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HomeMy WebLinkAbout02 CC Feb 1998 MINUTESCITY OF GEM LAKE MINUTES OF PUBLIC HEARING (PROPOSED) ORDINANCE NO. 68 23 February 1998 A Public Hearing for the purpose of receiving comments on (Proposed) Ordinance No.68 and Revenue Bond Financing for White Bear Montessori School was convened at.7:05 pm on 23 February 1998 in the first floor meeting room of Tousley Ford. Present were Mayor Emeott, Council Members Birkebak and Nielsen, Treasurer Nordstrom and Clerk Magnuson. Representatives of the White bear Montessori School and several residents of Gem Lake were present, Mayor Emeott explained that the purpose of the meeting was to receive public comment. on (Proposed) Ordinance No. 68, an Ordinance Regulating The Sale, Use, and Possession of Tobacco and Tobacco Related Products in the City of Gein Lake. The Clerk verified publication of the notice of the meeting in the February. 4th edition of the White Bear Press, the City's legal. publication. Emeott stated the need and intent of the (Proposed) Ordinance, reviewed the generalcontent of the (Proposed) Ordinance, and outlined due diligence Performed. in the preparationof the (Proposed) Ordinance. There were no public comments received. There were no comments from the Council. There being no further business, the Public Hearing was adjourned at 7:09 pm. AUTHORED: 24 February 1998. APPROVED: 20 April 1998. ATTEST: Frederic C.Magnuso City Clerk ATTEST: Paul R. Emeott Mayor e-file: •hearings11998198-0119801:febm 1 1 CITY OF GEM LAKE MINUTES OF PUBLIC HEARING (PROPOSED) REVENUE BOND FINANCING WHITE BEAR MONTESSORI SCHOOL. 23 February 1998. A Public Hearing for the purpose of receiving comments on (Proposed) Ordinance No.68 and Revenue Bond Financing for White Bear Montessori School was convened at 7:10 pm on 23. February 1998 in the first floor meeting room of Tousley Ford. Present were Mayor Emeott Council Members Birkebak and Nielsen, Treasurer Nordstrom and Clerk Magnuson. Representatives of the White bear Montessori School and several residents of Gem Lake were present. Mayor Emeott explainedthat the purpose of the meeting was to receive public comment on (Proposed) revenue bond financing of the acquisition and redevelopment of the Majestic Pines Church site at 1201 East County Road E by White Bear Montessori School. The Clerk verified publication of the notice of the meeting in the February 4tedition of the White Bear Press, the City's legal publication. Emeott:presented thefonnal request from the White Bear Montessori..School as contained in the minutes of the January City Council minutes and as Resolution No. 98-04 adopted by the City Council in January, 1.9.98. Etneott then introduced the..interestedparties from the White Bear Montessori School who made a brief presentation of why this financing is necessary. Statements regarding the following were. received: 1) prevailing law provides for this type of financing by non-profit corporations;:2) a description of how the financing. works; 3.).the net effect ofthe financing.on the schools future; 4) limitations „of liability on the City.. Statements regarding the following were presented: 1) an independent bond counsel hasbeen appointed; 2) articles of incorporation as non-profit corporation and accreditation were verified; 3) limitations of long-term andshort-term liability were examined; 4) consideration of adverse effects on he City from participating in this type of financing. Sol]y Robins was recognized Mr. Robins stated he did not feel the City should support this project with financing due to: 1) administrative drain on the Clerk's office; 2) thepotential adverseeffects of a $1,000,000 .bond on a city with a $100,000 budget 3) establishment of a precedent for doing this type of financing; 4) potential limitations ..of.future needs of the city for this type of financing.. He expressed concern regarding the financialstability of the school, askinghow they can repay such a large bond from revenues.. [le expressed concern that bond insurance has not been considered. He expressed concern that bond counsel is primarily representingthe school and not the city. Mr. McPhillips was recognized. He provided a history ofthe site from early . development through establishment of the church on the site, stating restrictions ofsize :were key considerations: He expressed concern that use :of this financing insured the school must grow and that additional facilities would become necessary..He stated that if a scaled down version of the school could be presentedto the community that was acceptable, he could then support the bond toinsure their. future. Mr. Hilkewas recognized. He expressed concern thatthe financialstability of the school was inadequate to support repayment of the bond without major expansion which was objectionable due to traffic and improper use of the site asa residential zoned property. Mr. Hiikealso expressed concerns over potential lender covenants that could later effect the property. Mr. Segermark was recognized. He restated Mr. Hilke's concernsand asked if a: complete financial review of the school's operations had been undertaken. When advised of 3 year projections, he questioned the validity of only 3 year projections where a 2- to 30 year bond was involved. Mrs. Shearen was recognized. She expressed concern over theamount of the bond and the size of the school in a.residentiai neighborhood. Mr. May expressed concern, restating. Mr. Hilke's and Mr. Segermark's concerns. Dr. Birkebak expressed concern based upon the sizeof the school and the fact. that, once enacted, restriction of growth on the site .became extremely difficult, Page 1 of CITY OF GEM LAKE MINUTES OF CITY COUNCIL MEETING February, 1998 The February meeting of the City Council of the City of Gem. Lake was called to order by. Mayor £meott on Monday, 23 February 1998, at 8; l0.p.m. in the first floor meeting: room. of Tousley Ford. Mayor Emeott, Council Members Birkebak and Nielsen, Treasurer Nordstrom, Bond Counsel Remedios, and Clerk Magnuson were present. Also present were representatives of the White Bear Montessori School and several members of the community. Following Mayor.Erneott's request foradditions, deletions, or corrections, the following wereunanimously approved as presented: 1) .19 January 1998 Council Minutes on Motion by Nielsen, Second by Birkebak; 2) 23, February 1998 Agenda on Motion by Birkebak, Second by Nielsen. Review .ofHoeschler's minutes of the 16 February 1998 public hearing on thesite proposal for White Bear Montessori. School, attached hereto as Exhibit' A", were. reviewed, discussed,and accepted with no action taken. Magnuson reported Joel Schilling was instructed to proceed on the Watershed Management Plan by determining what portions of the SEH. proposal were actually necessary and what portionsof the. VLAWMO plan can be adopted directly in form already approved. Schilling proposed a 10 day time line for initial review. Review of the I-35E Corridor Management group activities followed. Motion by Birkebak, Second by Nielsen to continue with the group was unanimously approved. Birkebak reported on current law enforcement issues with no action taken. Motion by Birkebak, Second by Nielsen to enact Ordinance No. 68 and make same effective date of publication was unanimously approved, Discussion followed regarding revenue bond financingof the White Bear Montessori School project. Concerns tobe investigated include: 1) possible use of public referendum for the issue; 2) legal review and protection of the city by city appointed counsel; 3) bond insurance. availability; 4) review of bankcovenants related to the propertyand loan package; 5) review of loner termfinancial projections of the schools operationsto determine ability to repay the issue; 6) projected savings to the. school of the revenue bond financing over commercial lending. Motion by Birkebak, Second by Nielsento continue discussion of the revenue bond financing for White Bear Montessori School to March was unanimously adopted. Motion by Nielsen, Second by Birkebak to appoint. James Lindner to the Planning Commission was unanimously approved. Nordstrom presented the Treasurer's Report,a copy of which is attached hereto as Exhibit "B", and indicating a balance in the City's General Fund of $64,679.24 and in the City's Sewer Fund of $42,412.97. Motion by Nielsen, Second by Birkebak toapprove report was carried unanimously. Paymentof bills totaling $13,354.63 and attached hereto as Exhibit "C" was presented. Motion by Birkebak, Second by Nielsen to approve payments was carried unanimously. The next meeting of the City Council will be on Monday, 15 March 1998 at7:00 pm. There being no further business andupon motionduly made (Birkebak) and: seconded (Nielsen), the meeting was adjourned at 1.0:15 pm. AUTHORED: 24 February 1998. APPROVED: 20 April 1998 AI ['EST: Frederic City Clerk ATTEST: Paul R. Emeott Mayor file: ininutes11998191 rcbm98 Page 1 of 1 Mrs. Nielsen expressed concernover size of the project and magnitude of the bond. She also was concerned that so many of her neighbors have adverse concern about the project. Emeott stated opposition to the bond based upon establishmentof developmentprecedent and size of the bond as it relates to the.city's budget. Further concern exists if the school fails and the property reverts to a lender who doesn't care what happens in the city but only wants money for the property. Magnusonpresented the schools financial and :operating:. overview. Discussion followed with a request to have an independent review of the operating statements and. projections. Open. discussion followed. The: site. was identified as a transition zone. providing.. protection.to the residential owners firom comniercial encroachment by the deye lopment.underway. and planned in.Vadnais Heights: On Motion by Birkebak, Second by Nielsen and unanimous vote, the matter was continued until both the site proposal and. further. financial investigation 'can. be performed. There being no further business, the Public Hearing was adjourned at 8:09 pm. AUTHORED: 24 February 1998 APPROVED: 20 April I:998 ATTEST: ATTEST: Frederic C. MalPaul R. Emeott City Clerk Mayor c-file: hearings\1998198-0119802febm2