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08/06/1982 - City Council SpecialMEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 6, 1982 SUBJECT: FILL & EXCAVATION PERMIT AND EXTENDED HOURS FOR JOHNSON BROTHERS HAULING OF EARTH AND FILL IN THE 1-494 CORRIDOR i The Director of Public Works and City Administrator have received calls from residents residing on Blue Gentian Road about various questions and concerns regarding the hauling that is being performed by Johnson Brothers Construction Company. The concerns include noise, dust, rerouting of traffic on Blue Gentian Road and the condition of Blue Gentian Road. The City has placed a sign on Blue Gentian Road that indicates "Road Closed. Local Traffic Only" followed by a dead end sign to discourage any vehicular movement between Hwy. 55 and Dodd Road. This action has cut down the attempt of motorists to cut through Blue Gentian Road to Dodd Road. Johnson Brothers did consent to the City to oil Blue Gentian Road for dust control of vehicles traveling on that roadway. Regarding the hauling routes, a large water tanker is running continuously along the route to minimize and restrict dust during this dry period. The area that apparently is causing some problems for dust is the right-of-way area between Lexington Avenue and Blue Gentian Road north of Hwy. 55 where the 494/35E intersec- tion is proposed. The dust is bad in that area, but there is no possible way of watering due to the actual excavation work performed on that site. Some of the complaints about noise have been raised about the operations between 7:00 p.m. and 11:00 p.m. Most of the residents have air condi- tioners and their homes are closed during the hot, humid times. According to the Director of Public Works, the Johnson Brothers Company has been very cooperative and the City staff has worked very closely through the Director of Public Works office to help the persons who are residing on Blue Gentian Road to resolve any problems that are due to the hauling and fill being performed by Johnson Brothers. Mayor Blomquist has received complaints from a resident on Blue Gentian Road, and realising that the City staff has received others periodically, it is her request that this item be placed on the agenda prior to the infor- mationaL hearing to discuss the issue with Johnson Brothers and those neigh- bors who wish to be present to see if any additional -actions can be taken to minimize the effects on the neighborhood due to the hauling operation. The City Administrator has notified the superintendent for Johnson Brothers and the neighbors on Blue Gentian Road. s/Thomas L. Hedges City Administrator cc: Director of Public Works Colbert J • MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 6, 1982 SUBJECT: SPECIAL CITY COUNCIL MEETING Mayor Blomquist has called for a special meeting of the City Council to be held Tuesday, August 10, at 6:45 p.m. at the Eagan City Hall to discuss the following: 1. Excavation & Fill Permit/Extended Hours for Johnson Brothers 2. Open House Informational Meeting for New City Hall Expansion Project 3. Other s/Thomas L. Hedges City Administrator MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 6, 1982 SUBJECT: FILL & EXCAVATION PERMIT AND EXTENDED HOURS FOR JOHNSON BROTHERS HAULING OF EARTH AND FILL IN THE 1-494 CORRIDOR r. The Director of Public Works and City Administrator have received calls from residents residing on Blue Gentian Road about various questions and concerns regarding the hauling that is being performed by Johnson Brothers Construction Company. The concerns include noise, dust, rerouting of traffic on Blue Gentian Road and the condition of Blue Gentian Road. The City has placed a sign on Blue Gentian Road that indicates "Road Closed. Local Traffic Only" followed by a dead end sign to discourage any vehicular movement between Hwy. 55 and Dodd Road. This action has cut down the attempt of motorists to cut through Blue Gentian Road to Dodd Road. Johnson Brothers did consent to the City to oil Blue Gentian Road for dust control of vehicles traveling on that roadway. Regarding the hauling routes, a large water tanker is running continuously along the route to minimize and restrict dust during this dry period. The area that apparently is causing some problems for dust is the right-of-way area between Lexington Avenue and Blue Gentian Road north of Hwy. 55 where the 494/35E intersec- tion is proposed. The dust is bad in that area, but there is no possible way of watering due to the actual excavation work performed on that site. Some of the complaints about noise have been raised about the operations between 7:00 p.m. and 11:00 p.m. Most of the residents have air condi- tioners and their homes are closed during the hot, humid times. According to the Director of Public Works, the Johnson Brothers Company has been very cooperative and the City staff has worked very closely through the Director of Public Works office to help the persons who are residing on Blue Gentian Road to resolve any problems that are due to the hauling and fill being performed by Johnson Brothers. Mayor Blomquist has received complaints from a resident on Blue Gentian Road, and realising that the City staff has received others periodically, it is her request that this item be placed on the agenda prior to the infor- mational hearing to discuss the issue with Johnson Brothers and those neigh- bors who wish to be present to see if any additional actions can be taken to minimize the effects on the neighborhood due to the hauling operation. The City Administrator has notified the superintendent for Johnson Brothers and the neighbors on Blue Gentian Road. s/Thomas L. Hedges 500 A. City Administrator cc: Director of Public Works Colbert Ruth M. Bodlnan Alfred J. Wiger 780 Blue Gentian Rd Eagan Mn Ella Nielsen E1030 Blue agan Mn 55an Rd 121 -4 eq. I • 01'1 _ may 28, 1982 Raymond & Marie Nutmum 1027 Blue Gentian Rd Eagan Mn 55121 I,,y W & Avis Bergh 1023 Blue Gentian Rd Eagan Mn 55121 Ate.& Agnes polzin 1015 Blue Gentian Rd Eagan Mn 55121 Wallace J & Edith Drake 999 Blue Gentian Rd Eagan Mn 55121 Glen W & IOUCille Newou[b 1000 Blue Gentian Rd Eagan Mn 55121- 5�..�;L3I y g3V 3S S N�q �J Si.CJi[ S 7 R'& Kathleen Spar9ur Blue Gentian Rd Mn 55121 Marilyn Sandford 1020 Blue Gentian Rd Eagan Mn 55121 Frank & Patricia Pavlik 990 Blue Gentian Rd Eagan Mn 55121 Douglas E Andrews Fee Judith Herzog 1003 Blue Gentian Rd Eagan Mn 55121 3 i ps 4;'/_a Herbert & Agnes Polzin Fee Eugene G. Napier 988 Blue Genian Road Eagan Mn MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 6, 1982 SUBJECT: SPECIAL CITY COUNCIL MEETING Mayor Blomquist has called for a special meeting of the City Council to be held Tuesday, August 10, at 6:45 p.m. at the Eagan City Hall to discuss the following: 1. Excavation & Fill Permit/Extended Hours for Johnson Brothers 2. Open House Informational Meeting for New City Hall Expansion Project 3. Other s/Thomas L. isHedges City Admintrator I MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 6, 1982 SUBJECT: FILL & EXCAVATION PERMIT AND EXTENDED HOURS FOR JOHNSON BROTHERS HAULING OF EARTH AND FILL IN THE 1-494 CORRIDOR The Director of Public Works and City Administrator have received calls from residents residing on Blue Gentian Road about various questions and concerns regarding the hauling that is being performed by Johnson Brothers Construction Company. The concerns include noise, dust, rerouting of traffic on Blue Gentian Road and the condition of Blue Gentian Road. The City has placed a sign on Blue Gentian Road that indicates "Road Closed. Local Traffic Only" followed by a dead end sign to discourage any vehicular movement between Hwy. 55 and Dodd Road. This action has cut down the attempt of motorists to cut through Blue Gentian Road to Dodd Road. Johnson Brothers did consent to the City to oil Blue Gentian Road for dust control of vehicles traveling on that roadway. Regarding the hauling routes, a large water tanker is running continuously along the route to minimize and restrict dust during this dry period. The area that apparently is causing some problems for dust is the right-of-way area between Lexington Avenue and Blue Gentian Road north of Hwy. 55 where the 494/35E intersec- tion is proposed. The dust is bad in that area, but there is no possible way of watering due to the actual excavation work performed on that site. Some of the complaints about noise have been raised about the operations between 7:00 p.m. and 11:00 p.m. Most of the residents have air condi- tioners and their homes are closed during the hot, humid times. According to the Director of Public Works, the Johnson Brothers Company has been very cooperative and the City staff has worked very closely through the Director of Public Works office to help the persons who are residing on Blue Gentian Road to resolve any problems that are due to the hauling and fill being performed by Johnson Brothers. Mayor Blomquist has received complaints from a resident on Blue Gentian Road, and realising that the City staff has received others periodically, it is her request that this item be placed on the agenda prior to the infor- mational hearing to discuss the issue with Johnson Brothers and those neigh- bors who wish to be present to see if any additional actions can be taken to minimize the effects on the neighborhood due to the hauling operation. The City Administrator has notified the superintendent for Johnson Brothers and the neighbors on Blue Gentian Road. s/Thomas L. Hedges -City Administrator cc: Director of Public Works Colbert SPECIAL CITY COUNCIL MEETING CITY OF EAGAN, AUGUST 24, 1982 7:DG P.R. OFFICE OF THE CITY ADMINISTRATOR, CITY HALL AGENDA 1. 1983 Gbri&rAi Government Budget/First Draft 2. Other Busindss a MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 23, 1982 SUBJECT: SPECIAL CITY COUNCIL MEETING Please note that the special City Council meeting will begin at 7:1$ p.m. instead of 7:00 p.m. as originally scheduled. Handout information is being prepared by the City Administrator and Director of Finance and will be distributed at the meeting. We have made every effort to distribute some of the information this evening; however, the additional time is necessary to compile the correct data for distribution. The plan is to review and summarize totals and work programs as submitted by department heads with the followup budget sessions planned for more detailed budget analysis on the part of the City Council. ck"M0.5 � City Administrator MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 25, 1982 SUBJECT: INFORMATIVE South Area Town Meetin A reminder that the South Area Town Meeting is tomorrow, Thursday, August 26, 1982. Registration is at 5:00 p.m. with a social hour to follow at 6:00 p.m. Dinner will be served after 7:00 p.m. At the last City Council meeting held on August 17, you all indicated that you were planning to attend and therefore have been registered accordingly. If you are unable to attend, please contact Holly or me tomorrow and we will make the appro- priate cancellation. Citizens' Advisory Committee Letter The Citizens' Advisory Committee was planning to be in attendance at the public hearings to be held on August 31 and September 2. Since the referendum is scheduled for two weeks from this coming Tuesday, it seemed appropriate to take time during the first part of the meeting to organize a work plan for the next two weeks for the purpose of holding informational meetings, presenting the slides or distributing the flyers on a door to door basis. Assuming a light turnout, if consistent with the other informational meetings, there will be time to work on the budget if the City Council so desires that evening. Enclosed for your information are a copy of a letter to the Citizens' Advisory Committee and also a copy of the second newsletter (hot off the press) which should be delivered to your homes later this week. Joint Fire Department The joint City Council/Fire Department General Meeting is scheduled for 8:30 p.m. Monday August 30, 1982 at Fire Station #1. As directed by the City Council, the City Administrator will prepare a handout based on the information considered by the City Council at a special City Council meeting in June 1982. That information was the same as presented to the Relief Association committee members that evening. The last public hearing ,to consider the city hall expansion is scheduled for Thursday, September 2, 1982. That is the same evening the Parks & Recreation Committee has its meeting, and it might provide for an oppor- tunity after the public hearing to have a brief update from Tim Erkkila jointly with the advisory committee members on the progress being made in the Park Department on the Park Master Plan. Another busy week is scheduled! City ` ministrator L FM MEMO TO: PUBLIC WORKS COMMITTEE/CITY COUNCILMEMBERS THOMAS & WACHTER FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 25, 1982 SUBJECT: PUBLIC WORKS COMMITTEE MEETING A Public Works Committee meeting was scheduled by its chairman, City Coun- cilmember Wachter, for 8:00 a.m. Thursday, August 26, 1982, at Fire Station No. 1. City Councilmember Wachter has met with Fire Chief Childers on two or three separate occasions over recent weeks to discuss energy improve- ments to the fire stations. The proposals were submitted by contractors, and before an award is made to a successful bidder, the Public Works Com- mittee wanted to inspect the building and make a final determination as to what type of improvement should be made so that the final decision can be made this fall for the anticipated improvements. It may be the Public Works Committee's recommendation to reject all quotations. If that should occur, a new set of specifications would be developed for the remodling project. r�x. F%AAAI& QLA — City ministrator cc: Mayor Blomquist City Councilmember Egan City Councilmember Smith Public Works Director Colbert Chief Building Inspector Peterson MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 27, 1982 SUBJECT: SPECIAL CITY COUNCIL MEETING/AUGUST 31, 1982 There are three (3) items scheduled on the special City Council meeting agenda for the Tuesday, August 31, 1982 meeting. The main purpose for the meeting was to hold a public hearing on the proposed City Hall expan- sion project. In addition, the City Council has scheduled a public hearing to consider tax exempt mortgage financing for a proposed multi -family housing project which involves the conversion and sale of the Cedar Bluff Townhouses from rental to home owner occupied units. As the City Council recalls, in order to qualify as an eligible project through the Minnesota Housing Finance Agency, a public hearing was required prior to September 1, 1982. Enclosed is inform aton the City Administrator has requested from Miller & Schroeder Municipals, Inc., about the proposed housing program. Mr. Paul Ekholm will be present to explain the project and housing program and also to answer questions which the City Council may have at the meeting on Tuesday. If time permits, there will be additional information for the City Council to examine regarding the proposed 1983 Budget. - If there are any questions any members of the City Council have abut the housing program and they would like additional information prior to the meeting on Tuesday, please feel free to contact this office and additional research will be requested from Miller & Schroeder Municipals, Inc. A reminder that Monday evening, August 30, the City Council is scheduled to meet the volunteer fire fighters at Fire Station No. 1 to discuss the fire fighters' pension program. Again, the City Administrator will have a hand out that summarizes the proposal which has been considered by the City Council to date. If the City Council would like to meet at the City Hall prior to the meeting as scheduled on Monday evening to review the pension plan material, please let me know and I will contact all the City Council members to make those arrangements. City ministrator AGENDA CITY OF EAGAN SPECIAL CITY COUNCIL MEETING AUGUST 31, 1982 7:00 P.M. I. Roll Call II. Public Hearings A. Revenue Bond Issue for Tax Exempt Financing/ Cedar Bluff Townhouses B. City Hall Expansion Project C. 1983 Budget Review D. Other III. Adjournment Toll Free Minnesota (800) 862-6002 Tall Free Other States (800) 328-6122 I I Miller & Schroeder Municipals, Inc. Northwestern Financial Center, 7900 Xerxes Avenue South, Minneapolis. Minnesota 55431 • (612) 831-1500 August 27, 1982 Mr. Thomas L. Hedges City Administrator City of Eagan 3795 Pilot Knob Road Eagan, Minnesota 55122 Dear Tom: Enclosed is a copy of the housing program to be considered at Tuesday's public hearing. I am also enclosing a copy of a letter Jim Michael will sign as evidence of his support of the program. I will be at the offices of Holmes do Graven (telephone 338-1177) if you would like to call me with any changes or questions. If Northstar has any changes, I will call you Monday morning and tell you what they are. I'll see you on Tuesday. Si erely, Andrea Lubov AL:mj Enclosures Heedquarten: Minneapolis. Minnesota Branch Offices; Downtown Minneapolis • Solana Beach, California • Northbrook, Illinois • SL Paul, Minnesota • Naples. Florida • Carson City, Nevada Member of the Securities —euar Proreeuon Con)omrlon Toll Free Minnesota (800) 862-6002 Toll Free Other Stales (800) 328-6122 Miller & Schroeder Municipals, Inc. Northwestern Financial Center, 7900 Xerxes Avenue South, Minneapolis, Minnesota 55431 • (612) 831-1500 August 27, 1982 Mr. James Michael Northstar Universal, Inc. 5353 Wayzata Boulevard Minneapolis, Minnesota 55416 Dear Jim: Enclosed is a copy of a letter I would like you to retype and deliver to me by Monday along with a check payable to the Minnesota Housing Finance Agency for $1,000. This amount is a nonrefundable application to the Agency for bonding authority. I have estimated your contribution to the project as follows: Sale price of a unit $ 62,000 Mortgage amount per unit 58,900 (95% of sales price) Number of units to be financed 120 Amount required for mortgages $7,0702000 Plus: Estimated reserves and costs of issuance 1,250,000 Equals: Size of bond issue 8,320,000 Your contribution 329,200 (4% of issue size) This contribution is required to make the project economically feasible and to make this particular program competitive with others submitted to the Minnesota Housing Finance Agency. Under Agency regulations, one criterion by which such programs are judged when bonding authority is allocated is the amount of bond proceeds contributed to the program. I am enclosing a copy of the program that will be reviewed by the Eagan City Council on Tuesday, Agusut 31 at the public hearing. I am also having a copy delivered to Jonathan Scoll for his review. If you have any questions or comments or would like any changes made, please call me. I will be at the offices of Holmes do Graven with Stan Kehl, bond counsel, for the issue for the rest of today. His telephone number is 338-1177. Xndre ely,a Lubov AL:mj Enclosures cc: Tom Hedges, Eagan City Administrator Jonathan Scoll, Esq. Headquarters: Minneapolis. Minnesota Branch Offices: Downtown Minneapolis • Solana Beach. California • Northbrook. III inois • St. Paul. Minnesota • Naples. Honda • Carson City. Nevada Memoerol he Secunries I—,., Crotenion Co,poouon Program For The Financing Of A Multifamily Housing Development Pursuant to Minnesota Statutes, Chapter 462C (the "Act'), the City of Eagan (the "City") has been authorized to develop and administer programs of multifamily housing developments under the circumstances and within the limitations set forth in the Act. Minnesota Statutes, Section 462C.07 provides that such programs for multifamily housing developments may be financed by revenue bonds issued by the City. The City has received a proposal from the Northstar Universal, Inc. (the "Developer") that, pursuant to the authority found in the Act, the City approve a program providing for the issuance of revenue bonds the proceeds of which would be used to make or purchase mortgage loans made to purchasers of condominium units (the "Housing Units") owned by the Developer. The Developer will enter into an agreement to purchase 120 units of rental townhouses, known as the Cedar Bluff _. Townhouses, located on River Bluff Drive and Donald Avenue in Eagan. This Developer further intends to enter into agreements with a contractor experienced in townhouses renovations for the purpose of substantially rehabilitating the townhouse units. Following renovation of such units, the Developer will convert the Project into for sale, condominium ownership townhouses, and will sell the townhouse units to persons and families using mortgage financing, subject to the requirements of this Program. The City, in establishing this multifamily housing program (the "Program"), has considered the information contained in the City's 462C Housing Plan adopted on December 4, 1979 (the "Housing Plan"), including particularly (i) the availability and affordability of other government housing programs; (ii) the availability and affordability of private market financing for the construction of multifamily housing units; (iii) an analysis of population and employment trends and projections of future population trends and future employment needs; (iv) the recent housing trends and future housing needs of the City; and (v) an analysis of how the Program will meet the needs of persons and families residing and expected to reside in the City. The City has particularly considered the deteriorating physical condition of the Cedar Bluff Townhouses and the need for its substantial rehabilitation. At the same time, the City believes that the continuing maintenance of the townhouse units will be best served if occupants of the Housing Units are the owner - occupants. In connection with the conversion of the Housing Units to owner occupied from rental units, the City has considered the availability of other rental units within the City and the purchaser prices for the Housing Units at levels which are compatible with the low to moderate income residents currently residing within the Housing Units. The City in adopting the Program has further considered (i) the amount, timing and sale of bonds to finance the estimated costs of the Housing Units, to fund the appropriate reserves and to pay the cost of issuance; (ii) the method of monitoring and implementation of the Program to insure compliance with the City's Housing Plan and its objectives; (iii) the method of administering, servicing and supervising the Program; (iv) the cost of the City, including future administrative expenses; (v) the restrictions on the multifamily development to be financed under the Program; and (vi) certain other limitations. The development will be constructed and financed pursuant to subdivisions 1 and 3 of Section 462C.05 of the Act. -1- Subsection A. Definitions. The following terms when used in this Program shall have the following meanings, respectively: "Act" shall mean Minnesota Statutes Section 462C.01 et sec., as currently in effect and as the same may be to time amended. - "Adjusted Gross Income" shall mean Gross Family Income, reduced by $750 for each adult in the family, to a maximum of two adults, and less $500 for each other Dependent in the family. "Bonds" shall mean the revenue bonds to be issued by the City to finance the Program. "City" shall mean the City of Eagan, Minnesota. "Commencement Date" shall mean the date on which (1) the City has Bond proceeds available to purchase Mortgage Loans under the Program and (2) the Developer has commenced pre -sale efforts to market Housing Units to Program participants. "Dependent" shall mean "dependent," as defined in Seciton 152 of the Internal Revenue Code of 1954, as amended, and the regulations thereunder. "Gross Family Income" shall mean the current annual income, from all sources as determined In accordance with the then current loan origination requirements of either FHLMC, FNMA, FHA or VA related mortgage loans originated under programs regulated by FHLMC, FNMA, FHA or VA, as the case may be, as verified by an Originator in accordance with such requirements and its customary underwriting practices, of the Mortgagor, his or her spouse, and any co- owner of a fee interest in the Housing Unit to be financed with the proceeds of a Mortgage Loan. "Housing Plan" shall mean the City of Eagan 462C Housing Plan, adopted on December 4, 1979, setting forth certain information required by the Act. "Housing Unit" shall mean any one of those certain condominium units to be located in the Project, occupied by a person or persons as a principal residence and containing complete living facilities, and the purchase of which is financed by a Mortgage Loan. "Mortgage Insurer" shall mean the FHA, the VA or any Qualified Mortgage Guaranty Insurer. "Mortgage Loan" shall mean an interest bearing loan to a Mortgagor for the purpose of purchasing a Housing Unit, evidenced by a promissory note and secured by a mortgage or deed of trust on such Housing Unit. "Mortgagor" shall mean an individual or individuals who have received a Mortgage Loan. "Originator" shall mean any bank, trust company, savings bank, national banking association, savings and loan association, mortgage bank or other financial institution or govenrmental agency which customarily makes or services mortgage -2- loans on owner -occupied residential housing units in the City, or any holding company for any of the foregoing and which has agreed to writing with the City to originate Mortgage Loans under this Program, provided, however that such Originator is approved by FHA, VA, FNMA or FHLMC. "Program" shall mean this program for the financing of the Project pursuant to the Act. " "Program Administrator" shall mean any Originator or other institution with qualifications at least equal to an Originator which agrees in writing with the City to monitor Originators' origination of the Mortgage Loans which have been sold to the City, to service all Mortgage Loans which have been sold to the City and to perform such other functions as agreed upon by the Program Administrator and the City. -- — "Project" shall mean the multifamily housing development consisting of approximately 120 condominium units to be renovated by the Developer. "Qualified Mortgage Guaranty Insurer" shall mean any mortgage guaranty insurance company qualified to do business in the State of Minnesota and qualified to provide insurance on or in connection with mortgage loans purchased by FNMA or FHLMC, whose policies of insurance would not adversely affect the rating on the Bonds, or is rated at the highest rating then given such insurance companies on a claims -paid basis by such rating agency. Subsection B. Program for Financing the Project. It is proposed that the City establish this Program to acquire, and contract and enter into advance commitments to acquire, Mortgage Loans initially originated by and owned by Originators with respect to Housing Units located within the. Project at the prices and upon such other terms and conditions as -are set forth herein and as may be agreed upon in writing between the City and the Originators. To do so, the City expects to make and execute contracts with Originators for the origination of Mortgage Loans and the sale of such loans to the City. The City further expects to make and execute a contract with a Program.. Administrator for the monitoring of origination of the Mortgage Loans, for the servicing of the Mortgage Loans and to pay the reasonable value of services rendered under such contracts. In carrying out this Program, the City may exercise, within the corporate limits of the City, any of the powers the Minnesota Housing Finance Agency is authorized to exercise under the provisions of Minnesota Statutes, Chapter 462A. The City will hire no additional staff for the administration of this Program, but intends to enter into the contract with the Program Administrator who will administer the Mortgage Loans with respect to the guidelines expressed in this Program and who will service the Mortgage Loans. The City also intends to select and contract with a trustee experienced in trust .matters to administrate the Bonds sold to finance this Program by maintaining the various funds and accounts created by the Program documents and by making Bond payments, as they become due, to bondholders from Program generated revenues (the "Trustee"). In servicing the Mortgage Loans and monitoring the origination of Mortgage Loans for compliance with the requirements of this Program, the Program Administrator will, among other things, (i) review -the Mortgage Loan documents prior to the sale of a Mortgage Loan to the City for compliance with the -3- requirements of the City and the requirements expressed in the Program documents; (ii) service the Mortgage Loans and submit monthly payments received from Mortgagors to the Trustee; (iii) collect information with respect to the Origination of Mortgage Loans and submit monthly reports to the City setting forth the income levels of persons receiving Mortgage Loans, the size and type of Housing Units purchased with Mortgage Loan proceeds, and such other information regarding the origination of the Program as the City may reasonably require; (iv) make reports to the City with respect to servicing Mortgage Loans, including collection of monthly payments from Mortgagors, delinquent collections, foreclosure proceedings and any othe related activiites; (v) handle claims for private mortgage insurance and hazard insurance In the event of foreclosure losses and file claims for mortgage pool insurance; and (vi) maintain contact with the City the Trustee and rating agencies with respect to the Mortgage Loans. Insofar as the City will be contracting with underwriters, legal counsel, the -_- Program Administrator, Originators and a Trustee, all of whom will be reimbursed from Bond proceeds and revenues generated by the Program, it is not expected that administrative costs need be paid from the City's budget with respect to the Origination of and mainetance of the Mortgage Loans. Subsection C. Local Contributions to the Program. In addition to the proposal of the City to create this Mortgage Loan purchase Program, the Developer has agreed to contribute certain sums, above the cost of substantially rehabilitating the Housing Units, to assume that sufficient sums will be available to redeem Bonds and to assure the financial feasibility of the Program. The Developer will contribute to the City, for the expressed benefit of this Program, a non-refundable fee of equal to two percent of the principal amount of the Bonds at the time this Program receives approval from the Minnesota Housing Finance Agency, as provided under the Act. The City agrees to place such monies either in the fund to which Bond proceeds shall be deposited for the purpose of acquiring Mortgage Loans or in the capitalized interest fund or the cost of issuance fund at the time Bonds are sold. The Developer will contribute an additional two percent of the principal amount of the Bonds which will be deposited in either the fund into which Bond proceeds shall be deposited for the purpose of acquiring Mortgage Loans or in the capitalized interest fund or the cost of issuance fund at the time Bonds are sold. Subsection D. Standards and Program: Loan Mortgage Loan made under the (1) Substantially all of the proceeds of the sale of the Bonds will be used to provide funds for the acquisition of Housing Units by Mortgagors. (2) . The Adjusted Gross Income of a Mortgagor at the time of application for a Mortgage Loan shall not exceed the greater of: (i) ' 110% of the median family income as estimated by the United States Department of Housing and Urban Development for the Minneapolis -St. Paul Standard Metropolitan Statistical Area; or -4- (ii) 100% of the income limit established by the Minnesota Housing Finance Agency for the City. . (3) For the first six months after the Commencement Date 100% of the funds provided for the purchase of Mortgage Loans may be made or committed only to Mortgagors with Adjusted Gross Income at the time of application of 80% or less of the limit set forth in paragraph (2). (4) To the extent permitted by law, the assumption of a Mortgage Loan held by a Mortgagor by any other person or persons shall be permitted only if the person or persons assuming the Mortgage Loan meet the income limits set forth herein, using the HUD median family income and the Minnesota Housing Finance Agency income limits in effect at the time of the assumption. (5) The purchase price of a Housing Unit may not exceed the lesser of three times the Adjusted Gross Income limit set forth in paragraph (2); four times the Adjusted Gross Income Limit if the Housing Unit is located within a "Target Area", as defined under the Act; or 110% of the average area purchase price for residential housing in the Mineapolis, St. Paul Standard Metropolitan Statistical Area computed as provided under the Proposed Treasury Regulations or any final regulations promulgated under Sectiow.103A of the Internal Revenue Code of 1954, as amended (unless the Housing Unit is within a "Target Area," as defined in 103Aof the Code, in which case the purchase price may not exceed 120% of the average area purchase price for residential housing). (6) All Mortgage Loans may be made and sold to the City and serviced by one Originator to be selected by the City if the City determines that it is necessary to select only one Originiator with respect to the Program. (7) Originators shall accept and process applications for Mortgage Loans on a nondiscriminatory, "first come, first served" basis, subject to the other provisions of the Program, and will not arbitrarily reject an application for a Mortgage Loan for a Housing Unit within a specified geographic area because of the location and/or age of the property, or in the case of a proposed Mortgagor, arbitrarily vary the terms of a loan or the application procedures therefore because of race, color, creed, religion, national origin, sex, marital status, age or status with regard to public assistance or disability. (8) At least ninety percent (90%) monies available to make Mortgage Loans shall be used to purchase Mortgage Loans made to first time homebuyers or Mortgagors who have not owned a home for three year prior to the Commencement Date. Up to ten percent of such monies may be used to purchase Mortgage Loans for Housing Units to be acquired by persons or families who are not first time homebuyers, providing the meet all other requirements of the Program. (9) The Mortgagor of each Housing Unit must be the fee owner of such Housing Unit and must occupy such Housing Unit as a principal place of residence. -5- (10) No Housing Unit may be in violation of applicable building codes and zoning ordinances or other applicable land use regulations. (11) For any Mortgage Loan the original principal amount of which exceeds 70% of the lesser of the purchase price or the appraised value of the Housing Unit subject thereto, such Mortgage Loan must, at a minimum, be insured or guaranteed by a Qualified Mortgage Guaranty Insurer in an amount so that the uninsured or unguaranteed portion of such Mortgage Loans does not exceed 72% of the lesser of the purchase price or the appraised value of such Housing Unit. If such Mortgagor obtains FHA insurance or a VA guarantee to comply with the preceding sentence, such insurance or guaranty must be maintained for the entire period during which the City owns an interest in the Mortgage Loan. (12) The difference between the interest rate on the Mortgage _.- — Loans and the interest rates on the Bonds issued to acquire such Mortgage Loans shall represent only the costs of insurance premiums, amortized expenses of issuing the Bonds, the City's ongoing costs for the administration of all housing programs, fees of servicing and administering the Mortgage Loans and trustee and paying agent fees computed so as to provide that Bonds shall not be deemed of be "arbitrage bonds" under the Proposed Regulations or an final regulations promulgated under Section 103A of the Internal Revenue Code of 1954, as amended. Subsection E. Evidence of ComP�. The City may require from the Developer or Originator, at or betore the issuance of the Bonds, evidence satisfactory to the City of the ability and intention of the Developer to complete the Project, and evidence satisfactory to the City of compliance with the standards and requirements set forth herein; and in connection therewith, the City or its representatives may inspect the relevant books and records of the Developer and the Originator in order to confirm such ability, intention and compliance. Subsection F. Issuance of Bonds To finance the Mortgage Loans for Housing Units the City intends by resolution to authorize, issue and sell its Bonds in an aggregate principal amount of up to $48,320,000, of which approximately $7,100,000 will be available for Mortgage Loans, which Bonds shall be payable solely from the proceeds of the Bonds and the revenues of the Program. The City shall enter into an indenture of trust with an institution authorized to accept such trust and which is experienced in trust management and has a large corporate trust porfolio, upon such terms and conditions as the City shall determine, being advised thereon by bond counsel. In issuing the Bonds, the City may exercise, within the corporate limits of the City, any of the powers the Minnesota Housing Finance Agency is authorized to exercise under the provisions of Minnesota Statutes, Chapter 462A, without limitation under the provisions oPi4i�imesota Statutes, Chapter 475. The Bonds shall be sold by the City at a discount of not more than three percent. Subsection G. Severability. The provisions of this Program are severable and if any of its provisions, sentences, clauses or paragraphs shall be held unconstitutional, contrary to statute, exceeding the authority of the City or otherwise illegal or inoperative by any court or competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions. -6- I AUGUST 1982 Tuesday -August 3, 1982 6:30 p.m. Regular City Council Thursday - August 5. 1982 7:00 p.m. Advisory Park & Recreation Committee Tuesday -- August 40, 1982 7:30 p.m. Town Meeting, "City Hall Expansion" Thursday - August 12, 1982- 7:00 p.m. Cable TV Commission Meeting 7:30 p.m. Citizens' Advisory ,Committee Saturday - August 14, 1982 9:06 a. m. Town Meeting, "City Hall Expansion" Tuesday— August 17, 1982 6:30 p.m. Regular City Council Thursday - August 19, 1982 7:30 p.m. Citizens' Advisory Committee Tuesday - August 24, 1982 7E00 p.m. Advisory Planning Commission 7:00 p.m. Special City Council/Budget Thursday - August 26, 1982: 7:00 p. m. Cable TV Commission Meeting Tuesday -August- 31, 1982 7:30 p. m. City Hall Public Hearing & Budget MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 25, 1982 SUBJECT: INFORMATIVE South Area Town Meetin A reminder that the South Area Town Meeting is tomorrow, Thursday, August 26, 1982. Registration is at 5:00 p.m. with a social hour to follow at 6:00 p.m. Dinner will be served after 7:00 p.m. At the last City Council meeting held on August 17, you all indicated that you were planning to attend and therefore have been registered accordingly. If you are unable to attend, please contact Holly or me tomorrow and we will make the appro- priate cancellation. Citizens' Advisory Committee Letter The CitizensAdvisory Committee was planning to be in attendance at the public hearings to be held on August 31 and September 2. Since the referendum is scheduled for two weeks from this coming Tuesday, it seemed appropriate to take time during the first part of the meeting to organize a work plan for the next two weeks for the purpose of holding informational meetings, presenting the slides or distributing the flyers on a door to door basis. Assuming a light turnout, if consistent with the other informational meetings, there will be time to work on the budget if the City Council so desires that evening. Enclosed for your information are a copy of a letter to the Citizens' Advisory Committee and also a copy of the second newsletter (hot off the press) which should be delivered to your homes later this week. Joint Fire Department The joint City Council/Fire Department General Meeting is scheduled for 8:30 p.m. Monday August 30, 1982 at Fire Station #1. As directed by the City Council, the City Administrator will prepare a handout based on the information considered by the City Council at a special City Council meeting in June 1982. That information was the same as presented to the Relief Association committee members that evening. The last public hearing to consider the city hall expansion is scheduled for Thursday, September 2, 1982. That is the same evening the Parks & Recreation Committee has its meeting, and it might provide for an oppor- tunity after the public hearing to have a brief update from Tim Erkkila jointly with the advisory committee members on the progress being made in the Park Department on the Park Master Plan. Another busy week is scheduled! 1inist City Administrator MEMO TO: PUBLIC WORKS COMMITTEE/CITY COUNCILMEMBERS THOMAS & WACHTER FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 25, 1982 SUBJECT: PUBLIC WORKS COMMITTEE MEETING A Public Works Committee meeting was scheduled by its chairman, City Coun- cilmember Wachter, for 8:00 a.m. Thursday, August 26, 1982, at Fire Station No. 1. City Councilmember Wachter has met with Fire Chief Childers on two or three separate occasions over recent weeks to discuss energy improve- ments to the fire stations. The proposals were submitted by contractors, and before an award is made to a successful bidder, the Public Works Com- mittee wanted to inspect the building and make a final determination as to what type of improvement should be made so that the final decision can be made this fall for the anticipated improvements. It may be the Public Works Committee's recommendation to reject all quotations. If that should occur, a new set of specifications would be developed for the remodling project. r 1%"&& ! Lagp--� city ministrator cc: Mayor Blomquist �J City Councilmember Egan City Councilmember Smith Public Works Director Colbert Chief Building Inspector Peterson MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 6, 1982 SUBJECT: FILL & EXCAVATION PERMIT AND EXTENDED HOURS FOR JOHNSON BROTHERS HAULING OF EARTH AND FILL IN THE 1-494 CORRIDOR i The Director of Public Works and City Administrator have received calls from residents residing on Blue Gentian Road about various questions and concerns regarding the hauling that is being performed by Johnson Brothers Construction Company. The concerns include noise, dust, rerouting of traffic on Blue Gentian Road and the condition of Blue Gentian Road. The City has placed a sign on Blue Gentian Road that indicates "Road Closed. Local Traffic Only" followed by a dead end sign to discourage any vehicular movement between Hwy. 55 and Dodd Road. This action has cut down the attempt of motorists to cut through Blue Gentian Road to Dodd Road. Johnson Brothers did consent to the City to oil Blue Gentian Road for dust control of vehicles traveling on that roadway. Regarding the hauling routes, a large water tanker is running continuously along the route to minimize and restrict dust during this dry period. The area that apparently is causing some problems for dust is the right-of-way area between Lexington Avenue and Blue Gentian Road north of Hwy. 55 where the 494/35E intersec- tion is proposed. The dust is bad in that area, but there is no possible way of watering due to the actual excavation work performed on that site. Some of the complaints about noise have been raised about the operations between 7:00 p.m. and 11:00 p.m. Most of the residents have air condi- tioners and their homes are closed during the hot, humid times. According to the Director of Public Works, the Johnson Brothers Company has been very cooperative and the City staff has worked very closely through the Director of Public Works office to help the persons who are residing on Blue Gentian Road to resolve any problems that are due to the hauling and fill being performed by Johnson Brothers. Mayor Blomquist has received complaints from a resident on Blue Gentian Road, and realising that the City staff has received others periodically, it is her request that this item be placed on the agenda prior to the infor- mationaL hearing to discuss the issue with Johnson Brothers and those neigh- bors who wish to be present to see if any additional -actions can be taken to minimize the effects on the neighborhood due to the hauling operation. The City Administrator has notified the superintendent for Johnson Brothers and the neighbors on Blue Gentian Road. s/Thomas L. Hedges City Administrator cc: Director of Public Works Colbert J • MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 6, 1982 SUBJECT: SPECIAL CITY COUNCIL MEETING Mayor Blomquist has called for a special meeting of the City Council to be held Tuesday, August 10, at 6:45 p.m. at the Eagan City Hall to discuss the following: 1. Excavation & Fill Permit/Extended Hours for Johnson Brothers 2. Open House Informational Meeting for New City Hall Expansion Project 3. Other s/Thomas L. Hedges City Administrator MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 6, 1982 SUBJECT: FILL & EXCAVATION PERMIT AND EXTENDED HOURS FOR JOHNSON BROTHERS HAULING OF EARTH AND FILL IN THE 1-494 CORRIDOR r. The Director of Public Works and City Administrator have received calls from residents residing on Blue Gentian Road about various questions and concerns regarding the hauling that is being performed by Johnson Brothers Construction Company. The concerns include noise, dust, rerouting of traffic on Blue Gentian Road and the condition of Blue Gentian Road. The City has placed a sign on Blue Gentian Road that indicates "Road Closed. Local Traffic Only" followed by a dead end sign to discourage any vehicular movement between Hwy. 55 and Dodd Road. This action has cut down the attempt of motorists to cut through Blue Gentian Road to Dodd Road. Johnson Brothers did consent to the City to oil Blue Gentian Road for dust control of vehicles traveling on that roadway. Regarding the hauling routes, a large water tanker is running continuously along the route to minimize and restrict dust during this dry period. The area that apparently is causing some problems for dust is the right-of-way area between Lexington Avenue and Blue Gentian Road north of Hwy. 55 where the 494/35E intersec- tion is proposed. The dust is bad in that area, but there is no possible way of watering due to the actual excavation work performed on that site. Some of the complaints about noise have been raised about the operations between 7:00 p.m. and 11:00 p.m. Most of the residents have air condi- tioners and their homes are closed during the hot, humid times. According to the Director of Public Works, the Johnson Brothers Company has been very cooperative and the City staff has worked very closely through the Director of Public Works office to help the persons who are residing on Blue Gentian Road to resolve any problems that are due to the hauling and fill being performed by Johnson Brothers. Mayor Blomquist has received complaints from a resident on Blue Gentian Road, and realising that the City staff has received others periodically, it is her request that this item be placed on the agenda prior to the infor- mational hearing to discuss the issue with Johnson Brothers and those neigh- bors who wish to be present to see if any additional actions can be taken to minimize the effects on the neighborhood due to the hauling operation. The City Administrator has notified the superintendent for Johnson Brothers and the neighbors on Blue Gentian Road. s/Thomas L. Hedges 500 A. City Administrator cc: Director of Public Works Colbert Ruth M. Bodlnan Alfred J. Wiger 780 Blue Gentian Rd Eagan Mn Ella Nielsen E1030 Blue agan Mn 55an Rd 121 -4 eq. I • 01'1 _ may 28, 1982 Raymond & Marie Nutmum 1027 Blue Gentian Rd Eagan Mn 55121 I,,y W & Avis Bergh 1023 Blue Gentian Rd Eagan Mn 55121 Ate.& Agnes polzin 1015 Blue Gentian Rd Eagan Mn 55121 Wallace J & Edith Drake 999 Blue Gentian Rd Eagan Mn 55121 Glen W & IOUCille Newou[b 1000 Blue Gentian Rd Eagan Mn 55121- 5�..�;L3I y g3V 3S S N�q �J Si.CJi[ S 7 R'& Kathleen Spar9ur Blue Gentian Rd Mn 55121 Marilyn Sandford 1020 Blue Gentian Rd Eagan Mn 55121 Frank & Patricia Pavlik 990 Blue Gentian Rd Eagan Mn 55121 Douglas E Andrews Fee Judith Herzog 1003 Blue Gentian Rd Eagan Mn 55121 3 i ps 4;'/_a Herbert & Agnes Polzin Fee Eugene G. Napier 988 Blue Genian Road Eagan Mn MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 6, 1982 SUBJECT: SPECIAL CITY COUNCIL MEETING Mayor Blomquist has called for a special meeting of the City Council to be held Tuesday, August 10, at 6:45 p.m. at the Eagan City Hall to discuss the following: 1. Excavation & Fill Permit/Extended Hours for Johnson Brothers 2. Open House Informational Meeting for New City Hall Expansion Project 3. Other s/Thomas L. isHedges City Admintrator I MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 6, 1982 SUBJECT: FILL & EXCAVATION PERMIT AND EXTENDED HOURS FOR JOHNSON BROTHERS HAULING OF EARTH AND FILL IN THE 1-494 CORRIDOR The Director of Public Works and City Administrator have received calls from residents residing on Blue Gentian Road about various questions and concerns regarding the hauling that is being performed by Johnson Brothers Construction Company. The concerns include noise, dust, rerouting of traffic on Blue Gentian Road and the condition of Blue Gentian Road. The City has placed a sign on Blue Gentian Road that indicates "Road Closed. Local Traffic Only" followed by a dead end sign to discourage any vehicular movement between Hwy. 55 and Dodd Road. This action has cut down the attempt of motorists to cut through Blue Gentian Road to Dodd Road. Johnson Brothers did consent to the City to oil Blue Gentian Road for dust control of vehicles traveling on that roadway. Regarding the hauling routes, a large water tanker is running continuously along the route to minimize and restrict dust during this dry period. The area that apparently is causing some problems for dust is the right-of-way area between Lexington Avenue and Blue Gentian Road north of Hwy. 55 where the 494/35E intersec- tion is proposed. The dust is bad in that area, but there is no possible way of watering due to the actual excavation work performed on that site. Some of the complaints about noise have been raised about the operations between 7:00 p.m. and 11:00 p.m. Most of the residents have air condi- tioners and their homes are closed during the hot, humid times. According to the Director of Public Works, the Johnson Brothers Company has been very cooperative and the City staff has worked very closely through the Director of Public Works office to help the persons who are residing on Blue Gentian Road to resolve any problems that are due to the hauling and fill being performed by Johnson Brothers. Mayor Blomquist has received complaints from a resident on Blue Gentian Road, and realising that the City staff has received others periodically, it is her request that this item be placed on the agenda prior to the infor- mational hearing to discuss the issue with Johnson Brothers and those neigh- bors who wish to be present to see if any additional actions can be taken to minimize the effects on the neighborhood due to the hauling operation. The City Administrator has notified the superintendent for Johnson Brothers and the neighbors on Blue Gentian Road. s/Thomas L. Hedges -City Administrator cc: Director of Public Works Colbert SPECIAL CITY COUNCIL MEETING CITY OF EAGAN, AUGUST 24, 1982 7:DG P.R. OFFICE OF THE CITY ADMINISTRATOR, CITY HALL AGENDA 1. 1983 Gbri&rAi Government Budget/First Draft 2. Other Busindss a MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 23, 1982 SUBJECT: SPECIAL CITY COUNCIL MEETING Please note that the special City Council meeting will begin at 7:1$ p.m. instead of 7:00 p.m. as originally scheduled. Handout information is being prepared by the City Administrator and Director of Finance and will be distributed at the meeting. We have made every effort to distribute some of the information this evening; however, the additional time is necessary to compile the correct data for distribution. The plan is to review and summarize totals and work programs as submitted by department heads with the followup budget sessions planned for more detailed budget analysis on the part of the City Council. ck"M0.5 � City Administrator MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 25, 1982 SUBJECT: INFORMATIVE South Area Town Meetin A reminder that the South Area Town Meeting is tomorrow, Thursday, August 26, 1982. Registration is at 5:00 p.m. with a social hour to follow at 6:00 p.m. Dinner will be served after 7:00 p.m. At the last City Council meeting held on August 17, you all indicated that you were planning to attend and therefore have been registered accordingly. If you are unable to attend, please contact Holly or me tomorrow and we will make the appro- priate cancellation. Citizens' Advisory Committee Letter The Citizens' Advisory Committee was planning to be in attendance at the public hearings to be held on August 31 and September 2. Since the referendum is scheduled for two weeks from this coming Tuesday, it seemed appropriate to take time during the first part of the meeting to organize a work plan for the next two weeks for the purpose of holding informational meetings, presenting the slides or distributing the flyers on a door to door basis. Assuming a light turnout, if consistent with the other informational meetings, there will be time to work on the budget if the City Council so desires that evening. Enclosed for your information are a copy of a letter to the Citizens' Advisory Committee and also a copy of the second newsletter (hot off the press) which should be delivered to your homes later this week. Joint Fire Department The joint City Council/Fire Department General Meeting is scheduled for 8:30 p.m. Monday August 30, 1982 at Fire Station #1. As directed by the City Council, the City Administrator will prepare a handout based on the information considered by the City Council at a special City Council meeting in June 1982. That information was the same as presented to the Relief Association committee members that evening. The last public hearing ,to consider the city hall expansion is scheduled for Thursday, September 2, 1982. That is the same evening the Parks & Recreation Committee has its meeting, and it might provide for an oppor- tunity after the public hearing to have a brief update from Tim Erkkila jointly with the advisory committee members on the progress being made in the Park Department on the Park Master Plan. Another busy week is scheduled! City ` ministrator L FM MEMO TO: PUBLIC WORKS COMMITTEE/CITY COUNCILMEMBERS THOMAS & WACHTER FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 25, 1982 SUBJECT: PUBLIC WORKS COMMITTEE MEETING A Public Works Committee meeting was scheduled by its chairman, City Coun- cilmember Wachter, for 8:00 a.m. Thursday, August 26, 1982, at Fire Station No. 1. City Councilmember Wachter has met with Fire Chief Childers on two or three separate occasions over recent weeks to discuss energy improve- ments to the fire stations. The proposals were submitted by contractors, and before an award is made to a successful bidder, the Public Works Com- mittee wanted to inspect the building and make a final determination as to what type of improvement should be made so that the final decision can be made this fall for the anticipated improvements. It may be the Public Works Committee's recommendation to reject all quotations. If that should occur, a new set of specifications would be developed for the remodling project. r�x. F%AAAI& QLA — City ministrator cc: Mayor Blomquist City Councilmember Egan City Councilmember Smith Public Works Director Colbert Chief Building Inspector Peterson MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 27, 1982 SUBJECT: SPECIAL CITY COUNCIL MEETING/AUGUST 31, 1982 There are three (3) items scheduled on the special City Council meeting agenda for the Tuesday, August 31, 1982 meeting. The main purpose for the meeting was to hold a public hearing on the proposed City Hall expan- sion project. In addition, the City Council has scheduled a public hearing to consider tax exempt mortgage financing for a proposed multi -family housing project which involves the conversion and sale of the Cedar Bluff Townhouses from rental to home owner occupied units. As the City Council recalls, in order to qualify as an eligible project through the Minnesota Housing Finance Agency, a public hearing was required prior to September 1, 1982. Enclosed is inform aton the City Administrator has requested from Miller & Schroeder Municipals, Inc., about the proposed housing program. Mr. Paul Ekholm will be present to explain the project and housing program and also to answer questions which the City Council may have at the meeting on Tuesday. If time permits, there will be additional information for the City Council to examine regarding the proposed 1983 Budget. - If there are any questions any members of the City Council have abut the housing program and they would like additional information prior to the meeting on Tuesday, please feel free to contact this office and additional research will be requested from Miller & Schroeder Municipals, Inc. A reminder that Monday evening, August 30, the City Council is scheduled to meet the volunteer fire fighters at Fire Station No. 1 to discuss the fire fighters' pension program. Again, the City Administrator will have a hand out that summarizes the proposal which has been considered by the City Council to date. If the City Council would like to meet at the City Hall prior to the meeting as scheduled on Monday evening to review the pension plan material, please let me know and I will contact all the City Council members to make those arrangements. City ministrator AGENDA CITY OF EAGAN SPECIAL CITY COUNCIL MEETING AUGUST 31, 1982 7:00 P.M. I. Roll Call II. Public Hearings A. Revenue Bond Issue for Tax Exempt Financing/ Cedar Bluff Townhouses B. City Hall Expansion Project C. 1983 Budget Review D. Other III. Adjournment Toll Free Minnesota (800) 862-6002 Tall Free Other States (800) 328-6122 I I Miller & Schroeder Municipals, Inc. Northwestern Financial Center, 7900 Xerxes Avenue South, Minneapolis. Minnesota 55431 • (612) 831-1500 August 27, 1982 Mr. Thomas L. Hedges City Administrator City of Eagan 3795 Pilot Knob Road Eagan, Minnesota 55122 Dear Tom: Enclosed is a copy of the housing program to be considered at Tuesday's public hearing. I am also enclosing a copy of a letter Jim Michael will sign as evidence of his support of the program. I will be at the offices of Holmes do Graven (telephone 338-1177) if you would like to call me with any changes or questions. If Northstar has any changes, I will call you Monday morning and tell you what they are. I'll see you on Tuesday. Si erely, Andrea Lubov AL:mj Enclosures Heedquarten: Minneapolis. Minnesota Branch Offices; Downtown Minneapolis • Solana Beach, California • Northbrook, Illinois • SL Paul, Minnesota • Naples. Florida • Carson City, Nevada Member of the Securities —euar Proreeuon Con)omrlon Toll Free Minnesota (800) 862-6002 Toll Free Other Stales (800) 328-6122 Miller & Schroeder Municipals, Inc. Northwestern Financial Center, 7900 Xerxes Avenue South, Minneapolis, Minnesota 55431 • (612) 831-1500 August 27, 1982 Mr. James Michael Northstar Universal, Inc. 5353 Wayzata Boulevard Minneapolis, Minnesota 55416 Dear Jim: Enclosed is a copy of a letter I would like you to retype and deliver to me by Monday along with a check payable to the Minnesota Housing Finance Agency for $1,000. This amount is a nonrefundable application to the Agency for bonding authority. I have estimated your contribution to the project as follows: Sale price of a unit $ 62,000 Mortgage amount per unit 58,900 (95% of sales price) Number of units to be financed 120 Amount required for mortgages $7,0702000 Plus: Estimated reserves and costs of issuance 1,250,000 Equals: Size of bond issue 8,320,000 Your contribution 329,200 (4% of issue size) This contribution is required to make the project economically feasible and to make this particular program competitive with others submitted to the Minnesota Housing Finance Agency. Under Agency regulations, one criterion by which such programs are judged when bonding authority is allocated is the amount of bond proceeds contributed to the program. I am enclosing a copy of the program that will be reviewed by the Eagan City Council on Tuesday, Agusut 31 at the public hearing. I am also having a copy delivered to Jonathan Scoll for his review. If you have any questions or comments or would like any changes made, please call me. I will be at the offices of Holmes do Graven with Stan Kehl, bond counsel, for the issue for the rest of today. His telephone number is 338-1177. Xndre ely,a Lubov AL:mj Enclosures cc: Tom Hedges, Eagan City Administrator Jonathan Scoll, Esq. Headquarters: Minneapolis. Minnesota Branch Offices: Downtown Minneapolis • Solana Beach. California • Northbrook. III inois • St. Paul. Minnesota • Naples. Honda • Carson City. Nevada Memoerol he Secunries I—,., Crotenion Co,poouon Program For The Financing Of A Multifamily Housing Development Pursuant to Minnesota Statutes, Chapter 462C (the "Act'), the City of Eagan (the "City") has been authorized to develop and administer programs of multifamily housing developments under the circumstances and within the limitations set forth in the Act. Minnesota Statutes, Section 462C.07 provides that such programs for multifamily housing developments may be financed by revenue bonds issued by the City. The City has received a proposal from the Northstar Universal, Inc. (the "Developer") that, pursuant to the authority found in the Act, the City approve a program providing for the issuance of revenue bonds the proceeds of which would be used to make or purchase mortgage loans made to purchasers of condominium units (the "Housing Units") owned by the Developer. The Developer will enter into an agreement to purchase 120 units of rental townhouses, known as the Cedar Bluff _. Townhouses, located on River Bluff Drive and Donald Avenue in Eagan. This Developer further intends to enter into agreements with a contractor experienced in townhouses renovations for the purpose of substantially rehabilitating the townhouse units. Following renovation of such units, the Developer will convert the Project into for sale, condominium ownership townhouses, and will sell the townhouse units to persons and families using mortgage financing, subject to the requirements of this Program. The City, in establishing this multifamily housing program (the "Program"), has considered the information contained in the City's 462C Housing Plan adopted on December 4, 1979 (the "Housing Plan"), including particularly (i) the availability and affordability of other government housing programs; (ii) the availability and affordability of private market financing for the construction of multifamily housing units; (iii) an analysis of population and employment trends and projections of future population trends and future employment needs; (iv) the recent housing trends and future housing needs of the City; and (v) an analysis of how the Program will meet the needs of persons and families residing and expected to reside in the City. The City has particularly considered the deteriorating physical condition of the Cedar Bluff Townhouses and the need for its substantial rehabilitation. At the same time, the City believes that the continuing maintenance of the townhouse units will be best served if occupants of the Housing Units are the owner - occupants. In connection with the conversion of the Housing Units to owner occupied from rental units, the City has considered the availability of other rental units within the City and the purchaser prices for the Housing Units at levels which are compatible with the low to moderate income residents currently residing within the Housing Units. The City in adopting the Program has further considered (i) the amount, timing and sale of bonds to finance the estimated costs of the Housing Units, to fund the appropriate reserves and to pay the cost of issuance; (ii) the method of monitoring and implementation of the Program to insure compliance with the City's Housing Plan and its objectives; (iii) the method of administering, servicing and supervising the Program; (iv) the cost of the City, including future administrative expenses; (v) the restrictions on the multifamily development to be financed under the Program; and (vi) certain other limitations. The development will be constructed and financed pursuant to subdivisions 1 and 3 of Section 462C.05 of the Act. -1- Subsection A. Definitions. The following terms when used in this Program shall have the following meanings, respectively: "Act" shall mean Minnesota Statutes Section 462C.01 et sec., as currently in effect and as the same may be to time amended. - "Adjusted Gross Income" shall mean Gross Family Income, reduced by $750 for each adult in the family, to a maximum of two adults, and less $500 for each other Dependent in the family. "Bonds" shall mean the revenue bonds to be issued by the City to finance the Program. "City" shall mean the City of Eagan, Minnesota. "Commencement Date" shall mean the date on which (1) the City has Bond proceeds available to purchase Mortgage Loans under the Program and (2) the Developer has commenced pre -sale efforts to market Housing Units to Program participants. "Dependent" shall mean "dependent," as defined in Seciton 152 of the Internal Revenue Code of 1954, as amended, and the regulations thereunder. "Gross Family Income" shall mean the current annual income, from all sources as determined In accordance with the then current loan origination requirements of either FHLMC, FNMA, FHA or VA related mortgage loans originated under programs regulated by FHLMC, FNMA, FHA or VA, as the case may be, as verified by an Originator in accordance with such requirements and its customary underwriting practices, of the Mortgagor, his or her spouse, and any co- owner of a fee interest in the Housing Unit to be financed with the proceeds of a Mortgage Loan. "Housing Plan" shall mean the City of Eagan 462C Housing Plan, adopted on December 4, 1979, setting forth certain information required by the Act. "Housing Unit" shall mean any one of those certain condominium units to be located in the Project, occupied by a person or persons as a principal residence and containing complete living facilities, and the purchase of which is financed by a Mortgage Loan. "Mortgage Insurer" shall mean the FHA, the VA or any Qualified Mortgage Guaranty Insurer. "Mortgage Loan" shall mean an interest bearing loan to a Mortgagor for the purpose of purchasing a Housing Unit, evidenced by a promissory note and secured by a mortgage or deed of trust on such Housing Unit. "Mortgagor" shall mean an individual or individuals who have received a Mortgage Loan. "Originator" shall mean any bank, trust company, savings bank, national banking association, savings and loan association, mortgage bank or other financial institution or govenrmental agency which customarily makes or services mortgage -2- loans on owner -occupied residential housing units in the City, or any holding company for any of the foregoing and which has agreed to writing with the City to originate Mortgage Loans under this Program, provided, however that such Originator is approved by FHA, VA, FNMA or FHLMC. "Program" shall mean this program for the financing of the Project pursuant to the Act. " "Program Administrator" shall mean any Originator or other institution with qualifications at least equal to an Originator which agrees in writing with the City to monitor Originators' origination of the Mortgage Loans which have been sold to the City, to service all Mortgage Loans which have been sold to the City and to perform such other functions as agreed upon by the Program Administrator and the City. -- — "Project" shall mean the multifamily housing development consisting of approximately 120 condominium units to be renovated by the Developer. "Qualified Mortgage Guaranty Insurer" shall mean any mortgage guaranty insurance company qualified to do business in the State of Minnesota and qualified to provide insurance on or in connection with mortgage loans purchased by FNMA or FHLMC, whose policies of insurance would not adversely affect the rating on the Bonds, or is rated at the highest rating then given such insurance companies on a claims -paid basis by such rating agency. Subsection B. Program for Financing the Project. It is proposed that the City establish this Program to acquire, and contract and enter into advance commitments to acquire, Mortgage Loans initially originated by and owned by Originators with respect to Housing Units located within the. Project at the prices and upon such other terms and conditions as -are set forth herein and as may be agreed upon in writing between the City and the Originators. To do so, the City expects to make and execute contracts with Originators for the origination of Mortgage Loans and the sale of such loans to the City. The City further expects to make and execute a contract with a Program.. Administrator for the monitoring of origination of the Mortgage Loans, for the servicing of the Mortgage Loans and to pay the reasonable value of services rendered under such contracts. In carrying out this Program, the City may exercise, within the corporate limits of the City, any of the powers the Minnesota Housing Finance Agency is authorized to exercise under the provisions of Minnesota Statutes, Chapter 462A. The City will hire no additional staff for the administration of this Program, but intends to enter into the contract with the Program Administrator who will administer the Mortgage Loans with respect to the guidelines expressed in this Program and who will service the Mortgage Loans. The City also intends to select and contract with a trustee experienced in trust .matters to administrate the Bonds sold to finance this Program by maintaining the various funds and accounts created by the Program documents and by making Bond payments, as they become due, to bondholders from Program generated revenues (the "Trustee"). In servicing the Mortgage Loans and monitoring the origination of Mortgage Loans for compliance with the requirements of this Program, the Program Administrator will, among other things, (i) review -the Mortgage Loan documents prior to the sale of a Mortgage Loan to the City for compliance with the -3- requirements of the City and the requirements expressed in the Program documents; (ii) service the Mortgage Loans and submit monthly payments received from Mortgagors to the Trustee; (iii) collect information with respect to the Origination of Mortgage Loans and submit monthly reports to the City setting forth the income levels of persons receiving Mortgage Loans, the size and type of Housing Units purchased with Mortgage Loan proceeds, and such other information regarding the origination of the Program as the City may reasonably require; (iv) make reports to the City with respect to servicing Mortgage Loans, including collection of monthly payments from Mortgagors, delinquent collections, foreclosure proceedings and any othe related activiites; (v) handle claims for private mortgage insurance and hazard insurance In the event of foreclosure losses and file claims for mortgage pool insurance; and (vi) maintain contact with the City the Trustee and rating agencies with respect to the Mortgage Loans. Insofar as the City will be contracting with underwriters, legal counsel, the -_- Program Administrator, Originators and a Trustee, all of whom will be reimbursed from Bond proceeds and revenues generated by the Program, it is not expected that administrative costs need be paid from the City's budget with respect to the Origination of and mainetance of the Mortgage Loans. Subsection C. Local Contributions to the Program. In addition to the proposal of the City to create this Mortgage Loan purchase Program, the Developer has agreed to contribute certain sums, above the cost of substantially rehabilitating the Housing Units, to assume that sufficient sums will be available to redeem Bonds and to assure the financial feasibility of the Program. The Developer will contribute to the City, for the expressed benefit of this Program, a non-refundable fee of equal to two percent of the principal amount of the Bonds at the time this Program receives approval from the Minnesota Housing Finance Agency, as provided under the Act. The City agrees to place such monies either in the fund to which Bond proceeds shall be deposited for the purpose of acquiring Mortgage Loans or in the capitalized interest fund or the cost of issuance fund at the time Bonds are sold. The Developer will contribute an additional two percent of the principal amount of the Bonds which will be deposited in either the fund into which Bond proceeds shall be deposited for the purpose of acquiring Mortgage Loans or in the capitalized interest fund or the cost of issuance fund at the time Bonds are sold. Subsection D. Standards and Program: Loan Mortgage Loan made under the (1) Substantially all of the proceeds of the sale of the Bonds will be used to provide funds for the acquisition of Housing Units by Mortgagors. (2) . The Adjusted Gross Income of a Mortgagor at the time of application for a Mortgage Loan shall not exceed the greater of: (i) ' 110% of the median family income as estimated by the United States Department of Housing and Urban Development for the Minneapolis -St. Paul Standard Metropolitan Statistical Area; or -4- (ii) 100% of the income limit established by the Minnesota Housing Finance Agency for the City. . (3) For the first six months after the Commencement Date 100% of the funds provided for the purchase of Mortgage Loans may be made or committed only to Mortgagors with Adjusted Gross Income at the time of application of 80% or less of the limit set forth in paragraph (2). (4) To the extent permitted by law, the assumption of a Mortgage Loan held by a Mortgagor by any other person or persons shall be permitted only if the person or persons assuming the Mortgage Loan meet the income limits set forth herein, using the HUD median family income and the Minnesota Housing Finance Agency income limits in effect at the time of the assumption. (5) The purchase price of a Housing Unit may not exceed the lesser of three times the Adjusted Gross Income limit set forth in paragraph (2); four times the Adjusted Gross Income Limit if the Housing Unit is located within a "Target Area", as defined under the Act; or 110% of the average area purchase price for residential housing in the Mineapolis, St. Paul Standard Metropolitan Statistical Area computed as provided under the Proposed Treasury Regulations or any final regulations promulgated under Sectiow.103A of the Internal Revenue Code of 1954, as amended (unless the Housing Unit is within a "Target Area," as defined in 103Aof the Code, in which case the purchase price may not exceed 120% of the average area purchase price for residential housing). (6) All Mortgage Loans may be made and sold to the City and serviced by one Originator to be selected by the City if the City determines that it is necessary to select only one Originiator with respect to the Program. (7) Originators shall accept and process applications for Mortgage Loans on a nondiscriminatory, "first come, first served" basis, subject to the other provisions of the Program, and will not arbitrarily reject an application for a Mortgage Loan for a Housing Unit within a specified geographic area because of the location and/or age of the property, or in the case of a proposed Mortgagor, arbitrarily vary the terms of a loan or the application procedures therefore because of race, color, creed, religion, national origin, sex, marital status, age or status with regard to public assistance or disability. (8) At least ninety percent (90%) monies available to make Mortgage Loans shall be used to purchase Mortgage Loans made to first time homebuyers or Mortgagors who have not owned a home for three year prior to the Commencement Date. Up to ten percent of such monies may be used to purchase Mortgage Loans for Housing Units to be acquired by persons or families who are not first time homebuyers, providing the meet all other requirements of the Program. (9) The Mortgagor of each Housing Unit must be the fee owner of such Housing Unit and must occupy such Housing Unit as a principal place of residence. -5- (10) No Housing Unit may be in violation of applicable building codes and zoning ordinances or other applicable land use regulations. (11) For any Mortgage Loan the original principal amount of which exceeds 70% of the lesser of the purchase price or the appraised value of the Housing Unit subject thereto, such Mortgage Loan must, at a minimum, be insured or guaranteed by a Qualified Mortgage Guaranty Insurer in an amount so that the uninsured or unguaranteed portion of such Mortgage Loans does not exceed 72% of the lesser of the purchase price or the appraised value of such Housing Unit. If such Mortgagor obtains FHA insurance or a VA guarantee to comply with the preceding sentence, such insurance or guaranty must be maintained for the entire period during which the City owns an interest in the Mortgage Loan. (12) The difference between the interest rate on the Mortgage _.- — Loans and the interest rates on the Bonds issued to acquire such Mortgage Loans shall represent only the costs of insurance premiums, amortized expenses of issuing the Bonds, the City's ongoing costs for the administration of all housing programs, fees of servicing and administering the Mortgage Loans and trustee and paying agent fees computed so as to provide that Bonds shall not be deemed of be "arbitrage bonds" under the Proposed Regulations or an final regulations promulgated under Section 103A of the Internal Revenue Code of 1954, as amended. Subsection E. Evidence of ComP�. The City may require from the Developer or Originator, at or betore the issuance of the Bonds, evidence satisfactory to the City of the ability and intention of the Developer to complete the Project, and evidence satisfactory to the City of compliance with the standards and requirements set forth herein; and in connection therewith, the City or its representatives may inspect the relevant books and records of the Developer and the Originator in order to confirm such ability, intention and compliance. Subsection F. Issuance of Bonds To finance the Mortgage Loans for Housing Units the City intends by resolution to authorize, issue and sell its Bonds in an aggregate principal amount of up to $48,320,000, of which approximately $7,100,000 will be available for Mortgage Loans, which Bonds shall be payable solely from the proceeds of the Bonds and the revenues of the Program. The City shall enter into an indenture of trust with an institution authorized to accept such trust and which is experienced in trust management and has a large corporate trust porfolio, upon such terms and conditions as the City shall determine, being advised thereon by bond counsel. In issuing the Bonds, the City may exercise, within the corporate limits of the City, any of the powers the Minnesota Housing Finance Agency is authorized to exercise under the provisions of Minnesota Statutes, Chapter 462A, without limitation under the provisions oPi4i�imesota Statutes, Chapter 475. The Bonds shall be sold by the City at a discount of not more than three percent. Subsection G. Severability. The provisions of this Program are severable and if any of its provisions, sentences, clauses or paragraphs shall be held unconstitutional, contrary to statute, exceeding the authority of the City or otherwise illegal or inoperative by any court or competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions. -6- I AUGUST 1982 Tuesday -August 3, 1982 6:30 p.m. Regular City Council Thursday - August 5. 1982 7:00 p.m. Advisory Park & Recreation Committee Tuesday -- August 40, 1982 7:30 p.m. Town Meeting, "City Hall Expansion" Thursday - August 12, 1982- 7:00 p.m. Cable TV Commission Meeting 7:30 p.m. Citizens' Advisory ,Committee Saturday - August 14, 1982 9:06 a. m. Town Meeting, "City Hall Expansion" Tuesday— August 17, 1982 6:30 p.m. Regular City Council Thursday - August 19, 1982 7:30 p.m. Citizens' Advisory Committee Tuesday - August 24, 1982 7E00 p.m. Advisory Planning Commission 7:00 p.m. Special City Council/Budget Thursday - August 26, 1982: 7:00 p. m. Cable TV Commission Meeting Tuesday -August- 31, 1982 7:30 p. m. City Hall Public Hearing & Budget MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 25, 1982 SUBJECT: INFORMATIVE South Area Town Meetin A reminder that the South Area Town Meeting is tomorrow, Thursday, August 26, 1982. Registration is at 5:00 p.m. with a social hour to follow at 6:00 p.m. Dinner will be served after 7:00 p.m. At the last City Council meeting held on August 17, you all indicated that you were planning to attend and therefore have been registered accordingly. If you are unable to attend, please contact Holly or me tomorrow and we will make the appro- priate cancellation. Citizens' Advisory Committee Letter The CitizensAdvisory Committee was planning to be in attendance at the public hearings to be held on August 31 and September 2. Since the referendum is scheduled for two weeks from this coming Tuesday, it seemed appropriate to take time during the first part of the meeting to organize a work plan for the next two weeks for the purpose of holding informational meetings, presenting the slides or distributing the flyers on a door to door basis. Assuming a light turnout, if consistent with the other informational meetings, there will be time to work on the budget if the City Council so desires that evening. Enclosed for your information are a copy of a letter to the Citizens' Advisory Committee and also a copy of the second newsletter (hot off the press) which should be delivered to your homes later this week. Joint Fire Department The joint City Council/Fire Department General Meeting is scheduled for 8:30 p.m. Monday August 30, 1982 at Fire Station #1. As directed by the City Council, the City Administrator will prepare a handout based on the information considered by the City Council at a special City Council meeting in June 1982. That information was the same as presented to the Relief Association committee members that evening. The last public hearing to consider the city hall expansion is scheduled for Thursday, September 2, 1982. That is the same evening the Parks & Recreation Committee has its meeting, and it might provide for an oppor- tunity after the public hearing to have a brief update from Tim Erkkila jointly with the advisory committee members on the progress being made in the Park Department on the Park Master Plan. Another busy week is scheduled! 1inist City Administrator MEMO TO: PUBLIC WORKS COMMITTEE/CITY COUNCILMEMBERS THOMAS & WACHTER FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 25, 1982 SUBJECT: PUBLIC WORKS COMMITTEE MEETING A Public Works Committee meeting was scheduled by its chairman, City Coun- cilmember Wachter, for 8:00 a.m. Thursday, August 26, 1982, at Fire Station No. 1. City Councilmember Wachter has met with Fire Chief Childers on two or three separate occasions over recent weeks to discuss energy improve- ments to the fire stations. The proposals were submitted by contractors, and before an award is made to a successful bidder, the Public Works Com- mittee wanted to inspect the building and make a final determination as to what type of improvement should be made so that the final decision can be made this fall for the anticipated improvements. It may be the Public Works Committee's recommendation to reject all quotations. If that should occur, a new set of specifications would be developed for the remodling project. r 1%"&& ! Lagp--� city ministrator cc: Mayor Blomquist �J City Councilmember Egan City Councilmember Smith Public Works Director Colbert Chief Building Inspector Peterson