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:
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Fortn A� ov d by QTy Atto I
1 �-�o-o�'
By.
Fo Approved by Mayor for Submiss�on to Council
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� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
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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
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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
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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.
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'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
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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
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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.
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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
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:
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
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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_
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KAT. LYU_S.. LL_C
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WILFORa & GESKE, F_A.
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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
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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
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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
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Its
RELATOR, FEDERAL NATIONAL
MORTGAGE ASSOCIATTON
SUCCESSOR IN INTEREST TO
COUIvTRYWIDE HONiE LOANS
�rrc.
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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
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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