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08-174Suspension Item Presented By Council File # 08-174 Green Sheet # 3050210 RESOLUTION CITY OF SAINT PAiJL, MINNESOTA 1 BE IT RESOLVED, that upon execution and delivery of the Stipulation of Settlement in full and 2 the Order for Dismissal from the Minnesota Court of Appeals in File No. A07-502 to the City of 3 St. Paul, the City of Saint Paul hereby accepts the Stipulation of Settlement as a fixll and final 4 settlement of Council File No. 07-118. Requested by Departrnent of Adoption Certified by Council cretary BY: / / //VSli�i�f�G�i'7 Approved byMayor:� �� V� By: Bv Fortn A� ov d by QTy Atto I 1 �-�o-o�' By. Fo Approved by Mayor for Submiss�on to Council � � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � �' N� � co ��W��� Contact Person & Phone: Marcia Moermond 266-8570 Must Be on Council Aoen Doc.Type: RESOLUTION E-Document Required: N Document Contact: Racquei Naylor Contact Phone: 266-8573 20-FEB-0B y Assign Number For Routing Order ToWI # of Signature Pages � (Clip All Locafions for Signature) Green Sheet NO: 3050210 0 ooncil 1 i Clerk De arlment D'vector 2 3 4 5 Accepting the Stipulation of Settlement as a full and final settlement of Council file No. 07-118 (order to remove 1897 Feronia Avenue). iqanons: Npprove (N) or h Planning Commission CIB Committee Civil Service Commission 1. Has this personKrm ever worked under a contract for this department? Yes No 2. Has this personlfirm ever been a city employee? Yes No 3. Does this person/firm possess a skill not normally possessed by any current city emp(oyee? Yes No Explain all yes answers on separate sheet and attach to green sheet Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): Advantages If Approved; Disadvantages If Approved: Disadvantages If Not Approved: Transaction: Funding Source: Financial Informati on: {Explain) CosURevenue Butlgeted: Activity Number: February 20, 2008 2:01 PM Page 1 ���� � STATE OF MINNESOTA IN COURT OF APPEALS Countrywide Home Loans, Inc. Relator, STIPULATION OF SETTLEMENT AND ORDER FOR DISMISSAL v City of Saint Paul, Respondent. APPELLATE COURT CASE NO: A07-502 This Stipulation of Settlement and Order for Dismissal("Sripulation of Settlement") is entered info this day of February, 2008, by and between the City of Saint Paul, Minnesota, ("City"), a municipal corporation, Relator, Federal National Mortgage Association ("Fannie Mae"), and Kally U.S., LLC ("Kally U.S."). WITNESSETH: WHEREAS, the Relator fited a Writ of Certiorari on March 7, 2007, challenging the decision of the Saint Paul City Council occurring on February 7, 2007, and reflected in Council Resolution Number 07-118; and WHEREAS, the CiTy and Fannie Mae desire to compromise, settle and dismiss the pending proceedings in order to facilitate the rehabilitation of property located at 1897 Feronia Avenue in the City of Saint Paul, Minnesota, the property that is the subject of the underlying dispute ("Property"); WHEREAS, Fannie Mae is a successor in interest in the above-referenced matter by virtue of a foreclosure sale on the Property which resulted in Fannie Mae acquiring ownership of the Property. �g-I�U 'WHEREAS, Fannie Mae has entered into a purchase agreement with Kally U.S. far the sale of the Property. WHEREAS, the sale of the Property is scheduIed to occur on February 22, 2008. NOW THEREFORE, it is hereby agreed and stipulated between the City, Fannie Mae, and Kally U.S. as follows: 1. That Kally U.S. has posted a$10,000.00 (Ten Thousand Dollar and No Cents) Performance Bond with the Saint Paul Department of Safety and Tnspection (DSI). Kally U.S. agrees to keep this Performance Bond in place in accordance and during the duration of terms set forth in this Stipulation of Settlement. Kally U.S. agrees to place $50,000.00 (Fifty Thousand Dollars and Zero Cents) in an escrow account to be withdrawn exclusively for the purpose of rehabilitating the Property in accordance and during the duration of the terms set forth in this Stipulation of SeYtlement. In the alternative, Kally U.S. will provide the City with a letter of credit evidencing that it has the financial ability to complete the rehabilitation of the Property. 2. That Kally U.S. shall complate the repair of all of the items listed in the May 15, 2007 Code Compliance Inspection, with all sign offs and approvals by Code Compliance Officers within 180 days from the date of adoption of the Resolution accepring this Stipularion of Settlement. Said Report is hereby incorporated herein in its entirety by this reference. Kally U.S. further agrees if the wark is not completed by the date of August 15, 2008, Kally U.S. forfeits the $10,060.00 (Ten Thousand Dollar and No Cents) Performance Bond referenced in pazagraph one. 3. That the City agrees to make pmmpt inspections of work that has been completed to avoid any delays in the progress of the rehabilitation. In the event an inspection has not occurred o���� � within five business days of the request, the same number of days shall be added beyond the agreed upon completion date of August 15, 2008. 4. That this Stipulation of Settlement shall be a full and final settlement of the claims asserted in the Writ of Certiorari currently pending before this Court. 5. That the real property located at 1897 Feronia Avenue in the City of Saint Paul has been determined to constitute a nuisance building by the City Council of the City of Saint Paul and said property shall remain subject to the Police Powers of the City of Saint Paul during its completion. The nuisance condition will not terminate until there has been a final sign off by City Code Compliance Officers. Any notices of deficiency or correction shall be provided to the Kally U.S. as provided by law. 6. That the City will exercise its Police Powers to abate the nuisance at 1897 Feronia Avenue in the City of Saint Paul, with no further contest by Relator or Kally U.S., if the rehabilitation of this property exceeds the agreed upon deadline of August 15, 2008, or any date that exceeds a deadline that has been agreed upon by both parties to this Stipulation of Settlement. 7. Within a reasonable time subsequent to receiving a fully executed copy of this Stipulation of Settlement and Order for Dismissal, Fannie Mae shall de]iver to the City a check in the amount of $10,200.00 (Ten Thousand Two Hundred Dollars and No Cents) in complete satisfaction of all costs and attorneys fees the City has incurred as a result of the afore-mentioned matter. This check shall be made payable to the City of Saint Paul. 8. The City and Fannie Mae on behalf of themsetves, their predecessar entities, their corporate affiliates, successors, assigns, insurers, attorneys, representatives, and agents, hereby �� �� I `f forever mutually release each other or any other person or entity acting on behalf of each such entity or person from any and all manner of actions, suits, claims, proceedings or causes of action, in law or equity, costs and expenses of any kind whatsoever, whether direct or indirect, fixed or contingent, known or unknown, latent or patent, which they have ever had, now have, or hereafter can, shall, or may have regarding the above-referenced matter, SAVE AND EXCEPT for those terms set forth in this Stipulation of Settlement, related to the above referenced matter. 9. The parties agree that the terms of this Stipulation of Settlement ara binding on all parties. In the event the Property is not sold to Kally U.S. as outlined in this Stipulation of Settlement, the parties agree that the Stipulation of Settlement is null, void, and of no legal effect and that the above-entitled mattar shall not be dismissed. The City and Fannie Mae agree that the Stipulation of Settlement will not be submitted to this Court until the sale of the Property has occurred and ritle has transferred to Kally U.S. 10. Fannie Mae and Kally U.S. understand and acknowledge that the City does not admit any wrongdoing, improper action or liability for any alleged damages or alleged violations in law or equity. 1 l. The parties agree that this Stipulation of Settlement constitutes all of the agreements and understandings between Fannie Mae and the City. There are no other written or oral agreements or understandings which modify the terms set forth in this Stipulation of Settlement. 12. That Kally U.S. agrees to immediately market and sell the property upon successfu] completion of the rehabilitation or commit to use a reputable tenant screening agency and observe all of the guidelines and recommendaTions promulgated by the Crime Free Multi- Housing program at the City of Saint Paul Police Department FORCE Unit. ��-��� 13. That all of the conditions described in the City Council Resolution Number 07-296 to stay the enforcement of the demolition of the properry remain in effect until the final completion and sign off of the rehabilitation of the property. 14. That any modification of this agreement may be made through the mutual written consent of all parties to this Stipulation of Settlement. 15. The City and Fannie Mae hereby stipulate and agree that the above-entitled matter having been fixlly compromised and settled, is hereby dismissed on the merits with prejudice, and that upon the filing of this Stipulation of Settlement or a Stipulation for Dismissal, the above- named Court of Appeals is autharized to dismiss the action of record. 16. The parties, by execution hereof, acknowledge they have had the opportunity to obtain the advice of independent legal counsel prior to signing this Stipulation of Settlement, and fully agree to each and every provision hereof. 17. This Stipulation of SeYtlement shall be governed by the laws of the State of Minnesota and is binding upon the parties. This Agreement is valid if executed in counterparts which, if read together, constitute a fully-executed Agreement. IN WITNESS WHEREOF, the parties hereto, acknowledge that this agreement is the entire agreement of the parties with regard to the property located at 1897 Feronia Avenue in the City of Saint Paul, Minnesota. Dated: ,2008. V�����I' CITY O}'1 SAINT PAUL A. Hanson RELATOR, FEDERAL NATIONAL MORTGAGE ASSOCIATION SUCCESSOR IN 1NTEREST TO � ao COUNTRYWIDE HOME LOANS INC. �stant City Attorney 400 City Hall, 15 W. Kellogg Blvd. Saint Paul, MN 55102 (651)266-8710 KALLY U.S., LLC � Its : Its WILFORD & GESKE, P.A. : Eric D. Cook, #218807 Christina M. Weber, #034963X Attorneys for Relator 7650 Cunell Boulevard, Suite 300 Woodbury, Minnesota 55125 651-209-3300 0 �� ��� � CITY OF SAINT FAUL 70HN 3. CHOI 7uditlz A. Fianson �207�08 Assisfant City Af.f amey =��4 City F�all 1.5_GV Kellflgg.Blvd, Saint Paut_ MN 55102 (651) 266-8710 RELA'FOR, FEDERAL NATTONAL MORTGAGE ASSOCIA'FTON SUCCESSORININTERESTTO COUNTRI'Z�IDE F30IvIE LOAI�5 INC_ Its KAT. LYU_S.. LL_C � \� �--� Its ��'� Uy CL G Lks �(f.t�i d�.k' WILFORa & GESKE, F_A. '-E3�'i Eric D. Caok, g218$07 Christina M. Weber, #03�963� A.LYOIIFCS'S �OT Pi.P.Z3.EOF 765 Q, Currell, B ovleyard Su.ite 3Q4 .................. �'oodbuzy, Minnesata 55125 651-209-33Dt1 02/20/2008 03:09 9723864175 FAMlIE MAE PAGE 06/07 Cl'tX OF SAINP PAUL aoxtv J. c�oz By Judith A. Hanson #207408 Asszsfant City Attorney 400 City k�a�1,15 W. Kellogg BIvd. Saint Paui, MN 55102 (651)2b6-8710 rc.aZ,z,Y u.s., LLc � zcs ��il� - I . �. �p.. � f' • • � ' _ - - _---- -- -= --_ �` � w _ - _ y : r . � t .' ' ' � e � .. '� � _..:��si Its WII.FORD & GESKE, P.A. By Et�ic D, Cook, #218807 ChristinaM. Weber, #034963X Attomeys for Relator 765D Cturell Boulevazd, • Suite 300 Woodbury, Mizuxesota 55125 b51-209-3300 [�i V���� -1 CI1'Y OF SAlNT PAUL JOHN J. CHOI By Judith A. Hanson #207408 Assistant City Attorney 400 City HalI, 15 W. Kellogg Blvd. Saint Paui, IviN 55102 (651)266-8710 KALLY CJ.S., LLC � Its RELATOR, FEDERAL NATIONAL MORTGAGE ASSOCIATTON SUCCESSOR IN INTEREST TO COUIvTRYWIDE HONiE LOANS �rrc. � Its WILFO & GES �E, .A. By Eric D. Cook,'�218807 Christina M. Weber, #034963X Attomeys for Relator 7650 Currell Boulevard, Suite 300 Woodbury, Minnesota 55125 651-209-3300 ��-���1 .�, � This matter, having been compromised and settled pursuant to the foregoing stipulation made by and between the parties hereto, the Court makes the following Order: NOW, THEREFORE, IT IS ORDERED that this Stipulation is approved and that judgment shall be entered pursuant to the terms of the Stipulation dismissing Case No. A07-502 with prejudice. LET JUDGMENT BE ENTERED ACCORDINGLY. Appellate Court Justice Dated this day of ,2008. 7