09-61Suspension —1/14/2009
RESOLUTION
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OF
Presented by
Council File # 09-61
Green Sheet # 3065844
PAUL, MINNESOTA
WHEREAS, the number of mortgage foreclosures in the United States and in the State of Minnesota has signi5cantly increased
in the past few yeazs; and
RTHEREAS, the number of mortgage foreclosures in the State of Minnesota in 2005 was 6,4b6 which increased to 20,404 in
2007 and the number of mortgage foreclosures projected in 2008 is 27,445; and
WHEREAS, the number of mortgage foreclosures has had a significant negative impact on the cities in this country and the
State of Minnesota. The City of Saint Paul has seen the number of mortgage foreclosures increase from 503 in 2005 to 1,819 in
2�p7 xo 2,289 in 2�08; and
WHEREAS, the increase in mortgage foreclosures has resulted in an increase in the number of vacant homes in the City of Saint
Paul. Currenfly, there aze 2,000 rea stered vacant homes in the City of Saint Paul; and
WHEREAS, the increase in the number of vacant homes has a deteriorating effect on the neighborhoods in the City of Saint
Paul causing a decrease in property values; and
WHEREAS, the increase in mortgage foreclosures has reached epic proportions establishing the need for local action by cities.
The City of Saint Paul has responded to this mortgage foreclosure crisis in a number of ways, including but not limited to
paztnering with neighborhoods by providing mortgage foreclosure workshops, individual mortgage foreclosure wunseling,
targeted outreach at the local libraries, public service announcements, and direct mailings; and
WHEREAS, Mayor Chris Coleman and the Saint Paul City Council authorized the City Attorney ro hue outside counsel to assist
in the development of legal strategies to address and abate the negative effects of mortgage foreclosure in Saint Paul; and
WHEREAS, the City Attorney's Office and its outside counsel have developed a series of legal strategies that aze intended to
hold lenders accountable for the care and maintenance of vacant homes, for the swifr payment of assessments, fees, and property
tases, for a systemic appioach to quickly evaluate and sell the vacant homes, and to get the lenders to focus on foreclosure
prevention to decrease the number of vacant homes; and
WHEREAS, in July, 2008, Mayor Chris Coleman wrote to other Mayors throughout the country to encourage the formation of a
working a oup comprised of chief legal officers for municipalities throughout the Nation to jointly plan on legal strategies and
to form a multi-city liugation working group to hold lenders accountable, decrease the number of foreclosures and to reduce the
number of vacant homes; and
WHEREAS, in July, 2008, the City Attorney wrote to his colleagues across the Nation to encourage the formation of a working
group comprised of chief legal officers fot municipalities to jointly plan on legal strategies and to form a multi-city litigation
working group to hold lenders accountable, decrease the number of foreclosures, and to reduce the number of vacant homes; and
WHEREAS, there aze signi6cant beneSts for the CiYy Attorney to partner with other chief municipal legal officers across the
country to jointly implement legal strategies and form a mulli-city litigation worldng group to hold lenders accountable,
decrease the number of foreclosures, and to reduce the number of vacant homes; and
WHEREAS, the City Attorney in coordination with the International Municipal Lawyers Association has been appointed as the
co-chair of the mulu-city lifigation working �oup on foreclosures, which is a collaboration of City Attorneys, City Solicimrs
and Corporation Counsels throughout the countey, whose purpose is to implement and coordinate legal strategies at the local
level in order to proactively address the foreclosure crisis; now, therefore, be it
RESOLVED, that the Council of the City of Saint Paui supports the Mayor and City Attorney's efforts to partner with other
National cities to create a united local government front on addressing the foreclosure crisis by creating a multi-city litigauon
working gaup comprised of chief legal officers fot municipaliues throughout the Nation to hold lenders accountable, decrease
the number of foreclosures, and to reduce the number of vacant homes; and
09-61
52
53 FURTf�R RESOLVED, that the Ciry Attomey will report back to the Council of the Ciry of Saint Paul in 90 days on the
54 proaress of the multi-city working �roup.
�$
Bostrom
Carter
Hams
Helgen
Stark
Thune
Adopted by Council: Date
Adopuon Certified by Cound Secretary
BY� _�L(J,/ ' _/�.ivG/��e
Approved by Mayo� Date � �_n�� c�
BY� �l�c.i-c.� �ll
Requested b ep t nt of: �� L'
t
i.
By:
Approved by the Office of Financial Services
By:
Appro ed b 6ity Atto�pey /
By: � o�— .�C�-
cT
Approv d ayor or Sub i to C ncil
BY: �;'� �����
� Green Sheet Green Sheet
09-61
Green Sheet Green Sheet Green Sheet Green Sheet
�
DepartrneM/Office/Council: Date Initiated:
CA o�„�-09 Green Sheet NO: 3065844
Contact Person & Phone; Deoartmerk Sent To Person InitiaUDate
John Choi y 0 ' nuome �
266'$��� I ' Attome De arhnentDirector
Assign 2 ' Attorn �
Must Be on Council Agenda by (Date): Number 3 or•s OtTce Ma or/ASSistant
For
Routing < nunal ��
Doc. Type: RESOLUTION Order 5 i Clerk Ci Clerk
E-DOCUment Required: Y
Document Contact
Contact Phone:
Total # of Signature Pages _(Clip All Locations for Signalure)
Action Requested:
Resolution suppofing Mayor and City Attomey's efforts to create a Narional Multi-City Litigarion Working Group on mortgage
foreclosures.
Recommendations: Approve (A) or Reject (R): Personal Service Contracts Must Answer the Foilowing Questions:
Planning Commission 1. Has this person(firm ever worked under a coMract forthis departmenY?
CIB Committee Yes No
Civil Senrice Commission 2. Has this person/firtn ever been a city employeel
Yes No
3. Does this person/firm possess a skill not normally possessed by any
cuttent city employee?
Yes No
Explain all yes answers on separate sheet antl attach to green sheet.
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
Advantages If Approvetl:
DisadvanWges If Approved:
Disadvantages If Not Approved:
ToWI Amount of
Trensaction: CasURevenue Budgeted:
�unding Sourcr. Activity Number:
Financial Information;
(Explain)
January 9, 2009 11:58 AM Page 1