2024-02-20 City Council Agenda Packet
City of Albertville Council Agenda
Tuesday, February 20, 2024
City Council Chambers
7 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.
1. Call to Order
2. Pledge of Allegiance – Roll Call Pages
3. Recognitions – Presentations - Introductions
4. Public Forum – (time reserved 5 minutes)
5. Amendments to the Agenda
6. Consent Agenda
All items under the Consent Agenda are considered to be routine by the City staff and will be
enacted by one motion. In the event an item is pulled, it will be discussed in the order listed on
the Consent Agenda following the approval of the remaining Consent items. Items pulled will
be approved by a separate motion.
A. Approve the February 5, 2024, regular City Council Meeting minutes as presented. 3-7
B. Authorize the Tuesday, February 20, 2024, 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.
8
C. Adopt Resolution No. 2024-08 accepting a donation from the Albertville Lions in the
amount of $1,750 for Fire Prevention materials for the Albertville Fire Departments.
9-10
D. Reduce Letter of Credit No. 757, held as security for Particle Control to no less than
$7,200, conditioned on any outstanding balances owed to the City being paid in full. 11
E. Adopt Resolution No. 2024-09 for 2024 Grant Application for Outdoor Recreation Grant
Program.
12
F. Approve Payment Application No. 10 to Gridor Construction in the amount of $238,975
for Wastewater System Improvements.
7. Public Hearing
A. Public Hearing – Medart Inc. Tax Increment Financing Request 13-43
• Mayor to open the public hearing
• Motion to close the public hearing
(Motion to adopt Resolution No. 2024-10 establishing Tax Increment Financing District
No. 21 within Development District No. 1 (the “TIF District”) and adopting the tax
increment financing plan therefor; authorizing the terms of an interfund loan; authorizing
the execution of a development agreement; and approving a business subsidy agreement.)
8. Wright County Sheriff’s Office – Updates, reports, etc.
9. Department Business
City of Albertville City Council Agenda
Tuesday, February 20, 2024 Page 2 of 2
A.City Council
1.Committee Updates (STMA Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.)
B.Building
1.2023 Year-End Building Permit Review 44-45
C.City Clerk – None
D.Finance – None
E.Fire
1.Albertville Fire Department Presentation – Year in Review 46-78
F.Planning and Zoning
1.Approve Albertville Zoning Amendment for Hot Tub Fences 79-82
(Motion to adopt Ordinance No. 2024-01 amending Section 1000.5.E.2e of the
Albertville Municipal City Code relating to Hot Tub Fences.)
G.Public Works/Engineering
1.Approve Purchase of Two Generators and Automatic Transfer Switch 83-86
(Motion to approve purchase of two Generators Model C70N6 and Model C45N6 and
an Automatic Transfer Switch from Cummins Inc, Des Moines Iowa for $122,250.)
2.Approve Purchase of New Caterpillar Portable Generator 87-92
(Motion to approve purchase of a Caterpillar Model XQ125BM Generator complete
with Trailer, Enclosure, and assorted Power Cords from Ziegler Power Systems for
$137,650.)
H.Legal – None
I.Administration
1.Municipal Consent for I-94 Gap Project 93-97
(Motion to adopt Resolution No. 2024-11 for layout approval for State Project 8680-
189 for Interstate Highway 94.)
2.City Administrator’s Update 98-99
10.Announcements and/or Upcoming Meetings
February 26
March 4
March 5
March 11
March 12
March 18
Joint Power Water Board, 6 pm
Parks Committee, 7 pm
City Council, 7 pm
Presidential Nomination Primary Election Day, 7 am to 8 pm
STMA Arena Board, 6 pm
Planning Commission, 7 pm
City Council, 7 pm
11.Adjournment
ALBERTVILLE CITY COUNCIL
DRAFT REGULAR MEETING MINUTES February 5, 2024 – 7 pm
Council Chambers
Albertville City Hall
1.Call to Order
Mayor Hendrickson called the meeting to order at 7 pm.
2.Pledge of Allegiance – Roll Call
Present: Mayor Hendrickson, Councilmembers Cocking, Hayden, Olson and Zagorski.
Staff Present: City Administrator Nafstad, City Attorney Couri, Fire Chief Bullen and City Clerk
Luedke.
3. Recognitions – Presentations – Introductions
A.Albertville Royalty
The current 2023-2024 Royalty Court introduced themselves and listed some of their favorite
activities they participated in over the last year. The City Council thanked the Albertville Royal
Court for their service to the Albertville Community.
B.2023 Albertville Fire Department Annual Awards
Fire Chief Bullen recognized the following Albertville Firefighters for their years of service:
Deputy Fire Chief Gammell, Firefighters Groves, Holzerland, Ose and Severson (5 years),
Firefighters Dording and Trainor (10 years), Captain Minette (15 years) and Captains Asleson and
Eull (20 years).
Chief Bullen said the department averaged 22 volunteer hours per member with Firefighter Follett
completing the most at 79.5 hours. Firefighter Follett also received the Top Caller Award and the
2023 Paul Heinen Above and Beyond Award. Chief Bullen reported for the first time ever he was
awarding a 2023 Hat Trick award to Firefighter Follett for responding to the most calls, having the
most volunteer hours and being the recipient of the Paul Heinen Above and Beyond Award.
The City Council thanked the Albertville Fire Department for their service to the Community
4.Public Forum
Senator Lucero provided a brief description of the items that passed at the last session and a preview
for the upcoming legislation to be discussed which would include the language for School Resource
Officers, homeowner association activities and artificial intelligence technology. He answered
questions from Council.
House Representative Hudson said this session, bonding would be a principal issue and he added he
has been collaborating with cities to gather bonding requests which for the City of Albertville could
include retiring the wastewater treatment ponds. He answered questions from Council
The Council thanked Senator Lucero and House Representative Hudson for attending the Council
meeting and providing a preview of the upcoming legislative session.
Agenda Page 3
City Council Meeting Draft Minutes Page 2
Regular Meeting of February 5, 2024
5.Amendments to the Agenda
There were no amendments to the agenda.
MOTION made by Councilmember Olson, seconded by Councilmember Cocking to approve the
February 5, 2024, agenda as submitted. Ayes: Cocking, Hayden, Hendrickson, Olson and Zagorski.
Nays: None. The motion carried.
6.Consent Agenda
All items under the Consent Agenda are considered to be routine by the City staff and will be
enacted by one motion. In the event an item is pulled, it will be discussed in the order listed on the
Consent Agenda following the approval of the remaining Consent items. Items pulled will be
approved by a separate motion.
A.Approve the January 16, 2024, regular City Council Meeting minutes as presented.
B.Authorize the Monday, February 5, 2024, payment of claims as presented, except bills
specifically pulled which are passed by separate motion. The claims listing has been
provided to City Council as a separate document and is available for public view at City
Hall upon request.
C.Adopt Resolution No. 2024-06 approve an off-site lawful gambling permit for STMA
Youth Hockey Association at St. Albert Parish Center located at 11458 57th Street NE on
February 23, 2024.
D.Approve an On-Sale Temporary Liquor License for STMA Youth Hockey Association at
St. Albert Parish Center located at 11458 57th Street NE on February 23, 2024.
E.Adopt Resolution No. 2024-07 approving a new lawful Gambling Premise Permit for
Knights of Columbus #4174 at The Hen and The Hog located at 5262 Kyler Avenue.
F.Approve a THC License application for Neighbor’s Bar & Grill located at 5772 Main
Avenue through December 31, 2024.
G.Accept Accounts Receivable Report.
H.4th Quarter Budget to Actual Report.
MOTION made by Councilmember Cocking, seconded by Councilmember Zagorski to approve
the February 5, 2024, consent agenda as submitted. Ayes: Cocking, Hayden, Hendrickson, Olson
and Zagorski. Nays: None. The motion carried.
7.Public Hearing – None
8.Wright County Sheriff’s Office – Updates, reports, etc.
The Wright County Sheriff’s deputy who was present reviewed the incidents that occurred in the
City of Albertville within the past few weeks.
9.Department Business
A. City Council
1.Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board,
FYCC, etc.)
Councilmember Olson provided an update from the Joint Power Water Board meeting which
included a discussion on options for a future water storage. He answered questions from the other
Councilmembers. Councilmember Olson also provided an update for the Parks Committee meeting
in which the Committee discussed their preferred vendor for the Central Park playground
equipment.
Agenda Page 4
City Council Meeting Draft Minutes Page 3
Regular Meeting of February 5, 2024
City Administrator Nafstad reported the City would be submitting a grant application to the DNR to
be used for the purchase of the new playground equipment for Central Park.
B. Building – None
C. City Clerk
1. Set Joint Governance Meeting 2024
City Clerk Luedke reported the STMA School District reached out to set their 2024-2025 calendar
with the Joint Governance meeting dates. The dates being recommended were Monday, April 29,
2024, and March 31, 2025, which are the 5th Mondays of the month.
MOTION made by Councilmember Olson, seconded by Councilmember Zagorski to set a Joint
Governance Meeting with the City of St. Michael and STMA School Board for Monday, April 29,
2024, at 6 pm at the City of Albertville and March 31, 2025, at St. Michael City Hall. Ayes:
Cocking, Hayden, Hendrickson, Olson and Zagorski. Nays: None. The motion carried.
D. Finance
1. Approve Purchase of Meraki Firewall
City Administrator Nafstad presented the staff report and reported on the City’s need to replace the
firewall because the current one was coming to the end of its life and would no longer be supported.
MOTION made by Councilmember Cocking, seconded by Councilmember Hayden to authorize
staff to purchase Meraki Firewalls, 5-year license and installation assistance not to exceed $12,000.
Ayes: Cocking, Hayden, Hendrickson, Olson and Zagorski. Nays: None. The motion carried.
E. Fire – None
F. Planning and Zoning – None
G. Public Works/Engineering – None
H. Legal – None
I. Administration
1. Albertville City Hall Terrazzo Restoration
City Administrator Nafstad presented the staff report and reported the terrazzo floors in the City
Hall main lobby had not been re-finished in years. He said the City received two quotes with the
low quote being submitted by Advanced Terrazzo & Tile and answered questions from Council.
MOTION made by Councilmember Cocking, seconded by Councilmember Hayden to accept low
quote for Albertville City Hall Terrazzo Floor Restoration submitted by Advanced Terrazzo & Tile
Co. Inc., in amount not to exceed $6,500. Ayes: Cocking, Hayden, Hendrickson, Olson and
Zagorski. Nays: None. The motion carried.
2. Towne Lake 4th and 6th Addition Rental Discussion
City Administrator Nafstad presented the staff report and said City staff was looking for Council’s
feedback. He provided background information on the Towne Lakes townhomes and said when the
development agreement were approved, it required the townhome units be owner-occupied.
Agenda Page 5
City Council Meeting Draft Minutes Page 4
Regular Meeting of February 5, 2024
Administrator Nafstad reported the City recently received requests from the owners to be able to
rent their units. He answered questions from Council and stated he asked Attorney Couri to research
the legalities behind the restriction and the development agreements.
City Attorney Couri reported he researched whether a municipality could restrict property owners
from renting their townhomes to see if it violated the Federal Fair Housing Act. He said after
researching the question, he did not believe the City was in violation of the act. Attorney Couri
reported his recollection of the provision was because the townhomes were located in a single
family home neighborhood that the Council at the time desired the townhomes to be maintained in a
comparable way as the homes. He answered questions from Council.
There was Council discussion regarding whether townhomes within Town Lakes 4th and 6th
Addition should be rentals and the consensus was to keep the townhomes as owner occupied and
not make any amendments to the development agreements.
3. Municipal Consent for I-94 Gap Project Discussion
City Administrator Nafstad provided an update on the I-9 Gap Project’s Memorandum of
Understanding (MOU) and said since the last Council meeting, the City had several conversations
with MnDOT regarding the City’s concerns on the project. He explained the background
information on the interchange studies and the approval process for the City’s concerns regarding
the CD Road. He reported he did not believe MnDOT could add the CD Road to the Gap Project
because it would need to be studied and ultimately approved by the FHWA. He reported he believed
MnDOT was reviewing the option of widening the bridge during the Gap project and he answered
question from Council.
There was Council discussion regarding I-94 Gap project, their concerns with not having the CD
Road built and the bridge not being widened at the time of the Gap project. Nafstad said he
expected a revised response from MnDOT in the form of a letter from the Commissioner, to be
presented at a future meeting.
4. City Administrator’s Update
City Administrator Nafstad reviewed the City Administrator’s update. The Council discussed
possible projects that the City could request bonding for which included a water trunk main
extension or water treatment ponds decommissioning.
City Attorney Couri answered questions from Council regarding the City’s ability to create
municipal cannabis store.
Announcements and/or Upcoming Meetings
February 12 STMA Arena Board, 6 pm
February 13 Planning Commission, 7 pm
February 19 City Hall closed in observance of President’s Day
February 20 City Council, 7 pm (Tuesday)
February 26 Joint Power Water Board, 6 pm
Parks Committee, 7 pm
March 4 City Council, 7 pm
March 5 Presidential Nomination Primary Election, 7 am to 8 pm
Agenda Page 6
City Council Meeting Draft Minutes Page 5
Regular Meeting of February 5, 2024
10. Adjournment
MOTION made by Councilmember Cocking, second by Councilmember Zagorski to adjourn the
meeting at 8:25 pm. Ayes: Cocking, Hayden, Hendrickson, Olson and Zagorski. Nays: None. The
motion carried.
Respectfully submitted,
_____________________________
Kristine A. Luedke, City Clerk
Agenda Page 7
Mayor and Council Request for Action
February 20, 2024
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 20, 2024, payment of the claims as presented
except the bills specifically pulled, which are passed by separate motion. The claims listing has
been provided to Council as a separate document. The claims listing is available for public
viewing at City Hall upon request.
BACKGROUND: The City processes claims on a semi-monthly basis. The bills are approved
through their respective departments and administration and passed onto the City Council for
approval.
KEY ISSUES:
• Account codes starting with 810 are STMA Arena 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.
Responsible Person: Tina Lannes, Finance Director
Submitted through: Adam Nafstad, City Administrator-PWD
Attachment:
• List of Claims (under separate cover)
Agenda Page 8
Mayor and Council Request for Action
February 20, 2024
SUBJECT: CONSENT – CLERK – ALBERTVILLE LIONS DONATION FOR FIRE
PREVENTION MATERIALS
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the
following:
MOTION TO: adopt Resolution No. 2024-08 accepting a donation from the Albertville Lions in
the amount of $1,750 for Fire Prevention materials for the Albertville Fire Departments.
BACKGROUND: The Albertville Lions would like to donate $1,750 to the Albertville Fire
Department to be used for fire prevention materials. The materials would be purchased from The
National Fire Safety Council which is the largest distributor of comprehensive fire and burn
prevention and life safety material in the United States.
KEY ISSUES:
• The Albertville Lions has generously offered to donate $1,750 to be used by the
Albertville Fire Department for fire prevention materials.
• The City is authorized to accept contributions per Minnesota Statute 465.03 for the
benefit of its citizens.
FINANCIAL CONSIDERATIONS: There is no budget impact on the City.
LEGAL CONSIDERATIONS: The Mayor and Council are required by Minnesota State
Stature to acknowledge and accept all donations by Resolution.
Responsible Person: Kris Luedke, City Clerk
Submitted through: Adam Nafstad, City Administrator-PWD
Attachment:
• Resolution No. 2024-08
Agenda Page 9
CITY OF ALBERTVILLE
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2024-08
RESOLUTION ACCEPTING A DONATION FROM THE
ALBERTVILLE LIONS FOR FIRE PREVENTION MATERIALS FOR THE
ALBERTVILLE FIRE DEPARTMENT
WHEREAS, the City of Albertville is authorized to accept contributions of real and
personal people pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens; and
WHEREAS, the City of Albertville has received a donation in the amount of $1,750
from the Albertville Lions for the Albertville Fire Department; and
WHEREAS, the City Council would like to thank the Albertville Lions and commend
them for their support of the Albertville Fire Department.
NOW, THERFORE, BE IT RESOLVED, by the City Council of the City of
Albertville, Minnesota, that the donation be accepted and acknowledged with gratitude.
BE IT FURTHER RESOLVED, that said funds shall be used for the purchase of fire
prevention materials for the Albertville Fire Department.
Adopted by the City Council of the City of Albertville this 20th day of February 2024.
Jillian Hendrickson, Mayor
ATTEST:
Kristine A. Luedke, City Clerk
Agenda Page 10
Mayor and Council Request for Action
February 20, 2024
SUBJECT: CONSENT – ADMINISTRATION – PARTICLE CONTROL – LETTER OF
CREDIT REDUCTION NO. 1
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider
approval of the following motion:
MOTION TO: Reduce Letter of Credit No. 757, held as security for Particle Control to no less
than $7,200, conditioned on any outstanding balances owed to the City being paid in full.
BACKGROUND: The Developer has requested a reduction to the Letter of Credit held for the
Particle Control expansion project. The Letter of Credit is held as performance and warranty
security for the site improvements and is currently in the amount of $65,200.
Assuming the developer is current with all fees owed to the City and based on work completed to
date, it is recommended that Letter of Credit No. 757 be reduced to no less than $7,200. The
reduced balance is consistent with the development agreement and is believed to be sufficient to
ensure all requirements are full filled.
KEY ISSUES:
•The LOC will be eligible for further reduction upon completion of landscaping and site
restoration.
POLICY CONSIDERATIONS: It is City policy to have all Letter of Credit reductions
approved by the City Council.
FINANCIAL CONSIDERATIONS: There are no financial implications for this request.
LEGAL CONSIDERATIONS: The City has the legal authority under the development
agreement to reduce the Letter of Credit upon completion of the required improvements or deny
requests for reduction if the required improvements are found unacceptable.
Submitted Through: Adam Nafstad, City Administrator-PWD
On File:
•LOC Reduction History
Agenda Page 11
CITY OF ALBERTVILLE
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2024-09
2024 GRANT APPLICATION FOR OUTDOOR GRANT PROGRAM
BE IT RESOLVED that the City of Albertville act as legal sponsor for the project
contained in the Outdoor Recreation Grant application to be submitted on 20th day of February,
2024, and that Adam Nafstad is hereby authorized to apply to the Department of Natural
Resources for funding of this project on behalf of the City of Albertville.
BE IT FURTHER RESOLVED that the applicant maintains an adequate Conflict of
Interest Policy and, throughout the term of the contract, will monitor and report any actual or
potential conflicts of interest to the State, upon discovery.
BE IT FURTHER RESOLVED that the City of Albertville has the legal authority to
apply for financial assistance, and it has the financial capability to meet the match requirement
(if any) and ensure adequate construction, operation, maintenance, and replacement of the
proposed project for its design life.
BE IT FURTHER RESOLVED that the City of Albertville has not incurred any
development costs and has not entered into a written purchase agreement to acquire the property
described in the Cost Breakdown section on this application.
BE IT FURTHER RESOLVED that the City of Albertville has or will acquire fee title
or permanent easement over all the land described in the boundary map or recreational site plan
included in the application.
BE IT FURTHER RESOLVED that, upon approval of its application by the State,
The City of Albertville may enter into an agreement with the State for the above-referenced
project, and that the City of Albertville certifies that it will comply with all applicable laws and
regulations as stated in the grant agreement including dedicating the park property for uses
consistent with the funding grant program into perpetuity.
NOW, THEREFORE BE IT RESOLVED that the City Administrator is hereby
authorized to execute such agreements as necessary to implement the project on behalf of the
applicant.
Adopted by the City Council of the City of Albertville this 20th day of February 2024.
Jillian Hendrickson, Mayor
ATTEST:
Kristine A. Luedke, City Clerk
Agenda Page 12
Mayor and Council Request for Action
February 20, 2024
SUBJECT: PUBLIC HEARING – MEDART INC. TAX INCREMENT FINANCING
REQUEST
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the
following:
MOTION TO: Adopt Resolution No. 2024-10 establishing Tax Increment Financing District
No. 21 within Development District No. 1 (the “TIF District”) and adopting the tax increment
financing plan therefor; authorizing the terms of an interfund loan; authorizing the execution of a
development agreement; and approving a business subsidy agreement.
BACKGROUND: Medart Inc. is proposing to construct an approximately 100,000 s.f.
warehouse and distribution facility on a property in the northwest corner of the City on the
Corner of Karmen Avenue and 67th street. The facility will include warehouse and office space.
Medart has agreed to create 35 new jobs at an average hourly wage of $19.50, pursuant to the
terms in the development agreement.
Medart, Inc has requested Tax Increment Financing (“TIF”) assistance from the City. Based on
the information provided by Medart Inc regarding the proposed building, it is estimated that if
established, the TIF will generate approximately $992,036 in tax increment that can be returned
to the Developer to help defray development costs.
The proposed TIF would capture the additional tax revenue that the new development would
generate (including the City’s, School District’s, and County’s portion of taxes generated by the
development) over a 9-year period.
At the end of the 9-year period, the three governmental entities would resume collecting their
regular tax revenues from the property, including the revenues generated by the proposed
improvements, for as long as the improvements remain on the property.
The interfund loan resolution is required to allow the City to advance the administrative costs to
pay for the establishment of the TIF district from other funds and then reimburse these other
funds for these advanced costs once the tax increments begin to come in 2026 and beyond.
KEY ISSUES:
• The TIF District to be established would be an “economic development” district with a
maximum duration of 9 years.
• The City would collect tax increment from the new taxable market value that would be
created from the development within the TIF District. State property taxes and school
referendum taxes are not captured as tax increment, pursuant to state law.
Agenda Page 13
Mayor and Council Request for Action – February 20, 2024
Public Hearing – Tax Increment Financing Request Page 2 of 2
• Annual tax increment to be generated from the TIF District is estimated to be
approximately $155,000 annually, based on a total taxable market value of $8.85 million
after completion of the development within the district.
• Per terms in the development agreement, the City would agree to issue the developer a
TIF revenue (pay-go) note to reimburse the developer for up to $992,036 of land
acquisition costs, payable over a maximum term of 9 years, with 5.0% simple interest.
• The TIF revenue note shall be payable semi-annually from 90% of the tax increment
derived from the property within the TIF District. The note is not a general obligation of
the city. The note is payable solely from available tax increment.
• Developer will agree to create 35 new jobs at average hourly wage of $19.50, pursuant to
terms in the development agreement.
• Construction of the Project shall commence no later than April 15, 2024 and barring any
delays, shall be substantially completed by December 31, 2024.
POLICY/PRACTICES CONSIDERATIONS: The City has established a number of TIF
districts in the past to aid in the development of manufacturing facilities in the City.
FINANCIAL CONSIDERATIONS: The City would provide approximately $992,036, plus
interest, in tax increment to Medart Inc. over the life of the TIF. The City would retain
approximately 10% of the TIF revenue generated by the TIF for administrative costs. During the
life of the TIF the City, School District and County would still collect the same amount of taxes
from the property that they currently are collecting but would not collect the additional revenue
generated by the proposed development until the TIF expires after nine years.
LEGAL CONSIDERATIONS: After holding the public hearing on this matter, the City has the
legal authority to establish the TIF, provided it makes the findings set out in the attached
resolution establishing the TIF district.
Responsible Person: Tina Lannes, Finance Director
Submitted Through: Adam Nafstad, City Administrator-PWD
Attachments:
• Resolution No. 2024-10
• Development Agreement
Agenda Page 14
EXTRACT OF MINUTES OF MEETING
OF THE CITY COUNCIL OF THE
CITY OF ALBERTVILLE, MINNESOTA
HELD: FEBRUARY 20, 2024
Pursuant to due call and notice thereof, a regular meeting of the City Council of
the City of Albertville, Wright County, Minnesota, was duly held at the City Hall on February
20, 2024 at 7 p.m. for the purpose, in part, of holding a public hearing on the proposed
establishment of Tax Increment Financing District No. 21 within Municipal Development
District No. 1, the proposed adoption of the Tax Increment Financing Plan relating thereto, and
proposed granting of a business subsidy.
The following Council members were present:
and the following were absent:
Councilmember _______________________ introduced the following resolution and
moved its adoption:
CITY OF ALBERTVILLE
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2024-10
RESOLUTION ESTABLISHING TAX INCREMENT FINANCING DISTRICT
NO. 21 WITHIN DEVELOPMENT DISTRICT NO. 1 AND ADOPTING THE TAX
INCREMENT FINANCING PLAN THEREFOR; AUTHORIZING THE TERMS OF AN
INTERFUND LOAN; AUTHORIZING THE EXECUTION OF A DEVELOPMENT
AGREEMENT; AND APPROVING A BUSINESS SUBSIDY AGREEMENT
A. WHEREAS, It has been proposed that the City of Albertville, Minnesota (the
"City"): (1) establish Tax Increment Financing District No. 21 (the “TIF District”) within
Development District No.1 (the "Development District"); (2) approve and adopt the proposed
Tax Increment Financing Plan therefor; (3) authorize the terms of an interfund loan related
thereto; (4) authorize the execution of a development agreement; and (5) approve a business
subsidy, all pursuant to and under the provisions of Minnesota Statutes, Sections 469.174 to
469.1794, as amended (the "Act"); and
B. WHEREAS, the City Council has investigated the facts and has caused to be
prepared a proposed tax increment financing plan for the TIF District therein (the "TIF Plan");
and
C. WHEREAS, the City has performed all actions required by law to be performed prior
to the approval of the establishment of the TIF District therein, and the adoption of the TIF Plan
therefor, including, but not limited to, notification of Wright County and Independent School
District No. 885 having taxing jurisdiction over the property to be included in the TIF District,
and the holding of a public hearing upon published and mailed notice as required by law; and
Agenda Page 15
City of Albertville, MN
Resolution No. 2024-10
Meeting of February 20, 2024
Page 2
D. WHEREAS, Medart, Inc. (the “Developer”) has requested the City assist with the
financing of certain costs incurred in connection with the construction of an approximately
100,000 square foot warehouse and distribution facility to be located in the TIF District (the
“Project”); and
E. WHEREAS, the Developer and the City have determined to enter into a
Development Agreement providing for the City's financial assistance for the Project (the
"Development Agreement"); and
F. WHEREAS, the financial assistance provided under the Development Agreement is
a business subsidy (the "Business Subsidy") pursuant to Minnesota Statutes, Sections 116J.993
to 116J.995 (the "Business Subsides Act").
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Albertville as follows:
1. Development District. The City is not modifying the boundaries of the
Development District.
2. Tax Increment Financing District No. 21. There is hereby established in the City
within the Development District, Tax Increment Financing District No. 21, an economic
development tax increment financing district, the initial boundaries of which are fixed and
determined as described in the TIF Plan.
3. Tax Increment Financing Plan. The TIF Plan is adopted as the tax increment
financing plan for the TIF District, and the City Council makes the following findings:
(a) The TIF District is an economic development district as defined in
Minnesota Statutes, Section 469.174, Subd. 12, the specific basis for such determination
is set forth in Section 2.03.3 of the TIF Plan.
(b) The proposed development, in the opinion of the City, would not
reasonably be expected to occur solely through private investment within the reasonably
foreseeable future. The reasons for such determination are set forth in Section 2.02.5 of
the TIF Plan.
(c) In the opinion of the City Council, the increased market value of the site
that could reasonably be expected to occur without the use of tax increment financing
would be less than the increase in the market value estimated to result from the proposed
development after subtracting the present value of the projected tax increments for the
maximum duration of the TIF District permitted by the TIF Plan. The reasons supporting
this finding are set forth in Section 2.02.5 and Exhibit I of TIF Plan.
(d) The TIF Plan for the TIF District conforms to the general plan for
development or redevelopment of the City as a whole. The reasons for supporting this
finding are set forth in Section 2.02.2 of the TIF Plan.
Agenda Page 16
City of Albertville, MN
Resolution No. 2024-10
Meeting of February 20, 2024
Page 3
(e) The TIF Plan will afford maximum opportunity, consistent with the sound
needs of the City as a whole, for the development or redevelopment of the Development
District by private enterprise. The reasons supporting this finding are set forth in Section
2.02.5 of the TIF Plan.
4. Public Purpose. The adoption of the TIF Plan for the TIF District within the
Development District conforms in all respects to the requirements of the Act and will help fulfill
a need to develop an area of the State which is already built up to provide employment
opportunities, to improve the tax base and to improve the general economy of the State and
thereby serves a public purpose.
5. Certification. The Auditor of Wright County is requested to certify the original
net tax capacity of the TIF District as described in TIF Plan, and to certify in each year thereafter
the amount by which the original net tax capacity has increased or decreased in accordance with
the Act; and the City Administrator is authorized and directed to forthwith transmit this request
to the County Auditor in such form and content as the Auditor may specify, together with a list
of all properties within the TIF District for which building permits have been issued during the
18 months immediately preceding the adoption of this Resolution.
6. Filing. The City Administrator is further authorized and directed to file a copy of
the TIF Plan for the TIF District with the Commissioner of Revenue and the Office of the State
Auditor.
7. Administration. The administration of the Development District is assigned to the
City Administrator who shall from time to time be granted such powers and duties pursuant to
Minnesota Statutes, Sections 469.130 and 469.131 as the City Council may deem appropriate.
8. Interfund Loan. The City has determined to pay for certain costs (the "Qualified
Costs") identified in the TIF Plan consisting of certain administrative expenses, which costs may
be financed on a temporary basis from the City's general fund or any other fund from which such
advances may be legally made (the "Fund"). Under Minnesota Statutes, Section 469.178, Subd.
7, the City is authorized to advance or loan money from the Fund in order to finance the
Qualified Costs. The City intends to reimburse itself for the payment of the Qualified Costs, plus
interest thereon, from tax increments derived from the TIF District in accordance with the
following terms (which terms are referred to collectively as the "Interfund Loan"):
(a) The City hereby authorizes the advance of up to $146,364 from the City's
General Fund or so much thereof as may be paid as Qualified Costs. The City shall
reimburse itself for such advances together with interest at the rate stated below. Interest
accrues on the principal amount from the date of each advance. The maximum rate of
interest permitted to be charged is limited to the greater of the rates specified under
Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance
is authorized, unless the written agreement states that the maximum interest rate will
fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or
Section 549.09 are from time to time adjusted. The interest rate shall be 5.00% and will
not fluctuate.
Agenda Page 17
City of Albertville, MN
Resolution No. 2024-10
Meeting of February 20, 2024
Page 4
(b) Principal and interest on the Interfund Loan ("Payments") shall be paid
annually on each December 31 commencing with the date the tax increments from the
TIF District are available and not otherwise pledged to and including the earlier of (a) the
date the principal and accrued interest of the Interfund Loan is paid in full, or (b) the date
of last receipt of tax increment from the TIF District ("Payment Dates") which Payments
will be made in the amount and only to the extent of available tax increments. Payments
shall be applied first to accrued interest, and then to unpaid principal.
(c) Payments on the Interfund Loan are payable solely from the tax increment
generated in the preceding twelve (12) months with respect to the TIF District and
remitted to the City by Wright County, all in accordance with Minnesota Statutes,
Sections 469.174 to 469.1794, as amended. Payments on this Interfund Loan are
subordinate to any outstanding or future bonds, notes or contracts secured in whole or in
part with tax increment, and are on parity with any other outstanding or future interfund
loans secured in whole or in part with tax increments.
(d) The principal sum and all accrued interest payable under this Interfund
Loan are pre-payable in whole or in part at any time by the City without premium or
penalty. No partial prepayment shall affect the amount or timing of any other regular
payment otherwise required to be made under this Interfund Loan.
(e) The Interfund Loan is evidence of an internal borrowing by the City in
accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation
payable solely from tax increment pledged to the payment hereof under this resolution.
The Interfund Loan and the interest hereon 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 tax increment, and neither the full faith and credit nor
the taxing power of the State of Minnesota or any political subdivision thereof is pledged
to the payment of the principal of or interest on the Interfund Loan or other costs incident
hereto. 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 termination of the
TIF District.
(f) The City may amend the terms of the Interfund Loan at any time by
resolution of the City Council, including a determination to forgive the outstanding
principal amount and accrued interest to the extent permissible under law.
9. Development Agreement and Business Subsidy.
(a) The Council hereby approves the Development Agreement in substantially
the form submitted and the granting of the Business Subsidy as described in the Development
Agreement, and the Mayor and the City Administrator are hereby authorized and directed to
execute the Development Agreement on behalf of the Council.
Agenda Page 18
City of Albertville, MN
Resolution No. 2024-10
Meeting of February 20, 2024
Page 5
(b) The approval hereby given to the Development Agreement includes
approval of such additional details therein as may be necessary and appropriate and such
modifications thereof, deletions therefrom and additions thereto as may be necessary and
appropriate and approved by the City officials authorized by this resolution to execute the
Development Agreement. The execution of the Development Agreement by the appropriate
officer or officers of the City shall be conclusive evidence of the approval of the Development
Agreement in accordance with the terms hereof.
The motion for adoption of the foregoing resolution was duly seconded by
member _________________ and, after full discussion thereof, and upon a vote being taken
thereof, the following voted in favor thereof:
and the following voted against same:
Adopted by the City Council of the City of Albertville this 20th day of February 2024.
_______________________________
Jillian Hendrickson, Mayor
ATTEST:
_______________________________
Adam Nafstad, City Administrator
Agenda Page 19
City of Albertville, MN
Resolution No. 2024-10
Meeting of February 20, 2024
Page 6
STATE OF MINNESOTA
COUNTY OF WRIGHT
CITY OF ALBERTVILLE
I, the undersigned, being the duly qualified and acting Administrator of the City of
Albertville, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and
the original minutes of a meeting of the City Council of the City held on the date therein
indicated, which are on file and of record in my office, and the same is a full, true and complete
transcript therefrom insofar as the same relates to a resolution establishing TIF District No. 21
within Development District No. 1 and Adopting the TIF Plan therefor; authorizing the terms of
an Interfund Loan; authorizing the execution of a Development Agreement; and approving a
Business Subsidy Agreement.
WITNESS my hand as such Administrator of the City Council of the City of Albertville,
Minnesota this 20th day of February, 2024.
_____________________________
City Administrator
Agenda Page 20
130635811v2
DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF ALBERTVILLE, MINNESOTA
AND
MEDART, INC.
This document drafted by: TAFT STETTINIUS & HOLLISTER LLP
2200 IDS Center
80 South 8th Street
Minneapolis, Minnesota 55402
Agenda Page 21
130635811v2
i
TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS ........................................................................................................ 2
Section 1.1 Definitions............................................................................................ 2
ARTICLE II REPRESENTATIONS AND WARRANTIES ...................................................... 4
Section 2.1 Representations and Warranties of the City ......................................... 4
Section 2.2 Representations and Warranties of the Developer ............................... 4
ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY ............................................ 6
Section 3.1 Development Property ......................................................................... 6
Section 3.2 Limitations on Undertaking of the City ............................................... 6
Section 3.3 Reimbursement: TIF Note ................................................................... 6
Section 3.4 Business Subsidies. .............................................................................. 7
Section 3.5 Real Property Taxes ............................................................................. 8
Section 3.6 Prohibition Against Transfer of Project and Assignment of
Agreement ............................................................................................ 8
ARTICLE IV EVENTS OF DEFAULT .................................................................................... 10
Section 4.1 Events of Default Defined ................................................................. 10
Section 4.2 Remedies on Default .......................................................................... 10
Section 4.3 No Remedy Exclusive........................................................................ 11
Section 4.4 No Implied Waiver ............................................................................ 11
Section 4.5 Agreement to Pay Attorney's Fees and Expenses .............................. 11
Section 4.6 Indemnification of City. ..................................................................... 11
ARTICLE V ADDITIONAL PROVISIONS ............................................................................ 13
Section 5.1 Restrictions on Use ............................................................................ 13
Section 5.2 Conflicts of Interest............................................................................ 13
Section 5.3 Titles of Articles and Sections ........................................................... 13
Section 5.4 Notices and Demands ........................................................................ 13
Section 5.5 Counterparts ....................................................................................... 14
Section 5.6 Law Governing .................................................................................. 14
Section 5.7 Expiration ........................................................................................... 14
Section 5.8 Provisions Surviving Rescission or Expiration.................................. 14
Section 5.9 Assignability of TIF Note .................................................................. 14
Section 5.10 Amendment ........................................................................................ 14
EXHIBIT A DESCRIPTION OF DEVELOPMENT PROPERTY ......................................... A-1
EXHIBIT B FORM OF TIF NOTE .......................................................................................... B-1
Agenda Page 22
130635811v2
DEVELOPMENT AGREEMENT
THIS AGREEMENT, made as of the 20th day of February, 2024, by and between the City
of Albertville, Minnesota (the "City"), a municipal corporation existing under the laws of the State
of Minnesota and Medart, Inc., a Missouri corporation (the "Developer"),
WITNESSETH:
WHEREAS, pursuant to Minnesota Statutes, Section 469.124 to 469.133, the City has
heretofore established Municipal Development District No. 1 (the "Development District") and
has adopted a development program therefor (the "Development Program"); and
WHEREAS, pursuant to the provisions of Minnesota Statutes, Section 469.174 through
469.1794, as amended (hereinafter, the "Tax Increment Act"), the City has heretofore established,
within the Development District, Tax Increment Financing (Economic Development) District No.
21 (Medart) (the "Tax Increment District") and has adopted a tax increment financing plan therefor
(the "Tax Increment Plan") which provides for the use of tax increment financing in connection
with certain development within the Development District; and
WHEREAS, in order to achieve the objectives of the Development Program and
particularly to make the land in the Development District available for development by private
enterprise in conformance with the Development Program, the City has determined to finance
certain costs of a Project (as hereinafter defined) to be constructed within the Tax Increment
District as more particularly set forth in this Agreement; and
WHEREAS, the City believes that the development and construction of the Project, and
fulfillment of this Agreement are vital and are in the best interests of the City, the health, safety,
morals and welfare of residents of the City, and in accordance with the public purpose and
provisions of the applicable state and local laws and requirements under which the Project has
been undertaken and is being assisted; and
WHEREAS, the requirements of the Business Subsidy Law, Minnesota Statutes, Section
116J.993 through 116J.995, apply to this Agreement;
WHEREAS, the City has adopted criteria for awarding business subsidies that comply with
the Business Subsidy Law, after a public hearing for which notice was published; and
WHEREAS, the Council has approved this Agreement as a subsidy agreement under the
Business Subsidy Law.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
Agenda Page 23
130635811v2
2
ARTICLE I
DEFINITIONS
Section 1.1 Definitions. All capitalized terms used and not otherwise defined herein
shall have the following meanings unless a different meaning clearly appears from the context:
Agreement means this Agreement, as the same may be from time to time modified,
amended or supplemented;
Business Day means any day except a Saturday, Sunday or a legal holiday or a day on
which banking institutions in the City are authorized by law or executive order to close;
Business Subsidy means the term as defined by Minnesota Statutes, Section 116J.993,
Subdivision 3;
Business Subsidy Law means Minnesota Statutes, Section 116J.993 through 116J.995;
City means the City of Albertville, Minnesota;
County means Wright County, Minnesota;
Developer means Medart, Inc., a Missouri corporation, its successors and assigns;
Development District means Municipal Development District No. 1, including the real
property described in the Development Program;
Development Program means the development program approved in connection with the
Development District;
Development Property means the real property described in Exhibit A attached to this
Agreement;
Event of Default means any of the events described in Section 4.1 hereof;
Note Payment Date means August 1, 2026, and each February 1 and August 1 thereafter to
and including February 1, 2035; provided, that if any such Note Payment Date should not be a
Business Day, the Note Payment Date shall be the next succeeding Business Day;
Prime Rate means the rate of interest from time to time publicly announced by U.S. Bank
National Association in Minneapolis, Minnesota, as its "reference rate" or any successor rate,
which rate shall change as and when that prime rate or successor rate changes;
Project means the construction of an approximately 100,000 square foot warehouse and
distribution facility located on the Development Property, by the Developer;
State means the State of Minnesota;
Agenda Page 24
130635811v2
3
Tax Increment Act means Minnesota Statutes, Sections 469.174 through 469.1794, as
amended;
Tax Increment District means Tax Increment Financing (Economic Development) District
No. 21 (Medart) located within the Development District, a description of which is set forth in the
Tax Increment Financing Plan, and qualified as an economic development district under the Tax
Increment Act;
Tax Increment Financing Plan means the tax increment financing plan approved for the
Tax Increment District by the City Council on February 20, 2024, and any future amendments
thereto;
Tax Increments means 90% of the tax increments derived from the Development Property
which have been received and retained by the City in accordance with the provisions of Minnesota
Statutes, Section 469.177;
Termination Date means the earlier of (i) February 1, 2035, (ii) the date the TIF Note is
paid in full, (iii) the date on which the Tax Increment District expires or is otherwise terminated,
or (iv) the date this Agreement is terminated or rescinded in accordance with its terms;
TIF Note means the Tax Increment Revenue Note (Medart, Inc. Project) to be executed by
the City and delivered to the Developer pursuant to Article III hereof, a copy of which is attached
hereto as Exhibit B;
Unavoidable Delays means delays, outside the control of the party claiming its occurrence,
which are the direct result of strikes, other labor troubles, unusually severe or prolonged bad
weather, acts of God, fire or other casualty to the Project, litigation commenced by third parties
which, by injunction or other similar judicial action or by the exercise of reasonable discretion,
directly results in delays, or acts of any federal, state or local governmental unit (other than the
City) which directly result in delays; and
Agenda Page 25
130635811v2
4
ARTICLE II
REPRESENTATIONS AND WARRANTIES
Section 2.1 Representations and Warranties of the City. The City makes the following
representations and warranties:
(1) The City is a municipal corporation and has the power to enter into this Agreement
and carry out its obligations hereunder.
(2) The Tax Increment District is an "economic development district" within the
meaning of Minnesota Statutes, Section 469.174, Subdivision 12, and was created, adopted and
approved in accordance with the terms of the Tax Increment Act.
(3) The development contemplated by this Agreement is in conformance with the
development objectives set forth in the Development Program.
(4) To finance certain costs within the Tax Increment District, the City agrees, subject
to the further provisions of this Agreement, to apply Tax Increments to reimburse the Developer
for a portion of the costs of the acquisition of the Development Property in connection with the
Project as further provided in this Agreement.
(5) The City makes no representation or warranty, either expressed or implied, as to
the Development Property or its condition or the soil conditions thereon, or that the Development
Property shall be suitable for the Developer's purposes or needs.
Section 2.2 Representations and Warranties of the Developer. The Developer makes
the following representations and warranties:
(1) The Developer is a Missouri corporation and has the power and authority to enter
into this Agreement and to perform its obligations hereunder and doing so will not violate its
articles, bylaws, or the laws of the State and by proper action has authorized the execution and
delivery of this Agreement.
(2) The Developer shall cause the Project to be constructed in accordance with the
terms of this Agreement, the Development Program, Tax Increment Financing Plan, and all
applicable local, state and federal laws and regulations (including, but not limited to,
environmental, zoning, energy conservation, building code and public health laws and
regulations).
(3) The construction of the Project would not be undertaken by the Developer, and in
the opinion of the Developer would not have been or be economically feasible within the
reasonably foreseeable future, without the assistance and benefit to the Developer provided for in
this Agreement.
(4) The Developer will obtain, or cause to be obtained, in a timely manner, all required
permits, licenses and approvals, and will meet, in a timely manner, all requirements of all
Agenda Page 26
130635811v2
5
applicable local, state, and federal laws and regulations which must be obtained or met before the
Project may be lawfully constructed.
(5) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of,
the terms, conditions or provision of any contractual restriction, evidence of indebtedness,
agreement or instrument of whatever nature to which the Developer is now a party or by which it
is bound, or constitutes a default under any of the foregoing.
(6) The Developer shall cooperate fully with the City with respect to any litigation
commenced with respect to the Project.
(7) The Developer shall cooperate fully with the City in resolution of any traffic,
parking, trash removal or public safety problems which may arise in connection with the
construction and operation of the Project.
(8) The construction of the Project shall commence no later than April 15, 2024 and
barring Unavoidable Delays, shall be substantially completed by December 31, 2024.
(9) The Developer acknowledges that the Tax Increments projections contained in the
Tax Increment Financing Plan are estimates only and the Developer acknowledges that it shall
place no reliance on the amount of projected Tax Increments and the sufficiency of Tax Increments
to reimburse the Developer for a portion of the costs of the acquisition of the Development
Property as provided in Article III.
Agenda Page 27
130635811v2
6
ARTICLE III
UNDERTAKINGS BY DEVELOPER AND CITY
Section 3.1 Development Property. The parties agree that the acquisition of the
Development Property is essential to the successful completion of the Project. The costs of the
acquisition of the Development Property and the Project shall be paid by the Developer. The City
shall reimburse the Developer for $992,036 of the cost of acquisition of the Development Property
actually incurred and paid by the Developer (the "Reimbursement Amount"), as further provided
in Section 3.3 hereof.
Section 3.2 Limitations on Undertaking of the City. Notwithstanding the provisions of
Sections 3.1, the City shall have no obligation to the Developer under this Agreement to reimburse
the Developer for the costs identified in Section 3.1, if the City, at the time or times such payment is
to be made, is entitled under Section 4.2 to exercise any of the remedies set forth therein as a result
of an Event of Default which has not been cured.
Section 3.3 Reimbursement: TIF Note. The City shall reimburse the Developer as
described in Section 3.1 for the Reimbursement Amount through the issuance of the City's TIF
Note in substantially the form attached to this Agreement as Exhibit B, subject to the following
conditions:
(1) The TIF Note shall be dated, issued and delivered when the Developer shall have
(A) completed the construction of the Project and (B) submitted a settlement statement or other
evidence of payment of the costs of the Development Property in an amount not less than the
Reimbursement Amount.
(2) The unpaid principal of the TIF Note shall bear simple non-compounding interest
from the date of issuance of the TIF Note, at 5.00% per annum. Interest shall be computed on the
basis of a 360-day year consisting of twelve (12) 30-day months.
(3) The principal amount of the TIF Note and the interest thereon shall be payable
solely from the Tax Increments.
(4) On each Note Payment Date and subject to the provisions of the TIF Note, the City
shall pay, against the principal and interest outstanding on the TIF Note, the Tax Increments
received by the City during the preceding six (6) months. All such payments shall be applied to
accrued interest and then to reduce the principal of the TIF Note.
(5) The TIF Note shall be a special and limited obligation of the City and not a general
obligation of the City, and only Tax Increments shall be used to pay the principal of and interest
on the TIF Note.
(6) The City's obligation to make payments on the TIF Note on any Note Payment Date
or any date thereafter shall be conditioned upon the requirements that: (A) there shall not at that
time be an Event of Default that has occurred and is continuing under this Agreement, and (B) this
Agreement shall not have been terminated or rescinded pursuant to Section 4.2.
Agenda Page 28
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7
(7) TIF Note shall be governed by and payable pursuant to the additional terms thereof,
as set forth in Exhibit B. In the event of any conflict between the terms of the TIF Note and the
terms of this Section 3.3, the terms of the TIF Note shall govern. The issuance of the TIF Note
pursuant and subject to the terms of this Agreement, and the taking by the City of such additional
actions as bond counsel for the TIF Note may require in connection therewith, are hereby
authorized and approved by the City.
Section 3.4 Business Subsidies.
(1) In order to satisfy the Business Subsidy Law, the Developer acknowledges and
agrees that: (A) the amount of the Business Subsidy granted to the Developer by the City under
this Agreement is $992,036, which is the Reimbursement Amount and (B) the Business Subsidy
is needed because the Project is not sufficiently feasible for the Developer to undertake without
the Business Subsidy. The public purpose of the Business Subsidy is to preserve and increase the
tax base and create job growth in the City, and encourage the construction of a warehouse and
distribution facility in the City. The Developer agrees that it will meet the following goals (the
"Goals") in connection with the development of the Development Property. It will create at least
thirty-five (35) full time jobs at an hourly wage and benefits totaling of at least $19.50 per hour
within two years from the "Benefit Date", which is the earlier of the date the Developer completes
or occupies the Project.
(2) If the Goals are not met, the Developer agrees to repay all or a part of the Business
Subsidy to the City, $992,036, plus interest ("Interest") set at the implicit price deflator defined in
Minnesota Statutes, Section 275.70, Subdivision 2, accruing from and after the Benefit Date,
compounded semiannually. If the Goals are met in part by the Developer, the Developer will repay
a portion of the Business Subsidy (plus Interest) determined by multiplying the Business Subsidy
by a fraction, the numerator of which is the number of jobs in the Goals which were not created at
the wage level set forth above and the denominator of which is thirty-five (35) (i.e. number of jobs
set forth in the Goals).
(3) The Developer agrees to (A) report its progress on achieving the Goals to the City
until the later of the date the Goals are met or ten (10) years from the Benefit Date, or, if the Goals
are not met, until the date the Business Subsidy is repaid, (B) include in the report the information
required in Section 116J.994, Subdivision 7 of the Business Subsidies Law on forms developed
by the Minnesota Department of Employment and Economic Development, and (C) send
completed reports to the City. The Developer agrees to file these reports no later than March 1 of
each year for the previous year, commencing March 1, 2026, and within 30 days after the deadline
for meeting the Goals. The City and the Authority agree that if reports are not received by the
City, the City will mail the Developer a warning within one week of the required filing date. If
within 14 days of the post marked date of the warning the reports are not made, the Developer
agrees to pay to the City a penalty of $100 for each subsequent day until the report is filed up to a
maximum of $1,000.
(4) The Developer agrees to continue operations within the City for at least five (5)
years after the Benefit Date.
Agenda Page 29
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(5) There are no other state or local government agencies providing financial assistance
for the Project other than the City.
(6) There is no parent corporation of the Developer.
(7) The Developer certifies that it does not appear on the Minnesota Department of
Employment and Economic Development's list of recipients that have failed to meet the terms of
a business subsidy agreement.
Section 3.5 Real Property Taxes. Prior to the Termination Date, the Developer shall
pay all real property taxes payable with respect to all and any parts of the Development Property
acquired and owned by it until the Developer's obligations have been assumed by any other person
pursuant to the provisions of this Agreement.
The Developer agrees that, so long as it owns all or any portion of the Development
Property, prior to the Termination Date:
(1) It will not seek administrative review or judicial review of the applicability of any
tax statute relating to the ad valorem property taxation of real property contained on the
Development Property determined by any tax official to be applicable to the Project or the
Developer or raise the inapplicability of any such tax statute as a defense in any proceedings with
respect to the Development Property, including delinquent tax proceedings; provided, however,
"tax statute" does not include any local ordinance or resolution levying a tax;
(2) It will not seek administrative review or judicial review of the constitutionality of
any tax statute relating to the taxation of real property contained on the Development Property
determined by any tax official to be applicable to the Project or the Developer or raise the
unconstitutionality of any such tax statute as a defense in any proceedings, including delinquent
tax proceedings with respect to the Development Property; provided, however, "tax statute" does
not include any local ordinance or resolution levying a tax;
(3) It will not seek any tax deferral or abatement, either presently or prospectively
authorized under Minnesota Statutes, Section 469.1813, or any other State or federal law, of the
ad valorem property taxation of the Development Property between the date of execution of this
Agreement and the Termination Date; and
(4) It will not seek a reduction in the market value as determined by the Wright County
Assessor of the Project or other facilities, if any, that it constructs on the Development Property,
pursuant to the provisions of this Agreement, for so long as the TIF Note remains outstanding.
Section 3.6 Prohibition Against Transfer of Project and Assignment of Agreement. The
Developer represents and agrees that prior to the termination date of this Agreement the Developer
shall not transfer the Project or any part thereof or any interest therein, without the prior written
approval of the City. The City shall be entitled to require as conditions to any such approval that:
(1) Any proposed transferee shall have the qualifications and financial responsibility,
in the reasonable judgment of the City, necessary and adequate to fulfill the obligations undertaken
in this Agreement by the Developer.
Agenda Page 30
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(2) Any proposed transferee, by instrument in writing satisfactory to the City shall, for
itself and its successors and assigns, and expressly for the benefit of the City, have expressly
assumed all of the obligations of the Developer under this Agreement and agreed to be subject to
all the conditions and restrictions to which the Developer is subject.
(3) There shall be submitted to the City for review and prior written approval all
instruments and other legal documents involved in effecting the transfer of any interest in this
Agreement or the Project.
Agenda Page 31
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ARTICLE IV
EVENTS OF DEFAULT
Section 4.1 Events of Default Defined. The following shall be "Events of Default"
under this Agreement and the term "Event of Default" shall mean whenever it is used in this
Agreement any one or more of the following events:
(1) Failure by the Developer to timely pay any ad valorem real property taxes and
special assessments levied against the Development Property and all public utility or other City
payments due and owing with respect to the Development Property when due and payable.
(2) Failure by the Developer to cause the construction of the Project to be completed
pursuant to the terms, conditions and limitations of this Agreement.
(3) Failure of the Developer to observe or perform any other covenant, condition,
obligation or agreement on its part to be observed or performed under this Agreement.
(4) The holder of any mortgage on the Development Property or any improvements
thereon, or any portion thereof, commences foreclosure proceedings as a result of any default under
the applicable mortgage documents.
(5) If the Developer shall:
(A) file any petition in bankruptcy or for any reorganization, arrangement,
composition, readjustment, liquidation, dissolution, or similar relief under the United
States Bankruptcy Act of 1978, as amended or under any similar federal or state law; or
(B) make an assignment for the benefit of its creditors; or
(C) admit in writing its inability to pay its debts generally as they become due;
or
(D) be adjudicated as bankrupt or insolvent; or if a petition or answer proposing
the adjudication of the Developer as bankrupt or its reorganization under any present or
future federal bankruptcy act or any similar federal or state law shall be filed in any court
and such petition or answer shall not be discharged or denied within sixty (60) days after
the filing thereof; or a receiver, trustee or liquidator of the Developer, or of the Project, or
part thereof, shall be appointed in any proceeding brought against the Developer, and shall
not be discharged within sixty (60) days after such appointment, or if the Developer, shall
consent to or acquiesce in such appointment.
Section 4.2 Remedies on Default. Whenever any Event of Default referred to in Section
4.1 occurs and is continuing, the City, as specified below, may take any one or more of the
following actions after the giving of thirty (30) days' written notice to the Developer, but only if
the Event of Default has not been cured within said thirty (30) days:
Agenda Page 32
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(1) The City may suspend its performance under this Agreement and the TIF Note until
it receives assurances from the Developer, deemed adequate by the City, that the Developer will
cure its default and continue its performance under this Agreement.
(2) The City may cancel and rescind the Agreement and the TIF Note.
(3) The City may take any action, including legal or administrative action, in law or
equity, which may appear necessary or desirable to enforce performance and observance of any
obligation, agreement, or covenant of the Developer under this Agreement.
Section 4.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the
City is intended to be exclusive of any other available remedy or remedies, but each and every
such remedy shall be cumulative and shall be in addition to every other remedy given under this
Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to
exercise any right or power accruing upon any default shall impair any such right or power or shall
be construed to be a waiver thereof, but any such right and power may be exercised from time to
time and as often as may be deemed expedient.
Section 4.4 No Implied Waiver. In the event any agreement contained in this
Agreement should be breached by any party and thereafter waived by any other party, such waiver
shall be limited to the particular breach so waived and shall not be deemed to waive any other
concurrent, previous or subsequent breach hereunder.
Section 4.5 Agreement to Pay Attorney's Fees and Expenses. Whenever any Event of
Default occurs and the City shall employ attorneys or incur other expenses for the collection of
payments due or to become due or for the enforcement or performance or observance of any
obligation or agreement on the part of the Developer herein contained, the Developer agrees that
it shall, on demand therefor, pay to the City the reasonable fees of such attorneys and such other
expenses so incurred by the City.
Section 4.6 Indemnification of City.
(1) The Developer releases from and covenants and agrees that the City, its governing
body members, officers, agents, including the independent contractors, consultants and legal
counsel, servants and employees thereof (hereinafter, for purposes of this Section, collectively the
"Indemnified Parties") shall not be liable for and agrees to indemnify and hold harmless the
Indemnified Parties against any loss or damage to property or any injury to or death of any person
occurring at or about or resulting from any defect in the Project, provided that the foregoing
indemnification shall not be effective for any actions of the Indemnified Parties that are not
contemplated by this Agreement.
(2) Except for any willful misrepresentation or any willful or wanton misconduct of
the Indemnified Parties, the Developer agrees to protect and defend the Indemnified Parties, now
and forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action
or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising
from the actions or inactions of the Developer (or other persons acting on its behalf or under its
direction or control) under this Agreement, or the transactions contemplated hereby or the
acquisition, construction, installation, ownership, and operation of the Project; provided, that this
Agenda Page 33
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indemnification shall not apply to the warranties made or obligations undertaken by the City in
this Agreement or to any actions undertaken by the City which are not contemplated by this
Agreement but shall, in any event and without regard to any fault on the part of the City, apply to
any pecuniary loss or penalty (including interest thereon from the date the loss is incurred or
penalty is paid by the City at a rate equal to the Prime Rate) as a result of the Developer operating
the Project so that the Tax Increment District does not qualify or ceases to qualify as an "economic
development district" under Section 469.174, Subdivision 12, of the Act and Section 469.176,
Subdivision 4c. or to violate limitations as to the use of Tax Increments as set forth in Section
469.176, Subdivision 4c.
(3) All covenants, stipulations, promises, agreements and obligations of the City
contained herein shall be deemed to be the covenants, stipulations, promises, agreements and
obligations of the City and not of any governing body member, officer, agent, servant or employee
of the City.
Agenda Page 34
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ARTICLE V
ADDITIONAL PROVISIONS
Section 5.1 Restrictions on Use. The Developer agrees for itself, its successors and
assigns and every successor in interest to the Development Property, or any part thereof, that the
Developer and such successors and assigns shall operate, or cause to be operated, the Project as a
warehouse and distribution facility and shall devote the Development Property to, and in
accordance with, the uses specified in this Agreement.
Section 5.2 Conflicts of Interest. No member of the governing body or other official of
the City shall have any financial interest, direct or indirect, in this Agreement, the Development
Property or the Project, or any contract, agreement or other transaction contemplated to occur or
be undertaken thereunder or with respect thereto, nor shall any such member of the governing body
or other official participate in any decision relating to the Agreement which affects his or her
personal interests or the interests of any corporation, partnership or association in which he or she
is directly or indirectly interested. No member, official or employee of the City shall be personally
liable to the City in the event of any default or breach by the Developer or successor or on any
obligations under the terms of this Agreement.
Section 5.3 Titles of Articles and Sections. Any titles of the several parts, articles and
sections of the Agreement are inserted for convenience of reference only and shall be disregarded
in construing or interpreting any of its provisions.
Section 5.4 Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under this Agreement by any party to any
other shall be sufficiently given or delivered if it is dispatched by registered or certified mail,
postage prepaid, return receipt requested, or delivered personally, and
(1) in the case of the Developer is addressed to or delivered personally to:
Medart, Inc.
Attention: J. Michael Medart
124 Manufacturers Drive
Arnold, MO 63010
(2) in the case of the City is addressed to or delivered personally to the City at:
City of Albertville, Minnesota
Attention: City Administrator
Albertville City Hall
5959 Main Avenue
Albertville, MN 55301
Agenda Page 35
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with a copy to:
Taft Stettinius & Hollister LLP
Attention: Mary Ippel
2200 IDS Center
80 South 8th Street
Minneapolis, MN 55402
or at such other address with respect to any such party as that party may, from time to time,
designate in writing and forward to the other, as provided in this Section.
Section 5.5 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
Section 5.6 Law Governing. This Agreement will be governed and construed in
accordance with the laws of the State.
Section 5.7 Expiration. This Agreement shall terminate on the Termination Date.
Section 5.8 Provisions Surviving Rescission or Expiration. Sections 4.5 and 4.6 shall
survive any rescission, termination or expiration of this Agreement with respect to or arising out
of any event, occurrence or circumstance existing prior to the date thereof.
Section 5.9 Assignability of TIF Note. The TIF Note may only be assigned pursuant to
the terms of the TIF Note and shall not be unreasonably withheld.
Section 5.10 Amendment. This Agreement may be amended only by written agreement
approved by the City and the Developer.
Agenda Page 36
130635811v2
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IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its
name and on its behalf and its seal to be hereunto duly affixed, and the Developer has caused this
Agreement to be duly executed on its behalf, on or as of the date first above written.
CITY OF ALBERTVILLE, MINNESOTA
By____________________________
Its Mayor
By____________________________
Its City Administrator
This is a signature page to the Development Agreement by and between the City of Albertville
and Medart, Inc.
Agenda Page 37
130635811v2
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MEDART, INC.
By____________________________
Its ___________________________
This is a signature page to the Development Agreement by and between the City of Albertville
and Medart, Inc.
Agenda Page 38
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EXHIBIT A
DESCRIPTION OF DEVELOPMENT PROPERTY
Property located in the City of Albertville, Wright County, Minnesota with the following
description:
Agenda Page 39
130635811v2
B-1
EXHIBIT B
FORM OF TIF NOTE
No. R-1 $___________
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF WRIGHT
CITY OF ALBERTVILLE
TAX INCREMENT REVENUE NOTE
(MEDART, INC. PROJECT)
The City of Albertville, Minnesota (the "City"), hereby acknowledges itself to be indebted
and, for value received, hereby promises to pay the amounts hereinafter described (the "Payment
Amounts") to Medart, Inc. (the "Developer"), or its registered assigns (the "Registered Owner"),
but only in the manner, at the times, from the sources of revenue, and to the extent hereinafter
provided.
The principal amount of this Note shall equal from time to time the principal amount stated
above, as reduced to the extent that such principal installments shall have been paid in whole or in
part pursuant to the terms hereof; provided that the sum of the principal amount listed above shall
in no event exceed $992,036 as provided in that certain Development Agreement, dated as of
February 20, 2024, as the same may be amended from time to time (the "TIF Agreement"), by and
between the City and the Developer. The unpaid principal amount hereof shall bear interest from
the date of this Note at the simple non-compounded rate of five percent (5.00%) per annum.
Interest shall be computed on the basis of a 360 day year consisting of twelve (12) 30-day months.
The amounts due under this Note shall be payable on August 1, 2026, and on each February
1 and August 1 thereafter to and including February 1, 2035, or, if the first should not be a Business
Day (as defined in the TIF Agreement), the next succeeding Business Day (the "Payment Dates").
On each Payment Date the City shall pay by check or draft mailed to the person that was the
Registered Owner of this Note at the close of the last business day of the City preceding such
Payment Date an amount equal to the sum of the Tax Increments (hereinafter defined) received by
the City during the six (6) month period preceding such Payment Date. All payments made by the
City under this Note shall first be applied to accrued interest and then to principal. This Note is
prepayable by the City, in whole or in part, on any date.
The Payment Amounts due hereon shall be payable solely from 90% of the tax increments
(the "Tax Increments") from the Development Property (as defined in the Development
Agreement) within the City's Tax Increment Financing District Tax Increment Financing
(Economic Development) District No. 21 (Medart) (the "Tax Increment District") within its
Municipal Development District No. 1 which are paid to the City and which the City is entitled to
retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.1794, as the
same may be amended or supplemented from time to time (the "Tax Increment Act"). This Note
Agenda Page 40
130635811v2
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shall terminate and be of no further force and effect following the termination of the Tax Increment
District, on any date upon which the City shall have terminated the Development Agreement under
Section 4.2(2) thereof or on the date that all principal and interest payable hereunder shall have
been paid in full, whichever occurs earliest.
The City makes no representation or covenant, expressed or implied, that the Tax
Increments will be sufficient to pay, in whole or in part, the amounts which are or may become
due and payable hereunder.
The City's payment obligations hereunder shall be further conditioned on the fact that no
Event of Default under the Development Agreement shall have occurred and be continuing at the
time payment is otherwise due hereunder, but such unpaid amounts shall become payable if said
Event of Default shall thereafter have been cured; and, further, if pursuant to the occurrence of an
Event of Default under the Development Agreement the City elects to cancel and rescind the
Development Agreement, the City shall have no further debt or obligation under this Note
whatsoever. Reference is hereby made to all of the provisions of the Development Agreement,
including without limitation Section 3.3 thereof, for a fuller statement of the rights and obligations
of the City to pay the principal of this Note, and said provisions are hereby incorporated into this
Note as though set out in full herein.
This Note is a special, limited revenue obligation and not a general obligation of the City
and is payable by the City only from the sources and subject to the qualifications stated or
referenced herein. This Note is not a general obligation of the City of Albertville, Minnesota, and
neither the full faith and credit nor the taxing powers of the City are pledged to the payment of the
principal of this Note and no property or other asset of the City, save and except the above-
referenced Tax Increments, is or shall be a source of payment of the City's obligations hereunder.
This Note is issued by the City in aid of financing a project pursuant to and in full
conformity with the Constitution and laws of the State of Minnesota, including the Tax Increment
Act.
This Note may be assigned only with the consent of the City, which consent shall not be
unreasonably withheld, conditioned or delayed. In order to assign the Note, the assignee shall
surrender the same to the City either in exchange for a new fully registered note or for transfer of
this Note on the registration records for the Note maintained by the City. Each permitted assignee
shall take this Note subject to the foregoing conditions and subject to all provisions stated or
referenced herein.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required
by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be
performed precedent to and in the issuance of this Note have been done, have happened, and have
been performed in regular and due form, time, and manner as required by law; and that this Note,
together with all other indebtedness of the City outstanding on the date hereof and on the date of
its actual issuance and delivery, does not cause the indebtedness of the City to exceed any
constitutional, statutory or charter limitation thereon.
Agenda Page 41
130635811v2
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IN WITNESS WHEREOF, City of Albertville, Minnesota, by its City Council, has caused
this Note to be executed by the manual signatures of its Mayor and City Administrator and has
caused this Note to be issued on and dated _______________, 20__.
________________________ ________________________
City Administrator Mayor
DO NOT EXECUTE UNTIL A SETTLEMENT STATEMENT OR OTHER EVIDENCE
OF PAYMENT FOR LAND ACQUISITION IS GIVEN TO THE CITY - REFER TO
SECTION 3.3(1).
Agenda Page 42
130635811v2
B-4
CERTIFICATION OF REGISTRATION
It is hereby certified that the foregoing Note, as originally issued on _______________,
20__, was on said date registered in the name of Medart, Inc., and that, at the request of the
Registered Owner of this Note, the undersigned has this day registered the Note in the name of
such Registered Owner, as indicated in the registration blank below, on the books kept by the
undersigned for such purposes.
NAME AND ADDRESS OF
REGISTERED OWNERS
DATE OF
REGISTRATION
SIGNATURE OF
CITY ADMINISTRATOR
Medart, Inc.
Attention: J. Michael Medart
124 Manufacturers Drive
Arnold, MO 63010
_____________, 20__
_________________________
_________________________
_________________________
_________________________
_____________, 20__
_________________________
_________________________
_________________________
_________________________
_____________, 20__
_________________________
_________________________
_________________________
_________________________
_____________, 20__
_________________________
Agenda Page 43
Mayor and Council Communication
February 20, 2024
SUBJECT: BUILDING DEPARTMENT – 2023 YEAR-END REPORT
Permit Activity: Attached is the 2023 Permit Activity Summary, which tabulates the total
permit activity for 2023 and 2022. A total of 642 permits were issued in 2023. The total
valuation of this work is approximately $27,245,418 and associated permit fees paid is
approximately $260,537 (building permit and plan review fees only). Included in 2023, there
were 3 new single-family permits, 2 new commercial permits, and 23 commercial
addition/remodel permits. The 2023 Permit Log is on file and available at City Hall.
Permit Summary Comparison 2020 2021 2022 2023
Total Permits 696 837 863 642
New Homes (single family) 36 51 74 3
Multi Family 0 0 8 0
New Commercial 2 2 5 2
Commercial Addition/Remodel 11 18 22 23
Total Valuation $21.22M $42.88M $71.88M $27.24M
Rental Inspections: Rental licensing and inspections are ongoing. In 2023, the City licensed 245
rental properties. In 2023, approximately 102 rental inspections were completed.
Rental Summary Comparison 2020 2021 2022 2023
Licensed Rental Properties (Res.) 167 155 164 245
Rental Inspections 0 0 0 102
*Apartment buildings count as 1 inspection
Responsible Person: Kevin Benshoof, Maeghan Becker/Building Department
Submitted Through: Adam Nafstad, City Administrator-PWD
Attachment:
• 2023 Permit Activity Summary
Agenda Page 44
2023 Single FamilyMultiFamilyAdditions/RemodelsDeck/PorchFireplaceFinish BasementNEW Commercial/InstitutionalCommercial Addition/RemodelCommercial SignSign, TemporarySiding/ReroofMechanical/Plumbing/GasGarage/ShedPoolRight of WayOtherTotal Value of Single/Multi Family Value of New Commercial/Institutional Value Comm. Remodel/Tenant Finish Total
Valuation
(all permits)
January 0021500000425003242 -$ -$ -$ 560,055.00$
February 0030010310110001020 -$ -$ 450,500.00$ 727,730.00$
March 00000002311618014449 -$ -$ 44,000.00$ 755,453.00$
April 00032203217240051160 -$ -$ 1,771,142.00$ 2,430,843.00$
May 002120123012450061286 -$ 10,421,700.00$ 4,500.00$ 12,309,506.00$
June 000261025017320141484 -$ -$ 46,043.00$ 1,558,392.00$
July 00240001201430107768 -$ -$ 500.00$ 971,847.00$
August 001401013118270031069 -$ -$ 15,000.00$ 748,126.00$
September 100101031113170051154375,000.00$ -$ 40,500.00$ 1,596,453.00$
October 00000013411917004655 -$ 1,200,000.00$ 2,220,500.00$ 4,021,157.00$
November 1011000121611000428500,000.00$ -$ 500.00$ 823,057.00$
December 1001000230016001327400,000.00$ -$ 1,000.00$ 742,799.00$
TOTAL 3 0 11 18 15 6 2 23 29 6 127 272 1 2 43 84 642 1,275,000.00$ 11,621,700.00$ 4,594,185.00$ 27,245,418.00$
2022
January 4020020010317001434839,590.00$ -$ -$ 1,136,378.00$
February 50220201101220033421,481,310.00$ -$ 1,000.00$ 2,355,727.00$
March 801231031110220025592,173,585.00$ -$ 202,000.00$ 2,908,746.00$
April 61139311001225014188513,373,050.00$ 5,642,334.00$ 500.00$ 19,733,669.00$
May 861910111121529005131029,633,880.00$ 2,094,240.00$ 500.00$ 12,718,262.00$
June 600443023111340079841,503,083.00$ -$ 27,800.00$ 2,269,693.00$
July 1100510102018430109913,205,895.00$ -$ 35,000.00$ 4,394,047.00$
August 1510315613211631009610913,122,738.00$ 514,248.00$ 72,215.00$ 15,412,931.00$
September 701491040215120019651,599,370.00$ -$ 1,222,133.00$ 3,403,424.00$
October 400162221119310118791,015,210.00$ 3,657,434.00$ 168,976.00$ 5,848,117.00$
November 0000100231550012671 -$ -$ 375,000.00$ 1,226,081.00$
December 0000220140029001342 -$ -$ 75,650.00$ 481,336.00$
TOTAL 74 8 8 33 69 24 5 22 17 10 115 345 0 4 36 93 863 47,947,711.00$ 11,908,256.00$ 2,180,774.00$ 71,888,411.00$
2023 Building Year End
Agenda Page 45
ALBERTVILLE FIRE
DEPARTMENT
2023 Annual Report
Agenda Page 46
Albertville Fire Department
Mission Statement
Albertville Fire Department members are highly trained and dedicated to their community in order to maintain the following oath to our citizens:
"The mission of the Albertville Fire Department is to minimize the loss of life and property from fire, natural disaster, and hazardous material incidents; and to save lives by providing emergency services in life threatening situations in the Cities of Albertville and Otsego; and to perform these services in a safe and efficient manner by maintaining effective emergency response, life safety principles, fire suppression initiatives, and fire prevention training.“
Vision Statement
“The Albertville Fire Department is committed to providing a superior level of emergency service that continually improves the quality of life, health, and safety of the people who live, work in, and visit our community.”
Agenda Page 47
Albertville Fire Department
The Albertville Fire Department is committed to the following Core Values:
Integrity
Professionalism
Honor
Dedication
Integrity:That our moral principles and intellectual honesty will carry through to the Fire Department and everything we do in the community.
Professionalism:We hold our individual involvement in this profession to the highest standards through committed, quality service to our community. We exemplify our professionalism in the way we take pride in ourselves through our service and day-to-day interactions.
Honor:We are committed to honesty, moral values, and ethics in all that we do. We believe that every action we take reflects on all the members of the Fire Department, both past and present.
Dedication:We hold a passionate belief in our mission as a Fire Department.
Agenda Page 48
2023 Incident
Data
Agenda Page 49
Incidents by Year
555 Calls in 2023, up from 549 in 2022.
Annual call volume has increased 113% since 2014.
Agenda Page 50
Incidents by Month
Total Calls in 2023: 555
Agenda Page 51
Incidents by Day of Week
Total Calls in 2023: 555
Agenda Page 52
Incidents by Time of Day
Total Calls in 2023: 555
Agenda Page 53
Incidents by Time Block
Weekday / Daytime:
Monday to Friday / 5:00 a.m. to 5:00 p.m.
219 Calls (39.46%)
Weekday / Nighttime:
Monday to Friday / 5:00 p.m. to 10:00 p.m.
98 Calls (17.66%)
Weekends:
Friday 10:00 p.m. to Sunday 10:00 p.m.
167 Calls (30.09%)
Medical Companies:
Sunday to Friday / 10:00 p.m. to 5:00 a.m.
71 Calls (12.79%)
o 6 per month
Agenda Page 54
Incidents by Time Block
Agenda Page 55
Incidents by City
Total Calls in 2023: 555
o Albertville: 263 (47.39%)
o Otsego: 264 (47.57%)
o Mutual Aid: 28 (5.04%)
Agenda Page 56
Historical Incident Volume Comparison
Year 2015 2016 2017 2018 2019 2020 2021 2022 2023
Albertville 163 153 184 218 234 231 324 298 263
Otsego 73 105 129 131 164 158 204 209 264
Mutual Aid 20 18 25 17 20 25 41 42 28
TOTAL 256 276 338 366 418 414 569 549 555
Year 2015 2016 2017 2018 2019 2020 2021 2022 2023
Albertville 63.67%55.43%54.44%59.56%55.98%55.80%56.94%54.28%47.39%
Otsego 28.52%38.04%38.17%35.79%39.23%38.16%35.85%38.07%47.57%
Mutual Aid 7.81%6.52%8.28%4.64%4.78%6.04%7.21%7.65%5.05%
TOTAL 256 276 338 366 418 414 569 549 555
Agenda Page 57
Historical Incident Volume Comparison
Agenda Page 58
Turnout and Response Time
Turnout and Response Time of the first out, first arriving, unit from the
Fire Hall
o Turnout Time = Time of Dispatch to time first unit leaves Fire Hall
o Response Time = Time of Dispatch to time first unit arrives on-scene
o Travel Time = Response Time minus Turnout Time
Only Emergent Response incidents
Does not include Fire Chief response
Turnout Time Response Time Travel Time
January 6:27 9:56 3:29
February 5:31 8:42 3:11
March 5:52 10:40 4:48
April 6:33 10:47 4:14
May 5:27 9:42 4:15
June 5:24 9:09 3:45
July 6:12 10:30 4:18
August 5:50 9:38 3:48
September 5:11 8:25 3:14
October 5:51 9:17 3:26
November 5:08 8:41 3:33
December 5:57 9:14 3:17Agenda Page 59
Turnout and Response Time
Agenda Page 60
Incident Statistics –Calls Dispatched To
Incident Type Count Percent
100 Series -Fire 31 5.59%
200 Series -Overpressure Rupture, Explosion, Overheat (No Fire)1 0.18%
300 Series -Rescue and Emergency Medical Services Incident 291 52.43%
400 Series -Hazardous Condition (No Fire)13 2.34%
500 Series -Service Call 16 2.88%
600 Series -Good Intent Call 153 27.57%
700 Series -False Alarm and False Call 46 8.29%
800 Series -Severe Weather and Natural Disaster 4 0.72%
Agenda Page 61
Incident Statistics –Calls Arrived At
Incident Type Count Percent
100 Series -Fire 39 9.07%
200 Series -Overpressure Rupture, Explosion, Overheat (No Fire)0 0.00%
300 Series -Rescue and Emergency Medical Services Incident 264 61.40%
400 Series -Hazardous Condition (No Fire)11 2.56%
500 Series -Service Call 7 1.63%
600 Series -Good Intent Call 14 3.26%
700 Series -False Alarm and False Call 91 21.16%
800 Series -Severe Weather and Natural Disaster 4 0.93%
Agenda Page 62
Incident Types –Detailed Breakdown by Call Type
Actual Incident Type Found Count Percent Actual Incident Type Found Count Percent
111 -Building fire 17 3.10%440 -Electrical wiring/equipment problem, other 4 0.70%
113 -Cooking fire, confined to container 2 0.40%445 -Arcing, shorted electrical equipment 1 0.20%
123 -Fire in portable building, fixed location 1 0.20%531 -Smoke or odor removal 1 0.20%
130 -Mobile property (vehicle) fire, other 3 0.50%550 -Public service assistance, other 6 1.10%
131 -Passenger vehicle fire 1 0.20%551 -Assist police or other governmental agency 7 1.30%
132 -Road freight or transport vehicle fire 1 0.20%561 -Unauthorized burning 2 0.40%
140 -Natural vegetation fire, other 1 0.20%611 -Dispatched & canceled en route 136 24.50%
151 -Outside rubbish, trash or waste fire 4 0.70%622 -No incident found on arrival at dispatch address 12 2.20%
160 -Special outside fire, other 1 0.20%631 -Authorized controlled burning 1 0.20%
251 -Excessive heat, scorch burns with no ignition 1 0.20%651 -Smoke scare, odor of smoke 4 0.70%
311 -Medical assist, assist EMS crew 5 0.90%700 -False alarm or false call, other 10 1.80%
321 -EMS call, excluding vehicle accident with injury 237 42.70%731 -Sprinkler activation due to malfunction 2 0.40%
322 -Motor vehicle accident with injuries 45 8.10%733 -Smoke detector activation due to malfunction 14 2.50%
324 -Motor vehicle accident with no injuries.2 0.40%735 -Alarm system sounded due to malfunction 4 0.70%
352 -Extrication of victim(s) from vehicle 1 0.20%736 -CO detector activation due to malfunction 10 1.80%
365 -Watercraft rescue 1 0.20%741 -Sprinkler activation, no fire -unintentional 1 0.20%
411 -Gasoline or other flammable liquid spill 3 0.50%743 -Smoke detector activation, no fire -unintentional 1 0.20%
412 -Gas leak (natural gas or LPG)2 0.40%745 -Alarm system activation, no fire -unintentional 4 0.70%
424 -Carbon monoxide incident 3 0.50%815 -Severe weather or natural disaster standby 4 0.70%
Total Incidents:555 100.00%
Agenda Page 63
Incident Statistics –Mutual Aid Calls
Type Incidents
Automatic Aid Given 24
Mutual Aid Given 10
Automatic Aid Received 21
Mutual Aid Received 10
TOTAL 65
Agenda Page 64
2023 Fire
Department
Information
Agenda Page 65
Fire Department Fleet
AFD Fleet - 12/31/2023:
1999 International = Tender 11
o Replacement Tender 11 Ordered
•September 2024 Delivery
2011 Ford F-250 = Utility 11
2011 John Deere Gator = UTV 11
2015 Chevy Tahoe = Chief #1
2016 Chevy Suburban = Rescue #11
2019 Pierce Impel Pumper = Engine #11
2019 Pierce Impel 110” Aerial = Tower #11
Agenda Page 66
Fire Department Staffing
AFD Staffing - 12/31/2023:
1 Full-Time Fire Chief
Paid -On-Call Members (30 Authorized):
o 1 = Deputy Fire Chief
o 1 = Assistant Fire Chief
o 3 = Company Captains
o 1 = Training Captain
o 3 = Lieutenants
o 19= Firefighters
o 28 Paid-On Call Members
Reserve Firefighters:
o 1 = Reserve Firefighter
Total Staffing = 29 Members
Agenda Page 67
Fire Department Time Commitment
2023 Call Hours:
Members attended 6,539 hours of call time
o Average of 218 hours per member
2023 Training Hours:
Members attended 2,817 hours of training
o Average of 94 hours per member
2023 Community/Volunteer Hours:
Members volunteered 592 hours of time
o Average of 20 hours per member
2023 Total Time Commitment:
Average of 332 hours per member
o 28 hours per month
Agenda Page 68
2024 Fire Department Recognitions
2023 Resignations:
Firefighter T. Vang = 2 years
2024 Service-Year Awards:
5-years:
o Deputy Fire Chief K. Gammell
o Firefighter J. Grove
o Firefighter C. Holzerland
o Firefighter N. Ose
o Firefighter S. Severson
10-years:
o Firefighter N. Dording
o Firefighter T. Trainor
15-years:
o Captain M. Minette
20-years:
o Captain D. Asleson
o Captain J. Eull
Agenda Page 69
2023 Fire Department Awards
2023 Top Training Hours:
Top Training Hours = Lieutenant C. Thurber
o 213.5 Training Hours
o Honorable Mention Training Hours:
•Captain J. Eull = 199.5 Hours
•Firefighter M. Aguirre = 188.5 Hours
•Firefighter J. Grove = 188 Hours
•Captain G. Gerads = 184.5 Hours
Department Average = 94 Hours
Agenda Page 70
2023 Fire Department Awards
2023 Top Volunteer Hours:
Top Volunteer Hours = Firefighter C. Follett
o 79.5 Volunteer Hours
o Honorable Mention Top Volunteer Hours:
•Firefighter T. Gonsior = 67 Hours
•Firefighter P. Gonsior = 43 Hours
•Firefighter J. Grove = 41 Hours
•Firefighter N. Ose = 40.5 Hours
•Lieutenant K. Anderson = 32 Hours
•Captain J. Eull = 32 Hours
Department Average = 22 Hours
Agenda Page 71
2023 Fire Department Awards
2023 Top Caller:
Top Caller = Firefighter C. Follett
o 394 of 555 Calls / 71%
o Honorable Mention Top Call Percentage:
•Firefighter M. Aguirre = 314 Calls / 57%
•Firefighter J. Grove = 312 Calls / 56%
•Firefighter S. Severson = 286 Calls / 52%
•Lieutenant K. Anderson = 277 Calls / 50%
Department Average = 194 Calls / 35%
Agenda Page 72
2023 Fire Department Awards
2023 Paul Heinen Above and Beyond Award:
Winner: Firefighter C. Follett
o Runner-Up: Firefighter N. Dording
o Other Nominations:
•Captain J. Eull
•Captain G. Gerads
•Firefighter P. Gonsior
•Lieutenant C. Thurber
Agenda Page 73
2023 Fire Department Awards
2023 “Hat Trick” Award:
Winner: Firefighter C. Follett
“For responding to the most calls for service, having the most volunteer
hours, and being the recipient of the Paul Heinen Above and Beyond Award in
2023.”
Agenda Page 74
2023 Grant Review
Minnesota Board of Firefighter Training and Education:
Requested $17,347 in Initial Training and Redistribution Award Funds
o Received $9,900 in reimbursements
In addition, full funding for:
o Initial Fire Academy
o Fire Instructor I Classes
o Fire Officer I Classes
National Fire Safety Council:
Received $3,500 in local business donations for Fire Safety / Public
Education materials
o Joint venture with the St. Michael Fire Department
o STMA School District approach to fire prevention materials
Agenda Page 75
2023 Grant Review
Central Minnesota EMS Region:
Funding for Initial EMT Class
o 4 AFD Members took advantage of the grant funded training
opportunity
Funding for Initial EMR Class
o 1 AFD Member took advantage of the grant funded training
opportunity
EMS Equipment Grant
o $1,000 Grant Award for purchase of a new AED
Agenda Page 76
2023 Department Highlights
Training Captain Promotion
Lieutenant Promotion
Three Paid-on-Call Firefighter Promotions
One Class of Reserve Firefighters
Firefighter Fuel Reimbursement Program
Albertville Friendly City Days / Craft Beer Night
Wright County Multi-Hazard Mitigation Plan
Radio Reprogramming
Relief Association move to PERA SVF
Replacement Tender 11 Order
Agenda Page 77
Looking forward
to 2024!
Agenda Page 78
Mayor and Council Request for Action
February 20, 2024
SUBJECT: PLANNING – ALBERTVILLE ZONING AMENDMENT RELATING TO
HOT TUB FENCES
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the
following motion:
MOTION TO: adopt Ordinance No. 2024-01 to amend Ordinance 1000.5.E.2.e., exempting
above ground hot tubs from the swimming pool fence requirements of the Albertville City Code
BACKGROUND: Currently all hot tubs are required to be located within a fenced area. The
fence must be a minimum of five feet in height. The city has received a number of requests for
above ground hot tubs without the required fence. In staff review of the issue, we agree that the
above ground hot tubs may provide restricted access without the fence. In this regard, the
attached zoning code amendment is being offered to remove the fencing requirement for above
ground hot tubs.
KEY ISSUES:
•Most above ground hot tubs have a height range from 34 to 42 inches.
•The City has received a number of requests for new hot tubs to be installed on patios or
decks without a fenced yard.
•The above ground hot tubs have an exterior wall and have lids or coverings that can be
used to restrict tub access.
•The proposed code amendment exempts above ground hot tubs from the fence
requirements provide the tub has a means of securing access to the tub when not in use.
In-ground hot tubs and pools shall continue to be enclosed fenced areas.
POLICY CONSIDERATIONS: In accordance with State Law, public notice was published,
and a public hearing held by the Planning Commission on February 13, 2024, to consider the
amendment to the hot tub regulations. Upon closing the public hearing, the Planning
Commission recommended the City Council approve the zoning text amendment.
FINANCIAL CONSIDERATIONS: There are no significant financial issues related to the
zoning text amendment. The City shall be responsible for all costs associated with any
enforcement related to the zoning text amendment.
LEGAL CONSIDERATIONS: In accordance with Council procedures, the Mayor and Council
have the authority to amend the City Zoning Regulations, which requires a majority vote of the
City Council and becomes effective upon publication.
Responsible Person: Alan Brixius, City Planner
Agenda Page 79
Mayor and Council Request for Action – February 20, 2024
Planning - Zoning Text Amendment for Hot Tubs Fence Page 2 of 2
Submitted Through: Adam Nafstad, City Administrator-PWD
Attachments:
• Ordinance No. 2024-01
• Planning Report dated January 25, 2024
Agenda Page 80
CITY OF ALBERTVILLE
COUNTY OF WRIGHT
STATE OF MINNESOTA
ORDINANCE NO. 2024-01
AN ORDINANCE AMENDING SECTION 1000.5.E.2.e ALBERTVILLE MUNICIPAL
CITY CODE, RELATING TO HOT TUB FENCES
The City Council of the City Of Albertville, Minnesota hereby Ordains:
Section 1. Ordinance 1000.5.E.2.e., Hot Tubs of the Albertville City Code is hereby
amended to add the underlined text as follows:
1000.5 E: HOT TUBS:
E. Hot Tubs:
1. Hot tubs accessory to multiple-family residential uses and commercial uses shall comply
with swimming pool performance standards of subsection D of this section.
2. Hot tubs accessory to single- and two-family residential units may be allowed by
administrative permit and exempt from the swimming pool performance standards of this section
but shall meet the following standards:
a. Hot tubs shall not be located in front of the principal building.
b. Hot tubs shall not be located within the required side yard of any zoning district.
c. Hot tubs shall not be located any closer than ten feet (10') from any rear property line.
d. All filter units, heat units, pumps, and any noise generating equipment shall be enclosed
within the cabinet of the hot tub and insulated to buffer noise.
e. All outdoor in ground hot tubs shall be enclosed within a protective fence with a self-
locking gate or shall be secured with a locked cover when not in use. Outdoor above ground hot
tubs with means to secure access to the hot tub are exempt from the required fence and gate
requirements.
Section 2. This amendment shall be in full force and effective immediately following its
passage and publication.
Adopted by the City Council of the City of Albertville this 20th day of February 2024.
________________________________
Jillian Hendrickson, Mayor
ATTEST:
_________________________
Kristine A. Luedke, City Clerk
Agenda Page 81
Abcities LLc
PLANNING REPORT
TO: Adam Nafstad
FROM: Alan Brixius
DATE: January 25, 2024
RE: Albertville Zoning Amendment – Hot Tubs
FILE NO: 163.05 23.05
BACKGROUND
Currently all hot tubs are required to be located within a fenced area. The fence must be a
minimum of five feet in height. The City has received a number of requests for above
ground hot tubs without the required fence. In staff review of the issue, we agree that the
above ground hot tubs may provide restricted access without the fence. In this regard, the
attached zoning code amendment is being offered to remove the fencing requirement for
above ground hot tubs.
EXHIBITS
Exhibit A: Draft Zoning Amendment – Hot Tubs.
ANALYSIS
The proposed zoning code amendment includes the following key issues.
1. In ground hot tubs will continue to be treated similar to swimming pools and will be
required to located within the fenced area. The minimum fence height shall be 5
feet tall and shall have a self-closing gate and latch. To fence and gate design is to
prevent access to the hot tub or swimming pool.
2. Above ground hot tubs with means to restrict access to the tub may be exempt from
the fence requirements.
3. The changes allow a property owner to install an above ground hot tub without the
expense of fence installation.
CONCLUSION
The attached zoning code amendment is provided for the Planning Commission and City
Council consideration. If acceptable, Staff recommend approval of the code amendment.
Cc. Maeghan Becker
Kris Luedke
Mike Couri
16405 78th Avenue n. MApLe Grove
teL: 763-242-6955
eMAiL ALbrixius@GMAiL.coM
Agenda Page 82
Mayor and Council Communication
February 20, 2024
SUBJECT: UTILITY DEPARTMENT – PURCHASE OF TWO GENERATORS AND
AUTOMATIC TRANSFER SWITCH
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the
following motion:
MOTION TO: Approve purchase of two Generators Model C70N6 and Model C45N6 and an
Automatic Transfer Switch from Cummins Inc, Des Moines Iowa for $122,250.
BACKGROUND: In a continuing effort to provide fast, reliable response during power outages,
more backup power generators must be purchased. The C70N6 would be purchased for the Fire
Hall and would also include a transfer switch. The C45N6 would be purchased for Albertville’s
lift station.
KEY ISSUES:
• The generator at the Fire Hall would allow faster response during power outages.
• The generator at Albert Villa’s lift station would relieve pressure on the two portable
generators.
• The Albert Villa’s lift station was selected for the generator due to its electrical
requirements and location.
• The price is based on the Sourcewell Contract.
POLICY CONSIDERATIONS: It is the Mayor and Council’s policy to review and approve the
purchase of the Utilities Department.
FINANCIAL CONSIDERATIONS: The equipment will be paid with funds from Fire Capital
and ARPA funds. $89,500 will come from Fire Capital to pay for the C70N6 generator and
automatic transfer switch for the fire hall. $32,750 for the C45N6 generator to be used at the
Albert Villa’s lift station and will be paid with ARPA funds, which is consistent with the City’s
ARPA funding plan.
LEGAL CONSIDERATIONS: The Mayor and Council have the authority to approve the
purchase for the Utilities Department.
Responsible Person: John Middendorf, Utilities Superintendent.
Submitted Through: Adam Nafstad, City Administrator-PWD
Attachment:
• Quote from Cummings Sales and Service
Agenda Page 83
Project: City of Albertville Genset
Quotation: Q-221932-20240129-1554
Quotation: Q-221932-20240129-1554
Page 1 of 9
January 29, 2024
We are pleased to provide you this quotation based on your inquiry.
Item Description Qty
GEN70 C70N6, 70kW, 60Hz, Standby, Natural Gas/Propane Genset 1
0 U.S. EPA, Stationary Emergency Application 1
0 Duty Rating - Standby Power (ESP) 1
0 Emissions Certification - SI, EPA, Emergency, Stationary, 40CFR60 1
0 Listing - UL 2200 1
0 NFPA 110 Type 10 Level 1 Capable 1
0 Alternator - 60Hz, 12L, 208/120V, 105C, 40C Ambient, Increased Motor Starting (IMS) 1
0 • Exciter/Regulator - Permanent Magnet Generator, 3 Phase Sensor 1
0 • Voltage - 120/208, 3 Phase, Wye, 4 Wire 1
0 • Alternator Heater, 120 Volt AC 1
0 PowerCommand 1.1 Controller 1
0 • Control Mounting - Left Facing 1
0 • Gauge - Oil Pressure 1
0 • Stop Switch - Emergency 1
0 • Signals - Auxiliary, 8 Inputs/8 Outputs 1
0 Load Connection - Single 1
0 • Circuit Breaker, Location A, 70A - 250A, 3P, LSI, 600 Volts AC, 100%, UL 1
0 Engine Cooling - Radiator, High Ambient Air Temperature, Ship Fitted 1
0 • Shutdown - Low Coolant Level 1
0 • Extension - Coolant Drain 1
0 • Engine Coolant - 50% Antifreeze, 50% Water Mixture 1
0 • Coolant Heater, Extreme Cold Ambient 1
0 Engine Governor - Electronic, Isochronous 1
0 Single Gas Fuel - NG or LP Vapor 1
0 Engine Starter - 12 Volt DC Motor 1
0 Engine Air Cleaner - Normal Duty 1
0 Battery Charging Alternator 1
0 Battery Charger - 6 Amp, Regulated 1
0 Engine Oil Heater - 120 Volts AC, Single Phase 1
0 Engine Oil 1
0 Genset Warranty - 2 Years Base 1
Enclosure
0 Aluminum Sound Attenuated Winter Enclosure, with Exhaust System 1
0 Enclosure Color - Green, Aluminum 1
0 Enclosure - Wind Load 180 MPH, ASCE7-10 1
0 Larger Battery Rack 1
Automatic Dampers
0 DC Powered Lights Inside Enclosure 1
0 Enclosure - Heater, Internal 1
0 Extension - Oil Drain 1
0 Panel, Distribution 1
0 Green Sound Level 2 Intake Baffle - Ship Loose 1
GEN45 C45N6, 45kW, 60Hz, Standby, Natural Gas/Propane Genset 1
0 U.S. EPA, Stationary Emergency Application 1
0 Duty Rating - Standby Power (ESP) 1
0 Emissions Certification - SI, EPA, Emergency, Stationary, 40CFR60 1
0 Listing - UL 2200 1
0 NFPA 110 Type 10 Level 1 Capable 1
0 Alternator - 60Hz, Reconnect, Full Output, 120C, 40C Ambient, Increased Motor Starting (IMS) 1
0 • Exciter/Regulator - Permanent Magnet Generator, 3 Phase Sensor 1
0 • Voltage - 120/240, 1 Phase, 3 Wire 1
0 • Alternator Heater, 120 Volt AC 1
Agenda Page 84
Project: City of Albertville Genset
Quotation: Q-221932-20240129-1554
Quotation: Q-221932-20240129-1554
Page 2 of 9
0 PowerCommand 1.1 Controller 1
0 • Control Mounting - Left Facing 1
0 • Gauge - Oil Pressure 1
0 • Stop Switch - Emergency 1
0 • Signals - Auxiliary, 8 Inputs/8 Outputs 1
0 Load Connection - Single 1
0 • Circuit Breaker, Location A, 70A - 250A, 3P, LSI, 600 Volts AC, 100%, UL 1
0 Engine Cooling - Radiator, High Ambient Air Temperature, Ship Fitted 1
0 • Shutdown - Low Coolant Level 1
0 • Extension - Coolant Drain 1
0 • Engine Coolant - 50% Antifreeze, 50% Water Mixture 1
0 • Coolant Heater, Extreme Cold Ambient 1
0 Engine Governor - Electronic, Isochronous 1
0 Single Gas Fuel - NG or LP Vapor 1
0 Engine Starter - 12 Volt DC Motor 1
0 Engine Air Cleaner - Normal Duty 1
0 Battery Charging Alternator 1
0 Battery Charger - 6 Amp, Regulated 1
0 Engine Oil Heater - 120 Volts AC, Single Phase 1
0 Engine Oil 1
0 Genset Warranty - 2 Years Base 1
Enclosure
0 Aluminum Sound Attenuated Winter Enclosure, with Exhaust System 1
0 Enclosure Color - Green, Aluminum 1
0 Enclosure - Wind Load 180 MPH, ASCE7-10 1
0 Larger Battery Rack 1
Automatic Dampers
0 DC Powered Lights Inside Enclosure 1
0 Enclosure - Heater, Internal 1
0 Extension - Oil Drain 1
0 Panel, Distribution 1
0 Green Sound Level 2 Intake Baffle - Ship Loose 1
Paint Enclosure Upfit - Custom Color Option 20-200kW 2
Parts Generator Remote E-Stop 2
Parts Remote Annunciator-panel mount with enclosure (RS485) 1
Service Startup Assistance and System Commissioning - Starting Batteries 2
Service Customer Training - 1 Trip 2
Freight Freight to Jobsite - Offloading by Others 2
Note Fuel for Testing and Turn-over by Others 1
TOTAL: $ 82,750.00
Adder Outdoor Switchgear/Transfer Switch +$39,500.00
600A, 208Y/120V, 3PH4W, AL Bus, NEMA 3R, UL 891, SUSE Rated, 65kAIC.
1 600A, Utility CT Provision
1 600A, 3P, LSIG, 100% Rated, Fixed Mounted, Manually Operated Main Breaker
1 600A, 3P Open Transition ATS ASCO 300 Per Specs
1 400W Heater w/T Stat
No Coordination Study, No Arc Maintenance Included.
Quote value does not include any tax.
Agenda Page 85
Project: City of Albertville Genset
Quotation: Q-221932-20240129-1554
Quotation: Q-221932-20240129-1554
Page 3 of 9
NOTES:
Proposal is for equipment only, offloading, rigging, and installation by others.
Fuel and permits, unless listed above, is not included.
Cummins Standard Start-up and testing is included. Additional tests, such as NETA testing, if required, is by others.
Coordination Study not provided.
Please feel free to contact me if you require any additional information; or if you have any further questions or concerns that I may be of
assistance with.
Thank you for choosing Cummins.
SUBMITTALS. An order for the equipment covered by this quotation will be accepted on a hold for release basis. Your order will not be
released and scheduled for production until written approval to proceed is received in our office. Such submittal approval shall
constitute acceptance of the terms and conditions of this quotation unless the parties otherwise agree in writing.
THERE ARE ADDITIONAL CONTRACT TERMS AND CONDITIONS ATTACHED TO THIS QUOTATION, INCLUDING LIMITATIONS
OF WARRANTIES AND LIABILITIES, WHICH ARE EXPRESSLY INCORPORATED HEREIN. BY ACCEPTING THIS QUOTATION,
CUSTOMER ACKNOWLEDGES THAT THE CONTRACT TERMS AND CONDITIONS HAVE BEEN READ, FULLY UNDERSTOOD
AND ACCEPTED.
Authorized Signature
Date
Company Name
Printed Name & Title
Purchase Order No
<Rest of the page is intentionally left blank>
Agenda Page 86
Mayor and Council Communication
February 20, 2024
SUBJECT: UTILITY DEPARTMENT – PURCHASE OF NEW CATERPILLAR
PORTABLE GENERATOR
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the
following motion:
MOTION TO: Approve purchase of a Caterpillar Model XQ125BM Generator complete with
Trailer, Enclosure, and assorted Power Cords from Ziegler Power Systems for $137,650.
BACKGROUND: In a continuing effort to provide fast, reliable response during power outages,
more backup power generators must be purchased. The City currently owns two portable
generators. One is capable of powering City Hall and the other one is dedicated to sewage lift
stations. With six lift stations without generator backup, the City needs more than one portable
generator for coverage.
KEY ISSUES:
• The proposed purchase would allow the City to be more independent and better
prepared for outages. Typically, power outages affect a large geographic area, and it is
difficult to quickly rent or borough a generator compatible for the use.
• The generator would be able to power all six lift stations which currently are without a
generator backup.
• The price is based on the Sourcewell Contract.
POLICY CONSIDERATIONS: It is the Mayor and Council’s policy to review and approve the
purchase of the Utilities Department.
FINANCIAL CONSIDERATIONS: The purchase of the Generator will be paid with ARPA
funds, which is consist with the planned use of funds.
LEGAL CONSIDERATIONS: The Mayor and Council have the authority to approve the
purchase for the Utilities Department.
Responsible Person: John Middendorf, Utilities Superintendent.
Submitted Through: Adam Nafstad, City Administrator-PWD
Attachment:
• Quote from Ziegler Cat
Agenda Page 87
Proposal by
8050 Cty Rd 101 East
Shakopee, MN 55379
952-887-4535
Daniel.slagle@zieglercat.com
To: City of Albertville
Re: Caterpillar 100kW Towable Generator
Sourcewell Member #: 87350
Contract # 092222-CAT
WE PROPOSE TO FURNISH IN ACCORDANCE WITH THE FOLLOWING SPECIFICATIONS, TERMS AND CONDITIONS
QUANTITY One (1) New CATERPILLAR Tier 4 Portable Diesel Generator Set in 66dB Outdoor
Insulated Enclosure Mounted on Trailer with Electric Brakes, Pintle Hitch
Box Mounted on Trailer for cables.
MODEL XQ125BM – Tier 4 Final
RATING 100 kW prime power
VOLTAGE Selectable voltage switch (480/277V, 120/208V 3ph & 120/240V 1 Ph)
RECEPTACLES: Main bus bar with hinged cover door
3 – 240V, 50A California style twist lock receptacle
2 – 120V/240V, 20A twist lock
2 - 120V, 20A duplex receptacles with GFI
BREAKERS: Two (2) thermal magnetic trip breakers.
One (1) 200 amp to feed 208V system
One (1) 100 amp to feed 480V 3ph system.
CABLES/PLUGS Two 25’ soow cords with plugs
100 amp 480V with ACP1044CDRS Connector
200 amp 208V with AP20044EP4RS Connector
One (1) 30A 120V Shore power cord.
Cable Box On Trailer Tongue.
WARRANTY Two (2) year 2000 hour
TOTAL EQUIPMENT PRICE $ 137,650 .00 *
*Price does not include sales tax or licensing.
APPROXIMATE SHIPPING DATE January 2025 F.O.B Albertville, MN
TERMS: Net 20 days
ACCEPTED: Respectfully submitted,
ZIEGLER INC.
By Dan Slagle
Dan Slagle, Sales Engineer
By Subject to approval by APPROVED:
ZIEGLER INC.
Its By
Proposal No. EPG012402 Date: January 22, 2024
Agenda Page 88
BILL OF MATERIAL
EPG0122402
XQ125 RENTAL P.K..G
100 ekW Prime, 110 ekW Standby.
125kVA Prime, 137kVA Standby
C4.4 Engine; Governor = Isochronous Electronic, Aspiration = ATAAC.
EMCP 4.2B DIGITAL CONTROL PANEL
EMCP 4.2B genset mounted controller
Automatic start/stop with cool down timer
Idle/rated switch
Generator Protection features: 32, 32RV, 46, 50/51, 27/59, 81 O/U
Metering display: voltage, current, frequency, power factor, kW, WHM, and kVAR
EMCP 4.2B GENERATOR PROTECTIVE RELAYING
Generator protective features provided by EMCP 4.2B
Generator phase sequence
Over/Under voltage (27/59)
Over/Under frequency (81 O/U)
Reverse Power (kW) (32)
Reverse Reactive Power (kVAR) (32RV)
Over current (50/51)
COOLING SYSTEM
Radiator package mounted; ambient capability 43Deg C
50% Coolant antifreeze with corrosion inhibitor
Drain lines; exterior.
Blower fan drive and fan guard(w/vertical discharge through enclosure)
Belt guards
Coolant level reservoir / sight gauge
Cooling drain line with valve
DISTRIBUTION PANEL
NEMA 1 steel enclosure with hinged lockable door
Power connection - ground
Separate control and load sections
Hinged load cover door with window that must be closed for main circuit breaker operation
Two 120 volt, 20 amp duplex receptacles with GFI
Two-wire start/stop connection terminals
Voltage selector switch located inside enclosure (LH)
ENCLOSURES
Rust resistant steel
Black stainless steel Padlockable latches on all doors.
Zinc die cast hinges/grab handles.
Doorkeepers on all doors.
Modular panel construction.
Single point lifting.
Sound attenuation
EXHAUST SYSTEM
Integral with flexible connector
AIR INLET SYSTEM
Air cleaner: Agenda Page 89
BILL OF MATERIAL
EPG0122402
- Single medium duty element.
- Dust cup and service indicator.
ATAAC.
CHARGING SYSTEM
Charging alternator - 12V with integral regulator.
Belt guards.
FUEL SYSTEM
Fuel filter - replaceable element
3-way fuel valves - for external tank connection
UL142 Dual wall fuel tank base with 24-hour run time capacity at 75% of prime rating
Fuel priming pump
Fuel/water separator
GENERATORS AND GENERATOR ATTACHMENTS
Self-excited generator
Integrated Voltage Regulator (IVR)
Coastal insulation protection
CSA approval
INSTRUMENTATION
CAT CONNECT
Product link generation for fleet management and asset tracking -
Cellular PLG641
LUBE SYSTEM
Oil cooler
Lubricating oil
Crankcase breather with collection assembly.
Oil filter (spin-on) and dipstick
Oil drain line plumbed to exterior with valve
MOUNTING SYSTEM
Generator set; soft mounted to base to reduce vibration and noise
Base contains bund to capture 110% of all fluids
STARTING SYSTEM
Battery rack and cables installed on base
Single electric starting motor; 12 volt
Single 12V Battery (Cat brand maintenance free)
Glow plugs fitted on engine
120V Engine block heater
Battery charger, 10A, 12VDC
GENERAL
Paint:
- Caterpillar Yellow on engine and generator
- Black on base, lift arch and radiator
- White on enclosure
TRAILER
Installed genset on trailer.
Agenda Page 90
BILL OF MATERIAL
EPG0122402
TECHNICAL: Leaf Spring suspension
Brakes: Electric
Hitch: Pintle
Approximate weight empty: 900 lb
Bed dimensions:134" (3404mm) x 53.5" (1359mm) x 18.7"
(476mm) (L x W x H).
Trailer Length 176.2
ST225/75R15 LRE
Electrical connection: 7-prong plug
Complies with Federal DOTs Federal Motor Vehicle
Safety Standards.
Label: National Association of Trailer Manufacturers
PROJECT MANAGEMENT SERVICES
Submittal drawings
{ Dimensional drawings
{ Electrical schematics
{ Product specifications
Prototype testing/Production testing
{ Operation and maintenance manual, Engine, generator
Warranty, One (1) year – unlimited hours
Onsite commissioning and training by local CAT dealer representative
COMMENTS AND CLARIFICATIONS
Installation provided by others
Initial fuel fill not included
Unit subject to availability at time of order
NOTES
Ziegler limits the scope of supply for this quotation to the equipment and services listed.
Equipment not listed is assumed to be provided by others.
Ziegler cannot provide air emission permits for customers. We will provide emission information on the
Caterpillar engine to the owner to aid in the permitting process.
Orders are subject to re-stocking charges if cancelled after release for production.
Mechanical and electrical installation provided by others.
State and local permits for fire, air, fuel tanks or building permits are not included and provided by others.
Start-up labor is to be performed during normal business hours, Monday through Friday 7:30 am to 4:00 pm.
Training is to be performed at the end of start-up. Additional trips or delays required or requested due to
contractor delay and/or issues with equipment not provided from Ziegler Power Systems will be billed at
published field service rates.
Terms:
Extension of contract beyond term must be at the mutual agreement of the parties.
Ziegler Inc. shall not be liable for consequential damages or damages beyond our control.
This quotation is subject to availability at time of order
Customer is responsible for adequate site conditions and security.
Customer is responsible for scheduled maintenance and fuel costs.
Customer must provide adequate insurance to cover equipment damage or loss.
Price(s) include state or local sales and/or use taxes.
Quotation is valid for 30 days.
PROVISIONS OF THE CONTRACT AND WARRANTY Agenda Page 91
BILL OF MATERIAL
EPG0122402
The prices quoted are current and are subject to change to those in effect at the time of shipment. Caterpillar
products are sold subject to the terms of the applicable Caterpillar warranty. Copies of the warranties
applicable to this purchase are attached hereto, and the purchaser by signing this order acknowledges receipt
of the Caterpillar warranties on Forms.
The Purchaser agrees to pay any and all taxes, assessments, licenses, and government charges of every kind
and nature whatsoever upon said equipment which may be imposed or assessed against or resulting to the
Seller on account of the possession or use of said equipment by Purchaser. All provisions hereof are
contingent upon government restrictions, strikes, and accidents, delays of carrier and other delays unavoidable
and beyond Seller’s control.
It is intended and understood that title and ownership of said equipment is and shall remain vested in the
Seller, notwithstanding delivery or possession, until the entire price is paid in full.
Agenda Page 92
Mayor and Council Request for Action
February 20, 2024
SUBJECT: ADMINISTRATION – MUNICIPAL CONSENT FOR I-94 GAP PROJECT
RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider
the following:
MOTION TO: Adopt Resolution No. 2024-11 for layout approval for State Project 8680-189
for Interstate Highway 94.
BACKGROUND: MnDOT would like to move forward with the completion of the I-94 Gap
project which would expand the freeway to 3 lanes from Monticello to Albertville. The City’s
approval for the project is required due to the increase in highway traffic capacity of I-94. Per
Statute, the City held a public hearing at its December 11, 2023, Council meeting on the final
project layout. MnDOT representatives presented the project layout and answered questions. At
the Council meeting, the City Council expressed concerns with the proposed project and issues
with the previous I-94 project. The Council’s consensus was to postpone the municipal consent
decision to give the City additional time to work with the MnDOT on their concerns.
Following the public hearing, the City sent MnDOT a letter dated December 19, 2023, outlining
the City’s concerns with the proposed project layout. Over the past few weeks, the Mayor and
City staff have had several discussions with MnDOT representatives. MnDOT has responded
with the attached letter from the Commissioner of Transportation dated February 8, 2024
KEY ISSUES:
• The City held a Public Hearing on the final layout of the I-94 Gap project at which the
Albertville City Council expressed concerns of the project.
• The City letter dated December 9, 2023 outlines the City’s concerns with the project.
• MnDOT Commissioner’s letter dated February 8, 2024 is in response to the City’s letter.
FINANCIAL CONSIDERATION: Per the Good Faith Estimate of cost, the City’s
responsibility for the I-94 Gap project will be approximately $21,450 for trail improvements, if
desired by the City.
LEGAL CONSIDERATIONS: The Mayor and City Council have the authority to approve the
municipal consent of the project.
Submitted Through: Adam Nafstad, City Administrator-PWD
Attached:
• February 8, 2024 MnDOT Letter
• Resolution No. 2024-11
Agenda Page 93
Agenda Page 94
Agenda Page 95
CITY OF ALBERTVILLE
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2024-11
RESOLUTION FOR LAYOUT APPROVAL FOR STATE PROJECT 8680-189
FOR INTERSTATE HIGHWAY 94
At a Meeting of the City Council of the City of Albertville, held on the 20th day of February,
2024, the following Resolution was offered by __________________and seconded by
________________ to wit:
WHEREAS, the Commissioner of Transportation has prepared a final layout for State
Project 8680-189 on Interstate Highway 94, from 0.4 mile west of the Junction of I-94 and TH
25 in Monticello to 0.4 mile east of CSAH 37 in Albertville within the City of Albertville for
roadway expansion and reconstruction improvements; and seeks the approval thereof, as
described in Minnesota Statutes 161.162 to 161.167; and
WHEREAS, said final layout is on file in the District 3 Minnesota Department of
Transportation office, Baxter, Minnesota, being marked as Layout No. 1B, S.P. 8680-189, from
R.P. 193+00.000 to 202+00.528; and
WHEREAS, the City of Albertville will be responsible for the construction cost to install
a multiuse trail on the east side of Labeaux Avenue running between the interstate ramps and for
future routine maintenance associated with the multiuse trail; and
WHEREAS, the City of Albertville provided comments to the Minnesota Department of
Transportation concerning the project in a letter dated December 19, 2023, and the Minnesota
Department of Transportation Commissioner responded in a letter dated February 8, 2024.
NOW, THEREFORE, BE IT RESOLVED that said final layout for the improvement of
said Interstate Highway within the corporate limits be and is hereby approved.
Upon the call of the roll the following Council Members voted in favor of the Resolution:
The following Council Members voted against its adoption:
Adopted by the City Council of the City of Albertville this 20th day of February 24.
________________________________
Jillian Hendrickson, Mayor
ATTEST:
_____________________________
Kristine A. Luedke, City Clerk
Agenda Page 96
City of Albertville, MN
Resolution No. 2024-11
Meeting of February 20, 2024
Page 2
State of Minnesota
County of Wright
City of Albertville
I do hereby certify that the foregoing Resolution is a true and correct copy of a resolution
presented to and adopted by the Council of the City of Albertville, Minnesota at a duly
authorized meeting thereof held on the 20th day of February, 2024, as shown by the minutes of
said meeting in my possession.
_______________________________ (SEAL)
Kristine A. Luedke, City Clerk
Agenda Page 97
City Administrator’s Update
February 15, 2024
GENERAL ADMINISTRATION
Fire Service Awards: The AFD has scheduled their Annual Holiday Celebration for February 17
at the Albertville Fire Hall (5 pm- Social Hour, 6 pm Dinner).
Absentee Voting: Absentee voting for the March 5 Presidential Nominating Primary (PNP)
continues through March 4. The Albertville City Hall is open 7 am to 5:30 pm Monday through
Thursday for in-person voting and will be open on Saturday, March 2 from 9 am to 3 pm. Direct
Balloting begins on Tuesday, February 20 which allows the absentee voter to place their voted
ballot directly into the ballot counter instead of a series of envelopes for later processing.
Spring Newsletter: The Spring newsletter should hit resident’s mailbox by the end of February.
City’s Domain Change: City staff is in the process of converting the City’s domain address from
ci.albertville.mn.us to .gov. Council and City staff’s new email addresses have been set up and
are running simultaneously with the previous email addresses. Staff is also working with
Granicus to update the City’s website domain. The anticipated time frame for completion of the
project is mid-March.
Code/Zoning Enforcement: The code enforcement regarding illegal land use on Potter’s
property located at the southwest corner of 60th Street NE and Mackenzie Avenue has been
turned over to the City Attorney.
Parks Committee Vacancy: The Parks Committee has a vacancy due to a recent resignation.
The vacancy has been posted on the City’s website and Facebook page.
Park Grant Application: Included on the consent agenda is a resolution for the City to apply for
a park grant through the MN DNR. Staff is working on a grant application for Central Park
improvements. The pre-grant application is due by the end of February.
MPCA MS4 Compliance Audit: We have been notified by the MPCA the City has been selected
for a routine audit. Over the next week, staff will be submitting requested MS4 documentation
for the MPCA’s review, which will be followed in-person audit interviews in mid-March.
ENGINEERING/PUBLIC WORKS
I-94 Gap Project: Consideration of municipal consent is on Tuesday’s agenda. Included in the
packet is the MnDOT’s response to the City’s concerns. For the meeting, I also anticipate on
having a letter from MnDOT regarding options for the pond property.
53rd Street and CSAH 19 Signal: With the exception of final restoration and painting, the
project is complete. Turf restoration and cross walk striping will be completed in the spring.
Agenda Page 98
City Administrator’s Update Page 2 of 2 February 15, 2024
Tree Trimming and Pond Maintenance: Public works is taking advantage of the warm weather
and has been trimming trees and performing pond and ditch maintenance.
WWTF Improvements: The project is progressing well. The building is fully enclosed and
various trades and subcontractors will be working inside throughout the winter months.
Generator Improvements: Staff is working on procurement of the two generators, as well as a
trailer mounted generator.
Lift Station Upgrades: Public Works is working on 4 lift station upgrades. Generally, upgrades
are related to control panels and electrical components. Eligible expenses can be paid with
ARPA funds otherwise are paid with enterprise capital reserves.
2024 Street Projects: We are scheduled to receive bids by late March. This year’s street
improvements will likely be separated into two projects. One project will be specific to
commercial concrete apron replacements, the other project specific to mill and overlay.
Upcoming events:
• February 17 – Albertville Fire Department Annual Retirement Celebration, 5 pm at the
Fire Hall.
Agenda Page 99