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;
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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.
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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
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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
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3
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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:
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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.
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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.
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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
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- — _ 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.... DEBT.•SERV _REQDlo•.12596.-•"•.............................-0,25 ." 17545,-14847,25.10796,75 .1.7544;5•
10 MIGHTY DUCKS REQUIRED to be OK 115 PER HR 's SHORT "OK""OK"
l.__a_-_H _ _-_._.._.._ -
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0 4,xwry ). 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.