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2021-02-16 City Council Agenda Packet Nbertville City of Albertville Council Agenda Small Wing.Big City Ufs. Tuesday, February 16, 2021 City Council Chambers 7 pm 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/99874260899?pwd=SkdWTW11UVpCajRKYVklTjIOQnRSUT09 Zoom Meeting ID: 998 7426 0899 Passcode: 920479 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 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 February 1, 2021, regular City Council Meeting minutes as presented. 4-8 B. Authorize the Tuesday, February 16, 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. Approve the Albertville Fire Relief Association Bylaws. 10-38 D. Authorize a new Appointment to the Fire Department Board of Officers. 39-40 E. Approve an On-Sale Wine and 3.2% Beer Liquor for The Hen and The Hog located at 41 5262 Kyler Ave NE, Suite 111, contingent upon a successful background check. 7. Public Hearing A. Advanced Volumetric Alliance Industrial Final Plat, Plans and Conditional Use 42-97 Permits (Motion to adopt Resolution No. 2021-009 approving the final plat entitled Advanced Volumetric Alliance addition and final site and building plans, and the Conditional Use permits for outdoor storage and outdoor product display on Lot 1, Block I AVA Addition based on the final plat and plans dated January 11, 2021.) (Motion to approve Development Agreement/Conditional Use Agreement for Advanced Volumetric Alliance) City of Albertville City Council Agenda Tuesday, February 16, 2021 Page 2 of 3 7. Public Hearing - continued B. Public Hearing -Advanced Volumetric Alliance Industrial Vacation Request 98-101 • Mayor to open public hearing • Motion to close public hearing (Motion to adopt Resolution No. 2021-010 approving the Vacation of a portion of the 67th Street right-of way in conjunction with the Final Plat of entitled Advanced Volumetric Alliance addition within the City ofAlbertville.) C. Advanced Volumetric Alliance Industrial DEED Grant Applications - continued 102-159 from February 1,2021 Council meeting • Mayor to open public hearing • Motion to close public hearing (Motion to adopt Resolution No 2021-004 approving the submission of a DEED Minnesota Investment Fund grant application and Resolution No. 2021-005 approving the submission of a DEED Job Creation Fund grant application seeking State grant financial assistance for Advanced Volumetric Alliance to allow for the construction of a 178,000+ sq.ft manufacturing facility in the City ofAlbertville) 8. WrigCounty Sheriffs Office—Updates, reports, etc. 9. Department Business A. City Council 1. Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.) B. Building -None C. City Clerk -None D. Finance -None E. Fire-None F. Planning and Zoning -None G. Public Works/Engineering -None H. Legal -None I. Administration 1. 2021 Local Road Improvement Program Grant Application 160 (Motion to adopt Resolution No. 2021-011 supporting pursuit of 2021 Local Road Improvement Program Funding from MnDOT for the Barthel Industrial Drive Improvements project.) City of Albertville City Council Agenda Tuesday, February 16, 2021 Page 3 of 3 I. Administration - continued 2. Renewal of Recycling Contract 161-164 (Motion to approve the Amendment Recycling Service Contract with Republic Services for residential recycling services to extend the term of the recycling service through May 31, 2026.) 3. Contract Building Department Discussion— (see attached) 165 4. City Administrator's Update 166 10. Announcements and/or Upcoming Meetings February 22 Joint Powers Water Board, 6 pm Parks Committee, 7 pm March 1 City Council, 7 pm March 8 STMA Arena Board, 6 pm March 9 Planning Commission, 7 pm March 15 City Council, 7 pm 11. Adjournment Nbertville Smell Y-.'gin W.B.Big CIc4 Uft. ALBERTVILLE CITY COUNCIL DRAFT REGULAR MEETING MINUTES February 1, 2021 — 7 pm Council Chambers Albertville City Hall 1. Call to Order Acting Mayor Olson called the meeting to order at 7:03 pm. 2. Pledge of Allegiance—Roll Call Present: Acting Mayor Olson, Councilmembers Cocking, Hudson and Zagorski Present remotely: Mayor Hendrickson Staff Present: City Administrator Nafstad, City Attorney Couri, City Planner Brixius, Fire Chief Bullen, City Clerk Luedke and Finance Director Lannes. 3. Recognitions—Presentations—Introductions A. 2020 Albertville Fire Department Annual Awards Fire Chief Bullen recognized the following Albertville Fire Department members for their years of service: Firefighter Asfeld(5 years) and Firefighter Olson (15 years). Assistant Chief Mills was recognized for his retirement after 23 years of service on the fire department. Chief Bullen said the department averaged 720 volunteer hours per member with Deputy Chief Davis having the most at 56.5 hours. Firefighter Grove received the Top Caller Award at 307 calls and Captain Eull received the 2020 Paul Heinen Above and Beyond Award. The City Council thanked the fire department for their service. 4. Public Forum There was no one present for the forum. 5. Amendments to the Agenda There were no amendments to the agenda. MOTION made by Councilmember Cocking, seconded by Councilmember Hudson to approve the February 1, 2021, agenda as submitted. Ayes: Cocking, Hendrickson, Hudson, Olson and Zagorski. 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 19, 2021, regular City Council Meeting minutes as presented. B. Authorize the Monday, February 1, 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. Agenda Page 4 City Council Meeting Draft Minutes Page 2 Regular Meeting of February 1,2021 6. Consent Agenda -continued C. Accept Accounts Receivable reports. D. Accept 4th Quarter Budget to Actual reports. MOTION made by Councilmember Hudson, seconded by Councilmember Zagorski to approve the February 1, 2021, Consent Agenda as submitted. Ayes: Cocking, Hendrickson, Hudson, Olson and Zagorski. Nays: None. The motion carried. 7. Public Hearing A. Public Hearing—Advance Volumetric Alliance Industrial DEED Grant Applications — continued from January 19,2021 City Council meeting MOTION made by Mayor Hendrickson, seconded by Councilmember Hudson to continue the public hearing to the February 16 City Council meeting at 7 pm Ayes: Cocking, Hendrickson, Hudson, Olson and Zagorski. Nays: None. The motion carried. B. Advance Volumetric Alliance (AVA) Tax Increment Financing Request Ms. Tammy Omdal,Northland Securities, provided information on the proposed Tax Increment Financing (TIF)request and background information on the AVA owners. Ms. Omdal explained the TIF process including the establishment of a TIF District findings and projected tax increment cash flow. She said that the City was not entering into an agreement at this time and that an agreement would be brought to a later meeting for Council approval. She answered questions for Council. Finance Director Lannes and City Administrator Nafstad answered questions for the Council regarding the TIF proposal and the proposed project. Acting Mayor Olson opened the public hearing. No one requested to speak. MOTION made by Councilmember Cocking, seconded by Councilmember Hudson to close the public hearing. Ayes: Cocking, Hendrickson, Hudson, Olson and Zagorski.Nays: None. The motion carried. There was Council discussion regarding the proposed Tax Increment Financing request. MOTION made by Mayor Hendrickson, seconded by Councilmember Hudson to adopt Resolution No. 2021-006, 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. Ayes: Cocking, Hendrickson, Hudson, Olson and Zagorski. Nays: None. The motion carried. MOTION made by Mayor Hendrickson, seconded by Councilmember Zagorski 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 (AVA Project). Ayes: Cocking, Hendrickson, Hudson, Olson and Zagorski. Nays: None. The motion carried. C. Konz Crossing Minor Subdivision and Consolidation City Planner Brixius presented the staff report and provided information on the applications the City received in association with the development of two property sites. He answered questions from Council and said the public hearing was only for the proposed easement vacation. Acting Mayor Olson opened the public hearing. No one requested to speak. Agenda Page 5 City Council Meeting Draft Minutes Page 3 Regular Meeting of February 1,2021 C. Konz Crossing Minor Subdivision and Consolidation- continued MOTION made by Councilmember Cocking, seconded by Councilmember Hudson to close the public hearing. Ayes: Cocking, Hendrickson, Hudson, Olson and Zagorski.Nays: None. The motion carried. MOTION made by Councilmember Zagorski, seconded by Councilmember Hudson 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. Ayes: Cocking, Hendrickson, Hudson, Olson and Zagorski. Nays: None. The motion carried. Ms. Christine Konz, applicant, thanked the City Council for passing the Resolution and said she and her husband were very excited about project. D. Fehn Companies Industrial Development Applications City Planner Brixius presented the staff report including information on the zoning map amendment, the proposed project, the conditional use permit and the future expansion of the property. He answered questions from Council. Mr. Gary Fehn, applicant, said at this time his company did not have plans for their current site and added that they have enjoyed being located in Albertville and were happy to expand in the City. Acting Mayor Olson opened the public hearing. No one requested to speak. MOTION made by Councilmember Cocking, seconded by Councilmember Hudson to close the public hearing. Ayes: Cocking, Hendrickson, Hudson, Olson and Zagorski. Nays: None. The motion carried. There was Council discussion regarding the proposed Fehn Companies applications. MOTION made by Councilmember Hudson, seconded by Councilmember Cocking 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 of Albertville. Ayes: Cocking, Hendrickson,Hudson, Olson and Zagorski. Nays: None. The motion carried. MOTION made by Councilmember Hudson, seconded by Councilmember Cocking to approve Fehn Industrial Park Development Agreement subject to City Attorney review. Ayes: Cocking, Hendrickson, Hudson, Olson and Zagorski. 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, JPWB, Parks, Fire Board, FYCC) Councilmember Cocking said the District Financing Committee had met and that the STMA School Board may be coming forward with a tax levy increase request this year. Acting Mayor Olson provided information on the January Joint Powers Water Board meeting. Agenda Page 6 City Council Meeting Draft Minutes Page 4 Regular Meeting of February 1,2021 B. Fire 1. Fire Department Presentation—Year in Review Fire Chief Bullen provided information on the 2020 call data and said the department had received a total of 414 calls. He reported that the fire department had already received 41 calls in 2021. He also provided details on the incident statistics and the property values versus the loss and save for year 2020 along with the department's accomplishments. Chief Bullen answered questions from Council. The Council thanked the Fire Department for their service to the City of Albertville. C. Planning and Zoning—None D. City Clerk 1. Set Local Board of Appeals and Equalization Meeting Date City Clerk Luedke reported Wright County tentatively set the Albertville Local Board of Appeals and Equalization meeting for Monday, April 5 at 6:15 pm and said that staff recommends setting the meeting for that time. MOTION made by Councilmember Hudson, seconded by Councilmember Zagorski to set the meeting date for the Albertville Local Board of Appeals and Equalization for April 5, 2021 at 6:15 pm. Ayes: Cocking, Hendrickson, Hudson, Olson and Zagorski. Nays: None. The motion carried. E. Finance—None F. Public Works/Engineering—None G. Building—None H. Legal—None I. Administration 1. 2021 Appointments to Boards and Committees City Administrator Nafstad welcomed newly appointed Councilmember Zagorski and said that the Council had discussed at their last meeting adding him to certain 2021 Boards and Committees. MOTION made by Councilmember Hudson, seconded by Councilmember Cocking to adopt Resolution No. 2021-010 appointing City Council Members to the Boards and Committees for 2021. Ayes: Cocking,Hendrickson, Hudson, Olson and Zagorski. Nays: None. The motion carried. 2. Creamery Pond Site Update City Administrator Nafstad provided the background information on the Creamery Pond site and the City's desire to preserve it as developable land. He said it was purchased by the State for storm water management. Nafstad noted all City approvals related to the 94 project, including municipal consent, utility agreements, and land conveyance,have been conditioned on MnDOT working to preserve developable land at the Creamery Pond site. He reported the estimate the city recently received to relocated the pond was $800,000 and would generally include constructing a larger pipe from the Creamery Pond site to the WB CD Road ponds on the north side of the highway, which were previously built for this purpose. Additionally, the City would have to buy back the land from State. Agenda Page 7 City Council Meeting Draft Minutes Page 5 Regular Meeting of February 1,2021 Nafstad explained that the City recently learned that the State would not commit to selling the land back to the City until the current I-94 project and completion of the future 6-lane project between Albertville and Monticello are both completed. Mr. Nafstad and City Attorney Couri answered questions from Council regarding the project. There was Council decision regarding the Creamery Pond site and thanked City Administrator Nafstad for his work in attempting to secure the land for as an asset for Albertville. 3. City Administrator's Update City Administrator Nafstad provided an update on oncoming projects in the City and information regarding the train issues that have been caused due to the train's schedule change in regards to when it passes through the City. He answered questions from Council. 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 are closed February 22 Joint Powers Water Board, 6 pm Parks Committee, 7 pm March 1 City Council, 7 pm 10. Adjournment MOTION made by Councilmember Hudson, second by Councilmember Zagorski to adjourn the meeting at 8:56 pm. Ayes: Cocking, Hudson, Olson and Zagorski.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 16, 2021 SUBJECT: CONSENT-FINANCE—PAYMENT OF BILLS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Authorize the Tuesday, February 16, 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 bcrtvill�l c Mayor & Council Request for Action February 16, 2021 SUBJECT: CONSENT—FIRE-ALBERTVILLE FIRE RELIEF ASSOCIATION BYLAWS RECOMMENDATION: Staff respectfully requests Council consideration regarding the updated 2021 Albertville Fire Relief Association Bylaws. MOTION TO: Approve the 2021 Albertville Fire Relief Association Bylaws. BACKGROUND: The Albertville City Council authorized the current Albertville Fire Relief Association Bylaws on 4/20/2020. There are two minor Bylaw updates which required Relief Board, and now subsequent City Council, approval. 1. On July 2, 2020, the Albertville Fire Relief Association Board voted to reduce the annual salaries for the Secretary and Treasurer from $600 to $599. This voluntary reduction removed the need for the Association to complete a 1099 Reporting Form for the positions. The Board vote was unanimous; however, the Albertville Fire Relief Association Bylaws were not updated at the time. 2. On July 30, 2020, the Albertville Fire Relief Association Board voted unanimously to authorize an Annual Retirement Benefit increase from $2800 to $3200 per year of service. The City Council approved the Annual Retirement Benefit increase, and resulting Resolution, on August 17, 2020. The Albertville Fire Relief Association Bylaws were not updated at the time. On February 4, 2021,the Albertville Fire Relief Association Board met and unanimously approved both of the above changes to the Albertville Fire Relief Association Bylaws. The changes can be found in Attachment A and Attachment B (Pages 27 and 27) of the enclosed Albertville Fire Relief Association Draft Bylaws. If approved by Council, the draft bylaws will become effective immediately. POLICY/PRACTICES CONSIDERATIONS: It is the City's policy for Council to review and approve policies as they deem necessary. Responsible Person/Title: Eric Bullen, Fire Chief Submitted Through: Adam Nafstad, City Administrator-PWD Attachment: 2021 Albertville Fire Relief Association Draft Bylaws Agenda Page 10 P��ERT V►��� • F R E F 4SSOCIAOT10# ALBERTVILLE FIRE RELIEF ASSOCIATION BYLAWS EFFECTIVE 02/17/2021 Agenda Page 11 BYLAWS OF THE ALBERTVILLE FIRE RELIEF ASSOCIATION ARTICLE I - NAME Section 1 — NAME. The name of this relief association is the Albertville Fire Relief Association (Association), also doing business as the Albertville Fireman's Relief Association. It is a nonprofit organization incorporated under the laws of Minnesota. Section 2—TYPE. The Association is a defined-benefit lump-sum relief association subject to Minn. Stat. §§ 424A.015; 424A.02; and 424A.091 to 424A.094.1 All benefits provided by this Association derive from and are governed by Federal and State laws and these bylaws. Section 3 — BOOKS AND RECORDS.2 The Association will keep, at minimum, correct and complete copies of its articles of incorporation and bylaws, accounting records, records documenting Special Fund transactions, records necessary to determine benefits payable and paid to individual members and their beneficiaries, and minutes of each of its meetings that record the votes of actions taken. Unless a Records Retention Schedule is adopted, and the Minnesota Historical Society has been notified or authority to destroy records is received from the Records Disposition Panel, relief association records may not be destroyed. Section 4—PURPOSE. The Association is a governmental entity that receives and manages public money to provide retirement and ancillary benefits for individuals providing the governmental services of firefighting and emergency first response, and for their beneficiaries.3 Section 5 —FISCAL YEAR. The Association's fiscal year begins on January 1 of each calendar year and ends on December 31 of the same calendar year.4 1 Minn. Stat. §424A.002, subd. 2. 2 Minn. Stat. §§ 138.17;317A.461. 3 Minn. Stat. §424A_001, subd. 4. 4 Minn. Stat. §424A_001, subd. 11. Agenda Page 12 ARTICLE II - MEMBERSHIP Section 1 — MEMBERSHIP. All individuals who are members of the Albertville Fire Department (Fire Department), are engaged in or qualified to provide fire suppression duties, and who meet any additional standards established by the Fire Department or by the Association are eligible for membership in the Association. If the city has approved the employment on the Fire Department of volunteer firefighters to perform fire prevention duties and to supervise fire prevention duties, the personnel serving in fire prevention positions are eligible for membership in the Association and qualify for service pensions and other benefit coverage of the Association on the same basis as members who perform fire suppression duties.5 Section 2 — MEMBERSHIP START DATE.' Membership in the Association begins on the date the member becomes a paid-on-call/probationary firefighter. Section 3 —DUES. All dues of the Association membership will be paid from the General Fund. Section 4 — EXCLUSIONS.' The Association may exclude from membership an applicant who, due to some medically determinable physical or mental impairment or condition, would constitute a predictable and unwarranted risk of imposing liability for an ancillary benefit at any age earlier than the minimum age specified for receipt of a service pension. A minor may not be a member of this Association. Section 5 — TERMINATION. Any member may be terminated from the Association for cause by a two-thirds vote of all members present at a special meeting of the membership. Cause for termination includes,but is not limited to,failure to account for money belonging to the Association, or feigning illness or injury for the purpose of defrauding the Association. A member may not be terminated except by a fair and reasonable process. 5 Minn. Stat. §424A_01, subd. 5. 6 Minn. Stat. §424A_001, subd. 12. Minn. Stat. §424A_01. Agenda Page 13 Section 6 — ACTIVE SERVICE. Active service is the supervision or performance of fire suppression duties. If the city has approved the employment on the Fire Department of fire prevention personnel, active service includes the supervision or performance of fire prevention duties. If the city has approved the employment on the Fire Department of volunteer emergency medical personnel and if their membership in the Association is permitted in Section 1 of this Article, active service also includes the supervision or performance of emergency medical response duties. Active service requires meeting minimum service requirements specified by the Fire Department in the Fire Department's rules, regulations, and policies. Section 7 — CERTIFICATION OF SERVICE CREDIT.$ Annually, by March 31, the Fire Chief must certify the service credit for the previous calendar year of each member rendering active service with the Fire Department. The certification must be made to an officer of the Association and to the city clerk or clerk-treasurer. Section 8—DEFINITION OF YEAR OF ACTIVE SERVICE? A year of active service will be defined as 12 consecutive months of active service in the Fire Department from the paid-on-call/probationary firefighter start date. Section 9 — BREAK IN SERVICE. If a member is unable to perform the duties of a firefighter for any reason,for 60 days or more,including an approved leave of absence,the member will be considered to have a break in service and will not receive service credit in the Association for that period of time, except that the resumption service requirements of this Section do not apply to leaves of absence or breaks in service made available by Federal or State statute, such as the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), Minn. Stat. § 424A.021, and the Family and Medical Leave Act(FMLA), 29 U.S.C. § 2601, et al. Active membership in the Association immediately resumes when a member returns to active service with the Fire Department,if the member's break in service was less than 60 days.10 'Minn. Stat. § 424A.003. 9 Minn. Stat. §424A.02, subd. 1(a). io Minn.Stat.§424A.01, subd.6. Agenda Page 14 Section 10 — RETURN TO SERVICE.11 Any firefighter who has ceased to perform or supervise fire suppression and fire prevention duties for at least 60 days,or who has received payment of a service pension or disability benefit, will not be eligible to resume active membership in the Association should the firefighter resume active firefighting duties with the Fire Department. The firefighter will not be eligible to accrue any additional service credit with, or benefit from, the Association. If the firefighter attained the minimum service and membership requirements specified in these bylaws prior to the firefighter's break in service,the firefighter will retain the right to the benefit previously accrued,if the benefit has not been paid. Section 11 —UNIFORMED SERVICES.12 A volunteer firefighter who is absent from firefighting service because of service in the uniformed services may obtain service credit for the period of the uniformed service, not to exceed five years, unless a longer period is required by Federal law, if the volunteer firefighter returns within the time frame required by Federal law to firefighting service with coverage by this same Association or its successor upon discharge from service in the uniformed service. Service credit will not be given if the firefighter separates from uniformed service with a dishonorable or bad conduct discharge or under other than honorable conditions. X NJ 11 Minn. Stat. §424A.01, subd. 6. 12 Minn. Stat. §424A.021. In some instances service other than service with the Armed Forces may qualify. See 38 U.S.C. § 4303(13) ("service in the uniformed services"). Agenda Page 15 ARTICLE III - OFFICERS AND TRUSTEES Section 1 — THE POWERS OF THE BOARD OF TRUSTEES. The Board of Trustees (Board) is the governing board and has exclusive control of the investment of the Association's plan assets in conformance with Federal and State law including,but not limited to,Minnesota statutes and these bylaws. The members of the Board will act as Trustees, with a fiduciary obligation to the active, deferred, and retired members of the Association, who are its beneficiaries; the taxpayers of the municipality, who help to finance the plan; and the State of Minnesota, which established the plan.13 The Board will invest and reinvest the Association's plan assets, determine benefits, determine eligibility for membership or benefits, determine the amount or duration of benefits, determine the funding requirements or amounts of contributions, oversee the expenditure of plan assets, and select financial institutions and investment products.14 The Board will submit a written report of the financial condition of the Association to the members at the annual meeting. The Board will develop and periodically revise a program for continuing education.15 The Trustees will participate in continuing education to keep themselves abreast of their fiduciary responsibilities. Section 2 — MEMBERS OF THE BOARD OF TRUSTEES. The Board consists of nine members (Trustees): six Trustees elected by the membership and three Trustees drawn from officials of the city served by the Fire Department.16 Of the three municipal Trustees, one must be an elected official and one must be an elected or appointed municipal official, and both must be designated annually by the municipal governing board. The third municipal Trustee must be the fire chief. A vacancy in the position of a non-municipal Trustee will be discussed by the remaining Trustees at the next Board meeting. The remaining Trustees may determine that they wish to carry out the duties of the 13 Minn. Stat. §356A.04, subd. 1. 14 Minn. Stat. §356A.02, subd. 2. 15 Minn. Stat. §356A.13, subd. 2. 16 Minn.Stat.§424A.04, subd. 1. Agenda Page 16 vacant, non-municipal Trustee position themselves or decide to have a special meeting of the Association membership to elect an interim Trustee. In either situation,the vacancy will only exist,or the interim Trustee serve,until the next annual meeting of the Association membership when a successor will be elected by the membership. The non-municipal trustees will still only be allowed one vote. Section 3 — OFFICERS.17 The President, Vice President, Secretary, and Treasurer will be elected from among the elected Trustees by the Association membership for 2 year terms. The elections of the Trustees will be staggered. In no event will any Trustee hold more than one Officer Position at any one time. In no event will any municipal Trustee hold an Officer position. Section 4—PRESIDENT. The President will attend and preside at all meetings of the Association and the Board. The President will actively manage the business of the Association. The President will enforce the due observance of the law,including Minnesota statutes,the articles of incorporation,and the bylaws of the Association. The President will ensure that the Officers properly perform the duties assigned to them and that the orders and resolutions of the Board are carried into effect. The President, or Secretary,will co-sign all checks issued by the Treasurer and all other papers requiring the President's signature. The President will be a member of all committees and will exercise careful supervision over the affairs of the Association. The President will perform other duties as prescribed by the Board. Section 5 — VICE PRESIDENT. The Vice President may preside at all meetings and shall replace the President in the event of a vacancy. The Vice President shall call to order meetings in the event the President is absent. Section 6—SECRETARY. The Secretary will keep and post a true and accurate record of the proceedings of all meetings of the Association and of the Board. The Secretary will keep a correct record of all amendments, alterations, and additions to the bylaws in a book separate from the minute books of the Association. The Secretary will prepare all paperwork and obtain signatures required for benefits due. The Secretary, or President, will co-sign all checks issued by the Treasurer. The Secretary will keep individual files and a roll of membership,with the date of joining,resignation, discharge,retirement, dues, and service pensions and ancillary benefits paid. The books of the Secretary will be at all times open to the Board. The 17 Minn. Stat. §424A.04, subd. 1;see also Minn. Stat. §317A.305. Agenda Page 17 Secretary will prepare and process all correspondence as needed. The Secretary will, jointly with the Treasurer,prepare and file all reports, and statements required by law, including reports to be filed with the Office of the State Auditor(OSA). The Secretary will perform other duties as prescribed by the Board. Section 7—TREASURER. The Treasurer will,together with the Secretary,keep accurate financial records of the Association. The Treasurer will receive all monies belonging to the Association and deposit them in the name of and to the credit of the Association in the banks and depositories designated by the Board. The Treasurer will keep an account book in which to enter all money transactions of the Association, including the dates and amounts of all receipts and the source from which derived and the dates and the amounts of all expenditures with the payee and the object.The Treasurer will disburse funds and issue checks and drafts in the name of the Association as ordered by the Board. The Treasurer will keep separate and distinct accounts of the Special Fund and the General Fund,if applicable, and will prepare and present to the Board a full and detailed statement of the assets and liabilities of each fund separately,prior to the annual meeting of the Association, and upon requests of the Board. The Treasurer will deliver to the Treasurer's successor in office, or to any committee appointed by the Board to receive the same, all monies, books, papers, etc., pertaining to the Treasurer's term in office immediately upon the expiration of the Treasurer's term in office. The Treasurer will, prior to entering upon the duties of the Treasurer's office, give a bond in an amount equal to at least ten percent of the assets of the Association; however, the amount of the bond need not exceed $500,000.is Jointly with the Secretary, the Treasurer will prepare and file all reports and statements required by law, including reports to be filed with the Office of the State Auditor. The Treasurer will perform other duties as prescribed by the Board. Section 8 —COMPENSATION. Trustees of the Association identified in Attachment B may be paid a salary out of the Special Fund. The amount paid in salary is limited to the amount listed in Attachment B. Only after the amounts listed in Attachment B have been approved by the Albertville City Council may salaries be paid to non-Officer Trustees. For all Trustees, itemized expenses eligible for reimbursement are limited to those expenses incurred as a result of fulfilling responsibilities as administrators of the Special Fund. is Minn. Stat. §69.051, subd. 2. Agenda Page 18 ARTICLE IV - MEETINGS OF THE MEMBERS AND OF THE BOARD Section 1 — ANNUAL MEETING.19 An annual meeting of the membership of the Association will be held in December of each year, at a time and place specified by the Board. Section 2 —SPECIAL MEETINGS.20 A special meeting of the Association's members may be called at any time upon the written order of the President, Secretary, and one additional Trustee, or of twenty-five (25)percent,by signature request/petition, of the members of the Association. The Order will be filed with the Secretary. Section 3 —BOARD MEETINGS.21 A Trustee may call a Board meeting by giving five days' notice to all Trustees of the date,time, and place of the meeting.22 The Board will meet at least four(4)times during the year to discuss the investments, finances,benefits, records, and any other matter related to the business or affairs of the Association. These meetings will be open to any member of the Association and to the public. Section 4 — NOTICE OF ANNUAL MEETING.23 Notice of each annual meeting of the Association's members will be delivered to each member entitled to vote at the meeting at least five days before the date of the meeting and not more than 60 days before the date of the meeting. Notice will contain the date,time, and place of the meeting. Section 5 —NOTICE OF SPECIAL MEETINGS.24 Notice of each special meeting of the Association's members will be delivered to each member entitled to vote at the meeting at least five days before the date of the meeting and not more than 60 days before the date of the meeting. Notice will contain the date,time, and place of the meeting. The Secretary will give due notice of each special meeting, specifying the 19 Minn. Stat. § 317A.431. Your relief association may hold additional regular meetings during the year. Minn. Stat. § 317A.111, subd. 3(21). 20 Minn. Stat. §317A.433. 21 Minn. Stat. §§ 13D.04;317A231. 22 See Minn. Stat. §317A.231. 23 Minn.Stat.§13D.04;see also Minn.Stat.§317A.435. 24 See Minn. Stat. §§317A.433;317A.435(additional requirements regarding notice). Agenda Page 19 object(s) of said meeting, and no business will be transacted at any special meeting except the business for which the meeting was called. Section 6 — NOTICE OF BOARD MEETINGS. Notice requirements of the Minnesota Open Meeting Law will be followed for all Board meetings.25 A schedule of the Board's regular meetings will be kept on file at the Board's primary office.26 For special meetings (including any regular meeting held at a time or place different from the time or place stated in the schedule of regular meetings), the Board will post written notice of the date, time, place, and purpose of the meeting on the Board's principal bulletin board, or if the Board has no such bulletin board, on the door of its usual meeting room. The notice will also be emailed or delivered to each person who has filed a written request for notice with the Board. The notice will be posted and emailed or delivered at least three days before the date of the meeting.' If a meeting is a recessed or continued session of a previous meeting, and the time and place of the meeting was established during the previous meeting and recorded in the minutes of that meeting, then no further published or emailed notice is necessary.28 Section 7—QUORUM FOR ANNUAL AND SPECIAL MEETINGS. A majority of the members of the Association will constitute a quorum for the transaction of business at the annual or any special meeting of the Association. Section 8—QUORUM FOR BOARD MEETINGS.29 A majority of the Trustees will constitute a quorum for the transaction of business at the meetings of the Board. Section 9 —VOTING AT ANNUAL AND SPECIAL MEETINGS.30 Members of the Association are entitled to one vote. Voting by proxy is not permitted. All votes,unless specified prior to the vote, will be conducted by a voice vote. If a majority cannot be determined by voice vote, the Officer in charge of the 21 Minn. Stat. ch_ 13D. 26 Minn. Stat. § 13D.04, subd. 1. 27 Minn. Stat. § 13D.04, subd.2. 28 Minn. Stat. § 13D_04, subd. 4. 29 Minn. Stat. §317A.235. 30 Minn. Stat. §§317A.181, subd. 2;317A.441;317A.443. Agenda Page 20 vote will ask for a vote by roll call or by ballot. Section 10 — VOTING AT BOARD MEETINGS.31 The Board has a responsibility to vote on the investment and reinvestment of Association assets, the determination of benefits, the determination of eligibility for membership or benefits, the determination of the amount or duration of benefits, the determination of funding requirements or the amounts of contributions, the maintenance of membership and financial records, the expenditure of Association assets, the selection of financial institutions and investment products, and on any other matter related to the business or affairs of the Association. Trustees are entitled to one vote and each has equal rights. Voting by proxy is not permitted. All votes, unless specified prior to the vote, will be conducted by a voice vote. If a majority cannot be determined by voice vote, the Officer in charge of the vote will ask for a vote by roll call or by ballot. Section 11 —ORDER OF BUSINESS/BOARD AND ANNUAL MEETINGS. All Board Meetings, and the Annual Meeting of the members of the Association, will be conducted in the following order: 1. Call to order 2. Roll call 3. Reading and approval of minutes of previous meeting 4. Open Forum 5. Secretary's report 6. Treasurer's report 7. Committee reports 8. Unfinished business 9. New Board business 10. Adjournment Section 12 — ORDER OF BUSINESS/SPECIAL MEETING. Any Special Meeting of the members of the Association will be conducted in the following order: 1. Call to order 2. Roll call 3. Discussion of identified object(s) 4. Vote—If Applicable 31 Minn. Stat. §§317A201;356A.02, subd. 2. Agenda Page 21 5. Adjournment ARTICLE V - APPLICATION FOR PENSIONS AND BENEFITS Section I — NOTICE OF INTENT TO TAKE DISTRIBUTION. Each member who intends to take distribution of a service pension, including a deferred service pension, from the Association must file a Notice of Intent to Take Distribution. Such Notice of Intent to Take Distribution will be in writing, and will be filed with the Secretary. Upon receipt of the Notice of Intent to Take Distribution,the Secretary will provide to the applicant an Application for Distribution and any forms or notices required by Federal or State law. No Notice of Intent to Take Distribution is required for ancillary benefits. Section 2 — PROCESS. Each person who intends to take distribution of a service pension, including a deferred service pension or an ancillary benefit from the Association must file an Application for Distribution. The Secretary will provide to the applicant the Application for Distribution and any forms or notices required by Federal or State law. All Applications for Distribution will be submitted to the Board for approval at a Board meeting. Applications for Distribution will state the age of the member,the period of service, the date of separation from active service with the Fire Department, and any other information the Board may require. No service pension, including any deferred service pension, or ancillary benefit will be paid until the Application for Distribution has been approved by a majority vote of the Board. Section 3 — GOVERNING BENEFIT PLAN PROVISIONS. All service pensions, deferred service pensions, and ancillary benefits payable by the Association are governed by and must be calculated based on the State law, the Association bylaw provisions, and the Association articles of incorporation that are in effect on the date that the member separates from active service with the Fire Department and active membership in the Association.32 32 Minn. Stat. §424A.015, subd.6. Agenda Page 22 ARTICLE VI - SERVICE PENSIONS Section 1 — LUMP-SUM SERVICE PENSIONS. Upon the member's meeting the requirements in Section 2 of this Article and following the submission and approval of an Application for Distribution, the Association will pay the member out of the Special Fund the benefit level for each year that the member served as an active member of the Fire Department. The benefit level amounts can be found in Attachment A. A reduced service pension may be paid according to the partial vesting schedule contained in this Article. Section 2 — ELIGIBILITY.33 To receive a service pension, a member must meet all of the following requirements: 1. Have separated from active service with the Fire Department; 2. Be at least fifty (50) years of age; 3. Be partially vested by having completed at least ten (10) years of active service with the Fire Department or be fully vested by having completed at least 20 years of active service with the Fire Department. Section 3—DEFERRED STATUS. A member who has otherwise met the eligibility requirements defined in Section 2 of this Article but who has not yet reached the age of eligibility specified in Section 2 may not collect a service pension at the time of separation from active service. The member will be placed on deferred status and be entitled to receive the service pension upon reaching the age of eligibility specified in Section 2 and following submission and approval of an Application for Distribution. A member who has met the eligibility requirements defined in Section 2 of this Article and who has reached the age of eligibility in Section 2, but who chooses not to immediately submit an Application for Distribution following the member's separation from active service will be placed on deferred status and be entitled to receive the service pension following submission and approval of the Application for Distribution. 33 Minn. Stat. §424A.02, subd. 1. Agenda Page 23 Section 4—PARTIAL VESTING SCHEDULE:34 Completed Years of Service: Nonforfeitable percentage of pension amount: 10 60% 11 64% 12 68% 13 72% 14 76% 15 80% 16 84% 17 88% 18 92% 19 96% 20 and thereafter 100% Section 5 — PAYMENT OPTIONS. The retiring member may elect, by making a written request, the manner of payment of the service pension. Options include: (a)A single lump-sum payment payable to the retiring member(subject to current income tax withholding requirements). (b) An annuity contract purchased with a lump-sum payment on behalf of a retiring member from an insurance carrier licensed to do business in the State of Minnesota.35 (c) A direct transfer on an institution-by-institution basis of the retiring member's lump-stun payment to the member's individual retirement account(IRA).36 (d) A direct transfer on an institution-by-institution basis of the retiring member's lump-sum payment to the member's individual Minnesota deferred compensation plan.37 s4 Minn. Stat. §424A.02, subd. 2. ss Minn. Stat. §424A.015, subd. 3. se Minn.Stat.§424A.015,subd.4(Your relief association must be"a qualified pension plan under Section 401(a)of the Internal Revenue Code, as amended...."); IRC§408(a). 37 Minn. Stat. §424A.015, subd. 5. Agenda Page 24 Section 6—SUPPLEMENTAL BENEFIT.38 A supplemental benefit will be paid out of the Special Fund to individuals who receive a lump-sum distribution of a service pension. The amount of the supplemental benefit to be paid is ten percent of the regular pre-tax lump-sum distribution, excluding any interest that may have been credited during the period of deferral, but not to exceed $1,000. ARTICLE VII — DEFERRED INTEREST Section 1 —DEFERRED INTEREST TYPE.39 No interest will be paid during the period of deferral on a deferred lump-sum service pension. 38 Minn. Stat. §424A.10. 39 Minn. Stat. §424A.02, subd. 7. Agenda Page 25 ARTICLE VIII - ANCILLARY BENEFITS Section 1 — SURVIVOR BENEFIT.40 Upon the death of a member of the Association and following the submission and approval of an Application for Distribution, a survivor benefit will be paid out of the Special Fund to the member's surviving spouse;if there is no surviving spouse,to the member's surviving children; if there is no surviving spouse and there are no surviving children, to the member's designated beneficiary. If no beneficiary has been designated and if the deceased member was active or deferred, the survivor benefit will be paid as a death benefit to the estate of the deceased member. If there are no surviving children,the member's surviving spouse may waive, in writing,wholly or partially, the spouse's entitlement to a survivor benefit, so that the survivor benefit may be paid directly to the member's designated beneficiary. A trust created under Chapter 501B may be a designated beneficiary if the survivor benefit will be distributed as a one-time lump-sum payment. If a trust was created and is payable to the surviving children and there is no surviving spouse, the survivor benefit will be paid to the trust. For active members, a survivor benefit equal to the benefit level for each year that the member served as an active firefighter in the Fire Department,without regard to minimum or partial vesting requirements,but in no case less than five times the benefit level in effect on the date of the death, will be paid if, upon death, the member had not yet separated from active service. The benefit level can be found in Attachment A. Payment of a survivor benefit on behalf of a deceased deferred member is not authorized. Section 2—SUPPLEMENTAL SURVIVOR BENEFIT.41 A supplemental survivor benefit will be paid out of the Special Fund when a lump-sum survivor benefit is paid to the surviving spouse or,if none,to the surviving child or children of a deceased active or deferred member. The amount of the supplemental survivor benefit to be paid is 20 percent of the survivor benefit, but not to exceed$2,000. Section 3 — NO ADDITIONAL FINANCIAL RELIEF. Except for the relief expressly identified for 40 Minn. Stat. §424A.02, subd. 9. ai Minn. Stat. §424A.10. Agenda Page 26 survivors in these bylaws, a member or former member's surviving spouse, child or children, designated beneficiary, and/or estate are not entitled to any other or further relief or benefits from the Association. Section 4—DISABILITY BENEFIT.42 Permanent disability benefits maybe paid to permanently disabled members of the Association out of the Special Fund following the submission and approval of an Application for Distribution. For active members, a permanent disability benefit equal to the benefit level for each year that the member served as an active firefighter in the Fire Department, without regard to minimum or partial vesting requirements,will be paid if,upon the date of permanent disability,the member has not yet separated from active service. The benefit level can be found in Attachment A. The years of service must be determined as of the date of disability. The member is eligible to receive the disability benefit immediately upon approval by the Board. Payment of a permanent disability benefit to a deferred member is not authorized. Temporary disability benefits are not provided by this Association. Section 5—DISABILITY BENEFIT QUALIFICATION. A member who is permanently disabled from being an active member in the Albertville Fire Department shall be eligible for a disability benefit in lieu of retirement. Upon approval of the Board of Trustees pursuant to this section the disability benefits will apply: A member who is totally and permanently disabled shall be eligible to collect a disability benefit in an amount equal to the benefit level in effect on the date of disability per year of active service. The member shall be eligible to receive the disability benefit immediately upon approval of the Board of Trustees. (a) Any such disability benefit paid in accordance with this section shall be in lieu of all rights to further service pension and survivor's benefit. (b) A total and permanent disability is defined as the inability of an active member to engage in performance of their duties as a firefighter by reason of a medically determinable physical or psychological impairment which can be expected to last for a continuous period of not less than twelve months or can be expected to result in death. (c) Reports required. No member shall be paid disability benefits except upon the written report of a physician or chiropractor of the member's choice. This report shall set forth the diagnosis and prognosis of the disability,disease or injury of the member. Each such report shall be filed with the Association. (d) Procedure. All applications for disability benefits shall be made within six months after such applicant has ceased to be an active member of the fire department. Written application shall be made to the Board setting out the nature and cause of such disability. This application shall be under oath by the member or his or her immediate family. The application shall be tabled until the next meeting so that the applicant may be examined by a physician or chiropractor of the member's choice, at the member's expense. The physician or chiropractor will submit a 4z Minn.Stat.§§424A.02,subd.9;424A.05,subd.3. Your relief association should consult an attorney for assistance in defining what it means to be temporarily or permanently disabled. Agenda Page 27 written opinion concerning the diagnosis and prognosis of the applicant's permanent disability and its probable duration. The Board of Trustees has the discretion to request that another doctor, selected by the Board, examine the patient, at the Board's expense. Final determination of disability will be based on the reports of at least one doctor and by a 2/3 majority of the Board of Trustees present at the subsequent Association meeting. (e) An applicant shall not be considered under a disability unless they furnish adequate proof of the existence thereof. An applicant's statement as to pain or other symptoms will not alone be conclusive evidence of disability as defined in this section. (f) Grievance Procedure. If the applicant for disability benefits feels they have been aggrieved by any action of the Board, they shall, within sixty (60) days from notice of such action of the Board, file written objections and the reasons thereof with the Board and shall be allowed to appeal the determination pursuant to the review procedure in these bylaws. Section 6—PAYMENT OPTIONS. The recipient of an ancillary benefit may elect, by making a written request,the manner of payment of the ancillary benefit. Options include: (a) A single lump-sum payment payable to the intended recipient(subject to current income tax withholding requirements). (b) A direct transfer on an institution-by-institution basis of the lump-sum survivor benefit to the active member's surviving spouse's individual retirement account(IRA).43 (This option is available to certain recipients of a survivor benefit.) "Minn.Stat.§424A.015,subd.4(Your relief association must be"aqua I if ied pension plan under Section 401(a)of the Internal Revenue Code, as amended...."); IRC§408(a). Agenda Page 28 ARTICLE IX - FUNDS Section 1 —FUNDS.44 The Association will establish and maintain a Special Fund and a General Fund.45 Section 2—SPECIAL FUND.46 All public funds, such as fire state aid, supplemental state aid, municipal contributions, and supplemental benefit reimbursements, received by the Association will be deposited in the Special Fund. Disbursements from the Special Fund will not be made for any purpose except as authorized by Minn. Stat. §§ 69.80 and 424A.05. The Treasurer is the custodian of the assets of the Special Fund and the recipient on behalf of the Special Fund of all revenues payable to it. The Treasurer will maintain adequate records documenting all transactions involving the financial activities of the Special Fund. Checks or authorizations for electronic fund transfers for disbursement of Special Fund assets must be signed by the Association Treasurer and at least one other elected Association Trustee who has been designated by the Board to sign the checks or authorizations. The Association may only make disbursements by electronic fund transfers if the specific method of payment and internal control policies and procedures regarding the method are approved by the Board.47 Section 3 — GENERAL FUND. 48 Money received from any nonpublic source, such as fundraising activities and donations,will be deposited into the General Fund. Funds may be disbursed by the Board for any purpose authorized by the articles of incorporation or by these bylaws. Such purposes include, items signified in Attachment C. All Association expenses not specifically authorized by State statute to be paid out of the Special Fund must be paid out of the General Fund. The Treasurer is the custodian of the assets of the General Fund and the recipient on behalf of the General Fund of all revenues payable to it. The Treasurer will maintain adequate records documenting any 44 Charitable Gambling funds are outside the scope of this sample bylaw guide. 45 Minn. Stat. §424A.06. 4e Minn.Stat.§§69.80;424A.05. 47 Minn. Stat. §424A.05, subd. 3. 48 Minn.Stat.§424A.06. Agenda Page 29 transactions involving the financial activities of the General Fund. Section 4—NONASSIGNABILITY OF BENEFITS.49 Benefits paid or payable from the Special Fund are not subject to garnishment, judgment, execution, or other legal process, except as provided in Minn. Stat. §§ 518.58; 518.581; or 518A.53. Benefits paid or payable may not be assigned for any purpose. 49 Minn. Stat. §424A.015, subd.2. Agenda Page 30 ARTICLE X - INVESTMENTS Section 1 — STANDARD OF FIDUCIARY CONDUCT.50 Trustees owe a fiduciary duty to the active, deferred, and retired members of the Association, who are plan beneficiaries; to the taxpayers of the municipality, who help finance the plan; and to the State of Minnesota, which established the plan. The Trustees will act in good faith and exercise that degree of judgment and care, under circumstances then prevailing, that persons of prudence, discretion, and intelligence exercise in the management of their own affairs,not for speculation,considering the probable safety of plan capital as well as the probable investment return to be derived from the assets. Section 2—INVESTMENT POLICY. The Board will approve an investment policy, and will investigate and prepare for the safe and profitable investment of Association funds in conformance with State statutes and the Association's investment policy. The Board may hire investment professionals to act for or on its behalf. The Special Fund assets will be invested only in securities that are authorized by Minn. Stat. §§ 69.775; 356A.06, subd. 6; and 356A.06, subd. 7. The Board will have on file a copy of the investment policy of the Association. The Board will file a copy of the Association's investment policy, and all changes to the policy,with the Office of the State Auditor.51 ffi Section 3—BROKER CERTIFICATION.52 The Association will provide annually to its broker a written statement of investment restrictions from the applicable State laws and from the Association's investment policy. Annually,before the Association enters into or continues business with the broker,the broker must submit to the Association a signed Broker Certification, using the form prepared by the Office of the State Auditor. so Minn.Stat.§356A.04. 51 Minn. Stat. §356.219,subd.3(a). sz Minn.Stat.§356A.06, subd.8b. Agenda Page 31 ARTICLE XI - UNCLAIMED BENEFITS Section 1—UNCLAIMED BENEFITS.53 In the event that the Association is unable with reasonable effort to locate a member or a survivor of a member entitled to payment or distribution under these bylaws or by State law, the benefit distributable to such member or survivor of such member will be forfeited and will be credited to the Special Fund. Efforts to locate a member or survivor must be documented. Forfeiture will occur no earlier than thirty-six (36) months after the Board concludes the Association was unable to locate such member or survivor despite reasonable efforts to locate them. 13 If an Association's bylaws do not address the disposition of unclaimed benefits,unclaimed benefits must be handled as set forth in Minn. Stat. § 356.65. Agenda Page 32 ARTICLE XII -AMENDMENTS, CONSOLIDATION, AND DISSOLUTION Section 1 — AMENDMENTS.54 These bylaws may be amended when necessary by a majority of the members of the Board. Proposed amendments will be submitted to the Secretary to be posted with regular Board announcements. Amendments to these bylaws which affect the amount of, the manner of payment of, or the conditions for qualification for service pensions,deferred service pensions,or ancillary benefits are not effective until they have been ratified by the Albertville City Council.55 The Association will file a revised copy of these bylaws with the Office of the State Auditor upon the adoption of any amendments.56 Section 2—CONSOLIDATION. A consolidation of the Association with one or more volunteer fire relief associations may be initiated pursuant to Minn. Stat. § 424B.02, subds. 1 and 2, and will comply with the process set forth in and the requirements of Chapter 424B. Section 3—DISSOLUTION. Prior to dissolution of the Association,all legal obligations of the Association other than service pensions and benefits must be settled under Minn. Stat. § 424B.2, subd. 3, a benefit trust must be established under subdivision 4, and the affairs of the Association must be concluded under subdivision 5.57 Z, -Iqllo 54 Minn. Stat. § 317A.181. 55 In certain circumstances,bylaw amendments which affect service pensions,deferred service pensions,or ancillary benefits do not require City ratification to become effective. See Minn. Stat. §424A.02, subd. 10. 56 Minn. Stat. §424A.02, subd. 10. 57 Minn. Stat. §42413 20,subd.2. Agenda Page 33 BYLAWS These bylaws are hereby adopted and approved by the members of the Albertville Fire Relief Association on this 17'h day of February, 2021. date: President date: Secretary date: Treasurer Agenda Page 34 AMENDMENTS These amendments to the bylaws are hereby adopted and approved by the members of the Albertville Fire Relief Association on this 17th day of February, 2021. date: President date: Secretary date: Treasurer Agenda Page 35 ATTACHMENT A - BENEFIT LEVEL BENEFIT LEVEL DATE APPROVED BY DATE RATIFIED BY EFFECTIVE DATE AMOUNT RELIEF CITY ASSOCIATION $2,400 l/l/2015 $2,600 4/6/17 11/20/17 1/1/2018 $2,800 3/28/19 4/1/19 4/l/2019 $3,200 7/30/2020 8/17/2020 l/l/2021 Agenda Page 36 ATTACHMENT B - COMPENSATION TRUSTEE SALARY President(Officer) $300 Secretary (Officer) S640 599 Treasurer(Officer) S609 599 Trustee 94 $0 Trustee #5 $0 Trustee 96 $0 Trustee 97 $0 Trustee #8 $0 Trustee 99 $0 Agenda Page 37 ATTACHMENT C — Approved Payouts These listed payouts have been approved by the Albertville Fire Relief Association members throughout each year and no voting is necessary to payout, unless amounts are changed. 1. Approved—Paid on Call members, Department Jacket up to $200 2. Approved—Monthly Business Meeting, Food allowance up to $150 3. Approved - $300 gift for any member separating from service with between 10 and 20-years of service 4. Approved - $500 gift for any member separating from service with over 20-years of service 5. Approved—Invitation to the next Annual Holiday Fire Department Party for any member, and their family,who separates from service with over 10-years of service. Agenda Page 38 Nlbertvillf: Mayor and Council Request for Action 5-111,..firing.®Pg City III... February 16, 2021 SUBJECT: CONSENT-FIRE -AUTHORIZE A FIRE DEPARTMENT BOARD OF OFFICERS APPOINTMENT RECOMMENDATION: It is respectfully requested that the Mayor and City Council authorize the following: MOTION TO: Authorize a new appointment to the Fire Department Board of Officers. BACKGROUND: The Fire Department has gone through a promotional process to fill one vacancy in the Board of Officers. The Fire Department promotional process is outlined in Section 4.3.1 (Board of Officer Appointments) of the Albertville Fire Department's (AFD) Standard Operating and Response Guidelines, and includes: • Application Scoring • Call % Review • Activity Time Review • Peer Evaluation • Written Test • Interview Panel o The Lieutenant Interview Panel included the Chief Officers from the AFD After the completed promotional process, the following candidate ranked first and the Fire Department requests their appointment: Lieutenant= Gerald Gerads Current Firefighter, Gerald Gerads,has the following background and experience as it relates to the Lieutenant position: • Currently 10-years as an AFD member o Served 5-years as a City Employee Reserve Firefighter • Certifications in: o Fire Fighter I, Firefighter II, Haz-Mat Operations, Fire Apparatus Operator, Fire Instructor I,Youth Fire Setter Prevention and Intervention Specialist • FEMA Certifications in: o ICS 100/ ICS 200 /ICS 700 • Professional License: o Minnesota Board of Firefighter Training and Education - Firefighter License o Minnesota Department of Health - Water Supply Systems Operator—Level D Agenda Page 39 Mayor and Council Request for Action—February 16,2021 Authorize Fire Department Board of Officer Appointment Page 2 of 2 KEY ISSUES: • The Fire Department has gone through a promotional process to fill a vacancy in the Board of Officers. • The AFD member has finished first in their promotional process. • If approved,the appointment will become effective on Wednesday, February 17, 2021. FINANCIAL CONSIDERATIONS: The salaries associated with the appointment is part of the approved 2021 operational budget of the Fire Department. LEGAL ISSUES: The City Council has the authority to approve new positions and hire personnel. Submitted By: Eric Bullen,Fire Chief Submitted Through: Adam Nafstad, City Administrator-PWD Agenda Page 40 �lbcrtvillc Mayor and Council Request for Action February 16, 2021 SUBJECT: CONSENT-CITY CLERK—THE HEN AND THE HOG LIQUOR LICENSE FOR ON-SALE WINE AND 3.2% MALT LIQUOR RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve an On-Sale Wine and 3.2%Malt Liquor for The Hen and The Hog LCC dba The Hen and The Hog located at 5262 Kyler Avenue NE, Suite 111, contingent upon a successful background check. BACKGROUND: The Hen and Hog has been operating at the Shoppes of Prairie Run for a couple of months and is now interested in serving beer and wine at their restaurant. The applicants, Ms. Rebecca Dallin and Ms. Amanda Frank, have completed the appropriate forms for a new liquor license. KEY ISSUES: • The applicants have provided the license fee and proof of liquor liability insurance. • Background checks on the applicants have been sent to the MN Bureau of Criminal Apprehension and the Wright County Sheriff's Office. • The applicants have completed the appropriate City and MN Alcohol and Gambling Enforcement Department (AGED)forms. Upon City Council approval, the license applications must be approved by AGED. • The applicants are interested in liquor sales on their patio and will follow City Code Section 4-1-13 regarding outdoor liquor sales. • There are no outstanding building or fire code violations at the property. • The combination of the 3.2%Malt Liquor and Wine license will allow the applicants to serve strong beer. POLICY/PRACTICES CONSIDERATIONS: The Mayor and City Council have the authority to either approve or deny a liquor license application. FINANCIAL CONSIDERATIONS: The fee for this liquor license can be pro-rated due to a partial year license and is nominal. Responsible Person/Department: Kris Luedke, City Clerk Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: The liquor license application is on file in the City Clerk's Office and is available up request. Agenda Page 41 �lbcrtvillc Mayor and Council Request for Action February 16, 2021 SUBJECT: PLANNING—ADVANCED VOLUMETRIC ALLIANCE INDUSTRIAL FINAL PLAT,PLANS AND CONDITIONAL USE PERMITS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Adopt Resolution No. 2021-009 approving the final plat entitled Advanced Volumetric Alliance (AVA) addition and final site and building plans, and the Conditional Use permits for outdoor storage and outdoor product display on Lot 1, Block 1 AVA Addition based on the final plat and plans dated January 11, 2021. MOTION TO: Approve the Development Agreement/Conditional Use Agreement between Advanced Volumetric Alliance (AVA) and the City of Albertville BACKGROUND: On January 4,2021,the Albertville City Council approved the zoning and development applications for Advanced Volumetric Alliance (AVA)necessary to allow the construction of a 178,000+ square foot manufacturing plant upon an approximate 33-acre site located in the extreme northwest comer of Albertville, south of 70th Street and east of Kadler Avenue with conditions to be met with final plat and final development plans. At this time,the applicant has requested final plat approval of the AVA Addition which consists of one lot(Lot 1, Block 1) and 3 outlots and approval of the revised development plans that are in response to the January 4, 2021, Council resolution outlining the conditions of approval. KEY ISSUES: • The City approved a Comprehensive Plan amendment changing the proposed 2030 Land Use Plan to guide the subject site for an Industrial Land Use. • The City approved an amendment to the Albertville zoning map to change the zoning for the land west of the proposed Karmen Avenue from B-2A to I-2. • The City approved the AVA Preliminary plat, site and building plans, and CUPS for outdoor storage and outdoor display on January 4, 2021 with conditions outlined in the December 2, 2020 planning report and December 1, 2020, Engineer memorandum. • The January 26, 2021,planning report reviewed the final plat and development plans dated January 11, 2021, against the January 4, 2021, and outlined conditions of approval of the final plan and development plans. POLICY/PRACTICES CONSIDERATIONS: With the January 4, 2021, actions of the Albertville City Council, the proposed final plat and revised development plans are consistent with the City's Comprehensive Land Use Plan and the proposed I-2 zoning. The final plat is generally consistent with the approved preliminary plat and Agenda Page 42 Mayor and Council Request for Action —February 16, 2021 AVA Final Plat and Final Development Plans Page 2 of 2 its conditions of approval. The final plat and plan approval will include conditions to be met and included in the project development agreement. FINANCIAL CONSIDERATIONS: As part of the development,the applicant is requesting financial assistance from the City in the form of Tax Increment Financing and sponsoring of Deed grant applications. The City Council will determine the extent of financial assistance through its consideration of the TIF plan and DEED resolution. If approved, the City will financially contribute to this plat and site improvements as a means of promoting the industrial park development, creation of local job opportunities and expanding the City's industrial tax base. LEGAL CONSIDERATIONS: The City will require a development contract with the approval of the final plat and development plans that will outline the development responsibilities of both the City and developer and will insure that the plans and approvals are adhered to. Department/Responsible Person: Alan Brixius, City planning Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: January 26, 2021 Planning Report and Exhibits Resolution No. 2021-009 Developer's Agreement Agenda Page 43 NORTHWEST ASSOCIATED CONSULTANTS , INC, jo� 4150 Olson Memorial Highway, Ste. 320, Golden Valley, MN 55422 Telephone: 763.957.1100 Website: www.nacplanning.com MEMORANDUM TO: Adam Nafstad FROM: Alan Brixius DATE: January 26, 2021 RE: Albertville - AVA Addition Final Plat FILE: 163.06 - 20.05 BACKGROUND On January 4, 2021 , the Albertville City Council approved the following applications of Advanced Volumetric Alliance (AVA) necessary to allow the construction of a 137,000 square foot manufacturing plant upon an approximate 33-acre site located in the extreme northwest corner of Albertville, south of 70t" Street and east of Kadler Avenue. • Comprehensive Plan Amendment • Rezoning • Preliminary Plat (AVA Addition) • Site and Building Plan Review • Conditional Use Permits (for outdoor storage and display) At this time, the applicant has requested final plat approval of the AVA Addition which consists of one lot (Lot 1, Block 1) and 3 outlots. The revised development plans attempt to respond to the January 4, 2021 conditions of approval. Attachments: Exhibit A: Site Location Map Exhibit B: Approved Preliminary Plat Exhibit C: Final Plat Exhibit D: Overall Site Plan Exhibit E: Site Plan - AVA Exhibit F: Grading Plans Exhibit G: Utility Plans Exhibit H: Landscape Plans Agenda Page 44 ISSUES AND ANALYSIS Zoning. In conjunction with the consideration of the preliminary plat application, the City Council approved the rezoning of the subject 66-acre property from B-2A, Special Business District to I-2, General Industrial. Such zoning change is necessary to accommodate the proposed use. To be noted is that the zoning map change will not occur until the final plat is formally approved and recorded and the development agreement is executed. Final Plat Street Name. The plat shows the street extending north from 671" Street to 701" Street as Keystone Avenue; however, this street does not align with the existing Keystone cul- de-sac to the south. Due to this misalignment, a condition of approval shall be to relabel "Keystone Avenue NE" to "Karmen Avenue NE on the final plat. Conditions of Preliminary Plat Approval. At their January 4, 2021 meeting, the City Council approved the AVA Addition preliminary plat subject to the following conditions. In consideration of the final plat application, a determination should be made that the conditions of preliminary plat approval have been satisfied. The following is a listing of the various conditions of preliminary plat approval followed by a Staff response (based on the final plat plan set dated January 11 , 2021). 1. Kadler Avenue and '�e�z Karmen Avenue must be designed and constructed to City standards for an urban industrial street. Staff Comment. As a condition of final plat approval, a determination should be made by the City Engineer that Keystene Karmen Avenue are designed in accordance with City standards for urban industrial streets. The applicant does not wish to construct Kadler Avenue and will pursue an assessment agreement for its future construction. 2. KadierandKeystene Karmen Avenues shall be constructed as described in conditions 3 and 4 as follows with the AVA project. No building occupancy permit shall be issued until these streets are complete. Staff Comment. See comments on 3 and 4 below. 3. Kadler Avenue must be constructed as an urban industrial street. The street will need to be a 10-ton urban design, 44-foot-wide bituminous street terminating in a cul-de-sac have a 45-foot radius. If the Developer acquires the single-family home adjoining the southwest corner of the plat, the cul- de-sac can be located immediately south of the Lot 1 Block 1 AVA Addition's north entrance on to Kadler Avenue. If Developer does not acquire the single-family home in the southwest corner of the plat, 1 Agenda Page 45 Developer shall construct Kadler as a 10-ton urban design, 44-foot-wide street from 70t" Street to Lot 1 Block 1 AVA Addition's north entrance to Kadler Avenue, and thereafter construct a 22-foot wide, 10-ton rural design bituminous road down the south line of the AVA Addition, where a cul-de- sac with a 45-foot radius shall be constructed. The construction of Kadler Avenue to a full urban industrial design may be waived if the Developer enters into a development contract with the City that includes waiver of an assessment appeal for the future construction of Kadler Avenue. Staff Comment. The applicant does not wish to construct Kalder Avenue at this time, rather choosing to pursue an assessment agreement as part of the Development Contract. Under this option the following conditions will be imposed. • The Site plan will be revised to eliminate the gates and access onto Kalder Avenue. No Kadler Avenue access shall be provide to Lot 1, Block 1 , AVA Addition until Kalder is constructed to an urban industrial street standard. • The applicant shall enter into a development contract with the City that includes a waiver of assessment appeal for 100% of costs associated the construction of Kadler Avenue which will be levied against lot 1 , Block 1 AVA Addition. • The City shall determine when Kadler Avenue will be improved. Staff has not received any information related to the applicant's potential acquisition of the single-family home (exception) located near the southwest corner of the plat. 4. If Kadler is constructed to the design in accordance with condition number 3 above; KeystenKarmen Avenue will be constructed from the current end of 67t" Street to the northern access of Lot 1 Block 1 AVA Addition where a 45-foot temporary cul-de-sac will be constructed. If Kadler Avenue construction is waived; Keystone Avenue shall be constructed for the full length between 67t" Street and 70t" Street. Staff Comment. Karmen Avenue shall be constructed between 671" Street and 70th street per the construction plans to full urban industrial street standards as approved by the City Engineer. 5. The intersection of Keystone Karmen Avenue and 70t" street must be coordinated with the City of Otsego to create a full intersection. Staff Comment. Otsego has given verbal approval of the proposed intersection location. Written documentation of this approval will be pursued. 2 Agenda Page 46 6. The preliminary plat is revised to provide a 70 foot right-of- way dedication along Kadler Avenue. Staff Comment. As required, the final plat illustrates a 70-foot right-of-way dedication along Kadler Avenue. 7. The preliminary plat must provide a dedicated cul-de-sac right-of-way at the southern boundary of the plat. The length of the street may be reduced if the exception property south of the plat is acquired and included with the plat. Staff Comment. The final plat does not illustrate a cul-de-sac at the southern terminus of Kadler Avenue. The final plat shall be revised to provide additional right-of-way for a cul-de-sac on Kadler Avenue at the plat's southern boundary. The right-of-way dedication for Kadler Avenue cul-de-sac shall be 90 feet from centerline of Kadler Avenue; beginning at the plat's south property line and extending north 60 feet, after which the right- of—way shall be 70 feet wide. The final plat document shall be revised to show this additional right-of-way. The site plan shall be revised to provide required setback, and screening of the outdoor storage area in the west portion of Lot 1 , Block 1 AVA Addition. The site plan shall also remove the gates and driveway access to the Kadler Avenue. 8. Developer shall be responsible for off- site improvements identified by the traffic study. Staff Comment. This shall remain a condition of final plat approval and will be subject to further comment by the City Engineer. 9. Applicant shall provide anticipated travel routes and travel times for approval by City Council. The wide load hauling shall avoid A.M. and P.M. peak traffic hours to prevent traffic conflicts with motorists. Staff Comment. The applicant shall provide written plan outlining travel times and anticipated travel routes for large trucks leaving the site to avoid conflicts with peak hour commuter traffic. The travel times shall become part of the development contract. 10.Street design and issues shall comply with the City Engineer Memorandum dated December 1, 2020. All street plans shall be subject to review and approval of the City Engineer. Staff Comment. As a condition of final plat approval, all street plans shall be subject to review and approval by the City Engineer. 11.Outlot C of the AVA Addition does not have required lot width and street frontage. No building permits or development applications shall be issued 3 Agenda Page 47 for Outlot C until such time as it is platted into a lot and block compliant with the Albertville Subdivision and Zoning Codes. Staff Comment. As a condition of final plat approval, no building permits or development applications shall be issued for Outlot C until such time as it is platted into a lot and block compliant with the Albertville Subdivision and Zoning Codes this shall be outlined in the development contract and recorded against the property. 12. The applicant shall provide a wetland mitigation plan that identifies the replacement of any impacted wetlands. Staff Comment. As a condition of final plan approval, a wetland mitigation plan must be submitted subject to review and approval by the City Engineer. 13. 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 outlots and dedicated to the City. Staff Comment. Wetlands and their buffer areas along the north and south sides of Lot 1, Block 1 are proposed to be located within outlots. 14. Wetland and buffer areas located in any of the outlots shall be covered with drainage and utility easements and dedicated to the City. The plat shall be revised to illustrate these easements. Staff Comment. Wetlands and wetland buffer areas are shown to lie within drainage and utility easements on the final plat. Such easements are to be dedicated to the City 15. The landscape plan must illustrate the proposed ground cover within the wetland buffer areas. Staff Comment. According to the landscape plan, a seed buffer mix (BWSR Mesic Short Urban Buffer South and West of approved equal) is to be proposed within wetland buffer areas. 16. The drainage ditch that connects the wetlands shall be cleaned and graded to a minimum standard of 4-foot bottom with 3:1 side slopes. Staff Comment. Applicant shall provide a grading and clean out plan for the drainage ditch which shall be subject to review and approval of the City Engineer. The ditch clean out and reconstruction shall proceed with the development of lot 1, Block 1 AVA Addition and be completed by October 2021 . 4 Agenda Page 48 17.Applicant shall address the comments of the City Engineer in his memorandum of December 1, 2020. Staff Comment. As a condition of final plat approval, all comments included in the City Engineer's memorandum dated December 1, 2020 must be addressed to the satisfaction of the City Engineer. 18. The plat must include drainage and utility easements over proposed storm water ponding areas as well as wetlands and buffer area within the outlots. Staff Comment. While drainage and utility easements are shown over wetlands and buffer areas (within outlots), storm water ponding areas are not shown to lie within drainage and utility easements. As a condition of final plat approval, the boundaries of the proposed drainage and utility easements must be expanded to include storm water ponding areas. 19. The plat must show drainage and utility easements over any municipal utilities outside of the street right-of-way. Staff Comment. The final plat drawing illustrates drainage and utility easements along the perimeter of Lot 1, Block 1. The plat also illustrates easements running through the property, the easements internal to the lot must be revised to provide a minimum of 10 feet on both sides of the proposed pipelines. This requires expanded easements for the utilities on the south, west and north sides of the building. The acceptability of such easements will be subject to review and approval by the City Engineer. 20. The location, size and configuration of all required easements shall be subject to the approval of the City Engineer. Staff Comment. As a condition of final plat approval, the location, size, and configuration of all required easements shall be subject to the approval of the City Engineer. 21.As a condition of final plat approval, park dedication requirements of the City shall be satisfied. Staff Comment. As a condition of final plat approval, proposed Lot 1, Block 1 shall be subject to a park dedication fee of $2,500 per acre. Such fee applies only to the buildable area of the lot exclusive of wetlands and wetland buffers. 22. The applicant shall enter into a development agreement with the City with the approval of the final plat. Staff Comment. As a condition of final plat approval, the applicant must enter into a development agreement with the City. Such agreement will address 5 Agenda Page 49 required public improvements, site development details and all the conditions noted in the City resolution approving the final plan. Site and Building Plans (Lot 1, Block 1, AVA Addition) Conditions of Site and Building Plan Approval. At their January 4, 2021 meeting, the City Council also approved site and building plans for the proposed manufacturing facility subject to various conditions. In consideration of the current final plat application, a determination should be made that the conditions of site and building plan approval have been satisfied. The following is a listing of the various conditions of site and building plan approval followed by a Staff response (based on the final plat plan set dated January 11, 2021). 1. The site plan must be revised to illustrate the right-of-way requirements and street construction for Kadler Avenue as outlined in the preliminary plat review. Staff Comment. As required as part of preliminary plat approval, a 70-foot right- of-way dedication for Kadler Avenue is proposed. The plat must be revised to illustrate additional right-of-way dedication for a cul-de-sac at the plat's southern boundary. The site plan must be revised to provide setback and screening of the outdoor storage area located in the western portion of lot 1, block 1 AVA Addition. The site plan shall also be revised to eliminate all driveway access on to Kadler Avenue and gates in the western fence line. 2. The applicant provide a revised site plan showing the proposed building expansion and site alterations related to the expanded floor space. Staff Comment. The revised site plan, does depict the expanded building and related site alterations. The expanded building meet the city's zoning requirements. 3. The City shall reserve the right to require the construction of additional "proof of parking"parking stalls, should the need arise. Staff Comment. This condition shall remain as a condition of site and building plan approval and outlined in the development contract. 4. Due to the limited amount of available truck maneuvering space, the intent of loading activities on the south side of the building shall be clarified by the applicant. Staff Comment. The applicant has verbally described to loading activities south of the building in a manner that has been deemed acceptable in the site plan approval. 6 Agenda Page 50 5. Details related to trash handling activities shall be addressed by the applicant. Staff Comment. The site plan shows the proposed location of the trash handling equipment on the north side of the building. Exterior storage of trash handing equipment requires it to be enclosed within a trash enclosure. The applicant has not provided information related size and design of the required trash enclosure. As a result, this remains a condition of site and building plan approval. 6. The outdoor storage area is required to be screened from public streets. The landscape screen must be extended along the fence line along Kadler Avenue. Staff Comment. Appropriately, the submitted landscape plan illustrates landscaping along the fence line which abuts Kadler Avenue. With the dedication of additional right-of-way for the Kadler Avenue cul-de-sac, the site plan shall be revised to illustrate the required setback and landscape screening along this new right-of-way configuration. 7. A detail of the proposed fence shall be provided and meet the City's standards. Staff Comment. The revised landscape plan indicates that the proposed fence along Kadler Avenue is chain link and eight feet in height. Recognizing that the fence is intended to secure the site and that adjacent plantings will serve to screen the outdoor storage area, the proposed fence is considered acceptable. Gates along Kadler Avenue shall be removed to prevent access to Kadler Avenue. 8. The landscape plan shows seed turf in areas to be maintained. This seed mix extends beyond the fence line. Areas between the fence and the wetland buffer may be better served with the no-mow buffer seed mix to avoid issues of access and maintenance beyond the fence line. Staff Comment. In areas between the fence and wetland buffer, a buffer seed mix, BWSR Mesic Short Urban Buffer South or West or approved equal, is proposed. 9. The landscape plan shall illustrate the wetland buffer ground cover. Staff Comment. According to the landscape plan, a seed buffer mix (BWSR Mesic Short Urban Buffer South and West of approved equal) is to be proposed within wetland buffer areas. 7 Agenda Page 51 10.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. Staff Comment. A photometric lighting plan has yet to be received. As a result, this remains a condition of site and building plan approval. 11.A sign plan shall be submitted which specifies sign locations (freestanding and 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. Staff Comment. A sign plan has yet to be received. As a result, this remains a condition of site and building plan approval. 12. 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. Staff Comment. The site and building plans have been revised to illustrate an expanded building. The larger building meets the City zoning performance standards. 13. The grading, drainage and utilities shall address the comments of the City Engineer's Memorandum dated December 1, 2020. All grading, drainage and utility plans are subject to the review and approval of the City Engineer. Staff Comment. As a condition of site and building plan approval, all comments in the City Engineer's memorandum dated December 20, 2020 related to grading, drainage and utilities must be responded to in a manner determined to be acceptable by the City Engineer. Conditional Use Permit for Outdoor Storage Conditions of CUP Approval. At their January 4, 2021 meeting, the City Council approved the conditional use permit to allow accessory outdoor storage upon Lot 1, Block 1 subject to various conditions. In consideration of the final plat application, a 8 Agenda Page 52 determination should be made that the conditional use permit conditions have been satisfied. The following is a listing of the various conditions of conditional use permit approval followed by a Staff response (based on the final plat plan set dated January 11, 2021). 1. Details related to the type of security fence and fence height shall be provided subject to City approval. Staff Comment. The security fence is the be chain link and eight feet in height. Such fence complies with City requirements. 2. The landscape screen must be extended along the fence line along Kadler Avenue. Staff Comment. The landscape screen has been extended along the fence line which borders Kadler Avenue. The site plan and Landscape plan must be revised to reflect the expanded right-of-way dedication, setback and landscaping for the outdoor storage area along Kadler Avenue. 3. The width of the screening/buffer yard alongside the single-family home in the southwest corner of the site shall be increased from 15 to 20 feet(such that coniferous trees can be staggered and spaced 25 feet on center). Staff Comment. The screening/buffer yard alongside the single-family home in the southwest corner of the site has been increased from 15 to 20 feet. 4. The applicant shall provide information related to proposed snow storage locations. Staff Comment. The revised site plan illustrates snow storage in the southwest corner of the site, within the outdoor storage area. Conditional Use Permit for Outdoor Display Conditions of CUP Approval. At their January 4, 2021 meeting, the City Council approved the conditional use permit to allow accessory outdoor display upon Lot 1, Block 1 subject to various conditions. In consideration of the final plat application, a determination should be made that the conditional use permit conditions have been satisfied. The following is a listing of the various conditions of conditional use permit approval followed by a Staff response (based on the final plat plan set dated January 11, 2021). 1. Outdoor display activities shall be specifically limited to the boundaries of the four display areas depicted on the site plan. 9 Agenda Page 53 Staff Comment. The Applicant shall provide a detailed plan for the display areas that includes the establishment of concrete pads to define the location and size of proposed displays, sidewalks to access the displays, with the balance of the area surrounding the display pad being green space and landscaped. No outdoor display shall be permitted until the detail plan is approved by City Staff and the display pad are installed and property is landscaped. 2. The intended surfacing material of the outdoor display area shall be specified by the applicant. Staff Comment. See comment 1 , above. RECOMMENDATION Final Plat: Based on our review of the final plat draft dated 01/11/2021, we recommend approval of the AVA Addition final plat with the following conditions being satisfied, 1 . The final plat shall change "Keystone Avenue NE" to "Karmen Avenue". 2. The final plat shall be revised to provide additional right-of-way for a cul-de-sac on Kadler Avenue at the plat's southern boundary. The right of way dedication for Kadler Avenue cul-de-sac shall be 90 feet from centerline of Kadler Avenue; beginning at the plat's south property line and extending north 60 feet, after which the right- of—way shall be 70 feet wide. The final plat document shall be revised to show this additional right-of-way. The site plan shall be revised to provide required setback, and screening of the outdoor storage area in the west portion of Lot 1, Block 1 AVA Addition. The site plan shall also remove the gates and driveway access to the Kadler Avenue. 3. A determination is made by the City Engineer that Karmen Avenue is designed in accordance with City standards for urban industrial streets. 4. No building occupancy permits shall be issued until the construction of Karmen Avenue is complete. 5. The construction of Kadler Avenue to a full urban industrial design is waived with the Developer entering into a development contract with the City that includes a waiver of assessment appeal for 100% of costs associated the construction of Kadler Avenue. Said assessment shall be placed on lot 1, Block 1 AVA Addition. The City shall determine the need and timing of the future construction of Kadler Avenue 10 Agenda Page 54 6. The applicant shall provide a written plan defining the anticipated travel routes and travel times large truck leaving the site with large loads for approval by City Council. The wide load hauling shall avoid A.M. and P.M. peak traffic hours to prevent traffic conflicts with motorists. 7. No building permits or development applications shall be issued for Outlot C until such time as it is platted into a lot and block compliant with the Albertville Subdivision and Zoning Codes. 8. A wetland mitigation plan shall be submitted subject to review and approval by the City Engineer. 9. The applicant shall provide a plan for the cleaning and grading of the drainage ditch that connects the wetlands. Said plan illustrate a minimum standard of 4- foot ditch bottom with 3.1 side slopes. Said plan shall be subject to City Engineer approval and ditch cleaning and improvement shall be completed by October 2021 . 10.All comments included in the City Engineer's memorandum dated December 1, 2020 shall be addressed to the satisfaction of the City Engineer. 11.The boundaries of the proposed drainage and utility easements shall be expanded to include storm water ponding areas. 12.The easement over the utilities internal to the site must provide a minimum of 10 feet on both sides of the pipeline. These easements must be widened on the final plat. The location, size, and configuration of all required easements shall be subject to the approval of the City Engineer. 13.Proposed Lot 1 , Block 1 shall be subject to a park dedication fee of $2,500 per acre. Such fee applies only to the buildable area of the lot exclusive of wetlands and wetland buffers. 14.The applicant shall enter into a development agreement with the City. Site and Building Plan: Based on our review of the Site plan and construction plans set dated 10/11/2021 we recommend approval of the site and construction plans with the following condition being satisfied. 1 . The City Engineer determines that proposed streets within the subdivision meet City street construction standards. 2. The site plan shall be revised to provide required setback, and screening of the outdoor storage area from the Kadler cul-de-sac right-of-way dedication. 11 Agenda Page 55 3. The site plan shall remove the gates and driveway access to the Kadler Avenue. 4. The City shall reserve the right to require the construction of additional "proof of parking" parking stalls, should the need arise. 5. Applicant provides details as to the size and construction materials related to exterior trash enclosure. All trash and recycling handling equipment shall be located with the approved trash enclosure or within the principal building. 6. A photometric lighting plan shall be provided for City approval that illustrates all exterior lighting and 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. 7. A sign plan shall be submitted which specifies sign locations (freestanding and 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. 8. The grading, drainage and utilities shall address the comments of the City Engineer's Memorandum dated December 1 , 2020. All grading, drainage and utility plans shall be subject to the review and approval of the City Engineer. Conditional Use Permit (for Outdoor Storage): Based on our review of the Site plan and construction plans set dated 10/11/2021 we recommend approval of the conditional use permit for outdoor storage on lot 1, block 1 AVA Addition with the following condition being satisfied. 1 . The site and construction plans are revised to illustrate that the required Kadler Avenue Cul-de-sac right-of-way dedication. Said plans shall illustrate the needed setback and landscaping along this new Kadler Avenue right-of-way. 2. All drive way access and gates leading to Kadler Avenue be removed from the site and construction plans. Conditional Use Permit (for Outdoor Display): Based on our review of the Site plan and construction plans set dated 10/11/2021 we recommend approval of the conditional use permit for outdoor display on lot 1, block 1 AVA Addition with the following condition being satisfied. 12 Agenda Page 56 1 . The Applicant shall provide a detailed plan for the display areas that includes the establishment of concrete pads to define the location and size of proposed displays, sidewalks to access the displays, with the balance of the area surrounding the display pads being green space and landscaped. 2. No outdoor display shall be permitted until the detail plan is approved by City Staff and the display pads are installed and property is landscaped. 3. Outdoor display activities shall be specifically limited to the boundaries of the four display areas depicted on the site plan. cc. 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Y5 Ys` Y I 04� I I I I \\ m m a A� h a F z w � f A g ry r m 1 \ J € A I 1 1 1 } 3 1 I l / y � L 2 21 1-0 / W I d¢ I 1 0 � p / � ozl 1 $a� CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2021-009 RESOLUTION APPROVING A REQUEST FOR A FINAL PLAT,BUILDING AND SITE PLAN AND CONDITIONAL USE PERMITS FOR OUTDOOR STORAGE AND OUTDOOR PRODUCT DISPLAY FOR THE ADVANCED VOLUMETRIC ALLIANCE (AVA) TO CONSTRUCT 178,000+ SQUARE FOOT INDUSTRIAL BUILDING ON LOT 1, BLOCK 1 AVA ADDITION WITHIN THE CITY OF ALBERTVILLE WHEREAS, on January 4, 2021, the Albertville City Council approved the following development applications for Darkenwald Holdings LLC. for the development of a 137,800+ sq. ft. industrial building for Advanced Volumetric Alliance (AVA). Said site is located at the Southwest quadrant of Kadler Avenue and 701h Street intersection. 1. Comprehensive Plan Amendment. To change the guided land use from commercial to industrial. 2. Zoning Map Amendment: Changing the zoning from B-2A Special Business District to I-2 General Industrial District. 3. Preliminary Plat. 4. Site and Building Plan Review 5. Conditional Use Permits for outdoor storage and outdoor product display accessory to the industrial use. WHEREAS, Darkenwald Holdings has submitted application and plans dated January 11, 2021 for final plat and final development plan approval in response to the conditions outlined in the January 4, 2021 Resolution approving the preliminary plat and development plans; and WHEREAS, City staff has reviewed the submitted plans and prepared a planning report of January 26, 2021; and WHEREAS, the Albertville City Council met on February 1,2021 to consider the Advanced Volumetric Alliance development applications; and WHEREAS, upon considering the application materials, the January 26, 2021 planning report, and City staff recommendations the City Council agrees with the findings and recommendation of City staff. NOW,THEREFORE BE IT RESOLVED, that the City Council of Albertville, Minnesota hereby approves the AVA Addition final plat, the AVA revised site and building plans and conditional use permits for outdoor storage and outdoor display of products for the property legally described as Lot 1, Block 1 AVA Addition based on the following findings and conditions. Final Plat: The AVA ADDITION Final Plat dated January 11,2021 is approved with the following conditions. Agenda Page 67 City of Albertville,MN Resolution No. 2021-009 Meeting of February 16,2021 Page 2 1. The final plat shall change "Keystone Avenue NE"to"Karmen Avenue NE". 2. The final plat shall be revised to provide additional right-of-way for a cul-de-sac on Kadler Avenue at the plat's southern boundary. The right of way dedication for Kadler Avenue cul- de-sac shall be 90 feet from centerline of Kadler Avenue; beginning at the plat's south property line and extending north 60 feet, after which the right-of-way shall be 70 feet wide. The final plat document shall be revised to show this additional right-of-way. The site plan shall be revised to provide required setback, and screening of the outdoor storage area from the Kadler right-of-way in the west portion of Lot 1, Block 1 AVA Addition. 3. A determination is made by the City Engineer that Karmen Avenue is designed in accordance with City standards for urban industrial streets. 4. No building occupancy permits shall be issued until the construction of Kadler Avenue as described in condition number 5 below and Karmen Avenue to the north access drive of Lot 1,Block 1 AVA Addition to be terminated in a temporary cul-de-sac or constructed to intersect with 70th Street is complete. 5. Kadler Avenue shall be constructed as a 24-foot wide paved rural street section from 70th street to the plat's southern boundary where a cul-de-sac with a 45 foot radius will be constructed. The Kadler Avenue construction design shall be reflective of the street's use and traffic volumes, for a minimum 20 year street life. The design plans shall be subject to the review and approval of the City Engineer. 6. Trucks loaded with portions of prefabricated buildings or fully constructed prefabricated buildings shall not leave said Lot 1 during the hours of 7 a.m. to 9 a.m. and 4 p.m. to 6 p.m., Monday through Friday. Within the City of Albertville AVA shall use only Kadler Avenue, 70th Street, County Highways, State Highways or Federal Highways when transporting portions of prefabricated buildings from said Lot 1. 7. No building permits or development applications shall be issued for Outlot C until such time as it is platted into a lot and block compliant with the Albertville Subdivision and Zoning Codes. 8. A wetland mitigation plan for the entire plat shall be submitted and be subject to review and approval by the City Engineer. A wetland permit shall be approved and in-place prior to any construction of the subdivision or site. 9. The applicant shall provide a plan for the cleaning and grading of the drainage ditches that connect the wetlands through Outlot A and Outlot C. Said plan illustrate a minimum standard of 4-foot ditch bottom with 3:1 side slope. Said plan shall be subject to City Engineer approval and ditch cleaning and improvement shall be completed by October 2021. 10. All comments included in the City Engineer's memorandum dated December 1, 2020 and subsequent memos or recommendations shall be addressed to the satisfaction of the City Engineer. Agenda Page 68 City of Albertville,MN Resolution No. 2021-009 Meeting of February 16,2021 Page 3 11. The boundaries of the proposed drainage and utility easements shall be expanded to include storm water ponding areas. 12. The easement over the utilities internal to the site must provide a minimum of 10 feet on both sides of the pipeline. These easements must be widened on the final plat. The location, size, and configuration of all required easements shall be subject to the approval of the City Engineer. 13. A determination is made by the City Engineer that all public utilities meet the City design and construction standards. The applicant shall comply with any recommendations of the City Engineer. 14. Proposed Lot 1, Block 1 shall be subject to a park dedication fee of$2,500 per acre. Such fee applies only to the buildable area of the lot exclusive of wetlands and wetland buffers. 15. The applicant shall enter into a development agreement with the City. Site and Building plans are approved for Lot 1,Block 1 AVA Addition; based on the Civil Engineering plans, Site plan, and landscape plan dated January 11,2021, and the Building floor plans, Building elevations dated October 13,2020. Said approval is subject to the following conditions and revisions. 1. The City Engineer determines that proposed streets within the subdivision meet City street construction standards. 2. The site plan and engineering plans shall be revised to provide required setback, and screening of the outdoor storage area from the Kadler cul-de-sac right-of-way dedication. 3. The City shall reserve the right to require the construction of additional "proof of parking" parking stalls, should the need arise. 4. Applicant provides details as to the size and construction materials related to exterior trash enclosure. All trash and recycling handling equipment shall be stored within the approved trash enclosure or within the principal building. 5. A photometric lighting plan shall be provided for City approval that illustrates all exterior lighting and 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. Agenda Page 69 City of Albertville,MN Resolution No. 2021-009 Meeting of February 16,2021 Page 4 6. A sign plan shall be submitted which specifies sign locations (freestanding and 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 grading, drainage and utilities shall address the comments of the City Engineer's Memorandum dated December 1, 2020 and subsequent memos or recommendations. All grading, drainage and utility plans shall be 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 (west) area of the site per the site plan dated 01/11/2021 subject to the following conditions: 1. The site and construction plans are revised to illustrate that the required Kadler Avenue Cul- de-sac right-of-way dedication. Said plans shall illustrate the needed setback and landscaping along this new Kadler Avenue right-of-way. Conditional Use Permit for Outdoor Display. Approval of a conditional use permit to allow the outdoor display of models in the front(east) area of the site per the site plan dated 01/11/2021 subject to the following conditions: 1. The Applicant shall provide a detailed plan for the display areas that includes the establishment of concrete pads to define the location and size of proposed displays, sidewalks to access the displays,with the balance of the area surrounding the display pads being green space and landscaped. 2. No outdoor display shall be permitted until the detail plan is approved by City Staff and the display pads are installed and property is landscaped. 3. Outdoor display activities shall be specifically limited to the boundaries of the four display areas depicted on the approved site plan. Adopted by the City Council of the City of Albertville this 16th day of February 2021. Jillian Hendrickson, Mayor ATTEST: Kristine A. Luedke, City Clerk Agenda Page 70 CITY OF ALBERTVILLE DEVELOPMENT AGREEMENT/ CONDITIONAL USE AGREEMENT AVA ADDITION THIS AGREEMENT, entered into this day of 2021 by and between Advanced Volumetric Alliance, LLC, a Minnesota Limited Liability Company, referred to herein as "Developer"; and the CITY OF ALBERTVILLE, County of Wright, State of Minnesota, hereinafter referred to as "City"; WITNESSETH: WHEREAS, Developer is the fee owner of the real property described in the attached Exhibit A, which real property is proposed to be subdivided and platted for development, and which subdivision, which is the subject of this Agreement, is intended to bear the name "AVA Addition" and shall hereinafter be referred to in its entirety as "Said Plat" or "Subject Property," the final plat of which is attached as Exhibit B; and WHEREAS, Developer has received final plat approval for one numbered lot and three outlots within Said Plat; and WHEREAS,this Agreement is entered into for the purpose of setting forth and memorializing for the parties and subsequent owners, the understandings and covenants of the parties concerning Said Plat and the conditions imposed thereon; and WHEREAS, Developer requires a Conditional Use Permit ("CUP") for its planned outdoor storage and a CUP for outdoor display on Lot 1, Block 1 of Said Plat; and WHEREAS, the City has given final approval of Said Plat contingent upon compliance with certain City requirements including, but not limited to, matters set forth herein; and 1 Agenda Page 71 WHEREAS,the City requires that certain public improvements including,but not limited to bituminous street, curb and gutter, grading, sanitary sewer, municipal water, and storm sewer be installed to serve Said Plat and other properties affected by the development of Developer's land, to be installed and financed by Developer; and WHEREAS, the City further requires that certain other improvements be installed by the Developer within Said Plat, which improvements consist of boulevards,top soil and sod,grading control per lot,bituminous or concrete driveways and parking lots, drainage swales, berming, street signs, street lights, street cleanup during project development, erosion control, and other site-related items; and NOW, THEREFORE, IT IS HEREBY AND HEREIN MUTUALLY AGREED, in consideration of each party's promises and considerations herein set forth, as follows: 1. 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 to the east of the proposed 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 west of the proposed building located on said lot 1 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. 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 2 Agenda Page 72 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 (except the ponds located on Outlot A, which shall be maintained by the City). Developer shall not modify nor obstruct said storm sewer system or ponds without the express written consent of the City. H. The City shall reasonably maintain the sanitary sewer lines and municipal water lines and fire hydrants located within publicly dedicated utility easements on Said Plat, provided, however that: 1) The City shall not be required to maintain that portion of the waterline shown on the attached Exhibit E,although the City shall maintain the fire hydrants that are stubbed off of such water main; 2) the Developer shall promptly maintain that portion of the waterline shown on the attached Exhibit E in good repair so as not to degrade the City's water supply or waste water; 3) In the event it is necessary for the City to excavate any portion of the easement area to maintain, repair or replace any such lines, the City shall be obligated to restore the easement area to grade with gravel and the owner of the property shall be responsible for replacing pavement and any improvements above grade; and 4)Nothing in this Agreement shall act to limit the City's ability to finance such improvements in accordance with applicable law including Minn. Stat. Chapter 429. The City shall have full responsibility to restore pavement within the dedicated City streets on Said Plat in the event the City excavates any portion of the street to maintain, repair or replace such lines located within the street right of way. L Street Improvements. i. Karmen Avenue shall be constructed at Developer's sole expense from the current end of 67' Street to the north access drive of said Lot 1 where a temporary cul-de-sac shall be constructed. Said construction shall be performed according to the plans and specifications on file in the City Clerk's Office dated 1202 1. All such work on Karmen Avenue shall be completed no later than October 31, 2021. Developer acknowledges that Karmen Avenue's access to 70th Street will be restricted to a right-in, right-out only in the future, and Developer waives any right to make any claim of damages against the City of Albertville or Wright County as a result of such change of access. All such construction shall be at 3 Agenda Page 73 Developer's sole expense. ii. The City's subdivision ordinance requires the Developer to construct Kadler Avenue as a paved street along the entire length of Said Plat. The City and Developer contemplate that the City will provide Tax Increment Financing ("TIF") assistance to Developer that Developer could use to pay the cost of constructing Kadler Avenue. Developer shall construct Kadler Avenue as a 24-foot wide paved rural street section from 70th street to the plat's southern boundary where a cul-de-sac with a 45 foot radius will be constructed. The Kadler Avenue construction design shall be reflective of the street's use and traffic volumes, for a minimum 20 year street life. The design plans shall be subject to the review and approval of the City Engineer. Construction of Kadler Avenue shall to the base course of bituminous shall be constructed by October 31, 2021, with the final lift of bituminous completed after June 1, 2021 but before June 31, 2021. All such construction shall be at Developer's sole expense. ill. Prior to the construction of Kadler Avenue as a paved industrial street as contemplated by this Agreement, Developer shall not access Kadler Avenue from Said Plat. Upon the construction of Kadler Avenue, Developer shall establish at least one driveway entrance from Kadler Avenue to Developer's parking lot on said Lot 1 and all trucks leaving said Lot 1 loaded with portions of prefabricated buildings shall exit said Lot 1 using Kadler Avenue. J. Trucks leaving said Lot 1 loaded with portions of prefabricated buildings shall not leave the site between the following hours: No prefabricated buildings shall leave said Lot 1 during the hours of 7 a.m. to 9 a.m. and 4 p.m. to 6 p.m., Monday through Friday. Within the City of Albertville, Developer shall use only Kadler Avenue, 70th Street, County Highways, State Highways or Federal Highways when transporting portions of prefabricated buildings from said Lot 1. K. No building permits shall be issued for any building on Outlot C of Said Plat until such outlot is replatted as a numbered lot and block compliant with the Albertville Subdivision and Zoning Codes. 4 Agenda Page 74 L. The ditches located on Outlots A and C of Said Plat shall be cleaned and graded by Developer at Developer's expense to a minimum standard of a four-foot bottom with 3-to-1 side slopes, said cleaning to be completed by October 31, 2021. M. All existing field approaches from 70" Street shall be removed by Developer. N. All private utilities installed on Karmen Avenue shall be installed underground in a j oint trench. O. 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 finished prefabricated building units, subject to the following limitations: A. The Developer may store finished prefabricated building units only in those areas marked "outdoor storage areas" on the attached Exhibit G. B. A security fence shall be installed as shown on the attached Exhibit G. C. The width of the screening/buffer yard alongside the single-family home in the southwest corner of the site shall be increased from 15 to 20 feet (such that coniferous trees can be staggered and spaced 25 feet on center). D. The Developer shall store snow plowed from the parking lot of said Lot 1 in the locations shown on the attached Exhibit H. E. Only finished prefabricated building units may be stored in the approved outdoor storage area 3. Conditional Use Permit for Outdoor Display. Developer is granted a Conditional Use Permit for outdoor display of model finished prefabricated building units on said Lot 1 in that area east of the proposed building as shown on the site plan attached as Exhibit I, subject to the following limitations: A. Outdoor display activities shall be specifically limited to the boundaries of the four display areas depicted on the site plan attached as Exhibit I. B. The surfacing material of the outdoor display area shall be concrete. 5 Agenda Page 75 C. Only model finished prefabricated building units may be stored in the approved outdoor display areas. 4. Construction of Municipal Improvements. A. The Developer shall construct those municipal improvements located on and off Said Plat as detailed in the Plans and Specifications for AVA Addition, as prepared by Landform dated , 2021 and on file with the City Clerk, said improvements to include installation of water main, sanitary sewer main, storm water treatment ponds, street lights, curb and gutter located within the street right of way, storm sewer located in the street right of way and storm sewers draining from the street to the storm water treatment ponds, Karmen Avenue as set forth in paragraph 1.I.1. of this Agreement, ditch cleaning as required by paragraph LL of this Agreement and street signs to be of such type and to be installed at such locations as required by the City Engineer and in conformance with the Manual on Uniform Traffic Control Devices (collectively, the "Municipal Improvements"). All the Municipal Improvements shall be constructed according to the standards adopted by the City, along with all items required by the City Engineer. Unless the City Engineer specifies a later date, said improvements shall be installed 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 all ponds, swales, emergency overflows, and Municipal Improvements have been constructed on public 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 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 6 Agenda Page 76 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. F. The Developer shall be responsible, at Developer's expense, for plowing snow from all streets in Said Plat that do not have wear course installed. Such plowing shall be done in a manner and on a timeline consistent with the way the City plows its other residential streets. Developer shall be responsible for repairing all damage which occurs to streets and utilities as a result of snow plowing when such streets do not have the wear course of bituminous installed. 5. Construction of Private Improvements. A. Developer shall construct all on- and off-site improvements ("Private Improvements") including installation of storm sewer not located in the street right of way and not conveying water from the street, water main (located north and west of the building proposed to be located on said Lot 1),boulevards, street signs, traffic signs, 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 of Said Plat shall be performed in accordance with the Grading Plan attached as Exhibit J. B. Developer shall, at its own expense, cause electrical, gas and communications utilities to be installed within Said Plat,including from 70th Street to the existing 67th Street within the Karmen Avenue right of way, all such items to be installed underground in a common trench, within the street right of way or such other location as may be approved by the City Engineer, and in compliance with all applicable state and local regulations. In addition, the Developer shall, at its own expense, cause street lights and street signs to be of such type and to be installed 7 Agenda Page 77 at such locations as required by the City Engineer and in conformance with the Manual on Uniform Traffic Control Devices. C. 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 K. Developer agrees to have all utilities installed at its expense according to this Exhibit K. E. Notwithstanding the requirements of subparagraph 3A above, the Developer shall install to the City's satisfaction said Private Improvements for said Lot 1 prior to the date that a certificate of occupancy(temporary or permanent)is issued by the City for a building 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. 6. 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 8 Agenda Page 78 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 6.A above or a lesser amount authorized by the City Council pursuant to paragraph 7.13 below. 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. 9 Agenda Page 79 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. 7. Surety Release. 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 10 Agenda Page 80 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 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. 8. Abandonment of Proiect- 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. 9. Developer to Pav 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 11 Agenda Page 81 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. 10.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 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 11.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(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 12 Agenda Page 82 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 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. 12.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. 13.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, 13 Agenda Page 83 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. 14.Temporary Easement Rights. 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. 15.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 14 Agenda Page 84 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 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. 1. 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. 16.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. 15 Agenda Page 85 B. Notwithstanding the 30-day notice period provided for in paragraph 16A 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. C. Paragraph 16A of this Agreement shall not apply to any acts or rights of the City under paragraph 6E 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. 17.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 right-of-ways 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 streets, utilities, storm sewers, storm water ponds 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 16 Agenda Page 86 C. Outlots Containing Wetlands and Wetland Buffer Areas. Upon the replatting of outlots containing wetlands and wetland buffer areas into numbered lots, such wetlands and buffer areas shall remain in an outlot and such outlot shall be dedicated 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 basins. Developer shall be required to maintain all such ponds (except the two ponds located on Outlot A which shall be maintained by the City), in accordance with the terms of the Stormwater Management Agreement attached as Exhibit L. ii. Upon dedication to the public of the ponds located on said Lot 1, the City may drain water from Kadler Avenue into said ponds. ill. Developer shall enter into that Storm Water Maintenance Agreement attached as Exhibit L and shall comply with the terms of such Agreement. 18.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. 19.Assi!nment 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. 20.Limited Approval. 17 Agenda Page 87 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. 21.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. 22.Plans Attached as Exhibits. 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. 23.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. 24.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 Advanced Volumetric Alliance, LLC 18 Agenda Page 88 25.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 ADVANCED VOLUMETRIC ALLIANCE, 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 19 Agenda Page 89 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 ) The foregoing instrument was acknowledged before me this day of , 2021, by as of Advanced Volumetric Alliance, LLC . Notary Public DRAFTED BY: Court & Ruppe Law Office P.O. Box 369 St. Michael,MN 55376 (763) 497-1930 20 Agenda Page 90 EXHIBIT A TO DEVELOPER'S AGREEMENT The legal description of the Plat to which this Developer's Agreement applies is as follows: Lots 1 Outlots A and B and C All such property in the plat of AVA Addition, as said plat is on file in the Wright County Recorder's Office, Wright County, Minnesota. 21 Agenda Page 91 EXHIBIT B Final Plat EXHIBIT C Site Plan EXHIBIT D Landscaping Plan EXHIBIT E Waterline to be maintained by Developer EXHIBIT F Lighting Plan EXHIBIT G Outdoor Storage Area and Fence Plan EXHIBIT H Snow Storage Area EXHIBIT I Outdoor Display Area EXHIBIT J Grading, Drainage & SWPPP EXHIBIT K Utility Plan EXHIBIT L Storm Water Ponding Maintenance Agreement 22 Agenda Page 92 EXHIBIT L (Reserved for Recording Data) STORMWATER MANAGEMENT AGREEMENT This AGREEMENT made this _day of 2021, by and between the CITY OF ALBERTVILLE, a Minnesota municipal corporation (hereinafter referred to as the("City") and Advanced Volumetric Alliance, 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, AVA Addition, 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 93 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. 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 the Subject Property, certify the costs against the Subject Property 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 94 CITY OF ALBERTVILLE BY: Jillian Hendrickson, Mayor 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 95 Advanced Volumetric Alliance, LLC By: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _day of 2021, by the of Advanced Volumetric Alliance, LLC. NOTARY PUBLIC This Instrument Drafted by: Mike Couri Couri & Ruppe Law Office P.O. Box 369 St. Michael, MN 55376 763-497-1930 4 Agenda Page 96 EXHIBIT "A" Attach Drawing of Stormwater Ponds 5 Agenda Page 97 �lbcrtvillc Mayor and Council Request for Action February 16, 2021 SUBJECT: PUBLIC HEARING-ADVANCED VOLUMETRIC ALLIANCE INDUSTRIAL VACATION REQUEST RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: adopt Resolution No. 2021-010 approving the Vacation of a portion of the 67th Street right-of-way in conjunction with the Final Plat of AVA Addition within the City of Albertville. BACKGROUND: Advance Volumetric Alliance is requesting the vacation of a portion of 671h Street right-of-way to allow for the final plat of the AVA Addition KEY ISSUES: • The vacated portion street right-of-way is not necessary to serve the public and is no longer required by the City. • With the approval and recording of the AVA Addition Final plat, the City is receiving a new 67th Street/Karmen Avenue right-of-way dedication that will serve northwestern Albertville. • The right-of-way vacation will be recorded with the AVA Addition Final plat to insure the provision of adequate street rights-of-way. POLICY/PRACTICES CONSIDERATIONS: In accordance with State Law, the public notice was published, and a public hearing will be held on February 16, 2021, by the City Council for the vacation of portions of 67th Street right-of-way. FINANCIAL CONSIDERATIONS: The applicant shall be responsible for all costs associated with the vacated public street right-of-way application. There are no significant financial issues related to this public street right-of-way vacation application. LEGAL CONSIDERATIONS: In accordance with Council procedures, the Mayor and Council have the authority approve the application and vacate the public street right-of-way. The vacation of public street right-of-way requires a majority vote of the City Council. The vacation will become effective with the recording of the vacation and the AVA Addition final plat. Department/Responsible Person: Alan Brixius, City Planner Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Resolution No. 2021-010 Vacation Exhibit Applicant Narrative Agenda Page 98 CITY OF ALBERTVILLE WRIGHT COUNTY STATE OF MINNESOTA RESOLUTION NO. 2021-010 RESOLUTION APPROVING THE VACATION OF A PORTION OF THE 67TH STREET RIGHT-OF-WAY IN CONJUNCTION WITH THE FINAL PLAT OF AVA ADDITION WITHIN THE CITY OF ALBERTVILLE WHEREAS,the City Council, pursuant to a petition submitted to it by Advanced Volumetric Alliance LLC under Minnesota Statute §412.851, did hold a public hearing on February 16, 2021 at 7 pm at the Albertville City Hall. At said time and place, the City Council heard all interested parties on whether to vacate a portion of the 67th Street right-of-way described in the Street Vacation Exhibit of this Resolution; and WHEREAS, all notice requirements of Minnesota Statute §412.851 have been satisfied; and WHEREAS,the City Council finds and determines that it is in the public interest to vacate those portions of the 67th Street right-of-way described in the Street Vacation Exhibit of this Resolution is no longer required by the City. NOW THEREFORE BE IT RESOLVED that the City Council of City of Albertville, Wright County,Minnesota does hereby order as follows: That portion of the 67th Street right-of-way described in the Street Vacation exhibit of this Resolution is hereby vacated: The City Clerk is directed to file a certified copy of this Order in the records of the City and a "Notice of Completion of Proceeding"with the Office of the Wright County Auditor and Recorder. Adopted by the City Council of the City of Albertville this 16" day of February,2021. Jillian Hendrickson,Mayor ATTEST: Kristine A. Luedke, City Clerk Agenda Page 99 NW'ly line of / ALBERTVILLE BUSINESS PARK `� \ / Proposed Vacated / >\ Right of Way / C� \ IQ I \I I I I I I \I I F< VJ cb S'67° P6' co Most Northerly corner 7S4 00 .' \ of Lot 3, Block 1, �S \ ALBERTVILLE v�`�� BUSINESS PARK � O i O i `-NE'ly line of Lot 3. iz R, s 4\,36�00 i L J r, r, F IF- Vacation Description for a portion of 67th Street That part of 67th Street, as dedicated on the plat of Albertville Business Park, as of public record in the office of the Wright County Recorder, described as follows: Beginning at the most northerly corner Lot 3, Block 1, said Albertville Business Park; thence South 61 degrees 03 minutes 19 seconds East, on an assumed bearing along the northeasterly line of said Lot 3, a distance of 154.35 feet; thence southeasterly, a distance of 131.67 feet, along a tangential curve, concave northeasterly, having a radius of 561.00 feet and a central angle of 13 degrees 26 minutes 51 seconds; thence northwesterly, a distance of 297.86 feet, along a tangential curve, concave northeasterly, having a radius of 360.00 feet and a central angle of 47 degrees 24 minutes 22 seconds to the northwesterly line of said Albertville Business Park; thence South 28 degrees 56 minutes 41 seconds West, along last said line, a distance of 66.91 feet to the Point of Beginning. NORTH FILE NAME: LDP005 Street Vacation 0 50 PROJECT NUMBER: LDP19005 Street Vacation Exhibit 67th Street, ALBERTVILLE BUSINESS PARKiiiiiiiiiii • R M in collaboration Vacation1it 901.11.2021 SHEET 1 OF Introduction On behalf of Advanced Volumetric Alliance, LLC, Landform is pleased to submit this application for right-of-way vacation and final plat approval to allow construction of a volumetric construction facility at the southeast corner of the intersection of 70th Street NE and Kadler Avenue. The site includes four parcels with one farmstead and the majority of the site is farmed. Our development plan includes the"AVA Addition" plat to create one lot and three outlots for development. We are excited about the improvements proposed for this site. Final Plat We are requesting approval of the"AVA Addition"final plat to create one 24-acre lot and three outlots. The lot will be developed with a volumetric housing manufacturing plant and accessory uses and the outlots will be created for future development. The final plat complies with the conditions of approval for the preliminary plat. The final plat will dedicate additional public right-of-way for Keystone Avenue Northeast and Kadler Avenue North East. Vacation We are requesting City approval for a vacation of right-of-way near the western termination of 671h Street. The public street alignment is being adjusted slightly with plat and a portion of the existing right-of-way is no longer required. This right-of-way as shown on the exhibit will be vacated and new right-of-way for 671h Street and Keystone Avenue Northeast will be dedicated with the"AVA Addition" Final Plat. Summary We respectfully request approval of the Vacation and Final Plat to allow construction of Advanced Volumetric Alliance. Contact Information This document was prepared by: Kendra Lindahl,AICP Landform 105 South Fifth Avenue, Suite 513 Minneapolis, MN 55401 Any additional questions regarding this application can be directed to Kendra Lindahl at klindahl(cDlandform.net or 612.638.0225. Advanced Volumetric Alliance,Albertville,MN January 11,2021 LDP19005 1 Agenda Page 101 �lbcrtvillc Small Town Wag.ffig ON Lft. Mayor and Council Request for Action February 16, 2021 SUBJECT: PUBLIC HEARING-AVA INDUSTRIAL DEED GRANT APPLICATIONS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Adopt Resolution No 2021-004 approving the submission of a DEED Minnesota Investment Fund (MIF) grant application and Resolution No. 2021-005 approving the submission of a DEED Job Creation Fund (JCF) grant application seeking State grant financial assistance for Advanced Volumetric Alliance to allow for the construction of a 178,000+ sq. ft. manufacturing facility in the City of Albertville. The motion shall authorize the Mayor to sign the resolution and authorize the City Administrator to sign the grant applications pending the receipt and approval of the final grant application, the project per forma and credit reports per the MIF resolution. BACKGROUND: Advanced Volumetric Alliance (AVA) LLC is proposing the construction of a 178,000+ square foot manufacturing plant upon an approximate 33 acre site located in the extreme northwest corner of the Albertville, South of 70th Street and east of Kadler Avenue. AVA is pursing two State grant applications: AVA is pursuing a$450,000 Minnesota Investment Fund Grant. The MIF grant monies are being requested to finance capital equipment within the building needed to create product. This grant will come to the City to be offered as a zero percent loan to the AVA with the option of loan forgiveness if the Company fulfills set obligations. AVA is pursuing a $175,000 Minnesota Job Creation Fund grant. The JCF grant monies are intended to assist the start-up company in creation of new jobs. AVA is expecting the creation of 130 new jobs within five years of business start-up. These manufacturing jobs will offer a median wage of$27.69 an hour and benefits of$5.12 an hour. The resolutions represent the City's support of the project. The grants will come to the City and passed through to AVA. The City will be responsible for the grant administration and reporting. In recognizing these responsibilities, the resolutions will be approved and signed after the submission of the final grant applications,project per forma, and credit reports are submitted to the city, reviewed, and approved by City Staff. KEY ISSUES: • Advanced Volumetric Alliance is proposing to construct a 178,000+ sq. ft. industrial building in Albertville. • The AVA project will create 130+new jobs within 5 years of start-up. Agenda Page 102 Mayor and Council Request for Action —February 16, 2021 AVA Industrial DEED Grant Applications Page 2 of 2 • The proposed industrial development anticipates a median pay scale of$27.69 an hour and benefits $5.12 an hour. • The new industry will expand the local tax base. • The State grants are needed to help finance capital equipment and other costs associated with a start-up business. • As the sponsor of the grants,the City will be given the grant monies to be passed through to AVA. • The City assumes the responsibility for grant administration and reporting. • To date,the City has not received the project per forma, credit information needed to complete the grant, and TIF plan. The action on approving the resolution shall be conditioned on the receipt and approval of the per forma and credit information. POLICY/PRACTICES CONSIDERATIONS: The approval of the grant resolutions reflects the City's support of the project and grant application submission to the State. The AVA project is consistent with the City's economic development goals as outlined in the 2030 Vision Study. Staff is recommending approval of the resolutions subject to the review and approval of the project per forma and project credit information. FINANCIAL CONSIDERATIONS: The applicant is requesting City financial assistance in pursuing State funding in the form of a grants/loans. The Applicant is also requesting City financial assistance in the form of Tax Increment Financing. If the grant applications are approved, the City will be responsible for the grant administration. Grant administration is within the City's staff capabilities. A successful AVA project will financial benefit the City through expanded job opportunities and tax base. LEGAL CONSIDERATIONS: Upon approval of the grant by the State,the City will be required to enter into a grant contract with the State and will need to comply with all the applicable laws, statutes, regulations, and rules as stated in the grant contract and described in the Project Compliance Certification of the application. Department/Responsible Person: Alan Brixius, City Planner Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Resolution 2021-004 MIF grant resolution and application materials Resolution 2021-005 JCF grant resolution and application materials On-file: Adopted TIF Plan—Albertville TIF 18 Agenda Page 103 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2021-004 RESOLUTION SUPPORTING THE SUBMISSION OF A MINNESOTA INVESTMENT FUND (MIF) GRANT APPLICATION IN CONNECTION WITH ADVANCED VOLUMETRIC ALLIANCE (AVA) TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT WHEREAS,the City of Albertville desires to assist AVA a manufacturing business which is proposing to construct a 178,000+ square foot manufacturing facility within the City; and WHEREAS,the City of Albertville understands that AVA, through and with the support of the City, intends to submit to the Minnesota Department of Employment and Economic Development an application for an award from the Minnesota Investment Fund (MIF); and WHEREAS,the City of Albertville has conducted a public hearing at their February 16, 2021, City Council meeting to solicit public comments and consider the MIF grant application. NOW,THEREFORE BE IT RESOLVED,with the following resolution; the City Council of Albertville, Minnesota hereby authorizes the City Administrator and/City Clerk or their successors in office, to execute the grant contract and amendments, thereto, as necessary to implement the project on behalf to the City of Albertville, Minnesota, the submission of the MIF Grant application with the following Findings. 1. Be it resolved that the City of Albertville, Minnesota acts as the legal sponsor for the project contained in the Minnesota Investment Fund application to be submitted on or about February 16, 2021, and the City Administrator and the City Clerk are hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of the City of Albertville. 2. The City of Albertville has the legal authority to apply for financial assistance and the institutional, managerial, and financial capability to administer the proposed project. 3. The City of Albertville has not violated any Federal, State or local laws pertaining to fraud, bribery, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. 4. That upon approval of the application by the State,the City of Albertville certifies that it will comply with all applicable laws, statutes, regulations and rules as stated in the Grant Contract and described in the Project Compliance Certification of the Application. Agenda Page 104 City of Albertville Resolution No.2021-004 Meeting of February 16,2021 Page 2 5. The City of Albertville has obtained as applicable; credit reports and credit information on AVA and their Business Owners. Upon review by the City of Albertville and the City Attorney,no adverse findings or concerns regarding but not limited to; tax liens, judgments, court actions, and filings with the State, Federal and other regulatory agencies were identified. Failure to disclose and such information could result in revocation or other legal action. Adopted by the City Council of the City of Albertville this 16th day of February, 2021. Jillian Hendrickson, Mayor ATTEST: Kristine A. Luedke, City Clerk Agenda Page 105 MEMPLOYMENT AND ECONOMIC DEVELOPMENT Minnesota Investment Fund (MIF) Program Application State Funds Please consult with your DEED Loan Officer before completing this application. APPLICATION PROCEDURES The Minnesota Investment Fund (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 that would not occur but for the MIF assistance. Applications are accepted on a year-round basis as funds are available. To receive funds, a business must work in conjunction with the city or county government (Local Government) where the business will be located. In consultation with the Department of Employment and Economic Development (DEED), the Local Government will make a preliminary determination about whether a business meets the minimum program requirements. See the MIF eligibility information on the program website for guidance. If a business is potentially eligible, the following steps are completed: 1. The business and Local Government work together to complete the MIF Application. The Local Government will submit the completed application to the designated DEED Loan Officer. 2. DEED evaluates the application and notifies the Local Government and business of approval or denial. If approved, DEED will determine a maximum funding amount and job creation requirements. 3. Jobs created and capital investment expenditures may only be counted after the Grant Contract has been fully executed.The project should not commence prior to execution of the Grant Contract without prior authorization from the MIF Loan Officer. POST AWARD PROCESS 4. DEED and the Local Government will enter into a Grant Contract specifying the details of the award and job creation requirements. 5. After the Grant Contract is fully executed,the Local Government will enter into a Loan Agreement with the business. 6. The Local Government will submit the required executed agreements, payment request documentation, annual progress reports, and other information requested by DEED. 7. MIF funds will be paid on a reimbursement basis after required documentation verifying expenditures is submitted and approved. Rev. 07.08.19 1 Agenda Page 106 SECTION 1 - Local Government Applicant Information Local Government Applicant Local Government Contact Name and Title City of Albertville Adam Nafstad, City Administrator Email: Telephone: anafstad@ci.albertville.mn.us (763) 497-3384 x100 Address: City/State/Zip: 5959 Main Ave NE; P.O. Box 9 Albertville, MN 55301 PART A - Local Resources & Financing Request 1. Does the Local Government have Revolving Loan Funds? ❑ Yes M No *Attach a copy of the Local Government's Revolving Loan fund Policies 2. What is the balance of the local revolving loan funds? 3. What is the Local Government committing to this project? (e.g. TIF, RLF dollars, reduced price land, etc.) Tax Increment Financing 4. Is the applicant up to date filing Minnesota Business Assistance Forms? 111 Yes ❑ No 5. Is the applicant up to date with the filing of MIF Revolving Loan Fund annual reports? H Yes ❑ No ❑ N/A 6. What is the requested MIF loan amount? $450,000 Rate(0-3%)? 0% Term? 5 years 7. Is Applicant proposing any loan forgiveness? H Yes ❑ No 8. If yes,what is the proposed amount to be forgiven? 100% 9. Explain the rationale for forgivable funding:competition with surrounding states,significant job creation and investment 10. What will the MIF funds be used for? (attach estimates) Equipment 11. When was the Local Government's latest financial audit? (attach a copy of the audit results) Part 1 A attachments: ❑ RLF Policies 0 Estimates for Item 10 0 Audit Results PART B - Community Needs & Capacity The project will be scored, in part, on the following community and economic development conditions. Include a project narrative which addresses the following areas as appropriate: 1. Economic vulnerability of the community(e.g., need to diversify industrial base, underemployment of labor pool, labor pool needs); 2. Unique factors demonstrating effective inducement of economic development (e.g., recent loss of large employer, labor pool dependent upon one sector or industry, seasonality of employment, natural disaster,filling long vacant space, long-term member of business community, contributes to cluster industry, tax base increase); 3. Lack of local jobs (e.g., recent population decline due to lack of employment, significant outmigration, or population working outside the community); 4. Project will support the economic viability of underserved businesses (i.e., veteran, minority, disabled, or women owned). If applicable, business must complete self-certification on page 17; 5. Describe the Local Government's experience and ability to manage the grant, revolving loan fund, state and local compliance requirements, and the implementation of the project. 6. Describe how the MIF project will strengthen and/or diversify the local or Minnesota economy. Part 1 B attachments: M Narrative Items 1-6 Rev. 07.08.19 2 Agenda Page 107 PART C - Citizen Participation 1. A public hearing is required to provide citizen notification and involvement prior to submitting the application. Submit a copy of the public hearing minutes, a copy of the Public Hearing Notice and Affidavit of Publication, and the Local Government Resolution. *Required templates of the Public Hearing Notice and the Local Government Resolution are attached as Exhibits A & B. If the Local Government is not a city, county, town or tribal government(i.e., economic development authority, housing& redevelopment authority, or port authority), an additional resolution is required. Contact your Loan Officer for the required template. Part 1 C attachments: 0 Public Hearing Minutes 0 Public Hearing Notice 0 Affidavit of Publication 0 Resolution PART D - Business Credit Check Provide a short narrative describing the steps completed for due diligence.The following information searches on the business and owners holding 10 percent or more of the business must be acquired and reviewed prior to passing the Local Government Resolution: • Google news • criminal record • Secretary of State Good Standing • pending lawsuit • property tax status • credit status • lien/judgment • bankruptcy Part 1 D attachments: 0 Due Diligence Narrative PART E - Other Assistance List and provide amount of other public financial assistance and location in which the business has received within the last five years or expects to receive related to this expansion from state or local governments, such as loans, grants, or project specific tax benefits (e.g., tax increment financing, tax abatements,tax refunds): Date Subsidy Grantor Subsidy Received/Will Type of Subsidy Location where Subsidy Amount be Received Received/Used Example:City $100,000 01/01/2016 Loan Saint Cloud, MN TIF $ 1,450,000 3/1/2021 TIF Albertville, MN PART F - Financial Analysis 1. The Local Government must conduct a financial underwriting analysis of project/business financials for the proposed project. Provide a narrative of the findings of your financial analysis. 2. Please attach a copy of the lead lender's credit presentation with this application, if available. Part 1 F attachments: 0 Financial Analysis Narrative OLender's Credit Presentation Rev. 07.08.19 3 Agenda Page 108 PART G - Project Compliance with State Statutes & Rules All businesses receiving a MIF loan must abide by the following statutes and rules: 1. Minnesota Statutes, Section 181.59. Prohibits discrimination in contracts. 2. Minnesota Statutes, Section 363A.08. Prohibits unfair discrimination practices related to employment or unfair employment practices. 3. Minnesota Statutes, Chapter 363A Minnesota Human Rights Act. Requires that all public services be operated in such a manner that does not discriminate against any person in the access to, admission to, full utilization of or benefit from such public service. 4. Minnesota Statutes, Section 176.181, subd. 2. Requires recipients and subcontractors to have worker's compensation insurance coverage. 5. Minnesota Statutes, Sections 290.9705. Requires that 8 percent of payments made to out-of-state contractors be withheld once cumulative payments made to the contractor for construction work done in Minnesota exceed $50,000 in a calendar year, unless a waiver is granted by the Department of Revenue. 6. Minnesota Statutes, Section 116J.871. Requires recipients of$500,000 or more of state loan funds to be used for construction to ensure that prevailing wages are paid to laborers and mechanics at the project construction site. 7. Minnesota Statutes, Section 1613.98 and Department of Administration, Office of Grants Management, Policy Number 08-01 Conflict of Interest Policy for State Grant-Making. Forbids public officials from engaging in activities which are, or have the appearance of being, in conflict of interest. 8. Minnesota Statutes, 116J.993-995. Business Subsidy laws apply to this project. 9. Minnesota Statutes, 116J.8731. Minnesota Investment Fund laws apply to this project. 10. Minnesota Investment Fund, Rules Chapter 4300. 11. Minnesota Statutes, Chapter 13. The Minnesota Government Data Practices Act provides guidance on data privacy related to this project. Local Government Certification: If an award is provided for the project, the information contained in the application will become a matter of public record with the exception of those items protected under the Minnesota Government Data Practices Act found in Minnesota Statutes, Chapter 13. 1 also certify compliance with the appropriate State Statutes and Rules as stated in the accompanying Local Government Resolution. I have read the above statement and I agree to supply the information requested to the Minnesota Department of Employment and Economic Development, Office of Business Finance with full knowledge of the information provided herein. I certify the information contained herein is true and accurate. Adam Nafstad, City Administrator Name/Title of Local Government Official Signature of Local Government Official Date Rev. 07.08.19 4 Agenda Page 109 Conflict of Interest Disclosure Form This form gives Local Government agencies an opportunity to disclose any actual, potential or perceived conflicts of interest that may exist when receiving a grant. It is the agency's obligation to be familiar with the Office of Grants Management (OGM) Policy 08-01, Conflict of Interest Policy for State Grant-Making and to disclose any conflicts of interest accordingly. All Local Government applicants must complete and sign a conflict of interest disclosure form. 0 I or my agency do NOT have an ACTUAL, POTENTIAL, or PERCEIVED conflict of interest. If at any time after submission of this form, I or my agency discover any conflict of interest(s), I or my agency will disclose that conflict immediately to the appropriate agency or grant program personnel. ❑ I or my agency have an ACTUAL, POTENTIAL, or PERCEIVED conflict of interest. (Please describe below): If at any time after submission of this form, I or my agency discover any additional conflict of interest(s), I or my agency will disclose that conflict immediately to the appropriate agency or grant program personnel. Adam Nafstad Printed name Signature City of Albertville Local Government Agency Date Rev. 07.08.19 5 Agenda Page 110 Exhibit A LOCAL GOVERNMENT RESOLUTION EXAMPLE MINNESOTA INVESTMENT PROGRAM This resolution must be adopted prior to submission of the application. BE IT RESOLVED that (Applicant) act as the legal sponsor for the project contained in the Minnesota Investment Fund Application to be submitted on or about (Date) and that (Title of First Authorized Official) and (Title of Second Authorized Official) are hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of(Applicant). BE IT FURTHER RESOLVED that (Applicant) has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to administer the proposed project. BE IT FURTHER RESOLVED that (Applicant) has not violated any Federal, State, or local laws pertaining to fraud, bribery, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURTHER RESOLVED that upon approval of its application by the State, (Applicant) may enter into a Grant Contract with the State of Minnesota for the approved project, and that (Applicant) certifies that it will comply with all applicable laws, statutes, regulations and rules as stated in the Grant Contract and described in the Project Compliance Certification of the Application. AS APPLICABLE, BE IT FURTHER RESOLVED that (Applicant) has obtained credit reports and credit information on (Name of Business) and (Name of Owners). Upon review by(Applicant) and (Applicant's Legal Counsel), no adverse findings or concerns regarding, but not limited to,tax liens,judgments, court actions, and filings with state, federal and other regulatory agencies were identified. Failure to disclose any such adverse information could result in revocation or other legal action. NOW,THEREFORE BE IT RESOLVED that (Title of First Authorized Official) and (Second Authorized Official), or their successors in office, are hereby authorized to execute the Grant Contract and amendments, thereto, as are necessary to implement the project on behalf of the (Applicant). I CERTIFY THAT the above resolution was adopted by the (City Council or County Board) of(Applicant) on (Date). *Add signature blocks as required by your jurisdiction. Rev. 07.08.19 6 Agenda Page 111 Exhibit B PUBLIC HEARING NOTICE EXAMPLE Notice of Public Hearing Notice is hereby given that on (date/time) at (location details) the (local unit of government)will hold a public hearing concerning submittal of an application to the Minnesota Department of Employment and Economic Development for a grant under the Minnesota Investment Fund (MIF) program. The (local unit of government) is requesting approximately$ (amount of MIF funds to be requested)to assist with the (start-up or expansion) of(name of business).The funds will be used for the creation of jobs. All interested parties are invited to attend the public hearing at which time you will be given the opportunity to express comments on the project. Written testimony will also be accepted at the public hearing. Written comments must be received by (date) at (address). Specific questions can be directed to (contact name and phone number). The (local unit of government) makes reasonable accommodation for any known disability and to meet the needs of non-English speaking residents that may interfere with a person's ability to participate in this public hearing. Persons needing an accommodation must notify(contact person, phone number) no later than (date) to allow adequate time to make needed arrangements. Rev. 07.08.19 7 Agenda Page 112 SECTION 2 - Business Information OperatingBusiness AVA Advanced Volumetric Alliance, LLC Name of Borrower(if different): Parent Company(if . . Business Mailing Address: Street Address for MIF Project Site: 7535 River Road NE Property ID #: 101500352'00 Business City/State/Zip: City/State/Zip for MIF Project Site: Otsego, MN 55330 Albertville, MN 55301 Primary Business Contact: Contact Title: Casey Darkenwald CEO/President E-mail: Telephone: casey@darkenwaldcorp.com (612) 598-3920 Business Website: FEIN: 84-4867127 NAICS Code: Minnesota Tax ID: 321992 6676645 PART A - Business Description Describe the business and its major activities. 1. Please attach a narrative and include the following information: a. Business overview and company history b. Product or industry outlook for the MIF project c. Markets for the MIF Project (local, statewide, national, international) & competitive advantage for each 2. Attach three years historical financials (profit & loss/balance sheets), 2 years financial projections, and year to date internally generated financials. If available, audited or reviewed financials are required. If not available, copies of tax returns will be required. 3. Indicate type of business & provide documentation listed: ❑ Corporation: Articles of Incorporation, By-Laws, Certificate of Incorporation ❑ Partnership: Partnership Agreement 0 LLC: Articles of Organization, Operating Agreement, Member Control Agreement, Certificate of Organization ❑ Sole Proprietorship: Assumed Name Certificate, Affidavit of Publication ❑ Foreign Corporation: Certificate of Authority to Transact Business in Minnesota and in home state 4. Does the property or the business have any outstanding local, state or federal tax liabilities? ❑Yes ■ No If yes, describe: 5. Are there current or unsatisfied judgments or injunctions against the business or owners? ❑Yes 0 No If Yes, describe: 6. Is there current or pending litigation involving the business? ❑ Yes M No If yes, attach summary and disposition. 7. Within the past five years, has there been any violation(s), citation(s), or complaint(s) of discrimination filed against the company in a state or federal court or before any state, federal or Local Government agency? ❑ Yes 0 No If Yes, attach a copy of the violation(s), citation(s), or complaint(s) and the disposition of each. Rev. 07.08.19 8 Agenda Page 113 8. Have there been any current or past bankruptcies on the part of the business, or on the part of any current(or prospective) officer, principal, owner or in any business dealings of current (or prospective) officers, principals, or owners of the applicant entity? ❑ Yes M No 9. List holders of outstanding stock of 10%or more of business ownership. For holders over 20%and holders over 10%that are active in the business, personal financial statements must be submitted. Name Title %of Ownership Casey Darkenwald CEO/President 44% Headwaters Modular, LLC Michael Hoagberg/Brian Nicholson 35% 10. List officers/ key employees and include resumes (President, Vice President, etc.): CompanyName Title Years at Casey Darkenwald CEO/President 1 Part 2A attachments: *Narrative (Items a-c) * 3 Yrs. Financials *2 Yrs. Projections ❑ YTD Financials * Item 3 Documents ❑ Item 6 (if applicable) ❑ Item 7 (if applicable) * Personal Financial Statements * Resumes SECTION 3 - Project Overview PART A - Project Description Describe the project for which MIF funds are being requested. 1. Please attach a narrative and include the following information: a. Provide details for the project for which MIF funds are being requested. Discuss topics such as square footage, lease versus ownership, machinery and equipment, new construction versus renovation, leasehold improvements, etc. b. Is this a new facility/site, expansion and/or acquisition? c. Will the business purchase, lease, or construct the facility? Who will own the facility? d. Explain why MIF financing is necessary for this project to move forward (e.g. financing gaps, lack of collateral, potential non-Minnesota locations). 2. Attach a commitment letter from each financing source, including a letter of commitment for any business equity. Part 3A attachments: * Project Narrative (Items a-d) * Commitment Letters PART B - Project Timeframe Task Estimated Completion Date Commitment of Funds 4/15/2021 Start of Construction 5/1/2021 Purchase Equipment 5/1/2021 Equipment in Service/Occupancy(for MIF funded activities) 12/1/2021 Rev. 07.08.19 9 Agenda Page 114 PART C - Project Sources & Uses Use of Funds MIF Bank Equity Local Other Total Government Property Acquisition $ 5,671,512 $ 5,671,512 Site Improvement $ 0 New Construction $ 16,628,000 $ 16,628,000 Renovation of Existing Bldg. $ 0 Purchase of M & E $ 450,000 $ 4,456,159 $4,906,159 Other $ 0 Total Project Cost $ 450,000 $ 26,755,671 $ 0 $ 0 $ 0 $27,205,671 Term (years) Interest Rate 1. Do you acknowledge that Personal or Parent Company Guarantees are required as a condition of the MIF loan? N Yes 2. Describe source of any"Equity" listed: N/A 3. Description of"Other" source of funds: N/A 4. Description of"Other" use of funds: N/A 5. Describe collateral offered and collateral position for each funding source, including proposed MIF award (e.g. Letter of Credit, Lien on Equipment, Mortgage): Source Collateral Position MIF Equipment First PART D - Detailed Job & Wage Information 1. Current number of permanent, FTE employees in Minnesota: 0 2. Current number of permanent, FTE employees at proposed MIF project site: 0 *Provide a most recent payroll report to document current employment levels. Social security numbers and other sensitive information should be redacted. 3. Will any jobs be relocated from another Minnesota site to the proposed MIF site? ❑ Yes 0 No 4. If yes,which location(s)will the employees be relocated from? #of Positions *For jobs relocated from another Minnesota location, a letter in support of the move from the city where the jobs will be moving from must be attached. 5. Will there be any reduction of positions (non-transfers) at other company sites during the next two years, or a reduction in purchases from Minnesota suppliers or vendors as a result of the project? If yes, please describe. No 6. Number of new FTE jobs to be created within 2 years at the MIF Project site: 134 *Full-time equivalent(FTE)permanent jobs based upon expected work hours of 2080 annually 7. Which eligible non-mandated benefits will be provided? a. 0 Health 0 Dental 0 Retirement 0 Life ❑Profit Sharing/Bonuses Part 3D attachments: ❑ Payroll Report ❑ Letter of Support(if applicable) Rev. 07.08.19 10 Agenda Page 115 JOB CREATION FORM - List All Permanent Jobs to Be Created Number Hourly Cash Hourly Total Hourly •. • Value of Compensation positionsof (List permanent FTE Please see AVA_ Staffing Projections PDF $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 Total jobs to be Created: 134 Average hourly wage: $ 27.69 Average hourly benefits: $ 5.12 *For the purposes of the Minnesota Investment Fund program,jobs considered must be non-contract, non-seasonal, permanent full-time (or part time that add to 2080)equivalent positions working at least 2080 hours per year. ** Only eligible non-mandated benefits to the employee as indicated in Part D question#8. Social security tax, unemployment insurance, workers compensation insurance and other benefits mandated by law must be excluded. *** Total compensation including base wage and benefits must be at least 110%of the federal poverty income level for a family of four(verify current wage levels with loan officer at the time of application). ****Each wage level should be indicated separately, do not use average wages. Rev. 07.08.19 11 Agenda Page 116 PART E - Environmental 1. Are there any environmental risks associated with the site, building, or the business itself? ❑Yes M No If yes, please describe: 2. Have state environmental review requirements been met? 0 Yes ❑ No ❑ N/A SECTION 4 - Business Acknowledgement and Certifications Data Privacy Acknowledgement: Tennessen Warning Notice: per MN Statutes 13.04, Subd.2, this data is being requested from you to determine if you are eligible for assistance from the Minnesota Department of Employment and Economic Development. You are not required to provide the requested information, but failure to do so may result in the department's inability to determine your eligibility for assistance. The data you provide that is classified as private or non-public and will not be shared without your permission except as specified in state and federal laws. Data Privacy Notice: per MN Statutes 13.591, Subdivision 1, certain data provided in this Application is private or non public data; this includes financial information about the business, including credit reports,financial statements, net worth calculations, business plans; income and expense projections; balance sheets; customer lists; income tax returns; and design, market, and feasibility studies not paid for with public funds. Per MN Statutes 116J.401, Subd. 3., certain data provided in this application is private data; this includes data collected on individuals pursuant to the operation of business finance programs. Business Certification: Financial Assistance Certification: I hereby certify that the Minnesota Investment Fund program is necessary to my business start-up or expansion and that without the Minnesota Investment Fund my business start-up or expansion project would not happen to the extent outlined in the Minnesota Investment Fund Application. I certify that I will not count any existing positions or employees moved or relocated from another of Minnesota facility where my business conducts operations as new permanent full-time employees for the purposes of fulfilling requirements of the Minnesota Investment Fund Program. I certify I will not terminate, lay-off, or reduce the working hours of an employee for the purpose of hiring an individual to fulfill the requirements of the Minnesota Investment Fund Program. I have read the above statements and I agree to supply the information requested to the MN Department of Employment and Economic Development, Office of Business Finance with full knowledge of the information provided herein. I certify that all information provided herein is true and accurate and that the official signing this form has authorization to do so. Name/Title of Business Official: Casey Darkenwald, President & CEO Signature of Business Official: Date: Rev. 07.08.19 12 Agenda Page 117 Job Listing Notice A business receiving financial assistance from the State of Minnesota in an amount in excess of$200,000 for a single project shall work with DEEDS Employment and Training staff to list any vacant or new positions related to the project on www.careerforcemn.com per Minn. Stat. 116L.66.The employer is also encouraged to enlist the services of DEED's Employment and Training staff to recruit and refer job candidates. The Job Listing requirements follow these easy steps: 1. At the time of financing award, DEED's Business Finance Office will provide written notification of the award to DEED's Employment and Training staff.This notification will include the business name, address and phone number(as well as for the contact person) and the number and type of jobs to be created as a result of the DEED assistance. 2. The Employment and Training representative will contact the business to schedule a meeting to sign a Job Listing Agreement that details how positions will be posted on www.careerforcemn.com.The employer is required to list only those job openings that are part of the project DEED is assisting. 3. Managerial positions, positions that require unusual skills, knowledge, abilities and/or experience not common to the labor market, and job openings to be filled by internal promotion will not subject to the Agreement and need not be listed on www.careerforcemn.com. 4. The business will notify the Employment and Training staff of job openings and will ensure that job vacancies are entered into www.careerforcemn.com at least 15 days prior to the anticipated hiring date. Employment and Training staff may refer the employer to free services that can expedite the job order entry. 5. Applicants will follow instructions on www.careerforcemn.comto apply for open positions. However,the business will make all decisions on which candidates they will interview and hire. 6. The employer may continue to use other recruitment and job referral services in addition to www.careerforcemn.com and may fill positions rp for to meeting with Employment and Training staff and signing the Job Listing Agreement. The Job Listing Notice is designed to help businesses recruit and hire qualified candidates. If you have questions about using www.careerforcemn.com, please contact your Employment and Training (https://mn.gov/deed/business/help/workforce-assistance/wf-strateey.asp) or the www.careerforcemn.com Help Desk Specialist at(651) 259-7500. Certification I have read the above information and understand that as a recipient of state financial assistance in excess of$200,000, a representative shall meet with DEED Employment and Training staff and agree to sign a job listing agreement and post project-related jobs on www.careerforcemn.com following the meeting. Casey Darkenwald, President & CEO (612) 598-3920 Printed Name and Title of Business Contact Phone Signature Date Rev. 07.08.19 13 Agenda Page 118 Consent to Release Private Business Employment and Wage Data Collected and Maintained by the Minnesota Unemployment Insurance Program To qualify for financial assistance from the DEED Office of Business Finance, your business must agree to create or retain a minimum number of jobs within a specific period of time.These jobs must also pay at or above specified wage levels. To verify that these requirements have been met,the Office of Business Finance uses quarterly wage records submitted by businesses to the Minnesota Unemployment Insurance Program. Because Unemployment Insurance records are private, we need your permission to access records about your business. The records we seek to access include: • Aggregate Minnesota employment levels for your business • Aggregate Minnesota employment levels at the relevant project site • Information about your compliance with Unemployment Insurance tax and reporting requirements It is important to note that we will not receive the names or social security numbers of your employees. If you sign this form, your records will be securely transmitted by Unemployment Insurance Program staff to the Office of Business Finance.The Office of Business Finance will receive your Unemployment Insurance records on an ongoing basis until your business subsidy agreement expires or is terminated. We will not release any data from your Unemployment Insurance records to any other parties. You are not legally required to grant us access to your Unemployment Insurance records.You also have the right to withdraw your permission at any time. Please note, however, that refusal to grant access to your Unemployment Insurance records may limit your eligibility for financial assistance. If you have questions about this form, please contact Bob Isaacson, Executive Director, Office of Business Finance at 651-259-7458 or bob.isaacsonCDstate.mn.us. I give my permission for the Unemployment Insurance Program to release the records about my business(as described in this form) to the DEED Office of Business Finance. 1 understand that these records will be used by the Office of Business Finance to verify the satisfaction of requirements associated with my business subsidy agreement. Advanced Volumetric Alliance, LLC Signature of Business Official Business Name Date Casey Darkenwald President & CEO Printed Name of Business Official Position casey@darkenwaldcorp.com (612) 598-3920 E-mail Phone 84-4867127 Employer Identification Number(EIN) Used for Project Site Other Employer Identification Numbers (EINs) Used by Business Rev. 07.08.19 15 Agenda Page 119 Notice: Accurately Reporting Business Units to the Minnesota Unemployment Insurance Program This notice is a reminder that Minn. Stat. § 268.044 requires your business to submit quarterly wage records to the Minnesota Unemployment Insurance Program by "reporting unit". You have the option to split reporting units for your business by physical location, financial centers, division of labor, or user security requirements. For the purposes of monitoring job creation and wage level performance per your business subsidy agreement, the Office of Business Finance strongly recommends creating a specific reporting unit for the relevant project site. Reporting units can be added or modified as follows: To add a reporting unit: 1. Log in to your account at www.uimn.org 2. On My Home Page, click Account Maintenance. 3. Click Maintain Reporting Units. 4. Click Add New Reporting Unit. 5. Enter reporting unit information. 6. Click Next.The Address Validation page opens. 7. Confirm the address, and then click Next. 8. Verify the reporting unit information. 9. Click Submit. To inactivate a reporting unit: 1. Log in to your account at www.uimn.org 2. On My Home Page, click Account Maintenance. 3. Click Maintain Reporting Units. 4. Under Active Reporting Units, click the reporting unit link. 5. Under Inactivate Reporting Unit, check the checkbox Inactivate Reporting Unit. 6. Enter the date of last covered wages for this reporting unit. 7. Select the reason for inactivating this reporting unit from the drop down menu, and then click Next. 8. Verify the reporting unit information and benefit account mailing address. 9. Click Save. If you have any questions about reporting units or other aspects of the Unemployment Insurance wage detail submission process, contact Aaron Tell, Unemployment Insurance Outreach Specialist, at 651-259-7567/ aaron.tell(@state.mn.us. Advanced Volumetric Alliance, LLC Signature of Business Official Company Date Casey Darkenwald President & CEO Printed Name of Business Official Position casey@darkenwaldcorp.com (612) 598-3920 E-mail Phone Rev. 07.08.19 16 Agenda Page 120 Targeted Population Designation Characteristics In order to qualify for Targeted Population Designation, the business must be majority (at least 51%) owned by persons who meet certain qualifying characteristics. One or more individuals may be included when determining eligibility. Please provide information regarding qualifying characteristics of the owner(s). Check all that apply: ❑ Minority Minority group members are citizens (or lawfully admitted permanent residents) of the United States who belong to one or more of the following groups: a) "Black Americans," which includes persons having origins in any of the Black racial groups of Africa; b) "Hispanic Americans,"which includes persons of Mexican, Puerto Rican, Cuban, Dominican, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race; c) "Native Americans,"which includes persons who are American Indians, Eskimos,Aleuts, or Native Hawaiians; d) "Asian-Pacific Americans,"which includes persons whose origins are from Japan, China, Taiwan, Korea, Burma (Myanmar),Vietnam, Laos, Cambodia (Kampuchea), Thailand, Malaysia, Indonesia, the Philippines, Brunei, Samoa, Guam, the U.S. Trust Territories of the Pacific Islands (Republic of Palau), the Commonwealth of the Northern Marianas Islands, Macao, Fiji,Tonga, Kiribati,Juvalu, Nauru, Federated States of Micronesia, or Hong Kong; e) "Subcontinent Asian Americans,"which includes persons whose origins are from India, Pakistan, Bangladesh, Bhutan, the Maldives Islands, Nepal orSri Lanka; ❑ Woman ❑ Veteran Veteran means a citizen of the United States or a resident alien who has been separated under honorable conditions from any branch of the armed forces of the United States after having served on active duty for 181 consecutive days or by reason of disability incurred while serving on active duty, or who has met the minimum active duty requirement as defined by Code of Federal Regulations, title 38, section 3.12a, or who has active military service certified under section 401, Public Law 95-202.The active military service must be certified by the United States secretary of defense as active military service and a discharge under honorable conditions must be issued by the secretary. ❑ Person(s) with disabilities The term "disability' is defined under the Americans with Disabilities Act and means, with respect to an individual: a) a physical or mental impairment that substantially limits one or more major life activities of such individual; b) a record of such an impairment; or c) being regarded as having such an impairment. I certify that the business is at least 51%owned by person(s)who are representative of one or more of the qualifying groups. Casey Darkenwald, President & CEO Name/Title of Authorized Business Representative Signature of Authorized Business Representative Date Rev. 07.08.19 17 Agenda Page 121 nun ADVANCED VOLUM ETPIC ALLIANCE Section 1 Part B— Community Needs & Capacity 1. Economic Vulnerability of the community (e.g., need to diversify industrial base, underemployment of labor pool, labor pool needs): According to the U.S. Census Bureau—ACS 5 year Estimate; in 2018, only 14.8 % of the employment opportunities in Albertville were Manufacturing/Production occupations. Over 46% of the job groups in Albertville were Retail Sales, Health Care Services, Service Businesses and Entertainment. The CoVid 19 pandemic has severely impacted these job groups in Albertville, demonstrating the need to diversify the local employment opportunities and provide quality jobs offering livable wages. Advanced Volumetric Alliance, LLC (AVA)is a proposing to construct to a 178,000+ sq. ft. manufacturing plant on 33 acres in Albertville. This industrial facility will create approximately 130 new jobs within the City. The anticipated mean wages will be $22.50 an hour with $4.00 an hour benefits. This industrial project will become the first anchor business in the new Albertville Business Park achieving the City's ambition for quality local job opportunities, diversified employment choice and strong local tax base. 2. Unique factors demonstrating effective inducement of economic development(e.g., recent loss of large employer, labor pool, dependent upon one sector of industry, seasonality of employment, natural disaster, filling long vacant space, long-term member of business community, contributes to cluster industry, tax base increase): In 2009, with the success of the Albertville Outlet Mall,planned I-94/CR 19 interchange improvements, long-range planning of the Kadler Avenue/I-94 interchange and Wright County highway improvements, the City of Albertville guided and zoned 66 acres of the land in northeast portion of the city from industrial to Commercial and Business Park land uses. Since 2009,retail commercial development trends and retail shopping patterns have changed significantly. Additionally, some of the anticipated area improvements did not evolve. In assessing these trends, the City is re-examining the desired land use for the Agenda Page 122 northwest corner of the City. This area of the City has excellent visibility, street network and utility capability appropriate for the successful creation of an industrial park. AVA provides an opportunity for a public/private partnership that will bring the City's ambitions into reality. AVA will be the initial anchor for the industrial park,which is expected to generate spin-off businesses that will provide products and services to AVA in the production of volumetric housing units. 3. Lack of local jobs (e.g., recent population decline due to lack of employment, significant outmigration, or population working outside the community) With a lack of well-paying industrial jobs in the community,Albertville' s most common job groups within the City are retail sales,restaurant and service businesses. According to the U. S. Bureau of Labor Statistics for the Minneapolis—St. Paul area, the aforementioned business groups provide the following median and mean hourly wages. Median Mean Retail Salesperson: $12.56/hr. $14.62/hr. Food Preparation and Serving: $12.44/hr. $14.02/hr. Personal Care and Service: $13.62/hr. $15.75 /hr. The MIF grant can help diversify the type of jobs in Albertville while increasing the number of well-paying jobs. The anticipated median wages at AVA are $22.50 an hour with $4.00 an hour benefits. 4. Project will support the economic viability of underserved businesses (i.e., veteran, minority, disabled, or women owned). If applicable,business must complete self- certification page 17 5. Describe the local government's experience and ability to manage the grant, revolving loan fund, state and local compliance requirements, and the implementation of this proj ect The City of Albertville has had previous success in the receiving State revolving loan funds and has facilitated the management,record keeping and reporting of the DEED grant and revolving loan program Agenda Page 123 Starting in 1992 the City of Albertville facilitated a State revolving loan fund, but in August 2019 the City opted to use the one-time exception to release the funds. During the duration of the loan, the City successfully met all state guidelines and requirements associated with the annual reporting and administration of the loan funds until its termination in 2019. 6. Describe how the MIF project will strengthen and/or diversify the local or Minnesota economy This project will provide a type of manufacturing which currently does not exist in Minnesota. It will allow many who are now working seasonal or non-full-time positions to be employed, with benefits,in a full-time role, utilizing and improving upon their existing skill sets. Additionally, it will provide opportunities for people in/around Albertville to work near their homes and families versus traveling from project to project. Additionally, serving a 700-mile radius, this plant will serve many projects in surrounding states (and Canada)with made in Minnesota product, bringing revenue in from surrounding states. Section 2 Part B—Business Description 1. Please attach a narrative and include the following information a. Business Overview and Company History AVA is an alliance of strategic partners who have proven success for decades in construction and development. Owning this volumetric plant together is a time and price competitive advantage for implementing projects faster, cheaper, and with a more streamlined communication enabled by AVA's vertical integration from planning to occupancy. Founded by Casey Darkenwald, Brian Nicholson, Michael Hoagberg, Mike Mergens, Darren Lazan, Jason Carter, Mike Monson, and Bob Kelly, the firm has extensive and complimentary experience in real estate investment, development, and construction. The AVA management team has decades of experience developing all types of properties. We currently have developments and pipeline underway and this volumetric plant is a way to make our developments and our clients' developments drastically more efficient from vertical integration from planning to certificate of occupancy. Agenda Page 124 Planning and entitlement • Landform (Darren Lazan)plans and engineers 100+projects every year with his team of over 55 professionals Construction • Benson Orth (Mike Monson)just celebrated its 501h anniversary • Bob Kelly - 40 years and billions of dollars in construction experience • Jason Carter- 30 years of modular construction operations, staffing, and development experience Development • All of the partners have development experience for themselves and clients • Headwaters Development(Brian Nicholson and Michael Hoagberg)is a full- service real estate development company primarily focused on the multi-family commercial sector, including development and operations • Darkenwald Family - 45 years of development experience • Mike Mergens - 20 plus years of development experience for himself and many large developer clients in Minneapolis b. Product or industry outlook for the MIF project Let's start with the difference between manufactured homes and modular/volumetric homes. Manufactured homes are constructed according to a code administered by the U.S. Department of Housing and Urban Development(HUD Code). The HUD Code, unlike conventional building codes, requires manufactured homes to be constructed on a permanent chassis and is classified as personal property. Modular/volumetric homes are constructed according to state building codes. The constructed unit is placed on a permanent foundation never to be moved and is considered real property. Since WWII, the U.S. has seen significant technological innovations giving rise to the U.S. volumetric construction industry. Advances in software, automation, and Building Information Modeling (BIM) as well as new processes and materials have made it possible to prefabricate and deliver more sophisticated and complex buildings than was previously possible. In the United States the acceptance of volumetric construction methods is growing, with 49% of healthcare facilities, 42% of college buildings and dorms, and 42% of manufacturing buildings using some form of prefabrication or volumetric construction. It is not too difficult to find articles citing the construction industry's woes over the shortage of available skilled workers. All sorts of initiatives, efforts, and conferences have been held on the topic for the last decade or so in an effort to reach more young people and gain more entrants into the industry. According to the Bureau of Labor Statistics (BLS) and National Association of Home Builders (NAHB)there are currently 143,000 vacant construction positions nationwide. And these job Agenda Page 125 openings are not minimum wage positions either. BLS data shows that the mean wages for a person in the non-residential building industry is just over$25.00 per hour. Of course, this is a general average among all trades and regions, but certainly respectable pay. A recent survey by the NAHB revealed that 69% of its members were experiencing delays in completing projects on time due to a shortage of qualified workers, while other jobs were lost altogether. And the problem isn't going away anytime soon. According to the 2015 Workforce Survey Results from Associated General Contractors of America, over 60%believe it will continue to be hard to hire or become harder to hire construction professionals. In 2010, the average age of a construction worker was 40.2 years. By 2016,that number rose to 42.7 years, demonstrating that the workforce continues to age. Construction is changing and the industry needs to as well. The labor shortage is drastically affecting current projects and pricing. Cold and hot climates both add risk and quality challenges that volumetric construction drastically helps. Thousands of apartment buildings have been built in Minnesota in the last few years and were all designed from scratch. A library of unit designs that work and have been tested and improved upon year after year in BIM will save millions in design and months of predevelopment and planning. AVA's facility will provide an enclosed plant that is not impacted by weather, which enables skilled construction professionals a more comfortable, less labor-intensive work environment, keeping these skilled workers in the workforce longer than they may have otherwise been able to. These projects are built with same materials and techniques as stick-built and use conventional framing materials and techniques in unconventional setting. This not only allows for a much higher level of quality control, but construction waste is also reduced by 60-70%. More benefits of utilizing volumetric construction methods include cost efficiency, as modular apartment building projects are up to 20% less expensive and can regularly be delivered up to 50% faster than stick-built developments. c. Markets for the MIF project(local, statewide, national, international) & competitive advantage for each Medical (hospitals, doctor's offices, medical clinics, urgent care centers, dentist offices, dialysis facilities, and more) Commercial Residential (single family homes, townhouses, multi-family apartments) Mixed-Use Hospitality (hotels) Education (student housing) - Competitive advantages: • Quick build time • Faster delivery Agenda Page 126 • Same quality standards as conventional buildings • Flexibility for expansion • Cost savings • Easy procurement process 2. Attach 3 years historical financials (profit&loss /balance sheets), 2 years financial projections, and year to date internally generated financials. If available, audited or reviewed financials are required. If not available, copies of tax returns will be required. Section 3 Part A—Proiect Description 1. Please attach a narrative and include the following information: a. Provide details for the project for which MIF funds are being requested. Discuss topics such as square footage, lease vs ownership, machinery and equipment, new construction versus renovation, leasehold improvements, etc... Phase 1: 187,000 square feet—all new construction 130+Direct workers 305+ Indirect workers 4-5 units per day output(one shift) Can produce: -Multi-Family -Hotel Units -Residential Homes -Commercial Units b. Is this a new facility/site, expansion and/or acquisition? Agenda Page 127 New facility c. Will the business purchase, lease or construct the facility? Who will own the facility? The business will construct and own the facility. d. Explain why MIF financing is necessary for this project to move forward(e.g. financing gaps, labor of collateral,potential non-Minnesota locations) Upon initial conversations with the city of Albertville about zoning their site for our project, we wanted to make sure we were finding the most suitable location for production and distribution as this facility will service a 700 mile radius customer-wise. We thus looked at options across 7 states (including MN) While other locations continue to be explored in adjacent states, we are very interested in locating this project in Albertville, MN. No final decisions or commitments have been made— nor will they until we successfully complete all incentive contracts with both city and state (DEED) governmental agencies, which is a key contingency of our financial backer. Because other states and markets farther from metropolitan areas offer a lower operating and tax cost structure, it is important to our financial backer that we close gaps in the capital stack as well as offset these increased costs attributed to an Albertville location for our project through local and state financial incentives. Agenda Page 128 NORTHLAND PUBLIC FINANCE ® City of Albertville ®® Tammy Omdal OEM January 25,2021 Offl 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. ® ®® 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 129 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. 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 130 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 131 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 132 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 133 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 134 NORTHLAND PUBLIC FINANCE ® City of Albertville ®® Tammy Omdal OEM February 11,2021 Offl Business Credit Check for AVA Project The City of Albertville (the "City') requested that Northland Securities complete a due diligence investigation on the business owners holding 10 percent or more of Advanced Volumetric Alliance, LLC(the"Business"). According to information provided to Northland by the Business the following owners holding 10 percent or more of the Business: - Casey Darkenwald - Headwaters Modular,LLC Northland Securities subcontracted with Heartland Investigative Group or American Security, LLC, located in Minneapolis,Minnesota,to complete the investigation.The areas of research,covering a ten- year period,included the following: - Social Security Validation - Federal Bankruptcy Court - Federal District Court(Civil/Criminal) - Civil Litigation Search - Criminal Search - Sex Offender Registry - Tax Lien&Judgment Search - Nationwide Database Search - Credit Bureau Report The investigation did not find any adverse records. General information was noted for the Civil Litigation Search and the Credit Bureau Report. 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 135 90 South Seventh Street MAIN 612.317.2000 1800.227.0786 Suite 4300 Minneapolis,MN 55402 Coffiers colliers.com INTERNATIONAL Mr. Casey Darkenwald Darkenwald Corporation January 20, 2021 Dear Mr. Darkenwald, On behalf of Colliers Mortgage, a division of Colliers International ("Colliers"), I am writing to provide an opinion of the ability to finalize financing for Adavanced Volumetric Alliance, LLC ("Borrower") to build a new volumetric construction plant ("Project"). I have reviewed the Borrower's proforma and financial projections. The Borrower's proforma identifies tax increment financing ("TIF") and financial incentives from the Department of Employment and Economic Development ("DEED") Job Creation Fund program and the Minnesota Investment Fund as a source of incentives for the Project (collectively "MIF/JCF Funds"). Financial commitments from lenders will be exercised upon securing the local (TIF) and state (MIF/JCF) financial incentive programs funds as well as completing the lender underwriting process. Please let me know if you have any questions. Sincerely, Troon N. Dowds Vice President Colliers Mortgage Copyright©2018 Colliers International. Information herein has been obtained from sources deemed reliable,however its accuracy cannot be guaranteed.The user is required to conduct their own due diligence and verification. Colliers Mortgage is the brand used by Colliers Mortgage LLC and Colliers Funding LLC Agenda Page 136 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2021-005 RESOLUTION IN SUPPORT OF A JOB CREATION FUND (JCF) GRANT APPLICATION IN CONNECTION WITH ADVANCED VOLUMETRIC ALLIANCE (AVA) TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT WHEREAS,the City of Albertville desires to assist AVA, a manufacturing business which is proposing to construct a 178,000+ square foot manufacturing facility within the City; and WHEREAS,the City of Albertville, understands that AVA, through and with the support of the City intends to submit to the Minnesota Department of Employment and Economic Development an application for an award/or rebate from the Job Creation Fund Program (JCF); and WHEREAS,the City of Albertville,has conducted a public hearing at their January 4, 2021 City Council meeting to solicit public comments and consider the JCF grant application. NOW,THEREFORE BE IT RESOLVED,that the City Council of Albertville, Minnesota, after due consideration hereby adopts the following Finding of facts related to the project proposed by AVA and the grant application for an award and/or rebate from the Job Creation Fund Program and express their approval. 1. Finding that the project is in the public interest because it will encourage the growth of commerce and industry, prevent the movement of current or future operations to move outside of Minnesota, result in increased employment in Minnesota and preserve the state and local tax base. AVA is a new start-up company that is proposing to construct a 178,000+ square foot manufacturing facility in Albertville. This project will create 130 new jobs in Albertville Minnesota. The site and building will bring over $14,000,000 of site improvements and building value to the City. 2. Finding that the proposed project, in the opinion of the City Council, would not reasonably expected to occur solely through private investment within the reasonable future. The proposed development site for the AVA project falls within a larger undeveloped property. The subdivision and improvements required for the development of the AVA project include improvement not exclusive to their lot. Area improvements related to street construction, regional storm water management and extension of utilities increase the financial burdens on this project. The City of Albertville will be providing financial assistance through Tax Increment Financing to help with improvements that benefit the area beyond the development site; however, the JCF funds are needed to assist in the job creation and payroll assistance for this start up business. Agenda Page 137 City of Albertville Resolution No.2021-005 Meeting of February 16,2021 Page 2 3. Finding that the proposed project conforms to the general plan for the development or redevelopment of the City as a whole. The City of Albertville has approved a Comprehensive Plan amendment to guide this area of the community for industrial development. In considering this land use, the site offers the following characteristics that make the area appropriate for industrial development. • Located in the northwest corner of Albertville, the proposed site offers land area large enough to support the industrial land uses. Providing a site for AVA and allows additional sites for the creation of an industrial park. • The location of the site provides a degree of separation from less intense land uses; that allows industries to operate unencumbered without creating compatibility or nuisance issues. • The site has excellent access to Interstate 94,providing convenient travel routes for the company's suppliers and the transport of finish product to customer sites. • The site has access to the City's utilities. Industrial development in this area will not overburden City utilities or services. • The Project is consistent with the City's Comprehensive Plan goals of promoting economic development to expand local employment opportunities and expand tax base. • The introduction of this new industry to Albertville will help diversify local employment opportunities with a city that is heavy skewed to retail and service businesses. This diversification is beneficial to the entire community. 4. Finding that the proposed project will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the redevelopment or development of the project by private enterprise. The AVA project represents a private sector/public sector partnership that advances the Albertville's goals for economic development. This project alone will create 130 new jobs at a pay scale that exceeds the average pay scale of retail or service job groups. This will expand the city tax base. Beyond this AVA project, this development will provide opportunity for expanded industrial growth within the City by becoming the first major anchor for a larger Albertville Industrial park. The subdivision and improvements related to the AVA project will open additional land up for industrial and commercial development. AVA will attract suppliers and complimentary business that will benefit by being in close proximity to AVA. This will perpetuate the City's industrial growth which is consistent with the needs of the City. Adopted by the City Council of the City of Albertville this 16th day of February, 2021. Jillian Hendrickson, Mayor ATTEST: Kristine A. Luedke, City Clerk Agenda Page 138 MEMPLOYMENT AND ECONOMIC DEVELOPMENT Job Creation Fund (JCF) Program Application Please consult with DEED before completing this application. APPLICATION PROCEDURES The Job Creation Fund (JCF) Program provides job creation awards and capital investment rebates to designated businesses that retain or create high-paying, full-time permanent jobs and invest in real property improvements. The program is available statewide for manufacturing, distribution, warehousing, and other eligible business activities. Business must be able to locate outside of Minnesota and be able to serve the same customers. Applications are accepted on a year-round basis as funds are available. Projects that begin prior to becoming designated by DEED are not eligible for the Job Creation Fund. Project start activities include signed contracts, building permits, construction, and other activities that indicate the project would move forward as planned without a JCF award or rebate. To become a designated JCF business and receive benefits, a business must work in conjunction with the city, county, or township government (Local Government) where the JCF business will be located. A JCF application must be completed and submitted to the Department of Employment and Economic Development(DEED) by the Local Government. Step-by- step instructions are listed below and applications may be submitted by mail or email to: Tom Washa Program Administrator—Principal 332 Minnesota Street, Suite E200 St. Paul, MN 55101 iobcreationfund(@state.mn.us PRE-AWARD PROCESS In consultation with DEED, the Local Government will make a preliminary determination about whether a business meets the minimum program requirements. Use the Job Creation Fund Eligibility and Application Checklist on the program website for guidance. If a business is potentially eligible, the following steps are to be completed: 1. The business and Local Government work together to complete the JCF Application. A Local Government resolution in support of the project must be included. The required template is included in this application. The Local Government will submit the completed application to DEED. 2. DEED evaluates the application and notifies the Local Government and business of approval or denial. If approved, DEED will formally designate the business as a JCF business via an award letter and determine a job creation and/or capital investment rebate amount. Awards and/or rebates of$500,000 or more require DEED to hold a public hearing prior to formally designating the business as a JCF business. Awards and/or rebates of $200,000 or more require that construction adhere to prevailing wage rules. 3. The project may begin once an award letter has been signed, however no jobs created or capital investment expenditures will be eligible until a Business Subsidy Agreement (BSA) has been fully executed. Rev. 10/08/19 1 Agenda Page 139 POST-AWARD PROCESS 4. DEED and the JCF business will enter into a BSA specifying the details of the award and/or rebate to be provided after job creation and capital investment goals are met. The JCF business and the DEED commissioner sign the BSA. The date of final signature is considered the project Designation Date. 5. Jobs created and/or capital investment expenditures may be counted on or after the Designation Date. 6. The Local Government will assist the JCF business as needed with submitting required annual progress reports, payment request documentation, and other information requested by DEED. SECTION 1 - Local Government and Business Applicant Information Local Government Information Local Government Project Sponsor: Local Government Contact Name and Title: City of Albertville Adam Nafstad, City Administrator Email: Telephone: anafstad@ci.albertville.mn.us (763) 497-3384 x100 Address: City/State/Zip: 5959 Main Ave NE; P.O. Box 9 Albertville, MN 55301 Business Information Business Legal Name: Parent Company(If Applicable): Advanced Volumetric Alliance, LLC Street Address for JCF Project Site: Business Mailing Address: Property ID: 101500352100 7535 River Road NE City/State/Zip for JCF Project Site: Business Mailing City/State/Zip: Albertville, MN 55301 Otsego, MN 55330 Primary Business Contact: Contact Title: Casey Darkenwald CEO/President E-mail: Telephone: casey@darkenwaldcorp.com (612) 598-3920 Business Website: FEIN: 84-4867127 NAICS Code: SWIFT Minnesota Vendor Number*: 321992 0001078079 1. Is 51%of the business cumulatively owned by minorities, veterans,women, or persons with a disability? ❑ Yes ® No If you answered "Yes" to this question, please complete the Targeted Population Designation Characteristic Form included in this application. 2. Does the property or the business have any outstanding local, state, or federal tax liabilities? ❑ Yes ® No 3. Are there current or unsatisfied judgements or injunctions against the business or owners? ❑ Yes ® No If you answered "Yes" to this question, please describe. 4. Is there current or pending litigation involving the business? ❑ Yes ❑ No If you answered "Yes" to this question, please attach a summary and disposition. Rev. 10/08/19 2 Agenda Page 140 5. Within the past five (5)years, has there been any violation(s), citation(s), or complaint(s) of discrimination filed against the company in a state or federal court or before any state, federal, or local government agency? ❑ Yes ® No If you answered "Yes" to this question, please attach a copy of the violation(s), citation(s), or complaint(s) and the disposition of each. * Every individual or organization doing business with the state is considered a vendor. If you are intending on submitting an application,you will need to register as a vendor by going to: https://mn.gov/mmb/accounting/swift/vendor-resources/. The vendor number will ensure proper payment via electronic funds transfer(EFT)once performance goals are met. For new vendors, please note that approval of your registration may take 3-4 business days. If you need assistance obtaining a Vendor Number or completing the registration process,please call 651-201-8100,Option 1 SECTION 2 - Project Overview 1. Has the project started (i.e., Contracts have been signed, leases without contingency language have been executed, building permits have been issued, or construction started on-site)? ❑ Yes ® No If you answered "Yes" to this question, the project is ineligible for the JCF Program. Please contact DEED to see if there is a different program that you may be eligible for. 2. Could this project be located outside of Minnesota and serve the same customers? ® Yes ❑ No If you answered "No"to this question, you may be ineligible to apply for the JCF Program. Please contact DEED to discuss. 3. Project Type: ❑X Start-up Company(New business with no parent company or current operations) ❑ Minnesota Expansion—On Site (Expansion of an existing facility) ❑ Minnesota Expansion—Off Site (Expansion of an existing MN company at a new site) ❑ Out of State Expansion (Expansion to MN by a company with existing operations outside of MN) 4. Project Involvement: 0 Construction of new facility that will be owned by the business or a related party ❑ Renovations to an existing facility currently owned or to be acquired by the business or a related party ❑ Leasing a facility to be constructed by an unrelated third party ❑ Leasing an existing facility where leasehold improvements will be made by an unrelated third party 5. Are there facility or land limitations that do not allow the business to expand at an existing Minnesota facility? ❑ Yes ❑ No ® Not Applicable 6. Has state environmental review requirements been met for the project? ® Yes ❑ No ❑ Not Applicable Rev. 10/08/19 3 Agenda Page 141 7. Project Timeframe: Task: Estimated Completion D. Commitment of Funds 4/15/2021 Start of Construction 5/1/2021 Purchase Equipment 5/1/2021 Complete Construction 12/1/2021 Begin Operations 12/1/2021 8. Project Sources and Uses: Since the Job Creation Fund is pay-for-performance, do not include an anticipated JCF award or rebate as a source or use of funds. OtherUse of Funds Bank(s) Equity State Local (e.g. MIF) Government Property Acquisition $5,671,512 $ 5,671,512 Site Improvement $ 0 New Construction $16,628,000 $ 16,628,000 Renovations of an Existing Building Purchase of Machinery& $4,456,159 $450,000 $4,906,159 Equipment Other $ 0 Total Project Cost $26,755,671 $ 0 $450,000 $ 0 $ 0 $ 27,205,671 Description of"Other" source of funds: N/A Description of"Other" use of funds: N/A Rev. 10/08/19 4 Agenda Page 142 9. List and provide amount of other public financial assistance and location in which the business has received within the last five years or expects to receive related to this expansion from state or local governments, such as loans, grants, or project specific tax benefits (e.g., tax increment financing, tax abatements, tax refunds): Subsidy Grantor Subsidy Amount Date Received/ Type of Subsidy Location where Subsidy Will be Received Received/Used Example: City $100,000 01/01/16 Loan St. Cloud, MN TIF $ 1,450,000 3/1/2021 TIF Albertville, MN 10. Current number of permanent, full-time (2,080 hours) employees company-wide: 0 11. Current number of permanent, full-time (2,080 hours) employees in Minnesota. 0 12. Current number of permanent, full-time (2,080 hours) employees at the proposed JCF project site: 0 Include any employees that will relocate from another Minnesota site to the JCF project. 13. Will there be any reduction of positions (non-transfers) at other company sites during the next two years, or a reduction in purchases from Minnesota suppliers or vendors as a result of the project? ❑ Yes ® No If you answered "Yes" to this question, please attach a description. 14. Will any jobs be relocated from another Minnesota site to the proposed JCF project site: ❑ Yes ® No If you answered "Yes" to this question, which location(s)will the employees be relocated from? EmployeesLocation #of For jobs relocating from another Minnesota location, a letter in support of the move from the city where the jobs will be moving from must be included with the application. 15. Projected number of new permanent, full-time(2,080 hours) employees to be created at the proposed JCF project site: 67 67 0 The total number of New Permanent, Full-Time Employees listed above should equal the number of positions listed on the Job Creation Form. Rev. 10/08/19 5 Agenda Page 143 JOB CREATION FORM - List All Permanent Jobs to Be Created HOURLYPOSITION TITLE HOURLY • HOURLY List Permanent Full-Time 0:0 NUMBER OF CASH WAGE OF Positions Only* POSITIONS W/o BENEFITS" INCLUDING BENEFITS BENEFITS*** Please see attached labor projections $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 Total Jobs to be Created: 134 *For the purposes of the Job Creation Fund program,jobs considered must be non-contract, non-seasonal, permanent full-time positions working at least 2080 hours per year to qualify. **Only eligible non-mandated benefits to the employee. Social security tax, unemployment insurance, workers compensation insurance and other benefits mandated by law must be excluded. *** Total compensation including base wage and benefits must be at least 110%of the federal poverty income level for a family of four(verify current wage levels with DEED at the time of application). Rev. 10/08/19 6 Agenda Page 144 SECTION 3 - Required Information Information from the items listed below will be used to evaluate the potential award and rebate for a business requesting JCF designation. Please be thorough in addressing the requested information and clearly identify responses to each item separately by number. PART A - Business Description Describe the business and its major activities. 1. Business overview and company history—include description of company's products or services, organizational structure, parent company and any affiliates 2. Product or industry outlook for the JCF business and project site (if different) 3. Total projected sales for the JCF project both inside and outside of Minnesota 4. Estimated sales to Minnesota customers that replace purchases from outside of Minnesota 5. Markets for the Business (local, statewide, national, international) along with their respective percentage to total sales &the customers served 6. Philanthropic or other ways in which the business contributes or will contribute to Minnesota PART B - Project Description Describe the project for which JCF funds are being requested. 7. Provide details for the project for which JCF funds are being requested. Discuss topics such as acquisition, new construction, renovations, or proposed leasehold improvement that are real property, ownership versus lease, square footage, etc. 8. If the JCF project is a lease scenario, explain how the Business will be paying for the tenant improvements, including the amount, timing, and if they are upfront expenses versus lease payments. For more information, please see the Job Creation Fund Benefits Explained. 9. Explain why JCF funding is necessary for this project to move forward (e.g., financing gaps, lack of collateral, potential non-Minnesota locations). If available, please provide further documentation that demonstrates these reasons. 10. Describe how the JCF project will strengthen and/or diversify the local or Minnesota economy. PART C - Business Competitors Identify the competitors of the business with the local community(city and county), the adjacent counties, and in the state of Minnesota. 11. Name of each major competitor in Minnesota and the location of each competitor by city. 12. How do the applicant's products or services differ from these competitors? 13. How do the applicant's markets differ from these competitors? PART D - Required Attachments ❑ Two (2)years historical financials (i.e., profit& loss, balance sheet, income statement, cash flow statement) and financial projections. If available, audited or reviewed financials are preferred. ❑ Line-item construction cost estimates for real property improvements for the JCF project. ❑ Commitment letter from each external financing source (if applicable) ❑ Commitment letter for any business equity, including amount. ❑ Unemployment Insurance returns for the last four (4) quarters. The report must include the number of employees employed in Minnesota during each quarter. Not applicable for startups or employers without Minnesota employees. Rev. 10/08/19 7 Agenda Page 145 SECTION 4 - Business Acknowledgement and Certifications Data Privacy Acknowledgement: Tennessen Warning Notice: per MN Statutes 13.04,Subd.2,this data is being requested from you to determine if you are eligible for assistance from the Minnesota Department of Employment and Economic Development. You are not required to provide the requested information, but failure to do so may result in the department's inability to determine your eligibility for assistance. The data you provide that is classified as private or non-public and will not be shared without your permission except as specified in state and federal laws. Data Privacy Notice: per MN Statutes 13.591, Subdivision 1, certain data provided in this Application is private or non- public data;this includes financial information about the business,including credit reports,financial statements, net worth calculations, business plans; income and expense projections; balance sheets; customer lists; income tax returns; and design, market, and feasibility studies not paid for with public funds. Per MN Statutes 116J.401, Subd. 3., certain data provided in this application is private data;this includes data collected on individuals pursuant to the operation of business finance programs. Business Certification: Financial Assistance Certification: I hereby certify that the Job Creation Fund program is necessary to my business start- up or expansion and that without the Job Creation Fund my business start-up or expansion project would not happen to the extent outlined in the Job Creation Fund Application. I certify that I will not count any existing positions or employees moved or relocated from another of Minnesota facility where my business conducts operations as new permanent full- time employees for the purposes of fulfilling requirements of the Job Creation Fund program. I certify I will not terminate, lay-off, or reduce the working hours of an employee for the purpose of hiring an individual to fulfill the requirements of the Job Creation Fund program. I certify that I will pay prevailing wages as required under the laws of the State of Minnesota if applicable. I certify I will enlist the services of DEED's Employment and Training staff and will sign a Job Listing Agreement as a condition to receiving funds in excess of$200,000 from the Minnesota Department of Employment and Economic Development. I have read the above statements and I agree to supply the information requested to the Minnesota Department of Employment and Economic Development, Office of Business Finance with full knowledge of the information provided herein. I certify that all information provided herein is true and accurate and that the official signing this form has authorization to do so. Name/Title of Business Official: Casey Darkenwald, President & CEO Signature of Business Official: Date: Local Government Certification: I hereby certify that as the local government contact for the proposed Job Creation Fund project, I have reviewed the application and business information. I agree to work with the Job Creation Fund program business applicant to supply the information requested to the Minnesota Department of Employment and Economic Development, Office of Business Finance. Name/Title of Local Government Contact: Adam Nafstad, City Administrator Signature of Local Government Contact: Date: Rev. 10/08/19 8 Agenda Page 146 Conflict of Interest Disclosure Form This form gives Recipients an opportunity to disclose any actual, potential or perceived conflicts of interest that may exist when receiving a benefit. It is the recipient's obligation to be familiar with the Office of Grants Management (OGM) Policy 08-01, Conflict of Interest Policy for State Grant-Making and to disclose any conflicts of interest accordingly. All Recipients must complete and sign a conflict of interest disclosure form. 0 I or my organization do NOT have an ACTUAL, POTENTIAL, or PERCEIVED conflict of interest. If at any time after submission of this form, I or my organization discover any conflict of interest(s), I or my organization will disclose that conflict immediately to the appropriate agency or program personnel. ❑ I or my organization have an ACTUAL, POTENTIAL, or PERCEIVED conflict of interest. (Please describe below): If at any time after submission of this form, I or my organization discover any additional conflict of interest(s), I or my organization will disclose that conflict immediately to the appropriate agency or program personnel. Advanced Volumetric Alliance, LLC Organization Casey Darkenwald, President & CEO (612) 598-3920 Printed Name and Title of Business Contact Phone Signature Date Rev. 10/08/19 9 Agenda Page 147 Job Listing Notice A business receiving financial assistance from the State of Minnesota in an amount in excess of $200,000 for a single project shall work with DEEDS Employment and Training staff to list any vacant or new positions related to the project on www.minnesotaworks.net per Minn. Stat. 116L.66. The employer is also encouraged to enlist the services of DEED's Employment and Training staff to recruit and refer job candidates. The Job Listing requirements follow these easy steps: 1. At the time of financing award, DEED's Business Finance Office will provide written notification of the award to DEED's Employment and Training staff. This notification will include the business name, address and phone number(as well as for the contact person) and the number and type of jobs to be created as a result of the DEED assistance. 2. The Employment and Training representative will contact the business to schedule a meeting to sign a Job Listing Agreement that details how positions will be posted on www.minnesotaworks.net. The employer is required to list only those job openings that are part of the project DEED is assisting. 3. Managerial positions, positions that require unusual skills, knowledge, abilities and/or experience not common to the labor market, and job openings to be filled by internal promotion will not subject to the Agreement and need not be listed on www.minnesotaworks.net. 4. The business will notify the Employment and Training staff of job openings and will ensure that job vacancies are entered into www.minnesotaworks.net at least 15 days prior to the anticipated hiring date. Employment and Training staff may refer the employer to free services that can expedite the job order entry. 5. Applicants will follow instructions on www.minnesotaworks.net to apply for open positions. However, the business will make all decisions on which candidates they will interview and hire. 6. The employer may continue to use other recruitment and job referral services in addition to www.minnesotaworks.net and may fill positions prior to meeting with Employment and Training staff and signing the Job Listing Agreement. The Job Listing Notice is designed to help businesses recruit and hire qualified candidates. If you have questions about using www.minnesotaworks.net, please contact your local Employment and Training staff at https://mn.gov/deed/business/help/workforce-assistance/wf-strateey.asp_or the www.minnesotaworks.net Help Desk Specialist at(651) 259-7500. Certification I have read the above information and understand that as a recipient of state financial assistance in excess of$200,000, a representative shall meet with DEED Employment and Training staff and agree to sign a job listing agreement and post project-related jobs on www.minnesotaworks.net following the meeting. Casey Darkenwald, CEO (612) 598-3920 Printed Name and Title of Business Contact Phone Signature Date Rev. 10/08/19 10 Agenda Page 148 Consent to Release Private Business Employment and Wage Data Collected and Maintained by the Minnesota Unemployment Insurance Program To qualify for financial assistance from the DEED Office of Business Finance, your business must agree to create or retain a minimum number of jobs within a specific period of time.These jobs must also pay at or above specified wage levels. To verify that these requirements have been met, the Office of Business Finance uses quarterly wage records submitted by businesses to the Minnesota Unemployment Insurance Program. Because Unemployment Insurance records are private, we need your permission to access records about your business. The records we seek to access include: • Aggregate Minnesota employment levels for your business • Aggregate Minnesota employment levels at the relevant project site • Information about your compliance with Unemployment Insurance tax and reporting requirements It is important to note that we will not receive the names or social security numbers of your employees. If you sign this form,your records will be securely transmitted by Unemployment Insurance Program staff to the Office of Business Finance. The Office of Business Finance will receive your Unemployment Insurance records on an ongoing basis until your business subsidy agreement expires or is terminated. We will not release any data from your Unemployment Insurance records to any other parties. You are not legally required to grant us access to your Unemployment Insurance records. You also have the right to withdraw your permission at any time. Please note, however, that refusal to grant access to your Unemployment Insurance records may limit your eligibility for financial assistance. If you have questions about this form, please contact Bob Isaacson, Executive Director, Office of Business Finance at 651- 259-7458 or bob.isaacson@state.mn.us. 1 give my permission for the Unemployment Insurance Program to release the records about my business (as described in this form) to the DEED Office of Business Finance. 1 understand that these records will be used by the Office of Business Finance to verify the satisfaction of requirements associated with my business subsidy agreement. Advanced Volumetric Alliance, LLC Signature of Business Official Business Name Date Casey Darkenwald President & CEO Printed Name of Business Official Position casey@darkenwaldcorp.com (612) 598-3920 E-mail Phone 84-4867127 Employer Identification Number(EIN) Used for Project Site Other Employer Identification Numbers (EINs) Used by Business Rev. 10/08/19 12 Agenda Page 149 Notice: Accurately Reporting Business Units to the Minnesota Unemployment Insurance Program This notice is a reminder that Minn. Stat. § 268.044 requires your business to submit quarterly wage records to the Minnesota Unemployment Insurance Program by "reporting unit". You have the option to split reporting units for your business by physical location, financial centers, division of labor, or user security requirements. For the purposes of monitoring job creation and wage level performance per your business subsidy agreement, the Office of Business Finance strongly recommends creating a specific reporting unit for the relevant project site. Reporting units can be added or modified as follows: To add a reporting unit: 1. Log in to your account at www.uimn.org 2. On My Home Page, click Account Maintenance. 3. Click Maintain Reporting Units. 4. Click Add New Reporting Unit. 5. Enter reporting unit information. 6. Click Next.The Address Validation page opens. 7. Confirm the address, and then click Next. 8. Verify the reporting unit information. 9. Click Submit. To inactivate a reporting unit: 1. Log in to your account at www.uimn.org 2. On My Home Page, click Account Maintenance. 3. Click Maintain Reporting Units. 4. Under Active Reporting Units, click the reporting unit link. 5. Under Inactivate Reporting Unit, check the checkbox Inactivate Reporting Unit. 6. Enter the date of last covered wages for this reporting unit. 7. Select the reason for inactivating this reporting unit from the drop down menu, and then click Next. 8. Verify the reporting unit information and benefit account mailing address. 9. Click Save. If you have any questions about reporting units or other aspects of the Unemployment Insurance wage detail submission process, contact Aaron Tell, Unemployment Insurance Outreach Specialist, at 651-259-7567/ aaron.tell@state.mn.us. Advanced Volumetric Alliance, LLC Signature of Business Official Company Date Casey Darkenwald President & CEO Printed Name of Business Official Position casey@darkenwaldcorp.com (612) 598-3920 E-mail Phone Rev. 10/08/19 13 Agenda Page 150 Targeted Population Designation Characteristics In order to qualify for Targeted Population Designation, the business must be majority (at least 51%) owned by persons who meet certain qualifying characteristics. One or more individuals may be included when determining eligibility. Please provide information regarding qualifying characteristics of the owner(s). Check all that apply: ❑ Minority Minority group members are citizens (or lawfully admitted permanent residents) of the United States who belong to one or more of the following groups: a) "Black Americans," which includes persons having origins in any of the Black racial groups of Africa; b) "Hispanic Americans," which includes persons of Mexican, Puerto Rican, Cuban, Dominican, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race; c) "Native Americans,"which includes persons who are American Indians, Eskimos,Aleuts, or Native Hawaiians; d) "Asian-Pacific Americans," which includes persons whose origins are from Japan, China, Taiwan, Korea, Burma (Myanmar),Vietnam, Laos,Cambodia(Kampuchea),Thailand, Malaysia, Indonesia,the Philippines, Brunei,Samoa, Guam, the U.S. Trust Territories of the Pacific Islands (Republic of Palau), the Commonwealth of the Northern Marianas Islands, Macao, Fiji,Tonga, Kiribati,Juvalu, Nauru, Federated States of Micronesia, or Hong Kong; e) "Subcontinent Asian Americans," which includes persons whose origins are from India, Pakistan, Bangladesh, Bhutan, the Maldives Islands, Nepal orSri Lanka; ❑ Woman ❑ Veteran Veteran means a citizen of the United States or a resident alien who has been separated under honorable conditions from any branch of the armed forces of the United States after having served on active duty for 181 consecutive days or by reason of disability incurred while serving on active duty,or who has met the minimum active duty requirement as defined by Code of Federal Regulations,title 38,section 3.12a,or who has active military service certified under section 401, Public Law 95-202.The active military service must be certified by the United States secretary of defense as active military service and a discharge under honorable conditions must be issued by the secretary. ❑ Person(s) with disabilities The term "disability' is defined under the Americans with Disabilities Act and means, with respect to an individual: a) a physical or mental impairment that substantially limits one or more major life activities of such individual; b) a record of such an impairment; or c) being regarded as having such an impairment. I certify that the business is at least 51% owned by person(s) who are representative of one or more of the qualifying groups. Casey Darkenwald (612) 598-3920 Printed Name and Title of Business Contact Phone Signature Date Rev. 10/08/19 14 Agenda Page 151 Local Government Resolution Example This resolution must be adopted prior to submission of the Minnesota Job Creation Fund program application. The resolution shall be adopted by the City Council, County Board, Town Board or Tribal Government where the project will occur. A resolution of support from the local Economic Development Authority, Housing & Redevelopment Authority or Port Authority does not satisfy program requirements. CITY OF<<City Name>>, MINNESOTA RESOLUTION NO. <<INSERT>> RESOLUTION REGARDING THE SUPPORT OF A JOB CREATION FUND APPLICATION IN CONNECTION WITH <<BUSINESS NAME>> WHEREAS,the City of<<City Name>>, Minnesota (the "City'), desires to assist<<Business Name>>,a <<company type>>, which is proposing to construct a facility in the City; and, WHEREAS, the City of<<City Name>> understands that <<Business Name>>, through and with the support of the City, intends to submit to the Minnesota Department of Employment and Economic Development an application for an award and/or rebate from the Job Creation Fund Program; and, WHEREAS,the City of<<City Name>> held a city council meeting on <<date>>, to consider this matter. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF <<City Name>>, Minnesota, that, after due consideration, the Mayor and <<Authorized Official>> of the City of <<City Name>>, Minnesota, hereby adopts the following findings of fact related to the project proposed by<<Business Name>> and its application for an award and/or rebate from the Job Creation Fund Program and express their approval. The City Council hereby finds and adopts the reasons and facts supporting the following findings of fact for the approval of the Job Creation Fund Program application: 1. Finding that the project is in the public interest because it will encourage the growth of commerce and industry, prevent the movement of current or future operations to locations outside Minnesota, result in increased employment in Minnesota, and preserve or enhance the state and local tax base List reasons and facts supporting this particular finding for the project. 2. Finding that the proposed project, in the opinion of the City Council, would not reasonably expected to occur solely through private investment within the reasonably foreseeable future. List reasons and facts supporting this particular finding for the project. 3. Finding that the proposed project conforms to the general plan for the development or redevelopment of the City as a whole. List reasons and facts supporting this particular finding for the project. 4. Finding that the proposed project will afford maximum opportunity, consistent with the sound needs of the City as a whole,for the redevelopment or development of the project by private enterprise. List reasons and facts supporting this particular finding for the project. Sworn and Executed Under My Hand this_day of 12019. Rev. 10/08/19 15 Agenda Page 152 AVA ADVANCED VOLUMETRIC ALLIANCE Section 3 Part A—Business Description: 1) Business Overview and Company History AVA is an alliance of strategic partners who have proven success for decades in construction and development. Owning this volumetric plant together is a time and price competitive advantage for implementing projects faster, cheaper, and with a more streamlined communication enabled by AVA's vertical integration from planning to occupancy. Founded by Casey Darkenwald, Brian Nicholson, Michael Hoagberg, Mike Mergens, Darren Lazan, Jason Carter, Mike Monson, and Bob Kelly, the firm has extensive and complimentary experience in real estate investment, development, and construction. The AVA management team has decades of experience developing all types of properties. We currently have developments and pipeline underway and this volumetric plant is a way to make our developments and our clients' developments drastically more efficient from vertical integration from planning to certificate of occupancy. Planning and entitlement • Landform (Darren Lazan)plans and engineers 100+projects every year with his team of over 55 professionals Construction • Benson Orth (Mike Monson)just celebrated its 50th anniversary • Bob Kelly - 40 years and billions of dollars in construction experience • Jason Carter- 30 years of modular construction operations, staffing, and development experience Development • All of the partners have development experience for themselves and clients • Headwaters Development(Brian Nicholson and Michael Hoagberg)is a full- service real estate development company primarily focused on the multi-family commercial sector, including development and operations • Darkenwald Family - 45 years of development experience • Mike Mergens - 20 plus years of development experience for himself and many large developer clients in Minneapolis a. Product or industry outlook for the MIF project Agenda Page 153 Let's start with the difference between manufactured homes and modular/volumetric homes. Manufactured homes are constructed according to a code administered by the U.S. Department of Housing and Urban Development(HUD Code). The HUD Code, unlike conventional building codes, requires manufactured homes to be constructed on a permanent chassis and is classified as personal property. Modular/volumetric homes are constructed according to state building codes. The constructed unit is placed on a permanent foundation never to be moved and is considered real property. Since WWII, the U.S. has seen significant technological innovations giving rise to the U.S. volumetric construction industry. Advances in software, automation, and Building Information Modeling (BIM) as well as new processes and materials have made it possible to prefabricate and deliver more sophisticated and complex buildings than was previously possible. In the United States the acceptance of volumetric construction methods is growing, with 49% of healthcare facilities, 42% of college buildings and dorms, and 42% of manufacturing buildings using some form of prefabrication or volumetric construction. It is not too difficult to find articles citing the construction industry's woes over the shortage of available skilled workers. All sorts of initiatives, efforts, and conferences have been held on the topic for the last decade or so in an effort to reach more young people and gain more entrants into the industry. According to the Bureau of Labor Statistics (BLS) and National Association of Home Builders (NAHB)there are currently 143,000 vacant construction positions nationwide. And these job openings are not minimum wage positions either. BLS data shows that the mean wages for a person in the non-residential building industry is just over$25.00 per hour. Of course, this is a general average among all trades and regions, but certainly respectable pay. A recent survey by the NAHB revealed that 69% of its members were experiencing delays in completing projects on time due to a shortage of qualified workers, while other jobs were lost altogether. And the problem isn't going away anytime soon. According to the 2015 Workforce Survey Results from Associated General Contractors of America, over 60%believe it will continue to be hard to hire or become harder to hire construction professionals. In 2010, the average age of a construction worker was 40.2 years. By 2016, that number rose to 42.7 years, demonstrating that the workforce continues to age. Construction is changing and the industry needs to as well. The labor shortage is drastically affecting current projects and pricing. Cold and hot climates both add risk and quality challenges that volumetric construction drastically helps. Thousands of apartment buildings have been built in Minnesota in the last few years and were all designed from scratch. A library of unit designs Agenda Page 154 that work and have been tested and improved upon year after year in BIM will save millions in design and months of predevelopment and planning. AVA's facility will provide an enclosed plant that is not impacted by weather, which enables skilled construction professionals a more comfortable, less labor-intensive work environment, keeping these skilled workers in the workforce longer than they may have otherwise been able to. These projects are built with same materials and techniques as stick-built and use conventional framing materials and techniques in unconventional setting. This not only allows for a much higher level of quality control, but construction waste is also reduced by 60-70%. More benefits of utilizing volumetric construction methods include cost efficiency, as modular apartment building projects are up to 20% less expensive and can regularly be delivered up to 50% faster than stick-built developments. b. Markets for the MIF project(local, statewide,national, international) & competitive advantage for each Medical (hospitals, doctor's offices, medical clinics, urgent care centers, dentist offices, dialysis facilities, and more) Commercial Residential (single family homes, townhouses, multi-family apartments) Mixed-Use Hospitality (hotels) Education (student housing) - Competitive advantages: • Quick build time • Faster delivery • Same quality standards as conventional buildings • Flexibility for expansion • Cost savings • Easy procurement process 2) Product or industry outlook for the JCF project Construction is changing and the industry needs to adapt as a result. Labor shortages are drastically affecting current(and long term)projects and pricing and this will not change. Additionally, cold and hot climates both add risk and quality challenges that volumetric construction drastically mitigates. Further, energy codes are changing and stick-built projects will struggle to keep up. All of our company members have been affected by these issues and our plant is the key to solving them. Agenda Page 155 For example, thousands of apartments have been built in the Midwest in the last few years and were all designed from scratch. A library of unit designs that work and have been tested and improved upon year after year in Building Information Modeling (BIM)will save millions in design and months of predevelopment and planning. These practices can be applied to all forms of construction. MBI estimates that there are approximately 252 North American modular manufacturers engaged in the commercial building market. This includes companies that are primarily engaged in single-family modular home production but also do some percent of multi-family and light commercial work. This also includes container modification or fabrication manufacturers,which were not included in last year's report. MBI obtained revenue and production data from 45 of these companies for this report, seven of which were classified as container fabricators. Please see the attached `AVA Public Info Package Nov 2020' PDF document for additional industry and company-specific information. 3) Projected Sales for the JCF project both inside and outside of MN If Albertville is chosen for final location, this facility will serve projects across 11 states and 2 Canadian provinces, including North Dakota, South Dakota,Nebraska, Kansas, Missouri Illinois, Indiana, Michigan, Wisconsin, Iowa and Minnesota. We did not embark on this project until a)we had financial support and backing commitment— contingent on final local and state incentives and b)until we had a pipeline of projects to fuel the growth of this facility by projects principals of the company have control over in terms of deciding who is utilized for a project—including AVA. As such, we have an aggressive growth strategy that will grow outside of Minnesota, which once we are fully ramped production-wise, we will be selling product into all 10 states and the Canadian markets. Revenues ramp quickly to $31,000,000 within 3 years; 20%+ gross margins will be achieved each year. This is driven both by the demand for volumetric construction across the upper Midwest, but also because of our partners' strong ties throughout the development and contracting industries. Many of the projects we will be supplying product to in the first few years are led by, or have decision-making authority from, partners within AVA. Please refer to `AVA Project Capital Analysis_with quarterly P&L_ 1.19.2021 —confidential' for additional detail. 4) Estimated sales to Minnesota customers that replace purchases from outside of MN We anticipate little impact our production facility will have in terms of replacing sales to Minnesota firms currently being serviced by out-of-state providers as we will have the first large scale volumetric plant in the Midwest. Agenda Page 156 5) Markets for the Business (local, statewide, national,international) along with their respective percentage to total sales and customers served Percentage sales will vary year-to-year based on projects we are selected to provide units to, but we anticipate selling units into all 10 aforementioned states as well as Canada within 3 years of plant commissioning. 6) Philanthropic or other ways in which the business contributes or will contribute to MN As we grow, we plan to engage with non profits and to provide units for low income housing developments to make these projects more affordable and to drive more units for low income housing. Section 3 Part B—Business Description: 7) Provide details for the project for which JCF funds are being requested. Discuss topics such as acquisition, new construction, renovations, or proposed leasehold improvement that are real property, ownership vs lease, sq footage, etc.. While other locations are being explored in adjacent states, we are very interested in locating this project in Albertville, MN. No final decisions or commitments have been made—nor will they until we successfully complete all incentive contracts with both city and state (DEED) governmental agencies, which is a key contingency of our financial backer. Because other states and markets farther from metropolitan areas offer a lower operating and tax cost structure, it is important to our financial backer that we close gaps in the capital stack as well as offset these increased costs attributed to an Albertville location for our project through local and state financial incentives. Phase 1: 187,000 square feet—all new construction Existing bare site will be developed/built on 130+Direct workers 305+ Indirect workers 4-5 units per day output(one shift) Can produce: -Multi-Family Agenda Page 157 -Hotel Units -Residential Homes -Commercial Units We will construct and own the facility. Our total project budget is roughly $26 million of which roughly $4 million is capital equipment and $22 million facility construction. Financing has been secured contingent on approval of local and state financial incentive programs. 8) If the JCF project is a lease scenario, explain how the business will be paying for the tenant improvements,including the amount,timing, and if they are upfront expenses vs lease payments. We will be owning the facility and the lead lender is committed to financing,pending selection of a final location being chosen and upon proof of awarded/executed local to state financial incentive programs. 9) Explain why JCF funding is necessary for this project to move forward (e.g., financing gaps, lack of collateral,potential non-Minnesota locations). If available,please provide further documentation that demonstrates these reasons. JCF funding is necessary to narrow the gap between increased operating cost we will incur relative to other locations we are reviewing for potential location in surrounding states. In April 2020 we presented the project and submitted an RFP to additional sites across MN as well as locations in ND, SD,NE, IA WI and MO. We received dozens of serious responses, including sites in ND, IA and 2 other sites in MN. 10) Describe how the JCF project will strengthen and/or diversify the local or Minnesota economy. We believe this makes Minnesota more competitive in the construction space—across several verticals (ie: multi-family housing, commercial office, industrial,retail, etc...) as it provides an opportunity to make otherwise projects which are not financially viable an opportunity to move forward and accelerate timelines. Additionally,being the first plant in the Midwest, it gives us opportunity to bring Minnesota-generated volumetric units into surrounding states where otherwise Minnesota jobs would not be participating on these projects. Section 3 Part C —Business Competitors Agenda Page 158 11) Name of each major competitor in Minnesota and the location of each competitor by city. RISE Modular in Owatonna, MN is involved in modular construction,though we do not view them as a direct competitor as we have sales channels through our team which eliminate us from competing with them on projects. 12) How do the applicant's products or services differ from these competitors? We have our own relationships and pipeline for projects/sales which are independent of competing with other modular builders—MN or any other state—so again, we don't feel like we are creating or increasing a competitive situation. 13) How do the applicant's markets differ from these competitors? Relative to stick-build/start from scratch projects, we save time and money and this is less about competing with or hurting Minnesota-based businesses, but more about performing on projects across the Midwest which often times do not happen due to cost, time or labor constraints. This operation is an asset to Minnesota in terms of making all of those in the construction industry more competitive as well as creating well-paying, year round jobs in Minnesota, serving projects in surrounding states. Agenda Page 159 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2021-011 RESOLUTION SUPPORTING PURSUIT OF 2021 LOCAL ROAD IMPROVEMENT PROGRAM FUNDING FROM MNDOT FOR THE BARTHEL INDUSTRIAL DRIVE IMPROVEMENTS PROJECT WHEREAS,the Barthel Industrial Drive Improvements project includes rehabilitating Barthel Industrial Drive and Large Avenue from County Road 18 to County Road 37; and WHEREAS, the Barthel Industrial Drive Improvements project provides opportunity to rehabilitate the existing pavement section and increase the load limit rating of the road; and WHEREAS,the Local Road Improvement Program (LRIP) administered by the Minnesota Department of Transportation makes available up to $1,250,000 to apply towards projects on local roads that are regionally significant, result in safety improvements, address transportation deficiencies, and contribute to economic development, and WHEREAS,the proposed year for project construction is 2022. NOW,THEREFORE BE IT RESOLVED,by the City Council of the City of Albertville as follows; that 1. The City Council hereby supports the reconstruction/overlay/reclamation of Barthel Industrial Drive and Large Avenue from County Road 18 to County Road 37, 2. The City Council hereby supports the City of Albertville's pursuit of Local Road Improvement Program (LRIP) funding and authorizes staff to prepare and submit such application, and 3. The City Council hereby provides assurance that the City of Albertville will pay all costs associated with the project and that city staff will ensure that all aspects of LRIP funding requirements are met and the project's schedule is adhered to. Adopted by the City Council of the City of Albertville this 1611 day of February 2021. Jillian Hendrickson, Mayor ATTEST: Kristine A. Luedke, City Clerk Agenda Page 160 �lbcrtvillc Small Town Wag.ffig ON Lft. Mayor and Council Request for Action February 16, 2021 SUBJECT: ADMINISTRATION-RENEWAL OF RECYCLING CONTRACT RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve the Amendment to Recycling Service Contract with Republic Services for residential recycling services to extend the term of the recycling services through May 31, 2026. BACKGROUND: The City's current recycling contract with Republic Services will expire on May 31, 2021. Upon renewal negotiations, Republic Services is proposing the following: Proposed Rates Dates Collection Recycling Total Processing Fee 6/1/2021 - 5/31/2022 $2.76 $1.64 $4.40 6/l/2022 - 5/31/2023 $2.84 $1.69 $4.53 6/l/2023 - 5/31/2024 $2.93 $1.74 $4.67 6/1/2024 - 5/31/2025 $3.02 $1.79 $4.81 6/1/2025 - 5/31/2026 $3.11 $1.85 $4.95 Highlights of our current contract include: a monthly charge per household, and not per cart; a snowbird clause, where snowbirds and vacant properties are not charged; no fuel escalation and a fixed rate; and well as,no charge for additional containers. For the past ten years, Republic Services has been a model service provider over the life of these contracts. City staff is very satisfied with Republic's initial service and their response to any problems that have arisen. City staff spends much more time dealing with complaints from residents about the various garbage haulers operating in the City than it does with Republic. The City receives very few complaints from residents and Republic Services has always been able to resolve any issues that have come up. Republic Services has stayed true to the contract even as the recycling market for plastics has essentially collapsed. KEY ISSUES: • The City's current contract with Republic expires on May, 31, 2021. • The City has the option to negotiate directly with Republic or advertise for RFP's and has reviewed issued associated with both. • The current monthly contract rate is $3.62 per household. The City charges $3.30 per household and contributes $0.30 per household ($0.30 buy-down). • The proposed rate is $4.40 per household with a 3% annual escalator for 5 years. It is proposed that the City charge the full $4.40 per household. Agenda Page 161 Mayor and Council Request for Action—February 16, 2021 Renewal of Recycling Contract Page 2 of 2 • In comparing rates that surrounding cities are paying (based on households, not carts), the proposed Republic options are believed to be competitive. • Since the price collapse of recyclable materials,virtually all cities that have entered into recycling contracts have seen significant price increases. POLICY/PRACTICES CONSIDERATIONS: Given the quality of service provided and the likelihood of even higher prices through an RFP due to the depressed recyclables market, extending recycling services with Republic Services is preferred. FINANCIAL CONSIDERATIONS: Recycling rates will increase from $3.62 to $4.40 per household. Currently,the City is using its Recycling fund to pay down the charge of each household by $0.30. The City's Recycling fund is funded by county grant money and is dependent on tonnage collected per household per quarter. The average annual grant amount we receive is $8,400 per year. Today, the balance in the recycling fund is $61,500. It has previously been the intent of the Council to use these funds for recycling purposes or to buy down the monthly cost to our residents. Today, the recycling fund balance would adequately allow for a continued $0.30/month/household buy down; however, needs to be reviewed annually and reevaluated every couple of years. LEGAL CONSIDERATIONS: For service contracts such as recycling,the City can seek bids, request proposals, or directly negotiate for the service. The Mayor and City Council have the authority to enter into service contracts on behalf of the City. Submitted Through: Adam Nafstad, City Administrator/Public Works Director. Attachment: Amendment to Recycling Service Contract On-file: 2015 Recycling Service Contract January 4, 2021 Renewal or Requoting RCA Agenda Page 162 AMENDMENT TO RECYCLING SERVICE CONTRACT The parties to this Amendment to Recycling Service Contract ("Amendment") are the City of Albertville, a municipality organized under the State of Minnesota ("City"), and Allied Waste Services of North America, LLC, a Delaware Limited Liability Corporation d/b/a Republic Services of the Twin Cities-Blaine ("Contractor"). This Amendment is effective and enforceable as of the date signed by the parties ("Effective Date"). Recitals A. The City and Contractor entered into a Contract for the Collection of recyclable materials, dated October 19th, 2015, the "Contract". B. The City and Contractor have now agreed to modify the terms of the Contract as set forth below. Agreement NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which the parties acknowledge, the parties agree to the following terms and conditions: 1. Preamble and Parties. The parties agree that the entities listed as parties to the Contract were inadvertently misstated and agree to make the following change, the party listed as "Republic Services, d/b/a Allied Waste Services of the Twin Cities-Eden Prairie" should have been listed as "Allied Waste Services of North America, LLC d/b/a Republic Services of the Twin Cities-Blaine." Any and all references to Republic Services shall mean the legal entity Allied Waste Services of North America, LLC." 2. Term. Section 2, Tenure of the Contract,is hereby modified to extend the term of the Contract through May 31, 2026. 2. Recycling Rates. Exhibit A of the Contract is hereby amended to add the following pricing table: City of Albertville Recycling Rates Dates Collection Recycling Total Processing Fee 6/1/2021 - 5/31/2022 $2.76 $1.64 $4.40 6/1/2022 - 5/31/2023 $2.84 $1.69 $4.53 6/1/2023 - 5/31/2024 $2.93 $1.74 $4.67 6/1/2024 - 5/31/2025 $3.02 $1.79 $4.81 6/1/2025 - 5/31/2026 $3.11 $1.85 $4.95 1 of 2 Agenda Page 163 3. Capitalized Terms. Capitalized terms used but not otherwise defined in this Amendment shall have the meanings assigned to them in the Contract. 4. ContinuingE ffect. Except as expressly modified or amended by this Amendment, all terms and provisions of the Contract shall remain in full force and effect. In the case of a conflict in meaning between the Contract and this Amendment,this Amendment shall prevail. 5. Counterparts. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original and all of which combined shall constitute one and the same instrument. Facsimile and/or electronic copies of the parties 'signatures shall be valid and treated the same as original signatures. IN WITNESS WHEREOF, the parties have entered into this Amendment to be effective as of the Effective Date. CONTRACTOR: CITY: ALLIED WASTE SERVICES OF NORTH CITY OF ALBERTVILLE AMERICA, LLC DBA REPUBLIC SERVICES OF TWIN CITIES-BLAINE By: By: Name: Name: Title: Title: 2 of 2 Agenda Page 164 2021 BUILDING DEPARTMENT COST ALLOCATION ALBERTVILLE - ST. MICHAEL DRAFT REVISED EXHIBIT A Population Estimates July 2018 (Minnesota State Demographer's Office) Albertville 7,485 29.56% St. Michael 17,835 70.44% Total 25,320 100.00% Industrial/Commercial Value (County 2020 mini summary report)* Albertville $101,294,300 51.90% St. Michael $93,893,900 48.10% Total $195,188,200 100.00% (*) Reflects industrial/commercial property value only (not land value) Housing Units Starts (based on previous years total number as of July 1 st of new housing units SF/TH/Apts with (Apts@50%)) Albertville 36 13% St. Michael (Includes 49 Sand Apts in Feb 2020@50%) 248.5 87% Total 284.5 100% Average % (Population and Building Value and Housing Starts) Albertville 31.37% St. Michael 68.63% Total 100.00% ----- ---------------------------------------------------------- Albertville--Time Allocation St. Michael Staff 2021 Salaries Time Allocation Allocation Basis Albertville Share Bldg Official (P.H.) $136,422 31.37% Average % $42,796.08 Comb Bldg Insp (J.H.) $110,412 31.37% Average % $34,636.65 NEW INSPECTOR $95,000 31.37% Average % $29,801.85 Comb Bldg Insp (D.S.) $36,740 31.37% Average % $11,525.47 Permit Tech (CL) $55,113 7.84% 25% Average % (**) $4,322.29 Zoning Coord (J.I.) $55,329 7.84% 25% Average % (**) $4,339.23 $127,421.57 Notes: (**) Allocation Basis reflects 4 to 1 Inspection to Admin Assit time ----------------------------------------------------------------- St. Michael Reimbursement Personnel Compensation $127,422 Mileage Reimbursement -7,000 miles/year at$0.575 (Gov. Rate) $4,025 $131,447 Total Due to St. Michael $131,447 Agenda Page 165 .A,lbcrtvi11- City Administrator's Update Small Town Living.Big CRy LIFe. February 11, 2021 GENERAL ADMINISTRATION Building Official/Inspection Services: Albertville has contracted building inspection services through St. Michael for approximately 8 years and staff believes the partnership has proven to be a success for both cities. Due to area growth, St .Michael needs additional building department staff, which affects the cost-share formula. As such, staff has modified the formula and would like to review the changes at the meeting. A draft of the modified formula is included in the packet for review. Pay Equity: The Pay Equity Act requires local government jurisdictions to submit a Pay Equity Report to the State every three years. Albertville's report for 2020 has been submitted and we should receive notice of compliance soon. The Personnel Committee reviews the reporting, but please let me know if you have any questions. 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: Consideration of the final plat, development agreement, an easement vacation, and two DEED resolutions are included on the agenda. The Contract for Private Development (TIF Agreement) between the City and AVA will be presented at the March 1 meeting. Recycling Contract: An amendment to extend recycling services with Republic for 5 years is included in the packet. The proposed rate is $4.40 per household with an annual increase of 3%. STMA Arena: At their last meeting, the Arena Board reviewed rates and a draft 2021/22 budget. 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 March. Local Road Improvement Program: Included on the agenda is a resolution of support to apply for MnDOT's LRIP grant. Applications are due on March 3 and awards will likely be announced in May. Staff believes Barthel Industrial Drive is a good candidate. Barthel Industrial Drive is identified on the City's CIP as a 2021 project. Agenda Page 166