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2015-04-20 CC Agenda Packet1bertvillc smdl Uvfng. Big Ufa. City of Albertville Council Agenda Monday, April 20, 2015 City Council Chambers 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. NOTE: 5:30 p.m. — Local Board of Appeals and Equalization Meeting 6:30 p.m. — Law Enforcement Update/Workshop 1. Call to Order 2. Pledge of Allegiance — Roll Call 3. Recognitions — Presentations — Introductions A. Fire Service Awards B. 2014 Comprehensive Annual Financial Report Presentation by ITV (report under separate cover) (Motion for approval under Finance.) 4. Public 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 April 6, 2015 regular City Council meeting minutes as presented (pgs 4-8) B. Approve the March 30, 2015 Joint Governance meeting minutes as presented (pgs 9- 10) C. Authorize the Monday, April 20, 2015 payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been provided to City Council as a separate document and is available for public view at City Hall upon request (pg 11) D. Approve a Two -Day Temporary 3.2% Malt Liquor License for the St. Michael Lions Club for the 2015 "Kick for a Cure" fundraiser on May 16-17, 2015 (pgs 12-14) E. Approve Resolution No. 2015-010 entitled a Resolution to Transfer Funds (pgs 15-16) F. Approve Resolution No. 2015-011 entitled a Resolution Authorizing and Documenting Inter -Fund Loans to Fund Negative Fund balances (pgs 17-18) M:\Public Data\City Council\Council Agendas\2015 Agendas\2015-04-20 CC Agenda.doc Meeting Date: April 20, 2015 Agenda Page 1 City of Albertville Council Agenda Monday, April 20, 2015 Page 2 of 3 7. Department Business A. Finance 1). Approval of 2014 Comprehensive Annual Financial Report (Motion to approve the 2014 Comprehensive Annual Financial Report.) B. Planning/Zoning 1). Public Hearing for Mold Tech Tax Increment Financing (pgs 19-95) (Motion to open the public hearing, motion to close the public hearing. Motion to approve the following resolutions: • Resolution No. 2015-012 Approving the Establishment of TIF District No. 16 • Resolution No. 2015-013 Approving Contract and TIF Note • Resolution No. 2015-014 Approving Interfund and Administration Costs) C. City Council 1). Committee Updates (STMA Arena, Planning, JPWB, Parks, Fire Board, etc) D. Public Works/Engineering 1). Bucket Truck Replacement (Discussion) 2). Update Niemeyer Lift Station for Monitoring Capability to the SCADA System (pg 96) (Motion to Authorize ICS Healy -Ruff to install a radio, power supply, and mounting hardware, and to update the City's SCADA computer applications to monitor the Niemeyer lift station at cost of $9,403.00.) E. Fire 1). Purchase of New Command/Fire Chief Vehicle (pgs 97-98) (Motion to Authorize the purchase of a new red Chevrolet Tahoe vehicle under State Contract; and authorize the purchase and equipping of emergency equipment and graphic lettering, based on low quotes, for a total purchase amount not -to -exceed $47,000.) F. Legal 1). Tax Forfeited Commercial Lot in Prairie Run (pgs 99-100) (Motion to Re -impose the full special assessments to the property 101-111- 001020 if the property is returned to private ownership.) 2). City Attorney Report (pgs 101-102) G. Administration 1). City Administrator's Update (pgs 103-104) H. City Clerk -None M:\Public Data\City Council\Council Agendas\2015 Agendas\2015-04-20 CC Agenda.doc Meeting Date: April 20, 2015 Agenda Page 2 City of Albertville Council Agenda Monday, April 20, 2015 Page 3 of 3 8. Announcements and/or Upcoming Meetings April 27 Joint Powers Water Board, 6:30 p.m. Parks Committee, 8:00 p.m. May 4 City Council, 7:00 p.m. May 11 STMA Ice Arena Board, 6:00 p.m. May 12 Planning Commission, 7:00 p.m. May 18 City Council, 7:00 p.m. May 25 Memorial Day, City Offices Closed TBD Joint Powers Water Board (to be cancelled or rescheduled at Apr. 27 mtg) APRIL Su M Tu W Th F Sa 1 2 3 4 5 cc 6 7 8 9 10 11 12 Ice 13 Pc14 1 15 16 17 1 18 19 cc 20LBAE 21 22 23 24 25 26 JP27PK 28 29 30 9. Adjournment MAY Su M Tu W Th F Sa 1 2 3 cc 4 5 6 7 8 9 10 1 Ice 11 Pc 12 1 13 14 15 1 16 17 cc 18 19 20 21 22 23 24 " 25 JP26PK 27 28 29 30 31 M:APublic Data\City Council\Council Agendas\2015 Agendas\2015-04-20 CC Agenda.doc Meeting Date: April 20, 2015 Agenda Page 3 Nlbertvillc Smolt Town W.9. Big City IIF.. ALBERTVILLE CITY COUNCIL Monday, April 6, 2015 DRAFT MINUTES ALBERTVILLE CITY HALL 1. CALL TO ORDER - PLEDGE OF ALLEGIANCE Mayor Hendrickson called the meeting to order at 7:03 p.m. 2. ROLL CALL Present: Mayor Hendrickson and Council members Olson, Sorensen, and Vetsch Absent: Council member Hudson 7:00 PM Others Present: City Administrator-PWD Adam Nafstad, City Planner Al Brixius, Finance Director Tina Lannes, and City Clerk Kimberly Olson 3. RECOGNITIONS — PRESENTATIONS — INTRODUCTIONS - None 4. PUBLIC FORUM — (time reserved 5 minutes) There was no one present to speak. 5. AMENDMENTS TO THE AGENDA There were no amendments to the agenda. Motioned by Olson, seconded by Sorensen, to approve the Agenda as presented Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent. Hudson. MOTION DECLARED CARRIED. 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 March 16, 2015 regular City Council meeting minutes as presented B. Approve the March 16, 2015 Joint City Council and Planning Commission meeting minutes as presented Page 1 Agenda Page 4 C. Authorize the Monday, April 6, 2015 payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been provided to City Council as a separate document and is available for public view at City Hall upon request D. Adopt Resolution No. 2015-008 approving Corporate Signers for the City of Albertville Olson inquired why the Charter Communications bill for payment for the Arena actually lists the STMA United Soccer Association. Lannes indicated that the City only has the one account for Charter Communications and she would correct that. Motioned by Olson, seconded by Sorensen, to approve the Consent Agenda as presented. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent. Hudson. MOTION DECLARED CARRIED. 7. PUBLIC HEARINGS — None 8. DEPARTMENT BUSINESS r A. City Council 1). Committee Updates (STMA Arena, Planning, JPWB, Parks, Fire Board, etc) Fire Board Sorensen indicated the Board would be looking at a Joint PUers Agreement in the upcoming months. Nafstad stated that the Board felt it should go to boT the Albertville and Otsego City Councils before any work on the agreement is conducted. Joint Powers Water Board Vetsch stated they may want to look for an alternate for the Board and Hendrickson indicated they sometimes do not have enough members present at the meetings. 2). Appointment to Parks Committee Clerk Olson reported the Parks Committee met and interviewed two applicants for the vacancy on the committee. The committee's recommendation to Council was to appoint Larry Boller to the position. VF Clerk Olson also reported the committee spoke about the number of residents that makes up the committee. Olson reported that the resolution addressing the Parks Committee allows four residents, two Council members, and a staff person. The committee had inquired if it would be possible to also appoint the other applicant they had interviewed for the vacant position. Couri had indicated staff is reviewing the City Code and resolutions that address both the Planning Commission and Parks Committee and will bring that forward to a future meeting. The Council was not opposed to another member on the committee and felt they could address it when that review happens. Hendrickson was not sure if they needed two Council members on the committee. She suggested removing one Council member from the committee if they appoint an additional resident; they would just have to appoint an alternate. City Council Meeting Minutes Page 2 Regular Meeting of April 6, 2015 Agenda Page 5 Motioned by Hendrickson, seconded by Olson, to appoint Larry Boller to the Parks Committee based on the recommendation of the Parks Committee. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent. Hudson. MOTION DECLARED CARRIED. B. Public Works/Engineering 1). 571h Street NE/Church of St. Albert Improvements Nafstad reported that the project was advertised and eight bids were received. The low bid came from Omann Brothers in the amount $874,612.28. The project will consist of complete replacement of pavement, curb and gutter, sidewalks, and municipal utilities. The reconstruction will also widen the street to match the newer segments of 571h Street NE and will complete the sidewalk on the north side of the street. The City's portion of the cost would be approximately $699,000 and $175,000 would be the Church of St. Albert. The right-of-way costs involved are about $53,000. Sorensen inquired what the low bid was last year and Nafstad replied it had come in at approximately $824,000. Olson inquired about road closures. Nafstad replied full street closure would need to occur for a minimal amount of time. He stated that access to the Church does need to be maintained and there are milestones in place in the project to ensure that. Sorensen inquired on the start date and Nafstad replied it would be no sooner than June 15, after Friendly City Days. It would be completed no later than October 15. Sorensen was concerned about the amount of traffic on 578eet NE, as well as the intersection with Main Avenue NE, and how notification would be done. Nafstad stated he notifies Wright County dispatch and there will be some type of notice to residents whether it is an open house, utility bill insert, or door to door notification. rr Vetsch inquired about the flooding around Lambert Avenue NE and Nafstad new storm sewer will be put in from Lambert Avenue NE to *n Avenue NE. There currently is no storm sewer there. Nafstad stated the church as signed the agreement. Motioned by Hendrickson, seconded by Vetsch, to approve Resolution 2015-009 entitled a Resolution Approving Plans and Specifications and Accepting Low Bid for the 2015 — 57,1h Street NE and Utility Improvements and Approving Right -of -Way and Construction Agreement with the Church of St. Albert contingent on the Church of St. Albert signing the Agreement and providing written notification authorizing the City to accept the Low Bid. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None Absent. Hudson. MOTION DECLARED CARRIED. C. City Clerk 1). Set Law Enforcement Update Workshop Vetsch inquired about the additional hours of law enforcement coverage. Nafstad replied they will be adding four additional hours in July and a letter has been sent to the Sheriff's Office for that. He stated the City will need to review if the four additional hours of service are adequate before moving forward with an additional fours. Even though the City looked at a total of eight additional hours over the course of several years, they may only need four hours. City Council Meeting Minutes Page 3 Regular Meeting of April 6, 2015 Agenda Page 6 Vetsch stated he believed they still needed an additional roaming car for northeast Wright County. He stated that it may be helpful if the northeast Wright County administrators jointly ask the County for more coverage with another roaming car. Hendrickson would like Sheriff Hagerty to address how the department monitors and responds to public safety concerns on social media. Motioned by Hendrickson, seconded by Sorensen, to set a Law Enforcement Update Workshop for Monday, April 20, 2015 at 6:30 p.m. in the City Council Chambers. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent. Hudson. MOTIONDECLARED CARRIED. D. Administration 1). Advertisement of Full-time Public Works Position (pgs 28-29) Motioned by Sorensen, seconded by Olson, to Authorize Public Works to advertise for a full-time Maintenance Worker Level 1. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent. Hudson. MOTIONDECLARED CARRIED. 2). School Funding Letter (pgs 30-31) Nafstad replied they received a letter at the Joint Govqw*Meeting with St. Michael and STMA School Board on disparity in school funding with a request for the City Council to endorse the letter prior to it being sent to elected State leaders. Olson stated that one third of the City is not in the STMA School District and was not sure how the letter would affect those in the Elk River School District. Nafstad believes Elk River is in a similar disparity range. WWI Motioned by Sorensen, seconded by Hendrickson, to endorse the letter prepared by the STMA School Board to be sent to elected State Leaders. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent. Hudson. MOTIONDECLARED CARRIED. 3). City Administrator's Update (pgs 32-33) Nafstad invited the Council to attend the swearing in of Fire Chief Eric Bullen on Thursday, April 9. He stated staff will be presenting the Fire Service awards at the April 20 meeting. He stated they will also be bringing forward Tax Increment Financing for Mold Tech at the April 20 meeting. Nafstad reported they will be working on restoration and erosion control at the 541h Street NE/Barthel Industrial Drive NE project. Nafstad reported that repairs to the street in the Greenhaven neighborhood may be needed this year. He stated the area also needs water and sewer connections, but believes the cost is not feasible. He stated the current street is in very poor condition and they would need approximately $160,000 for the street reclamation. Though the project was not budgeted, staff would be able to use reserves to fund the project. Sorensen stated that if they do wait another year to do the project, it will be even costlier. City Council Meeting Minutes Page 4 Regular Meeting of April 6, 2015 Agenda Page 7 E. Legal Couri reported there is an upcoming meeting with the Prairie Run Homeowners Association. F. Planning/Zoning - None G. Finance -None H. Building -None 9. ANNOUNCEMENTS AND/OR UPCOMING MEETINGS April 13 STMA Ice Arena Board, 6:00 p.m. April 14 Planning Commission, 7:00 p.m. Joint City Council/Planning Commission, 7:30 p.m. April 20 Local Board of Appeal and Equalization, 5:30 p.m. Council Workshop with Sheriff's Office, 6:30 p.m. City Council, 7:00 p.m. April 27 Joint Powers Water Board, 6:30 p.m. Parks Committee, 8:00 p.m. May 2 Spring Cleanup Day, 7:00 a.m. — 1:00 p.m. 3150 Lander Ave NE, St. Michel May 4 City Council, 7:00 p.m. May 11 STMA Ice Arena Board, 6:00 p.m. May 12 Planning Commission, 7:00 p.m. May 15 Explore Your Parks Night (multiple parks), 6:00 — 8:00 p.m. May 18 City Council, 7:00 p.m. May 25 Memorial Day, City Offices Closed May 26 Joint Powers Water Board, 6:30 p.m. 10. ADJOURNMENT Motioned by Sorensen, seconded by Olson, to adjourn the meeting at 7.57p.m. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent. Hudson. MOTIONDECLARED CARRIED. Respectfully submitted, Kimberly A. Olson, City Clerk City Council Meeting Minutes Page 5 Regular Meeting of April 6, 2015 Agenda Page 8 ST. MICHAEL — ALBERTVILLE SCHOOL DISTRICT 885 CITIES OF ALBERTVILLE AND ST. MICHAEL MARCH 30, 2015 — JOINT SPECIAL MEETING The St. Michael -Albertville School Board met in a joint session with officials from the cities of Albertville and St. Michael on Monday, March 30, 2015, at 6:00 p.m. in the St. Michael City Center. STMA School Board Members Present: Chairman Douglas Birk; Board Members: Jeffrey Lindquist, Jennifer Peyerl, Drew Scherber, Carol Steffens, Gayle Weber; and Superintendent Jim Behle. City of Albertville Present: Mayor: Jillian Hendrickson; Councilors Walter Hudson, Rob Olson, Larry Sorensen; and City Administrator Adam Nafstad. City of St. Michael Present: Mayor Jerry Zachman; Councilors: Cody Gulick, Joe Marx, Nadine Schoen, and Chris Schumm; City Administrator Steve Bot, Community Development Director Marc Weigle, and City Clerk Diana Berning. The meeting was called to order at 6:05 p.m. St. Michael Councilors Schumm/Marx moved to set the agenda. FYCC Update Superintendent Dr. Behle provided a brief update on FYCC. He introduced Nicole Rice to the group and noted she was hired about a year ago as an assistant for the program. He said FYCC is working on maintaining more accurate and timely budget reports and is continuing to evolve to meet the needs of the community. Behle said the FYCC board recently approved purchasing new scheduling software, which should help make ball field scheduling less labor intensive and more user friendly. It was commented that attendance for recent FYCC events has been really good. Yellow Ribbon Update Brad Cedergren and Nicole Rice were present to update the group on the process and action plan for establishing a Yellow Ribbon network in the St. Michael -Albertville community. The members were provided with information regarding the program and the minimum requirements necessary to be considered a Yellow Ribbon community. Cedergren reviewed the different requirements for both the cities and the School District. It was noted the Yellow Ribbon Steering Committee meets the 3rd Thursday of each month at 6:30 p.m. at the FYCC office. The group thanked Cedergren and Rice for their work in establishing St. Michael -Albertville as a Yellow Ribbon Community. School Capacity and City Development Update The members present were provided with data regarding current student enrollment and the maximum capacities at each of the STMA school buildings. Behle reviewed the numbers with the group and stated there is capacity in all of the existing school buildings. He also noted there are currently about 300 STMA families who open enroll outside of the district and 500 outside families who open enroll into the district. He said the district is expecting enrollment to remain fairly stable over the next few years and if it were projected that buildings would start to reach maximum capacity, the district could stop allowing families to open enroll into the district. There was brief discussion on the impact that universal statewide preschool would have on the district. St. Michael Administrator Bot provided a development update and showed a few areas where housing development could begin in the next year. It was noted most of the future residential Agenda Page 9 March 30, 2015 - Joint Meeting - Page 2 development would be on the west side of St. Michael, which is where there is also the most capacity available in the STMA schools. For commercial/industrial development, there is a Goodyear Auto opening soon and a Dunn Brothers Coffee Shop later this year. A few industrial users have expanded with either new buildings or additions on existing buildings. Albertville Administrator Nafstad also commented on upcoming new commercial development in Albertville, including a dollar store and expansions for Mold Tech and Old Castle. There was also discussion about installing a crosswalk across St. Michael Parkway for students in the Cascades Development to use to get to St. Michael Elementary, but for now the plan is to bus them to the school. Legislative Update (Education Equity & Transportation) STMA School Board Chairman Birk provided an update on the education equity funding issue. Those present were provided with a draft letter and Birk said the School District is asking both cities to review the letter and give approval to send it on behalf of the School Board and both City Councils to various state legislatures. The district would like to send the letter by mid - April. There was additional discussion on how city elected officials can help with the equity issue, and it was noted their involvement does help in gaining more awareness of the issue. Bot also spoke about the progress on I-94 and the work of the I-94 Coalition to continue to advocate for transportation funding throughout the entire state. The Corridors of Commerce program has worked well and it is hoped that with the focus on transportation this session that there will be approvals for further expansion of I-94. Solar Garden and Electricity Savings Update St. Michael Community Development Director Weigle explained the city has been approached by a few developers who are interested in setting up 10-20 acre sites for solar gardens that would sell the energy generated to other users. The Planning Commission conceptually talked about allowing them outside of the anticipated 20 year development area as an interim use. Behle said the school has been contacted by developers who want to sell the energy generated from the solar gardens. It is estimated that by purchasing the energy generated by solar panels, the School District could save approximately $100,000/year on the school's energy bills. STMA Ice Arena Update St. Michael Councilor Schumm provided a brief update on the Ice Arena. He noted the new dehumidification system is working well, although the natural gas usage went up quite a bit with the new system. Minnesota Amateur Sports Commission recently completed a market study for a second sheet of ice and the Arena Board is working with Youth Hockey on the next steps and follow up from that report. St. Michael Councilor Marx shared some history from when his dad served on the School Board and the Board's decision to build a High School, with the first graduating class in 1969. It's amazing to see how the School District has changed and grown since then. Other Updates There were no other updates to report on. St. Michael Councilors Marx/Schumm moved to adjourn at 7:23 p.m. All voted aye. Attest: Mayor Jerry Zachman Agenda Page 10 �lbcrtvill£ Mayor and Council Request for Action Smoii living. gig lifs. April 16, 2015 SUBJECT: CONSENT - FINANCE — PAYMENT OF BILLS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Authorize the Monday, April 20, 2015 payment of the claims as presented except the bills specifically pulled, which are passed by separate motion. The claims listing has been provided to Council as a separate document. The claims listing is available for public viewing at City Hall upon request. 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) and key issues will be presented in the claims listing document. 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. Responsible Person: Tina Lannes, Finance Director Submitted through: Adam Nafstad, City Administrator-PWD Attachment: List of Claims (under separate cover) M:\Public Data\City Council\Council Packet Infonnation\2015\042015\2015-04-20 Finance Bills Report (RCA).doc Meeting Date: April 20, 2015 a Page 11 w 1b£r`tVill£ Mayor and Council Request for Action - _� April 14, 2015 SUBJECT: CONSENT — CITY CLERK — ST. MICHAEL LIONS CLUB TEMPORARY 3.2% MALT LIQUOR LICENSE RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following: MOTION TO: Approve a Two -Day Temporary 3.2% Malt Liquor License for the St. Michael Lions Club for the 2015 "Kick for a Cure" fundraiser on May 16-17, 2015. BACKGROUND: An application for a Two -Day Temporary 3.2% Malt Liquor License has been submitted by the St. Michael Lions Club. The license is for the annual "Kick for a Cure" kickball tournament to raise funds for cancer research. The event is organized by the family of Tom Barthel. The tournament will occur on May 16 and 17, 2015 at Central Park, the Lions Park Pavilion, and picnic area. KEY ISSUES: • The St. Michael Lions Club has submitted the appropriate application and fee for the license. • Approval of the license shall be contingent upon receipt of the appropriate liquor liability coverage. • This will be the 71h annual fundraiser for cancer research. FINANCIAL CONSIDERATIONS: There is minimal financial revenue collected from the applicant for the liquor license. LEGAL CONSIDERATIONS: The Mayor and City Council have the authority to review and approve or deny any liquor license. Responsible Person/Department: Kimberly Olson, City Clerk Submitted through: Adam Nafstad, City Administrator-PWD Attachments: St. Michael Lions Club Liquor Application M:\Public Data\City Council\Council Packet Information\2015\042015\2015-04-20 Kick for a Cure Temp 3.2 Liquor License.doc a Page 12 Meeting Date: April 20, 2015 At ,lberNme APPLICATION FOR ONE -DAY 3.2% MALT LIQUOR LICENSE A temporary one -day 3.2 Malt Liquor License can be issued to groups that quality as a "Bona Fide Club" under Minnesota State Statutes as listed below. There is a $10.00 per day fee for the license. MN Statute 340A.I01 Subd. 7.CIub. "Club" is an incorporated organization organized under the laws of the state for civic, fraternal, social, or business purposes, for intellectual improvement, or for the promotion of sports, or a congressionally chartered veterans' organization, which: (I) has more than 30 menrbers; (2) has owned or rented a building or space in a building for more than one year that is suitable and adequate for the accommodation of its inembers_ (3) is directed by a board of directors, executive committee, or either similar body chosen by the members at a meeting held for that purpose. No member, officer, agent, or employee shall receive any profit front the distribution or sale of beverages to the members of the club, or their guests, beyond a reasonable salary or wages fixed and voted each year by the governing body. Name of Applicant (organization): s M. i .1 i 0 I -'s Name, address, telephone number and position held with Club of person completing application: a c$. - F i t;,, t' z € z t . n. "-'"� ✓ „':. r alr f, .7". 3 � E i rJ s Name and Address of President and Secretary of Applicant: Date(s) of activity: 3 r �- Location where sales will occur: o Hours of operation: ' r MAPublic Data\City ClerkTicensesTiquor License Informati1n\A � aat'page s, One -Day Liquor License - Revised.doc Pr miles from which 3. % malt liquor will be dispensed on said date: Purpose for which funds derived will be used: '- The undersigned certifies that it complies with Minnesota State Statutes, Section 340.001, Subdivision 7, in that it qualifies as a "Bona Fide Club" within that section; and that this application makes petition for a limited license as a "Boma Fide Club" for a limited, non -intoxicating malt liquor license. o Date ivl:ll'ublic DatalCity ClerfclLicanseslLiguor License informatiz ppl�Caal v For W one -Bay Liquor License - Revised.doc w lb£r`tVill£ Mayor and Council Request for Action - _- LM,,Q, StQ Cft Lff- April 15, 2015 SUBJECT: CONSENT - FINANCE — RESOLUTION TRANSFERRING FUNDS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following resolution: MOTION TO: Approve Resolution No. 2015-010 entitled a Resolution to Transfer Funds. • Transfer $50,000 from I-94 Capital Project Fund No. 468 to Fund No. 101 for engineering services 2014 • Transfer $7,364 from General Fund No. 101 to Fund 204 Sewer Access Fund for loan repayment • Transfer $17,268 from Water Access Fund No. 206 to Fund 602 Water Fund for annual bond payments • Transfer $176,427 from Sewer Access Fund No. 204 to Fund 601 Sewer Fund for annual bond payments • Transfer $474,029.41 from the General Fund No. 101 to Fund No. 102 Capital Outlay Fund BACKGROUND: City staff and auditors annually review and recommend transfer of funds for designated purposes, bond payments, to close funds, or to fund a negative balance. POLICY CONSIDERATIONS: It is the Mayor and Council's policy to review and approve all fund transfers. FINANCIAL CONSIDERATIONS: Plan funding options on continuing and new projects. Responsible Person/Department: Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Resolution No. 2015-010 M:\Public Data\City Council\Council Packet Information\2015\042015\04 20 2015 Finance Transfers RCA (tl).doc Meeting Date: April 20, 2015 a Page 15 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF NHNNESOTA RESOLUTION NO.2015-010 A RESOLUTION TO TRANSFER FUNDS WHEREAS, the Albertville City Council has reviewed its annual audit; and NOW, THEREFORE, BE IT RESOLVED by the Albertville City Council that the following actions are implemented: Transfer $50,000 from I-94 Capital Project Fund No. 468 to Fund No. 101 for engineering services 2014, and; Transfer $7,364 from General Fund No. 101 to Fund 204 Sewer Access Fund for loan repayment, and; Transfer $17,268 from Water Access Fund No. 206 to Fund 602 Water Fund for annual bond payments, and; Transfer $176,427 from Sewer Access Fund No. 204 to Fund 601 Sewer Fund for annual bond payments, and; Transfer $474,029.41 from the General Fund No. 101 to Fund No. 102 Capital Outlay Fund Adopted by the Albertville City Council this 20th day of April 2015. Kimberly A. Olson, City Clerk Jillian Hendrickson, Mayor Agenda Page 16 w lb£r`tVill£ Mayor and Council Request for Action - _� April 15, 2015 SUBJECT: CONSENT — FINANCE — RESOLUTION AUTHORIZING AND DOCUMENTING INTER - FUND LOANS/ADVANCES FROM THE SEWER ACCESS FUND RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve Resolution No. 2015-011 entitled a Resolution Authorizing and Documenting Inter -Fund Loans to Fund Negative Fund balances. Inter -Fund Loan from Sewer Access Fund (204) to 2003A GO Imp Bond Fund (357) in the amount of $769,638 to fund the negative balance in the debt service fund; and, Inter -Fund Loan from Sewer Access Fund (204) to Prairie Run Capital Project Fund (473) in the amount of $751,251 to fund the negative balance in the capital project fund. Inter -Fund Loan from Sewer Access Fund (204) to TIF Fund 14 (414) in the amount of $170,000 to fund the negative balance in the fund. BACKGROUND: Throughout the year, the City Council approves projects with plans to issue bonds or some other type of financing at a later time. Inter -fund loans provide interim financing until the other financing is completed. In some cases, inter -fund loans are the primary source to finance projects that have a very short financing term. An example of this is carrying assessments for a project for a few years where it is not cost effective to issue new debt. At least annually, City staff and auditors review and recommend inter -fund loans/advances to fund running negative balances so as to remain in compliance with Generally Accepted Accounting Principles (GAAP). POLICY CONSIDERATIONS: It is the Mayor and Council's policy to review and approve all inter -fund loans/advances. FINANCIAL CONSIDERATIONS: At least annually, the City must fund all negative running balances for Capital Projects, Debt Service or other miscellaneous funds in accordance with General Accounting Principals (GAAP). The inter -fund loan or advance is a loan from the Sewer Access Charge Fund (SAC) to the respective negative balance funds at an interest rate equal to the rate of investment earned by the City's investments. Included in the loan is a financial commitment detailing the source of funds to repay the loan. These inter -fund loans are an inexpensive way to fund some City activities instead of issuing bonds. LEGAL CONSIDERATIONS: The Mayor and Council have the authority to review and direct staff to take action regarding all financial matters. Responsible Person/Department: Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator — PWD Attachments: Resolution No. 2015-011 M:\Public Data\City Council\Council Packet Information\2015\042015\04 20 2015 Finance Inter Fund Loan RCA (tl).doc Meeting Date: April 20, 2015 a Page 17 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF NHNNESOTA RESOLUTION NO.2015-011 A RESOLUTION AUTHORIZING AND DOCUMENTING INTER -FUND LOAN TO FUND NEGATIVE FUND BALANCES WHEREAS, the Albertville City Council has reviewed its annual audit; and WHEREAS, an interfund loan is hereby established in the amount of $1,690,889 with funds to be allocated into the following: Fund 357 2003A GO Imp Bond $769,638 Fund 473 Prairie Run $751,251 Fund 414 TIF 14 $170,000 NOW THEREFORE, BE IT RESOLVED by the Albertville City Council to approve an inter -fund loan from Fund 204 of $1,690,889 effective December 31, 2014 at an interest rate of 0%. Adopted by the Albertville City Council this 20th day of April 2015 Kimberly Olson, City Clerk Jillian Hendrickson, Mayor Agenda Page 18 bcrt�ijj �lC ��ftmuft. Mayor and Council Request for Action April 16, 2015 SUBJECT: PLANNING - MOLD TECH ECONOMIC DEVELOPMENT TAX INCREMENT FINANCING RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve the following resolutions: • Resolution No. 2015-012 Approving the Establishment of TIF District No. 16 • Resolution No. 2015-013 Approving Contract and TIF Note • Resolution No. 2015-014 Approving Interfund and Administration Costs BACKGROUND: Mold Tech is a local industry that was established in 1998 and produces molds for plastic parts for medical equipment and other devices. This is a clean industry with high paying jobs. In 2014, Mold Tech approached the City to explain their needs for expansion. At that time, they were exploring either expanding at the current location or moving the business to Monticello to a new constructed larger building. Consistent with the City's Vision Study goals to retain and expand the City's industrial land use, tax base and local employment opportunities, City staff met with Mold Tech to discuss options to keep them in Albertville. The City offered TIF assistance provided Mold Tech made the following commitments: 1. Purchase the current Mold Tech site and building. 2. Mold Tech constructs a 12,000 square foot building addition. The construction shall be masonry and have a construction value of $55 per square foot. 3. Mold Tech submits a building and site plan that complies with performance standards of the Albertville Zoning Ordinance. 4. Mold Tech pay all building permit fees. In response to the Mold Tech commitments, the City offers the following: The City would establish an economic development TIF District over the Mold Tech site. The collected TIF would be used to cover the following: a. The City will defer the SAC/WAC and allow Mold Tech to pay them over time. After the payment of SAC/WAC the city will reimburse Mold Tech for these costs using TIF receipts. b. The balance of TIF funds would be given to Mold Tech for TIF eligible expenses (grading, parking lot, footings, etc.). M:\Public Data\City Council\Council Packet Infonnation\2015\042015\Mold Tech RCA.docx Meeting Date: Apri120, 2015 enda Page 19 Mayor and Council Request for Action — April 20, 2015 Mold Tech Economic Development TIF Page 2 of 2 2. The City will give Mold Tech first right of refusal of Lot 1, Block 4, Barthel's Industrial Park 2n Addition. KEY ISSUES: Mold Tech's ownership formed Glacier Ridge Properties LLC and has acquired the Mold Tech site and building. Mold Tech has submitted a site and building plan development application for review by the Planning Commission in May. The TIF will be "pay as you go" where TIF payments to the City and Mold Tech will be paid annually as collected over the term of the TIF District. POLICY/PRACTICES CONSIDERATIONS: The approval of TIF assistance is consistent with the stated economic development goals of Albertville's Vision Study. FINANCIAL CONSIDERATIONS: The proposed TIF assistance is a "pay as you go" program meaning the City will only pay out monies as they are annually received by the County. The City will be using an inter -fund loan to pay upfront administrative costs of associated with setting up the TIF plan and contracts. This loan will be paid back to the city with interest from the collected TIF funds. LEGAL CONSIDERATIONS: As specified in the resolution, the TIF Plan is to be created in conformance with State Statutes. The obligations of both Mold Tech, Glacier Ridge Properties LLC and the City are outlined and assigned through a contract for private development to be entered into by both parties. Responsible Person/Department: Alan Brixius, City Planner Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: • Resolution No. 2015-012 Approving the Establishment of TIF District No. 16 • Resolution No. 2015-013 Approving Contract and TIF Note • Resolution No. 2015-014 Approving Interfund and Administration Costs • TIF Contract and Plan M:\Public Data\City Council\Council Packet Infonnation\2015\042015\Mold Tech RCA.docx Meeting Date: Apri120, 2015 enda Page 20 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF ALBERTVILLE, MINNESOTA HELD: April 20, 2015 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Albertville, Wright County, Minnesota, was duly called and held on the 201h day of April, 2015, at approximately 7:00 p.m. The following members of the Council were present: and the following were absent: Member introduced the following resolution and moved its adoption: RESOLUTION 2015-012 RESOLUTION MODIFYING MUNICIPAL DEVELOPMENT DISTRICT NO. 1 AND MODIFYING THE DEVELOPMENT PROGRAM THEREFOR AND ESTABLISHING TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 16 THEREIN, AND APPROVING A TAX INCREMENT FINANCING PLAN THEREFOR WHEREAS: A. It has been proposed that the City of Albertville, Minnesota (the "City") modify Municipal Development District No. 1 (the "Development District") and approve a modification to the Development Program therefor, establish Tax Increment Financing (Economic Development) District No. 16 (the "TIF District") therein and approve and accept the proposed Tax Increment Financing Plan (the "TIF Plan") therefor, pursuant to Minnesota Statutes, Sections 469.124 through 469.134 and Minnesota Statutes, Sections 469.174 through 469.1794, both inclusive, as amended (the "Act"); and B. The City Council has investigated the facts and has caused to be prepared a proposed modification to the Development Program for the Development District, and has caused to be prepared a proposed TIF Plan for the TIF District; and C. The City has performed all actions required by law to be performed prior to the modification of the Development District and TIF District, and the adoption of the modified Development Program and the proposed TIF Plan therefor, including, but not limited to, notification of Wright County and St. Michael -Albertville Public Schools (ISD 9885) having taxing jurisdiction over the property to be included in the TIF District and the holding of a public hearing upon published and mailed notice as required by law. Agenda Page 21 City of Albertville Resolution No. 2015-012 NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Albertville as follows: 1. Municipal Development District No. 1. The modified Development Program for the Development District contained in Article II of the TIF Plan for the TIF District is hereby ratified and affirmed. 2. Tax Increment Financing (Economic Development) District No. 16. The TIF District is hereby established in the City within the Development District, the initial boundaries of which are fixed and determined as described in the TIF Plan for the TIF District. 3. Tax Increment Financing Plan. The TIF Plan is adopted as the tan increment financing plan for the TIF District, and the City Council makes the following findings: (a) The TIF District is an economic development district as defined in Minnesota Statutes, Section 469.174, Subd. 12; the proposed assistance is for an expansion to an existing manufacturing facility, as described below. (b) Development in the TIF District will create or retain jobs in this state. The developer of this project has provided estimates of the jobs created and retained, and will be contractually obligated to meet certain job and wage goals as required under Minnesota Statutes, Sections 116J.993 — 116J.995. (c) The proposed development, in the opinion of the City Council, would not occur solely through private investment. The reasons supporting this finding are that: (i) The need for the use of tax increment financing has been determined in negotiations with the developer of the project. The developer has provided supporting materials to attest to inability to undertake the project without the assistance provided by the City. The extraordinary cost of the site improvements and preparation costs, and required utilities have proven to be prohibitive. Tax increments are needed to assist with these development costs for the property. (ii) The proposed project will allow a business to attract and retain businesses and new development into the area in and around the industrial business area of the City. The proposed development consists of the construction of an approximately 12,000 square foot expansion to an existing 12,130 square foot manufacturing facility on property within the City. Retaining this business and related jobs is important to the economic future of the community. (iii) Private investment will not finance these development activities because of the prohibitive costs of the underlying infrastructure. It is necessary to finance a portion of these costs through the use of tax increment financing. Page 2 Agenda Page 22 City of Albertville Resolution No. 2015-012 (iv) A comparative analysis of estimated market values both with and without establishment of the TIF District and the use of tax increments has been performed as described above. Such analysis is found in Exhibit I of the TIF Plan, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the TIF District and the use of tax increments. (v) In the opinion of the City Council, 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 supporting this finding can be found in Exhibit I of the TIF Plan. (d) The TIF Plan for the TIF District conforms to the general plan for development of the City as a whole. The reasons for supporting this finding are that: (i) The TIF District is properly zoned; and (ii) The TIF Plan will generally complement and serve to implement policies adopted in the City's comprehensive plan. (e) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Development District by private enterprise. The reasons supporting this finding are that the development activities are necessary so that development and redevelopment by private enterprise can occur within the Development District. 4. Public Purpose. The adoption of the Development Program for the Development District, and the adoption of the TIF Plan for the TIF District therein conform in all respects to the requirements of the Act and will help fulfill a need to provide employment opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. 5. Certification and Filing. The City Clerk is authorized and directed to transmit a certified copy of this resolution together with a certified copy of the TIF Plan to the Auditor of Wright County with a request that the original tax capacity of the property within the TIF District be certified to the City pursuant to Section 469.177, Subd. I of the Act, and to file a copy of the Development Program and the TIF Plan with the Minnesota Commissioner of Revenue and State Auditor as required by the Act. Page 3 Agenda Page 23 City of Albertville Resolution No. 2015-012 6. Administration. The administration of the Development District and the TIF District is assigned to the City Administrator who shall from time to time be granted such powers and duties pursuant to the Act as the City Council may deem appropriate. The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Adopted by the City Council of the City of Albertville this 20tb day of April, 2015. ATTEST: Kimberly A. Olson, City Clerk Jillian Hendrickson, Mayor Page 4 Agenda Page 24 STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF ALBERTVILLE I, the undersigned, being the duly qualified and acting City Clerk of the City of Albertville, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to the modification of Municipal Development District No. 1 and the establishment of Tax Increment Financing (Economic Development) District No. 16 therein in the City. WITNESS my hand this 201h day of April, 2015. Kimberly A. Olson, City Clerk Agenda Page 25 CITY OF ALBERTVILLE RESOLUTION NO.2015-013 RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS TAX INCREMENT REVENUE NOTE TO MOLD -TECH, INC. AND APPROVING A CONTRACT FOR PRIVATE DEVELOPMENT WITH GLACIER RIDGE PROPERTIES LLC AND MOLD -TECH, INC. BE IT RESOLVED BY the City Council ("Council") of the City of Albertville, Minnesota (the "City") as follows: Section 1. Authorization; Award of Sale. 1.01. Authorization. The City of Albertville has heretofore approved the establishment of its Tax Increment Financing District No. 16 (the "TIF District") within Municipal Development District No. 1 ("Development District"), and has adopted a tax increment financing plan for the purpose of financing certain improvements within the Development District. Pursuant to Minnesota Statutes, Section 469.178, the City is authorized to issue and sell its bonds for the purpose of financing a portion of the public development costs of the Development District. Such bonds are payable from all or any portion of revenues derived from the TIF District and pledged to the payment of the bonds. The City hereby finds and determines that it is in the best interests of the City that it issue and sell its Tan Increment Revenue Note, Series 2015 (Mold -Tech Project) (the "Note") for the purpose of financing certain public development costs of the Development District. 1.02. Issuance, Sale, and Terms of the Note. (a) The City hereby approves the Contract for Private Development dated as of , 2015 (the "Agreement"), between the City, Glacier Ridge Properties, LLC, and Mold -Tech, Inc. (the "Owner"), and authorizes the Mayor and City Administrator to execute such Agreement in substantially the form on file with City, subject to modifications that do not alter the substance of the transaction and are approved by such officials, provided that execution of the Agreement by such officials is conclusive evidence of their approval. (b) The City hereby approves issuance of the Note pursuant to the Agreement. The Note shall be issued in the maximum aggregate principal amount of $98,000 to the Owner in consideration of certain eligible costs incurred by the Owner under the Agreement, shall be dated the date of delivery thereof, and shall bear interest at the rate of 3.0% per annum to the earlier of maturity or prepayment. The Note will be issued in a single series designated Series 2015 (Mold - Tech Project), issued in the principal amount of $98,000 to reimburse the Owner for Public Development Costs in accordance with Section 3.3(b) of the Agreement. The Note is secured by Available Tan Increment, as further described in the form of the Note herein. The City hereby 459490vI MNI AL141-63 Agenda Page 26 City of Albertville Resolution No. 2015-013 delegates to the Finance Director the determination of the date on which the Note is to be delivered, in accordance with the Agreement. Section 2. Form of Note. The Note shall be in substantially the following form, with the blanks to be properly filled in and the principal amount adjusted as of the date of issue: (The remainder of this page is intentionally left blank.) Page 2 459490vI MNI AL141-63 Agenda Page 27 City of Albertville Resolution No. 2015-013 UNITED STATE OF AMERICA STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF ALBERTVILLE No. R-1 TAX INCREMENT REVENUE NOTE SERIES 2015 (MOLD -TECH PROJECT) Rate 3.0% R Date of Original Issue The City of Albertville ("City") for value received, certifies that it is indebted and hereby promises to pay to Mold -Tech, Inc. or registered assigns (the "Owner"), the principal sum of $ and to pay interest thereon at the rate of 3.0% per annum, but solely from the sources and to the extent set forth herein. Capitalized terms shall have the meanings provided in the Contract for Private Development between the City, Glacier Ridge Properties LLC, and the Owner, dated as of , 2015 (the "Agreement"), unless the context requires otherwise. I. Payments. Principal and interest ("Payments") shall be paid on August 1, 20 and each February 1 and August I thereafter to and including February 1, 20 ("Payment Dates") in the amounts and from the sources set forth in Section 3 herein. Payments shall be applied first to accrued interest, and then to unpaid principal. Payments are payable by mail to the address of the Owner or such other address as the Owner may designate upon 30 days written notice to the City. Payments on this Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. Interest at the rate stated herein shall accrue on the unpaid principal, commencing on the date of original issue. Interest shall be computed on the basis of a 360-day year consisting of 12 months of 30 days. 3. Available Tax Increment. (a) Payments on this Note are payable on each Payment Date solely from and in the amount of Available Tax Increment, which shall mean 90% of the Tan Increment attributable to the Minimum Improvements and Development Property that is paid to the City by Wright County in the six months preceding each Payment Date on the Note, pursuant to Section 3.3 of the Agreement. Available Tan Increment shall not include any Tax Increment if, as of any Payment Date, there is an uncured Event of Default under the Agreement. Page 3 459490vI MNI AL141-63 Agenda Page 28 City of Albertville Resolution No. 2015-013 (b) The City shall have no obligation to pay principal of and interest on this Note on each Payment Date from any source other than Available Tax Increment and the failure of the City to make Payments on any Payment Date shall not constitute a default hereunder as long as the City pays principal or interest hereon to the extent of Available Tan Increment. The City shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final Payment on February 1, 20. 4. Default. If on any Payment Date there has occurred and is continuing any Event of Default under the Agreement, the City may withhold from payments hereunder all Available Tan Increment. If the Event of Default is thereafter cured in accordance with the Agreement, the Available Tax Increment withheld under this Section shall be deferred and paid, without interest thereon, within 30 days after the Event of Default is cured. If the Event of Default is not cured in a timely manner, the City may terminate this Note by written notice to the Owner in accordance with the Agreement. 5. Prepayment. The principal sum payable under this Note is prepayable in whole or in part at any time by the City without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular Payment otherwise required to be made under this Note. 6. Nature of Obligation. This Note is one of an issue in the total principal amount of $ , issued to aid in financing certain public development costs of a Development District undertaken by the City pursuant to Minnesota Statutes, Sections 469.124 through 469.134, and is issued pursuant to an authorizing resolution (the "Resolution") duly adopted by the City on , 20___, and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.1794, as amended. This Note is a limited obligation of the City which is payable solely from Available Tan Increment pledged to the payment hereof under the Resolution. This Note and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Note or other costs incident hereto except out of Available Tan Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Note or other costs incident hereto. 7. Registration and Transfer. This Note is issuable only as a fully registered note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this Note is transferable upon the books of the City kept for that purpose at the principal office of the City Finance Director, by the Owner hereof in person or by such Owner's attorney duly authorized in writing, upon surrender of this Note together with a written instrument of transfer satisfactory to the City, duly executed by the Owner. Upon such transfer or exchange and the payment by the Owner of any tan, fee, or governmental charge required to be paid by the City with respect to such transfer or exchange, there will be issued in the name of the transferee a new Note of the same aggregate principal amount, bearing interest at the same rate and maturing on the same dates. Page 4 459490vI MNI AL141-63 Agenda Page 29 City of Albertville Resolution No. 2015-013 Except as otherwise provided in Section 3.3(c) of the Agreement, this Note shall not be transferred to any person or entity, unless the City has provided written consent to such transfer and the City has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory to the City, that such transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this Note a valid and binding limited obligation of the City according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. IN WITNESS WHEREOF, the City Council of the City of Albertville has caused this Note to be executed with the manual signatures of its Mayor and City Administrator, all as of the Date of Original Issue specified above. CITY OF ALBERTVILLE City Administrator Mayor REGISTRATION PROVISIONS The ownership of the unpaid balance of the within Note is registered in the bond register of the City Finance Director, in the name of the person last listed below. Date of Signature of Registration Registered Owner City Finance Director Mold -Tech, Inc. Federal Tax I.D. No. 41-1325122 459490vI MNI AL141-63 Page 5 Agenda Page 30 City of Albertville Resolution No. 2015-013 Section 3. Terms, Execution and Delivery. 3.01. Denomination, Payment. The Note shall be issued as a single typewritten note numbered R-1. The Note shall be issuable only in fully registered form. Principal of and interest on the Note shall be payable by check or draft issued by the Registrar described herein. 3.02. Dates, Interest Payment Dates. Principal of and interest on the Note shall be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not such day is a business day. 3.03. Registration. The City hereby appoints the City Finance Director to perform the functions of registrar, transfer agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its office a bond register in which the Registrar shall provide for the registration of ownership of the Note and the registration of transfers and exchanges of the Note. (b) Transfer of Note. Upon surrender for transfer of the Note duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form reasonably satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, a new Note of a like aggregate principal amount and maturity, as requested by the transferor. Notwithstanding the foregoing, the Note shall not be transferred to any person other than an affiliate, or other related entity, of the Owner unless the City has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory to the City, that such transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. The Registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each Payment Date and until such Payment Date. (c) Cancellation. The Note surrendered upon any transfer shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (d) Improper or Unauthorized Transfer. When the Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Note or separate instrument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (e) Persons Deemed Owners. The City and the Registrar may treat the person in whose name the Note is at any time registered in the bond register as the absolute owner of the Note, whether the Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Note and for all other purposes, and all such payments so made Page 6 459490vI MNI AL141-63 Agenda Page 31 City of Albertville Resolution No. 2015-013 to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the City upon such Note to the extent of the sum or sums so paid. (f) Taxes, Fees and Charges. For every transfer or exchange of the Note, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tan, fee, or other governmental charge required to be paid with respect to such transfer or exchange. (g) Mutilated, Lost, Stolen or Destroyed Note. In case any Note shall become mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new Note of like amount, maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated Note or in lieu of and in substitution for such Note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case the Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. The Note so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the City. If the mutilated, lost, stolen, or destroyed Note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Note prior to payment. 3.04. Preparation and Delivery. The Note shall be prepared under the direction of the City Finance Director and shall be executed on behalf of the City by the signatures of its Mayor and Administrator. In case any officer whose signature shall appear on the Note shall cease to be such officer before the delivery of the Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. When the Note has been so executed, it shall be delivered by the City Administrator to the Owner thereof in accordance with the Agreement. Section 4. Security Provisions. 4.01. Pledge. The City hereby pledges to the payment of the principal of and interest on the Note all Available Tan Increment as defined in the Note. Available Tax Increment shall be applied to payment of the principal of and interest on the Note in accordance with the terms of the form of Note set forth in Section 2 of this resolution. 4.02. Bond Fund. Until the date the Note is no longer outstanding and no principal thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains unpaid, the City shall maintain a separate and special "Bond Fund" to be used for no purpose other than the payment of the principal of and interest on the Note. The City irrevocably agrees to appropriate to the Bond Fund on or before each Payment Date the Available Tan Increment. Any Available Tan Increment remaining in the Bond Fund shall be transferred to the City's account for the TIF District upon the termination of the Note in accordance with its terms. 4.03. Additional Obligations. The City may not apply or pledge Available Tax Increment in excess of the amount needed to make Payments due on each Payment Date, to any other obligations (including without limitation any additional interfund loan). Page 7 459490vI MNI AL141-63 Agenda Page 32 City of Albertville Resolution No. 2015-013 Section 5. Certification of Proceedings. 5.01. Certification of Proceedings. The officers of the City are hereby authorized and directed to prepare and furnish to the Owner of the Note certified copies of all proceedings and records of the City, and such other affidavits, certificates, and information as may be required to show the facts relating to the legality and marketability of the Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. Section 6. Effective Date. This resolution shall be effective upon approval. Adopted by the City Council of the City of Albertville this 20tb day of April, 2015. Jillian Hendrickson, Mayor ATTEST: Kimberly A. Olson, City Clerk Page 8 459490vI MNI AL141-63 Agenda Page 33 CITY OF ALBERTVILLE RESOLUTION NO. 2015-014 AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 16 BE IT RESOLVED By the City Council (the "Council") of the City of Albertville, Minnesota (the "City") as follows: Section 1. Background. 1.01. The City has established Tax Increment Financing District No. 16 (the "TIF District") within Municipal Development District No. 1 (the "Development District") pursuant to Minnesota Statutes, Sections 469.174 to 469.1799, as amended (the "TIF Act") and Sections 469.124 to 469.134, as amended (the "Municipal Development Act"). 1.02. The City may incur certain costs related to the TIF District which may be financed on a temporary basis from available City funds. 1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the City is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.04. The City has determined that it may pay for administrative costs associated with the establishment and ongoing administration of the TIF District (the "Administrative Costs Advance") on a temporary basis from the General Fund or any other fund from which such advances may be legally made as an interfund loan pursuant to Section 469.178, Subd. 7 of the TIF Act. 1.05. The City hereby designates the Administrative Costs Advance as an interfund loan in accordance with the terms of this resolution and the TIF Act. Section 2. Repayment of Interfund Loan. 2.01. The City will reimburse itself for the Administrative Costs Advance in an amount not to exceed $12,000, together with interest at the rate of 4.0% per annum (the "Interfund Loan"). Interest accrues on the principal amount from the date of each advance. The interest rate is no more than the greatest of the rate specified under Minnesota Statutes, Section 270C.40 and Section 549.09, both in effect for calendar year 2015, and will not be adjusted. 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi- annually on each February 1 and August 1 (each a "Payment Date"), commencing on the first Payment Date on which the City has Available Tax Increment (defined below), or on any other 459502v1 MNI AL141-63 Agenda Page 34 City of Albertville Resolution No. 2015-014 dates determined by the City Administrator, through the date of last receipt of tax increment from the TIF District. 2.03. Payments on the Interfund Loan will be made solely from Available Tax Increment, defined as 10% of the tax increment from the TIF District received by the City from Wright County in the six-month period before any Payment Date. Payments shall be applied first to accrued interest, and then to unpaid principal. Interest accruing from the Loan Date will be compounded semiannually on February I and August 1 of each year and added to principal until the first Payment Date, unless otherwise specified by the City Administrator. Available Tax Increment shall be applied to payment on the Interfund Loan and for no other purpose until the Interfund Loan is fully paid or forgiven as provided in Section 2.06 hereof. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes, or contracts secured in whole or in part with available tax increment, and are on a parity with any other outstanding or future interfund loans secured in whole or in part with available tax increment. 2.04. The principal sum and all accrued interest payable under this resolution is pre- payable in whole or in part at any time by the City without premium or penalty. 2.05. This resolution is evidence of an internal borrowing by the City in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. The Interfund Loan shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of Available Tax Increment. The City shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. The City may at any time make a determination to forgive the outstanding principal amount and accrued interest on the Interfund Loan to the extent permissible under law. 2.07. The City may from time to time amend the terms of this Resolution to the extent permitted by law, including without limitation amendment to the payment schedule and the interest rate; provided that the interest rate may not be increased above the maximum specified in Section 469.178. subd. 7 of the TIF Act. Section 3. Effective Date. This resolution is effective upon execution in full of the Contract for Private Development between the City, Glacier Ridge Properties LLC, and Mold - Tech, Inc. Page 2 459502v1 MNI AL141-63 Agenda Page 35 City of Albertville Resolution No. 2015-014 Adopted by the City Council of the City of Albertville this 20th day of April, 2015. Jillian Hendrickson, Mayor ATTEST: Kimberly A. Olson, City Clerk Page 3 459502v1 MNI AL141-63 Agenda Page 36 Third draft, April 6, 2015 CONTRACT FOR PRIVATE DEVELOPMENT By and Between CITY OF ALBERTVILLE, MINNESOTA And GLACIER RIDGE PROPERTIES LLC And MOLD -TECH, INC. Dated as of: , 2015 This document was drafted by: KENNEDY & GRAVEN, Chartered (MNI) 470 U.S. Bank Plaza Minneapolis, Minnesota 55402 Telephone: 337-9300 458916v3 MNI AL141-63 Agenda Page 37 TABLE OF CONTENTS Page PREAMBLE.............................................................................................................................I ARTICLE I Definitions Section1.1. Definitions...........................................................................................................2 ARTICLE II Representations and Warranties Section 2.1. Representations by the City................................................................................ 5 Section 2.2. Representations and Warranties by the Developer and Lessee .......................... 5 ARTICLE III Status of Property; Financing of Public Development Costs Section 3.1. Status of the Development Property ................................................................... 7 Section 3.2. Public Development Costs.................................................................................. 7 Section 3.3. Reimbursement of Public Development Costs; Issuance of Note ...................... 7 Section 3.4. Business Subsidy Agreement.............................................................................. 8 Section 3.5. Payment of Administrative Costs..................................................................... 10 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements........................................................ 11 Section 4.2. Construction Plans............................................................................................ 1 I Section 4.3. Commencement and Completion of Construction............................................12 Section 4.4. Certificate of Completion.................................................................................12 ARTICLE V Section5.1. Insurance........................................................................................................... 14 Section5.2. Subordination.................................................................................................... 15 ARTICLE VI Delinquent Taxes and Review of Taxes Section 6.1. Right to Collect Delinquent Taxes.................................................................... 16 Section 6.2. Review of Taxes............................................................................................... 16 4589160 MNI AL141-63 1 Agenda Page 38 ARTICLE VII Financing Section7.1. Financing........................................................................................................... 17 Section 7.2. City's Option to Cure Default on Mortgage ..................................................... 17 Section 7.3. Subordination and Modification for the Benefit of Mortgagee ........................ 17 ARTICLE VIII Prohibitions Against Assignment and Transfer, Indemnification Section 8.1. Representation as to Development.................................................................... 18 Section 8.2. Prohibition Against Developer's Transfer of Property and Assignment of Agreement................................................................................ 18 Section 8.3. Release and Indemnification Covenants...........................................................19 ARTICLE IX Events of Default Section 9.1. Events of Default Defined................................................................................ 21 Section 9.2. Remedies on Default......................................................................................... 21 Section 9.3. No Remedy Exclusive....................................................................................... 21 Section 9.4. No Additional Waiver Implied by One Waiver ................................................ 22 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; City Representatives Not Individually Liable ................ 23 Section 10.2. Equal Employment Opportunity....................................................................... 23 Section 10.3. Restrictions on Use........................................................................................... 23 Section 10.4. Provisions Not Merged With Deed................................................................... 23 Section 10.5. Titles of Articles and Sections.......................................................................... 23 Section 10.6. Notices and Demands....................................................................................... 23 Section10.7. Counterparts......................................................................................................24 Section10.8. Recording..........................................................................................................24 Section10.9 Amendment.......................................................................................................24 Section10.10 City Approvals.................................................................................................. 24 Section 10.11 Termination.......................................................................................................24 Section 10.12 Choice of Law and Venue................................................................................. 24 TESTIMONIUM............................................................ SIGNATURES.............................................................. SCHEDULE A Description of Development Property SCHEDULE B Authorizing Resolution SCHEDULE C Certificate of Completion ...................................................... S-1 ...................................................... S-1 4589160 MNI AL141-63 11 Agenda Page 39 CONTRACT FOR PRIVATE DEVELOPMENT THIS AGREEMENT, made as of the day of , 2015, by and between THE CITY OF ALBERTVILLE, MINNESOTA, a Minnesota municipal corporation (the "City"); and GLACIER RIDGE PROPERTIES LLC, a Minnesota limited liability company (the "Developer"); and MOLD -TECH, INC, a Minnesota corporation (the "Lessee"). WITNESSETH: WHEREAS, the City has undertaken a program to promote economic development and job opportunities and to promote the development of land which is underutilized within the City, and in this connection created a development project known as Development District No. 1 (the "Development District") pursuant to Minnesota Statutes, Sections 469.124 to 469.134, as amended (the "Municipal Development Act"); and WHEREAS, pursuant to the Municipal Development Act, the City is authorized to acquire real property, or interests therein, and to undertake certain activities to facilitate the development of real property by private enterprise; and WHEREAS, the Developer has acquired certain property described in Schedule A (the "Development Property") within the Development District, and intends to lease the Development Property to the Lessee in order to develop certain improvements described herein on the Development Property; and WHEREAS, the City has approved a Tax Increment Financing Plan for Tax Increment Financing District No. 16 (the "TIF District") pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the "Tax Increment Act"), made up of the Development Property; and WHEREAS, the City believes that the development of the Development Property pursuant to this Agreement, and fulfillment generally of this Agreement, are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable State and local laws and requirements under which the development has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the others as follows: (The remainder of this page is intentionally left blank.) 4589160 MNI AL141-63 1 Agenda Page 40 ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Authorizing Resolution" means the resolution of the City, substantially in the form of attached Schedule B to be adopted by the City to authorize the issuance of the Note. "Available Tax Increment" has the meaning provided in the Authorizing Resolution. "Business Subsidy Act" means Minnesota Statutes, Section 116J.993 to 116J.995, as amended. "Certificate of Completion" means the certification provided to the Developer, or the purchaser of any part, parcel or unit of the Development Property, pursuant to Section 4.4 of this Agreement. "City" means the City of Albertville, Minnesota. "City Representative" means the City Administrator, or any person designated by the City Administrator to act as the City Representative for the purposes of this Agreement. "Construction Plans" means the plans, specifications, drawings and related documents on the construction work to be performed by the Developer on the Development Property which (a) shall be as detailed as the plans, specifications, drawings and related documents which are submitted to the appropriate building officials of the City, and (b) shall include at least the following for each building: (1) site plan; (2) foundation plan; (3) floor plan for each floor; (4) elevations (all sides); (5) landscape plan; and (6) such other plans or supplements to the foregoing plans as the City may reasonably request to allow it to ascertain the nature and quality of the proposed construction work. "County" means the County of Wright, Minnesota. "Developer" means Glacier Ridge Properties LLC or its permitted successors and assigns. "Development District" means the City's Development District No. 1. "Development Property" means the real property described in Schedule A of this Agreement. 4589160 MNI AL141-63 2 Agenda Page 41 "Development Plan" means the City's Development Plan for the Development District, as amended. "Event of Default" means an action by the Developer listed in Article IX of this Agreement. "Holder" means the owner of a Mortgage. "Lessee" means Mold -Tech, Inc. or its permitted successors and assigns. "Minimum Improvements" means the construction on the Development Property of an approximately 12,000 square foot addition to Lessee's existing manufacturing facility, including office space necessary for and related to such activities, and improvements to Lessee's existing facility. "Mortgage" means any mortgage made by the Developer or Lessee which is secured, in whole or in part, with the Development Property and which is a permitted encumbrance pursuant to the provisions of Article VIII of this Agreement. "Municipal Development Act" means Minnesota Statutes, Sections 469.124 to 469.134, as amended. "Note" means the Tax Increment Revenue Note, substantially in the form contained in the Authorizing Resolution, to be delivered by the City to the Lessee in accordance with Section 3.3(b) hereof. "Public Development Costs" has the meaning provided in Section 3.2 hereof. "Qualified Facility" has the meaning provided in Section 3.4(a)(6). "State" means the State of Minnesota. "Tax Increment" means that portion of the real property taxes which is paid with respect to the Development Property and which is remitted to the City as tax increment pursuant to the Tax Increment Act. "Tax Increment Act" means the Tax Increment Financing Act, Minnesota Statutes, Sections 469.174 to 469.1799, as amended. "Tax Increment District" or "TIF District" means the City's Tax Increment Financing District No. 16. "Tax Increment Plan" or "TIF Plan" means the City's Tax Increment Financing Plan for Tax Increment Financing District No. 16, as approved by the City on , 2015, and as it may be amended from time to time. 4589160 MNI AL141-63 3 Agenda Page 42 "Tax Official" means any County assessor; County auditor; County or State board of equalization, the commissioner of revenue of the State, or any State or federal district court, the tax court of the State, or the State Supreme Court. "Termination Date" means the earlier of (a) date of the City's last receipt of Tax Increment from the TIF District in accordance with Section 469.176, subd. lb(3) of the TIF Act, or (b) the date the Note has been paid in full or terminated in accordance with the terms of this Agreement. "Unavoidable Delays" means delays beyond the reasonable control of the party seeking to be excused as a result thereof which are the direct result of war, terrorism, strikes, other labor troubles, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the City in exercising its rights under this Agreement) which directly result in delays. Unavoidable Delays shall not include delays in the Developer's or Lessee's obtaining of permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such approval and construction is required under Sections 4.2 and 4.3 of this Agreement. (The remainder of this page is intentionally left blank.) 4589160 MNI AL141-63 4 Agenda Page 43 ARTICLE II Representations and Warranties Section 2.1. Representations by the City. The City makes the following representations as the basis for the undertaking on its part herein contained: (a) The City is a statutory city duly organized and existing under the laws of the State. Under the provisions of the Municipal Development Act, the City has the power to enter into this Agreement and carry out its obligations hereunder. (b) The activities of the City are undertaken to foster the development of certain real property which for a variety of reasons is presently underutilized, to create increased tax base and employment in the City, and to stimulate further development of the Development District as a whole. (c) The Development Property is currently zoned I1, and the Minimum Improvements conform to the permitted land uses allowed within this zoning classification. (d) The Development Property is not subject to any pending condemnation by the City, and to the best of the City's knowledge there are no other pending proceedings that would prevent use of the Development Property by Developer or Lessee in accordance with this Agreement. Section 2.2. Representations and Warranties by the Developer and Lessee. The Developer and Lessee represent and warrant that: (a) The Developer is a limited liability company duly organized and in good standing under the laws of the State, is not in violation of any provisions of its organizational documents or bylaws or, to the best of its knowledge, the laws of the State, is duly authorized to transact business within the State, has power to enter into this Agreement and has duly authorized the execution, delivery and performance of this Agreement by proper action of its members. (b) The Lessee is a corporation duly incorporated and in good standing under the laws of the State, is not in violation of any provisions of its articles of incorporation or bylaws or, to the best of its knowledge, the laws of the State, is duly authorized to transact business within the State, has power to enter into this Agreement and has duly authorized the execution, delivery and performance of this Agreement by proper action of its directors. (c) The Developer will construct the Minimum Improvements on the Development Property and the Lessee will operate and maintain the Minimum Improvements in accordance with the terms of this Agreement, the Development Plan and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations). 4589160 MNI AL141-63 5 Agenda Page 44 (d) Neither the Developer nor the Lessee has received any notice or communication from any local, state or federal official that the activities of the Developer, the Lessee or the City in the Development District may be or will be in violation of any environmental law or regulation (other than those notices or communications of which the City is aware). The Developer and Lessee are aware of no facts the existence of which would cause them to be in violation of or give any person a valid claim under any local, state or federal environmental law, regulation or review procedure. (e) The Developer will construct the Minimum Improvements in accordance with all local, state or federal energy -conservation laws or regulations. (f) The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all applicable local, state and federal laws and regulations which must be obtained or met before the Minimum Improvements may be lawfully constructed. (g) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any liability company or company restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which either the Developer or Lessee is now a party or by which it is bound, or constitutes a default under any of the foregoing. (h) The proposed development by the Developer and Lessee hereunder would not occur but for the tax increment financing assistance being provided by the City hereunder. (i) Neither the Developer nor the Lessee is currently in default under any business subsidy agreement with any grantor, as such terms are defined in the Business Subsidy Act. (The remainder of this page is intentionally left blank.) 4589160 MNI AL141-63 6 Agenda Page 45 ARTICLE III Status of Propertv; Financing of Public Development Costs Section 3.1. Status of the Development Property. As of the date of this Agreement, the Developer owns certain property in the City, as described in Schedule A (the "Development Property"), on which it has constructed a manufacturing facility. The City has no obligation to acquire any portion of the Development Property. The Developer will construct the Minimum Improvements on the Development Property and will enter into a lease with the Lessee (the "Lease") pursuant to which the Lessee will operate and maintain the Minimum Improvements as provided in this Agreement. Section 3.2. Public Development Costs. In order to construct the Minimum Improvements on the Development Property, the Developer shall incur certain costs for site improvement, soil correction, SAC and WAC fees, and infrastructure improvements (the "Public Development Costs"). Section 3.3. Reimbursement of Public Development Costs; Issuance of Note. The City has determined that, in order to make development of the Minimum Improvements financially feasible, it is necessary to reimburse Lessee for a portion of the cost of the Public Development Costs through the issuance of the Note, subject to the terms of this Section. The total principal amount of Public Development Costs subject to reimbursement will not exceed $98,000. Public Development Costs in excess of the specified total are the responsibility of the Developer. (b) Conditions for Delivery of Note. To reimburse a portion of the Public Development Costs incurred by Developer, the City shall issue and the Lessee shall purchase the Note in the maximum principal amount of $98,000. The City shall issue and deliver the Note upon the occurrence of the following: (i) Developer having delivered to the City written evidence satisfactory to the City that Developer has incurred Public Development Costs in an amount least equal to the principal amount of the Note, which evidence must include copies of the paid invoices or other comparable evidence for costs of allowable Public Development Costs. (ii) Developer having submitted and obtained City approval of financing in accordance with Section 7.1; and (iii) Lessee having delivered to the City an investment letter in a form reasonably satisfactory to the City. (b) Terms of Note. The terms of the Note will be substantially those set forth in the form of the Note shown in Schedule B, and the Note will be subject to all terms of the Authorizing Resolution, which are incorporated herein by reference. (c) Termination of right to Note. Notwithstanding anything to the contrary in this 4589160 MNI AL141-63 7 Agenda Page 46 Agreement, if the conditions for delivery of the Note are not met by the date five years after certification of the TIF District, the City's obligation to deliver the Note shall terminate; provided that the remainder of this Agreement shall remain in full force and effect. (d) Qualifications. The Developer and Lessee understand and acknowledge that the City makes no representations or warranties regarding the amount of Available Tax Increment, or that revenues pledged to the Note will be sufficient to pay the maximum aggregate principal amount of and interest on the Note. Developer and Lessee further acknowledge that estimates of Tax Increment prepared by the City or its financial advisors in connection with the TIF District or this Agreement are for the benefit of the City, and are not intended as representations on which the Developer or Lessee may rely. If the Public Development Costs exceed the maximum aggregate principal amount of the Note, such excess is the sole responsibility of Developer. Section 3.4. Business Subsidy Agreement. The provisions of this Section constitute the "business subsidy agreement'' for the purposes of the Business Subsidy Act. (a) General Terms. The parties agree and represent to each other as follows: (1) The subsidy provided to the Lessee consists of the reimbursement of Public Development Costs for the Development Property in a total amount not to exceed $98,000, as described in Section 3.3. (2) The public purposes of the subsidy are to facilitate development of the City's industrial park, increase net jobs in the City and the State, and increase the tax base of the City and the State. (3) The goals for the subsidy are: to secure development of the Minimum Improvements on the Development Property; to maintain such improvements as a manufacturing facility for the time period described in clause (6) below; and to create the jobs and wage levels in accordance with Section 3.4(b) hereof. (4) If the goals described in clause (3) are not met, the Lessee must make the payments to the City described in Section 3.4(c). (5) The subsidy is needed to induce Lessee to expand its business at this site, and to mitigate the cost of site improvements and infrastructure, all as determined by the City upon approval of the TIF Plan. (6) Lessee must continue operation of the Minimum Improvements as a "Qualified Facility" for at least five years after the Benefit Date (defined hereinafter), subject to the continuing obligation described in Section 10.3 of this Agreement. The term Qualified Facility means a distribution, warehouse or manufacturing facility, including office space necessary for and related to those activities, all within the meaning of Section 469.176, subd. 4c of the TIF Act. The improvements will be a Qualified Facility as long as the Minimum Improvements are operated by Lessee for the aforementioned qualified uses. During any period when the Minimum Improvements are vacant and not operated for the 4589160 MNI AL141-63 8 Agenda Page 47 aforementioned qualified uses, the Minimum Improvements will not constitute a Qualified Facility. (7) The Lessee does not have a parent corporation. (8) The Lessee has not received, and does not expect to receive, financial assistance from any other "grantor" as defined in the Business Subsidy Act, in connection with the Development Property or the Minimum Improvements. (b) Job and Wage Goals. The "Benefit Date" of the assistance provided in this Agreement is the earlier of the date of issuance of a certificate of completion for the Minimum Improvements or the date the Minimum Improvements are occupied by Lessee. Within two years after the Benefit Date (the "Compliance Date"), the Lessee shall (i) create at least 3 new full-time equivalent jobs on the Development Property, and (ii) cause the average hourly wage of the 3 created jobs to be at least $14.00 per hour, exclusive of benefits. Notwithstanding anything to the contrary herein, the parties hereto agree that the creation of any job by Lessee on or after April 1, 2015 that satisfies the job and wage goals described in this paragraph shall be counted for purposes of determining Lessee's satisfaction of such job and wage goals, despite the Lessee's continuing obligations under Sections 3.4(a)(6) and 3.4(d). The City may, after a public hearing, extend the Compliance Date by up to one year, provided that nothing in this section will be construed to limit the City's legislative discretion regarding this matter. (c) Remedies. If the Lessee fails to meet the goals described in Section 3.4(a)(3), the Lessee shall repay to the City upon written demand from the City a "pro rata share" of the Public Development Costs together with interest on that amount at the implicit price deflator as defined in the Business Subsidy Act, accrued from the date of substantial completion of the Minimum Improvements to the date of payment. The term "pro rata share" means percentages calculated as follows: (i) if the failure relates to the number of jobs, the jobs required less the jobs created, divided by the jobs required; (ii) if the failure relates to wages, the number of jobs required less the number of jobs that meet the required wages, divided by the number of j obs required; (iii) if the failure relates to maintenance of the facility as a Qualified Facility in accordance with Section 3.4(a)(6), 60 less the number of months of operation as a Qualified Facility (where any month in which the Qualified Facility is in operation for at least 15 days constitutes a month of operation), commencing on the Benefit Date and ending with the date the Qualified Facility ceases operation as determined by the City Representative, divided by 60; and (iv) if more than one of clauses (i) through (iii) apply, the sum of the applicable percentages, not to exceed 100%. 4589160 MNI AL141-63 9 Agenda Page 48 Nothing in this Section shall be construed to limit the City's remedies under Article IX hereof In addition to the remedy described in this Section and any other remedy available to the City for failure to meet the goals stated in Section 3.4(a)(3), the Lessee agrees and understands that it may not a receive a business subsidy from the City or any grantor (as defined in the Business Subsidy Act) for a period of five years from the date of the failure or until the Lessee satisfies its repayment obligation under this Section, whichever occurs first. (d) Reports. The Lessee must submit to the City a written report regarding business subsidy goals and results by no later than February 1 of each year, commencing February 1, 2016 and continuing until the later of (i) the date the goals stated Section 3.4(a)(3) are met; (ii) 30 days after expiration of the period described in Section 3.4(a)(6); or (iii) if the goals are not met, the date the subsidy is repaid in accordance with Section 3.4(c). The report must comply with Section 116J.994, subdivision 7 of the Business Subsidy Act. The City will provide information to the Lessee regarding the required forms. If the Lessee fails to timely file any report required under this Section, the City will mail the Lessee a warning within one week after the required filing date. If, after 14 days of the postmarked date of the warning, the Lessee fails to provide a report, the Lessee must pay to the City a penalty of $100 for each subsequent day until the report is filed. The maximum aggregate penalty payable under this Section is $1 NO. Section 3.5. Payment of Administrative Costs. The parties agree that "Administrative Costs" will be paid from the City's authorized administrative allowance of Tax Increment, and that neither the Developer nor the Lessee has any obligation to reimburse the City for such expenditures. For purposes of this section, "Administrative Costs" means out of pocket costs incurred by the City together with staff costs of the City, all attributable to or incurred in connection with the negotiation and preparation of this Agreement, the TIF Plan, and other documents and agreements in connection with the development of the Development Property. (The remainder of this page is intentionally left blank.) 4589160 MNI AL141-63 10 Agenda Page 49 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements. The Developer agrees that it will construct the Minimum Improvements on the Development Property in accordance with the approved Construction Plans, and Lessee agrees that it will operate and maintain, preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition. Section 4.2. Construction Plans. (a) Before commencement of construction of the Minimum Improvements, the Developer shall submit to the City completed Construction Plans. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in conformity with the Development Plan, the TIF Plan, this Agreement, and all applicable State and local laws and regulations. The City will approve the Construction Plans in writing if. (i) the Construction Plans conform to the terms and conditions of this Agreement; (ii) the Construction Plans conform to the goals and objectives of the Development Plan; (iii) the Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iv) the Construction Plans are adequate to provide for construction of the Minimum Improvements; (v) the Construction Plans do not provide for expenditures in excess of the funds available to the Developer for construction of the Minimum Improvements; and (vi) no Event of Default has occurred. No approval by the City shall relieve the Developer of the obligation to comply with the terms of this Agreement or of the Development Plan, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the Minimum Improvements in accordance therewith. No approval by the City shall constitute a waiver of an Event of Default. If approval of the Construction Plans is requested by the Developer in writing at the time of submission, such Construction Plans shall be deemed approved unless rejected in writing by the City, in whole or in part. Such rejections shall set forth in detail the reasons therefor, and shall be made within 30 days after the date of their receipt by the City. If the City rejects any Construction Plans in whole or in part, the Developer shall submit new or corrected Construction Plans within 30 days after written notification to the Developer of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the City. The City's approval shall not be unreasonably withheld. Said approval shall constitute a conclusive determination that the Construction Plans (and the Minimum Improvements, constructed in accordance with said plans) comply to the City's satisfaction with the provisions of this Agreement relating thereto. (b) If the Developer desires to make any material change in the Construction Plans after their approval by the City, the Developer shall submit the proposed change to the City for its approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section 4.2 of this Agreement with respect to such previously approved Construction Plans, the City shall approve the proposed change and notify the Developer in writing of its approval. Such change in the Construction Plans shall, in any event, be deemed 4589160 MNI AL141-63 11 Agenda Page 50 approved by the City unless rejected, in whole or in part, by written notice by the City to the Developer, setting forth in detail the reasons therefor. Such rejection shall be made within ten (10) days after receipt of the notice of such change. The City's approval of any such change in the Construction Plans will not be unreasonably withheld. Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable Delays, the Developer must commence construction of the Minimum Improvements by no later than July 31, 2015. Subject to Unavoidable Delays, the Developer must substantially complete construction of the Minimum Improvements by December 31, 2015. All work with respect to the Minimum Improvements to be constructed or provided by the Developer on the Development Property shall be in conformity with the Construction Plans as submitted by the Developer and approved by the City. The Developer agrees for itself, its successors and assigns, and every successor in interest to the Development Property, or any part thereof, that the Developer, and such successors and assigns, shall promptly begin and diligently prosecute to completion the Development of the Development Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be commenced and completed within the period specified in this Section 4.3 of this Agreement. Until construction of the Minimum Improvements by the Developer has been completed, the Developer shall make reports, in such detail and at such times as may reasonably be requested by the City, as to the actual progress of the Developer with respect to such construction. Section 4.4. Certificate of Completion. (a) Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the Developer to construct the Minimum Improvements (including the dates for beginning and completion thereof), the City will furnish the Developer with a Certificate of Completion in substantially the form provided in Schedule C. Such certification by the City shall be (and it shall be so provided in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement with respect to the obligations of the Developer, and its successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer or Lessee to any Holder of a Mortgage, or any insurer of a Mortgage, securing money loaned to finance the Minimum Improvements, or any part thereof. (b) The certificate provided for in this Section 4.4 of this Agreement shall be in such form as will enable it to be recorded in the proper office for the recordation of deeds and other instruments pertaining to the Development Property. If the City shall refuse or fail to provide any certification in accordance with the provisions of this Section 4.4 of this Agreement, the City shall, within thirty (30) days after written request by the Developer, provide the Developer with a written statement, indicating in adequate detail in what respects the Developer has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the City, for the Developer to take or perform in order to obtain such certification. 4589160 MNI AL141-63 12 Agenda Page 51 (c) The construction of the Minimum Improvements shall be deemed to be substantially completed when the Developer has received a certificate of occupancy issued by the City for the Minimum Improvements. (The remainder of this page is intentionally left blank.) 4589160 MNI AL141-63 13 Agenda Page 52 ARTICLE V Insurance Section 5.1. Insurance. The Developer or Lessee will provide and maintain at all times during the process of constructing the Minimum Improvements an All Risk Broad Form Basis Insurance Policy and, from time to time during that period, at the request of the City, furnish the City with proof of payment of premiums on policies covering the following: (i) Builder's risk insurance, written on the so-called "Builder's Risk -- Completed Value Basis," in an amount equal to one hundred percent (100%) of the insurable value of the Minimum Improvements at the date of completion, and with coverage available in nonreporting form on the so-called "all risk" form of policy. The interest of the City shall be protected in accordance with a clause in form and content satisfactory to the City; (ii) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner's Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above -required limits, an umbrella excess liability policy may be used); and (iii) Workers' compensation insurance, with statutory coverage. (b) Upon completion of construction of the Minimum Improvements and prior to the Termination Date, the Developer shall cause the Lessee to maintain, at its cost and expense, and from time to time at the request of the City shall furnish proof of the payment of premiums on, insurance as follows: (i) Insurance against loss and/or damage to the Minimum Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses. (ii) Comprehensive general public liability insurance, including personal injury liability (with employee exclusion deleted), against liability for injuries to persons and/or property, in the minimum amount for each occurrence and for each year of $1,000,000, and shall be endorsed to show the City as an additional insured. (iii) Such other insurance, including workers' compensation insurance respecting all employees of the Lessee, in such amount as is customarily carried by like organizations engaged in like activities of comparable size and liability exposure; provided that the Lessee may be self -insured with respect to all or any part of its liability for workers' compensation. 4589160 MNI AL141-63 14 Agenda Page 53 (c) All insurance required in Article V of this Agreement shall be taken out and maintained in responsible insurance companies selected by the Developer or the Lessee that are authorized under the laws of the State to assume the risks covered thereby. Upon request, the Developer or Lessee will deposit annually with the City policies evidencing all such insurance, or a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. Unless otherwise provided in this Article V of this Agreement each policy shall contain a provision that the insurer shall not cancel nor modify it in such a way as to reduce the coverage provided below the amounts required herein without giving written notice to the Developer or Lessee and the City at least 30 days before the cancellation or modification becomes effective. In lieu of separate policies, the Developer or Lessee may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein, in which event the Developer or Lessee shall deposit with the City a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Minimum Improvements. (d) The Developer agrees to notify the City immediately in the case of damage exceeding $100,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. In such event the Developer or the Lessee will forthwith repair, reconstruct, and restore the Minimum Improvements to substantially the same or an improved condition or value as it existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction, and restoration, the Developer or Lessee will apply the net proceeds of any insurance relating to such damage received by the Developer or Lessee to the payment or reimbursement of the costs thereof. The Developer or Lessee shall complete the repair, reconstruction and restoration of the Minimum Improvements, regardless of whether the net proceeds of insurance received by the Developer or Lessee for such purposes are sufficient to pay for the same. Any net proceeds remaining after completion of such repairs, construction, and restoration shall be the property of the Developer or Lessee, as applicable. (e) Notwithstanding anything to the contrary contained in this Agreement, in the event of damage to the Minimum Improvements in excess of $100,000, if the Developer or Lessee fails to complete any repair, reconstruction or restoration of the Minimum Improvements within three years from the date of damage, the City may, at its option, terminate the Note as provided in Section 9.2 hereof. (f) The Developer, the Lessee, and the City agree that all of the insurance provisions set forth in this Article V shall terminate upon the Termination Date. Section 5.2. Subordination. Notwithstanding anything to the contrary contained in this Article V, the rights of the City with respect to the receipt and application of any proceeds of insurance shall, in all respects, be subject and subordinate to the rights of any lender under a Mortgage approved pursuant to Article VII of this Agreement. 4589160 MNI AL141-63 15 Agenda Page 54 ARTICLE VI Delinquent Taxes and Review of Taxes Section 6.1. Right to Collect Delinquent Taxes. Developer agrees for itself, its successors and assigns, that in addition to the obligation pursuant to statute to pay real estate taxes, it is also obligated by reason of this Agreement to pay before delinquency, or to cause Lessee to pay before delinquency, all real estate taxes assessed against the Development Property and the Minimum Improvements. The Developer acknowledges that this obligation creates a contractual right on behalf of the City through the Termination Date to sue the Developer or its successors and assigns to collect delinquent real estate taxes and any penalty or interest thereon and to pay over the same as a tax payment to the county auditor. In any such suit in which the City is the prevailing party, the City shall also be entitled to recover its costs, expenses and reasonable attorney fees. Section 6.2. Review of Taxes. The Developer and Lessee agree that prior to the Termination Date they will not cause a reduction in the real property taxes paid in respect of the Development Property through: (a) willful destruction of the Development Property or any part thereof, or (b) willful refusal to reconstruct damaged or destroyed property pursuant to Section 5.1 of this Agreement, except as otherwise provided in Section 5.1(e). The Developer and Lessee also agree that they will not, prior to the Termination Date, apply for a deferral of property tax on the Development Property pursuant to any law, or transfer or permit transfer of the Development Property to any entity whose ownership or operation of the property would result in the Development Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City or City in accordance with this Agreement). (The remainder of this page is intentionally left blank.) 4589160 MNI AL141-63 16 Agenda Page 55 ARTICLE VII Financing Section 7.1. Financing. (a) Before issuance of the Note to the Lessee, the Developer shall submit to the City evidence of one or more commitments for mortgage financing which, together with committed equity for such construction, is sufficient for the construction of the Minimum Improvements. Such commitments may be submitted as short term financing, long term mortgage financing, a bridge loan with a long-term take-out financing commitment, or any combination of the foregoing. Such commitment or commitments for short term or long term mortgage financing shall be subject only to such conditions as are normal and customary in the mortgage banking industry. (b) If the City finds that the mortgage financing is sufficiently committed and adequate in amount to provide for the construction of the Minimum Improvements, then the City shall notify the Developer in writing of its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within thirty (30) days from the date when the City is provided the evidence of financing. A failure by the City to respond to such evidence of financing shall be deemed to constitute an approval hereunder. If the City rejects the evidence of financing as inadequate, it shall do so in writing specifying the basis for the rejection. In any event the Developer shall submit adequate evidence of financing within thirty (30) days after such rejection. Approval of any subordination agreement under Section 7.3 hereof will constitute approval of financing for the purposes of this Section. Section 7.2. CitsOption to Cure Default on Mortgage. In the event that there occurs a default under any Mortgage authorized pursuant to Article VII of this Agreement, the Developer shall cause the City to receive copies of any notice of default received by the Developer from the holder of such Mortgage. Thereafter, the City shall have the right, but not the obligation, to cure any such default on behalf of the Developer within such cure periods as are available to the Developer under the Mortgage documents. In the event there is an event of default under this Agreement, the City will transmit to the Holder of any Mortgage a copy of any notice of default given by the City pursuant to Article IX of this Agreement. Section 7.3. Subordination and Modification for the Benefit of Mortgagee. In order to facilitate the Developer obtaining financing for construction of the Minimum Improvements according to the Construction Plans, the City agrees to subordinate its rights under this Agreement, provided that (a) such subordination shall be subject to such reasonable terms and conditions as the City and Holder mutually agree in writing, and (b) the City's obligation to subordinate is contingent on the City's approval of the financing in accordance with Section 7.1 hereof. 4589160 MNI AL141-63 17 Agenda Page 56 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development. The Developer represents and agrees that its purchase of the Development Property or portions thereof, and its other undertakings pursuant to this Agreement, are, and will be used, for the purpose of Development of the Development Property and not for speculation in land holding. Section 8.2. Prohibition Against Developer's Transfer of Property and Assignment of Agreement. The Developer represents and agrees that until the Termination Date: (a) Except only by way of security for, and only for, the purpose of obtaining financing necessary to enable the Developer or any successor in interest to the Development Property, or any part thereof, to perform its obligations with respect to making the Minimum Improvements under this Agreement, and any other purpose authorized by this Agreement, the Developer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to the Agreement or the Development Property or any part thereof or any interest therein (a "Transfer"), or any contract or agreement to do any of the same, without the prior written approval of the City unless the Developer remains liable and bound by this Development Agreement in which event the City's approval is not required. Any such Transfer shall be subject to the provisions of this Agreement. It is expressly understood that the Lease between the Developer and Lessee does not constitute a Transfer for purposes of this Agreement. (b) In the event the Developer, upon Transfer or assignment of the Development Property or any portion thereof, seeks to be released from its obligations under this Development Agreement as to the portions of the Development Property that is transferred or assigned, the City shall be entitled to require, except as otherwise provided in the Agreement, as conditions to any such release that: (i) Any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the City, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer as to the portion of the Development Property to be transferred. (ii) Any proposed transferee, by instrument in writing satisfactory to the City and in form recordable among the land records, shall, for itself and its successors and assigns, and expressly for the benefit of the City, have expressly assumed all of the obligations of the Developer under this Agreement as to the portion of the Development Property to be transferred and agreed to be subject to all the conditions and restrictions to which the Developer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Development Property, or any part thereof, shall not, for whatever reason, have assumed such 4589160 MNI AL141-63 18 Agenda Page 57 obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the City) deprive the City of any rights or remedies or controls with respect to the Development Property or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Development Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the City of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Minimum Improvements that the City would have had, had there been no such transfer or change. In the absence of specific written agreement by the City to the contrary, no such transfer or approval by the City thereof shall be deemed to relieve the Developer, or any other party bound in any way by this Agreement or otherwise with respect to the construction of the Minimum Improvements, from any of its obligations with respect thereto. (iii) Any and all instruments and other legal documents involved in effecting the Transfer of any interest in this Agreement or the Development Property governed by this Article VIII, shall be in a form reasonably satisfactory to the City. In the event the foregoing conditions are satisfied then the Developer shall be released from its obligation under this Agreement, as to the portion of the Development Property that is transferred, assigned or otherwise conveyed. Section 8.3. Release and Indemnification Covenants. (a) The Developer and Lessee release from and covenant and agree that the City and the governing body members, officers, agents, servants and employees thereof shall not be liable for and agrees to indemnify and hold harmless the City and the governing body members, officers, agents, servants and employees thereof against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Minimum Improvements. (b) Except for any willful misrepresentation or any willful or wanton misconduct of the following named parties, the Developer and Lessee agree to protect and defend the City and the governing body members, officers, agents, servants and employees thereof, now or forever, and further agree to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Minimum Improvements. (c) The City and the governing body members, officers, agents, servants and employees thereof shall not be liable for any damage or injury to the persons or property of the Developer, the Lessee, or their officers, agents, servants or employees or any other person who may be about the Development Property or Minimum Improvements due to any act of negligence of any person, other than the City. 4589160 MNI AL141-63 19 Agenda Page 58 (d) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City and not of any governing body member, officer, agent, servant or employee of the City in the individual capacity thereof. (The remainder of this page is intentionally left blank.) 4589160 MNI AL141-63 20 Agenda Page 59 ARTICLE IX Events of Default Section 9.1. Events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides): (a) any failure by any party to observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement or under any other agreement entered into between the Developer or Lessee and the City in connection with development of the Development Property; and (b) any default by Developer or Lessee under a Mortgage, if any. Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section 9.1 of this Agreement occurs, the non -defaulting party may exercise its rights under this Section 9.2 after providing thirty days written notice to the defaulting party of the Event of Default, but only if the Event of Default has not been cured within said thirty days or, if the Event of Default is by its nature incurable within thirty days, the defaulting party does not provide assurances reasonably satisfactory to the non -defaulting party that the Event of Default will be cured and will be cured as soon as reasonably possible: (a) Suspend its performance under the Agreement until it receives assurances that the defaulting party will cure its default and continue its performance under the Agreement. (b) Cancel and rescind or terminate the Agreement and/or the Note. (c) Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. (d) Notwithstanding anything to the contrary herein, in the case of defaults by Lessee described in Section 3.4, the City has the additional remedies specified therein, subject to the qualification described in Section 10.3. Section 9.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the City, Developer, or Lessee is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle 4589160 MNI AL141-63 21 Agenda Page 60 the City to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article IX. Section 9.4. No Additional Waiver Implied by One Waiver. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. (The remainder of this page is intentionally left blank.) 4589160 MNI AL141-63 22 Agenda Page 61 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; City Representatives Not Individually Liable. The City, the Developer, and the Lessee, to the best of their respective knowledge, represent and agree that no member, official, or employee of the City shall have any personal interest, direct or indirect, in the Agreement, nor shall any such member, official, or employee participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, liability company, or association in which he is, directly or indirectly, interested. No member, official, or employee of the City shall be personally liable to the Developer or Lessee, or any successor in interest, in the event of any default or breach by the City or City or for any amount which may become due to the Developer, Lessee, or successor or on any obligations under the terms of the Agreement. Section 10.2. Equal Employment Opportunity. The Developer, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in the Agreement it will comply with all applicable federal, state and local equal employment and non-discrimination laws and regulations. Section 10.3. Restrictions on Use. The Developer agrees that until the Termination Date, the Developer, the Lessee, and any successors and assigns, shall use the Development Property and the Minimum Improvements thereon only as a Qualified Facility, provided that after expiration of the five-year period described in Section 3.4(c), the repayment remedy described in Section 3.4(d) may not be imposed on Lessee for default under this Section, and City is limited to any other remedies available under Article IX hereof. Further, until the Termination Date the Developer and Lessee shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Development Property or any improvements erected or to be erected thereon, or any part thereof. Section 10.4. Provisions Not Merged With Deed. None of the provisions of this Agreement are intended to or shall be merged by reason of any deed transferring any interest in the Development Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 10.5. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 10.6. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement by any party to the others shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and (a) in the case of the Developer, is addressed to or delivered personally to the 4589160 MNI AL141-63 23 Agenda Page 62 Developer at Glacier Ridge Properties, LLC, 19138 Lincoln Street NW, Elk River, MN 55330; (b) in the case of the Lessee, is addressed to or delivered personally to the Lessee at Mold -Tech, Inc., 5166 Barthel Industrial Drive NE, Albertville, MN 55301; and (c) in the case of the City, is addressed to or delivered personally to the City at City of Albertville, 5959 Main Avenue NE, P.O. Box 9, Albertville, Minnesota 55301, Attn: City Administrator; or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. Section 10.7. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 10.8. Recording. The City may record this Agreement and any amendments thereto with the County recorder. The Developer shall pay all costs for recording. Section 10.9. Amendment. This Agreement may be amended only by written agreement approved by the City, the Developer, and the Lessee. Section 10.10. CitApprovals. Unless otherwise specified, any approval required by the City under this Agreement may be given by the City Representative. Section 10.11. Termination. This Agreement terminates on the Termination Date. Section 10.12. Choice of Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. (The remainder of this page is intentionally left blank.) 4589160 MNI AL141-63 24 Agenda Page 63 IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Developer and Lessee have caused this Agreement to be duly executed in their name and behalf on or as of the date first above written. CITY OF ALBERTVILLE, MINNESOTA By Its Mayor By Its City Administrator STATE OF MINNESOTA ) SS. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of 2015, by Jillian Hendrickson and Adam Nafstad, the Mayor and City Administrator of the City of Albertville, Minnesota, a Minnesota municipal corporation, on behalf of the City. Notary Public S-1 4589160 MNI AL141-63 Agenda Page 64 GLACIER RIDGE PROPERTIES, LLC By Its STATE OF MINNESOTA SS. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2015 by , the of Glacier Ridge Properties, LLC, a Minnesota limited liability company, on behalf of the liability company. Notary Public S-2 458916v3 MNI AL141-63 Agenda Page 65 MOLD -TECH, INC. By Its STATE OF MINNESOTA ) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2015 by , the of Mold -Tech, Inc., a Minnesota corporation, on behalf of the corporation. Notary Public S-3 458916v3 MNI AL141-63 Agenda Page 66 SCHEDULE A DESCRIPTION OF DEVELOPMENT PROPERTY Lot 3, Block 10, Barthel's Industrial Park, as recorded in the Wright County Recorder's office, Wright County, Minnesota. 458916v3 MNI AL141-63 A-1 Agenda Page 67 SCHEDULE B AUTHORIZING RESOLUTION CITY OF ALBERTVILLE RESOLUTION NO. RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS TAX INCREMENT REVENUE NOTE TO MOLD -TECH, INC. AND APPROVING A CONTRACT FOR PRIVATE DEVELOPMENT WITH GLACIER RIDGE PROPERTIES LLC AND MOLD -TECH, INC. BE IT RESOLVED BY the City Council ("Council") of the City of Albertville, Minnesota (the "City") as follows: Section 1. Authorization, Award of Sale. 1.01. Authorization. The City of Albertville has heretofore approved the establishment of its Tax Increment Financing District No. 16 (the "TIF District") within Municipal Development District No. 1 ("Development District"), and has adopted a tan increment financing plan for the purpose of financing certain improvements within the Development District. Pursuant to Minnesota Statutes, Section 469.178, the City is authorized to issue and sell its bonds for the purpose of financing a portion of the public development costs of the Development District. Such bonds are payable from all or any portion of revenues derived from the TIF District and pledged to the payment of the bonds. The City hereby finds and determines that it is in the best interests of the City that it issue and sell its Tax Increment Revenue Note, Series 2015 (Mold -Tech Project) (the 'Note") for the purpose of financing certain public development costs of the Development District. 1.02. Issuance, Sale, and Terms of the Note. (a) The City hereby approves the Contract for Private Development dated as of , 2015 (the "Agreement"), between the City, Glacier Ridge Properties, LLC, and Mold -Tech, Inc. (the "Owner"), and authorizes the Mayor and City Administrator to execute such Agreement in substantially the form on file with City, subject to modifications that do not alter the substance of the transaction and are approved by such officials, provided that execution of the Agreement by such officials is conclusive evidence of their approval. (b) The City hereby approves issuance of the Note pursuant to the Agreement. The Note shall be issued in the maximum aggregate principal amount of $98,000 to the Owner in B-1 4589160 MNI AL141-63 Agenda Page 68 consideration of certain eligible costs incurred by the Owner under the Agreement, shall be dated the date of delivery thereof, and shall bear interest at the rate of 3.0% per annum to the earlier of maturity or prepayment. The Note will be issued in a single series designated Series 2015 (Mold - Tech Project), issued in the principal amount of $98,000 to reimburse the Owner for Public Development Costs in accordance with Section 3.3(b) of the Agreement. The Note is secured by Available Tan Increment, as further described in the form of the Note herein. The City hereby delegates to the Finance Director the determination of the date on which the Note is to be delivered, in accordance with the Agreement. Section 2. Form of Note. The Note shall be in substantially the following form, with the blanks to be properly filled in and the principal amount adjusted as of the date of issue: (The remainder of this page is intentionally left blank.) B-2 4589160 MNI AL141-63 Agenda Page 69 UNITED STATE OF AMERICA STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF ALBERTVILLE No. R-1 TAX INCREMENT REVENUE NOTE SERIES 2015 (MOLD -TECH PROJECT) Rate 3.0% Date of Original Issue The City of Albertville ("City") for value received, certifies that it is indebted and hereby promises to pay to Mold -Tech, Inc. or registered assigns (the "Owner"), the principal sum of $ and to pay interest thereon at the rate of 3.0% per annum, but solely from the sources and to the extent set forth herein. Capitalized terms shall have the meanings provided in the Contract for Private Development between the City, Glacier Ridge Properties LLC, and the Owner, dated as of , 2015 (the "Agreement"), unless the context requires otherwise. 1. Payments. Principal and interest ("Payments") shall be paid on August 1, 20 and each February I and August I thereafter to and including February 1, 20 ("Payment Dates") in the amounts and from the sources set forth in Section 3 herein. Payments shall be applied first to accrued interest, and then to unpaid principal. Payments are payable by mail to the address of the Owner or such other address as the Owner may designate upon 30 days written notice to the City. Payments on this Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. Interest at the rate stated herein shall accrue on the unpaid principal, commencing on the date of original issue. Interest shall be computed on the basis of a 360-day year consisting of 12 months of 30 days. 3. Available Tax Increment. (a) Payments on this Note are payable on each Payment Date solely from and in the amount of Available Tax Increment, which shall mean 90% of the Tan Increment attributable to the Minimum Improvements and Development Property that is paid to the City by Wright County in the six months preceding each Payment Date on the Note, pursuant to Section 3.3 of the Agreement. Available Tan Increment shall not include any Tax Increment if, as of any Payment Date, there is an uncured Event of Default under the Agreement. B-3 4589160 MNI AL141-63 Agenda Page 70 (b) The City shall have no obligation to pay principal of and interest on this Note on each Payment Date from any source other than Available Tax Increment and the failure of the City to make Payments on any Payment Date shall not constitute a default hereunder as long as the City pays principal or interest hereon to the extent of Available Tan Increment. The City shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final Payment on February 1, 20. 4. Default. If on any Payment Date there has occurred and is continuing any Event of Default under the Agreement, the City may withhold from payments hereunder all Available Tan Increment. If the Event of Default is thereafter cured in accordance with the Agreement, the Available Tan Increment withheld under this Section shall be deferred and paid, without interest thereon, within 30 days after the Event of Default is cured. If the Event of Default is not cured in a timely manner, the City may terminate this Note by written notice to the Owner in accordance with the Agreement. 5. Prepayment. The principal sum payable under this Note is prepayable in whole or in part at any time by the City without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular Payment otherwise required to be made under this Note. 6. Nature of Obligation. This Note is one of an issue in the total principal amount of $ , issued to aid in financing certain public development costs of a Development District undertaken by the City pursuant to Minnesota Statutes, Sections 469.124 through 469.134, and is issued pursuant to an authorizing resolution (the "Resolution") duly adopted by the City on , 20___, and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.1794, as amended. This Note is a limited obligation of the City which is payable solely from Available Tan Increment pledged to the payment hereof under the Resolution. This Note and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Note or other costs incident hereto except out of Available Tan Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Note or other costs incident hereto. 7. Registration and Transfer. This Note is issuable only as a fully registered note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this Note is transferable upon the books of the City kept for that purpose at the principal office of the City Finance Director, by the Owner hereof in person or by such Owner's attorney duly authorized in writing, upon surrender of this Note together with a written instrument of transfer satisfactory to the City, duly executed by the Owner. Upon such transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the City with respect to such transfer or exchange, there will be issued in the name of the transferee a new Note of the same aggregate principal amount, bearing interest at the same rate and maturing on the same dates. B-4 4589160 MNI AL141-63 Agenda Page 71 Except as otherwise provided in Section 3.3(c) of the Agreement, this Note shall not be transferred to any person or entity, unless the City has provided written consent to such transfer and the City has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory to the City, that such transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this Note a valid and binding limited obligation of the City according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. IN WITNESS WHEREOF, the City Council of the City of Albertville has caused this Note to be executed with the manual signatures of its Mayor and City Administrator, all as of the Date of Original Issue specified above. CITY OF ALBERTVILLE City Administrator Mayor REGISTRATION PROVISIONS The ownership of the unpaid balance of the within Note is registered in the bond register of the City Finance Director, in the name of the person last listed below. Date of Signature of Registration Registered Owner City Finance Director Mold -Tech, Inc. Federal Tax I.D. No. 41-1325122 B-5 4589160 MNI AL141-63 Agenda Page 72 Section 3. Terms, Execution and Delivery. 3.01. Denomination, Payment. The Note shall be issued as a single typewritten note numbered R-1. The Note shall be issuable only in fully registered form. Principal of and interest on the Note shall be payable by check or draft issued by the Registrar described herein. 3.02. Dates, Interest Payment Dates. Principal of and interest on the Note shall be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not such day is a business day. 3.03. Registration. The City hereby appoints the City Finance Director to perform the functions of registrar, transfer agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its office a bond register in which the Registrar shall provide for the registration of ownership of the Note and the registration of transfers and exchanges of the Note. (b) Transfer of Note. Upon surrender for transfer of the Note duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form reasonably satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, a new Note of a like aggregate principal amount and maturity, as requested by the transferor. Notwithstanding the foregoing, the Note shall not be transferred to any person other than an affiliate, or other related entity, of the Owner unless the City has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory to the City, that such transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. The Registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each Payment Date and until such Payment Date. (c) Cancellation. The Note surrendered upon any transfer shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (d) Improper or Unauthorized Transfer. When the Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Note or separate instrument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (e) Persons Deemed Owners. The City and the Registrar may treat the person in whose name the Note is at any time registered in the bond register as the absolute owner of the Note, whether the Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Note and for all other purposes, and all such payments so made B-6 4589160 MNI AL141-63 Agenda Page 73 to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the City upon such Note to the extent of the sum or sums so paid. (f) Taxes, Fees and Charges. For every transfer or exchange of the Note, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tan, fee, or other governmental charge required to be paid with respect to such transfer or exchange. (g) Mutilated, Lost, Stolen or Destroyed Note. In case any Note shall become mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new Note of like amount, maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated Note or in lieu of and in substitution for such Note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case the Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. The Note so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the City. If the mutilated, lost, stolen, or destroyed Note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Note prior to payment. 3.04. Preparation and DeliverX. The Note shall be prepared under the direction of the City Finance Director and shall be executed on behalf of the City by the signatures of its Mayor and Administrator. In case any officer whose signature shall appear on the Note shall cease to be such officer before the delivery of the Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. When the Note has been so executed, it shall be delivered by the City Administrator to the Owner thereof in accordance with the Agreement. Section 4. Security Provisions. 4.01. Pledge. The City hereby pledges to the payment of the principal of and interest on the Note all Available Tan Increment as defined in the Note. Available Tax Increment shall be applied to payment of the principal of and interest on the Note in accordance with the terms of the form of Note set forth in Section 2 of this resolution. 4.02. Bond Fund. Until the date the Note is no longer outstanding and no principal thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains unpaid, the City shall maintain a separate and special "Bond Fund" to be used for no purpose other than the payment of the principal of and interest on the Note. The City irrevocably agrees to appropriate to the Bond Fund on or before each Payment Date the Available Tan Increment. Any Available Tan Increment remaining in the Bond Fund shall be transferred to the City's account for the TIF District upon the termination of the Note in accordance with its terms. 4.03. Additional Obligations. The City may not apply or pledge Available Tax Increment in excess of the amount needed to make Payments due on each Payment Date, to any other obligations (including without limitation any additional interfund loan). B-7 4589160 MNI AL141-63 Agenda Page 74 Section 5. Certification of Proceedings. 5.01. Certification of Proceedings. The officers of the City are hereby authorized and directed to prepare and furnish to the Owner of the Note certified copies of all proceedings and records of the City, and such other affidavits, certificates, and information as may be required to show the facts relating to the legality and marketability of the Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. Section 6. Effective Date. This resolution shall be effective upon approval. Approved by the City Council of the City of Albertville, Minnesota, this day of April, 2015. ATTEST: City Clerk Mayor B-8 4589160 MNI AL141-63 Agenda Page 75 SCHEDULE C CERTIFICATE OF COMPLETION The undersigned hereby certifies that Glacier Ridge Properties, LLC (the "Developer") has fully complied with its obligations under Articles III and IV of that document titled "Contract for Private Development," dated , 2015 between the City of Albertville, Minnesota, the Developer, and Mold -Tech, Inc. (the "Agreement"), with respect to construction of the Minimum Improvements in accordance with Article IV of the Agreement, and that the Developer is released and forever discharged from its obligations with respect to construction of the Minimum Improvements under Articles III and IV of the Agreement. Dated: ,20 . CITY OF ALBERTVILLE, MINNESOTA City Representative C-1 4589160 MNI AL141-63 Agenda Page 76 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. 16 (MOLD -TECH) ADOPTED (RESOLUTION NO. 2015-_) PUBLIC HEARING: APRIL 20, 2015 REQUEST FOR CERTIFICATION: , 2015 :1 DISTRICT CERTIFIED: , 2015 N0RTHI, lD STRATF[71F .Special Projects Group Northland Securities, Inc. 45 South 7th Street, Suite 2000 Minneapolis, MN 55402 (800) 851-2920 Member NASD and SIPC Agenda Page 77 TABLE OF CONTENTS ARTICLE I - INTRODUCTION AND DEFINITIONS.........................................................� Section 1.01 Introduction......................................................................................1 Section1.02 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.............................................2 Section 2.04 Development Activities...................................................................2 Section 2.05 Payment of Project Costs.................................................................2 Section 2.06 Environmental Controls; Land Use Regulations .........................3 Section 2.07 Park and Open Space to be Created..............................................3 Section 2.08 Proposed Reuse of Property...........................................................3 Section 2.09 Administration and Maintenance of Development District ......3 Section2.10 Relocation..........................................................................................3 Section 2.11 Amendments.....................................................................................3 ARTICLE III -TAX INCREMENT FINANCING PLAN......................................................4 Section 3.01 Statutory Authority..........................................................................4 Section 3.02 Planned Development.....................................................................4 3.02.1 Description of Proposed Development.........................................4 3.02.2 City Plans and Development Program..........................................4 3.02.3 Land Acquisition..............................................................................4 3.02.4 Development Activities...................................................................4 3.02.5 Need for Tax Increment Financing................................................4 Section 3.03 Tax Increment Financing District...................................................5 3.03.1 Designation.......................................................................................5 3.03.2 Boundaries of TIF District...............................................................5 3.03.3 Type of District.................................................................................5 Section 3.04 Plan for Use of Tax Increment........................................................5 3.04.1 Estimated Tax Increment.................................................................5 3.04.2 Development Costs..........................................................................6 3.04.3 Estimated Sources and Uses of Funds...........................................6 Figure3-1...........................................................................................7 3.04.4 Administrative Expense..................................................................7 3.04.5 County Road Costs...........................................................................7 3.04.6 Bonded Indebtedness.......................................................................8 3.04.7 Duration of TIF District...................................................................8 3.04.8 Estimated Impact on Other Taxing Jurisdictions .........................8 3.04.9 Prior Planned Improvements.........................................................8 ARTICLE IV -ADMINISTERING THE TIF DISTRICT.....................................................9 Section 4.01 Filing and Certification....................................................................9 Section 4.02 Modifications of the Tax Increment Financing Plan ....................9 Section 4.03 4-Year Knockdown Rule..................................................................9 Agenda Page 78 Section 4.04 Pooling/5-Year Rule........................................................................10 Section 4.05 Financial Reporting and Disclosure Requirements ...................10 Section 4.06 Business Subsidy Compliance......................................................11 EXHIBITS.......................................................................................................................... 12 Exhibit I - Present Value Analysis..........................................................................12 Exhibit II - Projected Tax Increment......................................................................13 Exhibit III - Impact on Other Taxing Jurisdictions..............................................14 Exhibit IV - Estimated Tax Increment Over Life of District...............................15 Exhibit V - Map of Development District and TIF District................................16 Agenda Page 79 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 16 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 of Tax Increment Financing (Economic Development) District No. 16. 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. "County" means Wright County, Minnesota. 4. "Developer" means a private party undertaking construction or renovation in the TIF District. 5. "Development District" means Municipal Development District No. 1 in the City, created and established pursuant to and in accordance with the Development District Act. 6. "Development District Act" means Minnesota Statutes, Sections 469.124 through 469.134, 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. "Project Costs" means the cost of the development activities that will or are expected to occur within the Project Area or TIF District. 10. "School District" means St. Michael -Albertville Public Schools (ISD #885). 11. "State" means the State of Minnesota. 12. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1794, as amended, both inclusive. 13. "TIF District" means Tax Increment Financing (Economic Development) District No. 16 (Mold -Tech). 14. "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 the City and the Developer. DRAFT DOCUMENT FOR PUBLIC HEARING DATED 4/20/15 Agenda Page 80 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 16 ARTICLE II - DEVELOPMENT PROGRAM SECTION 2.01 OVERVIEW The City established the Development District and the related Development Program as a tool to achieve the objectives described in Section 2.02. The Development District 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 TIF Plan relating to the TIF District. 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 pursuant to the Development District Act are necessary and in the best interests of the City and its residents and are necessary to give the City the ability to meet 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 proposed development is consistent with the established "Statement of Objectives" documented by the original Development Program. SECTION 2.03 BOUNDARIES OF DEVELOPMENT DISTRICT The boundaries of the Development District are depicted in Exhibit V. The boundaries of the Development District are coterminous with the boundaries of the City. The City is not acting to modify the boundaries of the Development District. Within the Development District, the City has previously established Tax Increment Financing District Numbers 1 through 15, inclusive. SECTION 2.04 DEVELOPMENT ACTIVITIES The proposed development activities within the Development District are consistent with the goals, objectives, and plans expressed by the Development Program. The current modifications to the Development Program relate to plans by the Developer to expand an existing manufacturing facility within the City. SECTION 2.05 PAYMENT OF PROJECT COSTS Project Costs and the plan for their payment have been described in detail in each Tax Increment Financing Plan for Tax Increment Financing District Numbers 1 through 15, as authorized by the City, which are incorporated herein by reference. The City now anticipates additional Project Costs to be financed in part with tax increments expected to be generated by new development within the TIF District. Project Costs and related data for such efforts are set forth in the TIF Plan for the TIF District. The TIF Plan for the TIF District accompanies these modifications to the Development Program. DRAFT DOCUMENT FOR PUBLIC HEARING DATED 4/20/15 Agenda Page 81 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 16 SECTION 2.06 ENVIRONMENTAL CONTROLS; LAND USE REGULATIONS All municipal actions, public improvements and private development shall be carried out in a manner consistent with the 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 Development Program and City's comprehensive plan and zoning and subdivision ordinances. SECTION 2.08 PROPOSED REUSE OF PROPERTY The Development Program anticipates that the City may acquire property and reconvey 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 funds will be available to repay the Project 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 City the maintenance and operation budget for the following year. The Administrator will administer the Development District pursuant to the provisions of Section 469.131 of the Development District Act; provided, however, that such powers may only 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 117.50 to 117.56. 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 modifications, 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 and to modify the Development Program. DRAFT DOCUMENT FOR PUBLIC HEARING DATED 4/20/15 Agenda Page 82 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 16 ARTICLE III - TAX INCREMENT FINANCING PLAN SECTION 3.01 STATUTORY AUTHORITY The TIF District and this TIF Plan are established under the authority of the TIF Act. SECTION 3.02 PLANNED DEVELOPMENT 3.02.1 Description of Proposed Development 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 12,000 square feet (SF) building to expand an existing 12,132 SF manufacturing facility. The planned development will result in an increase in tax base for the City and new manufacturing jobs. 3.02.2 City Plans and Development Program In addition to achieving the objectives of the Development Program, the planned 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 the TIF Plan, the City anticipates that activities proposed in the TIF Plan may be subject to contracts. The City anticipates entering into a contract with a Developer to provide tax increment financing assistance to pay for Project Costs. 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 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 City has determined that no other development is expected to occur on the site that would create a greater market value than the proposed expansion by the Developer, after adjusting for the tax increment assistance. Analysis of 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, housing 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 District and the use of tax increments has been performed as described above and is shown in Exhibit 1. 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. DRAFT DOCUMENT FOR PUBLIC HEARING DATED 4/20/15 4 Agenda Page 83 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 16 SECTION 3.03 TAX INCREMENT FINANCING DISTRICT 3.03.1 Designation This TIF District is designated Tax Increment Financing (Economic Development) District No. 16 (Mold Tech). 3.03.2 Boundaries of TIF District The boundaries of the TIF District are depicted in Exhibit V. The TIF District includes the following parcel and adjacent right-of-way: 101-022-010030. 3.03.3 Type of District The TIF District is established as an "economic development" district pursuant to Sections 469.174, Subd. 12 and 469.176, Subd. 4c of the TIF Act. These sections of the TIF Act provide that tax increment from an economic development district may 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 any of 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 its existing manufacturing facility in the City, and therefore meets the requirements of an economic development tax increment financing district. 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 TIF Plan, the estimated original tax capacity is $13,162. This amount is based on the most recent published estimated market value of the property of $695,600 with tax capacity value calculated for commercial -industrial property. The total tax capacity value of the property after completion of planned development is DRAFT DOCUMENT FOR PUBLIC HEARING DATED 4/20/15 Agenda Page 84 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 16 estimated to be $22,012. This amount is based on a total estimated market value of $1,175,600 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 tax increment. It is the City's intent to retain 100% of the captured tax capacity value for the life of the TIF district. The total estimated local tax rate for taxes payable in 2015 is 146.088%. 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 $12,929. 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 II contains the projected tax increment over the life of the TIF District. 3.04.2 Development Costs The City will use tax increment to reimburse the Developer for Project Costs related to expansion of its existing manufacturing facility. The City reserves the right to use any other legally available revenues to finance or pay for Project Cots associated with the development in the TIF District. The City anticipates reimbursing the Developer for Project Costs related to site improvement and preparation costs and utilities. 3.04.3 Estimated Sources and Uses of Funds The estimated sources of revenue, along with the estimated Project Costs of the TIF District, are itemized in Figure 3-1. The estimates are based on the best available information in the sources and uses of funds. The Project Costs are eligible for reimbursement from tax increments from the TIF District. DRAFT DOCUMENT FOR PUBLIC HEARING DATED 4/20/15 Agenda Page 85 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 16 FIGURE 3-1 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 $120,000 Interest and investment earnings $2,000 Sales/lease proceeds $0 Market value homestead credit $0 Total Estimated Tax Increment Revenues $122,000 Estimated Project/Financing Costs (to be paid or financed with tax increment) Project costs Land/building acquisition $0 Site improvements/preparation costs $86,000 Utilities $12,000 Other qualifying improvements $0 Construction of affordable housing $0 Small city authorized costs, if not already included above $0 Administrative costs $12,000 Estimated Tax Increment Project Costs $110,000 Estimated financing costs Interest expense $12,000 Total Estimated Project/Financing Costs to be Paid from Tax Increment $122,000 Estimated Financing Total amount of bonds to be issued $110,000 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 Estimated Tax Increment Project Costs are 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 $12,000 over the proposed life of the TIF District. Anticipated administrative expenses of the TIF District include annual audit of the fund for the 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 TIF District, including the TIF Plan and the development assistance contract with the Developer. 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. DRAFT DOCUMENT FOR PUBLIC HEARING DATED 4/20/15 Agenda Page 86 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 16 3.04.6 Bonded Indebtedness The total amount of bonds estimated to be issued is $110,000. The City will not issue any general obligation bonded indebtedness as a result of the TIF Plan. The City intends to use tax increment financing to reimburse the developer on a pay-as-you-go basis. The City reserves the right to 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 shall 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 loan 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 allows tax increments to be collected from the TIF District for a period not to exceed eight (8) years after 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 is estimated to be collected in 2017 (construction completed in 2015) creating the authority to collect tax increments through December 31, 2025. The City will request decertification of the TIF District after reimbursement of all eligible Project Costs and administrative expense but no later than the final year of tax increment collection. 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. It 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 the property 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. DRAFT DOCUMENT FOR PUBLIC HEARING DATED 4/20/15 Agenda Page 87 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 16 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 City shall request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in 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 TIF 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 original 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 Estimated Tax Increment Project Costs (shown in Figure 3-1). ■ 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 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 DRAFT DOCUMENT FOR PUBLIC HEARING DATED 4/20/15 Agenda Page 88 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 16 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 TIF District, except that if the only expenses for activities outside of the TIF District are for the purposes described in Minnesota Statute, 469.1763, Subd. 2(d), administrative expenses will be considered as expenditures for activities in the TIF District. 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 (i.e., defease any bonds and/or fulfill all 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. SECTION 4.05 FINANCIAL REPORTING AND DISCLOSURE REQUIREMENTS The City will 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 DRAFT DOCUMENT FOR PUBLIC HEARING DATED 4/20/15 10 Agenda Page 89 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 16 submit a report on the TIF 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 in its jurisdiction. The reporting and disclosure requirements outlined in this section begin with the year the TIF District was certified, and shall end in the year in which both the TIF 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 in 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 116J.993 to 116J.995, as amended. DRAFT DOCUMENT FOR PUBLIC HEARING DATED 4/20/15 11 Agenda Page 90 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 16 BMbit I C4 of Albei#srie Tas DKYMMM* FeIO� DMhDd DIM 16 Presem�t Value As Requred By IWkm*mnta Slakifics SCEbm 469.1754. S■bdL 30WC} plow -To& 1 Estknabed Future Market Yalue +oaf Tax Lrcrernent Finarrdrrg X199,319 2 Payable 2M Ma1wt %falue 695,600 3 Market Value Inumse (1- 503,719 4 Present Value of Fuftmre Taos LrQanents SZ74B 5 Market Value Inmease Less PV of Tax Lrxanents 410,971 6 Estknabed Future Morkrt Value wro TaxhKrement Finanong 70%634 ; 7 Papa6le 2015 N arkEt Value 595,600 8 Market Value hmmmse (6-7) 14,034 9 lrrQee-ese in MY From TlF 396,9W - lmom 5% annuoi ap redat o,n over Symr Re of dnbid- 2 Sft&dwycwWbwwr odwved ifuxrmw ur marled vu&w Pam TY dine 9) Fs qrm%r tmm or eWW ha zmu DRAFT DOCUMENT FOR PUBLIC HEARING DATED 4/20/15 12 Agenda Page 91 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 16 Exhibit II City of Albertville Tax Increment Financing District No. 17 Projected Tax Increment Mold Tech Assumed 100.00% 10.00% 0.36% Available Total TIF Taxes New Base Captured Original Estimated Annual 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 2016 2017 22,012 (13,162) 8,8S0 143.048% 12,660 (1,266) (46) 11,348 11,018 2 2017 2018 22,122 (13,162) 8,960 143.048% 12,817 (1,282) (46) 11,489 21,848 3 2018 2019 22,233 (13,162) 9,071 143.048% 12,97S (1,298) (47) 11,631 32,491 4 2019 2020 22,344 (13,162) 9,182 143.048% 13,134 (1,313) (47) 11,773 42,952 5 2020 2021 22,456 (13,162) 9,294 143.048% 13,294 (1,329) (48) 11,917 53,231 6 2021 2022 22,568 (13,162) 9,406 143.048% 13,4SS (1,346) (48) 12,061 63,332 7 2022 2023 22,681 (13,162) 9,S19 143.048% 13,616 (1,362) (49) 12,205 73,256 8 2023 2024 22,794 (13,162) 9,632 143.048% 13,778 (1,378) (50) 12,351 83,006 9 2024 2025 22,908 (13,162) 9,746 143.048% 13,942 (1,394) (50) 12,498 92,584 TOTAL = 119,671 (11,967) (431) 107,273 Key Asssumutions 1 Annual base value growth assumption = 0.500% 2 Property Tax rate from Wright County = Pay 2015 3 Base Value = $695,600 PID 101022010030 4 New Value = $1,175,600 Includes expansion of 12,000 SF at $40/SF 5 Present value is based an semi-annual payments. 6 Assumes that not more than 15 % of the building (determined on the basis of square footage) will be used for purpose other than manufacturing. 7 Assumes project is constructed in 2015 and fully valued in 2016 for taxes payable in 2017. 8 Assumes parcel is not within an existing TIF district or subject to a property tax abatement. DRAFT DOCUMENT FOR PUBLIC HEARING DATED 4/20/15 13 Agenda Page 92 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 16 Exhibit III City of Albertville Tax Increment Financing District No. 17 Impact on Other Taxing Jurisdictions (Taxes Payable 2015) Mold -Tech ANNUAL TAX INCREMENT Estimated Annual Captured Tax Capacity (Full Development) $9,746 Payable 2015 Local Tax Rate 143.048% Estimated Annual Tax Increment $13,942 Percent of Tax Base Net Tax Captured Percent of Capacity Tax Total NTC (NTC) Capacity Albertville 6,804,308 9,746 0.14% Wright County 130,336,497 9,746 0.01% ISD 885 18,057,414 9,746 0.05% Dollar Impact of Affected Taxing Jurisdictions Net Tax Tax Added Capacity % of Total Increment Local Tax (NTC) Share Rate Albertville 51.396% 35.929% 5,009 0.074% Wright County 40.586% 28.372% 3,956 0.003% ISD 885 51.066% 35.699% 4,977 0.028% Other 0.000% 0.000% 0 Totals 143.048% 100.000% 13,942 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 are paid from DRAFT DOCUMENT FOR PUBLIC HEARING DATED 4/20/15 14 Agenda Page 93 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 16 Exhibit IV City of Albertville Tax Increment Financing District No. 17 Estimated Tax Increments Over Maximum Life of District Mold -Tech Based on Pay 2015 Tax Rate = 143.048% 51.396% 40.586% 51.066% 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 2017 22,012 (13,162) 8,850 12,660 4,549 3,592 4,519 0 2 2018 22,122 (13,162) 8,960 12,817 4,605 3,637 4,576 (1) 3 2019 22,233 (13,162) 9,071 12,975 4,662 3,681 4,632 0 4 2020 22,344 (13,162) 9,182 13,134 4,719 3,727 4,689 (1) 5 2021 22,456 (13,162) 9,294 13,294 4,777 3,772 4,746 (1) 6 2022 22,568 (13,162) 9,406 13,455 4,834 3,817 4,803 1 7 2023 22,681 (13,162) 9,519 13,616 4,892 3,863 4,861 0 8 2024 22,794 (13,162) 9,632 13,778 4,951 3,909 4,919 (1) 9 2025 22,908 (13,162) 9,746 13,942 5,009 3,956 4,977 0 Total 119,671 42,998 33,954 42,722 (3) DRAFT DOCUMENT FOR PUBLIC HEARING DATED 4/20/15 15 Agenda Page 94 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 16 EXHIBIT V MAP OF BOUNDARIES OF MUNICIPAL DEVELOPMENT DISTRICT NO. 1 AND TAX INCREMENT FINANCING DISTRICT NO. 16 Nbertville DRAFT DOCUMENT FOR PUBLIC HEARING DATED 4/20/15 16 Agenda Page 95 �lbcrtvi11C ��ftmuft. Mayor and Council Request for Action April 16, 2015 SUBJECT: PUBLIC WORKS - UPDATE NIEMEYER LIFT STATION FOR MONITORING CAPABILITY TO THE SCADA SYSTEM RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Authorize ICS Healy -Ruff to install a radio, power supply, and mounting hardware, and to update the City's SCADA computer applications to monitor the Niemeyer lift station at cost of $9,403.00. BACKGROUND: The City of Albertville currently has nine lift stations. With the exception of the Niemeyer lift station, all pumping stations are connected to the SCADA system at the Wastewater Treatment Plant. The SCADA system is used to remotely monitor the lift station. Monitoring includes: alerts/alarms for high water levels, power failure, or pump failure; and the collection of run times and pumping rates. The Niemeyer lift station was installed in 2009 as part of the City's CSAH 37 Utility Extension Project; however, development in the area was delayed until recently and the lift station has not been in use. With the construction of Niemeyer Trailer Sales it is necessary to put the lift station in service and connect it to the City's SCADA system. KEY ISSUES: • The cost of the SCADA equipment, installation and reprograming of software is $9,403. • ICS (Instrument Control Systems) is the system integrator who's controls Albertville has historically used. POLICY/PRACTICES CONSIDERATIONS: It is the Mayor and Council's policy to review and approve the purchase of services and equipment for the Utilities Department. FINANCIAL CONSIDERATIONS: The funds for this upgrade will come from Sewer Access Funds (SAC). Purchasing of Capital Assets is an allowable expense for the restricted use of Sewer Access Funds. LEGAL CONSIDERATIONS: The Mayor and Council have the authority to approve the purchase of services and equipment for the Utilities Department. Responsible Person/Department: John Middendorf, Water and Wastewater Supervisor Submitted Through: Adam Nafstad, City Administrator—PWD On File: ICS Proposal M:\Public Data\City Council\Council Packet Infonnation\2015\042015\RCA Neimeyers Liftstation SCADA.docx Meeting Date: April 20, 2015 enda Page 96 A.,lbertvi " le Mayor and Council Request for Action April 15, 2015 SUBJECT: FIRE DEPARTMENT- PURCHASE OF NEW COMMAND/CHIEF VEHICLE RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following: MOTION TO: Authorize the purchase of a new red Chevrolet Tahoe vehicle under State Contract; and authorize the purchase and equipping of emergency equipment and graphic lettering, based on low quotes, for a total purchase amount not -to -exceed $47,000. BACKGROUND: This vehicle will be used as a command vehicle for the Chief or ranking officer when the Chief is out of town. The vehicle will be used for all work related travel including emergency response, meetings, training, inspections, and firefighter transport. The vehicle will go home with the Chief or ranking officer each evening and weekend for after -hour response. The Fire Committee discussed vehicle type and favored a 4WD command vehicle with towing and firefighter transport capabilities. After discussing with other fire departments, staff recommends a Chevy Tahoe — Unmarked emergency vehicle. Staff is recommending approval of a vehicle budget not -to -exceed $47,000. Based on the State contract, the vehicle will be approximately $33,000, and we believe the cost of outfitting and equipping to be between $8,000 to $12,000, and lettering to be approximately $1,500. KEY ISSUES: • The Fire Committee has reviewed the purchase and is recommending Council action. • The vehicle order will take approximately 90 to 120 days. • The vehicle will be the Department's Incident Command (IC) vehicle. • The vehicle purchase was planned as part of new full-time Chief position. • The funding for the vehicle will be with Fire Department capital equipment funds. • The vehicle will be a take-home response vehicle and used for all Fire Chief related work. • The purchase of emergency equipment, installation, and lettering will be based on low quotes, and the purchase of the vehicle will be off the State bid. POLICY CONSIDERATIONS: It is City policy for the Council to review and approve all capital purchases and investments. FINANCIAL CONSIDERATIONS: The cost associated with the vehicle will be funded through fire department capital reserves and the 2015 capital budget. Approximately 38% of the purchase will be funded as part of the service agreement with Otsego. M:\Public Data\City Council\Council Packet Infonnation\2015\042015\041515 FD Command Vehicle.doc Meeting Date: April 20, 2015 enda Page 97 Mayor and Council Request for Action — Purchase of New Command/Fire Chief Vehicle Monday, April 20, 2015 Page 2 of 2 LEGAL CONSIDERATIONS: The City has the authority to purchase equipment under the State of Minnesota contract or by quotes. Responsible Person/Department: Fire Chief Bullen, Fire Department Submitted Through: Adam Nafstad, City Administrator-PWD Supplemental Information: Quotes and pricing on file and available upon request M:\Public Data\City Council\Council Packet Infonnation\2015\042015\041515 FD Command Vehicle.doc Meeting Date: February 2, 2015 enda Page 98 �lbcrtviJJC ��ftmuft. Mayor and Council Request for Action April 16, 2015 SUBJECT: LEGAL — TAX FORFEITED COMMERCIAL LOT IN PRAIRIE RUN RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Re -impose the full special assessments to the property 101-111-001020 if the property is returned to private ownership. BACKGROUND: In 2004, the City of Albertville approved the plat of Prairie Run, which contained 28 "detached townhome" lots abutting CSAH 18, 25 regular single-family lots, and one commercial lot. The City agreed to install utilities and roads in the Prairie Run subdivision and special assess the costs of the improvements to the properties in the plat. The City obtained a Letter of Credit in the amount of 50% of the cost of the improvements, but the Letter of Credit was from Alpine Capital, a private financing company (not a bank). The plat immediately experienced drainage problems arising from engineering/design errors, which held up construction on a number of the lots while litigation ensued. About the time the litigation ended, the housing bust arrived, which essentially halted all lot sales. After the dust settled, there were 2 cul-de-sac lots remaining unbuilt upon that had special assessments outstanding and 15 detached townhome lots in the same position, as well as one commercial lot upon which no special assessment payments had been made. Because the special assessments were not paid on the one commercial lot, the City made the payments on the bond that financed the project using money from other City funds. The commercial lot (immediately south of the T-Square building) went tax forfeit. Under the tax forfeiture process, the City has the right to purchase any or all of the tax forfeited properties at fair market value before they are offered to the public for sale. If the City does not acquire them, the City could re -impose the special assessments on the lots once they are purchased by a private party and returned to the tax rolls. City staff is recommending that the City not acquire the commercial lot south of the T-Square building. While the City has special assessments on the commercial lot, the specials far exceed the value of this lot. Given the amount of vacant building space in Albertville, City staff does not believe that market for vacant commercial land in this area will turn around anytime soon. Because the City can only hold the commercial property tax free for 8 years, staff recommends that the City inform the County that it does not want to purchase the commercial lot and plans on re -imposing special assessments on the lot after it is sold to a private party. The County has requested again that the City of Albertville consider cancelling or reducing the special assessments or purchase the parcel at a reduced price from the County in the effort of working together on getting this parcel back on the tax rolls stating that it would give the City more control in the ultimate development of the property. Given the relatively poor market for M:\Public Data\City Council\Council Packet Infonnation\2015\042015\2015-04-20 RCA to acquire tax forfeit lands.docx Meeting Date: Apri120, 2015 enda Page 99 Mayor and Council Request for Action — April 20, 2015 Tax Forfeited Commercial Lot Page 2 of 2 commercial property at the present time, staff believes that a major reduction in the special assessments would be necessary at this time to make this lot marketable. Because such a major reduction would have to be ultimately absorbed by the City's general fund, and because staff believes this property will recover in value over time, staff recommends that we inform the County that the City is not willing to reduce the amount of special assessments it will re -impose on the lot. KEY ISSUES: • The original assessment on this property was $175,167. • City staff believes that the special assessments on the commercial lot will remain outstanding for many years in the future. POLICY/PRACTICES CONSIDERATIONS: In normal circumstances, the County would sell this property to private parties. However, this parcel has not sold and will go up for auction in the spring of 2015. FINANCIAL CONSIDERATIONS: Acquiring this parcel will require the City to pay some nominal consideration to the County. In addition, it will leave the $175,167 to be collected upon sale of the parcel or require the general levy to increase and have the entire tax base pay for the improvements (assessment). LEGAL CONSIDERATIONS: State law allows the City to acquire this property and sell it to any party it desires. Responsible Person/Department: Mike Couri, City Attorney and Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD M:\Public Data\City Council\Council Packet Infonnation\2015\042015\2015-04-20 RCA to acquire tax forfeit lands.docx Meeting Date: Apri120, 2015 100 Memo To: Adam Nafstad, City Administrator; Albertville City Council From: Mike Couri Date: April 15, 2015 Re: Attorney Report Below is an update of the projects our office has been working on for the City. I-94 Ramp Easement. The State is asking the City to obtain I-94 ramp easement from Albertville Marketplace using a revised legal description as the State wants clearer language in the deed from the City to the State for the ramp easement. The easement area remains unchanged —the State simply wants its specific language used in the easement document. Adam and I will be working with Albertville Marketplace to obtain the proper language. • Prairie Run. Fieldstone will be closing on one lot in the next week or so and two more within the next month, for a total of four lots. The purchase agreement for the two cul-de-sac lots has been signed with Christian Builders and we will likely close on those two lots in late April or early May. Tina and I met with the Homeowners' Association last week. The Declarations were amended as set out in our purchase agreement with Fieldstone and the Association pared back the services it will provide to just the maintenance of the street, which should make the Association dues more affordable. It appears that the Association will be self- sustaining from this point forward. • Charter Cable. I have still not heard back from Charter Cable regarding proposed changes to their service to City buildings that runs counter to our franchise agreement. Charter has provided the City with cable boxes, but we will Page 1 of 2 Agenda Page 101 likely have a problem with these next fall unless we get this issue straightened out in the meantime. I will continue to periodically call Charter until I reach someone or get a return call. • Joint Fire Department Issues. I have forwarded the memo on the pros and cons of the Joint Fire Department to Adam and the Fire Chief. I would be glad to present these issues to the Council at a workshop meeting if the Council so desires. Page 2 of 2 Agenda Page 102 A\Ibcrtvill£ City Administrator's Update Small Town Llving. Bg CRy LIFe. April 16, 2015 GENERAL ADMINISTRATION Joint Workshop: The Planning Commission and City Council held a Joint Workshop on April 14 and as a result, staff plans on bringing an additional goal and policy statement forward to the Planning Commission meeting in May for inclusion in the Vision Study. STMA Ice Arena Board: At their last meeting, the Arena Board accepted the 2014 audit by KDV, approved a $5 per hour ice rental rate increase, approved the 2015 Arena Budget, and authorized the renewal of the maintenance contract with SCR. Law Enforcement Update: Sheriff Hagerty will be present to update the City Council on April 20 at 6:30 p.m. Senior Community Services: The 10 year agreement with SCS for management of our Crow River Senior Center is up for renewal. To my knowledge SCS and Vonnie, our director, are doing a terrific job. Deb Taylor, the CEO for SCS, and Vonnie will be providing an update and requesting to renew the agreement at the June 9, St. Michael Council meeting. Please let me know if you would like Deb or Vonnie to present to the Albertville Council or if you have any information or concerns you would like me to pass along. ENGINEERING/PUBLIC WORKS 57t" Street NE/Church of St. Albert Improvement Project: Private utility relocated as scheduled to begin the week of April 20. Contracts are being circulated for execution. Construction will not commence until after Friendly City Days. 54Street NE and Barthel Industrial Drive NE: We plan to have the project complete in its entirety by May 31. Street and Parks Position: The maintenance worker position is out for advertisement and applications are due by May 18. Our goal is to have the position filled on or around July 1. Annual Crack Sealing: Public Works crews will begin crack sealing the week of April 20, weather permitting. Municipal Separate Storm Sewer System (MS4): Albertville is now subject to regulation as required by the MPCA's MS4 General Stormwater Permit. As such, we are required to complete the permit application prior to April 25, and pay the $400 application fee. Staff will complete. Old Castle Building Envelope: We are working with Old Castle to locate a second driveway on Barthel Industrial Dr. The 2nd access is permitted by code and can be approved administratively. Agenda Page 103 Bucket Truck: At the Council meeting, staff would like to discuss advanced authorization for staff to bid on a used bucket truck. Our current 1987 bucket truck has become very unsafe and the costs to repair (approximately $2,500) exceed the value of the vehicle. The City's safety advisor (MMUA) has recommended the vehicle be taken out of service. We believe a used model is sufficient for the City's needs. Public Works uses the bucket truck for tree trimming, decorations, street light repair, etc. New bucket trucks are very expensive. UPCOMING EVENTS and ANNOUNCEMENTS Senior Center Volunteer Appreciation: Monday, April 27, 10:00 a.m. to 11:30 a.m. at the Senior Center in St. Michael. Please RSVP by Wednesday, April 22. Explore Your Parks Night: Friday, May 16, 6:00-8:00 p.m. at Oakside Park, Winter Park, Westwind Park, Linwood Park, Villas Park, Four Seasons Park Attachments: (none) City Administrator's Update Page 2 of 2 April 16, 2015 Agenda Page 104