89-601 WHITE - CITY CLERK
PINK - FINANCE COUnC1I
CANARV - DEPARTMENT GITY O AINT PAITL dD,
BLUE - MAVOR File NO. -
, ounc l Resolution ������;
�
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS, local units of gov rn ent face prohibitive costs in
order to prepare polluted 1 nd for redevelopment , and
WHEREAS, the federal and st te super fund legislation does not
assist in the cleanup of si es with small and moderate scale
pollution, and
WHEREAS, local units of gov r ent are suffering from federal
cutbacks of economic develo me t dollars, and
WHEREAS , local units of gov r ent need assistance from the
state in order to prepare t e e polluted sites for
development ;
NOW, THEREFORE, BE IT RESOL E , that the City of Saint Paul
supports state legislation h' ch would set up a state loan
fund for local cleanup effo t and directs lobbying staff to
work on this legislation in 1 89.
COUNCIL MEMBERS Requested by Department of:
Yeas Nays
Dimond
Lo� _�_ In Fav r
Goswitz
Rettman � B
sche;be� _ Agains y
Sonnen
Wilson
A�� — � � Form Approv City Attorney
Adopted by Council: Date
Certified Pass uncil re BY
By,
Appro e y Mavor: Date � APR — 7 1 Approv�d y Mayor Eor Submi ion to Council
B By �,
PUBI.�S� �'j'�� 1 � 98
, . , EsFtIEr._:_:�:i� F 1 Eti: _ _..1'U_I�L�'I'LD LANDj
. . � _ _- ��/-(�0/
Back�round
Developable land within hi� l�� populated urban areas is
becoming increasin�in�ly di fi ult to locate . Vacant,
undeveloped land is rare , a d "blighted" land is often too
e�pensive to clear or prepa e for new development because of
e�istin� pollution on and b ne th the site . Private
developers ��re uniailling to in -est in an espense they mav not
recoup.
Status
The Superfund law at the fe er 1 and state levels provides
limited funding to multi-mi li n dollar cleanup projects .
Funds are not available for s ller scale cleanup efforts .
Dtie to the cutbacic of feder 1 funds to local units of
government for economic dev lo ment , property owners are
alread`• carrying a heavv bu de to provide revenues for
public-purpase projects , su h s low-income housing.
Redevelopment of blighted a d olluted land may provide the
infusion of private dollars ne essarv to revitalize
communities and neighborhoo s , but local units of government
cannot provide the "up fron " funding necessary to malte the
property marketable to the ri ate sector.
The Cit�� Position
The City of Saint Pau? supp rts state legislation which sets
up a "hazardous substance 1 a " fund at the state level , which
will allow local units of � vernment to borrow money for
removal or remedial actions o pollution in order to prepare
the property for redevelopm n .
ri.�w - r�r�n�:�..G - COURCII �� �O/
�.�,�, ._ U�-Y��ITMEN. (�. I 1'`e" O A I N"F ��A tT I.
OLUE - MAYO�+
File N 0.__
Counc l esolution
Presented C3y �
Referred To Committee: Date
Out of Committee Eiy Date
WHEREAS , local units of gove n ent face prohibitive costs in
order to prepare polluted la d for redevelopment, and
WIiEREAS , the federal and sta e super fund legislation does not
assist in the cleanup of sit s ith small and moderate scale
pollution, arid
WHEREAS , local units of gove n nt are suffering from federal
cutbacks cf economic develop e dollars , and
WHEREAS , local units of gove mm �t need assistance from the
state in order to prepare th se polluted sites for
development;
NOW, THEREFORE, BE IT RESOLV D, that the City of Saint Paul
supports state legislation w ic would set up a state loan
fund for local cleanup effor s nd directs lobbying staff to
work on this legislation in 98 .
COUNCIL MEMBERS Requested by Department of:
Yeas � Nays
Dimoad
LO"g [n Favor
Goswitz
Rettma�
Scheibel A gai n s t By
Sonnen •
�Ison
Focm Approved by City Attorney
Adopted by Council: Datc • ..
Certified Passed by Council Secretary BY
By
Approved by 1�lavor: Date Approved by Mayor for Submission to Council
By By
. ,.. . ��`: �'^c. <� �a�°.?4" •:�
. � � .� � �vC�-.�a�
� Bill For An Act
relating to econom d velopment and the environment; providing
methods to remov h zardous substances to facilitate economic
develoQment; auth riz ng loans; appropciating money; proposing
coding for new law n � innesota Statutes, chapter 446A.
BE IT ENA T D BY THE STATE OF IVIIYNESOTA:
"Section 1. [446A.211 ( EFINITIONS.]
Subdivision 1. [APPL CA ILITY.] The definitions in this subdivision apply
to section 1 to 3. The d fin'tions in sections 115B.02 and 115C.02 subdivision
10 that are not defined i t is subdivision a lv to sections 1 to 3.
Subd. 2. [AUTHOR.IT .] "9uthority" means the Minnesota public facilities
authoritv.
Subd. 3. [DEVELOP E T RESPONSE ACTION PLAN.] "Development
res onse action lan" m an a lan of removal actions or remedial actions
develo ed in accordance it 469.174 subd. 17.
Subd. 4. [HAZARD U SUBSTANCE LOAN OR LOAN.J "Hazardous
substance loan" or "loa " eans a loan to a munici alit to be used b the
munici alit for the ur ose in section 3 subdivision 3 ar Pra h (b) clause
�2).
Subd. 5. (HAZARDO S UBSTANCE LOAN FUND OR FUND.] "Hazardous
substance loan fund" or 'f d" means the fund created b section 2 and the
accounts in the fund es bli hed to finance hazardous substance loans.
Subd. 6. [MUNICIPA IT .] "'.Viunicipality" means a home rule charter or
statutor cit town c nt school district s ecial taxi district housin
and redevelo ment aut ri v authorized to exercise owers under sections
469.001 to 469.047 t uthoritv authorized to exercise owers under
sections 469.048 to 469 08 economic develo ment authorit authorized to
exercise owers under ec ions 469.090 to 469.108 or a munici al ower
encv overned b cha er 53.
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Sec. l. [446A.22] [HAZ� D US SUBST�NCE LOAN FUND.]
A hazardous substance lo n und is created to be administered bv the
authorit . Ylonev in the haz o s substance loan fund shall be used to make
or urchase hazardous subst nc loans and to a the costs incurred in the
makin or urchasin of haz rd us substance loans as rovided in section 3.
:Vlone s in the hazardous su ta ce loan fund ma also be used to rovide a
source of revenue or securi v or the a ment of rincipal and interest on
bonds issued bv the authorit to the extent the bond roceeds are de osited in
the hazardous substanee oa fund. The authoritv ma re uire the
commissioner of finance to ea e separate accounts within the fund for use in
accordance with the fund's r se.
Sec. 3. [446A.23] [HA R OUS SUBSTANCE LOANS.)
Subdivision 1. [AUTHO IZ TION.] The authority may make or purchase
hazardous substance loans w th one in the hazardous substance loan fund.
Subd. 2. [LOAN REPAY E T OBLIGATION.] A municipality's obli�ation
to re av a hazardous subs nc loan shall be evidenced b a loan a reement.
Loan reoa ment obli ation sh 1 be a able solelv from amounts le ed to
the ur ose �ursuant to the loa eement. Pa ments re uired to be made b
the munici alit ursuent t e loan eement ma be less than or e ual to
the rinci al amount of th lo n as the authorit shall determine based on the
available sources of a m nt as s ecified in this section. The loan ma be
interest free or ma bear int rest as the authorit shall determine based on
the available sources of a m nt as s ecified in this section.
Subd. 3. (LOAN APP IC TION.] (a) To obtain a hazardous substance
loan a munici alit sh s mit an a lication to the authorit on a form
covided for that ur ose e a lication shall identif the munici alit and
the ro osed uses of the r ceeds of the hazardous substance loan and an
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interest to be earned on t. e ro osed sources amounts, and schedule of
re a ment of the loan th �r ert ro osed to be benefited b the loan, and
the ro osed develo ment r r develo ment activities to be undertaken on the
ro ert subsequent to the re oval actions and remedial actions.
(b) The munici alit h certify on the application:
(1) that the munici lit has re ared a develo ment res onse action
lan with res ect to the s 'e t ro ert •
(2) that the proceed of the hazardous substance loan will be used to a
or reimburse the costs of: {i) emoval actions or remedial actions with respect
to hazardous substances r llutants or contaminants or etroleum releases
which affect or ma affe 1 d owned or to be urchased b the munici alit
or land which is art of r 'ect as defined in section 469.174 subd. 8 (ii)
ollution testi dem liti n soil com action correction relocation
circumstance related to t e ub'ect ro ert and costs of ac uisition of real
ro ert and existi m ovements of the sub'ect ro ert b the
develo ment res onse ac ion lan and (iii) related administrative financi
and legal costs;
(3) that the remo al actions or remedial actions s ecified in the
develo ment res onse a tio lan have been a roved in accordance with
subdivision 5 b the om issioner of the ollution control en as
reasonable and necess v to rotect the ublic health welfare and
environment; "
(4) that after com le 'on of the removal actions or remedial actions
s ecified in the develo me t res onse action lan the land wt11 be or is
ex ected to be develo d r redevelo ed b a no overnmental erson or
ep rsons;
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(5) that the cost of the re edial actions or removal actions re uired bv
the develoament resQOnse ac ion lan is so hi h as to render develo ment or
redevelopment of the site t easible in the opinion of the munici�alitv
without a hazardous substanc lo n•
(6) if the municipalit ha reviousl received a hazardous substance
loan for the sub'ect ro tv that in the course of carr in out the
develo ment res onse actio 1 n it has determined that removal actions or
remedial actions are re uire t be taken in addition to those specified in the
develo ment res onse actio 1 n, and that the commissioner of the pollution
control a enev has reviewe d ap roved the develo ment res onse action
lan as modified bv such ad iti al removal actions or remedial actions.
Subd. 4. [LOAN PftIOR Y AND RESTRICTIONS.] (a) Loans may not be
made for more than �5 000 00 for one site.
(b) Hazardous substa ce loans shall be made uarterl to aDplicants
which have made the certi ic tions described in subdivision 3 ar ra h (b).
If on a uarterlv award da e the authorit determines that there are
insufficient amounts in e hazardous substance loan fund to make all
hazardous substance loans r� erlv a lied for (i) reference shall be iven
f irst to those a olicants t t have made the certif ication described in
subdivision 3 ar ra h b) clause (6) and (ii) a licants which are not
awarded loans in that u te shall be iven reference on the next uarterl
award date on which fund available for such ur ose. In allocatin loans
amon ro'ects of a ive iorit the authorit ma take into account the
antici ated effect on the ec nomic condition of the site and surroundin area
includi the effeet on e 1 ment tax revenues market value and b ' htin
influences.
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� Hazardous subs nc loans ma not be made for a site for which
removal actions or rem ia actions are scheduled bv the ollution control
a enc to be initiall fun ed durin the current or next succeedin fiscal vear
ursvant to the Environ en al Res onse Comoensation and Liabilitv Act of
1988 United States Cod itle 42, section 9601 et se . the environmental
res onse com ensation an com liance fund under section 115B.20 the
etroleum tank release c ea o act under cha ter 115C or other state fundin
source without the au ro al f the ollution control a encv.
Subd. 5. (APPROVA F DEVELOPMENT RESPONSE ACTION PLAN.]
The commissioner of th llution control a enc shall have 30 davs from
submission of a develo� en res onse action lan or anv modified lan b a
municiDalitv to com let it review and re'ect a ro am. If the ollution
control a enc re'ects de elo ment res onse action lan or an modified
lan it shall communic e e fact of that re'ection and the s ecific reasons
for such re'ection in rit n to the municipalit within 15 da s of the
re'ection. If the a enev fai to re'ect a develoament res onse action lan or
anv modified lan) with n 0 da s of submission or fails to communicate a
re'ection in writin to he munici alitv within 15 da s of the re'ection then
the develo ment resoo se action lan or modified lan shall be deemed
approved.
Subd. 6. [LOAN APP O AL.] �a) Upon approval of a loan, the authority
shall notif the munici ali that the loan will be made and set aside the
amount a roved in a ec al account. The notice shall state the rinci al
amount of the loan an th t the loan will be made when all the terms for
makin and re a in th lo n have been a eed u on b the authorit and the
municipality.
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(b) The municipalit ' m v borrow from the fund under the same terms
that it mav issue bonds o ot er obli ations ursuant to anv law a licable to
the munici alitv that is c ns' tent with this section.
(c) The loan shall b e idenced bv instruments re ared in accordance
with this section and the 1 w nder which the munici alit ro oses to issue its
obligation.
(d) The loan shall b re aid solel from the sources s ecificallv le ed
to re a the munici alitv' ob ' ation.
(e) Notwithstandin th law under which the obli ation of the
munici alit is issued t e bli�ation mav be sub'ect to such terms and
conditions as are reed t ' b the authorit and the munici alit .
(f) The authorit m v uire onl tax increment and land sale roceeds
from the site with resoec to hich the loan is bein made to be led ed. The
munici alit shall not be r u red to led e amounts from those sources if and
� to the extent stated in e lication the are led ed or re uired to be
led ed to retire other ob ' a ions described in the a lication and incurred to
finance a ortion of the c s of the t e eli ible for financin under this
section. � �
Subd. 7. (ACCOU TI G OF COSTS.� Upon completion of the
develo ment res onse act on lan the munici alit shall submit an accountin
of costs incurred to th' uthorit to ether with an unex ended loan
roceeds includin an e ended investment earni �s on such roceeds
which shall be a lied t e a ment of the obli ations under the loan
agreement.
Subd. 8. [ftULES.] e a thorit ma ado t ermanent rules to im lement
sections 1 to 3.
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Sec. 4. [APPROPRIATIU O TRADE AND ECONOMIC DEVELOPMENT.]
$ . . . . . . . . . is a ro riat f om the state buildi fund to the Minnesota
ublic facilities authoritv f r t e ur ose of makin or urchasin hazardous
substance loans under sec ion 3. Funds received from loan re a ments
rovided in section 3 and in m from investments of mone s in the hazardous
substance loen fund establis ed in section 2 are a ro riated to the Minnesota
ublic facilities authorit f r t e ur ose of makin or urchasi hazardous
sbustance loans. This ap ro ria ion is avail.able until ex ended.
Sec. 5. [EFFECTIYE AT .] Sections 1 to 3 are effective the day
following final enactment.
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(5) that the cost of t e r medial actions oc removal actions re uired bv
the development res onse a ti n plan is so hi h as to render develo ment or
redevelovment of the site no feasible in the ooinion of the munici�alitv
without a hazardous substan e 1 an;
(6) if the municiQalit h s reviouslv received a hazardous substance
loan for the sub'ect ro rt that in the course of carr in out the
develo ment res onse actio an it has determined that removal actions or
remedial actions are requir d t be taken in addition to those soecified in the
development response actio 1 n and that the cammissioner of the ollution
control a enev has reviewe a d a roved the develo ment res onse action
lan as modified bv such ad iti al removal actions or remedial actions.
Subd. 4. (LOAN PRIOR Y AND RESTRICTIONS.] (a) Loans may not be
made for more than $5 000, 00 or one site.
�b) Hazardous substa e loans shall be made uarterl to applicants
which have made the certi ca ions described in subdivision 3 ar raph (b).
If on a uarterlv award dat the authorit determines that there are
insufficient amounts in t e azardous substance loan fund to make all
hazardous substance loans ro erlv a lied for (i) eeference shall be iven
first to those a licants ha have made the certification described in
subdivision 3 ar ra h ( ) lause (6) and (ii) a licants which are not
awarded loans in that uart r s all be iven reference on the next auarterl
award date on which funds e vailable for such ur ose. In allocatin loans
amon ro'ects of a iven ri rit the authorit ma take into account the
antici ated effect on the e n mic condition of the site and surroundin area
includin the effect on em o ent tax revenues market value and b ' htin
influences.
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�,'�I �hat the cost of t e emedial actions or removal actions re uired bv
�ie�oment respanse ct n plan is so hi h as to render develo ment or
rs+�ent of the sit n t feasible in the o�inion of the munici�alitv
,�ut:�azardous substa ce loan•
� if the municipa 't as reviousl received a hazardous substance
� � the sub'ect r er v that in the course of carr in out the
�mt res�onse act on lan it has determined that removal actions or
�sidnctions are reQUi ed to be taken in addition to those specified in the
�esit resoonse acti n lan, and that the commissioner of the ollution
� nev has revie ed and ap roved the develo ment res onse action
�madified bv such a di onal removal actions or remedial actions.
��. [LOAN PRIO IT AND RESTRICTIONS.] (a) Loans may not be
�z�more than $5 00 ,00 for one site.
� Hazardous subs nc loans shall be made uarterl to ao licants
�� made the cer ifi ations described in subdivision 3 ar ra h (b).
� � s uarterlv awar te the authoritV determines that there are
�ut amounts in th hazardous substance loan fund to make all
� substance loa o erlv a lied for (i) �eference shall be iven
�ms those a lican t at have made the certification described in
�n 3 ar ra h (b) clause (6) and (ii) a licants which are not
a�iloans in that u te shall be iven reference on the next uarterl
��te on which fun s e available for such ur ose. In allocatin loans
'ects of a iv n riocit the authorit ma take into account the
� �ie;�ed effect on th ec nomic condition of the site and surroundin area
- the effect on e 1 ment tax revenues market value and b ' htin
e�ie�es.
4
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� Hazardous subst nc loans mav not be made for a site for which
removal actions or reme ial actions are scheduled bv the ollution control
a enc to be initiall fun d urin the current or next succeedin fiscal vear
ursuant to the Enviromm �t 1 Res onse Com ensation and Liabilitv Act of
1988 United States Cod ti le 42 section 9601 et se . the environmental
res onse. com ensation nd com liance fund under section 115B.20 the
etroleum tank release cl an act under cha ter 115C or other state fundin
source without the ap rov 1 o the ollution control a enev.
Subd. 5. [APPROVA O DEVELOPMENT RESPONSE ACTION PLAN.]
The commissioner of th o lution control a enc shall have 30 davs from
submission of a develo m nt resoonse action lan or anv modified lan b a
municipalit to com lete it review and re'ect a ro am. If the ollution
control a enc re'ects a de elo ment res onse action lan or an modified
lan it shall communicat t e fact of that re'ection and the s ecific reasons
for such re'ection in riti to the munici alit within 15 da s of the
re'ection. If the a enc ail to re'ect a develo ment res onse action lan (or
anv modified lan withi 3 da s of submission or €ails to communicate a
re'ection in writin to � unici alitv within 15 da s of the re'ection then
the develo ment resuon e etion lan or modified lan shall be deemed
approved.
Subd. 6. [LOAN APP O L.] �a) Upon approval of a loan, the authority
shall notif the munici lit that the loan will be made and set aside the
amount a roved in a s eci 1 account. The notice shall state the rinci al
amount of the loan and th t the loan will be made when all 'the terms for
makin and re a in the loa have been a eed u on b the authorit and the
municipality.
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(b) The munici alit m v orrow from the fund under the same terms
that it ma issue bonds or ot er obli ations ursuant to anv law a licable to
the munici alitv that is cons' te t with this section.
(c) The loan shall be vid nced bv instruments re ared in accordance
with this section and the law un er which the munici alitv ro oses to issue its
obligation.
(d) 'I7ie loan shall be r pa d solelv from the sources s ecificallv le ed
to re a the munici alitv`s li ation.
(e) Notwithstandin he law under which the obli ation of the
municipalit is issued th o li�ation mav be sub'ect to such terms and
conditions as are reed to v e authorit and the munici alit .
(f) The authoritv ina re uire onl tax increment and land sale roceeds
from the site with respect o ich the loan is bei made to be led ed. The
munici alit shall not be re ui ed to led e amounts from those sources if and
to the extent stated in t e oplication the are led ed or re uired to be
led ed to retire other ob at ons described in ttte a lication and incurred to
finance a ortion of the os s of the t e eli ible for financin under this
section. �
Subd. 7. [ACCOU I G OF COSTS.] Upon com letion of the
devela ment res onse act n lan. the munici alit shall submit an accountin
of costs incurred to th uthorit to ether with anv unexvended loan
roceeds includin an e pended investment earni s on such roceeds
which shall be a lied o he a ment of the obli ations under the loan
a�reement.
Subd. 8. (RULES.] e uthorit ma ado t ermanent rules to im lement
sections 1 to 3.
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� � . (,c�-�oi
Sec. 4. (APPROPRIATIU T TRADE AND ECONOMIC DEVELOPMENT.]
$ . . . . . . . . . is a ro riate f om the state buildi fund to the Minnesota
ublic facilities authorit f r t e ur ose of makin or urchasin hazardous _.
substance loans under sec 'on 3. Funds received from loan re a ments
rovided in section 3 and inc m from investments of mone s in the hazardous
substance loan fund establis ed in section 2 are a ro riated to the Minnesota
ublic facilities authorit f r t e ur ose of makin or urchasin hazardous
sbustance loans. This a ro ria ion is avail.able until ex ended.
Sec. 5. L EFFECTIVE AT .l Sections 1 to 3 are effective the day
following final enactment.
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_ =- . _ - -- �_:.._.
. - �d''t��6al
WHITE - C�TV CI.ERK
PINK - FINANCE � COUI1C11
GANARV - DEPARTMENT GITY OF S I T PAUL File NO.
9LUE - MAVOR
Council olution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS, local units of govermm �t face prohibitive costs in
order to prepare polluted land or redevelopment , and
WHEREAS, the federal and state up r fund legislation does not
assist in the cleanup of sites it small and moderate scale
pollution, and
WHEREAS , local units of govermm �t are suffering from federal
cutbacks of economic developmen allars , and
WHEREAS, local units of govermm � need assistance from the
state in order to prepare these , p lluted sites for
development;
NOW, THEREFORE, BE IT RESOLVED, t at the City of Saint Paul
supports state legislation whic ould set up a state loan
fund for local cleanup efforts n directs lobbying staff to
work on this legislation in 198 .
COUNCIL MEMBERS Requested by Department of:
Yeas Nays
Dimond
�o�g _ In Favor
Goswitz
Rettman BY
s�ne;be� __ Against —
Sonnen
Wilson
Form Approv City Attorney
Adopted by Council: Date –
Certified Yassed by Counc.il Secretary BY
B�
Approv�d�y Mayor for Submi�'��ion to Council
�Anoroved bv 1�lavor: Date -- — , � ���-'— ----
� � ��9^lo��
Members:
James Scheibei, Chair
Committee-of-the-whole
REC�IVED
D3t : March 13, 1989
MAR 131989
C m ittee Report cirY c����,
To: St. Paul City Council
From: City Councii Legisl ti n Committee
1. Approval of minutes of February 27, 1989 meeting.
COMMITTEE RECOMMENDED APPROVAL
2. Refugee Assistance Funding
COMMITTEE RECOMI�iENDED APPROVA3.
3. Ramsey County Charter Commissio
COMMITTEE LAID THIS OVER UNTIL OM IMOND COULD BE PRESENT
4. Substantial rehabilitation
COMMITTEE RECOMMENDED LAYOVER
5. Licensing of Appriasers
COMMITTEE RECOMMENDED APPROVAL
6. Fire Insurance
COMMITTEE RECOMMENDED LAYOVER
7. Food First Coalition Legislatio A nda
COMMITTEE RECOMMENDED APPROVAL
8.. Community Residential Facilites (S. . 235/H.F. 222)
(Note: this item was not on co ittee agenda)
COMMITTEE RECOMMENDED A LETTER E NT TO SENATOR MARILYN LANTRY AND
REP. SANDY PAPPAS REQUESTING TH ET WITH THE CITY COUNCIL AND REPRESENTATIVES
9. �'�""L� (This item not enda)
�IT�`E� RECOMl�iENDLD' APPROVAL '