2013-02-19 CC Packet
City of Albertville Council Agenda
TUESDAY, February 19, 2013
City Council Chambers
7:00 PM
PUBLIC COMMENTS -The City of Albertville welcomes and encourages public input on issues listed on the agenda or of general community
interest. Citizens wishing to address the Council regarding specific agenda items, other than public hearings are invited to do so under Public
Forum and are asked to fill out a “Request to Speak Card”. Presentations are limited to five (5) minutes.
M:\Public Data\City Council\Council Agendas\2013 Agendas\021913 Council Agenda.doc
Meeting Date: February 19, 2013
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE – ROLL CALL
3. RECOGNITIONS – PRESENTATIONS – INTRODUCTIONS
4. PUBLIC FORUM – (time reserved 5 minutes)
5. AMENDMENTS TO THE AGENDA
6. CONSENT AGENDA
All items under the Consent Agenda are considered to be routine by the City staff and will
be enacted by one motion. In the event an item is pulled it will be discussed in the order it
is listed on the Consent agenda following the approval of the remaining Consent items.
These items will be approved by a separate motion.
A. Approve the February 4, 2013 City Council regular meeting minutes as presented (pgs
4-8)
B. Approve the February 4, 2013 City Council workshop meeting minutes as presented
(pgs 9-12)
C. Authorize the February 19, 2013 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 the
City Hall upon request (pg 13)
D. Approve a One Day Temporary 3.2 Liquor License for the Albertville Lions Club for a
Fish Fry on March 8, 2013 (pgs 14-16)
E. Approve Resolution 2013-006 Approving the State of Minnesota and the City of
Albertville Master Partnership Contract, MnDot Agreement #02628 (pgs 17-18)
Agenda Page 1
City of Albertville Council Agenda
TUESDAY, February 19, 2013 Page 2 of 3
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Meeting Date: February 19, 2013
7. PUBLIC HEARINGS
A. Fraser Building Limited Partnership – Business Subsidy
1). Motion to adopt Resolution No. 2013-007 Approving Contract for Private
Development By and Between the City of Albertville and Fraser Building Limited
Partnership (pgs 19-69)
2). Motion to Adopt Resolution No. 2013-008 Authorizing Interfund Loan for
Advance of Certain Costs in Connection with Tax Increment Financing District
No. 14 (pgs 70-72)
3). Motion to Adopt Resolution No. 2013-009 Approving the Site and Building Plans
for Fraser Building Limited Partnership to Allow a 24,500 Square Foot
Industrial Building Expansion at 11915 53rd Street NE in Albertville (pgs 73-94)
8. DEPARTMENT BUSINESS
A. City Council
1). Committee Updates (STMA Ice Arena, Parks, Planning, JPWB, etc.)
B. City Clerk
1). Newsletter Update (pgs 95-96)
C. Public Works / Engineering
1). 2013 Street, Trail and Utility Improvements (pgs 97-98)
(Motion to direct staff to prepare cost estimates, plans, and specifications for the
2013 street, trail and utility improvements)
D. Finance
E. Planning/Zoning
F. Building
G. Legal
H. Administration
1). Propose Lease of old Public Works Building to Soccer Association (pgs 99-112)
(Motion to direct City staff to work with the Soccer Association to finalize a lease
of the old Public Works building to the Soccer Association)
2). City Administrator Update (pgs 113-114)
Agenda Page 2
City of Albertville Council Agenda
TUESDAY, February 19, 2013 Page 3 of 3
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Meeting Date: February 19, 2013
9. ANNOUNCEMENTS and/or UPCOMING MEETINGS
February 25 Joint Powers Water Board, 6:30 p.m.
March 4 City Council, 7:00 p.m.
March 11 STMA Ice Arena Board, 6:00 p.m.
March 12 Planning Commission, 7:00 p.m.
March 18 City Council, 7:00 p.m.
March 25 Joint Powers Water Board, 6:30 p.m.
Parks Committee, 7:30 p.m.
FEBRUARY
MARCH
Su M Tu W Th F Sa
Su M Tu W Th F Sa
1 2
1 2
3 CC 4 5 6 7 8 9
3 CC 4 5 6 7 8 9
10 Ice 11 PZ 12 13 14 15 16
10 Ice 11 PZ 12 13 14 15 16
17 H 18 CC 19 20 21 22 23
17 CC 18 19 20 21 22 23
24
JP 25 26 27 28
24 JP PK
25 26 27 28 29 30
31
10. CLOSED SESSION
A. Discuss attorney/client privileged information concerning the case of Gerhardt Knechtl
v. City of Albertville
11. ADJOURNMENT
Agenda Page 3
ALBERTVILLE CITY COUNCIL
Monday, February 4, 2013
DRAFT MINUTES
ALBERTVILLE CITY HALL 7:00 PM
1. CALL TO ORDER – PLEDGE OF ALLEGIANCE
Mayor Hendrickson called the meeting to order at 7:02 p.m.
2. ROLL CALL
Present: Mayor Hendrickson and Council members Olson, Sorensen, Vetsch and Wagner
Absent: None
Others Present: City Administrator/ Public Works Director/City Engineer Adam Nafstad, City
Attorney Michael Couri, City Clerk Kimberly Olson, City Planner Alan Brixius, Utilities
Superintendent John Middendorf, and Wright County Commissioner Michael Potter
3. RECOGNITIONS, PRESENTATIONS AND INTRODUCTIONS
A. Certificate of Achievement for Excellence in Financial Reporting
Hendrickson presented the award to Lannes and thanked her for work to earn the
award.
Lannes described the process by which the City is graded and the high standards that
must be met. She stated the process takes about six months and the award is for
2011.
4. PUBLIC FORUM
There was no one present to speak.
5. APPROVAL OF THE AGENDA
Motioned by Sorensen, seconded by Wagner, to approve the agenda. Ayes: Hendrickson,
Olson, Sorensen, Vetsch and Wagner. Nays: None. Absent: None. MOTION DECLARED
CARRIED.
Agenda Page 4
City Council Meeting Minutes Page 2
Regular Meeting of February 4, 2013
6. CONSENT AGENDA
All items under the Consent Agenda are considered to be routine by City Staff and will be
enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed
on the Consent Agenda following the approval of the remaining Consent items. These items will
be approved by a separate motion.
A. Approve the January 22, 2013 City Council regular meeting minutes as presented
B. Accept the draft January 28, 2013 Parks Committee meeting minutes as presented
C. Authorize the February 4, 2013 payment of claims as presented, except bills
specifically pulled which are passed by separate motion. The claims listing has been
provided to City Council as a separate document and is available for public view at
City Hall upon request
D. Approve Pay Estimate #7 to Eureka Construction for the I-94 project in the amount of
$253,389.94
E. Accept Parks Committee Update on Member Terms of Office
F. Adopt Resolution No. 2013-004 and Resolution 2013-005 approving the Annual
Retirement Benefit for the Albertville Volunteer Fire Department for 2012 and 2013
Motioned by Wagner, seconded by Sorensen, to accept the consent agenda. Ayes:
Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays: None. Absent: None. MOTION
DECLARED CARRIED.
7. PUBLIC HEARINGS - None
8. DEPARTMENT BUSINESS
A. City Council
1). Committee Updates (STMA Arena, Planning, JPWB, etc.)
Hendrickson stated the Joint Powers Water Board may change insurance
companies and is also looking at different banks for competitive rates. The
Board has hired a firm to investigate the pink water issue. Vetsch stated they are
filling the well in the winter with clean water to help the high demand in the
summer and it is the first time they have done so.
B. City Clerk
1). Set Board of Appeal and Equalization meeting date for Wednesday, April 17,
2013 at 5:30 p.m.
Clerk Olson stated the County had tentatively set the date for the Board of
Appeal and Equalization for the City of Albertville.
She stated they must have at least three members present, one of which must
have received training in the last four years. Sorensen replied that he and Vetsch
Agenda Page 5
City Council Meeting Minutes Page 3
Regular Meeting of February 4, 2013
received training about three years ago. Both indicated they would be able to
attend the April 17, 2013 meeting. Olson and Hendrickson stated they also
would be able to attend.
Clerk Olson stated she would verify the training requirements and get back to
Council with training opportunities.
Motioned by Vetsch, seconded by Sorensen, to set the City of Albertville Board
of Appeal and Equalization meeting date for Wednesday, April 17, 2013 at 5:30
p.m. Ayes: Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays: None.
Absent: None. MOTION DECLARED CARRIED.
C. Public Works / Engineering
1). Water and Wastewater Update
Vetsch inquired if the wastewater ponds have been cleaned out. Middendorf said
it won’t be until 2013. They need to de-water and empty them. They must have
a plan for removing the solids and it must be done by the end of the 2014 year.
D. Planning/Zoning
E. Finance - None
F. Building - None
G. Legal
1). City Attorney Update
Couri reported he is close to having an answer regarding how to work with the
pay scale for public works employees who are volunteer firefighters.
H. Administration
1). Administrator’s Update
Nafstad reported they have devised an insulated box to protect and heat the
STMA Ice Arena communications antennae. City staff built and installed it
recently and they are hopeful it will help.
Nafstad reported they are working with the architect and the contractor for the
STMA Ice Arena to determine the cause of the drips coming from the roof.
They are currently monitoring the humidity in the building to determine if it is a
condensation problem. Nafstad has included the building official in the process.
Agenda Page 6
City Council Meeting Minutes Page 4
Regular Meeting of February 4, 2013
Nafstad reported that the I-94 Coalition is working on legislative support for the
I-94 expansion. The I-94 Chamber of Commerce has acted as the lead for the
Coalition and has utilized a lot of the Chamber’s resources, so they are in the
process of determining who should lead the Coalition.
Nafstad reported both Mayors of Albertville and St. Michael met with
Congresswoman Bachman. There will be an event held in March likely at
Cabela’s to show support for the I-94 expansion.
2). 5964 Main Ave Use/Lease Discussion
Nafstad reported that he had been approached by the Soccer Association
wanting to rent office space at City Hall or one of the other buildings. They
showed great interest in the office space and the garage across the street. They
would use the garage for indoor practice by bringing in turf and nets. This
would require some clean up and gutting of the garage on the part of the City.
Nafstad stated there is currently public works equipment and the Friendly City
Days float in the garage. It is a convenience factor to have the public works
equipment there for maintenance and plowing at City Hall and Central Park.
However, the garage was not intended for storage once the Public Works facility
was built. Friendly City Days would need to find a new location for the float.
Hendrickson stated that she spoke with the association’s president and there is a
great need for space.
Nafstad talked briefly with Brixius about parking, but mostly it would be
dropping kids off and picking them up. Vetsch was concerned with parking and
Nafstad stated if there was a need for more parking, they could use the City Hall
lot and the on street parking that is available.
Vetsch stated that area is an asset to public works in their daily work. Wagner
asked staff to determine the extra labor costs if they had to trailer the equipment
from their location rather than having it in the garage.
Sorensen asked when the association would need to have the building and
Nafstad replied they would like it ready by June. It would be used all year
round.
9. ANNOUNCEMENTS and/or UPCOMING MEETINGS
February 11 STMA Ice Arena Board, 6:00 p.m.
February 12 Planning and Zoning Commission, 7:00 p.m.
February 18 Presidents’ Day, City Offices Closed
February 19 City Council, 7:00 p.m.
February 25 Joint Powers Water Board, 6:30 p.m.
Agenda Page 7
City Council Meeting Minutes Page 5
Regular Meeting of February 4, 2013
10. ADJOURN MEETING
Motioned by Wagner, seconded by Hendrickson, to adjourn the meeting at 7:45 p.m.
Ayes: Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays: None. Absent: None.
MOTION DECLARED CARRIED.
Respectfully submitted,
___________________________________
Kimberly A. Olson, City Clerk
Agenda Page 8
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ALBERTVILLE CITY COUNCIL WORKSHOP
Monday, February 4, 2013
DRAFT MINUTES
ALBERTVILLE CITY HALL 6:00 P.M.
1. CALL TO ORDER
Mayor Hendrickson called the meeting to order at 6:04 p.m.
Present: Mayor Jillian Hendrickson and Council members Rob Olson, Larry Sorensen, John
Vetsch and Dan Wagner
Absent: None
Others Present: City Administrator/Public Works Director/City Engineer Adam Nafstad, City
Attorney Michael Couri, City Planner Alan Brixius, Finance Director Tina Lannes, City Clerk
Kimberly Olson and Wright County Commissioner Michael Potter
2. PRIORITIES FOR WRIGHT COUNTY
Nafstad welcomed Commissioner Potter and thanked him for attending the meeting. He stated
the City appreciates past partnerships with Wright County as well as the contracted services the
City receives. The City has been served well.
Nafstad stated he would like to see someone from the County take the lead role on emergency
management. Potter responded that each district has a point person that is trained for emergency
response. Nafstad stated the City will continue to support the County as much as possible.
Potter discussed the funding policy for street improvements. He stated he is working on
discussions with cities and townships to development a funding policy that is more equitable.
Hendrickson inquired if the City should submit a letter of support of these efforts to the County
Board.
Potter explained that Wright County is one of two communities to have the largest estimates of
population growth in the coming years. There are several main corridors within the County that
will see growth such as I-94, Highway 12 and Highway 55.
Agenda Page 9
City of Albertville Page 2 of 4
City Council Workshop Minutes
February 4, 2013
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Brixius stated that the county roads in Albertville serve more than just Albertville residents as
many residents from other communities use them in their work commutes.
Potter stated there was quite a bit of turnover on the County Board and four of the five members
are new.
Sorensen and Vetsch voiced several concerns regarding signals, turn lanes, bypass lanes and road
shoulders.
Council discussed the need for a trail to be completed leading to the high school. Nafstad stated
they had tried to get grant money previously but the project is not a good candidate for grant
funds. He suggested a formal letter to the County asking for support for the trail.
3. ECONOMIC DEVELOPMENT / SALEABLE CITY OWNED PROPERTY
Brixius stated the Vision Study identified economic development as a high priority for the City.
He stated a contact group should be identified and suggest it include the City Administrator, City
Planner and one Council member to represent the City’s interests when meeting with prospective
businesses. Staff will need to assemble information for the businesses such as community
strengths, inventory of lots available, utility availability, tax rate, incentives and a review of the
application process.
Nafstad stated the biggest problem for prospective businesses and developers are the upfront
costs and there are ways to help spread out the costs with assessments and abatements. Brixius
stated that another issue is park dedication versus economic development.
Motioned by Sorensen, seconded by Olson, to suspend the workshop until after the regular
Council meeting. Ayes: Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays: None.
Absent: None. MOTION DECLARED CARRIED.
Hendrickson called the meeting back to order at 7:54 p.m.
Brixius identified several City owned lots that are ideal for expansion of current industrial
businesses. Nafstad stated he did not want to limit expansion options for the businesses, so they
may market other City owned properties first.
Brixius identified several marketing strategies they could pursue. A meeting with local
developers would be set to discuss opportunities for development in Albertville as well as to see
what would be an incentive for developers to come to Albertville. They would also meet with
local industries to see if they have future expansion ideas. Staff must develop sale prices and
identify financial incentives for developers. Brixius stated the goal was to reduce City land
holdings and debt, grow local industries, and provide livable wage jobs. They also need to
balance private investment with City investment while limiting the City’s financial risk.
Agenda Page 10
City of Albertville Page 3 of 4
City Council Workshop Minutes
February 4, 2013
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Brixius stated they are moving forward with an appraisal on one of the City’s properties and that
will help determine lot prices.
Council felt a meeting with the developers is a good idea and directed staff to move forward with
the marketing strategies outlined.
4. RECYCLING PROGRAM
Sorensen stated that when the recycling program was set up, the intent was to give back to the
community if funds are available. This could be a credit or rewards program. Nafstad stated that
Allied Waste indicated they would be supportive of any program or event. He stated they no
longer have the rewards program, but are working on developing something new.
Vetsch would like to see more commercial involvement in recycling and would like to see some
help or education offered to businesses. Couri stated they cannot mandate businesses use a
certain vendor. Vetsch thought the City could work with recycling vendors to get better pricing
for businesses. He stated educational pieces could be put in utility bills.
Sorensen stated they were due for an annual update on recycling soon and would like to have the
recycling representative come to a meeting this spring.
Sorensen asked if the recycling funds could be given back to the residents in the form of a rebate
on their utility bill. Lannes replied it would be an extremely difficult and time consuming effort
on the part of the Finance Department. She suggested that the funds be used to offset an increase
in recycling fees in the years to come, so residents would not see an increase in their bills.
Olson stated he was not aware that additional recycle bins could be delivered to the residents.
Hendrickson suggested Clerk Olson put that information on the website.
5. CITY COMMUNICATIONS
Clerk Olson informed the Council the website redevelopment is in Phase 2. Phase 2 includes
uploading and managing content to the site and this is the most time consuming portion of the
redevelopment. The anticipated completion date of the site is the end of March and will include
online forms. Hendrickson inquired if the forms can still be downloaded and completed. Clerk
Olson replied the forms would have an online version that can be submitted directly to staff as
well as a PDF version of the form.
Nafstad stated they are looking for feedback on newsletter communications. Clerk Olson stated
they have several options to look at. They can continue to create the newsletter in house. They
have a local advertising company take over the newsletter. They could also supplement the
newsletter with utility bill inserts. Nafstad stated they had met with a local advertising company
that could take over the newsletter including creating a new look for the newsletter, prepress
design and printing. They had quality work and the cost was in line with the City’s cost to do it
in house. Hendrickson and Wagner thought if they could have a better newsletter for the same
price, staff should continue to look into it. Clerk Olson stated the only thing the City need to do
Agenda Page 11
City of Albertville Page 4 of 4
City Council Workshop Minutes
February 4, 2013
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is supply the articles. Nafstad stated there was an option to include business advertisements that
could help offset the City’s cost of the newsletter. He wanted residents to know they would be
getting a newsletter on a regular basis and suggested starting out with two newsletters a year,
either winter and summer or spring and fall with the option of utility bill inserts for events that
don’t coincide with the timing of the newsletter.
Sorensen stated that when he was running for office one of the biggest complaints from residents
is they are not aware of what is going on in the City. Hendrickson agreed and stated she had
received those comments as well. Vetsch suggested they attend the City Council meetings.
Council discussed electronic versus paper newsletters. Nafstad felt the goal is to have a defined
schedule for residents to know when they get their newsletter. Council directed staff to come up
with a schedule and costs for publication.
Nafstad stated there have been some inquiries into televising the Council meetings. He stated
they would have two channels available from the cable company. They have never used the
channels but they are part of the franchise agreement. The estimated cost for basic recording and
televising equipment would be approximately $10,000 and per the franchise agreement, they
may be able to have that cost covered by the cable company. Lannes emphasized the need for
personnel to run the equipment during the meetings and it would be difficult for anyone
participating in the meeting to be in charge of the cameras.
Nafstad stated there is a portion of each resident’s cable bill that is a fee coming to the City.
Sorensen felt if that is the case, Council should be providing something to the residents for their
money.
Hendrickson had concerns about costs for staff and quality of the work. Nafstad agreed that
quality is key for production and they want it to look professional.
Council directed staff to contact the cable company and look into the opportunities available.
6. ADJOURNMENT
Motioned by Vetsch, seconded by Olson, to adjourn the meeting at 9:55 p.m. Ayes:
Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays: None. Absent: None. MOTION
DECLARED CARRIED.
Respectfully submitted,
____________________________________
Kimberly A. Olson, City Clerk
Agenda Page 12
Mayor and Council Request for Action
M:\Public Data\City Council\Council Packet information\2013\021913\02 19 2013 Finance Bills Report (RCA).doc
Meeting Date: February 19, 2013
February 14, 2013
SUBJECT: CONSENT (Finance) – PAYMENT OF BILLS
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the
following:
MOTION TO: Authorize the TUESDAY, February 19, 2013 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 view at City Hall upon request.
BACKGROUND: The City processes claims on a semi-monthly basis. The bills are approved
through their respective departments and administration and passed onto the City Council for
approval.
KEY ISSUES:
Account codes starting with 810 are STMA Arena Expenses/Vendors (bolded) and key
issues will be presented in the claims listing document.
POLICY/PRACTICES CONSIDERATIONS: It is the City’s policy to review and approve
payables on a semi-monthly basis.
FINANCIAL CONSIDERATIONS: City staff has reviewed and recommends approval of
payments presented.
LEGAL CONSIDERATIONS: The Mayor and Council have the authority to approve all bills
pursuant to Minnesota State Law, which requires all bills to be paid in a timely manner,
generally within 30 days unless one party determines to dispute the billing.
Department/Responsible Person: Finance/Tina Lannes, Finance Director
Submitted through: Adam Nafstad, City Administrator
Attachment: List of Claims (under separate cover)
Agenda Page 13
Mayor and Council Request for Action
M:\Public Data\City Council\Council Packet information\2013\021913\Lions Temp Liquor License RCA.doc
Meeting Date: February 19, 2013
February 14, 2013
SUBJECT: CONSENT AGENDA – CITY CLERK – ALBERTVILLE LIONS ONE-DAY LIQUOR
LICENSE
RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider
the following:
MOTION TO: Approve a one day 3.2 Malt Liquor License application submitted by
Albertville Lions Club for March 8, 2013 for the Albertville Lions Club Fish Fry.
BACKGROUND: Temporary 3.2 Malt Liquor Licenses are available to clubs, charitable
organizations, non-profits and religious organizations. The Albertville Lions Club holds several
events throughout the year to raise money for community projects. The Albertville Lions Club
has applied for a one day Temporary 3.2 Malt Liquor License for a Fish Fry to be held on Friday,
March 8, 2013 from 4:00-9:00 p.m.
KEY ISSUES:
• The Albertville Lions Club has submitted the application and payment for the one day
Temporary 3.2 Malt Liquor License.
• There have been no previous 2013 applications for a Temporary 3.2 Malt Liquor License
from the Lions.
• The event will take place at City Hall and be over by the 10:00 p.m. closing time.
• The Albertville Lions Club carries the necessary insurance to cover the event.
FINANCIAL CONSIDERATIONS: There is a minimal fee for the one day license.
POLICY CONSIDERATIONS: The Mayor and City Council have the authority to review and
direct staff to take action regarding all liquor licenses applications received by the City of
Albertville.
Department/Responsible Person: City Clerk/Kim Olson
Submitted through: Adam Nafstad, City Administrator
Attachments: Lions Application
Agenda Page 14
Agenda Page 15
Agenda Page 16
Mayor and Council Request for Action
M:\Public Data\City Council\Council Packet information\2013\021913\MnDOT Master Partnership Contract (RCA).doc
Meeting Date: February 19, 2013
February 13, 2013
SUBJECT: ENGINEERING – MNDOT MASTER PARTNERSHIP CONTRACT
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the
following motion:
MOTION TO: Approve Resolution No. 2013-006 Approving MnDOT Agreement No. 02628
and Titled “State of Minnesota and City of Albertville Master Partnership Contract”.
BACKGRROUND INFORMATION: This agreement between the City and MnDOT allows
for collaborative and efficient construction, maintenance and operation efforts of both state and
local roads. These agreements allow MnDOT to pay local governments to perform certain work
related to trunk highways, and vice versa for the City to pay MnDOT for certain work on local
roads. Once this agreement has been executed, and when and if the need arises, negotiated Work
Orders can be used to contract service between the two agencies.
KEY ISSUES:
• This agreement is a renewal of the previous Master Partnership Contract.
• Generally, MnDOT maintains a Master Partnership Contract with all counties and MSAS
cities.
• This agreement allows MnDOT to perform work on City facilities, and for the City to
perform work on MnDOT facilities.
• This is not an agreement for the I-94 C-D Roads or a specific project.
• A Work Order, approved by both agencies, that supplements this agreement is required
for any and all work under this contract.
• There are no specific projects or particular engagements planned for this contract at this
time.
POLICY CONSIDERATIONS: It is the City’s Policy for the Mayor and City Council to
approve all agreements and contracts entered into on behalf of the City.
FINANCIAL CONSIDERATIONS: There are no financial impacts associated with execution
of this agreement.
LEGAL CONSIDERATIONS: The Mayor and Council possess the authority to approve or
reject agreements on the behalf of the City.
Department/Responsible Person: Engineering/Adam Nafstad
Submitted Through: Adam Nafstad, City Administrator
Attachments: Resolution 2013-006 (agreement on file with City Clerk)
Agenda Page 17
CITY OF ALBERTVILLE
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2013-006
A RESOLUTION APPROVING MnDOT AGREEMENT No. 02628 AND TITLED
“STATE OF MINNESOTA AND CITY OF ALBERTVILLE MASTER PARTNERSHIP
CONTRACT”
WHEREAS, the Minnesota Department of Transportation wishes to cooperate closely
with local units of government to coordinate the delivery of transportation services and
maximize the efficient delivery of such services at all levels of government; and
WHEREAS, MnDOT and local governments are authorized by Mn Statues sections
471.59, 174.02, and 161.20, to undertake collaborative efforts for the design, construction,
maintenance and operation of state and local roads; and
WHEREAS, the parties wish to be able to respond quickly and efficiently to such
opportunities for collaboration, and have determined that having the ability to write “work
orders” against a master contract would provide the greatest speed and flexibility in responding
to identified needs.
NOW, THEREFORE, BE IT RESOLVED:
1. That the City of Albertville enter into Master Partnership Contract, MnDOT
Agreement #02628, with the Minnesota Department of Transportation
2. That the Mayor and City Clerk are authorized to execute such contract, and any
amendments thereto.
3. That the City Administrator/Engineer is authorized to negotiate work order
contracts pursuant to the Master Contract, which work order contracts may
provide for payment to or from MnDOT, and that the City Administrator
/Engineer may execute such work order contracts on behalf of the City of
Albertville.
Adopted by the City Council of the City of Albertville this 19th day of February 2013.
___________________________
Jillian Hendrickson, Mayor
___________________________
Kimberly A. Olson, City Clerk
Agenda Page 18
1
CITY OF ALBERTVILLE
COUNTY OF WRIGHT
STATE OF MINNESOTAT
RESOLUTION NO. 2013-007
RESOLUTION APPROVING CONTRACT FOR
PRIVATEDEVELOPMENT BY AND BETWEEN THE CITY
OF ALBERTVILLE AND FRASER BUILDING LIMITED
PARTNERSHIP
BE IT RESOLVED By the City Council ("Council") of the City of Albertville ("City") as
follows:
Section 1. Recitals.
1.01. The City is authorized to grant a business subsidy in order to increase or preserve tax
base, provide employment opportunities, and facilitate development, all pursuant to Minnesota
Statutes, Sections 116J.993 to 116J.995 (the “Business Subsidy Act”).
1.02. The City is further authorized to establish tax increment financing districts within
the City under Minnesota Statutes, Sections 469.174 to 469.1799 (the “TIF Act”), and established
its Tax Increment Financing District No. 14 (the “TIF District”) on July 2, 2012 following a duly
noticed public hearing.
1.03. There has been presented before the Council a Contract for Private Development
(the “Contract”) between the City and Fraser Building Limited Partnership (the “Developer"),
setting forth the terms and conditions of development of certain property in the City and TIF
District, and the City’s participation in that effort.
1.04. The Contract provides for financial assistance in the form of tax increment financing
by the City pursuant to the TIF Act that constitutes a “business subsidy” exceeding $150,000 within
the meaning of the Business Subsidy Act.
1.05. The “business subsidy agreement” as required under the Business Subsidy Act is
included as one section of the Contract, and the City has on this date conducted a duly noticed
public hearing regarding the business subsidy agreement at which all interested persons were given
an opportunity to be heard.
Section 2. City Approval; Further Proceedings.
2.01. The Contract as presented to the Council, including the business subsidy agreement,
is hereby in all respects approved, subject to modifications that do not alter the substance of the
transaction and that are approved by the Mayor and City Administrator; provided that execution of
the Contract by such officials shall be conclusive evidence of approval.
Agenda Page 19
City of Albertville
Resolution 2013-007
Page 2
417669v1 MNI AL141-57 2
2.02. The Mayor and City Administrator are hereby authorized to execute the Contract on
behalf of the City and to carry out, on behalf of the City, the City’s obligations thereunder, including
without limitation execution of all documents referenced in the Contract or necessary to carry out
the transactions described therein.
Approved by the City Council of the City of Albertville this 19th day of February, 2013.
Jillian Hendrickson, Mayor
ATTEST:
Kimberly A. Olson, City Clerk
Agenda Page 20
405588v4 MNI AL141-57
Fourth draft, February 14, 2012
CONTRACT FOR PRIVATE DEVELOPMENT
By and Between
CITY OF ALBERTVILLE, MINNESOTA
And
FRASER BUILDING LIMITED PARTNERSHIP
Dated as of: _________________
This document was drafted by:
KENNEDY & GRAVEN, Chartered (MNI)
470 U.S. Bank Plaza
Minneapolis, Minnesota 55402
Telephone: 337-9300
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405588v4 MNI AL141-57 i
TABLE OF CONTENTS
Page
PREAMBLE ............................................................................................................................. 1
ARTICLE I
Definitions
Section 1.1. Definitions........................................................................................................... 2
ARTICLE II
Representations and Warranties
Section 2.1. Representations by the City ................................................................................ 5
Section 2.2. Representations and Warranties by the Developer ............................................. 5
ARTICLE III
Acquisition and Conveyance of Property
Section 3.1. Status of the Development Property ................................................................... 7
Section 3.2. Public Development Costs .................................................................................. 7
Section 3.3. Reimbursement of Public Development Costs ................................................... 7
Section 3.4. Business Subsidy Agreement .............................................................................. 8
Section 3.5. Payment of Administrative Costs ..................................................................... 10
ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of Minimum Improvements ........................................................ 11
Section 4.2. Construction Plans ............................................................................................ 11
Section 4.3. Commencement and Completion of Construction ............................................ 12
Section 4.4. Certificate of Completion ................................................................................. 12
Section 4.5. Public Improvements ........................................................................................ 13
ARTICLE V
Insurance
Section 5.1. Insurance ........................................................................................................... 14
Section 5.2. Subordination .................................................................................................... 15
ARTICLE VI
Delinquent Taxes and Review of Taxes
Section 6.1. Right to Collect Delinquent Taxes .................................................................... 16
Section 6.2. Review of Taxes ............................................................................................... 16
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405588v4 MNI AL141-57 ii
Section 6.3 Assessment Agreement ..................................................................................... 16
ARTICLE VII
Financing
Section 7.1. Financing........................................................................................................... 17
Section 7.2. City’s Option to Cure Default on Mortgage ..................................................... 17
Section 7.3. Subordination and Modification for the Benefit of Mortgagee ........................ 17
ARTICLE VIII
Prohibitions Against Assignment and Transfer; Indemnification
Section 8.1. Representation as to Development.................................................................... 18
Section 8.2. Prohibition Against Developer’s Transfer of Property and
Assignment of Agreement ................................................................................ 18
Section 8.3. Release and Indemnification Covenants ........................................................... 19
ARTICLE IX
Events of Default
Section 9.1. Events of Default Defined ................................................................................ 21
Section 9.2. Remedies on Default ......................................................................................... 21
Section 9.3. No Remedy Exclusive....................................................................................... 21
Section 9.4. No Additional Waiver Implied by One Waiver ................................................ 22
ARTICLE X
Additional Provisions
Section 10.1. Conflict of Interests; City Representatives Not Individually Liable ................ 23
Section 10.2. Equal Employment Opportunity ....................................................................... 23
Section 10.3. Restrictions on Use ........................................................................................... 23
Section 10.4. Provisions Not Merged With Deed ................................................................... 23
Section 10.5. Titles of Articles and Sections .......................................................................... 23
Section 10.6. Notices and Demands ....................................................................................... 23
Section 10.7. Counterparts ...................................................................................................... 24
Section 10.8. Recording .......................................................................................................... 24
Section 10.9 Amendment ....................................................................................................... 24
Section 10.10 City Approvals .................................................................................................. 24
Section 10.11 Termination ....................................................................................................... 24
Section 10.12 Choice of Law and Venue ................................................................................. 24
TESTIMONIUM ....................................................................................................................... S-1
SIGNATURES ......................................................................................................................... S-1
SCHEDULE A Description of Development Property
SCHEDULE B Interfund Loan Resolution
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405588v4 MNI AL141-57 iii
SCHEDULE C Authorizing Resolution
SCHEDULE D Certificate of Completion
SCHEDULE E Assessment Agreement
Agenda Page 24
405588v4 MNI AL141-57 1
CONTRACT FOR PRIVATE DEVELOPMENT
THIS AGREEMENT, made as of the ____ day of February, 2013, by and between THE
CITY OF ALBERTVILLE, MINNESOTA, a Minnesota municipal corporation (the “City”), and
FRASER BUILDING LIMITED PARTNERSHIP, a Minnesota limited partnership (the
“Developer”).
WITNESSETH:
WHEREAS, the City has undertaken a program to promote economic development and
job opportunities and to promote the development of land which is underutilized within the City,
and in this connection created a development project known as Development District No. 1 (the
“Development District”) pursuant to Minnesota Statutes, Sections 469.124 to 469.134, as
amended (the “Municipal Development Act”); and
WHEREAS, pursuant to the Municipal Development Act, the City is authorized to
acquire real property, or interests therein, and to undertake certain activities to facilitate the
development of real property by private enterprise; and
WHEREAS, the Developer has acquired certain property described in Schedule A (the
“Development Property”) within the Development District, and intends to develop certain
improvements described herein on the Development Property; and
WHEREAS, the City has approved a Tax Increment Financing Plan for Tax Increment
Financing District No. 14 (the “TIF District”) pursuant to Minnesota Statutes, Sections 469.174
to 469.1799, as amended (the “Tax Increment Act”), made up of the Development Property; and
WHEREAS, the City believes that the development of the Development Property
pursuant to this Agreement, and fulfillment generally of this Agreement, are in the vital and best
interests of the City and the health, safety, morals, and welfare of its residents, and in accord
with the public purposes and provisions of the applicable State and local laws and requirements
under which the development has been undertaken and is being assisted.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
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405588v4 MNI AL141-57 2
ARTICLE I
Definitions
Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears
from the context:
“Agreement” means this Agreement, as the same may be from time to time modified,
amended, or supplemented.
"Authorizing Resolution" means the resolution of the City, substantially in the form of
attached Schedule C to be adopted by the City to authorize the issuance of the Note.
“Available Tax Increment” has the meaning provided in the Authorizing Resolution.
“Business Subsidy Act” means Minnesota Statutes, Section 116J.993 to 116J.995, as
amended.
“Certificate of Completion” means the certification provided to the Developer, or the
purchaser of any part, parcel or unit of the Development Property, pursuant to Section 4.4 of this
Agreement.
“City” means the City of Albertville, Minnesota.
“City Representative” means the City Administrator, or any person designated by the
City Administrator to act as the City Representative for the purposes of this Agreement.
“Construction Plans” means the plans, specifications, drawings and related documents on
the construction work to be performed by the Developer on the Development Property which (a)
shall be as detailed as the plans, specifications, drawings and related documents which are
submitted to the appropriate building officials of the City, and (b) shall include at least the
following for each building: (1) site plan; (2) foundation plan; (3) floor plan for each floor; (4)
elevations (all sides); (5) landscape plan; and (6) such other plans or supplements to the
foregoing plans as the City may reasonably request to allow it to ascertain the nature and quality
of the proposed construction work.
“County” means the County of Wright, Minnesota.
“Developer” means Fraser Building Limited Partnership or its permitted successors and
assigns.
“Development District” means the City’s Development District No. 1.
“Development Property” means the real property described in Schedule A of this
Agreement.
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405588v4 MNI AL141-57 3
“Development Plan” means the City’s Development Plan for the Development District,
as amended.
“Event of Default” means an action by the Developer listed in Article IX of this
Agreement.
“Holder” means the owner of a Mortgage.
“Interfund Loan” has the meaning provided in Section 3.3(a).
“Interfund Loan Resolution” means the resolution of the City, substantially in the form of
attached Schedule B to be adopted by the City to authorize the Interfund Loan.
“Minimum Improvements” means the construction on the Development Property of an
approximately 25,000 square foot addition to Developer’s existing manufacturing facility,
including office space necessary for and related to such activities, and improvements to
Developer’s existing facility.
“Mortgage” means any mortgage made by the Developer which is secured, in whole or in
part, with the Development Property and which is a permitted encumbrance pursuant to the
provisions of Article VIII of this Agreement.
“Municipal Development Act” means Minnesota Statutes, Sections 469.124 to 469.134,
as amended.
“Note” means the Tax Increment Revenue Note, substantially in the form contained in
the Authorizing Resolution, to be delivered by the City to the Developer in accordance with
Section 3.3(b) hereof.
“Public Development Costs” has the meaning provided in Section 3.2 hereof.
“Qualified Facility” has the meaning provided in Section 3.4(a)(6).
“State” means the State of Minnesota.
“Tax Increment” means that portion of the real property taxes which is paid with respect
to the Development Property and which is remitted to the City as tax increment pursuant to the
Tax Increment Act.
“Tax Increment Act” means the Tax Increment Financing Act, Minnesota Statutes,
Sections 469.174 to 469.1799, as amended.
“Tax Increment District” or “TIF District” means the City’s Tax Increment Financing
District No. 14.
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405588v4 MNI AL141-57 4
“Tax Increment Plan” or “TIF Plan” means the City’s Tax Increment Financing Plan for
Tax Increment Financing District No. 14, as approved by the City on July 2 , 2012, and as it may
be amended from time to time.
“Tax Official” means any County assessor; County auditor; County or State board of
equalization, the commissioner of revenue of the State, or any State or federal district court, the
tax court of the State, or the State Supreme Court.
“Termination Date” means the earlier of (a) date of the City’s last receipt of Tax
Increment from the TIF District in accordance with Section 469.176, subd. 1b(3) of the TIF Act,
or (b) the date the Interfund Loan and Note have been paid in full or terminated in accordance
with the terms of this Agreement.
“Unavoidable Delays” means delays beyond the reasonable control of the party seeking
to be excused as a result thereof which are the direct result of war, terrorism, strikes, other labor
troubles, fire or other casualty to the Minimum Improvements, litigation commenced by third
parties which, by injunction or other similar judicial action, directly results in delays, or acts of
any federal, state or local governmental unit (other than the City in exercising its rights under
this Agreement) which directly result in delays. Unavoidable Delays shall not include delays in
the Developer’s obtaining of permits or governmental approvals necessary to enable construction
of the Minimum Improvements by the dates such approval and construction is required under
Sections 4.2 and 4.3 of this Agreement.
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405588v4 MNI AL141-57 5
ARTICLE II
Representations and Warranties
Section 2.1. Representations by the City. The City makes the following representations
as the basis for the undertaking on its part herein contained:
(a) The City is a statutory city duly organized and existing under the laws of the
State. Under the provisions of the Municipal Development Act, the City has the power to enter
into this Agreement and carry out its obligations hereunder.
(b) The activities of the City are undertaken to foster the development of certain real
property which for a variety of reasons is presently underutilized, to create increased tax base
and employment in the City, and to stimulate further development of the Development District as
a whole.
(c) The Development Property is currently zoned I1, and the Minimum
Improvements conform to the permitted land uses allowed within this zoning classification.
(d) The Development Property is not subject to any pending condemnation by the
City, and to the best of the City’s knowledge there are no other pending proceedings that would
prevent use of the Development Property by Developer in accordance with this Agreement.
Section 2.2. Representations and Warranties by the Developer. The Developer
represents and warrants that:
(a) The Developer is a limited partnership duly organized and in good standing under
the laws of the State, is duly authorized to transact business within the State, has power to enter
into this Agreement and has duly authorized the execution, delivery and performance of this
Agreement by proper action of its members.
(b) The Developer will construct, operate and maintain the Minimum Improvements
in accordance with the terms of this Agreement, the Development Plan and all local, state and
federal laws and regulations (including, but not limited to, environmental, zoning, building code
and public health laws and regulations).
(c) The Developer has received no notice or communication from any local, state or
federal official that the activities of the Developer or the City in the Development District may
be or will be in violation of any environmental law or regulation (other than those notices or
communications of which the City is aware). The Developer is aware of no facts the existence of
which would cause it to be in violation of or give any person a valid claim under any local, state
or federal environmental law, regulation or review procedure.
(d) The Developer will construct the Minimum Improvements in accordance with all
local, state or federal energy-conservation laws or regulations.
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405588v4 MNI AL141-57 6
(e) The Developer will obtain, in a timely manner, all required permits, licenses and
approvals, and will meet, in a timely manner, all requirements of all applicable local, state and
federal laws and regulations which must be obtained or met before the Minimum Improvements
may be lawfully constructed.
(f) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of,
the terms, conditions or provisions of any partnership or company restriction or any evidences 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.
(g) The proposed development by the Developer hereunder would not occur but for
the tax increment financing assistance being provided by the City hereunder.
(h) The Developer is not currently in default under any business subsidy agreement
with any grantor, as such terms are defined in the Business Subsidy Act.
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ARTICLE III
Status of Property; Financing of Public Development Costs
Section 3.1. Status of the Development Property. As of the date of this Agreement, the
Developer owns certain property in the City, as described in Schedule A (the “Development
Property”). The City has no obligation to acquire any portion of the Development Property.
Section 3.2. Public Development Costs. In order to construct the Minimum
Improvements on the Development Property, the Developer shall incur certain costs for site
improvement, soil correction, and infrastructure improvements, including the payment of special
assessments levied against the Development Property (the “Public Development Costs”).
Section 3.3. Reimbursement of Public Development Costs. The City has determined
that, in order to make development of the Minimum Improvements financially feasible, it is
necessary to reimburse Developer for a portion of the cost of the Public Development Costs,
subject to the terms of this Section.
(a) Interfund Loan. In order to reimburse a portion of the Public Development Costs
incurred by Developer, the City shall advance the principal amount of $170,000, upon the
Developer having:
(i) delivered to the City one or more certificates signed by the Developer’s
duly authorized representative, containing the following: (i) a statement that each cost
identified in the certificate is a Public Development Cost as defined in this Agreement
and that no part of such cost has been included in any previous certification; (ii) evidence
that each identified Public Development Cost has been paid or incurred by or on behalf of
the Developer; and (iii) a statement that no uncured Event of Default by the Developer
has occurred and is continuing under the Agreement. The City may, if not satisfied that
the conditions described herein have been met, return any certificate with a statement of
the reasons why it is not acceptable and requesting such further documentation or
clarification as the City may reasonably require; and
(ii) submitted and obtained City approval of financing in accordance with
Section 7.1.
The City will treat the advance described in paragraph (a) as an interfund loan (the
“Interfund Loan”) within the meaning of Section 469.178, Subdivision 7 of the TIF Act. The
total original principal amount of the Interfund Loan is $170,000. The terms of the Interfund
Loan are described in the resolution attached as Schedule B (the “Loan Resolution”). The City
will pledge Available Tax Increment, as defined in the Interfund Loan Resolution, to payment of
the Interfund Loan. The Developer shall have no right to any Available Tax Increment pledged
to repayment of the Interfund Loan.
(b) Note. (i) Conditions for Delivery of Note. To further reimburse the special
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assessments portion of the Public Development Costs incurred by Developer, the City shall issue
and the Developer shall purchase the Note in the maximum principal amount of $140,000. The
parties agree that the consideration for the Note is the continuing obligation of the Developer to pay
the special assessments portion of the Public Development Costs. The City shall issue and deliver
the Note upon Developer having satisfied the conditions provided in Section 3.3(a) hereof for
delivery of the Interfund Loan advance (provided that the Developer must provide from time to time
one or more additional certificates evidencing payment of the special assessments portion of the
Public Development Costs, up to the aggregate principal amount of $140,000) and additionally
having delivered to the City an investment letter in a form reasonably satisfactory to the City.
(ii) Terms of Note. The terms of the Note will be substantially those set forth in
the form of the Note shown in Schedule C, and the Note will be subject to all terms of the
Authorizing Resolution, which are incorporated herein by reference. The parties expressly
agree that the Note shall be subordinate to the Interfund Loan.
(iii) Termination of right to Note. Notwithstanding anything to the contrary in
this Agreement, if the conditions for delivery of the Note are not met by the date of
required completion of the Minimum Improvements under Section 4.3, the City’s
obligation to deliver the Note shall terminate; provided that the remainder of this
Agreement shall remain in full force and effect.
(c) Qualifications. The Developer understands and acknowledges that the City
makes no representations or warranties regarding the amount of Available Tax Increment, or that
revenues pledged to the Interfund Loan and Note will be sufficient to pay the maximum
aggregate principal amount of the Interfund Loan and Note. Developer further acknowledges
that estimates of Tax Increment prepared by the City or its financial advisors in connection with
the TIF District or this Agreement are for the benefit of the City, and are not intended as
representations on which the Developer may rely. If the Public Development Costs exceed the
maximum aggregate principal amount of the Interfund Loan and Note, such excess is the sole
responsibility of Developer.
Section 3.4. Business Subsidy Agreement. The provisions of this Section constitute the
“business subsidy agreement” for the purposes of the Business Subsidy Act.
(a) General Terms. The parties agree and represent to each other as follows:
(1) The subsidy provided to the Developer consists of the reimbursement of Public
Development Costs for the Development Property in a total amount not to exceed $310,000,
as described in Section 3.3.
(2) The public purposes of the subsidy are to facilitate development of the City’s
industrial park, increase net jobs in the City and the State, and increase the tax base of the
City and the State.
(3) The goals for the subsidy are: to secure development of the Minimum
Improvements on the Development Property; to maintain such improvements as a
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405588v4 MNI AL141-57 9
manufacturing facility for the time period described in clause (6) below; and to create the
jobs and wage levels in accordance with Section 3.4(b) hereof.
(4) If the goals described in clause (3) are not met, the Developer must make the
payments to the City described in Section 3.4(c).
(5) The subsidy is needed to induce Developer to expand its business at this site,
and to mitigate the cost of assessments for public infrastructure, all as determined by the
City upon approval of the TIF Plan.
(6) The Developer must continue operation of the Minimum Improvements as a
“Qualified Facility” for at least five years after the Benefit Date (defined hereinafter),
subject to the continuing obligation described in Section 10.3 of this Agreement. The term
Qualified Facility means a distribution, warehouse or manufacturing facility, including
office space necessary for and related to those activities, all within the meaning of Section
469.176, subd. 4c of the TIF Act. The improvements will be a Qualified Facility as long as
the Minimum Improvements are operated by Developer or a tenant for the aforementioned
qualified uses. During any period when the Minimum Improvements are vacant and not
operated for the aforementioned qualified uses, the Minimum Improvements will not
constitute a Qualified Facility.
(7) The Developer does not have a parent corporation.
(8) The Developer has not received, and does not expect to receive, financial
assistance from any other “grantor” as defined in the Business Subsidy Act, in connection
with the Development Property or the Minimum Improvements.
(b) Job and Wage Goals. The “Benefit Date” of the assistance provided in this Agreement
is the earlier of the date of issuance of a certificate of completion for the Minimum Improvements or
the date the Minimum Improvements are occupied by Developer or a tenant of Developer. Within
two years after the Benefit Date (the “Compliance Date”), the Developer or tenant of Developer
shall (i) create at least 4 new full-time equivalent jobs on the Development Property, and (ii) cause
the average hourly wage of the 4 created jobs to be at least $14.00 per hour, exclusive of benefits.
Notwithstanding anything to the contrary herein, if the wage and job goals described in this
paragraph are met by the Compliance Date, those goals are deemed satisfied despite the
Developer’s continuing obligations under Sections 3.4(a)(6) and 3.4(d). The City may, after a
public hearing, extend the Compliance Date by up to one year, provided that nothing in this section
will be construed to limit the City’s legislative discretion regarding this matter.
(c) Remedies. If the Developer fails to meet the goals described in Section 3.4(a)(3), the
Developer shall repay to the City upon written demand from the City a “pro rata share” of the
Public Development Costs together with interest on that amount at the implicit price deflator as
defined in the Business Subsidy Act, accrued from the date of substantial completion of the
Minimum Improvements to the date of payment. The term “pro rata share” means percentages
calculated as follows:
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(i) if the failure relates to the number of jobs, the jobs required less the jobs created,
divided by the jobs required;
(ii) if the failure relates to wages, the number of jobs required less the number of
jobs that meet the required wages, divided by the number of jobs required;
(iii) if the failure relates to maintenance of the facility as a Qualified Facility in
accordance with Section 3.4(a)(6), 60 less the number of months of operation as a Qualified
Facility (where any month in which the Qualified Facility is in operation for at least 15 days
constitutes a month of operation), commencing on the Benefit Date and ending with the date
the Qualified Facility ceases operation as determined by the City Representative, divided by
60; and
(iv) if more than one of clauses (i) through (iii) apply, the sum of the applicable
percentages, not to exceed 100%.
Nothing in this Section shall be construed to limit the City’s remedies under Article IX
hereof. In addition to the remedy described in this Section and any other remedy available to the
City for failure to meet the goals stated in Section 3.4(a)(3), the Developer agrees and understands
that it may not a receive a business subsidy from the City or any grantor (as defined in the Business
Subsidy Act) for a period of five years from the date of the failure or until the Developer satisfies its
repayment obligation under this Section, whichever occurs first.
(d) Reports. The Developer must submit to the City a written report regarding business
subsidy goals and results by no later than February 1 of each year, commencing February 1, 2014
and continuing until the later of (i) the date the goals stated Section 3.4(a)(3) are met; (ii) 30 days
after expiration of the period described in Section 3.4(a)(6); or (iii) if the goals are not met, the date
the subsidy is repaid in accordance with Section 3.4(c). The report must comply with Section
116J.994, subdivision 7 of the Business Subsidy Act. The City will provide information to the
Developer regarding the required forms. If the Developer fails to timely file any report required
under this Section, the City will mail the Developer a warning within one week after the required
filing date. If, after 14 days of the postmarked date of the warning, the Developer fails to provide a
report, the Developer must pay to the City a penalty of $100 for each subsequent day until the report
is filed. The maximum aggregate penalty payable under this Section is $1,000.
Section 3.5. Payment of Administrative Costs. The parties agree that “Administrative
Costs,” will be paid from the City’s authorized administrative allowance of Tax Increment, and that
the Developer has no obligation to reimburse the City for such expenditures. For purposes of this
section, “Administrative Costs” means out of pocket costs incurred by the City together with staff
costs of the City, all attributable to or incurred in connection with the negotiation and preparation of
this Agreement, the TIF Plan, and other documents and agreements in connection with the
development of the Development Property.
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ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of Minimum Improvements. The Developer agrees that it will
construct the Minimum Improvements on the Development Property in accordance with the
approved Construction Plans and will operate and maintain, preserve and keep the Minimum
Improvements or cause the Minimum Improvements to be maintained, preserved and kept with
the appurtenances and every part and parcel thereof, in good repair and condition.
Section 4.2. Construction Plans. (a) Before commencement of construction of the
Minimum Improvements, the Developer shall submit to the City completed Construction Plans.
The Construction Plans shall provide for the construction of the Minimum Improvements and
shall be in conformity with the Development Plan, the TIF Plan, this Agreement, and all
applicable State and local laws and regulations. The City will approve the Construction Plans in
writing if: (i) the Construction Plans conform to the terms and conditions of this Agreement; (ii)
the Construction Plans conform to the goals and objectives of the Development Plan; (iii) the
Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and
regulations; (iv) the Construction Plans are adequate to provide for construction of the Minimum
Improvements; (v) the Construction Plans do not provide for expenditures in excess of the funds
available to the Developer for construction of the Minimum Improvements; and (vi) no Event of
Default has occurred. No approval by the City shall relieve the Developer of the obligation to
comply with the terms of this Agreement or of the Development Plan, applicable federal, state
and local laws, ordinances, rules and regulations, or to construct the Minimum Improvements in
accordance therewith. No approval by the City shall constitute a waiver of an Event of Default.
If approval of the Construction Plans is requested by the Developer in writing at the time of
submission, such Construction Plans shall be deemed approved unless rejected in writing by the
City, in whole or in part. Such rejections shall set forth in detail the reasons therefor, and shall
be made within 30 days after the date of their receipt by the City. If the City rejects any
Construction Plans in whole or in part, the Developer shall submit new or corrected Construction
Plans within 30 days after written notification to the Developer of the rejection. The provisions
of this Section relating to approval, rejection and resubmission of corrected Construction Plans
shall continue to apply until the Construction Plans have been approved by the City. The City’s
approval shall not be unreasonably withheld. Said approval shall constitute a conclusive
determination that the Construction Plans (and the Minimum Improvements, constructed in
accordance with said plans) comply to the City’s satisfaction with the provisions of this
Agreement relating thereto.
(b) If the Developer desires to make any material change in the Construction Plans
after their approval by the City, the Developer shall submit the proposed change to the City for
its approval. If the Construction Plans, as modified by the proposed change, conform to the
requirements of this Section 4.2 of this Agreement with respect to such previously approved
Construction Plans, the City shall approve the proposed change and notify the Developer in
writing of its approval. Such change in the Construction Plans shall, in any event, be deemed
approved by the City unless rejected, in whole or in part, by written notice by the City to the
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Developer, setting forth in detail the reasons therefor. Such rejection shall be made within ten
(10) days after receipt of the notice of such change. The City’s approval of any such change in
the Construction Plans will not be unreasonably withheld.
Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable
Delays, the Developer must commence construction of the Minimum Improvements by no later
than June 1, 2013. Subject to Unavoidable Delays, the Developer must substantially complete
construction of the Minimum Improvements by December 31, 2013. All work with respect to
the Minimum Improvements to be constructed or provided by the Developer on the Development
Property shall be in conformity with the Construction Plans as submitted by the Developer and
approved by the City. Notwithstanding anything to the contrary herein, Developer acknowledges
that the minimum market value of the Development Property specified in the Assessment
Agreement under Section 6.3 will be effective as of January 2, 2014, regardless of the state of
completion of the Minimum Improvements as of that date.
The Developer agrees for itself, its successors and assigns, and every successor in interest
to the Development Property, or any part thereof, that the Developer, and such successors and
assigns, shall promptly begin and diligently prosecute to completion the Development of the
Development Property through the construction of the Minimum Improvements thereon, and that
such construction shall in any event be commenced and completed within the period specified in
this Section 4.3 of this Agreement. Subsequent to conveyance of the Development Property, or
any part thereof, to the Developer, and until construction of the Minimum Improvements has
been completed, the Developer shall make reports, in such detail and at such times as may
reasonably be requested by the City, as to the actual progress of the Developer with respect to
such construction.
Section 4.4. Certificate of Completion. (a) Promptly after substantial completion of the
Minimum Improvements in accordance with those provisions of the Agreement relating solely to
the obligations of the Developer to construct the Minimum Improvements (including the dates
for beginning and completion thereof), the City will furnish the Developer with a Certificate of
Completion in substantially the form provided in Schedule D. Such certification by the City
shall be (and it shall be so provided in the deed and in the certification itself) a conclusive
determination of satisfaction and termination of the agreements and covenants in the Agreement
and in the deed with respect to the obligations of the Developer, and its successors and assigns,
to construct the Minimum Improvements and the dates for the beginning and completion thereof.
Such certification and such determination shall not constitute evidence of compliance with or
satisfaction of any obligation of the Developer to any Holder of a Mortgage, or any insurer of a
Mortgage, securing money loaned to finance the Minimum Improvements, or any part thereof.
(b) The certificate provided for in this Section 4.4 of this Agreement shall be in such
form as will enable it to be recorded in the proper office for the recordation of deeds and other
instruments pertaining to the Development Property. If the City shall refuse or fail to provide
any certification in accordance with the provisions of this Section 4.4 of this Agreement, the City
shall, within thirty (30) days after written request by the Developer, provide the Developer with a
written statement, indicating in adequate detail in what respects the Developer has failed to
complete the Minimum Improvements in accordance with the provisions of the Agreement, or is
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otherwise in default, and what measures or acts it will be necessary, in the opinion of the City,
for the Developer to take or perform in order to obtain such certification.
(c) The construction of the Minimum Improvements shall be deemed to be
substantially completed when the Developer has received a certificate of occupancy issued by
the City for the Minimum Improvements.
Section 4.5. Public Improvements. (a) The City has caused to be constructed certain
infrastructure improvements adjacent to the Development Property. These improvements
include streets, water, sewer and storm sewer utilities, and soil correction (such activities are
collectively referred to as the “Public Improvements”). The Public Improvements have been
constructed in accordance with plans and specifications approved by the City Council on file in
city hall.
(b) The Developer agrees and understands that the cost of Public Improvements has
been specially assessed against the Development Property by the City, and has consented to the
Special Assessments against the Development Property, amortized over a term of ten years
beginning in taxes payable year 2008.
(c) Notwithstanding anything apparently to the contrary in this Agreement, the
Developer is obligated to continue to pay the Special Assessments as they are levied against the
Development Property.
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ARTICLE V
Insurance
Section 5.1. Insurance. The Developer will provide and maintain at all times during the
process of constructing the Minimum Improvements an All Risk Broad Form Basis Insurance
Policy and, from time to time during that period, at the request of the City, furnish the City with
proof of payment of premiums on policies covering the following:
(i) Builder’s risk insurance, written on the so-called “Builder’s Risk --
Completed Value Basis,” in an amount equal to one hundred percent (100%) of the
insurable value of the Minimum Improvements at the date of completion, and with
coverage available in nonreporting form on the so-called “all risk” form of policy. The
interest of the City shall be protected in accordance with a clause in form and content
satisfactory to the City;
(ii) Comprehensive general liability insurance (including operations,
contingent liability, operations of subcontractors, completed operations and contractual
liability insurance) together with an Owner’s Policy with limits against bodily injury and
property damage of not less than $1,000,000 for each occurrence (to accomplish the
above-required limits, an umbrella excess liability policy may be used); and
(iii) Workers’ compensation insurance, with statutory coverage.
(b) Upon completion of construction of the Minimum Improvements and prior to the
Termination Date, the Developer shall maintain, or cause to be maintained, at its cost and expense,
and from time to time at the request of the City shall furnish proof of the payment of premiums on,
insurance as follows:
(i) Insurance against loss and/or damage to the Minimum Improvements under
a policy or policies covering such risks as are ordinarily insured against by similar
businesses.
(ii) Comprehensive general public liability insurance, including personal injury
liability (with employee exclusion deleted), against liability for injuries to persons and/or
property, in the minimum amount for each occurrence and for each year of $1,000,000, and
shall be endorsed to show the City as an additional insured.
(iii) Such other insurance, including workers' compensation insurance respecting
all employees of the Developer, in such amount as is customarily carried by like
organizations engaged in like activities of comparable size and liability exposure; provided
that the Developer may be self-insured with respect to all or any part of its liability for
workers' compensation.
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(c) All insurance required in Article V of this Agreement shall be taken out and
maintained in responsible insurance companies selected by the Developer that are authorized under
the laws of the State to assume the risks covered thereby. Upon request, the Developer will deposit
annually with the City policies evidencing all such insurance, or a certificate or certificates or
binders of the respective insurers stating that such insurance is in force and effect. Unless otherwise
provided in this Article V of this Agreement each policy shall contain a provision that the insurer
shall not cancel nor modify it in such a way as to reduce the coverage provided below the amounts
required herein without giving written notice to the Developer and the City at least 30 days before
the cancellation or modification becomes effective. In lieu of separate policies, the Developer may
maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage
required herein, in which event the Developer shall deposit with the City a certificate or certificates
of the respective insurers as to the amount of coverage in force upon the Minimum Improvements.
(d) The Developer agrees to notify the City immediately in the case of damage
exceeding $100,000 in amount to, or destruction of, the Minimum Improvements or any portion
thereof resulting from fire or other casualty. In such event the Developer will forthwith repair,
reconstruct, and restore the Minimum Improvements to substantially the same or an improved
condition or value as it existed prior to the event causing such damage and, to the extent necessary
to accomplish such repair, reconstruction, and restoration, the Developer will apply the net proceeds
of any insurance relating to such damage received by the Developer to the payment or
reimbursement of the costs thereof.
The Developer shall complete the repair, reconstruction and restoration of the Minimum
Improvements, regardless of whether the net proceeds of insurance received by the Developer for
such purposes are sufficient to pay for the same. Any net proceeds remaining after completion of
such repairs, construction, and restoration shall be the property of the Developer.
(e) Notwithstanding anything to the contrary contained in this Agreement, in the event
of damage to the Minimum Improvements in excess of $100,000 and the Developer fails to
complete any repair, reconstruction or restoration of the Minimum Improvements within three years
from the date of damage, the City may, at its option, terminate the Note as provided in Section 9.2
hereof. Notwithstanding such termination, the Developer’s obligations under Section 6.3 hereof
shall continue until the Termination Date.
(f) The Developer and the City agree that all of the insurance provisions set forth in this
Article V shall terminate upon the Termination Date.
Section 5.2. Subordination. Notwithstanding anything to the contrary contained in this
Article V, the rights of the City with respect to the receipt and application of any proceeds of
insurance shall, in all respects, be subject and subordinate to the rights of any lender under a
Mortgage approved pursuant to Article VII of this Agreement.
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ARTICLE VI
Delinquent Taxes and Review of Taxes
Section 6.1. Right to Collect Delinquent Taxes. Developer agrees for itself, its
successors and assigns, that in addition to the obligation pursuant to statute to pay real estate
taxes, it is also obligated by reason of this Agreement to pay before delinquency all real estate
taxes assessed against the Development Property and the Minimum Improvements. The
Developer acknowledges that this obligation creates a contractual right on behalf of the City
through the Termination Date to sue the Developer or its successors and assigns to collect
delinquent real estate taxes and any penalty or interest thereon and to pay over the same as a tax
payment to the county auditor. In any such suit in which the City is the prevailing party, the City
shall also be entitled to recover its costs, expenses and reasonable attorney fees.
Section 6.2. Review of Taxes. The Developer agrees that prior to the Termination Date
it will not cause a reduction in the real property taxes paid in respect of the Development
Property through: (a) willful destruction of the Development Property or any part thereof; or (b)
willful refusal to reconstruct damaged or destroyed property pursuant to Section 5.1 of this
Agreement, except as otherwise provided in Section 5.1(e). The Developer also agrees that it
will not, prior to the Termination Date, apply for a deferral of property tax on the Development
Property pursuant to any law, or transfer or permit transfer of the Development Property to any
entity whose ownership or operation of the property would result in the Development Property
being exempt from real estate taxes under State law (other than any portion thereof dedicated or
conveyed to the City or City in accordance with this Agreement).
Section 6.3. Assessment Agreement. (a) The Developer shall, with the City, execute an
Assessment Agreement pursuant to Minnesota Statutes, Section 469.177, subd. 8, specifying an
assessor's minimum Market Value for the Development Property and Minimum Improvements
constructed thereon. The amount of the minimum Market Value shall be $__________ as of
January 2, 2014 and each January 2 thereafter, notwithstanding the status of construction by such
dates.
(b) The Assessment Agreement shall be substantially in the form attached hereto as
Schedule E. 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 force for the period specified in the Assessment Agreement.
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ARTICLE VII
Financing
Section 7.1. Financing. (a) Before issuance of the Interfund Loan or Note, the Developer
shall submit to the City evidence of one or more commitments for mortgage financing which,
together with committed equity for such construction, is sufficient for the construction of the
Minimum Improvements. Such commitments may be submitted as short term financing, long
term mortgage financing, a bridge loan with a long-term take-out financing commitment, or any
combination of the foregoing. Such commitment or commitments for short term or long term
mortgage financing shall be subject only to such conditions as are normal and customary in the
mortgage banking industry.
(b) If the City finds that the mortgage financing is sufficiently committed and
adequate in amount to provide for the construction of the Minimum Improvements, then the City
shall notify the Developer in writing of its approval. Such approval shall not be unreasonably
withheld and either approval or rejection shall be given within thirty (30) days from the date
when the City is provided the evidence of financing. A failure by the City to respond to such
evidence of financing shall be deemed to constitute an approval hereunder. If the City rejects the
evidence of financing as inadequate, it shall do so in writing specifying the basis for the
rejection. In any event the Developer shall submit adequate evidence of financing within thirty
(30) days after such rejection. Approval of any subordination agreement under Section 7.3
hereof will constitute approval of financing for the purposes of this Section.
Section 7.2. City’s Option to Cure Default on Mortgage. In the event that there occurs a
default under any Mortgage authorized pursuant to Article VII of this Agreement, the Developer
shall cause the City to receive copies of any notice of default received by the Developer from the
holder of such Mortgage. Thereafter, the City shall have the right, but not the obligation, to cure
any such default on behalf of the Developer within such cure periods as are available to the
Developer under the Mortgage documents. In the event there is an event of default under this
Agreement, the City will transmit to the Holder of any Mortgage a copy of any notice of default
given by the City pursuant to Article IX of this Agreement.
Section 7.3. Subordination and Modification for the Benefit of Mortgagee. In order to
facilitate the Developer obtaining financing for construction of the Minimum Improvements
according to the Construction Plans, the City agrees to subordinate its rights under this
Agreement, provided that (a) such subordination shall be subject to such reasonable terms and
conditions as the City and Holder mutually agree in writing, (b) the City’s obligation to
subordinate is contingent on the City’s approval of the financing in accordance with Section 7.1
hereof, and (c) in no event will the City subordinate its rights under the Assessment Agreement
described in Section 6.3 hereof.
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ARTICLE VIII
Prohibitions Against Assignment and Transfer; Indemnification
Section 8.1. Representation as to Development. The Developer represents and agrees
that its purchase of the Development Property or portions thereof, and its other undertakings
pursuant to this Agreement, are, and will be used, for the purpose of Development of the
Development Property and not for speculation in land holding.
Section 8.2. Prohibition Against Developer’s Transfer of Property and Assignment of
Agreement. The Developer represents and agrees that until the Termination Date:
(a) Except only by way of security for, and only for, the purpose of obtaining
financing necessary to enable the Developer or any successor in interest to the Development
Property, or any part thereof, to perform its obligations with respect to making the Minimum
Improvements under this Agreement, and any other purpose authorized by this Agreement, the
Developer has not made or created and will not make or create or suffer to be made or created
any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in
any other mode or form of or with respect to the Agreement or the Development Property or any
part thereof or any interest therein, or any contract or agreement to do any of the same, without
the prior written approval of the City unless the Developer remains liable and bound by this
Development Agreement in which event the City’s approval is not required. Any such transfer
shall be subject to the provisions of this Agreement.
(b) In the event the Developer, upon transfer or assignment of the Development
Property or any portion thereof, seeks to be released from its obligations under this Development
Agreement as to the portions of the Development Property that is transferred or assigned, the
City shall be entitled to require, except as otherwise provided in the Agreement, as conditions to
any such release that:
(i) Any proposed transferee shall have the qualifications and financial
responsibility, in the reasonable judgment of the City, necessary and adequate to fulfill
the obligations undertaken in this Agreement by the Developer as to the portion of the
Development Property to be transferred.
(ii) Any proposed transferee, by instrument in writing satisfactory to the City
and in form recordable among the land records, shall, for itself and its successors and
assigns, and expressly for the benefit of the City, have expressly assumed all of the
obligations of the Developer under this Agreement as to the portion of the Development
Property to be transferred and agreed to be subject to all the conditions and restrictions to
which the Developer is subject as to such portion; provided, however, that the fact that
any transferee of, or any other successor in interest whatsoever to, the Development
Property, or any part thereof, shall not, for whatever reason, have assumed such
obligations or so agreed, and shall not (unless and only to the extent otherwise
specifically provided in this Agreement or agreed to in writing by the City) deprive the
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City of any rights or remedies or controls with respect to the Development Property or
any part thereof or the construction of the Minimum Improvements; it being the intent of
the parties as expressed in this Agreement that (to the fullest extent permitted at law and
in equity and excepting only in the manner and to the extent specifically provided
otherwise in this Agreement) no transfer of, or change with respect to, ownership in the
Development Property or any part thereof, or any interest therein, however consummated
or occurring, and whether voluntary or involuntary, shall operate, legally or practically, to
deprive or limit the City of or with respect to any rights or remedies on controls provided
in or resulting from this Agreement with respect to the Minimum Improvements that the
City would have had, had there been no such transfer or change. In the absence of
specific written agreement by the City to the contrary, no such transfer or approval by the
City thereof shall be deemed to relieve the Developer, or any other party bound in any
way by this Agreement or otherwise with respect to the construction of the Minimum
Improvements, from any of its obligations with respect thereto.
(iii) Any and all instruments and other legal documents involved in effecting
the transfer of any interest in this Agreement or the Development Property governed by
this Article VIII, shall be in a form reasonably satisfactory to the City.
In the event the foregoing conditions are satisfied then the Developer shall be released from its
obligation under this Agreement, as to the portion of the Development Property that is
transferred, assigned or otherwise conveyed.
Section 8.3. Release and Indemnification Covenants. (a) The Developer releases from
and covenants and agrees that the City and the governing body members, officers, agents,
servants and employees thereof shall not be liable for and agrees to indemnify and hold harmless
the City and the governing body members, officers, agents, servants and employees thereof
against any loss or damage to property or any injury to or death of any person occurring at or
about or resulting from any defect in the Minimum Improvements.
(b) Except for any willful misrepresentation or any willful or wanton misconduct of
the following named parties, the Developer agrees to protect and defend the City and the
governing body members, officers, agents, servants and employees thereof, now or 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
this Agreement, or the transactions contemplated hereby or the acquisition, construction,
installation, ownership, and operation of the Minimum Improvements.
(c) The City and the governing body members, officers, agents, servants and
employees thereof shall not be liable for any damage or injury to the persons or property of the
Developer or its officers, agents, servants or employees or any other person who may be about
the Development Property or Minimum Improvements due to any act of negligence of any
person.
(d) All covenants, stipulations, promises, agreements and obligations of the City
contained herein shall be deemed to be the covenants, stipulations, promises, agreements and
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obligations of the City and not of any governing body member, officer, agent, servant or
employee of the City in the individual capacity thereof.
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405588v4 MNI AL141-57 21
ARTICLE IX
Events of Default
Section 9.1. Events of Default Defined. The following shall be “Events of Default”
under this Agreement and the term “Event of Default” shall mean, whenever it is used in this
Agreement (unless the context otherwise provides):
(a) any failure by any party to observe or perform any other covenant, condition,
obligation or agreement on its part to be observed or performed under this Agreement or under
any other agreement entered into between the Developer and the City or City in connection with
development of the Development Property; and
(b) any default by Developer under a Mortgage, if any.
Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section
9.1 of this Agreement occurs, the non-defaulting party may exercise its rights under this Section
9.2 after providing thirty days written notice to the defaulting party of the Event of Default, but
only if the Event of Default has not been cured within said thirty days or, if the Event of Default
is by its nature incurable within thirty days, the defaulting party does not provide assurances
reasonably satisfactory to the non-defaulting party that the Event of Default will be cured and
will be cured as soon as reasonably possible:
(a) Suspend its performance under the Agreement until it receives assurances that the
defaulting party will cure its default and continue its performance under the Agreement.
(b) Cancel and rescind or terminate the Agreement and/or the Note.
(c) Take whatever action, including legal, equitable or administrative action, which
may appear necessary or desirable to collect any payments due under this Agreement, or to
enforce performance and observance of any obligation, agreement, or covenant under this
Agreement.
(d) Notwithstanding anything to the contrary herein, in the case of defaults by
Developer described in Section 3.4, the City has the additional remedies specified therein,
subject to the qualification described in Section 10.3.
Section 9.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the
City or Developer is intended to be exclusive of any other available remedy or remedies, but
each and every such remedy shall be cumulative and shall be in addition to every other remedy
given under this Agreement or now or hereafter existing at law or in equity or by statute. No
delay or omission to exercise any right or power accruing upon any default shall impair any such
right or power or shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient. In order to entitle the
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405588v4 MNI AL141-57 22
City to exercise any remedy reserved to it, it shall not be necessary to give notice, other than
such notice as may be required in this Article IX.
Section 9.4. No Additional Waiver Implied by One Waiver. In the event any agreement
contained in this Agreement should be breached by either party and thereafter waived by the
other party, such waiver shall be limited to the particular breach so waived and shall not be
deemed to waive any other concurrent, previous or subsequent breach hereunder.
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405588v4 MNI AL141-57 23
ARTICLE X
Additional Provisions
Section 10.1. Conflict of Interests; City Representatives Not Individually Liable. The
City and the Developer, to the best of their respective knowledge, represent and agree that no
member, official, or employee of the City shall have any personal interest, direct or indirect, in
the Agreement, nor shall any such member, official, or employee participate in any decision
relating to the Agreement which affects his personal interests or the interests of any corporation,
partnership, or association in which he is, directly or indirectly, interested. No member, official,
or employee of the City shall be personally liable to the Developer, or any successor in interest,
in the event of any default or breach by the City or City or for any amount which may become
due to the Developer or successor or on any obligations under the terms of the Agreement.
Section 10.2. Equal Employment Opportunity. The Developer, for itself and its
successors and assigns, agrees that during the construction of the Minimum Improvements
provided for in the Agreement it will comply with all applicable federal, state and local equal
employment and non-discrimination laws and regulations.
Section 10.3. Restrictions on Use. The Developer agrees that until the Termination Date,
the Developer, and such successors and assigns, shall use the Development Property and the
Minimum Improvements thereon only as a Qualified Facility, provided that after expiration of
the five-year period described in Section 3.4(c), the repayment remedy described in Section
3.4(d) may not be imposed on Developer for default under this Section, and City is limited to any
other remedies available under Article IX hereof. Further, until the Termination Date the
Developer shall not discriminate upon the basis of race, color, creed, sex or national origin in the
sale, lease, or rental or in the use or occupancy of the Development Property or any
improvements erected or to be erected thereon, or any part thereof.
Section 10.4. Provisions Not Merged With Deed. None of the provisions of this
Agreement are intended to or shall be merged by reason of any deed transferring any interest in
the Development Property and any such deed shall not be deemed to affect or impair the
provisions and covenants of this Agreement.
Section 10.5. Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of the Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 10.6. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand, or other communication under the Agreement by either party to
the 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
(a) in the case of the Developer, is addressed to or delivered personally to the
Developer at Fraser Building Limited Partnership, 16455 Ringer Road, Wayzata, MN 55391;
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405588v4 MNI AL141-57 24
and
(b) in the case of the City, is addressed to or delivered personally to the City at City
of Albertville, 5959 Main Avenue NE, P.O. Box 9, Albertville, Minnesota 55301, Attn: City
Administrator; or at such other address with respect to either such party as that party may, from
time to time, designate in writing and forward to the other as provided in this Section.
Section 10.7. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
Section 10.8. Recording. The City may record this Agreement and any amendments
thereto with the County recorder. The Developer shall pay all costs for recording.
Section 10.9. Amendment. This Agreement may be amended only by written agreement
approved by the City and the Developer.
Section 10.10. City Approvals. Unless otherwise specified, any approval required by the
City under this Agreement may be given by the City Representative.
Section 10.11. Termination. This Agreement terminates on the Termination Date. Within
30 days after the Termination Date, the City will deliver to Developer a written release in recordable
form satisfactory to Developer, evidencing termination of this Agreement.
Section 10.12. Choice of Law and Venue. This Agreement shall be governed by and
construed in accordance with the laws of the state of Minnesota. Any disputes, controversies, or
claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and
all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based
on convenience or otherwise.
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S-1
405588v4 MNI AL141-57
IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its
name and behalf and its seal to be hereunto duly affixed and the Developer has caused this
Agreement to be duly executed in its name and behalf on or as of the date first above written.
CITY OF ALBERTVILLE, MINNESOTA
By
Its Mayor
By
Its City Administrator
STATE OF MINNESOTA )
) SS.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this ____ day of _____________
2013, by _______________ and ________________, the Mayor and City Administrator of the
City of Albertville, Minnesota, a Minnesota municipal corporation, on behalf of the City.
Notary Public
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S-2
405588v4 MNI AL141-57
FRASER BUILDING LIMITED PARTNERSHIP
By
Its
STATE OF ______________)
) SS.
COUNTY OF __________ )
The foregoing instrument was acknowledged before me this _____ day of
____________, 2013 by _____________________, the ___________ of Fraser Building Limited
Partnership, a Minnesota limited partnership, on behalf of the partnership.
Notary Public
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405588v4 MNI AL141-57 A-1
SCHEDULE A
DESCRIPTION OF DEVELOPMENT PROPERTY
Lot 1, Block 1, Barthel’s Industrial Park 2nd Addition, Wright County, Minnesota.
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405588v4 MNI AL141-57 B-1
SCHEDULE B
INTERFUND LOAN RESOLUTION
RESOLUTION NO. ____
AUTHORIZING INTERFUND LOAN FOR
ADVANCE OF CERTAIN COSTS
IN CONNECTION WITH TAX INCREMENT
FINANCING DISTRICT NO. 14
BE IT RESOLVED By the City Council of the City of Albertville, Minnesota (the “City”)
as follows:
Section 1. Background.
1.01. The City has established Tax Increment Financing District No. 14 (the “TIF
District”) within Municipal Development District No. 1 (the "Development District") pursuant to
Minnesota Statutes, Sections 469.174 to 469.179, as amended (the “TIF Act”) and Sections
469.124 to 469.134, as amended (the “Municipal Development Act”).
1.02. The City may incur certain costs related to the TIF District, which costs may be
financed on a temporary basis from available City funds.
1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the City is authorized to
advance or loan money from any fund from which such advances may be legally made in order
to finance expenditures that are eligible to be paid with tax increments under the TIF Act.
1.04. The City proposes to enter into a Contract for Private Development (the
“Contract”) with Fraser Building Limited Partnership (the “Developer”), under which the City
advance the principal sum of $170,000 to the Developer to reimburse the Developer for Public
Development Costs, as defined in the Contract (the “Public Development Costs Advance”), and
will reimburse itself for the Public Development Costs Advance with tax increments from the
TIF District when generated.
1.05. The City hereby designates the Public Development Costs Advance as an
interfund loan in accordance with the terms of this resolution and the TIF Act.
Section 2. Repayment of Interfund Loan.
2.01. The City will reimburse itself for the Public Development Costs Advance in an
aggregate principal amount of $170,000, together with interest at the rate of 3.0% per annum (the
“Interfund Loan”). Interest accrues on the principal amount from the date of such advance (the
“Loan Date”). The interest rate is no more than the greatest of the rate specified under
Minnesota Statutes, Section 270C.40 and Section 549.09, both in effect for calendar year 2013,
and will not be adjusted.
2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi-
annually on each August 1 and February 1 (each a “Payment Date”), commencing on the first
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Payment Date on which the City has Available Tax Increment (defined below), or on any other
dates determined by the City Administrator, through the date of last receipt of tax increment
from the TIF District.
2.03. Payments on the Interfund Loan will be made solely from Available Tax
Increment, defined as tax increment from the TIF District received by the City from Wright
County in the six-month period before any Payment Date, less any amounts determined by the
City to be applied toward administrative expenses in accordance with the TIF Act. Payments
shall be applied first to accrued interest, and then to unpaid principal. Interest accruing from the
Loan Date will be compounded semiannually on February 1 and August 1 of each year and
added to principal until the first Payment Date, unless otherwise specified by the City
Administrator. Available Tax Increment shall be applied to payment on the Interfund Loan and
administrative costs and for no other purpose until the Interfund Loan is fully paid or forgiven as
provided in Section 2.06 hereof.
2.04. The principal sum and all accrued interest payable under this resolution is pre-
payable in whole or in part at any time by the City without premium or penalty.
2.05. This resolution is evidence of an internal borrowing by the City in accordance
with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely
from Available Tax Increment pledged to the payment hereof under this resolution. The
Interfund Loan shall not be deemed to constitute a general obligation of the State of Minnesota
or any political subdivision thereof, including, without limitation, the City. Neither the State of
Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or
interest on the Interfund Loan or other costs incident hereto except out of Available Tax
Increment. The City shall have no obligation to pay any principal amount of the Interfund Loan
or accrued interest thereon, which may remain unpaid after the final Payment Date.
2.06. The City may at any time make a determination to forgive the outstanding
principal amount and accrued interest on the Interfund Loan to the extent permissible under law.
2.07. The City may f rom time to time amend the terms of this Resolution to the extent
permitted by law, including without limitation amendment to the payment schedule and the
interest rate; provided that the interest rate may not be increased above the maximum specified in
Section 469.178. subd. 7 of the TIF Act.
Section 3. Effective Date. This resolution is effective upon execution in full of the
Contract.
Adopted this __ day of February, 2013.
_____________________________
Mayor
ATTEST:
City Clerk
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SCHEDULE C
AUTHORIZING RESOLUTION
CITY OF ALBERTVILLE
RESOLUTION NO. ______
RESOLUTION AWARDING THE SALE OF, AND
PROVIDING THE FORM, TERMS, COVENANTS AND
DIRECTIONS FOR THE ISSUANCE OF ITS TAX
INCREMENT REVENUE NOTE TO FRASER BUILDING
LIMITED PARTNERSHIP.
BE IT RESOLVED BY the City Council ("Council") of the City of Albertville, Albertville,
Minnesota (the "City") as follows:
Section 1. Authorization; Award of Sale.
1.01. Authorization. The City of Albertville has heretofore approved the establishment of
its Tax Increment Financing District No. 14 (the "TIF District") within Municipal Development
District No. 1 ("Development District"), and has adopted a tax increment financing plan for the
purpose of financing certain improvements within the Development District.
Pursuant to Minnesota Statutes, Section 469.178, the City is authorized to issue and sell its
bonds for the purpose of financing a portion of the public development costs of the Development
District. Such bonds are payable from all or any portion of revenues derived from the TIF District
and pledged to the payment of the bonds. The City hereby finds and determines that it is in the best
interests of the City that it issue and sell its Tax Increment Revenue Note, Series 20__ (the "Note")
for the purpose of financing certain public development costs of the Development District.
1.02. Issuance, Sale, and Terms of the Note. (a) The City hereby authorizes the Mayor
and City Administrator to issue the Note in accordance with the Contract for Private
Development dated as of __________, 2013, between the City and Fraser Building Limited
Partnership (the “Agreement”), and approved on __________, 2013 by the City. All capitalized
terms in this resolution have the meaning provided in the Agreement unless the context requires
otherwise.
(b) The Note shall be issued in the maximum aggregate principal amount of $140,000 to
Fraser Building Limited Partnership (the "Owner") in consideration of certain eligible costs incurred
by the Owner under the Agreement, shall be dated the date of delivery thereof, and shall not bear
interest. The Note will be issued in a single series designated Series 20__A (such year to be the
year of issue), issued in the principal amount of $140,000 to reimburse the Developer for Public
Development Costs in accordance with Section 3.3(b) of the Agreement. The Note is secured by
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Available Tax Increment, subordinate to the pledge of Available Tax Increment to the Interfund
Loan described in Section 3.3(a) of the Agreement, as further described in the form of the Note
herein. The City hereby delegates to the Finance Director the determination of the date on which
the Note is to be delivered, in accordance with the Agreement.
Section 2. Form of Note. The Note shall be in substantially the following form, with
the blanks to be properly filled in and the principal amount adjusted as of the date of issue:
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UNITED STATE OF AMERICA
STATE OF MINNESOTA
COUNTY OF WRIGHT
CITY OF ALBERTVILLE
No. R-1 $_____________
TAX INCREMENT REVENUE NOTE
SERIES 20__
Date
Rate of Original Issue
0%
The City of Albertville (“City”) for value received, certifies that it is indebted and hereby
promises to pay to Fraser Building Limited Partnership or registered assigns (the "Owner"), the
principal sum of $140,000, solely from the sources and to the extent set forth herein. This Note
shall not bear interest. Capitalized terms shall have the meanings provided in the Contract for
Private Development between the City and the Owner, dated as of __________, 2013 (the
"Agreement"), unless the context requires otherwise.
1. Payments. Principal payments ("Payments") shall be paid on August 1, 20__ and
each February 1 and August 1 thereafter to and including February 1, 2024 ("Payment Dates") in the
amounts and from the sources set forth in Section 3 herein.
Payments are payable by mail to the address of the Owner or such other address as the
Owner may designate upon 30 days written notice to the City. Payments on this Note are payable in
any coin or currency of the United States of America which, on the Payment Date, is legal tender
for the payment of public and private debts.
2. Interest. This Note shall not bear interest.
3. Available Tax Increment. (a) Payments on this Note are payable on each Payment
Date solely from and in the amount of Available Tax Increment, which shall mean 90% of the Tax
Increment attributable to the Minimum Improvements and Development Property that is paid to the
City by Wright County in the six months preceding each Payment Date on the Note and remains on
hand on such Payment Date after payment or provision for payment of the Interfund Loan, pursuant
to Section 3.3 of the Agreement.
(b) The pledge of Available Tax Increment hereunder is subordinate to the pledge of
Available Tax Increment to the Interfund Loan as and to the extent described in this section. The
City shall have no obligation to pay principal of this Note on each Payment Date from any source
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other than Available Tax Increment and the failure of the City to make Payments on any Payment
Date shall not constitute a default hereunder as long as the City pays principal hereof to the extent of
Available Tax Increment. The City shall have no obligation to pay any unpaid balance of principal
that may remain after the final Payment on February 1, 2024.
4. Default. If on any Payment Date there has occurred and is continuing any Event of
Default under the Agreement, the City may withhold from payments hereunder all Available Tax
Increment. If the Event of Default is thereafter cured in accordance with the Agreement, the
Available Tax Increment withheld under this Section shall be deferred and paid, without interest
thereon, within 30 days after the Event of Default is cured. If the Event of Default is not cured in a
timely manner, the City may terminate this Note by written notice to the Owner in accordance with
the Agreement.
5. Prepayment. The principal sum payable under this Note is prepayable in whole or in
part at any time by the City without premium or penalty. No partial prepayment shall affect the
amount or timing of any other regular Payment otherwise required to be made under this Note.
6. Nature of Obligation. This Note is one of an issue in the total principal amount of
$_________________, issued to aid in financing certain public development costs of a
Development District undertaken by the City pursuant to Minnesota Statutes, Sections 469.124
through 469.134, and is issued pursuant to an authorizing resolution (the "Resolution") duly adopted
by the City on ________, 20__, and pursuant to and in full conformity with the Constitution and
laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.1799, as
amended. This Note is a limited obligation of the City which is payable solely from Available Tax
Increment pledged to the payment hereof under the Resolution. This Note shall not be deemed to
constitute a general obligation of the State of Minnesota or any political subdivision thereof,
including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision
thereof shall be obligated to pay the principal of this Note or other costs incident hereto except out
of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of
Minnesota or any political subdivision thereof is pledged to the payment of the principal of this
Note or other costs incident hereto.
7. Registration and Transfer. This Note is issuable only as a fully registered note
without coupons. As provided in the Resolution, and subject to certain limitations set forth therein,
this Note is transferable upon the books of the City kept for that purpose at the principal office of
the City Finance Director, by the Owner hereof in person or by such Owner's attorney duly
authorized in writing, upon surrender of this Note together with a written instrument of transfer
satisfactory to the City, duly executed by the Owner. Upon such transfer or exchange and the
payment by the Owner of any tax, fee, or governmental charge required to be paid by the City with
respect to such transfer or exchange, there will be issued in the name of the transferee a new Note of
the same aggregate principal amount, bearing interest at the same rate and maturing on the same
dates.
Except as otherwise provided in Section 3.3(c) of the Agreement, this Note shall not be
transferred to any person or entity, unless the City has provided written consent to such transfer and
the City has been provided with an opinion of counsel or a certificate of the transferor, in a form
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satisfactory to the City, that such transfer is exempt from registration and prospectus delivery
requirements of federal and applicable state securities laws.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required
by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be
performed in order to make this Note a valid and binding limited obligation of the City according to
its terms, have been done, do exist, have happened, and have been performed in due form, time and
manner as so required.
IN WITNESS WHEREOF, the City Council of the City of Albertville has caused this Note
to be executed with the manual signatures of its Mayor and City Administrator, all as of the Date of
Original Issue specified above.
CITY OF ALBERTVILLE
City Administrator Mayor
REGISTRATION PROVISIONS
The ownership of the unpaid balance of the within Note is registered in the bond register of
the City Finance Director, in the name of the person last listed below.
Date of Signature of
Registration Registered Owner____ City Finance Director
Fraser Building Limited Partnership
Federal Tax I.D. No. _____________
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Section 3. Terms, Execution and Delivery.
3.01. Denomination, Payment. The Note shall be issued as a single typewritten note
numbered R-1.
The Note shall be issuable only in fully registered form. Principal of the Note shall be
payable by check or draft issued by the Registrar described herein.
3.02. Dates. Principal of the Note shall be payable by mail to the owner of record thereof
as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or
not such day is a business day.
3.03. Registration. The City hereby appoints the City Finance Director to perform the
functions of registrar, transfer agent and paying agent (the "Registrar"). The effect of registration
and the rights and duties of the City and the Registrar with respect thereto shall be as follows:
(a) Register. The Registrar shall keep at its office a bond register in which the Registrar
shall provide for the registration of ownership of the Note and the registration of transfers and
exchanges of the Note.
(b) Transfer of Note. Upon surrender for transfer of the Note duly endorsed by the
registered owner thereof or accompanied by a written instrument of transfer, in form reasonably
satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly
authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the
name of the designated transferee or transferees, a new Note of a like aggregate principal amount
and maturity, as requested by the transferor. Notwithstanding the foregoing, the Note shall not be
transferred to any person other than an affiliate, or other related entity, of the Owner unless the City
has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory
to the City, that such transfer is exempt from registration and prospectus delivery requirements of
federal and applicable state securities laws. The Registrar may close the books for registration of
any transfer after the fifteenth day of the month preceding each Payment Date and until such
Payment Date.
(c) Cancellation. The Note surrendered upon any transfer shall be promptly cancelled
by the Registrar and thereafter disposed of as directed by the City.
(d) Improper or Unauthorized Transfer. When the Note is presented to the Registrar for
transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on
such Note or separate instrument of transfer is legally authorized. The Registrar shall incur no
liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or
unauthorized.
(e) Persons Deemed Owners. The City and the Registrar may treat the person in whose
name the Note is at any time registered in the bond register as the absolute owner of the Note,
whether the Note shall be overdue or not, for the purpose of receiving payment of, or on account of,
the principal of such Note and for all other purposes, and all such payments so made to any such
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405588v4 MNI AL141-57
registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the
liability of the City upon such Note to the extent of the sum or sums so paid.
(f) Taxes, Fees and Charges. For every transfer or exchange of the Note, the Registrar
may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee,
or other governmental charge required to be paid with respect to such transfer or exchange.
(g) Mutilated, Lost, Stolen or Destroyed Note. In case any Note shall become mutilated
or be lost, stolen, or destroyed, the Registrar shall deliver a new Note of like amount, maturity dates
and tenor in exchange and substitution for and upon cancellation of such mutilated Note or in lieu of
and in substitution for such Note lost, stolen, or destroyed, upon the payment of the reasonable
expenses and charges of the Registrar in connection therewith; and, in the case the Note lost, stolen,
or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Note was lost,
stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an
appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the
City and the Registrar shall be named as obligees. The Note so surrendered to the Registrar shall be
cancelled by it and evidence of such cancellation shall be given to the City. If the mutilated, lost,
stolen, or destroyed Note has already matured or been called for redemption in accordance with its
terms, it shall not be necessary to issue a new Note prior to payment.
3.04. Preparation and Delivery. The Note shall be prepared under the direction of the City
Finance Director and shall be executed on behalf of the City by the signatures of its Mayor and
Administrator. In case any officer whose signature shall appear on the Note shall cease to be such
officer before the delivery of the Note, such signature shall nevertheless be valid and sufficient for
all purposes, the same as if such officer had remained in office until delivery. When the Note has
been so executed, it shall be delivered by the City Administrator to the Owner thereof in accordance
with the Agreement.
Section 4. Security Provisions.
4.01. Pledge. The City hereby pledges to the payment of the principal of the Note all
Available Tax Increment as defined in the Note, on a subordinate basis to the pledge of Available
Tax Increment to the payment of principal of and interest on the Interfund Loan in accordance with
the Agreement.
Available Tax Increment shall be applied to payment of the principal of the Note in accordance with
the terms of the form of Note set forth in Section 2 of this resolution.
4.02. Bond Fund. Until the date the Note is no longer outstanding and no principal thereof
(to the extent required to be paid pursuant to this resolution) remains unpaid, the City shall maintain
a separate and special "Bond Fund" to be used for no purpose other than the payment of the
principal of the Note. The City irrevocably agrees to appropriate to the Bond Fund on or before
each Payment Date the Available Tax Increment in an amount equal to the actual Available Tax
Increment remaining after payment or provision for payment of the Interfund Loan due and payable
under the Agreement. Any Available Tax Increment remaining in the Bond Fund shall be
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transferred to the City's account for the TIF District upon the termination of the Note in accordance
with its terms.
4.03. Additional Obligations. The City may apply or pledge Available Tax Increment
in excess of the amount needed to make Payments due on each Payment Date, to any other
obligations (including without limitation any additional interfund loan). Any such pledge or
expenditure is subordinate to the Note.
Section 5. Certification of Proceedings.
5.01. Certification of Proceedings. The officers of the City are hereby authorized and
directed to prepare and furnish to the Owner of the Note certified copies of all proceedings and
records of the City, and such other affidavits, certificates, and information as may be required to
show the facts relating to the legality and marketability of the Note as the same appear from the
books and records under their custody and control or as otherwise known to them, and all such
certified copies, certificates, and affidavits, including any heretofore furnished, shall be deemed
representations of the City as to the facts recited therein.
Section 6. Effective Date. This resolution shall be effective upon approval.
Approved by the City Council of the City of Albertville, Minnesota, this __ day of _______,
2013.
______________________________
Mayor
ATTEST:
_______________________
City Clerk
Agenda Page 61
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405588v4 MNI AL141-57
SCHEDULE D
CERTIFICATE OF COMPLETION
The undersigned hereby certifies that Fraser Building Limited Partnership (the “Developer”)
has fully complied with its obligations under Articles III and IV of that document titled “Contract
for Private Development,” dated __________________, 2013 between the City of Albertville,
Minnesota and the Developer (the “Agreement”), with respect to construction of the Minimum
Improvements in accordance with Article IV of the Agreement, and that the Developer is released
and forever discharged from its obligations with respect to construction of the Minimum
Improvements under Articles III and IV of the Agreement.
Dated: _______________, 20__. CITY OF ALBERTVILLE, MINNESOTA
By
City Representative
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405588v4 MNI AL141-57
SCHEDULE E
ASSESSMENT AGREEMENT
and
ASSESSOR'S CERTIFICATION
By and Between
CITY OF ALBERTVILLE, MINNESOTA
and
FRASER BUILDING LIMITED PARTNERSHIP
This Document was drafted by:
KENNEDY & GRAVEN, Chartered (MNI)
470 U.S. Bank Plaza
Minneapolis, Minnesota 55402
Agenda Page 63
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405588v4 MNI AL141-57
ASSESSMENT AGREEMENT
THIS AGREEMENT, made on or as of the ____ day of _________________, 2013, and
between the City of Albertville, Minnesota, a Minnesota municipal corporation (the "City") and
Fraser Building Limited Partnership, a Minnesota limited partnership (the "Developer").
WITNESSETH, that
WHEREAS, on or before the date hereof the City and the Developer have entered into a
Contract for Private Development dated __________, 2013 (the "Development Contract"), pursuant
to which the City is to facilitate development of certain property in the City hereinafter referred to as
the "Property" and legally described in Exhibit A hereto; and
WHEREAS, pursuant to the Development Contract the Developer is obligated to construct
certain improvements upon the Property (the "Minimum Improvements"); and
WHEREAS, the City and the Developer desire to establish a minimum market value for the
Property and the manufacturing facility constructed thereon, pursuant to Minnesota Statutes, Section
469.177, Subdivision 8; and
WHEREAS, the City and the Assessor for the County (the "Assessor") have reviewed the
preliminary plans and specifications for the manufacturing facility and have inspected such
improvements;
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. The minimum market value which shall be assessed for the Property described in
Exhibit A, together with the Minimum Improvements thereon, for ad valorem tax purposes, shall be
$____________ as of January 2, 2014 and each January 2 thereafter notwithstanding the progress of
construction of such Minimum Improvements by such dates.
2. The minimum market value herein established shall be of no further force and effect
and this Agreement shall terminate on the earlier of the following: (a) the date of receipt by the City
of the final payment from the County of Tax Increments from TIF District No. 14; or (b) the date
when the Interfund Loan (as defined in the Development Contract) has been paid in full or
terminated in accordance with the resolution set forth in Schedule B of the Development Contract.
The event referred to in Sections 2(b) of this Agreement shall be evidenced by a certificate
or affidavit executed by the City.
3. This Agreement shall be promptly recorded by the City. The Developer shall pay all
costs of recording.
4. Neither the preambles nor provisions of this Agreement are intended to, nor shall
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405588v4 MNI AL141-57
they be construed as, modifying the terms of the Development Contract 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.
6. Each of the parties has authority to enter into this Agreement and to take all actions
required of it, and has taken all actions necessary to authorize the execution and delivery of this
Agreement.
7. In the event any provision of this Agreement shall be held invalid and unenforceable
by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable
any other provision hereof.
8. The parties hereto agree that they will, from time to time, execute, acknowledge and
deliver, or cause to be executed, acknowledged and delivered, such supplements, amendments and
modifications hereto, and such further instruments as may reasonably be required for correcting any
inadequate, or incorrect, or amended description of the Property or the manufacturing facility
thereon, or for carrying out the expressed intention of this Agreement, including, without limitation,
any further instruments required to delete from the description of the Property such part or parts as
may be included within a separate assessment agreement.
9. Except as provided in Section 8 of this Agreement, this Agreement may not be
amended nor any of its terms modified except by a writing authorized and executed by all parties
hereto.
10. This Agreement may be simultaneously executed in several counterparts, each of
which shall be an original and all of which shall constitute but one and the same instrument.
11. This Agreement shall be governed by and construed in accordance with the laws of
the State of Minnesota.
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CITY OF ALBERTVILLE, MINNESOTA
By
Its Mayor
By
Its City Administrator
STATE OF MINNESOTA )
) SS.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this ____ day of ________, 2013 by
____________________ and ___________________________, the Mayor and City Administrator
of the City of Albertville, Minnesota, a Minnesota municipal corporation, on behalf of the City.
Notary Public
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405588v4 MNI AL141-57
FRASER BUILDING LIMITED PARTNERSHIP
By ___________________________
Its ____________________________
STATE OF MINNESOTA )
) SS.
COUNTY OF__________ )
The foregoing instrument was acknowledged before me this _____ day of _____________,
2013 by ____________________, the ____________________ of Fraser Building Limited
Partnership, a Minnesota limited partnership, on behalf of the partnership.
_________________________________ Notary Public
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405588v4 MNI AL141-57
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, hereby certifies as follows: The undersigned Assessor, being legally responsible for
the assessment of the above described property, hereby certifies that the values assigned to the land
and improvements are reasonable.
County Assessor for the County of Wright
STATE OF MINNESOTA )
) ss
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this ___ day of ____________,
2013 by _____________________, the County Assessor of the County of Wright.
Notary Public
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405588v4 MNI AL141-57
EXHIBIT A of ASSESSMENT AGREEMENT
Legal Description of Property
Lot 1, Block 1, Barthel’s Industrial Park 2nd Addition, Wright County, Minnesota.
Agenda Page 69
CITY OF ALBERTVILLE
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2013-008
INTERFUND LOAN RESOLUTION AUTHORIZING INTERFUND LOAN
FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH T
AX INCREMENT FINANCING DISTRICT NO. 14
BE IT RESOLVED By the City Council of the City of Albertville, Minnesota (the “City”)
as follows:
Section 1. Background.
1.01. The City has established Tax Increment Financing District No. 14 (the “TIF
District”) within Municipal Development District No. 1 (the "Development District") pursuant to
Minnesota Statutes, Sections 469.174 to 469.179, as amended (the “TIF Act”) and Sections
469.124 to 469.134, as amended (the “Municipal Development Act”).
1.02. The City may incur certain costs related to the TIF District, which costs may be
financed on a temporary basis from available City funds.
1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the City is authorized to
advance or loan money from any fund from which such advances may be legally made in order
to finance expenditures that are eligible to be paid with tax increments under the TIF Act.
1.04. In its resolution approving the establishment of the TIF District, adopted July 2,
2012 (the “TIF District Resolution”), the City authorized an interfund loan of up to $34,000 for
the reimbursement of expenditures made for administrative costs of the TIF District (the “Prior
Loan”). Such authorization of the Prior Loan is hereby ratified in full.
1.05. The City now proposes to enter into a Contract for Private Development (the
“Contract”) with Fraser Building Limited Partnership (the “Developer”), under which the City
advance the principal sum of $170,000 to the Developer to reimburse the Developer for Public
Development Costs, as defined in the Contract (the “Public Development Costs Advance”), and
will reimburse itself for the Public Development Costs Advance with tax increments from the
TIF District when generated.
1.06. The City hereby designates the Public Development Costs Advance as an
additional interfund loan in accordance with the terms of this resolution and the TIF Act.
Section 2. Repayment of Interfund Loan.
2.01. The City will reimburse itself for the Public Development Costs Advance in an
Agenda Page 70
City of Albertville
Resolution No. 2013-008
Page 2
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418011v1 MNI AL141-57
aggregate principal amount of $170,000, together with interest at the rate of __% per annum (the
“Interfund Loan”). Interest accrues on the principal amount from the date of such advance (the
“Loan Date”). The interest rate is no more than the greatest of the rate specified under
Minnesota Statutes, Section 270C.40 and Section 549.09, both in effect for calendar year 2013,
and will not be adjusted.
2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi-
annually on each August 1 and February 1 (each a “Payment Date”), commencing on the first
Payment Date on which the City has Available Tax Increment (defined below), or on any other
dates determined by the City Administrator, through the date of last receipt of tax increment
from the TIF District.
2.03. Payments on the Interfund Loan will be made solely from Available Tax
Increment, defined as tax increment from the TIF District received by the City from Wright
County in the six-month period before any Payment Date, less any amounts determined by the
City to be applied toward the Prior Loan in accordance with the TIF Act and TIF District
Resolution. Payments shall be applied first to accrued interest, and then to unpaid principal.
Interest accruing from the Loan Date will be compounded semiannually on February 1 and
August 1 of each year and added to principal until the first Payment Date, unless otherwise
specified by the City Administrator. Available Tax Increment shall be applied to payment on the
Interfund Loan and Prior Loan and for no other purpose until the Interfund Loan is fully paid or
forgiven as provided in Section 2.06 hereof.
2.04. The principal sum and all accrued interest payable under this resolution is pre-
payable in whole or in part at any time by the City without premium or penalty.
2.05. This resolution is evidence of an internal borrowing by the City in accordance
with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely
from Available Tax Increment pledged to the payment hereof under this resolution. The
Interfund Loan shall not be deemed to constitute a general obligation of the State of Minnesota
or any political subdivision thereof, including, without limitation, the City. Neither the State of
Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or
interest on the Interfund Loan or other costs incident hereto except out of Available Tax
Increment. The City shall have no obligation to pay any principal amount of the Interfund Loan
or accrued interest thereon, which may remain unpaid after the final Payment Date.
2.06. The City may at any time make a determination to forgive the outstanding
principal amount and accrued interest on the Interfund Loan to the extent permissible under law.
2.07. The City may from time to time amend the terms of this Resolution to the extent
permitted by law, including without limitation amendment to the payment schedule and the
interest rate; provided that the interest rate may not be increased above the maximum specified in
Section 469.178. subd. 7 of the TIF Act.
Agenda Page 71
City of Albertville
Resolution No. 2013-008
Page 3
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418011v1 MNI AL141-57
Section 3. Effective Date. This resolution is effective upon execution in full of the
Contract.
Adopted by the Albertville City Council this 19th day of February, 2013.
_____________________________
Jillian Hendrickson, Mayor
ATTEST:
Kimberly A. Olson, City Clerk
Agenda Page 72
M:\Public Data\City Council\Council Packet information\2013\021913\Fraser Steel RCA.doc
Meeting Date: February 19, 2013
Mayor and Council Request for Action
_____________________________________________________________________________
February 14, 2013
SUBJECT: PLANNING DEPARTMENT – FRASER STEEL SITE AND BUILDING PLAN APPROVAL
RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider
the following motion:
MOTION TO: Adopt Resolution No. 2013-009 approving the Fraser Steel site and building
plans.
BACKGROUND: Fraser Building Limited Partnership has submitted an application for a site
and building plan review to consider a 24,500 square foot expansion of their industrial building
at 11915 53rd Avenue NE in Albertville.
KEY ISSUES:
1. The site is zoned I-1, Limited Industrial District. The use is permitted within the district.
2. The existing and proposed building expansion meets all lot area, width and setback
standards of the I-1 District.
3. The applicant can provide adequate parking but is pursuing a proof of parking
arrangement because their parking demand is less than City requirements.
4. The loading docks at the northeast corner of the building are properly designed and
screened from the adjoining public streets.
5. The City Engineer comments are offered in a February 6, 2013 memorandum.
POLICY/PRACTICES CONSIDERATIONS: In accordance with State law, a public
meeting was held by the Planning and Zoning Commission. They recommended the City
Council approve the Fraser Steel site and building plans as outlined in Resolution No. 2013-
XXX.
FINANCIAL CONSIDERATIONS: None.
LEGAL CONSIDERATIONS: In accordance with Council procedures, the Mayor and City
Council have the authority to approve or deny the Fraser Steel site and building plans.
Department/Responsible Person: Planning/Alan Brixius, City Planner
Submitted Through: Adam Nafstad, City Administrator
Attachments: Resolution No. 2013-009
Planner’s Report dated February 7, 2013
Engineer’s Memorandum dated February 6, 2013
Agenda Page 73
5
PLANNING REPORT
TO: Adam Nafstad
FROM: Alan Brixius
DATE: February 7, 2013
RE: Albertville – Fraser Steel Expansion
FILE NO: 163.06 – 13.05
BACKGROUND
Fraser Building Limited Partnership is proposing a 24,500 square foot expansion of their
industrial building at 11915 53rd Street NE. The existing building is 47,000 square feet
in area. With the addition, the total new building size will be 71,500 square feet. The
site is zoned I-1, Limited Industrial. Any construction expansion of an industrial building
requires a site and building plan review of the Planning Commission and City Council.
Attached for reference:
Exhibit A: Plat
Exhibit B: Site Plan
Exhibit C: Grading/Utility Plan
Exhibit D: Floor Plan
Exhibit E: Elevations
Exhibit F: Lighting
Exhibit G: Landscape Plan
Exhibit H: City Engineer Comments
ISSUES ANALYSIS
Comprehensive Plan. Albertville’s Comprehensive Plan identifies this area as
industrial. The policies of the industrial land use areas of the Comprehensive Plan
include, but are not limited to, the following:
• Promote the infill of development in the existing industrially zoned areas of the
City; and
• Continue to maintain and expand the City’s industrial and commercial tax base to
assist in paying for needed services and in reducing tax impact on housing costs.
Agenda Page 74
6
The Albertville 2012 Vision Study goals and policies reaffirmed the industrial land use
recommendations for this site. The Vision Study emphasized economic development
as a community priority.
Zoning. The subject site at 11915 53rd Street NE is zoned I-1, Limited Industrial and
shall remain zoned I-1. The applicant has stated that the existing use of the property is
for a manufacturing plant and office for steel parts, which is an allowed use in the I-1
Zoning District.
The lot currently has access onto 53rd Street NE. As a part of the approval of Barthel’s
Industrial Park, 2nd Addition, access on 52nd Street was also approved.
Lot Area and Setbacks. The following table illustrates that the existing and proposed
building meets the lot area, setback and height standards of the I-1 Zoning District:
Required Proposed Compliance
Lot Area NA 4.64 acres Yes
Lot Width 100 feet 280 feet Yes
Setbacks:
Front Yard (53rd Street)
Rear Yard – East
Side Yard – North
Side Yard - South
35 feet
20 feet
10 feet
10 feet
45 feet
62 feet
168 feet
10 feet
Yes
Yes
Yes
Yes
Maximum Site Coverage 85% 83% Yes
Maximum Building Height 35 feet 24.5 feet Yes
Parking. Section 1200.9 of the Albertville Zoning Ordinance identifies the required
amount of parking for this industrial site using the following parking ratio:
Office – One parking stall per 200 feet of floor area
Manufacturing – One parking stall per 350 feet of floor area
Warehousing – One parking stall per 1,000 feet of floor area
The applicant has provided the following floor space breakdown of the building,
resulting in the following parking calculation:
Total Floor Space = 76,100 X .9 = 68,450 square feet for parking count purposes
Office 5,850 SF ÷ 200 = 29
Manufacturing* 32,580 SF X 30% = 9,774 SF ÷ 350 = 28
Warehousing 30,060 SF ÷ 1,000 = 30
---
TOTAL REQUIRED 87
* Section 1200.9.A, Other Uses, allows the City to grant an exception to the parking standards
where it can be demonstrated the site is unique in operation where parking demand is below the
required parking. Fraser Precision Tubular Parts is unique in that its manufacturing area is
Agenda Page 75
7
highly mechanized with production machines occupying 70 percent of the manufacturing area.
The number and size of the machines greatly reduces the floor area that generates employee
parking demand. Staff toured the building and has confirmed this circumstance.
Based on City standards, the site is required to provide 87 parking stalls. While all the
site parking and loading area will be paved, the applicant is proposing to stripe 49 stalls
and leave area for 40 additional stalls (unstriped) as proof of available parking. This
parking arrangement is acceptable provided the applicant is agreeable to striping the
proof of parking stalls at the direction of the City if it is determined that the on-site
demand for parking is greater than the supply of painted parking stalls.
Stall, Aisle, and Driveway Design Standards.
1. Each parking space shall not be less than nine feet wide and 20 feet in length,
and each space shall be served adequately by access aisles.
Comment: The parking along the building only offers an 18 foot depth. This is
an existing legal non-conforming condition that may continue to exist. All other
stalls and proof of parking areas are properly dimensioned.
2. All parking stalls shall be marked with white or yellow painted lines, not less than
four inches wide.
Comment: All proposed parking must be striped to proper dimensions.
3. No curb cut shall exceed 24 feet in width unless approved by the City Engineer.
Comment: The curb cut onto 53rd Street is 65 feet wide. This is an existing
condition that will not change. The new curb cut onto 52nd Street will be 40 feet
in width and has been reviewed and approved by the City Engineer. The wider
curb cut is necessary to accommodate the semi-truck traffic that must access
and circulate throughout the site.
4. Surfacing and Perimeter Curbing.
Comment: The existing parking lot has a bituminous surface. The new parking
and driveway will match the bituminous surfacing. Concrete curb and gutter is
illustrated on the site plan along the driveway and parking lot of the new
construction. The curbing ends prior to the existing parking. Curbing must be
extended around all new paved areas.
5. Plans for surfacing and drainage of the driveway and stalls for the parking lot are
subject to the review of the City Engineer.
Agenda Page 76
8
6. Adequate space for snow storage shall be provided on the site so as not to
reduce the required minimum number of parking spaces.
Comment: The submitted site plan illustrates snow storage along the north edge
of the parking lot.
7. All parking associated with any building, structure, or use shall be required to
conform to the disability accessible parking standards pursuant to Minnesota
State Building.
Comment: The applicant must provide one disability stall per 25 total stalls.
Two disability parking stalls are provided near the building entrance. This is
adequate for the 49 parking stalls proposed in this stage of development. If
additional stalls are required in the future, additional disability stalls will also be
required. The disability parking stalls are properly dimensions and must be
signed.
Lighting. The submitted plans indicate that 10 wall pack light fixtures are proposed on
the exterior elevations, which will match the existing light fixtures. No parking lot lighting
has been illustrated on the submitted plans. Section 1000.10 of the Albertville Zoning
Ordinance establishes the following standards applicable to the current site plan:
1. Light Cutoff: The luminaire shall contain a cutoff which directs and cuts off the
light at an angle of 90 degrees or less.
The applicant has provided a lighting cut sheet from Cooper Lighting Lumark that
offers three models, one of which offers full cutoff lighting. The full cut off lighting
model will meet City Code standards.
2. Lighting Adjacent Property: No light source of combination thereof which casts
light on a public street shall exceed one foot candle, as measured from the right-
of-way line of said street.
The submitted photometric plan illustrates that light levels at the property line
comply with City standards.
Loading. The building addition includes five loading docks and a metal recycle bin
located at the northeast corner of the building. Review of the loading area reveals that
each bay is properly dimensioned. The site plan illustrates sufficient area for truck
movements. The loading bays and recycling bin are recessed into the building and
screened to the east using a curtain wall extending 20 feet off the building.
Landscaping. Exhibit G illustrates the landscape plan. In review of this plan, we offer
the following comments:
1. All disturbed areas after grading and construction must be restored with grass or
ground cover approved by the City.
Agenda Page 77
9
2. With completion of the east retaining wall, wetland buffers must be established
between the wall and edge of the wetlands. The applicant shall identify the
wetland restoration seed mix for City approval.
3. The ornamental trees located near the loading docks are well placed to screen
loading activities from 52nd Street.
4. The landscape plan identifies six new deciduous trees along 52nd Street. These
proposed trees are located on City property. This may be acceptable with the
permission of the City Council. The City Engineer should comment as to whether
these trees may interfere with pond operations and maintenance. If these trees
are seen as acceptable, they should be set back 10 feet from the property line,
outside the utility and drainage easement.
The applicant has indicated that with this building, no outdoor storage, stage, or
operation will occur on site. The loading areas are located and designed in a manner
that they are screened from street view.
Trash Receptacle. The site plan does not illustrate the location of trash receptacles,
with the exception of the metal recycling bin located near the loading dock. The
applicant must store dumpsters within the building or identify where an exterior trash
enclosure may be located. An exterior trash enclosure must be designed to screen the
dumpster from adjoining properties. Trash enclosures must be designed to match the
building.
Wetland. The wetland located on Outlot A to the east of the subject lot is not to be
disturbed and shall be protected during site construction. A minimum buffer width
between five and 10 feet shall be maintained between the wetland and the proposed
retaining wall. Everything to the east of the retaining wall shall be restored to or left in
its natural state.
Signage. No information regarding any proposed signs has been included with the
application materials. The installation of signage requires a permit.
City Engineer Comments. See Exhibit H attached to this report.
RECOMMENDATION
The application to construct an addition onto the existing industrial facility located at
11915 53rd Street NE generally appears to the meet the setback requirements and
typical construction of the industrial area. Therefore, our office recommends approval of
the site and building plans for the addition on the property owned by Fraser Building
Partnership, based on the findings made in this report, but subject to the following
conditions prior to issuance of a building permit:
Agenda Page 78
10
1. Proof of Parking.
a. If the existing supply of striped parking stalls is deficient in meeting on site
demand, the applicant shall stripe additional stalls in accordance with the
proof of parking plan at the directive of the City.
b. The proof of parking stalls shall be striped in accordance with the proof of
parking plan if there is a change in building occupancy.
c. All parking stalls shall be properly re-striped.
2. Perimeter curbing shall be extended along all the new construction up to the
existing parking lot.
3. Exterior lights must be full cut off lighting.
4. Landscape Plan.
a. The applicant shall restore all non-paved areas with grass or ground cover
approved by the City.
b. The applicant shall restore the wetland buffers and must provide a wetland
seed mix and planting program for approval by the City Engineer.
c. The City must determine if the trees on City property are acceptable. If
so, the trees must be set back a minimum of 10 feet from the right-of-way
line.
5. The applicant shall provide a location for trash receptacles. Any exterior storage
of trash receptacles shall be located within a trash enclosure designed to match
the building.
6. The applicant shall address the recommendations of the City Engineer outlined in
his memo of February 6, 2013.
cc: Sue Schwalbe
Kim Olson
Mike Couri
Paul Heins
Fraser Building Limited Partnership, 11915 53rd Street NE, Albertville, MN 55301
Dennis Cornelius, Amcon CM LLC, 5565 Blaine Avenue, Suite 250,
Inver Grove Heights, MN 55076
Agenda Page 79
Exhibit A - Plat Agenda Page 80
Exhibit B - Site Plan Agenda Page 81
StructureCastingDrains To Slope Pipe PipePipeRim Elevation Invert Elev.No. TypeDia. TypeStructure No. % Dia(in.) LengthMaterialUp Structure Up Structure Dn. Structure Inv 1 Dir Inv 2 Dir Inv 3 Dir9CB2X3 R-1878-B7G8 0.40 12.00 45RCP943.95 941.20 941.02 9 941.20 SE 8CBMH2X3 R-1878-B7G6 0.40 12.00 89RCP943.95941.02940.668941.02 E 941.02 NW 7CBMH2X3 R-3067-V6 0.40 12.00 98RCP945.20941.55941.167941.55 S 6CBMH54" R-3067-V5 0.29 15.00 185RCP945.10940.66940.126940.66 SW 940.66 W 941.16 N4CB27" R-43423 1.50 12.00 98RCP946.50943.05941.584943.05 SE 3CBMH48" R-43425 1.75 12.00 66RCP946.50941.58940.433941.58 SE 941.58 NW 5STMH48" R-17331 0.38 18.00 32RCP947.00940.12940.005940.12 SE 940.12 NE 940.43 NWPipe inverts in/out of structure #INSTALL CL. 52 DIP WATERMAIN W/ MIN7.5' BURY & GATE VALVE W/HYDRANT PERCITY REQUIREMENTSExhibit C - Grading/Utility Plan Agenda Page 82
Exhibit D - Floor Plan Agenda Page 83
Exhibit E - Elevations Agenda Page 84
Exhibit F - Lighting Agenda Page 85
Exhibit G - Landscape Plan Agenda Page 86
Albertville City Hall ● 5959 Main Avenue NE, PO Box 9 ● Albertville, MN 55301 ● (763) 497-3384
M E M O R A N D U M
Date: February 6, 2013
To: Al Brixius, City Planner
Cc: Paul Heins, Building Official
John Midddendorf, WWTP and Utility Supervisor
From: Adam Nafstad, P.E., City Administrator and Engineer
Subject: Fraser Precision Parts – Proposed Addition
Civil Site Plan Review
We have reviewed the submitted civil plan set for “Fraser Precision Tubular Parts” prepared
by Westwood Professional Services, Inc. with a revision date of 7/20/07 on sheets 1, 2, 3 and
5, and a revision date of 8/13/07 on sheet 4. The following comments are offered:
GENERAL
1. The Developer shall be responsible for all construction permits required for the
improvements (Department of Health-watermain, NPDES – stormwater, etc.). A
copy of all permits shall be submitted to the City prior to the commencement of work.
2. As noted on plan, an as-built drawing of the site and improvements will be required
prior to issuance of CO.
3. Additional SAC and WAC charges will be required at the time of building permit
issuance.
4. The monthly Storm Water fee shall be reviewed and adjusted, if required, at the time
of building permit issuance.
5. Owner shall ensure handicap stalls and accessible routes are compliant with ADA
standards.
6. As indicated on plan, existing topography of the site has changed due to grading
previously completed by Fraser.
7. Site circulation and truck maneuverability has been identified on the architectural
drawings (sheet A0.0).
8. Applicant shall identify fire apparatus access routes and no parking areas.
Sheet 4 of 4 – Grading, Erosion Control &Utility Plan
9. Hydrant spacing and water supply shall meet the requirements of the latest version of
the Minnesota State Fire Code or that of Albertville’s Fire Chief. Architect shall
verify fire flow requirements, fire hydrant locations and distribution.
Exhibit H - City Engineer Comments
Agenda Page 87
Fraser Steel – Engineering Review
2/6/13
Page 2
Albertville City Hall ● 5959 Main Avenue NE, PO Box 9 ● Albertville, MN 55301 ● (763) 497-3384
10. The watermain extension and specifications shall be revised to include:
a. All watermain shall be PVC C900 and fittings shall be epoxy coated.
b. All fittings, valves and hydrants, etc. shall be secured utilizing COR-BLUE T-
BOLTS as manufactured by NSS Industries or approved equal.
c. 8-gauge solid coated copper tracer wire shall be installed along watermain and
attached to the bottom flange of all hydrants.
d. Hydrants shall be Waterous Pacer Style, Model WB67-250 (no weather shield
on nut) and shall have a bury length of 8-feet.
e. 45 degree bends shall be used in lieu of 90’s for all horizontal applications.
11. Applicant shall coordinate all water shut–offs, charging, pressure testing, disinfection
and inspections with City. Contact Utility Superintendant John Middendorf at (612)
490-9332.
12. No Fill shall be placed in the wetland(s). Any and all disturbed wetland areas shall be
restored with approved wetland seed mix.
13. As noted on plan, structural design for retaining wall shall be submitted to the
Building Official for review.
14. Design for CBMH-2 is not included in storm sewer schedule.
15. STMH-5 shall be constructed with a 2-foot sump.
16. Note Only: The storm sewer has been designed with a tailwater condition. Also, the
EOF of the pond is 944.3 and the HWL is 943.7. The rim elevations of the CB’s in
the loading bays are 943.95. It is recommended that the engineer review the expected
drainage performance with the owner. It is anticipated that short term ponding will
occur in the loading bays.
Please let me know if you have any questions.
Exhibit H - City Engineer Comments
Agenda Page 88
CITY OF ALBERTVILLE
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2013-009
RESOLUTION APPROVING THE SITE AND BUILDING PLANS FOR
FRASER BUILDING LIMITED PARTNERSHIP TO ALLOW A 24,500 SQUARE FOOT
INDUSTRIAL BUILDING EXPANSION AT 11915 53RD STREET NE IN ALBERTVILLE
WHEREAS, Fraser Building Limited Partnership has applied for a site and building plan review
to allow for a 24,500 square foot industrial building expansion at 11915 53rd Street NE,
Albertville, MN; and
WHEREAS, City Staff has reviewed the submitted application. The planning report dated
February 7, 2013 has been prepared by Northwest Associated Consultants and an Engineer’s
memorandum dated February 6, 2013 prepared by the City Administrator/Engineer that outlines
the City staff findings and recommendations; and
WHEREAS, the Albertville Planning and Zoning Commission met and held a public meeting on
February 12, 2013 to consider Fraser Building Limited Partnership’s site and building plan
application; and
WHEREAS, upon review of the staff reports and hearing public testimony, the Planning and
Zoning Commission recommended that the City Council approve the site and building plans for
Fraser Steel at 11915 53rd Street with the conditions outlined in the February 7, 2013 planning
report as amended; and
WHEREAS, the Albertville City Council met on February 19, 2013 to consider Fraser Building
Limited Partnership’s site and building plans; and
WHEREAS, the Albertville City Council received the application, staff review documents, and
the Planning and Zoning Commission recommendation, and agrees with the findings and
recommendation of the Planning and Zoning Commission; and
NOW, THEREFORE BE IT RESOLVED, that the City Council of Albertville, Minnesota
hereby approves the site and building plans for Fraser Steel at 11915 53rd Street NE in
Albertville based on plans dated February 1, 2013 subject to the following conditions.
1. Proof of Parking.
a. If the existing supply of striped parking stalls becomes deficient in meeting on
site demand, the applicant shall stripe additional stalls in accordance with the
proof of parking plan at the directive of the City.
b. The proof of parking stalls shall be striped in the future in accordance with the
approved site plan if there is a change in building occupancy.
Agenda Page 89
City of Albertville
Resolution No. 2013-009
Page 2
c. All parking stalls shall be properly re-striped.
2. Perimeter curbing shall be extended along all the new construction up to the existing
parking lot.
3. Exterior lighting along the building walls facing 53rd Street and 52nd Street shall be full
cut off lighting. The applicant may reuse existing non-cut off wall lights along the north
building walls to illuminate the building and parking areas.
4. Landscape Plan.
a. The applicant shall restore all non-paved areas with grass or ground cover
approved by the City.
b. The applicant shall restore the wetland buffers and must provide a wetland seed
mix and planting program for approval by the City Engineer.
5. The applicant shall provide a location for trash receptacles. Any exterior storage of trash
receptacles shall be located within a trash enclosure designed to match the building.
6. City Engineer recommendations of February 6, 2013 as follows:
a. General.
1) The developer shall be responsible for all construction permits required for
the improvements (Department of Health-watermain, NPDES-stormwater,
etc.). A copy of all permits shall be submitted to the City prior to the
commencement of work.
2) As noted on plan, an as-built drawing of the site and improvements will be
required prior to issuance of CO.
3) Additional SAC and WAC charges will be required at the time of building
permit issuance.
4) The monthly storm water fee shall be reviewed and adjusted, if required,
at the time of building permit issuance.
5) Owner shall ensure handicap stalls and accessible routes are compliance
with ADA standards.
6) As indicated on plan, existing topography of the site has changed due to
grading previously completed by Fraser.
7) Site circulation and truck maneuverability has been identified on the
architectural drawings (sheet A0.0).
Agenda Page 90
City of Albertville
Resolution No. 2013-009
Page 3
8) The applicant shall identify fire apparatus access routes and no parking
areas.
b. Grading, Erosion Control and Utility Plan.
1) Hydrant spacing and water supply shall meet the requirements of the latest
version of the Minnesota State Fire Code or that of Albertville’s Fire
Chief. The architect shall verify fire flow requirements, fire hydrant
locations and distribution.
2) The watermain extension and specifications shall be revised to include:
a) All watermain shall be PVC C900 and fittings shall be epoxy
coated.
b) All fittings, vales and hydrants, etc. shall be secured utilizing
COR-BLUE T-BOLTS as manufactured by NSS Industries or
approved equal.
c) Eight gauge solid coated copper tracer wire shall be installed along
watermain and attached to the bottom flange of all hydrants.
d) Hydrants shall be Waterous Pacer Style, Model WB67-250 (no
weather shield on nut) and shall have a bury length of eight feet.
e) Forty-five degree bends shall be used in lieu of 90s for all
horizontal applications.
3) The applicant shall coordinate all water shut-offs, charging, pressure
testing, disinfection and inspections with the City. Contact Utility
Superintendent John Middendorf at 612-490-9332.
4) No fill shall be placed in the wetland(s). Any and all disturbed wetland
areas shall be restored with approved wetland seed mix.
5) As noted on plan, structural design for retaining wall shall be submitted to
the Building Official for review.
6) Design for CBMH-2 is not included in storm sewer schedule.
7) STMH-5 shall be constructed with a two foot sump.
8) Note Only: The storm sewer has been designed with a tailwater condition.
Also, the EOF of the pond is 944.3 and the HWL is 943.7. The rim
elevations of the CBs in the loading bays are 94395. It is recommended
that the engineer review the expected drainage performance with the
owner. It is anticipated that short term ponding will occur in the loading
bays.
Agenda Page 91
City of Albertville
Resolution No. 2013-009
Page 4
Adopted by the Albertville City Council this 19th day of February 2013.
Jillian Hendrickson, Mayor
Kimberly Olson, City Clerk
Agenda Page 92
Albertville City Hall ● 5959 Main Avenue NE, PO Box 9 ● Albertville, MN 55301 ● (763) 497-3384
M E M O R A N D U M
Date: February 6, 2013
To: Al Brixius, City Planner
Cc: Paul Heins, Building Official
John Midddendorf, WWTP and Utility Supervisor
From: Adam Nafstad, P.E., City Administrator and Engineer
Subject: Fraser Precision Parts – Proposed Addition
Civil Site Plan Review
We have reviewed the submitted civil plan set for “Fraser Precision Tubular Parts” prepared
by Westwood Professional Services, Inc. with a revision date of 7/20/07 on sheets 1, 2, 3 and
5, and a revision date of 8/13/07 on sheet 4. The following comments are offered:
GENERAL
1. The Developer shall be responsible for all construction permits required for the
improvements (Department of Health-watermain, NPDES – stormwater, etc.). A
copy of all permits shall be submitted to the City prior to the commencement of work.
2. As noted on plan, an as-built drawing of the site and improvements will be required
prior to issuance of CO.
3. Additional SAC and WAC charges will be required at the time of building permit
issuance.
4. The monthly Storm Water fee shall be reviewed and adjusted, if required, at the time
of building permit issuance.
5. Owner shall ensure handicap stalls and accessible routes are compliant with ADA
standards.
6. As indicated on plan, existing topography of the site has changed due to grading
previously completed by Fraser.
7. Site circulation and truck maneuverability has been identified on the architectural
drawings (sheet A0.0).
8. Applicant shall identify fire apparatus access routes and no parking areas.
Sheet 4 of 4 – Grading, Erosion Control &Utility Plan
9. Hydrant spacing and water supply shall meet the requirements of the latest version of
the Minnesota State Fire Code or that of Albertville’s Fire Chief. Architect shall
verify fire flow requirements, fire hydrant locations and distribution.
Exhibit H - City Engineer Comments
Agenda Page 93
Fraser Steel – Engineering Review
2/6/13
Page 2
Albertville City Hall ● 5959 Main Avenue NE, PO Box 9 ● Albertville, MN 55301 ● (763) 497-3384
10. The watermain extension and specifications shall be revised to include:
a. All watermain shall be PVC C900 and fittings shall be epoxy coated.
b. All fittings, valves and hydrants, etc. shall be secured utilizing COR-BLUE T-
BOLTS as manufactured by NSS Industries or approved equal.
c. 8-gauge solid coated copper tracer wire shall be installed along watermain and
attached to the bottom flange of all hydrants.
d. Hydrants shall be Waterous Pacer Style, Model WB67-250 (no weather shield
on nut) and shall have a bury length of 8-feet.
e. 45 degree bends shall be used in lieu of 90’s for all horizontal applications.
11. Applicant shall coordinate all water shut–offs, charging, pressure testing, disinfection
and inspections with City. Contact Utility Superintendant John Middendorf at (612)
490-9332.
12. No Fill shall be placed in the wetland(s). Any and all disturbed wetland areas shall be
restored with approved wetland seed mix.
13. As noted on plan, structural design for retaining wall shall be submitted to the
Building Official for review.
14. Design for CBMH-2 is not included in storm sewer schedule.
15. STMH-5 shall be constructed with a 2-foot sump.
16. Note Only: The storm sewer has been designed with a tailwater condition. Also, the
EOF of the pond is 944.3 and the HWL is 943.7. The rim elevations of the CB’s in
the loading bays are 943.95. It is recommended that the engineer review the expected
drainage performance with the owner. It is anticipated that short term ponding will
occur in the loading bays.
Please let me know if you have any questions.
Exhibit H - City Engineer Comments
Agenda Page 94
Mayor and Council Communication
M:\Public Data\City Council\Council Packet information\2013\021913\Newsletter Update.doc
Meeting Date: February 19, 2013
February 14, 2013
SUBJECT: CITY CLERK – NEWSLETTER UPDATE
RECOMMENDATION: This space on the agenda is reserved for the City Council to hear
staff’s plan and recommendation for production and scheduled distribution of the city newsletter.
BACKGROUND: At the February 4, 2013 City Council Workshop, the Council reviewed ways
to improve the newsletter and methods of distribution. Council directed staff to develop a
publication schedule for the City newsletter and research costs associated with using an outside
agency.
Staff proposes biannual distributions and has identified spring and fall as the most opportune
times to distribute the newsletter. Staff proposes to supplement the biannual distribution with
inserts or flyers as necessary with utility bills (both paper and electronic) and believes this is an
efficient and effective means of relaying information not included in the newsletters. The
newsletters would hit mailboxes the first week in April and the first week in October. Additional
or quarterly newsletters can be added when desired.
Staff reviewed quotes from Prime Advertising & Design, and Minute Man Press. Both
companies have the graphic design capabilities and offer competitive rates to create a
professional product.
Based on the cost comparison, staff recommends using Minute Man Press, of St. Michael, to
produce a graphically designed, 4 page full color newsletter.
KEY ISSUES:
• The use of an outside agency with graphic design capabilities will result in a higher
quality newsletter for the residents.
• The cost for outsourcing assistance is comparable to what has been spent in previous
years. Previous year costs were printing costs only and did not calculate staff time.
• Residents will be able to depend on a bi-annual publication in the spring and fall.
• There is no contract associated with the use of Minute Man Press. Minute Man will
invoice the city on a time and material basis.
• The City can change vendors at any time.
Unless desired otherwise by Council, staff will move forward with the spring publication with
the assistance of Minute Man Press.
POLICY/PRACTICES CONSIDERATIONS: It is generally the City’s policy to set
publication time lines and to authorize outsourcing of services.
Agenda Page 95
Mayor and Council Communication – TUESDAY, February 19, 2013
Newsletter Update Page 2 of 2
M:\Public Data\City Council\Council Packet information\2013\021913\Newsletter Update.doc
Meeting Date: February 19, 2013
FINANCIAL CONSIDERATIONS: Due to savings in printing costs, there is no significant
difference between the costs the City currently incurs in preparation of the newsletter (in-house)
to that proposed by Minute Man Press.
LEGAL CONSIDERATIONS: The Mayor and City Council have the authority to choose the
City’s vendors.
Department/Responsible Person: City Clerk/Kim Olson
Submitted Through: Adam Nafstad, City Administrator
Attachments: None
Agenda Page 96
Mayor and Council Request for Action
M:\Public Data\City Council\Council Packet information\2013\021913\RCA 2013 Overlay and Utility Improvements.doc.
Meeting Date: February 19, 2013
February 13, 2013
SUBJECT: ENGINEERING – 2013 STREET, TRAIL AND UTILITY IMPROVEMENTS
RECOMMENDATION: This space on the agenda is reserved for the City Council to consider
authorizing the preparation of plans, specifications, and cost estimates for proposed 2013 Street
Improvements. It is respectfully requested that the Mayor and Council consider the following
motion:
MOTION TO: Direct staff to prepare cost estimates, plans, and specifications for the 2013
street, trail and utility improvements.
BACKGROUND INFORMATION: Staff is proposing the 2013 infrastructure project consist
of the following improvements:
Street Overlay – To include 53rd Street NE, Lachman Avenue NE, and Lambert Avenue NE
within the Psyk 4th, 5th and 6th additions, and as identified on the City’s 5-year CIP. In general,
the improvements will include a combination of curb repair, pavement overlaying or reclamation
and pavement resurfacing.
Cedar Creek Watermain Extension – Includes extension of a watermain across CSAH 18 (Jason
Avenue NE) to provide hydrant protection to the Cedar Creek club house and allow for a service
connection if desired by the golf course.
Four Seasons Park Trail – Bituminous repairs and overlay of park trail system.
CSAH 18 (Jason Avenue NE) Trail Connection – Includes 1,500 feet of bituminous trail
construction to complete the trail segment between Kahl Avenue NE and the new STMA school
campus. If this project does not move forward this year, the plans and field data are still
necessary for funding applications and easement acquisition, if necessary.
KEY ISSUES:
• Recommended roads to be improved are based on comprehensive review of all City
Streets.
• Proposed improvements are being coordinated with recent watermain and utility repairs.
• Staff will identify the exact scope/extent and type of work/maintenance to be performed
during plan preparation.
• Bolton and Menk, Inc. would perform the survey work and plan documents.
• Final project scope, cost estimates, and proposed schedule will be presented to Council
for approval and authorization to advertise for bids.
POLICY CONSIDERATIONS: It is the City’s Policy for the Mayor and City Council to select
annual projects and authorize preparation of plans.
Agenda Page 97
Mayor and Council Request for Action – 2013 Street, Trail and Utility Improvements
Engineering - February 13, 2013 Page 2 of 2
M:\Public Data\City Council\Council Packet information\2013\021913\RCA 2013 Overlay and Utility Improvements.doc
Meeting Date: February 19, 2013
FINANCIAL CONSIDERATIONS: Annually the City budgets for infrastructure maintenance
and preservation. The proposed project would be funded through the 2013 street and trails
budget, capital reserves, and water trunk funds. Engineer estimates will be prepared along with
the plans to identify costs and budget impacts prior to approving the projects.
LEGAL CONSIDERATIONS: The Mayor and Council possess the authority to authorize the
preparation of plans for all municipal improvements.
Department/Responsible Person: Engineering and Public Works/Adam Nafstad, Tim Guimont,
John Middendorf
Submitted Through: Adam Nafstad, City Administrator
(Project Maps to be Presented at Meeting)
Agenda Page 98
Mayor and Council Request for Action
M:\Public Data\City Council\Council Packet information\2013\021913\Public Works Lease RCA.doc
Meeting Date: February 19, 2013
February 14, 2013
SUBJECT: PROPOSED LEASE OF OLD PUBLIC WORKS BUILDING TO SOCCER
ASSOCIATION.
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the
following:
MOTION TO: Direct City staff to work with the Soccer Association to finalize a lease of the
old Public Works building to the Soccer Association.
BACKGROUND: The old Public Works building is located across the street from the current
City Hall just north of the post office. For many years this building housed City Hall, the Fire
Department and Public Works. When the old medical building immediately north of the current
City Hall was acquired by the City and turned into a City Hall, the office portion of the original
City Hall was used for storage and was used by community groups such as the Lions. When the
Fire Department moved out in 1999, Public Works took over the space occupied by the fire
trucks and the building was predominately used by the Public Works department. When a new
Public Works building was constructed in the mid-2000’s, the office portion of the old Public
Works building was rented out when tenants could be found (it was most recently used as a job
shack for the I-94 project), but the garage portion has continued to be used for storage of
miscellaneous City Equipment, the Albertville Friendly City Days float, and as a storage/staging
area for Public Works to keep and deploy equipment primarily for winter snow removal.
The City was recently approached by the local Soccer Association which is looking for a place to
rent. The Association is interested in the entire old Public Works building to use as office space
and as an indoor soccer practice area (the garage will be used as the practice area). The Soccer
Association’s use would require the City to vacate the entire building and find a new location for
the equipment currently stored there.
No rent figure has been decided upon at this point in discussions with the Soccer Association.
The City’s building inspector has inspected the building, and has concluded that several
significant improvements will need to be made to the property before the building can be
occupied by the Soccer Association. Improvements would include accessibility items,
sprinkling, HVAC upgrades and electrical wiring fixes, among others. A number of the
improvements would be required for the proposed use of the Soccer Association; however, there
are numerous items which need to be addressed regardless of the user. While we do not have a
cost estimate for these improvements, the concept being discussed at this time is to have the
Soccer Association make these improvements and offset the cost of these improvements against
the rent owed to the City. All improvements would have to be approved by the City Council.
Assuming that this concept moved forward, the City would likely receive no rent on the building
for perhaps 12 to 18 months (depending on the rental rate and the cost of the improvements), but
Agenda Page 99
Mayor and Council Request for Action – PROPOSED LEASE OF OLD PUBLIC WORKS
BUILDING TO SOCCER ASSOCIATION.
February 19, 2013 Page 2 of 2
M:\Public Data\City Council\Council Packet information\2013\021913\Public Works Lease RCA.doc
Meeting Date: February 19, 2013
would have its building improved instead. Once the improvement costs had been fully offset by
rent due, the City would begin receiving monthly rent checks. The proposed use of the building
by the Soccer Association is a permitted use under the current zoning applicable to the property.
KEY ISSUES:
• The City will need to find alternative locations for materials currently stored in the
building, including maintenance equipment and the Friendly City Days float.
• The City will realize a set revenue stream once the improvements have been fully offset
against the rent.
• The building will be significantly improved, potentially allowing for easier rental in the
future.
• The space currently provides a convenience to the Public Works department, given its
proximity to the park.
• Use of the facility by the Soccer Association will benefit the downtown area and the City
by bring customers and traffic.
POLICY/PRACTICES CONSIDERATIONS: The City will need to balance the
improvements to the building and the cash flow from the rent against the inconvenience of
Public Works not having use of the garage space.
FINANCIAL CONSIDERATIONS: We do not have enough information at this time to
project the financial impact of renting the building to the Soccer Association. The financial
impact would have to be calculated before a final lease was approved. At this point, the issues
affecting the financial outcome are the amount of rent, the amount of improvements needed, and
the additional cost and extra employee time that would result from not having our equipment
stored at this location.
LEGAL CONSIDERATIONS: The City Council has the authority to rent the old Public Works
building to the Soccer Association.
Department/Responsible Person: Administration/Adam Nafstad
Submitted Through: Adam Nafstad, City Administrator
Attachments: Draft Lease to the Soccer Association
Agenda Page 100
1
CITY OF ALBERTVILLE
COUNTY OF WRIGHT
STATE OF MINNESOTA
LEASE BETWEEN THE CITY OF ALBERTVILLE AND
______________________
THIS AGREEMENT, made this _____ day of _____________, 2013, by and
between City of Albertville (“City” or “Lessor”) a municipal corporation under the
laws of the State of Minnesota, and _____________________, a
_______________________________, (Lessee), to rent office space from the City
at its former Public Works facility located at __________ Main Avenue NE,
Albertville, MN 55301.
WHEREAS, The Lessor in consideration of the rents and covenants hereinafter
mentioned, does hereby demise, lease and let unto the Lessee, and the Lessee does
hereby hire and take from the Lessor the following premises located at ___________
Main Avenue, Albertville, Minnesota 55301 (“Leased Premises”).
NOW, THEREFORE, in consideration of the foregoing and mutual promises and
covenants set forth, the parties hereby agree as follows:
1. LEASED PREMISES
The City leases to Lessee the Leased Premises, including the office and
shop portions of the building and the parking areas located on the Premises.
2. TERM
The Term of this Agreement shall be for five years commencing on
______________________, 2013.
3. AUTHORIZED USE
The City grants to Lessee the exclusive use of the Leased Premises for use as
an indoor soccer practice area and local soccer association offices only. The
Leased Premises shall be used and occupied by Lessee only for the uses
specified in this Agreement. Lessee is prohibited from any use of the Leased
Premises not specifically permitted under this Agreement without the prior
written approval of the City, such approval to be given at the City’s sole
discretion.
Agenda Page 101
2
4. RENT, FEES AND CHARGES
A. Rent shall be in the form of building improvements and
monthly rent payments as follows:
1. Lessee shall perform the building improvements shown on the
attached Exhibit A within the first four months of occupying
the Leased Premises, all at Lessee’s expense. All such
improvements shall be performed according to specifications
provided by Lessee and approved by the Albertville City
Council. All expenses incurred by Lessee in making such
improvements shall be credited against rent payments due per
paragraph 4.A.2 below, subject to a maximum credit of
$________________. Upon expiration of such rent credits,
Lessee shall begin making regular rent payments to Lessor.
Lessee shall provide proof of payment of all such qualifying
expenses. All such improvements shall become the property of
the Lessor upon termination of this Lease.
2. Monthly rent on the Leased Premises shall be as follows,
subject to the building improvement credit set forth in
paragraph 4.A.1 above:
Year 1: $__________ per month
Year 2: $__________ per month
Year 3: $__________ per month
Year 4: $__________ per month
Year 5: $__________ per month
3. As additional rent, Lessee shall pay monthly to the Lessor one-
twelfth of the annual payments in lieu of real estate taxes
required to be paid to Wright County.
4. Rent shall be paid to Lessor in advance on the first day of the
month. Payment shall be sent to the City of Albertville’s
Finance Director, or such other such person as Lessor may
specify, and that said Lessee will keep and maintain the Leased
Premises during the aforesaid term, and quit and deliver up the
Leased Premises to the Lessor at the end of the aforesaid term
or at any previous termination thereof for any cause, in as good
order and condition and state of repair, reasonable use and
Agenda Page 102
3
wearing thereof excepted, including all tenant improvements
required by paragraph 4.A.1 above, as the same now is or may
be put by the Lessor.
B. Utilities
The Lessee shall be responsible for paying all utilities consumed
during the term of the lease, including water, sewer, electric, gas and
garbage and for insuring its own belongings.
C. Interest and Late Fees
Lessee shall pay a penalty for late or delinquent payments during the
Term of this Agreement and any extensions of twelve percent per
annum on the balance of the unpaid amount calculated from the date
the amount is due until the close of the business day upon which the
delinquent payment is received by the City.
D. Security Deposit
Lessee shall provide the City a security deposit of $____________
(“Lessee Security Deposit”). The Lessee Security Deposit will be
returned to Lessee when this Agreement is terminated unless the
City chooses to apply it to unpaid rent or other damages. Tenant’s
Security Deposit will accrue no interest.
If Lessee defaults with respect to any provision of this Agreement,
the City may use, apply or retain all or any part of Lessee Security
Deposit for the payment of any rent or other sum in default and any
amounts the City may spend by reason of Lessee’s default to the full
extent permitted by law. If any portion of Lessee Security Deposit is
so used, Lessee shall, within ten (10) days after written demand
therefore, deposit with the City, in a form acceptable to the City, an
amount sufficient to restore Lessee Security Deposit to the
aforementioned amounts, and Lessee’s failure to do so shall be a
material default and breach of this Agreement. The City shall not be
required to keep any security deposit separate from its general funds,
and Lessee shall not be entitled to interest on any such deposit.
5. LEASEHOLD IMPROVEMENTS
A. Installation/Construction
All improvements required to be installed by Lessee pursuant to
Agenda Page 103
4
paragraph 4.A.1 above and any further improvements necessary to
accommodate Lessee’s operations will be the responsibility of
Lessee and must be approved by the City prior to implementation.
Lessee is responsible for obtaining the necessary building permits
from the City Building Official. The cost of installation of the
Lessee’s equipment and any alterations approved by the City to the
Leased Premises shall be made at Lessee’s sole cost and expense.
All installations and alterations shall comply with: (1) the City’s
design and construction standards as interpreted and administered by
the City Building Official; and (2) shall be submitted for written
review and approval by the City Building Official. Lessee is
responsible for all clean-up of construction materials, debris and
packaging associated with construction or installations. All such
installations shall become the property of the City upon termination
of this Lease.
B. Permits
Lessee shall maintain in force and effect all permits, licenses,
agreements and similar authorizations to use the Leased Premises.
Lessee’s failure to maintain such permits, licenses, agreements and
similar authorizations shall not relieve Lessee from the performance
of its obligations under this Agreement.
C. Liens
Lessee shall: 1) keep the Leased Premises free and clear from all
liens for labor performed and materials furnished on behalf of
Lessee; and 2) defend, at Lessee’s cost, each and every lien asserted
or filed against the Leased Premises, or against this Agreement and
any improvement on behalf of Lessee on the Leased Premises and
pay each and every judgment resulting from such lien.
D. Title to Improvements and Structural Alterations
All improvements and alterations to the Leased Premises thereafter
will be paid for by Lessee but shall remain the property of the City
upon the termination of the lease term. All personal property shall
be removed by Lessee upon termination of the lease term. In
addition to any other remedies available to the City, any
improvements or property that remains on the Leased Premises after
this time shall become the property of the City. Any cabinets or
other built-ins removed by the Lessee during such alterations shall
remain the property of the City.
Agenda Page 104
5
6. MAINTENANCE OBLIGATIONS
A. City Obligations
The City shall maintain the grass and shrubs outside the building.
B. Lessee’s Obligations
Lessee shall be obligated, without cost to the City, to maintain all
portions of the Leased Premises not maintained by the City per
paragraph 6A above, including removing snow and ice from the
sidewalks, entryways to the building, and parking lot. Lessee shall
keep the Leased Premises in good appearance, repair, and safe
condition at all times. Lessee shall be responsible for all janitorial
service and garbage removal.
7. DAMAGE TO OR DESTRUCTION OF LEASED PREMISES
A. Repair
All damage or injuries to the Leased Premises and to fixtures,
appurtenances, and equipment by Lessee, moving property in or out
of the Leased Premises or by installation, removal of furniture,
fixtures, equipment, or other property by Lessee, or resulting from
any other cause of any other kind or nature whatsoever due to
carelessness, omission, neglect, improper conduct, or other causes of
Lessee, or their subtenants, invitees, agents, or employees shall be
repaired, restored, or replaced promptly by Lessee within fifteen (15)
days at its sole cost and expense to the satisfaction of the City. The
City will notify Lessee in writing if the City determines repairs must
be made. No rent shall abate if damage resulted from any act of
Lessee or their subtenants, invitees, agents or employees. If repairs
are not made within fifteen (15) days of the notification of the
damage, and the City was not responsible for the damage, the City
will notify Lessee in writing that the City will make the repairs and
charge Lessee the current hourly rate for labor and materials at cost,
unless otherwise agreed to. An administrative overhead charge of
fifteen percent (15%) shall be added to the total cost (employee plus
material cost) of the billing. Additional interest at the rate of
eighteen percent (18%) per year shall accrue if the sum is not paid
within five (5) days after rendition of a bill or statement therefore. If
the City and its employees or agents damage the Leased Premises
through their gross negligence or intentional act, the City will be
solely responsible for the repairs.
Agenda Page 105
6
If damage occurs that is not the fault of Lessee, or any of its
subtenants, invitees, agents, or employees in any way making the
Leased Premises unusable, rent and all other charges shall be abated
on a per day pro-rated basis during the time the Leased Premises are
unusable.
B. Exceptions from Liability
The City shall not be liable or responsible to Lessee for any damage
or destruction to Lessee's property from any cause other than the
City’s own intentional or negligent acts.
8. INDEMNIFICATION AND INSURANCE
A. Indemnification
To the fullest extent permitted by law, Lessee does hereby covenant
and agree to indemnify and hold harmless the City and its Council
Members, officers, agents and employees (collectively
“Indemnitees”) from and against any and all liabilities, losses,
damages, suits, actions, claims, judgments, settlements, fines or
demands of any person arising by reason of injury or death of any
person, financial loss, or damage to any property, including all
reasonable costs for investigation and defense thereof (including, but
not limited to, attorney’s fees, court costs and expert fees) of any
nature whatsoever arising out of or as a result of Lessee’s operation
at or about the Leased Premises, or the acts or omissions of Lessee’s
officers, agents, employees, contractors, subcontractors, licensees or
invitees, regardless of where the injury, death or damage may occur.
The City shall give Lessee reasonable notice of any such claim or
action. In indemnifying or defending an Indemnitee, Lessee shall
use legal counsel reasonably acceptable to the City. The City, at is
option, shall have the right to select its own counsel or to approve
joint counsel as appropriate (considering potential conflicts of
interest) and any experts for the defense of claims. Lessee, at its
expense, shall provide to the City all information, records,
statements, photographs, video, or other documents reasonably
necessary to defend the parties on any claims.
This provision shall survive expiration or earlier termination of the
Agreement. The furnishing of the required insurance hereunder
shall not be deemed to limit Lessee’s obligations under this
Agreement.
As a distinct and separate indemnification obligation, Lessee shall
Agenda Page 106
7
defend, indemnify and hold the City harmless from any claims or
liabilities as a result of Lessee’s failure to procure and to keep in
force the insurance required as part of this Agreement.
Lessee shall not use or permit the Leased Premises to be used in any
manner that would void Lessee or the City’s insurance or increase
the insurance risk. Lessee shall comply with all requirements
imposed by the insurers for the City and Lessee.
B. City Insurance
During the term of this Lease, the City shall insure the building and
all fixtures belonging to the City against fire and other casualty. The
City shall pay all premiums to obtain and keep in force such
insurance coverage. The City shall not be obligated to insure
Lessee’s contents.
C. Lessee Insurance
During the term of this Lease, Lessee shall maintain in force a
liability insurance policy from an insurer licensed to do business in
Minnesota naming the City as an additional insured with the
following minimum liability limits: $500,000 per person for
personal injury or death and $1,000,000 per occurrence for personal
injury or death or damage to property. Prior to occupancy of the
Leased Premises and annually thereafter Lessee shall present the
City with certificates of insurance evidencing the required insurance.
Lessee shall be responsible for providing its own contents and
renter’s insurance.
9. COMPLIANCE WITH LAWS
A. Compliance with Laws
Lessee, at its sole expense, shall promptly comply with and conform
to all present and future laws, ordinances, regulations, and
requirements of federal, state, county, and other government bodies
of competent jurisdiction that apply to or affect, either directly or
indirectly, Lessee’s use and occupation of the Leased Premises, and
with any lawful order or direction of any public officer relating
thereto and operations and activities under this Agreement. The City
shall have the right to and shall adopt and enforce reasonable rules
Agenda Page 107
8
and regulations with respect to the use of the Leased Premises and
related facilities, which Lessee must observe and obey.
B. Notices of Violation
Lessee shall notify the City within two (2) Business Days of any
notices of violation of any laws, ordinance, rule, regulation or order.
10. DEFAULT
A. Events of Default
Any of the following shall constitute a default of this Agreement by
Lessee.
1. Lessee is in arrears in the payment of rent for a period of five
(5) days after written notice of default from the City.
2. Lessee fails to operate the Leased Premises as required, or
Lessee fails or neglects to do or perform or observe any of the
covenants contained herein on its part to be kept and
performed and such failure or neglect shall continue for a
period of not less than thirty (30) days after the City has
notified Lessee in writing of Lessee’s default hereunder and
Lessee has failed for reasons other than those beyond
Lessee’s control to correct such default within said thirty (30)
days (such thirty (30) day notification period shall not be
construed to apply to any default in payment of rent).
3. Lessee shall be declared to be bankrupt or insolvent according
to law, or if any assignment of its property shall be made for
the benefit of creditors.
4. Lessee fails to maintain the required insurance for any time
period as required under this Lease.
B. The City’s Rights Upon Default
The City, or those having an estate in the Leased Premises, may take
any of the remedies set forth in the following subsections.
1. Immediately, or at any time thereafter, without further notice
to Lessee, but in compliance with applicable law, re-enter into
or upon the Leased Premises or any part thereof and take
possession of the same fully and absolutely without such re-
entry working a forfeiture of the rents or other charges to
Agenda Page 108
9
Lessee for the full Term of this Agreement, and in the event
of such re-entry, The City may proceed for the collection of
the rents or other charges to be paid under this Agreement or
for properly measured damages; or
2. The City may, at its election, terminate this Agreement upon
written notice in the manner hereinafter provided and re-enter
Leased Premises as of its former estate therein, and Lessee
covenants in case of such termination to remain responsible to
the City for all loss of rents and expense including reasonable
attorneys fees which the City has suffered or paid by reason
of termination, during the residue of the Term; or
3. The City shall further have all other rights and remedies
including injunctive relief, ejectment or summary proceedings
in unlawful detainer, and all such remedies shall be
cumulative.
11. RIGHT OF ENTRY
The City, its officers, agents, and employees shall have the right, without
limitation, throughout the Term of this Agreement to enter upon the Leased
Premises for any lawful purpose, including the purpose of determining
whether Lessee is complying with its obligations herein.
Such entry by the City shall not be deemed to excuse Lessee's performance
of any promise, term, condition, or covenant required of it by this
Agreement, and shall not be deemed to constitute waiver thereof by the
City.
12. QUIET ENJOYMENT
So long as Lessee is not in default in its obligations hereunder, the City
covenants and agrees that Lessee shall have, hold and enjoy peaceful and
uninterrupted possession of all of the Leased Premises, subject to Lessor’s
right of entry set out herein.
13. GENERAL PROVISIONS
A. Sublease or Assignment
Lessee shall not sublease, transfer, assign or allow any other person
or entity operating rights under this Agreement without the City’s
prior written consent, which consent shall not be unreasonably
withheld. This Agreement is binding on all legal representatives,
Agenda Page 109
10
successors or assigns. Consent is subject to payment of all rents and
the performance of all covenants, conditions and terms contained in
this Agreement by Lessee. In no case shall the City be obligated to
consent to any sublease, transfer or assignment.
B. Minnesota Law and Jurisdiction
The laws of the State of Minnesota shall govern this Agreement.
Lessee further consents to the jurisdiction of the Minnesota state
courts.
C. Severability
If any term, condition, or provision of the Agreement or the
application thereof to any person or circumstance shall, to any
extent, be held to be invalid or unenforceable, the remainder thereof
and the application of such terms, provisions, and conditions to
persons or circumstances other than those as to whom it shall be held
invalid or unenforceable shall not be affected thereby, and the
Agreement and all the terms, provisions, and conditions hereof shall,
in all other respects, continue to be effective and to be complied with
to the full extent permitted by law.
D. Accord and Satisfaction
No payment by Lessee of a lesser amount than the rent or other
payments required in this Agreement shall be deemed an accord and
satisfaction. The City shall accept such payment without prejudice
to the City’s rights to recover the balance of rent and/or payments
due or to pursue any other remedy.
E. Attorney’s Fees and Costs
In the event of any default of this Agreement, Lessee shall reimburse
the City for all reasonable and documented fees and costs incurred
by the City including reasonable attorney’s fees, relating to such
default and/or the enforcement of the City’s rights hereunder.
F. Relationship of Parties
It is understood and agreed that nothing in this Agreement is
intended or shall be construed as in any way creating or establishing
the relationship of co-partners hereto, or as constituting Lessee as the
agent, representative or employee of the City for any purpose or in
any manner whatsoever. Lessee is to be and shall remain an
independent Lessee with respect to all services performed under this
Agreement.
Agenda Page 110
11
G. Headings
The headings incorporated in the Agreement are for convenience in
reference only and are not a part of the Agreement and do not in any
way limit or add to the terms and provisions hereof.
H. Waiver
The waiver or breach by Lessee or the City of any term of this
Agreement shall not be deemed a waiver of any subsequent breach
of the same term or any other term of this Agreement.
I. Entire Agreement
This represents the entire agreement between the parties. This
Agreement may only be modified if done in writing and executed by
both parties.
K. Return of Leased Premises
Upon expiration or termination of this Lease, Lessee shall return the
Leased Premises to the Lessor in substantially the same condition as
when Lessee took possession (but with modifications to the Leased
Premises as approved by the Lessor), normal wear and tear excepted.
IN WITNESS WHEREOF, the parties hereto signed and executed this instrument
the day and year first above written, but effective as of the date set forth in Article
2.
Date: __________________, 2013 CITY OF ALBERTVILLE
By:______________________________
Its:______________________________
Date: __________________, 2012 LESSEE
By:____________________
Its:_____________________
Agenda Page 111
12
EXHIBIT A
Approved Modifications to Building
Agenda Page 112
City Administrator’s Update
February 14, 2013
GENERAL ADMINISTRATION
5964 Main Avenue Lease: Staff has been working with the Soccer Association regarding the
use and lease of the old City Hall/Public Works building on Main Avenue. A conceptual lease
arrangement will be reviewed with the Council on the 19th to determine if the City would like to
pursue such a lease/use arrangement.
Wright County Sheriff’s Report: The Sheriff’s Office Annual Report for 2012 for law
enforcement activity and crimes will be handed out at the meeting on the 19th. Total calls
reported for 2012 was 3,095, and the 5 year average is 3,377.
Fraser Steel: Site and Building Plans, Development Contract, Business Subsidy and public
hearing will be held at the February 19th meeting.
Ongoing Projects/Tasks:
• Arena (Roof, 2nd Sheet Feasibility, Communications)
• NW Commercial Park Property Appraisal
• Public Building Interconnect
• Televising Options
• Website Creation
ENGINEERING/PUBLIC WORKS
6041 Large Avenue NE: At the request of the property owner, Sherburne State Bank, the
private water service was permanently disconnected by public works. By agreement, the City
will be reimbursed all cost associated with the work. This property has been vacant for some
time now and the Bank desires to have all utilities into the home shut off or disconnected. The
water service for this lot has no curb stop and is fed through the neighboring properties.
2013 Street Projects: Proposed 2013 street, utility and trail projects will be presented at the
meeting on the 19th.
UPCOMING EVENTS and ANNOUNCEMENTS
• Congratulations to Mayor Hendrickson and husband Ryan on the birth of their new baby
girl, Emilie Christine.
• STMA Finance Advisory Committee: STMA Superintendant, Dr. Behle, has extended an
invitation for an Albertville Council Member to be part of a financial advisory committee
Agenda Page 113
City Administrator’s Update Page 2 of 2 February 14, 2013
that meets two to three times per year from 5:30-7:00 p.m. Please let me know if you
would like to be part of this committee.
• March 14, 2013 – State of the Cities (WCEDP), Delano City Hall, 11:30 to 1:00 p.m.
• April 3, 2013 – Day at the Capitol/Schools for Education Equity ( In conjunction with
Schools for Education Equity (SEE), STMA will be going to the Capitol on Wednesday
April 3rd to advocate for equity funding for schools and equalization of school property
taxes. Please let me know if you are interested in attending. (Information to be handed
out at meeting).
• April 29, 2013 - Joint Cities and School District Meeting
Attachments: (None)
Agenda Page 114