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11-10-97 agendaCITY OF RICHFIELD, MINNESOTA MONDAY, NOVEMBER 10, 1997 REGULAR CITY COUNCIL MEETING 7:00 P.M. COUNCIL CHAMBERS AGENDA INTRODUCTORY PROCEEDINGS CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF MINUTES OF THE (1) REGULAR CITY COUNCIL MEETING OF OCTOBER 27, 1997; (2) SPECIAL JOINT CITY COUNCIURICHFIELD SCHOOL BOARD MEETING OF NOVEMBER 3, 1997; AND (3) REGULAR CITY COUNCIL STUDY SESSION OF NOVEMBER 3, 1997 PRESENTATIONS INDIVIDUALS WHO WISH TO ADDRESS THE COUNCIL ARE REQUESTED TO PRINT THEIR NAME AND ADDRESS ON THE SPEAKER'S REGISTER FOR THE RECORD. OPPORTUNITY FOR CITIZENS TO ADDRESS THE COUNCIL ON ITEMS NOT ON THE AGENDA AGENDA APPROVAL 2. COUNCIL APPROVAL OF AGENDA ADMINISTRATIVE REPORTS AND OTHER BUSINESS 3. CONSIDERATION OF VARIOUS PURCHASE OFFERS FOR FORMER LAMBERT LUMBER PROPERTY COUNCIL LETTER NO. 274 CONSENT CALENDAR 4. CONSENT CALENDAR CONTAINS SEVERAL SEPARATE ITEMS WHICH ARE • ACTED UPON BY THE CITY COUNCIL IN ONE MOTION. ONCE THE CONSENT CALENDAR HAS BEEN APPROVED, THE INDIVIDUAL ITEMS AND RECOMMENDED ACTIONS HAVE ALSO BEEN APPROVED. NO FURTHER COUNCIL ACTION IS NECESSARY. HOWEVER, ANY COUNCIL MEMBER MAY • REQUEST THAT AN ITEM BE REMOVED FROM THE CONSENT CALENDAR AND PLACED ON THE REGULAR AGENDA FOR COUNCIL DISCUSSION AND ACTION. ALL ITEMS LISTED ON THE CONSENT CALENDAR ARE RECOMMENDED FOR APPROVAL. A. CONSIDERATION OF APPROVAL OF AUTHORIZATION TO EXTEND CONTRACT NO. A01384 WITH HENNEPIN COUNTY TO ALLOW CONTINUED ACCESS TO PROPERTY INFORMATION SYSTEM C.L. 275 B. CONSIDERATION OF APPROVAL OF RESOLUTION DESIGNATING CITY'S CONTRIBUTION TOWARD HEALTH, TERM LIFE AND DENTAL INSURANCE PREMIUMS FOR GENERAL SERVICES AND MANAGEMENT EMPLOYEES C.L. 276 C. CONSIDERATION OF APPROVAL OF LETTERS OF UNDERSTANDING MODIFYING COLLECTIVE BARGAINING AGREEMENTS FOR 1998 INSURANCE CONTRIBUTIONS C.L. 277 D. CONSIDERATION OF APPROVAL OF APPOINTMENT TO MINNEHAHA CREEK WATERSHED DISTRICT'S BLUE WATER COMMISSION C.L. 278. PUBLIC HEARINGS 5. PUBLIC HEARING TO CONSIDER REQUEST FOR NEW ON-SALE LIQUOR AND SUNDAY LICENSE .FOR GR OF MINN., INC., DBA THE GROUND ROUND, 1500 • EAST 78TH STREET COUNCIL LETTER NO. 279 6. PUBLIC HEARING REGARDING APPEAL OF VARIANCE DENIAL FOR 6718 LAKEVIEW AVENUE COUNCIL LETTER NO. 280 RESOLUTIONS 7. CONSIDERATION OF APPROVAL OF RESOLUTION AWARDING SALE OF $750,000 TAXABLE GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES __ __-_ " 1997; FIXING FORM AND SPECIFICATIONS; DIRECTING EXECUTION AND DELIVERY; AND PAYMENT COUNCIL LETTER NO. 281 PROPOSED ORDINANCES 8. CONSIDERATION OF FIRST READING OF ORDINANCE REGULATING AND LICENSING TATTOO BUSINESSES WITHIN RICHFIELD COUNCIL LETTER NO. 282 . 9. CONSIDERATION OF FIRST READING OF ORDINANCE AMENDMENT TO ZONING ORDINANCE, SECTION 526, ESTABLISHING ZONING REGULATIONS FOR TATTOO ESTABLISHMENTS COUNCIL LETTER NO. 283 10. CONSIDERATION OF FIRST READING OF TRANSITORY ORDINANCE VACATING STREETS IN NEW FORD TOWN AND RICH ACRES COUNCIL LETTER N0.284 ADMINISTRATIVE REPORTS AND OTHER BUSINESS AIRPORT BUSINESS 11. AIRPORT STATUS REPORT. CORRESPONDENCE 12. LEGISLATIVE REPORT • COUNCIL CHOICE 13. COUNCIL DISCUSSION ITEMS 14. CLAIMS AND PAYROLLS 15. ADJOURNMENT Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Services Director at 861-9702. /D CITY OF RICHFIELD, MINNESOTA Council Letter No. 2s4 Agenda November 10, 1997 Issue Statement: First reading of a transitory ordinance vacating streets in New Ford Town and Rich Acres. Background: The Metropolitan Airports Commission (MAC) is requesting that the City vacate street right-of--way in New Ford Town and Rich Acres. The buyout of properties in these two neighborhoods is nearing completion. A final step in the buyout process is for the City to vacate its rights-of--way. Because there are a few remaining properties in the New Ford Town neighborhood, MAC is proposing that the vacations take place in phases. The first two phases include portions of all streets except Standish Avenue. Portions of 20th Avenue, Standish Avenue and East 64th Street are part of the. third phase of vacations. Normal processing of the transitory ordinance to vacate the streets would result in an ordinance effective date of January 16, 1998. MAC requests that the third phase of streets not be effectively vacated until a later date. The specific date should be known by second reading. The vacations are subject to a storm sewer utility easement along 21st and 22nd Avenues. This storm sewer services the golf course. The easement can be vacated at such time that the golf course is no longer in operation. The City will continue to service the streets until the vacations are effective. The City will remove its street lights and street signs when the streets are no longer in use. The vacation request does not include Longfellow Avenue and East 66th Street. Longfellow Avenue is under the jurisdiction of the Minnesota Department of Transportation and 66th Street will not be vacated until such time that the golf course is no longer operational. Recommended Motion: Adopt a resolution accepting the petition by the Metropolitan Airports Commission to vacate right-of-way in New Ford Town and Rich Acres and approve first reading of a transitory ordinance vacating right-of--way and schedule public hearing and second reading for December 8, 1997. Basis of Recommendation: 1. The buyout of property in New Ford Town and Rich Acres by MAC is nearly complete. It is appropriate to vacate the streets as they are no longer needed by the public. • l~-I 2. The vacation would be effected in phases to accommodate those residents and businesses remaining. 3. A utility easement would be maintained for the storm sewer that services the golf course. Alternative Recommendation: Deny the vacation at first reading. Discussion/Decision Mode: First reading is set for November 10, 1997 reading will be scheduled on December 8, If approved, a public hearing and second 1997.. Respectfully submitted, Jam 's .Prosser City Manager JDP:ds • ~~ ~~ RESOLUTION NO. RESOLUTION AUTHORIZING RECEIPT OF STREET RIGHT-OF-WAY PETITION AND CALLING FOR PUBLIC HEARING (New Ford Town and Rich Acres) WHEREAS, a petition has been filed with the City Clerk requesting the vacation of street right-of--way as described as follows: 19th Avenue, 20th Avenue, 21st Avenue, 22nd Avenue, Standish Avenue, 23rd Avenue, East 63rd Street, East 64th Street and East 65th Street, as dedicated in the plat of NEW FORD TOWN ADDITION, HENNEPIN COUNTY, MINNESOTA The east-west alley north of 66th Street between the east line of 22nd Avenue and the west line of Standish Avenue, as dedicated in the plat of NEW FORD TOWN ADDITION, HENNEPIN COUNTY, MINNESOTA The east-west alley north of 66th Street between the east line of Longfellow Avenue and the west line of 19th Avenue, as dedicated in the plat of NEW FORD TOWN ADDITION, HENNEPIN COUNTY, MINNESOTA 19th Avenue, 20th Avenue, 21st Avenue, East 68th Street and East 69th Street, as dedicated in the plat of RICH ACRES ADDITION, HENNEPIN COUNTY, MINNESOTA; and WHEREAS, said petition complies in all respects with the requirements of Richfield Ordinance. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. The petition for vacation of street right of way in New Ford Town Addition and Rich Acres Addition is received 2. A public hearing on the vacation in said petition shall be held on December 8, 1997. 3. The City Clerk is directed to publish notice of such hearing in the official newspaper of the City and post notice of said hearing in the manner provided by Richfield Ordinance. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of November, 1997. Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk ~ ~ -3 pETTI i01~ ~QR VACA'Y'ION 4F S'Y'YtE~TS, ALLEYS AND I'~BLIC GRtfXIl~TDS 4 ~` Y1 ~J~ ~?i C Ta: .Richfield City Cau~acil We, tha undersigncd ~,_w~ of ]and abutting 5~ a-~C.c~ v~p ,hereby petition that such public land be vested by the Ciry of Richfteld. *Si ~ Address t z~~ ~r dray} ~ ~~ * Signatures rttay not be remoyeti rafter the petitipn is satbrnrtled tv tote City. ' n rac /D-~ • TRANSITORY ORDINANCE NO. AN ORDINANCE VACATING PORTIONS OF 19TH, 20TH, 21ST, 22ND AND STANDISH AVENUES THE CITY OF RICHFIELD DOES ORDAIN: Section 1. The following streets have been dedicated to the public for street right of way purposes: 19th Avenue, 20th Avenue, 21st Avenue, 22nd Avenue, Standish Avenue, 23rd Avenue, East 63rd Street, East 64th Street and East 65th Street, as dedicated in the plat of NEW FORD TOWN ADDITION, HENNEPIN COUNTY, MINNESOTA The east-west alley north of 66th Street between the east line of 22nd Avenue and the west line of Standish Avenue, as dedicated in the plat of NEW FORD TOWN ADDITION, HENNEPIN COUNTY, MINNESOTA The east-west alley north of 66th Street between the east line of Longfellow Avenue and the west line of 19th Avenue, as dedicated in the plat of NEW FORD TOWN ADDITION, HENNEPIN COUNTY, MINNESOTA 19th Avenue, 20th Avenue, 21st Avenue, East 68th Street and East 69th Street, as dedicated in the plat of RICH ACRES ADDITION, HENNEPIN COUNTY, MINNESOTA. Section 2. The Metropolitan Airports Commission is, or will become by the effective date of this ordinance, the fee owner of the properties that abut the streets to be vacated. Section 3. The Metropolitan Airports Commission has petitioned for the vacation of the following portions of 19th Avenue, 20th Avenue, 21st Avenue, 22nd Avenue, 23rd Avenue, East 63rd Street, East 64th Street, East 65th Street, East 68th Street, and East 69th Street: • 63rd Street (30 foot right-of--way) between the East line of Longfellow Avenue and the West line of Standish Avenue, as curved. • 64th and 65th Streets between the East line of Longfellow Avenue and the West line of 20th Avenue. • 64th and 65th Streets between the East line of Standish avenue • and the West line of 23rd Avenue. I D -S • 65th Street between the East line of 20th Avenue and the West • line of Standish Avenue. • The east-west alley north of 66th Street between the east line of Longfellow Avenue and the west line of 19th Avenue, as dedicated in the plat of NEW FORD TOWN ADDITION, HENNEPIN COUNTY, MINNESOTA • 19th, 20th, 21st, and 22nd Avenues between the South line of 63rd Street and the North line of 64th Street. • 19th, 21st, and 22nd Avenues between the South line of 64th Street and the north line of 65th Street. • 19th Avenue between the South line of 65th Street and the North line of 66th Street. • 21st Avenue between the South line of 65th Street and the North line of the vacated East-West alley north of 66th Street. • 22nd Avenue between the South line of 65th Street and the north line of the East-West alley North of 66th Street. • 23rd Avenue between the North city line of Richfield and the North line of 66th Street. • All streets in RICH ACRES ADDITION East of the East line of Longfellow Avenue and/or the East line of Trunk Highway 77. (referred to herein as the "Vacated Area, Phases I and II") • Section 4. The Metropolitan Airports Commission has petitioned for the vacation of the following portions of 19th Avenue, 20th Avenue, 21st Avenue, 22nd Avenue, Standish Avenue, East 64th Street and the east- west alley north of 66th Street between the east line of 22nd Avenue and the west line of Standish Avenue: • 64th Street between the East line of 20th Avenue and the West line of Standish Avenue. • 20th Avenue between the North line of 64th Street and the North line of 66th Street. • Standish Avenue between the North city line of Richfield and the North line of 66th Street. • 21st Avenue between the North line of vacated East-West alley North of 66th Street, and the North line of 66th Street. • 22nd Avenue between the North line of East-West alley north of 66th Street, and the North line of 66th Street. • The East-West alley North of 66th Street between the East line of 22nd Avenue and the West line of Standish Avenue. (referred to herein as the "Vacated Area, Phase III") • /O -( • Section 5. The Metropolitan Airports Commission has agreed to convey to the City a drainage and utility easement over portions of the Vacated Area, Phase I and I I and Phase III, as depicted in Attachment A, as the City determines to be necessary for the continued maintenance and operation of existing public utility facilities. The proposed vacation of the Vacated Area, Phase I and II and Phase III, therefore will not adversely affect the ability of the City to maintain, repair or replace any utility facilities that may be located with the area to be vacated. Section 6. The Council finds that, subject to the drainage and utility easement, there will no longer be a public need for a street easement over the Vacated Area, Phase I and II and Phase III, as described in Section 3 of this ordinance. Section 7. The street easement over the Vacated Area, Phase I and II, as described in Section 4 of this- Ordinance, is hereby vacated, effective 30 days following publication, in accordance with City Charter Chapter 3.09. Section 8. The street easement over the Vacated Area, Phase III, as described in Section 5 of this Ordinance, is hereby vacated, effective , 1998. Passed by the City Council of the City of Richfield, Minnesota this th day • of , 1997. Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk • /D -~ P :nt _1 N 300 0 300 600 Feet November 4, 1997 ATTACHMENTA ~i~w ~nRr~ T^w~ • 3 ~-~, z w Q • Q 3 Z RICH ~CR~S 8801 B80 8801 '.:.8800 1 8800 4 3 7 2 W ~ 6806 a 8805 8804 _ BB06 ? ~ ~~- ~ 8804 Z gg09 8810 ^' 8811 8810 8813 8810 - , 8815 8814 Z`'8815 88]4 Q 4 88]7 8820 ~ 8821 8820 ::~ 8821 8820 3 ~ 8821 1 882. Q 8829 Q, 0 8924 ~.. 8825 1 9 6924 J 4 ~ s _ ~ P297 L.J 8829P 8828 +' 8837 - 8829 8828 ' 88 J, f. 4 A - ~ 0 8834 P333 8835 P32 8834 ~ 8835 P315 ,; ~ _ S J 38 8838 6839 _ 6838 -- _1 7 88x5 88aa 88.5 8844 7 •- --_..._--•-- -f_-sr ~-f--r~9-t~h•-~i-REF •--_._......~__. PROPOSED PHASES FOR STREET VACATION PHASE I PHASE II PHASE III ~~~ /~ INDICATES OCCUPIED '~~~~ " EUILDINC r'1 l_. VCU1J1 11UI V LUVI VLf11\ i 9 CITY OF RICHFIELD, MINNESOTA Council Letter No. 2s3 Agenda November 10, 1997 Issue Statement: First reading of an ordinance amendment to the Zoning Ordinance, Section 526, establishing zoning regulations for tattoo establishments. Background: On April 8, 1996, the City Council passed a moratorium on the development of tattoo establishments. The City Council directed the Advisory Board of Health to study the issues relating to tattoo establishments and make a recommendation on regulations to the Council. The Advisory Board of Health determined that the City should consider zoning as well as licensing regulations for tattoo businesses. The Board requested that the Planning Commission review the land use issues relating to tattoo businesses and-make a recommendation to the City Council. The Planning Commission determined that some locational restrictions for tattoo establishments would be appropriate. The Commission recommends that tattoo establishments be classified as conditional uses in the general commercial or industrial . district. Conditions should be placed on the location of these establishments to minimize the negative impact this type of use could have on the aesthetics or image of a neighborhood. Conditions should also limit the exposure and access to this type of use by minors and persons under the influence of alcohol. Recommended Motion: Approve first reading of an ordinance amendment to the Zoning Ordinance, Section 526, establishing zoning regulations for tattoo establishments; set a public hearing and second reading for December 8, 1997. Basis of Recommendation: 1. A review of the issues by the Advisory Board of Health indicates that there is a need to regulate tattoo establishments. The Board recommends that zoning regulations, as well as licensing requirements, be adopted. 2. Tattooing is an activity restricted to adults; tattoo establishments should not be located in close proximity to areas where children are commonly present. 3. Tattoo establishments cannot give tattoos to persons under the influence of alcohol or drugs; tattoo establishments should not be located in close proximity to businesses that serve alcohol. • n LJ ~-/ 4. Concentration of businesses such as tattoo establishments can have a negative impact on the aesthetics and image of a neighborhood. 5. The location of businesses such as tattoo establishments near entry streets to the City can have a negative impact on the image of the City as a whole. 6. Legal counsel has reviewed the proposed ordinance and finds it acceptable. 7. On January 29, 1997 the Planning Commission voted unanimously to recommend approval of the ordinance amendment. Alternative Recommendation: Deny this ordinance amendment at first reading. Discussion/Decision Mode: First reading is set for November 10, 1997 reading will be scheduled on December 8, If approved, a public hearing and second 1997. Respectfully submitted, Jams .Prosser City anager JDP:ds • 9-~. Bill No. i Amendment to the City Code of the City of Richfield The City of Richfield Does Ordain: A. Section 526 of Appendix B to the Richfield City Code entitled "Zoning: Commercial Districts" is amended by amending Section 526.27, Subd. 20 to read as follows: Subd. 20. Tattoo Establishments provided the following conditions are met• a) such uses shall be licensed under Section XXX of the City Code• b) such uses shall be located not less than 100 feet from any residential zoned propertyl c) such uses shall be located not less than 350 feet from any school church, park, day care center or public library;. d) such uses shall be located not less than 350 feet from any establishment selling and/or serving alcoholic beverages e such uses shall be located not less than 100 feet from the ri h - - y t ~f way , of an entry street to the city. For purposes of this subdivision an entry street is defined as Penn Avenue Lyndale Avenue Nicollet Avenue Portland Avenue, Cedar Avenue and 12th Avenue f) such uses shall be located not less than 1 000 feet from other tattoo establishments: B. The remaining. subdivisions of subsection 526.27 are renumbered accordingly. Passed by the City Council of the City of Richfield, Minnesota this day of 1997. ATTEST: Martin J. Kirsch, Mayor Thomas P. Ferber, City Clerk G G 0 o i He rn L Z y ^~ W ^~ i W O O s.. O ,~wj - I O ~J O J ^~ W ^ L MOIL= 3nV Nol~wl 0: sr»~ ON 3nV ONv NC 31tl 13l „3< H1a0M AanE 1Ntl! a 13i al3 3ntl 3lv HJI a LOIq 0 s M Ntl~ NOl 3nVl N: ll3' M101! 1N3 Nana 3ntl 53N 3AV atl03J H1eL Hui H191 Nol3nnvamrie Hts~ H1oL H1EL H1Zl Hllt H10L 101113 OOVJIHJ snewmoo ~avd ONVUIVO V ONtlllaOd H15 H16 NO1NIlJ aas ONL SN3n31S lsl „3JSIV,9 a0M1N3M Aaf~STl Id 1M/Stl3ld aNVas 131aaVH al3ldava \tl 3lVONAI HJIaOIV 11JVAa9 XtldIOJ 1NOdna Nosa3w3 LJOW3ad oavalo LOIOBWnH ONNaI s3wvr xoNr Nveol NtlOtlOW NO1M3N a3Ail0 3Atl NN3d N33n0 il3ssna Nd01213H5 SVWOHl NOldn 1N3JNIA Vaf~SVM ds3xa3x `? z N N 0 O ~+ ++ ~ ~ ~ J J ~ ,a ~ J w' ww,, W W .L ,L N L ai a ^W 111W1 1..4. 0 0 0 O N O N CITY OF RICHFIELD, MINNESOTA Council Letter No. 2s2 • Agenda November 10, 1997 Issue Statement: First reading consideration of an ordinance regulating and licensing tattoo businesses within the City of Richfield. Background: At their April 8, 1996 meeting, the City Council approved a moratorium prohibiting the establishment of tattoo parlors pending a study by the Richfield Advisory Board of Health. The study by the Advisory Board of Health was to include responses to the following questions: • Should tattoo parlors be licensed within the City of Richfield? • If a license should be established, what should be included in the licensing regulations? • Should tattoo parlors be limited regarding location? If the Advisory Board of Health determines that there should be a limit to location, the matter would need to be referred to the Planning Commission for consideration. In their initial discussions, the Advisory Board of Health determined that tattoo parlors in the City of Richfield should be licensed and that they should be limited regarding their location. The limit to location issue was referred to the Richfield Planning Commission for their recommendation. The Advisory Board of Health met with the Bloomington Public Health Division and the City . Attorney's office to review other ordinances and to learn about the possible health risks connected to the practice of tattoos. An ordinance has been completed and is presented to the City Council for a first reading at this time. Recommended Motion: Approve first reading of an ordinance regulating and licensing tattoo businesses within the City of Richfield and set a second reading and public hearing for December 8, 1997. Basis of Recommendation: 1. The ordinance is being recommended for the purpose of protecting the health, safety and welfare of the citizens of the City. Alternative Recommendation: 1. The Council could decide not to approve the first reading of the tattoo ordinance which would mean that tattoo parlors could operate in the City without being regulated or licensed once the moratorium has expired. Discussion/Decision Mode: Approve first reading of an ordinance regulating and licensing tattoo businesses in the City of Richfield is being presented for Council consideration at this time. Respectfully submitted,. Jame .Prosser City Manager JDP:ds 8-1 SECTION 630 -TATTOO, BODY PIERCING. BODY BRANDING AND BODY • PAINTING ESTABLISHMENTS 630.01 Regulation of tattoo body_piercing body branding and bodypainting services. Subdivision 1. Purpose statement. The purpose of this section is to regulate the business of tattooing, body piercing, body branding, or body painting in order to protect the health and welfare of the general public. The City Council finds that the experience of other cities indicates that there is a connection between tattooing .and hepatitis and other health problems. The City Council finds that stringent regulations governing tattooing can minimize the hepatitis and disease risk and therefore protect the general health and welfare of the community. 630.03 Definitions. Subdivision 1. For Purposes of this subsection the terms defined in this subsection have the meanings given them. Subd. 2. "Body piercing" means any method of puncturing the skin of a person by the aid of needles or other instrument designed or used to puncture the skin for the purpose of inserting jewelry or other objects in or through the human body. "Body piercing" shall not refer to any medical procedure performed by a licensed physician or medical practitioner. Subd. 3. "Body branding" means impressing or burning a mark or figure on the skin of a person with a hot object or flame. • Subd. 4. "Body painting" means applying color, pigment or paint to an area of the skin that exceeds 3 square inches. Subd. 5. "Clean" means the absence of dirt, grease, rubbish, garbage, odor and other offensive, unsightly, or extraneous matter. Subd. 6. "Good Repair" means free of corrosion, breaks, cracks, chips, pitting, excessive wear and tear, leaks, obstructions, and similar defects so as to constitute a good and sound condition. Subd. 7. "Enforcement Officer" means the Director of Public Safety or their designee. Subd. 8. "Issuing Authority" means the Director of Public Safety or their designee. Subd. 9. "Tattooing" means the marking of the skin of a person by insertion of permanent colors by introducing them through puncture of the skin. 630.05 LICENSE REQUIRED No person shall operate any establishment where tattooing, body piercing, body branding, or . body painting is practiced, nor engage in the practice of tattooing, body piercing, body branding or body painting without first procuring a license from the Department of Public Safety. a-a 630.07 Contents of application for license. Subdivision 1. Forms. Every application for a license under this subsection shall be made on a form supplied by the Department of Public Safety. Subd. 2. Contents of application. In addition to information which may be required, the applicant shall state whether the applicant is a natural person, corporation, partnership, or other form of organization. Subd. 3. Additional information: natural persons. If the applicant is a natural person, the following information shall be furnished: (a) The name, place and date of birth, street residence address, and phone number of the applicant. (b) Whether the applicant has ever used or has been known by a name other than the applicant's name, and if so, the name or names used and information concerning dates and places where used. (c) The name of the business if it is to be conducted under a designation, name, or style other than the name of the applicant and a certified copy of the certificate as required by Minnesota Statutes, Section 333.01. (d) The street addresses at which the applicant has lived during the preceding five (5) years. (e) The type, name and location of every business or occupation in which the applicant has been engaged during the preceding five (5) years, and the name(s) and address(es) of the applicant's employer(s) and partner(s), if any, for the preceding five (5) years. (f) Whether the applicant holds a current tattooing, body piercing, body branding or body painting license from any other governmental unit. (g) Whether the applicant has previously been denied a tattooing, body piercing, body branding or body painting license from any other governmental unit. . (h) The location of the business premises and the legal description thereof. (i) Whether all real estate and personal property taxes that are due and payable for the premises to be licensed have been paid, and if not paid, the years and amounts that are unpaid. (j) Whenever the application is for premises either already in existence, planned or under construction or undergoing substantial alterations, the application shall be accompanied by a set of preliminary plans showing the design of the proposed premises to be licensed. If the plans of design are on file with the City of Richfield Building and Inspection Division, no plans need be submitted to the Issuing Authority. (k) Such other information the City Council or the Department of Public Safety may require. Subd. 4. Additional information: partnership. If the applicant is a partnership, the following information shall be furnished: (a) The name(s) and addresses(es) of all general and limited partners and, for each general partner, require the information under subsection 3 of this subsection. (b) The name(s) of the managing partner(s) and the interest of each partner in the business to be licensed. . (c) A true copy of the partnership agreement shall be submitted with the application. If the partnership is required to file a certificate as to a trade name pursuant to Minnesota Statutes, Section 333.01, a certified copy of such certificate shall be b3 attached to the application. • Subd. 5. Additional information: corporation. If the applicant is a corporation or other organization, the following information shall be furnished: (a) The name of the corporation or business formed, and if incorporated, the state of incorporation. (b) A true copy of the certificate of incorporation. If the applicant is a foreign corporation, a certificate of authority as required by Minnesota Statutes, Section 303.06, shall be attached to the application. (c) The name of the manager(s) proprietor(s), or other agent(s) in charge of the business and, for each such person, the information required under subsection 3 of this subsection. Subd. 6. Execution. The application must be executed as follows: (a) an application by a natural person, by that person; (b) an application by a corporation, by an officer of the corporation; (c) an application by a partnership, by apartner; (d) an application by an incorporated association, by the manager or managing officer. Any falsification on a license application shall result in the denial of a license. • 630.09 Application verification. Subdivision 1. All applications shall be referred to the Department of Public Safety for verification and investigation of the facts set forth in the application, including any necessary criminal background checks to assure compliance with this subsection. 630.11 License period and fees. Subdivision 1. Amounts. The license fee is fixed in appendix D. The term of the license is the calendar year or the remaining portion thereof. Licenses will not be prorated. Subd. 2. Payment. At the time of an original application for a license, the license fee shall be paid when the application is filed. At the time of renewal of a license, the total license fee shall be paid when the application is filed. Licenses expire on December 31 of each year. Subd. 3. Investigation fee. At the time of each original application for a license, the applicant shall also pay an investigation fee set by appendix D. If the expenses of the investigation exceed the investigation fee, the Public Safety Department staff shall so notify the applicant and shall require the applicant to pay an additional investigation fee as provided in appendix D which the Public Safety Director deems necessary to complete the investigation of the applicant. The. applicant shall pay such an additional investigating fee within five days after notification. If such additional investigation fee is not paid within the five day period, the city will give no further • consideration to the application. fi-~f .Subd. 4. Refunds. No part of a license or investigation fee shall be refunded except in accordance with this subsection. 630.13 Persons ineligible for license. Subdivision 1. No license shall be issued to an applicant who is a natural person if such applicant: (a) Is a minor at the time the application is filed; (b) Has been convicted of any crime directly related to the occupation licensed as prescribed by Minnesota Statutes, Section 364.03, subd. 2. and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of the licensed occupation as prescribed by Minnesota Statutes, Section 364.03, subd. 3; (c) Does not have the legal authority to be employed in the United States; or (d) Is not of good moral character or repute. Subd. 2. No license shall be .issued to a partnership if such partnership has any general partner or managing partner: (a) Who is a minor at the time the application is filed; (b) Who has been convicted of any crime directly related to the occupation licensed as prescribed by Minnesota Statutes, Section 364.03, subd. 2, and who has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of the licensed occupation as prescribed by Minnesota Statutes, . Section 364.03, subd. 3; (c) Does not have the legal authority to be employed in the United States; or (d) Is not of good moral character or repute. Subd. 3. No license shall be issued to a corporation or other organization if such applicant has any manager, proprietor, or agent in charge of the business to be licensed; (a) Who is a minor at the time the application if filed; (b) Who has been convicted of any crime directly related to the occupation licensed as prescribed by Minnesota Statutes, Section 364.03, subd. 2, and who has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of the licensed occupation as prescribed by Minnesota Statutes, Section 364.03, subd. 3; (c) Does not have the legal authority to be employed in the United States; or (d) Is not of good moral character or repute. 630.15. General license requirements. Subdivision 1. General licensing requirements are as follows: (a) Tattoos on Minors. No person shall tattoo, pierce, brand or paint any person under the age of eighteen (18) except in the presence of, and with the written permission of, the parent or legal guardian of such minor. (b) Prohibition on License Transfer. The license granted is for the person and the premises named on the approved license application. No transfer of a license shall g-S . be permitted from place-to-place or from person-to-person without first complying with the requirements of an original application, except in the case in which an existing noncorporate licensee is incorporated and incorporation does not affect the ownership, control, and interest of the existing licensed establishment. (c) Hours of Operation. A licensee shall not be open for business for tattooing before 7:00 a.m. nor after 11:00 p.m. (d) Licensed Premises. The tattoo, body piercing, body branding, body painting establishment license is only effective for the compact and contiguous space specified in the approved license application. If the licensed premises is enlarged, altered, or extended, the licensee shall inform the Department of Public Safety. (e) Effect of License Suspension or Revocation. No person shall solicit business or offer to perform tattooing, body piercing, body branding or body painting services while under license suspension or revocation by the City. (f) Maintenance of Order. The licensee shall be responsible for the conduct of the business being operated and shall at all times maintain conditions of order. (g) Employee Lists. The licensee shall provide to the Department of Public Safety a list of employees who perform tattooing, body piercing, body branding or body painting at the licensed establishment and shall verify that each employee has received a copy of Section 630. (h) Liability Insurance. All licensees shall have at all times a valid certificate of insurance issued by an insurance company licensed to do business in the State of Minnesota indicating that the licensee is currently covered in the licensed business by a liability insurance policy. The minimum limits of coverage for such insurance shall be: (1) each claim, at least $200,000; (2) each group of claims, at least $500,000. Such insurance shall be kept in force during the term of the license and shall provide for notification to the City prior to termination or cancellation. A certificate of insurance shall be filed with the City. 630.17 Health and sanitation requirements. Subdivision 1. No person shall engage in the practice of tattooing, body piercing, body branding or body painting at any place in the City without complying with the following regulations: (a) Lavatory Requirement. Every place where tattooing, body piercing, body branding or body painting is practiced shall be equipped with an adequate and conveniently located toilet room and hand lavatory for the accommodation of employees and patrons. The hand lavatory shall be supplied with hot and cold running water under pressure; shall be maintained in good repair at all times; and shall be kept in a clean and sanitary condition. Toilet fixtures and seats shall be of a sanitary open front design and readily cleanable. Easily cleanable, covered receptacles shall be provided for waste materials. Every lavatory facility shall be provided with an adequate supply of hand cleansing compound and single-service sanitary towels or hand-drying devices. (b) Skin Infection. No person having any skin infection or other diseases of the skin shall be tattooed, pierced, branded or painted. ~~~ c) Sterilization and Disposal of Bio-Hazardous Materials. All needles and razor blades and other equipment used for piercing, branding or puncturing shall be individually pre- packaged, pre-sterilized and disposable. No such equipment shall be used on more than one customer. All bio-hazardous waste shall be disposed of in accordance with law, and disposal procedures shall be approved by the Health Officer. Approved sterilizing solutions and methods may be used for the purpose of sterilizing instruments other than needles and razor blades when such sterilizing solutions and methods are approved by the Department of Public Safety or their designee. (d) Skin Preparation Procedures. The following procedures shall be used for skin preparation: (4) Each operator shall wash his or her hands thoroughly with soap and water following the hand washing procedures as approved by the Department of Public Safety or their designee and then dry them with a clean towel before and. after each tattooing, branding, piercing or painting. Operators with skin infections of the hand shall not perform any tattooing, body piercing, body branding or body painting services. (5) Whenever it is necessary to shave the skin, pre-packaged, pre-sterilized, disposable, razor blades shall be used. (6) The skin area to be tattooed, pierced, branded or painted shall be thoroughly cleaned with germicidal soap, rinsed thoroughly with water, and sterilized with an antiseptic solution approved by the Department of Public Safety or their designee. Only single-service towels and wipes shall be used in the skin cleaning process. (7) After tattooing, piercing or branding, a sterile dressing must be applied to the tattooed, pierced or branded area. (a) Operating Furniture. All tables, chairs, furniture, or area on which a patron receives a tattoo, any body piercing, body branding or body painting shall be covered by single- service disposable paper or clean linens, or in the alternative, the table, chair, or furniture on which the patron receives a tattoo, body piercing, body branding or body painting shall be impervious to moisture and shall be properly sanitized after each tattoo, body piercing, body branding or body painting. (b) Towels. Every operator shall provide single-service towels or wipes for each customer or person and such towels or wipes shall be stored and disposed of in a manner acceptable to the Department of Public Safety or their designee. (c) Garments of Operator. Every operator shall wear clean garments when engaged in the practice of tattooing, body piercing, body branding or body painting. If garments are contaminated with blood or body fluids, such garment shall be removed, changed, and/or discarded or cleaned by dry cleaning methods. (d) Pigments. Pigments used in tattooing shall be sterile and free from bacteria and noxious agents and substances including mercury. The pigments used from stock solutions for each customer shall be placed in asingle-service receptacle, and such receptacle and ~~ remaining solution shall be discarded after use on each customer in accordance with procedures approved by the Department of Public Safety or their designee. (viii) Minimum Floor Space. There shall not be less than 150 square feet of floor space at the place where the practice of tattooing, body piercing, body branding or body painting is conducted, and said place shall be so lighted and ventilated as to comply with the standards approved by the Department of Public Safety or their designee. (a) Influence of Alcohol and Drugs. No person shall practice tattooing, body piercing, body branding or body painting while under the influence of alcoholic beverages or illicit drugs. No customer shall be tattooed, pierced, branded or painted while under the influence of alcoholic beverages or illicit drugs. (b) Written Instructions. The operator shall provide the person tattooed, pierced or branded with printed instructions on the approved care of the skin during the healing.. process. (c) Living Quarters. No place licensed as a tattoo, body piercing, body branding or body painting establishment shall be used or occupied as living or sleeping quarters. 630.19 Revocation. Subdivision 1. General. The City Council may revoke the license or suspend the license if the licensee submitted false information or omitted material information in the license process required. The city council may suspend or revoke a license for the violation of any provision or condition of this section or any other local law governing the same activity during the license period or any criminal law during the license period which adversely affects on the ability to honestly, safely, or lawfully conduct a tattooing, body piercing, body branding or body painting business. Subd. 2. A revocation or suspension shall be preceded by written notice to the licensee and a hearing before the City Council. The notice shall give at least eight (8) days notice of the time and place of the hearing and shall state the nature of the charges against the licensee. The notice shall be mailed to the licensee at the most recent address listed on the application. 630.21 Issuance of temporary tattooing bodespiercing body brandin og r bod~paintin event license. Subdivision 1. A person may obtain a temporary license to conduct tattooing, body piercing, body branding or body painting provided that the following license requirements are met: (a) Duration of Event. The event is no longer than four (4) continuous days. (b) Number of Events. The same person or organization has had no more than four (4) tattooing, body piercing, body branding, body painting events in the same calendar year. (c) Security Measures. The Director of Public Safety or his/her designee has approved the security measures for the event. • ~-8 (d) Health Inspection. The Department of Public Safety or their designee has reviewed the health and sanitation measures for the event and has inspected each vendor space for the event. (e) Liability Insurance. Liability insurance has been obtained to cover the event or in the alternative each vendor has procured insurance to cover the vendor's operations at the event. The minimum limits of coverage for such insurance shall be: (1) each claim, at least $200,000; (2) each group of claims, at least $500,000. A certificate of insurance shall be filed with the City. (f) The licensee must comply with the requirements at subsection 630.15 (a), (c), (f), and subsection 630.17 (a -1). Subd. 2. Temporary application. The temporary license application shall request the following information: (a) The applicant's name and current address. (b) The applicant's current employer. (c) -The applicant's addresses for the previous five (5) years. (d) The applicant's date of birth, home telephone number, weight, height, color of eyes, and color of hair. (e) Whether the applicant has ever used or been known by a name other than the applicant's name, and if so, the name or names and information concerning dates and places where used. (f) The location where the event will be conducted. (g) The number of tattoo, piercing, branding or painting booths that will be operational at the event. (h) The names and addresses of persons in charge of the event. Subd. 3. Background investigation. The Department of Public Safety shall verify the information supplied on the temporary license application and shall investigate the background, including the current background of the applicant. Within seven (7) days of receipt of a complete application, the Department of Public Safety shall grant or deny the application. tJ""0 • AMENDMENT TO APPENDIX D SECTION 8. COMMERCIAL BUSINESS AND TRADE LICENSES AND PERMITS TYPE OR PERMIT SECTION DESCRIPTION FEE OR LICENSE REQUIRING (19) Tattoo, Body Piercing, 630 (a) Tattoo, Body Piercing, 1 yr. $500 Body Painting or Body Body Painting or Body Branding Branding (b) Initial investigation fee (nonrefundable) 1 yr. $1500 • • CITY OF RICHFIELD, MINNESOTA Council Letter No. 281 Agenda November 10, 1997 Issue Statement: Adoption of a resolution awarding the sale of $750,000 Taxable General Obligation Improvement Bonds, Series 1997; fixing their form and specifications; directing their execution and delivery; and providing for their payment.. Background: At the October 27, 1997 meeting, the City Council approved the sale of Taxable General Obligation Improvement Bonds in conjunction with the TOLD Development, Meridian Crossings. project. A bond sale report, which provided greater detail of the nature and structure of the bond sale, was attached to the October 27 Council Letter. Subsequent to the October 27 action, the City's financial advisor, Mr. Sid Inman, of Ehlers and Associates, Inc., has undertaken the necessary activities to solicit bid proposals for the sale of the taxable General Obligation Improvement Bonds. The. bid sheet, which summarizes the bidders and bid results, will be provided by Inman at the Council meeting on November 10, as the deadline for submitting bids for the bonds was 12 noon on November 10, 1997. After reviewing the bid sheet, Inman will propose an appropriate qualified bond buyer so that the award of the bond sale may be made. Attached to this Council Letter is a resolution which rovides for-the award of the sale of p the Taxable General Obligation Improvement Bonds and authorizes other administrative actions. The areas left blank in the resolution will be filled in with specific information as it relates to the buyer by Ehlers and Associates, Inc. at the time of the Council meeting. The closing date for the bond sale is tentatively scheduled for the first week in December 1997. Recommended Motion: Adopt a resolution awarding the sale of $750,000 Taxable General Obligation Improvement Bonds, Series 1997; fixing their form and specifications; directing their execution and delivery; and providing for their payment. Basis of Recommendation: 1. The City Council has previously approved the sale of $750,000 Taxable General Obligation Improvement Bonds, Series 1997, at the October 27 City Council meeting. 2. The sale of the improvement bonds is in conjunction with certain public improvements which are necessary for the completion of the TOLD Development, Meridian Crossings project. r~ ~' 3. At the October 27 City Council meeting, the City authorized retaining Ehlers and Associates as its independent fnancial advisor for the sale of these bonds. Ehlers and Associates, in turn, were authorized to solicit proposals in accordance with Minnesota's Statutes. 4. Based on the bid document submitted, it is appropriate for Ehlers and Associates, Inc. to summarize and tally bid results and propose a qualified lowest bidder and bond buyer to the City Council. Alternative Recommendation: 1. Defer this proposal to a future date. 2. Based on the results of the bond sale, the City Council could decide not to sell bonds at this time. Discussion/Decision Mode: If the City Council wishes to proceed with this bond sale, it is recommended that the award of bonds be made at the November 10, 1997 City Council meeting so that the closing on the bond sale and the completion of the process may take place in a timely manner with respect to the TOLD Project. Respectfully submitted, James Prosser City Manager JDP:ds Attachment r . Extract of Minutes of Meeting of the -City Council of the City of Richfield, Hennepin County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Richfield, Minnesota, was duly held in the City Hall in said City on Monday, November 10, 1997, commencing at 7:00 o'clock P.M. The following members were present: and the following were absent: • The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's $750,000 Taxable General Obligation Improvement Bonds, Series 1997. The City Manager presented a tabulation of the proposals which had been received in the manner specified in the Terms of Proposal for the Bonds. The proposals were as set forth in Exhibit A attached. After due consideration of the proposals, Member then introduced the following written resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption: • BMB132667 RC145-335 `7.3 • RESOLUTION NO. A RESOLUTION AWARDING THE SALE OF $750,000 TAXABLE GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1997; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council of the City of Richfield, .Hennepin County, Minnesota (City) as follows: Section 1. Sale of Bonds. 1.01. The following assessable public improvements (the Improvements) have -been made, duly ordered or contracts let for the construction. thereof, by the City pursuant to the provisions of Minnesota Statutes, Chapter 429 (Act): Project Designation & Description: Total Project Cost Meridian Crossing Project $750,000 • 1.02. The proposal of (Purchaser) to purchase $750,000 Taxable General Obligation Improvement Bonds, Series 1997. (Bonds) of the City described in the Terms of Proposal therefor is hereby found and determined to be a reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price of $ plus accrued interest to date of delivery, for Bonds bearing interest as follows: Year of Interest Maturi Rate 1999 2000 2001 2002 2003 2004 2005 2006 Year of Interest Maturi Rate 2007 2008 2009 2010 2011 2012 2013 True interest cost: 1.03. .The sum of $ being the amount proposed by the Purchaser in excess of $ will be credited to the Debt Service Fund hereinafter created. The Cit~• Manager is directed to deposit the good faith check of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers forthwith. The Mayor and City Manager are directed to execute a contract~with the Purchaser on behalf of -the City. BMB132667 RC145-335 2 ~-~ 1.04. The City will forthwith issue. and sell the Bonds pursuant to Minnesota Statutes, Chapter 429 (Act) in the total principal amount of $750,000, originally dated December 1, 1997, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward, bearing interest as above set forth, and maturing serially on February 1 in the years and amounts as follows: Year Amount Year Amount 1999 $20,000 2007 $50,000 2000 35,000 2008 55,000 2001 35,000 2009.- 60,000 2002 35,000 2010 65,000 2003 40,000 2011 65,000 2004 40,000 2012 75,000 2005 45,000 2013 80,000 2006 50,000 1.05. Optional Redemption. The City may elect on February 1; 2005, and on any day thereafter to prepay Bonds due on or after February 1, 2006. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, .the City will notify DTC (as defined in Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and • each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. Section 2. Registration and Payment. 2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or .made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been .paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing August 1, 1998, to the registered owners of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not that day is a business day. 2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Re ig'ster. The Registrar must keep at its principal corporate. trust office a bond register in which the Registrar provides for the registration of ownership of Bonds BMB132667 RC145-335 3 ~-~ and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. .Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity as requested by the- registered owner or the owner's attorney in writing. (d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improver or Unauthorized Transfer. When a Bond is presented to the • Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, .deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes and payments so made to registered owner or upon the owner's order will be .valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charles. The Registrar may impose a charge upon the. owner thereof for a transfer or exchange of Bonds, sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the .mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, BM8132667 RC145-335 upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the 4 ~- ~ Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) not more than 60 and not less than 30 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of the proceedings .for the .redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 2.04. Appointment of Initial Re ig_ stray. The City appoints Norwest Bank Minnesota, National Association, Minneapolis, Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar.. Upon .merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which -event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City must transmit to the Registrar monies sufficient for the payment of all principal and interest then due. 2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the City Manager and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that all signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of any Bond, that signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds. need not be signed by the same representative. The executed certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and. authenticated, the City BMB132667 RC145-335 ~-~ Manager will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 2.06. Temnorary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3. Form of Bond. 3.01. The Bonds will be printed or typewritten in substantially the following form: [Face of the Bond] No. R- UNITED STATES OF AMERICA $ STATE OF MINNESOTA COUNTY OF HENNEPIN .CITY OF RICHFIELD TAXABLE GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 1997 • Date of Rate Maturi Original Issue CUSIP December 1, 1997 Registered Owner: Cede & Co. The City of Richfield, Minnesota, a duly organized and existing municipal corporation in Hennepin County, Minnesota (City), acknowledges itself to be indebted and for value received hereby promises to pay to the Registered Owner specified above or registered assigns, the principal sum set forth above on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable February 1 and August 1 in each year, commencing August 1, 1998, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by Norwest Bank Minnesota, National Association, Minneapolis, Minnesota, as Bond Registrar, Paying Agent, BMB132667 RC145-335 6 ~~ Transfer Agent and Authenticating Agent, or its designated successor. under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively. become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on February 1, 2005, and on any day thereafter to prepay Bonds due on or after February 1, 2006. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify Depository Trust Company (DTC) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. Additional provisions of this Bond are contained on the reverse hereof and such provisions for all purposes have the same effect as though fully set forth in this place. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Richfield, Hennepin County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. Dated: CITY OF RICHFIELD, MINNESOTA (Facsimile) (Facsimile) City Manager Mayor CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. NORWEST BANK .MINNESOTA, NATIONAL ASSOCIATION By Authorized Representative BMB132667 RC145-335 7 ~~ [Reverse of the Bond) This Bond is one of an issue in the aggregate principal amount of $750,000, all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on November 10, 1997 (the Resolution), for the purpose of providing money to defray the expenses incurred and to be incurred in making local improvements, pursuant to and in full conformity with the home rule charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Chapter 429, and the principal hereof and interest hereon are payable primarily from special assessments against property specially benefitted by local improvements, as set forth in the Resolution, to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency in special assessments pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing, upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar. may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND- AGREED that all acts, conditions and things required by the home rule charter of the City and the Constitution and laws of the State of Minnesota, to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed. any constitutional, statutory or charter limitation of indebtedness. The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full according to applicable laws or regulations: BNID132667 RC145-335 7 -~/b TEN COM -- as tenants UNIF GIFT MIN ACT Custodian in common (Gust) (Minor) TEN ENT -- as tenants under Uniform Gifts or by entireties Transfers to Minors JT TEN -- as joint tenants with right of survivorship and Act . . not as tenants in common (State) Additional abbreviations may also be used though not in the above list. ASSIGNMENT For .value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the .said Bond. on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ("STAMP"), the Stock. Exchange Medallion Program ("SEMP"), the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Bond .Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: • BhID132667 RC145-335 9 ~-l i (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the. name of the person last noted below. Signature of Date of Registration Registered Owner Officer of Re istrar Cede & Co. Federal ID #13-2555119 • 3.02. The .City Manager is directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and to cause the opinion to be printed on or accompany each Bond. Section 4. Payment; Security Pledges and Covenants. 4.01. (a) The Bonds are payable from the Improvement Bonds, Series 1997 Debt Service Fund (Debt Service Fund) hereby created, and the proceeds of special assessments (Assessments) levied or to be levied for the improvements described in Section 1.01 (Improvements) financed by the Bonds are hereby pledged to the Debt Service Fund. If a payment of principal or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the City Manager is directed to pay such principal or interest from .the general fund of the City, and the general fund will be reimbursed for the advances out of the proceeds of Assessments when collected. There is appropriated to the Debt Service Fund (i) capitalized interest financed from Bond proceeds, if any, (ii) any amount over the minimum purchase price paid by the Purchaser, and (iii) the accrued interest paid by the Purchaser upon closing .and delivery of the Bonds. (b) The proceeds of the Bonds, less the appropriations made in paragraph (a), together with any other funds appropriated for the Improvements and Assessments collected during the construction of the Improvements will. be deposited in a separate construction fund (which may contain separate .accounts for each Improvement) to be used solely to defray expenses of the • Improvements and the payment of principal and interest on the Bonds prior to the completion and payment of all costs of the Improvement. Any balance remaining in the construction fund after completion of the Improvements may be used to pay the cost in whole or in part of any other BMB132667 RC145-335 10 . ~-~a • improvement instituted under the. Act. When the Improvements are completed -and the cost thereof paid, the construction account is to be closed and subsequent collections of Assessments for the Improvements are to be deposited in the Debt Service Fund. 4.02. It is hereby determined that the Improvements will directly and indirectly benefit abutting property, and the City hereby covenants with the holders from time to time of the Bonds as follows: (a) The City has caused or will cause the Assessments for the Improvements to be promptly levied so that the first installment will be collectible not later than 1998 and will .take all steps necessary to assure prompt collection, and the levy of the Assessments is hereby authorized. The City Council will cause to be taken with due diligence all further actions that are required for the construction of each Improvement financed wholly or partly from the proceeds of the Bonds, and will take all further actions necessary for the final and valid levy of the Assessments and the appropriation of any other funds needed to pay the Bonds and interest thereon when due. (b) In the event of any current or anticipated deficiency in Assessments, the City Council will levy ad valorem taxes in the amount of the current or anticipated deficiency. (c) The City will keep complete and accurate .books and records showing: • receipts and disbursements in connection with the Improvements, Assessments levied therefor -and other funds appropriated. for their payment, collections thereof and .disbursements therefrom, monies. on hand and, the balance of unpaid Assessments. (d) The City will cause its books and records to be audited at least annually and will furnish copies of such audit reports to any interested person upon request: 4.03. It is hereby determined that the estimated collections of Assessments and interest thereon for payment of principal and interest on the Bonds will produce at least five percent in excess of the amount needed to meet when due, the principal and interest payments.on the Bonds and that no tax levy is needed at this time. 4.04. The City Manager is authorized and directed to file a certified copy of this resolution with the Taxpayer Services Division Manager of Hennepin County and to obtain the certificate required by Minnesota Statutes, Section 475.63. Section 5. Authentication of Transcript. 5.01. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished, may be deemed representations of the City as to the facts stated therein. BMB132667 11 RC145-335 `~-~3 . 5.02. The Mayor and City Manager are authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. 5.03. .The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses (other than amounts payable to Kennedy & Graven, Chartered as Bond Counsel) to Resource Bank & Trust Company, Minneapolis, Minnesota on the closing date for further distribution as directed by the City's financial adviser, Ehlers and Associates, Ina Section 6. Book-Entr~ystem; Limited Obligation of Citv. 6.01. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set' forth in Section 1.04 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Bond. Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns (DTC). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC. . 6.02. With respect to Bonds registered in the registration books kept by the. Bond Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (Participants) or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Bond Registrar,) of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, or interest on the Bonds. The City, the Bond Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Bond Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Paying. Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by -the Bond Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, or .interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Bond Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City of a written notice to the effect that DTC has determined to substitute a new nominee in place. of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and upon BMB132667 RC145-335 12 7-/~ receipt of such a notice, the City will promptly deliver a copy of the same to the Bond Registrar and Paying Agent. 6.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (Representation Letter) which shall govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Bond Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation letter with respect to the Bond Registrar and Paying Agent, respectively, to be complied with at all times. 6.04. Transfers Outside Book-Entr~ystem. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its .responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Bond Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 6.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in the Representation Letter. Section 7. Continuing Disclosure. 7.01. Participating underwriters need not comply with the continuing disclosure requirements of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the "Rule"), because the offering is in a principal amount less than $1,000,000. Consequently, the City will not enter into any .undertaking to provide continuing. disclosure of any kind with respect to the Bonds. :~ BPID132667 RC145-335 13 ~~/~ Passed and adopted this 10th day of November, 1997.. CITY OF RICHFIELD, MINNESOTA Mayor Attest: • BPID132667 RC145-335 14 ~- ~~ The motion for the adoption of the foregoing resolution was duly seconded by Member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. • • BM$132667 RC145-335 ls' ~-~~ STATE OF MINNESOTA j COUNTY OF HENNEPIN ) SS. CITY OF RICHFIELD ) I, the undersigned, being the duly qualified and acting City Manager of the City of Richfield, Hennepin County, Minnesota, do hereby certify that I have cazefully compazed the attached and foregoing extract of minutes of a regulaz meeting of the City Council of the City held on November 10, 1997 with the original minutes on file in my office and the extract is a. full, true and correct copy of the minutes insofaz as they relate. to the issuance and sale of $750,000 Taxable General Obligation Improvement Bonds, Series 1997 of the City. WITNESS My hand officially as such City Manager and the corporate seal of the City this day of , 1997. • City Manager Richfield, Minnesota (SEAL) BMB132667 RC145-335 16 ~~~ r: STATE OF MINNESOTA COUNTY OF HENNEPIN COUNTY AUDITOR' S CERTIFICATE AS TO REGISTRATION WHERE NO AD VALOREM TAX LEVY I, the undersigned Manager of the Taxpayer Services Division of Hennepin County, Minnesota, acting as County Auditor, hereby certify that a resolution adopted by the City Council of the City of Richfield, Minnesota, on November 10, 1997, relating to Taxable General Obligation Improvement Bonds, Series 1997, in the amount of $750,000, dated December 1, 1997, has been filed in my office and said obligations have been registered on the register of obligations in my office. WITNESS My hand and official seal this day of 1997. ivlcuiagvl, 1 A1i~7~1yG1 ~ICIVl(:CJ L1v1SlOr1 Hennepin County, Minnesota (SEAL) BY. Deputy BMB132667 RC145-335 17 lLJ CITY OF RICHFIELD, MINNESOTA Council Letter No. 2so Agenda November 10, 1997 Issue Statement: Public hearing regarding an appeal of a variance denial for 6718 Lakeview Avenue. Background: The owner of 6718 Lakeview Avenue requested a front setback variance to construct a deck onto the front of the house. The 14 by 56 foot deck would be located eight feet from the front property line. The application received front and rear yard setback variances in 1993 to allow construction of a family room addition and a 360 square foot deck in the side yard. The proposed deck would connect to this existing deck. The property has an unusually large amount of right-of--way in the north corner of the property. For this reason, the applicant believes that a smaller front setback should be applied to the property. If, however, the lot had a standard 12 foot right-of--way, the proposed deck still could not be constructed without a variance. The Hearing Examiner denied the variance request with the finding that the application did not meet the first of the four criteria necessary to grant a variance. The Hearing Examiner found that there is not an undue hardship that denies the applicant reasonable use of the .property. The owner currently enjoys reasonable use of the property. Recommended Motion: Deny the variance appeal on the basis that the variance does not meet the City and State tests for granting a variance. Basis of Recommendation: 1. There is not an undue hardship that denies the applicant reasonable use of the property. 2. There are unique circumstances related to the property (the property is irregularly shaped and there is an extraordinary amount of right-of--way to the north of the property); however, if the unique circumstances did not exist, the applicant still could. not construct the proposed deck without a small variance (three to four feet). 3. Notice of the hearing was published in the Sun-Current and mailed to property owners and occupants within 350 feet of the subject property. -1 Alternative Recommendation: 1. Approve the request with a finding that the variance .meets the City and State tests for a variance. 2. Approve the request for a front yard setback variance with a finding of fact that the request does meet the State and City tests for a variance and subject to the following stipulation: • That the applicant apply for and receive a vacation of a portion of right-of--way, the amount of which to be determined by the Public Works Director, and that the applicant assume all costs associated with processing the vacation. Discussion/Decision Mode: A public hearing is scheduled for 7:00 p.m. on Monday, November 10, 1997. The hearing will be held in the City Council Chambers of Richfield City Hall, 6700 Portland Avenue. Respectfully submitted, Jame rosser City Manager JDP:ds Attachment 6718 LAKEVIEW AVENUE SETBACK VARIANCE ~^z PGA ~~~~ P~~ ~~ OP' i o, . ~~ ~a ~ r .EXISTING DECK ?p, .~ • ~ v i ~'9 ~~` ~~~ __ 9`F AROpFRTY ~. yG~ ~/N` ss. E fj ,~ by `~ PROPOSED ~-DECK ~ ADDITION. ~ HOUSE ~.~ `~s GARAGE t a • `90 ~•: A~9~ / L l~,y~ ~~ i SHED r NORTH SCALE: 1" = 30' SITE PLAN DATE: 9-24-97 J City Manager Mayor Council James D. Prosser Martin J. Kirsch Susan Rosenberg Michael Sandahl ~ECision v~r~i~ncE ~-3 Kristal Stokes Russ Susag '.CASE NO.'' 97-V-7 APPLICANT: Dorothy, Kranz PROPERTY LOCATION: 6718 Lakeview Avenue South HEARING'EXAMINER: Connie Murray APPEARANCES:'. Dorothyl,Kranz; John' Stavros; Judy Hagny; Radford Renstrom Based upon the evidence presented at the hearing, the undersigned makes the following findings of fact, determinations, and decision: FINDINGS OF FACT i 1. Notice of public hearing was proper. Notice was published in the Sun-Current and mailed to property owners within 350 feet of the site as required by City Ordinance. The ten day notice requirement was also met. 2. The street address and legal description of the property in question are as follows: 6718 Lakeview Avenue; Lot 1, Block 10, Fairwood Park Addition 3. The zoning of the site in question is R-1 (low density single family residential). 4. The variance requested is to Section 521 of the 1995 Zoning Code. The variance would reduce the front setback requirement from 30 feet to 8 feet. 5. The reason for the request is to allow construction of a deck addition. 6. A decision is being made within 60 days of the submission of a complete application. The applicant submitted a complete application on September 9, 1997, requiring a decision by November 1, 1997. The Urban Hometown An Equal Opportunity Employer Variance Decision (~ - 6718 Lakeview Avenue Page 2 • DETERMINATIONS Minnesota Statutes Section 462.357, Subdivision 6, provides for the granting of vaziances to the literal provisions of the zoning regulations in instances where their enforcement would cause undue hardship to the owners of the property under consideration. In determining whether to grant or deny the requested variance, I specifically make the following conclusions: 1. Would strict enforcement of the literal provisions of the ordinance cause undue hardship, because the property could not reasonably be used under the conditions of the official controls? I conclude: There is not an undue hardship which denies the applicant reasonable use of the property. The owner currently enjoys reasonable use of the property. 2. Are there unique circumstances or unusual conditions affecting the property or building which were not created by the land owner? I concluder There aze unique circumstances related to the roe .The lot is irre larl P P rtY ~ Y shaped. In addition, there is an extraordinary amount of right-of--way (other than that used for the street) to the north of the property. If, however, the lot were squared off and a standard 12 foot right-of-way from the back of the curb applied to the lot, the proposed deck could still not be constructed without a small variance. 3. Will the granting of the variance alter the essential chazacter of the neighborhood or locality? I conclude: There would be minimal adverse impacts on the neighborhood. If the street. were ever widened, the deck could cause visibility problems. .~ 4. Is the vaziance being requested the minimum vaziance necessary to alleviate the undue hardship? I conclude: The vaziance requested is not the minimum variance necessary to alleviate the undue hardship because there is not an undue hardship. Variance Decision 6718 Lakeview Avenue Page 3 ~~~ 5. Are there any stipulations which must be attached to the granting of the variance to ensure compliance and to protect adjacent properties? (If yes, specify stipulations under "DECISION" on the next. page). I conclude: (circle one) YES No DECISION Based upon the determinations, the request is ~~1Vl~l~ STIPULATIONS: 1. • NOTE: THIS VARIANCE WILL EXPIRE ONE YEAR AFTER THE DATE ISSUED UNLESS THE CONSTRUCTION WORK REQUIRING THE VARIANCE HAS BEEN COMPLETED. APPEALS Any party not in agreement with the decision of the Hearing Examiner may appeal the decision by delivering a notice of appeal within ten days of the date .the decision is filed. The appeal shall be to the Board of Adjustment and Appeals c/o Community Development Director, 6700 Portland Avenue South, Richfield, MN 55423 HEARING EXAMINER CITY OF RICHFIELD DATE: ~~~ `~ F Copy: Tom Ferber, City Clerk Rick Regnier, Building Official 5 . CITY OF .RICHFIELD, MINNESOTA Council Letter No. 279 Agenda November 10, 1997 Issue Statement: Consideration of a request for a new on-sale liquor and Sunday license for GR of Minn., Inc., dba The Ground Round, 1500 East 78th Street. Background: Presently, GR of Minn., Inc. holds a liquor license for the premises located in Richfield, Minnesota. The shares of stock of GR of Minn., Inc. are owned by the Ground Round, Inc., whose shares in turn are owned by GRH of NJ, Inc. GRH of NJ, Inc. is a wholly owned subsidiary of Ground Round Holdings, Inc. which, in turn, is a wholly owned subsidiary of Ground Round Restaurants, Inc., a publicly held corporation. A transaction will be taking place where all the shares of Ground Round Restaurants, Inc. will be acquired in a tender offer transaction by GRR H~Idinns I I C Thus (ERR Holdings, LLC, will be the new shareholder of Ground Round Restaurants, Inc. Richfield's City Attorney has determined that a change of this nature is considered by ordinance, to require a new license. The interest in GRR Holdings, LLC, will be owned 2% by Thomas J. Russo and 98% by • Boston Ventures Limited Partnership V. As a result of this transaction, Thomas J. Russo will be the sole officer (President and Director) of the G.R. of Minn., Inc.; GRH of NJ, Inc.; Ground Round Holdings, Inc.; and President and Director of Ground Round Restaurants, Inc. Daniel Scoggin will cease to be an officer and director of Ground Round Restaurants, Inc. but all of the other existing officers will continue. The General Manager of the licensee is not being changed. Public Safety has completed a criminal history check on Thomas J. Russo and found that he does not have a criminal record. Mr. Russo has resided at his current address for the past ten years and none of the police agencies in the jurisdiction have had any contact with him. When the officer from Sherborn, MA telephoned City staff in response to the request for information, the officer commented that he personally knew Mr. Russo and that he is a fine, upstanding citizen. Recommended Motion: Approve the request for a new on-sale and Sunday license-for GR of Minn., Inc., dba The Ground Round, 1500 East 78th Street. Basis of Recommendation: 1. A criminal history check of the individuals involved in this transaction found no problems. ~~J • 2. All the required paperwork, fees and documents have been supplied to the City. Alternative Recommendation: The Council could choose to not approve the request for a new on-sale liquor and Sunday license for GR of Minn., Inc., dba the Ground Round, 1500 East 78th Street. This would mean that they would be unable to sell any alcohol. Discussion/Decision Mode: Approval of a request for a new on-sale and Sunday license for GR of Minn., Inc., dba The Ground Round, located at 1500 East 78th Street, is presented for Council consideration at this time. Respectfully submitted, Jame .Prosser City ager JDP:ds • • CITY OF RICHFIELD Memorandum DATE: November 12, 1997 TO: Betsy Christensen FROM: Tom Ferber f'~,(% SUBJECT: Council Letter regarding Ground Round liquor license In Council Letter No. 279 from November 10, 1997 City Council meeting regarding On- sale Liquor License for Ground Round, the following stipulation was missing from the recommended motion: Approve the request for a new on-sale and Sunday license for GR of Minn., Inc., dba The Ground Round, 1500 East 78t" Street, with the following stipulation: 1. That the requirements are met in Resolution No. 7380. This stipulation will be added in the minutes. CC: Cheryl Krumholz ~~ CITY OF RICHFIELD, MINNESOTA • Council Letter No. 278 Agenda November 10, 1997 Issue Statement: Appointment to Minnehaha Creek Watershed District's Blue Water Commission. Background: The Minnehaha Creek Watershed District is convening a Blue Water Commission with the objective to assist in identifying the causes and recommend solutions to the poor water quality in Lake Nokomis and Lake Hiawatha. The Commission is expected to meet twice a month until a report is completed which will analyze data taken from an intensive water monitoring program and recommend and rank potential solutions. The Richfield City Council has been asked to appoint one representative and one alternate to the Commission. In addition, the Richfield City Council has been asked to name a technical representative to a Technical Advisory Committee which will analyze monitored results and make recommendations to the Commission for consideration. Recommended Motion: Appoint Council Member Russ Susag as a Richfield representative to serve on the Minnehaha Creek Watershed District Blue Water Commission and appoint Public • Works Director Mike Eastling as an alternate Richfield representative to serve on the Commission and appoint Public Works Director Mike Eastling as a technical representative to sit on a Technical Advisory Committee which will make recommendations to the Blue Water Commission. Basis of Recommendation: 1. Minnehaha Creek Watershed District is seeking to convene a task force known as the Blue Water Commission. The Commission is to be comprised of individuals committed to identifying the causes of poor and declining water quality in Lake Nokomis and Lake Hiawatha and to recommend solutions. 2. Minnehaha Creek Watershed District will have a Technical Advisory Committee to analyze monitored results and make recommendations to the Commission for consideration. 3. The Richfield City Council has been asked to name a representative and alternate to the Commission and a technical representative to the Committee. Alternative Recommendation: 1. The City of Richfield may choose not to participate on the Blue Water Commission nor the Technical Advisory Committee. However, the City of Richfield is committed to excellent water quality and portions of Richfield are included in the Minnehaha • Creek Watershed District. ~~-i 2. The City Council may choose to name representatives and alternates other than those identified in the recommended motion. Discussion/Decision Mode: The Council is asked to take action on November 10, 1997 as the Commission is expected to begin meeting as soon as appointments are made. Respectfully submitted, Jame D. Prosser City Manager JDP:ds • yc CITY OF RICHFIELD, MINNESOTA • Council Letter No. 277 Agenda November 10, 1997 Issue Statement• Consideration of Letters of Understanding modifying collective bargaining agreements for 1998 insurance contributions. Background: Earlier this year, the City settled long-term collective bargaining agreements with all five of its union-represented bargaining units. Each of those contracts provided fora $20 maximum monthly insurance contribution for employer provider 1998 health insurance coverage. Recently, the City and union received notice of insurance premium increases for 1998. The rates will increase about 11 percent or approximately $50 per month for family coverage. This rate increase is extraordinarily high and would erode a significant portion of the pay increases provided for many employees covered by these units. Staff is proposing aone-time adjustment to the collective bargaining agreements of the following bargaining units: International Union of Operating Engineers (I.U.O.E.) Local 49 representing Labor and Trades L.E.L.S. Local 123 representing Police Officers and Investigator/Agents Local 225 representing 911 Dispatchers Local 162 representing Police Supervisors International Association of Firefighters Local 1215 representing Firefighters The result of approving this action would be a $30 per month maximum employer health insurance contribution instead of the $20 now provided for in each of the respective labor agreements. While the City is under no obligation to make this change, this is a significant good-faith gesture on the part of the City to show employees that the City's concern for its employees extends beyond the limitations of the collective bargaining agreements. It would also more equally share the burden of the large insurance premium increases that employees will experience for 1998. Recommended Motion: Authorize the City Manager to execute Letters of Understanding with the City's five collective bargaining units increasing the 1998 maximum health insurance contribution by $10 per month. ~I~-I Basis of Recommendation: 1. The 1998 family health insurance premiums for City employees will increase by approximately $50 per month. 2. Current labor agreements provide a 1998 increase employer contribution of $20. 3. The additional percentage would better allow the employer to share a greater portion of the extra insurance contribution. 4. The annual cost for this change for all five bargaining units would be about $8,000. Alternative Recommendation: The City Council could decide not to approve the additional $10 per month increase. Discussion/Decision Mode: If the City Council decides to approve this recommended increase, it should be at the November 10 meeting. so it would be known to employees for the open enrollment period in mid-November. Respectfully submitted, Jam .Prosser City Manager JDP:ds y~ CITY OF RICHFIELD, MINNESOTA Council Letter No. 276 Agenda November 10, 1997 Issue Statement: Resolution designating City's contribution toward health, term life and dental insurance premiums for General Services and Management employees. Background: At the present time, the City contributes to the cost of premiums for four kinds of insurance coverages available to City employees. Full-time Management and General Services employee contributions are discussed within this letter as well contributions toward health insurance for part-time regular General Services employees. Other employees are covered under terms of labor agreements. LIFE A $25,000 term life insurance policy is currently provided for all full-time Management and General Services employees. The City pays the full premium for this insurance, which is $4.25 per month per employee. The rate is unchanged for 1988. DENTAL The second type of insurance provided to full-time Management and General Services employees is aself-funded group dental insurance. In 1997, the City contributed $24 per month per employee for the total cost of employee (not dependent) coverage. Employees who desire dependent coverage must pay the full cost of such additional premium, which for 1997 was $31. Inasmuch as dental insurance is self-funded, the City establishes the dental rates from year to year internally, based upon administrative and benefit pay-out cos data. No change is recommended for 1998. While the City does not contribute to dependent coverage for dental insurance, for informational purposes, the rate the employe will pay will remain at $31 per month. HEALTH INSURANCE FOR FULL-TIME EMPLOYEES The third type of insurance coverage available to full-time Management and General Services employees is group health coverage. Employees may select among three plans available through the LOGIS Health Insurance Program. The City pays the full individual employee premium and provides an additional contribution toward dependent coverage up to a specified maximum insurance premium. t e The 1997 and 1998 monthly premium costs of the health plans are: 1997 Rate 1998 Rate % Chanae Health Partners Classic (Group Health Inc.) Individual $152.85 $163.77 + 7.1 Family 417.43 466.74 +11.8% ~~~1 Health Partners (MedCenter) Individual $151.80 $170.06 +12.4% Familv 451.86 484.67 + 7.3% Medica Individual $187.16 $202.25 + 8.9% Familv 490.85 544.00 +10.8% In 1998, the City's contribution for Management and General Services employees will be increased by $30.00 to $395. The City's contribution for Management and General Services employees as a percent of premium over the past ten years is shown in Attachment 1. HEALTH INSURANCE FOR PART-TIME REGULAR EMPLOYEES The City will contribute 75% of the single health care premium for part-time Regular employees and $197.50 per month towards dependent coverage (which includes single coverage.) Part-time employees may opt out of health insurance altogether. The 1998 rates and City contribution are as follows: 1998 Rate City Contribution Health Partners Classic (Group Health Inc.) Individual $163.77 $122.83 Family 466.74 197.50 Health Partners (MedCenter) Individual $170.06 $127.55 Familv 484.67 197.50 Medica Individual $202.25 $151.69 Family 544.00 197.50 LONG-TERM DISABILITY (LTD) The fourth type of insurance provided to all employee groups, except Firefighters, is long- term disability insurance (LTD). LTD is provided through a group policy secured by the City. Currently, the City pays a premium rate of 40 cents per $100 of salaries for covered employees. No rate increase is anticipated at this time. However, by state law, the City must re-bid its long-term disability coverage sometime in the spring of 1998. That re-bid may result in either higher or lower rates, depending upon quotes received. Recommended Motion: It is recommended that the following actions be taken with respect to the City's insurance contributions for Management and General Services employees: y~-z A. Life Insurance That the term life insurance remain at $25,000 with the same premium charge of • $4.25 per month per employee. B. Dentallnsurance That the per employee per month contribution remain at $24. As in the past, employees who desire dependent coverage would pay the full cost of such additional premium. C. Long-Term Disability Insurance That the long-term disability insurance coordination of the benefit remain the same. D. Group Health Insurance That the City contribution for full-time employees be increased from a maximum of $365 per month to $395 per month per employee for dependent coverage; and that the City's rate of contribution for part-time regular employees remain at 75% of the premium cost for single coverage and 50% of the. City's contribution toward dependent coverage for afull-time employee. Basis of Recommendation: 1. To provide adequate insurance protection for the Management and General Services employee groups, which are comparable to other City employee groups, as well as employees performing similar jobs in comparable communities. 2. Greater benefit equality is achieved between female classes found in General Services and Management groups and male classes found in the contracted labor units. 3. The 1998 Budget includes the funding necessary to provide for premium contribution increases recommended. Alternative Recommendation: 1. The Council may take no action to increase the insurance premiums beyond the current 1997 funding level. Discussion/Decision Mode: The City should implement the premium increases for coverages by December 1, 1997. Payroll deductions for January insurance payments, the beginning of the new insurance period, are calculated in December. Respe ully submitted, Jam D. Prosser City Manager • JDP:ds Copy: Administrative Services Director ~ ~-3 RESOLUTION NO. • RESOLUTION DESIGNATING CITY'S CONTRIBUTION TOWARD HEALTH, TERM LIFE AND DENTAL INSURANCE PREMIUM FOR MANAGEMENT AND GENERAL SERVICES EMPLOYEES WHEREAS, the hospital-medical/surgical group health insurance plan is available from the LOGIS Health Insurance Program for City employees and their families; and WHEREAS, a term life and accidental death and dismemberment insurance plan is available from the Local Government Information Systems Association (LOGIS) for City employees; and WHEREAS, aself-funded group dental insurance plan is available to City Management and General Services employees and their families; and WHEREAS, a group short-term and long-term disability program is available to City Management and General Services employees; and WHEREAS, the City Council is required to determine by resolution the City's contribution toward the premium for employee group insurance coverages. NOW,. THEREFORE, BE IT RESOLVED that the City shall contribute a maximum of • $395.00 per month for family health insurance, and in any event, said contributions. shall not exceed the cost of single coverage for employees selecting that option. The City shall also pay the $24.00 monthly premium for the employee dental insurance plan, and the .$4.25 monthly premium for the term. life and accidental death and dismemberment insurance plan for Management and General Services employees, for a total possible maximum 1998 insurance premium contribution of $423.25 per month. Such contributions shall be for coverage effective January 1, 1998. BE IT FURTHER RESOLVED that the City shall contribute the full cost of long-term disability insurance for the Management and General Services employees' coverage. BE IT FURTHER RESOLVED that the City Council shall determine the City's contribution toward insurance premiums for all organized employee groups by the adoption of the appropriate resolutions concerning labor contracts with the respective organized employee groups. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of November, 1997. Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber,- City Clerk Attachment 1 • YEAR HEALTH PLAN 1988 PHP MCHP GHI 1989 PHP MCHP GHI 1990 PHP MCHP GHI 1991 PHP MCHP GHI 1992 MEDICA MCHP GHI • 1993 MEDICA. MCHP GHI 1994 MEDICA MCHP GHI 1995 MEDICA MCHP GHI 1996 MEDICA MCHP GHI 1997 MEDICA MCHP GHI 1998 MEDICA MCHP GHI The City's Contribution Toward Dependent Health Insurance as a Percent of Total Premium Cost DEPENDENT CITY CONTRIBUTION CITY CONTRIBUTION PREMIUM MGMT./GEN. SVCS AVERAGE % OF COST PREMIUM $221.62 $160.00 $233.55 $160.00 73% $204.65 $160.00 $266.00 $170.00 $291.25 $170.00 63% $254.70 $170.00 $299.50 $210.00 $326.20 $210.00 68% $290.67 $210.00 $340.00 $240.00 $357.20 $240.00 70% $321.46 $240.00 $399.00 $255.00 $389.35 $255.00 66% $356.76 $255.00 $430.92 $285.00 $437.25 $285.00 68% $397.48 $285.00 $449.05 $315.00 $478.35 $315.00 69.5% $431.44 $315.00 $449.05 $335.00 $478.35 $335.00 72% $465.86 $335.00 $449.03 $345.00 $464.63 $345.00 76% $443.32 $345.00 $490.85 $365.00 $451.86 $365.00 81 $417.43 $365.00 $544.00 $395.00 $484.67 $395.00 79% $466.74 $395.00 ~~ • ~~ • CITY OF RICHFIELD, MINNESOTA Council Letter No. 275 Agenda November 10, 1997 Issue Statement: Council authorization to extend Contract No. A01384 with Hennepin County to allow continued access to the property information system. Background: Since September 19, 1978 Hennepin County and the City have had a contractual agreement which provides the City with access to the County's real estate tax information. From 1978 through October 1989, the City had access to the County's real estate data via a leased Hennepin County data terminal and printer. In November 1990, the City Council approved the purchase of the Hennepin County data terminal, software and printer when the County announced that it was getting out of the leasing business. After purchase of the equipment, the City entered into a contract with Hennepin County to provide continued access to County data with the City's owned equipment. The current contract has provided the City with an extremely economical way to access Hennepin County real estate, municipal and district court data. The contract is not • automatically renewable and must be renewed each year by the City and County. The City has now received information from Hennepin County announcing the fees for the contract year 1998 and is asking if the City is interested in renewing this contractual agreement. The Council action here would be to take advantage of the renewal. Recommended Motion: Authorize the City Manager to extend Contract No. A01384 with Hennepin County for access to the property information system for the period beginning January 1, 1998 and ending December 31, 1998. Basis of Recommendation: 1. The current contract with Hennepin County expires as of December 31, 1997. 2. The contract is a necessary part of the City of Richfield's ability to deliver property and court data to the public through the on-line connection to Hennepin County records. 3. The County has announced that inquiry fees will be charged at the rate of $.0199 per transaction, which is a slight decrease from the fee charged in 1997 ($.0201). 4. The network support charge will be $25 per month per workstation (12 work stations-$300/month). This is a reduction of $2 per month per workstation. The J telephone line charge will remain at $74.60 (plus appropriate tax) per month, • subject to rate increases/decreases in phone line charges. 5. The contract with Hennepin County is a very economical way for the City to access and to provide this data to the public. Alternative Recommendation: 1. The City could elect not to renew this contract with Hennepin County. However, if this contract is not renewed, the City would lose its on-line access to County property tax and court records. Discussion/Decision Mode: Action on this item needs to be taken sometime prior, to the end of 1997. However, since City staff finds no problem with the arrangement proposed by Hennepin County, it is preferred that the agreement be signed and returned to Hennepin County as soon as possible. Respectfully submitted, Jame .Prosser City Hager JDP:ds • yA-2 October 30,1997 City of Richfield Attn: James Prosser 6700 Portland Avenue Richfield ~ MN 55423 Dear James Prosser An Equal Opportunity Employer ,~~; ; ~~ f~~'~' =~~ ~~. ;Contract No. €A01384 Hennepin County intends to extend the above referenced contract through the year 1998. Attached is an updated Exhibit A which includes the new rates. The Network Support Charge goes down to $25.00 ($19.00 Basic Service plus $6.00 Host Access) per month for each connection. The transaction rate has gone down by a small amount and is shown on the attached Exhibit. The telephone or frame relay charges (if applicable) remain the same as the can ent year but will be adjusted accordingly to new rate increases/decreases imposed by the telephone company. The new rates will go into effect on January 1 and remain in effect until December 31 of 1998. If you have any questions about this notice, please call Jean Myers at 348-6666 for assistance. • ~/ As required by the contract, please indicate below your intention to extend or not to extend this contract through 1998 and return this document to Jean at the address below. Please check (X) , ':, It IS our intention to extend this contract through the year 1998. a ro ria _ to box. PP ..... ......................... ...... .. It is NOT our intention to extend-this contract throu •h the'. . g ear 1998. We no loo er re uir e this servi ce. ~Y Signature Su-cer ly, ~- Gary M. Kamp Division Manager, Information Services Operations Division of the General Services Department cc: Jean Myers attachment General Services (~ Information Services Recycled Paper A-015 Government Center Minneapolis, Minnesota 55487-0005 - CITY OF RICHFIELD, MINNESOTA Council Letter No. 274 Agenda November 10, 1997 Issue Statement: Consideration of various purchase offers for the former Lampert Lumber property. Background: With the decision to move ahead with a new public works facility, staff and Council have been taking the steps necessary to effectuate an eventual sale of the site. To date those steps include a first reading of a rezoning to C2 and an amendment to the C2 district regulations to allow taller buildings along 1-494, as well as a first reading of a transitory ordinance for the sale of property. The second reading of these items is set for November 24. Another step in this process has been the determination of the market potential of the site. Staff recently interviewed three brokers for the purpose of selecting one to market the site. No formal broker arrangement was established yet each of them has identified a potential buyer for the property and each has submitted a preliminary purchase agreement. A fourth broker has also submitted a purchase agreement. In addition, Richfield Bloomington Honda has submitted a proposal. for the site. Interest in the site has been strong. The hospitality industry in particular views the 1-494 corridor as a very desirable location, and market conditions are right for hotel development. With a strong economy, continued business growth in the area and the success of the Mall of America, hotel vacancy rates are at their lowest in years and average room charges are at their highest. The "window" for hotel construction is open. However, it is also worth noting that the publication, Twin Cities Hotel Report recently reported that 600 new rooms are expected in the corridor in the next several months. In evaluating proposals staff considered several factors including: the sale price, the proposed use,. the structure, terms and contingencies outlined in the preliminary purchase agreement and the credentials of the buyer and developer. Attached is a listing of some of the key elements of the various proposals. Legal counsel has reviewed the agreements. They are sufficient for the purpose of identifying a preferred buyer and beginning negotiations, but are not considered to be in final form. The execution of a purchase agreement does not constitute plan approval.. A hotel requires a Conditional Use Permit (CUP). Before obtaining a CUP the developer must go through the development review process. This process includes staff review, and presentation of detailed plans to the Planning Commission and the City Council for review and approval Recommended Motion: Candlewood Hotel Company is identified as the preferred buyer, and staff is directed to negotiate a final purchase agreement, and the Mayor and City Manager are authorized to execute the agreement. The agreement is to provide the use of brick on all exterior 3-I building walls. In the event the City and .Candlewood Hotel Company are unable to negotiate an agreement, staff is directed to negotiate and execute a final purchase agreement with Studio Plus Properties which the Mayor and City Manager are authorized to sign. Basis of Recommendation: 1. With the decision to construct a new public works facility, it is now an appropriate time to pursue a purchase agreement for the former Lampert property. 2. A hotel on the site is consistent with the Comprehensive Plan which calls for highly intensive, regional commercial development along the I-494 corridor. 3. The purchase offer from Candlewood is the most favorable for the City; the purchase offer from Studio Plus Properties is comparable. 4. Having the buyer and the user of the property being one in the same ensures that the site will be put to a use desirable to the City, that development will, in fact, occur and it will occur in a timely manner and that the property will not be resold on a speculative basis. 5. Candlewood is receptive to placing the building on the property in such a way as to allow for the possible future construction of afree-standing restaurant if part or all of the adjacent, excess railroad right-of--way becomes available. (A hotel and restaurant on only the Lampert site would compromise the size of the hotel.) Alternative Recommendation: Direct staff to seek other offers and present them to the City Council on November 24, 1997. Discussion/Decision Mode: Candlewood has indicated an interest in pursuing an off-site directional sign. There is a provision in the sign ordinance for off-site directional signs and it is staff s position that this site and the proposed use meet the criteria for allowing such a sign. Approval of Candlewood as the developer of the site does not however constitute approval of an off- site sign. The developer would still need to go through the established review process. Representatives of the potential buyers will be present at the City Council meeting on November 10, 1997. Respectfully submitted, Jame .Prosser City Manager JDP:ds -~ ~ Tabulation of Key Elements of Proposa/s* BROKER BUYER PROPOSED END USER(S) SALE PRICE SQ. FT. DEPOSIT LAND USE(S) PRICE Cambridge Asset Not identified in Undetermined $1,325,712 $11.00 $50,000 Commercial Development purchase Less 6% Realty Services agreement commission = $1,246,169 CB Candlewood 134 room, Candlewood $1,599,000 $13.25 $100,000 Commercial Hotel Co. extended stay Hotel Co. (Buyer pays Candlewood Hotel commission) Towle Real Bayport Hotel and possibly Undetermined $1,600,000 $13.25 $25,000 Estate Properties a restaurant Less 6% commission = $1,504,000 Welsh Studio Plus 99 (min) room Studio Plus $1,599,000 $13.25 $50,000 Companies Properties extended stay Properties Less 6% Studio Plus Hotel commission = $1,503,060 None Richfield Employee and Richfield Negotiate a price Minimum of None Bloomington customer parking Bloomington with $750,000 $6.25 Proposed Honda vehicle storage Honda being the and possible minimum dealer expansion Each buyer, except for the Honda dealership, has proposed that the City be responsible for site clearance which is estimated to cost $40, 000 to $50, 000. The Honda dealership would be responsible for the demolition. * Total gross price is based. on the proposed per square foot cost multiplied by the buyers calculation of site area thus there is some minor variation. *In 1993, the City purchased this property for $450, 000. •