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2012-06-18 CC Packetlbertvi 1 is City of Albertville Council Agenda sir Y uV60. ft Ob) We. Monday, June 18, 2012 7:00 PM PUBLIC COMMENTS -The City of Albertville welcomes and encourages public input on issues listed on the agenda or of general community interest. Citizens wishing to address the Council regarding specific agenda items, other than public hearings are invited to do so under Public Forum and are asked to fill out a "Request to Speak Card". Presentations are limited to five (5) minutes. 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE — ROLL CALL 3. RECOGNITIONS — PRESENTATIONS — INTRODUCTIONS 4. CITIZENS OPEN FORUM — (time reserved 5 minutes) 5. AMENDMENTS TO THE AGENDA 6. CONSENT AGENDA All items under the Consent Agenda are considered to be routine by the City staff and will be enacted by one motion. In the event an item is pulled it will be discussed in the order it is listed on the Consent agenda following the approval of the remaining Consent items. These items will be approved by a separate motion. A. Approve the May 8, 2012 joint City Council/Planning Commission minutes visioning session as presented (pgs 1-2) B. Approve the June 4, 2012 regular City Council minutes as presented (pgs 3-5) C. Approve the June 4, 2012 workshop minutes as presented (pgs 6-7) D. Authorize the Monday, June 18, 2012 payment of the claims that includes electronic payments 1212 EFT-1226 EFT and check numbers 31.048 to 31095 as presented (pgs 8-15) 7. PUBLIC HEARINGS A. Establish Tax Increment Financing District No. 14 (pgs 16-36) 8. DEPARTMENT BUSINESS A. City Council B. Planning/Zoning C. Public Works Director/City Engineer 1). Wastewater Superintendant Monthly Report (pg 37) 2). Public Works Director/City Engineer Work in Progress Report (pg 38) 3). I-94 Update (pg 39) D. Legal 1). Section 8 housing (discussion) City of Albertville Council Agenda Monday, June 18, 2012 Page 2 of 2 2). Robert Thistle Contract (pgs 40-45) 3). Extension of Bridget Miller Probationary Period (pgs 46-47) 4). Mattress Store (discussion) 5). Tax Forfeit Properties — Approve Resolution 2012-029 entitled Request for the state to deed tax forfeit properties to the City of Albertville (pgs 48-54) E. Administration 9. ANNOUNCEMENTS and or UPCOMING MEETINGS June 25, 2012 Joint Powers Board Meeting @ 6:30 P.M. July 2, 2012 City Council Meeting @ 7:00 P.M. July 4, 2012 City Office Closed (Holiday) July 9, 2012 Arena Board Meeting @ 6:00 P.M. July 10, 2012 Planning Commission Meeting @ 7:00 P.M. July 16, 2012 City Council Meeting @ 7:00 P.M. July 23, 2012 Joint Powers Board Meeting @ 6:30 P.M. Mot mmmm 10. ADJOURNMENT (Council will take a 5 minute recess prior to workshop to discuss transition plan) M:\Public Data\City Council\Council Agendas\2012 Agendas\06 18 2012 Agenda.doc Meeting Date: June 18, 2012 A,lbertville Small Town living. Big City We. UNAPPROVED JOINT PLANNING AND ZONING COMMISSION / CITY COUNCIL WORKSHOP MINUTES May 8, 2012 CALL TO ORDER Chair Kocon called the meeting to order at 7:02 p.m. 2. ROLL CALL Commissioners Kocon, Lindberg, Olson, Totman, and Edgren were present. Council members Mark Meehan, Jillian Hendrickson, John Vetsch, Dan Wagner and Larry Sorensen were present. Staff members present: Alan Brixius, Jon Sutherland, Adam Nafstad, Mike Couri, Tim Guimont, and Tina Lannes. 3. APPROVAL OF AGENDA: The agenda was approved as submitted. 4. APPROVAL OF MINUTES: April 10, 2012 Olson moved, seconded by Edgren to approve the April 10, 2012 minutes. Motion carried unanimously. 5. PUBLIC HEARINGS: None. 6. OTHER BUSINESS Following the approval of the Planning Commission minutes, City Council and attending City staff members divided into small groups to review the draft May 3, 1012 Albertville Vision Study that identified the issues and opportunities that Albertville faces in planning its growth over the next 20 years. Upon presentation of the issues and opportunities, Mr. Brixius asked each small group to identify their priorities for the community looking forward to the next 20 years. The priorities should address land use, development quality, transportation needs, infrastructure issues, desired community amenities, and financial investment. The small groups discussed these issues for the next two hours, preparing a list of priorities for the City. At the conclusion of the small group discussions, each small group presented their list to the larger assembly. Workshop participants were then asked to rank the identified items by priority for the City to pursue. The results of the final priorities are listed as follows: 1 City of Albertville Planning & Zoning Commission Minutes April 10, 2012 PROJECT PRIORITIES FROM MAY VISIONING WORKSHOP Votes 14 Complete I-94/County Road 19 freeway access Phases I and II 13 Extension of water under County Road 18 to the golf course 8 Develop senior housing with services 7 Maintain small town character of Albertville 6 Keep guided commercial and industrial land use patterns and zoning as is 4 Clean up yards and outdoor storage in residential neighborhoods 4 Redevelop Main Avenue homes north of 57th Street to commercial uses 3 Maintain high standards for commercial buildings through architecture, site design, landscaping and screening 3 Upgrade County Road 19 between the Outlet Mall and 70th Street 3 Construct a trail along County Road 18 between Kahl Avenue and Janson Avenue to provide access to the High School 2 Upgrade Albertville wastewater treatment facility to address phosphorous removal 2 Investigate programs or ordinances to maintain aging housing stock 2 Investigate means to reduce SAC/WAC charges to promote economic development of hospitality businesses 7. ADJOURN Totman moved, second by Olson to adjourn the meeting at 10:05 p.m. Motion carried unanimously. Alan Brixius, Acting Recording Secretary 2 2 a Albertville ALBERTVILLE CITY COUNCIL Monday, June 4, 2012 MINUTES ALBERTVILLE CITY HALL CALL TO ORDER — PLEDGE OF ALLEGIANCE Acting Mayor John Vetsch called the regular City Council meeting to order at 7:00 p.m. ROLL CALL 7:00 PM Present: Council members John Vetsch, Jillian Hendrickson, Larry Sorensen and Dan Wagner Absent: Mayor Mark Meehan Others Present: Finance Director/Acting City Clerk Tina Lannes, City Attorney Michael Couri, City Planner Alan Brixius, Kimberly Olson new City Clerk, Robert Thistle and Ron Mehl from Dominium Management. CITIZENS OPEN FORUM None APPROVAL OF THE AGENDA CMs Vetsch / Wagner motioned to approve the Monday, June 4, 2012 agenda as amended. Motion carried unanimously. CONSENT AGENDA All items under the Consent Agenda are considered to be routine by the City Staff and will be enacted by one motion. In the event an item is pulled it will be discussed in the order it is listed on the Consent Agenda following the approval of the remaining Consent items. These items will be approved by a separate motion. A. Approve the May 21, 2012 Regular City Council minutes as presented B. Authorize the Monday, June 4, 2012 payment of the claims that includes electronic payments 11.92 EFT- 1201 EFT and check numbers 31025 to 31047 as presented C. Approve the St. Alberts Catholic Church's Gambling Application for an exempt permit to conduct bingo, raffles, paddlewheels, pull -tabs and tipboards for the annual parish festival M:\Public Data\City Council\Council Minutes\2012 Minutes\City Council\M 06 04 2012 (DRAFT).doc Meeting Date: June 18, 2012 City of Albertville DRAFT City Council Minutes June 4, 2012 Page 2 of 3 CMs Sorensen / Hendrickson motioned to approve the consent agenda with the motion carried unanimously. DEPARTMENT BUSINESS City Council Finance Director Tina Lannes introduced Kimberly Olson as the new City Clerk for the City of Albertville. The official start date for Ms. Olson is Monday, June 18, 2012. Planning/Zoning Center Cut Meats Signage (discussion) — City Planner Brixius lead a discussion regarding Center Cut Meats requesting to paint signage on their roof. What they are requesting is not currently allowable. Direction was to stay with the ordinance and not allow the roof signage, but work with the owners on possible alternatives within the ordinance. Dominium Development Townhomes Approve Resolution 2012-028, entitled a Resolution Supporting the proposed Albertville Meadows Townhomes II and an allocation of housing tax credits for the development provided by the Minnesota Housing and Finance Agency CMs Wagner / Hendrickson motioned to approve Resolution No. 2012-028 entitled a Resolution Supporting the Proposed Albertville Meadows Townhomes II and an Allocation of Housing Tax Credits for the Development Provided by the Minnesota Housing and Finance Agency, but not to release the letter and resolution until the City of Albertville receives the support letter from the HOA. Motion carried unanimously. Public Works Director/City Engineer I-94 Project Update Appointment of Temporary Building Inspector CMs Wagner / Sorensen motioned to temporarily appoint St. Michael's Building Official as the City of Albertville Building Official at an hourly rate equal to the Building Official's hourly wage, plus benefits and overhead normally allocated by St. Michael to the Building Official position effective June 15, 2012. Motion carried unanimously. MA Public Data\City Council\Council Minutes\2012 Minutes\City Council\M 06 04 2012 (DRAFT).doc Meeting Date: June 18, 2012 V City of Albertville DRAFT City Council Minutes June 4, 2012 Page 3 of 3 Legal No items to discuss. Administration There were no items placed on the agenda; therefore, nothing to report at this time. ANNOUNCEMENTS and or UPCOMING MEETINGS June 4, 2012 City Council Meeting @ 7:00 p.m. June 8, 2012 Friendly City Days 2-Inning Kickball game 5:00 p.m. June 11, 2012 Arena Board Meeting — Cancelled next meeting July 9, 2012 June 12, 2012 Planning and Zoning Commission Meeting @ 7:00 p.m. June 18, 2012 City Council Meeting @ 7:00 p.m. ADJOURNMENT CMs Vetsch /Hendrickson motioned to adjourn the regular City Council meeting at 8:07 p.m., at which time the Council and staff took a five (5) minute recess before going into a workshop session for the purpose of discussing staffing concerns within the City Hall offices. Motion carried unanimously. Tina Lannes, Finance Director/Acting City Clerk M:\Public Data\City Council\Council Minutes\2012 Minutes\City Council\M 06 04 2012 (DRAFT).doc Meeting Date: June 18, 2012 5 A,lbertville Sand Town Wisp. So 43ty Ufa. ALBERTVILLE CITY COUNCIL WORKSHOP Monday, June 4, 2012 MINUTES ALBERTVILLE CITY HALL ROLL CALL 8:16 PM Present: Council members John Vetsch, Jillian Hendrickson, Larry Sorensen and Dan Wagner Absent: Mayor Mark Meehan Others Present: Finance Director/Acting City Clerk Tina Lannes, City Attorney Michael Couri, City Planner Alan Brixius, Public Works Director/City Engineer Adam Nafstad, Robert Thistle, and Samara Postuma DISUSSION The Ad -Hoc Committee gave an update on the interim administrator and permanent administrator options they have been discussing. The Committee commented that currently there are two scenarios regarding the position of interim administrator. Under the first scenario, an interim administrator would be brought in and a professional search firm would be utilized to recruit the permanent administrator. Scenario two would also include an interim administrator, but the role of the interim administrator would include mentoring Adam Nafstad to take over the administrator position and provide a dual administrator/engineer role. It is the Committee's recommendation that the interim position be pursued and filled as soon as possible. The committee mentioned that they also have proposals in hand from two firms to assist in the search process if desired by Council. The Committee commented that several individuals were contacted regarding the interim position and ultimately they chose to meet with Mr. Thistle concerning the role. Mr. Thistle was introduced to all in attendance as the Committee's recommended candidate for the interim administrator. Mr. Thistle gave a brief synopsis of his career and experience and also mentioned that he is not seeking a long term position. Mr. Thistle commented on both scenarios proposed by the Committee, and with the support of the Council, felt that either scenario could be implemented successfully. Under either scenario, five to seven months was believed to be necessary to fill the permanent position. Mike Couri provided discussion on how Mr. Thistle would be a consultant and not a city employee and recommended that whatever the Council decision may be in terms of the permanent position, it be a unanimous decision. Mr. Couri also recommended that the Council choose a preferred scenario or path for filling the permanent position prior to engaging an M:\Public Data\City Council\Council Minutes\2012 Minutes\City CounciRM 06 04 2012 workshop(DRAFT).doc Meeting Date: June 18, 2012 City of Albertville DRAFT City Council Workshop Minutes June 4, 2012 Page 2 of 2 interim administrator so that person has a clear understanding and direction as to what the role entails. Mr. Thistle commented on moving forward and provided recommendations for goal setting and council direction to staff. Mr. Thistle also commented on the need for the Council to identify and decide on what they are looking for in the permanent position. Some other items discussed in general were communication, tools of communication, regaining of trust, and personnel management. The role of the interim position was also discussed and the discussion included city services, council communications, staff management, transition management, goal setting, budget assistance, and mentoring. The option of using a combination of scenario one and two was also discussed. As such, a search firm would be initially used for developing the needs, goals and rolls for the next person to fill that position. Then once the job description is determined by the Council the next decision would be either use search firms to find candidates or offer the position internally. It was believed that this option would take a minimum of five to seven months as well. Adam Nafstad shared his interest in the position but also shared concerns regarding controversy and the desire to maintain the role of City Engineer. The dual role position was discussed and Nafstad felt that there would be a cost savings and economical advantages to the dual role position. Nafstad also shared that the decision for a permanent administrator should not be based on cost savings alone and more so on the goals and desires of the Council for that position. Nafstad also mentioned that there had been discussions regarding the use of the St. Michael Administrator Bob Derus as a consultant for the interim position. Given the timing of Mr. Derus' upcoming retirement, his extensive qualifications and knowledge of the region, this was presented as another option the Committee could pursue if desired by Council. Discussions concerning economic development and the expectations of the Council were also had, along with defining the desired form of management were also had. It was desired that these discussions continue with the full Council present. Attorney Couri and Mr. Thistle were directed to work together and develop a draft contract for further consideration. Tina Lannes, Finance Director/Acting City Clerk M:\Public Data\City Council\Council Minutes\2012 Minutes\City Council\M 06 04 2012 workshop(DRAFT).doc Meeting Date: June 18, 2012 Mayor and Council Communication sm"1a% <kv ur June 14, 2012 SUBJECT: CONSENT - FINANCE DEPARTMENT — PAYMENT OF BILLS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Authorize the Monday, June 18, 2012 payment of the claims that includes check numbers 1212 EFT —1226 EFT and checks numbered 31048 to 31095 as presented except the bills specifically pulled, which are passed by separate motion. BACKGROUND: The City processes claims on a semi-monthly basis. The bills are approved through their respective departments and administration and passed onto the City Council for approval. KEY ISSUES: Account codes starting with 810 are STMA Arena Expenses/Vendors (bolded) Check No. 31062 Eureka Construction — Payment #1 I-94 project in the amount of $1,040,901.62 as per recommended by the City Engineer Check No. 31094 Wright County Treasurer — City received payment for special assessments that was the county's portion — pass through the payment to county POLICY/PRACTICES CONSIDERATIONS: It is the City's policy to review and approve payables on a semi-monthly basis. FINANCIAL CONSIDERATIONS: City staff has reviewed and recommends approval of payments presented. LEGAL CONSIDERATIONS: The Mayor and Council have the authority to approve all bills pursuant to Minnesota State Law, which requires all bills to be paid in a timely manner, generally within 30 days unless one party determines to dispute the billing. Department/Responsible Person: Finance/Tina Lannes, Finance Director Attachments: Check Register Detail M:\Public Data\Requests for Council Actions (RCA)\2012\06 18 2012 Finance Bills Report (RCA).doc Meeting Date: June 4, 2012 M. Mayor and Council Communication — June 18, 2012 Finance — Payment of Claims A,lbertville Small Town 1Jving. Big City Ufa. Check Detail Register Page 2 of 8 June 2012 Check Amt Invoice Comment 10100 Premier Bank Paid Chk# 001212E 6/18/2012 ABDO, EICK & MEYERS LLP E 604-49660-301 Auditing and Acct g Services $115.62 296171 UD (stormwater acct'g serv) E 601-49450-301 Auditing and Acct g Services $115.62 296171 UD (sewer acct'g sear) E 602-49400-301 Auditing and Acct g Services $115.63 296171 UD (water acct'g serv) E 101-42400-301 Auditing and Acct g Services $115.63 296171 BD acct'g sery E 101-42000-301 Auditing and Acct g Services $115.62 296171 FD acct'g sery E 101-41400-301 Auditing and Acct g Services $115.63 296171 Admin acct'g sery Total ABDO, EICK & MEYERS LLP $693.75 Paid Chk# 001213E 6/18/2012 BOLTON & MENK, INC E 468-49000-303 Engineering Fees $6,895.00 0147478 1-94 WBCD work, CD silt fencs, mtgs, pre -con & preparation E 101-41700-303 Engineering Fees $715.00 0147478 Engineering -rev Neighbor's site plan, E 101-41700-303 Engineering Fees $495.00 0147478 Engineering-Albt Council & staff E 468-49000-303 Engineering Fees $9,556,00 0147479 1-94 WBCD Pre -bid, Construct Admin, Total BOLTON & MENK, INC $17,661.00 Paid Chk# 001214E 6/18/2012 BRAUN INTERTEC CORP E 468-49000-303 Engineering Fees $6,165.50 352276 1-94 Eng-concrete testing, parvement mngt & soil obser. E 468-49000-303 Engineering Fees $9,554,00 352277 1-94 Eng-pavement testing, proj mngt., Total BRAUN INTERTEC CORP $15,719.50 Paid Chk# 001215E 6/18/2012 13213 COMPUTER PRODUCTS E 101-41500-200 Office Supplies (GENERAL) $37.27 560540 FD targus sport laptop sleeve Total 6213 COMPUTER PRODUCTS $37.27 Paid Chk# 001216E 6/18/2012 COURI & RUPPE, P.L.L.P. E 101-41600-304 Legal Fees $6,675.00 062012 Legal staff mtg, discuss City Admin City Clerk/Admin, Shoppes @ TLks E 101-41600-304 Legal Fees $337.50 062012 Legal Fraser Steel set up new TIF E 360-47000-320 Communications (GENERAL) $112.50 062012 Legal (CH refinance city hall bonds) E 468-49000-304 Legal Fees $37.50 062012 1-94 WBCD conf call w/MnDOT refusal Total COURI & RUPPE, P.L.L.P. $7,162.50 Paid Chk# 001217E 6/18/2012 GOPHER STATE ONE -CALL E 601-49450-209 Locates $130.60 40541 UD (sewer) e-mail tickets for located E 602-49400-209 Locates $130.60 40541 UD (water) e-mail tickets for locates Total GOPHER STATE ONE -CALL $261.20 Paid Chk# 001218E 6/18/2012 MVTL LABORATORIES, INC E 601-49450-218 Testing Expenses $113.40 605601 UD (sewer) weekly testing of E 601-49450-218 Testing Expenses $113.40 606890 UD (sewer) weekly testing of Total MVTL LABORATORIES, INC $226.80 Paid Chk# 001219E 6/18/2012 N. A. C. E 101-41910-306 Planning Fees $3,299.23 20260 CH floodplain regulations, mtgs, clerk billboard, planning packet, council E 101-41910-306 Planning Fees $625.00 20261 CH adhoc committee mtg, staff, E 101-41910-306 Planning Fees $745.90 20262 PD park plan visioning study E 101-41910-306 Planning Fees $865.70 20263 PD Central Park Master Plan Total N. A. C. $5,535.83 M:\Public Data\Requests for Council Actions (RCA)\2012\06 18 2012 Finance Bills Report (RCA). doe Meeting Date: June 4, 2012 Mayor and Council Communication - June 18, 2012 Finance - Payment of Claims Check Amt Invoice Comment Page 3 of 8 Paid Chk# 001220E 6/18/2012 USA BLUE BOOK E 601-49450-404 Repair/Maint - Machinery/Equip $200.88 675491 UD (sewer) filter element paper, wand Total USA BLUE BOOK $200.88 Paid Chk# 001221 E 6/18/2012 WRIGHT COUNTY AUD/TREASURER R 101-00000-34950 Other Revenues $1,978.22 86APRIL2012 Wright Cty Trail Court fees R 101-00000-34950 Other Revenues $1,866.35 86MAR2012 Wright Cty Trail Court fees Total WRIGHT COUNTY AUD/TREASURER $3,844.57 Paid Chk# 001222E 6/18/2012 WRIGHT COUNTY SHERIFFS PATROL E 101-42110-307 Police Contract Fees $43,737.00 Patrol-12-06 Sheriff Patrol Protection Total WRIGHT COUNTY SHERIFFS $43,737.00 Paid Chk# 001223E 6/18/2012 MIDWEST LANDSCAPES E 101-45100-530 Capital- Improvements $203.06 104230 PD hackberry 2.5" Total MIDWEST LANDSCAPES $203.06 Paid Chk# 001224E 6/18/2012 VEOLIA ENVIRONMENTAL SERVICES E 101-43100-405 Repair/Maint -Buildings $41.87 G10000021567 PW disposal of RR ties, gr treated compostible material Total VEOLIA ENVIRONMENTAL SERVICES $41.87 Paid Chk# 001225E 6/18/2012 FERRELLGAS E 810-00000-212 Motor Fuels $60.38 5000856693 ARENA motor fuel Total FERRELLGAS $60.38 Paid Chk# 001226E 6/18/2012 WRIGHT-HENNEPIN COOP ELECTRIC E 101-45100-381 Electric Utilities $303.00 1025007-0612 PD electricity sery E 601-49450-381 Electric Utilities $98.37 1025007-0612UD (sewer) electricity sery E 101-43100-381 Electric Utilities $623.63 1025007-0612PW street lighting TL E 810-00000-381 Electric Utilities $146.59 146597-0612 ARENA electricity sery Total WRIGHT-HENNEPIN COOP ELECTRIC $1,171.59 Paid Chk# 031048 6/18/2012 ALLIED WASTE E 605-43200-308 Recycling Contract Fee $6,485.16 0899-002066971 Recycling Sery 05-01-12 to 05-31- Total ALLIED WASTE $6,485.16 Paid Chk# 031049 6/18/2012 ARAMARK UNIFORM SERVICES E 101-43100-417 Uniform Rentals $12.38 629-7505690 PW uniform expense E 101-45100-417 Uniform Rentals $12.39 629-7505690 PD uniform expense E 601-49450-417 Uniform Rentals $12.38 629-7505690 UD (sewer) uniform expense E 602-49400-417 Uniform Rentals $12.39 629-7505690 UD (water) uniform expense E 601-49450-417 Uniform Rentals $14.48 629-7510584 UD (sewer) uniform expense E 602-49400-417 Uniform Rentals $14A8 629-7510584 UD (water) uniform expense E 101-45100-417 Uniform Rentals $14.48 629-7510584 PD uniform expense E 101-43100-417 Uniform Rentals $14.49 629-7510584 PW uniform expense E 101-41940-405 Repair/Maint - Buildings $49.78 629-7515411 CH rugs, towels, mop heads Total ARAMARK UNIFORM SERVICES $157.25 Paid Chk# 031050 6/18/2012 BARCO MUNICIPAL PRODUCTS E 601-49450-210 Operating Supplies (GENERAL) $315.84 IN-201357 UD (sewer traffic cones w/ref collars) Total BARCO MUNICIPAL PRODUCTS $315.84 Paid Chk# 031051 6/18/2012 BERRY COFFEE COMPANY E 101-41400-200 Office Supplies (GENERAL) $56.95 1021599 CH coffee Total BERRY COFFEE COMPANY $56.95 Paid Chk# 031052 6/18/2012 BRITE STITCH MONOGRAMMING E 601-49450-417 Uniform Rentals $60.00 3780 (sewer) monogramed t-shirts E 101-41700-303 Engineering Fees $9.00 3780 PW-Eng monogramed dress shirts E 602-49400-417 Uniform Rentals $60.00 3780 UD (water) monogramed t-shirts E 101-43100-417 Uniform Rentals $60.00 3780 PW monogramed t-shirts E 101-45100-417 Uniform Rentals $60.00 3780 PD monogramed t-shirts Total BRITE STITCH MONOGRAMMING $249.00 Check Amt Invoice Comment M:\Public Data\Requests for Council Actions (RCA)\2012\06 18 2012 Finance Bills Report (RCA).doc Meeting Date: June 4, 2012 10 Mayor and Council Communication - June 18, 2012 Finance - Payment of Claims Page 4 of 8 Paid Chk# 031053 6/18/2012 CEAM C/O LEAGUE OF MN CITIES E 101-41800-433 Dues and Subscriptions $60.00 2012-2013 Eng EngD (PW Dir membership dues) Total CEAM C/O LEAGUE OF MN CITIES $60.00 Paid Chk# 031054 6/18/2012 CENTERPOINT ENERGY E 101-42000-383 Gas Utilities $41.45 14425-5-0612 FD (11350 57th St NE) E 101-45100-383 Gas Utilities $4.80 14425-5-0612 PD (5801 Lander Av NE) E 101-41940-383 Gas Utilities $28.09 14425-5-0612 CH-JobShack (5954 Main Av NE) E 101-41940-383 Gas Utilities $15.18 5361503-5-0612 CH (5975 Main Av NE) E 810-00000-383 Gas Utilities $75.04 5390131-0-6012 ARENA (5898 Lachman Av) E 601-49450-383 Gas Utilities $23.39 5407574-2-0612 UD (11728 63rd St NE sewer) E 101-43100-383 Gas Utilities $64.25 5421442-4-0612 PW (11822 63rd St NE) E 101-41940-383 Gas Utilities $215.86 6759963-9-0612 CH (5959 Main Av NE) Total CENTERPOINT ENERGY $468.06 Paid Chk# 031055 6/18/2012 CHARTER COMMUNICATIONS E 101-42000-417 Uniform Rentals $11.32 0121022-0612FD telephone/cable charges E 810-00000-321 Telephone $76.21 0131702-0612ARENA phone communications Total CHARTER COMMUNICATIONS $87.53 Paid Chk# 031056 6/18/2012 COBORN S E 810-00000-252 Food/Consessions For Resale $20.84 21538176 ARENA napkins, cups, etc for Total COBORN S $20.84 Paid Chk# 031057 6/18/2012 DEHMER FIRE PROTECTION E 101-42000-405 Repair/Maint - Buildings $429.08 6441 FD recharged & tested fire fire extinguishers Total DEHMER FIRE PROTECTION $429.08 Paid Chk# 031058 6/18/2012 DENNY S SMALL ENGINE/CHAIN SAW E 101-45100-404 Repair/Maint - Machinery/Equip $29.95 06072012 PD 45-057 bearings E 101-45100-404 Repair/Maint - Machinery/Equip $15.00 06112012 PD 45-057 bearings Total DENNY S SMALL ENGINE/CHAIN SAW $44.95 Paid Chk# 031059 6/18/2012 DJS TOTAL HOME CARE CENTER -CH E 101-43100-215 Shop Supplies $39.48 61579-1 PW screwdrivers, surface mount tape, silicone adhesive E 601-49450-210 Operating Supplies (GENERAL) $31.16 61612-1 UD (sewer) duct tape, flapper korky pipe thrd E 601-49450-210 Operating Supplies (GENERAL) $12.81 61620-1 UD (sewer) ballcock adj 9-14" E 101-45100-210 Operating Supplies (GENERAL) $25.63 61627-1 PD insect sevin conc pint E 101-45100-210 Operating Supplies (GENERAL) $38.45 61750-1 PD pve pipe, ball valve, elbow, clamp, bushing, drain boil brs E 101-43100-215 Shop Supplies $4.40 61775-1 PW cotter pins, sq machine ke E 601-49450-210 Operating Supplies (GENERAL) $11.75 61832-1 UD (sewer) insultated hot wtr nozzle E 101-41940-210 Operating Supplies (GENERAL) $6.38 61848-1 CH single cut key E 101-45100-210 Operating Supplies (GENERAL) $7.47 61933-1 PD roller cover E 101-45100-404 Repair/Maint - Machinery/Equip $6.05 61962-1 PD 2" couple, pvc bushing, pvc E 101-45100-404 Repair/Maint -Machinery/Equip ($0.32) 61967-1 PD return pvc adapter E 101-45100-210 Operating Supplies (GENERAL) $63.91 61971-1 PD qty 20 50-chain E 101-43100-404 Repair/Maint - Machinery/Equip $9.38 62001-1 PW 1-2" marine clamp, screwdriver E 601-49450-210 Operating Supplies (GENERAL) $38.99 62072-1 UD (sewer) misc notions, snap bolt E 101-45100-210 Operating Supplies (GENERAL) $13.88 62093-1 PD trmmr line com E 601-49450-405 Repair/Maint - Buildings $19.23 62262-1 UD (sewer) check valve sleeve E 601-49450-405 Repair/Maint - Buildings ($19.23) 62305-1 UD (sewer) return check valve sleeve E 101-43100-215 Shop Supplies $37.54 May 2012 PD outstanding invoice E 601-49450-210 Operating Supplies (GENERAL) $19.55 May 2012-1 UD (sewer) outstanding invoice Total DJS TOTAL HOME CARE CENTER -CH $366.51 Paid Chk# 031060 6/18/2012 DJS TOTAL HOME CARE CTR-ARENA E 810-00000-200 Office Supplies (GENERAL) $6.48 21086/1 ARENA rotary file Total DJS TOTAL HOME CARE CTR-ARENA $6.48 Check Amt Invoice Comment Paid Chk# 031061 6/18/2012 EARL F. ANDERSON, INC. M:\Public Data\Requests for Council Actions (RCA)\2012\06 18 2012 Finance Bills Report (RCA).doc Meeting Date: June 4, 2012 11 Mayor and Council Communication - June 18, 2012 Finance - Payment of Claims Page 5 of 8 E 101-43100-226 Sign Repair Materials $585.63 0099048-IN PW no parking cardboard, gm channel traffic cone, bracket gm plates Total EARL F. ANDERSON, INC. $585.63 Paid Chk# 031062 6/18/2012 EUREKA CONSTRUCTION, INC. E 468-49000-300 Professional Srvs (GENERAL) $1,040,901.62 Pay Est. No. 1 1-94 WBCD Road Construction (S.A.P. Total EUREKA CONSTRUCTION, INC. $1,040,901.62 Paid Chk# 031063 6/18/2012 FEDERAL LICENSING, INC E 601-49450-433 Dues and Subscriptions $75.00 WNLS597- UD (sewer) Treatment Plant Fed'I Lic Total FEDERAL LICENSING, INC $75.00 Paid Chk# 031064 6/18/2012 FEDERATED CO-OPS, INC. E 101-45100-210 Operating Supplies (GENERAL) $82.82 F42634 PD tuff stuff 50 lb. E 101-45100-210 Operating Supplies (GENERAL) $282.26 F42751 PD strike three 2.5 gal E 101-45100-210 Operating Supplies (GENERAL) $141.12 F42972 PD strike three 2.5 gal E 101-45100-210 Operating Supplies (GENERAL) $84.41 F43265 PD buccaneer plus 2.5 gal Total FEDERATED CO-OPS, INC. $590.61 Paid Chk# 031065 6/18/2012 FLEXIBLE PIPE TOOL COMPANY E 601-49450-587 Capital - Tools $1,465.74 15281 UD (sewer) rotojet nozzle w-thrust, footage counter Total FLEXIBLE PIPE TOOL COMPANY $1,465.74 Paid Chk# 031066 6/18/2012 GFOA E 101-41500-433 Dues and Subscriptions $370.00 2012 CAFR FinDp 2012 CAFR Award Program app Total GFOA $370.00 Paid Chk# 031067 6/18/2012 HENRYS WATERWORKS, INC E 602-49400-210 Operating Supplies (GENERAL) $810.43 15806 UD (water) curb box adjustment tool, inset top lid, threaded curb box Total HENRYS WATERWORKS, INC $810.43 Paid Chk# 031068 6/18/2012 JOHN DEERE LANDSCAPES INC E 101-45100-210 Operating Supplies (GENERAL) $555.66 61390359 PD adj pop up rotorw/blue noz, utlra pop-up spray body, riser extension, Total JOHN DEERE LANDSCAPES INC $555.66 Paid Chk# 031069 6/18/2012 JOINT POWERS BOARD E 602-49400-371 JPDIST COMBO $912.31 062012-June JP portion of Dist II Low E 602-49400-300 Professional Srvs (GENERAL) ($243.90) 062012-June JP portion of collection fees E 206-49400-378 JP WAC $4,002.00 062012-June JP portion of WAC A/R E 602-49400-376 JP Fed Wtr Test $432.05 062012-June JP portion of Fed wtr test E 602-49400-374 JP Dist Pen $479.54 062012-June JP portion of Dist Pen E 602-49400-372 JP Dist $17,195.74 062012-June JP portion of Distribution E 602-49400-377 JP Fed Wtr Test Pen $15.88 062012-June JP portion of Fed wtr test pen Total JOINT POWERS BOARD $22,793.62 Paid Chk# 031070 6/18/2012 LEAGUE OF MINNESOTA CITIES E 101-41400-399 Miscellaneous $204.20 2012 DirectoryCH 2O12 LMC Directories Total LEAGUE OF MINNESOTA CITIES $204.20 Paid Chk# 031071 6/18/2012 MCFOA E 101-41300-433 Dues and Subscriptions $35.00 2012-2013 CH (Cty Admin membership per Total MCFOA $35.00 Paid Chk# 031072 6/18/2012 MENARDS - BUFFALO E 101-45100-530 Capital - Improvements $252.62 24000 PD shocvel, rotary file, large angle parking' sign, grain scoop Total MENARDS - BUFFALO $252.62 Paid Chk# 031073 6/18/2012 MINNESOTA MUNICIPAL UTILITIES E 601-49450-433 Dues and Subscriptions $35.50 39351 UD (sewer) pre -employment testing Total MINNESOTA MUNICIPAL UTILITIES $35.50 Paid Chk# 031074 6/18/2012 MINNESOTA RURAL WATER ASSOCIAT E 601-49450-208 Training and Instruction $100.00 2012 UD (sewer) Wasterwater Conf Total MINNESOTA RURAL WATER $100.00 Check Amt Invoice Comment M:\Public Data\Requests for Council Actions (RCA)\2012\06 18 2012 Finance Bills Report (RCA).doc Meeting Date: June 4, 2012 12 Mayor and Council Communication - June 18, 2012 Finance - Payment of Claims Page 6 of 8 Paid Chk# 031075 6/18/2012 MTR SERVICES INC E 602-49400-408 R/M - Water Services $281.25 4406a UD repair concrete @ 11720 54th St E 604-49660-406 R/M - Collection System $467.50 4413a UD (stormwater) clean ditch & remove E 604-49660-406 R/M - Collection System $148.75 4418a UD (stormwater) clean ditch near 50th Total MTR SERVICES INC $897.50 Paid Chk# 031076 6/18/2012 NAPA AUTO PARTS E 101-42000-404 Repair/Maint - Machinery/Equip $13.59 816651 FD misc parts E 101-45100-404 Repair/Maint - Machinery/Equip $70.35 818046 PD hose, cap, stp bmpr E 101-451007404 Repair/Maint - Machinery/Equip $&93 821330 PD hose end E 101-41940-404 Repair/Maint - Machinery/Equip $137.59 821610 CH-bldg cap screw, disc brake pad, E 101-45100-404 Repair/Maint - Machinery/Equip $28.19 821610 PD emblem E 101-41940-404 Repair/Maint - Machinery/Equip $40.01 821612 CH-bldg stp bmpr rcve cls II E 101-45100-404 Repair/Maint- Machinery/Equip $181.02 821744 PD class 1 LED light E 101-45100-404 Repair/Maint - Machinery/Equip $68.26 822092 PD sae 5W20 motor oil, glove Total NAPA AUTO PARTS $545.94 Paid Chk# 031077 6/18/2012 NEXTERA COMMUNICATIONS E 101-43100-321 Telephone $182.66 94666-0612 PW IP phone E 602-49400-321 Telephone $27.40 94666-0612 UD (sewer) IP phone E 101-42400-321 Telephone $63.93 94666-0612 BD IP phone E 601-49450-321 Telephone $27.40 94666-0612 UD (water) IP phone E 101-41940-321 Telephone $547.96 94666-0612 CH IP switchboard phone E 101-42000-321 Telephone $63.93 94666-0612 FD IP phone Total NEXTERA COMMUNICATIONS $913.28 Paid Chk# 031078 6/18/2012 NORTHERN DEWATERING, INC. E 604-49660-399 Miscellaneous $1,494.11 28276 UD (stormwater) rental of a hoses Total NORTHERN DEWATERING, INC. $1,494.11 Paid Chk# 031079 6/18/2012 NORTHERN TOOL & EQUIPMENT E 101-43100-215 Shop Supplies $243.35 0193014101 PW wobble socket externsion, grip pliers, hitch pins, framing hammer, Total NORTHERN TOOL & EQUIPMENT $243.35 Paid Chk# 031080 6/18/2012 NORTHLAND SECURITIES E 101-41000-300 $3,520.00 2921 Fraser Streel TIF 14 Total NORTHLAND SECURITIES $3,520.00 Paid Chk# 031081 6/18/2012 OMANN BROTHERS E 101-43100-400 Repair/Maint - Paved Rd $122.83 9619 PW A.C. mix Total OMANN BROTHERS $122.83 Paid Chk# 031082 6/18/2012 PARK NICOLLET E 101-42000-305 Medical - Physicals $88.00 P60964526- FD physical (Daly, Timothy) Total PARK NICOLLET $88.00 Paid Chk# 031083 6/18/2012 PIPELINE SUPPLY, INC. E 601-49450-405 Repair/Maint Buildings $41.83 S2964539.001 UD (sewer) 4" test ball, extension cord E 601-49450-405 Repair/Maint - Buildings $20.17 S2964539.001 UD (sewer) silent sump pump check Total PIPELINE SUPPLY, INC. $62.00 Paid Chk# 031084 6/18/2012 PLAYPOWER E 101-45100-530 Capital - Improvements $416.55 1400164807 PD ATV Assy blu/ylw f/cyl.spring, Total PLAYPOWER $416.55 Paid Chk# 031085 6/18/2012 RECREATION, SPORTS & PLAY INC E 101-45100-530 Capital - Improvements $1,011.04 G239-U8 PD 8' HD picnic table w/pine planks E 101-45100-210 Operating Supplies (GENERAL) $200.93 SN7X212M- PD Jr soccer net Total RECREATION, SPORTS & PLAY INC $1,211.97 Paid Chk# 031086 6/18/2012 REDS PORTABLE TOILETS E 101-45100-530 Capital -Improvements $1,381.89 12835 PD portable biffs (8weeks-summer) Total REDS PORTABLE TOILETS $1,381.89 Check Amt Invoice Comment M:\Public Data\Requests for Council Actions (RCA)\2012\06 18 2012 Finance Bills Report (RCA).doc Meeting Date: June 4, 2012 13 Mayor and Council Communication - June 18, 2012 Finance - Payment of Claims Page 7 of 8 Paid Chk# 031087 6/18/2012 SPECIALTY TURF & AG, INC E 101-45100-210 Operating Supplies (GENERAL) $87.64 132907 PD round top sod pins, ultra nustraw Total SPECIALTY TURF & AG, INC $87.64 Paid Chk# 031088 6/18/2012 STORM FENCE REPAIR & MORE E 101-45100-530 Capital - Improvements $978.00 1037 PD central park replaced 83' ga wire, rail to fence Total STORM FENCE REPAIR & MORE $978.00 Paid Chk# 031089 6/18/2012 SUN PRESS & NEWSPAPERS E 101-41100-351 Legal Notices Publishing $6&80 1104482BROP1 CH -retail display rate E 101-41100-351 Legal Notices Publishing $164.55 1111289 LEG TIF 14 (Fraser PH notice) Total SUN PRESS & NEWSPAPERS $233.35 Paid Chk# 031090 6/18/2012 T-MOBILE - 828941579 E 101-41750-323 Cell Phones $107.98 828941579-0612 PW-CE cell phone E 101-41500-323 Cell Phones $107.98 828941579-0612 FinDp cell phone E 101-42000-321 Telephone $117.98 828941579-0612 FD cell phone E 101-41300-321 Telephone $107.98 828941579-0612 AdDp cell phone E 101-41400-323 Cell Phones $107.97 828941579-0612 CtyClk cell phone Total T-MOBILE - 828941579 $549.89 Paid Chk# 031091 6/18/2012 T-MOBILE - ACCOUNT 828939188 E 601-49450-323 Cell Phones $48.66 828939188-0612 UD (sewer) cell phone E 602-49400-323 Cell Phones $48.65 828939188-0612 UD (water) cell phone E 101-45100-323 Cell Phones $48.65 828939188-0612 PD cell phone E 101-42000-321 Telephone $48.65 828939188-0612 FD cell phone E 101-43100-323 Cell Phones $48.65 828939188-0612 PW cell phone E 101-42400-321 Telephone $48.66 828939188-0612 BD cell phone Total T-MOBILE - ACCOUNT 828939188 $291.92 Paid Chk# 031092 6/18/2012 TRI STATE PUMP & CONTROL INC E 601-49450-404 Repair/Maint - Machinery/Equip $1,210.16 32692 ID (sewer) parts, labor -repair Landia oil sealing ring, wear brush pop gear Total TRI STATE PUMP & CONTROL INC $1,210.16 Paid Chk# 031093 6/18/2012 TRUEMAN WELTERS E 101-45100-404 Repair/Maint - Machinery/Equip $57.71 IC60455 PD parts counter - belt + freight Total TRUEMAN WELTERS $57.71 Paid Chk# 031094 6/18/2012 WRIGHT COUNTY TREASURER R 101-00000-34950 Other Revenues $366.65 Certified taxes paid to City 10603 50th R 101-00000-34950 Other Revenues $336.65 Certified taxes paid to City 10614 49th R 101-00000-34950 Other Revenues $212.54 Certified taxes paid to City 5697 Total WRIGHT COUNTY TREASURER $915.84 Paid Chk# 031095 6/18/2012 XCEL ENERGY E 101-45100-381 Electric Utilities $109.55 323962071-0612 PD central park electricity -lighting E 101-41940-381 Electric Utilities $1,351.42 323962071-0612 PW City faciliies lighting E 601-49450-381 Electric Utilities $5,008.87 323962071-0612 UD (sewer) lighting/electricity E 101-42000-381 Electric Utilities $317.08 323962071-0612 FD facility electricity/lighting E 101-43100-381 Electric Utilities $351.35 323962071-0612 PW facility electricity -lighting E 101-43160-381 Electric Utilities $16.32 323962071-0612 PW parking lots electricity -lighting E 101-43160-381 Electric Utilities $380.07 323962071-0612 PW unit signal lighting E 101-43160-381 Electric Utilities $4.48 323998387-0612 PD Oakside Park E 101-43160-381 Electric Utilities $5,289.20 324005025-0612 PW street lighting E 101-41940-381 Electric Utilities $22.15 324528543-0612 PW 5898 LaBeaux lighting Total XCEL ENERGY $12,850.49 M:\Public Data\Requests for Council Actions (RCA)\2012\06 18 2012 Finance Bills Report (RCA).doc Meeting Date: June 4, 2012 14 Mayor and Council Communication — June 18, 2012 Finance — Payment of Claims 10100 Premier Bank $1,202,152,90 Fund Summary 10100 Premier Bank 101 GENERAL FUND $82,673.70 206 WAC FUND $4,002.00 360 CSAH 19, 2007A $112.50 468 CSAH 19 RAMPS/I 94 Project $1,073,109.62 601 SEWER FUND $9,345.95 602 WATER FUND $20,292,45 604 STORM WATER $2,225.98 605 Recycling Fund $6,485.16 700 INVESTMENTS $3,520.00 810 STMA ARENA $385.54 $1,202,152.90 M:\Public Data\Requests for Council Actions (RCA)\2012\06 18 2012 Finance Bills Report (RCA).doc Page 8 of 8 Meeting Date: June 4, 2012 lb DRAFT FOR PUBLIC HEARING CITY OF ALBERTVILLE (MINNESOTA) MODIFICATION TO DEVELOPMENT PROGRAM FOR MUNICIPAL DEVELOPMENT DISTRICT NO. 1 TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 14 (FRASER STEEL II) ADOPTED (RESOLUTION NO. 2012-XXX) PUBLIC HEARING: JUNE 18, 2012 PLAN APPROVED: XXX XX, 2012 DISTRICT CERTIFIED: _, 2012 Northland Securities, Inc. 45 South 7th Street, Suite 2000 NORTHLAND STRATEGIES Minneapolis, MN 55402 . (800) 851-2920 ` Member NASD and SIPC W. TABLE OF CONTENTS ARTICLE I - INTRODUCTION AND DEFINITIONS.........................................................I Section 1.01 Introduction......................................................................................1 Section 1.02 Definitions .........................................................................................1 Section 1.03 Plan Preparation...............................................................................1 ARTICLE II - DEVELOPMENT PROGRAM........................................................................2 Section2.01. Overview...........................................................................................2 Section 2.02 Statement of Objectives ........................ .......... :............... ................. 2 Section 2.03 Boundaries of. Development District.............................................3 Section 2.04 Development Activities...................................................................3 Section. 2.05 Payment of Public Costs..................................................................4 Section 2.06 Environmental Controls; Land Use Regulations .........................4 Section 2.07 Park and Open Space to be Created..............................................4 Section 2.08 Proposed Reuse of Property...........................................................4 Section 2.09 Administration and Maintenance of Development District ......4 Section2.10 Relocation..........................................................................................5 Section 2.11 Amendments.....................................................................................5 ARTICLE III - TAX INCREMENT FINANCING PLAN.......................................................5 Section 3.01 Statutory Authority..........................................................................5 Section 3.02 Planned Development.....................................................................5 3.02.1 Project Description...........................................................................5 3.02.2 City Plans and Development Program..........................................5 3.02.3 Land Acquisition..............................................................................5 3.02.4 Development Activities...................................................................5 3.02.5 Need for Tax Increment Financing................................................5 Section 3.03 Tax Increment Financing District...................................................6 3.03.1 Designation.......................................................................................6 3.03.2 Boundaries of TIF District...............................................................6 3.03.3 Type of District.................................................................................7 Section 3.04 Plan for Use of Tax Increment........................................................7 3.04.1 Estimated Tax Increment.................................................................7 3.04.2 Development Costs..........................................................................8 3.04.3 Estimated Sources and Uses of Funds...........................................8 3.04.4 Administrative Expense..................................................................8 3.04.5 County Road Costs...........................................................................9 3.04.6 Bonded Indebtedness.......................................................................9 3.04.7 Duration of TIF District...................................................................9 3.04.8 Estimated Impact on Other Taxing jurisdictions .........................9 3.04.9 Prior Planned Improvements.........................................................9 ARTICLE IV - ADMINISTERING THE TIF DISTRICT....................................................10 Section 4.01 Filing and Certification..................................................................10 Section 4.02 Modifications of the Tax Increment Financing Plan..................10 Section 4.03 4-Year Knockdown Rule................................................................10 Section 4.04 Pooling/5-Year Rule........................................................................11 17 Section 4.05 Financial Reporting and Disclosure Requirements ...................11 Section 4.06 Business Subsidy Compliance......................................................12 EXHIBITS.......................................................................................................................... 13 Exhibit I - Present Value Analysis..........................................................................13 Exhibit 11 - Projected. Tax Increment ......................................................................1.4 Exhibit .I.I.I-I►npact on Other Taxing Juri.sdiction.s..............................................15 Exhibit IV - Estimated Tax Increment Over Life of District...............................1.6 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 14 ARTICLE I — INTRODUCTION AND DEFINITIONS SECTION 1.01 INTRODUCTION The City of Albertville proposes to provide tax increment financing assistance to facilitate pubic improvements and private development projects in the central business district and surrounding area of the City. This document contains the plan. for achieving the objectives of the Development Program for Municipal Development District No. 1 through the establishment and use of Tax Increment Financing (Economic Development) District No. 14. SECTION 1.02 DEFINITIONS For the purposes of this document, the terms below have the meanings given in this section, unless the context in. which they are used indicates a. different meaning: 1. "City" means the City of Albertville, Minnesota.. 2. "City Council" means the City Council of the City. 3. "Coutity" means Wright County, Minnesota. 4. "Developer" means a party undertaking construction or renovation in the TIF District. 5. "Development District" means Municipal Development District No. I in the City, created and established pursuant to and in accordance with the Development District Act. 6. "Development District Act" means Minnesota Statutes, Sections 469.1.24 through, 469.1.34, as amended and supplemented from time to time. 7. "Development Program" means the Development Program for the Development District, as amended and supplemented from time to time. 8. "Project Area" means the geographic area of the Development District. 9. "School District" means St. Michael -Albertville Public Schools (ISD #885). 10. "State." means the State of Minnesota. 11. "TIF Act" means Minnesota Statutes, Sections 469.174. through 469.1799, both inclusive. 12. "TIF District" means Tax Increment Financing (Economic Development) District No. 14 (Fraser Steel 11). 1.3. "TIF Plan." means the tax increment financing plan. for the TIF District (this document). SECTION 1.03 PLAN PREPARATION This document was prepared for the City by Northland Securities, Inc. Project data was provided by City Staff and the Developer. ADOPTED (XX/XX/12) 19 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 14 ARTICLE II - DEVELOPMENT PROGRAM SECTION 2.01 OVERVIEW The City established Municipal Development District No. 1. and the related Development Program as a tool to achieve the objectives described in Section 2.02. Development District No. 1 was .first approved. in April, 1981., and. has been. modified subsequently. The Development District serves as the "project area" for tax increment financing districts established within its boundaries. The Development Program describes the City's objectives for the development of this area and the use of tax increment financing. Current modifications to the Development Program include budget revisions to coincide with the Finance .Plan. relating to Economic Development Tax Increment Financing (TIF) District No. 14. This modified Development Program is intended to restate and expand on the original program and all prior amendments hereto, which are incorporated herein by reference. Nothing in this modification is intended to supersede or alter the activities described in the original. Development Program. SECTION 2.02 STATEMENT OF OBJECTIVES The modifications of the Development District in the City pursuant to the Development District Act are necessary and in the best interests of the City a:nd its residents and are necessary to give the City the ability to rneet certain public purpose objectives that would. not be obtainable in the foreseeable future without intervention by the City in the normal development process. The current Project is consistent with the established "Statement of Objectives" documented by the original Development Program.. SECTION 2.03 BOUNDARIES OF DEVELOPMENT DISTRICT The current boundaries of the existing Development District No. 1. are depicted in Figure 2-1. Modifications to the Development Program do not expand the current geographic designation of Development District No. 1. The City is not acting to modify the boundaries. Within Development District No. 1., the City of. Albertville has previously established TIF Districts No. 1. through 1.3, inclusive. ADOPTED (XX/XX/12) 20 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 14 SECTION 2.06 ENVIRONMENTAL CONTROLS; LAND USE REGULATIONS All rnunicipat actions, public improvements and private development shall be carried out in. a manner consistent with the current Development Program and existing environmental controls and all applicable Land Use Regulations. SECTION 2.07 PARK AND OPEN SPACE TO BE CREATED Park and open space within the Development District if created. will be created in accordance with the current Development Program and City's Comprehensive Plan and zoning and subdivision ordinances. SECTION 2.08 PROPOSED REUSE OF PROPERTY The current Development Program anticipates that the City may acquire property and. reco:rIvey the same to another entity. All parcels in the Development District are eligible for acquisition. In acquiring land, the City Council will require the execution. of a binding development agreement with respect thereto and evidence that Tax Increments or other ftmc[s will be available to repay the Public Costs associated with the proposed acquisition. It is the intent of the City to negotiate the acquisition. of property whenever possible. Appropriate restrictions regarding the reuse and redevelopment of property shall be incorporated into any Development Agreement to which. the City, is a party. SECTION 2.09 ADMINISTRATION AND MAINTENANCE OF DEVELOPMENT DISTRICT Maintenance and operation of the Development District will be the responsibility of the City Administrator who shall serve as administrator of the Development District. Each year the' Administrator will submit to the Authority the maintenance and operation budget for the following year. The Administrator will administer the Development District pursuant to tlie provisions of Section 469.1.31. of the Development District Act; provided, however, that such p owersmavonlv be exercised at the direction of the City Council. No action taken. by the Administrator pursuant to the above -mentioned powers shall be effective without authorization by the City Council. SECTION 2.10 RELOCATION Any person or business that is displaced as a result of the Development Program will be relocated in accordance with. Minnesota. Statutes, Section 1.17.50 to 1.17.56. The City accepts its responsibility for providing for relocation assistance pursuant to Section 469.133 of the Development District Act. SECTION 2.11 AMENDMENTS The City reserves the right to alter and amend. the Development Program through. future m.odifications, subject to the provisions of state law regulating such. action.. The City specifically continues to reserve the right to enlarge or reduce the size of the Development District, the Development Program and the Public Costs of the Development. ADOPTED (XX/XX/12) 4 22 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 14 ARTICLE III - TAX INCREMENT FINANCING PLAN SECTION 3.01 STATUTORY AUTHORITY Tax Increment Financing (Economic Development) District No. 14 and this TIF Plan are established under the authority of the TIF Act (Minnesota Statutes 2011). For future reference in administering the TIF Plan, a copy of the TIF Act (201.1.) will be included. in the TIF record book for TIF District 1.4. SECTION 3.02 PLANNED DEVELOPMENT 3.02.1 Project Description The City has been working to attract and retain businesses and new development into the area in and around the central. business district. The proposed development consists of the construction of an approximately 25,000 square foot building to expand an. existing 45,000 square foot manufacturing facility. The project has been anticipated since 2007 but due to economic conditions was delayed. Tax Increment Financing District No. 13 was previously adopted on June 18, 2007 by the City for the purpose of providing assistance to support the expansion. At the. time TI:F District No. 1.3 was adopted, the City :reasonably expected that the project would have developed within. Development District No.1. in. 2007. The City Council. acted on May 7, 2012.to authorize the decertification of TIF District No. 1.3. The geographic area for TIF District No. 14 is the same as for TIF District No. 13. The parcel numbers have changed since 2007 as a result of a re -plat of prior existing platted parcels into a single parcel that now will comprise TIF District No. 14. 3.02.2 City Plans and Development Program In addition to achieving the objectives of the Development Program, the proposed. development is consistent with and works to achieve the development objectives of the City. The TIF Plan for the TIF District conforms to the general plan for development of the City as a whole. 3.02.3 Land Acquisition No acquisition of land by the City within the TIF District is anticipated. 3.02.4 Development Activities As of the date of approval of this TIF Plan, the City anticipates that activities proposed in this TIF Plan may be subject to contracts. The City anticipates entering into a contract with a Developer to provide tax increment financing assistance for site improvements. 3.02.5 Need for Tax Increment Financing In the opinion of the City, the. proposed development would not reasonably be expected to occur solely through private investment within the foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would. be less than. the increase in. the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan. The reasons and facts supporting this finding include the following. The proposed development was anticipated to occur in 2007, with tax increment from the City, but due to the economic downturn, the Developer was unable to proceed even with. assistance. Although. the Developer is now prepared to proceed with the development, the Developer still needs the previously anticipated and planned for tax increment assistance. To facilitate the proposed expansion by the Developer, the City has designed and developed property that is immediately adjacent to the existing facility thereby providing the opportunity for th.e Developer to grow ADOPTED (XX/XX/12) 23 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 14 and expand their existing operations. The City has determined that no other development is expected to occur on the site that would. create a greater inarket value than the proposed. expansion by the Developer, after adjusting .for the tax increment assistance. Anof the site shows that continued and expanded industrial use results in a greater increase in market value than other possible land uses. Furthermore, given the location. of the property and the property's zoning classification, hou.sin.g or other commercial uses are not appropriate or likely for the site. The City finds that without the use of tax increment financing, the proposed and preferred economic development project will not occur. A comparative analysis of estimated market values both with and without establishment of the TIF Distract and the u.se of tax increments has been performed as described above and. is shown in. Exhibit I. This analysis indicates that the increase in estimated market value of the proposed development (less the present value of the projected tax increments for the maximum duration permitted. by the TIF Plan) exceeds the estimated market value of the site prior to the establishment of the TIF District. SECTION 3.03 TAX INCREMENT FINANCING DISTRICT 3.03.1 Designation This TIF District is designated Tax Increment Financing (Economic Development) District No. 14 (Fraser Steel II). 3.03.2 Boundaries of TIF District The boundaries of the TIF District are depicted in. Figure 3-1. The TIF District includes the following parcel.: 1.01135001.01.0. FIGURE 3-1 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 14 1101800062300 022002050 71010 [district No. f %. 101135001010 3.03.3 Type of District r 1931135000010 fl 101135002010 101135000020 The TIF District is established as an "economic development" district pu.rsu.ant to Minnesota. Statutes Sections 469.174, Subd. 12 and 469.176, Subd. 4c. These sections of the TIF Act allow tax increments from an economic development district maybe used to provide improvements, ADOPTED (XXJXXi12) W TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 14 loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if all the following conditions are met: (1) it will discourage commerce, industry; or manufacturing from moving their operations to another state or municipality; or (2) it will result in increased employment in the state; or (3) it will. result in preservation and enhancement of the tax base of the state. Revenue derived from tax increment from an economic development district may not be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary, facilities, if more than 15 percent of the buildings and. facilities (determined on the basis of. square .footage) are used for a. purpose other than: (1) the manufacturing or production of tangible personal. property, including processing resulting in the change in condition of the property; (2) warehousing, storage, and distribution of tangible personal property, excluding retail sales; (3) research and development related to the activities listed in clause (1) or (2); (4) telemarketing if that activity is the exclusive use of the property; (5) tourism. facilities; (6) qualified border retail facilities; or (7) space necessary for and related to the activities listed in clauses (1) to (6). The current project within the TIF District relates to plans by the Developer to expand. their existing manufacturing facility in the City. SECTION 3.04 PLAN FOR USE OF TAX INCREMENT 3.04.1 Estimated Tax Increment The Original. Tax Capacity of value of. the TIF District will. be set by the County upon. request for certification. The Original. Tax Capacity value may change over time based on the use and tax classification of each parcel. For the purposes of this Plan, the estimated Original Tax Capacity is $35,018. This amount is based on the most recent published Estimated Market Value of the property of $1,788,400 with tax capacity value calculated for commercial -industrial property. The total tax capacity value of the property after completion. of planned development is estimated to be $57,268. This amount is based on a total Estimated Market Value of $2,938,400 with property classified as commercial -industrial. The difference between the total tax capacity value and the Original Tax Capacity value is the Captured Tax Capacity Value for the creation of. taxincrement. It is the City's intent to retain 100% of the Captured. Tax Capacity Value for the life of. tlue TIF district. The total local tax rate for taxes payable in 2012 is 142.720%. The TIF Plan assumes that this rate will be set as the Original Tax Rate for the District. Under these assumptions, the estimated. annual tax increment upon. completion of all. phases of redevelopment will. be $31.,755. The actual tax increment will vary according to the certified Original Tax Capacity value and Original Tax Rate, the actual property value produced by the proposed development and the changes in property value and State tax policy over the life of the district. Exhibit 11 contains the projected tax increment over the life of the District. ADOPTED (XX/XX/12) 7 25 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 14 3.04.2 Development Costs The City will. use tax increment to reimburse the Developer for Site Improvement Costs related to redevelopment of property. The City reserves the right to use any other legally available revenues to finance or pay for public costs associated with the development in the TIF District. 3.04.3 Estimated Sources and Uses of Funds The estimated sources of revenue, along with the estimated public costs of the TIF District, are itemized in. Figure 3-3. These estimates are based on the best available information in the sources and uses of funds. Such costs are eligible for reimbursement from tax increments, and other listed sources of revenue from the TIT District. FIGURE 3-3 ESTIMATED SOURCES AND USES OF FUNDS Total Estimated Tax Increment Revenues (from tax increment generated by the district) Tax increment revenues distributed from the county $342,000 Interest and investment earnings $2,0D0 Sales/lease proceeds $0 Market value homestead credit $0 Total Estimated Tax Increment Revenues $344,000 Estimated Project/Financing Costs (to be paid or financed with tax increment) Project costs $0 Land/bui(ding acquisition. $0 Site improvements/preparation costs $108,000 Utilities $42,000 Other qualifying improvements $160,000 Construction of affordable housing $0 Small city authorized costs, if not already included above $0 Administrative costs $34,000 Estimated Tax Increment Project Costs $344,000 Estimated financing costs Interest expense $0 Total Estimated Project/Financing Costs to be Paid from Tax Increment $344,000 Estimated Financing Total amount of bonds to be issued $310,000 The Authority reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated project/financing costs to be paid from tax increment is not increased. 3.04.4 Administrative Expense The City will retain ten percent (10%) of annual tax increment revenues, less fees paid to the State and County. The City will use these monies to pay for and reimburse the City for costs of administering the TIF district allowed by the TIF Act. Based on current projections, this amount is estimated to be $34,266 over the proposed life of the TIF District. Anticipated. administrative expenses of the TIF District include annual audit of the fund .for TIF District, preparation of annual. reporting, legal publication of annual report, and administration of the development agreement. The City may also .reimburse itself for costs associated with the establishment of the ADOPTED (XX/XX/12) 8 26 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 14 TIF District, including the TIF Plan and the development agreement. 3.04.5 County Road Costs The proposed. development will not substantially :increase the use of county roads and. necessitate the need to use tax increments to pay for county road improvements. 3.04.6 Bonded Indebtedness The City anticipates it will reimburse the developer for qualified expenditures with a bond to be paid with. TIF revenues. The form of the bond. is anticipated to be tax increment financing (TIF) pay -as -you. -go (PAYG) obligations. The bond may be a. contractual commitment in. a development agreement, a separate contract -to -pay or a separately issued PAYG note. Regardless of its form, it is defined as a "bond" in the TIF Act (Minnesota Statutes 469.174, Subd. 3). Payments by the City to the developer on the bond are contingent on the availability of T:IF revenues. The Developer, not the City, carries the risk that T.I..F revenues will not be sufficient to cover the bond payments. Failure by the City to :make bond payments because of insufficient TIF revenues does not constitute a default. A PAYG Bond does not constitute a general obligation of the municipality and is not included when calculating debt limits. The City anticipates it may loan or advance money from its general fund or any other fund it has legal authority to use to finance qualifying TIF expenditures, such as costs of administering the TIF District. An interfund loan or advance is defined in the TIF Act as a bond or a qualifying obligation. Before money is transferred, advanced, or spent, the loan or advance must be authorized by resolution of the City. For the loan or advance to be repaid with TIF revenues, an interfund loan agreement must be in place before any loans or advances are made. The terms and. conditions for repayment of the loam must be in writing and include, at minimum, (i) the principal amount of the loan. or advance, (ii) the interest rate to be charged, and (iii) its maximum term. The maximum rate of interest that can be charged. is limited to the annual rate charged by the state courts or by the Department of Revenue, whichever is greater. 3.04.7 Duration of TIF District The TIF Act a] lows tax increments to be collected from the TIF District for a period not to exceed eight (8) years .from the date of receipt of the first tax increment. The City reserves the right to collect tax increments for this period to undertake additional eligible activities in the TIF District and the Development District. Under the current schedule .for development, the first tax increment will be collected in 201.4 (construction completed in 2012) creating the authority to collect tax increments through 2022. The City expects to request decertification of the TIF District after reimbursement of all eligible public costs and administrative expense but no later than after the final receipt of taxes payable estimated. to occur in 2022. 3.04.8 Estimated Impact on Other Taxing Jurisdictions Exhibits III and IV show the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The City believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed. development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The City anticipates minimal impact of the proposed development on. city -provided services. A slight increase in water and sewer usage is expected.. I.t is anticipated that there may be a slight but manageable increase in police and fire protection duties due to the development. 3.04.9 Prior Planned Improvements There have been no building permits issued in the last 18 months in conjunction with any of ADOPTED (XX/XX/12) 27 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 14 the properties within the TIF District. The City will include this statement with the, request for certification to the County Auditor. If building permits had been issued during this time period, then the County Auditor would increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. ARTICLE IV — ADMINISTERING THE TIF DISTRICT SECTION 4.01 FILING AND CERTIFICATION The filing and. certification. of the TIF Plan. consists of the following steps: 1. Upon adoption of the TIF Plan, the City shall submit a copy of the TIF Plan to the Minnesota Department of Revenue and the Office of the State Auditor. 2. The Authority shall request that the County Auditor certify the original net tax capacity and net tax capacity rate of the T.I.F District. To assist the County Auditor :i:n this process, the City shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a. listing of any prior planned improvements. 3. The City shall send the County Assessor any assessment agreement establishing the minimum market value of land and improvements in the TO District, and shall :request that the County .Assessor review and. certify this assessment agreement as reasonable. SECTION 4.02 MODIFICATIONS OF THE TAX INCREMENT FINANCING PLAN The City reserves the right to modify the TIF District and the TIF Plan. Under current State Law; the following actions can only be approved only after satisfying all the necessary requirements for approval. of the or gina.l TIF Plan (including notifications and public hearing): ■ Reduction or enlargement in. the geographic area of the Development District or the TIF District. ■ Increase in the amount of bonded. indebtedness to be incurred. ■ Increase in the amount of capitalized interest. ■ Increase in that portion of the captured net tax capacity to be retained by the City. ■ Increase in the total estimated public costs. ■ Designation of additional property to be acquired. by the City. Other modifications can be made by resolution of the City Council. In addition, the original approval process does not apply if (1) the only modification is elimination of parcels from the TIF District and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity, or the City agrees that the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. The City must notify the County Auditor of any modification that reduces or enlarges the geographic, area of the TIF District. The geographic area of. the TIF District may be reduced. but not enlarged after five years following the date of certification. SECTION 4.03 4-YEAR KNOCKDOWN RULE The 4-Year Knockdown Rule requires that if after four years from certification of the TIF ADOPTED (XX/XX/12) 10 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 14 District no demolition, rehabilitation, renovation or site improvement, including a qualified improvement of an. adjacent street, has commenced on a parcel located. within the TIF District, then that parcel. shall be excluded .from the TIF District and the original. net tax capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The City must submit to the County Auditor, by February 1 of the fifth year, evidence that the :required. activity has taken place for each parcel in the TIF District. If. a parcel is excluded from the TIF District and the City or owner of the parcel subsequently commences any of the above activities, the City shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add. such amount to the original net tax capacity of the TIF District. SECTION 4.04 POOLING/5-YEAR RULE At least 80% of the tax increments (net of administrative expenses) from this TIF District (the "In -District Percentage") must be expended on. activities within. the TIF District, including payment on any bonds for which the proceeds were used to finance activities within the TIF District. Up to 20% of the tax increments from this TIF District may be used to finance activities outside the TIF District but within the Development District. ) All administrative expenses are for activities outside of the district, except that if the only expenses for activities outside of the district are for the purposes described in. Minnesota Statute, 469.1.763, Subd. 2(d.). Tax increments are considered to have been "spent" within the TIF District if such amounts are: • actually paid to a third party for activities performed within the TIF District within five years after certification. of the district; • used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the five-year period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund. • used. to :make payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which. were entered into within five years after certification of the district; or • used to reimburse a party for payment of eligible costs (including interest) incurred within five years from certification of the district; or • in the case of a housing district, used for a housing project, as defined in. section 469.174, subdivision 11. Beginning with the sixth year after certification. of. the TIF District, if the tax increments actually received by the City representing the In -District Percentage exceed the amounts considered "spent" within the TIF District, the excess must be used or set aside to pay or defease bonds (as described above) or to make payments under contracts (as described above). The TIF District must be decertified when the City has received tax increments representing the In -District Percentage in an. amount sufficient to fully pay its in -district obligations (Le., d.efease any bonds anal/or fulfill a.l.l contractual. obligations). It is anticipated that all tax increments collected in the TIF District will spent or obligated within this time period. Unless the TIF Plan is modified within this five-year period and additional expenditures are authorized., tax increments will only be used to pay .for authorized redevelopment costs and administrative expenses. ADOPTED (XX/XX/12) 11 29 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 14 SECTION 4.05 FINANCIAL REPORTING AND DISCLOSURE REQUIREMENTS The City wilt comply with the annual reporting requirements of State Law pursuant to the guidelines of the Office of the State Auditor. Under current law, the City must prepare and submit a report on the TIT district on. or before August 1 of each year. The City must also annually publish in a newspaper of general circulation in. the City an annual statement for each tax increment financing district. The reporting and disclosure requirements outlined in this section begin. with the year the district was certified, and shall end in the year in which both the district has been decertified and all tax increments have been spent or returned to the county for redistribution. Failure to meet these :requirements, as determined by the State Auditors Office, may result i.n. suspension of distribution of tax increment. SECTION 4.06 BUSINESS SUBSIDY COMPLIANCE The City will comply with the business subsidies requirements specified in Minnesota. Statutes, Sections 11.6J.993 to 1 ".1.6J.995. ADOPTED (XX/XX/12) 12 30 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 14 Exhibit I City of Albertville Tax Increment Financing District No. 14 Present Value Analysis As Required By Minnesota Statutes 469.175(3)(2) Fraser Steel 1 Estimated Future Market Value w/ Tax Increment Financing 2 Payable 2012 Market Value 3 Market Value Increase (1-2) 4 Present Value of Future Tax Increments 5 Market Value Increase Less PV of Tax Increments 6 Estimated Future Market Value w/o Tax Increment Financing 7 Payable 2012 Market Value 8 Market Value Increase (6-7) 9 Increase in MV From TIF 1 Assume 1.0% annual appreciation over 8 year life of district. 3,290,152 1,788,400 1,501,752 265,563 1,236,189 1,936,581 1 1,788,400 148,181 1,088,008 z 2 Statutory compliance achieved if increase in market value from TIF (Line 9) is greater than or equal to zero. ADOPTED (XX/XX/12) 13 31 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 14 Exhibit Ii Tax Increment Financing District No. 14 Projected Tax Increment Fraser Steel Assumed 100.00% 10.00% 0.36% Available Total TIF Taxes New Base Captured Original Estimated State Net Annual PV of Net District Value Payable Tax Tax Tax Tax Tax City Auditor Tax Available TIF Year Year Year Capacity, Capacity Capacity Rate Increment Admin. Deduct. Increment 3.00% 1 2013 2014 59,268 (35,018; 24,250 142.720% 34,610 (3,461) (12S) 31,024 30,121 2 2014 2015 59,861 (35,C1824,843 142.720% 35,455 (3,546, i1.28, 31,782 60,078 3 2015 2016 60,459 (35.018) 25,441 142.720% 36,310 (3,631) (131) 32,548 89,865 4 2016 2017 61,064 (35,018) 26,046 142.720% 37,173 (3,717) (134) 3.3,322 119,471 5 2017 2018 61,675 35,01.8) 26,657 142.720% 38,044 (3;W,l) (137) 34,103 148,888 6 2018 2019 62,291 (35.0i8j 27.273 142,720% 38,924 (3,892) (140) 34,891 178,109 7 2019 2020 62.914 25,018) 27,896 142.720% 39,813 (3,981) (143) 35,688 207,127 8 2020 2021 63,543 135,018) 28,525 142.720% 40,711 (4,071 (147) 36,493 235,935 9 2021 2022 64,179 (3501.8) 29,161 142.720% 41,618 (4,162) (150) 37,306 264,527 TOTAL = 342,658 (34,266) (1,234) 307,159 Key Asssumotions 1 Base Value annual growth assumed at 1% 2 Property Tax rate from Wright County, Pay 2012 3 Base Value $1,788,400 (includes land and existing building) 4 New Value = $3,038,400 (70,000 total SF (includes 23,000 expansion C $50/SF) 5 Present value is based on semi-annual payments. F7EMlAf1lg ADOPTED (XX/XX/12) 14 32 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 14 Exhibit III City of Albertville Tax Increment Financing District No. 14 Impact on Other Taxing Jurisdictions (Taxes Payable 2012) Fraser Steel ANNUAL TAX INCREMENT Estimated Annual Captured Tax Capacity (Full Development) $29,161 Payable 2012 Local Tax Rate 142,720% Estimated Annual Tax Increment $41,618 Percent of Tax Base Net Tax Captured Percent of Capacity Tax Total NTC (NTC) Capacity Albertville 42,796,310 29,161 0.07% Wright County 383,768,975 29,161 0.01% ISD 885 139,200,876 29,161 0.02% Dollar Impact of Affected Taxing Jurisdictions Net Tax Tax Added Capacity % of Total Increment Local Tax (NTC) Share Rate Albertville 46.645% 32.683% 13,602 0.032% Wright County 43.445% 30.441% 12,669 0.003% ISD 885 52.630% 36,876% 15,347 0.011% Other 0.000% 0.000% 0 Totals 142.720% 100.000% 41,618 NOTE NO, 1: Assuming that ALL of the captured tax capacity would be available to all taxing jurisdictions even if the City does not create the Tax Increment District, the creation of the District will reduce tax capacities and increase the local tax rate as illustrated in the above tables. NOTE NO. 2: Assuming that NONE of the captured tax capacity would be available to the taxing jurisdiction if the City did not create the Tax Increment District, then the plan has virtually no initial effect on the tax capacities of the taxing jurisdictions. However, once the District is established, allowable costs paid from the increments, and the District is terminated, all taxing jurisdictions will experience an increase in their tax base. ADOPTED (XX/XX/12) 15 33 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 14 Exhibit IV City of Albertville Tax Increment Financing District No. 14 Estimated Tax Increments Over Maximum Life of District Fraser Steel Based on Pay 2012 Tax Rate = 142.720% 46.645% 43.445 % 52.630% 0.000% Estimated City County School Other TIF Taxes New Base Captured Total TIF TIF TIF TIF District Payable Tax Tax Tax Tax Related Related Related Related Year Year Capacity Capacity Capacity Increment Share Share Share Share 1 2014 59,268 (35,018) 24,250 34,610 11,311 10,535 12,763 1 2 2015 59,861 (35,018) 24,843 35,455 11,588 10,793 13,075 (1) 3 2016 60,459 (35,018) 25,441 36,310 11,867 11,053 13,390 0 4 2017 61,064 (35,018) 26,046 37,173 12,149 11,316 13,708 0 5 2018 61,675 (35,018) 26,657 38,044 12,434 11,581 14,029 0 6 2019 62,291 (35,018) 27,273 38,924 12,722 11,849 14,354 (1) 7 2020 62,914 (35,018) 27,896 39,813 13,012 12,119 14,682 0 8 2021 63,543 (35,018) 28,525 40,711 13,306 12,393 15,013 (1) 9 2022 64,179 (35,018) 29,161 41,618 13,602 12,669 15,347 0 Total 342,658 111,991 104,308 126,361 (2) ADOPTED (XX/XX/12) 16 CAP NORTHLAND -SECURITIES VIA EMAIL: bob.hiivala@co.wright.mn.us AND USPS May 18, 2012 Mr. Robert J. Hiivala Auditor Treasurer — Wright County 10 - 2nd Street NW, Room 230 Buffalo, MN 55313-1195 RE: City of Albertville Proposed Tax Increment Financing District No. 14 Dear Mr. Hiivala: The City of Albertville is considering the creation of Tax Increment Financing (TIF) District No. 14, an economic development TIF district. The purpose of this district will be to provide the basis for assisting with the expansion of a manufacturing facility. This letter provides you with a copy of the draft plan for this TIF district for your review and comment. Exhibits III and IV of the plan illustrate the estimated fiscal and economic impacts on the County from the proposed TIF district. Please note that the attached plan is a draft. We are still working on refining the plan prior to the public hearing. I will provide you with a revised plan if any substantial revisions to this draft are proposed. The hearing on the establishment of TIF District No. 14 is scheduled for Monday, June 18 at 7:00 p.m., at the City Hall in Albertville. We welcome comments from the County. Any written comments will be included in the record for the hearing. Additionally, we would be happy to discuss the proposed TIF plan, to answer your questions and to provide additional information about the size, timing or type of development in the District. Do not hesitate to contact me or Tina Lannes at the City. Thank you for your review and consideration of the proposed TIF Plan for District No. 14. Sincerely, Tammy Omdal Manager of Northland Strategies/Sr. VP cc: Tina Lannes, City of Albertville 45 South 7t" Street, Suite 2000, Minneapolis, MN 55402 Main: (612) 851-5900 / Direct: (612) 851-4992 / Email: rfifield@northlandsecurities.com Member FINRA and SIPC 35 NORTHLAND May 18, 2012 Mr. James Behl Superintendent St. Michael -Albertville School District 885 11343 50th St Ne Albertville, MN 55301 SECURITIES VIA EMAIL: jamesb@stma.k12.lnn.us AND USPS RE: City of Albertville Proposed Tax Increment Financing District No. 14 Dear Mr. Novak: The City of Albertville is considering the creation of Tax Increment Financing (TIF) District No. 14, an economic development TIF district. The purpose of this district will be to provide the basis for assisting with a hotel development project. This letter provides you with a copy of the draft plan for this TIF district for your review and comment. Exhibits III and IV of the plan illustrate the estimated fiscal and economic impacts on the School District from the proposed TIF district. Please note that the attached plan is a draft. We are still working on refining the plan prior to the public hearing. I will provide you with a revised plan if any substantial revisions to this draft are proposed. The hearing on the establishment of TIF District No. 14 is scheduled for Monday, June 18 at 7:00 p.m., at the City Hall in Albertville. We welcome comments from the School District. Any written comments will be included in the record for the hearing. Additionally, we would be happy to discuss the proposed TIF plan, to answer your questions and to provide additional information about the size, timing or type of development in the District. Do not hesitate to contact me or Tina Lannes at the City. Thank you for your review and consideration of the proposed TIF Plan for District No. 14. Sincerely, Tammy Omdal Manager of Northland Strategies/Sr. VP cc: Tina Lannes, City of Albertville 45 South 7w Street, Suite 2000, Minneapolis, MN 55402 Main: (612) 851-5900 / Direct: (612) 851-4992 / Email: rfifield@northlandsecurities.com Member FINRA and SIPC 36 A,lbertville Small Town Uving. Big City Ufs. TO: Mayor and City Council FROM: John Middendorf DATE: June 18, 2012 RE: Wastewater Treatment Plant and Water Department Update WATER • Jacob Kreutner training is going well. • Have not had any water leaks this spring, it has been business as usual. • Water shut offs are scheduled for June 27th. WASTEWATER With all the heavy rain we had on May 23rd and 24th I had to divert some of the flow entering the wastewater treatment plant to pond 1. This lasted about twelve hours. We have been struggling with our Phosphorous limit since the heavy rain in May. We are meeting our limits, but have had to add more chemicals than usual. I had to have one of the oxidation ditch mixers rebuilt. REED BED UPDATE • Reed bed one is struggling this spring this is the one that was cleaned out last year. I believe we applied too much sludge, and too soon after replanting. I have taken it out of rotation for a couple weeks. COUNTY DITCH 9 CLEANING • We have been treating the stumps that were left after the tree and brush clearing with a vegetation killer. MAPublic Data\City Council\Council Packet information\2012\06 18 2012\6-18-2012Utilities Dept Report.docx 37 A bcrtvillc Mayor and Council Communication SUBJECT: City Engineer/Public Works Director - Work -in -Progress June 12, 2012 Below is a summary of various work items in progress. The listing does not include general day- to-day activities, and is provided as general summary of miscellaneous items for Council to inquire about if desired. The items below constitute assignments from multiple departments. 1. Interim/Permanent Administrator a. Professional Search Proposals b. Draft Interim Contract 2. Building Official a. St. Michael's Paul Heins appointed as interim Building Official b. Permanent Options (St. Michael vs. Contracting Out) 3. Central Park Master Plan 4. Completion of Visioning Process 5. Dominium Development — HOA Cooperation Agreement/Resolution of Support 6. Guardian Angels — Kassel, 51 st Street, Drainage and misc. info for G.A. 7. Tax Forfeited Property Review 8. I-94 Assessments — Outlet Mall 9. PFA Loan Submittals 10. 5-Year Infrastructure CIP Revisions 11. Green Haven Schedule 12. 2012 Street Improvements — 52nd Street Culvert, Striping, Seal Coatings 13. Water line repair ordinance 14. 152 Club Addition a. Water service b. Revolving Loan 15. Fraser Steel Addition -TIF 16. County Ditch #9 Improvement Plans — Scope, Design, Proposals 17. WWTP Permit Reissuance — draft permit review 18. 50"' Street Access and County Plans for Improvement 19. Weishar Memorial — concepts 20. Informational letter regarding flood insurance 21. Mattress Store code enforcement 22. Otsego Fire Contract — Draft delivered to Otsego 23. 2012 Budget Cycle 24. Jet/Vac Truck Evaluation 25. Kollville Estates flood inquires I will be at your June 18 Council meeting to discuss any questions you may have concerning the items listed above and would be glad to add any items the Council would like addressed. Submitted Through: Adam Nafstad, Public Works Director Department/Responsible Person: Engineering/Adam Nafstad, Public Works Director Attachments: none M \Public Data\City Council\Council Packet information\2012\06 18 2012\CC (Work in Progress).doc Meeting Date: June 18, 2012 Ibcrtvi j ll£ Mayor and Council Communication ,may �.MGCkvufw June 12, 2012 SUBJECT: Engineering — I-94 WB C-D Road Project Update The CSAH 37 on -ramp has been closed and traffic will be detoured via CSAH 37 and CSAH 19 during construction. Traffic has been switched to the temporary CSAH 37 off -ramp and removal of the off -ramp has begun. Retaining wall piling operations will continue thru the end of the week and concrete footing work is expected to begin next week. Currently the Contractor is working on pond excavation, excavation and grading of the new ramps and C-D road, and is preparing for installation of storm sewer. Additional unsuitable soils have been encountered along the C-D road and under the CSAH 37 Bridge. Soil correction costs have been largely mitigated by mining suitable material from beneath the grading limits of the pond and substituting the mined material with unsuitable material. Staff has received concerns from Heidi's Market regarding loss of sales during the construction and staff will be posting signage on the freeway indicating that local businesses are open during construction. Miscellaneous Project Related Items: • Approximately $2,800,000 in State funds has been received. • The PFA loan requirements have been completed and the project is now eligible to receive loan disbursements. • Staff is working with the Ownership group of the Mall concerning the preliminary assessment. • Partial Payment No. 1 will be presented to Council at the June 18ffi Council Meeting. • The posted freeway speed will be reduced from 70 to 60 MPH thru the project corridor during construction. • At this time, there are no scheduled lane restrictions for freeway traffic. If at any time you have any questions or would like more of a project update, please call. Submitted Through: Adam Nafstad, Public Works Director Department/Responsible Person: Engineering/Adam Nafstad, Public Works Director Attachments: none M:\Public Data\City Council\Council Packet information\2012\06 18 2012\CC (194 Project Update 6_12_12).doc Meeting Date: June 18, 2012 lbertvij)IE Mayor and Council Communication sir ^ram u.rw. soo saw ur.. June 18, 2012 SUBJECT: LEGAL — INTERIM CITY ADMINISTRATOR CONTRACT. RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following motion: MOTION: To adopt Agreement Between The City Of Albertville, Wright County, Minnesota And Thistle Advisory And Consulting Associates, LLC For Interim City Administrator Services. BACKGROUND: On June 4, 2012, the City Council met with Bob Thistle to discuss the possibility of retaining Mr. Thistle on a temporary basis to provide Interim City Administrator services to the City. Mr. Thistle has served in various City positions throughout his career, including City Manager at Coon Rapids for a number of years, Community Development Director and Finance Director at other cities of considerable size. Mr. Thistle has also worked for Springstead, Inc. for approximately 20 years as a financial advisor and consultant to cities, including Albertville. After meeting with Mr. Thistle, the City Council directed staff to prepare a contract with Mr. Thistle providing services as an independent contractor. Attached is the proposed contract negotiated between Thistle Advisory and Consulting Associates, LLC ("TACA") and the City. Mr. Thistle will be an employee of TACA and will be assigned to work with the City as the Interim City Administrator. KEY ISSUES: • Mr. Thistle will work between 20 and 40 hours a week as an independent contractor. • Mr. Thistle will determine what hours he will be at City Hall, but he will be available via phone or other electronic device when not in City Hall. Note that this will give the City somewhat less control than the City may be used to with an employee -City Administrator. • Mr. Thistle will determine the work priorities of the Interim City Administrator. • The City will pay TACA $55 per hour worked. TACA will invoice the City monthly like the City's other consultants. • The Agreement is structured such that if the City decides to hire internally, Mr. Thistle will mentor the new City Administrator while Mr. Thistle serves as Interim City Administrator. When the City believes that the new City Administrator is ready to assume full responsibility for the City Administrator position, Mr. Thistle will be available on an on -call basis at $500 per month for up to 10 hours of consultation and $50 per hour in excess of 10 hours per month. The on -call relationship can exist as long as the City and TACA desire it to continue. M:Tublic Data\Requests for Council Actions (RCA)\2012\06 18 12 Interim City Administrator Contract RCA.doc Meeting Date: June 18, 2012 Mayor and Council Communication — June 18, 2012 Interim City Administrator Contract. Page 2 of 2 • If the City hires an external City Administrator, Mr. Thistle will serve as Interim City Administrator until the new City Administrator reports for work. • The City is agreeing to indemnify and defend Mr. Thistle in the event of any third party claims against Mr. Thistle arising from his work under the Agreement. The City is also agreeing to obtain an insurance rider from the League to cover Mr. Thistle, at City expense. The League can issue such a rider. We are still checking on what additional cost, if any, is associated with such a rider. If there is a cost, we expect it to be small. • The Agreement can be terminated by either party upon 30 days notice. POLICY CONSIDERATIONS: Retaining Interim City Administrator services can be done in the discretion of the City Council. Staff believes that retaining an experienced former City Administrator will result in a quick learning curve and allow the Interim City Administrator to hit the ground running. FINANCIAL CONSIDERATIONS: At $55 per hour, the City will be paying TACA at an annual rate of $110,000 per year, slightly higher than Mr. Kruse's pay. Currently the City is still paying Mr. Kruse his severance pay, which means that TACA's payments will be over and above the budgeted amounts for this position. However, depending upon the actual hours put in by TACA, the monthly payment can vary between $9,150 and $5,500 per month. LEGAL CONSIDERATIONS: The City has the authority to retain Interim City Administrator services via the attached Agreement. Respectfully submitted, Mike Couri City Attorney Department/Responsible Person: City Administrator. Attachments: Agreement Between The City Of Albertville, Wright County, Minnesota And Thistle Advisory And Consulting Associates, LLC For Interim City Administrator Services. M:\Public Data\Requests for Council Actions (RCA)\2012\06 18 12 Interim City Administrator Contract RCA. doe Meeting Date: June 18, 2012 AGREEMENT BETWEEN THE CITY OF ALBERTVILLE, WRIGHT COUNTY, MINNESOTA AND THISTLE ADVISORY AND CONSULTING ASSOCIATES, LLC FOR INTERIM CITY ADMINISTRATOR SERVICES THIS AGREEMENT is made and entered into this day of 2012, by and between the City of Albertville , a municipal corporation under the laws of the State of Minnesota ("City") and THISTLE ADVISORY AND CONSULTING ASSOCIATES, LLC., ("Contractor") RECITALS: WHEREAS, the City is in need of temporary professional City Administrator; and WHEREAS, the Contractor has substantial experience in these areas, and is qualified to assist the City as a consultant; and WHEREAS, the City desires to contract with the Contractor for City Administrator services; and WHEREAS, the Contractor declares that he is engaged in an independent business and has complied with all federal, state and local laws regarding business permits and licenses of any kind that may be required to carry out said businesses and the tasks as set forth in this Agreement; and WHEREAS, the Contractor declares that it is, or remains available to be, engaged in the same or similar activities for other clients during the term of this contract, and that the City is not to be construed as the Contractor's only client or customer. NOW, THEREFORE, for the reasons set forth above, and in consideration of the mutual promises and covenants made herein, it is agreed as follows: 1. Services to be Performed: The City engages the Contractor to perform temporary City Administrator services within the following parameters: a. The Contractor shall perform the duties of the City Administrator as set out in the City Administrator's job description. 1 W b. The parties anticipate that Contractor shall assign Robert Thistle to perform the duties of the City Administrator under this Agreement. In the event Contractor desires to assign someone other than Mr. Thistle to perform such duties, such other person shall have a reasonably similar level of City Administrator/Manager experience as Mr. Thistle, and the Contractor shall give the City a minimum of 30 days notice before assigning such other person to fulfill Contractor's obligations under this Agreement. c. The parties anticipate that the Contractor will typically work between 20 and 40 hours per week. The Contractor shall determine how many hours to work each week depending upon the workload and the priority in which the Contractor believes the work should be completed. d. The Contractor need not be in City Hall every work day, but shall endeavor to be available via phone or other electronic communication method during normal City Hall hours if needed on an emergency basis when not present at City Hall. e. It is the intent of the City to hire a permanent City Administrator in the near future. At this time, the City is evaluating two options: 1) training an existing City employee for the position of City Administrator, or 2) working with an executive search firm to hire an experienced City Administrator. i. In the event the City chooses to train an existing City employee for the position, the Contractor shall act as a mentor to the trainee for a reasonable period of time with the intent that after a period of time, in the judgment of the Contractor and the City Council, the trainee shall assume the majority of the duties of the City Administrator and the Contractor shall be available for a period of time on an "on call" basis to assist the trainee as he or she requests such assistance. At such time as the Contractor switches to "on call" status, Contractor shall be paid a retainer of $500.00 per month and shall provide up to 10 hours of assistance to the City Administrator per month under such retainer. Any assistance provided in excess of 10 hours per month shall be billed to the City at $50.00 per hour and shall be paid in accordance with the procedures set out in paragraph 2 of this Agreement. ii. In the event the City chooses to hire a City Administrator with the assistance of an executive search firm, it is the intent of the parties that the Contractor perform the duties of Interim City Administrator until such time as the permanent City Administrator reports to the City for work. 2 43 iii. The City and Contractor intend for the Contractor's services to the City under this Agreement to be short-term, lasting approximately six months to a year. 2. Terms of Payment: The City shall pay the Contractor according to the following terms and conditions: $55.00 per hour. Payment shall be made monthly and shall be based on the submission of an invoice showing the number of hours of work actually performed by the Contractor during the previous month. Contractor shall be reimbursed for mileage on City business away from City Hall at the current Federal rate, and any receipted expenses incurred on behalf of the City and presented with invoice. The City shall reimburse Contractor for the cost of Contractor's monthly cell phone bill attributable to City business. 3. Instrumentalities: The Contractor shall provide for his or her own vehicle, cell phone, and any necessary equipment, tools, materials and supplies, except for receipted expenses, for the performance of the obligations specified herein, and except for a computer and routine office supplies, which the City shall make available to Contractor at City Hall. 4. Hold Harmless and Indemnification: The City agrees to hold harmless, defend, and indemnify Contractor for any claims made against Contractor arising from Contractor's actions that fall within the scope of Contractor's duties under this Agreement, provided, however, that the City's obligation under this paragraph shall only be binding to the extent the City's insurance actually pays for the costs to defend and indemnify Contractor. Nothing in this agreement shall act as a waiver of the City's tort liability limits set forth in Minn. Stat. 466.04, nor shall the City's obligation to hold harmless defend and indemnify Contractor under this Agreement exceed the tort liability limits set forth in Minn. Stat. 466.04, 5. Extension of Liability Coverage. The City shall obtain, at its expense, an insurance rider extending the City's liability insurance coverage to Contractor for the duration of this Agreement insuring Contractor's actions that fall within the scope of Contractor's duties under this Agreement. 6. Control: The Contractor retains the sole and exclusive right to control or direct the manner or means by which the work described herein is to be performed. The City retains only the right to control the ends to insure its conformity with that specified herein. 7. Payroll or Employment Taxes: No payroll or employment taxes of any kind shall be withheld or paid with respect to payments to the Contractor. The payroll or employment taxes that are the subject of this paragraph include, but are not limited to, FICA, FUTA, federal personal income tax, state disability insurance tax, and state unemployment 3 M insurance tax. The Contractor is responsible for payment of any and all taxes related to compensation its employees receive under this Agreement. 8. Worker's Compensation: No workers' compensation insurance has been or will be obtained by the City on account of the Contractor or any employees of the Contractor. 9. Termination: This agreement may be terminated by either party with written notice from one parry to the other upon thirty days notice to the non -terminating parry. Upon termination of this Agreement, Contractor shall be paid for all services delivered under this Agreement but not yet paid, provided Contractor submits a billing as required by paragraph 2 above. 10. Severability: Should any term or condition of this Agreement be found invalid by a court of competent jurisdiction, such finding shall not affect or invalidate the remaining terms and conditions of this Agreement. 11. Merger: Any previous agreements between the parties, either written or oral, are hereby merged into this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year written above. CITY OF ALBERTVILLE Attest: Mark Meehan Mayor Tina Lannes Acting Clerk THISTLE ADVISORY AND CONSULTING ASSOCIATES, LLC. By: Robert Thistle Its: President 0 45 b£�-tvijj �l£ Mayor and Council Communication June 18, 2012 SUBJECT: LEGAL —EXTENSION OF BRIDGET MILLER'S PROBATIONARY PERIOD. RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following motion: MOTION: To extend the probationary period of Bridget Miller by 3 months to October 3, 2012. BACKGROUND: On January 3, 2012, the City Council moved Bridget Miller to the position of Administrative Assistant II — Accounting Clerk with a probationary period of six months, which would end on July 3, 2012. Bridget's job description has her reporting to the Finance Director and the City Administrator. However, with the dismissal of the City Administrator in April of this year, half of Bridget's evaluation cannot be performed as we currently do not have a City Administrator. In addition, since Tina has effectively taken on a number of the duties of City Clerk and some of the duties of the City Administrator, she has not had time since early April to fully train Bridgeton a number of her financial -related job duties. Without this training, Tina has been unable to assign to Bridget work in a number of categories of her job description, and is therefore unable to properly evaluate Bridget's ability to perform such work. KEY ISSUES: Extension of the probationary period will: • Allow Bridget to be trained on nearly all of the duties listed in her job description. • Allow Tina to properly evaluate Bridget's performance of the financial duties included in her job description. • Allow the Interim City Administrator time to properly evaluate Bridget's work performance. • Fulfill the intent of the City Council in requiring an evaluation of Bridget's performance after the end of the probationary period. POLICY CONSIDERATIONS: Prior to the expiration of a probationary period, the probationary employee is evaluated and a determination made as to whether the employee should remain in that position. Staff believes an extension of the probationary period will allow for a more complete and accurate evaluation of Bridget's performance in her current position. FINANCIAL CONSIDERATIONS: None. During the extension of the probationary period, Bridget will remain an employee of the City in her current position, which is already budgeted. M:\Public Data\Requests for Council Actions (RCA)\2012\06 18 2012 Bridget Miller Probationary Period extension RCA.doc Meeting Date: June 18, 2012 Mayor and Council Communication — June 18, 2012 Extension of Bridget Miller's Probationary Period Page 2 of 2 LEGAL CONSIDERATIONS: The City Attorney recommends extension of the probationary period so that a complete evaluation of Bridget's performance can be made and used as a basis for any decision by the City Council. Respectfully submitted, Mike Couri City Attorney Department/Responsible Person: City Administrator. Attachments: NONE M:\Public Data\Requests for Council Actions (RCA)\2012\06 18 2012 Bridget Miller Probationary Period extension RCA.doc Meeting Date: June 18, 2012 7 A,lb-c 'tV1ll£ Mayor and Council Communication S.-M *r u.rw. ft uw ua. June 18, 2012 SUBJECT: LEGAL — REQUEST FOR THE STATE TO DEED TAX FORFEIT PROPERTIES TO THE CITY. RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following motion: Motion: To pass Resolution Requesting The State of Minnesota to Deed Tax Forfeited Lands to the City of Albertville. BACKGROUND: Wright County has recently forwarded to the City a list of properties that have gone tax forfeit in the City of Albertville. Most of these properties are remnants that are unusable by themselves, trails and storm water ponds from subdivisions that were never deeded to the City, or wetlands. The City Planner, City Public Works Director and City Attorney have reviewed the list and are recommending that certain properties be acquired. Under State law, the City can acquire these properties as long as we use them for a public purpose. For example, the properties that are adjacent to street rights or way or are currently being used as trails qualify for public purpose uses. For those properties that qualify, the State will issue the City a reversionary deed at no charge to the City. Under this deed, the State retains the right to require the City to deed the property back to the State if the City quits using it for the stated public purpose. Two of the properties qualify under this provision of the statute. The City may also acquire properties free of charge with no deed restrictions if the tax forfeited properties were supposed to be deeded to the City pursuant to a developer's agreement prior to the properties becoming tax forfeit. Four of the properties (three trail properties and one wetland/ponding property) from the 1999 plat of Park View Place qualify under this provision of the statute. The properties are as follows: M:\Public Data\City Council\Council Packet information\2012\06 18 2012\Tax forfeit properties 2012 RCA.doc Meeting Date: June 18, 2012 Mayor and Council Communication — June 18, 2012 Request for the State to Deed Tax Forfeit Properties to the City. Page 2 of 5 PID101-065-000070 This property is a combination of ponds and wetlands that was originally to be dedicated to the City under the terms of the Park View Place developer's agreement. The ponds support the senior housing development on Lachman Avenue. PID 101-065-000080 This property is currently being used as a trail. This trail was originally to be dedicated to the City under the terms of the Park View Place developer's agreement. M:\Public Data\City Council\Council Packet information\2012\06 18 2012\Tax forfeit properties 2012 RCA. doe Meeting Date: June 18, 2012 Mayor and Council Communication — June 18, 2012 Request for the State to Deed Tax Forfeit Properties to the City. Page 3 of 5 PID 101-065-000081 This property is also being used as a trail. This trail was originally to be dedicated to the City under the terms of the Park View Place developer's agreement. I IM [II WIZ' SKIZIZIZII! X This property is proposed to be used as a trail between Lambert and Lander Avenues. This trail was originally to be dedicated to the City under the terms of the Park View Place developer's agreement. M:\Public Data\City Council\Council Packet information\2012\06 18 2012\Tax forfeit properties 2012 RCA.doc Meeting Date: June 18, 2012 Mayor and Council Communication — June 18, 2012 Request for the State to Deed Tax Forfeit Properties to the City. Page 4 of 5 PID 101-500-012300 This property abuts 57th Street across from the Catholic Church. The right of way on 57th is very narrow at this point (so much so that we had to modify the location of the sidewalk to keep it in the right of way when it was constructed a few years ago). This property will be used as additional right of way. PID 101-800-063307 M:\Public Data\City Council\Council Packet information\2012\06 18 2012\Tax forfeit properties 2012 RCA.doc Meeting Date: June 18, 2012 Mayor and Council Communication — June 18, 2012 Request for the State to Deed Tax Forfeit Properties to the City. Page 5 of 5 This property is nearly all wetland adjacent to one of the lots in Barthel Industrial Park owned by the City. The City has a sewer line running through this property. KEY ISSUES: • The City can acquire the properties at no charge provided we put them to a public use or the properties were supposed to be deeded to the City under the terms of the developer's agreement. • All of the properties proposed currently serve a public purpose or will serve a public purpose upon development or were supposed to be deeded to the City pursuant to the developer's agreement. • If the City does not acquire the properties, they will be sold to the highest bidder at auction. The buyer will receive clean title except for recorded easements and could remove existing trails and utilities that the City has installed if we do not have recorded easements over these properties. POLICY CONSIDERATIONS: All of these properties are similar to properties that the City already owns (i.e. ponds, wetlands, right of way and trails). Ownership of these properties is consistent with current City policy. FINANCIAL CONSIDERATIONS: There are no significant financial considerations. The State will deed the properties to the City for free. These properties generate little or no tax dollars for the City (assuming taxes were to be paid), so City acquisition will have a negligible impact on tax revenues. City Staff had already assumed that the City would maintain the trails, ponds and utilities located on these properties, so acquisition will not increase expected expenditures. LEGAL CONSIDERATIONS: The City Attorney recommends acquiring these properties from the State now while the City can do so without cost. Once these properties pass into private hands, the City would have to pay to buy the properties or pay to condemn them to preserve the City's trails, ponds and utilities. Respectfully submitted, Mike Couri City Attorney Department/Responsible Person: City Administrator and City Public Works Director. Attachments: Resolution Requesting The State of Minnesota to Deed Tax Forfeited Lands to the City of Albertville. M:\Public Data\City Council\Council Packet information\2012\06 18 2012\Tax forfeit properties 2012 RCA.doc Meeting Date: June 18, 2012 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO.2012-029 RESOLUTION REQUESTING THE STATE OF MINNESOTA TO DEED TAX FORFEITED LANDS TO THE CITY OF ALBERTVILLE WHEREAS, On May 18, 2012 Wright County informed the City that several properties in the City have been forfeited for failure to pay taxes and that the City could acquire such properties at no charge provided it puts the properties to a public use under Minn. Stat. 282.01, Subd. la; and WHEREAS, Minn. Stat. 282.01, Subd. la(f) requires the State to deed property to the City when such property was supposed to be deeded to the City pursuant to a written developer's agreement but was not deeded to the City prior to its tax forfeiture; and WHEREAS, the City desires to acquire two of the tax forfeited properties within the City of Albertville for public purposes and four properties that were supposed to be deeded to the City pursuant to the terms of a developer's agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALBERTVILLE, WRIGHT COUNTY, MINNESOTA: 1. The Public Works Director is directed to notify Wright County in writing that the City of Albertville intends on acquiring the following properties for authorized public uses under Minn. Stat. 282.01, Subd. 1 a: Property ID Authorized Public Use a. 101-500-012300 Right of way b. 101-800-063307 Sanitary Sewer Utility 2. The City of Albertville hereby certifies that the City was entitled to receive from the developer of the Park View Place plat the following properties prior to forfeiture pursuant to a written developer's agreement dated November 2, 1999 and recorded as document number 694771 in the office of the Wright County Recorder a. 101-065-000080 b. 101-065-000081 c. 101-065-000090 M:\Public Data\Requests for Council Actions (RCA)\2012\06 18 2012. Tax Forfeiture Resolution, 2012.docx Meeting Date: June 18, 2012 53 d. 101-065-000070 3. The Public Works Director is directed to notify Wright County in writing that the City of Albertville intends to acquire the following properties at no charge pursuant to Minn. Stat. 282.01, Subd. la(f) as properties that the City was entitled to receive from the developer of the Park View Place plat prior to forfeiture pursuant to a written developer's agreement dated November 2, 1999 and recorded as document number 694771 in the office of the Wright County Recorder: a. 101-065-000080 b. 101-065-000081 c. 101-065-000090 d. 101-065-000070 4. The City of Albertville respectfully requests the Wright County Board to favorably recommend to the State of Minnesota that the following properties be deeded to the City at no charge pursuant to Minn. Stat. 282.01, Subd. la(f) as properties that the City was entitled to receive from the developer of the Park View Place plat prior to forfeiture pursuant to a written developer's agreement dated November 2, 1999 and recorded as document number 694771in the office of the Wright County Recorder: a. 101-065-000080 b. 101-065-000081 c. 101-065-000090 d. 101-065-000070 ADOPTED by the City Council this 18f day of June, 2012. Mark Meehan, Mayor ATTEST TO: Tina Lannes, Acting City Clerk M:\Public Data\Requests for Council Actions (RCA)\2012\06 18 2012 Tax Forfeiture Resolution, 2012.docx Meeting Date: June 18, 2012 54