HomeMy WebLinkAbout1978/01/09 - ADMIN - Minutes - City Council - Regular (2) •
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MINUTES
SPECIAL CITY COUNCIL MEETING
ST . LOUIS PARK , MINNES
January 9 , 1978 ; 6 : 30 p •m •
A special meeting of the City Council was called
1 . Call to Order Mayor Stern at 6 : 30 p . m .
to order by
2 . Roll Call The following Councilmen were present at roll
call :
Ronald Backes Lyle Hanks
Keith Meland Leonard Thiel
Irving Stern
Councilman Griak arrived at 6 : 50 p . m .
Also present were the City Manager , City Attorney , Director of Planning ,
acting Director of Public Works and Finance Director .
UNFINISHED BUSINESS
3 . Block 3 , Resolution relating to Oak Park Village , authorizing
Oak Park Village adoption of agreement between developer of Block 3
and City of St . Louis Park .
The Council was presented a revised resolution of
agreement prepared by the City Attorney dated January 9 ; the Council was
also presented a revised agreement prepared by the developer ' s attorney
entitled "Dickerson Draft " also dated January 9 , 1978 .
Mr . Driscoll , counsel for the proposed developer , explained the latest
modifications to the resolution related to the fact that the developer
must receive public financing ; he said the underwriters are concerned due
to the potential pollution problems reported by the local press and re -
quest additional security . He referred to paragraph 4a and suggested the
developer should not be obligated to engage in any cleanup activities
related to soil deposited on Block 3 during past construction of Louisiana
Avenue .
The City Attorney suggested the final clause in paragraph 4a could be
modified to read : " or to remove any soil used in road construction . "
Mr . Driscoll agreed to the modification .
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City Council minutes , January 9 , 1978
Councilman Meland referred to the second sentence in paragraph 4 which
read : " The City Council believes that the development of the property
should commence as soon as is possible and that such development is
desirable and advantageous for the City and its citizens . " He suggested
that the language could be modified so as not to be such a strong
statement in support of the project in that the Pollution Control Agency
and Minnesota Health Department may not continue to feel development on
the site " desirable and advantageous . " Mr . Driscoll suggested the
statement indicated the City is making the project welcome .
Mayor Stern felt the statement appropriate , if the City plans to
indemnify and place its good faith and backing behind the project . He
suggested if the Council did not agree with the statement , perhaps it
should not continue with the project .
In response to a question from Councilman Backes relating to a possible
conflict in paragraphs 4b and 4c , Mr . Driscoll stated that 4b deals with
improvements , 4c deals with loss of rents .
After further discussion , it was agreed to eliminate the phrase " or
caused by conditions existing as of the date hereof , " from paragraph 4b .
Mr . Driscoll stated the developer would prefer a 100-percent indemnification
for loss of rents ( 4c ) but would be willing to agree to a 90 -percent
indemnification . He stated his cash margin is limited to 4 percent of
implied equity .
Councilman Thiel felt the proposed agreement assured the full faith and
credit of the City behind the project which should allow the developer to
obtain a more desirable interest rate in its financing . The City Manager
explained that the mortgage money and financing rate have been determined
and would not be affected by the execution of the requested agreements
In response to a question from CouncilmThiel ,
liabilityCity
duringfuture
Finance
Director
felt that the City must disclose any potential
bond issues , and if an agreement exists which creates potential liability ,
this must be disclosed .
The Council discussed the fact that only
one
soil
forboring
structuralthe
purposes .
went to a depth of 90 feet and the balancewere
The Council felt that prior to execution of a
idhamss or int demnifica -
tion agreement with the developer , additionalborings to
dhe
presence of creosote should be conducted under the
would the structures on Block 3 . It was noted the costbe approximately
$ 1 , 000 per boring and it would take approximately two months to obtain
the results .
Mr . Dickerson stated a two -month delay could
possibly
indefinitelyoandt
permanently ; he said funding would not be available
explained that the delays inby
resistingthe direction of the
PCA and Minnesota Health Department have cost him $ 75 , 000 to $ 100 , 000 .
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' City Council minutes ,
January 9 , 1978
;au:
Councilman Backes , to
It was moved by Councilman Thiel , seconded by
s under the area where the
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I authorize four to five additional soil boring to be analyzed by the
., proposed buildings will be located on Block if the developer agrees
�: most qualified engineering firm in the country ,
' ' the project in light of the anticipated two -month delay .
to continue
' necessitate renewed
Mr . Driscoll suggested a two-month delay may
financing which will result in higher costs for the developer .
r,'..
The motion passed 6 - 0 .
4 . Adjournment Upon mot on by Councilman Thiel , seconded by
= Councilml n Backes , the meeting was adjourned at
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7 : 30 p . m by a vote of 6 - 0 .
Irving M . Stern
Mayor
Attest :
.r
ar a
,"' Beverly Fla 47; 64°411agan
Recording Secretary
I
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