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1999-10-04 CC Packetc T ALBERTVILLE CITY COUNCIL AGENDA October 4, 1999 7:00 PM 1. CALL TO ORDER — ROLL CALL — ADOPT AGENDA 2. MINUTES • September 20, 1999, regular City Council Meeting 3 3. CITIZEN FORUM - (io Minute Limit) 4. CONSENT AGENDA (a) Approval of Check #'s 12219 -12251 (b) WWTF Monthly Operations Report 3 5. PUBLIC HEARING- Business Subsidy • Resolution # 1999-45 (Business Subsidy Policy) 6. DEPARTMENT BUSINESS a.VoW �� 3 (1) Report (2) Forestry Program - Joan Spence b. Engineering (1) 63`d Street Storm Sewer " (2) Project Updates c. Legal 3 (1) Land of Lakes TIF Agreement f (2) Closed Session (Attorney -Client Privilege) - Savitski Assessment Appeal d. Administration'f` (1) Water/Wastewater Operator position - Schedule interviews with applicants ,3 (2) Committee Report - Otsego/Albertville joint issues .7 (3 Discussion on supporting City of St. Michael's bond issue for JPWB - dBm Asleson, Juran & Moody (4) Request from Pilot Land Development Company to designate a representative to work with Wright County Highway Department regarding a trail along County Road 18 F z4 fi% 7. ADJOURNMENT (ow i ALBERTVILLE CITY COUNCIL September 20, 1999 Albertville City Hall 7.00 PM PRESENT: Mayor John Olson, Councilmembers Robert Gundersen, Patti Stalberger, Duane Berning and John Vetsch, City Administrator -Clerk Linda Goeb, City Attorney Mike Couri and City Engineer Peter Carlson Mayor Olson called the regular meeting of the Albertville City Council to order. The agenda was amended as follows: • Delete Items 5b(3) and 5b(4) • Add Item 4d(3) - Fire and Rescue Truck • Add Item 4d(4) - Discuss shared parking lot for park and ice arena Stalberger made a motion to approve the agenda as amended. Gundersen seconded the motion. All voted aye. Stalberger made a motion to approve the minutes of the September 20, 1999, meeting. Berning seconded the motion. All voted aye. No one was present to address the Council under the Citizen Forum portion of the agenda. Gundersen made a motion to approve payment of Check No.'s 12174 - 12204 as presented. Vetsch seconded the motion. All voted aye. Gundersen made a motion to approve the Financial Statement for August 1999 as presented. Vetsch seconded the motion. All voted aye. The Council discussed the two option presented by the. Public Works Department for storage of the City's pickups and snow plow until the Fire Department moves to the new site. One option is to rent a heated garage from Don's Bus Company for $200 per month to store the two pickups and the snowplow. Another option it o have the Public Works personnel take the pickups home overnight and to squeeze the snowplow into the maintenance building. The consensus of the Council is to park the pickups in the City Hall parking lot until the Fire Department moves,to, its new location. Gundersen made a motion authorizing the Public Works to spend up to $1200 for grass and erosion blanketing to seed the ditch along Barthel Industrial Drive. Stalberger seconded the motion. All voted aye. L ALBERTVILLE CITY COUNCIL September 20, 1999 Page 2 of 3 Stalberger made a motion to accept the Public Works Department Report as presented. Gundersen seconded the motion. All voted aye. City Engineer Pete Carlson explained that the Oakside tennis courts surfacing has been damaged. He met with the contractor to make him aware of the situation and they are in the process of determining how best to correct the problem. Carlson reported there will be a cost overrun on the Oakside Park tennis court bids. He explained that the select granular borrow used for the tennis courts will exceed the bid quantity by approximately 30%. Granular borrow is typically bid as wither a placed volume or as a loose volume. The bid proposal was set up as loose volume, but the bid quantity of 1400 cubic yards was computed as a placed volume. If the bid was set up as a placed volume, the contractor would have bid a higher unit price. Carlson presented a proposal for analyzing the benefit of a full diamond interchange for I-94 at Wright County Highway 19. The study will look at the benefit of adding the eastbound entrance ramp and the westbound exit ramp. The work plan will consist of reviewing prior traffic studies and evaluating the current and year 2000 peak hour traffic patterns. The study could be completed within three weeks at a cost of $3,000. Berning made a motion to proceed with the study analyzing the need for a full diamond interchange at a cost of $3,000. Gundersen seconded the motion. All voted aye. Carlson presented an estimate on the cost of paving the driveway and parking area at the wastewater treatment plant of $29,000, or $17.35 square yard. The Council agreed to include the paving project as a part of the total bid for the wastewater plant expansion. Carlson updated the Council on the progress of various city projects. City Administrator Goeb explained that the City's current firearms, ordinance allows hunting on properties within the city limits that are west of County Road 19 and north of County Road 37. She recommended that Council update the ordinance by prohibiting hunting and the discharge of firearms totally within the corporate limits. ALBERTVILLE CITY COUNCIL September 20,1999 Page 3 of 3 Gundersen made a motion to adopt ORDINANCE #1999-6 titled AN ORDINANCE AMENDING ORDINANCE NO. 1982-1. Stalberger seconded the motion. All voted aye. The Council discussed the proposed water treatment plant and the rate structure needed to finance the treatment plant. The Council believes that the connection fees should be increased to help pay for the plant. The City's two representative will present the city's concerns at the next Joint Powers Board meeting. The administrator will check with the Fire Chief to see if he has located a city who needs the fire/rescue truck. If not, an ad will be placed in the LMC Bulletin. At this time, the city has no definite plans for the construction of a parking lot at the northwest end of the new City Park land that could be shared by the ice arena. The Ice Arena Board will be advised by the city representatives that the parking lot will not be constructed at this time. Gundersen made a motion to adjourn at 8:30 PM. Stalberger seconded the motion. All voted aye. John A. Olson, Mayor Linda Goeb, City Administrator 4 11 CLAIMS FOR PAYMENT October 4,1999 Check N Vendor 12219 Action Radio 12220 AirTouch Cellular 12221 Brock White Company 12222 Buffalo Bituminous 12223 Couri & MacArthur 12224 Delta Dental 12225 Diversified Inspections 12226 ECM Publishers 12227 Fehn Excavating 12228 Goeb, Linda 12229 Harvest Printing 12230 HealthEast Med Home 12231 LMC 12232 Medica 12233 Miller, Bridget 12234 Minnegasco 12235 MN Dept. of Revenue 12236 NCPERS 12237 Newman Traffic Signs 12238 Northern Tool & Equipment 12239 PERA 12240 Printing Systems 12241 PSG 12242 Randy Kramer Excavating 12243 Scherber &Sons 12244 Security State Bank of ML 12245 S.E.H. 12246 Sprint 12247 Sprint-LITS Purpose Repairs pager/Cases FD Cell Phones Erosion Blanket Paymeny #2 - Street Overlay Legal Services Group Insurance Building inspections Water/Wastewater Operator Ad Payment #5 - 57th Street Mileage Fire Dept. Supplies B & F Regulator Membership Dues Group Insurance Reimbursement for Supplies Monthly Service September State Taxes Payroll Deduction - Linda Replacement signs PW Supplies Pay Period 9/11- 9/24 A/P Checks Water/Wastewater Operations Payment #2 - 62nd Street Salt Shed Blueprints September Federal Taxes WWTF Expansion Long Distance Calls Monthly Service Amount 127.47 19.62 975.54 5,656.49 3,835.60 170.40 6,578.40 432.00 279,579.66 35.38 44.73 255.44 1,976.00 2,115.40 13.29 38.23 462.00 12.00 213.06 37.25 517.42 730.02 41,358.23 129,190.32 452.00 4,053.81 26,470.00 53.37 329.02 CLAIMS FOR PAYMENT October 4,1999 12248 U.S. Bank Return of Tax Increment - TIF #7 $ 2,994.42 12249 Wright County Recorder Vacation Document $ 29.50 12250 Wright.County Treasurer 2nd Half Taxes/Assessments $ 4,129.79 12251 Wright -Hennepin Cooperative Greenhaven Street Lights $ 23.54 Total $ 511,909.40 T 6 Albertville Wastewater Treatment Facility )Oow P G aqua ALUANa Monthly Operations Report August 1999 3 Submitted by: Kelly BnAwning Project Manager Date: utive Sumdary Albertville met all of its NPDES permit req for the month OfAugust. Influent now ava4pd 0.256 millionPUMpa day, Biochmical WWVn did in the CMuent was 3.9 mgA and total 10 fended 0no1. was 20 n1911 Total Phosphorow in the doom averaged 0.5 n*q and focal colifcrm was pump failed and isPbnd 03 has been pcogtesaiag,mdil recently. As of the writing of this report, the 6 some MAJor repairs. A portable pump was retitled and tried, but dace not have enough tY to melee a OPMCM dffereaoe in the levels over time. As theca are no bW VMp far nett, we will be VVOdoPg with Noon tea schedule IL to pump pond #3 as sooti as that' one aerator can irm an tun on Pond #1 for mat c ntroL Still monitoring Pond #2 weddy, she bypassing Pond M. Received new alum ftment Alum usage a bqOw due to increased pbospborow levels leaving Pb nd #2. Continuing to use degreasa on DJ's lift station. m Cable with kwm maintenance and weed control on flaw dOw Completed monthly preventative maintenance work ordem Chanpoed mower blades and dwipened old ones. UV control panel hikd. Wire running in conduit to control bur'lchng shorted. Ran new wire. Control panel blur from this short and was not reepwable, thwelbre replaced. Chwiped dwphmgm in alum feed pump. Cleared grease and debris off main lift station floats. Replaced suction line on alum food pump. Cleaned UV system. Removed back-up battery at DJ's lift station and replaced. Peftmcd monthly safety mating, Project vehicle received some: recall repairs to i9mition switch and cMW control. Also hard-vnzed Sash bar to a penny switcda. r U--06 and Pin Wt ROVJM COWWd Spw gtoy ProW ► NPDES DWcbwp b§mdlwivg Rcpm OWNS I .P Misr caommnoicatiaea baweaa PSG said City staff all activity m do budget year. Tire 8n3a1 repot doss nt re m Angag bills paid in Sepumber. PbudOWwvsdwReport MAR A+ddmdmm's Lo"Wsmumy CHent SW= Report �r r}(} i d • � . f4-s 4 �Y J• � 3 Y -�Y y 1� -� 1 'r1;�' a f". 9/74910:29:13 AM Merl Dischow Mon wbV Ropwt t AN ~F W SHA9 TO 8031/99 Da s Inf Flow ( low Tang Ho Tyr � Rafohm INF PH � Eff Flow EA PH Eff Too ' _ MOD Dog F E D� F i Inch su MGD SU } Doi$+ 08101189 0.256 52 N 0.00 0.240 O02199 0.236 60 88 0.00 0204 O6f03199 0.237 54 88 0.03 0.209 09104199 0.227 54 90 0.00 8.04 0.190 7.01 23.7 08>05199 02M 60 92 0.00 0.200 0846419 02U 60 97 0.02 0.201 08107m 0.222 47 94 0.02 0.203 08A8199 0.169 58 92 0.50 0.154 019 0.241 58 92 OAS 0.212 09110/9 0.232 58 90 0.00 0.177 08J111se 0.247 64 92 0.03 0.214 0811299 0.242 56 74 0.18 0.201 08M 3199 0.199 50 80 0.00 0.189 08N4199 0217 58 80 0.00 0.214 08115419 0.242 62 82 0.05 0.196 Mom 0250 58 es 0.00 0.190 08/17/99 0.246 62 90 0.06 0.191 08/18188 0254 58 78 0.10 7.76 0203 6.70 21.4 Den9m 0250 54 78 0.00 0.202 08f M 0230 62 88 0.00 0210 08/21199 0.347 60 76 420 0254 0.510 62 92 0.00 0.481 08123M9 0.361 56 Be 0.00 0.407 MUM O.m 58 80 0.00 0.394 0235 60 90 0.00 0.339 08126199 0298 64 N 0.00 0.406 OW27199 0.196 64 99 0.00 0.299 08128189 0.240 52 92 0.00 0.343 MOM 0251 82 74 0.00 0.313 08/30m 02$3 54 66 0.86 0.319 0041/99 0278 62 76 0.00 0.312 AvwW 0.256 58 85 OZO 7.90 0254 8.99 22.6 TotW 7.836 1801 Z621 6.09 15.80 7.870 13.77 45.1 lure 0.169 47 68 0.00 7.76 0.154 6.76 21 A Mmdnwm 0.510 64 98 420 9.04 0.491 7.01 23.7 9/71991029:14 AM Mm" Dbdwgo Moue ft Report Ab�rNio WIMTF Pam 2 Ode EA 00 ER Focal ; IM WO Int TS3 I !MWrA7- EN8OO Ld I EM TS3 EN T33 Ld mgA IVod100rn1 I Mtr?iL I MOIL I j Ic41d triG/i._ 09A011� 09102099 08A3199 08�04199 6.00 09108r99 10 160.0 204 5.3 5.0 24.0 18.7 08107A19 Oslo$ 99 09/10l89 08/111M OW12l99 OGn?!88 08114AS Oe115A$ 06MG49 06N7AW O9Jt8198 5.50 MOM OerA 89 10 135.0 600 2.5 2.3 16.0 12.2 OWI/99 08/Z2199 MAW 0&24AO O825ft 09/26199 08/27199 08128t99 OB1 "O 0800199 08131199 kyer"O 5.33 10 147.5 402 3.9 3.7 20.0 15 5 Totd 10.66 20 295.0 804 7.8 7.3 40.0 30.9 5.09 10 136.0 204 2.5 2.3 16.0 122 U+ odmurn 5.69 10 180.0 600 5.3 6.0 24.0 18.7 9/7M 10:29:14 AM Mw" Ohdwgo MWOW" Report AIbwbds WVVTF 81U99 TO 8031AS 0: Etf Toe. P Eff P Ld i T33 Run 800 Ran AG& I kdd I % % I 08A1/99 OSAM 9 08/03099 091"m OSAM g 0.6 0.5 90.3 98.7 OMMS O9xw 9 06109/68 08N0199 08111J99 06112ON OSM 3199 OW14199 Oam s" MOM OSA 7/99 MOM Owle" OW2049 0.3 0.3 97.8 982 OW21M OW22199 0943/99 O MAW 061Z6199 0812TA9 OW29189 MAW 030199 0WIM Avg 0.5 OA 941 97A ToW 0.9 0.7 1892 194.9 mb*m n 0.3 0.3 90.3 96.7 MadmuM 0.0 Os 97.9 992 WM9 t0:2914 AM PoW ObsavWon Report AlbsrtA* WWTF P004 SMA9 TO 8/31AN P/ Odors ' 1 /� Pt AqPI %eovwaps PI Mats P1 040 Pt Rodsrns P1 O* Co ; Pt Ics Cow P1 Ana % Ft Ives/2no i•8( %Coverage acres 08ii 1/89 Z � 0 0 0.30 2 S 0 8 2 0 0 0.30 2 5 0 0 0 8.90 2 6.62 2 6 Average2 2 0 0 0.30 2 S 0 S 0 8 4 WAIS 10:29:14 AM Ports Ob wA don Report AbortAD WYIRF NO: P2 Odes I P2 Aq Pt i P2 Mots P2 Ooptlr i P2 Rodonls ; P2 Me Co p2 Ana + P2 k. Cov , i J / 2no I % eowrtgP i % eewnao I Ft I 1y" / 2no i 1.5 ( j % c—&m � i t �I04196 MISS 2 2 0 0 0 0 6.26 2 5 0 6 mime 2 0 0 6.29 2 628 2OOMM 5 0 6 2 0 0 6.43 2 5 g 0 0 6 6 2 0 0 6.32 2 g 0 6 AV WA810:28:18 AAA Pond Obs rnBon Report Albs ~F Pfte TO Inim 1 ode8/1A8 P3 Ochs 1 /2no ` P3 Aq PI P3 AAa1s P3 DoOP3 Rodones ' P3 OCo Na f P3 te* Cov p3 Aha ' 2 %e 0 % 0 A 1 l2no 1-S % goverew aces 0V11A8 2 0 0 5.82 2 S 0 8 08fl8/88 2 0 0 5.78 2 S 0 8 08aft 2 0 0 5.T0 y 0.00 2 S 0 g Awns 2 0 0 5.93 2 S 0 8 S 0 6 s,� ALE WWTF LOADINGS Cw*sd v b n a Tdppets: CWMW Vokm 3 Tdgp M Aw► 0.1580 MOD / 307 ' MW *.in@ MGD HW 368' 1870 Law OA284 MGD Lew- 240 0 224 • 150 0 0.3150 MGO 368 0 308 8 FLOW 12 no MOO AV& % e1 adp TSS 12 mo % o/ CeOD % a -.....,.................................�,.......,�,,,, MW ....., ......................... LbL gyp. p, mgA LbE Avg DINO 1906 Jon 0.151 8 Feb 0.143 285 339 364 240 302 mw 0.164 8 184 219 Apt Min99 145 191 201 Mr/ OA72 274 302 92 136 Jun 0.163 232 315 148 212 JW 0.152 222 201 133 151 Aug 0.174 286 418 154 195 sop 0.165 234 322 136 197 Od 0.161 294 395 100 138 Nov 0.163 78 106 122 164 Doc 0.156 405 , 68 92 lowJen Feb 0.181 0.1828 0.158 0.108 $JAI% am% 250 MG 331 89.93% 1 235 Mot 0.179 0.156/ 82.41% 433 312 571 400 350 350 95.18% 178 235 198 53.21% Apt 0.188 0.1860 SL70% 336 527 388 90.79% 105.13% 221 330 202 "78% Mr/ Jun" 0.198 0.1082 M1715 53.39% 54a4% 388 60 409 111.05% 131 205 279 207 213 58.W% $7.87% Jul 0.161 M1723 54A6% 364 248 599 333 432 117.48% 151 25g gyp, , % Aug 0.141 0.1896 53.81% 5" 656 437 456 118A6% 124A4% 179 79 173 218 �P 0.141 0.1675 $317% 025 735 491 133.40% 2100 '59M% Od Nov 0.163 Qtdn 0.250 0.1749 am% 55.53% 274 372 489 132A9% 145 1'14 171 198 � 224 80.1i% SOAK% Oso O.l71 0.1782 55 93% 244 432 NO 523 541 14'01% 140.08% 141 294 241 65.40% 1997 Jen 0.179 0.1777 56.40% 8� 60 541 147.08% 323 46t 254 68.94% Feb Met OAW 0.1790 0.198 0.1813 67A8% $7.57% 225 343 522 141A2% 180 148 289 228 250 256 69.70% 69A0% Apt 0.162 0.1792 SL88% 309 338 510 322 528 14LM 176 291 252 68.6t% Mr/ 0.074 0.1688 53AQ% 190 509 472 13827% 128 27% 129 174 250 6781% June 0.137 &1833 StAS% 44 44 2 279 445 121.01% 160 139 99 235 63=% 159 227 61.63% Oct Now 0.193 0.1659 0.182 0.1603 52670A 5oA7% K02 488 316 107.71% 152 14T 221 80.12% Doc 0.178 0.1806 51.09% 395 382 600 567 404 109.77% 245 148 209 56.81 % 19e Jen 0.185 0.185 0.1813 5122% $1.22% 500 910 414 437 112.63% 118.64% 193 149 183 49.75% Feb 0.1613 �4 874 481 130.65% 306 150 173 47.07% Mr 0.235 0.1658 5265% 391 708 497 130.12% 134 237 151 167 45.37% Apr Mey OMO 0.1739 0.196 0.1841 55.21% SL44% 301 650 525 14258% 259 152 153 155 154 42.23% 41.75% Jens 0220 Q79t0 6063% 002 27O 994 405 590 M 160.36% 318 154 158 43 00% Juy 0.202 0.1955 8208% 178 300 ON 165.25% 162.54% 250 155 158 42Ai% Aug 0 225 0 20t9 8410% 431 800 6" 174.17% 114 372 158 152 41.30% Sq* Oct83 d 0.221 0.2080 0.213 0 2098 SM03% 86At% 378 607 673 182.98% 157 158 152 153 41.17% 41.44% Now 0.228 02137 67.83% 276 248 495 472 674 663 183.10% 155 159 154 41.71% Doe 0.206 0.21ao OL570A 497 $54 8a7 180.=% 188.76% 178 180 155 41.98% 990 1Jon 0.20 0.2188 69.38% 380 685 ON 181.64% 147 120 161 �0167 isa 42Z8% Feb Liar540 0.220 0 2203 0.224 0.2193 MA2% 69.63% 901 678 184.29% 220 162 163 158 42.53% 42.80% Apt 0.249 0.2185 69.37% 340 456 ON 947 972 697 182.85% 236 164 159 4 3i.07% Mr/ 0.202 0.2257 71.64% 478 1.124 700 1S9.37% 192.54% 262 165 180 43.34% Jun 0.265 0.2294 72A3% 304 972 723 196.34% 314 252 166 161 43.61% Jul Aug 0.235 0.2322 0.256 0.2348 73.70% 74.52% 232 494 730 200.93% 198 197 168 102 163 43.89% 44.16% 402 ON 744 20208% 140 169 164 44.43% bMusnt 80w eertwed fills 10 nnu old for opb menl. • AEGIS PIMPS; PAGI I PIO19SSIOIAL SERVICES GROUP, INC. DATE 0 9108/9, 9/519, NONTILY CLIENT REPORT TIME TI1010I PERIOD l0-99, ENDING 08/27/9F PROJECT NGt: ([L®( [ELLY BRO/lltNt• Contrut: C9241 ALIE1?VtLLE fi DISTRICT MGR: NNB PEG HECtER :tart Date: 01/01199 god Date: 12/31/99 REGIONAL NOR: PIO19CT 161: TAC BILL COLEMAN XLB 99LLY BRONNING "OTAL IUD09T :::2::: CURRENT PE1I0D ACTUAL BUDGETED ==::::: 7AIIANCE :::::: ACTUAL PROJECT TO BUDGETED DATE nuzz: VARIANCE labor and Benefits 3A,246 3,320 2,3i3 (9671 24,903 19,127 (i ,076) .teetricity Otter Utilities 11,683 21190 l,iOS G 1935 770) 8,153 7,980 (173) ►:4eoicats 12,414 11578 0 632 0 (946) 1,032 81917 1,206 81665 167 (252) NAintenancs and Repair# Egoimett tental 328 9 69 iA 947 S52 (393) Outside Services 11011 61103 S6 681 34 $19 31 (161j 338 3,376 072 4,090 1U 713 Travel and Neais All Otter 744 0 62 62 332 496 163 Allocation and Scope Adjot heats 51920 11195 1129S 78 493 100 (302) 21 5,098 3,944 (1,154i Overhead 0 0 0 2361' 800 (1,361) 0 0, 0 0 TOTAL WE= COST 72,334 8,S24 5,047 (3,477) 55,661 48,226 (7,43$j DAB PEE 21,$40 1,79S 1,79S 0 14,360 14,360 0 TOTAL CONTRACT 93,374 11,319 6,842 (3,477) 70,021 62486 (7,435) • AEGIS 0110911SG PAGE 2 PROFESSIONAL SERVICES GROUP, INC. DATE 09/OdJlk NONTNLT CLIENT REPORT TINE 7:32AM TBROUGN FIRM10.99, ENDING 08/27/94 PROJECT NOR: (KLB) KELLY BROWNING Contract: C92411 ALBERTVILLB WATER RAR DISTRICT NGt: RD PEG DECKER Start Date: 06/01/99 End Date: 12/31/99 REGIONAL MGR: WAS PROJECT NGR: KLB BILL COLENAN 99LLY BROWNING TOTAL ::::::: CURRENT PERIOD ss::::: :. PROJECT TO DATE zsssass BUDGET ACTUAL BUDGETED VARIANCE ACTUAL BUDGETED VARIANCE Maintenance and Repairs 3.erheaa 11,Od3 0 1,583 1,583 4 4,749 4,144 ,3 0 0 } 0 0 0 TOTAL DIRECT COST 11,083 0 1,Sd3 I,S83 4 4,349 4,744 BASE FBI 0 0 0 0 g 0 0 TOTAL CONTRACT 11,083 0 11583 I'm 4 4,749 4,744 �EGIJ fCR109psG a PAGE 3 PIOF938101AL SERVICES GROUP, INC. M 0 N DATE 09/08/99 T N L Y CLIENT REP 0 R T tNROUGN lBRIOD 10-99, ENO[AG 48/27/99 TINE 7;57 � PROJECT Vol: (tLB1 RELY HRONNI� Coatraet: C9141R ALB$RTVILtE IN R!R DISTRICT NOR: NNH PEG DECKER Start Date: 01/01/99 old Date: 12/31/99 REGIONAL NOR: NAC BILL COLEMAN TOTAL ::::::: CURRENT PERIOD :::::- PROJECT NOR: [LB KELLY BRONIIING ::s : PROJECT TO DATE :asses BUDGET ACTUAL BUDGETED VARIANCE ACTUAL BUDGETED VARIANCE Naiateaaace.sad Repairs Onside services 4.020 183 33S iii S,011 1,680 12,392) Overhead .y ? 375 0 (37SI 0 0 TOTALMUCT COST 4,020 183 333 151 S,447 2,630 (1,167i BASE EBE 0 4 0 0 0 0 0 TOTAL CONTRACT 4,020 133 33S 131 5,447 11680 (2,7671 ` AEGIrs iC1109PSG PAGE PROFESSIONAL SERVICES GROUP, INC. DATE09l08/'g 4 101TILI CLIENT REPORT TINE 1 :57 VI TNROU�t PERIOD 10.99, ENDII'Ni 08l21/99 PROJECT NOR: (1LIJ 19LLT DRINKING Contract: C92419 ALIERTYILLE 1ATE1 DISTRICT NOR: ANN PEG DEER Start Date: 06/01/99 gad Date: 12/31/99 REGIONAL MR: VAC PROJECT 101:41,1 1ILL COLENAN KELLT 1101/111 TOTAL :ass:: CURRENT PERIOD :za::: za:::r PROJECT TO DATE a:zzzs BUDGET ACTUAL BUDGETED VARIANCE ACTUAL BUDGETED VARIANCE Labor sad leeefits E4'iplat Rental 21,178 11113 21823 11051 21312 3,473 6 162 13 Ostsids sarticea 143 1,881 0 211 120 169 120 0 360 869 Travel Neais 1S8 0 23 231All 81r 69, end wllocatioia gad Score "Joshonts Is0 &,643 0 133 0 292 58 313 176 $62 Overhead 0 0 0 0 0 0 $04 0 (SO) 0 6 0 TOTAL DIRECT COST 26,103 2,218 31329 11250 3,940 10,S81 6,646 DASE PER 9129S 1,328 1,328 0 3,984 3,914 i TOTAL CONTRACT 33,398 3,606 41151 i, 2S0 7,924 14, 311 61646 ' } r MEMORANDUM TO: LINDA GOEB, CITY ADMINISTRATOR; CITY COUNCIL MEMBERS FROM: M KE COURI, CITY ATTORNEY SUBJECT: 1999 BUSINESS SUBSIDY ACT DATE: SEPTEMBER 29, 1999 This year the State Legislature passed a new law requiring local governments which provide business subsidies to private businesses to have a business subsidy policy in place prior to granting a business subsidy. A business subsidy could take the form of a low interest loan, a TIF project, subsidized utility or street construction, etc. Once the subsidy policy is in place, the City must enter into a business subsidy agreement with the recipient if the subsidy exceeds $251000. That agreement must contain the following: • a description of the subsidy; • a statement of the public purpose; • goals for the subsidy; • a description of the financial obligation of the recipient if the goals are not met; • a statement of why the subsidy is needed; • a commitment to continue operations at the site for at least five years after the benefit date; • the name and address of the parent corporation of the recipient, if any; • a list of all financial assistance by all grantors (e.g. DTED, etc.) for the project.; • Specific job and wage. goals specifying the number of jobs created (or retained), wage goals for the jobs created or retained, and a condition that the job and wage goals must be attained within two years of the benefit date. If the subsidy will exceed $100,000.00, the City must hol" public hearing on the issue of granting the particular subsidy unless the law already requires that a public hearing be held (as in the case of a TIF district, which requires a public - hearing to establish the TIF and adopt the TIF plan). If the recipient fails to meet the goals stated in the subsidy agreement, the recipient must pay the subsidy back to the City. 1 I have prepared a resolution containing a Business Subsidy policy for consideration by the City Council. The proposed policy is very general (it is based on the policy adopted by the City of Crystal) so that the City will be able to maintain a large degree of flexibility depending upon the type of subsidy.For example, the City may want to require more strict job creation goals for a business which will be receiving $300,000 in TIF assistance than for a business that will be receiving $25,000 in revolving loan funds. Please note that I have left the wage rate blank in the resolution. State statute does not require that we establish a wage rate in the policy (only in the individual agreements with each business which receives a subsidy). However, since we were required to set a wage rate in our revolving loan policy (adopted earlier this year), I thought the Council may want to consider setting a policy for general business subsidies. The rate set for the revolving loan fund was the minimum required by the State, or l 10% of the federal poverty level for a family of four ($8.71 per hour in 1998). The Council can certainly set it higher than this figure if it likes. The TIF agreement with Land of Lakes Stone will require six new full-time jobs to be created at a minimum of $13.00 per hour. 2 iay�t CITY OF ALBERTVILLE RESOLUTION #99- 45 BUSINESS SUBSIDY POLICY WHEREAS, the City of Albertville is a developing community and pursues development and redevelopment as a way to maintain and increase tax base, create new job opportunities, remove blighted structures and maximize underutilized sites; and WHEREAS, the State of Minnesota requires local governments to adopt business subsidy policies as specified in Minnesota Statutes, Sections 1161993 through 116J.994; and WHEREAS, Minnesota Statutes 116J.993, Subdivision 3 defines business subsidy as "...local government agency grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government facilities given to a business", subject to various exceptions; and WHEREAS, the Albertville City Council recognizes that it undertakes development and redevelopment projects to achieve public purposes, including the creation or retention of new jobs that pay living wages; and WHEREAS, the Albertville City Council also recognizes that job creation may not be a primary purpose for some redevelopment projects which are intended to eliminate blight, increase community vitality and serve broad public purposes. NOW, THEREFORE, BE IT RESOLVED, by the AlbertvillWe City Council as follows: 1. That each business subsidy will be evaluated on a case by case basis, recognizing each project's importance and benefit to the community; 2. That the City Council will determine job goals for each business subsidy (excluding the assistance described in Section 3) which goals will be sensitive to local market and economic conditions, economic and market forces over which neither the community or developer have control, the financial resources of the developer and the competitive enviro 'en of the market. Wages for any jobs which the City requires o be established shall not be less than $_�� per hour. The City may require a higher wage rate on any particular project if it deems the wage rate stated in this paragraph to be inadequate in light of the proposed business subsidy. 3. That consistent with Minnesota Statutes 116J.993, Subdivision 3, the following forms of financial assistance are not a business subsidy, and recipients will not typically be required to meet specific job and wage goals: A. Business subsidy of less than $25,000; B. Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; C. Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; D. Redevelopment property polluted by contaminants as defined in Minnesota Statutes, Section 116J.552, Subdivision 3 E. Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code, provided that the assistance is equal to or less than 50 percent of the total cost; F. Assistance provided to organizations whose primary mission is to provide job readiness and training services if the sole purpose of the assistance is to provide those services; G. Assistance for housing; H. Assistance for pollution control or abatement; L Assistance for energy conservation; J. Tax reductions resulting from conformity with=federal tax law; K. Worker's compensation and unemployment compensation; L. Benefits derived from regulation; M. Indirect benefits derived from assistance to educational institutions; N. Funds from bonds allocated under Minnesota Statutes, Chapter 474A; O. Assistance for a collaboration between a Minnesota higher education institution and a business; 2 P P. Assistance for a tax increment financing soils condition district as defined under Minnesota Statutes, Section 469.174, Subdivision 19; Q. Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; R. General changes in tax increment financing law and other general tax law changes of a principally technical nature; and S. Any other forms of assistance that may be defined by law as not constituting a business subsidy under Minnesota Statutes, Section 116J.993, Subdivision 3. Approved this 4�' day of October, 1999. Mayor ATTEST: 3 TO: FROM: DATE: City of Albertville Mayor and City Council Tim Gruimont, Public Works SUBJECT: PUBLIC WORKS DEPARTMENT REPORT �n • Public Works I would like the Council to reconsider renting a stall from Don's Bus Service. We need a spot for three (3) vehicles and three (3) snowplows. It would be nice to have these vehicles in a heated space so the snow and ice can melt off of them after plowing. We would not have to rent the stall at Albert's house for $75 per month. The additional cost would only be $125 per month until the Fire Hall is done. • Compost Site For Your Information - In the past several months there has been an increased amount of people leaving their compost in the bags. The amount of brush is a very high volume. It also looks like big trucks are dumping brush there, as well as landscape timbers, railroad ties and other lumber. We have found used carpet and bed mattresses. I don't know how to solve this problem. I don't care to spend my weekend monitoring what is being dropped off at the compost site. • Streets During the month of October we will be working on the snowplows. We will be getting them ready for the 1999-2000 suqwplowing season. * Parks The ballfield at Oakside Park should be completed by the end of the week. We will be trimming trees in all of the parks and along the boulevards. We will also be planting trees at Oakside Park. TG.bmm ow Weft SKSW 1"I-Wd o . Minnesota DNR - Minnesota ReLeaf Minnesota ReLeaf: Now Grant $$ Available to Help Your Trees The Minnesota Department of Natural Resources - Division of Forestry now has $875,000 in matching funds available for local communities and non-profit organizations through the Minnesota ReLeaf Program. These funds were approved by the Minnesota Legislature in part from the Natural Resources Trust Fund. These competitive matching grants can be used for: Community Forest Heal, practices that have a direct and immediate impact on tree health and to promote educational programs to sustain community -wide tree health efforts. Any of the Forest Health fivais may be used for oak wilt suppression, but $290,000 are being targeted for oak wilt control. $515,000 available, maximum $20,000 for oak wilt, $10,000 for other Forest Health projects. Applications are now available and may be submitted at any time. These grants will be awarded by Regional ReLeaf Steering Committees on the following dates: July 15,19" - November 1, 1999 - June 1, 2000 and November 1, 2000. All applications must include a Needs Determination by your DNR Area Forester to be considered. Application Packe# Community Forest inventories, to assess the extent and condition of your trees as the first step toward integrating management of natural resources into public infrastructure, zoning and comprehensive planning processes. $75,000 available, maximum $7,500 per project. Applications will be available August 26, 1999 and must be received by DNR by November 1,19". All applications must include a Needs Determination by your DNR Area Forester to be considered. Awl+mlion Packet Community Tree Planting, to plant predominantly native trees on public and private property within Minnesota communities. $270,000 available, maximum $?;5{10 per project. Applications will be available July 22, 1999 and must be received by DNR by November 1, 19". All applications must include a Needs Determination by your DNR Area Forester to be considered. AVILUcation Packet These fiords are NOT intended to supplant or replace local funds for normal tree maintenance practices or general pest detection. They are intended to demonstrate that tree planting is only one part of a complete local tree management program, which also should include an inventory, inspections, pruning and removals. WHO'S ELIGIBLE ? Local units of government and nonprofit organizations are eligible to apply and must contribute at least 50°!0 of the total project cost either in cash or in -kind contributions. Any http://www.dnr.sMte.mn.us/forestry/relmV 9/29/99 • Minnesota DNR - Minnesota ReLeaf Page 2 of 2 applicant may receive more than one grant. PEOPLE AND PUBLICAT' Foresters are available in each of application process. Your local T before you submit your applicatic program criteria and has the best you receive will include complete funded projects and factsheets on For more information, contact the check the phone book or call the I Cities metro area, or toll free at 1- INS TO ASSIST YOU tr 5 Regions and 40 Area offices to guide you through the fR Area Forester must sign off on a Needs Determination This helps ensure that your project meets the basic ance of being funded. in addition, the application packet sample applications, examples of eligible and previously variety of topics. DNR area forestry office. For the phone number, nformation Center at (651) 296-6157 from the Twin GNNDNR from the remainder of Minnesota. DNR Information Center E- 1: infc►Caldnr.state.mn.us 500 Lafayette Road Pho e: 651-29b-6157 or 8$8-MINNDNR law St. Paul, MN 55155-4040 TD;. 651-29b-54$4 or 8t?0-65�-3929. D,�� irections Contents C 19" Minnesota Department of Natural Resources. All rights reserved. w http://www 9/29/99 t +.09✓29/10 06:42 FAX 320_253 1009 w _ __. SEH.RCX ST CLOUD ALBERTV: MEMGrc^IVIjum 1'fa: Croeb City Administrator AlberiviUc. Minuscts FROM J. Carbon, P.c. city En&W_ LATE: Sopimber29,1999 RE: 63rd Street SUM Sayer Cedar Cheek Norte Addition AlbattvilK MinaeroRa SEH No. A ALH'EVOOOLOO 14.00 An existing drain tila # ROWS ftm the city of OWV into Albertville wee conawW to city sum at the time muaw4W iasprtrva9tnent3 were installed for Cedar Crack North. Upon further MSPedm' it qpms the flow from Otsego is &Wdc and is possibly draining a failed Septic systear in Chsego. I have couucftd Jerry Ohxm, Otsep BWUM later, regarding " iUm. He is reviewing the skustion and cond tiom with OMVs City Eo&m and will gat back to me with his findings. I hope to have %odback to repot to the City Coumil atdw next Council meatiug. It1C Oftu lot " 1W the Upper mmWestE qt� we hdppu !1m *98m CONTRACT FOR PRIVATE DEVELOPMENT By and Among CITY OF ALBERTVH LE, M1NNESOTA and GEM DEVELOPMENT COMPANY, LLC and LAND OF LAKES STONE, LLC Dated as of: October 119" This document was drafted by: KENNEDY &c GRAVEN, Chartered 470 Pillsbury Center Minneapolis, Minnesota 55402 Telephone: 337-9300 TABLE OF CONTENTS ARTICLE I Definitions Section1.1. Definitions......................................................................................................................2 ARTICLE II Representations and Warranties Section 2.1. Representations by the City ........................................................... 4 Section 2.2. Representations and Warranties by the Developer.............................................................4 ARTICLE III Acquisition and Conveyance of Property; Assessments and Land Acquisition Section 3.1. Acquisition and Conveyance of the Development Property ..................... ....................6 Section 3.2. Site Improvements............................................................................................................6 Section 3.3. Financing of Site Improvements......................................................................... ........... 6 Section 3.4. Payment of Administrative Costs...................................................................................... 7 Section3.5. Records............................................................................................................................. 7 Section 3.6. Soil Conditions .................................................................................................................. 7 Section 3.7. Business Subsidy Agreement............................................................................................ 8 Section 3.8. Incorporation of and Effect on Purchase Agreement........................................................ 8 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements ...................................... ......................... ... 9 Section 4.2. Construction Plans 9 ............................................................................................................ Section 4.3. Commencement and Completion of Construction..........................................................10 Section 4.4. Certificate of Completion..................................................................I: .........................10 ARTICLE V Insurance and Condemnation Section 5.1. Insurance 11 ARTICLE VI Tax Increment; Taxes Section 6.1. Right to Collect Delinquent Taxes..................................................................................13 Section 6.2. Use of Tax Increments .. 13 DJo-165606 AL141-29 ARTICLE VII Mortgage Financing Section7.1. Mortgage Financing........................................................................................................14 Section 7.2. City's Option to Cure Default on Mortgage ...................................................................14 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development .......................................... ........15 ................................ Section 8.2. Prohibition Against Developer's Transfer of Property and Assignment of Agceement..............................................................................15 Section 8.3. Release and Indemnification Covenants..........................................................................16 ARTICLE IX Events of Default Section 9.1. Events of Default Defined 18 Section 9.2. Remedies on Default...................................................................................................... 18 Section 9.3. No Remedy Exclusive.....................................................................................................18 Section 9.4. No Additional Waiver Implied by One Waiver...............................................................18 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; City Representatives Not IndividuallyLiable .............................................. ............... .....................20 Section 10.2. Equal Employment Opportunity .................... ....20 ............................................................ Section 10.3. Restrictions on Use 20 Section 10.4. Provisions Not Merged With Deed...........................................................................20 Section 10.5. Titles of Articles and Sections 20 Section 10.6. Notices and Demands...................................................................................................20 Section 10.7. Counterparts.................................................................................................................21 Section 10.8. Recording Section 10.9. ....................................................................................... Choice ofLaw & Venuex .........21 ............................................................... .. ........................ 21 EXHIBIT BIT A Description of Property EXHIBIT B Certificate of Completion DJG463606 11 AL141-29 CONTRACT FOR PRIVATE DEVELOPMENT THIS AGRMv1ENT, made on or as of the day of , 1999, by and among THE CITY OF ALBERTVILLE, MINNESOTA, a municipal corporation, under the laws of Minnesota (the "City"), GEM DEVELOPMENT, LLC (the "Land Owner") and LAND OF LAKES STONE, LLC (the "Lessee) (collectively, the Land Owner and the Lessee are the "Devedoper"). WITNESSETH: WHEREAS, pursuant Sections 469.124 through 469.134 (the "Act"), the City has undertaken a program to promote economic development and job opportunities and to promote the development of land which is underutilized within the City, and in this connection created the Development District No. 1(hereanafter referred to as the `Project in an area (hereinafter referred to as the "Project Area") located in the City and a Tax Increment Financing District No. 11 (the "TIF District") within the Project Area, all pursuant to the Act and Iv i cr t to Sections 469.174 to 469.179; and WHEREAS, the City is authorized to undertake certain activities to prepare such real property for development by private enterprise; and WHEREAS, in order to achieve the objectives of the Project Plan the City is prepared to reimburse certain land acquisition and development costs of the Project, in order to bring about development in accordance with the Development Plan and this Agreement; and WHEREAS, the City believes that the development of the Project Area pursuant to this Agreement, and fulfillment generally of this Agreement, are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable State and local laws and requirements under which the Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: DJo-165606 AL141-29 ARTICLE I Section 1.1. Definiti In this Agreement, unless a different meaning clearly appears from the context: "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "City" means the City of Albeatville, Minnesota. "Certificate of Completion" means the certification provided to the Developer pursuant to Section 4.4 of this Agreement. "City Development District Act" or "Act" means Minnesota Statutes, Sections 469.124 through 469.134, as amended. "Construction Plans" means the plans, specifications, drawings and related documents on the construction work to be performed on the Development Property which (a) shall be as detailed as the plans, specifications, drawings and related documents which are submitted to the appropriate building officials of the City, and (b) shall include at least the following: (1) site plan, (2) landscape plan; and (3) such other plans or supplements to the foregoing plans as the City may reasonably request to allow it to ascertain the nature and quality of the proposed construction work. The Construction Plans for any building to be constructed on the Development Property shall additionally include the following: (1) foundation plan; (2) basement plans; (3) floor plan for each floor; (4) cross sections of each (length and width); and (5) elevations (all sides); "County" means the County of Wright, Minnesota. "Developer" means, collectively, the Land Owner and the Lessee, or their permitted successors and assigns. R. "Developer's Agreement" means that agreement by the Land Owner in favor of the City, dated , 1999 and recorded with the County as document number "Development Property" means the real property described as such in Exhibit A of this Agreement. After construction of the Minimum Improvements, the term means the Development Property as improved. "Development Plan" means the City's Project Plan for Development District No. 1, as amended, and as it may be fiuther amended. "Event of Default" means an action by the Developer listed in Article IX of this Agreement. "Holder" means the owner of a Mortgage. DJG-165606 2 AL141-29 "Land Owner" means GEM Development, LLC, a Mnnresota limited liability company. "Lessee» means Land of Lakes Stone, LLC, a Minnesota, limited liability company "Minimum Improvemects» means construction of an approximately 3�,1'r%U square foot manufacturing and retail facility. 'Mortgage" means any mortgage made by the Developer which is secured, in whole or in part, with the Development Property and which is a permitted encumbrance pursuant to the provisions of Article VIII of this Agreement. "Project" means the City's Development District No. 1. "Project Area" means the real properly located within the boundaries of the Project. "State" means the State of Mnnesota. "Tax Increment" means that portion of the read property taxes which is paid with respect to the Development Property and which is remitted to the City as tax increment pursuant to the Tax Increment Act. "Tax Increment Act" means the Tax Increment Financing Act, Minnesota Statutes, Sections 469.174 to 469.179, as amended. "Tax Increment District" or "TIF District" means the City's Tax Increment Financing District No. 11. "Tax Increment Plan" or '71F Plan" means the City's Tax Increment Financing Plan for Tax Increment Financing District No. 11, as approved May 3, 1999 and as may be amended. "Tax Official" means any County assessor, County auditor, County or State board of equalization, the commissioner of revenue of the State, or any State or federal district court, the tax court of the State, or the State Supreme Court. . "Termination Date" means the earlier of February 1, 2010, or the date on which the Developer has been fudly reimbursed for the Land Acquisition and Site Improvement Costs (as defined in Section 3.2 of this Agreement) in accordance with the terns and conditions of this Agreement. "Unavoidable Delays" means delays beyond the reasonable control of the party seeking to be excused as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the City in exercising its rights under this Agreement) which directly result in delays. Unavoidable Delays shall not include delays in the Developer's obtaining of permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such construction is required under Section 4.3 of this Agreement. DIo-165606 3 AL141-29 ARTICLE II Representations and Warranties Section 2.1. Representations by the City The City makes the following representations as the basis for the undertaking on its part lawn contained: (a) The City has the power to enter into this Agreement and carry out its obligations hereunder. (b) The activities of the City are undertaken for the purpose of fostering the development of certain real property which for a variety of reasons is presently unutilized and underutilized, and for the purpose of promoting economic development and the creation of employment opportunities. Section 2.2. Rgpresentations and Warranties by the DevelgM. The Developer represents and warrants that: (a) The Developer has power to enter into this Agreement. (b) The Developer will cause to be constructed, operated, and maintained the Nfu imum Improvements in accordance with the terms of this Agreement, the Development Plan, and all local, state, and federal laws and regulations (including, but not limited to, environmental, zoning, building code, and public health laws and regulations). (c) The Developer has received no notice or communication from any local, state, or federal official that the activities of the Developer or the City in the Project Area may be or will be in violation of any environmental law or regulation (other than those notices or communications of which the City is aware). The Developer is aware of no facts the existence of which would cause it to be in violation of or give any person a valid claim under any local, state, or federal environmental law, regulation or review procedure. (d) The Developer will cause the Minimum Improvements to be constructed in accordance with all local, state, or federal energy -conservation laws or regulations. . (e) The Developer will obtain or cause to be obtained, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all applicable local, state, and federal laws and regulations which must be obtained or met before the Minimum Improvements may be lawfully constructed. (f) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by, or conflicts with or results in a breach of the terms, conditions, or provisions of any restriction or any evidences of indebtedness, agreement, or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. I DJo-165606 4 AL141-29 (g) Whenever any Event of Default occurs and if the City shall employ attorneys or incur other expenses for the collection of payments due or to become due, or for the enforcement of performance or observance of any obligation or aft on the part of the Developer under this Agreement, the Developer agrees that it shall, within ten days of written demand by the City, pay to the City the reasonable fees of such attorneys and such other expensw so insured by the City. (h) The proposed development by the Developer herd would not occur but for the tax increment financing assistance being provided by the City hereunder. DJG-165606 5 AL141-29 ARTICLE III Acauisi 'on and Conveyance of Prouertv: Assessments and Land Acquisition Section 3.1. AQuisition and Conveyance of the Development EaMaly. As of the date of this Agreement, the Developer has entered into a purchase agreement for the Development Property. The City has no obligation to acquire any interest in the Development Property Section 3.2. Site Lnprovements. (a) In order to make development of the Minimum Improvements economically feasible, the City will reimburse the Developer, in the manner sex forth herein, for up to $418,252 of the Land Acquisition and Site Improvement Costs, hereby defined as up to $300,000 of the cost of acquiring the Development Property (the `.and Acquisition Costs') plus up to $118,252 of the costs of grading, excavation, landscaping, soil corrections, installation of sanitary sewer, water, and storm sewer utilities, park dedication and construction of footings and parking facilities (the "Site Improvements") (the costs of making the Site Improvements are referred to herein as the "Site Improvement Costs"); provided that all such costs are incurred by the Developer and designed to serve the Minimum Improvements. In no case shall the City reimburse the Developer for more than $418,252 of the Land Acquisition and Site Improvement Costs incurred by the Developer, in the individual amounts shown. Any Land Acquisition and Site Improvement Costs in excess of this amount shall be the responsibility of the Developer. The City mall have no obligation to the Developer or to any third party with respect to any defects in the construction of improvements financed or reimbursed by the City pursuant to this Agreement. (b) The City will reimburse the Developer for the Land Acquisition and Site Improvements Costs in accordance with the terms and conditions set forth in Section 3.3. Section 3.3. Financing of Site Improvements (a) The Land Acquisition and Site Improvement Costs will be paid, with simple interest thereon at 7.500/a per annum, by the City to the Developer in semi-annual installments payable on each Febnuuy 1 and August 1 ("Payment Dates") commencing August 1, 2001 and concluding no later than the Termination Date. These payments will be made from Available Tax Increment as defined in this Section 3.3 and from no other source. (b) The term "Available Tax Increment" means, subject to section 3.3(h) of this Agreement, 100 percent of the Tax Increment with respect to the Development Property as calculated by the County and paid to the City during the six months preceding any Payment Date. (c) If on any Payment Date there is available to the City insufficient Available Tax Increment to pay the amounts due on such date, the amount of such deficiency shall be deferred and shall be paid, without interest thereon, on the next Payment Date on which the City has available to it Available Tax Increment in excess of the amount necessary to pay the amount due on such Payment Date. (d) The City shall have no obligation to pay any portion of the Land Acquisition and Site Improvement Costs that remains unpaid after the Termination Date. The City may prepay the Land Acquisition and Site Improvement Costs at any time. D)o-165606 AL141-29 (e) The City shall not be obligated to make any payment under this Section if: (i) there is an Event of Default on the Developer's part under this Agreement that has not been clued as of the Payment Date, or (ii) the Developer has fared to comply with the payment procedures described in paragraph (f) herein. (f) At least 30 days before the first Payment Date, the Developer must submit to the City a payment request certificate signed by its duly authorized representative stating that the Developer has paid Land Acquisition Costs in an amount that equals at lead $300,000 and Site Improvement Costs in an amount that equals at least $118,252, and that no Event of Default has occurred and is continuing under this Agreement. The first payment request certificate must be accompanied by a certificate of a project engineer or other project supervisor showing in adequate detail that the Land Acquisition and Site Improvement Costs have been insured and paid by the Developer. (g) The City makes no warranties or representations that Available Tax Increment will be sufficient to pay the Land Acquisition and Site Improvement Costs. The Developer agrees and understands that Available Tax Increment is subject to calculation by the County and change in State law, and that a significant portion of Land Acquisition and Site Improvement Costs may and likely will remain unpaid after the Termination Date. The Developer further agrees and understands that TIF estimates provided by the City, and its agents, officers, or employees are estimates only and not intended for the Developer's reliance. (h) The Developer agrees and acknowledges that its right to any Available Tax Increment pursuant to this Agreement is subordinate to the City's rights to reimbursement of Administrative Costs set forth in Section 3.4, and that the City shall have no obligation to make any payment of Available Tax Increment to the Developer if the City has not been fully reimbursed pursuant to that Section 3.4. Section 3.4. Payment of Administrative Costs. (a) In order to reimburse itself for Administrative Costs it incurs, the City shall on every Payment Date retain out of Available Tax Increment an amount equal to the amount of Administrative Costs incurred and not previously reimbursed as of that Payment Date. For the purposes of this Agreement, the term "Administrative Costs" means costs and expenses, including without limitation legal fees, insured by the City and attributable to or incurred in connection with the negotiation and preparation of this Agreement and other documents and agreements in connection with the development contemplated hereunder, the creation and administration of the TiF District, and any other "Administrative expenses" as defined in Minnesota t tutu, Section 469.174, subd. 14. (b) If on any Payment Date there is available to the City insufficient Available Tax Increment to fully reimburse itself for Administrative Costs insured and not previously reimbursed, the amount of such deficiency shall be deferred and shall be paid, without interest thereon, on the next Payment Date or Payment Dates on which the City has available to it sufficient Available flax Increment to recover such deficiency. (c) The terms of this Section 3.4 are for the sole benefit of the City, and nothing in this Section 3.4 shall be construed to limit the City's ability to lawfully recover Administrative Costs from Tax Increment during or after the termination of this Agreement. DJG-165606 7 AL141-29 Section 3.5. Record . The City may at all reasonable times, after reasonable notice, inspect, examine and copy all books and records of the Developer relating to the Minimum Improvements. The Developer shall use its best efforts to cause the contractor or contractors, all subcontractors, and their agents and lenders to make their books and records relating to the Site Improvements available to the City upon reasonable notice, for inspection, examination and audit. These records shall be kept and maintained by the Developer for a period of four years following completion of construction of the Site Improvements. Section 3.6. Soil Conditions. The Developer acknowledges that the City makes no representations or warranties as to the condition of the soils on the Development Property or its fitness for construction of the Minimum Improvements or any other purpose for which the Developer may make use of the Development Property, provided fiirther that in any event the Developer further agrees that it will indemnify, defend, and hold harmless the City, and its governing body members, officers, agents, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the property. Section 3.7. Business Subsidy Bement. The provisions of this Section 3.7 constitute the "business subsidy agreement" for the purposes of the Business Subsidy Act. (a) General Terms The parties agree and represent to each other as follows: (1) The subsidy provided to the Developer includes the Available Tax Increment paid to the Developer for Land Acquisition and Site Improvement Costs, which disbursement represents a forgivable loan that is repayable by the Developer in accordance with this Section. The Available Tax Increment is payable from a portion of the Tax Increments from the TIF District, an economic development tax increment financing district. (2) The public purposes of the subsidy are to promote development of a manufacturing facility in the City, generate spin-off development at a key location in the City, increase net jobs in the City and the State, and increase the tax base of the City and the State. (3) The goals for the subsidy are: to secure development of the Minimum. Improvements on the Development Property; to maintain such improvements as a manufacturing facility with related warehouse and showroom space for at least five nears as described in clause (6) below, and to create the jobs and wage levels in accordance with Section 3.7(b) hereof. (4) If the goals described in clause (3) are not met, the Developer must make the payments to the City described in Section 3.7(c). (5) The subsidy is needed because site development costs, and the cost of Public Improvements assessed against the Development Property, make development of a granite countertop cutting and manufacturing facility with related warehouse and showroom space financially infeasible without public assistance, all as determined by the City upon approval of the TIF Plan. DJO-165606 g AL141.29 (6) The Developer must continue operation of the Minimum Improvements as a granite countertop cutting and manufacturing f mility with no more than 10% of the Minimum Improvements devoted to related warehouse and showroom qx= for at least five years after the date of issuance of the certificate of completion (7) The Developer does not have a parent corporation (8) The Developer has not received, and does not expect to receive, financial assistance from any other "grantor" as defined in the Business Subsidy Act, in connection with the Development Property or the h6nimum Improves. (b) Job and Wage Gaak Within two years after the date of issuance of the certificate of completion of the Minimum Improves (the "Compliance Date"), the Developer shall cause to be created at least 6 new full-time equivalent jobs on the Development petty (excluding any jobs previously existing M a tate as Wit -he or t rrs Agreement and relocated to this site) and shall cause the wages for all employees on the Development Property to be no less than $13.00 per hour, — exclusive of benefits. Notwithstanding anything to the contrary herein, if the wage and job goals described in this paragraph are met by the Compliance Date, those goals are deemed satisfied despite the Developer's continuing obligations under Sections 3.7(ax6) and 3.7(d). The City may, after a public hearing, extend the Compliance Date by up to one year, provided that nothing in this section will be construed to limit the City's legislative discretion regarding this matter. (c) Remedies If the Developer fails to meet the goals described in Section 3.7(ax3), the Developer shall repay to the City upon written demand from the City (a) a "pro rata share" of the amount of any Available Tax Increment disbursed to the Developer for Land Acquisition and Site Improvement Costs under Section 3.3 hereof and (b) interest on the amount in clause (a) at the implicit price deflator as defined in Minnesota Statutes, Section 275.70, subd. 2, accrued from the date of issuance of the certificate of completion to the date of payment. The term "pro rata share" means percentages calculated as follows: (i) if the failure relates to the number of jobs, the jobs required less the jobs created, divided by the jobs required; ills if the failure relates to wages, the number of jobs required legs the number of jobs that meet the required wages, divided by the number of jobs required, (iii) if the failure relates to maintenance of the Minimum Improvements in accordance with Section 3.7(a)(6), 60 less the number of months the Minimum Improvements were operated in accordance with Section 3.7(ax6) (where any month in which the Minimum Improvements is in operation for at least 15 days constitutes a month . of operation), commencing on the date of the Certificate of Completion and ending with the date the Minimum Improvements ceases operation in accordance with Section 3.7(aX6), as determined by the City Representative, divided by 60; and (iv) if more than one of clauses (i) through (iii) apply, the sum of the applicable percentages, not to exceed 100%. DJG-165606 9 AL141-29 Nothing in this Section sha—be construed to Wait the City's remedies under Article IX thereof. In addition to the remedy described in this Section and any other remedy available to the City for failure to meet the goals stated in Section 3.7(ax3), the Developer agrees and understands that it may not a receive a business subsidy from the City or any grantor (as defined in the Business Subsidy Act) for a period of five years from the daze of the failure or until the Developer satisfies its repayment obligation under this Section, whichever occurs first. (d) Reports The Developer must submit to the City a written report regarding business subsidy goals and results by no later than March 1 of each year, commencing March 1, 2000 and continuing until the later of (i) the date the goals stated Section 3.7(ax3) are met; (fi) 30 days after expiration of the five-year period described in Section 3.7(ax6); or (ll) if the goals are not met, the date the subsidy is repaid in accordance with Section 3.7(c). The report must comply with Section 1161994, subdivision 7 of the Business Subsidy Act. The City will provide information to the Developer regarding the required forms. If the Developer fails to timely file any report required under this Section, the City will mail the Developer a warning within one week after the required filing date. K after 14 days of the postmarked date of the warning, the Developer fitils to provide a report, the Developer must pay to the City a penalty of $100 for each subsequent day until the report is filed. The maximum aggregate penalty payable under this Section $1,000. DJO-165606 10 AL141-29 ARTICLE IV Construction of Minimum Imorovemenb Section 4.1. Construction of Minimupprovements. The Developer agrees that it will cause to be constructed the 1Vt'inimum Improvements on the Development Property in accordance with the approved Construction Plans, and at all times prior to the Termination Date will operate and maintain, preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintained, preserved, and kept with the appurtenances and every part and parcel thereof; in good repair and condition. Section 4.2. Construction Plans. (a) Before beginning construction of the Minimum Improvements, the Developer shall submit to the City Construction Plans. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in conformity with the Development Plan, this Agreement, and all applicable State and local laws and regulations. The City will approve the Construction Plans in writing if: (i) the Construction Plans conform to the terms and conditions of this Agreement; (H) the Construction Plans conform to the goals and objectives of the Development Plan; (iii) the Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and regulations; Cv) the Construction Plans are adequate to provide for construction of the N4iinimum Improvements; (v) the Construction Plans do not provide for expenditures in excess of the funds available to the Developer for construction of the Mi i mum Improvements; and (vi) no Event of Default has occurred. Approval may be based upon a review by the City's Building Official of the Construction Plans. No approval by the City shall relieve the Developer of the obligation to comply with the terms of this Agreement or of the Development Plan, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the Mulimum Improvements in accordance therewith. No approval by the City shall constitute a waiver of an Event of Default. If approval of the Construction Plans is requested by the Developer in writing at the time of submission, such Construction Plans shall be deemed approved unless rejected in writing by the City, in whole or in part. Such rejections shall set forth in detail the reasons therefore, and shall be made within 30 days after the date of their receipt by the City. If the City rejects any Construction Plans in whole or in part, the Developer shall submit new or corrected Construction Plans within 30 days after written notification to the Developer of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the City. The City's approval shall not be unreasonably withheld. Said approval shall constitute a conclusive determination that the Construction Plans (and the Minimum Improvements constructed in accordance with said plans) comply to the City's satisfaction with the provisions of this Agreement relating thereto. (b) If the Developer desires to make any material change in the Construction Plans after their approval by the City, the Developer shall submit the proposed change to the City for its approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section 4.2 of this Agreement with respect to such previously approved Construction Plans, the City shall approve the proposed change and notify the Developer in writing of its approval. Such change in the Construction Plans shall, in any event, be deemed approved by the City unless rejected, in whole or in part, by written notice by the City to the Developer, setting forth in detail the reasons therefor. Such rejection shall be made within ten (10) days after receipt of the notice of such change. The City's DJG-165606 1 1 AL141-29 approval of any such change in the Construction Plans will not be unreasonably withheld. Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable Delays, the Developer shall complete the construction of the of Minimum Improvements by June 1, 2000. All work with respect to the Minimum Improvemernts to be constructed or provided by the Developer on the Development Property shall be in conformity with the Construction Plans as submitted by the Developer and approved by the City. The Developer agrees for itself its successors and assigns, and every successor in mterest to the Development Property, or any part thereog that the Developer, and such successors and assigns, shall promptly and diligently prosecute to completion the developmerit of the Development Property through the construction of the Minimum Improvements thereon, and that such construction Shall in any event be commenced and completed within the period specified in this Section 4.3 of this Agreement. Subsequent to the Developer's acquisition of title to the Development Property, or any part thereof; and until construction of the Minimum Improvements has been completed, the Developer shall make reports, in such detail and at such times as may reasonably be requested by the City, as to the actual progress of the Developer with respect to such construction. Section 4.4. Certificate of Completion. (a) Promptly after substantial completion of each the Minimum Improvements in accordance with those provisions of this Agreement relating solely to the obligations of the Developer to construct the Minimum Improvements (including the dates for beginning and completion thereof), the City will furnish the Developer with the Certificate shown as Exhibit C. Such certification by the City shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligations of the Developer, and its successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer to any Holder of a Mortgage, or any insurer of a Mortgage, securing money loaned to finance the Minimum Improvements, or any part thereof. (b) If the City shall refuse or fail to provide any certification in accordance with the provisions of this Section 4.4 of this Agreement, the City shall, within thirty (30) days after written request by the Developer, provide the Developer with a written statement, indicating in adequate detail in what respects the Developer has failed to complete the Minimum Improvemegts in accordance with the provisions of this Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the City, for the Developer to take or perform in order to obtain such certification. (c) The construction of the Minimum Improvements shall be deemed to be substantially completed when the Developer has received an occupancy permit from the responsible inspecting authority. DJG-165606 12 AL141.29 ARTICLE V Insurance and Condemnation Section 5.1. . (a) The Developer will provide and maintain at all times during the process of constructing the Mmimum Improvements an All Risk Broad Form Basis Insurance Policy and, from time to time during that period, at the request of the City, f unish the City with proof of payment of premiums on policies covering the following: (i) Builder's risk insurance, written on the so-called "Builder's Risk -- Completed Value Basis," in an amount equal to one hundred percent (1000%) of the insurable value of the Ivfinimum improvements at the date of complexion, and with coverage available in nonreporting form on the so-called "all risk" form of policy. The interest of the City shall be protected in accordance with a clause in form and content satisFactory to the City; (ii) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner's Contractor's Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above -required limits, an umbrella excess liability policy may be used); and (iii) Workers' compensation insurance, with statutory coverage. (b) Upon completion of construction of the Mlnlmum Improvements and prior to the Termination Date, the Developer shall maintain, or cause to be maintained, at its cost and expense, and from time to time at the request of the City shall furnish proof of the payment of premiums on, insurance as follows: (i) Insurance against loss and/or damage to the Minimum Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses; (6) Comprehensive general public liability insurance, including personal injury liability (with employee exclusion deleted), against liability for injuries to persons and/or property, in the minimum amount for each occurrence and for each yeai of $1,000,000, and shall be endorsed to show the City as additional insured; and (iii) Such other insurance, including workers' compensation insurance respecting all employees of the Developer, in such amount as is customarily carried by like organizations engaged in like activities of comparable size and liability exposure; provided that the Developer may, if permitted by law, be self -insured with respect to all or any part of its liability for workers' compensation. (c) All insurance required in Article V of this Agreement shall be taken out and maintained in responsible insurance companies selected by the Developer which are authorized under the laws of the State to assume the risks covered thereby. Upon request, the Developer will deposit annually with the City policies evidencing all such insurance, or a certificate or certificates or binders of the respective DJG-165606 13 AL141.29 insurers stating that such insurance is in force and effect. Unless otherwise provided in this Article V of this Agreement, each policy shall contain a provision that the insurer shall not cancel nor modify it in such a way as to reduce the coverage provided below the amounts required herein without giving written notice to the Developer and the City at least thirty (30) days before the cancellation or modification becomes effective. In lieu of separate policies, the Developer may maintain a singlle policy, blanket or umbrella policies, or a combination thereof having the coverage required herein, hi which event the Developer shall deposit with the City a certificate or certificates of the respective insurers as to the amount of coverage in farce upon the 111imrnum Imprave�merts. (d) The Developer agrees to notify the City immediately in the case of damage exceeding $100,000 in amount to, or destruction og the Minimum Improvements or any portion thereof resulting from fire or other casualty. In such event the Developer either will forthwith repair, reconstruct, and restore the Minimum Improvements to substantially the saner or an improved condition or value as it existed prior to the event causing such damage and, to the Bade t necessary to accomplish such repair, reconstruction, and restoration, the Developer will apply the Net Proceeds of any insurance relaxing to such damage received by the Developer to the payment or reimbursement of the costs thereof. The Developer shall complete the repair, reconstruction, and restoration of the Minimum Improvements, whether or not the Net Proceeds of insurance received by the Developer for such purposes are sufficient to pay for the same. Any Net Proceeds remaining after completion of such repairs, construction and restoration shall be the property of the Developer. (e) The Developer and the City agree that all of the insurance provisions set forth in this Article V shall terminate upon the Termination Date. DJG-165606 14 AL141-29 ARTICLE VI Tam Increment: Taxes Section 6.1. Right to Collect Ddinauent Taxes. The Developer acknowledges that the City is providing substantial aid and assistance in furtherance of the development. The Developer understands that the tax increment intended to pay eqxnses of the City and the Developer are derived from real estate taxes on the Development Property, which taxes must be promptly and timely paid. To that end, the Developer agrees for itselt its successors and assigns, in addition to the obligation pursuant to statute to pay real estate taxes, that it is also obligated by reason of this Agreement to pay before: delinquency all real estate taxes assessed against the Development Property and the Minimum Improvements. The Developer acknowledges that this obligation creates a contractual right on bed of the City to sue the Developer or its successors and assigns to collect delinquent real estate taxes and any penalty or interest thereon and to pay over the same as a tax payment to the county auditor. In any such suit, the City shall also be entitled to recover its costs, expenses and reasonable attorney fees. Section 6.2. Use of Tax Increments. Except for its obligations under this Agreement regarding Available Tax Increment, the City shall be free to use any tax increment received from the Property for any purpose for which such increment may lawfully be used, pursuant to the provisions of Minnesota law, and the City shall have no obligations to the Developer with respect to the use of such increment. DJG-16YM 15 AL.141-29 . 1 n f ARTICLE VII Mortgage Financing Section 7.1. MortgW Financings. (a) Before commencement of construction of the Min mum Improvements, the Developer shall submit to the City evidence of one or more commitments fair mortgage financing which, together with committed equity for such construction, is sufficient for the acquisition of the Development Property, platting, construction of the public improvements in connection with the plat, and undertaking the Minimum Improvements. Such commitiri«lts may be submitted as short tern financing, long term mortgage financing, a bridge loan with a long term take- out financing commitment, or any combination of the foregoing. Such commitment or commitments for short term or long tern mortgage financing shall be subject only to such conditions as are nor W and customary in the mortgage banking industry. (b) If the City finds that the mortgage financing is sufficiently committed and adequate in amount to provide for the construction of the Minimum Improvements then the City shall notify the Developer in writing of its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within thirty (30) days from the date when the City is provided the evidence of mortgage financing. A failure by the City to respond to such evidence of mortgage financing shall be deemed to constitute an approval hereunder. If the City rejects the evidence of mortgage financing as inadequate, it shall do so in writing specifying the basis for the rejection. In any event the Developer shall submit adequate evidence of mortgage financing within thirty (30) days after such rejection. Section 7.2. City's Qgtion to Cure Default on Mortgage. In the event that there occurs A default under any Mortgage authorized pursuant to this Agreement, the Developer shall cause the City to receive copies of any notice of default received by the Developer from the holder of such Mortgage. Thereafter, the City shall have the right, but not the obligation, to cure any such default on behalf of the Developer within such cure periods as are available to the Developer under the Mortgage documents. DJG-163606 AL141-29 16 ARTICLE VM Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Rgpresentation as to Ihmftment. The Developer represents and agrees that its undertakings pursuant to this Agreement are for the purpose of development of the Development Property and not for speculation m land. Section 8.2. Prohibition Against Developer's Transfer of Propga and Assig sM of A& M=. The Developer represents and agrees that prior to issuance of the Certificate of Completion for the Minimum Improvements: (a) Except only by way of security for, and only for, the purpose of obtaining financing necessary to enable the Developer or any successor in interest to the Development Property, or any part thereof; to perform its obligations with respect to constructing the Mnimum Improvements, and any other purpose authorized by this Agreement, the Developer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease (except any lease by and between the Land Owner and the Lessee (which such lease shall not impair the obligations under this Agreement of the Land Owner or the Lessee)), or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Development Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, except for any part or portion of the Development Property for which the Developer has received a Certificate of Completion, without the prior written approval of the City unless the Developer remains liable and bound by this Agreement in which event the City's approval is not required. Any such transfer shall be subject to the provisions of this Agreement. (b) In the event the Developer, upon transfer or assignment of the Development Property or any portion thereof; seeks to be released from its obligations under this Agreement as to the portion of the Development Property that is transferred or assigned, the City shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such release that: (i) Any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the City, necessary and #dequate to fulfill the obligations undertaken in this Agreement by the Developer as to the portion of the Development Property to be transferred. (H) Any proposed transferee, by instrument in writing satisfactory to the City and in form recordable among the land records, shall, for itself and its successors and assigns, and expressly for the benefit of the City, have expressly assumed all of the obligations of the Developer under this Agreement as to the portion of the Development Property to be transferred and agreed to be subject to all the conditions and restrictions to which the Developer is subject as to such portion; provided, however, that the fact that any transferee of; or any other successor in interest whatsoever to, the Development Property, or any pant thereof; shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the City) deprive the City of any rights or remedies or controls with respect to DJG-165606 17 AL141.29 the Development Property or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer og or change with respect to, ownership in the Development Property or any part the eog or any interest tter* however consummated or occurring, and whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the City of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Minimum Improvements that the City would have had, had there been no such transfer or change. In the absence of specifib written agreement by the City to the contrary, no such transfer or approval by the City thereof shall be deemed to relieve the Developer, or any other party bound in any way by this Agreement or otherwise with respect to the construction tion of the ]Minimum Improve its, from any of its obligations with respect thereto. (iii) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Development Property governed by this Article VIM shall be in a form reasonably satisfactory to the City. In the event the foregoing conditions are satisfied then the Developer shall be released from its obligation under this Agreement, as to the portion of the Development Property that is transferred, assigned or otherwise conveyed. After issuance of the Certificate of Completion for the Minimum Improvements, the Developer may transfer or assign the part or portion of the Development Property for which the Certificate of Completion has been issued without the prior written consent of the City, provided that the transferee or assignee is bound by all the Developer's obligations hereunder. The Developer shall submit to the City written evidence of any such transfer or assignment, including the transferee or assignee's express assumption of the Developer's obligations under this Agreement. If the Developer fails to provide such evidence of transfer and assumption, the Developer shall remain bound by all it obligations under this Agreement. Section 8.3. Release and Indemnification Covenants. (a) The Developer releasers from and covenants and agrees that the City and the governing body members, officers, agents, servants, and employees thereof shall not be liable for, and agrees to defend, indemnify and llpld harmless the City and the governing body members, officers, agents, servants, and employees thereof against, any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the N inimum Improvements or the Development Property. (b) Except for any willful misrepresentation or any willful or wanton misconduct of the following named parties, the Developer agrees to protect and defend the City and the governing body members, officers, agents, servants, and employees thereof now or forever, and fisher agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from this Agreement, or the transactions contemplated hereby, or the acquisition, construction, installation, ownership, and operation of the Minimum Improvements and the Development Property. Without limitation of the foregoing, the Developer agrees to protect and defend the City and the governing body members, officers, agents, servants, and employees thereof now or forever, and further agrees to hold the aforesaid harmless DJO-163606 18 AL141.29 from any claim, demand, suit, action or other proceeding whatsoever by the State, its agencies, the County, or any other governmental entity seelang recoupment from or repayment by the City of any Tax Increment paid to or expended by the City pursuant to this Agreement or the existence of the TIF District, and to reimburse the City, to the fullest extent permitted by law, for any Tax Increment recouped by or repaid to any of the foregoing entities. (c) The City and the governing body members, officers, agents, servants, and employees thereof shall not be liable for any damage or injury to the persons or property of the Developer or its officers, agents, servants or employees or any other person who may be about the Development Property, the Minimum Improvements due to any act of negligence of any person. (d) All covenants, stipulations, promises, agreements, and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements, and obligations of the City and not of any governing body member, officer, agent, servant, or employee of the City in the individual capacity thereof (e) All covenants, stipulations, promises, agreements, and obligations of the Developer contained herein shall be the joint and several responsibility and liability of the Land Owner and the Lessee. DJG165606 19 AL141-29 ARTICLE IX Events of Default Section 9.1. Events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides), any failure by any party to observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed hereunder, or under the terns of the Developer's Agreement. Section 9.2. Remedies on Default. Whenever any Event ofDef cult referred to in Section 9.1 of this Agreement occurs, the non -defaulting party may exercise its rights under this Section 9.2 after providing thirty days written notice to the defaulting party of the Event of Default, but only if the Event of Default has not been cured within said thirty days or, if the Event of Default is by its nature incurable within thirty days, the defaulting party does not provide assurances reasonably satisfactory to the non - defaulting party that the Event of Default will be cured and will be cured as soon as reasonably possible: (a) Suspend its performance under this Agreement until it receives assurances that the defaulting party will cure its default and continue its performance under this Agreement. (b) Cancel and rescind or terminate this Agreement. (c) Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. In addition, the City may withhold issuance of a Certificate of Completion upon a default by the Developer. Section 9.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the City or Developer in this Agreement is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition tp~ every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the City to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article IX. Section 9.4. No Additional Waiver Implied by One Waiver. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subs�quent breach hereunder. DJG-165606 20 AL141-29 ARTICLE X Additional Provisions Section 10.1. Conflict of Intmesm Cb Representatives_Not brldividually Liable. The City and the Developer, to the best of their respective knowledge, represent and agree that no member, official, or employee of the City shall have any personal its, direct or indirect, in this Agreement, nor shall any such member, official, or employee participate in any decision relating to this Agreement which affects his personal interests or the interests of any corporation, Partnership, or association in which he is, directly or indirectly, interested No member, official, or employee of the City shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach by the City or County or for any amount which may become due to the Developer or successor or on any obligations under the terms of this Agreement. Section 10.2. Equal Em ly lQyment Qprtunity. The Developer, for itself and its successors and assigns, agrees that during the construction of the Muwnum Dmprovements provided for in this Agreement it will comply with all applicable federal, state, and local equal employment and non- discrimination laws and regulations. Section 10.3. Restrictions on Use. The Developer agrees that the Developer, and its successors and assigns, shall not discriminate upon the basis of race, color, creed, sex, or national origin in the sale, lease, or rental, or in the use or occupancy of the Development Property or any improvements erected or to be erected thereon, or any part thereof. Section 10.4. Provisions Not Merced With Deed. None of the provisions of this Agreement are intended to or shall be merged by reason of any deed transferring any interest in the Development Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 10.5. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. R- Section 10.6. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and (a) in the case of the Developer, is addressed to or delivered personally to the Developer at , Albertville, MN 55301; and (b) in the case of the City, is addressed to or delivered personally to the City at City Hall, 5975 Main Avenue NE, P.O. Box 9, Albertville, MN 55301, Attn: City Administrator, or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. DIG-165606 AL141-29 21 Section 10.7. C . This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 10.8. . The City may record this Agreement and any amendments thereto with the Wright County recorder. The Developer shall pay all costs for recording. Section 10.9. Choice of Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be hard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. Dlo-165606 22 AL141-29 IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly aced and the Developer has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. CITY OF ALBERTVHIA MINNESOTA By Its Mayor By Its city Administrates STATE OF MINNESOTA ) SS. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this _ day of , 1999 by and , the and of the City of Albertville, Minnesota, on behalf of the City. Notary Public DJO-165606 23 AL141-29 GEM DEVELOPMENT, LLC By Its By Its STATE OF M[NNESOTA ) ss• COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 1999 by and the and of GEM Development, LLC, a Minnesota limited liability company. Notary Public DJO-163606 AL141-29 LAND OF LAKES STONE, LLC By Its By Its STATE OF MINNESOTA ) ss- COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 1999 by and , the and of Land of Lakes Stone, LLC, a Minnesota limited liability company. Notary Public DJG-165606 AL141-29 25 r t t EX IT A DEVELOPMENT PROPERTY That real property in the Wright County, state of Ninnesota, legally descnbed as follows: Lot 1, Block 1, Gem Business Parr according to the plat of record filed in the Wright County Recorder's Office, Wright County, Minnesota DJO-165606 A AL141.29 CERTIFICATE OF COMPLETION The undersigned hereby certifies that GEM Development, LLC and Land of Lakes Stone, (collectively, LLC the "Developer") have firlly complied with their obligations under Articles III and IV of that document titled "Contract for Private Development" dated , 1999 by and among the City of Albertville and the Developer, with respect to construction of the Minimum, Improvements in accordance with the Construction Plans, and that the Developer is released and forever discharged from its obligations to construct the Minimum Improvements under Articles III and IV. CITY OF ALBERTVILLE, MINNESOTA By Its Mayor By Its City Administrator STATE OF MINNESOTA ) SS. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this _ day of , by , and , the and of the City of Albertville, Minnesota, on behalf of the City. Notary Public w. This document was drafted by: KENNEDY & GRAVEN, Chartered 470 Pillsbury Center Minneapolis, Minnesota 55402 Telephone: 337-9300 DJO-165606 B AL141-29 09/30/99 THU 12:31 FAX 6512241305 (0,45 J 100 Minnesota World Tr 30 East Seventh Street y. St. Paul, MN55101-4901 1800) 950-4666 JURAN & MOODY (651) 291-3028 nDnu�or�or Ioau+sopse�m=.Dac�aro�uasn 1 N, is as r sc a tv rynx: i aM j 1t s s I_xv a x: 1 9 3 9 Far (651) 224-1305 FAX MEMO 612-497-3210 Pages Including This Page 1 DATE: September 30,19" TO: The Mayor and Members of the City Council, City of Albertville Ms. Linda Goeb, City Administrator FROM: Dick Asleson9% RE: JOINT POWERS WATER BOARD PROJECT Request For Item To Be on Albertville City Council Agenda Meeting Date October 4,1999 The Joint Powers Powers Water Board is considering financing certain improvements with the issuance of General Obligation bonds through the City of St. Michael. In turn, the City of Albertville would issue a contingent GO Water Revenue Bond to St. Michael for its defined share. George Eilertson of our office appeared before you at your meeting on September 7 to explain the information in concept form. Further discussions have occurred among the participants including the involved bond lawyers. It is my understanding that the City of Albertville wishes to receive comments from its financial advisor, Springsted incorporated before making any commitments. I first contacted Paul Donna of Springsted about 2 weeks ago. Today, I have delivered to his office various background data. I would anticipate that you will be receiving a call from him this afternoon. I have requested that he prepare for review and discussion by the City Council on Monday (1014) a memo that discusses the GO matter. At your Monday meeting, it would be our request that the City Council adopt a motion that states that thev will support using their General Obligation bonding authority for their defined share, subject to taking final action when the involved bond lawyers prepare the final paperwork. Assuming positiye action on 10/4 (and by Hanover on 10/5), we would then expect St. Michael to take action on October 12 to set a bored sale date of November 9. RGA: ra Enclosures cc: Chris Catlin (Via Fax 651-644-9446) Paul Donna (Via Hand Delivery) 1y,,w PILOT LAND DEVELOPMENT COMPANY August 30, 1999 Mayor & City Council Members Planning Commissioners C/o City Administrator Goeb 5975 Main Avenue NE, Albertville, MN 55301 RE: Highway 118 Trail Impacts to approved Cedar Creek Golf Course plans Dear Mr. Mayor and Members of the Council, City Staff and Planning Commissioners: This letter is our second request that Albertville designate a representative to work with Wright County Highway Department to determine the appropriate side of the Highway to widen a shoulder for a bike path. All discussion we have had with Assistant County Engineer Virgil Hawkins at the DOH is that the City has not yet participated. Currently, there are no agreements by the DOH to allow a trail in any portion of any acquired or dedicated Right of Way (ROW). This position is unacceptable since it does not acknowledge the need for many trail sections to be in the ROW to avoid environmental and safety cost increases around wetlands etc. A secondary, but important reason is that it will be cheaper for Albertville to create a community of trails if you can use a right of way that has been taken from municipal residents for multiple public purposes. It will be cheaper because you will not need to acquire gap easements to assure that trails built, tie together and go some where. There are several Counties, which have created bike trails as part of the shoulder of roadways, most notably Washington County. On the busiest roads they have used off road designs beyond the RI OW to separate trail users, but, when posed vrith emiren-mental or easement purchase obstacles, they have used the ROW. r Since there is still sufficient time, until July 200, the City could be sure that the trail work on 118 is incorporated into the proposed design and bid plans. With all of the talk about trails over the last 2-1/2 years, no one was responsible to add the appropriate design into the Highway 119 upgrade. We would be disappointed if a second opportunity was missed. I The City and their residents would be in a substantially better financial position by creating a maintenance agreement with Wright County to widen the shoulder on 118 to allow improved pedestrian or bike access to the clubhouse and school campus as part of the trails master plan. Without this agreement, you will spend at least 13.00 +.08% or 14.04 a 1 \\Server011don\LMDDEV\LETTERS\PROJECTS\ALBRTVLE\COMMERCfOWY118T 13736 Johnson Street NE - Ham Lake, MN 55304 • 757-9816 - Fax: 757-4094 L lineal foot and waste opportunities for tax and park fee dollars to go further. My preliminary estimates are as follows: • Off road out of ROW trail; 2850 LF (on golf and TH. Landss) @ $14.04 LF $40,014 • Extra wide 9' shoulder @ $8.60 LF + 20% County admin. = $10.31 $29,410 • Berning Exception 430 LF plus slope easements, possible walls $6,037 $4,433 Subtotals $46,051 $33,843 Using County ROW could yield $12,208 savings under this example. In closing, we believe that this series of requested actions allows for a safer long term traffic, drainage and pedestrian system, enables current planning and grading to continue, and allows the conceptual trail plan to be implemented as presented by NAC. Thank you for your understanding. Sincerely, Donald Jens Land Development Director cc: NAC, Pete Carlson @ SEH, Scott Dahlke ® Meyer-Rohlin, Virgil Hawkins @ WCHD J, " \\ServerOlWon\LANDDEW.ETTERS\PROJECTS\ALBRTVLE\COMMERCI\HW Y 118T PILOT LAND DEVELOPMENT COMPANY August 30, 1999 Mr. Virgil Hawkins Assistant County Engineer Public Works Building 1901 Highway 25 North Buffalo, MN 55313-3303 RE. Mehivay 18 Construction design proeress, staging, and communications Dear Mr. Hawkins: I received your voice mail update this morning regarding Highway 18. You informed us that with the remaining construction this year you would not finish to Highway 37 from Monticello. Regarding design in front of Cedar Creek, you may not finish until 2000. It is the current schedule that construction work would likely stop at the intersection of Highway 37 and 18 during the 2000 season in order to construct the intersection changes there. You then projected that in 2001 plans were to bid the entire project to Highway 19 but only construct to the golf course entrance from Highway 37 in one season. Finally, in 2002 your would construct to Highway 19 which would allow for a paved access to Cedar Creek golf course under all construction scenarios. Cedar Creek Golf and the Longshot Bar and Grill would be named on any detour signage package as a business needing consideration for possible interruption. This is the schedule the County Commissioners agreed upon at the 1997-1998 review of a five-year capital improvement plan. Any changes to move the schedule back would not have a major impact on our business growth plan. However, any plans to make the construction schedule a one phase build from Highway 19 to Highway 37 would be considered a major change to the business plans of both townhome marketing and golfing. If any such change were to be formally contemplated, please contact us in writing. Issues which the City of Albertville has on the planning board include bike trails on wider shoulders, additional storm sewer, sanitary sewer and water line crossings of Highway 18 in the area of our toN,,mhome phases immediately west of Ditch 9 (Cedar Creek). Please keep them actively involved in your design progress. Thank you. Sincerely, Donald Jense' Land Development Director Cc: Pete Carlson — SEH Scott Dahlke, Meyer-Rohlin Kent Roessler - Pilot President Linda Goeb -- Albertville Ross Johnson — Cedar Creek Golf 11Server0l\donlLANDDEW.ETTERS\PROJECTSWLBRTVLEICDRCRGLFWahwayl8whedule.doc 13736 Johnson Street NE Ham Lake, MN 55304 - 757-9816 - Fax: 757-4094 10 CITY OF ALBERTVILLE Tax Increment Financing Policy For the purpose of this policy, the "City" shall also mean the Albertville Economic Development Authority (EDA), which serves in conducting various economic development, housing and redevelopment programs and activities within the City of Albertville. SECTION I. GENERAL POLICY. The purpose of this policy is to establish the City's position relating to the use of Tax Increment Financing for private development. This policy shall be used as a guide in processing and reviewing applications requesting Tax Increment assistance. The fundamental purpose of tax increment financing in Albertville is to encourage desirable development and/or redevelopment that would not otherwise occur "but for" the assistance provided through TIF. The City of Albertville shall consider Tax Increment Financing for projects that serve to accomplish the City's goals for housing and economic development as they may change over time. The goals include facilitating projects that would result in the creation of quality jobs (e.g. stable employment and/or attractive wages and benefits) and the attraction, retention and expansion of business and housing options in the City. SECTION II. CITY'S OBJECTIVE FOR THE USE OF TIF. All requests for Tax Increment Financing shall be consistent with the City's Comprehensive Land Use Plan and its components. Only those requests that are comprehensive in nature will be accepted. Fragmented projects that exclude adjacent parcels will not be encouraged. SECTION III. COSTS WHICH QUALIFY FOR TAX INCREMENT FINANCING ASSISTANCE. • Project Design fees including utilities, landscape, architectural and engineering design • Site related work, including permits for site work, earthwork/excavation, soil correction, landscaping, utilities, streets and roads, street/parking lot paving, street/parking lot lighting, curb and gutter, sidewalks • Land acquisition • Special assessments • Legal fees (acquisition, finance, closing) • Soil tests • Environmental studies • Surveys • Park and open space dedication • Interest rate write downs • Relocation assistance • Replacement or clean-up of contaminated soils which would otherwise preclude development • Rehabilitation • Any other costs allowable by Statute SECTION IV. PROJECTS WHICH MAY QUALIFY FOR TAX INCREMENT FINANCING ASSISTANCE. All new TIF projects considered by the City of Albertville must meet each of the following minimum qualifications. All projects will also be evaluated based on their ability to meet the desired qualifications for assistance. However, it should not be presumed that a project meeting any of the qualifications will automatically be approved. Meeting the qualifications creates no contractual rights on the part of any potential developer to have its project approved. Minimum Qualifications: 1. At a minimum, the project shall: (a) Remove blight and/or encourage development or redevelopment in the commercial and industrial areas of the City in order to encourage high quality development or redevelopment and private reinvestment in those areas. (b) Facilitate the development process to achieve development on sites which would not be developed without this assistance. 2. The developer must demonstrate that the project is not financially feasible "but for" the use of tax increment financing. 3. The project must be consistent with the City's Comprehensive Plan and Zoning Ordinances, or required changes to the plan and ordinances must be under active consideration by the City at the time of final TIF application submittAft 4. Prior to approval of a TIF financing plan, the developer shall provide any requested market and financial feasibility studies, appraisals, soil boring, private lender commitment, and/or other information the City or its financial consultants may require in order to proceed with an independent underwriting of the proposal. 5. The developer must provide adequate financial guarantees to ensure the repayment of the TIF loan and completion of the project. These may include, but are not limited to, assessment agreements, letters of credit, personal deficiency guarantees, guaranteed maximum contract, etc. 2 6. Any developer requesting TIF assistance should be able to demonstrate past successful general development capability, as well as specific capability in the type and size of the proposed development. TIF will not be used when the developer's credentials, in the sole judgment of the City, are inadequate due to past tract record relating to completion of projects, general reputation and/or bankruptcy, or other problems or issues considered relevant by the City. 7. The developer should retain ownership of the project at least long enough to complete it, to stabilize its occupancy, to establish the project management, and to initiate repayment of the TIF loan. Desired Qualifications: �> TIF proposals creating a higher ratio of property taxes paid before and after redevelopment will receive priority consideration. A 1:2 ratio of taxes paid before and after redevelopment is desired. 2. TIF proposals will not normally be used to support speculative industrial, commercial, office or housing projects. In general, the developer should be able to provide market data, tenant letters of commitment or finance statements which support the market potential/demand for the proposed project. v 3. TIF will normally be used in a project that involves an excessive land and/or property price. This will normally be where the acquisition price is more than 20% in excess of market value as determined by an independent appraisal of the property. 4. TIF will not be used in projects that would give a significant competitive financial advantage over similar projects in the area due to the use of tax increment subsidies. Developers should provide information to support that TIF assistance will not create such a competitive advantage. Priority consideration will be given to projects that fill an unmet market need. 5. TIF will be provided on a pay-as-you-go basis. Any request for upfront assistance will be evaluated on its own merit in accordance with the City's general financing policies. Projects requesting pay-as-you-go financing will receive priority consideration. 6. TIF will not be used to support projects that place extraordinary demands on City services. Preference will be given to projects that do not place extraordinary demands on City services. 7. TIF will not be used for projects that generate significant environmental problems in the opinion of the local, state or federal governments. Priority will be given to projects tat aim to clean-up existing contaminated sites and would facilitate the location of an industry or business that has an environmentally sound tract record, or meet a housing need in the City. Preference will be given to projects that meet good public policy criteria as determined by the City Council, including: • High project quality (e.g. sound architectural design, quality construction and materials, extraordinary landscaping) • Projects that are in accord with the Comprehensive Plan, Zoning Ordinance, Strategic Plan and other redevelopment plans of the City • Projects that provide significant improvement to surrounding land use, the neighborhood, and/or the City • Projects that provide a significant increase in tax base • Projects that provide significant new, or retained, employment • Projects that meet financial feasibility criteria established by the City • Projects that provide the highest and best desired use for the property • Projects consistent with Livable Communities principles SECTION V. MAXIMUM SUBSIDY. All requests for Tax Increment Financing shall be subject to a subsidy cap. The subsidy shall be based on a percentage of the project's finished market value (for tax purposes) as determined by the County Assessor. Except for redevelopment projects which may require more assistance than other projects, the Tax Increment subsidy shall not exceed 15% of the project's finished value. Under extraordinary circumstances, the City reserves the right to increase the subsidy level. SECTION VI. APPLICATION FEE. All persons and companies requesting Tax Increment Financing shall be required to pay a non-refundable application fee of $2,000. This fee is intended to cover the City's legal, financial and administrative analysis involved with processing the application. The applicant shall also deposit a sum equal to ten percent (10%) of the tax increment requested up to a maximum of $7,500 with the City to cover its attorney's and consultants' costs incurred as part of amending or establishing a TIF district, drafting and A =4f negotiating a development agreement, and conducting any fiscal analysis that may be 'TZF required to meet the requirements of utilizing TIF. If additional expenses are incurred beyond the $7,500, prior to the execution of a development agreement, the City shall ' notify the applicant in writing and the applicant will be required to deposit additional funds upon notice. If the project is approved and the applicant proceeds with the project, the City shall reimburse the applicant any unused portion of the deposit as of the date of execution of the development agreement. If the applicant does not proceed with the project, the City shall reimburse the applicant for the unused portion of the deposit as of the date that the City is notified in writing that the applicant desires to withdraw its application. Upon receipt of a completed Tax Increment Financing application, and upon payment of the application fee, the request for assistance shall be reviewed by staff consisting of the City Administrator, the City Engineer, the City Attorney, the City Planner, and the Financial Consultant. A recommendation from staff will be made to the City Council or the Economic Development Authority. Following a public hearing as required by Minnesota Statutes, the City Council shall approve or deny the Tax Increment Financing request. The City Council reserves the right to approve or reject each request. 66 �3) CITY OF ALBERTVILLE RESOLUTION # 1999-26 A RESOLUTION APPROVING THE WETLAND REPLACEMENT PLAN FOR THE ALBERTVILLE CROSSING PROJECT TO FILL 1.17 ACRES OF WETLAND TO FACILITATE THE CONSTRUCTION OF A CITY STREET BE IT RESOLVED by the City Council of the City of Albertville, Minnesota, as follows: 1. That the City of Albertville is the Local Government Unit (ALGU-) responsible for making exemptions and approving replacement plans. 2. That the City of Albertville, by and through its City Council, sitting as the Local Government Unit (ALGU_), adopts the following finds of fact regarding the application by the City of Albertville to fill 1.17 acres of wetland to facilitate the construction of 57th Street, Lambert Avenue, and Lachmahn Avenue: That the application submitted to fill wetlands on the described site satisfies the Minnesota Wetland Conservation Act procedural guidelines for: 1. Pre -Application Communications (Minnesota Rules 8420.0510) 2. Sequencing (Minnesota Rules 8420.0520) 3. Replacement Plan Components (Minnesota Rules 8420.0530) 4. Wetland Replacement Standards (Minnesota Rules 8420.0550) 3. That the City of Albertville, as ALGU= has fully exercised its responsibilities in ensuring the compliance of the application with the described rules. In addition, it has satisfied application Notification Procedures (Minnesota Rules 8420.0230). ADOPTED BY THE CITY COUNCIL OF THE CITY OF ALBERTVILLE THIS 7TH DAY OF JUNE,1999. John Olson, Mayor ATTEST: Administrator/Clerk APPLICATION FOR TAX INCREMENT FINANCING CITY OF ALBERTVILLE, MINNESOTA Business Name Address Telephone Officers Contact Person Title Business Form (Corporation, Partnership, etc. Years in Operation Sales/Revenues $ Brief Description of Business, Principal Products, etc. Has applicant ever filed for bankruptcy? ❑ Yes ❑ No If yes, provide details on separate page(s). Has applicant ever defaulted on any bond or mortgage commitment? ❑ Yes ❑ No If yes, provide details on separate page(s). Does applicant have commitments for conventional fmancing for the project? ❑ Yes ❑ No Ulaoon lio+ +hrnn iin�nninrr rnfarnnnne• 1. 2. 3. Name Address Contact Phone Name and address of applicant's legal counsel and accountant: C:\My Documents\Application - Tax Increment Financing.doc Page I of 4 APPLICATION FOR TAX INCREMENT FINANCING CITY OF ALBERTVILLE, MWNESOTA ' 1i1 1 '0,CJ 1 Describe Project Location Site plan attached? ❑ Yes ❑ No Type of Project (check box below): Commercial Industrial Residential New Construction Expansion Rehab Current Number of Employees Current PayToll Number of Jobs Created Number of Jobs Retained Revised Payroll UO C g J . Land Acquisition $ Site Development $ - Construction $ Machinery & Equipment $ Architectural and Engineering Fees $ Le al Fees $ Interest During Construction $ Debt Service Reserve $ Contingencies $ TOTAL', C:VAIy Documents\Application - Tax Increment Financing.doc Page 2 of 4 APPLICATION FOR TAX INCREMENT FINANCING CITY OF ALBERTVILLE, MINNESOTA Conventional Loan $ Equity $ SBA Loan $ Revenue Bond $ Tax Increment Financing $ Grants $ Other $ TOTAL Name and address of architect, engineer and contractor for project: Target Dates: Start of Construction: Construction Completed: The undersigned, (a) (the) of applicant, hereby represents and warrants to the City that (he)(she) has carefully reviewed this application, and that the statements and information contained herein and submitted herewith are accurate and complete to the best of the undersigned's knowledge and belief. Applicant Its Date The City reserves the right to require additional information and supporting data from the applicant after the filing of this Application. C:\My DocumentsWpplication - Tax Increment Financing.doc Page 3 Of 4 APPLICATION FOR TAX INCREMENT FINANCING CITY OF ALBERTVILLE, MINNESOTA 1. Site Plan Consistent with Submittal Requirements of the Building and Zoning Department. 2. Audited Financial Statements or Tax Returns from the Past Two Years. 3. Current Financial Statement 4. Three Year Pro Forma Analysis 5. Other Information Related to the Project 6. Application Fee CAMy Documents\Application - Tax Increment Financing.doc Page 4 of 4 r OCT-,04-SS 13:23 FROM:SPRINGSTED INC !l 85 E. SEVENTH PLACE, SUrrE 100 SAINT PAUL, MN 55101-28$7 65I-M-3000 FAX 65I-M-3002 October 4, 1999 Mayor John Olson and City Council Members Ms. Linda Goeb, City Administrator Mr. Mike Couh, City Attorney City of Albertville 5975 Main Avenue NE P.O. Box 9 Albertville, MN 55301-0009 ID;651 223 3083 PAGE 2/3 SPRINGSxED Public 1'inante Advisors 0 Re: Financing Water Utility Improvements for the Joint Powers Water Board of Albertville. Hanover and St. Michael (JPB) Dear Mayor Olson and Council Members: The City has asked Springsted to briefly review the potential impact(s) the above mentioned financing may have on the City of Albertville. This memo draws upon information submitted to Springsted by the JPB's financial advisor. It is our understanding the JPB's preferred method of financing approximately $5,000,000 of water improvements is through the issuance of General Obligation Revenue Bonds through the City of St. Michael. The general obligation pledge is additional security behind the net revenues of the JPB's water system for repayment of debt service. In order for the City of St. Michael to share" in the liability of the general obligation pledge with the member communities, a number of underlying agreements will be entered into including the assignment of a general obligation revenue note. The cities of Hanover and Albertville would each "issue" a general obligation revenue note to the City of St. Michael for their respective share of the project secured by their respective full faith and credit pledge. We see a few key points the City needs to be aware of when considering the general obligation pledge: Potenfial Budget Impact — Like all general obligation issues of the City, the City of Albertville is ultimately responsible for its share of the debt service. Under this financing arrangement, the City would be required to fund its share of the debt service on the City of St. Michael's $5,000,000 G.O- Revenue Bond should JPB's water revenue funds and reserves be insufficient. The City will be required to make up any shortfall from other funds of the City including a property tax levy. Currently, the City's share is identified at approximately 33% or $1,650,000. Using an estimated debt service schedule prepared by JPB's financial advisor, the maximum annual exposure to the City of Albertville, based on a 33% share, would be approximately $137,000. SAINT PAUL, SIN * AUNNRAPOUS, W • BROOKFFU D,WI • OVERLAND PARK, KS - WASHING, -CON. DC • IDES I+1OTM, IA OCT-04-99 13:24 FROM=SPRINGSTED INC 113=651 223 3093 PAGE 3/3 City of Albertville, Minnesota October 4, 1999 Page 2 It is our understanding the pro-rata share respective users but the procedure for reviewed. is proposed to be subject to change based on adjusting the City's G.O. liability is still being If a tax levy is necessary, the levy will be qualified as a "special levy" and fall outside of the current levy limits. Although a full budget impact on the City of Albertville is unlikely, a slowdown in development will reduce the JPB's water system revenues available to pay debt service on the bonds. We have not reviewed any cash flow to determine the likelihood of a budget impact. Debt. -Limit Impact — The general obligation revenue note issued by the City of Albertville to the City of St. Michael will not count against the City's statutory debt limit. • Administrative Impact — After the bonds are issued, given the current organization of the JPB and representation from each member city, direct administrative impact would only result if the cities were called upon for funds to make a debt service payment. We hope this information is helpful. Please do not hesitate to call if you have any questions. Sincerely, Paul . Donna, CIPFA Vice President emc i JOINT POWERS WATER BOARD CAPITAL PROEJCTS FUNDING SUMMARY PROPOSED SOURCES AND USES OF FUNDS (Subject to Change) 1 SOURCES OF FUNDS 2 Bond Issue Par Amount 5,005,000 3 JPWB Existing Funds 2,066,400 4 Construction Account Investment Earnings 97,500 5 Total 7,168, 900 6 USES OF FUNDS 7 Water Treatment Plant 3,997,293 8 Well No. 4 247,025 9 Generator 70,000 10 Booster Station 130,000 11 St. Michael Tower 1,771,000 12 Subtotal 6,215,318 13 Interest During Construction 358925 14 Debt Service Reserve 435,000 15 Discount Allowance @ 1.96% of Par 98,098 16 Costs of Bond Issuance 60,000 17 Rounding Amount 1,559 18 Total 7,168,900 JPWB07d - 03 Page 1 10/4/99 CITY OF ALBERTIVILLE, MINNESOTA GENERAL OBLIBATION BONDING PARTICIPATION FOR THE JOINT POWERS WATER BOARD PROJECT 1 Estimated maximum Albertville Obligation - See Page 5 143,863 2 Assumes Albertville's Share is 33% 3 Payable 1999 City of Albertville Taxable Tax Capacity 1,459,274 4 Albertville's Tax Rate to fund 100% of its share of 9.859% 5 a 100% JPWB Payment Default (Line 1 / Line 3) 6 Tax Rate for a 20% JPWB default (Line 4 * .20) 1.972% 7 Tax Capacity of a $150,000 Home 1,981 8 Annual Dollar Impact to a $150,000 Home (Line 6 * Line 7) $39.07 JPWB07d - 02 Page 2 10/4/99 CITY OF ST. MICHAEL, MINNESOTA GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 1999 DEBT SERVICE SCHEDULE SEMI INTEREST ANNUAL ANNUAL DATE PRINCIPAL RATE INTEREST PYMT OBLIGATION YEAR 2/1/00 71,785.00 71,785.00 215,355.00 2000 8/1/00 143,570.00 143,570.00 287,140.00 2001 211 /01 143.570.00 143, 570.00 287,140.00 2002 8/1/01 143,570.00 143,570.00 384,840.00 2003 2/1/02 143,570.00 143.570.00 433,897.50 2004 8/1102 143,570.00 143,570.00 431,415.00 2005 2/1/03 100,000 4.60% 143,570.00 243,570.00 433,410.00 2006 8/1 /03 141,270.00 141,270.00 434,745.00 2007 2/1/04 155,000 4.70% 141,270.00 296,270.00 435,400.00 2008 8/1/04 137,627.50 137,627.50 435,355.00 2009 2/1/05 160,000 4.80% 137.627.50 297,627.50 429,722.50 2010 8/1/05 133,787.50 133,787.50 433,350.00 2011 211/06 170,000 4.90% 133,787.50 303,787.50 435,947.50 2012 8/1/06 129,622.50 129,622.50 432,625.00 2013 2/1/07 180,000 5.00% 129,622.50 309,622.50 433,355.00 2014 8/1 /07 125,122.50 125,122.50 428,115.00 2015 2/1/08 190,000 5.10% 125,122.50 315,122.50 431,730.00 2016 8/1/08 120,277.50 120,277.50 429,025.00 2017 2/1/09 200,000 5.20% 120,277.50 320,277.50 429,962.50 2018 8/1/09 115,077.50 115,077.50 424,510.00 2019 211/10 205,000 5.30% 115,077.50 320,077.50 422,630.00 2020 8/1/10 109,645.00 109.645.00 423,970.00 2021 2/1/11 220,000 5.40% 109,645.00 329,645.00 423,325.00 2022 8/1 /11 103,705.00 103,705.00 2/1112 235,000 5.50% 103,705.00 338,705.00 8/1/12 97,242.50 97,242.50 2/1/13 245,000 5.60% 97,242.50 342,242.50 8/1/13 90,382.50 90,382.50 2/1/14 260,000 5.70% 90,382.50 350,382.50 8/1/14 82,972.50 82,972.50 2/1/15 270,000 5.80% 82,972.50 352,972.50 8/1115 75,142.50 75,142.50 211 /16 290,000 5.90% 75,142.50 365,142.50 8/1/16 66,587.50 66,587.50 2/1/17 305,000 6.00% 66,587.50 371,587.50 8/1/17 57,437.50 57,437.50 2/1/18 325,000 6.10% 57,437.50 382,437.50 8/1/18 - 47,525.00 47,525.00 2/1/19 340,000 6.20% 47,525.00 387,525.00 8/1/19 36,985.00 36,985.00 2/1/20 360,000 6.30% 36,985.00 396,985,00 8/1/20 25,645.00 25,645.00 2/1/21 385,000 6.40% 25,645.00 410,645.00 8/1 /21 13,325.00 13,325.00 2/1/22 410,000 6.50% 13,325.00 423,325.00 TOTALS 5,005,000 4,351,965.00 9,356,965.00 9,356,965.00 Dated Date: 11/1/99 Bond Years: 73,176.25 435,948 = Max Close Date: 11/1/99 Average Life: 14.6206 Annual 1st Interest: 2/1/00 Average Coupon: 5.9472% D/S Discount: 1.96% Net Interest Cost: 6.0813% Page 3 JPWB07d Interest Rates Are Estimated Above The Existing Market 10/4/99 CITY OF ST. MICHAEL, MINNESOTA GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 1999 DEBT SERVICE SCHEDULE 60.00% St. Michael Share SEMI INTEREST ANNUAL ANNUAL DATE PRINCIPAL RATE INTEREST PYMT OBLIGATION YEAR 211 /00 0 43,071.00 43,071.00 129,213.00 2000 8/1 /00 0 86,142.00 86,142.00 172, 284.00 2001 2/1 /01 0 86,142.00 86,142.00 172, 284.00 2002 8/1 /01 0 86,142.00 86,142.00 230, 904.00 2003 2/1 /02 0 86,142.00 86,142.00 260, 338.50 2004 8/1 /02 0 86,142.00 86.142.00 258,849.00 2005 2/1 /03 60,000 4.60% 86,142.00 146,142.00 260,046.00 2006 8/1/03 0 84,762.00 84,762.00 260,847.00 2007 2/1/04 93,000 4.70% 84,762.00 177,762.00 261,240.00 2008 8/1/04 0 82,576.50 82,576.50 261,213.00 2009 2/1/05 96,000 4.80% 82,576.50 178,576.50 257,833.50 2010 8/1 /05 0 80,272.50 80,272.50 260,010.00 2011 2/1/06 102,000 4.90% 80.272.50 182,272.50 261,568.50 2012 8/1/06 0 77,773.50 77,773.50 259,575.00 2013 2/1/07 108,000 5.00% 77,773.50 185,773.50 260,013.00 2014 8/1/07 0 75,073.50 75,073.50 256,869.00 2015 2/1/08 114,000 5.10% 75,073.50 189,073.50 259,038.00 2016 8/1 /08 0 72,166.50 72,166.50 257,415.00 2017 2/1 /09 120,000 5.20% 72,166.50 192,166.50 257,977.50 2018 8/1/09 0 69,046.50 69,046.50 254,706.00 2019 2/1/10 123,000 5.30% 69,046.50 192,046.50 253,578.00 2020 8/1/10 0 65,787.00 65,787.00 254,382.00 2021 2/1/11 132,000 5.40% 65,787.00 197,787.00 253,995.00 2022 8/1/11 0 62,223.00 62,223.00 2/1/12 141,000 5.50% 62,223.00 203,223.00 8/1/12 0 58,345.50 58,345.50 2/1/13 147,000 5.60% 58,345.50 205,345.50 8/1/13 0 54.229.50 54,229.50 2/1/14 156,000 5.70% 54,229.50 210,229.50 8/1/14 0 49,783.50 49,783.50 2/1/15 162,000 5.80% 49,783.50 211,783.50 8/1/15 0 45,085.50 45,085.50 2/1/16 174,000 5.90% 45,085.50 219,085.50 8/1/16 0 39,952.50 39,952.50 2/1117 183,000 6.00% 39,952.50 222,952.50 8/1/17 0 34,462.50 34,462.50 2/1/18 195,000 6.10% 34,462.50 229.462.50 8/1/18 0 28,515.00 28,515.00 2/1/19 204,000 6.20% 28,515.00 232,515.00 811119 0 22,191.00 22,191.00 2/1 /20 216,000 6.30% 22,191.00 238,191,00 8/1/20 0 15.387.00 15,387.00 2/1/21 231,000 6.40% 15,387.00 246,387.00 8/1/21 0 7,995.00 7,995.00 2/1/22 246,000 6.50% 7,995.00 253,995.00 TOTALS 3,003,000 2,611,179.00 5,614,179.00 5,614,179.00 Dated Date: 11/1/99 Bond Years: 43,905.75 261,569 = Max Close Date: 11/1/99 Average Life: 14.6206 Annual 1st Interest: 2/1/00 Average Coupon: 5.9472% D/S Discount: 1.96% Net Interest Cost: 6.0813% Page 4 JPWB07d Interest Rates Are Estimated Above The Existing Market 10/4/99 CITY OF ST. MICHAEL, MINNESOTA GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 1999 DEBT SERVICE SCHEDULE 33.00% Albertville Share SEMI INTEREST ANNUAL ANNUAL DATE PRINCIPAL RATE INTEREST PYMT OBLIGATION YEAR 2/1/00 0 23,689.06 23,689.06 71,067.18 2000 8/1/00 0 47,378.12 47,378.12 94,756.24 2001 211/01 0 47,378.12 47,378.12 94,756.24 2002 8/1/01 0 47,378.12 47,378.12 126,997.24 2003 2/1/02 0 47,378.12 47,378.12 143,186.21 2004 8/1/02 0 47,378.12 47,378.12 142,366.98 2005 2/1/03 33,000 4.60% 47,378.12 80,378.12 143,025.33 2006 8/1/03 0 46,619.12 46,619.12 143,465.88 2007 2/1/04 51,150 4.70% 46,619.12 97,769.12 143,682.03 2008 8/1/04 0 45,417.09 45,417.09 143,667.18 2009 2/1/05 52,800 4.80% 45,417.09 98,217.09 141,808.45 2010 8/1 /05 0 44,149.89 44,149.89 143,005.52 2011 2/1 /06 56,100 4.90% 44,149.89 100,249.89 143,862.69 2012 8/1/06 0 42,775.44 42,775.44 142,766.26 2013 2/1/07 59,400 5.00% 42,775.44 102,175.44 143,007.16 2014 8/1 /07 0 41,290.44 41,290.44 141,277.96 2015 2/1/08 62,700 5.10% 41,290.44 103,990.44 142,470.91 2016 8/1/08 0 39.691.59 39,691.59 141,578.26 2017 211/09 66,000 5.20% 39,691.59 105,691.59 141,887.63 2018 8/1/09 0 37,975.59 37,975.59 140,088.30 2019 211/10 67,650 5.30% 37,975.59 105,625.59 139,467.90 2020 8/1 /10 0 36,182.86 36,182.86 139, 910.10 2021 2/1111 72,600 5.40% 36,182.86 108,782.86 139,697.25 2022 8/1/11 0 34,222.66 34,222.66 2/1/12 77,550 5.50% 34,222.66 111,772.66 8/1/12 0 32.090.03 32,090.03 2/1/13 80,850 5.60% 32,090.03 112,940.03 8/1/13 0 29,826.23 29,826.23 2/1/14 85,800 5.70% 29,826.23 115,626.23 8/1/14 0 27,380.93 27,380.93 2/1/15 89,100 5.80% 27,380.93 116,480.93 8/1/15 0 24,797.03 24,797.03 2/1/16 95,700 5.90% 24,797.03 120,497.03 8/1/16 0 21,973.88 21,973.88 2/1/17 100,650 6.00% 21,973.88 122,623.88 8/1/17 0 18,954.38 18,954.38 2/1/18 107,250 6.10% 18,954.38 126,204.38 8/1/18 0 15,683.25 15,683.25 211/19 112,200 6.20% 15,683.25 127,883.25 8/1/19 0 12,205.05 12,205.05 2/1/20 118,800 6.30%. 12.205.05 131,005.05 8/1/20 0 8,462.85 8,462.85 2/1/21 127,050 6.40% 8,462.85 135,512.85 8/1/21 0 4,397.25 4,397.25 2/1/22 135,300 6.50% 4,397.25 139,697.25 TOTALS 1,651,650 1,436,148.90 3,087,798.90 3,087,798.90 Dated Date: 11/1/99 Bond Years: 24,148.16 143,863 = Max Close Date: 11/1/99 Average Life: 14.6206 Annual 1st Interest: 2/1/00 Average Coupon: 5.9472% D/S Discount: 1.96% Net Interest Cost: 6.0813% Page 5 JPWB07d Interest Rates Are Estimated Above The Existing Market 10/4/99 CITY OF ST. MICHAEL, MINNESOTA GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 1999 DEBT SERVICE SCHEDULE 7.00% Hanover Share SEMI INTEREST ANNUAL ANNUAL DATE PRINCIPAL RATE INTEREST PYMT OBLIGATION YEAR 2/1/00 0 5,024.96 5,024.96 15,074.88 2000 8/1/00 0 10,049.92 10,049.92 20,099.84 2001 2/1/01 0 10,049.92 10,049.92 20,099.84 2002 8/1/01 0 10,049.92 10,049.92 26,938.84 2003 2/1/02 0 10,049.92 10,049.92 30,372.86 2004 8/1/02 0 10,049.92 10,049.92 30,199.08 2005 2/1/03 7,000 4.60% 10,049.92 17,049.92 30,338.73 2006 8/1/03 0 9,888.92 9,888.92 30,432.18 2007 2/1/04 10,850 4.70% 9,888.92 20,738.92 30,478.03 2008 8/1/04 0 9,633.94 9,633.94 30,474.88 2009 2/1 /05 11,200 4.80% 9,633.94 20,833.94 30,080.60 2010 8/1/05 0 9,365.14 9,365.14 30,334.52 2011 211/06 11,900 4.90% 9.365.14 21,265.14 30,516.34 2012 8/1/06 1 0 9,073.59 9,073.59 30,283.76 2013 2/1/07 12,600 5.00% 9,073.59 21,673.59 30,334.86 2014 8/1107 0 8,758.59 8,758.59 29,968.06 2015 2/1/08 13,300 5.10% 8,758.59 22,058.59 30,221.11 2016 8/1/08 0 8,419.44 8,419.44 30,031.76 2017 2/1/09 14,000 5.20% 8,419.44 22,419.44 30,097.38 2018 8/1/09 0 8,055.44 8,055.44 29,715.70 2019 2/1/10 14,350 5.30% 8,055.44 22,405.44 29,584.10 2020 8/1/10 0 7,675.16 7,675.16 29,677.90 2021 211/11 15,400 5.40% 7.675.16 23,075.16 29,632.75 2022 8/1/11 0 7,259.36 7,259.36 2/1/12 16,450 5.50% 7,259.36 23,709.36 8/1/12 0 6,806.98 6,806.98 2/1/13 17,150 5.60% 6,806.98 23,956.98 8/1/13 0 6,326.78 6,326.78 2/1/14 18,200 5.70% 6,326.78 24,526.78 8/1/14 0 5,808.08 5,808.08 2/1/15 18,900 5.80% 5,808.08 24,708.08 8/1/15 0 5,259.98 5,259.98 2/1/16 20,300 5.90% 5,259.98 25,559.98 8/1/16 0 4,661.13 4,661.13 2/1/17 21,350 6.00% 4,661.13 26,011.13 8/1/17 0 4,020.63 4,020.63 2/1/18 22,750 6.10% 4,020.63 26,770.63 8/1/18 0 3,326.75 3,326.75 2/1/19 23,800 6.20% 3,326.75 27,126.75 8/1/19 0 2,588.95 2,588.95 211/20 25,200 6,30% 2,588.95 27,788.95 8/1/20 0 1,795.15 1,795.15 2/1/21 26,950 6.40% 1,795.15 28,745.15 8/1 /21 0 932.75 932.75 2/1/22 28,700 6.50% 932.75 29,632.75 TOTALS 350,350 304,638.00 654,988.00 654,988.00 Dated Date: 11/1/99 Bond Years: 5,122.34 30,516 = Max Close Date: 11/1/99 Average Life: 14.6206 Annual 1st Interest: 2/1/00 Average Coupon: 5.9472% D/S Discount: 1.96% Net Interest Cost: 6.0813% Page 6 JPWB07d Interest Rates Are Estimated Above The Existing Market 10/4/99