Alexandria City Council holds closed session to discuss loan lawsuit – Alexandria Echo Press

ALEXANDRIA

— At Monday’s meeting, the Alexandria City Council closed its final session to discuss a lawsuit filed by Ferguson Brothers Excavating and other contractors against Jeanne and Charles Tanksley and the city of Alexandria.

The city became involved in the project because it approved a 2022 $200,000 revolving loan fund application from the Tanksleys’ Venia, LLC to renovate and redevelop the former Quality Printing/Hegg Law Office into the ArtisTree Community Art Center and Cafe at 2020 Fillmore Street.

The project cost was estimated at $685,000. Several contractors were hired to renovate the Fillmore property but were not paid, according to a memo from Deputy City Attorney Gregory Donahue sent to the council on Jan. 9. The contractors filed liens on the property in favor of the mechanics and initiated legal proceedings to foreclose on the property. on real estate in 2024

The city was named a defendant in this lawsuit because the foreclosure proceedings affect the city’s lien on the property. No city tax funds are committed to any revolving loan funds. They are financed solely by interest earnings on borrowers’ repayments. The city is listed as a lending subsidiary.

According to Donahue, in October 2024, the bank that held the mortgage on the property foreclosed and sold it at a sheriff’s auction. The sale resolved the city’s subordinated liens and mortgages on the property, including interest.

As a result, the city must decide whether it will be worth buying the property, which could happen six months after the sale, Donahue said. If the city intends to redeem the property, it must submit a notice of intent within six months.

Filing the notice preserves the city’s ability to exercise the redemption option, but does not obligate the city to honor the agreement and buy the property, Donahue said. The council also must decide whether to enforce the Tanksleys’ personal guarantees on the city loan, he added.

Donahue recommended that the council hold a closed session to discuss available options.

The council approved a ‘code of conduct’ for elected officials in 2025.

The council originally adopted the code in 2016 and updated it in 2020. As of 2021, the council voted to adopt the code at its first meeting each year. It also approved “rules of procedure” and “principles for decent public participation” – which include a comment period – for 2025.

Respect is a key principle in all documents.

“It’s all about respect,” the code of conduct states. “Respect for each other as individuals, respect for the validity of differing opinions, respect for the democratic process, respect for the community we serve.”

The Code of Conduct describes how the mayor and council members should treat each other, city employees, consultants, constituents and others they may come into contact with while representing the city.

It also provides guidance on conflicts of interest.

The city adopted new regulations five years ago, based on the recommendations of the Minister of Justice

Minnesota Mayor’s Rules of Order Manual

which was created by the Minnesota League of Cities and the Minnesota Mayors Association. The manual has 78 pages. Provides information on legal rights and obligations within the city government structure; practical tips for managing meetings; and guidance on inspiring and ethical leadership for your council and community.

Some highlights:

Council members will assist the Mayor in maintaining order and decorum.

Neither the mayor nor the council may engage in any conduct that delays, interrupts or obstructs discussion.

Neither the mayor nor council may conduct private conversations or transmit private messages while in the council chambers.

No vulgar or obscene words or language that threatens harm or violence towards another person.

No council member may speak without being recognized by the mayor.

No council member may interrupt another person’s speech.

During the debate, council members may only speak when summoned; must direct comments to the mayor; and must not interfere with work. The mayor can interrupt council members, but not the other way around.

The public will once again have the opportunity to address the council during the public comment period at the beginning of its meetings. There will be a moment of silence after this.

The resolution states that while city council meetings are generally open to the public due to open meeting laws, the meetings “do not constitute a forum for public expression.” However, the council recognizes that “social involvement is necessary for effective city management,” the resolution states.

Rules of decorum are necessary to ensure that council meetings are “professional, courteous and effective and conducted with the best interests of the city in mind,” the resolution said.

The most important rules of decency:

The Board may, by a majority vote, suspend the public comment period, change the agenda, and/or take other actions it deems to be in the public interest.

Except at public hearings or other circumstances required or permitted by law, comments from members of the public attending a city council meeting are limited to the public comment period.

To speak during the public comment period, speakers must register and provide their name, address and a brief summary of the topic they wish to discuss before the meeting is called. They must be recognized by the chairman before speaking and must speak from a podium or microphone.

The use of audio or video recordings, audiovisual presentations, or other such methods of sharing information during the public comment period is not permitted.

Public speaking time cannot exceed 15 minutes, and each speaker’s speaking time is limited to three minutes.

For privacy reasons, the public comment period cannot be used as a forum for reporting issues related to any City employee. Concerns regarding city employees should be directed to the mayor, city administrator and/or city human resources director.

Persons attending a board meeting, including persons speaking during the public comment period, must not engage in any conduct that disrupts the meeting or threatens the safety or security of the public, such as threats, loud or boisterous conduct; strange conversation; or activities that interfere with the ability of others to view or hear board proceedings. Vulgar, defamatory and threatening language is strictly prohibited.

We encourage speakers who agree with a point or issue raised by a previous speaker to simply show their agreement and avoid repetition.

No person may hold, display, carry, or place any banner, poster, sign, object, or other material in a manner that endangers others, prevents the free movement of persons within the chamber, or impedes or prevents the viewing or hearing of others.

Although council meetings may be broadcast or streamed over the Internet, no “virtual” public comments will be permitted. Participation in public comments must be done in person.

As a general rule, the council will not take action on matters raised during the public comment period. They may be referred to the appropriate city employee or official for further consideration and reported to the council or individual.

Council members will not engage in dialogue with speakers during the public comment period.

Photography, audio and video recording of council meetings is permitted from anywhere in the council chamber or at the back of the council chamber, provided it does not disrupt the view or hearing of any other person or otherwise disrupt the proceedings of the meeting.

Speakers and other members of the public who fail to comply with these rules or the Chair’s orders will be warned that further violations or disruptive behavior will result in removal from the meeting.

Most regular board meetings are recorded, and these recordings are usually public records. Therefore, people participating in these meetings, whether virtually or in person, must be aware of how their comments and behavior during the meetings will appear and must be preserved for public viewing.

Below are other items from the January 13 meeting not included in other Council reports.

The city council accepted donations totaling $13,250, which will be used for the expansion

Runestone Community Center Capital Campaign.

Since the launch of the campaign in 2022, a total of 109 donors have contributed $1.8 million to Phase 3 of the RCC project, which will include the addition of a third arena.

The council issued two licenses to sell fireworks inside – Fleet Farm and Menards.

The council approved account changes at First Western Bank and Trust and Viking Bank. This will update the details of the authorized signers of the checking account, money market account and two Plaza Liquor certificates of deposit.

One of the signatories, City Finance Director Jane Blade, will retire on June 19, 2025, and Heather Koskiniemi will have the authority to sign the bills.

The Council has taken action to ensure that banks require two authorized signatures. In a related action, the council told staff to compare the city’s two-signature policy with those of other banks.