HomeMy WebLinkAbout10.e. Legal Representation - Potential ConflictCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
Port Authority Meeting Date: November 2, 1992
AGENDA ITEM:Legal Representation
AGENDA SECTION:
Potential Conflict
New Business
PREPARED BY: Stephan Jilk
AGENDA N101 -EM
#
10 E
ATTACHMENTS: Briggs and Morgan Letter
APS VED BY:
+'
F
Briggs and Morgan represents the City of Rosemount and the Rosemount Port
Authority in financial matters as they specifically relate to the issuance
of bonds and the preparation of legal documents for tax increment financing
programs.
CMC Heartland Partners, the developers of the CMC property ave requested
that Certain Attornies from the Briggs and Morgan firm represent CMC in
this development. This representation by Briggs and MOrgan could develop
situations where conflicts of interest may arise. That firm has sent a
letter which, if signed by the City, would recognize that potential and
would allow the situation to continue until either party saw the conflict
arise. At that time either party would then indicate that the double
representation would have to cease.
I find this unnacceptable and believe it would put the City in a
comprimising position. I would recommend that the City, advise Briggs and
Morgan that this is unacceptable and that their reperesentation of both
entities is not acceptable. The firm then would have to choose which
entitie they will represent.
It is too easy to just move along until a real problem comes up and then it
is too late and positions are already comprimised.
RECOMMENDED ACTION:Motion to advise the law firm of Briggs and Morgan
that the Port Authorities position is that the firm
should represent only one of oparties in this matter
and preferably that party is the City.
Port Authority Action:
LAW OFFICES
BRIGGS AND MORGAN
PROFESSIONAL ASSOCIATION
2200 FIRST NATIONAL BANK BUILDING
SAINT PAUL, MINNESOTA 55101
TELEPHONE (612) 223 - 6600
FACSIMILE (612) 223-6450
MINNEAPOLIS OFFICE
y, 2400 I D S CENTER
WAITER'S DIRECT DIAL NUMBER September 25, 1992 MINNEAPOLIS, MINNESOTA 55402
TELEPHONE (612) 334-8400
FACSIMILE (612)334-8650
(612) 223-6666
DELIVERY VIA TELECOPY AND U.S. MAIL
City of Rosemount
Rosemount Port Authority
2875 145th Street West
Rosemount, Minnesota 55068
./Attention: Mr. Stephan Jilk
City Administrator
CMC Heartland Partners
547 West Jackson Boulevard
suite 1510
Chicago, Illinois 60661
Attention: Mr. Larry Adelson
Vice President and General Counsel
Re: Proposed Tax Increment Financing Project and PUD
Development
Gentlemen:
CMC Heartland Partners (the "Developer") has requested that
Briggs and Morgan represent it in certain matters related to a
proposed project to be constructed in the City of Rosemount (the
"City"). The Developer anticipates requesting tax increment
financing assistance for the Project from the City or the Rosemount
Port Authority (the "Tax Increment Transaction") and also
anticipates entering into a Planned Unit Development ("PUD")
agreement with the City for the Project. Briggs and Morgan is bond
counsel to the City and the Rosemount Port Authority (the
"Authority") and will represent the City and the Authority in the
Tax Increment Transaction. The purpose of this letter is to
request the consent of the Developer, the City and the Authority to
Briggs and Morgan's multiple representation of the parties in the
Tax increment Transaction and to Briggs and Morgan's limited
representation of the Developer on PUD negotiations. Mr. Reid
226165
BRIGGS AND MORGAN
City of Rosemount
Rosemount Port Authority
CMC Heartland Partners
Page 2
September 25, 1992
Hansen of the McMenomy Hansen firm will be the primary counsel for
the Developer on PUD matters. Briggs and Morgan's role will be
secondary.
As you know, the respective interests of the City and the
Authority (collectively the "Municipality") and the Developer may
be adverse in the Tax Increment Transaction and in the proposed
PUD. If legal disputes develop between the Municipality and the
Developer, ethical considerations would preclude Briggs and Morgan
from representing either the Municipality or the Developer in
connection with any such disputes, and both the Municipality and
the Developer would have to obtain other counsel to represent them.
By executing the space below, you are acknowledging that we
have consulted with you and provided an explanation of the
implications of this multiple representation, and the advantages
and risks involved with it.
Please indicate your consent by signing the enclosed
counterpart of this letter returning it to me.
Sincer ly yours,
Timothy E-, arx
TEM:cf
Enclosures
cc: Mr. John Cairns
Ms. Mary Dyrseth
Mr. Reid Hansen (by telecopy and U.S. Mail)
226165
1
BRIGGS AND MORGAN
City of Rosemount
Rosemount Port Authority
CMC Heartland Partners
Page 3
September 25, 1992
CONSENT
On behalf of the City of Rosemount, I hereby consent to the
representation of CMC Heartland Partners by Briggs and Morgan in
accordance with the terms set out above.
CITY OF ROSEMOUNT
By
Its
CONSENT
On behalf of the Rosemount Port Authority, I hereby consent to
the representation of CMC Heartland Partners by Briggs and Morgan
in accordance with the terms set out above.
ROSEMOUNT PORT AUTHORITY
By
Its
CONSENT
On behalf of CMC Heartland Partners, I hereby consent to the
representation of the City of Rosemount and Rosemount Port
Authority by Briggs and Morgan in accordance with the terms set out
above.
226165
CMC HEARTLAND PARTNERS
By
Its