2d. Resolution Approved Historic Preservation Trust Agreement y k a d.
C I TYOF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
ktian by City tO -
MEMORANDUM w ° -
1 DATE: March 5, 1992
TO: Don Ashworth, City Manager .
II FROM: Tom Chaffee, Data Processing Coordinator
SUBJECT: Historic Preservation Trust Agreement
During the 1990 Audit and annual financial statement preparation
the City Auditors pointed out that a formal trust agreement
1 is required in order for the City to .continue the Historic Pre-
servation Trust Fund. The attached resolution has been drafted
by the City Attorney to address the legal requirements necessary
for such an agreement. I feel the attached resolution covers
the issues and concerns and would recommend its adoption.
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t 4? PRINTED ON RECYCLED PAPER
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CAMPBELL, KNUTSON, SCOTT & FUCHS, PA.
Attorneys at Law
Thc nnas ) , Campbell (612) 452 SUUU
Rom KsltflSt)4) Fax (612) 452.5550
Thomas 14. Scott
OAry C Fuchs
' James R. Walston
Elliott B. Knctsch
Mirharl A. fro1,ick March 4, 1992
Renae 1.). Steiner
BY FAX_ AND MAIL
1 Mr. Tom Chaffee
Chanhassen City Hall
' 690 Coulter Drive, Box 147
Chanhassen, Minnesota 55317
RE: Resolution Establishing a Historic Preservation Trust Fund
' Dear Tom:
Enclosed please find draft resolution establishing a historic
preservation trust fund. In order to receive federal tax exempt
status, a number of forms must be completed and returned to the IRS
' for tax exempt status determination. Those forms include Form 1024
which is the application for recognition of exemption, Form 7818
which is the user fee for exempt organization determination letter,
and Form SS -4 which is an application form for a federal employer
' identification number.
A ruling or determination letter recognizing exemption is
effective as of the date of formation of an organization if, during
the period before the date of the ruling or determination letter, its
purposes and activities were those required the law. Therefore,
' the Chanhassen City Council may pass this resolution and establish
the historic preservation trust fund before it receives tax exempt
status. If the IRS determines that this is an exempt organization,
there will be no federal income taxes due for the entire period of
the trust fund's existence.
We will complete the necessary forms as soon as they arrive from
the IRS. If you have any questions or concerns, please feel free to
contact me.
Very truly yours,
CAMPBELL, KNUTSON, SCOTT
& FUCHS, P.A.
�'^ A .
By: 13i5
Renae D. Steiner
RDS:srn
Enclosure
' Suite 317 • Eagandale Office Center • 1.380 Corporate Center Curve • Eagan, MN 55121
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
RESOLUTION
Date: Resolution No.
Motion Hy: Seconded by; 1
RESOLUTION ESTABLISHING A
HISTORIC PRESERVATION TRUST FUND
WHEREAS, the Chanhassen City Council recognizes the City's 1
commitment to maintain Pioneer Cemetery;
WHEREAS, the Chanhassen City Council recognizes the historical 1
significance of certain real property, including but not limited to,
Old St. Hubert's Church and the Village Hall; and
WHEREAS, the City desires to maintain the aesthetic appearance 1
and atmosphere of downtown Chanhassen.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the 1
City of Chanhassen;
1. Trust Fund Established. A historic preservation trust as
an expendable trust fund (the "Fund ") is hereby created and '
established in accordance with 26 U.S.C. § 501(c)(4).
2. Purpose. The Fund shall be used to continue perpetual
care maintenance of Pioneer Cemetery; to provide for maintenance and
necessary improvements to Old St. Hubert's Church and the old
Village Hall; and to provide maintenance and continued beautifi- 1
cation of the downtown area.
3. Funding. Funding of the historic preservation trust fund 1
will be provided from the sale and rental of City owned real
03/04/92 1
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property; the receipt of downtown usage and maintenance fees; such
other non - restricted, non - general tax revenues as may become
available; and the investment interest earnings of the Fund.
4. Management. The Fund shall be managed by the City Manager
and the City Manager's designee.
5. Direction. The City Manager and designees shall submit an
annual budget which will be submitted through the City's normal
budget process; the investment of available funds shall be on a long
1 term basis to assure highest possible earnings and continuity of
funding; and annual expenditures shall be restricted to no more than
ninety percent (90 %) of revenue except in extreme cases involving
major repairs.
6. Miscellaneous. Any modification of this resolution
shall require a four /fifths (4/5) majority vote of the Chanhassen.
City Council.
ADOPTED by the City Council of the City of Chanhassen this
day of - , 1992.
ATTEST:
11 Don Ashworth, Clerk /Manager Donald J. Chmiel, Mayor _
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