The URL can be used to link to this page

276793�WMITE :-.� - CITY CLERK �CAY�j#'RY� -�� DE ARTMENT COU[ICII BLU E - MAYOR G I T Y O F S A I N T PA LT L File N O. �r�� RETURN COPY TO VAT�TION BUREA_� n •l R ol tion Presented By � Referred To Committee: Date Out of Committee By Date RESOLVID, Tha.t upon the petition of the City of Saint Paul, the public property hereina.fter described, be and the same hereby is vacated and dis- continued as public property: All of Lots 1, 2 and 3, Block 9, Holcombe's Addition to Saint Paul: subject expressly to the following conditions and reservations: 1.. Tha.t the vacation be subject to a11 the terms and conditions of Cha.pter 228 of the St. Paul Legislative Code, as amended. 2. That no compensation or posting of a bond be required, insof�r as the petitioner is the City of Saint Paul. 3. That arLy conveyance of said property by the Housing and Redevelop- ment Authority be in accordance with Minnesota Statutes No. �+62. 4. That the Housing and Redevelopment Authority of the City of Saint l�a.ul, their assigns or successars by acceptance of the terms and conditions of this vacation agrees to indemnify, defend and save ha.rmless the City of Saint I�ul, its officers and employees from all suits, actions, or cla.ims of any character� including� but not limited to, a claim brought because of ar�y in�uries, or damages received or sustained by any person, persons or property, on account of this vacation; or because of at�y act or omission, neglect or misconduct of said Petitioner; or because of any claim or lia- bility arising f`rom or based on an4Y violation of any law or regulation �,de in accordance with the la.w, whether by the petitioner or ar.�y of its agents or employees. COUNCILMEN Requestgd by Department of: Yeas Nays Hunt Fi ce a ement Services ��e - In Favor • — AAaddox McMaho� D 1Z'@ C'tOY' �,�i�r - -- Against BY Tedesco wlson Form Approved by City Attorney Adopted by Council: Date _ Certified Vassed by Council Secretary �Y�� ^'� � �� B� , Approved by Mayor: Date A r v d by Mayor fo ssion to Council By _ — 1 WHITE � CITY CLERK �C�n�'j PINK - FINANCE f i �7�� CA`NARY - DEPARTMENT G I TY O F SA I NT �A ZT L COUIICII �� v ai� . BLUE - MAYOR File N O. r RETURN COPY TO VALUATION BURF�U Council Resolution Presented By Referred To Committee: Date Out of Committee By Date -2- 5• That upon acceptance and compliance with the terms of this vacation, the proper City Officials be authorized and directed. to convey the sub�ect praperty to the Housing and Redevelopment Authority for disposition. The net proceeds of anpr disposition by the Hausing and Redevelopment Authority to be returned to the City. BE IT FURTI�R RESOLVED, th�a.t this resolution rescinds Council Resolution C.F. 276315, adopted January 29, 1981 and approved January 30, 1981. COUIVCILMEIV Requestgd by Department of: Yeas Nays Hunt Firlance and Management Services �evine In Favor — Maddox McMahon D 1T@C'f,OT snoweiter � _ Against BY -- Tedesco Wilson MAY 5 1981 Form Approved by City Attorney Adopted by Council: Date — Certifie assed by Co il S ar B ��'�'�% �'?�� By Appro y :Nayor. � M� 7 �� App , ed by Mayor f r ssi@n to Council By By PUBLISHED MAY 16 �981 J .y ti� `�'�-�,";�t� �� - . . . .. _ �, i r°, s'�'��.n��,,yr+f . .a. � . . .. _ - • ' / . � .. :.� �':`. ' ' ��'��tf 9 �ts �'Y�S., n a Q�"``�y�,'-4Tj€a�? -i . . ' �- � . . . � ' � �. •�..P', �',� a "� � ��; �'�� a - . . . . . ..L . � . . . � . _ � � . .. . . . .. � _ V r -� -� . , _�-..� � ��,�. •> ' ( .,�$� t:, ' , �r�� `,.y"�,"� Y',. � { c.. . . � x�� ''i{ '+� ' - ' �s '�'"��,� , _ ,�, _ . .: ': �, r, :��t�" 's,`,'` ' � '; ,�'t s ., . . . . . . , �. t . . . . . . . , � . . ` � � � � � . _ z . . . � . . � . � , . . � � . . � . - � � . k,, .. �;,; � 'y� n`�� . .. . ; . . .. ; : ,. . . .. . . � � - .. � .� � .� - � � • � �k�� ,,��, t �- ' . . . . . � . , . � . .. . . .. r � � � ��',� � - . - . � . . � � � � � � . � - .t' <w � {;,.,s,�-••'�`' � . - - . . � . . - � � .. . ., - � t �s � , � t 2 +;�`5�`-i� � � . . . . � . � . � . . /' .. '. 1 > �...�. �. . . . . � . , .1 � � 1 i� fi ;r � . . � . _" . . . , _ . .. �. .� y�. � . ,r� v�y`� • . . . .. � . . � � ,� � .. I�ety 21�� I�iB� .' : .,�� , , � � _ , ; � ' `_ �; �`� � , �_ _ , � . • ` �; " � -��a , . ,�� ; . a � ' � . . - . � � 4�at � �` � �� - . . .. . . . - . �� ..'y' �1` Y � � � � � . � � , . . .. ' . - .. � }�,� � �� . . . . . . . . . _ .. ._ .. . � �k-:W'1 � 'i '�J I "�.:;4 �� _. . . . , . . . �. . ' 1� . � i, _ . . � x,r. _ � . � t� a ��, b : �b�ty 8ecorde�t s �f f ica . ,�Y<.�� , . �Roam. 1�5 - '� �: � ,-�f' Ba#2d�g . . � � � � �}�� ' . . . .' '. - . . � ' . ,�, 'k j` s . i D�gY' S�.Y: . �, ��.?r��'� • Y '-� .s ��t� ��; Att�tch� is a.a . of`C. . . � � �Y£ ap�r• F No. 276793, 'whfcfi is a 're�lvtion tbat ` , ,�� , � l�escinds �C,.F, .No 276315� and nts t1�e ��`'�� 8� Pe�ition of the Ci�y of. $t. r f�t, � � ��,�-�� - Faul !or th� vacatian of all of Lota 1, 2,- aad 3. Sli�ic''9; �Ic�� , �� . ; Addltion to 3t� Pag].. i am transmittitt� ihis for l�3Z-�,ng �n �tttz �' �; " � � ol��ice�. , � � � �`:§= , � ;, � ;., �, _ , : r �,,t K - ��s ` � Q Ll'ti� Qtlx'e, � �.. � _ � . • .. �� _ ' b��3,3'. / `J �� T i � . � . . . . . . . . v ` ' . ��• . . . ' � . � F V�e"` '�"'�'y�.`Yfiyp. , / `' t . ' . . . , . . _ . . , . ' _ � F o�� ". . . .� , � / . . . ' ' . . �L O��Y k��" . � . � �:, )� `' � �� - . cicy cZ�rk � � � �' � �� z . - � .� ��* , � � ' ' sr`. � , � `��> Attuh� , � � �� ;�� %- �; � sct� . ; � �; ��,` �, '�-�� ' ., . � � ,.- � �� . - ; . - �.' / � . �;, a�`_"c`��. , ; cct- Housing i RedavelopMat _Ant.iarity � ;� �, ` �` `�� . .,• , ; - �:,� � ` :° i t � �: . . � � ��': , ` . . . : � � ' �� ' � .��, ,. ,> � � . � . , ` ' � , r , _ �� , ' ` �, : '�` .�; a� ; S � , �z- , ! ?� r � . � . ' � � �Gr� ' � ��'�; '� �. _ , ,�, �:`�a f>,: �. ,� �: , / : , � �' ; ��; f� �ti � t � , !� . : . � �,. � . . . . , �� a --�y: � . . . � . � ' '. . � . . . - , � . - . .. , . .� � � y _�. s _ `�` . ' — ' .� . . � . . . . . , . . . 4,f lSaS: + � '+� �� R .. . . ' • . . i � . , . . ' . ' i.� ��. - , , . �� . ' � � ) s��'�, ' .. . . . . - , . � . . .. . .� � J��. , . � � . . � . . - . . 1 � t '. "� . � � . � . . �� y��{ , � . . . � / ,�'`I"�'�.$� � . , � . . . . . r C{y e g;�� / . . 'y , . � . . • . . . � . ' __ , ,� . . . a r' ;:� F4.;�k.;X�d$ . ' ` (�M Ol: I2/1975 Rev. : 9/8/75 �f V��•.� EXPLR1�tATiQM OF A�II�JISTRATIYE ORDERS, � �y �� - �� oate: A�� 7, �9s� At�2 ...1981 — � T0: MAYOR GEORGE LATIMER FR: J. William Donavan, l.u�tio A,asessmen�ngineer, Department of Fin�.nce 80 l�nagemeut Serviee� RE: McIntyre Ceater - pacation Rtsolution � , A�TION REQUESTED: _ Apprrnre re�olution for submis�ion ta City Council. , P'JRPOSE AND RAfiI0PU4LE FOR Ti�iS ACTION: This resolution revises a similar resolutioa originall�y adapted. by City Cc+uncil on Janv�ry 2g, 1981. The origi�l resolution coatained deed restrictions xhich �rere not acceptable to Mclntyre Center and which were not in keeping xith grevious ' agreemeats bet�reen Planning and Eeonomic Development aad Mclntyre Ceater. The change remove� these restrictions an�d allc�rs �lantiing an�d Econ�amic Development (Housiag and Redevelapment Authority) more f].exibil3ty in disposition af the Im�rtY• AiTACHMENTS: 1. Resolution approved by City Attorn�y - 2. Co�py o! letter from Ken $�te, Attorney for Mclntrye Ce�ater cc: Bill Dudley, Planning & Economic Development ' a'4 �I'i��e i-'s.< i'n� �,0� � �� d CITY OF SAINT PAUL INTERDEPARTMENTAL MEMORANDUM To: Walt Bo�w'ser From: Ed Warn G�v _" Date: April 17, 1981 Subject: Revised resolution on vacation of Lots 1, 2 and 3, Block 9, Holcombe's Addition ( Mclntyre Center) Atta.ched, as a result of discussions with you, and Bill Dudley of Planning and Economic Development, is a revised resolution for the subject va.cation. The original resolution was approved by City Council on J�.nuary 29, 1981. Will you plea.se approve the resolution and submit the signed resolution along with the "green sheet" to Mayor's office. Th�ank you. Atta.ch. EJW:d.tn cc; Bill Dudley Al Olson w • • � SUITE ONE HUNDRED ��,��<•J� � KENNETH E. KEATE 600 NORTH FAIRVIEW AVENUE SAINT PAUL. MINNESOTA 55104 ATTORNEY AT LAW TELEPHONE 645-6861 AREA CODE 612 March 10 , 1981 ' Mr . Edward J. Warn P.E. �� K�i/� Department of Finance and Management Services / �� 218 City Hall � � � - St . Paul , Minnesota 55102 Re : McIntyre' s Center for Giftecl Children Dear Mr . Warn : This letter was requested by you during our recent telephone conversa- tion regarding the City Council resolution passed on January 13 , 1981 regarding the McIntyre Center ; in accordance with the letter from Nir . J . William Donovan of the same date . I do not have a copy of the actual resolution. I will be referring to Mr . Donovan' s letter and the lease agreement entered into between Mr . McIntyre and the City notarized August 7 , 1978 , and a letter from Walter A. Bowser to Mr . Donovan dated September 9 , 1980 , and received by the Community Develop- ment Division on September 12 , 1980 . As you are aware , paragraph 16 of the lease reads as follows : 16 . At the expiration of this agreement , Center shall have the option to purchase and acquire the pro- perty from the City for the sum of One Dollar ($1 . 00) , and the additional consideraicion of having operated the child care center and facility for the term of this agreement . The original term of the agreement was for the period of two years . After the McIntyre Center had been operated for the term of the lease , it offered to tender the payment to the City , and requested that the City issue the deed . The original lease expired on August 15 , 1980 , and pursuant to the terms of the lease as they appear on its face , the City was obligated to tender a deed to the McIntyre Center , free and clear of any rights of the City . However , Mr . Walter A. Bowser , an Assistant City Attorney , noted in his letter to Mr . Donovan that the original lease provision was void because it was contrary to Chapter 87A of the St. Paul Legislative Code. Mr . Bowser presented two options to solve the problem. l . The City could renew the lease agreement , and ' . � : ��4`� Mr . Edward J. Warn P.E. March 10 , 1981 Page 2 2. The City could vacate the property to HRA at which time HRA could then convey the property to the Center . We have entered into negotiations pursuant to Option 2 , since the Mclntyre Center prefers to own the property. The Council resolution apparently contained two restrictions on the deed to be tendered which were not a part of the original lease ugreement : 5 . That any conveyance of said property by the Housing and Redevelopment Authority be for the purposes of child care or related services. 6 . That if the property ceases to be used for child care or related services , said property shall revert immediately to the Housing and Redevelopment Authority of the City of Saint Paul for the original price. As Mr . McIntyre mentioned during our meeting on January 7 , at the present time the Center needs to have the ability to lease out por- tions of the property . This resolution could certainly be construed to not allow those uses . Additionally , if the final deed contains these restrictions the McIntyre Center would not be able to carry on its work as was originally planned , as is outlined below. When Mr . McIntyre entered into his lea�'�e agreement with the City , he poured a substantial amount of his own. funds into the Center , and he and his wife have been drawing almost no salary out of the Center since its inception . He did this upon reliance upon the second paragraph of paragraph 20 in the original lease. That paragraph reads as follows : In the event Center should discontinue its operation of a child care center prior to the expiration of this lease , or in the event Center elects not to exercise its option to purchase the property at the expiration of this lease as provided for in paragraph 16 , City will sell the demised premises in the manner provided by City ordinances and the proceeds received from the sale will be distributed in the following order of preference : 1) Al1 expenses incurred by the City in selling the property will be reimbursed from the proceeds . 2) The City will receive the amount it expended in acquiring City property. 1, � �"�� . -; � Mr . Edward J. Warn P.E. March 10 , 1981 Page 3 3) Center will receive the balance of the proceeds, if any , to represent its investment in remodel- ing , repairing and maintaining the demised premises. The Center at this time is not on the soundest footing financially , but it is far from a desperate situation . Mr . McIntyre expects the Center to be able to grow and prosper . However , since at this time he cannot absolutely rely on paragraph 20 , he is no longer invest- � ing his own funds in the Center . It is extremely important for him ' to be able to sub-lease portions of the Center for uses other than a child care center . Additionally , the restriction requiring the land to revert to the City of Saint Paul if it is ever used for any purpose other than as a child care center severely restricts the Center ' s ability to renovate the building , use it as a child care center , develop a successful program and expand into larger quarters . The restric- tion proposed to be added to the deed does not allow the Center to sell the property and reinvest that money in larger quarters. Funds were originally obtained by the City of Saint Paul for the McIntyre Center through the Community Development Block Grant Program. At this time , I have not investigated the details of the Community Block Grant Program, and' am not familiar with it . However , it would appear to me that if the land was to go back to i the City of Saint Paul , the funds might have to be returned to �� the Federal Government . Though I am not opposed to doing research � , in this area, if I could be steered through someone in your depart- � ment familiar with the program I could determine fairly easily i �(� (� whetY:er or not this is in fact true . Of course , if the land would j � u ��/ 'have to be returned to the Federal Government , the City has very '� � little to gain by adding these restrictions to the deed . Additionally , this clause prevents the McIntyre Center from obtain- ing private long term financing since no lending institution will grant financing to improve the structure of the Center because of the reversion clause : As the clause reads , anytime a bank would grant a mortgage, the bank would lose its interest in the property upon the demise of the Center , immediately upon its ceasing to function , even if it was vacant for only one day. The restriction would require mortgage holder to finance the McIntyre Center while it found a new educational center to run the building , if it fore- closed it would destroy its own security interest . � ^' . !'��6:. �..i/.{ � . _ • � O�� • V� � Mr . Edward J. Warn P.E. March 10 , 1981 Page 4 I propose , as an alternative to the resolution that was provided by the City , that the City simply require that the McIntyre Center amend its Articles of Incorporation to provide that upon dissolution after all the debts of the corporation are paid off, the City of Saint Paul must receive a sum equal to the original principal amount and expended by it before any of the funds could be transferred to any other non-profit corporation . I believe that this is in the best interests of the City for the following reasons : A. If the McIntyre Center goes out of business , and the property reverts to the City , it will be at the expense of the corporation ' s creditors , most of whom do business in the City of Saint Paul . It would be extremely help- ful to those creditors if this property were to be able to be sold upon dissolution in order to halp satisfy many of those creditors ' claims . B. The City has not lost any money . Federal money went into the Center . If the Center fails , it will be the Federal Government that did not achieve its objectives. It is my understanding that the City spent no funds in obtaining the land for the McIntyre Center , other than funds for the support staff and the City employees who conducted the transaction . s C. The McIntyre Center is a non-profit corporation. The money to the Center does not flow into Mr . McIntyre' s pocket . If the Center is dissolved , even without the stipulation in the Articles of Incorporation , the money must go to another non-profit corporation . It cannot go to Mr . McIntyre . D. Non-profit corporations must be wound up in District Court. The City ' s interest in the Center is only to see that the Block Grant was used for the purposes intended . The original lease required that such purposes would be served if the Center were operated for two years. The District Court would protect the City' s interest. I wish to emphasize that the current resolution as adopted by the City Council is not acceptable to the McIntyre Center . The Center worked with the City in good faith in developing a lease , did the work that was required of it through the lease , and was absolutely unaware that the lease violated City Charter . It is placed in a position in which , after it has fully performed on a contract , the -,. _ - . ` , � `Y � �'��`�� Mr . Edward J. Warn P.E. , March 10 , 1981 Page S City has changed the rules . I have indicated to Mr . McIntyre that I feel that we would have a very strong case in court to compel the City to give the McIntyre Center a quit claim deed without any rights , reservations , or restrictions running in favor of the City. However , Mr . McIntyre wishes to work with the City in order that ry this matter might be concluded as quickly as possible. Therefore , so long as he is protected and receives his money out of the Center before the City receives the Federal money back , and so long as he is given the normal use accorded non-profit corporations in owning land and has an ownership interest in the property in that it can be mortgaged , he is willing to make reasonable concessions. This letter is not setting forth our final proposal . I have tried to set forth a plan which I feel will be reasonable, and does pro- tect the City from a conversion of the Federal Funds into a project other than the one for which they are intended. The McIntyre Center needs to make long term improvements on the land , needs to be able to obtain financing on the land , and needs to be able to look at the land as an asset of the non-profit corporation. The corporation is serving the citizens of the City of Saint Paul . The Center wishes to be able to have a clear enough interest in the property so that it can best serve those citizens . I have outlined one proposal in this letter . I would appreciate your comments and suggestions in order�that we might reach a speedy resolution of this matter . Sincerely yours , 'i ��>.-�=' =_-�/�.-; - - " _ . , Kenneth E. Keate KEK: f;n �<'1� � `� � � �--� ,rw: L ,ns;3�r,:,;r<�:.t �-� '� A7'a,��'r:t+,�� , c.}r� N`4v�Y%t.$�f�s`ti �.�I l�I.:�I�1�� f �1�' - ;.��3'-0�;;�. ��y��i .. - I�� ! �d�i�i@ntinued ae�Hc pc,� l ,� � � s , .,dl'elf� �8,�,1�ol�ifp`�'. �ta��.,v ka:.g aa� �. ��Y '�� 1 '11rf!6e'��eitlm be ab�t to d1 t6!` ��t•'i�i'tta-�!M of the St.Paul Le�islaEl��oAe,`7(3 smehd- ed. • E:That no e�peas�tlon or patin�of a baod be 'lnwtar'as t!�y�(_ tt�er is due Sa3nt PauL S That acy`r' -,s of saW W'oR�9 bi' t6 EEdevelopment wit6'Y;ib- 1�Io,'#�. 4. ,.� �e. o!!he�,of 8aint Pwicthelr as�t�IFer a+ooaso�s b7 acoeptance of the yqd candlttoos o�thli va�ti� ,�e inde�tr:derma ena'save ��7��'P'eul.its ot- '�tROm 811 iuRs,aa h� of aip' ehs�racbet. in- iot°limtbalf 60, a claim cb�e_ot a�r fM�, or 'ibldved'�e�ained bY anY a'D�P�Y.�aocouat o��ir�or beauae ed ai�at or a�t negle�m'mi�of said . l�1�pb��or,bac�uae M any cLim ot +�tyi uis4os,�q�"pr baaeA�wy "��t1�1��?eASF�� >��'. , �� wi��.a.+�e�er �4� � .�>a� cts „aru� or �:1=��` - ;� t� �t`accePfat�e aal eespffaoaF �'�tfii�teems od this rl�ptiap.�k pro- �t+J'°O!lkisls be � a� ��7 to tbr Soutiut`�sd: ffe�evsti�peent AutYotily tap�.''�.�t pro- . Caads O[�q►�OS{Ul�+�jr_*YFg�i sed �;'�7,-yc tie retuenedfqlLi(�y ° ::,,�.� ' SE iT!f�'1'�R' �►�:�''this ��N��e.C.F. 97A11fM�p��A�uuT14 t9��1�Y- ed damq�g.�u,:/se1. .� Adop�i�e Couac311Ia�5;�19�1: � AppTwed 3iag 7.1�1: tDiy'18.1991)_