04/23/1980 - City Council Special
00094
MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL
EAGAN, MINNESOTA
APRIL 23, 1980
A special meeting of the Eagan City Council was held on April 23,
1980, at 7:00 p.m. at the City Hall. Those present were Mayor Blomquist, Coun-
cilmembers Egan, Smith, Wachter and Parranto. Also present was City Administra-
tor Hedges.
TAX EXEMPT MORTGAGE FINANCING ISSUE
Mr. Dick Lincoln, representing Miller & Schroeder Municipals, Inc.,
appeared and informed the City Council that the Tax Exempt Mortgage Bonds for
the purpose of providing mortgages for single family housing units were sold
at an interest rate of 10Z% which provides a mortgage rate of 11.25%. He also
reported that Standard & Poors rating service would allow 25% of the mortgage
pool to be used for the graduated payment program. Mr. Lincoln also discussed
the proposed HUD increase for purchase price and income limits, stating that
those limits will be raised in the near future. Mr. Jim Holmes, representing
the firm of Holmes & Graven, special legal counsel for the Tax Exempt Single
Family Mortgage Financing Program, reviewed all the documents and discussed
the proposed closing of the bonds as it relates to the program. After further
discussion on the matter, and in a motion by City Councilmember Smith, seconded
by Councilmember Parranto, with Mayor Blomquist, Councilmembers Egan, Smith
and Parranto voting aye, and Councilmember Wachter voting nay, was adopted appro-
ving the interest rate of 11.25%, issuance of the mortgage revenue bonds as
well as the other provisions required for the program.
In a motion by City Councilmember Egan, seconded by Councilmember
Smith, with Mayor Blomquist, Councilmembers Egan, Parranto and Smith voting
aye, and City Councilmember Wachter nay, authorized restriction of assumability
to those who qualified under the low income part of the program.
In a motion by City Councilmember Smith, seconded by Mayor Blomquist,
with Mayor Blomquist and City Councilmembers Smith and Egan, and City Council-
members Parranto and Wachter voting nay, that the graduated payment program
be restricted to those persons qualifying under the low income category for
the first six months of the program.
City Councilmember Parranto raised the question regarding the authen-
ticity of purchase agreements made prior to approval of the program. He ques-
tioned whether those purchase agreements are legal and should be honored by
lenders if dated prior to the program. After further discusssion on the matter,
in a motion by City Councilmember Parranto, seconded by Councilmember Smith,
with all members voting aye, all purchase agreements entered into prior to April
23, 1980 will not be acceptable under the Tax Exempt Mortgage Single Family
Financing Program unless those purchase agreements are redrafted and resubmitted
to a different lender, however, a lender who is qualified under the Tax Exempt
Mortgage Financing Program.
R 80-29
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City Council Minutes
April 23, 1980
Page Two
PARKS AND RECREATION DIRECTOR INTERVIEWS
Four (4) candidates for the position of Director of Parks and Recre-
ation were interviewed by the full City Council. This'concluded the interviews
for that position. In a motion by City Councilmember Wachter, seconded by City
Councilmember Egan, with all members voting aye, Mr. Steve Michaud, Director
of Parks and Recreation for the City of Lakeville, was offered the position
of Director of Parks and Recreation for the City of Eagan at an annual salary
of $23,000. City Administrator Hedges stated that he would present an offer
to Mr. Michaud and report back to the City Council of his decision.
PARA TRANSIT SYSTEM
City Administrator Hedges stated that the Cities of Apple Valley,
Burnsville, Lakeville, Savage and Rosemount joined together several months ago
to form a task force on energy and are currently studying the potential of a
Para Transit System to serve northern Dakota and Eastern Scott Counties. He
stated that the purpose for considering the Para Transit System is to offer
an alternative to exclusive use of the automobile for mobility. At the April
1, 1980 City Council meeting, action was taken to endorse the para transit con-
cept for western Dakota and eastern Scott communities to include Eagan. Since
then, a resolution has been drafted which basically sets forth the same action
as the motion adopted at the April 1, 1980 meeting. However, for- purposes of
uniformity, the Metropolitan Council would like all cities to adopt the resolu-
tion. After a brief discussion on the matter and in a motion by City Councilmem-
ber Smith, seconded by Councilmember Egan, with all members voting aye, the
resolution was adopted, endorsing a study and further feasibility of implementing
a Para Transit System for northern Dakota and eastern Scott Counties to include
the City of Eagan.
R 80-30
ICE ARENA BANQUET
In a motion by City Councilmember Smith, seconded by Councilmember
Parranto, with Mayor Blomquist, Councilmembers Egan, Parranto, and Smith voting
aye and City Councilmember Wachter abstaining, the Mayor, a member of the City
Council or the City Administrator was authorized attend a banquet scheduled
for April 26, 1980, sponsored by the Eagan Ice Arena Committee.
ADJOURNMENT
Upon motion duly made, the meeting adjourned at 11:30 p.m.
DATED: APRIL 23, 1980 TLH
City Clerk