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2021-02-01 City Council Agenda Packet A,lbertville City of Albertville Council Agenda Small Wing.Big City We. Monday, February 1, 2021 City Council Chambers 7pm Due to COVID-19, the City Council will meet using a hybrid system of in-person and virtual electronic format. Those who wish to join the meeting via Zoom,please use the link below: Zoom Link: https://zoom.us/j/93670333743?pwd=dWFXZG9nZOM3QzdreTFtZIBIT1pCUT09 Zoom Meeting ID: 936 7033 3743 Passcode: 119358 Zoom Audio Number: 1-301-715-8592 PUBLIC COMMENTS-The City of Albertville welcomes and encourages public input on issues listed on the agenda or of general community interest.Citizens wishing to address the Council regarding specific agenda items,other than public hearings,are invited to do so under Public Forum and are asked to fill out a"Request to Speak Card". Presentations are limited to five(5)minutes. 1. Call to Order 2. Pledge of Allegiance -Roll Call Pages 3. Recognitions—Presentations -Introductions A. 2020 Albertville Fire Department Annual Awards 4-5 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. Items pulled will be approved by a separate motion. A. Approve the January 19, 2021, regular City Council Meeting minutes as presented. 6-8 B. Authorize the Monday,February 1, 2021,payment of claims as presented, except bills 9 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. C. Accept Accounts Receivable Reports. 10-11 D. 4th Quarter Budget to Actual Report. 12-14 7. Public Hearing A. Advance Volumetric Alliance Industrial DEED Grant Applications - Continued from January 19,2021 Council meeting • (Motion to continue the Public Hearing to the February 16, 2021 City Council Meeting) City of Albertville City Council Agenda Monday, February 1, 2021 Page 2 of 3 B. Advance Volumetric Alliance Tax Increment Financing Request 15-46 • Mayor to open public hearing • Motion to close public hearing • (Motion to adopt Resolution No. 2021-006 approving the Establishment of Tax Increment Financing (Economic Development)District No. 18 (A VA Project) within Municipal Development District No. 1; and the Adoption of a Tax Increment Financing Plan relating Thereto.) • (Motion to adopt Resolution No. 2021-007 authorizing an Interfund Loan for Advance of Certain Costs in Connection with Tax Increment Financing (Economic Development)District No. 18 (A VA Project). " C. Konz Crossing Minor Subdivision and Consolidation 47-78 • Mayor to open public hearing • Motion to close public hearing • (Motion to adopt Resolution No. 2021-008 approving the Konz Crossing requests for a minor subdivision, easement vacation based on the surveys dated 1211612020; site and building plans and conditional use permit for shared parking across two lots and a variance from the City's B-2A parking lot setback based on the development plans dated December 23, 2020 and building plans dated December 17, 2020.) D. Fehn Companies Industrial Development Applications 79-155 • Mayor to open public hearing • Motion to close public hearing • (Motion to adopt Resolution No. 2021-009 and Ordinance No. 2021-03 addressing the following development applications for Hunter Land Company/Fehn Companies to allow for the construction of a corporate headquarters for Fehn Companies in the City ofAlbertville.) • (Motion to approve Fehn Industrial Park Development Agreement subject to City Attorney review.) 8. Wright County Sheriff's Office—Updates, reports, etc. 9. Department Business A. City Council 1. Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc) B. Fire 1. Fire Department Presentation —Year in Review 156-181 C. Planning and Zoning -None D. City Clerk 1. Local Board of Appeals and Equalization Meeting Date 182-183 (Motion to Set the meeting date for the Albertville Local Board of Appeals and Equalization for April 5, 2021 at 6:15 pm) City of Albertville City Council Agenda Monday, February 1, 2021 Page 3 of 3 E. Finance -None F. Public Works/Engineering -None G. Building -None H. Legal-None L Administration 1. 2021 Appointments to Boards and Committees 184-186 2. Creamery Pond Site Update-Discussion 3. City Administrator's Update 187-188 10. Announcements and/or Upcoming Meetings February 8 STMA Arena Board, 6 pm February 9 Planning Commission, 7 pm February 15 President's Day, City Offices closed February 16 City Council, 7 pm (Tuesday) February 22 Joint Powers Water Board, 6 pm Parks Committee, 7 pm March 1 City Council, 7 pm 11. Adjournment WVeERrv►t1F FIRE O Fire Department Update gESC�� February 15Y, 2021 2020 Albertville Fire Department Annual Awards: o 2020/2021 Retirements: ■ Assistant Fire Chief Tate Mills • 23-Years of Service o 2020 Resignations: ■ C. Adams = 5-Years of Service ■ J. Neal = 1-Year of Service o 2021 Service-Year Awards: ■ 5-Years: • B. Asfeld ■ 15-Years: • E. Bullen • S. Olson ■ Special Recognition: • B. Valerius = 31-Years • T. Mills = 23-Years 0 2020 Top Volunteer Hours: ■ Deputy Chief Jeff Davis = 56.5 Hours ■ Honorable Mention: • Captain Josh Eull = 52.5 Hours ■ Department Total = 720 Hours • Department Average = 24 Hours per Member 0 2020 Top Caller: ■ Firefighter Jared Grove • 307 Calls • 75.62 ■ Honorable Mention: • Firefighter Ose = 243 Calls (58.84%) • Firefighter Holzerland = 227 Calls (62.02%) • Firefighter Thurber= 216 Calls (54.55%) • Firefighter Trainor= 204 Calls (49.28%) • Firefighter Kreutner= 203 Calls (51.79%) ■ Department Average = 38.28% Agenda Page 4 o 2020 Paul Heinen Above and Beyond Award: ■ Captain Josh Eull ■ Nominations: K. Anderson, J. Deehr, N. Dording, D. Eull, J. Eull, K. Gammell, G. Gerads, T. Mills, B. Valerius o 2021 Board of Officers - New Members: ■ Assistant Fire Chief: • R. Peterson ■ Captain #1: • D. Asleson ■ Training Captain /Captain #4: • K. Gammell ■ Lieutenant#1: Agenda Page 5 Nbertville Small Town Wng.Big My Mo. ALBERTVILLE CITY COUNCIL DRAFT REGULAR MEETING MINUTES January 19, 2021 — 7 pm Council Chambers Albertville City Hall 1. Call to Order Mayor Hendrickson called the meeting to order at 7:03 pm. 2. Pledge of Allegiance— Roll Call Present: Mayor Hendrickson, Councilmembers Cocking, Hudson and Olson Staff Present: City Attorney Couri, City Clerk Luedke and Finance Director Lannes 3. Recognitions—Presentations—Introductions House Representative Lucero thanked Council for the opportunity to provide a legislative preview for the upcoming session. He said this was his fourth term and provided information on the committees he would be serving on this session. Representative Lucero said because it is an odd year, the legislation would be working on the next two year's funding bill. Representative Lucero said he had received a lot of comments from parents, residents and business owners so he would be focusing on ending the Governor's emergency powers related to COVID-19 issues, election integrity and reopening the schools. He said he would like to empower the local governing officials to make decisions regarding their organizations because not everyone is impacted in the same way. Representative Lucero said this year there is a budget deficient and that government needed to share in the responsible to close the budget gap not just the tax payers. He said he would continue to advocate for pro-life and answered questions from Council. Mayor Hendrickson thanked Representative Lucero for the legislative preview. 4. Public Forum Mr. Tom Fay, 10795 70th Street NE, said he was having issues with snow mobiles again and added he had alright contacted the snow mobile association, Wright County Sheriff's office and the City Administrator. Mr. Fay said the snow mobiles drivers were riding across the roundabout,jumping the mediums, not staying on the trails and driving across his property. He said his wife and her sister needed to purchase a million dollar insurance policy in case someone was to get hurt on his property. He added that the drivers were trespassing on his property and answered questions for Council. There was Council discussion regarding the snow mobile issues and possible barriers that could be used in the future. Mayor Hendrickson said the City could publish the snow mobile trails in the City's newsletters and on the City's Facebook. City Attorney Couri answered questions for the Council regarding the issues. The Wright County deputy who was present said the sheriff's office could add additional enforcement in the area and provide Mr. Fay with signs stating"No Snowmobiling". 5. Amendments to the Agenda There were no amendments to the agenda. Agenda Page 6 City Council Meeting Draft Minutes Page 2 Regular Meeting of January 19,2021 5.Amendments to the Agenda -continued MOTION made by Councilmember Olson, seconded by Councilmember Cocking to approve the January 19, 2021, agenda as submitted. Ayes: Cocking, Hendrickson, Hudson and Olson. Nays: None. The motion 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. Items pulled will be approved by a separate motion. A. Approve the January 4, 2021, regular City Council Meeting minutes as presented. B. Authorize the Tuesday, January 19, 2021, 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. C. Approve the annual permit renewal for Consumption and Display of liquor for the City Hall building, located at 5959 Main Avenue NE, for the period of April 1, 2021 through March 31, 2022. MOTION made by Councilmember Cocking, seconded by Councilmember Hudson to approve the January 19, 2021, consent agenda as submitted. Ayes: Cocking, Hendrickson, Hudson and Olson. Nays: None. The motion carried. 7. Public Hearing 1. Public Hearing—Advance Volumetric Alliance Industrial DEED Grant Applications —continued from January 4,2021 City Council meeting The Mayor opened the public hearing. MOTION made by Councilmember Olson, seconded by Councilmember Cocking to continue the public hearing to the February 1 City Council meeting at 7 pm. Ayes: Cocking, Hendrickson, Hudson and Olson. Nays: None. The motion carried. 8. Wright County Sheriff's Office—Updates, reports, etc. There were no updates from the Wright County Sheriff's Office. 9. Department Business A. City Council 1. Committee Updates (STMA Ice Arena, Planning, JPKB, Parks, Fire Board, FYCC, etc.) There were no updates. 2. Discussion of Options for City Council Vacancy City Attorney Couri provided information on the resignation letter received from Councilmember Halling at the last Council meeting and how the vacancy may be filled. He answered questions from Council regarding the process and said the term would run through the next City Election in 2022. Agenda Page 7 City Council Meeting Draft Minutes Page 3 Regular Meeting of January 19,2021 2. Discussion of Options for City Council Vacancy - continued City Clerk Luedke and Finance Director Lannes answered questions from Council regarding the cost and timing if a special election were to be called. There was Council discussion regarding the vacancy, the process of appointing a new member and the two letters of interest that the City had received. MOTION made by Councilmember Hudson, seconded by Councilmember Cocking to appoint Mr. Bob Zagorski to fill the City Council Vacancy. Ayes: Cocking, Hendrickson, Hudson and Olson. Nays: None. The motion carried. B. Fire-None C. Planning and Zoning—None D. City Clerk—None E. Finance—None F. Public Works/Engineering —None G. Building—None H. Legal—None L Administration 1. City Administrator's Update Mayor Hendrickson provided information regarding the ongoing negotiates on the creamery pond and said the project could potential cost could be up $800,000 to make it a variable parcel. She said that the Council may need to have a workshop to discuss the project. City Attorney Couri provided additional information and answered questions on the project. Announcements and/or Upcoming Meetings January 25 Joint Powers Water Board, 6 pm Parks Committee, 7 pm February 1 City Council, 7 pm February 8 STMA Arena Board, 6 pm February 9 Planning Commission, 7 pm 10. Adjournment MOTION made by Councilmember Cocking, second by Councilmember Hudson to adjourn the meeting at 7:47 pm. Ayes: Cocking, Hendrickson, Hudson and Olson. Nays: None. The motion carried. Respectfully submitted, Kristine A. Luedke, City Clerk Agenda Page 8 �lbcrtviljc Mayor and Council Request for Action I f February 1, 2021 SUBJECT: CONSENT-FINANCE—PAYMENT OF BILLS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Authorize the Monday, February 1, 2021,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 ExpensesNendors (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) Agenda Page 9 1b£rfVlll£ Mayor and Council Communication SmoH T...Lm.g.f7 CW Ulu. February 1, 2021 SUBJECT: CONSENT-FINANCE—ACCOUNTS RECEIVABLE REPORT ACCOUNTS RECEIVABLE: Total accounts receivable outstanding through January 25, 2021 is $81,536.06. The percentage of the total due based on the aging report is as follows: 0-30 days outstanding $49,127.59 60.25% 30-60 days outstanding $8,199.70 10.06% 60-90 days outstanding $13,900.53 17.05 % Over 90 days outstanding $10,308.24 12.64% PRACTICES/POLICY CONSIDERATIONS: The Mayor and Council review quarterly financial reports. FINANCIAL CONSIDERATIONS: There are no financial considerations at this time. Outstanding invoices over sixty days past due, and are attached to an Albertville property, will be assessed to the taxes payable 2022 in November. 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 Attachment(s): Accounts Receivable Report Agenda Page 10 Vendor Amount Due 0-30 Days 30-60 days 60-90 days 90 days & Over Albertville Plaza $541.94 $541.94 City of St. Michael $15,000.00 $15,000.00 Culver's Restaurant $102.31 $102.31 Douglas A Carlson Development $69.58 $69.58 FYCC $125.42 $125.42 Grinnell Mutual $475.00 $475.00 HS Blue Line Club $17,233.39 $8,360.00 $73.39 $8,800.00 ISD#885 $15,000.00 $15,000.00 Omann Brothers $5,426.20 $44.88 $5,381.32 Bill Roemer $1,540.15 $576.65 $963.50 Thomas Sullivan $475.00 $475.00 State Farm-Travis Williams $201.67 $1.67 $200.00 STMA United Soccer Club $14,370.78 $3,430.13 $3,402.64 $7,538.01 Wright County Highway Department $5,617.79 $5,617.79 Xcel Energy Claims Services $5,356.83 $4,030.89 $17.70 $1,308.24 Total $81,536.06 $49,127.59 $8,199.70 $13,900.53 $10,308.24 Current 0-30 days $49,127.59 60.25% 30-60 days $8,199.70 10.06% 60-90 days $13,900.53 17.05% over 90 day $10,308.24 12.64% Agenda Page 11 �lbcrtvillc Mayor and Council Communication February 1, 2021 SUBJECT: FINANCE—4TH QUARTER BUDGET TO ACTUAL REPORT—UN-AUDITED Orb QUARTER BUDGET TO ACTUAL: Attached are the 4th Quarter 2020 un-audited General Fund summaries of revenues and expenditures. Revenues are expected to be at 100%. Expenses are expected to be at 100%. This summary shows operating revenues are at 105.29% and operating expenses are at 103.48%. The expenses for purchases due to Covid-19 appear in the expenses, but the reimbursements are not shown in revenues due to being coded as a reimbursement in accordance with General Accepted Accounting Procedures. In addition, the City of Albertville budgets for capital projects and purchases over several years. Therefore, it is expected to exceed the expenses for annual capital in years of the expected purchase finally occurs. VARIANCES: Revenue: • Building Permits/Engineer As Built and Plan Check—more single family dwellings then expected, Kwik Trip and Goddard School. • Charges for Services—Fire collections for Becker Fire, Beaudry Oil and a number of smaller accidents. • Other Revenue—LMC Dividend Expenses: • General Government includes $20,000 in Microsoft Server upgrade (every 10 years), Covid-19 purchases of equipment • Elections—supplies for elections related to Covid-19 • Economic Development increase in property taxes due to non-exempt status ran out on commercial property the City owns • Capital Purchases—some of the larger expenses were Fire Department pagers, Fire Department Turn-out Gear, Street/Transportation Projects (used MSA dollars for a portion of this project which doesn't show in revenue), snow plow and office remodel. Again, some of these expenses were related to Covid-19. Responsible Person/Department: Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD Attachment: 2020 Budget to Actual Agenda Page 12 Mayor and Council Communication—February 1, 2021 Finance—4th Quarter Budget to Actual Report Page 2 of 3 2020 Council Update General Fund Operations 2020 2020 Actual Ytd % General Fund Revenue: Budget 12/31/20 Budget 31010 Current Ad Valorem Taxes 2,138,228 $2,114,046 98.87% 32100 Business Licenses&Permits 27,000 $37,126 137.50% 32110 Liquor Licenses 30,000 $29,560 98.53% 32150 Sign Permits 500 $245 49.00% 32210 Building Permits 100,000 $232,683 232.68% 32240 Animal Licenses 1,000 $1,405 140.50% 33401 LGA Revenue expected 112,010 $112,010 100.00% 33405 Police Aid 41,000 $45,570 111.15% 33406 Fire Aid 64,000 $86,875 135.74% 33422 Other State Aid Grants 500 $0 0.00% 33423 Municipal Maintenance Aid 11,000 $11,535 104.86% 34000 Charges for Services 15,000 $24,836 165.57% 34005 Enaineerina As Built Fee 3,000 $5,400 180.00% 34101 Leases-City Property 2,600 $10,668 0.00% 34103 Zoning&Subdivision Fees 2,500 $4,350 174.00% 34104 Plan Check Fee 65,000 $94,691 145.68% 34107 Title Searches 2,500 $5,445 217.80% 34113 Franchise Fee-Cable 74,000 $64,664 87.38% 34202 Fire Protection Contract Charges 407,253 $407,253 100.00% 34780 Rental Fees 15,000 $1,913 12.75% 34950 Other Revenues 15,000 $19,028 126.85% 34110 Arena 13,410 $13,410 100.00% 34112 Electric Franchise Fee 125,000 $124,964 99.97% 36210 Interest Earnings 25,000 $29,875 119.50% General Fund Reserves 12,461 $0 0.00% Total Revenues 3,302,962 3,477,552 105.29% Agenda Page 13 Mayor and Council Communication—February 1, 2021 Finance—4th Quarter Budget to Actual Report Page 3 of 3 2020 General Fund Department 2020 Actual Ytd % Ex enditures: Budget 12/31/20 Budget 41000 General Government 37,269 $83,728 224.66% 41100 Council 47,274 $44,113 93.31% 41300 Combined Administrator/Engineer 158,401 $146,109 92.24% 41400 City Clerk 120,502 $127,371 105.70% 41440 Elections 25,000 $33,383 133.53% 41500 Finance 112,473 $92,103 81.89% 41550 City Assessor 36,720 $38,913 105.97% 41600 City Attorney 40,000 $24,761 61.90% 41700 City Engineer 25,000 $30,814 123.26% 41800 Economic Development 11,000 $39,694 360.85% 41910 Plannin &Zoning 56,507 $63,026 111.54% 41940 City Hall 144,835 $154,074 106.38% 42000 Fire Department 525,021 $574,379 109.40% 42110 Police 799,715 $801,906 100.27% 42400 Building Inspection 248,653 $245,823 98.86% 42700 Animal Control 9,000 $7,578 84.20% 43100 Public Works-Streets 362,650 $342,206 94.36% 45000 Culture&Recreation 78,042 $76,141 97.56% 45100 Parks&Recreation 373,734 $406,095 108.66% 43160 Electric street lights 91,166 $85,694 94.00% Total Expenditures 3,302,962 3,417,911 103.48% 2020 Council Update Capital Fund 2020 2020 Actual Ytd % Capital Reserve Fund Revenues Budget 12/31/20 Budget 31010 1 Current Ad Valorem Taxes 1,275,868 $1,275,868 7 100.00% 2020 Council Update Capital Fund 2020 2020 Actual Ytd % Capital Reserve Fund Expenditures Budget 12/31/20 Budget 300 1 Professional Services 1,275,686 $3,625,941 284.23% Agenda Page 14 �lbcrtvillc Small Town Wag.ffig ON Lft. Mayor and Council Request for Action February 1, 2021 SUBJECT: PUBLIC HEARING—ADVANCE VOLUMETRIC ALLIANCE TAX INCREMENT FINANCING REQUEST RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Adopt the following Resolutions: 1. Resolution No. 2021-006 entitled"A Resolution approving the Establishment of Tax Increment Financing (Economic Development) District No. 18 (AVA Project)within Municipal Development District No. 1; and the Adoption of a Tax Increment Financing Plan relating Thereto;" and 2. Resolution No. 2021-007 entitled"A Resolution authorizing an Interfund Loan for Advance of Certain Costs in Connection with Tax Increment Financing (Economic Development) District No. 18 (AVA Project)." BACKGROUND: Advanced Volumetric Alliance ("AVA")is proposing to construct an approximately 180,000 s.f. manufacturing facility on property in the northwest corner of the City between Kadler Avenue and the future road referred to as Keystone (renamed Karmen Avenue). The facility will build multi-family housing component units in the manufacturing facility and will ship these units to locations in Minnesota and perhaps neighboring states for final construction into a finished apartment or condominium building in the field. AVA has indicated to the State of Minnesota that it believes it will eventually create 189 full- time equivalent new direct jobs. City Staff does not currently know the time frame those jobs will be created in, nor how many of those jobs will be located at the proposed Albertville facility. AVA has requested Tax Increment Financing ("TIF") assistance from the City. Based on the information provided by AVA regarding the proposed building, it is estimated that if established, the TIF will generate approximately $2,256,000 in tax increment that can be returned to the Developer to help defray development costs, including site preparation, parking lot construction, costs of constructing Kadler Avenue and Karmen Avenue, and other qualifying development costs incurred by AVA. The proposed TIF would capture the additional tax revenue that the new development would generate (including the City's, School District's, and County's portion of taxes generated by the development) over a 9-year period. At the end of the 9-year period, the three governmental entities would resume collecting their regular tax revenues from the property, including the revenues generated by the proposed improvements, for as long as the improvements remain on the property. The interfund loan resolution is required to allow the City to advance the administrative costs to pay for the establishment of the TIF district from other funds and then reimburse these other funds for these advanced costs once the tax increments begin to come in 2023 and beyond. Agenda Page 15 Mayor and Council Request for Action—February 1, 2021 AVA Tax Increment Financing Request Page 2 of 2 KEY ISSUES: • In order to approve the TIF plan, the City Council must find, among other things, that the proposed development would not occur without the requested TIF assistance. • The City's Financial Consultant,Northland Securities, has prepared an analysis pertaining to the requested TIF assistance (attached to this RCA)to aid the Council in evaluating AVA's request. • If established, the TIF will capture new taxes generated by the proposed development for a period of nine years that would otherwise go to the City, School District and County. • It is expected that the proposed development would generate tax increment of $2,256,000 that could be returned to the Developer to offset qualifying costs of development. • If the TIF is established, the City Council will need to approve an agreement with AVA at a later meeting that will require AVA to establish a set number of full-time equivalent jobs at a set wage within a two-year period and will set the amount of TIF increment that AVA could receive. • This TIF would be a"pay-as-you-go"TIF in which the City would only provide the developer with TIF revenues on a semi-annual basis after the City receives the TIF monies from the County. The City would not issue debt on the private market, nor would it pledge its general tax revenues in this transaction. The City would issue a Note to AVA, but it would only be payable from the TIF proceeds the City receives from this proj ect. POLICY/PRACTICES CONSIDERATIONS: The City has established a number of TIF districts in the past to aid in the development of manufacturing facilities in the City. If established, this would represent the largest TIF district(as measured by TIF increment generated)that the City has established for a manufacturing facility. FINANCIAL CONSIDERATIONS: The City would provide approximately $2,256,000 in tax increment to AVA over the life of the TIF. The City would retain approximately 5% of the TIF revenue generated by the TIF for administrative costs. During the life of the TIF the City, School District and County would still collect the same amount of taxes from the property that they currently are collecting,but would not collect the additional revenue generated by the proposed development until the TIF expires after nine years. LEGAL CONSIDERATIONS: After holding the public hearing on this matter, the City has the legal authority to establish the TIF,provided it makes the findings set out in the attached resolution establishing the TIF district. Department/Responsible Person: Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator/Public Works Director Attachments: 1. Tax Increment Financing Plan 2. January 25, 2021 memo from Tammy Omdal of Northland Securities 3. Resolution No. 2021-006 4. Resolution No. 2021-007 Agenda Page 16 DRAFT FOR PUBLIC HEARING CITY OF ALBERTVILLE, MINNESOTA TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 18 (AVA) WITHIN MUNICIPAL DEVELOPMENT DISTRICT NO. 1 PUBLIC HEARING DATE: , 2021 PLAN APPROVED DATE: , 2021 PLAN CERTIFICATION REQUEST DATE: , 2021 PLAN CERTIFIED DATE: 12021 I Northland Securities,Inc. 150 South Fifth Street, Suite 3300 Minneapolis, 0 55402 NORTHLAND �� 4r PUBLIC FINANCE Member NASD and SIPC I Registered with SEC and MSRB Agenda Page 17 TABLE OF CONTENTS ARTICLE I - INTRODUCTION AND DEFINITIONS.........................................................I Section 1.01 Introduction ......................................................................................1 Section1.02 Definitions.........................................................................................1 Section 1.03 Plan Preparation...............................................................................1 ARTICLE II -TAX INCREMENT FINANCING PLAN.........................................................2 Section 2.01 Statutory Authority..........................................................................2 Section 2.02 Planned Development.....................................................................2 2.02.1 Description of Development.....................................................................2 2.02.2 City Plans and Development Program....................................................2 2.02.3 Land Acquisition.........................................................................................2 2.02.4 Development Activities..............................................................................2 2.02.5 Need for Tax Increment Financing...........................................................2 Section 2.03 Tax Increment Financing District...................................................3 2.03.1 Designation..................................................................................................3 2.03.2 Boundaries of TIF District..........................................................................3 2.03.3 Type of District............................................................................................3 Section 2.04 Plan for Use of Tax Increment........................................................3 2.04.1 Estimated Tax Increment............................................................................3 2.04.2 Public Development Costs.........................................................................4 2.04.3 Estimated Sources and Uses of Funds.....................................................4 Figure2-1......................................................................................................5 2.04.4 Administrative Expense.............................................................................5 2.04.5 County Road Costs.....................................................................................5 2.04.6 Bonded Indebtedness.................................................................................5 2.04.7 Duration of TIF District..............................................................................6 2.04.8 Estimated Impact on Other Taxing Jurisdictions...................................6 2.04.9 Prior Planned Improvements....................................................................6 ARTICLE III -ADMINISTERING THE TIF DISTRICT ......................................................7 Section 3.01 Filing and Certification....................................................................7 Section 3.02 Modifications of the Tax Increment Financing Plan....................7 Section 3.03 Four-Year Knockdown Rule...........................................................7 Section 3.04 Pooling and Five-Year Rule.............................................................8 Section 3.05 Financial Reporting and Disclosure Requirements.....................8 Section 3.06 Business Subsidy Compliance........................................................9 EXHIBITS..........................................................................................................................10 Exhibit I Present Value Analysis..................................................................10 Exhibit II Projected Tax Increment................................................................11 Exhibit III Impact on Other Taxing Jurisdictions..........................................12 Exhibit IV Estimated Tax Increment Over Life of District ..........................13 Exhibit V Map of TIF District and Development District..........................14 Agenda Page 18 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 18 ARTICLE I — INTRODUCTION AND DEFINITIONS SECTION 1.01 INTRODUCTION The City of Albertville proposes to provide tax increment financing assistance through the establishment of Tax Increment Financing(Economic Development)District No. 18 (the "TIF District") within Municipal Development District No. 1 to assist with the financing of certain project costs for the construction of an approximately 180,000 square feet manufacturing and warehouse facility, inclusive of 20,000 square feet of supporting office and administration. This document contains the plan for the TIF District which is consistent with the objectives of the Development Program for Municipal Development District No. 1, as most recently amended pursuant to City Resolution No. 2015-025 adopted June 15, 2015. 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 the party undertaking construction in the TIF District anticipated to be Advanced Volumetric Alliance, LLC, d/b/a AVA, its successors or assigns. 5. "Development" means the construction and development of an approximately 180,000 square feet manufacturing and warehouse facility, inclusive of 20,000 square feet of supporting office and administration. 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. "Public Development 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 Independent School District No. 728. 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. 18 (AVA). 14. "TIF Plan'means the tax increment financing plan for the TIF District (this document). SECTION 1.03 PLAN PREPARATION The document was prepared for the City by Northland Securities, Inc. DRAFT FOR PUBLIC HEARING, 2/1/2021 1 Agenda Page 19 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 18 ARTICLE II - TAX INCREMENT FINANCING PLAN SECTION 2.01 STATUTORY AUTHORITY The TIF District and the TIF Plan are established under the authority of the TIF Act. SECTION 2.02 PLANNED DEVELOPMENT 2.02.1 Description of Development The Developer proposes to build an approximately 180,000 square feet manufacturing and warehouse facility, inclusive of 20,000 square feet of supporting office and administration. The site is currently vacant. 2.02.2 City Plans and Development Program In addition to achieving the objectives of the Development Program, the 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 or redevelopment of the City as a whole. The City has adopted land use controls to guide the use of property. The Development plans for the Development in the TIF District have been reviewed by the Planning Commission and the City Council, and conforms to current land use controls. 2.02.3 Land Acquisition The Developer will acquire the property within the TIF District. 2.02.4 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 the Developer to construct the Development and provide tax increment financing assistance to pay for Public Development Costs. 2.02.5 Need for Tax Increment Financing In the opinion of the City, the 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 Development requires public financial assistance to offset site and utility improvements to allow for the Developer to proceed with construction of the Development. • 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 I. This analysis indicates that the increase in estimated market value of the proposed development(less the present value of the projected tax increments for the maximum duration permitted by the TIF Plan) exceeds the estimated market value of the site prior to the establishment of the TIF District. DRAFT FOR PUBLIC HEARING, 2/1/2021 2 Agenda Page 20 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 18 SECTION 2.03 TAX INCREMENT FINANCING DISTRICT 2.03.1 Designation This TIF District is designated as Tax Increment Financing(Economic Development)District No. 18(AVA). 2.03.2 Boundaries of TIF District The boundaries of the TIF District are depicted in Exhibit V. The TIF District includes parcel number 101-500-352100 and the immediate adjacent roads and right-of-way. The property within the TIF District is described as follows: • legal description will be included here in the final document, land use review in process 2.03.3 Type of District The TIF District is established as an "economic development" district pursuant to Sections 469.174 subdivision 12, and 469.176, subdivision 4c, of the TIF Act. Section 469.174, subdivision 12 of the TIF Act to find that the Development is in the public interest because: (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;or (4) it satisfies the requirements of a workforce housing project under section 469.176, subdivision 4c, paragraph(d). The Development will meet these conditions. Pursuant to Section 469.176, subdivision 4c of the TIF Act, 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) space necessary for and related to the activities listed in clauses (1) to(5);or (7) a workforce housing project that satisfies the requirements of paragraph(d). The Development is for manufacturing,warehousing, storage, and distribution of tangible personal property, and 100%of the planned building (on a square footage basis) will be used for this purpose, and thus meets the requirements of the TIF Act. SECTION 2.04 PLAN FOR USE OF TAX INCREMENT 2.04.1 Estimated Tax Increment The original net tax capacity of value of the TIF District will be set by the County upon request for certification. For the purposes of this Plan, the estimated original net tax capacity DRAFT FOR PUBLIC HEARING, 2/1/2021 3 Agenda Page 21 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 18 is$43,416. This amount is estimated based on the most recent published estimated market value of$2,170,800 for Parcel 101-500-352100;with tax capacity value calculated for commercial property. The total tax capacity value of the property after development completion(for taxes payable in 2023) is estimated to be$250,000. This amount is based on a total estimated taxable market value of$12,500,0000 with property classified as commercial. The estimated difference between the total tax capacity value after development completion and the original net tax capacity value is the captured tax capacity value in the amount of$206,584 for the creation of tax increment. The total local tax rate is estimated at 122.139%based on the preliminary tax rates for taxes payable in 2021. The TIF Plan assumes that this rate will be set as the original local tax rate for the TIF District. At the time of the certification of the original net tax capacity for the TIF District, the County Auditor shall certify the original local tax rate that applies to the TIF District. The original local tax rate is the sum of all the local tax rates, excluding that portion of the school rate attributable to the general education levy under Minnesota Statutes section 126C.13,that apply to a property in the TIF District. The local tax rate to be certified is the rate in effect for the same taxes payable year applicable to the tax capacity values certified as the TIF District's original tax capacity. The resulting tax capacity rate is the original local tax rate for the life of the TIF District. Under these assumptions, the estimated annual tax increment will be$251,412 after development completion and after deducting for the State Auditor's fee (0.36%of the captured tax increments). 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. It is the intent of the City to retain 100%of the captured tax capacity value for the duration of the TIF district. Exhibit II contains the projected tax increment over the life of the District. 2.04.2 Public Development Costs The City will use tax increment to pay Public Development Costs. A contract between the City and the Developer will define the means for verifying Public Development Costs incurred by the Developer that will be eligible for reimbursement and the means of disbursing tax increments collected by the City. The City will use tax increments to pay financing costs. The interest rate payable on bonds issued, will be set pursuant to approving resolutions. The definition of"bonds' includes interfund loans and tax increment financing revenue notes. 2.04.3 Estimated Sources and Uses of Funds The estimated sources of revenue, along with the estimated Public Development Costs of the TIF District, are itemized in Figure 2-1 that follows. Such costs are eligible for reimbursement from tax increments, and other listed sources of revenue from the TIF District. The City reserves the right to administratively adjust the amount of any of the Public Development Cost items listed in Figure 2-1, so long as the total estimated tax increment project costs amount,not including financing costs, is not increased. DRAFT FOR PUBLIC HEARING, 2/1/2021 4 Agenda Page 22 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 18 FIGURE 2-1 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 $2,375,000 Interest and investment earnings $10,000 Sales/lease proceeds $0 Market value homestead credit $0 Total Estimated Tax Increment Revenues $2,385,000 Estimated Project/Financing Costs(to be paid or financed with tax increment) Project costs Land/building acquisition $0 Site improvements/preparation costs $1,794,000 Utilities $0 Other qualifying improvements $0 Administrative costs $119,000 Estimated Tax Increment Project Costs $1,913,000 Estimated financing costs Interest expense $472,000 Total Estimated Project/Financing Costs to be Paid from Tax Increment $2,385,000 Estimated Financing Total amount of bonds to be issued $1,913,000 2.04.4 Administrative Expense The City plans to use tax increment revenues to pay for administrative expenses for the TIF District. The use of tax increment revenues to pay administrative expenses will not exceed the maximum amount of ten percent of tax increment revenues pursuant to the TIF Act. The City will use these monies to pay for and reimburse the City for costs of administering the TIF district as allowed by the TIF Act. The estimated amount of tax increment revenue planned to pay administrative expense is shown in Figure 2-1. Anticipated administrative expenses of the TIF District include annual audit of the fund for TIF District, preparation of annual reporting, legal publication of annual report, and administration of the development agreement. 2.04.5 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. 2.04.6 Bonded Indebtedness The total amount of bonds estimated to be issued is shown in Figure 2-1. The City will not issue any general obligation bonded indebtedness as a result of the TIF Plan. Pursuant to Section 469.178, subdivision 7 of the TIF Act, the City may advance or loan money to finance expenditures under Section 469.176, subdivision 4, from the general fund of the City or any other legally authorized fund under which it has legal authority to do so, subject to the following provisions: (a) Not later than 60 days after money is transferred, advanced, or spent,whichever is earliest, the loan or advance must be authorized by resolution of the City. DRAFT FOR PUBLIC HEARING, 2/1/2021 5 Agenda Page 23 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 18 (b)The resolution may generally grant to the City the power to make interfund loans under one or more tax increment financing plans or for one or more districts. The resolution may be adopted before or after the adoption of the tax increment financing plan or the creation of the tax increment financing district from which the advance or loan is to be repaid. (c)The terms and conditions for repayment of the loan must be provided in writing. The written terms and conditions may be in any form,but must include, at a minimum, the principal amount,the interest rate, and maximum term. Written terms may be modified or amended in writing by the City before the latest decertification of any tax increment financing district from which the interfund loan is to be repaid. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or 549.09 as of the date the loan or advance is authorized,unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or 549.09 are from time to time adjusted. Loans or advances may be structured as draw- down or line-of-credit obligations of the lending fund. (d)The City shall report in the annual report submitted under Section 469.175, subdivision 6 of the TIF Act: (1) the amount of any interfund loan or advance made in a calendar year; and (2) any amendment of an interfund loan or advance made in a calendar year. 2.04.7 Duration of TIF District The duration to collect and spend tax increments on eligible purposes is set at the maximum duration of eight (8) years after the date of receipt of the first tax increment or nine (9)years of tax increment collection. The estimated date for receipt of the first tax increment is July 1, 2023, and the decertification date is December 31,2031. 2.04.8 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 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 Development on city-provided services. There may be minimal borrowing costs to the City for the Development. A manageable 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. 2.04.9 Prior Planned Improvements There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. The City will include this statement with the request for certification to the County Auditor. DRAFT FOR PUBLIC HEARING, 2/1/2021 6 Agenda Page 24 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 18 ARTICLE III — ADMINISTERING THE TIF DISTRICT SECTION 3.01 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 within the TIF District and shall request that the County Assessor review and certify the assessment agreement as reasonable. The City does not expect to enter into an assessment agreement in connection with the Development. SECTION 3.02 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 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 total estimated Public Development Costs, including adminsitrative costs of the City. ■ Designation of additional property to be acquired by the City. Other modifications can be made by resolution of the City. In addition, the original approval process does not apply if(A) (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 (B) 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 3.03 FOUR-YEAR KNOCKDOWN RULE The provision of the TIF Act referred to as the Four-Year Knockdown Rule requires development activity to take place on each parcel within a tax increment financing(TIF) district within four years from the date of certification of the original net tax capacity of the district. If DRAFT FOR PUBLIC HEARING, 2/1/2021 7 Agenda Page 25 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 18 development activity on a parcel has not begun within the required time frame,no additional tax increment may be collected from that parcel and its value must be excluded from the district's original net tax capacity. Development activity includes demolition, rehabilitation, renovation or site improvement, including a qualified improvement of an adjacent street,has commenced on a parcel located within the TIF District. If no development activity has occurred within four years from the date of certification then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. 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 recertify 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 3.04 POOLING AND FIVE-YEAR RULE At least 80%of the tax increments (not including administrative expenses) from the 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 the TIF District may be used to finance activities outside the TIF District but within the boundaries of the Development 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. It is anticipated that all tax increments to be collected from within the TIF District and distributed by the County will be spent or obligated within five years from the date of certification of the TIF District. SECTION 3.05 FINANCIAL REPORTING AND DISCLOSURE REQUIREMENTS The City will comply with the annual reporting requirements of the TIF Act pursuant to the guidelines of the Office of the State Auditor. Under current law, the City must prepare and 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 the TIF District, in the format as prescribed by the Office of the State Auditor. The reporting and disclosure requirements outlined in this section begin with the year a tax increment financing district is certified, and shall end in the year in which both the district DRAFT FOR PUBLIC HEARING, 2/1/2021 8 Agenda Page 26 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 18 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 increments. SECTION 3.06 BUSINESS SUBSIDY COMPLIANCE The City will comply with the business subsidies requirements specified in Minnesota Statutes, Sections 116J.993 to 116J.995. DRAFT FOR PUBLIC HEARING, 2/1/2021 9 Agenda Page 27 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 18 Exhibit I City of Albertville Tax Increment Financing District No. 18 Present Value Analysis As Required By Minnesota Statutes, Section 469.175, subdivision (3)(b)(2) AVA 1 Estimated Future Market Value w/ Tax Increment Financing 13,535,709 2 Payable Preliminary 2021 Market Value 2,170,800 3 Market Value Increase (1-2) 11,364,909 4 Present Value of Future Tax Increments 1,888,940 5 Market Value Increase Less PV of Tax Increments 9,475,969 6 Estimated Future Market Value w/o Tax Increment Financing 2,350,665 7 Payable Preliminary 2021 Market Value 2,170,800 8 Market Value Increase (6-7) 179,865 9 Increase in MV From TIF 9,296,103 2 Assume 7.00% annual appreciation over 9 year life of district. 2 Statutory compliance achieved if increase in market value from TIF (Line 9) is greater than or equal to zero. DRAFT FOR PUBLIC HEARING, 2/1/2021 10 Agenda Page 28 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 18 Exhibit II City of Albertville Tax Increment Financing District No.18(Economic Development) AVA Projected Tax Increment Cash Flow Taxable Less Base Available TIF for TIF Taxes Captured Tax Net Market Tax Tax Present City Present District Payable Tax Tax Rate z Increment Available Value(TMV) Capacity Capacity a Value 6 Admin Value 6 Year Year 16 4 Capacity Financing TIF (TIF)s Costs 1 2023 12,500,000 250,000 (43,416) 206,584 122.139% 251,412 233,815 12,571 238,841 222,124 2 2024 12,625,000 252,500 (43,416) 209,084 122.139% 254,454 461,270 12,723 241,731 438,207 3 2025 12,751,250 255,025 (43,416) 211,609 122.139% 257,527 682,533 12,876 244,650 648,407 4 2026 12,878,763 257,575 (43,416) 214,159 122.139% 260,630 897,767 13,032 247,599 852,879 5 2027 13,007,550 260,151 (43,416) 216,735 122.139% 263,765 1,107,132 13,188 250,577 1,051,775 6 2028 13,137,626 262,753 (43,416) 219,337 122.139% 266,931 1,310,782 13,347 253,584 1,245,243 7 2029 13,269,002 265,380 (43,416) 221,964 122.139% 270,129 1,508,869 13,506 256,623 1,433,426 8 2030 13,401,692 268,034 (43,416) 224,618 122.139% 273,358 1,701,540 13,668 259,690 1,616,463 9 2031 13,535,709 270,714 (43,416) 227,298 122.139% 276,621 1,888,940 13,831 262,790 1,794,493 TOTAL= 2,374,826 1,888,940 118,741 2,256,084 1,794,493 Assumptions: 1 Taxable market value(TMV)annual growth assumption=1.00% 2 Original Tax Capacity Rate estimated based on Taxes Payable Year Preliminary 2021. 3 Election for captured tax capacity is 100.00% 4 Base Tax Capacity is calculated based on a TMV=$2,170,800.The TIF District is assumed to include 33.06 acres of what is a 64.39 acre property valued at$2,170,000 for taxes payable 2021(Ag Non-Homestead,Commercial classification). 5 Present value is calculated based on semi-annual payments,4.0%rate,and date of 1/1/2022. 6 Assumption for TMV=Total SF of 177,850 at$70.28 per SF for Phase I.Phase II is not included. 7 City retains 5%of the TIF for City administration costs. 8 Available TIF after State Fee is calculated based captured tax increments less State Auditor Fee of 0.36%. DRAFT FOR PUBLIC HEARING, 2/1/2021 11 Agenda Page 29 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 18 Exhibit III City of Albertville Tax Increment Financing District No. 18 Impact on Other Taxing Jurisdictions (Taxes Payable Preliminary 2021) AVA Annual Tax Increment Estimated Annual Captured Tax Capacity(Full Development) $270,714 Payable Preliminary 2021 Local Tax Rate 122.139% Estimated Annual Tax Increment $330,648 Percent of Tax Base Net Tax Captured Percent of Capacity Tax Total NTC (NTC) a Capacity City of Albertville 9,224,926 270,714 2.93% Wright County 188,378,010 270,714 0.14% ISD 728 90,240,OS9 270,714 0.30% Dollar Impact of Affected Taxing Jurisdictions Net Tax Tax Capacity %of Total Increment Added Local Tax Rate (NTC) Share City of Albertville 46.769% 38.292% 126,610 1.372% Wright County 43.711% 35.788% 118,332 0.063% ISD 728 31.659% 25.920% 8S,70S 0.095% Other 0.000% 0.000% 0 Totals 122.139% 100.000% 330,647 NOTE NO. 7: 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 TIF District is established, allowable costs paid from the increments, and the TIF District is terminated, all taxing jurisdictions will experience an increase in their tax base. DRAFT FOR PUBLIC HEARING, 2/1/2021 12 Agenda Page 30 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 18 Exhibit IV City of Albertville Tax Increment Financing(Economic Development)District No.18 AVA Estimated Tax Increments Over Maximum Life of District Based on Pay Preliminary 2027 Tax Rate= 722.139% 46.769% 43.771% 37.659% 0.000% New Estimated City County School Other TIF Taxes Taxable New Base Captured Total Tax TIF TIF TIF TIF District Payable Market Tax Tax Tax Increment Related Related Related Related Year Year Value Capacity Capacity Capacity (TIF) Share Share Share Share 1 2023 12,500,000 250,000 43,416 206,584 252,320 96,617 90,300 65,402 2 2024 12,625,000 252,500 43,416 209,084 255,373 97,786 91,393 66,194 3 2025 12,751,250 255,025 43,416 211,609 258,457 98,967 92,496 66,993 4 2026 12,878,763 257,575 43,416 214,159 261,572 100,160 93,611 67,801 5 2027 13,007,550 260,151 43,416 216,735 264,718 101,365 94,737 68,616 6 2028 13,137,626 262,753 43,416 219,337 267,895 102,581 95,874 69,440 7 2029 13,269,002 265,380 43,416 221,964 271,105 103,810 97,023 70,272 8 2030 13,401,692 268,034 43,416 224,618 274,346 105,052 98,183 71,112 9 2031 13,535,709 270,714 43,416 227,298 277,620 106,305 99,354 71,960 Total 2,383,406 912,643 852,971 617,790 Note: The Estimated Total Tax Increment shown above is before deducting the State Auditor's fee,which is payable at a rate of 0.36%of the Total Tax Increment collected. Exhibit II provides Estimated Total Tax Increment after deducting for the State Auditor's fee. DRAFT FOR PUBLIC HEARING, 2/1/2021 13 Agenda Page 31 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 18 EXHIBIT V Map of Boundaries of Tax Increment Financing District No. 18 and Municipal Development District No. 1 (Boundaries of Municipal District No. 1 is coterminous with the municipal boundaries of the City of Albertville) . NVOMI, KAFL S p( N y {jUf>Cr "fD 1 3 (D (D �a—E KXCER < ICE® W�. 9TE 0 U LABEgVk n. 7 N iFTO�N G DLo�1 --LINWj . OO m a A�2 C:�) �Le"tw f/) -LP.j O �!o z 'L--Nr- F 0 LANDER as O�'�,yxLl , t�� o MAIN � was �NCT 0 A iv' w/,Th71 � O 0 LA LYL�' by � gp,RTFIEL-INDUS o °i r � I d II (D Q' F -- i co o 0 I� p61? I � � I � I � I I � I � o tL �C O D 3 Z (A o (,t1 < N z v �• 3 o Cr A M. o 1. m (A m rt — z m 3 T oN N D Z o C z 0 0 E . (A c) C 0 m co T 3 rt DRAFT FOR PUBLIC HEARING, 2/1/2021 14 Agenda Page 32 NORTHLAND PUBLIC FINANCE MEMORANDUM To: City of Albertville From: Tammy Omdal Date: January 25,2021 Re: Tax Increment Assistance for Advanced Volumetric Alliance(AVA) The City of Albertville (the "City") received a request from Advanced Volumetric Alliance (the "Developer") for the establishment of an Economic Development Tax Increment Financing District (the"TIF District')to facilitate the use of tax increments to support site development costs and create a project that meet the goals of the TIF District in creating quality wage jobs adequate to support households in the City. The Development consists of an approximately 180,000 square feet manufacturing and warehouse facility,inclusive of 20,000 square feet of supporting office and administration(the"Development"). The facility proposed is a state-of-the-art volumetric construction facility producing single and multi- family residential units constructed in the facility and shipped and set on sites throughout the region. Information provided by the Developer as part of the application to the City,states that approximately 500 direct and indirect jobs will be created by the Development.The estimated cost for construction of the Development is approximately$38.1 million. The proposed boundaries of the TIF District are depicted in the map included in Exhibit V of the draft plan for the TIF District. The TIF District includes parcel number 101-500-352100 and the immediate adjacent roads and right-of-way.The Developer is completing a land review process with the City and the platting of the approximate 25-acre site for the Development. The Development will be located within the boundaries of the TIF District on Keystone Avenue in the City.The Developer is planning to commence construction of the Development in April 2021,subject to approvals. In addition to the request for the establishment of the TIF District,the Developer is requesting the City work in conjunction with the Developer on application to the State of Minnesota(the"State")for public financial assistance from the State. This memorandum provides a review of the request for tax increment financing assistance based on Northland's analysis of the application for the Development. Developer Background The Developer proposes to establish corporate operation and production in the proposed Albertville facility.The Developer has assembled a team of individuals that it presents as having expertise in the manufacturing and construction trades,and members that have been practicing in the real estate and development industry for many years. 150 South Fifth Street,Suite 3300,Minneapolis,MN 55402 Main:(612)851-5900/Direct:(612)851-4964/Email:tomdal@northlandsecurities.com Member FINRA and SIPC I Registered with SEC and MSRB Agenda Page 33 TIF Assistance January 25,2021 Page 2 The application for public financial assistance states that the Development will create 189 full time equivalent (FTE) new direct jobs as a result of the Development. As part of the terms for financial assistance with the City,the Developer will need to commit to creating an agreed to minimum number of jobs at a specified average hourly wage within a two-year agreed to period. The specific job and wage requirements for the public financial assistance will be included in a Contract for Private Development(the"Contract")between the City and the Developer. Request for Public Financial Assistance The proposed public purpose of the tax increment financing assistance, a business subsidy, is to increase or preserve the tax base and to create new jobs in the City. Due to the extraordinary costs associated with acquisition and construction of the Development, the Developer is seeking financial assistance from both the City and the State. Tax Increment Financing The request for assistance from the City is for tax increment financing assistance (TIF) on what is commonly referred to as a "pay-as-you-go" basis. The City has the authority to consider the establishment of the TIF District to provide for the collection and use of tax increment revenue generated from the property to assist the Development for a maximum period of 9 years. The term "pay-as-you-go" is used to describe this type of assistance to a third-party, payable semi-annually, solely from tax increment revenue generated from the Development. The reason for semi-annual payments from the City to the Developer is to coincide with the semi-annual tax payments the property owner will make to the County. The City receives tax distributions from the County on a semi-annual basis. Exhibit A provides cash flow estimates for the tax increment financing revenue. Exhibit B provides the source and use of the estimated tax increments for the Development. State of Minnesota Investment Fund The request for assistance from the State is for funds from the Minnesota Investment Fund(MIF). The MIF Program provides loans to businesses that create or retain high-paying,full-time permanent jobs, and invest in machinery or real property acquisition or improvements. The program is available statewide for manufacturing, distribution, warehousing, and other eligible business activities. Applications are accepted on a year-round basis as funds are available. To receive funds from the MIF Program,a business must work in conjunction with the local or county government where the business will be located.A MIF application must be completed and submitted to the Department of Employment and Economic Development (DEED). Prior to submission of the application the local government, the City must hold a public hearing concerning submittal of the application for the MIF Program to DEED. The City noticed a public hearing that was opened on January 4, 2021 and continued to January 19. 2021. Following the hearing, the City may consider adoption of a resolution making certain findings. The resolution must be adopted prior to the City's submission of the application for the MIF Program. Financial Analysis of Request for Assistance Northland conducted a review of the information submitted by the Developer. Exhibit B provides a summary of the estimated sources and uses of funds for the Development. Based on Northland's Agenda Page 34 TIF Assistance January 25,2021 Page 3 review of the information provided by the Developer and under current market conditions,Northland finds that the Development may not reasonably be expected to occur solely through private investment within the reasonably near future. Due to the costs associated with acquisition of the property and construction of the improvements, the Development as proposed may only be feasible through assistance,in part,from tax increment financing and MIR The State will separately review the request for State financial assistance for the Development and make a separate determination as to need for the NU assistance. In Northlands opinion, without the public financial assistance the Development as proposed may need to be modified or is otherwise not feasible. Facts supporting this finding are as follows: ■ As shown in Exhibit C,the Developer proposes the Development to be funded from a combination of debt,equity, and a requested$625,000 loan from the State.The Developer will need to provide equity to pay for certain project costs that will be reimbursed from the TIF on a pay-go-basis.The total TIF payments from the City to reimburse site and utility improvements with interest over the life of the TIF District is estimated at an amount not to exceed approximately $2,256,000. The payment reduces the effective cost of the Development by an estimated $1,794,000 based on present value. To reimburse a portion of the site and utility improvements incurred by the Developer,it is proposed that the City issue and the Developer purchase a TIF Revenue Note(the "Note")in the maximum principal amount of$1,794,000. The City shall issue and deliver the Note to the Developer when the Developer has met certain conditions in the Contract. The Developer shall receive semi-annual payments of available tax increment from the City. The available tax increment means,on each payment date,95%of the tax increment derived from the TIF District. The amounts shown in Exhibit A are estimates only, any payment amounts will be based on the actual tax increment derived from the property in the future pursuant to terms in the Contract. ■ The total cost for the Development is estimated to be approximately $38.1 million, including machinery and equipment. Based on Northlands experience, and given the location of the Development,we find the estimated costs for the Development to be reasonable. ■ The Development includes an estimated equity contribution of 30.8%. The present value of the City tax increment financing assistance, after discounts, represents an equivalent of 3.8% of the total estimated cost for the Development.The Developer will need to provide owner cash,equity, or other private funds to pay for project costs that will be reimbursed with future tax increment revenue over a period of up to nine years.Northland finds the equity contribution ratios acceptable and consistent with financings for similar types of projects. ■ The application from the Developer did not include financial projections(pro forma)for estimated financial returns to the Developer for the Development.Northland has requested the Developer to provide a letter from the lender of the mortgage for the Development. As of the date of this memorandum,the letter from the letter(bank commitment)has not been received. ■ Northland secured services for a background and credit check to be completed on the owners of the Development holding 10 percent or more of the business.The Developer's consultant provided the names of the owners.The background and credit check did not note any adverse records. Agenda Page 35 TIF Assistance January 25,2021 Page 4 EXHIBIT A City of Albertville Tax Increment Financing District No. 18(Economic Development) AVA Projected Tax Increment Cash Flow Taxable Less Base Available TIF for TIF Taxes Captured Tax Net Market Tax Tax Present City Present Value(TMV) Capacity Capacity Admin District Payable Tax Tax Rate a Increment s Available 5 Year Year 16 4 Capacity 3 Financing Value 7 TIF Value (TIF)a Costs 1 2023 12,500,000 250,000 (43,416) 206,584 122.139% 251,412 233,815 12,571 238,841 222,124 2 2024 12,625,000 252,500 (43,416) 209,084 122.139% 254,454 461,270 12,723 241,731 438,207 3 2025 12,751,250 255,025 (43,416) 211,609 122.139% 257,527 682,533 12,876 244,650 648,407 4 2026 12,878,763 257,575 (43,416) 214,159 122.139% 260,630 897,767 13,032 247,599 852,879 5 2027 13,007,550 260,151 (43,416) 216,735 122.139% 263,765 1,107,132 13,188 250,577 1,051,775 6 2028 13,137,626 262,753 (43,416) 219,337 122.139% 266,931 1,310,782 13,347 253,584 1,245,243 7 2029 13,269,002 265,380 (43,416) 221,964 122.139% 270,129 1,508,869 13,506 256,623 1,433,426 8 2030 13,401,692 268,034 (43,416) 224,618 122.139% 273,358 1,701,540 13,668 259,690 1,616,463 9 2031 13,535,709 270,714 (43,416) 227,298 122.139% 276,621 1,888,940 13,831 262,790 1,794,493 TOTAL= 2,374,826 1,888,940 118,741 2,256,084 1,794,493 Assumptions: 1 Taxable market value(TMV)annual growth assumption=1.00% 2 Original Tax Capacity Rate estimated based on Taxes Payable Year Preliminary 2021. 3 Election for captured tax capacity is 100.00% 4 Base Tax Capacity is calculated based on a TMV=$2,170,800.The TIF District is assumed to include 33.06 acres of what is a 64.39 acre property valued at$2,170,000 for taxes payable 2021(Ag Non-Homestead,Commercial classification). 5 Present value is calculated based on semi-annual payments,4.0%rate,and date of 1/1/2022. 6 Assumption for TMV=Total SF of 177,850 at$70.28 per SF for Phase I.Phase II is not i ncluded. 7 Ci ty retai ns 5%of the TI F f or City adm i ni strati on costs. 8 Available TIF after State Fee is calculated based captured tax increments less State Auditor Fee of 0.36%. Agenda Page 36 TIF Assistance January 25,2021 Page 5 EXHIBIT B City of Albertville Tax Increment Financing District No. 18 Projected Tax Increment AVA Total Estimated Tax Increment Revenues (from tax increment generated by the district) Tax increment revenues distributed from the County $2,375,000 Interest and investment earnings $10,000 Sales/lease proceeds $0 Market value homestead credit $0 Total Estimated Tax Increment Revenues $2,385,000 Estimated Project/Financing Costs (to be paid or financed with tax increment) Project costs Land/building acquisition $0 Site improvements/preparation costs $1,794,000 Utilities $0 Other qualifying improvements $0 Administrative costs $119,000 Estimated Tax Increment Project Costs $1,913,000 Estimated financing costs Interest expense $472,000 Total Estimated Project/Financing Costs to be Paid from Tax Increment $2,385,000 Estimated Financing Total amount of bonds to be issued $1,913,000 Agenda Page 37 TIF Assistance January 25,2021 Page 6 EXHIBIT C City of Albertville, MN Advanced Volumetric Alliance Project Sources and Uses of Funds for Construction and Machinery& Equipment From Developer Application 12/31/2020 Total % of Total Sources of Funds Mortgage Loan $24,285,000 63.7% State of Minnesota Investment Fund Loan for M&E $625,000 1.6% Owner Cash/ Equity/Other Private Funds $11,750,250 30.8% Owner Cash/ Equity/Other Private Funds for TIF Note $1,450,000 3.8% Total Sources of Funds $38,110,250 100.0% Uses of Funds Property Acquisition $5,671,512 14.9% Site Improvement and Other Fees $10,904,579 28.6% New Construction $16,628,000 43.6% Machinery and Equipment (M&E) $4,906,159 12.9% Total Uses of Funds $38,110,250 100.0% Notes 1/ Source of funds includese the assignment of a tax increment financing note for public financial assistance to a bank a third party. The application indicated the company plans to mortgage (assign or monetize) the tax increment financing note. Under this assumption, the company will need to provide the up-front equity for the costs to be funded from the tax increment. The present value of the estimated tax increment financing note, as estimated by Northland, is $1,794,000, based on rate of 4.0%. All figures are preliminary for financial planning purposes and subject to change. 2/ Total estimated square feet of building to be constructed is approximately 180,000 SF assembly space and 20,000 SF of supporting office and administration. Agenda Page 38 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO.2021-006 A RESOLUTION APPROVING THE ESTABLISHMENT OF TAX INCREMENT FINANCING(ECONOMIC DEVELOPMENT) DISTRICT NO. 18 (AVA PROJECT) WITHIN MUNICIPAL DEVELOPMENT DISTRICT NO. 1; AND THE ADOPTION OF A TAX INCREMENT FINANCING PLAN RELATING THERETO. WHEREAS, the City of Albertville, Minnesota(the"City")has previously established Municipal Development District No. 1 (the "Development District")located within the City and has caused to be created a development program (the"Development Program")therefor, pursuant to Minnesota Statutes, Sections 469.124 through 469.133, as amended; and WHEREAS, the City has proposed to approve a tax increment financing plan (the "TIF Plan")for Tax Increment Financing (Economic Development) District No. 18 (AVA Project) (the "TIF District"), within the Development District, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the"TIF Act"), all as described in a plan document presented to the City Council of the City (the "City Council") on the date hereof, and WHEREAS, pursuant to Section 469.174, subdivision 2 of the TIF Act,the proposed TIF Plan and the estimates of the fiscal and economic implications of the TIF Plan were presented to the Board of Education of Independent School District No. 728 and to the Board of Commissioners of Wright County, Minnesota(the "County") at least thirty (30) days prior to the date hereof, and WHEREAS, the City Council has reviewed the contents of the TIF Plan and on this date conducted a duly noticed public hearing thereon, at which the views of all interested parties were heard. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Albertville as follows: Section 1. Findings for the Establishment of the TIF District. (a) It is found and determined that it is necessary and desirable for the sound and orderly development of the Development District, and for the protection and preservation of the public health, safety, and general welfare of the City, that the authority of the TIF Act be exercised by the City to provide financial assistance to the TIF District and the Development District. (b) It is further found and determined, and it is the reasoned opinion of the City,that the development proposed in the TIF Plan could not reasonably be expected to occur solely through private investment within the reasonably 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 expected to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the TIF Plan. Agenda Page 39 City of Albertville,MN Resolution No.2021-006 Meeting of February 1,2021 Page 2 (c) The proposed development to be financed in part through tax increment financing is necessary to permit the City to realize the full potential of the TIF District and the Development District in terms of development intensity, employment opportunities, and tax base. (d) The TIF Plan conforms to the general plan for development of the City as a whole. (e) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the TIF District and the Development District by private enterprise. (f) The TIF District is an economic development district as described in Section 469.174, subdivision 12 of the TIF Act. (g) Reasons and facts supporting all the above findings are set forth in the TIF Plan and in Exhibit A attached hereto. The City Council has also relied upon reports and recommendations of its staff and consultants, as well as the personal knowledge of members of the City Council, in reaching its conclusions regarding the TIF Plan. Section 2. Public Purpose. The adoption of the TIF Plan conforms in all respects to the requirements of the TIF Act. The TIF Plan will help facilitate development that will create new manufacturing uses, provide employment opportunities, and improve the tax base. The City expressly finds that any private benefit to be received by a private developer is incidental, as the tax increment assistance is provided solely to make the development financially feasible and thus produce the public benefits described. Therefore, the City finds that the public benefits of the TIF Plan exceed any private benefits. Section 3. Approvals, Further Proceedings. (a) The TIF Plan for the TIF District is hereby approved and adopted in substantially the form on file at City Hall. (b) The City staff are authorized and directed to file a request for certification of the TIF District with the County Auditor/Treasurer and to file a copy of the TIF Plan with the Minnesota Commissioner of Revenue and the Office of the State Auditor as required by the TIF Act. (c) The County Auditor/Treasurer is requested to certify the original net tax capacity of the TIF District, as described in the TIF Plan. (d) City staff, advisors, and legal counsel are authorized and directed to proceed with the implementation of the TIF Plan and to negotiate, draft,prepare, and present to the City Council for its consideration all further plans, resolutions, documents, and contracts necessary for this purpose. Agenda Page 40 City of Albertville,MN Resolution No.2021-006 Meeting of February 1,2021 Page 3 Adopted by the City Council of the City of Albertville this l'day of February,2021. Jillian Hendrickson,Mayor ATTEST: Kristine A. Luedke, City Clerk Agenda Page 41 EXHIBIT A The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 18 (AVA Project) (the "TIF District") as required pursuant to Minnesota Statutes, Section 469.175, Subd. 3 are as follows: 1. Finding that the TIF District is an economic development district as defined in Minnesota Statutes, Section 469.174, Subd. 12. The TIF District is a contiguous geographic area within the City's Development District No. 1, established for the purpose of financing economic development in the City through the use of tax increment. The District is in the public interest because it will facilitate the construction of an approximately 180,000 square-foot manufacturing and warehouse facility and associated office space, which will result in increased employment in the state and will preserve and enhance the tax base of the state. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of The TIF District permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the development proposed in this plan, consisting of the construction of a manufacturing facility that meets the City's objectives for economic development, is unlikely to occur without city assistance. No private entity has undertaken efforts for similar land development in this area of the City with an emphasis on job creation. The Developer has stated that without assistance, it would be impossible for the Redeveloper to locate its business in this location. The City will use tax increment only to reimburse the Developer for extraordinary costs of infrastructure improvement and site preparation on the land, plus interest. 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 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: This site is adjacent to the City's industrial park, and will require the extension of utilities and infrastructure. If the Developer was required to pay these site preparation costs without assistance, it would be unlikely to locate its facility in this location and the property would not develop in the near term. If the property did develop without assistance, the likely long-term uses would be dominated by housing or other development with little or no meaningful employment. For these reasons, the City reasonably determines that no other development of this type is anticipated on this site without substantially similar assistance being provided for the development. Therefore, the City concludes as follows: Agenda Page 42 City of Albertville,MN Resolution No.2021-006 Meeting of February 1,2021 Page 5 a. City's estimate of the amount by which the market value of the site will increase without the use of tax increment financing is $179,800, representing nominal annual appreciation of 1% (for the reasons described above) over the life of the TIF district. b. If the proposed development to be assisted with tax increment occurs in the District, the total increase in market value would be approximately $11,364,909. The increase in market value would be due primarily to new construction within the District(See Exhibit I of the TIF Plan). C. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be no more than $1,888,940 (See Exhibit I of the TIF Plan). d. Even if some development other than the proposed development were to occur, the Council Finds that no alternative would occur that would produce a market value increase greater than $9,475,969 (the amount in clause b less the amount in clause c)without tax increment assistance. 3. Finding that the TIF Plan for The TIF District conforms to the general plan for the development or redevelopment of the municipality as a whole. The City Council and Planning Commission have reviewed the TIF Plan and is working with the Developer to ensure that the proposed development, as described in the TIF Plan, conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for The TIF District will afford maximum opportunity, consistent with the sound needs of the City as a whole,for the development of Development District No. I by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, increased tax base of the State, and add a high quality development to the City. Agenda Page 43 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO.2021-007 A RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING(ECONOMIC DEVELOPMENT) DISTRICT NO. 18(AVA PROJECT) BE IT RESOLVED by the City Council (the "City Council") of the City of Albertville, Minnesota (the "City") as follows: WHEREAS, on the date hereof,the City Council approved the establishment of Tax Increment Financing (Economic Development) District No. 18 (AVA Project) (the "TIF District"), an economic development district, within Municipal Development District No. 1 (the "Development District"), pursuant to Minnesota Statutes, Sections 469.124 through 469.133, as amended, and Minnesota Statutes, Sections 469.174 through 469.1794, as amended(the "TIF Act"), and adopted a Tax Increment Financing Plan for the purpose of financing certain improvements within the Development District and TIF District; and WHEREAS,the City may incur certain costs related to the TIF District, which costs may be financed on a temporary basis from legally available funds of the City; and WHEREAS,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; and WHEREAS,the City expects to incur costs related to administrative costs of the TIF District(the"Qualified Costs")using City funds legally authorized for such purpose, and to reimburse such funds from tax increments from the TIF District when received; and WHEREAS,the City intends to designate such advances as an interfund loan in accordance with the terms of this resolution and the TIF Act. NOW,THEREFORE,BE IT RESOLVED by the City Council as follows: 1. The City hereby authorizes the advance of up to $119,000 in legally available City funds to pay the Qualified Costs,together with interest at the rate of 4%per annum (the"Interfund Loan"). Interest shall accrue on the principal amount of each advance from the date of such 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 2021, and will not be adjusted. 2. Principal and interest(the "Payments") on the Interfund Loan shall be paid semiannually on each August 1 and February 1 (each a"Payment Date"), commencing on the first Payment Date on which the City receives Available Tax Increment(defined below), or on any other dates determined by the City Administrator, through the date of last receipt of tax increment from the TIF District. Agenda Page 44 City of Albertville,MN Resolution No.2021-007 Meeting of February 1,2021 Page 2 3. Payments on the Interfund Loan are payable solely from Available Tax Increment, defined as 5% of the tax increment from the TIF District received by the City from Wright County, Minnesota in the six-month period before any Payment Date. Payments shall be applied first to accrued interest, and then to unpaid principal. Payments on the 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. 4. The principal sum and all accrued interest payable under this Interfund Loan are 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 Interfund Loan. 5. 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, 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 Interfund Loan or other costs incident thereto. 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. 6. 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. 7. 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, however, that the interest rate may not be increased above the maximum specified in Section 469.178. subdivision 7 of the TIF Act. 8. City staff and officials are hereby authorized and directed to execute any documents and take any other actions necessary to carry out the intent of this resolution. 9. This resolution shall be in full force and effect from and after its approval. Agenda Page 45 City of Albertville,MN Resolution No.2021-007 Meeting of February 1,2021 Page 3 Adopted by the City Council of the City of Albertville this l'day of February,2021. Jillian Hendrickson,Mayor ATTEST: Kristine A. Luedke, City Clerk Agenda Page 46 �lbcrtvillc Small Town Wag.ffig ON Lft. Mayor and Council Request for Action February 1, 2021 SUBJECT: PUBLIC HEARING-KONZ CROSSING COMMERCIAL DEVELOPMENT RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: adopt Resolution No. 2021-008 approving the Konz Crossing requests for a minor subdivision, easement vacation based on the surveys dated December 16, 2020; site and building plans and conditional use permit for shared parking across two lots and a variance from the City's B-2A parking lot setback based on the development plans dated December 23, 2020 and building plans dated December 17, 2020. BACKGROUND: Andy and Christine Konz have requested the approval of several applications associated with the development of two sites with a proposed 15,115 square foot retail store and a future building of 13,500 square feet located at the northwest quadrant of the 57th Street NE and Lachman Ave NE, intersection. The lots were previously platted as Labeaux Station. To facilitate the development proposal, approval of the following development applications have been formally requested: 1. Minor Subdivision -Lot Line Adjustment 2. Easement Vacation 3. Variance—From front yard parking setback. 4. Site and Building Plan Review. A review of the site and building plans is required for new commercial construction. The applicants have proposed a 15,115 square foot building to be devoted to retail commercial. 5 Conditional Use Permit, to allow for shared off-street parking between two separate lots. KEY ISSUES: • To allow for the minor subdivision the applicant is requesting that an existing drainage and utility easement on the current shared lot be vacated and reestablished with the new subdivision along the adjusted lot line. • The new lots within the proposed minor subdivision meet the B-2A district lot area and width requirements. • The proposed buildings meet the B-2A district setbacks. • The proposed buildings meet the B-2A district architectural standards. • The applicant must provide a truck movement template that demonstrates how delivery trucks/garbage trucks will access, egress and move around the buildings and provide for deliveries to each of the tenant bays. Agenda Page 47 Mayor and Council Request for Action—February 1, 2021 Konz Crossing Commercial Development Page 2 of 2 • The site plan must be revised to demonstrate a parking count that meets the City Standards. • The Planning Commission recommended approval of the parking lot setback variance finding that the proposed setback is consistent with the commercial properties south of 57th Street. • The shared parking between the two lots requires the applicant to establish cross access and parking easements over both lots; which must be recorded with the minor subdivision. • The location and orientation of the proposed buildings will result in the north building having an obstructed view of the tenant store fronts. POLICY/PRACTICES CONSIDERATIONS: The Planning Commission held a public hearing and considered the development applications at their January 12, 2021 meeting and recommend approval of each of the development requests with the conditions outlined in the attached resolution. FINANCIAL CONSIDERATIONS: There are no significant financial issues related to the site and building plan. The applicant shall be responsible for all costs associated with the development of the approved site and building plans. LEGAL CONSIDERATIONS: In accordance with Council procedures, the Mayor and Council have the authority to approve the easement vacation, subdivision, site and building plans, conditional use permit and variance by a majority vote of the City Council. Department/Responsible Person: Alan Brixius, City Planner Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: January 6, 2021 Planning Report and exhibits Resolution No. 2021-008 Agenda Page 48 NORTHWEST ASSOCIATED CONSULTANTS , INC, 4150 Olson Memorial Highway, Ste, 320, Golden Valley, MN 5542 Telephone: 763.957.1100 Website: www.nacplanning.com PLANNING REPORT TO: Adam Nafstad FROM: Alan Brixius DATE: January 6, 2020 RE: Albertville — Konz Crossing • Minor Subdivision and Consolidation • Vacation of Easement • Variance • Site and Building Plan Review • Conditional Use Permit • Variance FILE: 163.06 - 20.08 BACKGROUND Andy & Christine Konz have requested the approval of several applications associated with the proposed construction of two sites a proposed 15,115 square foot retail store and a future building of 13,500 square feet on upon approximately 2.8-acre site located at 57th St NE Lachman Ave NE, east of Labeaux Ave. The parcel is located at the proposed location of Labeaux Station. To facilitate the development proposal, approval of the following development applications have been formally requested: 1. Minor Subdivision - Lot Line Adjustment 2. Easement Vacation 3. Variance — From front yard parking setback. 4. Site and Building Plan Review. A review of the site and building plans is required for new commercial construction. The applicants have proposed a 15,115 square foot building to be devoted to retail commercial. 5 Conditional Use Permits Agenda Page 49 A. To provide required off-street parking facilities by joint use. Attachments: Exhibit A: Project Narrative Exhibit B: Vacation of Drainage & Utility Easement Exhibit C: Certificate of Survey Exhibit D: Aerial Image Exhibit E: Site Plan Exhibit F: Grading & Drainage Plan Exhibit G: Utility Plan Exhibit H: Landscape Plan Exhibit I: Lighting Plan Exhibit J: Architecture Site Plan Exhibit L: Floor Plan Exhibit M: Exterior Elevations Exhibit N: Trash Enclosure & Signage Exhibit O: Labeaux Station ISSUES AND ANALYSIS MINOR SUBDIVISION. The applicant is requesting a minor subdivision for a lot line adjustment for 1 & Lot 2, Block 1 of Labeaux Station. The owner maintains ownership of both parcels and adjusts the parcel boundary to move forward with the development of the south lot. Section 11-3-1. C of the Subdivision Ordinance states that in the case of a request to divide a portion of a lot where the division is to permit adding a parcel of land to an abutting lot so that no additional lots are created. Both new lots conform to zoning ordinance lot size minimum standards may be reviewed as a Minor Subdivision. Some drainage and utility easements exist on the parcel, and the lot to be divided will no longer be necessary after the minor subdivision is completed. These easements will be vacated, and a new drainage and utility easement will be created. The easements will need to be evaluated by the City Engineer review the appearance, size and location of the 132-A zoned easements. Subdivision Design Standards. The proposed minor subdivision must be consistent with the design standards outlined in the City's Subdivision Ordinance and the 132-A Special Business District lot area and width requirements. The following outlines these provisions and the proposed subdivisions compliance with the required design criteria: 3 Agenda Page 50 Lot Area/Lot Width. The minimum lot area, width, and depth shall not be less than that established by the City Zoning Ordinance in effect when adopting the final plat. Comment: Lots in the 132-A District are required to have a lot area of at least 1 acre and a Lot Width of 150 feet. Upon approval of the requested lot division, both of the Lots will be meet the lot area and width requirements. Lot Frontage: Every lot must have the minimum frontage on a City approved public street other than an alley as required in the City Zoning Ordinance or onto a City approved private drive. Comment: Both of the lots will have frontage to a public street. After the proposed lot division, both parcels will continue to meet this requirement. Setback Lines: Setback or building lines shall be shown on all lots and shall not be less than the setback required by the city zoning ordinance, as may be amended. Comment: Both of the lots will meet the setback requirements outlined for parcels in the 132-A District. Easements. According to Section 11-7-11 C, All easements shall be dedicated for the required use and shall be shown. Section 11-7-11 A. 1 Easements for drainage and utilities of at least ten feet (10') wide shall be provided on all lot lines. In the case of side or rear lot lines, these may be centered on the lot line. The submitted "Certificate of Survey" provides a 10-foot drainage and utility easement running along all property lines for both the proposed Lots. The applicants have provided legal descriptions of the existing parcel, the proposed Parcel A and Parcel B, and all drainage and utility easement areas. The submitted Exhibit B provides the location of the existing drainage and utility easement, which will be vacated due to the proposed lot split. The submitted "Certificate of Survey" indicated that a new drainage and utility easement should run down the center of the property and be located in both lots. The subdivision and easement vacation shall be subject to the City Engineer approval of easements. 4 Agenda Page 51 VARIANCE. The applicants have requested a variance from the front yard parking setback of 20 feet required in the B-2A Zoning district. Section 500.1 .B of the Albertville Zoning Ordinance outlines the following criteria for granting a variance: 1 . Variances shall only be permitted when they are in harmony with the general purpose and intent of the City Code and consistent with the Comprehensive Plan. 2. Variances may only be permitted when the applicant establishes that there are non- economic practical difficulties in complying with the Zoning Ordinance, meaning the property owner proposes to use the lot or parcel in a reasonable manner not permitted by the Zoning code 3. The plight of the property owner must be due to circumstances that are unique to the lot or parcel and is not created by the property owner. 4. The variance must not alter the essential character of the locality including all zoning district and overlay district provisions. 5. The request is not a use variance. 6. The variance requested is the minimum variance necessary to accomplish the use of the property in a reasonable manner. Finding: The property owner's plight is not due to anything unique to the lot or parcel and that the variance is needed due to the property owner's building size and site design create the need for the variance. There is no physical practical difficulty with the lot. The site plan shows area west of the building that may allow the building to be shifter west to provided parking setback. This shift of the building by 10 feet would allow for the parking to be redesigned to meet the parking requirements of 20 feet from Lachman Avenue. Based on our review the site plan variance does not meet the criteria for variance approval. Site and Building Plan Review Zoning. The subject site is zoned B2-A Special Business District. Within the B2-A district, retail stores are an allowed use. Site Access. The subject sites is proposed to be accessed from the east and west via four points of access, two along the Shared Access Road to the west and two along Lachman Ave NE to the east. The northerly access point on the Shared Access Road and the access point on Lachmann Avenue measure 33 feet in width, while the southern access on the Shared Access Road measures 24 feet. According to the 5 Agenda Page 52 Ordinance, no curb cut access may be greater than 24 feet in unless approved by the City Engineer. Thus, the acceptability of the northern two access points should be subject to review and approval by the City Engineer. Setbacks. As shown below, the building proposed upon Lot 1, Block 1, meets applicable B-2A District setback requirements except for the parking front yard setback, which the applicants have applied for a variance. Required Proposed Compliant Lot Area 1 Acre 2.8 Acres Yes Lot Width 150 feet 310 feet Yes Building Setbacks: Front — East 35 feet 82 feet Yes Side — North 10 feet 44 feet Yes Side — South 10 feet 82 feet Yes Rear—West 20 feet 40 feet Yes Parking Setbacks: Front — East 20 feet 10 feet No* Side — North 5 feet 20 feet Yes Side — South 5 feet 20 feet Yes Rear—West 10 feet 40 feet Yes Off-Street Parking. The applicant has applied for a conditional use permit to provide required off-street parking facilities by joint use. As such, the parking requirements, as shown below, are calculated per the square footage of both buildings. As shown below, a total of 130 off-street parking stalls are required of the two proposed retail buildings. Use Ratio Required Stalls Retail Proposed Building 69 (15,320 gsf) One stall per 200 (13,788 nsf) square feet of retail Retail Future Building area (nsf) (13,500 gsf) 61 (12,150 nsf) 130 The submitted site plan illustrates 126 stalls upon the site, not meeting the indicated 130 parking stalls. The site indicates 92 parking stalls for the south building on lot 1. The site plan illustrates to build 34 stalls on the future north building, In conformance with the American Disability Act (ADA) requirements, a total of five 6 Agenda Page 53 parking stalls are required, and the applicant is providing six for persons with disabilities. Proposed parking stalls measure 20 feet in depth and 9 feet in width and meet minimum dimensional requirements of the Ordinance. Further, parking area drive aisles appropriately measure 24 feet in width. Impervious Surfacing. Within the B2-A district, the total impervious surface is limited to 80%. The proposed building and parking lot meet the requirements and are below the 80% impervious surface limit. Maximum Building Height. The maximum building height in the B2-A district is 35 feet. The submitted plans show a building height of less than 35 feet. Building Materials. The proposed building is to be made up of a precast concrete structure and cultured stone, with steel and wood tone siding to add visual interest. The B2-A district does not allow steel siding as an acceptable material per the district's architectural standards: Section 4350.9 Architectural Standards: All building exterior wall finishes must be constructed of materials containing only brick, dimension stone, glass, stucco and its replicas, wood, rock faced block or aggregate precast concrete panels. Section 1100.4 of the Albertville code allow the City council to consider the use of other materials if they are determined acceptable. The planning commission is asked to review the proposed building elevation and provide a recommendations as to whether the building design is appropriate within the B2-A district. Loading Areas. By code, commercial buildings over 10,000 square feet is required to have two loading areas. The applicant's proposal doesn't show a loading area in its design. Considering this is a multiple tenant building the applicant shall be required to submit a plan indicating truck maneuvering areas and off loading and circulation. As a condition of site and building plan approval, the intent of loading activities for the building should be clarified by the applicant. Site Lighting. The applicants have submitted a lighting plan. The lighting plan appears meet the requirements for site lighting. The applicants' cut sheets indicate the light fixtures are a 90-degree cut-off and the light levels at the property line are below the City's maximum standard of 0.4-foot candles. Landscaping. As shown on the submitted landscape plan, various plantings are proposed along the side (south) and front (east) side of the site. The landscaping is intended to visually enhance the parking area while also serving the site as a screening to 57th Street NE and Lachman Avenue NE. 7 Agenda Page 54 The landscape plan calls for 3 varieties of deciduous trees, including one overstory shade, three and 14 ornamental trees (15 total), and four varieties of shrubs (59 total) on the site. In addition, potted reed grasses are also proposed (34 pots). The landscape plan is considered well-conceived, and all plant materials sizes have been to meet the City minimum standards. Trash Enclosure. A trash/recycling area is identified on the site plan on the northern portion of the building. The applicant has provided plans which indicate an enclosed trash enclosure with an exterior wall. The applicant does not indicate the material utilized in the construction of the exterior wall. As a condition of site and building plan approval, the applicant should address details related to materials utilized in the exterior wall. Signs. The applicant has provided a sign plan for the site illustrating the following: Sign Number Size Tenant A 1 88 Square Feet Tenant B 1 28 Square Feet Tenant C 1 24 Square Feet Tenant D 1 24 Square Feet Tenant E 1 24 Square Feet The sign ordinance allows for each of the tenants to have a wall sign as long as the signage doesn't exceed 15% of the building facade. The proposed signs meet the requirements for the building facade limitation. The plan does not indicate construction materials and illumination. The site plan indicates that a monument sign will be placed on the southeastern portion of the lot. The height and the size of the sign is in alignment with the zoning district standards. All proposed signs shall be subject to the issuance of a sign permit. Future Development. The submitted site plan illustrates a "future building" area located north of the proposed building. To be understood is that any approvals granted for the submitted applications should in no way be construed as an approval of the "future building" area as shown on the site plan. Any future development upon the site will minimally be subject to subdivision and site and building plan approvals. Grading, Drainage and Utilities. Issues related to grading, drainage and utilities should be subject to comment and recommendation by the City Engineer. 8 Agenda Page 55 Conditional Use Permits The applicants have requested the approval of a conditional use permit for joint parking between the two lots. A. . Joint Parking Facilities CUP. Section 1200.10.E of the Zoning Ordinance establishes a specific set of conditions applicable to joint facilities. The following is a listing of the various conditions followed by a staff comment: 1. The building or use for which application is being made to utilize the off street parking facilities provided by another building or use shall be located within three hundred feet (300') of such parking facilities. Comment: The purposed location of the two buildings utilizing the joint parking facilities is proposed to be within three hundred feet of the parking facilities. 2. Documentation as specified by the city shall be submitted demonstrating that there is no substantial conflict in the principal operating hours of the two (2) buildings or uses (for which joint use of off street parking facilities is proposed). Comment: The intended use of the two buildings is for retail sales. No substantial conflict is anticipated. 3. A properly drawn legal instrument, executed by the parties concerned for joint use of off street parking facilities, duly approved as to form and manner of execution by the city attorney, shall be filed with the city administrator and recorded with the Wright County recorder. Such a document shall include all provisions regarding any access or use easements related to the properties and parking areas in question. Comment: The applicant will need to provide an easement for shared access and parking between the two lots. A maintenance agreement between the two lots for shared parking and access shall be submitted or review and approval of the City Attorney and recorded with the County. Building Location Analysis Planning Staff has discussed with the applicant that the layout of two proposed buildings. The north building offers no visibility to its store fronts the lack of building exposure to 57th Street and Lachmann Avenue will make leasing and tenet retention difficult. An example of this is the east outlet mall. While proposed design maximizes the building floor space, the original LeBeaux Station layout was only slightly smaller floor area but provided much greater exposure to all the building fronts from 57th Street and Albertville Crossing shopping center to the south. 9 Agenda Page 56 We can anticipate the north building having future problems for the tenant, land lord, and the City with the need for action to overcome the site design issues. . While planning staff can't mandate a change in site design if the application complies with all zoning standards. We strongly suggest an alternative site layout that will open sight line to both buildings from the public streets. RECOMMENDATIONS Based on the preceding review, planning staff recommends the following: Minor Subdivision and Consolidation. Approval of the requested Minor Subdivision and Consolidation lot line division, creating the new adjusted boundaries to Lots 1 & 2, Block 1 of Labeaux Station. 1 . City Council approval of the easement vacation. 2. The lot line adjustment is approved by resolution and forwarded to Wright County for recording. 3. Cross parking and access easements along with a maintenance agree for shared amenities be approved by the City Attorney and record along with the subdivision. Variance Request. . Based upon our review the requested parking lot setback variance does not meet the criteria for variance. We recommend denial of the variance and require the following site plan changes. 1. The applicant will revise the building layout be moved to the west 10 feet and the applicant submit a redesigned plan layout indicating adherence to the parking setback from Lachman Avenue. Site and Building Plans. Approval of site and building plans subject to the following conditions: 1. The City approve the requested Minor Subdivision, conditional use permit, and approve the variance alternative. 2. The proposed building layout be moved to the west 10 feet and the applicant will submit a redesigned plan layout indicating adherence to the parking setback from Lachman Avenue. 10 Agenda Page 57 3. The planning Commision review the building exterior materials and find them acceptable within the B-2 A district or require Applicant to revise the building exterior material to meet the B-2A standards.. 4. Applicant shall provide building plans that clarify building materials for the trash enclosure. 5. Due to the limited amount of available truck maneuvering space, the intent of loading activities for the building shall be clarified by the applicant. 6. A sign plan shall be submitted which specifies sign locations (freestanding and wall signs), sign height, sign area, construction materials and illumination. All proposed signs shall be subject to the issuance of a sign permit. 7. The applicant acknowledge that any approvals granted for the submitted applications shall in no way be construed as an approval of the "future building" as depicted on the site plan. Any future development upon the site shall minimally be subject to subdivision and site and building plan approvals. 8. Issues related to grading, drainage and utilities shall be subject to comment and recommendation by the City Engineer. 9. Comments of other City Staff. Conditional Use Permit for Joint Parking Facilities. Approval of a conditional use permit to allow joint parking facilities with the future expansion to the north site subject to the following conditions: 1. The City approves the requested Minor Subdivision, Site and Building Plan, and approval of the variance alternative. 2. Applicants submits revised parking design that meet the parking yard setback for the front yard. 3. Applicant shall submit a parking lot plan that meets the required parking stalls of 130. The current plan indicates 125 stalls and will need to make the required 130 stalls for CUP. 4. The applicant will provide a shared access and parking easement outlining the CUP and shared parking maintenance agreement to be approved by the City Attorney and recorded over the two lots and filed with the County. 11 Agenda Page 58 5. Comments of other City Staff. CC: Adam Nafstad Scott Dalke Maeghan Becker Mike Couri Andrew & Christine Konz 12 Agenda Page 59 Project Narrative This a planned commercial development site for the City of Albertville. We do not foresee any impacts on properties nearby. Konz crossing is going to be a wonderful space to house local business that continue to help grow and support our wonderful community. We love being part of this community and believe that if you were to grant us the ability to grow,we will be able to continue to serve and give back to this community we love. There is no existing use on the site. Planned uses for the site if for our current business(Health Source &Tree of Life) to relocate here, continue to grow, and offer property management to multiple other tenants in the building. Exhibit A Agenda Page 60 I UTILITY EASEMENT I T� I I I I LOT 2 NORTH LINE OF THE SOUTH 100.00 FEET OF LOT 2 — — — — — ' I I rTT Tl/TT/7Tl/Tl/7l� I EXISTING EAST-WEST DRAINAGE& / UTILITY EASEMENT TO BE VACATED- - o . o o I w � Lo � co 0) S88'46'29"W (P) ( cV co 0) ``'S89° 20' 07"W z - 308.76 �` ---- o ----SOUTH LINE OF THE NORTH - EXISTING T WIDE ; I o 10.0o FEET OF LOT 1 EAST-WEST DRAINAGE&UTILITY I A EASEMENT TO BE VACATED xs A Ldz � aW w U) N 0') ��OG o w �' c� } m 00 z_ I_- ° N ~ J O � z x I w ----EAST LINE OF THE DRAINAGE& UTILITY LINE PER THE PLAT OF ILABEAUX STATION I LOT 1 I -r EXISTING DRAINAGE& O UTILITY EASEMENT O Cb o �0, ro - - - - - - - - - - - - - - - - - - - - - - - - - - - - - i ce ` S8846'29"W P ' S890 20' 07"W ---SW CORNER OF 308.03 N LOT 1,BLOCK 1 57TH STREET N.E. LEGBL. E THIS DESCRIPTION IS INTENDED TO VACATE THE EXISTING EAST-WEST DRAINAGE ANC UTILITY EASEMENT DEFINED AND DEDICATED PER THE PLAT OF LABEAUX STATION, W COUNTY, MINNESOTA, LYING WITHIN THE SOUTH 100.00 FEET OF LOT $ AND NORTI 10.00 FEET OF LOT Z BOTH BEING IN BLOCK 1, OF SAID LABEAUX STATION, AND EASTERLY OF THE FOLLOWING DESCRIBED LINE.• 0 r� 0 w N � co N c PARCEL B ti U � P.O.B.FOR PROPOSED DRAINAGE&UTILITY EASEMENT- I , —27�� JG ` w , m�\ n PROPOSED DRAINAGE&UTILITY EASEMENT-- N c co N89° 33' 35"E 308.88 --SOUTH LINE OF PARCEL B z N89°33'35"E ' '�---NORTH LINE OF PARCEL A —/11pJ ' 10.00 _— — 1��N89°33'35`E�—237�80 — —— —— —— —�1—/ 1—/ — 49_44 ` `1 CD- ,----SOUTH LINE OF LOT I S89°20'07"W 308.76 ro / ° M M <` S88'46'29"W (P) Cry S68.2p pp CD --NORTH LINE OF LOT] Ig, Z t 33 F , z O ww Q Qz� Z w X w Q oU>m J u- PARCEL A W�J a , , , ; co , EXISTING DRAINAGE& UTILITY EASEMENT PER PLAT OF LABEAUX STATIONS; 308.03 S89° 20' 07"W N PROPOSED PARCEL A: S88'46'29"W (P) LOT 1, AND PART OF LOT 2, ALL IN BLOCK 1, LABEAUX STATION, WRIGHT COUNTY, MINNESOTA, LYING SOUTH OF THE FOLLOWING DESCRIBED LIN BEGINNING AT A POINT ON THE WEST LINE OF SAID LOT 2, SAID POINT BEING 178.38 FEET-SOUTHERLY FROM THE NORTHWEST CORNER THEREOI POINT ON THE EAST LINE OF SAID LOT 2, SAID POINT BEING 176.11 FEET SOUTHERLY FROM THE NORTHEAST CORNER THEREOF, AND SAID LINE TERMINATING. 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I LL m z m vi i cn W 1 oz g ea I °. g m c� o P F ( c r �•Y�y O 3 1 i; s-'k7 di ,� � � � O J d W O t �aaat 3 N I 4,h} li sat l SJ a� + ti y h LL O EXTERIOR FINISH SELECTIONS STONE I COMPOSITE WOODTONE SIDING COMPOSITE SIDING ------------- Cultured Stone LP Woodtone Siding - Accent LP Siding - Field Kunz Crossing AIk Urt l le fi. bn� --sate I Agenda Page 75 EXHIBIT CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2021-008 RESOLUTION APPROVING A REQUEST FOR A MINOR SUBDIVISION, EASEMENT VACATION, SITE AND BUILDING PLAN REVIEW, CONDITIONAL USE PERMIT FOR SHARED PARKING AND A PARKING LOT SETBACK VARIANCE FOR THE CONSTRUCTION TWO COMMERCIAL BUILDINGS LOCATED ON LOTS 1 AND 2 BLOCK 1 LABEAUX STATION ADDITION WITHIN THE CITY OF ALBERTVILLE WHEREAS,Andy and Christine Konz have filed an application and submitted plans for the development of commercial buildings on Lots 1 and 2 LeBeaux Station. Said site is located at the Northwest quadrant of Lachman Avenue and 571h Street intersection. To facilitate the development proposal, the following development applications have been requested: 1. Minor Subdivision/Lot line adjustment. 2. Drainage and Utility Easement Vacation. 3. Site and Building Plan Review. 4. Conditional Use Permits for shared parking across two lots. 5. Variance from the B-2A parking lot setbacks. WHEREAS, City Staff has reviewed submitted plans and prepared a planning report dated January 6, 2021; and WHEREAS,the Albertville Planning and Zoning Commission met and held a public hearing on January 12, 2021, to consider the application for a minor subdivision, easement vacation, site and building plan, conditional use permit for shared parking over two lots and a variance from the B-2A parking lot setback requirements; and WHEREAS,upon considering the application materials, January 6, 2021 the planning report and public testimony the Planning Commission closed the public hearing and recommended that the City Council approve the requested minor subdivision,the easement vacation, site and building plans, conditional use permit for shared parking over two lots and the variance from B-2A parking lot setback requirements based on the findings and conditions of the January 6, 2021 planning report; and WHEREAS, the Albertville City Council met on February 1, 2021 to consider the Konz's development applications; and Agenda Page 76 City of Albertville,MN Resolution No.2021-008 Meeting of February 1,2021 Page 2 WHEREAS,the Albertville City Council has received the application materials including the minor subdivision, Easement vacation, site plans and building plan set, the City Staff review documents; the Planning Commission recommendation; and agrees with the findings and recommendation of the Planning Commission; and WHEREAS, the Albertville City Council has held a public hearing to solicit public comments regarding the vacation of a public drainage and utility easement associated with the requested minor subdivision. NOW,THEREFORE BE IT RESOLVED,that the City Council of Albertville, Minnesota hereby approves the Konz's requests for a minor subdivision, easement vacation based on the surveys dated December 16, 2020; site and building plans and conditional use permit for shared parking across two lots and a variance from the City's B-2A parking lot setback requirements based on the plan set dated December 23, 2020 and building plans dated December 17, 2020 for the property legally described as Lots 1 and 2 Block 1 LaBeaux Station Addition with the following conditions. Minor Subdivision/Easement Vacation: The minor subdivision and easement vacation based on the surveys dated December 16,2020 is approved with the following conditions. 1. The City Council approves the Easement vacation and the establishment of new easements. All drainage and utility plans shall be approved by the City Engineer. 2. The minor subdivision is approved by resolution and forwarded to Wright County for recording. 3. Cross parking and access easements along with a maintenance agreement for shared amenities is approved by the City Attorney and record along with the subdivision. Site and Building plans are approved for the southern lot(Parcel A); based on the Civil Engineering plans, Site plan, and landscape plan dated December 23,2020, and the Building floor plans,Building elevations dated December 17,2020. Said approval is subject to the following conditions being addressed with the submission of revised plans. 1. The City approval of the requested Minor Subdivision, conditional use permit, and parking lot setback variance. 2. Exterior building materials meet the B-2A district standards. 3. Applicant shall provide building plans that identifies building materials for the trash enclosure. 4. Applicant shall provide a truck turning template on the site plan showing truck maneuvering through the site, truck access and egress, location for deliveries and off- loading to the various tenant bays. Agenda Page 77 City of Albertville,MN Resolution No.2021-008 Meeting of February 1,2021 Page 3 5. A sign plan shall be submitted which specifies sign locations (freestanding and wall signs), sign height, sign area, construction materials and illumination. All proposed signs shall be subject to the issuance of a sign permit. 6. The applicant acknowledge that any approvals granted for the submitted applications shall in no way be construed as an approval of the "future building" as depicted on the site plan. Any future development upon the site shall minimally be subject site and building plan approvals. 7. The grading, drainage and utilities plan shall be subject to the review and approval of the City Engineer. Conditional Use Permit for shared parking across two lots.Approval of a conditional use permit to allow shared parking across two lots per the site plan dated December 23,2020 subject to the following conditions: 1. City approval of the requested Minor Subdivision, Site and Building Plan, and variance from the B-2A Parking Lot Setbacks/ 2. Applicant shall submit a revised site plan that meets the required parking stalls of 130. The current plan indicates 125 stalls and will need to make the required 130 stalls for CUP approval. 3. Applicant shall provide a truck turning template showing truck maneuvering through the site, truck access and egress, location for deliveries and off-loading to the various tenant bays. 4. The applicant will provide a shared access and parking easement and a shared parking maintenance agreement to be approved by the City Attorney and recorded over the two lots with the recording of the minor subdivision with the County. Variance from the B-2A parking lot setback is approved finding that the proposed 10 foot parking lot setback is consistent with parking lot setbacks south of 57" Street. Adopted by the City Council of the City of Albertville this lst day of February 2021. Jillian Hendrickson, Mayor ATTEST: Kristine A. Luedke, City Clerk Agenda Page 78 �lbcrtvillc Mayor and Council Request for Action February 1, 2021 SUBJECT: PUBLIC HEARING-FERN COMPANIES INDUSTRIAL DEVELOPMENT APPLICATIONS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: 1. Adopt Resolution No. 2021-009 and Ordinance No. 2021-03 addressing the following development applications for Hunter Land Company/Fehn Companies to allow for the construction of a corporate headquarters for Fehn Companies in the City of Albertville. • Zoning Map amendment to change the zoning from A-1 Agricultural/Rural District to I-2 General industrial. • Preliminary and Final Plat, subdividing the subject site into one Lot, and outlots and dedication of rights-of way Marlowe Avenue. • Site and Building plan approval for the construction of a development that includes an 8119 sq. ft. corporate office building, 13,000 sq. ft. shop for the repair and maintenance of equipment and vehicles, 5800 sq. ft. storage. The plan includes options to expand the shop/storage building in future phase. • Approval of conditional use permits for outdoor storage of stockpiles of excavation/fill materials. Part of their operation will include on-site crushing of the stock pile materials twice a year. • Variance from the City's required paving standard for a portion of the parking, staging and stock pile storage area. 2. Approve Fehn Industrial Park Development Agreement subject to City Attorney's review. BACKGROUND: Hunter Land Company on behalf of Fehn Companies has requested the approval of a number of applications associated with the proposed construction of a new corporate headquarters for Fehn Companies. This development includes an 8,119 sq. ft. corporate office building, 13,000 sq. ft. shop for the repair and maintenance of equipment and vehicles, and 5800 sq. ft. of storage. The plan includes options to expand the shop/storage building in future phase. The business is also seeking a conditional use permit to allow the outdoor storage of stockpiles of excavation/fill materials. Part of their operation will include on-site crushing of the stock pile materials twice a year. The subject site encompasses 32.17 acres of land. The plat proposes to create a 14.5 acres site for the Fehn development; along with a 17.7 acre outlot which is intended to accommodate future development. To facilitate the development proposal, approval of the following development applications have been formally requested: Agenda Page 79 Mayor and Council Request for Action—February 1, 2021 Fehn Companies Development Applications Page 2 of 3 1. Zoning Map Amendment. To change the zoning of the subject 32.17 acre property from A-1 Agricultural/Rural District to I-2, General Industrial District. 2. Preliminary Plat/Final Plat. To create a buildable lot and outlots. 3. Site and Building Plan Review. Review of site and building plans is required for new industrial construction. 4. Conditional Use Permit. To allow accessory outdoor storage upon east side of the 14.5 acre lot for material stockpiling for Fehn Companies. 5. Variance. A variance from the City's requirement for the pavement of parking lots. City Staff has reviewed the aforementioned application and submission materials and prepared the January 7, 2021 planning report. The Albertville Planning Commission held a public hearing to consider the development application and staff reports on January 12, 2021. Upon conclusion of the public hearing, the planning commission recommended approval of each of the Development applications with the conditions outlined in the January 7, 2021 planning report. KEY ISSUES: • The proposed zoning map amendment to change the site's zoning from A-1 district to I- 2 District is consistent with the Albertville Proposed Land use map and the goals and policies of the Albertville 2030 Vision Study. • The proposed industrial uses are similar to the industrial land uses located north of the site. • The subject site offers convenient access to major roadways which can accommodate industrial users and related truck traffic. • Traffic generated by future industrial uses will be within the capability of existing and future streets which serve the area. • The proposed land uses will not overburden City utilities and sewer. • The proposed land use will contribute to the City tax base and will generate significant fees for the City utility and park funds. • The proposed lot exceeds the lot area and width standards of the I-2 zoning district. • The proposed buildings meet all the required I-2 district setbacks. • The proposed buildings meet the I-2 district architectural standards. • The required parking areas around the office and shop will be constructed meet all city design standards. • The applicant has requested a variance from the paving requirement for a portion of the employee parking east of the shop, the site staging area and the stock pile areas. Due to Agenda Page 80 Mayor and Council Request for Action—February 1, 2021 Fehn Companies Development Applications Page 3 of 3 the operations and equipment inherent with the proposed uses on the site; the Planning Commission recommended approval of the requested variance with conditions. • Concerns exist with the stockpiling and crushing of materials on the site related to noise, dust and vibration. The Planning Commission has recommended approval of the outdoor storage (stock piles) conditional use permits with conditions that are needed to mitigate nuisance issues. • The applicant shall provide a lighting,photometric plan, signage plan, the location detailed elevation and list of materials for the trash enclosure and sign plan for the site for city review and approval prior to building permit. • With the submission and approval of a final plat the applicant shall enter into a development agreement with the City. POLICY/PRACTICES CONSIDERATIONS: Any changes in zoning are policy decision for the City Council. The Albertville Planning Commission held a public hearing and agreed with the Zoning Map Amendment Findings outlined in the January 7, 2021 Planning Report and recommended that the City Council approve the change in zoning to I-2 General Industrial District. With regard to the applications for preliminary and final plat, site and building plan, variance and conditional use permit; the Planning Commission recommended approval of each application request with the conditions outlined in the January 7, 2021 Planning Report. These conditions are outlined in the attached resolution. FINANCIAL CONSIDERATIONS: The Applicant is also requesting City financial assistance in the form of Tax Increment Financing. This is being investigated and will be presented in greater detail as a separate Council agenda item at a future meeting. LEGAL CONSIDERATIONS: The change in zoning is a policy decision of the City Council. If the project is approved, the Applicant will be required to enter into a development contract prepared by the City Attorney that outlines the required development, development schedule, on and off site improvements and the securities and financing of the required improvements. Department/Responsible Person: Alan Brixius, City Planner Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: January 7, 2021 Planning Report and exhibits Resolution No. 2021-009 Ordinance No. 2021-03 Various Plans: Office Plans, Shop Plans, Color Site Plan and View Shed Analysis Fehn Industrial Park Development Agreement Stormwater Management Agreement Agenda Page 81 NORTHWEST ASSOCIATED CONSULTANTS , INC, 4150 Olson Memorial Highway, Ste, 320, Golden Valley, MN 5542 Telephone: 763.957.1100 Website: www.nacplanning.com PLANNING REPORT TO: Adam Nafstad FROM: Alan Brixius DATE: January 7, 2021 RE: Albertville — Hunter Land Company / Fehn Companies • Rezoning • Preliminary Plat / Final Plat • Site and Building Plan Review • Conditional Use Permits- Outdoor Storage • Variance from parking lot paving requirements. FILE: 163.06 - 20.09 BACKGROUND Hunter Land Company on behalf of Fehn Companies has requested the approval of a number of applications associated with the proposed construction of a new corporate headquarters for Fehn Companies. This development includes an 8119 sq. ft. corporate office building, 13,000 sq. ft. shop for the repair and maintenance of equipment and vehicles, 5800 sq. ft. storage. The plan includes options to expand the shop / storage building in future phase. The business is also seeking a conditional use permit to allow the outdoor storage of stockpiles of excavation /fill materials. Part of their operation will include on-site crushing of the stock pile materials twice a year. The subject site encompasses 32.17acres of land. The plat proposes to create a 14.5 acres site for the Fehn development; along with a 17.7 acre outlot which is intended to accommodate future development. To facilitate the development proposal, approval of the following development applications have been formally requested: 1 . Zoning Map Amendment. To change the zoning of the subject 32.17acre property from A-1 Agricultural / Rural District to 1-2, General Industrial District. 2. Preliminary Plat / Final Plat. To create a buildable lot and one outlot. (). Agenda Page 82 3. Site and Building Plan Review. Review of site and building plans is required for new industrial construction. 4. Conditional Use Permit. To allow accessory outdoor storage upon east side of the 14.5 Acre lot for Fehn 5. Variance. A variance from the City's requirement for the pavement of parking lots. Attachments: Exhibit A: Site location map Exhibit B: Zoning map Exhibit C: Preliminary plat / Overall site plan Exhibit D Final Plat Exhibit E: Enlarged Site plan Exhibit F: Grading Plan Exhibit G: Ditch plan Exhibit H: Utility Plan Exhibit I: Storm Sewer plan Exhibit j: Landscape Plan Exhibit K: View Shed Exhibit L: Office Building Perspective Exhibit M: Office Building Floor Plans Exhibit P: Shop Building perspective Exhibit Q: Shop Building Floor Plans ISSUES AND ANALYSIS Zoning Map Amendments Section 300.1 F of the Albertville Zoning Code outlines the following criteria for evaluating a Plan amendment or a zoning change: 1. The proposed action has been considered in relation to the specific policies and provisions of and has been found to be consistent with the official City Comprehensive Plan. Comment: The site in question has be guided to industrial land uses since the original creation of the Barthel's Industrial Park in the 1980s and is guided for industrial land uses in the Albertville 2030 Vision Study. The Vision Study Economic Development recommendations include: Agenda Page 83 "Define the City's land use goals for commercial and Industrial areas related to: • Location, land supply, variable lot size. • Access. Travel patterns. • Zoning: types of use, site design and architectural quality. • Utility availability and capacity." The requested change in zoning from A-1 to 1-2 is consistent with Albertville's 2030 proposed land use plan and the goals and policies of the City's 2030 Vision Study. 2. The proposed use is or will be compatible with present and future land uses of the area. Comment: The land uses west of Barthel Industrial Drive are residential. The existing industries in the industrial park have presented compatibility issues in the past related to parking, traffic and nuisance issues. In recognizing these issues the expansion of industrial uses in this area must define performance standards that mitigate potential nuisance issues within the site planning and design. 3. The proposed use conforms with all performance standards contained herein. Comment: The applicant has brought forth applications for subdivision and development review. The rezoning the subject site to 1-2, General Industrial will subject the proposed industrial facility to all of the performance standards applicable in the zoning and subdivision codes and standards define through the site plan review. 4. The proposed use will not tend to or actually depreciate the area in which it is proposed. Comment: Rezoning of the subject site from A-1 Agricultural / Rural District to 1-2 General Industrial District will change the type of allowed uses in this area of the city. This area has been long planned for industrial growth. The building and site design must mitigate nuisance issue to preserve and protect the adjoining properties. 5. The proposed use can be accommodated with existing public services and will not overburden the city's service capacity. Comment: Public sewer and water and other utilities exist in this area. The available Municipal utilities in this area of the City have the size and capacity 4 Agenda Page 84 to accommodate the change to industrial land use and zoning. Extensions of and connections to these utilities will be evaluated with the subdivision and site plan proposals that have been submitted. 6. Traffic generation by the proposed use is within the capabilities of streets serving the property. Comment: City Staff has expressed concerns for the routing of traffic from the site. This specific concern is the travel routes of the large truck and heavy equipment. The City has received past complaints for industrial traffic (large trucks) using residential streets (57t", 55t", 51 st Streets to access the industries in the industrial park. The applicant must identify the travel routes that will be used by the business. Industrial traffic (large trucks) shall not be permitted on local residential streets. A change of land use guidance and zoning remains a policy decision of the Planning Commission and the City Council. However, City Staff would recommend supporting the land use and zoning change based on the following findings. 1 . The City's 2030 Visioning Study identifies a demand for industrial use expansion in the area. 2. The proposed industrial uses are a continuation of the Barthel Industrial Park north of the site. 3. The subject site offers access to major roadways Barthel Industrial Drive and County Roads which can accommodate the industrial users and related truck traffic. 4. As a requirement of site plan review, compatibility issues will be addressed through screening, setbacks, building location and site design. 5. The proposed land uses will not overburden City utilities and sewer capacity. Preliminary / Final Plat Streets. The preliminary plat shows a ghost cul-de-sac extension into the lot 1 Block 1 to preserve the potential of the future subdivision of lot 1. The current plat does not require any new street construction; however the plat must dedicate the street right-of- way for following adjoining streets. 1 . The plan shows a 33 foot right of way dedication for Marlowe Avenue. To meet the City's standard for industrial streets; this right-of-way must be expanded to 40 feet. 5 Agenda Page 85 2. The plat shows a 65 foot right-of-way dedication for 501" Street. 501" Street is a county road; plats abutting any county road are subject to the review and approval of the County. Wright Count will comment of the acceptability of the 501" Street right-of-way dedication. 3. Not additional right-of-way is required of Barthel industrial Drive. Lots. As indicated, the preliminary plat includes one building site (Lot 1, Block 1) and one outlot. Corresponding lot areas are summarized below: Area Lot 1 , Block 1 (Fehn site) 14.5 acres Outlot A 17.7 acres The 1-2 zoning district does not impose a minimum lot area requirement. Rather, required lot areas are determined by the criteria for parking, loading, setbacks and building coverage as provided in the Zoning Ordinance. Lot 1 Block 1 exceeds the minimum 100-foot width requirement. Lot 1, Block 1 provides adequate lot area to accommodate the proposed use and meet all required setbacks. This lot does include a portion of a large wetland at its northern boundary. The city requires wetland and their buffer yard to be platted as outlots and dedicated to the city. The plat must be revised to include a second outlot over the wetland and its buffer yard. Outlot A located in the eastern portion of the plat represents a future phase of development. No building permits shall be approved for any of the outlots until they are platted into lot and blocks. Wetlands. The plat illustrates existing wetlands and required wetland buffers. In review of the wetlands we offer the following comments. 1 . Within Lot 1 Block 1, Wetlands and their buffer areas located along the north and south side of the development area shall be platted as an outlot and dedicated to the City. This to prevent future intrusion within the wetlands and wetland buffers. 2. Wetland and buffer areas located in any of the outlots shall be covered with a drainage and utility easements and dedicated to the city. The plat shall be revised to illustrate these outlots and easements. 3. The Drainage ditch is proposed to be cleaned and reconstructed to meet City design standards. The grading plan and ditch design shall be subject to the review and approval of the City Engineer. The clean and reconstruction of the ditch will conducted by the applicant in lieu of the Storm water fees. 6 Agenda Page 86 4. The site grading and drainage plans shall be subject to the review and approval of the City Engineer. Easements. • The plat shows the required drainage and utility easements along lot lines • The plat must include drainage and utility easements over proposed storm water ponding areas as well as wetlands and buffer area within Lot 1, Block 1 and outlots. • The location, size and configuration of all required easements shall be subject to the approval of the City Engineer. Park Dedication. According to the Subdivision Ordinance, a cash in lieu of a land dedication contribution is $2,500 per acre is required for the platting of industrial land. This fee applies on to Lot 1 , Block 1 and only to the buildable area of the lot exclusive of wetlands and wetland buffers. Such fee will be imposed as a condition of final plat approval. Development Agreement. With the approval of the final plat the Applicant shall enter into a development agreement with the city which will address the required public improvements and site development per the approved plans. Site and Building Plan Review Site Access. The subject site is proposed to be accessed from Barthel Industrial Drive. Barthel Industrial Drive is design and constructed as a 10 ton industrial street capable of accommodating industrial traffic. The proposed curb cut is 50 feet in width by code any curb cut wider than 24 feet requires approval by the city engineer. The wider curb cut for industrial lots with large truck is common. The City Engineer will comment on the whether 50 feet is acceptable. The location of the curb cuts for this proposed industrial facility is acceptable. Setbacks. As shown below, the buildings proposed upon Lot 1 , Block 1 meet the applicable 1-2 District setback requirements. Future building expansions are planned for the east and west sides of the shop building. These building expansions also meet the 1-2 district setbacks. Required Proposed Proposed Office Shop/Storage Front Yard (west) 30 feet 90 feet 285 feet Side Yard — (south) 20 feet 30 feet 160 feet Side Yard — (north) 10 feet 600+ feet 240 feet Rear Yard 20 feet 590 feet 540 feet Off-Street Parking. As shown below, a total of 398 off-street parking stalls are required of the proposed manufacturing facility. 7 Agenda Page 87 Use Ratio Required Stalls Shop: 4 + 2 stall per shop 20 stalls 8 service bays bay Office: 3 spaces plus one 37 stalls 8119 sq. ft. gsf. stall per 200 nsf 7307 sq. ft. nsf. Storage: 1 space per 1000 sq. 5 stalls 5800 sq. ft. gsf. ft. of nsf. 5220 sq, ft., nsf, Total 62 stalls The submitted site plan illustrates 33 improved stalls, 20 unpaved parking stalls, and 10 proof of parking stalls for a total of 63 parking stalls on the site. Ten parking stalls are shown as "proof of parking: stalls located on the west side of the site. While Staff is supportive of the "proof of parking" concept, it is recommended that the City reserve the right to require to construction of additional parking stalls, should the need arise. In conformance with American Disability Act (ADA) requirements, a total of eight parking stalls are provided for persons with disabilities. Proposed parking stalls measure 20 feet in depth and 10 feet in width and meets minimum dimensional requirements of the Ordinance. Further, parking area drive aisles appropriately measure 30 and 25 feet in width exceeding the City's standard. The enlarged Site Plan (Exhibit E) show that the proposed improved parking areas will meet the City design standards related to paving, curbing , and striping. A continuous concrete curb around the perimeter of the parking lot and drive aisles is proposed and is extended to surround the parking area proposed for aggregate surfacing. The applicant has requested a variance from the surfacing of parking for select areas of the site. This variance is requested to provide unpaved employee parking and allow for the shop storage building expansion without the loss of the expense of the paved area. Evaluation of the variance request is outlined below, if the variance is approved by the planning commission and council. Parking Variance. The applicant has requested a variance from the parking lot surfacing requirement. The applicant has outlined the following reasons for the variance request. 1. Inherent in their on-site operation is the use and maneuvering and operation heavy trucks and equipment. The on-site operation of these vehicle and equipment destroys the bituminous surfacing. In this regard the areas identified as construction equipment staging area and stock pile storage areas are proposed to have an aggregate surfacing. 2. The applicant is requesting that the eastern employee parking stalls also have an aggregate surface. This would be improved with the expansion of the Shop / 8 Agenda Page 88 Storage building. These parking stall are internal to the site and would be used exclusively by Fehn employees. These stalls would not be available to outside visitors or customers. Chapter 500 of the Albertville Zoning Code outlines the following criteria for considering a variance. 1. Variances shall only be permitted when they are in harmony with the general purpose and intent of city code and consistent with the comprehensive plan. Comment: The land use is permitted in the 1-2 zoning district. The variance being requested is reflective of the industries operations and the impacted areas are internal to the lot and away from adjoining properties. 2. Variances may only be permitted when the applicant establishes that there are noneconomic practical difficulties in complying with the zoning ordinance, meaning the property owner proposes to use the lot or parcel in a reasonable manner not permitted by the zoning code. Comment: There is an economic practical difficulty associated with this variance request. The request to not paved the construction staging area and stock pile storage area, is to avoid the investing in a paved surface that will deteriorate and be lost through the operation of heavy equipment in this area The requested variance for the eastern parking lot is to avoid losing the pavement investment with the expansion of the Shop / Storage building. The Planning Commission and City Council will need to determine granting the variance offers a reasonable use other property. 3. The plight of the property owner must be due to circumstances that are unique to the lot or parcel and is not created by the property owner. Comment: With a new development the requested variance is due to the plight and operation of the proposed business rather than an physical condition of the property. The variance is to allow for the reasonable use of the property. The practical difficulties are driven by the unique operations inherent with the Fehn business rather that site characteristics. It is reasonable not to pave the areas where the pavement would be destroyed due to equipment operations and it is also reasonable to allow the variance from paving the east parking area to encourage the expansion of the business on-site. If the variance is approved, staff would recommend the following conditions. 1. The site is developed in accordance with the enlarged site plan Exhibit E. 9 Agenda Page 89 2. The east parking area be included as proof of parking and allow the city to required improvement to bring these parking stalls into compliance the City design standards if the building expansion does not occur within a time period agreed upon between the city and the property owner. 3. The applicant shall provide a dust control plan for the unpaved areas of the lot and the stock piles. This plan will include an implementation schedule. Trash Handling. The site plan does not illustrate the location of trash handling equipment. The plan must be revised to the location of any outdoor trash enclosure for both the office and the shop. As a condition of site and building plan approval, details related to trash handling activities must comply with Section 1000.14 of the Albertville Zoning Code. The applicant shall provide details on the trash and recycling handling equipment, trash enclosure design, elevations and demonstrate vehicle access to the equipment inside the enclosure. Building Materials. The exterior facades of the proposed office building will be clad with a combination of Smart board, Concrete simulated stone and metal accent panels at the southeast and southwest corners of the building. The combination of materials, colors, window treatment, entryway and light provide a very attractive building design at a major intersection of the City. The building materials meet the standards of the 1-2 district. The proposed shop / storage building is to be a precast concrete structure with painted metal accent panels add visual interest. The shop / storage building meets the 1-2 building materials standards. Building Height. The proposed shop building measures 30 feet in height and the office building is a single story. Both buildings are well within the maximum 45-foot requirement imposed in 1-2 zoning districts. Landscaping. As shown on the submitted landscape plan, various plantings are proposed along the east and south sides of the site. The landscaping is intended visually enhance the site and provide screening of the site functions primarily the outdoor storage area. The landscape plan calls for four variety of deciduous, ornamental and coniferous trees at the periphery of the site. The plan also includes a variety of shrub, grasses and perennials around the base of the building. The landscape plan is considered well- conceived and all plant materials sizes have been to meet the City minimum standards. In review of the landscape plan we offer the following comments. • Some understory shrubs shall be required along the proof of parking area along Barthel Industrial Drive when this parking is constructed to prevent headlight glare on to the street. 10 Agenda Page 90 • The grading plan shall be revised to preserve the existing mature trees along the east side of Barthel Industrial Drive. • The evergreen trees along Barthel Industrial Drive shall be planted in a staggered pattern to preserve the initial screen, while provide space between trees for healthy growth. • At strategic locations the introduction of low canopy deciduous trees shall be provided to give the landscape screen addition height and effectiveness for the summer months. Lighting. To date, a lighting plan has not been submitted. The building elevations show down lighting complaint with City Code. There appears to be freestanding light poles at the site entrance, along the driveway and at the site parking areas. As a condition of site and building plan approval, a photometric lighting plan must be submitted for review. Such lighting plan should include the following: 1. 90-degree cutoff light fixtures with a shielded light source. 2. Light pole locations and heights. 3. A photometric plan which overlays the entire site. 4. Building mounted lights. Signage. The plan set illustrate a proposed freestanding monument sign the site entrance along Barthel Industrial Drive. The location and setback meets code. The monument sign has a sign area of approximately 39 sq. ft. and height of 5.3 feet. The free standing sign meets the city code standard for the 1-2 district. The building elevations show wall signs on the south and west side of the office building. No signs are proposed for the shop / storage building. The number and location of the signs on the office meet code. No sign dimension has been offered for the wall signs. Wall signs cannot exceed more than 10% of the wall area on which they are located. As a condition of site and building plan approval, a sign plan should be submitted this specifies sign locations (wall signs, directional signs), sign height, sign area, construction materials and illumination. All proposed signs shall be subject to the issuance of a separate sign permit. Future Development. The submitted site plan illustrates a "future development" area located on the east and west side of the shop / storage building and on the north side of the office building. To be understood is that any approvals granted for the submitted applications should in no way be construed as an approval of the "future development" area as shown on the 11 Agenda Page 91 site plan. Any future development upon the site will minimally be subject to subdivision and site and building plan approvals. Grading, Drainage and Utilities. Grading, drainage and utilities plans shall be subject to final review and approval of the City Engineer. Conditional Use Permits Evaluation Criteria. The applicants have requested a conditional use permits to allow accessory outdoor storage at the north end of the site. The outdoor storage is intended to consist of stock piles of dirt, sand, gravel and building material. Associated with these stock piles the applicant proposed to operate on-site crushing twice a year winter and summer. Section 1000.15.13 of the Zoning Ordinance establishes a specific set of conditions applicable to accessory outside storage activities. The following is a listing of the various conditions followed by a Staff comment: 1. The area occupied is not within a required front or required side yard. Staff Comment: The proposed outside storage area will not occupy a required front or side yard. The location of the stock piles is in the extreme northeast corner of the site to provide distance and screening between this use and the residential uses to the west. City staff raised concerns over the request for stock piling of aggregate materials on site with regard to appearance, dust control and noise associated with crushing and hauling. If approved the following conditions shall be imposed. • No stock piles within 450 feet of the west property line or Barthel Industrial Drive right-of-way. • Stock piles shall not exceed 30 feet in height. • The applicant shall dust control plan for the stock piles to be approved by the city and implemented to prevent nuisance issues. 2. The storage area is totally fenced, fully screened and landscaped according to a plan approved by the Zoning Administrator, and a landscape guarantee, as determined by the Zoning Administrator, is provided. Staff Comment: While the proposed outdoor storage area is to be fenced, details related to the type of security fence and height have not been provided. Such information must be provided as a condition of conditional use permit approval. 12 Agenda Page 92 3. If abutting a residential district or use, screening and landscaping is provided according to a plan approved by the Zoning Administrator. Staff Comment: The submitted landscape plan and the submitted cross section proposed to provide a berm with 6 foot evergreen trees along the east side of Barthel Industrial Drive. In review of the cross section we offer the follow comments. • Based on the cross section the proposed berm with 6 foot trees will still have 20 of the stock pile visible from the second floor window of the homes west of Barthel Industrial Drive. • The cross section uses the house at 11834 Locust Circle for the cross section analysis. This lot abuts the current Fehn property and is heavily wood with mature trees. These existing trees with help screen the stock piles during the summer. • The home at 11826 Locust Circle is a two story home without rear yard trees. Currently mature trees on the east side of Barthel help screen the view of the proposed stock pile location. These mature trees are located on a city owned lot but are proposed to be removed with site grading. • The proposed berm and tree planting will be initially minimally effective but will improve as the trees grow. To improve the effectiveness of the proposed screen we recommend the following revision to the grading and landscape plan. • The grading plan shall be revised to preserve the existing mature trees along the east side of Barthel Industrial Drive. • The evergreen trees shall be planted in a staggered pattern to preserve the initial screen, while provide space between trees for healthy growth. • At strategic locations the introduction of low canopy deciduous trees shall be provided to give the landscape screen addition height and effectiveness for the summer months. Associated with the material stock piles, the applicant will have material crushing being conducted on-site. This raises concerns for nuisance issues for noise and dust. To mitigate these concerns the following conditions will be impose on all on-site crushing operations. 13 Agenda Page 93 • The Applicant and the city shall outline a schedule to crushing for two time in a calendar year (winter and fall). • On-site Crushing will be prohibited on weekends. • On- site Crushing will be limited to the hours of 7:00 AM to 7:00 PM. • Applicant shall have implement dust control plan during crushing. Said dust control plan shall be submitted to the City Engineer for approval. • Applicant shall abide by any additional directives of the City Engineer to control dust, and mitigate complaints. 4. The storage area is grassed or surfaced with asphalt, concrete, or crushed rock (concrete or granite) to control dust. Staff Comment: According to the applicant, the outdoor storage area will be surfaced with an aggregate material. We recommend that the Applicant provide a dust control plan for the aggregate area and the stock piles to prevent nuisance issues. 5. All lighting shall be hooded and so directed that the light source shall not be visible from the public right of way or from neighboring residences and shall be in compliance with section 1000.10 of this Chapter. Staff Comment: The site plan shows the locations freestanding lights within the storage area. The applicant shall be required to submit a lighting plan that shows the location, type of light fixture, pole height and the photometric levels across the site. In industrial zoning district requires exterior lighting to be fixture have a 90 degree cutoff and a shielded light source. The submitted lighting plan shall meet the performance standards of the Section 1000.10 of the Albertville zoning ordinance. 6. The storage area does not encroach upon required public or employee parking space(s), required loading space, or snow storage area as required by this Ordinance. Staff Comment: The proposed outdoor storage area does not interfere with the required parking or loading areas. 14 Agenda Page 94 7. A site plan documenting the location and grading of the storage operation shall be submitted and shall be subject to the approval of the City Engineer. Staff Comment: As required, a site grading plan has been submitted for review. Such plan shall be subject to comment and recommendation by the City Engineer. RECOMMENDATIONS Based on the preceding review, the following is recommended: Zoning Map Amendments. Approval of the requested zoning map amendment (rezoning the subject property from A-1 Agricultural / Rural District to 1-2 General Industrial) based on the following findings: 1 . The City's 2030 Visioning Study identifies a desire for industrial development within the City to expand local employment opportunities, diversify job groups, provide livable wages and increase the local tax base. 2. The proposed 1-2 General Industrial District is consistent with Albertville's 2030 Proposed Land Us plan. 3. The proposed 1-2 Zoning District is consistent with the zoning and land uses located north of the site. 4. The subject site offers access to major roadways Barthel Industrial Drive and County Road which can accommodate industrial users and related truck traffic. 5. As a requirement of site plan review, compatibility issues will be addresses through setbacks, screening, building location and site design. 6. Traffic generated by future industrial uses will be within the capability of existing streets which serve the area. 7. The proposed land uses will not overburden City utilities and sewer. 8. The proposed land use will contribute to the City tax base and will generate significant fees for the City utility and park funds. 15 Agenda Page 95 Preliminary / Final Plat. City Staff recommends approval of the Preliminary and Final Plat subject to the following conditions: 1 . Within Lot 1 Block 1 , Wetlands and their buffer areas located along the north end of lot 1 Block of Fehn Industrial Park Addition shall be platted as outlot and dedicated to the City. 2. Wetlands, wetland buffers and storm water ponds located in any of the outlots or on lot 1, shall be covered with a drainage and utility easements and dedicated to the city. The size, configuration and location of all easements shall be approved by the City Engineer. 3. The Drainage ditch that connects the wetlands shall be cleaned and graded to a minimum standard of 4 ft. bottom with 3:1 side Slopes 4. The plat shall be revised to provide a 40 foot street right-of-way dedication for Marlowe Avenue. 5. The Plat is subject to the review and approval of Wright County. 6. The grading plan shall be revised to preserve the existing mature trees along the east side of Barthel Industrial Drive. 7. All grading, drainage and utility plans shall be approved by the City Engineer. 8. As a condition of final plat approval, park dedication requirements of the City shall be satisfied. 9. The Applicant shall enter into a development agreement with the city with the approval of the final plat. Parking Lot Variance. City staff recommends approval on the variance to allow for aggregate surface on the east parking area and the outdoor storage and staging area with the following conditions. 1 . All the required parking shall be paved and meet the city parking design standards with the expansion of the shop/ storage building. 2. The east unpaved parking area shall be labelled proof of parking and allow the City to require this parking area be brought into full compliance with the City parking design standards if the shop expansion does not occur, additional 16 Agenda Page 96 parking is needed or if the unpaved condition of the lot deteriorates or presents erosion problems for the ditch. Site and Building Plans. City Staff recommends approval of site plan dated 12/23/2020, office building elevation dated 12/7/2020, floor plan dated 12/21/2020, and shop / storage building elevations and floor plans dated 12/21/2020 subject to the following conditions: 1 . The parking along Barthel Industrial Drive and the east unpaved parking area shall be designated proof of parking. The City shall reserve the right to require to construction of the proof of parking stalls should the need arise said condition will be included in the development agreement. 2. Details related to trash handling activities shall be addressed by the applicant. 3. Applicant shall identify any ground mounted or roof mounted mechanical equipment proposed for the buildings. All mechanical equipment shall be screening from view from the surrounding streets. 4. The landscape plan shall be revised to note the following conditions: a. Some understory shrubs shall be required along the proof of parking area along Barthel Industrial Drive when this parking is constructed to prevent headlight glare on to the street. b. The grading plan shall be revised to preserve the existing mature trees along the east side of Barthel Industrial Drive. c. The evergreen trees along Barthel Industrial Drive shall be planted in a staggered pattern to preserve the initial screen, while provide space between trees for healthy growth. d. At strategic locations the introduction of low canopy deciduous trees shall be provided to give the landscape screen addition height and effectiveness for the summer months. 5. A photometric lighting plan shall be provided which includes the following: A. 90-degree cutoff light fixtures with a shielded light source. B. Light pole locations and heights. C. A photometric plan which overlays the entire site. D. Building mounted lights. 6. A sign plan shall be submitted which specifies sign locations (wall signs and directional signs), sign height, sign area, construction materials and illumination. All proposed signs shall be subject to the issuance of a sign permit. 17 Agenda Page 97 7. The applicant acknowledge that any approvals granted for the submitted applications shall in no way be construed as an approval of the "future development" as depicted on the site plan. Any future development upon the site shall minimally be subject to subdivision and site and building plan approvals. 8. All grading, drainage and utility plans are subject to the review and approval of the City Engineer. Conditional Use Permit for Outdoor Storage. Approval of a conditional use permit to allow accessory outdoor storage in the north area of the site per the site plan dated 11/10/2020 subject to the following conditions: 1 . No stock piles shall be located within 450 feet of the west property line or Barthel Industrial Drive right-of-way. 2. Stock piles shall not exceed 30 feet in height. 3. The applicant shall dust control plan for the stock piles to be approved by the city and implemented to prevent nuisance issues. 4. Details related to the type of security fence and fence height shall be provided subject to City approval. 5. The landscape plan shall be revised to address the following: a. The grading plan shall be revised to preserve the existing mature trees along the east side of Barthel Industrial Drive. b. The evergreen trees along Barthel Industrial Drive shall be planted in a staggered pattern to preserve the initial screen, while provide space between trees for healthy growth. c. At strategic locations the introduction of low canopy deciduous trees shall be provided to give the landscape screen addition height and effectiveness for the summer months. 6. On-site crushing of shall be limited to twice a year (winter / summer) Applicant shall outline dates and duration of the crushing activities to be approve by the City. Crushing shall be limited to the hours of 7:00 AM to 7:00 PM. Crushing on the weekend shall be prohibited. Applicant shall implement directives of the City Engineer to mitigate nuisance issues of noise or dust. 7. A lighting and photometric plan shall be submitted for the outdoor storage area and approved by the city. 8. 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Oki irii�l!i�r1rii�' III M" ♦III�I�I�IjII�I l��''�•i j z=s�5 � / � Lo 0 0 0 0 0 0 LO 0 LO 0 LO a) 00 00 r- tn HOiJG 30VNIVa0 JQ dOi 12t / �L�`!4�YL`.�SS� III�[s�. � O(¢j / / � / � I � I � - � HoilCl 30VNIVHO JIO -10 2L+ / �� I f ;�All / / ( I 3lVMS 30 l0 ZZt O =� I olzr ( ` 1 `ti I 311dAO01S T1I1131V11 10 10 09-1 CE 0 6 996 + ul GO W ia if/ Yi C'696\\\\\ i — - — \r -- ' D I + Y4838 AD.. dOi t9t 10 1401100 NISVO VO+ N+1� 0,9V6 + ),C1N9 )118]1dMJd L9*Z8+ Vq2139 Jol doi Z+ Li -2 (J I 1 EldnO isv-]IJO XOVQ dol 00+ 1VI�IiS GNI to-lo BL+ /�� `GJ �— I]HI�VO 1 e�JnO 1S3M Jo Aova doi t9+ -16 fj CD ]snqH JO aIIN30 00+ Ln 0 T amojAO A3VH dOl tg+ �N Dvs-30-�90 JO d3IN30 004- CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2021-009 A RESOLUTION APPROVING A REQUEST FOR A ZONING MAP AMENDMENT TO CHANGE ZONING FROM A-1 DISTRICT TO I-2 DISTRICT,A PRELIMINARY /FINAL PLAT,BUILDING AND SITE PLAN AND CONDITIONAL USE PERMIT FOR OUTDOOR STORAGE FOR THE CONSTRUCTION INDUSTRIAL BUILDINGS FOR FEHN COMPANIES ON LOT 1,BLOCK 1 FEHN INDUSTRIAL PARK ADDITION WITHIN THE CITY OF ALBERTVILLE WHEREAS,Hunter Land Company have filed an application and submitted plans on behalf of Fehn Companies for the development of a 14.47 lot as their industrial headquarters. Said site is located at the Northeast quadrant of Barthel Industrial Drive and 50th Street intersection. To facilitate the development proposal the following development applications have been requested, 1. Zoning Map Amendment: Changing the zoning from A-1 Agricultural/Rural District to I-2 General Industrial District. 2. Preliminary and Final Plat. 3. Site and Building Plan Review 4. Conditional Use Permits for outdoor storage as an accessory use to the industrial use. 5. Variance from the parking lot surfacing requirements for portions of the site. WHEREAS, City Staff has reviewed submitted plans and prepared a planning report dated January 7, 2021; and WHEREAS,the Albertville Planning Commission met and held a public hearing on January 12, 2021,to consider the application for zoning map amendment,preliminary and final plat, site and building plan, conditional use permit for outdoor storage and variance from parking lot paving requirements: and WHEREAS,upon considering the application materials, January 7, 2021 the planning report and public testimony the Planning Commission closed the public hearing and recommended that the City Council approve the requested zoning map amendment, preliminary/ final plat, site and building plans, conditional use permit of outdoor storage and the variance from parking lot paving requirements based on the findings and conditions of the January 7, 2021 planning report including a condition to monitor and mitigate vibration issues that may arise from on-site crushing operations; and WHEREAS,the Albertville City Council met on February 1, 2021 to consider the Hunter Land Company/Fehn Companies development applications; and Agenda Page 112 City of Albertville,MN Resolution No.2021-009 Meeting of February 1,2021 Page 2 WHEREAS,the Albertville City Council has received the application materials including the plat, site plans and construction plan set, the City Staff reviewed documents and the Planning Commission recommendation and agrees with the findings and recommendation of the Planning Commission. NOW,THEREFORE BE IT RESOLVED,that the City Council of Albertville, Minnesota hereby approves the Hunter Land Company/Fehn Companies' request for a zoning map amendment to change the zoning from A-1 district to an I-2 district,preliminary and final plat dated December 23, 2020, site and building plans and conditional use permit for outdoor storage and a variance from the City's parking lot paving requirements for specific portion of the lot based on the plan set dated December 23, 2020 for the property legally described as Lot 1, Block 1 Fehn Industrial Park Addition based on the following findings and conditions. Zoning Amendment Findings: 1. The proposed zoning map amendment to change the site's zoning from A-1 district to I-2 District is consistent with the Albertville Proposed Land use map and the goals and policies of the Albertville 2030 Vision Study. 2. The proposed industrial uses are similar to the industrial land uses located north of the site. 3. The subject site offers convenient access to major roadways which can accommodate industrial users and related truck traffic. 4. As a requirement of site plan review, compatibility issues will be addressed through screening, land use transitions, building location and site design. 5. Traffic generated by future industrial uses will be within the capability of existing and future streets which serve the area. 6. The proposed land uses will not overburden City utilities and sewer. 7. The proposed land use will contribute to the City tax base and will generate significant fees for the City utility and park funds. Zoning Amendment Recommendations: 1. The City adopts Ordinance No. 2021-03 establishing the I-2 General Industrial District over the entire Fehn Industrial Park Addition. 2. The zoning Map change will not occur until approval of the Final Plat and the recording of the Final Plat and development agreement. Preliminary Plat/Final Plat: The Fehn Industrial Park Addition Preliminary Plat and Final Plat dated December 23,2020 is approved with the following conditions being addressed with the submission of the final plat. Agenda Page 113 City of Albertville,MN Resolution No.2021-009 Meeting of February 1,2021 Page 3 1. Within Lot 1 Block 1, Wetlands and their buffer areas located along the north end of lot 1 Block of Fehn Industrial Park Addition shall be platted as outlot and dedicated to the City. 2. Wetlands, wetland buffers and storm water ponds located in any of the outlots or on lot 1, shall be covered with a drainage and utility easements and dedicated to the city. The size, configuration and location of all easements shall be approved by the City Engineer. 3. The plat shall be revised to provide a 40 foot street right-of-way dedication for Marlowe Avenue. 4. The Plat is subject to the review and approval of Wright County. 5. The grading plan shall be revised to preserve the existing mature trees along the east side of Barthel Industrial Drive. 6. All grading, drainage and utility plans shall be approved by the City Engineer. 7. As a condition of final plat approval,park dedication requirements of the City shall be satisfied. 8. The applicant shall provide a wetland mitigation plan that identifies the replacement of any impacted wetlands. 9. The landscape plan must illustrate the proposed ground cover within the wetland buffer areas. 10. The Drainage ditch shall be cleaned and reconstructed per Ditch plan and profile dated 12/23/2020 with the City Engineer comments. 11. The Applicant shall enter into a development agreement with the city with the approval of the final plat. Site and Building plans are approved for Lot 1,Block 1 Fehn Industrial Park Addition; based on the Civil Engineering plans, Site plan, and landscape plan dated 12/23/2020, and the Building floor plans,Building elevations dated 12/07/2020 and 21/21/2020. Said approval is subject to the following conditions being addressed with the submission of revised plans. 1. The parking along Barthel Industrial Drive and the east unpaved parking area shall be designated proof of parking. The City shall reserve the right to require to construction of the proof of parking stalls should the need arise said condition will be included in the development agreement. 2. Details related to trash handling activities shall be addressed by the applicant. Agenda Page 114 City of Albertville,MN Resolution No.2021-009 Meeting of February 1,2021 Page 4 3. Applicant shall identify any ground mounted or roof mounted mechanical equipment proposed for the buildings. All mechanical equipment shall be screening from view from the surrounding streets. 4. The landscape plan shall be revised to note the following conditions: a. Some understory shrubs shall be required along the proof of parking area along Barthel Industrial Drive when this parking is constructed to prevent headlight glare on to the street. b. The grading plan shall be revised to preserve the existing mature trees along the east side of Barthel Industrial Drive. c. The evergreen trees along Barthel Industrial Drive shall be planted in a staggered pattern to preserve the initial screen,while provide space between trees for healthy growth. d. At strategic locations the introduction of low canopy deciduous trees shall be provided to give the landscape screen addition height and effectiveness for the summer months. 5. A photometric lighting plan shall be provided which includes the following: A. 90-degree cutoff light fixtures with a shielded light source. B. Light pole locations and heights. C. A photometric plan which overlays the entire site. D. Building mounted lights. 6. A sign plan shall be submitted which specifies sign locations (wall signs and directional signs), sign height, sign area, construction materials and illumination. All proposed signs shall be subject to the issuance of a sign permit. 7. The applicant acknowledge that any approvals granted for the submitted applications shall in no way be construed as an approval of the "future development" as depicted on the site plan. Any future development upon the site shall minimally be subject to subdivision and site and building plan approvals. 8. All grading, drainage and utility plans are subject to the review and approval of the City Engineer. Conditional Use Permit for Outdoor Storage. Approval of a conditional use permit to allow accessory outdoor storage in the rear (northeast area of the site per the site plan dated 12/23/2020 subject to the following conditions: 1. No stock piles shall be located within 400 feet of the west property line or Barthel Industrial Drive right-of-way. 2. Stock piles shall not exceed 30 feet in height. Agenda Page 115 City of Albertville,MN Resolution No.2021-009 Meeting of February 1,2021 Page 5 3. The applicant shall dust control plan for the stock piles to be approved by the city and implemented to prevent nuisance issues. 4. The landscape plan shall be revised to address the following: a. The grading plan shall be revised to preserve the existing mature trees along the east side of Barthel Industrial Drive. b. The evergreen trees along Barthel Industrial Drive shall be planted in a staggered pattern to preserve the initial screen, while provide space between trees for healthy growth. c. At strategic locations the introduction of low canopy deciduous trees shall be provided to give the landscape screen addition height and effectiveness for the summer months. 5. On-site crushing of shall be limited to twice a year (winter/summer) Applicant shall outline dates and duration of the crushing activities to be approve by the City. Crushing shall be limited to the hours of 7:00 AM to 7:00 PM. Crushing on the weekend shall be prohibited. Crushing equipment shall be located east and south of the stock piles to help mitigate noise and vibration for properties to the west and north. Applicant shall implement directives of the City Engineer to mitigate nuisance issues of noise or dust. 6. If vibration issues occur for the property to the north as a result of on-site crushing Fehn Companies agrees to work with the City to outline methods to mitigate the vibration impacts on the adjoining property including but not limited to smaller crushing equipment, increased setback, and/or other efforts etc. 7. A lighting and photometric plan shall be submitted for the outdoor storage area and approved by the city. 8. The City Engineer shall review and approve the site utilities, grading, drainage, storm water management and stock pile erosion controls. Variance from parking lot surfacing requirements. 1. All the required parking shall be paved and meet the city parking design standards with the expansion of the shop/ storage building per the approved enlarged site plan dated 12/23/2020. 2. The east unpaved parking area shall be labelled proof of parking and allow the City to require this parking area be brought into full compliance with the City parking design standards if the shop expansion does not occur, additional parking is needed or if the unpaved condition of the lot deteriorates or presents erosion problems for the ditch. 3. The applicant shall submit a dust control plan that includes the stock piles and all aggregate surfaced parking, staging, storage and travel areas on the site per the approve site plan. Said dust control plan shall be reviewed and approved by the City Engineer. Agenda Page 116 City of Albertville,MN Resolution No.2021-009 Meeting of February 1,2021 Page 6 Adopted by the City Council of the City of Albertville this lst day of February,2021. Jillian Hendrickson,Mayor ATTEST: Kristine A. Luedke, City Clerk Agenda Page 117 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO. 2021-03 AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF ALBERTVILLE,RELATING TO THE HUNTER LAND COMPANY/FEHN DEVELOPMENT LOCATED AT THE NORTHEAST QUADRANT OF BARTHEL INDUSTRIAL DRIVE AND 50TH STREET IN THE CITY OF ALBERTVILLE The City Council of the City of Albertville, Minnesota ordains: Section 1. The Albertville Zoning Map shall be amended changing the zoning on the property legally described as follows from A-1 Agricultural/Rural District to I-2 General Industrial District: Legal Description: PIDs: 101-800-063-301 101-800-063-302 101-800-063-306 Section 2. This amendment shall be in full force and effective immediately following its passage,publication and the recording of the final plat. Adopted by the City Council of the City of Albertville this 1st day of February,2021. Jillian Hendrickson,Mayor ATTEST: Kristine A. 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Plat Approval. Said Plat is hereby approved, subject to the following conditions: A. Developer agrees that all buildings on said Lot 1 shall be constructed in the locations shown on the Site Plan attached Exhibit C unless otherwise approved by motion of the City Council. B. Developer shall construct the number of parking stalls in the locations and dimensions shown in the parking lots to the west and south of the proposed office building located on said Lot 1 as shown on the attached Exhibit C. In the event the City determines that more parking is required for the proper operation of the use located on Lot 1, the City may require, and developer shall construct, additional parking in an amount required by the City in the location shown to the east of the proposed shop/storage building located on said Lot 1 and the ten parking stalls shown to the west of the parking lot located west of the Office Building as shown on the attached Exhibit C. C. Use of lots on Said Plat. The uses on all lots of Said Plat shall comply with the City's zoning code and applicable state law at all times. D. Developer shall develop Said Plat consistent with the Site Plan attached as Exhibit C. The Developer shall comply with all site plan approvals set by the City Council except where specifically set out in this agreement. 2 Agenda Page 132 E. All grading, drainage, utility and transportation issues that arise during development of Said Plat shall be subject to review and approval by the City Engineer. F. Trees, shrubs, berms and screening are to be planted and installed by Developer at Developer's expense as shown on the Landscape Plan attached as Exhibit D. Developer shall install landscaping shown on the Landscape Plan by October 31, 2021. The Developer shall guarantee that all new trees shall survive for two full years from the time the planting has been completed or will be replaced at the expense of the Developer. G. Developer shall maintain the storm sewer system and ponds located on Said Plat Developer shall not modify nor obstruct said storm sewer system or ponds without the express written consent of the City. H. No building permits shall be issued for any building on Outlot A of Said Plat until such outlot is replatted as a numbered lot and block compliant with the Albertville Subdivision and Zoning Codes. 1. The ditch located on said Lot 1 and on Outlot A of Said Plat shall be cleaned and graded by Developer at Developer's expense in accordance with the Ditch Cleaning Plan attached as Exhibit E, said cleaning to be completed by October 31, 2021. J. Developer shall install outdoor lighting in accordance with the Lighting Plan attached as Exhibit F. 2. Conditional Use Permit for Outdoor Storage. Developer is granted a Conditional Use Permit for outdoor storage of aggregate, sand, and soils (but not soils contaminated with hazardous substances, including recycled bituminous), subject to the following limitations: A. No stock piles shall be located within 400 feet of 1) the west property line, or 2) the Barthel Industrial Drive right-of-way. B. Stock piles shall not exceed 30 feet in height. C. The applicant shall implement a dust control plan for the stock piles which plan must be approved in writing by the City Engineer to prevent the creation of nuisance conditions. D. On-site crushing of shall be limited to two one-week periods per year within the following dates October to November 3 Agenda Page 133 and June to June . Applicant's Crushing shall be limited to the hours of 7:00 AM to 7:00 PM, Monday through Friday. Crushing on the weekend shall be prohibited. Crushing equipment shall be located east and south of the stock piles to help mitigate noise and vibration for properties to the west and north. Applicant shall implement reasonable directives of the City Engineer to mitigate nuisance issues of noise, vibration and dust. E. If vibration from Developer's crushing operations interfere with the manufacturing processes of the property adjacent to and to the north of the Subject Property, Developer agrees to work with the City to implement methods to mitigate the vibration impacts on the adjoining property including but not limited to smaller crushing equipment and increased setback from the north property line for crushing operations. F. All lighting installed for the outdoor storage area shall be installed and maintained in accordance with the Lighting and Photometric Plan attached as Exhibit F . G. The Developer shall implement reasonable grading, drainage, storm water management and stock pile erosion controls that may be required by the City Engineer pertaining to the outdoor storage area. 3. Construction of Municipal Improvements. A. The Developer shall clean the ditch, at Developer's expense, according to the Ditch Cleaning Plan attached as Exhibit E and install storm sewer in publicly dedicated utility easements as shown on the attached Exhibit G (collectively, the "Municipal Improvements"). Unless the City Engineer specifies a later date, said ditch cleaning shall be completed by October 31, 2021. B. The Developer shall provide the City with record drawings for all Municipal Improvements, consistent with City requirements and subject to review and approval of the City Engineer. Record drawings shall be certified by a registered land surveyor or engineer that the ditch has been constructed within public drainage easements. Such record drawings shall be provided in paper and/or electronic formats as required by the City Engineer, and shall meet all applicable State requirements for such drawings. C. The Developer warrants to the City for a period of two years from the date the City accepts the finished Municipal Improvements that all such 4 Agenda Page 134 Municipal Improvements have been constructed to City standards and shall suffer no significant impairments, either to the structure or to the surface or other usable areas due to improper construction, said warranty to apply both to poor materials and faulty workmanship. D. Developer shall provide the City with lien waivers from all contractors and subcontractors engaged to construct said Municipal Improvements on Said Plat. Should Developer fail to provide the City with all applicable lien waivers,the City reserves the right to draw upon Developer's surety and pay any contractors who performed work on any Municipal Improvements and whom Developer has failed to fully pay for the performance of said work. E. The City shall, at its option,have the City Engineer present on Said Plat for inspection purposes at all times (or such times as the City may deem necessary) during the construction and installation of said Municipal Improvements. Developer agrees to pay for all reasonable costs incurred by the City during said inspections. 4. Construction of Private Improvements. A. Developer shall construct all on- and off-site improvements ("Private Improvements") including installation of storm sewer, boulevards, storm water and water treatment ponding, yard top soil, sod and seed in all yards, grading control per lot,bituminous or concrete driveways and parking lots, and like items as necessary, street cleanup during project development, and erosion control,all as required by City ordinance. All yard areas shall be sodded with grass or landscaped in accordance with the attached Landscaping Plan. In all cases permanent turf or grass must be established over all areas of the lot not covered by a hard or impervious surface. Erosion control, drainage swales and berming, shall be installed upon initial grading of Said Plat. The grading and erosion control of Said Plat shall be performed in accordance with the Grading and SWPPP Plan attached as Exhibit G. B. Developer has submitted a utility plan for Said Plat showing all existing and proposed utility lines and easements, attached hereto and incorporated herein as Exhibit H. Developer agrees to have all utilities installed at its expense according to this Exhibit H. C. Notwithstanding the requirements of subparagraph 3.A above, the Developer shall install to the City's satisfaction said Private Improvements for said Lot I prior to the date that a certificate of occupancy(temporary or permanent)is issued by the City for a building 5 Agenda Page 135 located on the lot, unless the certificate of occupancy is issued after October 1st and before March 30th in any given year, in which case a certificate of occupancy shall be issued if all Private Improvements except landscaping and sod have been installed.In such cases,the owner of the lot shall cause the required landscaping and sod to be installed by the first June 30'following the issuance of the occupancy permit. 5. Surety Requirements. A. Developer will provide the City with an irrevocable letter of credit (or other surety as approved by the City Attorney) as security that the obligations of the Developer under this contract shall be performed. Said letter of credit or surety shall be in the amount of $ representing the sum of 100% of the estimated cost of the Municipal Improvements ($ ), 50% of the cost of selected Private Improvements, ($ ), $1,500 per acre for erosion and sediment control over 27 acres ($ ) and 150% of the estimated cost for landscaping/screening materials ($ ). Said letter of credit or surety must meet the approval of the City attorney as to form and issuing bank (the issuing bank must be an FDIC insured bank located within 100 miles of the City of Albertville), and must be available in its entirety to fulfill the obligations of the Developer under this Agreement. The letter of credit to the City shall contain language requiring its automatic renewal prior to December 31 of each calendar year, unless cancellation of the letter of credit is specifically approved in writing by the City. B. The City may draw on said letter of credit or surety to complete work not performed by Developer(including but not limited to Private Improvements, Municipal Improvements and Landscaping Improvements described above, erosion control, and other such measures, to pay liens on property to be dedicated to the City, to reimburse itself for costs incurred in the drafting, execution, administration or enforcement of this Agreement, to repair or correct deficiencies or other problems which occur to the Municipal Improvements during the warranty period, or to otherwise fulfill the obligations of Developer under this agreement. Said letter of credit must be maintained by Developer at all times at the level provided in paragraph 5.A above or a lesser amount authorized by the City Council pursuant to paragraph 6.13 below. 6 Agenda Page 136 C. In the event that any cash, irrevocable letter of credit, or other surety referred to herein is ever utilized and found to be deficient in amount to pay or reimburse the City in total as required herein, the Developer agrees that upon being billed by the City, Developer will pay within thirty (30) days of the mailing of said billing, the said deficient amount. If there should be an overage in the amount of utilized security, the City will, upon making said determination, refund to the Developer any monies which the City has in its possession which are in excess of the actual costs of the project as paid by the City. D. Developer hereby agrees to allow the City to specially assess Developer's property for any and all costs incurred by the City in enforcing any of the terms of this agreement should Developer's letter of credit or surety prove insufficient or should Developer fail to maintain said letter of credit or surety in the amount required above within 30 days of mailing of written request by the City. E. In the event a surety referred to herein is in the form of an irrevocable letter of credit, which by its terms may expire or become null and void prior to the time at which all monetary or other obligations of the Developer are paid or satisfied, it is agreed that the Developer shall provide the City with a new letter of credit or other surety, acceptable to the City, at least forty-five (45) days prior to the expiration of the original letter of credit. If a new letter of credit is not received as required above, the City may, without notice to Developer, declare a default in the terms of this Agreement and thence draw in part or in total, at the City's discretion, upon the expiring letter of credit to avoid the loss of surety for the continued obligation. The form of any irrevocable letter of credit or other surety must be approved by the City Attorney prior to its issuance. Developer shall maintain said letter of credit in the amount required by the City at all times. F. In the event the Developer files bankruptcy or in the event a bankruptcy proceeding is filed against Developer by others and is not dismissed within 60 days, or in the event a court appoints a receiver for the Developer, the City may draw on its letter of credit or surety in its full amount to secure its surety position. The City shall then release the remainder of said letter of credit or surety to the bankruptcy court or receiver in the same manner that it would be required to release the letter of credit under this Agreement. 6. Surety Release. 7 Agenda Page 137 A. Periodically, as payments are made by the Developer for the completion of portions of the Municipal Improvements, Private Improvements or Landscaping, and when it is reasonably prudent, the Developer may request of the City that the surety be proportionately reduced for that portion of the Municipal Improvements, Private Improvements or Landscaping which have been fully completed and payment made therefor. All such decisions shall be at the discretion of the City Council. The City's cost for processing reduction request(s) shall be billed to the Developer. Such cost shall be paid to the City within thirty (30) days of the date of mailing of the billing. B. The Developer may request of the City a reduction or release of any surety as follows: i. When another acceptable letter of credit or surety is furnished to the City to replace a prior letter of credit or surety. ii. When all or a portion of the required improvements have been installed, the letter of credit or surety may be reduced by the dollar amount attributable to that portion of improvements so installed, except that the City shall retain the letter of credit or surety in the amount of 10% of the estimated construction price of the Municipal Improvements during the first year of the warranty period and 5% of the estimated construction price of the Municipal Improvements during the second year of the warranty period. ill. When all or a portion of the landscaping improvements have been installed pursuant to the Landscaping Plan attached as Exhibit D, the letter of credit or surety may be reduced by the dollar amount attributable to that portion of such landscaping improvements installed, except the City shall retain the letter of credit or surety in the amount of 25% of the estimated Landscaping Improvement costs for two years from the time of the installation of said landscaping materials. iv. As to all requests brought under this paragraph,the City Council shall have complete discretion whether to reduce or not to reduce said letter of credit or surety. C. The City shall act upon Developer's letter of credit reduction requests within 35 days of submission of a written request for reduction. The costs 8 Agenda Page 138 incurred by the City in processing any reduction request shall be billed to the Developer and paid to the City within thirty(30) days of billing. 7. Abandonment of Project- Costs and Expenses. In the event Developer should abandon the proposed development of Said Plat, the City's costs and expenses related to attorney's fees, professional review, drafting of this Agreement, preparation of the feasibility report, plans and specifications, and any other expenses undertaken in reliance upon Developer's various assertions shall be paid by said Developer within thirty (30) days after receipt of a bill for such costs from the City. In addition, in the event the Developer abandons the project, in whole or in part, ceases substantial field work for more than nine (9) months, fails to provide sufficient ground-cover to prevent continuing soil erosion from Said Plat, or fails to leave the abandoned property in a condition which can be mowed using conventional lawn mowing equipment, Developer agrees to pay all costs the City may incur in taking whatever action is reasonably necessary to provide ground-cover and otherwise restore Said Plat to the point where undeveloped grounds are level and covered with permanent vegetation sufficient to prevent continuing soil erosion from Said Plat and to facilitate mowing of Said Plat. In the event that said costs are not paid,the City may withdraw funds from the above-mentioned surety for the purpose of paying the costs referred to in this paragraph. 8. Developer to Pay City's Costs and Expenses. It is understood and agreed that the Developer will reimburse the City for all reasonable administrative, legal, planning, engineering and other professional costs incurred in the creation, administration, enforcement or execution of this Agreement and the approval of Said Plat, as well as all reasonable engineering expenses incurred by the City in designing, approving, installing, and inspecting said Improvements described above. Developer agrees to pay all such costs within 30 days of billing by the City. If Developer fails to pay said amounts, Developer agrees to allow the City to reimburse itself from said surety and/or assess the amount owed against any or all of properties in Said Plat without objection. 9. Development Related Fees and Credits. A. Sanitary Sewer Trunk Line Fees. Developer agrees that the City's Sanitary Sewer Trunk Line Fee Ordinance and Water Trunk Line Fee Ordinance currently requires the Developer to pay $2,055.00 per acre and $1,925.00 per acre, respectively, upon development of said Plat. There are acres in said Plat to 9 Agenda Page 139 which the Trunk Charges apply, which received final plat approval (said Lot 1). Therefore, the Sanitary Sewer and Water Trunk Line Fees for the numbered lots receiving final plat approval are $ ($ in sanitary sewer trunk line fees calculated as $2,055.00 x acres and $ in water fees calculated as $1,925.00 x acres). B. Storm Water Utility Connection Charge. Developer agrees that the City's Storm Water Utility Connection Charge Ordinance requires the Developer to pay $1,500 per acre for all acres included in said Lot 1 upon application for a building permit on said Lot 1. C. SAC and WAC Charges. Developer agrees that the City's Sewer Access Charge ("SAC") and Water Access Charge ("WAC") ordinances require the Developer to pay applicable SAC and WAC upon application for a building permit on said Lot 1. B. Administrative Fee. A fee for City administration of this project shall be paid prior to the City executing the Plat and this Agreement. Said fee shall be 3.5% of the estimated construction costs of the Municipal Improvements within the Plat. The administrative fee for this Plat is 10.Erosion and Siltation Control. Developer shall implement all erosion control measures detailed in the Storm Water Pollution Prevention Plan ("SWPPP") and on the Grading and Drainage Plan attached as Exhibit G (including construction of all temporary and permanent ponds) in the order required by the City Engineer. Developer shall also implement any additional erosion control measures required by the City Engineer, and shall abide by all erosion control requirements contained in the Albertville Subdivision ordinance and as required by the NPDES Construction Stormwater Permit for the project. The parties recognize that time is of the essence in controlling erosion. If the Developer does not comply with the erosion control plan and/or the requirements of the NPDES Construction Stormwater Permit, the City may take such action as it deems appropriate to control erosion, and the landowner hereby grants the City permission to enter upon the land and take such necessary erosion control actions. The City will endeavor to notify the Developer in advance of any proposed action, but failure of the City to do so will not affect the Developer's and City's rights or obligations hereunder. If the Developer does not reimburse the City for any cost the City incurred for such work within thirty(30) days, the City may draw down the letter of credit to pay 10 Agenda Page 140 any costs or may specially assess Developer's land for the costs not covered by the letter of credit. No development will be allowed and no building permits will be issued unless the development is in full compliance with the erosion control requirements. 11.Drainage Requirements. Developer shall comply with all requirements set forth for drainage into any county ditch or other ditch through which water from Said Plat may drain, and shall make any necessary improvements or go through any necessary procedures to ensure compliance with any federal, state, county or city requirements, all at Developer's expense. 12.Maintain Public Property Damaged or Cluttered During Construction. Developer agrees to assume full financial responsibility for any damage which may occur to public property including but not limited to streets, street sub-base, base, bituminous surface, curb, utility system including but not limited to watermain, sanitary sewer or storm sewer when said damage occurs as a result of the activity which takes place during the development of Said Plat. The Developer further agrees to pay all costs required to repair the streets,utility systems and other public property damaged or cluttered with debris when occurring as a direct or indirect result of the construction that takes place in Said Plat. Developer agrees to clean the streets on a daily basis if required by the City. Developer further agrees that any damage to public property occurring as a result of construction activity on Said Plat will be repaired immediately if deemed to be an emergency by the City. Developer further agrees that any damage to public property as a result of construction activity on Said Plat will be repaired within 14 days if not deemed to be an emergency by the City. If Developer fails to so clean the streets or repair or maintain said public property, the City may immediately undertake making or causing it to be cleaned up, repaired or maintained. When the City undertakes such activity, the Developer shall reimburse the City for all of its expenses within thirty (30) days of its billing to the Developer. If the Developer fails to pay said bill within thirty (30) days, then the City may specially assess such costs against the lots within Said Plat and/or take necessary legal action to recover such costs and the Developer agrees that the City shall be entitled to attorney's fees incurred by the City as a result of such legal action. 13.Temporary Easement Rights. 11 Agenda Page 141 Developer shall provide access to Said Plat at all reasonable times to the City or its representatives for purposes of inspection or to accomplish any necessary work pursuant to this Agreement. 14.Miscellaneous. A. Developer agrees that all construction items required under this Agreement are items for which Developer is responsible for completing and all work shall be done at Developer's expense. B. If any portion, section, subsection, sentence, clause,paragraph or phrase of this Contract is for any reason held invalid by a Court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this Contract. C. If building permits are issued prior to the completion and acceptance of public improvements, the Developer assumes all liability and the costs resulting in delays in completion of public improvements and damage to public improvements caused by the City, Developer, its contractors, subcontractors, materialmen, employees, agents, or third parties. D. The action or inaction of the City shall not constitute a waiver or amendment to the provisions of this Contract. To be binding, amendments or waivers shall be in writing, signed by the parties and approved by written resolution of the City Council. The City's failure to promptly take legal action to enforce this Contract shall not be a waiver or release. E. This Contract shall run with the land and shall be recorded against the title to the property. F. The Developer represents to the City that Said Plat and its related submissions (including but not limited to the grading plan, utility plan, and site plan) complies with all City, county, state and federal laws and regulations, including but not limited to: subdivision ordinances, zoning ordinances, and environmental regulations. If the City determines that Said Plat does not comply, the City may, at its option, refuse to allow construction or development work in the plat until the Developer so complies. Upon the City's demand, the Developer shall cease work until there is compliance. G. Prior to the execution of this Agreement and prior to the start of any construction on Said Plat, Developer shall provide the City with evidence of good and marketable title to all of Said Plat. Evidence of good and 12 Agenda Page 142 marketable title shall consist of a Title Insurance Policy or Commitment from a national title insurance company, or an abstract of title updated by an abstract company registered under the laws of the State of Minnesota. H. Developer shall comply with all water, ponding and wetland related restrictions, if any, required by the Wright County Soil and Water Conservation District and/or the City and any applicable provisions of State or Federal law or regulations. I. Developer shall obtain all required driveway, utility and other permits as required by either the City Engineer, Wright County and/or the State of Minnesota for the construction of the Municipal Improvements and the On- and Off-Site Improvements. 15.Violation of Agreement. A. In the case of default by the Developer, its successors or assigns, of any of the covenants and agreements herein contained, the City shall give Developer thirty(30) days mailed notice thereof(via certified mail), and if such default is not cured within said thirty (30) day period, the City is hereby granted the right and the privilege to declare any deficiencies governed by this Agreement due and payable to the City in full. The thirty (30) day notice period shall be deemed to run from the date of deposit in the United States Mail. Upon failure to cure by Developer, the City may thence immediately and without notice or consent complete some or all of the Developer's obligations under this Agreement, and bring legal action against the Developer to collect any sums due to the City pursuant to this Agreement, plus all costs and attorney's fees incurred in enforcing this agreement. The City may also specially assess all said costs incurred upon default against the properties in Said Plat pursuant to the terms of this agreement. B. Notwithstanding the 30-day notice period provided for in paragraph 15.A above, in the event that a default by Developer will reasonably result in irreparable harm to the environment or to public property, or result in an imminent and serious public safety hazard, the City may immediately exercise all remedies available to it under this agreement in an effort to prevent, reduce or otherwise mitigate such irreparable harm or safety hazard,provided that the City makes good-faith,reasonable efforts to notify the Developer as soon as is practicable of the default, the projected irreparable harm or safety hazard, and the intended actions of the City to remedy said harm. 13 Agenda Page 143 C. Paragraph 15.A of this Agreement shall not apply to any acts or rights of the City under paragraph 5.E of this Agreement, and no notice need be given to the Developer as a condition precedent to the City drawing upon the expiring irrevocable letter of credit as therein authorized. The City may elect to give notice to Developer of the City's intent to draw upon the surety without waiving the City's right to draw upon the surety at a future time without notice to the Developer. D. Breach of any of the terms of this Contract by the Developer shall be grounds for denial of building permits. 16.Dedications to the City. A. Municipal Improvement Dedications. The Developer, upon presentation to the City of evidence of good and marketable title to Said Plat, and upon completion of all construction work and certification of completion by the City Engineer, shall dedicate all street rights-of-way and drainage and utility easements to the City. Upon acceptance of dedication,Developer shall provide to the City"As-Builts" (both in paper form and electronic form as required by the City Engineer) of all publicly dedicated storm sewers, storm water ponds, ditch and other Municipal Improvements required under this Agreement. Acceptance by City of any dedication shall occur upon passage of a resolution to such effect by the City Council. B. Park Dedication. The Developer is required to pay a cash contribution of$ in satisfaction of the City's park and trail dedication requirements. This charge is calculated as follows: acres x$2,500 per acre C. Deeding of Wetlands and Buffer Areas to the City. Outlot contains wetlands and buffer areas and are non- developable lots. Developer shall deed such outlot to the City. D. Stormwater Retention and Treatment Ponds and Basins. i. Developer shall dedicate drainage and utility easements to the City over all stormwater retention and treatment ponds and 14 Agenda Page 144 basins. Developer shall be required to maintain all such ponds, in accordance with the terms of the Stormwater Management Agreement attached as Exhibit I. ii. Developer shall enter into that Storm Water Maintenance Agreement attached as Exhibit I and shall comply with the terms of such Agreement. 17.Indemnity. Developer shall hold the City and its officers and employees harmless from claims made by Developer and third parties for damages sustained or costs incurred resulting from Said Plat approval and development. The Developer shall indemnify the City and its officers and employees for all costs, damages or expenses which the City may pay or incur in consequence of such claims, including attorney's fees. Third parties shall have no recourse against the City under this contract. IS.Assignment of Contract. The obligations of the Developer under this Contract can be assigned by the Developer. However, the Developer shall not be released from its obligations under this contract without the express written consent of the City Council through Council resolution. 19.Limited Approval. Approval of this Agreement by the City Council in no way constitutes approval of anything other than that which is explicitly specified in this Agreement. 20.Professional Fees. The Developer will pay all reasonable professional fees incurred by the City as a result of City efforts to enforce the terms of this Agreement. Said fees include attorney's fees, engineer's fees,planner's fees, and any other professional fees incurred by the City in attempting to enforce the terms of this Agreement. The Developer will also pay all reasonable attorney's fees and professional fees incurred by the City in the event an action is brought upon a letter of credit or other surety furnished by the Developer as provided herein. 21.Plans Attached as Exhibits. 15 Agenda Page 145 All plans attached to this Agreement as Exhibits are incorporated into this Agreement by reference as they appear. Unless otherwise specified in this agreement, Developer is bound by said plans and responsible for implementation of said plans as herein incorporated. 22.Integration Clause, Modification by Written Agreement Only. This Agreement represents the full and complete understanding of the parties and neither party is relying on any prior agreement or statement(s), whether oral or written. Modification of this Agreement may occur only if in writing and signed by a duly authorized agent of both parties. 23.Notification Information. Any notices to the parties herein shall be in writing, delivered by hand (to the City Clerk for the City) or registered mail addressed as follows to the following parties: City of Albertville c/o City Clerk P.O. Box 9 Albertville, MN 55301 Telephone: (763) 497-3384 Hunter Land Company, LLC 24.Agreement Effect. This Agreement shall be binding upon and extend to the representatives, heirs, successors and assigns of the parties hereto. CITY OF ALBERTVILLE By Its Mayor By Its Clerk 16 Agenda Page 146 HUNTER LAND COMPANY, LLC By: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of , 2021, by Jillian Hendrickson as Mayor of the City of Albertville, a Minnesota municipal corporation, on behalf of the city and pursuant to the authority of the City Council. Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of , 2021, by Kris Luedke, as Clerk of the City of Albertville, a Minnesota municipal corporation, on behalf of the city and pursuant to the authority of the City Council. Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF WRIGHT ) 17 Agenda Page 147 The foregoing instrument was acknowledged before me this day of , 2021, by as of Hunter Land Company, LLC . Notary Public DRAFTED BY: Couri & Ruppe Law Office P.O. Box 369 St. Michael, MN 55376 (763) 497-1930 18 Agenda Page 148 EXHIBIT A TO DEVELOPER'S AGREEMENT The legal description of the Plat to which this Developer's Agreement applies is as follows: Lot 1 Outlots A and All such property in the plat of Fehn Industrial Park, as said plat is on file in the Wright County Recorder's Office, Wright County, Minnesota. 19 Agenda Page 149 EXHIBIT B Final Plat EXHIBIT C Site Plan EXHIBIT D Landscaping Plan EXHIBIT E Ditch Cleaning Plan EXHIBIT F Lighting Plan EXHIBIT G Grading Plan & SWPPP EXHIBIT H Utility Plan EXHIBIT I Storm Water Ponding Maintenance Agreement 20 Agenda Page 150 EXHIBIT I (Reserved for Recording Data) STORMWATER MANAGEMENT AGREEMENT This AGREEMENT made this _day of 20_, by and between the CITY OF ALBERTVILLE, a Minnesota municipal corporation (hereinafter referred to as the("City") and Hunter Land Company, LLC, a Minnesota Limited Liability Company , (hereinafter referred to as the "Developer"). WHEREAS, the Developer is the fee owner of certain real property situated in the City of Albertville, County of Wright, State of Minnesota legally described as Lot 1, Block 1, Fehn Industrial Park, according to the plat on file at the Wright County Recorder's Office,Wright County, Minnesota (hereinafter referred to as the "Subject Property"), which the Developer has obtained the approval of the City for the development thereof; and WHEREAS, the City has required that the Developer make provision for the construction, maintenance and repair of the Ponds (collectively "Stormwater Ponds") located within the boundaries of the Subject Property as shown on Exhibit "A" attached hereto, as the same is described and depicted in those certain construction plans drawn by and dated and on file with the City Clerk ("Plans"). WHEREAS, the City and Developer desire to set forth their understanding with respect to the construction, repair and maintenance of the Stormwater Ponds and the responsibility relating to the costs of the repair and maintenance of the Stormwater Ponds. NOW THEREFORE, in consideration of the foregoing facts and circumstances, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 1. Construction and Maintenance of Stormwater Ponds. The Developer agrees to construct the Stormwater Ponds according to the Plans and repair and maintain the Stormwater Ponds at its sole cost and expense. Maintenance of the Stormwater Ponds shall mean (i) monthly inspections of the Stormwater Ponds and, if necessary, removal of all litter and debris, and replacement of mulch, vegetation, and eroded areas to ensure establishment of healthy 1 Agenda Page 151 functioning plant life therein; and (ii) an annual inspection, and certification, by a qualified individual or company acceptable to the City that the Stormwater Ponds are functioning in accordance with the approved plans and have maintained the proper operation of the stormwater treatment as a Stormwater Ponds according to the City Standards. If, as a result of an inspection by a qualified individual or company acceptable to the City or City staff, it is determined that the Stormwater Ponds (1) have not been maintained; or (2) are not functioning as originally designed and intended; or (3) are in need of repair, the Developer agrees to restore the Stormwater Ponds so that they function as they were designed and intended. The Developer further agrees that they will not use the Stormwater Ponds for snow storage and will inform its snow removal contractors of this provision of the Agreement. Developer shall be solely responsible for the repair and maintenance of the Stormwater Ponds located on the Subject Property, including all costs to repair and maintain said Ponds. Developer shall not be responsible for the maintenance of the pond located on Outlot of Said Plat. 2. Developer's Default. In the event of default by the Developer as to any of the work to be performed by it hereunder, following at least thirty (30) days prior written notice and Developer's failure to cure such default within such time-frame, except in an emergency as determined by the City, the City may, at its option, perform the work and the Developer shall within 30 days of receipt of an invoice and reasonable substantiation of such costs, reimburse the City for any reasonable out-of-pocket expense incurred by the City. This Agreement is a license for the City to act when so authorized under this Agreement, and it shall not be necessary for the City to seek a Court order for permission to enter the Subject Property. The City may, in addition to its other remedies, assess the reasonable out-of-pocket cost in whole or in part against said Lot 1, Block 1 of Said Plat, certify the costs against the said Lot 1, Block 1 of Said Plat pursuant to Minn. Stat. 366.012, or take any other action authorized by law to collect such costs from Developer. 3. Terms and Conditions. This Agreement shall run with the land and shall be binding upon Developer's successors and assigns with respect to the Subject Property. The terms and conditions of this Agreement shall be binding upon, and shall insure to the benefit of, the parties hereto and their respective successors and assigns. IN WITNESS WHEREOF, the parties hereto have caused this document to be executed as of the day and year first above written. 2 Agenda Page 152 CITY OF ALBERTVILLE BY: Jillian Hendrickson, Mayor (SEAL) AND Kris Luedke, City Clerk STATE OF MINNESOTA ) ( ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of , 2021, by Jillian Hendrickson and by Kris Luedke, the Mayor and City Clerk, respectively, of the City of Albertville, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. NOTARY PUBLIC 3 Agenda Page 153 Hunter Land Company, LLC By: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _day of 2021, by the of Hunter Land Company, LLC. NOTARY PUBLIC This Instrument Drafted by: Mike Couri Couri & Ruppe Law Office P.O. 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Mayor and Council Request for Action February 1,2021 SUBJECT: CITY CLERK—LOCAL BOARD OF APPEALS AND EQUALIZATION MEETING DATE RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following motion: MOTION TO: Set the meeting date and time for the Albertville Local Board of Appeals and Equalization for April 5, 2021 at 6:15 pm. BACKGROUND: The City Council serves as the Local Board of Appeals and Equalization (LBAE). This Board holds a public hearing where the public can question the value their property is assessed for. Property values are determined by Wright County Assessing staff and are based on sales data of the previous year. If a property owner does not agree with the Board's decision at the local level, they may appeal to the Wright County Board of Appeals and Equalization and then to Minnesota Tax Court if they are still not satisfied. The local Board must have at least one voting member that is a trained through the MN Department of Revenue and certified to Wright County. KEY ISSUES: • LBAE meeting dates are generally held prior to a regular City Council meeting in April of each year. • Wright County Assessing staff has tentatively set the Albertville LBAE for April 5, 2021 at 6:15 p.m. • In past years, the Council has set the meeting for 6:15 pm prior to the City Council meeting. Council must determine how much time to allow for the meeting. • Albertville has one trained member: Councilmember Olson. • There will need to be a quorum of the Council present with at least one member trained by February 1, 2021. POLICY/PRACTICES CONSIDERATIONS: The Mayor and City Council have the authority to set LBAE meeting dates and times. Responsible Person/Title: Kris Luedke, City Clerk Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Wright County Memo Agenda Page 182 JNT v o,� Z 0 M •d 0 Z! dy 7856 To: Albertville City Assessor's Office From: Keith Triplett,Wright County 10 2nd St.NW Rm 100 Keith.Triplett@co.wright.mn.us Buffalo,MN 55313 Date: January 21,2021 Ph:(763) 682-7367 Fax: (763) 684-4553 Re: 2021 Local Board of Appeal and Equalization Dates www.co.wright.mn.us Monday April 5th Day of the Week Date Minnesota Law requires that the County Assessor set the date for your Local Board of Appeal and Equalization Meeting. The 2021 Albertville City Local Board of Review and Equalization Meeting has been tentatively set for April 5th at 6:15:00 PM. If this date is agreeable or must be changed please contact Keith at 763-682-8957 or 1-800-362-3667 ext. 8957 prior to February 15,2021. Minnesota Statues require that in order to hold a Local Board of Appeal and Equalization meeting in 2021 there must be a quorum and at least one of the voting members must have attended the approved training. If your board has any questions or needs any information,please contact Keith. Currently some of the Cities and Townships in Wright County held their meetings with a starting time of 9:OOAM, 1:00PM&3:OOPM. If your members are interested in starting the meeting earlier than your tentatively scheduled time,please contact Keith. As there must be a quorum please notify your board members with a request that they mark their calendars. More information,including a summary of the duties and responsibilities of the Local Board of Appeal and Equalization will be provided at a later date. Your early completion and return of the attached tear off slip will be appreciated and we will send your official notice for posting as required by law. Please return to Keith Triplett,Wright County Assessor Office,at the above address or email address or fax to our office at 763-684-4553. ----------------------------------------------------------------------------------------------------------- CONFIRMATION Municipality- City of Albertville Date/Time: Location: Albertville City Hall, Council Chambers Location Address: 5959 Main Ave NE, Albertville For selecting meeting dates in future years,the following information will be helpful. 1st &3rd Mondays An Eq IMPUMy Employer A,lbertville Mayor and Council Request for Action Small Town LIWng.Big Ufs. February 1, 2021 SUBJECT: ADMINISTRATION—2021 APPOINTMENTS TO BOARDS AND COMMITTEES RECOMMENDATION: It is respectfully requested that the Mayor and City Council review and make any desired adjustments to the list of appointments and committee assignments, and then consider the following: MOTION TO: adopt Resolution No. 2021-010, with amendments, appointing City Council members to various boards and committees for 2021. BACKGROUND: The City Council approved its 2021 appointments at its first meeting in January; however, Councilmember Zagorski has since been appointed. With the resignation of Councilmember Halling and the appointment of Councilmember Zagorski, Council requested staff add this item to the February 1 City Council meeting for the Council to discuss. KEY ISSUES: • Annually,the City Council is appointed to various board and committees. • Alternates are appointed to the boards and committees to serve in the case of absence of the appointed Council member. • The attached Resolution reflect the 2021 appointments which was decided at the January 4, 2021 City Council meeting. • At its January 19 meeting, the City Council appointed Councilmember Bob Zagorski to fill the seat vacated by Rebecca Halling. LEGAL ISSUES: The Mayor and City Council have the authority to review and approve appointments to boards and committees of the City. Submitted by: Adam Nafstad, City Administrator-PWD Attachments: Resolution No. 2021-010 Agenda Page 184 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2021-010 Resolution Appointing City Council Members To Boards And Committees For 2021 WHEREAS,it has been the policy of the Albertville City Council to make annual appointments of City Council members to its various boards and committees at the beginning of each year; and WHEREAS,the City Council established the following appointments for the year 2021: Cable TV Board Jillian Hendrickson Emergency Management Director Fire Chief Economic Development Authority (EDA) Mayor and all Council members Emergency Management Committee Aaron Cocking Rob Olson Fire Chief Alternate—Bob Zagorski Fire Advisory Committee—Albertville & Otsego Aaron Cocking Rob Olson Fire Chief Finance Director City Administrator Fire Relief Association Representatives Fire Chief Aaron Cocking City Administrator FYCC Rob Olson Alternate—Jillian Hendrickson Joint Powers Water Board Jillian Hendrickson Rob Olson Alternate—Bob Zagorski Library Jillian Hendrickson Otsego Creek Authority Rob Olson Planning Commission Rep Agenda Page 185 City of Albertville Resolution No.2021-010 Meeting of February 1,2021 Page 2 Personnel Committee Jillian Hendrickson Rob Olson Planning Commission Bob Zagorski Alternate—Walter Hudson Public Works Committee Aaron Cocking Rob Olson Water/Wastewater Supervisor Public Works Supervisor City Administrator STMA Ice Arena Board Aaron Cocking Walter Hudson Alternate—Bob Zagorski Arena Manager City Administrator Finance Director I-94 West Corridor Coalition Jillian Hendrickson City Administrator Alternate—Rob Olson NOW,THEREFORE,BE IT RESOLVED,that such appointments shall take effect on the date February 1, 2021, and shall continue for the remainder of the year or until such time as a successor is appointed by the City Council. Adopted by the City Council of the City of Albertville this Vt day of February 2021. Jillian Hendrickson, Mayor ATTEST: Kristine A. Luedke, City Clerk Agenda Page 186 .A\1bcrtvi11- City Administrator's Update Small Town Living.Big CRy LIFe. January 28, 2021 GENERAL ADMINISTRATION Fehn Companies: Included in the packet is a preliminary and Final Plat application by Fehn Companies for an industrial park project at Barthel Industrial Drive and 50th Street NE. Konz Crossing: Included in the packet is a site and building applications for a retail/office building project at Lachman Avenue NE and 57th Street NE. Watermark Concept Plan: It is our understanding the Developer intends to make formal application this winter. As such, staff has been discussing options for JPWB to purchase land adjacent to the JPWB property to allow for future expansion. Advanced Volumetric Alliance: The Development group has asked to move the final plat consideration to the February 16 meeting to allow more time to discuss Kadler Avenue option, and potentially seek funding assistance from Albertville or Otsego. AVA is opposed to constructing Kadler Avenue with the project and do not desire to enter in an assessment agreement to construct the road in the future, as previously discussed. Kadler Avenue is a shared road with Otsego with full access to 70th Street. The hearing on the TIF district will be held at the meeting; however, the hearing on the DEED subsidy will need to be continued to a future meeting to allow the Developer time to complete the applications. Website Rebuild: Staff meets weekly with Granicus regarding the rebuild. We expect to launch the new website late-spring/early summer of 2021. STMA Arena: Staff is working to finalize the contract with HockeyTV. ENGINEERING/PUBLIC WORKS 2021 Street Project: The 2021 street project will be presented to Council in February. Local Road Improvement Program: MnDOT recently announce the solicitation for the 2020 LRIP. Applications are due on March 3 and awards will likely be announced in May. Staff believes Barthel Industrial Drive may be a good candidate and will be researching further. BNSF Quite Zone Study: We recently learned that Otsego and the County have issued approvals for the GCC Dacotah, Inc. project. This project will generate frequent train crossings at CSAH 37 and CSAH 19. The County's agreement with GCC requires gates and flashing lights at 19 and 37. Per the agreement, these improvements won't like commence until March of 2022. We have requested a meeting with BNSF to begin coordination of the quite zone improvements as part of the work being required by the County. Agenda Page 187 WWTP Reed Bed Elimination Project: Albertville's WWTP Improvement project was included in the bonding bill for $2,500,000. Staff is working on preliminary plans, the construction schedule, and funding options. The tentative project schedule is to complete preliminary design by March, final design by August, and bid in Sept/Oct with a projected construction start in Nov. 2021. 1-94 Project (Creamery Pond): This topic has been included on the agenda for further discussion. After many months of discussion and back and forth with MnDOT and the design- build team, MnDOT has generally agreed to allow the city to pursue options to relocate the pond and preserve the Creamery Pond site as developable land. MnDOT's currently plan is to construct a 3 plus acre pond on the 3.5 acre site. At the onsets of the project, during preliminary design, and as part of all approvals issued for the project, Albertville has requested and offered to partnership with the State to preserve the site for future development. In a recent meeting with the State and Contractor, we were told the cost to eliminate the pond would be approximately$800,000. This cost does not include the cost to buy the land back from the State. Additionally, at this point the State will not even commit to sell the land until after the current project and the project from Albertville to Monticello (Gap project) are both complete. Given the cost to relocate the pond and the uncertainty of whether MnDOT will even sell the land, at this time, it does not appear to be feasible for the City to continue to pursue preservation of this site. 58th Street NE and Central Park Improvements: Staff is working on the Source Well contract for the skate park. Construction of the skate park is scheduled to begin in the spring. CSAH 19 and 70th Street: Construction and landscaping is generally complete for the year. Final restoration and punchlist related work will be completed in the spring. City Administrator's Update Page 2 of 2 January 28, 2021 Agenda Page 188