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1996-09-16 CC Agenda/Packet• • RIAMWILLE CI?? CIDUMIL 1 September 16, 1996 7:00 PH 7 : 00 PM 1. CJ" TO OPJ=/Pt= CAWAMPT AAA (Mayor/ClerX/Council) 7 : 0 2 PM 2. SPECIAL 0[O= Public Hearing - TIF #5 District Amendment * RESOLUTION #1996-47 RESOLUTION APPROVING MODIFIED DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO., 1 AND A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 5 7:15 PM 3. UWIIFISF= HOSUIESS a. Financing Options - CSAH 19/37- Intersection Realignment Project (Attorney/Financial Consultant) b. Hockey Arena - Joint Powers Agreement (STMA Hockey Association) C. North Frontage Road Sanitary Sewer Extension - Preliminary Assessment Roll Option (Engineer) d. RESOLUTION #1996-55 (RESOLUTION DECLARING COST TO BE ASSESSED, ACCEPTING PRELIMINARY ASSESSMENT ROLL AND SETTING ASSESSMENT HEARING. DATE) e. Street Lighting Standards (Engineer) f. Budget Considerations and Establishing Utilization Guidelines (City Consultants) 10 : 0 0 PM 4. ADJOUROREW (Counci 1) ALBERTVILLE CITY COUNCIL September 16, 1996 Albertville City Hall 7:00 PM PRESENT: Mayor Michael Potter, Councilmembers Curt Muyres (7:37 PM), Duane Berning (7:16 PM), John Vetsch, and Sharon Anderson, City Administrator Garrison Hale, City Engineer Peter Carlson, City Attorney Mike Couri and Financial Consultant Bob Thistle Mayor Potter called the meeting to order. Motion by Anderson, supported by Vetsch, to adopt agenda with amendment to add Item 3g - Frankfort Drainage. All voted aye. Mayor Potter opened the public hearing at 7:03 PM on the TIF District #5 amendment. There was no public comment on the amendment. Motion by Anderson, supported by Vetsch, to close the public hearing at 7:08 PM. All voted aye. Motion by Anderson, supported by Vetsch, to adopt RESOLUTION #1996-47 titled RESOLUTION APPROVING MODIFIED DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT #5. All voted aye. Mayor Potter moved to agenda Item 3c. City Engineer Carlson opened a presentation on North Frontage Road Sanitary Sewer Extension Preliminary Assessment Roll. Carlson presented two assessment options: Option #1 includes five properties for a cost of $90,205 ($18,041.10 per property); Option #2 included four properties for a cost of $58,066 ($14,516.50 per property with this option serving John Gries, Steve Birkeland and Vernon Hackenmueller. Option #1 also includes Phil Morris and a jacking cost for pipe under CSAH #37. Pete Carlson suggested notifying the property owners about the options and ask them to waive the 30 day requirement. Motion by Anderson, supported by Vetsch, to adopt RESOLUTION #1996-55 titled RESOLUTION DECLARING COST TO BE ASSESSED, ACCEPTING PRELIMIANRY ASSESSMENT ROLL AND SETTING ASSESSMENT HEARING DATE. All voted aye. Engineer Carlson discussed street lights. NSP wanted spacing and style of street lights. Presently pole and mast like Psyk's 6th Addition. Want to change to a different style. ALBERTVILLE CITY COUNCIL September 16, 1996 Page 2 of 3 Council members discussed style of street lights, spacing and costs. Carlson will bring more information to October 7f 1996, meeting. Pete Carlson discussed Frankfort Drainage and the need to consider permanent drainage easements with a permanent drainage plan. Council discussed timing. Motion by Vetsch, supported by Anderson, to authorize City Engineer to proceed with a plan for permanent drainage easements for the Frankfort/I-94 Drainage Program and acquire easements at no cost. Easements to be located on rear property lines with City Staff serving as the contact for property owners. All voted aye. Mayor Potter moved to Financing Options CSAH 19/37. City Attorney Couri introduced the "Highway 19/37 Improvement Project '1996-97 Schedule of Events'". Couri explained the schedule and what each event (step) equals. Mike Couri briefed the Council on the status of the appraisals. Financial Consultant Bob Thistle distributed "G.O. Tax Increment Bonds Highway 19 & 37 Local Project Costs Option 1-A". Based on city cash available, Thistle suggested using a five year debt schedule if the City is satisfied with the approach. interest at 4.50 to 4.75%. Councilmember Berning refreshed everyone that North Frontage Road Sanitary Sewer of $95,000 may be added to the CSAH 19 & 37 debt for a more cost effective packaging of bond sales. Attorney Couri reminded everyone that Chapter 429 developer driven projects have run three years due to turn around cycle on home sales. Councilmember Muyres favored trying to reduce total debt by using excesses from fund closings. Motion by Anderson, supported by Vetsch, to approve the CSAH 19 & 37 Intersection Realignment Appraisals of 1996 and authorize City Staff to acquire purchase options on the pro3ect. All voted aye. Mayor Potter introduced the STMA Hockey Association and opened discussion on the arena. Mr. Van Heel stated the school board is interested in the arena at up to a one-third debt service limit. ALBERTVILLE CITY COUSCIL September 16, 1996 Page 3 of 3 Arena can take 2100 hours of time sold for scheduling. Elk River is charging $40 per hour for their ice time because other fund raisings cover costs. Mayor Potter inquired of Chuch Van Heel about Barthel Property and road improvement costs. Van Heel wanted to keep costs low but he is concerned about road completion and actual costs versus proposed $45,000 included in the Pro -Forma. City Engineer Carlson stated a good per foot cost if $70 times the number of feet. Mr. Van Heel and Mayor Potter continued to discuss the need for a complete understanding of the road construction requirements and costs. Couri is uncomfortable about speed of project but believes it can be put together. Chuck Van Heel presented a resolution from I.S.D. #885. Motion by Vetsch, supported by Potter, to adopt RESOLUTION #1996-57 titled PROPOSING A JOINT POWERS AGREEMENT BETWEEN THE CITIES OF ST. MICHAEL AND ALBERTVILLE AND I.S.D. #885 FOR THE CONSTRUCTION AND OPERATION OF A QUALIFIED ICE ARENA. A1' voted aye. Mayor Potter stepped out of the meeting. Acting Mayor Berning opened discussion on Budget Considerations and Establishing Utilization Guidelines for city consultants. The consultants discussed their roles and how contract and project guidance is done. Councilmembers discussed time lines and turn around. Policy on Council projects. Councilmember Muyres wants accountability from the consultants for work requirements and dollars spent. David Licht suggested the staff meeting of SEptember 25, 1996, be used as to prepare "guidelines" for consultant work. Consensus of the Countil was to agree with the suggestion and forward results to the October 7th meeting. The Council rescheduled its joint meeting with the Planning & Zoning Commission to Monday, October 14, 1996, at 7:00 PM. Motion by Vetsch, supported by Anderson. to djourn at 10:44 PM. All voted aye. 1 Micflael Potter, Mavor arrison`�ale,/geputy Clerk ALBERTVILLE NOTICE OF PUBLIC HEARING Notice is hereby given that the Clty Council of the City of Albertville, Wright County, Minnesota, will meet In the Council Chambers of the Albertville City Hal, 5975 Main Avenue NE, Albertvft MN, the lfith day of September, 1II at 7:00 PM to conduct a public too" on a rrux1 icatfon of the Tax Increrr4j* Financing Plan (TIF Plan) for Tax lln�r� ment Financing District No. 5 (the, - District) and modification of the D"O' opment Program for Develcprnerrl Dfi- trict No. 1. The TIF District is an economic do, opment disMct created in 1989. Tf purpose of the proposed action Is modify the budget of. tax Increment, penciltcxes from that TIF District anf�. area sorelkrws referred as. 'Development. District boundaries of TIF Dh6" low. contained In draft amertdM TIF Plan and Developmentfile In CiW-VM. Any perso expres4 an ppinlon on the ma considered at the public hearHeard oragy prlt}wt Unlg n!! By order of'the. illr City of Abe". Linda Houghton r City Clerk z Published in the North Crdw News, Monday, August 26, 1996. Affidavit of Publication State of Minnesota County of Wright as County of Hennepin Don R. Larson, being duly sworn, on oath says that he is the publisher or authorized agent and em- ployee of the publisher of the newspaper known as The North Crow River News and has full knowl- edge of the facts which are stated below: (A) The newspaper has complied with all of the requirements constituting qualification as a legal newspaper, as provided by Minnesota Statute 331.02, 331 .06, and other applicable laws, as amended. (B) The printed Ci tv of Albertville -Mortification of the Tax Increment Financing Plan which is attached was cut from the columns of said newspaper, and was printed and published once each week for 1 successive weeks; it was first published on Monday/ , the 26th day of Aug , 19_6 and was thereafter printed and published on every Monday to and including the day of ,19 - : and printed below is a copy of the lower case alphabet from A to Z, both inclusive, which is hereby acknowledged as being the size and kind of type used in the composition and publication of the notice: abcdefg hij kl mno pgrstuvwxyz By: on arson Title: Publisher Subscribed and sworn to before me on this lday of ,19 4a CAROLE J. CARBON NOTARY PUBLIC - MINNESOTA Notary Public ,, My Comm. E:xp. Jan. 31, 2000 CITY OF ALBERTVILLE RESOLUTION NO. M - �7 RESOLUTION APPROVING MODIFIED DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 5 BE IT RESOLVED by the City Council ("Council") of the City of Albertville, Minnesota ("City") as follows: Section 1. Recitals. 1.01. The City has previously established its Development District No. 1 pursuant to Minn. Stat . , Section 469.124 through 469.134 ("Development District Act") and within that area has established Tax Increment Financing District ("TIF District") No. 5 pursuant to Minn. Stat., Section 469.174 through 469.179 ("TIF Act") . 1.02. The City has determined a need to modify the Development Program for the Development District, and to modify the tax increment financing plan ("TIF Plan") for TIF District No. 5, and to that end has caused to be prepared a document titled "Modified Development Program, Development District No. 1 and Modification to the Tax Increment Financing Plan, Tax Increment Financing District No. 5, City of Albertville, Minnesota," dated 1 996. 1.03. The Development Program and TIF Plan were, in accordance with the Development District Act and TIF Act, referred to the Albertville Planning Commission, which found that they conform to the general plan for the development of the City as a whole. 1.04. Estimates of the fiscal and economic implications of the TIF Plan were provided to Independent School District No. 885 and Wright County at least 30 days before the Council's public hearing on the TIF Plan. 1.05. This Council has fully eyie ed the contents of the modified Development Program and TIF Plan and on , 1996 conducted a public hearing thereon at which the views of all interested persons were heard. Section 2. Findings; Development District. 2.01. It is hereby found and determined that there is a need to modify the Development Program for the Development District by expanding the boundaries thereof, in order to improve the tax base and employment opportunities, and to provide an impetus for industrial and commercial development. 2.02. It is further specifically found and determined that: a) the land within the Development District, as expanded would not be made available for development without the public intervention and financial assistance described in the Development Program and TIF Plan; SJB107155 AL141-21 1 b) the modified Development Program will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the Development District by private enterprise; and c) the Development District and modified Development Program conform to the general plan for development of the City as set forth in the comprehensive municipal plan. Section 3. Findings; TIF District No. 5. 3.01. It is found and determined that it is necessary and desirable for the sound and orderly development of the Development District and the City as a whole, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF Act be exercised by the City to provide public financial assistance to the TIF and Development Districts. 3.02. It is further found and determined, and it is the reasoned opinion of the City, that the development proposed in the modified TIF Plan for TIF District No. 5 could not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and therefore the use of tax increment is deemed necessary. 3.03. The proposed public improvements to be financed in part through tax increment financing are necessary to permit the City to realize the full potential of the TIF and Development Districts in terms of development intensity, employment opportunities and tax base. 3.04. The Plan for TIF District No. 5 conforms to the general plan of development of the City as a whole. 3.05. The Plan for TIF District No. 5 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the TIF and Development Districts by private enterprise. 3.06. TIF District No. 5 remains an economic development district under Section 469.174, subd. 12 of the TIF Act, as determined upon creation of the District on July 17, 1989. 3.07. Reasons and facts supporting the findings herein are set forth in the TIF Plan. The City has also relied upon the reports and recommendations of its staff as well as the personal knowledge of members of the City Council in reaching its conclusions regarding TIF District No. 5. Section A. Development Program and TIF Plan Adopted; Certification; Filin 4.01. The modified Development Program and the TIF Plan are hereby approved and adopted. 4.02. The geographic boundaries of the Development District and of the TIF District are described in the Development Program and TIF Plan therefor, respectively, and are incorporated herein by reference. SJB107155 AL141-21 2 4.03. The City Administrator is authorized and directed to file a copy of the Development Program and the TIF Plan with the Minnesota Commissioner of Revenue as required by the TIF Act. �— Adopted this 'Hth day of ;�j,61�996. Mayor Attest: City Administrator SJB107155 AL141-21 3 STATE OF MINNESOTA ) COUNTY OF WRIGHT ) SS. CITY OF ALBERTVILLE ) I, the undersigned, being the duly qualified and acting City Clerk -Treasurer of the City of Albertville, Wright County, Minnesota, hereby certify that I have carefully compared the attached and foregoing Resolution Approving the Modified Development Program for Development District No. 1 and Modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 5, with the originals thereof on file in my office and the same are full, true and complete copies thereof. WITNESS My hand officially as such City Clerk -Treasurer and the corporate seal of the City this day of ( SEAL) , 1996. City Clerk -Treasurer Albertville, Minnesota 4 Approved by City Council , 1996 MODIFIED DEVELOPMENT PROGRAM DEVELOPMENT DISTRICT NO. 1 and MODIFICATION TO THE TAX INCREMENT FINANCING PLAN' TAX INCREMENT FINANCING DISTRICT NO. 5 CITY OF ALBERTVILLE, MINNESOTA July 15, 1996 This Instrument Drafted by: KENNEDY & GRAVEN, CHARTERED 470 Pillsbury Center Minneapolis, Minnesota 55402 Telephone: (612) 337-9300 SJ5107121 AL141-21 SECTION I. MODIFIED DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1. 1 .............. Subsection 1.1. Subsection 1.2. Subsection 1.3. Subsection 1.4. Subsection 1.5. Subsection 1.6. Subsection 1.7. Subsection 1.8. Subsection 1.9. Subsection 1.10. Subsection 1.11. Subsection 1.12. Subsection 1.13. Subsection 1.14. Definitions . . . . . . . . . . . . . . . . . . Statement and Finding of Public Purpose . . . . . . . Statutory Authority . . . . . . . . . . . . . . . . . . . Statement of Objectives . . . . . . . . . . . . . . . . . Estimated Public Costs and Supportive Data . . . . . Environmental Controls . . . . . . . . . . . . . . . . . Proposed Reuse of Property . . . . . . . . . . . . . . Public Improvements and Facilities to be Constructed Within Development District No. 1 . . . . Administration and Maintenance of the Development District. . . . . . . . . . . . . . . . . . . . . . . . . . Rehabilitation . . . . . . . • • • • • Relocation . . . . Open Space to be Created . . . . . . . . . . . . . . . Boundaries of the Development District . . Parcels To Be Acquired or May be Acquired In Whole or In Part Within the Development District . . . . . . SECTION II. MODIFICATFORT X INICOREMENT FINANCING DISTRICT N TO TAX INCREMENT CNO. 5 ING LAN .................................. 1 2 2 3 3 4 4 4 4 4 4 4 5 3JBI07121 AL141-21 1 SECTION I. MODIFIED DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1. Subsection 1.1. Definitions . For the purposes of the Development District Program, the following terms shall have the meanings specified below, unless the context otherwise requires: "City" means the City of Albertville, a municipal corporation under the laws of the State of Minnesota. "Comprehensive Plan" means the City's Comprehensive Plan, including the objectives, policies, standards and programs to guide public and private land use, development, redevelopment and preservation for all lands and water within the City. "City Council" or "Council" means the Albertville City Council; "City Development District Act" or "Act" means Minnesota Statutes, Sections 469.124 through 469.134, as amended. "County" means Wright County, Minnesota. "Development District" means Development District No . 1 which was initially approved by the Council in April, 1981 pursuant to and in accordance with the City Development District Act, and as it has been or may be modified. "Development District Program" or "Program" means the program for development of the District adopted by the City pursuant to the Development District Act. "Project Area" or "Project" means the property within Development District No. 1, as described in the Development Program. "State" means the State of Minnesota. "Tax Increment Financing Act" or "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.179, inclusive, as amended. "Tax Increment Bonds" means any general obligation or revenue tax increment bonds or notes issued by the City to finance the public costs associated with Development District No. 1 as stated in the Program and in the Tax Increment Financing Plans for the Tax Increment Financing Districts within Development District No. 1, or any obligations issued to refund the Tax Increment Bonds. "Tax Increment Financing District" or "TIF District" means any Tax Increment Financing District created and established pursuant to the TIF Act within Development District No. 1. "Tax Increment Financing Plan" or "Plan" means the TIF Plan adopted by the Council for any TIF District within Development District No. 1. Subsection 1.2. Statement and Finding of Public Purpose. The Council of the City determines that there is a need or development and redevelopment within the corporate limits of the City and within the Development District to provide employment opportunities, to improve the tax base and to improve the general economy of the State. It is found that the area within the District is potentially more 3JB107121 AL141-21 useful and valuable than is being realized under existing development, is less productive than is possible under this program and, therefore, is not contributing to the tax base to its full potential. Therefore, the City has determined to exercise its authority to develop a program for improving the Development District of the City to provide an impetus for private development, to maintain and increase employment, to utilize existing potential and to provide other facilities as are outlined in the Development Program adopted by the City. The Council finds that the welfare of the City as well as the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce to carry out its stated public purpose objectives. Subsection 1.3. Statutory Authority. The Council reaffirms its determination that it is desirable and in the public interest to establish, develop and administer a Development Program for the Development District in the City, pursuant to the provisions of the Act. Funding of the necessary activities and improvements in the Development District may be accomplished in whole or in part through tax increment financing in accordance with the TIF Act. The City has designated a specific area within the corporate limits of the City as Development District No. 1 as authorized by Section 469.126 of the Act, as outlined in this document. Within the Development District, the City has previously created TIF District Nos. 1, 2, 3, 4, 5 and 6. The original Development Program for Development District No. 1 was approved in April, 1981 and has been modified subsequently. On July 17, 1989, the Development Program was modified to expand the area of the Development District. That expand area has sometimes been referred to as "Modification No. 2" or "Development District No. 2." Nevertheless, the City's intent has been to consider such expanded area part of Development District No . 1. The City has now determined that, in order to address changing development needs throughout the City, it is in the public interest to expand the boundaries of Development District No. 1 to include the entire City. This modified Development Program is intended to restate and expand on the original program and all prior amendments hereto, which are incorporated herein by reference. Nothing in this modification is intended to supersede or alter the activities described in the original Development Program. Subsection 1.4 . Statement of Objectives . The Council determines that the Development District will provide the City with the ability to achieve certain public purpose goals not otherwise obtainable in the foreseeable future without City intervention in the normal development process. The public purpose goals include restore and improve the tax base and tax revenue generating capacity of the Development District; increase employment opportunities; realize comprehensive planning goals; remove blighted conditions; revitalize the property within the Development District to create an attractive, comfortable, convenient, and efficient area for industrial, commercial and related use. The City and Council seek to achieve the following Development District program objectives: SJB107121 JLL141-21 1. Promote and secure the prompt development of certain property in the Development District, which property is not now in productive use or in its highest and best use, in a manner consistent with the City's Comprehensive Plan and with the minimum adverse impact on the environment, and thereby promote and secure the development of other land in the City. 2. Promote and secure additional employment opportunities within the Development District and the City for residents of the City and the surrounding area, thereby improving living standards, reducing unemployment and the loss of skilled and unskilled labor and other human resources in the City. 3. Secure the increase of commercial/industrial property subject to taxation by the City, Independent School District No. 885, Wright County, and other taxing jurisdictions in order to better enable such entities to pay for governmental services and programs required to be provided by them. 4. Provide for the financing and construction of public improvements in and adjacent to the Development District, necessary for the orderly and beneficial development of the Development District and adjacent areas of the City. 5. Promote the concentration of commercial, office, and other appropriate development in the Development District so as to maintain the area in a manner compatible with its accessibility and prominence in the City. 6. Encourage local business expansion, improvement, and development, whenever possible. 7. Create a desirable and unique character within the Development District thorough quality land use alternatives and design quality in new and remodeled buildings. 8. Encourage and provide maximum opportunity for private redevelopment of existing areas and structures that are compatible with the Development Program. 9. Encourage redevelopment of substandard buildings, to improve employment opportunities in the Development District and the City, where compatible with other planning and development goals. Subsection 1.5. Estimated Public Costs and Supportive Data. The public costs and development plans for the Development District have been described in detail in each TIF Plan, which are incorporated herein by reference. The City now anticipates additional public costs to be financed in part with tax increments from TIF District No. 5. Estimated costs and related data for such efforts are set forth in the modification to the TIF Plan for TIF District No. 5 attached to this modified Development Program. Subsection 1.6 . Environmental Controls. The proposed development activities in the Development District do not present significant environmental concerns. All municipal actions, public improvements and private development shall be carried out in a manner consistent with existing environmental standards . Subsection 1.7. Proposed Reuse of Property. The proposals for reuse of property within the Development District are described in the documents referenced in Section 1.5 herein. The City may acquire additional parcels for redevelopment, as identified in Section 1.14 herein. SJB107121 3 AL101-21 I Unless otherwise specified, the Development Program does not contemplate the acquisition of private property until such time as a private developer presents an economically feasible program for the reuse of that property. Proposals, in order to be considered, must be within the framework of the above cited goals and objectives, and must clearly demonstrate feasibility as a public program. Prior to formal consideration of the acquisition of any property, the City Council will require a binding contract, performance bond and/or other evidence or guarantees that a supporting tax increment or other funds will be available to repay the public cost associated with the proposed acquisition. It is the intent of the City to negotiate the acquisition of property whenever necessary. Appropriate restrictions regarding the reuse and redevelopment of property shall be incorporated into any land sale contract to which the City is a part. Subsection 1.8 . Public Improvements and Facilities to be Constructed Within Development District No. 1. The public improvements and facilities to be constructed within Development District No. 1 include: (a) off -site improvements, including streets, water, sanitary sewer and storm sewer; and (b) on -site utilities, soils correction, parking and landscaping. All public improvements are more particularly described in the documents referenced in Section 1.5 herein. Subsection 1.9. Administration and Maintenance of the Development District. Maintenance and operation c the public improvements will be the responsibility of the Administrator of the City who shall serve as Administrator of the Development District. The Administrator will administer the Development District pursuant to the provisions of Section 469.131 of the Act; provided, however, that such powers may only be exercised at the direction of the Council. No action taken by the Administrator pursuant to the above -mentioned powers shall be effective without authorization by the Council. Subsection 1.10. Rehabilitation. Owners of properties within the Development District will be encouraged to rehabilitate their property to conform with the applicable state and local codes and ordinances, as well as any design standards. Owners of the properties who purchase property within the Development District from the City may be required to rehabilitate their properties as a condition of sale of land. The City will provide such rehabilitation assistance as may be available from federal, state or local sources . Subsection 1.11. Relocation. The City does not anticipate the need to relocate any residents or businesses, but if such need arises, provisions for relocation will be made in accordance with Minnesota Statutes, Section 117.50 through 117.56 and any rules adopted by the City Council. Subsection 1.12. Open Space to be Created. The City, in carrying out the objectives of the Development Program, proposes to encourage the beautification of open spaces through the development of criteria which shall be incorporated into any land sale or development agreements entered into by the City of Albertville. Subsection 1.13. Boundaries of the Develo went District. Boundaries of Development District No. 1 are mod' led to include the boundary of the City as a whole. Subsection 1.14. Parcels To Be Acquired or May be Acquired In Whole or In Part Within the Development District. The City may acquire any parcels in the TIF District or in the Development District as a whole if necessary to carry out the goals and objectives of the Development Program. SJB107121 4 AL141-21 SECTION II. MODIFICATION TO THE TIF PLAN FOR TIF DISTRICT NO. 5 Background The City Council approved the TIF Plan for TIF District No. 5 on July 17, 1989. The budget of expenditures was modified, without increasing the total authorized amount, on October 14, 1992 and June 5, 1995. The City has now determined a need to modify certain aspects of the TIF Plan in order to accomplish additional development and redevelopment goals for the expanded Development District. TIF Plan Modifications Section II. of the TIF Plan is hereby modified as follows: II. Statement of Objective In addition to previously identified objectives, the City seeks to accomplish the following objectives through this TIF Plan: 0 Facilitate improvement of Highways 37 and 19, in order to provide adequate access for commerce and industry and stimulate further economic development in the City. • Assist commercial and industrial development in order to increase tax base and employment. Section V . of the TIF Plan is hereby modified as follows: V . Financing Plan A. Estimated Public Development Cost In addition to all costs previously authorized to be financed in part from tax increments generated from TIF District No. 5, the following public costs may be incurred: County Highways 19 and 37 Improvements Site improvements in connection with commercial and industrial development in the Development District Administrative Costs, including cost of bond issuance TOTAL $400, 000 The City reserves the right to allocate expenditures among the categories listed above. Of the total amount authorized, no more than $200,000 is expected to be paid with tax increments (see Section B, below) . Total administrative expenditures will not exceed 10 percent of all tax increment expenditures authorized in this TIF Plan, as amended, or the total actually expended, whichever is less. The budget also includes capitalized interest, if needed, in connection with any bonds issued for such costs. The amount of any capitalized interest will be determined at the time of bond issuance. SJB107121 5 AL141-21 The City has determined that the highway improvements noted above are necessary in order to improve access for commercial and industrial enterprises in the City, and to stimulate further development. The improvements are not financially feasible without tax increment assistance, as the entire cost may not be assessable, and the assessment burden would be prohibitive. Similarly, the City will provide on -site assistance for particular commercial or industrial developments in situations where, but for such assistance, the developments would not be reasonably likely to occur in the foreseeable future. B . Tax Increment Bonds -- Source of Revenue In addition to all bonds previously authorized or issued in connection with TIF District No. 5, the City may issue bonds for costs identified in this TIF Plan, in a maximum principal amount of $400, 000. The City anticipates that no more than $200, 000 in principal amount of bonds will be paid by tax increments from TIF District No. 5. The balance of bonds will be paid with special assessments levied against property benefited by public improvements, and by a general City debt levy for the City's share of such improvements. J. Estimated Impact on Other Tax Jurisdictions This modification to the TIF Plan will have no adverse fiscal impact on other taxing jurisdictions. The City does not anticipate additional captured tax capacity in TIF District No. 5. Rather, the modification allows the City to use tax increment currently being generated to finance improvements that benefit the City as a whole, which will facilitate development outside the boundaries of any TIF District. As such, the modification will potentially create additional tax base immediately available to all jurisdictions. 3JB107121 6 AL141-21 154 I 1 �►. September 12, 1996 TO: City Council SUBJ: Financing Options - CSAH 19/37 Intersection Realignment Project At the time of the council packet preparation no documentation was available from Springsted Inc., or Radwill & Couri. Both consultants have worked the project financials and are trying to close in on the final amounts. The remaining large question is L & D Trucking and the Peterson property costs. The consultants anticipate having the matter in a final form for you Monday night with the areas for discussion clearly identified. Mike Couri has contacted the property appraiser for guidance and a cost for appraising the final two properties. It is hoped forward progress will be possible. Jb MEMORANDUX TO: ALBERTVILLE CITY COUNCIL FROM: MIKE COURI, CITY ATTORNEY; GARY HALE, CITY ADMINISTRATOR SUBJECT: ICE HOCKEY ARENA DATE: SEPTEMBER 9, 1996 We have reviewed the ice arena financial information from Delano, Princeton, and Elk River as provided by the Youth Hockey Association, and have also reviewed the pro -forma statements for the proposed STMA Youth Hockey ice arena. Should the City Council desire to participate in the construction and/or operation of such an ice arena, we recommend the following: 1. Any commitment by the City prior to the October 4th Mighty Ducks deadline be very general and supportive in concept only until firmer financial information is available and the structure of any joint powers organization has been agreed upon. 2. The City, St. Michael and the School District should all appoint elected representatives to meet to discuss the participation of each entity. While the Youth Hockey association has an obvious interest in the outcome, it cannot be expected to produce an agreement among the two cities and the School District without very active participation from the cities and school. 3. The City should require the Youth Hockey Association to provide the documentation necessary to evaluate the financial details of the proposal. This documentation would include an engineer's estimate of the cost of installing street/sewer/ water in Barthel's plat (Don Barthel has informed Mike Couri that one of the conditions of the land donation is that the Hockey Association finish paving 60th and Lachman Ave.), an architect's statement that the building as purchased meets applicable codes and can be constructed within the budget presented, and detail as to which groups would lease the ice arena (including hours to be leased to each group). 4. The City should require the Youth Hockey Association to provide a checklist/timetable of all items related to the ice arena, including the paperwork necessary to process the Mighty Ducks application, the start/completion dates of construction, the hiring of personnel, the entering into of ice rental contracts, etc. Timetables should be prepared for a situation where the Mighty Ducks grant is awarded with this fall's 1 application and for a scenario where the Mighty Ducks grant is awarded with next spring's application. 5. A quick analysis of the Delano, Princeton and Elk River financial statements raises several questions regarding the STMA Youth Hockey Association's projections. a. Revenues. Delano and Princeton are realizing approximately $120,000 in total ice arena rentals on what appears to be a $100 per hour rental rate. Both of these arenas have been established for several years. STMA Youth Hockey Association is projecting $138,000 in rentals based upon a $115 per hour rental rate. This projection seems high. The Elk River arena raises approximately $64,000 from ice time rentals (that figure has remained relatively constant over the last five years). Additional rental from other activities (i.e. clinics, vending, multiple uses, etc.) raised total revenues to approximately $160,000, not counting unrelated fundraisers. Again, Elk River's arena has been in existence for approximately 25 years. STMA Youth Hockey Association projects total revenue of $177,880. This does not seem realistic. b. Expenses. In 1995-1996, Princeton's arena incurred approximately $32,000 in electricity, heat, water and other utilities (Delano incurred $27,000 in similar expenses). STMA Youth Hockey Association has budgeted only $10,250 for all utilities. This seems to be about $20,000 low. C. Net Income. Given what appears to be an overestimation of revenue and an underestimation of expenses, the proposed STMA Youth Hockey Association $37,460 profit is seriously in doubt. Princeton's arena realized a $4,100 profit and Delano's arena realized a $2,000 profit on their most recent financial statements. Again, these are established arenas. It is unlikely that STMA Youth Hockey Association can realize a profit in keeping with their projection. 6. In light of the financial results of Princeton and Delano, we suggest that the Hockey Association revise their pro-formas to reflect more realistic assumptions. These revised financials can then be considered by the participating members to more accurately project the risks to the participants. 7. One alternative joint powers arrangement would be one where the cities guarantee the debt or bond, and the school district provide the land for the arena and the basic administrative/operational infrastructure (office space, phone answering, backup support for arena operations). We are 2 assuming that the school's costs in providing these items would be minimal and could be reimbursed cheaper (either as a budgeted item or through reduced rates to the school) than if the Joint Powers organization had to provide these items on its own. Donation of the land by the School District would eliminate the need for a separate parking lot and the expense of road/utility construction contemplated at the current site. 3 09-11-1996 05:31PM FROM Radzwill & Couri Law Offi TO 49732100 P.04 i officer. The initial resolution of the governing body shall refer to this subdivision as authority for the issue, state the amount of bonds to be issued an refer to the list of indebtedness to be funded or refunded. This resolution shall be published once each week for two successive weeks in a legal newspaper published in the municipality or if there be no such newspaper, in a legal newspaper published in the county seat. Such bonds may be issued without the submission of the question of their issue to thelelectors unless within ten days after the second publication of the resoliti.on a petition requesting such election signed by ten or more voters yho are taxpayers of the municipality, shall be filed with the recording officer. in event such petition is filed, no bonds shall be issued hereunder unless authorized by a majority of the electors voting on tha question. subd. 3.1 Youth ice facilities. (a) A municipality may, without regard to the election requirement under subdivision 1 or under any other prow Esion of[law or a home rule charter, issue and sell obligations to finance acquisition, inVrovement, or construction of an indoor ice arena intended to be used predominantly for youth athletic activities if the followincr conditions are met- (1) the obligations are secured by a pledge of revenues from the facility; j (2) the kacility and its financing are approved by resolutions of at least two of1the following governing bodies of (I) the city in which the facility Iodated, (fl) the school district in which the facility is loc` ated, or iii) the county in which (3) the obli tons I municipalityis the facility is located; verning body of the municipality finds, based on analysis professional experienced in finance that the facility's t er available ithout reliance on a property tax se state aid; and al 1 (4) no p�tition for an election has been timely filed under paragraph (b)- (b) At last 30 days before issuing obligations under this subdivision, the municipality must hold a public hearing on the issue. The municipality must publish or provide notice of the hearing in the same manner provided for its regular meetings. The obligations are not exempt from the election requirement under this subdivision, if: (1) regiltered voters equal to ten percent of the votes cast in the last generallelection in the municipality sign a petition requesting a vote on the issue; and (2) the petition is filed with the municipality within 20 days after the public hearing. (c) This subdivision expires December 31, 1997. (1938-6) 1127 c 131 s 4; 1949 c 682 s 8; 1951 c 422 s 4; 1955 c 298 s 1; 1969 c 446 a 1; 1971 c 886 s 1; 1971 c 903 s 3; 1973 c 123 art 5 s 7; 1974 c 380 a+8,9; 1Sp198S c 14 art 8 s 53; 1988 c 519 s 4; 1988 c 719 art 5 s 84; 19891c 329 art 13 s 20; 1990 c 480 art 9 s 22; 1991 c 342 s 16; 1995 c 2S6 si 26, 27 Sant by: ALLIED C0NPANZES^LLC 612 428 8395 09/05/96 1:48PM Job 304 paQo 3 - 6-. -' 33i -.l ���D9� _--' ._/�_.,-_-__-- -__------- / . . A 2 OPEN SKATING ��-��=`~`--'---------' ! ' - � _� 'L-'- � ---�--' '--- Sent by: ALLIED COMPANIES,LLC 612 428 8395 09/05/96 1:47PM Job 304 Page 4 - — _ B -� - D E F I G i1 OPERATING. COSTS. ........TOTALS...... STMA........................................_............................... -- 52 ............. _ 53 SALARIES & WAGES 110%.d f..92 _...................... ......................... «.. i.. 54 OTHER PAY GAME OFFICIAL! 1800 ..................._...... ..._......._....... c �... a.. 55 WAGES.'.. MAINT. 7150........................r.................. ..............._............................ ....._.....................:................. . 56 WAGES CONCESSIONS _ ............................... 4320..........38270................................................ ............ . 57 .............................. ........ „............ _..... . . 58 FICA 7.65% 0.0765i _ 3258..................... .. _.7......_- _ ...... ......... 59 MEDICARE @� 765........................«........................... ......_............. ........._ .......................................__.. 6 0 HEALTH INS. :1.5 OF 92 420.. INS............ . J... ..:... .. i.. 61 OFFICE SUPPLIES-__100€ ....... _..................: . 6 2 MATERIALS /SUPPLIES 1500 .................... 2500 6 3 ,MAINT/ REPAIRS / EQUIPT...,.... _. .._..._.+............ ..._............-..._.._......................<.......... . 64 MAINT..�..REPAIRS..�..SUPPLIES ._.......... . 7000 _............................. ..._ _.............._............... 6 5 ; CONCESSION PURCHASES 0 50% OF COST 15840; _,--....,•,.- _ ........ „................. .._ 6.6 ' AUDITING / ACCT __................. �.75 _.................... ..................... ................................. . 0 .. 6 7 TELEPHONE 1350 _. ............. .....................................................................»-........ ,=..._................. _ _................. .. 68 GENERAL LIAR. INS 6000...................... ................ -... __.............. ...._ ................ _ _. ............... .................................. ;... .. Y.. .69 UTILITIES .._........_1200 HT,GS,SWR..................... .................. . 70 ELECTRICITY 0 1000 M0-+1Goo ......... _.........7000_.................... ........ ....... :......................... �.. 71 GARBAGE COLLECTION ..............' 700...................... _.............. . .... ............ --........... ....... . .................................... . ............... _.._............. ;...._. 7 2 SALES TAX 800.[......................................_...... ... ....... .. ......... :..... ....... 7 3 MICS EXPENCE 1000 .. ...............a ....................... ................ _.. ._........:......._..._._.... . ' 2000 PLYR EQUIP 7 4 CAPITAL OUTLAY E .......... ........................... 7 S PROFESSIONAL FEES ;Future..........................I_...-..........................................I _................................................................... 76 HOCKEY SCHOOL Future _........... ..............:............._.......... ;........... . - __..................................._......_..... ...........••.......... ,......_........_...... 77 SKATE" SHARPENING ............._. Future" ...... ................. __....... _........ .. 4........._.........._...........- ;.......... ......b.... ............ 7 8 SUB TOTAL........................9.5233 ......95233 ........95233 ..... 95233...._...95233• _.... 79 ARENA PROJECT COST;•982,000.............__._....._..-........................................................................................... ..... .. .. _ _ ; 80 DOWN PYMT"S-350,000..................................... ....:.LOAN AMT; SS0000......550000......400000.-_• 650000. Prin int ` 81 !DEBT SERVICE I ........................ ............. ... 70178; 59389• .• 43187 70178 82' PRINCIPAL 0 20 YRS AMORT'15 YEAR LN.._......................... .............................. ..................... 83 INTEREST 9% 899.73 MO/100000--........__.................................;....... ..... .... ...•-----................ i...._ ...................._._........ ,...... . -8 4 1 TAXES - INF Status ................ ............._N/A.............. N/A .. .. N/ 2000 8 5 INSURANCE ..................................._.. 2000 2000 i 2000 . ....-... i__ .---:.. ...................................... . ....... ............. ...... .................... 87 SUB TOTAL .................... ............:.........._...................._..........«......... _ _............. ......................>.._... .........._......._ ; 8 8 4 ... ............................. _ _............. ..i 89 TOTAL CASH OUTFLOW 167411...•.1..56622. .140420....- 167 11 9 0 ! :. .......... ......t.......................;........... . . .....................................................s.__...................................,......... 91 ' ........ :. 92. .... .931 .................... 94 ....................... .................... ................. 95 TOTAL INCOME .. .........17. 177880...... 177880.-.".189880 96 ... ........ . 97, ....................................................... 37460 981 POSfTIVE CASH FLOW ' ................... 10469 21258 9 9 SURPLUS.... 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Van Heeec September 10, 1996 Ice Arena Board I OJ E tat C: mmil Avt. • P.O. &)x St. Michael, Mlnnesm 55: (612)497.3t Fax (612) 497.3t Attn: Chuck van Heel and Pete Scharber Dear uck and Pete: am enclosing a proposed Joint Powers Agreement. for review by the wa City Councils and the School District. Basically under this Agreement it provides as follows: The hockey arena will be owned one-third by each of St.Michael, Albertville and the School District. Each of St. Michael, Albertville and the School District will execute a Mortgage Note and Mortgage in favor of Highland Bank. Pursuant to the terms of that agreement, each will lend its full faith and credit only to the payment of one-third of the annual debt service of the loan. That total amount is expected to be approximately $45,,000.00 with each lending their full faith and credit for the payment of one-third of that amount. Each of the three entities agrees to pay one-third of any shortfall in operations. The Ice Arena Board is appointed two by each City and two by the School District. The Ice Arena Board has the right to sign a contract for the management of the arena. It is proposed initially anyway that it would be managed by St. Michael Youth Hockey Association, Inc. under the direction of the Hockey Association'a Arena Board. Part of the reason for this is that that Board is made up, at least currently, by a number of business people who have shown significant interest in the operation of the arena. Any employees at the arena would be employees of the managing entity, which initially is proposed to be the Hockey Association. There are some alternatives. For instance, one of the Cities couldl'Iown the arena and sign the Note and Mortgage to the bank and then �he other two entities could agree to reimburse it. Another, in the event School District's ownership would prohibit the use of alcoh 1 on the promises for off season events, would be for the two Citie� to each own one-half of the arena. In either event, it would appear that maybe it would be best to have the Hockey Association Board operate the Arena because of the business experience represented on that Board. ,'rankly, I think it would be a good idea for each of the Cities and the School District to meet either through its attorneys or a z! presentative to hash out any questions or terms in regard to this Toint Powers Agreement. I also think it is significant for each of the entities to know that they are going to own an arena that starting out has significant equity valued at about $600, 00.00, that is $200, 000.00 for each City. In addition, given the h story of arenas in Minnesota, as well as the projections for this arena, it does not seem likely that either of the Cities or the School District will incur any liability to pay costs toward the operation of the arena or the debt service. I am getting a copy of this Joint Powers Agreement to Mike J,enhand asking him to call me. I am also giving a copy to Dave Leash dt and Paul Ederer at the bank. I still think, even with the short I time, that this project is doable if the Cities and the SchOO4 District can overcome their concerns which to me seem minim 1. In fact, it seems that all three of them have an opportunity to do something for the youth of their communities and constltuento that involves each of them acquiring some substantial equit� in an arena with no initial outlay and no expected outlay at any future time. By the way, one issue that I would like to see resoled is how much ice time both the School District and the Hock Association are willing to commit to, at least initially. In th t regard, the Arena Board should come up with a formula for the c st of the ice time. Perhaps to give the School District and the H ckey Association some comfort in regard to their commitment it cold be said that the cost for ice time would not exceed the costrdresome formula. For instance, it would not exceed the averacost for the same ice time at certain surrounding arenas. It wod help in the application for Mighty Ducks if both the Schoo District and the Hockey Association would make a written commi Lent. Oct me know if you have any questions regarding the enclosed or an4changes. This is only a draft at this point and there is some ine tuning that will need to take place. JRG/kl s I Very truly yours, JOHN R. GRIES JOINT POWERS AORBZKZNT DRAFT I. Parties. The parties to this Joint Powers Agreement (the "Agreement") are: (a) The City of St. Michael, a Minnesota municipal corpo ation ("St. Michael"); (b) The City of Albertville, a Minnesota municipal corpo ation ("Albertville,,); and (c) Independent School District Number 281, a body corporate and politic organized pursuant to minhesota Statutes Chapter 122 (the "School District"). St. Mi0hael, Albertville and the School District may, be referred to herei individually as a "Party" or collectively as the "Parties". 2. jecitals. (a) Minnesota Statutes, Section 471.59, (the Joint veers Act) authorizes two or more governmental units to j intly or cooperatively exercise any power common to the ies to the Agreement and to establish a joint powers board to exercise powers which a joint powers agreement confers upon One or more of the Parties to the agreement may exercise e powers on behalf of the other participating governmental its. (b) Minnesota Statutes, Section 471.15 authorizes tutory cities and school districts to operate a program of lic recreation and playgrounds and to acquire, equip and ntain land, buildings or other recreational facilities; to bxpend funds for the operation of such a program; and to issue bonds pursuant to Minnesota Statutes, Chapter 475 for the purpose of carrying out such powers. (c) Minnesota Statutes, Section 471.16 authorizes 1statutory cities and school districts to cooperate among hWW*lves and with any nonprofit organization rganizatzon in any manner which they may mutually agree to conduct programs of public ecreation. (d) Minnesota Statutes, Section 471.91 authorizes tatutory cities and school districts operating a program of ublic recreation and playgrounds pursuant to Minnesota tatutes,:Section 471.15 to 471.19 to acquire or lease, equip nd maintain land, buildings, and other recreational ac;ilities, including skating rinks and arenas, together with elated automobile parking facilities; to expend funds for the eration of such programs; and to borrower and expend funds r capital costs of such programs. (e) St. Michael, Albertville and the School District are taring into this ,joint Powers Agreement to construct, erate and maintain a Qualified Ice Arena (the „Joint Ice arena") on real property legally described on the attached Eychibit A (the "Ice Arena Property") . The Ice Arena Property, e Joint Ice Arena and any other improvements constructed on e Ice Arena Property shall be referred to herein as the "Property". ( f ) Each party to this Agreement will execute a Mortgage 2 secured by a Mortgage ("Loan") on the property on which arena is to be located in the amount of Four Hundred and no/100 ($400,000.00) Dollars with Highland Bank St. Michael. Pursuant to the terms of the Mortgate Note, of the Parties will lend it full faith and credit to the of one-third of the annual debt service on the Loan. Parties will not be obligated to guaranty or lend their it faith and credit to the amount of the Loan but only to :h as to one-third of the debt service on said Loan which is estimated to be in the total amount of Forty Five Thousand and 0%100 ($45,000.00) Dollars or Fifteen Thousand and no/100 $25,000.00) Dollars each. (g) The Joint Ice Arena is to be used predominately for oUth activities; (h) Prior to the commencement of construction of the pint Ice Arena, the Ice Arena property shall be conveyed by present owner and donor of the Ice Arena property an :ivided one-third interest to each of the three Parties to z Agreement as tenants in common. Each of St. Michael, iertville and the School District shall own an undivided !-third interest subject to the terms of this Joint Powers The recitals shall be deemed a part of this Agreement. Joint Povers Bogrd. St. Michael, Albertville and the Schoo District hereby establish a Joint Powers Board (hereinafter the "$oard") to exercise all powers which are common to St. 3 i Michael, Albertville and the School District and which are necessary and appropriate for the construction, operation, use, maintenance and repair of the Joint Ice Arena including speci ically, but not limited to, the power to contract with the St. M chael Youth Hockey Association, Inc., a Minnesota nonprofit corpo ation (the "Hockey Association") for pledges of funds to assist in financing the construction of the Joint Ice Arena and/or meets g the operation and maintenance expenses of the Joint Ice Arena in exchange for the right to priority along with the Independent 'School District in the allocation of ice time. In addit on, St.. Michael, Albertville and the School District may contract with the St. Michael Youth Hockey Association, Inc. to opera tithe Joint Ice Arena under the direction of the Hockey Association's Xrena Board. Said contract shall be cancelable at the:d scretion.'of either of the Parties to this Agreement or the Hockel Association. In the event of such contract the employees of the J int Ice Arena will be employees of the Hockey Association. The J iht Powers Board shall consist of two members appointed by the'C ty of St. Michael City, two members appointed by the Alber vi+lle City and two members appointed by the:School District Board. The Board may exercise its powers by resolutions adopted by the affirmative vote of a majority of the Board members!at a public ,I meeting duly called. The St. Michael City County shall appoint St. Michael' s two representatives to the Board, the Albertville City County, shall appoint Albertville's two representatives to the Board I and the School District Board shall appoint ;the School 4 DistrlctIa two representatives to the Board. Meetings o � g f the Board shill! take place at such times and locations as tha Board determines. Board meetings shall be open to the public except when the issue or issues under consideration would authorize a city, count or a school district board to close a city council or school district board meeting to the public. Notice of the Board's shall.be given in the same manner as notice of the city council and school district board meetings. . At.._xiehaells !tights and Obliggtions. St. Michaelis and obligations shall be as follows: (a) to executed the Mortgage Note and Mortgage in favor Highland Bank in the amount of Four Hundred Thousand and 1100 ($400, 000. 00) Dollars and lend its full faith and t to the payment of one-third of the annual debt service the event of a shortfall in the operations of the Arena. (b) If, at any time, the sum of anticipated i) gross revenues from the Joint Ice Arena; and ii) amounts which the Board is entitled to receive and apply to the repayment of the bonds, under the terms of the Fund Raising Contract (both of 4hich shall be pledged to the payment of the Loan pursuant to he resolution approving the issuance of the Loan) �co:llectively, the "Pledged Revenues") are insufficient to make scheduled Loan payments, St. Michael shall pay an amount ttal to one-third of the amount necessary to pay any ieipated deficiency in the revenues available to make �chedulod payments on the Loan. Payments shall be made 5 pursuant to the procedures set forth in Section 8. (c) Pursuant to Section 8, St. Michael shall annually allocate funds to the Board in an amount sufficient to pay i ne-third of any projected shortfall in annual revenues vailable for the operation and maintenance of the Joint Ice 4rsna and shall provide in St. Michaels budgst each year for 1 of any such projected shortfall in annual revenues. 1 revenues available for the operation and maintenance of t Joint Ice Arena shall be determined after theapplication any.annual revenues which constitute Pledged Revenues to hedulied Loan payments. If necessary, St. Michael shall levy tax oil the taxable property within its boundaries, subject :any levy limit laws, to fund St. Michaelis obligation under ction. 4 (b) . (d) St. Michael shall have the right: to appoint two to the Board. Albertville's Rights and obligations. Albertville's right and obligations shall be as follows: (a) to executed the Mortgage Note and Mortgalge in favor i of Highland Bank in the amount of Four Hundred Thousand and /100 ($400,000.00) Dollars and lend its full; faith and :dit to the payment of one-third of the annual debt service the event of a shortfall in the operations of the Arena. (b) If, at any time, the sum of anticipated i) gross enues from the Joint Ice Arena; and ii) amounts which the rd is entitled to receive and apply to the repayment of the 1►440*t1. bonds under the terms of the Fund Raising Contract (both of v�hieh shall be pledged to the payment of the Loan: pursuant to the resolution approving the issuance of the Loan I ) (collectively, the "Pledged Revenues") are insufficient to "Ite scheduled Loan payments, Albertville shall pay y an amount equal to one-third of the amount necessaryo pay any iknticipated deficiency in the revenues cheduled payments available to make on the Loan. Payments shall be mad e �Ursuant to the procedures set forth in Section 8. (c) Pursuant to Section 8, Albertville sh411 annually llaaate funds to the Board in an amount sufficient to ne-third' of Pay any Projected shortfall in annual revenues lvailable,for the operation and maintenance of the Joint ens and shall Ice provide in Albertvilleisbudget each year for ne-third of any such projected shortfall in annual revenues. i �nnual revenues available for the operation and maintenance of 4e Joint Ice Arena shall be determined af ter the ,'application If'gny annual revenues which constitute Pledged 'Revenues to Ichoduled Loan payments. If necessary, Albertville shall le a tax an the taxable levy property within its boundary:, subject to any levy limit laws, to fund Albertville s obligation under ection 4(b). (d,) Albertville shall have the right to appoint tw o wo }embers; to the Board. Tbe School DistrictIs rights and obligations shall be as follows;; 7 (a) to executed the Mortgage Note and Mortgage in favor of Highland Bank in the amount of Four Hundred Thousand and i �0/100 1 ($400,00o.00) Dollars and lend its full faith and redit�to the payment of one-third of the annual debt service in the went of a shortfall in the operations of the Arena. at any time, the sum of anticipat;6d, i) gross avenues from the Joint Ice Arena; and ii) amounts which the and is entitled to receive and apply to the repayment of the nds under the terms of the Fund Raising Contract (both of hich shall be pledged to the payment of the Loan pursuant to e resolution approving the issuance of the Loan) lccllQdtively, the "Pledged Revenues" are 3nsu`fficient to �ake scheduled Loan payments, the School District shall pay an mount Je goal to one-third of the amount necessary to pay any ticipted deficiency in the revenues available to make chedulsd payments on the Loan. Paymentsshall be made Pursuant to the procedures set forth in Section g. (al) Pursuant to Section 8, the School District shall i Annually allocate funds to the Board in an amount sufficient o pay one-third of any projected shortfall in annual revenues ivaiilable for the operation and maizitenancs of the Joint Ic® �rena and shall provide in the School District's Ebudget each dear for one-third of any such projected shortfall in annual i revenues, Annual revenues available for the operation and maintenanca of the Joint Ice Arena shall be deterleined after e application of any annual revenues which constitute 8 Pledged Revenues to scheduled Loan payments. If necessary, the School District shall levy a tax on the taxable property within its boundaries, subject to any levy limit laws, to fund i Albertville'st obligation under Section 4(b). (d) The School District shall have the righ't to appoint two members to the Board. (e) The School District shall have a priority in regard �o scheduled ice time and in that regard, the School District Ohall enter into a contract with the Board to purchase a I minimum of hours of ice time for use by the 1 1chool'District during each season of operation. �. A]looetion of Revenues. The revenues from the Joint Ice Arenatjshall:be first used to fund scheduled repayment;of the Loan and secondly to fund the operation and maintenance=of the Ice Arena: If revenues from the Joint Ice Arena exceed amounts necessary to fund scheduled repayment of the Loan and the operation and maintenance of the Ice Arena, the Joint Powers Board may elect either to invest the excess revenues in one or more reserve funds established to fund future scheduled repayment of the . bonds, future operation and maintenance expenses, repair and replacement expense I or improvements to the Joint Ice Arena. 8 . Estimation and Deficiencies and• Timinc of Payment. (aY The Joint Powers Board will convene in August to prepare estimates of revenues and expenditures. ,Based upon these estimates, the Board will determine what amount, if any, Will be, necessary to cover any shortfall in revenues to pay i 9 for operations, maintenance or Loan a p yments. (b) The Board will forward this information to the Parties, and each Party will include in its budget the share of any shortfall which the Party is obligated to`.pay. (c) The Parties will provide the shortfall payments in April as they are needed. i (d) Any revenue that exists after meeting debt service and operation expenditures will be deposited into a reserve Account to meet future revenue shortfalls. q. Fiscal Year. The Board's fiscal year shall run from July to June 30 of each year. 10. WaiverPartition. The, Parties, Oach hereby i irrevocably waive any and all right to maintain ate' action for partition as to each party's undivided interest in the Property. }1.,. Sale and encumbrance. A Party may not voluntarily sell, i transfyer, lease, mortgage, encumber or otherwise dispose of any interest in the Property without the prior written consent of each other !Party. The Parties may mutually agree to sell ;or encumber the entire Property P Y or any portion thereof. at any time. provided the terms land conditions of such sale or encumbrance are bet forth in a written agreement which all Parties execute. If the Parties agree lto sell the Property or use the Property as security for a loan or other advance money, the proceeds of the sale of the Propolt y or the proceeds of the loan shall be used and applied in a manner set forth in the agreement among and between the three Parties. 10 12. Involuntary Transfers. If all or any portion of the fractional interest in the Property of any Party is transferred to a third party or comes under the ownership or control, of another party;(a "Transferee") by reason of appointment of a 'receiver for the benefit of creditors, adjudication of bankruptcy, attachment or levy �y any creditor, foreclosure, operation of law dr any other I involuntary means, the remaining Parties shall have the exclusive right ito purchase such fractional interest in the Property from the i Transferee as follows: (a) Upon the mutual agreement of the regaining iarties. and the Transferee, but if they do not `each a mutual agreement within 30 days following the exercise of the remaining Parties' rights hereunder; then (b) The purchase price to be paid by the remaining parties shall be equal to the lesser of: (i) the fair market value of the property as established by an appraisal conducted b pp y a qualified real i estate appraiser mutually selected by th� remaining i Parties and the Transferee. If the remaining Parties and i the Transferee cannot agree on an. appraiser, then the remaining Parties and the Transferee shall each appoint j one appraiser who shall have at least !five years experience as a licensed real estate apprais)er. If the two appraisers cannot agree upon the fair market value, � i they shall jointly choose a third appraia'er and the � I decision of any two of the three appraisers as to the 11 fair market value shall be binding upon the 'Parties. If no two appraisers can agree upon a fair market !value, the fair market value shall be deemed to be the average of the fair market value as determined by the three I i appraisers. The expenses of each appraisal conducted in accordance with this provision in this paragraph shall be borne equally by the Parties and the Transf�xee; or i (ii) the amount of any lien which gave 'rise to such j , involuntary transfer. The remaining Parties I right to purchase here�4nder may be exorcised within six months following the ;involuntary 1 transfer, by written notice to the Transfereo.; Under no circumstances shall any Transferee be entitled to possession of the Property or any portion thereof or to assert any claim for rent or other income. from possession or.use of the Property. 13.. 29raination. This Joint Powers Agreement shall terminate upon the sale of the Property pursuant to Section 10. the proceeds of 4 sale of the Property shall be used first to repay] or provide for .the subsequent repayment of the Loan and second jtb pay any other debts or obligations of the Joint Powers Board. Any funds remaining after the repayment or provision for the repayment of the i Loan maid payment of any and all other debts and obligations the Joint Powers Board shall be divided equally among the three Parties. If the proceeds of the sale of the Properity are not sufficient to repay the Loan and repay any and all obligations of 12 ` the Joint Powers Hoard, the Parties shall each contribute one-third of the amount necessary to repay or provide for the repayment of the Loan and pay all debts and obligations of the aoint Powers Board. This Joint Powers Agreement shall terminate at such time as the Property has been sold, the proceeds of the sale have been used to repay or provide for the repayment of the Loan and pay all debt and obligations of the Joint Powers Board and any remaining cash has been distributed equally among the three Parties to this Agreement, or the three Parties to this Agreement' have each I contributed ;one-third of the amount necessary to repay or provide for the repayment of the Loan or to pay any debts or obligations of the XOint Powers Board which were not funded from the sale proceeds. 14 If an . De t. y party defaults in the perforrmance of its obligations 'under this Agreement, the non -defaulting parties, either jointly or individually, may commence an action in Wright County Distract Court to compel the defaulting Parties specific Perk orimance of its obligations under this agreement or to recover damage. In any such action the nondefaulting Parties shall be entitled to recover its actual attorneys, fees and costs. • Efteati A Rate. This Agreement shall be effective as of the day: of , 199 �.. l'6. $ shred Besolutione, The Parties, obligations under this 4greem4int are contingent upon each of St. Michael and Albertville City Councils and the School District Board adopting resolutions approving the Joint Ice Arena and its financing and the 13 adoption of this Joint Powers Agreement on or before Ssptesbor , 1996. j CITY of aT. MICRAEL , r By: Its Mayor I By: i c ty Ad=n stratior CITY d! ALBIMTYILLs By: Its Mayor By: Ita C ty Kanaq" mmmmmlrr acKOOT, pramcT IMBZt- 201 By: } Chair By: Clark I ?J S FIFTt I AVFNtJE. P Q BOX 1717ST. CLODU MN nrt Ill,,• ' %t i 2_X) '�S.' V i/7 ' %" I t ' ,3_c) .S t H/NUJ FAX A;4C:MITECTURE ENGINEERING LNVOONMENIAL 10ANSPORTANON TO: Gary Hale City Administrator Albertville, MN FROM: Peter J. Carlson, P.E. City Engineer DATE: September 11, 1996 RE: 1996 North Frontage Road Sanitary Sewer Extension SEH No. A-ALBEV 9602.00 Enclosed is the assessment roll for the above referenced project. While the overall project costs are reasonable, the proposed assessment rate is high due to the one-sided benefit of the project- Another high cost included in the project is the jacking required at CSAH 37. 'I'his added cost is really only providing benefit to one property. This project is being driven by the failed septic system on the I lackenmueller property. An option you and the City Council may want to consider is to only extend the sewer far enough to serve the Hackenmueller property. This would eliminate the jacked pipe from the project and reduce the overall project cost. There has been discussion that the property on the east side of CSAI 137 would like sanitary sewer service in order to facilitate the construction of a restaurant. However, the property will still need water service and that presents a larger, more expensive problem which will only be resolved when there is enough demand from the property owners. If sewer service to the property east of CSAH 37 were eliminated from the project, the costs and proposed assessments would be as shown for Option 2. If this option is chosen, sewer service to this property would be available when sewer is extended to serve ether properties east of CSAH 37. One other item you and Mike Couri may want to consider to speed the process along, is to contact each of the property owners ahead of time to see if they will accept the proposed assessments. If they waive their right to a public hearing, we could eliminate 30 days from the process. dig c: Linda Houghton, City Clerk Mike Couri, City Attorney {G:W VM9602NCORR'SE-l1C'9A) SHORT FLLIOTT IENORICKSON INC.' .37 PAUL MN MINNEAPOOS,, MN CHIPPF,V-2 ! JLL Nl MAt)1.`, N. 'N; LAKE CUUNn' rP 1 13 S. FIPTM AVEN11F, PO. BOX r 717 ST CLUULl \NI �a ;' ' - % :_t' ti; ••t'd0 fKY1 ry ! 3 :' _> ! N.'W; FAX A�&AoEH ARCHITECtUAE • ENGINEERING FNVIRC?NMCNTAI TRAN5VUHIATION 1996 North Frontage Road Sanitary Sewer Extension September 11, 1996 Albertville, Minnesota SEH No. A-ALBEV 9602.00 Option 1 Project Cost Summary Item Quantity Unit Unit Price Total Mobilization 1.00 L S $1,740.00 $1, 740.00 Remove Bituminous Pavement 444.00 SQ YD $3.50 $1.554.00 Aggregate Base Placed, Class 5 461.00 CU YD $18.00 $8,298.00 Aggregate Bedding 1,225.00 CU YD $7.75 S9,493.75 Bituminous Driveway 444.00 SQ YD $16.00 $7,104.00 8" PVC Sanitary Sewer Pipe 1,576.00 LIN FT $14.00 $22,064.00 6" PVC Sanitary Sewer Pipe 130.00 LIN FT $ l 0.00 $1,300.00 Jack/Bore 16" Steel Casing Pipe 45.00 LIN FT $191.50 $8,617.50 Connect to Existing Sanitary Sewer 1.00 FACH $350.00 $350.00 Manhole 6.00 FACH $1,200.00 $7,200.00 Extra Depth Manhole 17.60 LIN FT $80.00 $1,408.00 Seeding 1.10 AC RE $1.500.00 $1,650.00 Sod 1,745.00 SQ YD $2.25 $3,926.25 Subtotal $74,705.50 Engineering $10.500.00 Financing $5,000.00 Total Estimated Project Cost $90,205.50 Assessment Rate $18,041.10 SHORT ELUOTT I-IEMOIRICKSON /HC SI PAOL. MN MMNVEAPOUS, MN CHA01 Wi FALLS W1 MACY,-WIN W1 LAKL COATY. EQUAL 0PFV nA%ATYEMPLC'rl of AdW tj 9 FIFTH AVENUE. P O 9OX 1717. Sr CLC)UO VI'J .hrf: w. 1' f 7 t." O .15.1.4 74 .w:C ? +, 720 ,'� 1•tl760 I AX AIEW AMAWASE" ARCH7LCnJRE ENGINEERING FNVIRCJNMFNr4L rliA,^r5c�nrf �rlON 1996 North Frontage Road Sanitary Sewer Extension September 11, 1996 Albertville, Minnesota SEH No. A-ALBEV 9602.00 Option Z Project Cost Summary Item Quantity Unit Unit Price Total Mobilization 1.00 LS $1,740.00 $1,740.00 Remove Bituminous Pavement m 100.00 SQ YD $3.50 $350.00 Aggregate Base Placed, Class 5 461.00 Ct1 YD $18.00 $8,298.00 Aggregate Bedding 800.00 CU YD $7.75 $6,200.00 Bituminous Driveway 100.00 SQ YD $16.00 $1,600.00 8" PVC Sanitary Sewer Pipe 1,037.00 LIN FT $14.00 $14,518,00 6" PVC Sanitary Sewer Pipe 130.00 LIN FT $10.00 $1,300.00 Connect to Existing Sanitary Sewer 1.00 EACH $350.00 $350,00 Manhole t 3.00 EACH $1,200.00 $3,600,00 Extra Depth Manhole 12.00 LTN FT $80.00 $960.00 Seeding 1.10 ACRF. $1,500.00 $1,650.00 Subtotal $40,566.00 Contingency S4,000.00 Engineering $8,500.00 Financing $5,000.00 Total Estimated Project Cost $58,066.00 Assessmcnt Rate $14,516.50 cAALMNI OX )MIC• Ie w L r4ENOMO(,SON INC :; r MAUL, MN MINNEAPOLIS. MN CHIFK'C�' 4 FALLS WI MAUI$r7N WI ,M =5EN 1139 FIFTI/AVENUE. PO SOX 1717. Sl CLODU AINNiY19 ri ri G1J;{�;: dl1O N(vrr •rFr? ,%'t7.'Gr•A71iUFAX ARCHITECTURE • ENGINEERING ENVIRONMENTAL INANSWUHIAIiON PREUNUNARY A33933MENT ROLL - OPTION 1 1996 North Frontage RAW Sanitary Sewer Extension Albertville. Wwtesots SEH No. A,ALBEV 9602.00 PARCEL ID NO. PROPERTY DESCRIPTION 101-500-364304 101-500-361401 101.500-W1403 101-600-011100 TOTAL OWNER OF RECORD John Grip Ramie & Grip 48M SWW"ida I Edina, MN W424 John Ones Rarnier 3 Grip 4t102 Surinnide Road Edina, MN 554Z4 Steve Birkelond c/o Custom spy 219 Dundas Road MondoeNo, MN 55362 Vernon 3 Agatha Hackanmueller 11177 32nd Street HE P.O. Boa 277 St MictuW MN 55376-0277 Philp a. Morris 3325 Eagle Bh>!► Road Mmnekwks, MN 55364 09/11 /96 ASSESSMENT RATES Total Project Cost $90,205.50 Cost Par Lot $18,041.10 Number of Lots 5 TOTAL ASSESSMENT $18,041.10 $18,041.10 $18,041.10 sla,041.10 $18,041.10 $90,205.50 /},fIjtt4 09/11/96 MENDWICKSON INC S I ►'AUL. MN MINNEAPOL IS, MN CHIPPFWA FAI L S, WI Pmj��= 1 MADISUN WI I AKF -Awry' IN Q1,1�1S;10T P Page 4/5 goo CISO Sep-11 wea 14.U6 -toon rr3SFIFrMAVENUE. PGtSOX rlr7,ST.CLOUOM"C'JO'i.'r73:XJ1•ti7.47.10 Crr,:�'xr� :ANW(xrA%rta ARCH! ! EC T1 IRE ENC31NFERlNG FNV1HQNMFNTAL TRAN if'ORTATlUN PRELIMINARY ASSESSMENT ROLL - OPTION 2 1996 North From Road Sanitary Sewer Erinsion Albertvilla, MinMSOta SEH No. A-ALBEV 9602.00 PARCEL IC NO. PROPERTY DESCRIPTION -- O*NM OF FtECORD 101-500.3843N John Oriel RarniK & G006 4M Sww"We Rood Edina. MH 55424 101.500.361401 John Gries Rsmler & Ories 4= Sunnyeide Road 101-500-384401 Sbsve Okkoland do Cudom Canopy 219 Dundee Road Moroxwo, MN MW VenM A �e H�n^'ueller 101-500 1 11177 32nd SM)at NE P.O. Box 277 St Michael, MN 5537"277 TOTAL 02/11/96 ASSESSMENT RATES Total Project Cost $58.066.00 Cost Per Lot $14,516.50 Number of Lots 4 TOTAL ASSESSMENT $14,516 50 $14.516.60 $14,516.50 $14,516.50 $58,066.00 Cr.�/t t/N ! At a wr ,�rnuaa�nt w r n+ AV 4ou CITY OF ALBERTVILLE RESOLUTION #1996- RESOLUTION DECLARING COST TO BE ASSESSED, ACCEPTING PRELIMINARY ASSESSMENT ROLL AND SETTING ASSESSMENT HEARING DATE WHEREAS, a contract has been contingently awarded and costs have been determined for the installation of a sanitary sewer trunk main and the estimated construction costs for such improvements amount to $74, 705. 50 and the expenses incurred or to be incurred in the making of such improvements amount to $ for a total cost of the improvement of $ NOW THEREFORE, BE IT RESOLVED BY CITY COUNCIL OF THE CITY OF ALBERTVILLE, MINNESOTA: 1. The portion of the cost of such improvement to be paid by the City is hereby declared to be $0.00 and the portion of the cost to be assessed against benefited property owners is declared to be 100%, or $ 2. The proposed assessment roll (attached as Exhibit A) as prepared by the City Clerk, shall be considered at the assessment hearing and shall be filed in the Clerk's office for public inspection. The proposed interest rate shall be % and the proposed assessment time period shall be years. 3. A hearing shall be held on the day of 1996, in the Albertville City Hall at p.m. to pass upon such proposed assessment and at such time and place all persons owning property affected by such improvement will be given an opportunity to be heard with reference to such assessment. 4. The City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing, and she shall state in the notice the total cost of the improvement. She shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. Adopted by the Albertville City Council this 16th day of September, 1996. Michael Potter, Mayor ATTEST: Linda Houghton, City Clerk 3f September 9, 1996 TO: City Council FROM: September 3, 1996 Council Meeting SUBJ: Budget Considerations The City Council will meet with the Contracted City Consultants for: Planning, Engineering and Legal Services. Purpose is to explore the status of projects and ideas for outstanding items work in progress, current work in progress and items for the future. A look at how to control costs and yet provide services in an efficient manner. It would be a goal of the group to prepare a list of guidelines that the Council, City Employess and Consultants could use to insure that the work gets done and work that is not approved does not get done. In short, a guide to keep city business on the move with approvals and accountability that keeps everyone on target financially and working on council approved projects. Please be prepared to discuss this matter as a group and think about how we do business and what we should keep and should be changed. Everything is fair game.