00-937Council FIle #� o— 43 7
OR�GINAL
RESOLUTION
CITY OF SAINT Ps#UL, M
Green Sheet # � (p �
G]
<
Presented By
Refened To
Committee: Date
WHEREAS, on December 2, 1998, the City of Saint Paul made an unsecured Star loan to the
Frogtown Action Alliance ("FAA"), a non-profit corporation, in the amount of $100,000 for the
purpose of the establislunent of FAA Revolving Loan Program.
WF3EREA5, the terms of that loan required the FAA to make monthly payments of $1,151.73 to the
city commencing January 1, 2000, which it has failed to do and thereby is in default.
WFIEREAS, the city's Planning and Economic Development Department has been unable to verify
that those funds have been used to establish the FAA Revolving Loan Pro�am.
WHEREAS, on January 19,1999, the City of Saint Paul made a secured Star loan to the FAA in the
amount of $99,000 forthe purpose of renovation of anFAA ownedbuilding at 689 Dale Street, Saint
Paul.
WI IEREAS, the terms of that loan required the FAA to make monthly payments of $1,301.00 to the
city commencing Mazch 1, 1999, which it has failed to do and thereby is in default.
WHEREAS, on June 22, 1999, the City of Saint Paul made a Great Northern Corridor Fund
("GNCF") grant to the FAA in the amount of $275,000 for the purpose of serving as the
administrator of low interest loans as "seed money" to stimulate business and job creation in the
Frogtown area.
WHEREAS, questions have azisen concerning whether FAA used pofions of the GNCF funds for its
own purposes or gave portions of funds to for-profit enterprises in whichFAA itselfhad a substantial
ownerskup stake, thereby creating a potential conflict of interest.
WHEREAS, on or about September 27, 2000, the FAA boazd discussed action involving liquidation
of its assets.
NOW, THEREFORE, BE IT RESOLVED, that the City Attorney is requested and authorized to
conduct a full and complete investigation into the facts and circumstances involving each of the
above-listed expenditure of public funds, including in his discretion the making of an application for
an order from the district court far subpoenas as permitted under the Saint Paul City Charter § 4.08.
BE IT FURTHER RESOLVED, that upon the conclusion of his investigation or sooner as may be 00-q 3�
required, the City Attorney is authorized to institute litigation on behalf of the city against those
businesses or persons who may be liable to the city for any unlawful expenditure of those public
funds.
Requested by Department of:
By:
Form Approved by City Attorney
Aaoptea by council: Date (� � � e ��
t
Adoption Certified by Council Secretary Approved by Mayor £oz Submission to Council
BY: � � 1 �..�....n.C`—_ $Y=
Appsoved by Mayos: D�'te�
sy:
L
oo�`i3�,
DEPAflTMENT/OFFICE/CqUNCIL DATE INITIATED N o 2 6 8 6 4
ci� ovrrca, GREEN SHEE
CANTACT PERSpN S PHONE INITIALIDATE INITIAVDATE
� DEPARIMENT OIRECTOR O C1TY COUNCIL
p551GN � CRY ATTORNEY a CRY CLERK
MU NUYBER FOR ❑��� OIAECrOR � FM.B M6T. SERVICE$ �IR.
ROUTNG
OftUEfl � M0.Y�R (Oft ASSISTANTj O
TOTAL # OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTION REQUESTED: .
REfAMMENDAT�ONS: Approve (A) or Reject (R) pERSONAL SERVICE CONTRACiS MUST ANSWER THE FOLLOWING QUESTIONS:
_ PLqNNING COMMISSION _ CIVf� SERVICE WMMISSI�N �� Ha5 this pefsOn/Firm eVer Worked under e Cqntr2Ct for this department?
_CIBGOMMrttEE YES NO
_ S7APF 2- Has this personffrm ever been a ciry employee?
— YES NO
_ DiSSRfC7CWRT _ 3. Does [his personlFirm possess a skiil noi normally possesse0 by any current city employee?
SUPPOflTSWHICNCWNCfLOBJECi1VE? YES NO
Explain aq yes a�swers on separete sheet antl attach to green sheet
INITIATING PROBLEM, ISSUE, OPPORTUNITY (Who. What, When, Where, Why�:
Resolution requesting and author'�zing the City Attorney to conduct a full and complete investigation into the facts and
circumstances involving each of the listed expenditure of public funds, including in his discretion the making of an
application for an order from the dish court for subpoenas as permitted under the Saint Paul City Charter 4.08; and upon
the conclusion of his invesfigation or sooner as may be required, the City Attorney is authorized to institute litigation on
behalf of the City against those businesses or persons who may be liable to the City for any unlawful expenditure of those
public funds.
ADVANTAGESIFAPPROVED:
DISADVANTAGES IFAPPROVED:
DISADVANTAGES IF NOTAPPROVED:
70TAL AMOUNT OF TRANSAC710N $ COST/HEVENUE BUDGETED (CIACLE ONE) YES NO
FUNDII3G SOURCE ACTiVITY NUMBER
FINANCIAL INFORMATION (EXPLAIN) �
Council FIle #� o— 43 7
OR�GINAL
RESOLUTION
CITY OF SAINT Ps#UL, M
Green Sheet # � (p �
G]
<
Presented By
Refened To
Committee: Date
WHEREAS, on December 2, 1998, the City of Saint Paul made an unsecured Star loan to the
Frogtown Action Alliance ("FAA"), a non-profit corporation, in the amount of $100,000 for the
purpose of the establislunent of FAA Revolving Loan Program.
WF3EREA5, the terms of that loan required the FAA to make monthly payments of $1,151.73 to the
city commencing January 1, 2000, which it has failed to do and thereby is in default.
WFIEREAS, the city's Planning and Economic Development Department has been unable to verify
that those funds have been used to establish the FAA Revolving Loan Pro�am.
WHEREAS, on January 19,1999, the City of Saint Paul made a secured Star loan to the FAA in the
amount of $99,000 forthe purpose of renovation of anFAA ownedbuilding at 689 Dale Street, Saint
Paul.
WI IEREAS, the terms of that loan required the FAA to make monthly payments of $1,301.00 to the
city commencing Mazch 1, 1999, which it has failed to do and thereby is in default.
WHEREAS, on June 22, 1999, the City of Saint Paul made a Great Northern Corridor Fund
("GNCF") grant to the FAA in the amount of $275,000 for the purpose of serving as the
administrator of low interest loans as "seed money" to stimulate business and job creation in the
Frogtown area.
WHEREAS, questions have azisen concerning whether FAA used pofions of the GNCF funds for its
own purposes or gave portions of funds to for-profit enterprises in whichFAA itselfhad a substantial
ownerskup stake, thereby creating a potential conflict of interest.
WHEREAS, on or about September 27, 2000, the FAA boazd discussed action involving liquidation
of its assets.
NOW, THEREFORE, BE IT RESOLVED, that the City Attorney is requested and authorized to
conduct a full and complete investigation into the facts and circumstances involving each of the
above-listed expenditure of public funds, including in his discretion the making of an application for
an order from the district court far subpoenas as permitted under the Saint Paul City Charter § 4.08.
BE IT FURTHER RESOLVED, that upon the conclusion of his investigation or sooner as may be 00-q 3�
required, the City Attorney is authorized to institute litigation on behalf of the city against those
businesses or persons who may be liable to the city for any unlawful expenditure of those public
funds.
Requested by Department of:
By:
Form Approved by City Attorney
Aaoptea by council: Date (� � � e ��
t
Adoption Certified by Council Secretary Approved by Mayor £oz Submission to Council
BY: � � 1 �..�....n.C`—_ $Y=
Appsoved by Mayos: D�'te�
sy:
L
oo�`i3�,
DEPAflTMENT/OFFICE/CqUNCIL DATE INITIATED N o 2 6 8 6 4
ci� ovrrca, GREEN SHEE
CANTACT PERSpN S PHONE INITIALIDATE INITIAVDATE
� DEPARIMENT OIRECTOR O C1TY COUNCIL
p551GN � CRY ATTORNEY a CRY CLERK
MU NUYBER FOR ❑��� OIAECrOR � FM.B M6T. SERVICE$ �IR.
ROUTNG
OftUEfl � M0.Y�R (Oft ASSISTANTj O
TOTAL # OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTION REQUESTED: .
REfAMMENDAT�ONS: Approve (A) or Reject (R) pERSONAL SERVICE CONTRACiS MUST ANSWER THE FOLLOWING QUESTIONS:
_ PLqNNING COMMISSION _ CIVf� SERVICE WMMISSI�N �� Ha5 this pefsOn/Firm eVer Worked under e Cqntr2Ct for this department?
_CIBGOMMrttEE YES NO
_ S7APF 2- Has this personffrm ever been a ciry employee?
— YES NO
_ DiSSRfC7CWRT _ 3. Does [his personlFirm possess a skiil noi normally possesse0 by any current city employee?
SUPPOflTSWHICNCWNCfLOBJECi1VE? YES NO
Explain aq yes a�swers on separete sheet antl attach to green sheet
INITIATING PROBLEM, ISSUE, OPPORTUNITY (Who. What, When, Where, Why�:
Resolution requesting and author'�zing the City Attorney to conduct a full and complete investigation into the facts and
circumstances involving each of the listed expenditure of public funds, including in his discretion the making of an
application for an order from the dish court for subpoenas as permitted under the Saint Paul City Charter 4.08; and upon
the conclusion of his invesfigation or sooner as may be required, the City Attorney is authorized to institute litigation on
behalf of the City against those businesses or persons who may be liable to the City for any unlawful expenditure of those
public funds.
ADVANTAGESIFAPPROVED:
DISADVANTAGES IFAPPROVED:
DISADVANTAGES IF NOTAPPROVED:
70TAL AMOUNT OF TRANSAC710N $ COST/HEVENUE BUDGETED (CIACLE ONE) YES NO
FUNDII3G SOURCE ACTiVITY NUMBER
FINANCIAL INFORMATION (EXPLAIN) �
Council FIle #� o— 43 7
OR�GINAL
RESOLUTION
CITY OF SAINT Ps#UL, M
Green Sheet # � (p �
G]
<
Presented By
Refened To
Committee: Date
WHEREAS, on December 2, 1998, the City of Saint Paul made an unsecured Star loan to the
Frogtown Action Alliance ("FAA"), a non-profit corporation, in the amount of $100,000 for the
purpose of the establislunent of FAA Revolving Loan Program.
WF3EREA5, the terms of that loan required the FAA to make monthly payments of $1,151.73 to the
city commencing January 1, 2000, which it has failed to do and thereby is in default.
WFIEREAS, the city's Planning and Economic Development Department has been unable to verify
that those funds have been used to establish the FAA Revolving Loan Pro�am.
WHEREAS, on January 19,1999, the City of Saint Paul made a secured Star loan to the FAA in the
amount of $99,000 forthe purpose of renovation of anFAA ownedbuilding at 689 Dale Street, Saint
Paul.
WI IEREAS, the terms of that loan required the FAA to make monthly payments of $1,301.00 to the
city commencing Mazch 1, 1999, which it has failed to do and thereby is in default.
WHEREAS, on June 22, 1999, the City of Saint Paul made a Great Northern Corridor Fund
("GNCF") grant to the FAA in the amount of $275,000 for the purpose of serving as the
administrator of low interest loans as "seed money" to stimulate business and job creation in the
Frogtown area.
WHEREAS, questions have azisen concerning whether FAA used pofions of the GNCF funds for its
own purposes or gave portions of funds to for-profit enterprises in whichFAA itselfhad a substantial
ownerskup stake, thereby creating a potential conflict of interest.
WHEREAS, on or about September 27, 2000, the FAA boazd discussed action involving liquidation
of its assets.
NOW, THEREFORE, BE IT RESOLVED, that the City Attorney is requested and authorized to
conduct a full and complete investigation into the facts and circumstances involving each of the
above-listed expenditure of public funds, including in his discretion the making of an application for
an order from the district court far subpoenas as permitted under the Saint Paul City Charter § 4.08.
BE IT FURTHER RESOLVED, that upon the conclusion of his investigation or sooner as may be 00-q 3�
required, the City Attorney is authorized to institute litigation on behalf of the city against those
businesses or persons who may be liable to the city for any unlawful expenditure of those public
funds.
Requested by Department of:
By:
Form Approved by City Attorney
Aaoptea by council: Date (� � � e ��
t
Adoption Certified by Council Secretary Approved by Mayor £oz Submission to Council
BY: � � 1 �..�....n.C`—_ $Y=
Appsoved by Mayos: D�'te�
sy:
L
oo�`i3�,
DEPAflTMENT/OFFICE/CqUNCIL DATE INITIATED N o 2 6 8 6 4
ci� ovrrca, GREEN SHEE
CANTACT PERSpN S PHONE INITIALIDATE INITIAVDATE
� DEPARIMENT OIRECTOR O C1TY COUNCIL
p551GN � CRY ATTORNEY a CRY CLERK
MU NUYBER FOR ❑��� OIAECrOR � FM.B M6T. SERVICE$ �IR.
ROUTNG
OftUEfl � M0.Y�R (Oft ASSISTANTj O
TOTAL # OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTION REQUESTED: .
REfAMMENDAT�ONS: Approve (A) or Reject (R) pERSONAL SERVICE CONTRACiS MUST ANSWER THE FOLLOWING QUESTIONS:
_ PLqNNING COMMISSION _ CIVf� SERVICE WMMISSI�N �� Ha5 this pefsOn/Firm eVer Worked under e Cqntr2Ct for this department?
_CIBGOMMrttEE YES NO
_ S7APF 2- Has this personffrm ever been a ciry employee?
— YES NO
_ DiSSRfC7CWRT _ 3. Does [his personlFirm possess a skiil noi normally possesse0 by any current city employee?
SUPPOflTSWHICNCWNCfLOBJECi1VE? YES NO
Explain aq yes a�swers on separete sheet antl attach to green sheet
INITIATING PROBLEM, ISSUE, OPPORTUNITY (Who. What, When, Where, Why�:
Resolution requesting and author'�zing the City Attorney to conduct a full and complete investigation into the facts and
circumstances involving each of the listed expenditure of public funds, including in his discretion the making of an
application for an order from the dish court for subpoenas as permitted under the Saint Paul City Charter 4.08; and upon
the conclusion of his invesfigation or sooner as may be required, the City Attorney is authorized to institute litigation on
behalf of the City against those businesses or persons who may be liable to the City for any unlawful expenditure of those
public funds.
ADVANTAGESIFAPPROVED:
DISADVANTAGES IFAPPROVED:
DISADVANTAGES IF NOTAPPROVED:
70TAL AMOUNT OF TRANSAC710N $ COST/HEVENUE BUDGETED (CIACLE ONE) YES NO
FUNDII3G SOURCE ACTiVITY NUMBER
FINANCIAL INFORMATION (EXPLAIN) �