2021-08-12 Special Assessments Application AgreementMinanPACE
380 Saint Peter Street i Suite 850 l Saint Paul, MN 55102
651-224-5686 (phone) l 651-223-5198 (fax)
The Property Assessed Clears Energy Program WIRACE), administered by the Saint Paul Port Authority, provides a finance mechanism for the Installation of
energy efficiency, renewable and conservation Improvements that are permanently fixed to the eligible properties and petition for special assessments In
accordance with Minnesota Statutes Sections 216C.435 and 216C.436 and Chapter 42, and the MinnPACE program. Foriurdierinformatlon on eliglbl/ltyre-
quiremen&,, see theAdminlstrat/ye 6uidellnesandFlnanc/#7 Summary foundatminnpace.com or contactthe SalntPaulPortAuthorltyat 651204-6236.
This MInnPACE Agreement contains an Application section, a Petition for Special Assessment, and designated attachments, all of which must be reviewed and
completed, and constitute a full and complete agreement.
APPLICATION
Eligibility Requirements
• Applicant(s) is/are legal owner(s) of the Property described in the Application (the "Property.")
• Property is developed and located within the City of Aibertviiie
(Reuiseasneededifvedalassessmentsare tobe1eWedbya county or town.)
and County of Wright
• Property Owner Is current on all mortgage(s). All lenders have signed the Lender Acknowledgement Form for MInnPACE Financing.
• Property Owner is not in bankruptcy and the Property is not an asset in a bankruptcy proceeding.
• There are no federal or state Income tax liens, Judgment (lens or similar Involuntary liens on the Property,
• Applicant(s) can be verified as being in "Good Standing" with the Minnesota Office of the Secretary of State or are be able to provide a Member Agree-
ment or Operating Agreement certified to be true or correct.
• Improvement costs are reasonable for the scope of the proposed Improvements and in relation to Property value.
• Requested Financing Amount does not exceed the lesser of 20 percent of the Property Market Value or the actual cost of Installing the Improvements,
including the cost of necessary equipment, materials and labor, the cost of energy audit or renewable energy feasibility study and the cost or verification
of installation, less the value of expected rebates.
• Term of financing requested does not exceed the weighted average of the useful life of the Improvements.
• Applicant(s) has/have obtained an energy audit or reviewable energy feasibiliV study on the Property. k0ch when subirilttfrig application.
Below, please list and identify all real estate upon which the improvement will constructed or will be directly benefited.
Property Owner(s) Legal Name(s) (as they appear on Property tax records)
rlicant#I: Advanced Volumetric Alliance, LLC
List all parcel #s Owned by Applicant #1: PID 101500352100 Legal description: Lot 1, Block 1, AVA Addition, Wright County, Minnesota
List all parcel #s Owned by Applicant
Appdant 03:
List all parcel #s Owned by Applicant
ApOlcant #4:
List all parcel #s Owned by Applicant
Initials
1 (all signers)
r`7 MinnPACE
Properly OwrmW TylMM - ai c% a/i till akoy
380 Saint Peter Street I Suite 8501 Saint Paul, MN 55102
651-224-5686 (phone)1651-223-5198 (fax)
❑ Individual(s)/Joint Tenants/Common Property (not intrust) ❑ Corporation ®Limi iM Liability Company
❑ Trust/TrusteestLiving Trust ❑ Partnership ❑ Other (Specify):
Pnwm Omer C011M 111roi'ala IN
Name: Casey Darkenwald Email: casey@darkenwaldcorp.com
Phone (Day): (612) 598-3920 Cell Phone: (612) 598-3920
Phy" Prop"Add= Legal description: Lot 1, Block 1, AVA Addition, Wright County, Minnesota
Street Address: PID# 101500352100 City, State Zip: Albertville, MN 55301
Pro" Type: G Commercial/Industrial ❑ Apartment (more than four units)
Square Footage of Building (If applicable): N/A
FkNM AMOUnt ReqWN&st ; $5,000,000.00 net proceeds; $5,182,885.82 total loan amount
Fhmn[e Temc 1110 Years o Other: 20 years
Name of Mortgage Lender: N/A
Mortgage Lender Address: N/A
Outstanding Principal Balance: N/A
Do you confirm that there is only one mortgage lender tied to this
Ughy CMnPW Wright Hennepin Electric
i Desalpftn-aftach all relevant dmumentatlpn, Ircludfn9 bids. and estmz
Newly built, energy efficient manufacturing facility and office building, approximately 180,000 square feet.
Approximately $35 million project, built by Benson-Orth, developed and owned by Casey Darkenwald and
Headwaters Development.
I
Initials
2- (all signers)
1. Y' � Mi nn PACE
Petition for Special assessment
380 Saint Peter Street I Suite 8501 Saint Paul, MN 55102
651-224-5686 (phone)1651-223-5198 (fax)
We hereby acknowledge that we will be obligated to pay the assessments when due. The assessment and the Interest and any penalties thereon will constitute
a lien against the Property until they are paid, even if Uwe sell the Property to another person. I/we understand that assessment installments together with the
Interest on the assessment will be collected on my/our Property tax bill in the same manner and at the same time as Property taxes and will be collected on my/
our Property tax bill in subject to the same penalties, remedies and lien priorities as for Property taxes in the event of delinquency, including foreclosure. Vwe
waive any and all procedural and substantive objections to the installation of the Improvements and the special assessments, Including but not limited to any
public or other hearings or hearing requirements and any claim that the assessment exceeds the benefit to the Property. I/we waive any appeal rights otherwise
available pursuant to M.S.A. §429.081,
The City or County will assess the cost of the Improvements as a special assessment against the Property In accordance with the City's or County's charter, code,
or ordinances regulating assessments. The Assessment will carry a term of up to 20 years and will be certified by the City or County annually to County for col-
lection with Owner's Property taxes. Owner may choose to prepay all or a portion of the assessment directly to the City or County at any time during the term of
the Assessment. All principal amounts certified annually will carry interest amounts calculated on a fixed interest rate as established by the Saint Paul Port Au-
thority prior to ratification of the Assessment by the City or County.
Declarations
Kjr c,' ?? th ^ i," r... i' ft: t a .� '" 2'} l i't7f'!?ElPr�!I/ A! 11Piii�"}` �a" +t .:� �4 : � i 1`" a� + 4 f rJ�� ra/. •�r?
..�irflaJ, _s,l�:�9G`,J,'�a':.;,:,1, t�.c°L,,� S,_r9r_ 1,-'!'L `G�:.r_'dl'25flt r �!F(<._, criE;3,U+.. 4���1,. W �e,�'n..rJ;"Jtrs:St%tara:' +. o..,.-r+1��s..
1. 1 am/we are the current owner of record of the Property described herein (the "Property.")
2. The Property is not currently involved in a bankruptcy proceeding.
3. I/we are current on any mortgage(s) or other loan(s) secured by the Property.
4. Ilwe and the Property meet the Eligibility Requirements listed on page one,
5. I/we waive any and all procedural and substantive objections to the installation of the Improvements and the special assessments, Including but not limited
to any public or other hearings or hearing requirements and any claim that the assessment exceeds the
benefit to the Property. I/we waive any appeal rights otherwise available pursuant the M.S.A. § 429.801.
6. That (1) the information provided in, or in connection with, this Application is true and correct as of the date set forth opposite my/our signature(s) on this
Application and 01) that I/we understand that any intentional or negligent misrepresentation(s) of the Information contained in this Application, or provid-
ed in connection with the Application, may result in civil liability and/or criminal penalties
including, but not limited to, fine or imprisonment or both and liability for monetary damages to the Saint Paul Port Authority, any lender providing financ-
ing for Improvements described herein, their agents, successors and assigns, Insurers and any other person who may suffer any loss due to reliance upon
any misrepresentation(s) which I/we have made in this application.
7 I/we agree that the selection of any product(s), equipment and measures referenced In this Application (the "Improvements,") and the decisions regarding
the purchase, Installation and ownership/maintenance of the Improvements Ware my/our sole responsibility and that I/we have not relied upon any repre-
sentations or recommendations of MInnPACE/Saint Paul Port Authority, its agents, representatives, assignees, or employees In making such selection or
decision, and that my manufacturer, dealer, supplier, contractor or Installer of the Improvements is not an agent, employee, assignee or representative of
MlnnPACE/Saint Paul Port Authority.
8. Owner agrees that any review and approval of the Improvements by a City, County, State or governmental department is granted only in its capacity of
administering and enforcing existing relevant codes. Any such approval Is only as to compliance with the codes and does not create a special duty to the
Owner nor establish a warranty of quality of materials and workmanship.
9. I/we understand the MInnPACE/Salnt Paul Port Authority makes no warranty, whether expressed or implied, with respect to the choice, use or application
of the Improvements, including without limitation, the implied warranties of merchantability and fitness for any particular purpose, or the use or applica-
tion of the Improvements.
10. I/we agree that MinnPACE/Saint Paul Port Authority has no liability whatsoever concerning (1) the quality or safety of any
Improvements, including their fitness for any purpose, (11) the estimated energy savings produced by or performance of the I
Improvements, (111) the workmanship of any third parties, (iv) the installation or use of the improvement including, but not limited to, any effect on indoor
pollutants; or (v) any other matter with respect to MInnPACE/Salnt Paul Port Authority.
Initials
-3- (all signers)
MinnPAC E 380 Saint Peter Street I Suite 850 I Saint Paul, MN 55102
651-224-5686 (phone) i 651-223-5198 (fax)
This statement is given to MinnPACE, a division of the Saint Paul Port Authority, and its Successors for the purpose of obtahing credit. It is true and correct in
every detail and fairly shows my/our financial condition at this time. MInnPACE and Its Successors are authorized to check mftr credit and employment histo-
ry or any other information provided.
Indhddlual Appikant Individual Co -Applicant
Full Name: Michael Hoagberg Full Name:
Street Address: 7730 Laredo Dr. Unit 446 Street Address:
City/State/Zip: Chanhassen, MN 55317 City/State/Zip:
Carver r,,,,,,+,,.
Date of Birth: 11 /28/1979
of Birth:
THE UNDERSIGNED CERTIFY THAT TH INFORMATION CONTAINED IN THIS FORM HAS BEEN CARE-
FULLLY REVIEWED AND THAT IT IS TRUE AND CORRECT IN ALL RESPECTS.
Co -Applicant Signature (if joint ownership) Date
r:+ MinnPAC E
380 Saint Peter Street I Suite 8501 Saint Paul, MN 55102
651-224-5686 (phone)1651-223-5198 (fax)
All appllcadens MUST WME the Wbimnadon hated belovL IncomtNete applkatlons WLL NOT be processed
or canldered for HWA[E fkmdnp.
❑ Evidence of an Energy Audit or Renewable Energy System Feasibility (including cost savings, rebates, etc.)
❑ Construction contracts and bids
❑ Mortgage statement
❑ Current tax statement for the property receiving improvements
❑ Lender Acknowledgement Form
❑ Tax returns for the past three years for the Borrowing Entity
❑ Financial statements for the current year for the Borrowing Entity
❑ Tax returns for the past three years for the Operating Entity
❑ Debt schedule of subject property —all debt —mortgage and subordinated debt
❑ Debt schedule of operating entity —all debt of the operating entity
❑ Entity documents from borrower —articles, operating agreement, etc.
❑ Copy of a driver's license or state ID for each signer
N, to 0ewled ftowo I�r.
❑ Evidence of an Energy Audit or Renewable Energy System Feasibility (including cost savings, rebates, etc,)
❑ Construction contracts and bids
❑ Mortgage statement
❑ Current tax statement for the property receiving Improvements
❑ Lender Acknowledgement Form
❑ Tax returns for the past three years for the Borrowing Entity
❑ Financial statements for the current year from the Borrowing Entity
❑ Rent roll of Subject Property
❑ Debt schedule of operating entity —all debt of the operating entity
❑ Entity documents from borrower —articles, operating agreement, etc.
❑ Copy of a driver's license or state ID for each signer
Signatures of all Property Owners and Notary
Property Owner Signature
Property Owner Signature
Property Owner Signature
Property Owner Signature
For an acknowledgment in an individual capacity,
State of Minnesota
County of
Date:_
Printed
Printed
Printed
Printed
This instrument was acknowledged before me on ___ (date) by __ _ (name(s) of person(s).
(Seal if any)
-4-
MinnPACE
�T/s��sEn n r�
■ � f L AC E
Lender Acknowledgement Form
Client Name: Advanced Volumetric Alliance, LLC
Property Address: 70th Street & Kadler Ave NE
City, State, Zip: Albertville, MN 55301
Is this the only mortgage associated with this property? Yes.
380 Saint Peter Street ( Suite 850 j Saint Paul, MN 55102
651-224-5686 (phone)1651-223-5198 (fax)
The undersigned, on behalf of the Lender, which is the holder of a mortgage lien on the Property described in this Applicatim and Petition for Special Assessments in
accordance with MinnPACE, administered by the Saint Paul Port Authority, acknowledges that it has reviewed the Applicants completed MInnPACE Program Special As-
sessments Application and Petition Agreement, and confirms that the Applicants receipt of MinnPACE financing and petition for assessment in connection therewith, and
the imposition of, and any assignment of, MinnPACE will not constitute a default under Lendefs mortgage.
Lender/Institution Namp;-,5tearns Barnal Association
Name (print): David Fedancek
Title: Senior Vice President
Date: August 11, 2021
Notary
For an acknowledgment in an individual capacity:
State of Minnesota
County of Stearns
S
40_� - - _O'
Jane 7 Utchy
{ Notary Public
Minnesota
bY� [ 1.2025
This instrument was acknowledged before me only f l 21(date) by ---- +(name(s) of person(s). ________--------- (Sea) if any
Signature of notarial officer _
Title (and Rank) My commission expires:2'--
-5-
Exhibit C
Approval Letter from Port Authority
C-1
C4
Saint
PORT AUTHORITY
August 18, 2021
Tammi Vaith
Wright County
10 2nd Street NW
Buffalo, MN 55313
.DearTammi:
The Saint Paul Port Authority is requesting the Wright County Board place a Property Assessed
Clean Energy (PACE) special assessment on the following parcel as requested by the property
owner:
Property Owner
Advanced Volumetrics Alliance,
LLC
Parcel Number
101-500-352100
Assessment
Interest
Amount
Accrual Date
$5,182,885.82
01/01/2022
The parcel identification number above is for the larger parcel that is owned by Darkenwald
Holdings LTD, which is an affiliated entity to Advanced Volumetrics Alliance, LLC. The new parcel
is currently being re -platted and a new PID number will be issued in the coming weeks. The legal
description of the new parcel is Lot 1, Block 1, AVA Addition, Wright County, Minnesota. The
PACE assessment should be transferred to the new parcel, where the new AVA building will be
constructed, when the new PID number is created.
As the administrator of PACE for Wright County, the Port Authority has reviewed this assessment
and it has determined that the project conforms with the Minnesota PACE statutes. The interest
rate is 5.475%. The total should be amortized evenly over the 20-year term of the assessment
payments. The application and amortization schedule are also attached.
We are asking that your Board act on this at its August 24, 2021 meeting.
Thank you for your assistance and we are so pleased to be working with you on another great
project.
Sincerely, SS
Peter Klein
Vice President of Finance
Exhibit D
County Resolution Imposing Special Assessment
D-1
JtjT Y O*
}
� � O
d� �y
'rose
RESOLUTION #21-55
BOARD OF WRIGHT COUNTY
COMMISSIONERS
DATE ADOPTED:
August 24, 2021
RESOLUTION #21-55
Page 1 of 1
Christine Husom
District 1
Darek Vetsch
District 2
Mark Daleiden
District 3
Mary Wetter
District 4
Michael Kaczmarek District 5
WHEREAS Wright County is a public entity within the State of Minnesota; and
WHEREAS, Resolution #14-54 approved a Joint Powers (JPA) with the St. Paul Port Authority to
administer and implement the Property Assessed Clean Energy (PACE) program in Wright County; and
WHEREAS, The County has received a request from the St. Paul Port Authority to place a special
assessment pursuant to the JPA on the following property tax parcel:
Owner: Darkenwald Holdings LTD
Parcel ID: 101-500-3 52100
Amount assessed: $5,182,885.82
Interest rate: 5.475%
Term: 20 years
confirms with the Minnesota PACE statutes. Interest, at a rate of 5.475%, will start to accrue on January 1,
2022. The assessment will amortize over a 20-year term, beginning in 2022. An amortization schedule as well
as the PACE application requesting this assessment from the property owner is attached to this resolution.
Motion by
Commissioner Vetsch
Roil Call Vote:
YES ABSENT
HUSOM
X
VETSCH
�(
DALEIDEN
X __—
WETTER
X
KACZMAREEK
x
STATE OF MINNESOTA)
ss.
County of Wright
Seconded by
Commissioner llusom
NO ABSTAIN
1, Lee Kelly, duly appointed and qualified_ Cotiinty Administrator of the County of Wright, State of Minnesota, do hereby certify that I have
compared the foregoing copy-ofthis resolution with the original minutes of the proceedings of the Board of County Commissioners, Wright
County, Minnesota, at their session held on the 24tb day of August, 2021, now on file in my office, and have found the same to be a true and correct
copy thereof.
Witness my hand and official seal at Buffalo, iAunesota, this 24th day of August, 2021.
Lee Kelly, County Administrator
Exhibit E
Amortization Schedule Approved by County
Period Year BB PMT P I EB
0
2021
(5,182,885.82)
1
2022
(5,182,885.82)
5432,801.25
149,038.28
283,763.00
(5,033.847.54)
2
2023:
(5,0331847.54)
432,801.28
157,198.13
275,603.15
(4,876,649.41)
3
2024
(4,876.649.41)
432,801.28
165,804.72
266,996.56
(4,710.844.69)
4
2025
(47710,844.69)
432,801.28
174,882.53
257,918.75
(4.535,962.16)
5
2026
(4.535,962.16)
432,801.28
184.457.35
248343.93
(4,351.504.81)
6
2027
(4,351.504.8I)
432,801.28
194.556.39
238,244.99
(4,156,948.42)
7
2028
(4,156,948.42)
432,801.28
205.2G8.35
227,592.93
(3,951,740.07)
8
2029
(3.951,740.07)
432.801.28
216,443.51
216.357.77
(3.735.296.56)
9
2030
(3.735.296.56)
432,801.28
228,293.79
204.507.49
(3,507.002.77)
10
2031
(3,507,002,77)
432,801.28
240,792.88
192,008.40
(3,266,209.89)
11
2032
(3,266.209.89)
432,801.28
253,976.29
178.824.99
(3,012,233.60)
12
2033
(3,012.233.60)
432,801.28
267.881.49
164.919.79
(2,744,352.11)
13
2034
(2.744,352.11)
432,801.28
282.548.00
150,253.28
(2,461.804.11)
14
2035
(2,461.804.11)
432,801.28
298,017.50
134.783.78
(2,163,786.61)
15
2036
(2,1631786.61)
432,801.28
314333.96
118.467.32
(1,849.452.65)
16
2037
(1,849,452.65)
432,801.28
331,543.75
101,257.53
(1.517.908.90)
17
2038
(1,517.908.90)
432.801.28
349.695.77
83,105.51
(1.168,213.13)
18
2039
(1,168.213,13)
432,801.28
368.841.61
63,959.67
(799,371.52)
19
2040
(799,371.52)
432,801.28
389,035.69
43,765.59
(410,335.83)
20
2041
(410.335.83)
432.901.28
410,335.83
22.465.45
-
E-1