02-1078Aeare.�rr...,,.'! - Are��.v.�.•�
��\ i• �o a�
Council File # � � � 1.0 �Y
Green Sheet # ����`
RESOLUTION
OF SAINT PA�IL, M
Presented By
Referred To
1
2
3
4
5
6
Date
RESOLVED, that the Council of the City of Saint Paul hereby authorizes the appropriate City
ofFicials to enter into the attached Settlement Agreement and Release and hereby approves the
payment of $6, 251.74 to Plaintiff, Mr. Rostamkhani, in full and complete settlement of all
claims in or related to the property located at 790 Selby Avenue in St. Paul, said payment to be
made out of the Tort Liability Fund 09070-0511, upon execution of the Settlement Agreement
and Release.
��
Date �tr!�. .����00'3..�
e a . �o�1.fl
A�.��.d,� v��;��
��� So(o�
SETTLEMENT AGREEMENT AND RELEASE
WIIEREAS, in October of 2000, Manoucher Rostamkhani ("Mr. Rostamkliani") purchased the
properiy located at 790 Selby Avenue in the City of St. Paul and le�ally described as Lot 3,
Block 8, Nininger & Donnelly's Addition to Holcombe's Addition to St. Paul (P.I.N.
02.28.23.12.0134 )("the Propert�') at a taY-forfeited land auction conducted by Ramsey County
("Count�'); and
WIIEREAS, on May 9, 2001, the City of Saint Paul ("City") issued an Order to Abate Nuisance
("OTA") to Mr. Rostamkhani, which required Mr. Rostamkhani to conect the nuisance
conditions at the Property; and
WHEREAS, on August 15, 2001, the City adopted a Repair or Remove Resolution for the
Properry based upon Mr. Rostainkliani's failure to abate the nuisance at the Property; and
WHEREAS, the City commenced demolition of the Property based upon the August 15, 2001
Resolution;
WHEREAS, Mr. Rostainkhani claims to have suffered damages as a result of the actions of the
City and the County; and
WHEREAS, Mr. Rostaznkhani commenced an action against the City and the County in the
district court for Ramsey County, Minnesota, seeking money damages and injunctive relief from
the City and the County as a result of the acrions of the City and County; and
WHEREAS, Mr. Rostamkhani, the City and the County desire to settle and resolve all
outstanding disputes and claims between them and avoid the costs and uncertainty of future
litigation;
NOW THEREFORE, in consideration of the mutual covenants and agreements set forth
herein, the receipt and sufficiency of which are mutually acknowledged, the parties agree as
follows:
COUNTY'S OBLIGATIONS
1. The County shall pay Mr. Rostamkhani the sum of $39, 748.26, an amount that reflects
the total payments made by Mr. RostanIlchani to the County minus the assurance fee that the
County paid to the State of Minnesota at the time of the auction in settlement of his claims.
2. Based upon the above-mentioned payment by the County to Mr. Rostauikhani, the
County shall rescind the contract for the purchase of the Property, identified as document number
3372984, recarded on February 7, 2001,
3. The County shall conduct a special auction for the sale of the Properiy within 90 days of
the date of the executed settlement agreement.
o s.- �o�.£t
4. The County shall pay any recording fees or other closing costs associated with the
rescission of the land sale contract between Mr. Rostauikhani and the County.
5. The County agrees to inform any potential purchaser of the Property that the Property is a
nuisance properiy and therefore any subsequent property owner is subject to the requirements of
the City's nuisance abatement code. Such requirements include posting a$2000.00 performance
bond, seeking a code compliance inspection and obtanung all necessary pernrits before initiating
rehabilitation work on the Property.
CITY'S OBLIGATIONS
6. The City shall pay Mr. Rosta.mkhani the sum of $6, 251.74 in settlement of his claim.
7. The City agrees to waive all potential assessments that aze associated with the
commencement of the demolition in 2001. Such assessments include sewer and water
disconnections, asbestos abatement, and demolition preparations. This provision does not
preclude the City's ability to assess the property in the future far fuhxre nuisance abatement
activities.
8. The City agrees to refund to Mr. Rostaznkhani his $2000.00 performance bond without
interest.
9. The City agrees to withhold enforcement of its repair or remove resolution to allow the
County to se11 the properiy at a special auction.
In consideration of the above-mentioned agreement, the receipt and sufficiency of which
are mutually aclrnowledged, Mr. Rostamkhani hereby relinquishes all rights and claim of rights
to the Property, specifically his rights under the contract for deed recorded as Document number
3372984, recorded on February 7, 2001, and Mr. Rostauikhani, the City and the County, hereby
release each other as well as their respective employees, officials, agents, representatives,
successors, and assigns from any and all claims, damages, demands, actions, causes of action or
suits at law or in equity of whatsoever kind or nature, past, present or future, whether lrnown or
unknown, including but not lunited to petitions for writs of certiorari, relating to the real and
personal property located at the Property. Mr. Rostaiiikhani further agrees, and hereby
authorizes and directs his counsel, to dismiss the action aga3nst the City and the County with
prejudice and without costs to any party.
The signatories to this Agreement, including the mutual release provisions contained
herein, represent that they have secured the necessary authorization and approvals from their
respective clients, and that they haue been authorized to bind said clients to the terms and
conditions of this Agreement and mutual release.
DATED:
2
o�,-�o�rr
STATE OF M[NNESOTA )
}
COiJNTY OF RAMSEY )
Manoucher Rostawkhani
The foregoing instrument was acknowledged before me this day of
2002 by Manoucher Rostunkhani, a single individual.
Notary Public
NOTARY SEAL
DATED:
DATED:
This instniment was drafted by
The St. Paul City Attorney's Office
400 City Hall and Courthouse
15 West Kellogg Boulevard
St. Paul, MN 55102
Timothy Cook, Esq. No. 157983
Moore, Costello & Hart, PLLP
701 Fourth Avenue South, Suite 1350
Minneapolis, MN 55415
Attorney for Manoucher Rostainkliani
CITY OF SAINT PAUL
:
Meghan Riley
Assistant City Attorney
COI3NTY OF RAMSEY
�
3
Jean Stepan
Assistant Ramsey County Attomey
City Attorney's Office
Meghan L_ Riley 68710
Dtoverover 13, 2002
����
11-1-02
�
TOTAL # OF SIGNATURE PAGES
GREEN SHEET
✓
mo.-1o�,�-
No1�4��� �
U o[.�ue�rton�rart � a�rca.ri _
❑ CT'AiIDpEY � tJIYGiRR
❑ w�c��xxc�ame ❑ w�xw�a�,�mo
� rAroRla�waanraxp ❑ �
(CLIP AlL LOCATIONS FOR SIGNATURE�
Approval of settling lawsuit of Manoucher Rostamkhani against City of Saint Paul
for $6,251.74.
PLANNING COMMISSION
CIB COMMIITEE
CIVIL SERVICE COMMISSION
RSOW1lSERVICE CONTRACiS MYS7ANSWERiHE FOLLpWING QUESiIONS:
Has thic PeB�rtn ever xorked Urid� e conOrac[ forthis dePar[meM?
YES NO
Has thie person/firm e�er been a city dnpbyee?
YES NO
Doe6 ihis persoNfilm posaess a sidll nat nomialtypo8aeb6e0 by eny cuneM city employee?
YES NO
Is ths perBOrUfirm a tarpetetl ventloYt
YES NO
Resolution of litigation; relaoilitation of �roperty by 3rd party.
APPROVED
None.
The lawsuit will proceed and the City risks a worse result.
6,251.74
souece '�Ort liability fund 09070-0511
COST/REIIENUE BUD6ETED (CIRCLE ON� YES
a,rr,a�m ra
NO
���PCh G�R��[
��� � � 2��
o�._�0'1$'
SE`PTLEMENT AGREEMENT AND RELEASE
WHEREAS, in October of 2000, Manoucher Rostamkhani ("Mr. Rostamkhani') purchased the
property located at 790 Selby Avenue in the City of St. Paul and identified as P.I.N.
02.28.23.12.0134 ("the Property") at a tas-forfeited land auction conducted by Ramsey County
("County"); and �
WI3EREAS, on May 9, 2001, the City of Saint Paul ("City") issued an Order to Abat , ui
("OTA") to Mr. Rostamkhani, which required Mr. Rostamkhani to correct the nu� ance
conditions at the Property; and �
/
WHEREAS, on August 15, 2001, the City adopted a Repair or Remove Re lution for the
Property based upon Mr. Rostamkhani's failure to abate the nuisance at e Property; and
WHEREAS, the City commenced demolition of the Property based�pon the August 15, 2001
Resolution; ,/�
WHEREAS, Mr. Rostamkl�ani claims to have suffered dama�es as a result of the actions of the
City and the County; and �
WHEREAS, Mr. Rostamkhani commenced an action ainst the City and the County in the
district court for Ramsey County, Minnesota, seekin rmoney damages and injunctive relief from
the City and the County as a result of the actions o he City and County; and
WHEREAS, Mr. Rostainkhani, the City and t County desire to settie and resolve all
outstanding disputes and claims between the and avoid the costs and uncertainty of future
litigation;
NOW THEREFORE, in consi ration of the mutual covenants and agreements set forth
herein, the receipt and sufflciency of hich are mutually acknowledged, the parties agree as
follows:
OUNTY'S OBLIGATIONS
1. The County shall pay . Rostamkhani the sum of $39, 748.26, an amount that reflects
the total payments made by . Rostamkhani to the County minus the assurance fee that the
County paid to the State Minnesota at the time of the auction in setdement of his claims.
2. The County
the date of the exec
3. The
I conduct a special auction for the sale of the Property within 90 days of
settlement agreement.
shall pay any recording fees or other closing costs associated with the
rescission of�l'ie land sale contract between Mr. Rostamkhani and the County.
oa-to��
4. fihe County agrees to inform any potential purchaser of the Property that the Property is a
nuisance property and therefore any subsequent property owner is subject to the requirements of
the City's nuisance abatement code. Such requizements include posting a$2000.00 performance
bond, seeking a code compliance inspection and obtaining all necessary permits before initiating
rehabilitation work on the Property.
CTI'Y'S OBLIGATIONS
5. The City shall pay Mr. Rostamkhani the sum of $6, 251.74 in setdement of his
6. The City agrees to waive all potential assessments that are associated
commencement of the demolition in 2001. Such assessments include sewer
disconnections, asbestos abatement, and demolition preparations. This prov ion does not
preclude the City's ability to assess the property in the future for future n' ance abatement
activities.
7. The City agrees to refund to Mr. Rostamkhani his $2000.0 performance bond without
interest.
8. The City agrees to withhold enforcement of its
County to sell the property at a special auction.
remove resolution to allow the
In consideration of the above-mentioned
relinquishes all rights and claim of rights to the :
Mr. Rostamkhani hereby
and releases the City and the County,
their employees, officials, agents, representati s, successors, and assigns from any and all
claims, damages, demands, actions, causes action or suits at law or in equity of whatsoever
kind ar nature, past, present or future, inc ding but not limited to petitions for writs of certiorari,
relating to the real and personal propert located at the Property. Mr. Rostamkhani further
agrees, and hereby authorizes and dir ts his counsel, to dismiss the action against the City and
the County with prejudice and with t costs to any party.
DATED:
Manoucher Rostamkhani
Timothy Cook, Esq. No, 157983
Moore, Costello & Hart, PLLP
701 Fourth Avenue South, Suite 1350
Minneapolis, MN 55415
Attorney for Manoucher Rostunkliani
03�-�o�t8'
DATED: CTI'Y OF SATNT PAUL
�
DATED:
Meghan Riley
Assistant City Attomey
Page 1 of 1
NancyAnderson - Item #17 on 11/20 agenda O'�- 1C1'1Y
From: Meghan Riley
To: Anderson, Nancy
Date: 11(18/2002 1:47 PM
Subject: Item #17 on il/20 agenda
Nancy,
Attached is the amended version of the Settlement and Release Agreement that was attached to the resolution
for the above-mentioned agenda item. The changes make the document a"recordable document" so that it can
be filed with the Ramsey County recorder's office. This will speed up the process for the County conducting a
new auction on the sale of the property. Tfiis version should be substituted in the Council packet for the version
that was originally attached.
Thank you,
Meghan
file://C:\WINDOWS\TEMP\GW}00018.HTM 11/19/2002
Page 1 of 1
O � - \pRil
Nancy Anderson - Agenda Item #17
From:
To:
Date:
Subject:
CC:
Meghan Riley
Benanav, Jay; Blakey, Jerry; Bostrom, Dan; Coleman, Chris; Harris, Pat; Lantry, Kathy; Reiter,
)im
11/19/2002 3:42 PM
Agenda Item #17
Anderson, Nancy; Cervantes, Manuel
Council Members:
Attached is an explanation for agenda item # 17--a resolution authorizing the settlement and release in the
Rostamkhani v. City of St. Paul litigation. Hopefully, the memorandum provides sufficient explanation but I
would be happy to answer any questions that you may have. I have also attached the resolution and the
Settlement Agreement itself, both of which are in the Council packet.
Meghan Riley
Assistant City Attorney
file://C:\WINDO WS\TEMP\GW } 00018.HTM 11/20/2002
p� t
SA[NS
PAUL
�
AAA/l
Interdepartmental Memorandum
CITY OF SAINT PAUL
DATE: November 19, 2002
TO: Council President Dan Bostrom
Council Member Jay Benanav
Council Member Jerry Blakey
Councii Member Chris Coleman
Council Member Pat Harris
Council Member Kathy Lantry
Council Member Jim Reiter
FROM: Meghan Riley
Assistant City Attorney
RE: Agenda Item #17 Settlement Agreement for Manoucher Rostamkhani v.
City of St. Paul
The attached Resolution and Settlement Agreement appears on the November 20, 2002 City
Council Agenda as Item #17. The City Attorney's Office is recommending that the City Council
adopt this resolution that allows City Officials to enter into the Settlement and Release
Agreement between Mr. Rostainkhani, the City and the County.
In May of 2001, city inspectors issued an Order to Abate Nuisance Building ("OTA") to Mr.
Rostamkhani as the owner of 790 Selby Avenue. Mr. Rostamkhani was required to perforxn the
necessary repairs prior to 7une 8, 2001 or risk demolition proceedings by the City. After Mr.
Rostauikhani missed the deadline, the City iniriated demolirion proceedings and held a
legislative hearing on July 17, 2001. The legislarive hearing officer granted Mr. Rostamkhani
180 days to make the necessary repairs on the condirion that he post a performance bond and
obtain a code compliance inspection by the City Council hearing on July 25, 2001. Although
Mr. Rostamkhani posted a perfotxnance bond, he failed to obtain a code compliance inspection.
Mr. Rostamkhani challenged the requirement of a single-family inspecrion because he claims
AA-ADA-EEO Employer
Nancy Anderson - settlement memo for november 20.wpd Page 2 �
0�,.�0'1
that he was sold 790 Selby as four-plex at the County's tas forfeiture auction. The Council did
lay over considerarion of the resolution to allow Mr. Rostamkhani additional time to obtain a
code compliance inspection but on August 15, 2001, passed a 15-day repair or remove
resolution.
Pursuant to the resolution, code enforcement staff let a contract for demolirion and the contractor
began the demolition process by remove the siding on the property as part oF asbestos abatement.
After the siding was removed, but before the building was demolished, Mr. Rostamkhani
applied for and obtained a writ of certiorari from the Minnesota Court of Appeals. Based upon
the writ, the City Council granted a stay of the demolifion on October 24, 2001.
On May 29, 2002, the Minnesota Court of Appeals remanded the Council's decision staring that
because Mr. Rostamkhani sent a letter stating his intent to rehabilitate the property to his council
member and that council member failed to disclose the letter on the record, the City Council's
decision was arbitrary. The Court of Appeals instructed the City Council to reconsider its
decision in light of the entire record, which included the letter sent by Mr. Rostamkhani.
On September 25, 2002, the City Council reconsidered its decision to demolish 790 Selby
Avenue. The Council voted to give Mr. Rostamkhani additional time to complete work on the
property but provided Mr. Rostamkhani with several conditions, including obtaining a zoning
variance, a code compliance inspection and paying vacant building fees.
The day before the Council hearing, Mr. Rostauikhani's attomey served a lawsuit upon the City
and the County, alleging various claims, including unlawful taldng. The lawsuit seeks damages
in excess of $50,000 from both the Ciry and the Counry. Further, it seeks to prevent the Ciry
from taking action against the property during the course of the lawsuit.
The division of code enforcement considered the fact that the building has remained vacant for
quite some time and it seemed unlikely that rehabilitation would occur in a timely manner if the
properry remained under the ownership of Mr. Rostamkhani. The City Attorney's Office and
code enforcement also considered the fact that Mr. Rostauikhani is seeldng damages in excess of
$50,000. While it is unlikely that the lawsuit would result in a lazge damage award, there is a
real possibility that the City would haue to pay some award of damages based upon the unlawful
taking claim—given that the siding was removed from the building. The City Attorney's Office
also considered the time and expense of litigation. After weighing the various factors, the City
entered into negotiations with Mr. Rostamkhani and the County and formulated the attached
Settlement and Release Agreement.
The Agreement accomplishes the following:
The Counry will take back the properry from Mr. Rostamkhani and hold a special
auction in January to sell the property to a new owner who would then be required to
make the necessary repairs;
While the City agrees to pay Mr. Rostaiukliani the sum of $6251.74, Mr. Rostamkhani
agrees to release the City from any and all claims for damages and attorneys' fees. This
includes challenging the September 25, 2002 decision to give Mr. Rostamkhani
additional time;
AA-ADA-EEO Employer
- - - __ _
� Nancy Anderson - settlement memo for november 20.wpd Page 3;
OZ , ��'1 i
Although the City is refunding the $2000.00 performance bond to Mr. Rostamkhani, the
new property owner will be required to post such a bond before rehabilitating the
property;
The City agrees to waive the special assessments related to the demolition work on the
property in exchange for the Counry agreeing to conduct a speciat auction.
Technically, the City Attomey's Office has authority to settle a case for up to $7500.00 without
Council authorization. However, even though the City is not paying more than $7500.00 out of
pocket, the overall value of the Settlement Agreement is greater than $7500.00. Therefore, the
City Attorney's Office seeks Council approval.
The value of the potential assessments on the property is approximately $6500.00. According to
County representatives, the County's costs for conducting a special auction for the sale of the
property will be appro�mately $5000-$6000.00. Waiving any potential assessments creates a
greater likelihood that the property will sell to a responsible bidder who will in turn rehabilitate
the property in a timely manner.
AA-ADA-EEO Employer