulated below: architects engineers land surveyout ,onoff post ofbee box 130 haylofts. trinnesoto 55343 lottotinn 11011 first areal 'Oath ttayktra, minnusout 55343 012935450) 0 & P Contracting, Inc. Brown & Cris, Inc. Ideal Enterprises, Inc. Richard Knutson, Inc. Barbarossa & Sons, Inc. Deluxe Construction, Inc. Orfei & Sons, Inc. G. L. Contracting, Inc. Nodland Associates, Inc. Northern Contracting, Inc. ARI Contracting, Inc. $122,768.12 124,517.60 124,998.00 126,889.00 127,465.00 128,951.00 132,343.80 134,271.00 142,750.00 147,081.00 174,050.00 The low bid of $122,768.12 is approximately 20% higher than the preliminary report estimate of $102,400.00. The higher bid costs reflect two construction problems; a high ground water table which will complicate construction of the lift station and restricted space for installation of the forcemain along County Road 60. We have not had direct experience with 0 & P Contracting, Inc. but have checked several sources which all indicate that the firm is reliable and capable of satisfactorily completing the project. We therefore recommend awarding the contract to 0 & P Conttacting, Inc. tootAmls.minoosom :potted :buffoon' st.clom4 sashimi° WaiaWd aarthtaman . 0.M.1 40.8 CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO 79,1B RESOLUTION AUTHORIZING PtoNIT APPL1CAT WHEREAS, the proposed saoitary sewer in Improvement Contract 51-332 requirea a connection to the Metropolitan *Ste Control Com11811OR 04WCO ittercePter sYsteu4 fEttd: WHEREAS, the proposed connecti0 Edon Prairie Comprehensive Sever Plan, NOW, THEREFORE, BE IT RESOLVED by City Council as follows: Welter The City Engineer is hereby outhorizetand directed to submit an application for 'Permit for Connection to or Use of Commission Facilities ° to the MWCC. ADOPTED by the Eden Prairie City Council on Wolfgang Penn), Mayor ATTEST: John D. Free, Clerk: CITY OF EDEN PRAIRIE ENGINEERING REPORT ON FINAL PLAT TO: THROUGH: FROM: DATE: SUBJECT: Mayor Penzel and Members of the City Council Roger Ulstad, City Manager Carl Jullie„ City Engineer January 11, 1979 Olympic Hills Highland PROPOSAL: The Developer, Olympic Hills Corporation, is requesting final plat approval of Olympic Hills Highland. This is a replat of Outlet B, Olympic Hills Addition and is zoned RN 6.5. This plat is being resub- mitted from the January 2, 1979, Council meeting, and revised to con- form with recommendations.from this meeting. This plat now consists of 7 lots, with lots 4, 5, 6 and 7 being platted to represent existing dwelling locations. Multiple dwellings will be constructed on lots 1. 2 and 3, with replatting to occur after construction. HISTORY: The final plat was subrr 4 tted to the City Council for approval on January 2, 1979, and continued to the January 16, 1979, meeting. The preliminary plat was approved on June 7, 1978, per Council Resolu- tion #78-101. Zoning to RN 6.5 was finally read and approved by the City Council on June 20, 1978, per Ordinance #78-29. The Development Agreement referred to in this report was signed on June 20, 1978. VARIANCES: Variance from the minimum lot size requirements of Ordinance #135 will be necessary for lots 5 and 5 containing approximately 3,740 s.f. and 4,460 s.f. respectively. Variance from the requirements of Ordinance No. 93, Sec. 8, Subd. 1, waiving the six month maximum time elapse between the approval date of the preliminary plat and filing of the final plat will be necessary. UTILITIES AND STREETS: All utilities and streets will be installed by the Developer in conformance with Eden Prairie Specifications and the requirements of the development agreement. The street name "Mount Curve Road" shall extend to Franlo Road. - 2 - PARK DEDICATION: Requirements for park dedication are covered in the Development Agreement. BONDING:, Bonding requirements are covered in the Development Agreement.. RECOMMENDATION: Recommend approval of the final put of Olympic Hills Highland, subject to. the requirements .pfthis .roport'and the felloWingt. 1. Receipt of fees for City Engineering servites in.the Mot of $210. 2. Receipt of cash deposit for street lighting in thetas)* Of.: $90.40. Note: Mr. Bon McGlynn will be present On Toes, eve. Jan4 11, to explain the current development plats for the,reesindefof the.. • Olympic Hills property. TO: Mayor Penzel and Members of the City Council THROUGH: Roger Ulstad, City Manager FROM: Carl Jullie, City Engineer DATE: January 11, 1979 SUBJECT: Meeting with MCA Property Owners Transportation Improvements Over the past few weeks we have met three times with property owners within the Major Center Area and Minn. DOT officials regarding completion of Schoon- er Boulevard and other improvements of concern to these owners. At least one additional meeting will be necessary before a general consensus can be reached and a final report made to the Council. We are attempting to gain, general agreement on the following points: 1. Concurrence with the location and scope of the proposed projects in the MCA. 2. Agreement that the bid letting date for widening of the T.H. 169 bridge and expanding T.H. 169 to four lanes from W. 78th St. to Co. Rd. 39 shall coincide with the letting date for completion of the Schooner Blvd./I-494 underpass. 3. Acceptance of the $40 per front foot and $500 per acre ad- ditional assessments with the City and other agencies assuming the balance of the project costs. The $500 per acre rate shall be levied for 15 years payable beginning in 1980 at 6.6% interest. The $40 rate shall be applied in the year that a contract is let for the applicable segment for a. 17 year spread at 1.5% above the bonding interest rate. 4. Acceptance of previous assessments levied for the Ring Road and dismissal of assessment appeals. 5. Agreement to dedication of right-of-way with compensation only where there are severence damages or extra needs for ramp right-of-ways. 6. Major grading and land alteration will be necessary for develop- ment in the Major Center Area. Approximately 1/3 of the steep slope and wooded area adjacent to the southwest segment of Schooner Boulevard shall be preserved. The next 1/3 can be partially disturbed and incorporated into development plans. The highest 1/3 may be completely altered as development re- quires. There are also some isolated stands of good quality 132 trees within the slope areas which should he preserved,. A graphic depicting all of these areas will be prepared by the City Staff. Major grading may occur .beyond theareserved.. areas to be used as fill for the led area to the.Westof the southwest segment filling and develoixasnit.mayettur • generally 650 1 to 700* westof. the Sohtuaner. Boulevard align. • ment from T.N. 169 to .T.H. 5 in the soOthwest segment We anticipate that our next meeting with theNZA owners will be feb,-. r; and we will again report to the Council•on Feb. 20'. MEMO The Consulting; Engineering time Howard Needles Tinen. and Bergendet pro- vided engineering services to the 'City tot the initial phases of the SchoOner . Boulevard (Ring Road) project. .Their Luutract with the City, dated January 34 1973,' contains provisions for terMinationef said 'contract bry:thelCity -atd.. also provides that 10% of thetarned 'design fee Intretained by the City until the project is completed or the contract terminated.. The amentt retailed to. • date is $14,752.30. • We have advised HNTB that additional consulting work for their firmwill.Prott, ably not be authorized. Accordingly, they have requested, per the attached letter of 7/14/78, that the contract be terminated and that the retainage.he released. This retainage was not a nuttier of consideration in the eettIement of billings for extra work, determined in August, 1977. It is recommended that the Council terminate the January 23, 1973, Eefrineering• Services contract with Howard Needles Tammen and Bergendoft and authorize re- lease of the $14,752.50 retainage. CJJ:kh Attachment TO: THROUGH: FROM: DATE: SUBJECT: Mayor Fenzel and Members of the City Council Roger Ulstad, City Manager Carl Mlle, City Engineer January 10, 1979 HNTB Consulting Engineers Release of 10% retainage HOWARD NEEDLES TAMMEN & BERGENDOFF July 14, 1978 Mr. Carl Jullie 8950 Eden Prairie Road Eden Prairie, Minnesota 55343 Re: Schooner Boulevard City Project No. STR 72-9-26 Dear Mr. Jullie: At our June 7, 1978 meeting, we discussed the status of the Schooner Boulevard (Ring Road) project. You indicated that if the roadway is extended it will probably be on a piece meal basis and construction would be staged. Further, you suggested that HNT11 presumably would not be involved in future roadway design and construction. In effect, our contract is being terminated by the City. As you know, our engineering services contract dated January 23, 1973 4 contains a provision under Section V:A for City termination. This section and Section TV:A stipulate the basis for compensation in the event of termination and for design services, respectively. The con- tract provides for 102 retainage of the earned design fee. Since the project is in effect being terminated, we respectfully request that . the CILy remit the existing retained amount of $14,752.50. For your convenience, we are enclosing a copy of the last design Invoice No. 44-3404-21 dated November 4, 1974 which illustrates the retained amount. This matter was not a consideration of the extra settlement authorized by the Council on August 2, 1977. Compensation for items contained in the extra settlement was not explicitly outlined in the contract, and therefore by their nature these items became negotiable. On the contrary, the retainage is a recognized incurred liability of the City manifesting a committment for future payment. Also attached is a copy of Progress Report No. 46 dated January 31, 1977. This report represents the last progress report submitted to the City for the project and shows the design completion as 66.32 for the entire project from County Road 39 on the east to Valley View Road extended on the west. Based on this percent completion, an estimated construction cost of $4,729,560 (Segments I - $1,137,500, II - $2,250,000 & III - $1,342,000) and a 5.25 percent of construction fee, the earned fee computes to $164,624. The actual invoiced design amount (Invoice No. 44-3404-21) including retainage is $147,325. The difference between these figures, or $17,099, represents the remaining billable amount predicated on the 66.3% completion. AnAlkels faelneen PISMO/II 47511 A1/0011.. Utak tAlronspeak allAnnels Intenorsa Pennon C Lantanna..k Pt J..s1 FAA PL. hull. Modeann PE. Amen+ If tonne PE. Gond F. Po PE. Mien IA *IOW . Gant K tapaa•An c.,,„„ pc owl. y own**. pt JohntouPt.00.101 Walken PE. flan E Mien 0~.1 &POP PE."" Cak""1, Awning* Omni J Awn PC , Miro C ninon. Pt. Anna W Petra& Pt. Anuern Gannet, Don 11 Oft Pt. Damn A &nein 4,,e.c*N Am....-. JaAnt &Own Pr. Atom B KWe.PE. Asnein 1. Lamont CPA Jab P Steal PE. &elms SnampoPE Jac% 1447.0m.X. Rowel) S.A .A.P VI- Nen A L. Js .A5 WNW Love. MA OlAces A.m.**. VA. Alums lionftwockmun..Ballat.Cor.Comlft.Caw.ift. Chpieston Wv.C1 n,..spo.Croaadllasos bast tan.11 PAI Indonnyekt Jarasonen.FLAguancr...ts, Las Argin.414m.MinnAloo.Mnonsinhs. N.44.01.M. 'Aft OatalmOwasmitailtillicrantilai nPP 14.1 roman. MAMA Red. Am.*. Ishun mi>" Hr. Carl Ju July 14, 1978 Pegs 2 Nall is entitled to claim the retalnage ($14,752.50) and the unbillfd earned fee ($17,049) for a total amount of $31,051 ..50..Revever, we are aware of the effort which would be required to establish a mutual- ly agreeable percentage of completion,, particularly in light of ma- nents made at the June 7th meeting. Tri recognition of this feet, ma propose that the Agreement be terminated in writing and that the re- telltale be. paid at this time. We would not then make claim for addi- tional earned but Unbilled fee. If there are questions, please call. Very truly yours, HOWARD NEEDLES TAMEN & ifgaLe Richard D. Beekman Associate 01/.10M/det TO: Mayor and Council THRU: Roger Ulstad FROM: .John Fran DATE: January 119 1 97 9 RE: Guidelines Per your request the Eden Prairie Industrial Development Conntission reviewed the City's proposed guidelines for M,1.D.B. bends. The guidelines were discussed at the December 1.97, and January IMP meetings; a couple of changes to the application, farm were soygttad and the commission voted to recmenend the guidelines to the C IZy Council at the January meeting. All Applicants ppou City of Eden Prairie, Minnesota Industrial Development Revenue Bonds All applicants for Industrial Development Revenue Bonds must submit the following material in duplicate to the City Clerk. 1. The attached application caapietadl in total. 2. A.letter from the applicant agreeing to pay all therniKurts costs incurred with respect to this application and/or the issuance of bondS pursuant thereto, whether or not bonds are issued. • Proposed resolutions tying preliminary approval to the project, approved as to form by the.City'Attorney. 4. Proposed application to Commissioner of Securities along with a proposed statement of the purpose of the project. S.: Letter from purchaser of bonds or note (either underwriter - or private plat.w.wat purchaser) representing to the City that it has evaluated the financial ability of the applicant and it is of the opinion that the applicant has the financial and management capability to fulfill the obligations to be imposed by the proposed transaction. S. Letter from Bond attorney that he is prepared to grant a favorable preiminexy opinion relating to the qualification of the project under the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Chapter 474 as amended. 7. All documents must be presented to the City Attorney at least two weeks before the council meeting at which approval is requested and presented to the City Clerk at least one week prior to that date. 1./ Applicafts are advised that the operative documents of the bond transaction must include the following: 1. A statement from the underwriter holding the City, its officials and employees, harmless of any error, misstatement , or omission in any official statement. 2. Applicant shall indemnify the City, its officers and employees from all liability, damages or costs incurred in connection with the issuance cf the bonds. 3. The opinion of bend counsel shall include a represent- ation that no registration is required under the 1933 Securities Act, the 1914 Securities Exchange Act, the 1939 Trust Indenture Act, or any Blue Sky Law, or if such registration or qualification is required that., it has been done in full compliance with the referenced act. 13 2' The opinion of bond counsel must approve as correctly stated, without material omission, any characterization of the legal proceedings contained in the official statement. S. The opinions of bond counsel and applicant's counsel shall he addressed to include the City. 6. In the case of a private placement, the purchaser must warrant that no public sale or offer of the bonds or notes will be made. 7. The City will make only the following representations, warranties and covenants in the operative documents to the bond transaction: a. The City will covenant that it will cause prompt payment of principle and interest on the bonds to be made solely from the source specified in the bond. transaction (i.e. Loan Agreement}. b. The City will covenant that it will faithfully perform all covenants contained in the operative documents and that it is duly authorized pursuant to the Constitution and laws of the State to participate in the bond transaction. City will covenant that it will execute such instruments of further assurance as a plaposed trustee may reasonably require for the better assuring, transferring, conveying, pledging, assigning, and confirming to the trustee the rights assigned in any of the operative documents. d. The City will represent that the project has been approved by the Commissioner of Securities of the State of Minnesota. e. The City will represent that the issuance of the bonds and the performance of the agreements pursuant thereto have been duly authorized by . the City. f. The City will represent that to finance the cost or part of the cost of the projecti. the City proposed to issue its bonds as provided for in the operative documents to the transaction. The applicant is responsible for submission of all necessary documents to the State Commissioner of Securities for his approval. If a public offering of the bands is contemplated, the underwriter must submit the additiml fellmoinn information: 1. The underwriter must warrant and represent to the City that it has examined the financial condition of the applicant and that there will exist a *minimum coverage* of 2X the principle and interest due earned annually the previous year before taxes. For example, a $1,200.000 issue requires approximately $125,000 in annual principle and interest payments. Therefore, $250,000 must have been earned before taxes by the company the previous, year. !AAA'S C. 131 2. The underwriter must warrant and represent that the , applicant possesses a demonstrated record of yearly increases in earnings prior to taxes. 3, The underwriter must warrant and represent to the Cit y • that the appraised value of any building wide% is part of the project, based on fair market rental valve, is equal to or armed the total amount of Wade and interest due. „A. 1.4.-Ale&rof CITY pr EDEN PRAIRIE, MINNESOTA Application for Industrial Development Bond Project Financing 1. Applicant: a. Business Name - ' b. Business Address - c. Business Form (corporation, partnership, sole proprietorship,. etc.) - d. State of Incorporation or organisation - e. Authorised Representative - S. Phone - 2. NAMELS) AND ADDRESSES OF MAJOR STOCRMILDERS °RM./SCUMS: a. b. 0 . 3. GIVE BRIEF DESCRIPTION OF NATURE OF BUSINESS, PRINCIPAL PRODUCTS, 4. =SCRIPT/1:N OP PROJECT a. Location and intended use: b. Present ownership of project site: c. Names and address of architect, engineer, and general contractor: S. ESTIMATED PROJECT COST FOR: Land Building Equipment Other •••••nn•nn •••nnn•nn••••n••n•nnnnnn••n•nn••••n Total $_ City of Eden Prairie, Minnesota Application for Industrial Development Bond Project Financing - Page Two 6. SURD ISSUE - a. Amount of proposed bond issue - b. Proposed date of sale of bond - a. Length of bond issue and proposed maturities - d. Propos-ed original purchaser of bonds - e. Name end address of suggestaktrustee,7 f. Copy of any agreement between applicant and origina l purchaser g. Describe any interim financing sought or ava i l a b l e h. Describe nature and afteent of any petimanent f i n e n c i n g in addition to bond financing - 7. BUSINESS PROFILE - a. Are you located in the City of Eden Prairie? b. Number of employees in Eden Prairie? i. Before this project? U. After this project? c. Approximate annual sales - $ d. Length of time in business in Eden Prairie e. Do you have plants in other locations? f. Are you engaged in international trade? 8 NAMES AND ADDRESSES OF: a. thulerw ri ter/Private Placenta Purchaser I f so, idlers? tqL City of Eden Prairie, Minnesota Application for Industrial Development Bond Project Financing • Page Three prfrateigace- i. Has preliminary financial analysis by underwriter or ment waists' required by City policy been completed and attached . to this application? ii. Is underwriter's letter of intent to Commit attached to this application? (Applicable only if there Is a public offering.) (NOTE that application is incomplete if either of the above is missing) b. Bond Counsel - • e. Corporate Counsel - . d. Accountant - 9. WHAT IS YOUR TARGET DATE FOR' C. Construction start - b. Construction completion - 10. The undersigned applicaut understands that the samosa or disapproval by the City of Men Prairie for Tndustrial DCVSIMMOrit tend final:m:14g does not expressly or impiiedly constitute any APPrOvAl , vartInm, or seism of any provision or requirement relating to any =nine. or other rule or ordinance of the City of Eden Prairie or any lam applicable to the property included in this projeet. APPLitiont By Date FOR PUSTalln INFORMATION, COtataf: 12. Tonieg - to be completed by the city planning dePtrtto0t. a. Property is zoned - b. Present zoning (is) (is not) correct for the intended use. 0. riming application received on for which is correct tor the intended use. d. Variances required- brit Neater_ December 22, 1978 MEMORANDUM TO: Mr. Roger Ulstad City Manager City of Eden Prairie IRON: William E. Fahey Vice President Ehlers and Associates, Inc. DEC 2 2 WM R. Rodney Pakpnen Vice President Piper, Jaffray & Hopwood, Inc. This is a follow-up to the conversations we have had regarding the options open to the City of Eden Prairie if the City Council, through its power to permit the issuance of tax-exempt bonds, elects to assist home purchasers In the City of Eden Prairie. Within current regulations, it appears that the City has three possible options under Chapter 474 of the Minnesota Statutes. First, it can encourage individual contractors or developers to request permission from the City to issue industrial revenue bonds, tte pro- ceeds of which would be made available to home purchasers in their respective developments. An advantage of this procedure would be that the City Council could exercise a relatively large amount of control over the developments that would be financed with industrial revenue bonds, the idea being that a developer would be willing to add or modify his development somewhat because of the relatively attractive financing package that would be made available to purchasers. A disadvantage of this type of procedure is that some builders may be put at a competitive disadvantage if, for example, they are not large enough to undertake a relatively large housing develooment. The economics of this type of industrial revenue bonds issue suggests that the minimum bond issue size should he adequate to finance at least 100 houses. Thus the builder who constructs 15 to 20 houses per year could not take advantage of the indus- trial revenue bond law in this case. A second option open to the City Council is to encourage builders and deve- lopers to group together by forming, for example, a separate corporation, and using this corporation to arrange the financing for all the builders and de- velopers in the group. An advantage of this arrangement is that smaller builders may he part of the corporation along with the larger builders and developers in the City. A disadvantage of this financing structure is that the corporation, composed of relatively independent separate entities, MY prove to be unwieldy and valuable time may be lost while the corporation is being formed. mnokatliollmea Asrawarai 'ortgagepool plan Ey WALTER T. MIDTHERROOK Atinnmli, Mat SIA/I Miter One housing developer went fishing for a new kind of money pool in Burnsville. When he got a Me, other fishermen grabbed their poles and came running. Btu nsville has been flirting with a tax-exempt bond scheme de- signed to pour tens of millions of dollars into a mortgage pool and sustain the housing boom while credit is tight. But the rush of fishermen who like the looks of the catch is giving the city second thoughts. Meanwhile. the growing use of tax-exempt hoods for quasi-public and private projects has raised eye- brows in the federal government and has triggered national Investi- gations. LAST MONTH. Robert Da; v. who runs Ridgewssd Develop- ment. convinced .me Burnsvidle City Council to lend its tax-free steins to a S20•million bond issue. The bond revenues would create the mortgage pool to be used in developing new housing In Burns- ville. The plan seemed simple enmight The city would authorize tax•free, industaial-revenue bonds to raise capital for the developer. The in- terest paid on the tiontis yecnild be tax-free, so investors would he willing to accept a lower interest rate than the going rate on conven- tional. taxaele muds. And bacauty V: that lower rate, the builder ,vauld be able to offer new tomes to prospecttve home- owners at 1.5 to 2 percentage points below conventional mon- tage rates. Home buyers' mortgage p..ymenis would supply the funds to pay oil the bonds. With a conventional mortease, a family whose moss annual income It s?.4.(ittO could only qualify for a aliS.000 home. Ilut with tht hand issue, the same family could quali- fy for a $79.000 home. Similarly, a family with an income of $211,1100 could qttality for it Vili,000 home, Instead of $17.0118 home. The mortgage poet is a tecnnique already used in various forms by cities all over the country. Such pools open up the housing market to potential homeowners ..vno oth- erwise would be priced cut of It. explained Glen dorttnup. Burns- elite city manager. Once Ricigewood's proposal won the city col:mars blessing, New Horizon Homes nod Orrin Thomp- son Homes marched in with simi- lar requests. Both builders say they feel that unleas they are given the same epportuulty. Daly's firm will have an advantage in the Burns- ville market. P.00ERT BURGER, president of New liorison. told the council he would be forced to compete at a 10-percent mortgage Interest rate against Daly. who could offer an 8- percent rate. -Any develtmer would be hard- pressed to compete against this (0:Ay's prope.tal),- said Gary Thompson, p:esident of Orrin Thompson. "Everybody that !teem abraut it will went to get in on IL" But the council has been hesitant to act on the requests. Two council members. Connie Morrison and James Fappathatos. have contin- ually expressed concern that the city had not established enough gulaclines on hew the bond raoney was to be used. Although tee council did stipu- late that 20 peacent of the Ridge- wood bond lame be used for the development of moderately priced single-family housie.g. the dissent- ing council members were con- cerned about the impact of the bond issue on the city's financial status. They also questioned the effects of the bond issue on the small de- veloper. But a spokesman for the investment firm that is helping un- derwrite the bond issues raid the larger developers ure ist‘eded to get th e lista MI the ground. Roger Winans, a bond under- Writer in the St. Paul office of .hirait and Moody Inc.. said smuttier Items. tan better take advantsee el( plan once It is fully ilecetoped. Has ing smaller developers launch the program "wouldn't he worth it," be said. Wiagus discounted fears that the bonds would hurt Burnsville's fi- matelot standing. lie also said the city would be assured of protection from liability in case of &fault. "The numy layers of insurance would protect the city's liability," he said. "The city only serves as a conduit of the money front which the developer will draw." FOR THE MOMENT, the bond proposal sits in limbo. Two council members who favored the bond is- sues will not be on the council next year. The lame-duck council has voted to Wile the issue white at- tempts are made to draw guide- hues for the proposals. Hut there sic others who are also concetned about such bond Issues. I Mr. Roger Ulstad Page Three 6. pecial Hazard Insurance: This is additional coverage for the benefit of the bondholders, trustee and the insurance entities. The special hazard insurance is designed to cover losses incurred by the mortgage pool in the event of individual insurance policy lapses. Because of all these assurances, we feel the housing mortgage revenue bonds will be rated in the investment grades of A to AA by national bond rating - agencies. This would also help to ensure the lowest possible mortgage' Interest rates to homeowners. in addition to the obvious benefit of making mortgages available to potential homeowners tn Eden Prairie at favorable interest rates, we feel' the City will derive at least another desirable effect by supporting this kind of p rogram. Support of a home mortgage program would increase the probability of maintain- ing a level of new water and sewer 110014.,Ups to- existing water andsewer -Tines where it would not be necessary to levy taxes to pay fat existing impovaments. This might be especially important during 197g, for the standard eoononto lore , casts are predicting record high mortgage rates and mortgage lending institutions are already severely restricting their lending activity. He are both wtlling to discuss the various home mortgage progroms ir "ore detail with you and/or the Council if you wish. Moreover, if ypu have any other ques- tions regarding these programs, please do not hesitate ta ask is. Mr. Roger Ulstad Page Two A third option would be for the City to form a housing redevelopment authority and, somewhat similarily to what was accomplished in Minneapolis, to use this vehicle to issue the home mortgage revenue bonds. The HRA, in turn, would make the bond proceeds available to home purchasers. The advantage of this option is that, of the three options, the City would maintain the highest level of control over the financing. A disadvantage' of this type of financing might be that an HRA would have to be created for the City, and the City would have to exercise control and management of the HRA. The basic structure of the mortgage pool would be the same under any of the three options, and the home mortgage revenue bonds should be attractive in- vestments because of the underlying security for the bonds. For example, the bonds would have at least the following assurances: 1. Mortgage Loans: All mortgage loans in the mortgage pool are first mortgage liens on an individual housing unit. All mortgage loans are in- sured by a qualified private mortgage insurance company whenever the home- owner makes a downpayment of less than 20 percent of the fair market value. 2. Equity Investment by the Homeowner: Whenever the homeowner makes a downpayment of less than 20 percent of fair market value, he or she will secure private mortgage insurance, thus assuring sufficient equity in each mortgage loan. 3. Debt Service Reserve Fund: This is a capitalized reserve availa- ble in the case of temporary shortfalls in the flow of funds. These funds are invested so that they should produce a positive cash flow during the life of the issue while acting as a safeguard to the flow of funds. 4. PHI Mortgme Insurance: The PMI insurance, purchased by homeowners requiring it, protects the mortgage pool in cases of default or foreclosure. In cases of default the PMI insurance company either takes over the defaulted mortgage and pays the trustee or it pays the insurance liability and assigns , its right to foreclosure proceeds to the trustee. 5. PM! Pool Insurance: This is a relatively new concept which we have assisted in developing along with the PM! insurance companies and the national bond rating agencies. Essentially, the Pool Insurance is a policy for the benefit of the bondholders and an important means of securing an investment grade rating. The pool policy is issued by a private insurance company to guarantee the purchase of the first five percent of the defaulted conventional mortgages in the pool. The normal default rate for conventional mortgages is approximately 8/10 of one percent. Therefore, the pool insurance and the individual PMI insurance combined assure rating agencies of the underlying securities' high quality. e. New housing attracts educated and talented persons and strengthens the City. f. Additional housing will improve the City's tat b Centex would welcome the opportunity to discuss this method of financing further, and in more detail, with the City. Sincerely. CENTEX HOMES MIDWEST, INC. Timothy R.rilor Vice-President 6/8 Page 2 City of Eden Prairie 1/12/79 the project at a fixed interest rate, thus eliminating the inflationary effect on interest rates and providing a commitment that is not currently available in the conventional market. e. Downpayment requirements using tax exempt bonds would be approximately 102 of the value of the home versus 20E to 302 currently required for conventional mortgages. Further, um believe the City will benefit from the use of tax exempt financing because: a. The City has an interest in the availability of adequate hunting to area residents at as low cost as possible. b. Housing costs are at historic highs and appropriate programs aimed at reducing such costs ate des/role, and in the Public interest. e. The existence of adequate shelter end housing is a sigoift factor in attracting and encouraging industry and commerce the employees of *nth, to the City. d. Adequate shelter and housing in the 'City makes leas, likel shift of persons out of the City to other mess. g. The housing proposed to be financed will be made available-to families that otherwise would not be Able to affotd a single ' family home in the City. TRE: aep JAN 1 2 1979 8601 01011161 nd.. Edon Paula, Minnesota 55343 (612) 9414MMI Midwest. Inc. twIrraLww tr..rer'www January 12, 1979 City of Eden Prairie 8950 Eden Prairie Road Eden Prairie, MN 55344 Gentlemen: As you know, Centex has obtained re-zoning and preliminary plat approval for Ridgewood West. This project will provide single family detached houses from the mid 60's. We have been consulting with Piper, Jaffrey and Hopwood, Inc. regarding the use of tax exempt bonds, issued by the City, to provide mortgage financing for the homes in Ridgewood West. This procedure, which we understand to be at no cost, or risk to the City, would allow us to obtain financing at more favorable rates, and will allow the passing of this savings, among others, to the home buyers in the project. Crttex believes that the use of tax exempt bonds to finance home mortgages is desirable because: a. The financing available to the home buyer today is currently restricted as to interest rate, down payment, and credit requirements. Conventional mortgage rates are currently 10 14 and rising. It appears that interest rates, due in part to inflationary pressure, will remain over 10% for the foreseeable future. Tax exempt financing would provide mortgage interest rates approximately 2% under conventional rates, a reduction of $50.00 to $80.00 per month on a homeowner's debt service. b. A 2% reduction in interest rate will allow an income reduction of $3,000.00 to $5,000.00 per year to qualify for the same mortgage amount. This difference would allow approximately 10% more of the Win Cities households to qualify for a single family detached home in Eden Prairie. c. Financing costs paid by the seller (points) and built into price of a home would be eliminated, thus reducing the price of the home. d. Tax-exempt bonds would provide a long term mortLage commitment fcr Thank you for your kind consideration of this matter. Sincere Ostenson Oier 12750 PIONEER TRAIL EDEN PRAIRIE, MINNESOTA 55343 651,2)941 iws, sit • December 27, 1978 Mr. Roger Ulstad Manager City of Eden Prairie 8950 Eden Prairie Road Eden Prairie, Mn. 55344 Dear Mr. Ulstad: In recent weeks, we have heard a great deal of discussion about the possibility of tax exempt industrial revenue bonds being used to finance housing at lower than market interest rates. In fact, it appears that cities such as Bloomington, Burnsville, Vadnais Heights and Minneapolis are well along in making this program a reality. If this is the case, I cannot urge strongly enough the need for Eden Prairie to become involved. The advantage that a neighboring community like Bloomington could have would virtually shut down competing projects in Eden Prairie. Certainly our company, as well as most of the builders that we are associated with, would be interested in such a program. MOM DEVELOPMENT CORPORATiON , . Johg.Woodland President John Crane City of Eden Prairie -2- We at Windsor feel so strongly about the absolute necessity of such financing that we are presently working with bond counsel and under- writers on a proposal to be submitted to the City of Eden P r a i r i e t h a t , should the City determine for whatever reason a general is s u e t o b e unworkable, we shall request consideration for an issue uniquely for Windsor Development .Corporation. I respectfully request that the City give urgent considera t i o n t o t h i s matter, as it is evident that other municipalities are actively aealal on bond Issues, the situation seems to be changing hourly, and that time Is of the essence If we are to ayold being placed at a termin a l marketing disadvantage. Yours sincerely, EJW:mo ITO WINDSOR DEVELOPMENT CORPORATION December 13, 1978 Mr. John Frane Finance Director City of Eden Prairie 8950 County Road 4 Eden Prairie, Minnesota 55344 Dear Mr. Franc: This letter is a result of our telephone conversation of Tuesday in which we discussed the concept of the use of industrial revenue bonds for permanent mortgage financing of homes in Eden Prairie. While I ran not claim to be familiar with the necessary statutes, it is apparent that certain other communities have made the determination that tax free revenue bonds can be made available for home financing as evidenced by the preliminary approval by Bloomington of an eight million dollar issue for Orrin Thompson Homes, Minneapolis of a thirty million dollar issue for general application, Vadnais Heights of a forty-five million dollar issue for Good Value Homes, and Burnsville of a ten million dollar issue for Daley (I), in addition to further issued presently under consideration by the cities of Apple Valley, Burnsville, and Northfield. It is evident that the availability of lower interest rate financing - on the order of 8% to 8/% per annum interest rate - will have a dramatic or traumatic Impact upon the marketability of housing. Windsor Development Corporation has made a major commitment to the City of Eden Prairie and has approximately two hundred fifty lots under some state of development in Its Prairie East Develop- ment. It is self-evident the disastrous impact upon Windsor and the future growth of the City of Eden Prairie if Windsor is constrained by conventional financing instruments which, as you know, consist of conventional mortgages at an interest rate in January, 1979 of 104% per annum, while the City of Bloom- ington and Windsor's competitors one hundred feet away on the east side of County Road 18 are promoting financing through the medium of industrial revenue bonds of 8% to 81% per annum interest rates. As a consequence, I cannot urge the City of Eden Prairie strongly enough to become involved in industrial revenue bond financing. I understand the City staff is evaluating the possibility of a general issue or pool for the use of all builders in Eden Prairie, and I should like to make you aware that if such a pool does become available Windsor Development Corporation would wish an allocation of up to ten million dollars, depending upon the loan parameters. The Minneapolis Star Friday, December 22, 1978 SB VICILMANTACILIONOMPOT CLI '7 r 6,4 Star Photo by Torn S Developers are asking for tax-exempt bonds to keep building houses in Burnsville U.S. Rep. Henry Reuss, chairman of the Houseinking COMMiSiifill. has 'fled the Con- :evasions] Budget Office to study the use of industrial-revenue bond issues forhousing and similar ploi- ects. A spokesman for the budget of- fice said Congress is concerned about the uses of such bonds and the possibility of saturating the bond market with them. The study Is expected to be completed by February. "There are no limits now on the Issuance of these (bonds)." said James N'erther of the isiStii of- fices tex analysis division. If saturation is athWved. then the tate of the lax-exempt bonds would eventuallv have to rise aiLl approach th.q of the MsAd 15 states have adopted laws that allow these types of bonds to be isstwd. By June, as much as Si billion in hoods will have been created under the city issues, the budget office predicts. In a few years, that figure will ap- proach $5 billion to $G billion. which equals the current amount of state ii4ti5, Verdure said. He said these bond issues would cost the federal government more than $200 million in lost revenues. T111. iiiS also is said to be examin- ing the concept. FEDERAL OFFICIALS say the taw that r-tablished these bonds intend( d them fur use on public aroiect$, but tile hands are bring used for quasi -public and private issues. Wit it erie dudes a puttir prni- ect:' "Some people believe developing new housing in the suburbs is a public prolett." Verdier said. "There are others who feel that re- vitalizing the inner thy is a public project. It will be up to the Con- gress to make those decisions when the study is completed ... Unless the genernment acts pretty fast, everybody will be issuing these things." Burnsville's Northrup said that although there are reservations about the proposals before the council, the council "can't undo the first request (by Ridgewood) with- out being liable for any damages that may have been incurred." Developer ThoMPSOil said that 11 tile bond issue is approved. his company woold continue to build in the metille-price bisect. which tanges I nun $50,000 to $100.000. 011 January 16, 1979 STATE OF MINNESOTA CITY OF EDEN PRAIRIE COUNTY OF HENNEPIN The following accounts were audited and allowed as follows: 12-15-78 2567 VOID OUT CHECK 2342 VOID OUT CHECK 12-28-78 2799 PUBLIC EMPLOYEES RETIREMENT ASSN. 2800 STATE OF MINNESOTA 2801 FEDERAL RESERVE BANK 2802 JOHNSON WINE CO. 2803 TWIN CITY WINE CO. 2804 ED PHILLIPS & SONS 2805 MINNESOTA DISTILLERS, INC. 01-03-79 2806 PRAIRIE VILLAGE MALL 01-05-79 2807 HOPKINS POSTMASTER 2808 QUALITY WINE CO. 2809 MIDWEST WINE CO. 2810 OLD PEORIA 2811 INTERCONTINENTAL PACKAGING 2812 EAGLE DISTRIBUTING 2813 GRIGGS COOPER & SO. 2814 GRIGGS, COOPER & CO. 2815 JOHNSON WINE CO. 2816 VOID CHECK 2817 ED PHILLIPS 01-12-79 2818 BARJER SALES COMPANY 2819 BELLIS PAPER 2820 THORPE DISTRIBUTING CO. 2821 LEDING DISTRIBUTING CO. 2822 EAST SIDE BEVERAGE CO. 2823 BEER WHOLESALERS, INC. 2824 HAPPY TYME DIST. 2825 SEVEN UP COMPANY 2826 ROUILLARD BEVERAGE CO. 2827 GOLD MEDAL BEVERAGE 2828 COCA-COLA BOTTLING CO. 2829 DAY DISTRIBUTING CO. 01-09-79 2830 HOPKINS POSTMASTER 2831 HOPKINS POSTMASTER 2832 HOPKINS POSTMASTER 01-10-79 2833 PUBLIC EMPLOYEES RETIREMENT ASSN. 2834 FEDERAL RESERVE BANK 2835 UNITED WAY 01-12-79 2836 RON ANDERSON 2837 BILL BLAKE 2838 LANCE BRACE 2839 LESLIE BRIDGER 2840 THOMAS K. BROWN 2841 JAMES CLARK ( 6.85) (76.27) 3,216.72 7,826.03 2,178.51 611.59 383.76 1,110.04 1,695.23 1,823.13 80.10 1,207.26 1,579.54 441.11 177.14 156.19 1,814.99 687.77 591.22 555.98 60.48 291.67 2,266.05 1,314.45 2,204.70 1,127.30 278.40 126.35 531.89 142.51 187.35 1,754.80 40.00 1,000.00 406.81 3,493.40 2,807.75 30.34 275.00 275.00 137.50 275.00 . 275.00 275.00 Employees withheld and employers contribution 12-28 payroll December taxes withheld Taxes withheld 12-28 payroll Liquor Wine Liquor Liquor January rent-Liquor store Postage for utility bills Wine Wine Liquor Wine Wine Liquor Liquor Wine Liquor Supplies-Liquor store Supplies-Liquor store Beer Beer Beer Beer Mix for Liquor store Mix for Liquor store Beer Mix for Liquor store Mix for Liquor store Beer Bulk mailing fee for 1979 Postage for meter Postage for "The Happenings and Community Services brochure Employees withheld and employers contribution 1-5 payroll Taxes withheld 1-5 payroll Donations withheld 1-5 payroll Uniform allowance 0 It I. II 11 11 It II II 10 . January 16, 1979 BITUMINOUS ROADWAYS 01-12-79 2842 JOHN CONLEY Uniform allowance 275.00 2843 ROGER DANIELSKI N . 275.00 2844 STEVE GEIGER . . 0 275.00 2845 JACK RACKING . . 0 275.00 2846 JOYCE HOLTE . It 275.00 2847 ALLEN LARSON . 0 275.00 2848 CURTIS OBERLANDER I/ II 275.00 2849 JAMES MATSON 0 . . 275.00 2850 RICK RABENORT . . . 275.00 2851 ROBERT TYSON . . 275.00 2852 KEITH WALL 0 0 . 275.00 2853 METROPOLITAN AREA MANAGEMENT ASSN. Membership dues for Roger Ulstad 5.00 2854 ASSOCIATED WELL DRILLERS Equipment parts 52.50 2855 ASTLEFORD EQUIPMENT Equipment parts 14.00 2856 EARL ANDERSEN Street signs 117.85 2857 A & H WELDING Equipment parts-Park Maint. and City garage 157.55 2858 TOM BROWN Reimbursement for clothing repairs damaged on duty 60.00 Projector and speaker-Fire Bond 1,115.00 Tennis court construction-Park Grant 9,260.00 2859 2860 2861 2862 2863 2864 2865 2866 2867 2868 2869 2870 2871 2872 2873 2874 2875 2876 2877 2878 2879 2880 2:1 2882 2883 2884 2885 2886 2887 2888 2889 2890 2891 VOID CHECK JOHN HORAN BRY-AIR, INC. JUDY REAVENS BATTERY TIRE & WAREHOUSE BATHER, RINSROSE, WOLSFELD GARDNER, INC. CITY OF EDINA BRUCE CLABO COLLINS ELECTRIC CO. CONTINENTAL SAFETY EQUIPMENT CROWN RUBBER STAMP CHANHASSEN LAWN & SPORTS CUTLER-MAGNER COPY EQUIPMENT VOID CHECK DISPLAY FIXTURES CO. WARD DAHLBERG DEPARTMENT OF NATURAL RESOURCES DAY TIMERS DALCO DORHOLT PRINTING EDEN PRAIRIE SCHOOLS CHRIS ENGER EDEN PRAIRIE SANITATION EDEN PRAIRIE NEWS FLOMATIC VALVES JOHN GRAHAM SARA GOODENOUGH GROUP HEALTH PLAN GUY'S AUTO SUPPLY GENERAL COMMUNICATIONS BLUMBERG PHOTO SOUND 5.00 110.01 9.70 22.80 Refund-Skating classes Heater elements-Water dept. School expenses-Switchboard training Equipment parts Services-Lotus View Street Imp. and Dell Road 2,384.55 Water samples 57.50 Drivers license renewal-Street Maint. 10.00 Services-Park Maint. 60.90 First aid kitAPreserve skating rink 35.09 Supplies 189.47 Supplies-Tree Disease dept. 18.00 Lime-Water dept. 3,513.42 Supplies-Engineering dept. 467.63 Racks-Liquor store 1,696.00 Expenses 18.80 Water pumping permit 10.00 Supplies-Planning dept. 11.65 Cleaning supplies-Water dept. 37.80 Services and office supplies 984.75 City's share Community Ed program 5,500.00 December expenses 102.00 December services 22.50 December ads 260.44 Maintenance supplies-Water dept. 127.68 Refund skating classes 6.00 Refund skating classes 6.00 January insurance 716.10 Equipment parts 46.09 Radio repairs-Fire dept. 35.84 163 01-12-79 2892 GROSS INDUSTRIAL SERVICES 2893 GENERAL OFFICE PRODUCTS 2894 JACK HACKING 2895 HENNEPIN COUNTY 2896 HENNEPIN COUNTY 2897 HENNEPIN COUNTY 2898 HOPKINS DODGE SALES 2899 INTERNATIONAL SOCIETY CT ARBORICULTURE 2900 CARL JULLIE 2901 O. J. JANSKI 2902 KOKESH 2903 KRAEMER'S HARDWARE 2904 KELLY SERVICES 2905 KRAEMER'S HARDWARE 2906 KARULF HARDWARE 2907 LOCAL GOVERNMENT INFORMATION SYSTEMS 2908 LAKE REGION MUTUAL AID ASSN. 2909 M. E. LANE, INC. 2910 LANG, PAULY & GREGERSON 2911 LEEF BROS., INC. 2912 LUND PAINT 2913 MOODY'S INVESTORS SERVICE 2914 METRO COUNCIL January 16, 1979 Supplies-Liquor store Letter board-City Hall addition Expenses Supplies-Engineering dept. Supplies-City garage Prisoners board Equipment parts Dues-Stuart Fox December expenses Services-Park Planning dept. Books-Community services dept. Supplies Services Supplies Supplies November services Dues for Fire dept. Insurance Legal services Services Carpet-City Hall addition Bond rating service Aerial photo prints-Community Service Administration 7.78 178.50 15.75 139.00 90.96 713.00 89.46 40.00 224.00 250.00 5.90 64.80 119.20 216.41 276.52 1,382.78 10.00 1,359.00 4,973.60 103.10 62.25 1,000.00 7.10 2915 MINNESOTA RECREATION & PARK ASSN. 2916 MINNESOTA ASSN. OF ASSESSING OFFICIALS 2917 MINNEAPOLIS STAR 2918 MINNESOTA RECREATION AND PARK ASSN. 2919 MATT'S AUTO SERVICE 2920 METROPOLITAN WASTE CONTROL COMMISSION 2921 ROBERT MARTZ 2922 MEDCENTER HEALTH PLAN 2923 MINNESOTA VALLEY ELECTRIC 2924 MERIT PRINTING 2925 MEDICAL OXYGEN 2926 METROPOLITAN FIRE EQUIP. 2927 MID-CENTRAL FIRE & SAFETY COMPANY 2928 MINNEGASCO 2929 NORTHWESTERN NATIONAL BANK 2930 ANDREA NERHUS 2931 NORTHERN STATES POWER 2932 NORTHWESTERN BELL 2933 JAMES OLSON 2934 OSWALD FIRE HOSE 2935 OLSEN CHAIN AND CABLE CO. Team registrations 174.00 Dues-Assessing dept. Ads 125.00 59.67 Membership dues-Sandra Werts and Robert Lambert 170.00 Towing services 45.00 Jan. & Feb. sewer charges 36,189.10 January expenses 140.45 January insurance 1,003.20 Street lighting membership fee 2.00 Printed forms-Building dept. 137.00 Compressed air-Fire dept. 20.34 Oxygen-Fire dept. 31.25 New fire truck equipment-Fire bond 480.69 Services 208.55 Bond service charge 60.75 Switchboard school expenses 7.30 Services 89.21 Services 1,873.74 Refund skating classes Fire hose-Fire bond 1,700.00 5.00 18.90 Equipment parts /94 A 1.• January 16, 1979 01-12-79 2936 PRAIRIE OFFSET PRINTING 2937 PITNEY BOWES 293N PHYSICIANS HEATH PLA 2939 PERIM, HARVEY, SIMONS A THORFINNSON Legal services 2940, RAPID COPY INC. Liquor V) cards 2941 '.... RADIO SHACK Intercoms-Liquor store 2942 : =NEWSPAPERS Employment ad-Public Safely dept. 2943 ',-.S0NIC ALARM CORPORATION Alarm servicerAlquor store ,2944 r:',112KOON SMITH =MANY Oil and,gasolinefar equipment 81.68- 2945 'SEARS ROEBUCK Mechanics tools for Park Maint. $1,0691 ISmwom4ter and table for Liquor store $205 1474.12• 2946 IVRiTY Oi MINNESOTA School expenses-Joyce Holte 28.00 2947 Hydraulic fluid 109.60 29 SANDRA WERTS December expenses 19.60 2949 TRtNWAl2.,. Folding partitions-New Fire buildings 3,325.00 290 HOWARD I4EEDLES BERGENIJOFF - --la Final payment-Schooner Hive, .pr 2951 naRROLL-MOLLER SerVices$Wrkwtr trunk %amid Lake Arn*:, - ASSOC.,. INC.° Well pumphoosta; sttro Count', Vista; Eden 'View 1; Norseman Park 2nd Add.; AMC° on TM169 and Super Value swr. 2952 BWROfh, CHRIS, INC Contract-East-West Am° Road water main extension (Final) 9. 2953 N0OLAND45502 tATES INC. Contract-Swr-Mtr. trunk Round Lake area Est. No. 2 2964 RicHAR0 ,0a4014 INC. tontract.St&Htr Country Vista Est. Na. 5 _ __ 2955 A & ICCONSfRUCTION, INC. Contract-Well pumphouse 43 Est. Na. 4 13.394, 2956 PROGRESSIVE CONTRACTORS Contract-TH169-494 Est. NQ. 13(Final) 2967 TOM WOW, ARCHITECT Contract-City Hall addition 1,471 2968 HENNEPIN COUNTY MARDIS DEPT. ' 2969 C.O. FIELD 0:241 A1tY TOTAL Services-Conmunity services Dept, 11.20 L N Postage meter • 40.30 January insurance 4,579.89 4,506.75 1.00 69.95 66.00 182,50 144: Certified copies of dmedc-Egnineeting IE Services-New Fire buildings 4L4 ,A7?,