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HomeMy WebLinkAbout6.x. Waiver of right of first refusal to purchase FTTH franchiseAGENDA ITEM: Waiver of right of first refusal to purchase FTTH franchise AGENDA SECTION: Consent PREPARED BY: Jamie Verbrugge, City Administrator AGENDA NO. 10•X• ATTACHMENTS: Draft resolution APPROVED BY: RECOMMENDED ACTION: Passage of resolution 4 ROSEMOUNT CITY COUNCIL City Council Regular Meeting: December 19, 2006 EXECUTIVE SUMMARY The owner of the 1-11H cable television franchise in Rosemount has notified the City that it is negotiating to sell its operation to Rudder Capital Corp. of St. Paul, Minn. The parties have requested that the City make clear that it will not exercise the right of first refusal to purchase the system as descnbed m the original franchise agreement between the City and N 11H. At its work session m November, the Council indicated that it is willing to waive the nght of first refusal in advance of deciding whether to approve the transfer. The attached resolution waives that right CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2006 A RESOLUTION APPROVING THE TRANSFER OF FRANCHISE WHEREAS, pet the terms of the franchise agreement the principals of FTTH Communications LLC (FTTH) and Rudder Capital Corporation (Rudder) have provided written notification of F FIET's intent to sell the company to Rudder; WHEREAS, FTTH and Rudder contend that suitable notice has been provided to the City; WHEREAS, FTTH and Rudder have requested that the City provide written notification of its intent not to exercise the `right of first refusal' to purchase the System owned by FTTH, pursuant to the franchise; WHEREAS, FTTH and Rudder have committed to separately request that the City approve the franchise transfer, which transfer approval may be subject to additional conditions, and have requested that the City address the `first nght of refusal' prior to considering the franchise transfer approval; THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemount, on this 19th of December 2006, the City Council of Rosemount hereby waives the "first right of refusal" to purchase the System (as defined m Ordinance No. X1.23), such provision is included under the rid terns of the franchise agreement, passed and adopted on the 2 day of June, 2002, between the City of Rosemount and FTTH Communications, LLC The right is referenced m the ordinance in Section 9, SALE ABANDONMENT TRANSFER AND REVOCATION OF FRANCHISE, Sub Section 3. Sale or Transfer of Franchise, paragraph f. where it states, as follows: In the event of any proposed sale, transfer, corporate change, or assignment pursuant to subparagraph (a) or (b) of this Section, the City shall have the nght of first refusal of any bona fide offer to purchase the System Bona fide offer, as used in this Section, means an offer received by the Grantee which it mtends to accept subject to the City rights under this Section. This written offer must be conveyed to the City along with the Grantees written acceptance of the offer contingent upon the nghts of the city provided for in this Section. The City shall be deemed to have waived its rights under this Section in the following circumstances: i. If it does not indicate to Grantee in writing, within ninety (90 days) of notice of a proposed sale or assignment, its intention to exercise its right of purchase; or ii. It approves the assignment or sale of the Franchise as provided within this Section. RESOLUTION 2006- ADOPTED this 19th day of December, 2006 by the City Council of the City of Rosemount ATTEST: Amy Domeier, City Clerk William H Droste, Mayor Motion by: Second by: Voted in favor: Voted against. Member(s) absent Ei !P F r w 0 0 Z 2 H 0 2 w V 0 {oal Y'Iri��hlliCl11111111 i f 0 0 November 25, 2006 Rosemount Planning Commission 2875 145 Street Rosemount, Minnesota 55068 Re: Rosemount Family Housing Limited Partnership Commissioners: I oppose any changes in land use to accommodate this project. As I and a majority of my neighbors have indicated to the City this is not a proper location for taxpayer subsidized housing Nor is it the role of City Government to provide such housing I'm enclosing a letter to the Editor of This Week newspaper (which they chose not to publish) which I ask be included in the record. One final question is there anything that could be said that would change your mind and oppose this dreadful project? I am convinced this project was a done deal long before there was any public input Sincerely, Gene Rusco 3553 Couchtown Path Rosemount, MN 55068 651 344 -3455 c -cj Editor .1 Thank you for putting a histoncal perspective on the City Council's recent meeting in which the so- called "affordable housing" town home project was given a formal green light. You pointed out in your February 10 Editorial that m the last 3 years all five Councilmembers stressed the importance of communication with residents The process is most enlightening for those of us who live in the adjacent Evermoor neighborhood. Why was there such a lack of communication dunng the planning of the subsidized housing project at Evermoor? Councilmember Baxter correctly indicated that these issues do not come to the Council in a vacuum He indicated their first work session on the affordable housing development was back in April How much public input was taken at that work session? How much public input was taken in May or June or July or August, September, October, November or December? Or was it TEN MONTHS into this project before residents even knew it was being planned? When the "public hearing" was held in January at the Planning Commission meeting rt was done so only out of a legal requirement. This project was a DONE DEAL before the opening gavel went down on that meeting. Yes, our City Attorney can correctly state that the Council satisfied the legal requirements for public input but we Evermoor residents know that we were not represented during the months and months of planning that occurred before the hearing. How many Evennoor residents were asked about the project during this planning? I venture to say NONE This isn't about making housing affordable, it's about having a City Government that doesn't rule from the top down. We residents were told during the Latest hearing that some comments were "irrelevant" (City Attorney) and "irresponsible" Councilmember Shoe Corrigan) You stated in the editorial that "Residents were heard..." Really? Yes, we did come to the podium and speak and they listened, but we were not heard There was nothing that could have been said that would have changed the already made up minds of those elected to be our representatives. So thank you again for your editorial which pointed out that our Councilmembers have in past years indicated the importance of communication with residents. The actions of City staff, Planning Commission and City Council speak much louder than the words spoken during campaign season. Sincerely, Gene Rusco 3553 Couchtown Path Rosemount 651 344.3455 generusco @Iightblast net