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2022-04-04 City Council Agenda Packet A,lbertville City of Albertville Council Agenda Small Wing.Big UFO. Monday, April 4, 2022 City Council Chambers 7pm PUBLIC COMMENTS-The City of Albertville welcomes and encourages public input on issues listed on the agenda or of general community interest.Citizens wishing to address the Council regarding specific agenda items,other than public hearings,are invited to do so under Public Forum and are asked to fill out a"Request to Speak Card". Presentations are limited to five(5)minutes. 1. Call to Order 2. Pledge of Allegiance—Roll Call Pages 3. Recognitions—Presentations -Introductions A. Employee Service Awards 15 Years—Gerald Gerads 10 Years—Adam Nafstad, Jacob Kreutner 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 March 21, 2022, regular City Council Meeting minutes as presented. 4-8 B. Authorize the Monday, April 4, 2022, 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 Knights of Columbus 44174 Lawful Gambling Exempt Permit 10-12 Application for lawful gambling at an event to be held on June 10, 2022, at the St. Albert Parish Center located at 11458 57th Street NE,Albertville D. Approve an On-Sale Temporary Liquor License for the Albertville Lions Club for a 13 benefit to be held at St. Alberts Parish Center located at 11458 57th Street NE for April 30, 2022. E. Approve an On-Sale Temporary Liquor License for the Church of St. Albert's Casino 14 Night fundraiser to be located at St. Albert Parish Center, 11458 57th Street NE for June 10, 2022, contingent upon receipt of liquor liability insurance certificate and appropriate license fee. F. Approve an On-Sale Temporary Liquor License for St. Michael Lions Club for a 15 fundraiser event to be located at St. Albert Parish Center, 11458 57th Street NE on April 23, 2022. G. Approve a Special Event Permit for the Family Youth Community Connections to hold 16 their Dueling Pianos event on June 17, 2022 from 6 pm to 10 pm in Central Park. City of Albertville City Council Agenda Monday, April 4, 2022 Page 2 of 3 7. Public Hearing—None 8. Wright County Sheriff's Office— Updates, reports, etc. 9. Department Business A. City Council 1. Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc) B. Building—None C. City Clerk—None D. Finance—None E. Fire—None F. Planning and Zoning 1. Konz Crossing Conditional Use Permit for a Full-Service Drive Through 17-29 Service Lane (Motion to adopt Resolution No. 2022-10 approving the Konz Crossing request for a Conditional Use Permit for a full-service drive through service lane for property located at 5703 Lachman Avenue NE in Albertville.) 2. Pro Concrete Counter Tops Conditional Use Permit 30-44 (Motion to adopt Resolution No. 2022-11 approving the request from Pro Concrete Countertops for a Conditional Use Permit for light manufacturing and assembly within the Planned Unit Development B-2A Zoning District at 6737 Labeaux Avenue North in Albertville.) 3. Albertville Marketplace Planned Unit Development Agreement Discussion 45-81 G. Public Works/Engineering 2. 2022 Street Improvements 82-86 (Motion to adopt Resolution No. 2022-12 Accepting Low Bid for the 2022 Street Improvements.) H. Legal 1. Albertville Tax Increment Finance District No. 20 Scherer Limited 87-124 Partnership,TIF Development Agreement and Business Subsidy (Motion to adopt Resolution No. 2022-13 authorizing Execution of a Development Agreement and approving a Business Subsidy related to TIF No. 20 and the Scherer Limited Partnership Development.) L Administration 1. City Administrator's Update 125-126 City of Albertville City Council Agenda Monday, April 4, 2022 Page 3 of 3 10. Announcements and/or Upcoming Meetings April 11 STMA Arena Board, 6 pm April 12 Planning Commission, 7 pm April 18 Local Board of Appeals and Equalization, 6:15 pm April 18 City Council, 7 pm April 25 Joint Powers Water Board, 6 pm Parks Committee, 7 pm May 2 City Council, 7 pm 11. Adjournment Alb�rtvi��� Smolt T—.1M.9.Big CRY Ufs. ALBERTVILLE CITY COUNCIL DRAFT REGULAR MEETING MINUTES March 21, 2022— 7 pm Council Chambers Albertville City Hall 1. Call to Order Mayor Hendrickson called the meeting to order at 7:02 pm. 2. Pledge of Allegiance—Roll Call Present: Mayor Hendrickson, Councilmembers Cocking, Hudson, Olson and Zagorski Staff Present: City Administrator Nafstad,Fire Chief Bullen, City Attorney Couri,Finance Director Lannes, City Planner Brixius and City Clerk Luedke Others Present: Tammy Omdal, Managing Director, Public Finance,Northland Securities 3. Recognitions —Presentations—Introductions A. Albertville Royalty Current Court The current 2021-2022 Royalty Court introduced themselves and listed some of their favorite activities they had participated in over the last year. The City Council thanked the Albertville Royal Court for their service to the Albertville Community. B. Proclamation for the STMA High School Varsity Wrestling Team Mayor Hendrickson read the proclamation. The Council congratulated the STMA High School Varsity Wrestling Team for their victory as 2022 Class AAA State Champions. 4. Public Forum There was no one present for the public forum. 5. Amendments to the Agenda MOTION made by Councilmember Hudson, seconded by Councilmember Cocking to approve the March 21, 2022, 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 March 7, 2022, regular City Council Meeting minutes as presented. B. Authorize the Monday, March 21, 2022,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 March 21,2022 6. Consent Agenda-continued C. Approve the renewal of the respective liquor licenses for the applicants listed below for the license period of April 15, 2022 through April 14, 2023, contingent upon successful Wright County Sheriff's Department review for liquor law violations. Off-Sale: Coborn's Liquor and Westside Liquor. Off-Sale 3.2 Malt Liquor: Coborn's Grocery, Kwik Trip and Speedway. On-Sale and Sunday Sale/Off-Sale: 152 Club, D. Michael B's, Geez Sports Bar& Grill,Neighbor's Saloon & Eatery and Villa Bar& Grill. On-Sale and Sunday: Cedar Creek Bar& Grill, Space Aliens Grill &Bar and Willy McCoy's. Wine On-Sale(includin2 strong beer) and 3.2 Malt Liquor: El Bamba, Hong Thai and The Hen and The Hog. MOTION made by Councilmember Cocking, seconded by Councilmember Hudson to approve the March 21, 2022, Consent Agenda as submitted. Ayes: Cocking, Hendrickson,Hudson, Olson and Zagorski. Nays: None. The motion carried. 7. Public Hearing A. Public Hearing for Approval of Tax Increment District No. 20, the TIF Financing Plan and an Interfund Loan Ms. Tammy Omdal,Northland Securities,presented the staff report which included information on the proposed Tax Financing District(TIF)request for Scherer Bros. Lumber Company. She said the proposed TIF would be an 9-year economic development which would generate approximately $1,100,000 over the life of TIF period. Ms. Omdal answered questions from Council. City Administrator Nafstad provided additional information on the proposed TIF and stated there had been a correction to the Interfund Loan section of the Resolution included in the agenda packet. Mayor Hendrickson open the public hearing. No one requested to speak. MOTION made by Councilmember Zagorski, seconded by Councilmember Olson to close the public hearing. Ayes: Cocking, Hendrickson, Hudson, Olson and Zagorski. Nays: None. The motion carried. MOTION made by Councilmember Cocking, seconded by Councilmember Hudson to adopt Resolution No. 2022-07 titled"Resolution Approving the Establishment of Tax Increment Financing District No. 20 within Municipal Development District No. 1; Approving the Tax Increment Financing Plan Therefor; And Authorizing an Interfund Loan as amended. Ayes: Cocking, Hendrickson, Hudson, Olson and Zagorski. Nays: None. The motion carried. 8. Legal Department A. Sale of Property to Scherer Bros. Limited Partnership City Attorney Couri presented the staff report which included information on the purchase agreement with Scherer Bros. Limited Partnership for the City owned vacant property. He reported the purchase agreement was contingent upon approval of the TIF District and added the property would be sold to Scherer Bros. for$1 and then the City would be repaid for the property through the TIF agreement. Attorney Couri also provided details on the history of the property and answered questions from Council. Agenda Page 5 City Council Meeting Draft Minutes Page 3 Regular Meeting of March 21,2022 A. Sale of Property to Scherer Bros. Limited Partnership - continued MOTION made by Councilmember Cocking, seconded by Councilmember Zagorski to approve the Purchase Agreement between the City and Scherer Limited Partnership and authorize its execution by the Mayor and City Clerk and authorize the release of Outlot B,Northwest Commercial Park from the following documents: A. Terms and conditions of Developer's\Planned Unit Development Agreement, filed May 1, 1999, as Document No. 677246 (First Outlet Mall Developer's Agreement) Amended by First Amendment to Developer's\Planned Unit Development Agreement, filed February 29, 2000, as Document No. 703145 (amendment to First Outlet Mall Developer's Agreement. B. Resolution No. 2003-31, Resolution Eliminating Land from Consideration for Wetland Mitigation, filed December 3, 2002, as Document No. 819518. Ayes: Cocking, Hendrickson, Hudson, Olson and Zagorski.Nays: None. The motion carried. 9. Wright County Sheriff's Office—Updates, reports, etc. There were no updates from the Wright County Sheriff's Office. 10. Department Business A. City Council 1. Committee Updates (STMA Ice Arena,Planning, JPKB,Parks, Fire Board, FYCQ Councilmember Cocking said the STMA Ice Arena approved their preliminary budget which included a$5 base rate increase. He answered questions regarding naming rights of the STMA Ice Arena. City Administrator Nafstad answered questions regarding the City's ownership percent of the STMA Arena and the use of the new dryland space. Councilmember Olson reported he attended the I-94 Coalition meeting and said Coalition members were considering a spring fly-in to Washington DC to push the I-94 gap project if the meetings were held in-person. He also attended the Region 7W MnDOT meeting and provided details on Federal grants received locally. City Administrator Nafstad provided details on some of the Federal grants that Albertville had received in the past. Councilmember Zagorski said the Planning Commission held the public hearings for both Konz Crossing and Pro Concrete Countertops PUD applications. City Planner Brixius stated the PUD applications would be presented to the Council for approval at the April 4, 2022, Council meeting. B. Building—None C. City Clerk—None D. Finance—None E. Fire—None Agenda Page 6 City Council Meeting Draft Minutes Page 4 Regular Meeting of March 21,2022 F. Planning and Zoning 1. Crossing Church—Extend Term of Interim Use Permit within the Albertville Outlet Mall Second Addition City Planner Brixius provided background information on the Crossing Church's Interim Use Permit(IPU) that has been in place since 2019 in the Albertville Outlet Mall Second Addition. He reported the Church's current IPU would be expiring after 3 years so the Church had requested an extension. He said City staff recommended extending the IPU for 6 more years to coincide with the Church's current lease. MOTION made by Councilmember Cocking, seconded by Councilmember Zagorski to adopt Resolution No. 2022-08 approving an extension of the term of the interim use permit for Crossing Church located in the Albertville Promenade Outlet Mall on Lot 1, Block 1, Outlets at Albertville Second Addition. Ayes: Cocking, Hendrickson, Hudson, Olson and Zagorski.Nays: None. The motion carried. 2. Amendment to Albertville Premium Outlet Mall Comprehensive Sign Plan City Planner Brixius provided background information on the current Albertville Outlet Mall Comprehensive Sign plan and the proposed amendments. He said change was mainly related to the type of signs allowed and the addition of an alternate standard for short-term leases. He answered questions from Council regarding the sign permit process. There was Council discussion regarding the proposed sign plan amendments for the Albertville Outlet Mall and the type of sign letters being proposed. Council directed City staff to add additional design standard to the Resolutions regarding the sign letters and background lighting. Mr. Scott Weekly, Operations Supervisor for Albertville Premium Outlets, answered questions from Council regarding the type of signs new short-term lease tenants were requesting. He said with many first-time business owners requesting short-terms leases,the Mall was requesting an alternative sign standard. City Attorney Couri answered questions from Council regarding the requirements if the east side of the mall were sold and said the new owners would be required to submit an amendment to the current PUD. MOTION made by Councilmember Hudson, seconded by Councilmember Zagorski to adopt Resolution No. 2022-09 approving an amendment to the Albertville Premium Outlet Mall Comprehensive Sign Plan for Tenant Wall Signs and Tenant Temporary Signs on Lot 1, Block 1 Outlets of Albertville Addition and Lot 1 Block 1 Outlets of Albertville Second Addition located within the City of Albertville as amended. Ayes: Cocking, Hendrickson, Hudson, Olson and Zagorski. Nays: None. The motion carried. G. Public Works/Engineering—None H. Administration 1. City Administrator's Update City Administrator Nafstad said next week the City's recycling schedule would be changed. Finance Director Lannes provided information on how the City has notified the residents of the recycling changes and answered questions from Council. Agenda Page 7 City Council Meeting Draft Minutes Page 5 Regular Meeting of March 21,2022 1. City Administrator's Update - continued City Administrator Nafstad said the 2022 League of Minnesota Conference will be held in June in Duluth. City Administrator Nafstad said at the next meeting, City staff would provide additional information on the Minnesota GreenSteps Cities program. City Clerk Luedke provided additional information on the GreenSteps Cities program. There was Council discussion regarding the program and the conscience was to not move further or add it to a future agenda. Announcements and/or Upcoming Meetings March 28 Joint Powers Water Board, 6 pm Parks Committee, 7 pm April 4 City Council, 7 pm April 11 STMA Arena Board, 6 pm April 12 Planning Commission, 7 pm April 14 Fire Relief Association Meeting, 6 pm April 18 Local Board of Appeals and Equalization, 6:15 pm April 18 City Council, 7 pm 11. Adjournment MOTION made by Councilmember Cocking, second by Councilmember Olson to adjourn the meeting at 8:20 pm. Ayes: Cocking, Hendrickson, 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 April 4, 2022 SUBJECT: CONSENT—FINANCE—PAYMENT OF BILLS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Authorize the Monday,April 4, 2022, 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 b£Y"tV1��£ Mayor and Council Request for Action Sme3l:^?.rv.lhing.&g+'ir„IINs, April 4, 2022 SUBJECT: CONSENT—CITY CLERK—KNIGHTS OF COLUMBUS #4174 LAWFUL GAMBLING PERMIT RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve the Knights of Columbus 94174 Lawful Gambling Exempt Permit Application for lawful gambling at an event to be held on June 10, 2022, at the St. Albert Parish Center located at 11458 57th Street NE, Albertville. BACKGROUND: The Knights of Columbus has submitted a Lawful Gambling Permit for a Church of St. Albert fundraiser. The Knights of Columbus are a non-profit organization that holds fund-raising events throughout the year. The application would allow for lawful gambling to be conducted at St. Albert Parish Center. KEY ISSUES: • The Knight of Columbus #4174 is a qualifying non-profit organization. • The lawful gambling (bingo and pull-tabs)will be held on Friday, June 10, 2022, from 6 pm to 9:30 pm at the St. Albert Parish Center. • The lawful gambling event is a fundraiser for the Church of St. Albert's programs. • The Minnesota Gambling Control Board ultimately issues this type of license, but requires City approval prior to issuing the license. FINANCIAL CONSIDERATIONS: There is no financial revenue collected from the applicant for the gambling permit. LEGAL CONSIDERATIONS: It is the City's policy to review and approve or deny gambling permit applications for gambling activity within the City. Responsible Person: Kris Luedke, City Clerk Submitted through: Adam Nafstad, City Administrator-PWD Attachment: • Application for Lawful Gambling Permit Agenda Page 10 EEIEW. MINNESOTA LAWFUL GAMBLING rhAA,4 11/17 LG220 Application for Exempt Permit , LWtOai& Page 1 of 2 An exempt permit may be issued to a nonprofit Application Fee (non- a organization that: Applications are processed in the order received. If the application • conducts lawful gambling on five or fewer days, and is postmarked or received 30 days or more before the event,the • awards less than $50,000 in prizes during a calendar application fee is$100; otherwise the fee is$150. year. If total raffle prize value for the calendar year will be Due to the high volume of exempt applications,payment of $1,500 or less, contact the Licensing Specialist assigned to additional fees prior to 30 days before your event will not expedite your county by calling 651-539-1900. service, nor are telephone requests for expedited service accepted. ORGANIZATION INFORMATION Oame: atio ' C (_�s Lf� 7 �- Previous Gambling 0 .y na 3 Name: 1 .l�T�� CJ 7 _ Permit Number. ? Minnesota Tax� '^7 Q Federal Employer ID Z ,/ 7 Number, if any: /l ©O e 6 A7 _ `N,umbeer�(FEIN), if any ✓- Mailing Address: ` ` Gx rc2 -jLm tl V /" r / �,, City: ✓ / �- State: 01 Zip:'�� (ff/1 County: Name of Chief Executive Officer(CEO): CEO Daytime PhoneZ,3-W/7 c�3K FCEO Email: _ / f ( rmit will be emailed to this empil ddress unless otherwise indicated below) Email permit to(if other than the CEO): _, + �, ► �. D y"' NONPROFIT STATUS Type of Nonprofit Organization (check one): Fraternal Religious Veterans Other Nonprofit Organization Atac th a copy of one of the following showing proof of nonprofit status: _ (DO NOT attach a sales tax exempt status or federal employer ID number,as they are not proof of nonprofit status.) A current calendar year Certificate of Good Standing Don't have a copy? Obtain this certificate from: MN Secretary of State, Business Services Division Secretary of State website,phone numbers: 60 Empire Drive,Suite 100 www.sos.state.mn.us St. Paul, MN 55103 651-296-2803,or toll free 1-877-551-6767 ❑ IRS income tax exemption(501(c)) letter in your organization's name Don't have a copy? To obtain a copy of your federal income tax exempt letter, have an organization officer contact the IRS toll free at 1-877-829-5500. IRS-Affiliate of national,statewide,or international parent nonprofit organization(charter)❑ If your organization falls under a parent organization,attach copies of both of the following: 1. IRS letter showing your parent organization is a nonprofit 501(c)organization with a group ruling; and 2. the charter or letter from your parent organization recognizing your organization as a subordinate. GAMBLING PREMISES INFORMATION Name of premises where the gambling event will be conducted (for raffles,list the site where the drawing will take place): .[ Physical Address(do not use P.O. box): ` 7_ S Check one: /� ro City: /( t d 4Le- _�_ ZipS_5�/ County: 'l Township: _ _ _ _ Zip: __ 1 t County: Date(s)of activity(for raffles, indicate the date of the drawing): i Check ach type of gambling activity that your organization will conduct: Bingo Paddlewheels Pull-Tabs Q Tipboards Raffle Gambling equipment for bingo paper, bingo boards, raffle boards, paddlewheels, pull-tabs,and tipboards must be obtained from a distributor licensed by the Minnesota Gambling Control Board. EXCEPTION: Bingo hard cards and bingo ball selection devices may be borrowed from another organization authorized to conduct binqo. To find a licensed distributor,ao to Agenda Page 11 11117 LG220 Application for Exempt Permit Page 2 of 2 LOCAL UNIT OF GOVERNMENT ACKNOWLEDGMENT (required before submitting application to the Minnesota Gambling Control Board) CITY APPROVAL �— COUNTY APPROVAL for a gambling premises for a gambling premises located within city limits located in a township The application is acknowledged with no waiting period. a application is acknowledged with no waiting period. The application is acknowledged with a 30-day waiting he application is acknowledged with a 30-day waiting period,and allows the Board to issue a permit after 30 days period,and allows the Board to issue a permit after (60 days for a 1st class city). 30 days. The application is denied. 1tle application is denied. Print City Name: Print County Name: Signature of City Personnel: Signature of County Personnel: Title: Date:_ Title: _ Date: z TOWNSHIP(if required by the county) On behalf of the township,I acknowledge that the organization is applying for exempted gambling activity within the township The city or county must sign before limits. (A township has no statutory authority to approve or submitting application to the deny an application, per Minn. Statutes,section 349.213.) Gambling Control Board. Print Township Name: -- Signature of Township Officer: Title: _ _Date: i CHIEF EXECUTIVE OFFICER'S SIGNATURE (required) The information provided in this application is complete and accurate to the best of my knowledge. I acknowledge that the financial report will be completed and returned the rd w' in 30 ays of the event date. Chief Executive Officer's Signature: Date: I� (Sign e must_beICEO's siq ature;designee may not sign) Print Name: T Al E 'y�~' '� _ REQUIREMENTS MAIL APPLICATION AND ATTACHMENTS Complete a separate application for: Mail application with: • all gambling conducted on two or more consecutive days; or a copy of your proof of nonprofit status; and • all gambling conducted on one day. application fee(non-refundable). If the application is Only one application is required if one or more raffle drawings are postmarked or received 30 days or more before the event, conducted on the same day. the application fee is$100; otherwise the fee is$150. Financial report to be completed within 30 days after the Make check payable to State of Minnesota. gambling activity is done: To: Minnesota Gambling Control Board A financial report form will be mailed with your permit. Complete 1711 West County Road B,Suite 300 South j and return the financial report form to the Gambling Control X Roseville, MN 55113 Board. ( 1 estions? Your organization must keep all exempt records and reports for Calf the Licensing Section of the Gambling Control Board at 3 1/2 years(Minn. Statutes,section 349.166,subd. 2(f)). _ 651-539-1900. Data privacy notice: The information requested application. Your organization's name and ment of Public Safety;Attomey General; on this form(and any attachments)will be used address will be public information when received Commissioners of Administration,Minnesota by the Gambling Control Board(Board)to by the Board. All other information provided will Management&Budget,and Revenue;Legislative determine your organization's qualifications to be private data about your organization until the Auditor,national and international gambling be involved in lawful gambling activities in Board issues the permit. When the Board issues regulatory agencies;anyone pursuant to court Minnesota. Your organization has the right to the permit,all information provided will become order;other individuals and agencies specifically refuse to supply the information; however,if public. If the Board does not issue a permit,all authorized by state or federal law to have access your organization refuses to supply this information provided remains private,with the to the information; individuals and agencies for information,the Board may not be able to exception of your organization's name and which law or legal order authorizes a new use or determine your organization's qualifications and, address which will remain public. Private data sharing of information after this notice was as a consequence,may refuse to issue a permit. about your organization are available to Board given;and anyone with your written consent. If your organization supplies the information members,Board staff whose work requires requested,the Board will be able to process the access to the information; Minnesota's Depart- This form will be made available in alternative format(i.e.large print,braille)upon request. Agenda Page 12 �lbcrtviljc Mayor and Council Request for Action I f April 4, 2022 SUBJECT: CONSENT—CITY CLERK—ALBERTVILLE LIONS CLUB ON-SALE TEMPORARY LIQUOR LICENSE APPLICATION RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following: MOTION TO: Approve an On-Sale Temporary Liquor License for the Albertville Lions Club for a benefit to be held at St. Alberts Parish Center located at 11458 57th Street NE on April 30, 2022. BACKGROUND: The Albertville Lions Club has applied for an on-sale temporary liquor license for a benefit for the Joe Scherber family to be held at the St. Albert Parish Center in Albertville. KEY ISSUES: • The Albertville Lions Club has applied for an on-sale temporary liquor license. • The benefit is to help the Scherber family with medical expenses and will be held at the St. Alberts Parish Center on April 30, 2022, from 2 pm to 10 pm. • The City has received the appropriate liquor liability coverage for the event. • The $100 fee for a temporary liquor license has been submitted for the event. FINANCIAL CONSIDERATIONS: There is minimal financial revenue collected from the applicant for the liquor licensing. LEGAL CONSIDERATIONS: The Mayor and City Council have the authority to review and approve or deny any liquor license. Responsible Person: Kris Luedke, City Clerk Submitted through: Adam Nafstad, City Administrator-PWD Attachments: • Temporary Liquor License application is on file in the City Clerk's Office Agenda Page 13 �lbcrtviljc Mayor and Council Request for Action I f April 4, 2022 SUBJECT: CONSENT—CITY CLERK—CHURCH OF ST.ALBERT ON-SALE TEMPORARY LIQUOR LICENSE APPLICATION RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following: MOTION TO: Approve an On-Sale Temporary Liquor License for Church of St. Albert's Casino Night fundraiser to be located at St. Albert Parish Center, 11458 57th Street NE for June 10, 2022, contingent upon receipt of liquor liability insurance certificate and appropriate license fee. BACKGROUND: The Church of St. Albert has applied for an on-sale temporary liquor license for their casino night church fundraiser on June 10, 2022,to be located at the St. Albert Parish Center, 11458 57th Street NE, Albertville. KEY ISSUES: • The Church of St. Albert has applied for an on-sale temporary liquor license. • The organization is requesting to serve during their Casino Night fundraiser event on June 10, 2022, from 6 pm to 10 pm. • The approval of the temporary liquor license would be contingent upon receipt of the certificate of liquor liability insurance and the $100 temporary liquor license fee. FINANCIAL CONSIDERATIONS: There is minimal financial revenue collected from the applicant for the liquor licensing. LEGAL CONSIDERATIONS: The Mayor and City Council have the authority to review and approve or deny any liquor license. Responsible Person: Kris Luedke, City Clerk Submitted through: Adam Nafstad, City Administrator-PWD Attachments: • Temporary Liquor License application is on file in the City Clerk's Office Agenda Page 14 �lbcrtviljc Mayor and Council Request for Action I f April 4, 2022 SUBJECT: CONSENT—CITY CLERK—ST.MICHAEL LIONS CLUB ON-SALE TEMPORARY LIQUOR LICENSE APPLICATION RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following: MOTION TO: Approve an On-Sale Temporary Liquor License for St. Michael Lions Club for a fundraiser event to be located at St. Albert Parish Center, 11458 57th Street NE on April 23, 2022. BACKGROUND: The St. Michael Foundation will be holding their Annual Dinner and Dance fundraiser for people with developmental challenges on April 23, 2022, at the St. Albert Parish Center. The St. Michael Lions Club has applied for an on-sale temporary liquor license for the event. KEY ISSUES: • The St. Michael Lions has applied for an on-sale temporary liquor license. • The St. Michael Foundation is holding their Annual Dinner and Dance fundraiser on April 23, 2022, from 5 pm to 10 pm. • The City has received the appropriate liquor liability coverage for the event. • The $100 fee for a temporary liquor license has been submitted for the event. FINANCIAL CONSIDERATIONS: There is minimal financial revenue collected from the applicant for the liquor licensing. LEGAL CONSIDERATIONS: The Mayor and City Council have the authority to review and approve or deny any liquor license. Responsible Person: Kris Luedke, City Clerk Submitted through: Adam Nafstad, City Administrator-PWD Attachments: • Temporary Liquor License application is on file in the City Clerk's Office Agenda Page 15 �lbcrtvillc Mayor and Council Request for Action April 4, 2022 SUBJECT: CONSENT—CLERK—SPECIAL EVENT PERMIT—FYCC DUELING PIANOS EVENT RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve a Special Event Permit for the Family Youth Community Connections (FYCC)to hold their Dueling Pianos event on June 17, 2022 from 6 pm to 10 pm in Central Park. BACKGROUND: FYCC submitted a special event permit application for their Dueling Piano event to be held on Friday, June 17, 2022, from 6 pm to 10 pm at the Central Park Depot. This event is the annual fundraiser for the Family Youth Community Connection. KEY ISSUES: • The event will be held outdoors at the Central Park Depot. • The event will be held on Friday, June 17, 2022 from 6 pm and 10 pm. • Alcohol and snacks will be provided by Tavern at Green Haven. FYCC has provided a copy of Tavern at Green Haven's alcohol caterer's and food permit. The event will be confined within a fenced area as required for outdoor liquor sales. • The event will have live music sponsored by Dueling Duo playing from 6 pm to 10 pm. • FYCC has contacted the Wright County Sheriff's Department requesting an officer be present at the event. • Guests will be asked to park in the ball field parking lot as there are no ball games scheduled for the evening. • Estimated attendance will be approximately 160 to 250 people. • FYCC has provided the City with a certificate of liability insurance for the event. • Outdoor special events shall only occur between April 1 to November 1 of each year. POLICY/PRACTICES CONSIDERATIONS: Special events permits are subject to the approval of the City Council. LEGAL CONSIDERATIONS: The applicant shall comply with the regulations for outdoor liquor sales. Responsible Person: Kris Luedke, City Clerk Submitted Through:Adam Nafstad, City Administrator-PWD Attachments: • The special event permit application is on file in the City Clerk's Office Agenda Page 16 �lbcrtvillc Small Town Wag.iNg City Lft. Mayor and Council Request for Action April 4, 2022 SUBJECT: PLANNING-KONZ CROSSING: CONDITIONAL USE PERMIT FOR A FULL-SERVICE DRIVE THROUGH SERVICE LANE RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Adopt Resolution No. 2022-10 approving the Konz Crossing request for a Conditional Use Permit for a full-service drive through service lane for property located at 5703 Lachman Avenue NE,Albertville. BACKGROUND: In 2021, Andy and Christine Konz requested applications for a conditional use permit and variance for a four-car drive through service lane associated with a proposed "Raw Table"restaurant. The restaurant will occupy the western most tenant space of"Konz Crossing"retail center located north of 57th Street NE and west of Lachman Avenue NE (5703 Lachman Avenue NE). The City approved the development requests based on the information provided by the applicant with the condition the service lane be designed without a menu board and an order station. After City approval, the applicant reconsidered the need for an on-site menu board and order station for their new restaurant and determined that on-site ordering was needed for a successful restaurant. The Konz have now applied for a new conditional use permit for a full-service drive through service lane. The subject site is zoned B2-A, Special Business which lists "restaurants" as a permitted use and "accessory drive-through service lanes" and "accessory outdoor dining facilities" as conditional uses. KEY ISSUES: • The subject site is zoned B2-A, Special Business which lists "restaurants" as a permitted use and"accessory drive-through service lanes" as a conditional use. • The drive through service lane design meets the City standards. • The drive through service lane design extends across the shared lot lines of Lot 1 and 2 Block 1 Labeaux Station. This encroachment onto Lot 2 requires the shared parking and access easement to be modified to memorialize the service lane. • The drive through service lane may change parking and traffic circulation patterns between Lots 1 and 2 Block 1 Lebeaux Station which may impact the future size and design of the building and site plan for Lot 2, Block 1, Labeaux Station. • The drive through service lane must be setback two feet from the fence surrounding the outdoor dining area. • The menu board size, design and configuration must not interfere with either the drive through service lane or the adjoining parking stalls. • Lighting on the west side of the building must be 90-degree cutoff fixtures with shielded light source. Agenda Page 17 Mayor and Council Request for Action—April 4,2022 Planning-Konz Crossing Commercial Development Page 2 of 2 POLICY/PRACTICES CONSIDERATIONS: The Planning Commission held a public hearing and considered the development application at their March 8, 2022, meeting and recommended approval of the development request with the conditions outlined in the attached resolution. FINANCIAL CONSIDERATIONS: There are no significant financial issues related to the site and building plan. The applicant shall be responsible for all costs associated with the development of the approved site and building plans. LEGAL CONSIDERATIONS: In accordance with Council procedures, the Mayor and Council have the authority to approve conditional use permits by a majority vote of the City Council. Responsible Person: Alan Brixius, City Planner Submitted Through:Adam Nafstad, City Administrator-PWD Attachments: • Resolution No. 2022-10 approving Konz Crossing Conditional Use Permit • March 3, 2022 Planning Report Agenda Page 18 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2022-10 RESOLUTION APPROVING A REQUEST FOR A CONDITIONAL USE PERMIT FOR A FULL-SERVICE DRIVE THROUGH SERVICE LANE FOR KONZ CROSSING PROPERTY LOCATED AT 5703 LACHMAN AVENUE NE WITHIN THE CITY OF ALBERTVILLE WHEREAS,Andy and Christine Konz have filed an application and submitted plans for the development of a commercial building on Lots 1 LeBeaux Station along with a conditional use permit for a full-service drive through service lane. Said site is located at 5703 Lachman Avenue NE in Albertville; and WHEREAS, City Staff has reviewed submitted plans and prepared a Planning Report dated March 3, 2022; and WHEREAS,the Albertville Planning Commission met and held a public hearing on March 8, 2022, to consider the application for conditional use permits for a full-service drive through service lane; and WHEREAS,upon considering the application materials,March 3, 2022, Planning Report and public testimony, the Planning Commission closed the public hearing and recommended that the City Council approve the requested conditional use permits for a full-service drive through service lane with the conditions outlined in the March 3, 2022, Planning Report; and WHEREAS,the Albertville City Council met on April 4, 2022, to consider the Konz Crossing development applications; and WHEREAS,the Albertville City Council has received the application materials including conditional use permit for a full-service drive through service lane, the City Staff review documents; the Planning Commission recommendation; and agrees with the findings and recommendation of the Planning Commission. NOW,THEREFORE BE IT RESOLVED,that the City Council of Albertville, Minnesota hereby approves the Konz's requests for conditional use permit for a full-service drive through service lane based on the civil plan set revised dated February 14, 2022, and menu board concept labeled"Potential Menu Board SK-I" for the property legally described as Lots 1 and 2 Block 1 LaBeaux Station Addition with the following conditions. L The shared parking and access easement shall be revised to address the February 14, 2022, site plan and memorialize the establishment of the drive through lane extending across the shared lot line of lots 1 and 2 Block 1 Labeaux Station. A copy of the revised easement and documentation of its recording at Wright County shall be submitted to the City prior to issuance of the building permit. Agenda Page 19 City of Albertville,MN Resolution No.2022-10 Meeting of April 4,2022 Page 2 2. Future development of Lot 2 will be required to undergo a site and building plan review by the City and the lot design will be evaluated based on the observed use of the drive through lane to determine the size and design of the future building and site layout on Lot 2,based on available parking. 3. The proposed drive-through lane shall be curbed with a minimum setback of two feet from the outdoor dining area fence. 4. The conceptual menu board is approved in height, dimension, and sign face area. The location of the menu board is approved with the following conditions. a. The installation of the menu board will require a building and electrical permit. b. The menu board shall be angled to provide a 2-foot setback from the drive through lane and the nearest parking stall. c. As part of the building permit and final menu board design review, the City may require bollards near the menu board as additional menu board protection from automobiles. 5. If new lighting is proposed along the west side of the building, all lighting fixtures shall be 90-degree cutoff fixtures with a shielded light source. 6. Site grading, drainage and utility plans shall be subject to the review and approval of the City Engineer. Adopted by the City Council of the City of Albertville this 4th Day of April 2022. Jillian Hendrickson,Mayor ATTEST: Kristine A. Luedke, City Clerk Agenda Page 20 V50 ORTHWEST ASSOCIATED CONSULTANTS , INC . Olson Memorial Highway, Ste. 320, Golden Valley, MN 55422 Telephone: 763.957.1100 Website: www.nacplanning.com PLANNING REPORT TO: Adam Nafstad FROM: Alan Brixius DATE: March 3, 2022 RE: Albertville - Konz Crossing (Raw Table Restaurant) Conditional Use Permit for accessory full-service drive-through service lane FILE: 163.06 — 22.01 BACKGROUND In 2021, Andy & Christine Konz requested applications for a conditional use permit and variance for a four-car drive through service lane associated with a proposed "Raw Table" restaurant. The restaurant will occupy the western most tenant space "Konz Crossing" retail center located north of 57th Street NE and west of Lachman Avenue NE (5703 Lachman Avenue NE). The City approved the development requests based on the information provided by the applicant with the condition the service lane be designed without a menu board and an order station. After the City approval, the applicant reconsidered the need for an on-site menu board and order station for their new restaurant and determined that on-site ordering was needed for a successful restaurant. The Konz have now applied for a new conditional use permit for a full-service drive through service lane. The subject site is zoned 132-A, Special Business which lists "restaurants" as a permitted use and "accessory drive-through service lanes" and "accessory outdoor dining facilities" as conditional uses. Attached for Reference: Exhibit A: Site Plan Exhibit B: Grading & Drainage Plan Exhibit C: Landscape Plan Exhibit D: Potential Menu Board Agenda Page 21 ISSUES AND ANALYSIS DRIVE-THROUGH SERVICE LANE - CONDITIONAL USE PERMIT Drive-through Service Lane Requirements. As shown on the submitted site plan (Exhibit A), the drive-through service lane for the "Raw Table" restaurant is proposed on the west side of the building and provides stacking space for four vehicles. Within 132-A zoning districts, drive-through service lanes which are accessory to a permitted use are subject to conditional use permit processing and are allowed only if the following criteria are satisfied: A. Not less than one hundred twenty feet(120) of segregated automobile stacking must be provided for the single service lane. Where multiple service lanes are provided, the minimum automobile stacking may be reduced to sixty feet(60) per lane. Comment: The submitted site plan (Exhibit A) shows a drive through service lane having 120 feet of stacking space meeting the City standard. To accommodate this length, the drive through lane extends across the shared lot line with Lot 2 Block 1 Labeaux Station. In review of the service lane configuration, we offer the following comments. 1. In 2020, the City approved a conditional use permit for shared parking and access between Lots 1 and 2, Block 1 Labeaux Station. As a condition of this approval, the property owner was required to provide a cross access and parking easement to be recorded across both lots. This easement was designed and reflects the 2020 site plan. As a condition of approving the new drive through lane, the shared parking and access easement must be reviewed and possibly amended to reflect the construction of the drive through lane to memorialize this site improvement for future lot owners. A copy of the recorded shared parking and access easement shall be submitted to the City. 2. The City requirement of 120 feet for drive through service lane stacking is a minimum standard. Frequently, successful restaurants and coffee shops will have customer stacking longer than 120 feet. If this occurs at this site, customer stacking may interfere with the available parking between Lots 1 and 2 Block 1 Labeaux Station or parking on the west end of Lot 2. The establishment of the drive through lane may reduce available the parking supply which will impact the size and design of the building on Lot 2, Block 1 Labeaux Station. With the approval of the drive through service lane conditional use permit, the City will require future development of Lot 2 to undergo a site and building plan review by the City. The future development of Lot 2 will be evaluated based on the observed use of the drive through lane to determine the size and design of the future building and site layout. Agenda Page 22 B. The stacking lane and its access must be designed to control traffic in a manner to protect the buildings and will not interfere with on-site traffic circulation or access to required parking spaces. Comment: The site plan provides 120 feet of automobile stacking exclusive of the required parking, The design of the drive through lane results in a change in the access from the west and changes in the parking lot for Lot 2, Block 1 Labeaux Station. The previous comment outlines the condition related to the new design and the potential impacts of stacking beyond the 120 drive through lane. In review of the submitted site plan, we raised concern some regarding the proximity of the drive-through lane to the proposed outdoor dining area to the south. In this regard, it is recommended that the following steps be taken to minimize vehicle impacts on outdoor diners: 1 . The proposed drive-through lane shall be curbed with a minimum setback of two feet from the outdoor dining area. The two-foot setback allows an automobile to overhang the curb without damaging the fence. 2. While some screening is proposed along the north boundary of the outdoor dining area (a six-foot-long segment of lattice screening with planters), it is recommended that screening be provided along the north boundary of the dining area (to screen the area from view of the abutting drive-through lane). At the same time, such screening efforts should maintain proper visibility for vehicles which exit the drive-through lane. C. No part of the public street or boulevard may be used for stacking of automobiles. Comment: This is not applicable to the proposed drive through lane. D. The stacking lane, order board intercom, and window placement shall be designed and located in such a manner as to minimize glare to adjacent premises, particularly residential premises, and to maximize maneuverability of vehicles on the site. Comment: The applicant has submitted a conceptual menu board / order station design (Exhibit D). This menu board is 6 feet wide and will be 7 feet in height. The sign face is approximately 36 sq. ft. in total area. These menu board dimensions are acceptable. The location of the menu board is on a raised concrete peninsula located at the northwest corner of the building. The peninsula is 8 feet 9 inches in width and separates the drive through lane from a parking stall to the east. With the installation of the menu board, we recommend the following conditions. Agenda Page 23 1. The installation of the menu board will require a building and electrical permit. 2. The menu board must be angled to provide a 2-foot setback from the drive through lane and the nearest parking stall. 3. As part of the building permit and final menu board design review; the City may require bollards near the menu board as additional protection from automobiles. E. The drive-through lanes shall be screened from view of adjoining residential zoning districts and public street rights of way. Comment: This is not applicable to the proposed drive through service lane. F. Hours of operation shall be limited as necessary to minimize the effect of nuisance factors such as traffic, noise, and glare. Comment: The location of the restaurant and drive through service lane is in a commercial area and away from residential land uses. We do not anticipate a need to limit the hours of operation. G. A lighting and photometric plan will be required that illustrates that drive-through service lane lighting shall comply with section 1000.10 of the Ordinance. Comment: A lighting plan was approved with the overall Konz Crossing project in February 2021 which applies to the site. The lighting plan did not have any exterior light fixtures on the west side of the building. Any additional lighting associated with the drive through lane (over the service window) must be 90-degree cutoff fixture with a shielded light source. If additional lighting is proposed on this side of the building, the exterior fixture must match the balance of the on-building fixtures and meet the City Code requirements. RECOMMENDATIONS Based on the preceding review, Staff recommends approval of a conditional use permit to allow a drive-through service lane as illustrated in civil plans dated 02/14/2022 for Konz Crossing at 5703 Lachman Avenue subject to the following conditions: 1 . The shared parking and access easement shall be revised to address the 02/14/2022 site plan and memorialize the establishment of the drive through lane extending across the shared lot line of lots 1 and 2 Block 1 Labeaux Station. A copy of the revised easement and documentation of its recording at Wright County shall be submitted to the City prior to issuance of the building permit. Agenda Page 24 2. Future development of Lot 2 will be required to undergo a site and building plan review by the City and the lot design will evaluated based on the observed use of the drive through lane to determine the size and design of the future building and site layout based on available parking. 3. The proposed drive-through lane shall be curbed with a minimum setback of two feet from the outdoor dining area fence. 4. The conceptual menu board is approved in height, dimension, and sign face area. The location of the menu board is approved with the following conditions. a. The installation of the menu board will require a building and electrical permit. b. The menu board shall be angled to provide a 2-foot setback from the drive through lane and the nearest parking stall. c. As part of the building permit and final menu board design review the city may require bollards near the menu board as additional menu board protection from automobiles. 5. If new lighting is proposed along the west side of the building, all lighting fixtures shall be 90-degree cutoff fixtures with a shielded light source. 6. 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Mayor and Council Request for Action April 4, 2022 SUBJECT: PLANNING—PRO CONCRETE COUNTER TOPS CONDITIONAL USE PERMIT RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Adopt Resolution No. 2022-11 approving the request of Pro Concrete Countertops for a Conditional Use Permit for light manufacturing and assembly within the Planned Unit Development(PUD) B-2A Zoning District at 6737 Labeaux Avenue North in Albertville. BACKGROUND: Pro Concrete Countertops occupies the west tenant bay of the building located at 6737 LaBeaux Avenue NE. The City Code Enforcement had notified them that their occupancy of this building requires a conditional use permit to allow a limited manufacturing facility within the PUD-B-2A zoning district that cover this lot. They have subsequently applied for the required conditional use permit. In 2019, the City notify the property owner that the two businesses that occupying the building at 6737 Labeaux Avenue North, took occupancy in violation of the City Zoning and Building Code. Rigs-to-Rods fail to secure a required conditional use permit and building code compliance. PS Deck was an industrial manufacturing use not allowed within the established B-2A Zoning District. At the request of the property owner, the City approved a change in zoning exclusively for the property from B-2A to a PUD/B-2A zoning district, to allow for light manufacturing uses within the building on the site. In the preparation of the zoning district, the City allowed the limited manufacturing facilities within the site with performance standards needed to correct conditions on the property with regards to building code, fire code and on-site conditions. Exhibit A is a copy of the approved zoning amendment. The City also subsequently approved a conditional use permit for both PS Deck and Rigs-to-Rods with conditions, allowing these uses to remain in the building. KEY ISSUES: • In 2019, the City notified both the property owner and the businesses (Rigs-to-Rods and PS Deck)that they took occupancy in violation of the City's zoning, building code and fire code requirements. • In 2019,the City approved a zoning map amendment establishing the PUD/B-2A zoning district exclusively on the property at 6737 Labeaux Avenue. This new zoning district expanded the allowed uses within the B-2A district to include light manufacturing and assembly uses as a conditional use within this district. The zoning amendment also established performance standards to allow these industrial uses within the zoning district. • In 2019, the City approved a conditional use permit for PS Deck with conditions to allow this industrial use to remain on this lot. In 2022, a site inspection revealed a number of Agenda Page 30 Mayor and Council Request for Action—April 4, 2022 Planning—Pro Concrete Countertops Conditional Use Permit Page 2 of 2 items out of compliance with PS Deck related to outdoor storage, trash receptacles, and loading area. • In 2019,the City approved a conditional use permit and interim use permit for Rigs-to- Rods to allow this auto service/repair to remain on this lot. In 2022, a site inspection revealed that Rigs-to-Rods no longer occupies the site. The lack of improvements related to the 2019 CUP and IUP voids these approvals. • City Code Enforcement identified that Pro Concrete Countertops took occupancy of the building without proper zoning and building code approvals. The City notified Pro Concrete Counter Tops of the need to obtain a conditional use permit for light manufacturing to occupy this site. • The attached March 3, 2022, report outlines the building code and zoning issues that must be addressed to meet the criteria for conditional use permit approval. POLICY/PRACTICES CONSIDERATIONS: The Planning Commission held a public hearing and considered the development applications at their March 8, 2022,meeting and recommended approval of each of the development requests with the conditions outlined in the attached resolution. FINANCIAL CONSIDERATIONS: There are no significant financial issues related to the site and building plan. The applicant shall be responsible for all costs associated with the development of the approved site and building plans. LEGAL CONSIDERATIONS: In accordance with Council procedures, the Mayor and Council have the authority to approve on a conditional use permit by a majority vote of the City Council. Responsible Person: Alan Brixius, City Planner Submitted Through:Adam Nafstad, City Administrator-PWD Attachments: • Resolution No. 2202-11 approving Pro Concrete Counter Tops Conditional Use Permit • March 3, 2022 Planning Report Agenda Page 31 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2022-11 RESOLUTION APPROVING A SITE AND BUILDING PLAN, CONDITIONAL USE PERMIT FOR LIMITED MANUFACTURING USE ENTITLED PRO CONCRETE COUNTERTOPS TO BE LOCATED AT 6737 LABEAUX AVE NE WITHIN THE CITY OF ALBERTVILLE WHEREAS,the Stangler Building located at 6737 Labeaux Ave NE has been rezoned to PUDB-2A,which allow light manufacturing and assembly uses by conditional use permit; and WHEREAS,Pro Concrete Countertops has applied for a site and building plan, conditional use permit for a light manufacturing use at the property located at 6737 Labeaux Ave NE with Parcel Identification numbers 101-500-351-402 and 101-500-351-404; and WHEREAS, City Staff has reviewed submitted plans and prepared a planning report dated March 3, 2022; and WHEREAS,the Albertville Planning Commission met and held a public hearing on March 8, 2022,to consider the application for a conditional use permit; and WHEREAS,upon considering the application materials, the March 3, 2022 Planning Report and public testimony the Planning Commission closed the public hearing and recommended that the City Council approve the conditional use permit with the conditions of the March 3, 2022, Planning Report; and WHEREAS,the Albertville City Council met on April 4, 2022, to consider the Pro Concrete Countertops conditional use permit application; and WHEREAS,the Albertville City Council has received Pro Concreter Countertops application materials including a site plan, staff review documents; the Planning Commission recommendation; and agrees with the findings and recommendation of the Planning Commission and the March 3, 2022 Planning Report. NOW,THEREFORE BE IT RESOLVED,that the City Council of Albertville, Minnesota hereby approves the Pro Concrete Countertops conditional use permit for light manufacturing and assembly for property at 6737 Labeaux Avenue North subject to the following conditions. Termination of the Conditional Use Permits for Rigs-to-Rods. In 2019, the City approved a conditional use permit for auto repair use and outdoor storage for Rigs-to-Rods which occupied the west half of the building at 6731 LaBeaux Avenue North. Conditions of approval have not been implemented within one year of approval. This report is notice to the property owner that these approvals are null and void. No auto repair or outdoor storage is permitted on the site. Agenda Page 32 City of Albertville,MN Resolution No.2022-11 Meeting of April 4,2022 Page 2 Pro Concrete Countertops Conditional Use Permit. Approval of the Pro Concrete Countertops conditional use permit with the following conditions being completed prior to the receipt of a certificate of occupancy. 1. Building, mechanical, and fire suppression permits will be required. 2. Building plans shall be designed by a MN licensed architect. 3. In accordance with State Provision 1306, change of use will require the space to install a NFPA 13 fire suppression system. Previous tenant occupancy was a S-1 and the proposed tenant for Pro Concrete Countertops will be F-1 occupancy. 4. Applicant shall provide the City with septic system compliance report approved by Wright County prior to building permit approval. Applicant shall provide a narrative of the business water use. 5. Alteration to a primary function or change of occupancy to a portion of the building shall be required to apply up to 20% of the building permit valuation for accessibility compliance. 6. Existing electrical system shall be reviewed by a licensed electrician to verify the existing electrical system will meet the current codes. Permit and inspection by state electrical inspector shall be required. 7. The existing 2-hour fire wall shall remain in place and any penetration shall be fire stop. 8. The site plan shall show the location of an exterior trash enclosure and construction details for the enclosure that meets the City's zoning standards. The trash enclosure shall be constructed prior to issuance of a certificate of occupancy of the tenant. 9. The applicant shall provide a floor area breakdown of the tenant bay by use to allow for a parking calculation. The applicant shall provide a revised site plan that illustrates the location of required parking, loading/delivery area that meets the zoning design standards of the City Code with regard to stall and driveway dimensions, surfacing, the parking lot shall have striped parking stalls for the entire building. Parking lot and loading area improvements shall be constructed prior to issuance of a certificate of occupancy. 10. The applicant shall provide disability parking and accessible route to main entrance. The location and design shall be illustrated on the site plan. The disability parking shall be constructed prior to issuance of a certificate of occupancy. 11. All areas beyond the approved paved parking and loading areas shall be grassed and landscaped to define the boundaries of the approved parking area. Applicant shall provide a landscape plan that establishes a schedule for establishment of these turfed areas. Agenda Page 33 City of Albertville,MN Resolution No.2022-11 Meeting of April 4,2022 Page 3 12. Pro Concrete Countertops shall provide a narrative describing their business operation specific to the production materials, manufacturing process and waste disposal. 13. Due to the history of non-compliance with past approvals or the compliance with the approved PUD/B-2A zoning district unique to this property,the applicant/property owner shall post a financial security based on the City Engineer's estimate costs of the required parking lot, loading area, site restoration and trash enclosure improvements required with this conditional use permit approval. Said Security shall be held until the required improvements are completed and approved by the City or the business vacates the building. The issuance of the conditional use permit is contingent on the posting of said security and the conditional use permit shall not be issued or recorded until said security is provided to the City in a form acceptable to the City Attorney. Adopted by the City Council of the City of Albertville this 4th day of April 2022. Jillian Hendrickson,Mayor ATTEST: Kristine A. Luedke, City Clerk Agenda Page 34 NORTRWEST ASSOCIATED CONSULTANTS,, mc. 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: March 3, 2022 RE: Pro Concrete Countertops FILE NO: 163.06 22.02 ADDRESS: 6737 Labeaux Avenue NE PID: 101500351402 and101500351404 BACKGROUND Pro Concrete Countertops occupies the west tenant bay of the building located at 6737 LaBeaux Avenue NE. The City has notified them that their occupancy of this building requires a conditional use permit to allow a limited manufacturing facility within the PUD-13-2A zoning district that cover this lot. They have subsequently applied for the required conditional use permit. In 2019, at the request of the property owner, the City approved a change in zoning exclusively for the property from 13-2A to a PUD / 13-2A zoning district, to allow for some limited manufacturing use within the building on the site. In the preparation of the zoning district, the City allowed the limited manufacturing facilities within the site with performance standards needed to address substandard conditions on the property with regard to building code, fire code and onsite conditions. Exhibit A is a copy of the approved zoning amendment. Following the approval of the zoning amendment, the City also approved a conditional use permit for PS Deck to enter the building. PS Deck, is a furniture finishing and painting company, which applies paint and finishes to cabinets and furniture. The following conditions were imposed on the PS Deck conditional use permit approval. 1 . Shall meet all building and fire code requirements and approval for their building occupancy classification prior to occupancy. Agenda Page 35 2. The applicant shall demonstrate adequate and up to code utility services for the proposed use. 3. The parking shall be consistent with the submitted site plan with the following conditions. a. The paved parking area shall be dimensioned and striped per City Code. Disability parking shall be designated and striped according. b. The parking area on the east side of the building shall be designed and constructed in full compliance with City Code. c. All areas beyond the approved paved parking areas shall be grassed and landscaped to define the boundaries of the approved parking area. Applicant shall provide a landscape plan that establishes a schedule for establishment of these turfed areas. 4. All current outdoor storage must be cleaned up before the tenant can occupy. 5. All painting and or spraying must be conducted in the approve booth and no exterior fumes or byproduct may occur. Inspection of the site reveals that neither the property owner nor PS Deck have undertaken improvements outlined in conditions 3 and 4 above. The parking lot is not striped, the area east of the building has not been improved and exists in a gravel condition, areas beyond the existing pavement have not been restored to grass or landscaping. The dumpster and pallets are stored outside of the building. In this regard, PS Deck is in violation their 2019 conditional use permit. In 2019, Rigs to Rods occupied the west side of the building at 6737 LaBeaux Avenue NE. Upon recognizing the tenant change, the City Code enforcement required this business to pursue a conditional use permit to legally operate within this business. Rigs- to-Rods subsequently applied for conditional use permit for auto repair and an interim use permit for outdoor storage in the PUD / B-2A zoning district. In review of the Rigs- to-Rods, the City approved their conditional use permits with the following conditions. Auto Repair CUP: 1) The business parking shall be located on a paved surface; parking on dirt or grassed areas of the site is prohibited. The parking area shall be striped to provide 15 parking stalls and 1 disability parking stall shall be properly dimensioned to meet City Code. 2) All business operations and repairs shall occur within the building. No outdoor automobile repairs. 3) Trash and recycling handling equipment shall be kept within the building except for trash pick-up days. Agenda Page 36 4) The business's tenant bay shall meet all building and fire codes and receive a certificate of occupancy. Outdoor Storage Interim Use Permit: 1) Outdoor storage will be allowed as an interim use permit. The outdoor storage interim use permit will expire with a change of use for the tenant bay, or the redevelopment of the building or site. 2) The applicant shall provide the following additional information pertaining to the outdoor storage permit. a) Site plan showing the location, size, setbacks and access to the outdoor storage area. b) Fence detail showing the fence type, material, height and gate details c) Screening plan for the outdoor storage area. This is either a screen fence or landscape plan. d) Outdoor storage area surfacing plan that meets the surfacing requirements of the City. e) Until the outdoor storage area is approved and constructed the current illegal outdoor storage is removed from the site. f) Stacking of materials within the outdoor storage area above the height of the provided screening shall be prohibited. g) Outdoor storage beyond the approved and constructed outdoor storage area is prohibited. h) The items stored in the outdoor storage area shall be limited items related to the operation of Rigs to Rods. Outdoor storage of hazardous materials is prohibited. The aforementioned information shall be submitted for the review and approval of City staff prior to construction and use of the outdoor storage area. The aforementioned items shall be imposed as conditions for the operation and use of the interim use permit. Site inspection reveals that none of the required improvements have been made to the property. The area west of the building is predominately gravel. The dumpsters are located outside of the building. Following the City approvals, Rigs-to-Rods did not get their lease renewed and have left the building. Neither Rigs-to-Rods nor the property owner have implemented any of the improvements for either the conditional use permit or the interim use permit. Whenever improvements associated with an approved conditional use or interim use permit are not initiated or utilized with one year of approval, such permits become null and void. This report is notice to the property owner that the previous Rigs-to- Rods CUP and IUP approval are null and void and they no longer are applicable to this property. This site history is provided to give an understanding of site conditions and the property owners response to the needed site improvements related to past approvals to allow the tenants occupying the site. Agenda Page 37 Pro Concrete Countertops has occupied the building for several months. Again, City Code Enforcement have advised them that they needed a conditional use permit to occupy the site and that the building change of occupancy will trigger building and fire code requirements. Subsequently, Pro Concrete Countertops has submitted an application to allow limited manufacturing facility in the west end of the building at 6737 LaBeaux Avenue NE in compliance with the PUD/B-2A zoning district on this property. EXHIBITS: EXHIBIT A. PUD/ B-2A Zoning District EXHIBIT B. Site plan ANALYSIS: Exhibit A is the approved PUD / B-2A zoning district which overlays the 6737 LaBeaux Avenue NE. Within this zoning district, limited manufacturing production is allowed by conditional use permit. This report will evaluate the application against the applicable performance standards of the approved PUD /B-2A district. Within the approved PUD/B-2A, the PUD is consistent to the site plan (Exhibit B) and shall follow the conditions set forth below: 1. All future tenant changes shall meet all building and fire code requirements for their building occupancy classification prior to occupancy. Comment: The Albertville Building Inspector and Fire Chief have reviewed the site and building and have listed the following items are needed to issue an occupancy permit for the Pro Concrete Countertops. a. Building, mechanical, and fire suppression permits will be required. b. Building plans shall be designed by a MN licensed architect. c. In accordance with State Provision 1306, change of use will require the space to install a NFPA 13 fire suppression system. Previous tenant occupancy was a S-1 , and proposed tenant for Pro Concrete Countertops will be F-1 occupancy. d. Septic system and/or compliance report must be approved by Wright County prior to building permit approval. e. Alteration to a primary function or change of occupancy to a portion of the building shall be required to apply up to 20% of the building permit valuation for accessibility compliance. f. Provide handicap parking and accessible route to main entrance. g. Existing electrical system shall be reviewed by a licensed electrician to verify the existing electrical system will meet the current codes. Permit and inspection by state electrical inspector shall be required. h. The existing 2-hour fire wall shall remain in place and any penetration shall be fire stop. i. Verify trash enclosure/screening is required. Agenda Page 38 No occupancy permit shall be issued until all the aforementioned items have been submitted, reviewed, and approved by the City Building and fire inspector. 2. The site shall abide by all B-2A zoning restrictions. a. Pro Concrete Countertops must pursue and have a conditional use permit and certificate of occupancy approved to remain in the building. Comment: Pro Concrete Countertops has applied for the conditional use permit. This report evaluates the application on its merit. b. The applicant shall demonstrate adequate utility services for the proposed uses. If the private systems do not meet code, then connection to city utilities will be required. Comment: Septic system and/or compliance report must be approved by Wright County prior to building permit approval. Applicant must provide a description of anticipated water use and disposal. This description must include any type of wastewater and any particulate material being drained to the septic system. c. The parking shall be consistent to the submitted site plan with the following conditions: 1) The number of require parking stalls shall be determined by the tenant mix and use of floor space per City Code. 2) The parking area shall be dimensioned and striped per City Code. Disability parking shall be designated and striped accordingly. 3) The parking area on the east side of the building shall be designed and constructed in full compliance with City Code. Without construction details at this time, this parking area is not approved with this development application. 4) All areas beyond the approved parking areas shall be grassed and landscaped to define the boundaries of the approved parking area. Applicant shall provide a landscape plan that establishes a schedule for establishment of these turfed areas. Comment: The attached site plan (Exhibit C) does not show a parking lot design. The plan shows the limits of paved area, gravel and grass. The improvements required with the previous CUP approval have not been implemented. In review of the current application, the following conditions will be recommended. 1 . The conditions of the PS Deck CUP must be implemented. Specifically, that the area east of the building shall be designed with a paved loading area / parking area that meets the City zoning standards. Outside the paved loading and parking areas shall be restored from gravel to grass or a landscaping ground cover. Agenda Page 39 2. All parking areas shall be striped to delineate the parking stalls. Stalls shall be properly striped and dimensioned to meet City standards. 3. The parking lot shall be designed to provide disability parking stalls in the number and design to meet ADA standards. 4. Pro Concrete Countertops has not provided a breakdown of how the building will be used or an estimate of required parking. Based on the site plan, the office space will require 2 parking spaces and 5,000 sq. ft. of manufacturing will require 13 parking spaces for a total of 15 parking spaces. This parking requirement may be reduced with more information on how the business operates or how the building will be used. Pro Concrete Countertops must provide a site plan and narrative that demonstrates that they can meet the City's parking requirements. 5. West of the building consists of gravel and a concrete pad. Those areas not in a paved asphalt or concrete condition must be restored to grass or landscaped ground cover. The approved PUD/ B-2A zoning district for this site allows light manufacturing or assembly of a wide variety of products, that will not produce exterior noise, glare, fumes, obnoxious products, byproducts or wastes or creates other objectional impact to the surrounding properties or street right of ways by conditional use permit provided the following conditions are met. 1. Required parking for the use shall be of a paved surface. Comment: As identified before, neither the previous tenants, property owners or the Pro Concrete countertops have demonstrated compliance with the City parking standards. 2. On-site loading and delivery shall meet the conditions of chapter 1300 of the Albertville Zoning Code. Comment: The loading and delivery areas for PS Deck do not comply with City zoning standards. Pro Concrete Countertops have not illustrated the location and design of a loading/delivery area for their portion of the building. The site plan must be revised to illustrate where the shipping and receiving will occur, along with a narrative describing the type and size of truck that will serve the site. 3. All trash and or recycling equipment shall be located within a trash enclosure or within the building. Comment: The building is out of compliance with this condition. Trash dumpsters are stored outside the building for both PS Deck and Pro Concrete Countertops. The building and site plan must show the location and design of an exterior trash enclosure. It must be designed and sized to meet the needs of the building tenants and designed to meet the City's zoning standards. The location of the trash enclosure must be accessible to garbage trucks. Agenda Page 40 4. Proposed industries shall demonstrate that they will not produce exterior noise, glare, fumes, obnoxious products, byproducts or wastes or creates other objectional impacts or nuisances on the adjoining properties or the environment. Comment: Pro Concrete Countertops must provide a narrative describing their business operation specific to the production materials, manufacturing process and waste disposal. Concern exists that the wastewater to the on-site septic system may carry concrete wash that may impair the system. A septic system and/or compliance report approved by Wright County prior must be submitted to the City prior to building permit approval. All operations must be conducted within the building, with over head doors closed to prevent nuisance noise issues. CONCLUSION The City approved a zoning change specifically for this property to allow light manufacturing uses and approved past conditional use permits allowing the property owner to lease to businesses like PS Deck and previous Rigs to Rods. These approvals were granted after these businesses had already taken occupancy within the building. The conditional use permits came with requirements to bring the building into compliance with building and fire codes to accommodate the change of occupancy and to improve the site to bring the new industrial use into compliance with the new zoning district. Site inspection reveals that the required site improvements for parking, loading and green space have not been undertaken. This raises concern with gaining compliance with this new application. In review of the Pro Concrete Countertops application for conditional use permit to allow a light manufacturing use in the western 5,000 sq. ft. of the building at 6737 LaBeaux Avenue North, we offer the following recommendations. Termination of the Conditional Use Permits for Rigs-to-Rods. In 2019, the City approved conditional use permit for auto repair use and outdoor storage for Rigs-to- Rods which occupied the west half of the building at 6731 LaBeaux Avenue North. Conditions of approval have not been implemented within one year of approval. This report is notice to the property owner that these approvals are null and void. No auto repair or outdoor storage is permitted on the site. Pro Concrete Countertops Conditional Use Permit. Based on our review of the information provided and conditions of the site, Staff offers the Planning Commission the following two options to consider. Option 1. Approval of the Pro Concrete Countertops conditional use permit with the following conditions being completed prior to the receipt of a certificate of occupancy. 1. Building, mechanical, and fire suppression permits will be required. Agenda Page 41 2. Building plans shall be designed by a MN licensed architect. 3. In accordance with State Provision 1306, change of use will require the space to install a NFPA 13 fire suppression system. Previous tenant occupancy was a S- 1, and proposed tenant for Pro Concrete Countertops will be F-1 occupancy. 4. Applicant shall provide the City with septic system compliance report approved by Wright County prior to building permit approval. Applicant shall provide a narrative of the business water use. 5. Alteration to a primary function or change of occupancy to a portion of the building shall be required to apply up to 20% of the building permit valuation for accessibility compliance. 6. Existing electrical system shall be reviewed by a licensed electrician to verify the existing electrical system will meet the current codes. Permit and inspection by state electrical inspector shall be required. 7. The existing 2-hour fire wall shall remain in place and any penetration shall be fire stop. 8. The site plan shall show the location of an exterior trash enclosure and a construction detail for the enclosure that meets the City's zoning standards. The trash enclosure shall be constructed prior to issuance of a certificate of occupancy of the tenant. 9. The applicant shall provide a floor area breakdown of the tenant bay by use to allow for a parking calculation. The applicant shall provide a revised site plan that illustrates the location of required parking, loading/delivery area that meets the zoning design standards with regard to stall and driveway dimensions, surfacing, the parking lot shall have striped parking stalls for the entire building. Parking lot and loading area improvements shall be constructed prior to issuance of a certificate of occupancy. 10. The applicant shall provide disability parking and accessible route to main entrance. The location and design shall be illustrated on the site plan. The disability parking shall be constructed prior to issuance of a certificate of occupancy. 11. All areas beyond the approved paved parking and loading areas shall be grassed and landscaped to define the boundaries of the approved parking area. Applicant shall provide a landscape plan that establishes a schedule for establishment of these turfed areas. 12. Pro Concrete Countertops shall provide a narrative describing their business operation specific to the production materials, manufacturing process and waste disposal. Agenda Page 42 13. The City may grant a temporary Certificate of Occupancy to expire on June 17, 2022. This is the deadline for compliance with the conditions of the Conditional use permit. After this deadline, the business shall vacate the building if the full compliance is not achieved. 14. Due to the history of non-compliance with past approvals or the compliance with the approved PUD / B-2A zoning district unique to this property, the applicant/ property owner shall post a financial security based on the City Engineer's estimate costs of the required parking lot, loading area, site restoration and trash enclosure improvements required with this conditional use permit approval. Said Security shall be held until the required improvements are completed and approved by the City or the business vacates the building. The issuance of the conditional use permit is contingent on the posting of said security and the conditional use permit shall not be issued or recorded until said security is provided to the City in a form acceptable to the City Attorney. Option 2. Due to the extent of the conditions outlined in Option 1 above, the Planning Commission may continue the application to the April 12, 2022, to allow the applicant to review the conditions outlined in this report and responds to these conditions with a revised site plan, narrative, building plans and on-site sewer compliance report approved by Wright County. Revised information shall be submitted to the City no later than March 29, 2022, to be included in the April Planning Commission packet. If this option is chosen, City Staff will send the applicant a letter extending the review period for the conditional use permit. Cc. Mike Couri Maeghan Becker Paul Hiens Eric Bullen Randy Stangler Dian Mullis Agenda Page 43 f I �_ 1 � ' I Ll1 i i' { ' 4 j I EXHIBIT B �b£rtvill£ Smolt Town LWA12.f9 CkU Ws. Mayor and Council Communication April 4, 2022 SUBJECT: PLANNING—ALBERTVILLE MARKETPLACE PLANNED UNIT DEVELOPMENT AGREEMENT RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: The Council is requested to give City staff direction as to whether they are open to amending the Albertville Marketplace Planned Unit Development(PUD) agreement relieving the subdivision of obligations to pay for the construction of a signalized intersection where Lymon Avenue NE intersects with County Road 137. BACKGROUND: In 2007, the Albertville City Council approved the Albertville Marketplace Plat and Planned Unit Development. The conditions of the PUD approval are outlined in the August 2007—City of Albertville Planned Unit Development/Conditional Use Agreement Albertville Marketplace which is recorded against the property titles. This agreement includes provision 1.0 which obligates the cost of a three-legged signalized intersection to the four commercial lots within the Albertville Marketplace Plat. In 2007, the intersection estimated cost was $231,000,the current costs are unknown. To date, the intersection has not been constructed. Only two of the four Albertville Marketplace lots have be developed. The real estate professionals marketing the remaining vacant lots,have indicated that the PUD obligation for the unknown cost of a future signalized intersection,have prevented the sale and development of these remaining vacant lots. The real estate professionals have inquired as to whether there may be some relief from this intersection obligation as a means of getting the remaining Albertville Marketplace lots developed. KEY ISSUES: • Albertville Marketplace is located at a key gateway location within the City. The subdivision and current site conditions exhibit lack of maintenance and disrepair. Provision 1.0 of the PUD agreement required the creation of a Retail Property Owners' Association consisting of the owners of lots 1-4 of said plat. Said Association shall maintain private property improvements. Any consideration of PUD amendment must be conditioned on the Albertville Marketplace fulfilling their other PUD obligations. • Through the PUD agreement, the City of Albertville is responsible for three of the four legs of the intersection. The City of Otsego is only responsible for one leg. A change in the PUD agreement will shift the obligation of costs for three-legs of the intersection from Marketplace to the City as a whole, when the intersection is built. • The current cost of intersection improvements is unknown but is likely to be higher than the 2007 estimate. • The cost of the intersection borne by the four Marketplace lots has prevented the development of the two remaining vacant lots. Without relief from the PUD obligations, the development of the remaining vacant lots is uncertain. Agenda Page 45 Mayor and Council Communication—April 4,2022 Planning—Albertville Marketplace PUD Agreement Page 2 of 2 • The four lots have three property owners. The vacant lots are owned by Anchor Properties Inc. • Past development inquires have included land uses that were not appealing to the City. As part of the PUD amendment, the City may impose additional land use restrictions on the subdivision in exchange for relief from the intersection obligations. • New developments of the vacant lots will require site and area improvements within the subdivision that will enhance the overall area. POLICY/PRACTICES CONSIDERATIONS: The 2007 Albertville Marketplace PUD agreement was negotiated in good faith and recorded with the subdivision. Over the past 15 years, full development of the plat has not occurred. The City needs to evaluate if conditions warrant a change in the current PUD agreement as an incentive to promote the development of the remaining vacant lots or if development will occur without a change in the agreement. If pursued, the following considerations must be addressed. 1. The establishment, financing, and operation of the Retail Property Owner Association. 2. The repair, improvement, and maintenance of private improvements shared within the subdivision. 3. Additional land use restrictions. 4. Fulfillment of the other PUD agreement obligations. FINANCIAL CONSIDERATIONS: The requested change in the PUD agreement removes the cost obligation for a three-legged signalized intersection from the four lots in Albertville Marketplace and makes it a City obligation. This is an impact to the City. LEGAL CONSIDERATIONS: The City Council has the legal authority to amend a Planned Unit Development agreement. The PUD amendment will need to be process through a public hearing with final action by the City Council. The City may impose conditions on the PUD in exchange for the amending the current PUD agreement. Responsible Person: Alan Brixius, City Planner Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: • 2007 Albertville Marketplace PUD Agreement Agenda Page 46 LA C� Doc. No. A 1065358 OFFICE OF THE COUNTY RECORDER WRIGHT COUNTY,MINNESOTA Certified Filed and/or Recorded on 09-07-2007 at 02:00 RETURN TO: Check#: 9327 Fee: $ 46.00 Larkin Hoffman Daly & Lindgren 1500 Wells Fargo Plaza Addl. Fee entCode 02 A 7900 Xerxes Ave 5 dd/. Minneapolis MN 55431 Larry A. Unger, County Recorder CITY OF ALBERTVILLE PLANNED UNIT DEVELOPMENT/ CONDITIONAL USE AGREEMENT AL13ERTVILLE MARKETPLACE THIS AGREEMENT, entered into this day of f 2007 by and between Albertville Marketplace, 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 "Albertville Marketplace" 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 4 lots within Said Plat; and WHEREAS, The City acknowledges that the Developer intends to convey Lots 1-4 of Albertville Marketplace to others (the "Lot Owners"); 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, approval of a Planned Unit Development is required to permit development of Said Plat in the manner proposed by the Developer; and 1 Agenda Page 47 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 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 paved private streets, boulevards, top soil and sod, grading control per lot, bituminous or concrete driveways, 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 parry's promises and considerations herein set forth, as follows: 1. Planned Unit Development and Conditional Use. Said Plat is hereby allowed to be developed as a Planned Unit Development with flexibility from the strict requirements of the City's Zoning Ordinance in relation to selected items detailed in this paragraph. A. Developer agrees that all buildings shall be constructed in the locations shown on the attached Exhibit C unless otherwise approved by motion of the City Council. The Developer and Lot Owners shall comply with all site plan approvals set by the City Council except where specifically set out in this agreement, B. At the time of the recording of this Agreement at the Wright County Recorder's Office, Developer shall record a permanent access and cross- parking easement between Lots 1- 4 on Said Plat. Such permanent access and cross-parking easement must meet the approval of the City Attorney as to form and content. C. Developer shall construct the number of parking stalls in the locations and dimensions as shown on the attached Exhibit C. D. Developer shall maintain the infiltration plantings shown on Exhibit D in good working order at all times. 2 Agenda Page 48 E. Use of lots on Said Plat. i. The uses on all lots of Said Plat shall be limited to uses that are permitted under the City's B-3 zoning ordinance as amended from time to time, except as otherwise restricted in this Agreement. No other type of use on said lot shall be allowed under this Agreement without a modification to this Agreement. ii. The uses on Lot 4, Block 1 of Said Plat shall be limited to a restaurant using at least 4,000 square feet of enclosed building space, and other uses in the remainder of the building as are allowed under the City's B-3 zoning ordinance, unless this provision is specifically altered by amendment of this Agreement between the City and the Developer or Lot Owner of Lot 4, Block 1 in the future. iii. If a motor fuel station (with or without a convenience store and car wash) is located on Said Plat, it may only be located on Lot 2, Block l of Said Plat, unless otherwise approved by motion of the City Council. F. For five (5) years from the date of this Agreement, no amendments to the City's comprehensive plan or official controls shall apply to or affect the use, development density, lot size, lot layout, or dedications of the approved plat unless required by State or Federal lave or agreed to in writing by the City and the Developer. Thereafter, to the full extent permitted by State law, the City may require compliance with any amendments to the City's comprehensive Plan or official controls, enacted after the date of this Agreement, provided that such changes shall not change the usage restrictions set out in paragraphs I.E.H. and 1.E.iii. of this Agreement. G. No occupancy permit shall be issued for a motor fuel station use on Lot 2, Block 1 until either 1) An occupancy permit is issued for the restaurant building on Lot 4, Block 1, or 2) An occupancy permit is issued for a retail or office building on Lot 1, Block 1 of Said Plat. H. Developer shall develop Said Plat consistent with the site plan attached as Exhibit C. No building and site construction which otherwise complies with the Site Plan attached as Exhibit C shall be required to receive separate site and building plan approvals from the Planning 9 Agenda Page 49 Commission and City Council. In addition, no separate building plan approval is needed from the City Council for any building plan where the building size has been reduced by not more than 10% of the square footage shown on Exhibit C and otherwise complies with the Site Plan shown on Exhibit C. However, this requirement shall not relieve the applicant from obtaining all necessary building plan approvals required by the City's building code. Any changes to the building configuration, increases in building size, decrease in building size greater than 10%, change in parking configuration, curb locations, drive lanes or traffic flow shall require the requisite building and/or site approval from the City Council, and may, depending upon the scope of the change, be required to be referred back to the City's planning commission for additional public hearing proceedings. 1. 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. J. Trees, shrubs, berms and screening are to be planted and installed as shown on the landscape plan attached as Exhibit D. Developer shall install landscaping shown on the perimeter of Said Plat by October 31, 2008, and Lot Owners shall install the remaining landscape on a lot-by-lot basis as buildings are constructed on each lot. 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. K. Developer shall replace, at its own expense, any plantings as shown on attached Exhibit D that might be damaged during the construction of any future buildings on Said Plat. Developer shall guarantee that all plantings it replaces pursuant to this paragraph shall survive for two full years from the date of planting. Lot Owners shall guarantee that all plantings they replace pursuant to this paragraph shall survive for two full years from the date of planting. L. Developer shall maintain the storm sewer system and ponds located on Said Plat. Developer shall not modify nor obstruct said storm sewer system or ponds without the express written consent of the City. The'City shall pay the Property Owners' Association 8.6% of the cost of maintaining said storm water pond (but excluding property taxes) in recognition that 8.6% of the water flowing into the storm water pond originates from the dedicated City street on Said Plat. 4 Agenda Page 50 M. 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) 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 or the Property Owner's Association shall be responsible for replacing pavement and any improvements above grade; and 2) nothing in this Agreement shall act to limit the City's ability to finance such improvements in accordance with applicable law. The City shall have full responsibility to restore pavement within the dedicated City street 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. N. Developer shall create a Retail Property Owners' Association ("Association") consisting of the owners of Lots 1-4 of Said Plat. Said Association shall maintain the storm water pond, all storm sewer on Said Plat not designated as Municipal Improvements under this Agreement, the grounds of Outlot C of Said Plat, all parking lot and private drive areas, all retaining walls and shall maintain the dedicated City street on Said Plat until such time as the City constructs a backage road extending east to MacKenzie Avenue, at which time the City shall then maintain said dedicated City Street. Maintenance of the City street by the Association shall be limited to snow plowing and street sweeping. The City shall perform all road repairs and may finance such activities in any manner permitted by law, and shall provide ordinance enforcement on such City street in a like manner as on other City streets. O. The City has agreed to permit a full access from Said Plat to County State Aid Highway No. 37 ("CSAH 37") with the conditions provided for in this paragraph. With respect to the access to CSAH 37, Developer agrees as follows: i. The Traffic Signal shall consist of a three-legged stoplight (red, yellow and green) system configured similar to that shown on the attached Exhibit E ("Traffic Signal") and constructed to Wright County Highway Department standards in existence at the time the Traffic Signal is constructed. The estimated cost of the Traffic Signal if it were constructed in 2007 is $231,000.00 ("Estimated Cost"). ii. The Traffic Signal may be constructed whenever the City or the 5 Agenda Page 51 Wright County Highway Department, in either's respective sole discretion, deems it necessary for the health, safety and welfare of the public. At such time, the City, the City of Otsego, or Wright County, or any combination of the three, may construct the Traffic Signal as a Minn. Stat. Chapter 429 improvement project and may special assess 100% of the costs of such Traffic Signal to the numbered lots and blocks in Said Plat. If such a special assessment is levied, the City shall assess the costs to the lots in Said Plat according to the following percentages: a. Lot 1, Block 1 37.15% of the cost. b. Lot 2, Block 1 27.52% of the cost. c. Lot 3, Block 1 11.26% of the cost. d. Lot 4, Block 1 24.07% of the cost. iii. In such case, Developer agrees to waive its right to appeal such special assessment to District Court pursuant to Minn. Stat. § 429.081 to the extent the total amount special assessed to all lots on Said Plat is not greater than the following amount ("Adjusted Assessment"), calculated as follows: by taking the Engineering News Record Construction Cost Index ("Index") level published for the month preceding the month in which this Agreement is dated (the `Base Month") and multiplying it by one plus the percentage increase in the Index that occurs between the Base Month and the month preceding the month in which the City, Wright County or the City of Otsego lets a contract for the installation of the Traffic Signal, and multiplying that product by the Estimated Cost. In the event that the City special assesses more to such lots than the Adjusted Assessment, the Developer and/or Lot Owners may appeal to the District Court the difference between the Adjusted Assessment and the actual special assessment. iv. The City acknowledges that a condition of the Developer obtaining an access permit from Wright County with regard to CSAH 37 is that the City, Wright County and the City of Otsego enter into a three-party agreement with regard to the construction of the Traffic Signal discussed herein (the "Three Patty Agreement"). The City further acknowledges that it is the lead agency for the preparation and negotiation of the Three Party Agreement. The City agrees to copy Developer on all correspondence related to the negotiation -of the Three Party Agenda Page 52 Agreement and to provide Developer with copies of drafts of the same. The City shall keep Developer informed as to the progress of the negotiation of the Three Party Agreement. The City will use good faith efforts to cause the Three Party Agreement to be executed by all of said parties on or before July 13, 2007. If such an agreement is not able to be arrived at to the satisfaction of Albertville, the City of Otsego and Wright County, then Albertville will work in good faith with the Developer and Wright County to obtain approval for the eventual installation of the Traffic Signal. v. Notwithstanding anything to the contrary in this Section l(0), the Developer and/or Lot Owner shall only be assessed for the actual costs of the construction of the Traffic Signal (including all City costs incurred for construction, reasonable engineering, financing, legal and a 3.5% administrative fee). Should the City, Wright County, or the City of Otsego decide to add an additional fourth leg to the Traffic Signal after initial construction of the Traffic Signal, all costs of construction related to the fourth leg of such Traffic Signal shall be paid for by third parties other than Developer. P. Fifty percent of each building's exterior finish (exclusive of doors and windows) shall be brick or stone. Q. All signage on the site shall comply with the City's Sign Ordinance, except for the following items, which are granted as part of the PUD approval: ii. Buildings may have attached signage on each store front equal to 15% of the exterior front storefront wall area, and an equal amount of signage on the opposite (back) side of the building. iii. In addition to one ground sign per lot allowed by the Sign Ordinance, Developer may place one area identification pylon sign on Lot 2 in the location shown on Exhibit C. Said sign shall be constructed in the size and configuration shown for the "Entrance Ground Sign" on the attached Exhibit K. 2. 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 Albertville 7 Agenda Page 53 Marketplace, as prepared by Westwood Professional Services, Inc. dated May 7, 2007 and on file with the City Clerk, said improvements to include installation of water main, sanitary sewer main, pond, street, 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 pond, all such improvements depicted graphically on the attached Exhibit F (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, 2008. B. 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. C. Developer shall provide the City with lien waivers from all contractors and subcontractors engaged to construct said Municipal Improvements on Said Plat. Should Developer fail to provide the City with all applicable lien waivers, the City reserves the right to draw upon Developer's surety and pay any contractors who performed work on any Municipal Improvements and whom Developer has failed to fully pay for the performance of said work. D. 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. E. In lieu of requiring the Developer to install a trail along the north side of Said Plat (but located in the CSAH 37 right of way), the City may construct said trail in the future. The estimated cost of such trail in 2007 dollars is S25,671.00. In the event the City constructs such trail in the future and chooses to special assess the costs of the trail against the property in Said Plat, Developer agrees to waive its right to appeal such special assessment to District Court pursuant to Minn. Stat. § 429.081 to the extent the total amount special assessed to all lots on Said Plat is not greater than the following amount ("Adjusted Trail Assessment"), calculated as follows; by taping the Engineering News Record 8 Agenda Page 54 Construction Cost Index ("Index") level published for the month preceding the month in which this Agreement is dated (the "Base Month") and multiplying it by one plus the percentage increase in the Index that occurs between the Base Month and the month preceding the month in which the City contracts for the construction of said trail. In the event that the City special assesses more to such lots than Adjusted Trail Assessment, the owner of the any lot at the time of the assessment may appeal to the District Court the difference between the Adjusted Trail Assessment and the actual special assessment. If such a special assessment is levied, the City shall assess the costs to the lots in Said Plat according to the following percentages: a. Lot 1, Block 1 37.15% of the cost. b. Lot 2, Block 1 27.52% of the cost. c. Lot 3, Block 1 11.26% of the cost. d. Lot 4, Block 1 24.07% of the cost. 3. Construction of Private Improvements. A. Developer shall construct all on- and off-site improvements ("Private Improvements") including installation of paved private streets, private street curb and gutter, sidewalks, storm sewer not located in the street right of way and not conveying water from the street, 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, drainage swales, berming, 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. Except as set out below, Private Improvements shall be installed on each lot with the construction of a building on each respective lot. The private street shown on the attached Exhibit G shall be installed by October 31, 2008. 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 the following items to be installed within Said Plat, all such items to be installed under ground, within the street right of way or within the private street easements or such other location as may be approved by the City- Engineer, 9 Agenda Page 55 accessible to all lots and in compliance with all applicable state and local regulations: i. Electrical power supply, to be provided by Xcel Energy or other such carrier; ii. Natural gas supply, to be provided by Reliant Energy or other such carrier; iii. Telephone service, to be provided by Sprint/United Telephone Company or other such carrier; In addition, the Developer shall, at its own expense, cause street lights 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, provided, however, that this sentence shall not be interpreted to require Developer to install the Traffic Signal referred to in paragraph 1.0. above. 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 H. Developer agrees to have all utilities installed according to this Exhibit H. D. Developer shall install silt fencing in back of all curbing within 30 days after said curbing is installed, or 7 days after the "small utilities" (gas, phone, electrical and cable television) have been installed, whichever occurs sooner. Developer shall abide by the City Engineer's requirements for silt fencing of the Iots and access to the lots during building construction. E. Notwithstanding the requirements of subparagraph 3A above, the Developer or Lot Owner shall install to the City`s satisfaction improvements for each lot or parcel 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`h following the issuance of the occupancy permit. 10 Agenda Page 56 4. 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 $723,250.00, representing the sum of 100% of the estimated cost of the Municipal Improvements ($298,450.00), 100% of the cost of selected Private Improvements, ($273,000.00, including private street, retaining walls, grading, and all utility work), and 150% of the estimated cost for landscaping/screening materials ($151,800). Said letter of credit or surety must meet the approval of the City attorney as to form and issuing bank. 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 described above, erosion control, and other such measures, and also including restoration of the temporary easement area on the cemetery property to the east of Said Plat), 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. 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. ll Agenda Page 57 E. In the event a surety referred to herein is in the form of an irrevocable letter of credit, which by its terms may 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 lass 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. 5. 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 reasonable 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 1? Agenda Page 58 warranty period. Developer may substitute a warranty bond acceptable to the City Attorney for the warranty letter of credit in the same amounts and duration as required for the warranty letter of credit. iii. 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. D. To the extent that any of the provisions of this Section 5 conflict with the provisions of Minn. Stat §462.358(2a) (the "Statute"), the provisions of the Statute shall control. 6. 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. 7. Developer to Pay City's Costs and Expenses. It is understood and agreed that the Developer will reimburse the City for all reasonable administrative, legal, planning, engineering and other professional 13 Agenda Page 59 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 Cite in designing, approving, installing, and inspecting said Improvements described above. Developer agrees to pay all such costs within 30 days of billing by the City. If Developer fails to pay said amounts, Developer agrees to allow the City to reimburse itself from said surety and/or assess the amount owed against any or all of properties in Said Plat without objection. S. Development Related Fees and Credits. A. Sanitary Sewer Trunk Line Fees. i. Developer agrees that the City's Sanitary Sewer Trunk Line Fee Ordinance currently requires the Developer to pay $1,825.00 per acre upon development of said Plat. There are 5.8 acres in said Plat which received final plat approval. Therefore, the Sanitary Sewer Trunk Line Fees for all property receiving final plat approval is $10,585.00. ii. Developer shall be entitled to a trunk line credit for the installation of the forcemain from the lift station to the City's existing gravity sewer main shown on the attached Exhibit 1. The credit amount shall be $14,990.00, calculated based on a forcemain installation cost of $25,575.00 (calculated as 1,023 linear feet of pipe at $25 per foot) less the $10,585.00 Sanitary Sewer Trunk Line fee described in paragraph 8.A. above. Said credit shall be offset against the Sanitary Sewer Trunk Line Fee set out in paragraph 8Ai. above. The City shall pay Developer said $14,990.00 within 30 days of submission of a bill for said forcemain installation following final completion of said forcemain. B. Water Trunk Line Fees. Developer agrees that the City's Water Trunk Line Fee Ordinance currently requires the Developer to pay $1,660.00 per acre upon development of said Plat. There are 5.8 acres in said Plat which received final plat approval. Therefore, the Water Trunk Line Fees for all property receiving final plat approval is $9,628.00. Developer shall pay such fees prior to the release of the final plat by the City. C. 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 14 Agenda Page 60 Improvements within the Plat. The administrative fee for this Plat is $10,445.75. Seventy-five percent of this fee shall be paid upon issuance of the final Plat with the remaining twenty-five percent of the fee to be paid upon substantial completion of the Municipal Improvements. 4. Erosion and Siltation Control. Before any grading is started on any site, all erosion control measures as shown on the approved Grading, Drainage and Erosion Control Plan shall be strictly complied with as set forth in the attached Exhibit J. Developer shall also install all erosion control measures deemed necessary by the City Engineer should the erosion control plan prove inadequate in any respect. 10. Ditch_Cleaning, 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. 11.. 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 fuuther agrees to pay all costs required to repair the streets, utility systems and other public property damaged or cluttered with debris when occurring as a direct or indirect result of the construction that takes place in Said Plat. Developer agrees to clean the streets on a daily basis if required by the City. Developer further agrees that any damage to public property occurring as a result of construction activity on Said Plat will be repaired immediately if deemed to be an emergency by the City. Developer further agrees that any damage to public property as a result of construction activity on Said Plat will be repaired within 14 days if not deemed to be an emergency by the City. If Developer fails to so clean the streets or repair or maintain said public property, the City may immediately undertake making or causing it to be cleaned up, repaired or maintained. When the City undertakes such activity, the 15 Agenda Page 61 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. 12. 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. 13. 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 16 Agenda Page 62 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. R Developer shall comply with all water, ponding and wetland related restrictions, if any, required by the Wright County Soil and Water Conservation District and/or the City and any applicable provisions of State or Federal law or regulations. I. Developer shall obtain all required driveway, utility and other permits as required by either the City Engineer, Wright County and/or the State of Minnesota. W. Violation of Agreement. 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. Notwithstanding the 30-day notice period provided for 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 17 Agenda Page 63 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. This paragraph of this Agreement shall not apply to any acts or rights of the City under paragraph 4E, 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. Breach of any of the terms of this Contract by the Developer shall be grounds for denial of building permits. 15. 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, provided, however, that the City shall not accept the storm water pond as a completed constructed unit for purposes of satisfying Developer's pond construction obligations under this Agreement until after the last lot in Said Plat has a completed building constructed upon it and the City's Engineer confirms that the pond does not contain an excessive amount of silt and other solid materials as a result of the development activity on Said Plat. B. Park Dedication. The Developer is required to pay a cash contribution of$47,560 in satisfaction of the City's park and trail dedication requirements. 18 Agenda Page 64 This charge is calculated as follows: 5.8 acres x $8,200 per acre $47,560.00. C. Lift Station Property Dedication and Construction. The Developer shall deed Outlot B to the City for use as a sanitary sewer lift station to be constructed by the City (the "Lift Station"). The City shall make good faith efforts to have the Lift Station constructed and operational by March 31, 2008. For purposes of this Section 15(C), "constructed and operational" shall mean that the Lift Station shall be ready for use by the public for its intended purpose consistent with other City lift stations and at such time as the City's engineer has certified in writing that the Lift Station has been completed in accordance with the plans and specifications therefore and in accordance with applicable laws and regulations, and so as not to delay the issuance of any requisite permits, consents, approvals or like items in connection with the development of Albertville Marketplace, including any certificates of occupancy for tenants or Lot Owners. The City shall keep the Developer informed as to the progress of the construction of the Lift Station. In the event construction fails behind schedule, the City shall notify Developer in writing as soon as practicable under the circumstances and Developer and the City shall meet to determine the appropriate method for getting the Lift Station construction on schedule. The City's timely performance under this paragraph is contingent upon Developer deeding said Outlot B to the City no later than July 16, 2007, and Developer allowing the City's Lift Station contractor continuous access to Outlot B and a designated staging area for the Lift Station construction in the immediate vicinity of Outlot B 16. 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. 17. Assi nment of Contract. 19 Agenda Page 65 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. 18. Limited Approval. Approval of this Agreement by the City Council in no way constitutes approval of anything other than that which is explicitly specified in this Agreement. 19. 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. 20. 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. 21. 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. 22. 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 20 Agenda Page 66 c/o City Clerk P.O. Box 9 Albertville, MN 55301 Telephone: (763) 497-3384 Albertville Marketplace, LLC 501 E. South Street Belle Plaine, MN 56011 23. A2reernent Effect. This Agreement shall be binding upon and extend to the representatives, heirs, successors and assigns of the parties hereto. CITY OF ALBERTVILLE Its Mayor 4 f By-- .G: �10erk ALBERTVILLE MARKETPLACE, LLC By Its Chief Manager 21 Agenda Page 67 STATE OF MINNESOTA } } ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of , 2007, by Ron Klecker as Mayor of the City of Albertville, a innesota municipal corporation, on behalf of the city and pursuant to the authority of the City Council. U-il J16Cn rlA4-- Notary Public STATE OF MINNESOTA } TINA LOUISE UMES y1 NOWY PU8UC-MINNESOTA )SS. r p. ,My Corm. Exp.Jan,31,2WO COUNTY OF WRIGHT } ' �wasssruti . The foregoing instrument was acknowledged before me this day of , 2007, by Bridget Miller, as Clerk of the City of Albertville, a innesota municipal corporation, on behalf of the city and pursuant to the authority of the City Council. Notary Pub STATE OF MINNESOTA } TOMI ANN LEONHARDT ) 5s. NOTARY PUBUO-MINNESOTA 1Y 00crim,Ei,Jan.31,2M COUNTY OF WRIGHTffi " The foregoing instrument was acknowledged before me this 2.-r'-% day Of 3W1 , 2007, by Philip A. Morris as Chief Manager of Albertville Marketplace ANNE CHELSEA LOHMER Ae NOTARYPUBLIC-MINNESOTA Notary Public MY Commission Expires Jan.31.2010 DRAFTED BY: .' Couri, MacArthur & Ruppe Law 22 Agenda Page 68 Office P.O. Box 369 705 Central Avenue East St. Michael, MN 55376 (763) 497-1930 23 Agenda Page 69 EXHIBIT A TO DEVELOPER'S AGREEMENT The legal description of the Plat to which this Developer's Agreement applies is as follows: Lots 1, 2, 3, and 4 Outlots A and B and C All such property in the plat of Albertville Marketplace, as said plat is on file in the Wright County Recorder's Office, Wright County, Minnesota. 24 Agenda Page 70 hg ww3 3 i 3$f = � •9m Q LY .. sr a $ +`N fr P 1 ry � r t � ti a m � L � QC `I 81071rir7 9'q,� � � a, ieYi a�,Gi'�[• - -------------- ___ ___-_ � 1 g �"� oa�, 63 �8a �•�X � �` � i J I�f i All J' ___________� EG.ZBI ? 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E`� ��fp7s� pzpz 6 ij i kR Y y� �£ E �` a" pYqq d 6 i - Y' C tl F R U oS 8@t ° ; 't �sbli g ' a �. E 3 °€' —9 � g{ u �� �., g, 1k'�1 �gg�s`� €;;�� i�g�g��6 �d�as� !k ���kr ��� ���� ��?f a �����`Prys� �¢� � � �d 5� ��ki €s��" �a� � � � b� �� ��� $ � ►� .e 1 11,1�,1 ei rT A 7r all is Ali Iljjill e� I p�"t .. • Q� I r 1 w r�• I ` ' ` t N I Igo IL �r 1 � �.. 1w. j I m (� It �� p`i•s jt X d LLI z z :. .ez . I . U� f Q ._ --- Z f�CD t j t ,�. ipp t,t m �� H 'i 43 t lit IMI I'll1111 v V E rr a a L a w � � LL a j 1 ik gilt Q 7 t MORTGAGEE CONSENT TO DEVELOPER'S AGREEMENT Vermillion State Bank, the holder of a mortgage on a portion of the Property, the development of which is governed by the foregoing City of Albertville Planned Unit Development/Conditional Use Agreement Albertville Marketplace (the"Agreement"), hereby consents to the execution and filing of the Agreement and subordinates its interest as mortgagee in the Property to the Agreement. Dated this day of July, 2007. VERMILLION STATE BANK By: Its: WC- P12E5J0E J-1 STATE OF MINNESOTA ss. COUNTY OF DA YCOTTA The foregoing instrument was acknowledged before me this day of Ju,4 , 2007, by �j czT the vi(& t)ze5i#:>e-1r of VERMILLION STATE BANK, a Minnesota corporation, on behalf of the corporation. L� • ,�.; JOAN M,OBRIEN Notary blic Notary Public Minnesota ��Y Commission Expires JanWrY 31,200 1145766.1 Agenda Page 81 1bcrtVl11£ Mayor and Council Request for Action 3 H ...Lm.9.ftOWUP- Y q April 4, 2022 SUBJECT: PUBLIC WORKS/ENGINEERING—2022 STREET IMPROVEMENTS RECOMMENDATION: This space on the agenda is reserved for the City Council to consider acceptance of the lowest bid received for the 2022 Street Improvements project. It is respectfully requested that the Mayor and Council consider the following motion: MOTION TO: Adopt Resolution No. 2022-12 Accepting Low Bid for 2022 Street Improvements. INFORMATION: The proposed improvement project was advertised and on March 30, 2022, bids for the improvements were opened. A total of seven (7)bids were received with proposals ranging from $944,715.86 to $1,173,459.50, as shown on the attached Bid Tab. The following elements, together with related work, are included in the project: Street Overlay—The planned street segments identified on the attached will be surface milled and paved with 2" of bituminous wear course. Parking Lot—The Villas Park parking lot will be reclaimed and paved. Storm Sewer Crossing—Several storm sewer/culver crossing will be repaired to correct heaving pavement. Miscellaneous—The project will also include spot curb repair,pavement milling,utility adjustments,boulevard/yard grading, and turf restoration. KEY ISSUES: • Low Bid for the project is $944,715.86 • Low Bid Received by Omann Contracting, Inc. • Project area is consistent with 5-year Capital Street Plan FINANCIAL CONSIDERATIONS: The proposed project will be funded through multiple funds including the 2022 streets budget, and capital reserves. The low bid amount is for $944,715.86. These figures do not include the overhead costs associated with surveying services or construction inspection and testing. Overhead and construction contingencies are estimated to be approximately 5% of the construction amount. LEGAL CONSIDERATIONS: The Mayor and Council possess the authority to authorize municipal improvements, and to accept or reject bids for municipal improvements. Submitted Through: Adam Nafstad, City Administrator-PWD Agenda Page 82 Mayor and Council Request for Action—April 4,2022 Public Works/Engineering—2022 Street Improvements Award Page 2 of 2 Attachments: • Resolution No. 2022-12 Accepting low bid for Street Improvements • Bid Abstract • Plan Title Sheet On file with the Clerk: Construction Plans and Specifications Agenda Page 83 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2022-12 RESOLUTION ACCEPTING LOW BID FOR THE 2022 STREET IMPROVEMENTS WHEREAS, plans and specifications for street pavement,parking lot pavement, storm sewer and other related municipal improvements to certain city streets have been prepared by Bolton &Menk, Inc. and such plans and specification have been presented to the Albertville City Council for approval; and WHEREAS,pursuant to an advertisement for bids for the proposed improvements, bids were received, opened and tabulated; and WHEREAS, it appears that Omann Contracting, Inc. of Albertville, Minnesota is the lowest responsible bidder. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Albertville, Minnesota, as follows: 1. The bid of Omann Contracting, Inc., said"Low Bidder", in the amount of$944,715.86 for the construction of said improvements in accordance with the plans and specifications and advertisement for bids is the lowest responsible bid. 2. Said bid of said Low Bidder is accepted. 3. The City Administrator and City Clerk are hereby authorized and directed to enter into a contract with said"Low Bidder"for the construction of said improvements for and on behalf of the City of Albertville. Adopted by the City Council of the City of Albertville this 4th Day of April 2022. Jillian Hendrickson,Mayor ATTEST: Kristine A. 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Mayor and Council Request for Action April 4, 2022 SUBJECT: LEGAL -ALBERTVILLE TAX INCREMENT FINANCE DISTRICT NO. 20 SCHERER LIMITED PARTNERSHIP TIF DEVELOPMENT AGREEMENT AND BUSINESS SUBSIDY RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Adopt Resolution No. 2022-13 authorizing Execution of a Development Agreement and approving a Business Subsidy related to TIF No. 20 and the Scherer Limited Partnership Development. BACKGROUND: Scherer Limited Partnership ("Scherer")is proposing to construct an approximately 60,000 square foot manufacturing facility on Outlot C,Northwest Industrial Park ("Property"),which is owned by the City and is located immediately north of the Outlet Mall provided Scherer is able to receive significant tax increment financing assistance from the City. Scherer Bros is seeking TIF assistance in the amount of$400,000 in addition to the waiver of a number of development related fees applicable to the Property and the purchase of the Property for$1. The City approved the TIF plan for this property at its March 21'meeting. That action established the TIF. The action requested today is the approval of a business subsidy for Scherer and approval of the TIF Agreement that provides TIF assistance to Scherer. The business subsidy consists of the $400,000 that the City will be providing to Scherer from tax increment collections derived from the property taxes that Scherer will pay from 2024 through 2032, the sale of land valued at$602,000 to Scherer for$1, and the waiver of$158,000 in development-related fees. On April 6, the City will be selling the Property to Scherer Bros for $1 and will waive a number of the development fees totaling $158,000. The Property and the waived fees together have a total value of$760,000. In addition, the City will be reimbursing Scherer for$400,000 of development costs that Scherer will incur in preparing the site for construction of its facility. The TIF plan has the City being reimbursed for$700,000 of the $760,000 in land cost and waived fees, after which time Scherer will be reimbursed its $400,000 in development costs. All of these reimbursements will come from TIF revenues from the Property. If TIF revenues are not sufficient to cover all of these costs,the City will receive its full $700,000 before Scherer receives any of its $400,000. If there are TIF revenues in excess of the amounts needed to satisfy the City's $700,000 and Scherer's $400,000, the City may be able to amend the TIF plan to reimburse the City for the additional $60,000 in fees that are being waived but are not currently scheduled to be reimbursed to the City. That amendment would have to be done before the TIF expires. Agenda Page 87 Mayor and Council Request for Action -April 4,2022 Legal-Albertville TIF No. 20 Scherer Limited and Business Subsidy Page 2 of 3 The Resolution approves the attached TIF Agreement between the City and Scherer which memorializes the reimbursements discussed above. Because the City is providing a business subsidy to Scherer, it must either set wage and jobs goals that Scherer must meet or it must decide that the creation and retention of jobs is not a goal of this business subsidy. In addition to approving the TIF Agreement, the Resolution also makes the determination that the creation and retention of jobs is not a goal of the business subsidy and sets the wage and jobs goals at zero. KEY ISSUES: • The City will use TIF proceeds to pay Developer up to a maximum of$400,000 and will memorialize this obligation by issuing a Note Payable to Scherer in an amount up to $400,000 that will be payable only from TIF proceeds. • Scherer will construct an approximately 60,000 square foot manufacturing facility and will operate it as a truss manufacturing facility. • If Scherer does not meet these obligations, the City can halt payments to Scherer, reduce payments to Scherer, or ultimately, terminate the Agreement. • This TIF will be a"pay-as-you-go" TIF in which the City would only provide Scherer with TIF revenues on a semi-annual basis after the City receives the TIF monies from the County, and even then, only after the City's $700,000 reimbursement has been fully satisfied. • Upon the earlier of the full payment of the Scherer Note or after nine years of increment are collected, the TIF District will be decertified and the City, County and School District will be able to collect the tax revenues from this development in the same way they do for all other non-TIF properties in the City. • If the TIF generates more revenues than are currently projected, it may be possible for the City to amend the TIF and recoup some or all of the $60,000 in additional fee waivers that are not currently part of the $700,000, the City will receive in reimbursements from the TIF. • The attached Resolution sets the wage and jobs goals at zero. POLICY/PRACTICES CONSIDERATIONS: Nearly all of the City's industrial buildings have been financed with some sort of TIF assistance similar to what is being proposed for this TIF. FINANCIAL CONSIDERATIONS: The City is slated to recover the entire value of the property ($602,000) and a majority of the development fees it will be waiving ($98,000) from the TIF. When the TIF expires,the City will continue to receive real estate taxes from the improved Property,but the Property is expected to be valued at$5.1 million rather than its $602,000 current valuation,which will generate significant tax revenue for the City in the future. LEGAL CONSIDERATIONS: This Agreement will be binding upon both parties once it is approved and signed. Approval of the TIF Agreement is necessary before the City can close on the sale of the Property to Scherer. Responsible Person: Mike Couri, City Attorney. Submitted Through: Adam Nafstad, City Administrator-PWD Agenda Page 88 Mayor and Council Request for Action -April 4, 2022 Legal -Albertville TIF No. 20 Scherer Limited and Business Subsidy Page 3 of 3 Attachments: • Resolution No. 2022-13 Authorizing Development Agreement and Approving a Business Subsidy • Contract for Private Development Agenda Page 89 EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF ALBERTVILLE,MINNESOTA HELD: April 4, 2022 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Albertville, Wright County, Minnesota, was duly called and held at the City Hall in said City on April 4, 2022, at 7:00 P.M. The following members were present: and the following were absent: Member introduced the following resolution and moved its adoption: CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO.2022-13 RESOLUTION AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT AND APPROVING A BUSINESS SUBSIDY A. WHEREAS, Scherer Limited Partnership (the "Developer") has requested the City of Albertville, Minnesota(the "City")to assist with the financing of certain costs incurred in connection with the construction of an approximately 60,000 square foot truss manufacturing facility located on the Development Property by the Developer in the City (the "Project"); and B. WHEREAS, the Developer and the City have determined to enter into a Development Agreement providing for the City's financial assistance for the Project (the "Development Agreement"). C. WHEREAS,the financial assistance provided under the Development Agreement is a business subsidy (the "Business Subsidy")pursuant to Minnesota Statutes, Sections 116J.993 to 116J.995 (the "Business Subsides Act"). D. WHEREAS, a public hearing, pursuant to the Business Subsidy Act, was held on March 21, 2022. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Albertville, Minnesota, as follows: Agenda Page 90 City of Albertville,MN Resolution No.2022-13 Meeting of April 4,2022 Page 2 1. Business Subsidy; Public Purpose. The City hereby determines that the public purpose of the Business Subsidy is to increase the tax base in the City, help meet market demand for lodging in the City and to help support commerce in the City. In accordance with the provisions of the Business Subsidies Act, the City hereby determines that the creation and retention of jobs is not a goal of the Business Subsidy and consequently hereby sets the wage and job goals at zero. 2. Development Agreement. The City Council hereby approves the Development Agreement in substantially the form submitted, and the Mayor and City Administrator are hereby authorized and directed to execute the Development Agreement on behalf of the City. The approval hereby given to the Development Agreement includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the City officials authorized by this resolution to execute the Development Agreement. The execution of the Development Agreement by the appropriate officer or officers of the City shall be conclusive evidence of the approval of the Development Agreement in accordance with the terms hereof. The motion for adoption of the foregoing resolution was duly seconded by member and, after full discussion thereof, and upon a vote being taken thereof, the following voted in favor thereof: and the following voted against same: Adopted by the City Council of the City of Albertville this 411 day of April 2022. Jillian Hendrickson, Mayor ATTEST: Adam Nafstad, City Administrator Agenda Page 91 City of Albertville,MN Resolution No.2022-13 Meeting of April 4,2022 Page 3 STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF ALBERTVILLE I, the undersigned, being the duly qualified and acting City Administrator of the City Council of the City of Albertville, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the City Council City held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to a resolution authorizing execution of a development agreement and approving a business subsidy. WITNESS my hand as such City Administrator of the City Council of the City of Albertville, Minnesota this 4th day of April, 2022. Adam Nafstad, City Administrator Agenda Page 92 DEVELOPMENT AGREEMENT BY AND BETWEEN CITY OF ALBERTVILLE, MINNESOTA AND SCHERER LIMITED PARTNERSHIP This document drafted by: TAFT STETTINIUS & HOLLISTER LLP 2200 IDS Center 80 South 8th Street Minneapolis,Minnesota 55402 72865020v4 Agenda Page 93 TABLE OF CONTENTS Page ARTICLE I DEFINITIONS.................................................................................................2 Section 1.1 Definitions............................................................................................2 ARTICLE II REPRESENTATIONS AND WARRANTIES................................................5 Section 2.1 Representations and Warranties of the City.........................................5 Section 2.2 Representations and Warranties of the Developer...............................5 ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY....................................... 7 Section 3.1 Development Property; City Charges; Site Improvements.................. 7 Section 3.2 Limitations on Undertaking of the City............................................... 7 Section 3.3 Reimbursement: TIF Note ...................................................................7 Section 3.4 Business Subsidies Act........................................................................ 8 Section 3.5 Execution of Assessment Agreement..................................................9 Section 3.6 Real Property Taxes........................................................................... 10 Section 3.7 Prohibition Against Transfer of Project and Assignment of Agreement.......................................................................................... 10 ARTICLE IV EVENTS OF DEFAULT............................................................................... 12 Section 4.1 Events of Default Defined ................................................................. 12 Section 4.2 Remedies on Default.......................................................................... 12 Section 4.3 No Remedy Exclusive........................................................................ 13 Section 4.4 No Implied Waiver ............................................................................ 13 Section 4.5 Agreement to Pay Attorney's Fees and Expenses.............................. 13 Section 4.6 Indemnification of City...................................................................... 13 ARTICLE V ADDITIONAL PROVISIONS...................................................................... 15 Section 5.1 Restrictions on Use............................................................................ 15 Section 5.2 Conflicts of Interest............................................................................ 15 Section 5.3 Titles of Articles and Sections........................................................... 15 Section 5.4 Notices and Demands ........................................................................ 15 Section 5.5 Counterparts................... .................. 16 Section 5.6 Law Governing .................................................................................. 16 Section5.7 Expiration........................................................................................... 16 Section 5.8 Provisions Surviving Rescission or Expiration.................................. 16 Section 5.9 Assignability of TIF Note.................................................................. 16 Section 5.10 Amendment........................................................................................ 16 EXHIBIT A DESCRIPTION OF DEVELOPMENT PROPERTY ..........................................A-1 EXHIBIT B FORM OF ASSESSMENT AGREEMENT.........................................................B-1 EXHIBIT C SITE IMPROVEMENTS......................................................................................C-1 EXHIBIT D FORM OF TIF NOTE...........................................................................................D-1 72865020v4 Agenda Page 94 DEVELOPMENT AGREEMENT THIS AGREEMENT, made as of the 1st day of April, 2022, by and between the City of Albertville, Minnesota (the "City"), a municipal corporation existing under the laws of the State of Minnesota and Scherer Limited Partnership, a Minnesota limited partnership (the "Developer"), WITNESSETH: WHEREAS, pursuant to Minnesota Statutes, Section 469.124 to 469.133, the City has heretofore established Municipal Development District No. 1 (the "Development District") and has adopted a development program therefor(the "Development Program"); and WHEREAS, pursuant to the provisions of Minnesota Statutes, Section 469.174 through 469.1794, as amended (hereinafter, the "Tax Increment Act"), the City has heretofore established, within the Development District, Tax Increment Financing District No. 20 (the "Tax Increment District") and has adopted a tax increment financing plan therefor (the "Tax Increment Plan") which provides for the use of tax increment financing in connection with certain development within the Development District; and WHEREAS, in order to achieve the objectives of the Development Program and particularly to make the land in the Development District available for development by private enterprise in conformance with the Development Program, the City has determined to finance certain costs of a Project (as hereinafter defined) to be constructed within the Tax Increment District as more particularly set forth in this Agreement; and WHEREAS, the City believes that the development and construction of the Project, and fulfillment of this Agreement are vital and are in the best interests of the City, the health, safety, morals and welfare of residents of the City, and in accordance with the public purpose and provisions of the applicable state and local laws and requirements under which the Project has been undertaken and is being assisted; and WHEREAS, the requirements of the Business Subsidy Law, Minnesota Statutes, Section 116J.993 through I I6J.995, apply to this Agreement; WHEREAS, the City has adopted criteria for awarding business subsidies that comply with the Business Subsidy Law, after a public hearing for which notice was published; and WHEREAS, the Council has approved this Agreement as a subsidy agreement under the Business Subsidy Law. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: Agenda Page 95 72865020v4 ARTICLE I DEFINITIONS Section 1.1 Definitions. All capitalized terms used and not otherwise defined herein shall have the following meanings unless a different meaning clearly appears from the context: Agreement means this Agreement, as the same may be from time to time modified, amended or supplemented; Assessment Agreement means the agreement, in substantially the form of the agreement contained in Exhibit B attached hereto and hereby made a part of this Agreement, among the Developer, the City and the Assessor for the County, entered into pursuant to Article III of this Agreement; Assessor's Minimum Market Value means the agreed minimum market value of the Development Property and Project and for calculation of real property taxes as determined by the Assessor for the County pursuant to the Assessment Agreement; Business Day means any day except a Saturday, Sunday or a legal holiday or a day on which banking institutions in the City are authorized by law or executive order to close; Cily means the City of Albertville, Minnesota; City Charges means a portion the building permit fee and the water and sewer access fees in the amount of$98,000. City Expenses means, collectively, the aggregate costs to the City, totaling $700,000, for the land write down of the Development Property in the amount of$602,000 and the waived City Charges in the amount of$98,000; Counly means Wright County, Minnesota; Developer means Scherer Limited Partnership, a Minnesota limited partnership, its successors and assigns; Development District means Municipal Development District No. 1, including the real property described in the Development Program; Development Program means the development program approved in connection with the Development District; Development Property means the real property described in Exhibit A attached to this Agreement; Event of Default means any of the events described in Section 4.1 hereof, 2 72865020v4 Agenda Page 96 Note Payment Date means the August 1 immediately following the date on which the City has been fully reimbursed for the City Expenses and each February 1 and August 1 of each year thereafter to and including February 1, 2033; provided, that if any such Note Payment Date should not be a Business Day, the Note Payment Date shall be the next succeeding Business Day; Prime Rate means the rate of interest from time to time publicly announced by U.S. Bank Trust Company, National Association in St. Paul, Minnesota, as its "reference rate" or any successor rate,which rate shall change as and when that prime rate or successor rate changes; Project means the construction of an approximately 60,000 square foot truss manufacturing facility located on the Development Property to be leased by the Tenant; Purchase Agreement means that certain agreement between the City and the Developer for the purchase of the Development Property from the City; Site Improvements means the site improvements undertaken or to be undertaken on the Development Property, more particularly described on Exhibit C attached hereto; State means the State of Minnesota; Tax Increment Act means Minnesota Statutes, Sections 469.174 through 469.1794, as amended; Tax Increment District means Tax Increment Financing District No. 20 located within the Development District, a description of which is set forth in the Tax Increment Financing Plan, which was qualified as an economic development district under the Tax Increment Act; Tax Increment Financing Plan means the tax increment financing plan approved for the Tax Increment District by the City Council on March 21, 2022, and any future amendments thereto; Tax Increments means 97% of the tax increments derived from the Development Property which have been received and retained by the City in accordance with the provisions of Minnesota Statutes, Section 469.177; Tenant means Scherer Bros. Lumber Co. a Minnesota corporation, its successors and assigns; Termination Date means the earlier of(i) February 1, 2033, (ii) the date the TIF Note is paid in full, (iii) the date on which the Tax Increment District expires or is otherwise terminated, or(iv)the date this Agreement is terminated or rescinded in accordance with its terms; TIF Note means the Tax Increment Revenue Note (Scherer Limited Partnership Project) to be executed by the City and delivered to the Developer pursuant to Article III hereof, a copy of which is attached hereto as Exhibit D; 3 7286502Ov4 Agenda Page 97 Unavoidable Delays means delays, outside the control of the party claiming its occurrence, which are the direct result of strikes, other labor troubles, supply chain delays and material shortages, declarations of any state, federal or local government, pandemics, epidemics, unusually severe or prolonged bad weather, acts of God, fire or other casualty to the Project, litigation commenced by third parties which, by injunction or other similar judicial action or by the exercise of reasonable discretion, directly results in delays, or acts of any federal, state or local governmental unit(other than the City) which directly result in delays; and 4 7286502Ov4 Agenda Page 98 ARTICLE II REPRESENTATIONS AND WARRANTIES Section 2.1 Representations and Warranties of the CitX. The City makes the following representations and warranties: (1) The City is a municipal corporation and has the power to enter into this Agreement and carry out its obligations hereunder. (2) The Tax Increment District is an "economic development district" within the meaning of Minnesota Statutes, Section 469.174, Subdivision 12, and was created, adopted and approved in accordance with the terms of the Tax Increment Act. (3) The development contemplated by this Agreement is in conformance with the development objectives set forth in the Development Program. (4) To finance certain costs within the Tax Increment District, the City proposes, subject to the further provisions of this Agreement and an interfund loan resolution adopted by the City Council on March 21, 2022, to apply Tax Increments to (i) reimburse itself for the City Expenses, and (ii) only after the City Expenses have been reimbursed in full, to reimburse the Developer for a portion of the costs of the construction of the Site Improvements as further provided in this Agreement. (5) The City makes no representation or warranty, either expressed or implied, as to the Development Property or its condition or the soil conditions thereon, or that the Development Property shall be suitable for the Developer's purposes or needs. Section 2.2 Representations and Warranties of the Developer. The Developer makes the following representations and warranties: (1) The Developer is a Minnesota limited partnership and has the power and authority to enter into this Agreement and to perform its obligations hereunder and doing so will not violate its articles, bylaws, or the laws of the State and by proper action has authorized the execution and delivery of this Agreement. (2) The Developer shall cause the Project to be constructed in accordance with the terms of this Agreement, the Development Program, and all applicable local, state and federal laws and regulations (including, but not limited to, environmental, zoning, energy conservation, building code and public health laws and regulations). (3) The construction of the Project would not be undertaken by the Developer, and in the opinion of the Developer would not have been or be economically feasible within the reasonably foreseeable future,without the assistance and benefit to the Developer provided for in this Agreement. (4) The Developer will obtain, or cause to be obtained, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of 5 72865020v4 Agenda Page 99 all applicable local, state, and federal laws and regulations which must be obtained or met before the Project may be lawfully constructed. (5) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provision of any contractual restriction, evidence of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (6) The Developer and the Tenant shall cooperate fully with the City with respect to any litigation commenced with respect to the Project. (7) The Developer and the Tenant shall cooperate fully with the City in resolution of any traffic,parking, trash removal or public safety problems which may arise in connection with the construction and operation of the Project. (8) The construction of the Project shall commence as soon as reasonably possible after the Developer acquires the Development Property and barring Unavoidable Delays, shall be substantially completed by December 31, 2022. (9) The Developer acknowledges that the Tax Increments projections contained in the Tax Increment Financing Plan are estimates only and the Developer acknowledges that it shall place no reliance on the amount of projected Tax Increments and the sufficiency of Tax Increments to reimburse the Developer for a portion of the costs of the construction of the Site Improvements as provided in Article III. 6 7286502Ov4 Agenda Page 100 ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY Section 3.1 Development Property; City Charges; Site Improvements. The City agrees to sell the Developer the Development Property for the purchase price set forth in the Purchase Agreement in accordance with the provisions of the Purchase Agreement. The City agrees to waive the city charges as set forth in the Purchase Agreement. The parties agree that the construction and installation of the Site Improvements are essential to the successful completion of the Project. The City shall reimburse the Developer for the lesser of(a) $400,000, or (b) the actual and eligible costs of the Site Improvements actually incurred and paid by the Developer(the "Reimbursement Amount") as further provided in Section 3.3. Section 3.2 Limitations on Undertaking of the City. Notwithstanding the provisions of Sections 3.1, the City shall have no obligation to the Developer under this Agreement to reimburse the Developer for the costs identified in Section 3.1, if the City, at the time or times such payment is to be made, is entitled under Section 4.2 to exercise any of the remedies set forth therein as a result of an Event of Default which has not been cured, but such unpaid amounts shall become payable, without interest accruing thereon in the meantime, if said Event of Default shall thereafter have been cured; provided that the City has not canceled and rescinded the Agreement pursuant to Section 4.2(2). Section 3.3 Reimbursement: TIF Note. The City shall reimburse the Developer as described in Section 3.1 for the Reimbursement Amount through the issuance of the City's TIF Note in substantially the form attached to this Agreement as Exhibit D, subject to the following conditions: (1) The TIF Note shall be dated, issued and delivered when (i) the Developer shall have demonstrated in writing to the reasonable satisfaction of the City that the construction of the Project has been completed and a certificate of occupancy has been issued by the City for the Project, and (ii) that the Developer has incurred and paid all costs of the construction of the Site Improvements, as described in and limited by Section 3.1 and shall have submitted paid invoices for the costs of the Site Improvements in an amount not less than the Reimbursement Amount. (2) The principal amount of the TIF Note shall be payable solely from 97% of the Tax Increments. (3) On the first Note Payment Date after the City has been reimbursed the City Expenses and on each Note Payment Date thereafter and subject to the provisions of the TIF Note, the City shall pay, against the principal outstanding on the TIF Note, the Tax Increments received by the City during the preceding 6 months. All such payments shall be applied to reduce the principal of the TIF Note. (4) The TIF Note shall be a special and limited obligation of the City and not a general obligation of the City, and only the Tax Increments shall be used to pay the principal of the TIF Note. 7 7286502Ov4 Agenda Page 101 (5) The City's obligation to make payments on the TIF Note on any Note Payment Date or any date thereafter shall be conditioned upon the requirements that: (i) there shall not at that time be an Event of Default that has occurred and is continuing under this Agreement, and (ii)this Agreement shall not have been terminated or rescinded. (6) The TIF Note shall be governed by and payable pursuant to the additional terms thereof, as set forth in Exhibit D. In the event of any conflict between the terms of the TIF Note and the terms of this Section 3.3, the terms of the TIF Note shall govern. The issuance of the TIF Note pursuant and subject to the terms of this Agreement, and the taking by the City of such additional actions as bond counsel for the TIF Note may require in connection therewith, are hereby authorized and approved by the City. Section 3.4 Business Subsidies Act. (1) In order to satisfy the provisions of Minnesota Statutes, Sections 116J.993 to 116J.995 (the "Business Subsidies Act"), the Developer acknowledges and agrees that the amount of the "Business Subsidy" granted to the Developer under this Agreement is (i) the appraised value of the Development Property which is $602,000, (ii) the City Charges waived in the amount of $98,000, and (iii) reimbursement of the costs of the Site Improvements in the amount of $400,000, and that the Business Subsidy is needed because the Project is not sufficiently feasible for the Developer to undertake without the Business Subsidy. The Tax Increment District is an economic development district and the public purpose of the Business Subsidy is to encourage the construction of a manufacturing facility in the City (the "Goals"). After holding a public hearing March 21, 2022, the City has determined that creation and retention of jobs is not a goal of the subsidy for the Project and consequently has set the wage and job goals hereunder at zero. (2) If the Goals are not met, the Developer agrees to repay all of the Business Subsidy to the City, plus interest ("Interest") set at the implicit price deflator defined in Minnesota Statutes, Section 275.70, Subdivision 2, accruing from and after the date the Goals are not met, compounded semiannually. (3) The Developer agrees to (i) report its progress on achieving the Goals to the City until the date the Goals are met or, if the Goals are not met, until the date the Business Subsidy is repaid, (ii) include in the report the information required in Minnesota Statutes, Section 116J.994, Subdivision 7 on forms developed by the Minnesota Department of Employment and Economic Development, and (iii) send completed reports to the City. The Developer agrees to file these reports no later than March 1 of each year commencing March 1, 2023, and within 30 days after the deadline for meeting the Goals. The City agrees that if it does not receive the reports, it will mail the Developer a warning within one week of the required filing date. If within 14 days of the post marked date of the warning the reports are not made, the Developer agrees to pay to the City a penalty of$100 for each subsequent day until the report is filed up to a maximum of$1,000. (4) The Developer agrees to continue operations within the City for at least five (5) years after the "Benefit Date", which is the date the Developer completes construction of the Proj ect. 8 7286502Ov4 Agenda Page 102 (5) There are no other state or local government agencies providing financial assistance for the Project other than the City. (6) The general partner of the Developer is S.B. General Partner, Inc., which is wholly owned by the Tenant. (7) The Developer certifies that it does not appear on the Minnesota Department of Employment and Economic Development's list of recipients that have failed to meet the terms of a business subsidy agreement. Section 3.5 Execution of Assessment Agreement. (1) Simultaneously with the execution of this Agreement, the Developer and the City shall execute an Assessment Agreement pursuant to the provisions of Minnesota Statutes, Section 469.177, Subdivision 8, specifying the Assessor's Minimum Market Value for the Development Property and the Project for calculation of real property taxes. Specifically, the Developer shall agree to a market value for the Development Property and the Project which will result in a market value as of January 2, 2023 of not less than $5,100,000 until December 31, 2032 (such minimum market value at the time applicable is herein referred to as the "Assessor's Minimum Market Value"). Nothing in the Assessment Agreement shall limit the discretion of the Assessor to assign a market value to the property in excess of such Assessor's Minimum Market Value. The Assessment Agreement shall remain in effect until the earlier of (i) December 31, 2032; or (ii) the date of termination of this Agreement. The Assessment Agreement shall be certified by the Assessor for the County as provided in Minnesota Statutes, Section 469.177, Subdivision 8, upon a finding by the Assessor that the Assessor's Minimum Market Value represents a reasonable estimate based upon the plans and specifications for the Project to be constructed on the Development Property and the market value previously assigned to the Development Property. Pursuant to Minnesota Statutes, Section 469.177, Subdivision 8, the Assessment Agreement shall be filed for record in the office of the county recorder or registrar of titles of the County, and such filing shall constitute notice to any subsequent encumbrancer or purchaser of the Development Property (or part thereof), whether voluntary or involuntary, and such Assessment Agreement shall be binding and enforceable in its entirety against any such subsequent purchaser or encumbrancer, including the holder of any mortgage recorded against the Development Property. The City agrees to release the Assessment Agreement of record after the termination thereof at the request of the Developer. (2) The Developer may seek through petition or other means to have the market value for the Development Property and the Project reduced if the market value exceeds the Assessor's Minimum Market Value. Until the TIF Note is fully paid, such activity must be preceded by written notice from the Developer to the City indicating its intention to do so. Upon receiving such notice, or otherwise learning of the Developer's intentions, the City may suspend payments due under the TIF Note until the actual amount of the reduction is determined, whereupon the City will make the suspended payments less any amount that the City is required to repay the County as a result of any reduction in market value of the Development Property. During the period that the payments are subject to suspension, the City may make partial payments on the TIF Note if it determines, in its sole and absolute discretion that the amount retained will be sufficient to cover any repayment which the County may require. The City's suspension of 9 7286502Ov4 Agenda Page 103 payments on the TIF Note pursuant to this Section shall not be considered a default under this Agreement. Section 3.6 Real Property Taxes. Prior to the Termination Date, the Developer shall pay all real property taxes payable with respect to all and any parts of the Development Property acquired and owned by it until the Developer's obligations have been assumed by any other person pursuant to the provisions of this Agreement. The Developer agrees that, so long as it owns all or any portion of the Development Property, prior to the Termination Date: (1) It will not seek administrative review or judicial review of the applicability of any tax statute relating to the ad valorem property taxation of real property contained on the Development Property determined by any tax official to be applicable to the Project or the Developer or raise the inapplicability of any such tax statute as a defense in any proceedings with respect to the Development Property, including delinquent tax proceedings; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; (2) It will not seek administrative review or judicial review of the constitutionality of any tax statute relating to the taxation of real property contained on the Development Property determined by any tax official to be applicable to the Project or the Developer or raise the unconstitutionality of any such tax statute as a defense in any proceedings, including delinquent tax proceedings with respect to the Development Property; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; and (3) It will not seek any tax deferral or abatement, either presently or prospectively authorized under Minnesota Statutes, Section 469.1813, or any other State or federal law, of the ad valorem property taxation of the Development Property between the date of execution of this Agreement and the Termination Date. Section 3.7 Prohibition Against Transfer of Project and Assignment of Agreement. The Developer represents and agrees that prior to the termination date of this Agreement the Developer shall not transfer the Project or any part thereof or any interest therein, without the prior written approval of the City. The City shall be entitled to require as conditions to any such approval that: (1) Any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the City, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer. (2) Any proposed transferee, by instrument in writing satisfactory to the City shall, for itself and its successors and assigns, and expressly for the benefit of the City, have expressly assumed all of the obligations of the Developer under this Agreement and agreed to be subject to all the conditions and restrictions to which the Developer is subject. (3) There shall be submitted to the City for review and prior written approval all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Project. 10 7286502Ov4 Agenda Page 104 ll 7286502Ov4 Agenda Page 105 ARTICLE IV EVENTS OF DEFAULT Section 4.1 Events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean whenever it is used in this Agreement any one or more of the following events: (1) Failure by the Developer to timely pay any ad valorem real property taxes and special assessments levied against the Development Property and all public utility or other City payments due and owing with respect to the Development Property when due and payable. (2) Failure by the Developer to cause the construction of the Project to be completed pursuant to the terms, conditions and limitations of this Agreement. (3) Failure of the Developer to observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement. (4) The holder of any mortgage on the Development Property or any improvements thereon, or any portion thereof, commences foreclosure proceedings as a result of any default under the applicable mortgage documents. (5) If the Developer shall: (A) file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act of 1978, as amended or under any similar federal or state law; or (B) make an assignment for the benefit of its creditors; or (C) admit in writing its inability to pay its debts generally as they become due; or (D) be adjudicated as bankrupt or insolvent; or if a petition or answer proposing the adjudication of the Developer as bankrupt or its reorganization under any present or future federal bankruptcy act or any similar federal or state law shall be filed in any court and such petition or answer shall not be discharged or denied within sixty (60) days after the filing thereof, or a receiver, trustee or liquidator of the Developer, or of the Project, or part thereof, shall be appointed in any proceeding brought against the Developer, and shall not be discharged within sixty (60) days after such appointment, or if the Developer, shall consent to or acquiesce in such appointment. Section 4.2 Remedies on Default. Whenever any Event of Default referred to in Section 4.1 occurs and is continuing, the City, as specified below, may take any one or more of the following actions after the giving of thirty (30) days' written notice to the Developer, but only if the Event of Default has not been cured within said thirty (30) days: 12 72865020v4 Agenda Page 106 (1) The City may suspend its performance under this Agreement and the TIF Note until it receives assurances from the Developer, deemed adequate by the City, that the Developer will cure its default and continue its performance under this Agreement. (2) The City may cancel and rescind the Agreement and the TIF Note. (3) The City may take any action, including legal or administrative action, in law or equity, which may appear necessary or desirable to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement. Section 4.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the City is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. Section 4.4 No Implied Waiver. In the event any agreement contained in this Agreement should be breached by any party and thereafter waived by any other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 4.5 Agreement to Pay Attorney's Fees and Expenses. Whenever any Event of Default occurs and the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement or performance or observance of any obligation or agreement on the part of the Developer herein contained, the Developer agrees that it shall, on demand therefor, pay to the City the reasonable fees of such attorneys and such other expenses so incurred by the City. Section 4.6 Indemnification of City. (1) The Developer releases from and covenants and agrees that the City, its governing body members, officers, agents, including the independent contractors, consultants and legal counsel, servants and employees thereof (hereinafter, for purposes of this Section, collectively the "Indemnified Parties") shall not be liable for and agrees to indemnify and hold harmless the Indemnified Parties against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Project, provided that the foregoing indemnification shall not be effective for any actions of the Indemnified Parties that are not contemplated by this Agreement or result from the gross negligence or willfull or wanton misconduct of the Indemnified Parties. (2) Except for any willful misrepresentation or any gross negligence or willful or wanton misconduct of the Indemnified Parties, the Developer agrees to protect and defend the Indemnified Parties, now and forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from the actions or inactions of the Developer (or other persons acting on its behalf or under its direction or control) under this Agreement, or the transactions 13 7286502Ov4 Agenda Page 107 contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Project; provided, that this indemnification shall not apply to the warranties made or obligations undertaken by the City in this Agreement or to any actions undertaken by the City which are not contemplated by this Agreement but shall, in any event and without regard to any fault on the part of the City, apply to any pecuniary loss or penalty (including interest thereon from the date the loss is incurred or penalty is paid by the City at a rate equal to the Prime Rate) as a result of the Developer operating the Project so that the Tax Increment District does not qualify or ceases to qualify as an "economic development district" under Section 469.174, Subdivision 12, of the Act and Section 469.176, Subdivision 4c. or to violate limitations as to the use of Tax Increments as set forth in Section 469.176, Subdivision 4c. (3) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City and not of any governing body member, officer, agent, servant or employee of the City. 14 7286502Ov4 Agenda Page 108 ARTICLE V ADDITIONAL PROVISIONS Section 5.1 Restrictions on Use. Until termination of this Agreement, the Developer agrees for itself, its successors and assigns and every successor in interest to the Development Property, or any part thereof, that the Developer and such successors and assigns shall operate, or cause to be operated, the Project as a manufacturing facility and shall devote the Development Property to, and in accordance with,the uses specified in this Agreement. Section 5.2 Conflicts of Interest. No member of the governing body or other official of the City shall have any financial interest, direct or indirect, in this Agreement, the Development Property or the Project, or any contract, agreement or other transaction contemplated to occur or be undertaken thereunder or with respect thereto, nor shall any such member of the governing body or other official participate in any decision relating to the Agreement which affects his or her personal interests or the interests of any corporation, partnership or association in which he or she is directly or indirectly interested. No member, official or employee of the City shall be personally liable to the City in the event of any default or breach by the Developer or successor or on any obligations under the terms of this Agreement. Section 5.3 Titles of Articles and Sections. Any titles of the several parts, articles and sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 5.4 Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by any party to any other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, and (1) in the case of the Developer is addressed to or delivered personally to: Scherer Limited Partnership Attention: Peter Scherer 9401 73rd Ave N#400 Brooklyn Park,MN 55428 (2) in the case of the City is addressed to or delivered personally to the City at: City of Albertville, Minnesota Attention: City Administrator Albertville City Hall 5959 Main Avenue Albertville, MN 55301 15 72865020v4 Agenda Page 109 with a copy to: Taft Stettinius & Hollister LLP Attention: Mary Ippel 2200 IDS Center 80 South 8th Street Minneapolis, MN 55402 or at such other address with respect to any such party as that party may, from time to time, designate in writing and forward to the other, as provided in this Section. Section 5.5 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 5.6 Law Governing. This Agreement will be governed and construed in accordance with the laws of the State. Section 5.7 Expiration. This Agreement shall terminate on the Termination Date, unless earlier terminated or rescinded in accordance with its terms and upon such termination, the City will execute and deliver to the Developer a recordable termination of this Agreement at the request of the Developer. Section 5.8 Provisions Surviving Rescission or Expiration. Sections 4.5 and 4.6 shall survive any rescission, termination or expiration of this Agreement with respect to or arising out of any event, occurrence or circumstance existing prior to the date thereof. Section 5.9 Assignability of TIF Note. The TIF Note may only be assigned pursuant to the terms of the TIF Note and shall not be unreasonably withheld. Section 5.10 Amendment. This Agreement maybe amended only by written agreement approved by the City and the Developer. 16 7286502Ov4 Agenda Page 110 IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and on its behalf and its seal to be hereunto duly affixed, and the Developer has caused this Agreement to be duly executed on its behalf, on or as of the date first above written. CITY OF ALBERTVILLE, MINNESOTA By Its Mayor By Its City Administrator This is a signature page to the Development Agreement by and between the City of Albertville and Scherer Limited Partnership. S-I 7286502Ov4 Agenda Page 111 SCHERER LIMITED PARTNERSHIP By Its This is a signature page to the Development Agreement by and between the City of Albertville and Scherer Limited Partnership. S-2 7286502Ov4 Agenda Page 112 EXHIBIT A DESCRIPTION OF DEVELOPMENT PROPERTY Property located in the City of Albertville, Wright County, Minnesota with the following description: A-1 7286502Ov4 Agenda Page 113 EXHIBIT B FORM OF ASSESSMENT AGREEMENT THIS AGREEMENT, dated as of this 1st day of April, 2022, is by and among the City of Albertville, Minnesota (the "City"), and Scherer Limited Partnership, a Minnesota limited partnership (the "Developer"), and the Wright County Assessor (the "Assessor"). WITNESSETH WHEREAS, the City and the Developer have entered into a Development Agreement dated as of April 1, 2022 (the "Development Agreement") regarding certain real property located in the City (the "Development Property") which property is legally described on Exhibit A attached hereto and made a part hereof. WHEREAS, it is contemplated that pursuant to said Agreement, the Developer will construct a Project on the Development Property as described in the Development Agreement. WHEREAS, the City and Developer desire to establish a minimum market value for the Development Property and the improvements constructed or to be constructed thereon, pursuant to Minnesota Statutes, Section 469.177, Subdivision 8. WHEREAS,the Developer has acquired the Development Property. WHEREAS, the Assessor has reviewed the plans and specifications for the improvements and the market value previously assigned to the land upon which the improvements are to be constructed, and that the "minimum market value" as set forth below is reasonable. NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: 1. As of January 2, 2023 through and thereafter until December 1, 2032 the minimum market value which shall be assessed for the Project shall be not less than $5,100,000. 2. The minimum market value herein established shall be of no further force and effect and this Agreement shall terminate on the earlier of: (i) December 31, 2032; or(ii)the date of termination of the Development Agreement. 3. This Agreement shall be recorded by the City with the County Recorder of Wright County, Minnesota. The Developer shall pay all costs of recording. 4. Neither the preamble nor provisions of this Agreement are intended to, or shall they be construed as,modifying the terms of the Agreement between the City and the Developer. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. B-1 7286502Ov4 Agenda Page 114 IN WITNESS WHEREOF, the City, the Developer and the Assessor have caused this Agreement to be executed in their names and on their behalf all as of the date set forth above. CITY OF ALBERTVILLE,MINNESOTA (SEAL) By Its Mayor By Its City Administrator STATE OF MINNESOTA ) ss COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of , 2022, by , the Mayor, and , the City Administrator of the City of Albertville on behalf of said City. Notary Public Signature page for Assessment Agreement by and between the City of Albertville, Minnesota, Scherer Limited Partnership, and the Wright County Assessor. B-2 7286502Ov4 Agenda Page 115 SCHERER LIMITED PARTNERSHIP By Its STATE OF MINNESOTA ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2022, by , the of Scherer Limited Partnership, a Minnesota limited partnership, on behalf of said limited partnership. Notary Public Signature page for Assessment Agreement by and between the City of Albertville, Minnesota, Scherer Limited Partnership, and the Wright County Assessor. B-3 7286502Ov4 Agenda Page 116 CERTIFICATION BY COUNTY ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the land upon which the improvements are to be constructed, and being of the opinion that the minimum market value contained in the foregoing Agreement appears reasonable, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the above described property, hereby certifies that the market values assigned to such land and improvements are reasonable. County Assessor for Wright County STATE OF MINNESOTA ) ) ss. COUNTY OF WRIGHT ) This instrument was acknowledged before me on 2022, by the County Assessor of Wright County. Notary Public Signature page for Assessment Agreement by and between the City of Albertville, Minnesota, Scherer Limited Partnership, and the Wright County Assessor. B-4 7286502Ov4 Agenda Page 117 CONSENT TO ASSESSMENT AGREEMENT of , (the 'Bank"), does hereby consent to all terms, conditions and provisions of the foregoing Assessment Agreement and agrees that, in the event it purchases the Development Property at a foreclosure sale or acquires the Development Property through a deed in lieu of foreclosure or otherwise in satisfaction of the indebtedness owed by the Developer, it and its respective successors and assigns, shall be bound by all terms and conditions of the Assessment Agreement, including but not limited to the provision which requires that the minimum market value of the Development Property and the Project shall be not less than the amounts set forth in the Assessment Agreement. IN WITNESS WHEREOF, we have caused this Consent to Assessment Agreement to be executed in its name and on its behalf as of this day of 52022. By Its STATE OF ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2022, by , the of a banking corporation on behalf of the corporation. Notary Public B-5 7286502Ov4 Agenda Page 118 EXHIBIT A TO ASSESSMENT AGREEMENT LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY [TO BE INSERTED PRIOR TO EXECUTION OF ASSESSMENT AGREEMENT] B-6 72865o2ov4 Agenda Page 119 EXHIBIT C SITE IMPROVEMENTS Engineering Environmental Testing Foundations and Footings Grading/earthwork Landscaping, including irrigation Onsite Utilities Onsite Road, Curb, Gutter, Driveway, Sidewalk and Streetscape Improvements Outdoor Lighting Parking Site Preparation Site Utilities Soil Testing& Boring Storm Water/Ponding Survey C-1 72865020v4 Agenda Page 120 EXHIBIT D FORM OF TIF NOTE No. R-1 $ UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF ALBERTVILLE TAX INCREMENT REVENUE NOTE (SCHERER LIMITED PARTNERSHIP PROJECT) The City of Albertville, Minnesota (the "City"), hereby acknowledges itself to be indebted and, for value received, hereby promises to pay the amounts hereinafter described (the "Payment Amounts") to Scherer Limited Partnership (the "Developer"), or its registered assigns (the "Registered Owner"), but only in the manner, at the times, from the sources of revenue, and to the extent hereinafter provided. The principal amount of this Note shall equal from time to time the principal amount stated above, as reduced to the extent that such principal installments shall have been paid in whole or in part pursuant to the terms hereof, provided that the sum of the principal amount listed above shall in no event exceed $400,000 as provided in that certain Development Agreement, dated as of April 1, 2022, as the same may be amended from time to time (the "Development Agreement"), by and between the City and the Developer. This Note bears no interest. The amounts due under this Note shall be payable on the August 1 immediately following the date on which the City has been fully reimbursed for the costs of the acquisition of the Development Property (as defined in the Development Agreement) and the City Charges (as defined in the Development Agreement) in the amount of$700,000, and on each February 1 and August I thereafter to and including February 1, 2033, or, if the first should not be a Business Day (as defined in the Development Agreement), the next succeeding Business Day (the "Payment Dates"). On each Payment Date, the City shall pay by check or draft mailed to the person that was the Registered Owner of this Note at the close of the last business day of the City preceding such Payment Date an amount equal to the Tax Increments (hereinafter defined) received by the City during the six month period preceding such Payment Date. All payments made by the City under this Note shall be applied to principal. This Note is prepayable by the City, in whole or in part, on any date. The Payment Amounts due hereon shall be payable solely the Tax Increments (as defined in the Development Agreement) from the Development Property (as defined in the Development Agreement) within the City's Tax Increment Financing District Tax Increment Financing District No. 20 (the "Tax Increment District") within its Municipal Development District No. 1 which are D-1 7286502Ov4 Agenda Page 121 paid to the City and which the City is entitled to retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.1794, as the same may be amended or supplemented from time to time (the "Tax Increment Act"). This Note shall terminate and be of no further force and effect following the termination of the Tax Increment District, on any date upon which the City shall have terminated the Development Agreement under Section 42(2) thereof or the Developer shall have terminated the Development Agreement under Article V thereof, or on the date that all principal payable hereunder shall have been paid in full,whichever occurs earliest. The City makes no representation or covenant, expressed or implied, that the Tax Increments will be sufficient to pay, in whole or in part, the amounts which are or may become due and payable hereunder. The City's payment obligations hereunder shall be further conditioned on the fact that no Event of Default under the Development Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder, but such unpaid amounts shall become payable, without interest accruing thereon in the meantime, if said Event of Default shall thereafter have been cured; and, further, if pursuant to the occurrence of an Event of Default under the Development Agreement the City elects to cancel and rescind the Development Agreement, the City shall have no further debt or obligation under this Note whatsoever. Reference is hereby made to all of the provisions of the Development Agreement, including without limitation Section 3.3 thereof, for a fuller statement of the rights and obligations of the City to pay the principal of this Note, and said provisions are hereby incorporated into this Note as though set out in full herein. This Note is a special, limited revenue obligation and not a general obligation of the City and is payable by the City only from the sources and subject to the qualifications stated or referenced herein. This Note is not a general obligation of the City of Albertville, Minnesota, and neither the full faith and credit nor the taxing powers of the City are pledged to the payment of the principal of this Note and no property or other asset of the City, save and except the above-referenced Tax Increments, is or shall be a source of payment of the City's obligations hereunder. This Note is issued by the City in aid of financing a project pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including the Tax Increment Act. This Note may be assigned only with the consent of the City. In order to assign the Note, the assignee shall surrender the same to the City either in exchange for a new fully registered note or for transfer of this Note on the registration records for the Note maintained by the City. Each permitted assignee shall take this Note subject to the foregoing conditions and subject to all provisions stated or referenced herein. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law; and that this Note, together with all other indebtedness of the City outstanding on the date D-2 7286502Ov4 Agenda Page 122 hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation thereon. IN WITNESS WHEREOF, City of Albertville, Minnesota, by its City Council, has caused this Note to be executed by the manual signatures of its Mayor and City Administrator and has caused this Note to be issued on and dated , 20 City Administrator Mayor DO NOT EXECUTE UNTIL THE CONSTRUCTION OF THE PROJECT IS COMPLETE AND PAID INVOICES FOR THE SITE IMPROVEMENTS ARE GIVEN TO THE CITY-REFER TO SECTION 3.3(1). D-3 7286502Ov4 Agenda Page 123 CERTIFICATION OF REGISTRATION It is hereby certified that the foregoing Note, as originally issued on , 20 , was on said date registered in the name of Scherer Limited Partnership, and that, at the request of the Registered Owner of this Note, the undersigned has this day registered the Note in the name of such Registered Owner, as indicated in the registration blank below, on the books kept by the undersigned for such purposes. NAME AND ADDRESS OF DATE OF SIGNATURE OF REGISTERED OWNERS REGISTRATION CITY ADMINISTRATOR Scherer Limited Partnership Attention: Peter Scherer 9401 73rd Ave N#400 Brooklyn Park, MN 55428 , 20 , 20 520 520 D-4 72865020v4 Agenda Page 124 Nbertville City Administrator's Update March 31, 2022 GENERAL ADMINISTRATION Local Board of Appeals and Equalization: This meeting is scheduled for April 18 at 6:15 pm prior to the regular City Council meeting. Wright County Assessor's Office staff will be in attendance to present and answer questions. The trained and certified Board members are Councilmembers Olson and Zagorski. 2021 Audit: The annual audit for the City of Albertville and STMA Ice Arena is nearing completion. The preliminary audit began in late January with the majority of the field work starting March 14. The process has gone well and ABDO will be presenting the findings to the Council at the April 18 City Council meeting and the STMA Ice Arena Board on May 9. Recycling Schedule Changes: Beginning the week of March 28, Republic Services modified its recycling route. Instead of picking up half the City one week and the other half the next week, Republic began picking up the entire City on the same day. Notices were sent to all impacted residents (everyone west of CR 19) in advance. To make the transition, those impacted received recycling pick-up two weeks in a row. Gas Franchise Fee: We are working on a fee option for the city's franchise with CenterPoint. We are waiting on information from CenterPoint and expect to have options for the Council to consider at the next meeting. STMA Ice Arena: At their meeting on March 14, the board reviewed and approved a $5 rate adjustment to the base rates approved the preliminary budget. The dryland space is generally complete with the exception of paint and clean-up. Parks Committee: At their March 28 meeting, the Committee tentatively scheduled the Parks Night Out for May 20 in Central Park. The Commission is continuing to develop a prioritized list of projects to be recommended to the Council at a future meeting. League of Minnesota Cities 2022 Annual Conference: This event will be held on Wednesday, June 22 through Friday, June 24 in Duluth. Registration is now open for this in person event. Please let me know if you would like to attend this year. Summer Job Opportunities: The City is currently advertising for multiple seasonal summer positions for both the Public Works and Utilities Department. Further information is listed on the City's website. Agenda Page 125 ENGINEERING/PUBLIC WORKS Kingston Crossings: It is our understanding the developer will begin work on the 26 townhomes and one of the two 74-unit apartments this spring, and start the second 74-unit apartment building and the community building this fall. It is understood the project will take approximately 1 % years to construct. 53rd and CSAH 19 Signal: The signal justification report has been completed and sent to Wright County for review. Final design is underway and we anticipate bidding the project in the spring and constructing the signal late summer. Lift Station Upgrades: Public Works is working on 4 lift station upgrades. Generally, upgrades are related to control panels and electrical components. Eligible expenses can be paid with ARPA funds otherwise are paid with enterprise capital reserves. The Preserve at Albertville: Building permits are being issues for lots abutting a constructed street. In the spring, the Developer will complete the internal streets and construct the turn lane on CSAH 19. Advanced Volumetric Alliance: Building construction is ongoing with and the owners are working towards a spring/summer opening. Barthel Industrial Drive: Bids and the state grant contract will be presented at the second meeting in April. CSAH 37 Project: The County opened bids for the project on February 24 and received 6 proposals ranging from $6,789,520 to $8,583,265, with Knife River submitting the low bid. Per the cost share agreement, Albertville's share of project is $216,015. The County Board awarded the contract at their March 8 meeting to Knife River. Upcoming Events: • April 18— Local Board of Appeals and Equalization at 6:15 pm City Administrator's Update Page 2 of 2 March 31, 2022 Agenda Page 126