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2006-05-01 CC Agenda Packet1 rt • . i Ufa. ALBERTVILLE CITY COUNCIL AGENDA MAY 1, 2006 7:00 PM 1. PLEDGE OF ALLEGIANCE 2. CALL TO ORDER — ROLL CALL — ADOPT AGENDA 3. MINUTES A. April 17, 2006 City Council minutes (pgs. 3-9) B. April 25, 2006 City Council Workshop minutes (pgs. 11-13) 4. CITIZEN FORUM — (10 Minute Limit) 5. CONSENT AGENDA A. Approve payment of claims check numbers 22761 to 22803 (pgs. 15-19) B. Approve Bolton and Menk, Inc. recommendation to Release the Security Escrow Deposit for Old Castle Glass in the amount of $20,000 (pg. 21) C. Approve STMA Women of Today Application to Conduct Excluded Bingo on Saturday, June 10, 2006 to be held at the St. Alberts Parish Center D. Approve Foxtails Application to Conduct Gambling — Sale of Raffle Tickets Friday, June 9, Saturday, June 10, and Sunday, June 11, 2006 at the Cedar Creek Golf Course Clubhouse with the drawing to be held on Saturday, August 19, 2006 6. ACTION ON PULLED CONSENT ITEMS 7. PUBLIC HEARING A. 52nd Street NE Improvements 8. DEPARTMENT BUSINESS A. Public Works — Parks Department 1). Request for Council Action to Approve the Purchase of new Playground Equipment and a 12-foot Gazebo for the Four Seasons Park within Albertville at a cost not to exceed $45,159 with fund from Park Dedication fees (pg. 23) 2). Request for Council Action to Approve Contract with Allied Blacktop Company to do the Crack filling Project throughout various streets within Albertville at a • cost not to exceed $4,900 with funds from Streets Maintenance and Repair (pg. 25) B. Finance Department • 1). Monthly Accounts Receivable Update (pgs. 27-28) 2). Project Status Update (pg. 29) C. Planning and Zoning 1). Zoning Ordinance — Model Homes (pgs. 31-33) D. Engineering E. Legal F. Administration 1). Railroad Right of Way Purchase (see appraisal) (pg. 35) 9. CLOSED SESSION (Edina Development Litigation Update) 10. ADJOURNMENT • 2 A�Ibcrtvillc Snml Town LWktg. ft Gly uN. ALBERTVILLE CITY COUNCIL April 17, 2006 Albertville City Hall 7:00 PM PRESENT: Mayor Don Peterson, Council members John Vetsch, LeRoy Berning, Ron Klecker, and Tom Fay, City Attorney Mike Couri, City Planner Al Brixius, City Engineer Mark Kasma, Assistant City Engineer Adam Nafstad, City Administrator Larry Kruse, Finance Director Tina Lannes, Public Works Supervisor Tim Guimont, and City Clerk Bridget Miller ABSENT: none Mayor Peterson called the Albertville City Council meeting to order at 7:00 p.m. followed by the Pledge of Allegiance. • ADOPT AGENDA MOTION BY Council member Klecker, seconded by Council member Berning to approve the agenda as amended and on file in the office of the City Clerk. Motion carried unanimously. Add: Rosetti's Pizza & Pasta Renewal On -Sale Wine and 3.2% Malt Liquor License MINUTES MOTION BY Council member Berning, seconded by Council member Klecker to approve the April 3, 2006 regular City Council minutes and April 5, 2006 special City Council minutes as presented and on file in the office of the City Clerk. Motion carried unanimously. CONSENT AGENDA MOTION BY Council member Vetsch, seconded by Council member Fay to approve the consent agenda pulling check number 22727 and items F., G., H., I., and J wanting staff to explain the reason for some of the proposed fund transfers. Motion carried unanimously. A. Approve payment of claims check numbers 22717 to 22754 B. Approve S.E.H.'s recommendation for Application for Payment No.I 1 for WWTP to Gridor Construction in the amount of $121,719.75 • C. Approve Bonestroo's recommendation for Application for Payment No. 2 for City Hall Construction to Brietbach Construction in the amount of $405,270 3 D. Approve the Application to Lawful Gambling LG220 Application for Exempt Permit for Bingo, Raffles, Paddlewheels, Pull -Tabs, and Tipboards to be held on July 16, 2006 is at the St. Albert Parish Center E. Approve Application for 3.2% Malt Beverage Liquor License for the Albertville Lions for the Lioness Spaghetti Dinner to be held on May 18, 2006 at the St. Albert Parish Center F. Approve Resolution No. 2006-xx entitled (Resolution Authorizing to Write Off the 1998 STMA Ice Arena Short -Term Loan) G. Approve Resolution No. 2006-xx entitled (Resolution Closing Certain Funds) H. Approve Resolution No. 2006-xx entitled (Resolution Approving Reclassification of the Park Fund from a Special Revenue Fund to a Capital Fund) I. Approve Resolution No. 2006-xx entitled (Resolution Approving Reclassification of the Sewer Access Charges from a Special Revenue Fund to a Capital Fund) J. Approve Resolution No. 2006-xx entitled (Resolution Approving Reclassification of the Water Access Charges from a Special Revenue Fund to a Capital Fund) K. Approve Application for 3.2% Malt Beverage Liquor License for the St. Albert Parish Center for the St. Albert Parish Festival to be held on July 16, 2006 at the St. Albert Parish Center L. Approve Bolton and Menk developing a concept plan for a small parking lot on the south side of City Hall on an hourly rate with a total amount at approximately $500 M. Approve Application for 3.2% Malt Beverage Liquor License for the Albertville Lions for the Albertville Friendly City Days to be held on June 9, June 10, and June 11 of 2006 at the Lions Pavilion Shelter located within Central Park N. Approve Application for 3.2% Malt Beverage Liquor License for the Knights of • Columbus, Council No. 4174 for the Albertville Friendly City Days to be held on June 9, June 10, and June 11 within the Albertville Central Park area ACTION ON PULLED CONSENT ITEMS Check Number 22727 MOTION BY Council member Berning, seconded by Council member Fay to approve check number 22727. Motion carried unanimously. Items F, G, H, and I. Regarding items F, G, H, I and J the auditor explained that the State Auditors have been looking Cities that have significant reserves. Albertville's past method of coding some revenue funds which are really capital project funds distorts those reserve numbers making it look like Albertville has more reserves than necessary. In actuality, the specific Revenue Funds can not be used for General Fund operations thus the need to change their classification. MOTION BY Council member Vetsch, seconded by Council member Klecker to approve Items F., G., H., I., and J. Motion carried unanimously. U M • 2005 AUDIT — Kern, DeWenter, Viere (KDV) Jennifer Thienes, representing KDV, reported that the 2005 Audit for the City of Albertville has been completed. Thienes reviewed the Audit Report and Management letter in detail complimenting staff on the significant accounting and fiscal management changes that has taken place over the last two years. Thienes stated the City is in sound financial condition and most accounting procedures and fund balances appear to be trending positively. The Council did not have any questions for Thienes and thanked KDV for their service to the City. MOTION BY Council member Vetsch, seconded by Council member Vetsch to adopt the 2005 Audited Financial Statements and the 2005 Management Letter prepared by Kern, DeWenter, Viere. Motion carried unanimously. DEPARTMENT BUSINESS PUBLIC WORKS DEPARTMENT Parks Department — Request for Council Action to Authorize Installation of a Fence Public Works Supervisor Guimont explained to the Council that since the original consideration was to install a 6-foot fence. After further review, staff is recommending installation of a 4-foot fence. A quote has been received from D & H Fence of $2,895. MOTION BY Council member Vetsch, seconded by Council member Berning to authorize the installation of a 4-foot fence at the Villas Park located within Albertville at a cost not to exceed $2,895 with funds from Parks Dedications, which has an estimated unreserved balance of $189,000. Motion carried unanimously. Public Works Department — Request for Council Action to approve a Dartial 50th Street NE Overlay Proiect PW Supervisor Guimont stated that the City of St. Michael brought it to the City's attention that 50th Street NE, just east of Barthel Industrial Drive NE to approximately Main Avenue NE, should have a 3" overlay. The reason for the overlay is due to the construction on Hwy. 241 and detouring the traffic through Albertville along Main Avenue NE and 50th Street NE. MOTION BY Council member Berning, seconded by Council member Klecker to approve a partial 50th Street NE Overlay Project at a cost not to exceed $10,000 using funds from Street Overlay Account, which has $125,000 funds available in the budget. Motion carried unanimously. PLANNING AND ZONING Downtown Parking Study City Planner Brixius reported that the City staff will be holding an Open House on Thursday, April 20 at 6:30 p.m. to discuss the downtown parking concept with the residents and business • owners. 5 ENGINEERING • Flood Study Update William Douglas, Bolton and Menk, Inc. Tech Engineer informed the Council that staff has conducted a 2006 County Ditch No. 9 Flood Study, which is available for Council's review. Mr. Douglas noted that over the past several years there has been flooding issues within Albertville, particularly in the south-west corner. It is staff s understanding that the Council desires to review opportunities to improve or resolve the situation to prevent future occurrences of similar magnitudes from causing similar damage, which was created during a 100-year, 24- hour rainfall. Mr. Douglas stated that Bolton and Menk, Inc. conducted several interviews with city staff and residents, along with other outside members to understand the history of the flood situation. The findings reported by Bolton and Menk, Inc. took into account the background history of what may have caused the flooding along County Ditch No. 9. Factors such as building elevations, storage capacity of ponds/wetlands, and ditch backwater were included in the flood anaylsis. It was discovered that there were two major changes to infrastructure in County Ditch No. 9, which occurred in 2001 and 2005. In 2001, the existing 10-foot by 8-foot box culvert was replaced with a 12-foot by 8-foot box culvert at County Road 18. Then in 2005, the existing 54- inch diameter culvert was replaced with a 5-foot by 8-foot box culvert at County Road 119. These infrastructure changes may have had some adverse effects to the flow of waters through the Albert Villas development. 0 Mr. Douglas went on to explain that the original drainage calculations for Albert Villas assumed free discharge of water from the culverts out letting into the drainage system. Tail water effects were not taken into account. Therefore, increasing the size of storm sewer pipes to pass more stormwater through the development does little to improve the drainage problem. Mr. Douglas brought to the Council's attention that increasing existing pipe capacity upstream of CSAH 119 culvert in County Ditch No. 9 and through the Albert Villas would have an adverse effect on the property in St. Michael below this culvert by increasing the peak flows downstream. Given this situation, this is not considered feasible and was not further evaluated. Within the 2006 County Ditch No. 9 Flood Study prepared by Bolton and Menk, Inc., it notes four (4) options for Council's review to identify a solution to the flooding associated with County Ditch No. 9 with several constraints. All options considered involve expanding ponds adjacent to the western border of Albertville, beneath the overhead power lines. This would maximize the available land in Albertville that could be used for ponding that is currently in easement and in an optimal location. Unfortunately, the available storage from expanding these existing ponds is not sufficient to provide storage for the 100-year, 24-hour storm event. Supplementary ponding is needed in addition to volume the easement area can provide. • on • Mr. Douglas reported that all options also allow the low flows to continue through the Albert Villas wetland. Otherwise, the wetland would probably be lost and need to be mitigated at a 2 to 1 ratio. City staff made the recommendation to reduce the flooding problems experienced in the study area, there are two (2) general approaches that can be applied: 1. Increasing conveyance capacity (enlarging storm sewer pipes); and 2. Storage of excess Stormwater (detention storage). Staff is looking for direction from the City Council as to which of the four (4) options to conduct additional research on and potentially implement. MOTION BY Council member Berning, seconded by Council member Fay to adopt the 2006 County Ditch No. 9 Flood Study prepared by Bolton and Menk, Inc. Motion carried unanimously. LEGAL Albertville — STMA School District No. 885 Option Agreement City Attorney Couri stated that included in the packet is an Option and Utilities Agreement between the City of Albertville and Independent School District No. 885 for Council's review, which would assign the City's option on the 40-acre ATL property to the School District. It would grant the City an option to purchase land for ponding on the same property and a proposed • agreement with the City of St. Michael, which would allow Albertville to construct the necessary ponds within the City of St. Michael. City Attorney Couri presented a memorandum before the Council updating them on the results from the City of St. Michael's meeting. The City of St. Michael Council will consider the Agreement contingent on the option of Main Avenue NE connecting up to St. Michael. City Attorney Couri identified three different options with respect to the two agreements: 1) approve the School District agreement contingent on the City of St. Michael approving the Albertville/St. Michael agreement; 2) Approve the School District agreement regardless of whether St. Michael approves the Albertville/St. Michael agreement; or 3) simply assign the City's option to purchase the ATL property to the School District and do not take an option back to purchase land for ponding. Attorney Couri recommended option 1 as it gives the City the most flexibility in the future in the event the City decides to construct ponding on the ATL property to alleviate the flooding problem in the Albert Villas subdivision. The consensus of the Council was in favor of the proposed Option No. 2 in the memorandum, just to allow the School District to go forward with their proposed project. Albertville — City of St. Michael Agreement City Attorney Couri presented a memorandum before the Council updating them on the results of a meeting between the STMA School Superintendent Marcia Ziegler, St. Michael City . Administrator Bob Derus, Albertville City Administrator Larry Kruse, Dave Lenhardt Attorney 7 for STMA School District and St. Michael and himself regarding Albertville's need to provide stormwater ponding on the Albertville border with property located in St. Michael. All three • entities have worked for over a month to develop a plan that would accommodate construction of an elementary school and flood mitigation ponding to alleviate flood problems in the Albert Villas neighborhood. In the eleventh hour, the City of St. Michael is conditioning Albertville's ponding approval on St. Michael's desire to extend Main Avenue NE connecting up to St. Michael. City Attorney Couri recommended not transferring Albertville's Option to purchase 40 acres from ATL to the school to preserve the ability to annex this area for public health purposes if St. Michael will not cooperate. Couri stated how staff was surprise that St. Michael would present a deal breaker at the 11th hour, after stating that as long as Albertville worked with the school, something could be worked out. The Council stated that although transferring the option to the School may not be in Albertville's best interest, it is in the STMA school's best interest and expressed a desire to trust that St. Michael will not hold Albertville hostage over a public health issue, especially in the 1 lth hour of this discussion. Mayor Peterson stated he would be in favor of Option No. 2 of the proposed in the memorandum just to allow the School District to go forward with their proposed project. MOTION BY Mayor Peterson, seconded by Council member Berning to approve the Albertville — STMA School District No. 885 Option Agreement with the recommendations noting the agreement would be for approximately 15 acres. Motion carried unanimously. 0 MOTION BY Mayor Peterson, seconded by Council member Berning to approve Albertville — City of St. Michael Agreement with Option No. 2 of the memorandum prepared by City Attorney Mike Couri noting the approximately 15-acres. Motion carried unanimously Knechd Property Purchase Agreement City Attorney Couri informed the Council that included in the packet is a proposed Commercial Purchase Agreement for the Knechtl Property. Mr. Knechtl rejected the $10.50 per square foot price, plus the cost to relocate the sign. What staff is proposing would be to pay $13.00 per square foot, which includes the cost to move the bill board sign. Hoey Advertising is suggesting the need for a variance to raise the height of the bill board, from 30 feet to 40 feet, to maintain the same visibility along I-94. Staff will work with Hoey to verify if the need is justified, and will report back to the Council. Mr. Knechtl will be in Minnesota on April 25 to complete negotiations and hopefully sign a Purchase Agreement MOTION BY Mayor Peterson, seconded by Council member Klecker to approve the Knechtl Property Purchase Agreement. Mayor Peterson, Council members Fay, Klecker, and Berning voted aye. Council member Vetsch voted nay. Motion carried. M. • City Clerk City Clerk Miller brought to the Council's attention that last fall we entered into a challenge with the City of St. Michael during their Heritage Days. Does the Council want to do a similar event during Friendly City Days? Council set Friday, June 9 at 6:00 p.m. to hold a 3-inning softball tournament against the City of St. Michael Council and staff. CITY ADMINISTRATOR City Administrator Kruse reported that S.E.H. submitted an updated Transition Plan, which is included in the packet. If the Council has any questions or concerns, let staff know. It appears the items are getting close to completion. City Administrator Kruse asked the Council to set Monday, May 22, 2006 at 6:30 p.m. as a workshop to discuss consultant billings and other topics. ADJOURNMENT MOTION BY Council member Vetsch, seconded by Council member Berning to adjourn at 9:24 p.m. Motion carried unanimously. • • 9 �j A',1bcrtvi11C snmtl Toum uwkml. Big atv Ufa. ALBERTVILLE CITY COUNCIL WORKSHOP APRIL 25, 2006 Albertville City Hall 6:30 PM PRESENT: Mayor Don Peterson, Council members John Vetsch, LeRoy Berning, Ron Klecker, and Tom Fay, City Planner Al Brixius, Assistant City Engineer Adam Nafstad and City Administrator Larry Kruse Others Present: Jon Huseby, Bryan Nemeth, Bill Douglass, Bolton & Menk, Inc.; Chelsea representatives Darryl Gugig, Steve Cupelli, Michael Brooks, Greg Link, and Sally Dufner ABSENT: none Mayor Peterson called the Albertville City Council Workshop to order at 6:30 p.m. ALBERTVILLE PREMIUM OUTLET MALL ISSUES CSAH 19 & I-94 Transportation Improvements Staff reported they visited with Chelsea in the afternoon sharing with them information regarding the projected growth in traffic and pending congestion problems. Staff informed Chelsea that a meeting will be held in the near future to share scope of proposed construction and proposed funding ideas, of which a partial assessment of the improvements is likely. Lowering of Mall Fence, Jaywalking Across CSAH 19, Pedestrian Cross by Burger King, Dumpster Screening and Other Issues The Council and Chelsea representatives visited about a number of concerns. The Council expressed dissatisfaction that a number of the safety issues were not resolved and did not like that Chelsea was predicating acting on those issues only if they are allowed to lower the CSAH 19 fence to improve sight lines to the Mall. On the other hand, Chelsea stated they did not appreciate the City requiring the removal of the dirt berm in order for Chelsea to lower the CSAH 19 fence. Regarding CSAH 19 Jaywalking, Chelsea did say they would be willing to pay or be assessed for the median barrier cost as long as the costs were reasonable. If Wright County will not approve a median barrier, than another alternative needs to be implemented. • Both sides communicated their feelings on a number of issues. City staff will proceed to identify some type of center median in CSAH 19 to prevent Jaywalking with the assumption it can be 11 rolled into the CSAH 19 Improvement or possibly done with Jersey barriers until a permanent fix can be done. Chelsea will submit a plan to extend the garbage dumpster walls and adequately screen garbage containers with the goal to complete the project this summer. City Staff will work with Chelsea to try and resolve the berm and all other outstanding issues. ALBERTVILLE NORTHWEST QUADRANT STUDIES DISCUSSION Hotel Water Park Transportation Study Bolton and Menk, Inc. representatives presented the Hotel Transportation Study as on file in the City Clerk's office. BMI stated the Study showed that existing roads can handle the estimated 3,000 per day generated by the facility. As additional development occurs, it will be necessary for the City to do additional studies. Broader Transportation Studies BMI gave an overview of the need to expand existing AUAR's or complete additional transportation and storm water studies in advance of development. If the northwest area is to be built out as commercial retail, the Study shows that once 25% of the area is developed, significant improvements will need to be made to the transportation system to accommodate the traffic. The information presented emphasized the need to expand CSAH 19, 70th Street and other internal systems to handle the traffic or reconsider the zoning in the area. It was suggested that the City should work with Otsego on regional planning. DOWNTOWN PARKING STUDY • Review & Discussion regarding outcome of Public Meeting Staff met with neighborhood business and residential properties sharing a number of parking lot concepts and received feed back from them. Some of the comments were the need to provide a storm water pond to manage run-off, desire of property owners to maybe acquire the railroad right-of-way and cost of parking lot construction and how it would be paid for was a concern. City Planner Brixius reviewed the parking concepts with the City Council and recommended the City purchase the railroad right of way and begin to set up a fund for businesses to contribute towards should they expand or remodel their businesses. Brixius emphasized this was a parking study and not a redevelopment plan. Railroad Right -of -Way Purchase After some discussion regarding future development of the downtown and how the railroad land is integral to development of parking lots either on the land itself or via exchanging land, the general consensus of the Council is to purchase the land. • 12 . NEXT WORKSHOP The Council set the next workshop for Monday, May 22"d at 6:30 p.m. ADJOURNMENT MOTION BY Council member Fay, seconded by Council member Berning to adjourn at 10:00 p.m. Motion carried unanimously. Don Peterson, Mayor Larry Kruse, City Administrator n • 13 •Albertville Small Tamara Uving. Big City Life. E • City of Albertville Check Detail Register May 1, 2006 10100 Premier Bank Paid Chk# 022761 5/1/2006 AFLAC G 101-21710 Other Deducations $16.16 714391 Total AFLAC $16.16 AFLAC Insurance Prem Paid Chk# 022762 5/1/2006 AMWELL E 601-49450-404 Repair/Maint- $974.00 82225-0 Squeegees (WWTF) Total AMWELL $974.00 Paid Chk# 022763 5/1/2006 ARAMARK UNIFORM SERVICES E 101-45100-417 Uniform Rentals $23.43 629-5947939 Uniform Sery - Parks Dept E 601-49450-417 Uniform Rentals $15.65 629-5947939 Uniform Sery - Sewage Dept. E 602-49400-417 Uniform Rentals $15.65 629-5947939 Uniform Sery - Water Dept E 101-43100-417 Uniform Rentals $23.48 629-5947939 Uniform Sery - PW Dept. E 601-49450-417 Uniform Rentals $10.57 629-5952895 Uniform Sery - Sewage Dept. E 602-49400-417 Uniform Rentals $10.57 629-5952895 Uniform Sery - Water Dept E 101-43100-417 Uniform Rentals $15.85 629-5952895 Uniform Sery - PW Dept. E 101-45100-417 Uniform Rentals $15.86 629-5952895 Uniform Sery - Parks Dept E 101-41940-405 Repair/Maint - Buildings $27.69 629-5952896 Mats - CH E 601-49450-417 Uniform Rentals $14.28 629-5957830 Uniform Sery - Sewage Dept. E 101-45100-417 Uniform Rentals $21.41 629-5957830 Uniform Sery - Parks Dept E 101-43100-417 Uniform Rentals $21.42 629-5957830 Uniform Sery - PW Dept. E 602-49400-417 Uniform Rentals $14.28 629-5957830 Uniform Sery - Water Dept E 101-45100-417 Uniform Rentals $15.85 629-5962724 Uniform Sery - Parks Dept E 602-49400-417 Uniform Rentals $10.57 629-5962724 Uniform Sery - Water Dept E 601-49450-417 Uniform Rentals $10.57 629-5962724 Uniform Sery - Sewage Dept. E 101-43100-417 Uniform Rentals $15.86 629-5962724 Uniform Sery - PW Dept. E 101-41940-405 Repair/Maint - Buildings $27.69 629-5962725 Mats - CH Total ARAMARK UNIFORM SERVICES $310.68 Paid Chk# 022764 5/1/2006 ASLESON, DARRICK E 101-42000-200 Office Supplies (GENERAL) $27.93 Total ASLESON, DARRICK $27.93 Paid Chk# 022765 5/1/2006 BARCO MUNICIPAL PRODUCTS E 601-49450-210 Operating Supplies $317.14 166882 Total BARCO MUNICIPAL PRODUCTS $317.14 Paid Chk# 022766 5/1/2006 CARQUEST E 601-49450-404 Repair/Maint - E 601-49450-404 Repair/Maint- E 601-49450-404 Repair/Maint - E 101-45100-404 Repair/Maint - E 601-49450-404 Repair/Maint- E 601-49450-404 Repair/Maint - Total CARQUEST Paid Chk# 022767 5/1/2006 CDW-G E 101-42400-570 Office Equip and Furnishings E 101-41400-570 Office Equip and Furnishings Total CDW-G $17.00 D4468 $12.24 D4690 $3.07 D4818 $5.04 D4844 $89.50 D4851 ($45.85) D5122 $81.00 $329.53 XQ93685 $329.52 XQ93685 $659.05 Food for training night Boots, stormking firemaster in belt, hyd fluid sealed beam for jet truck fuses for jet truck fuel filter, vacuum tubing volt regs jet truck credit volt reg jet truck Digital Camera, case, mem card Digital Camera, case, mem card 15 Check Amt Invoice Comment Paid Chk# 022768 5/1/2006 CENTER POINT ENERGY • E 101-41940-383 Gas Utilities ($215.69) Energy Credit E 101-45100-383 Gas Utilities $118.25 80000144255 5801 Lander Ave E 101-41940-383 Gas Utilities $141.86 80000144255 5975 Main Ave E 101-42000-383 Gas Utilities $393.91 80000144255 11350 57th St E 101-42400-383 Gas Utilities $350.01 80000144255 5954 Main Ave Total CENTER POINT ENERGY $788.34 Paid Chk# 022769 5/1/2006 COMMUNITY PARTNERS E 101-41000-300 Professional Srvs (GENERAL) $1,465.25 TIF Negaard Project Total COMMUNITY PARTNERS $1,465.25 Paid Chk# 022770 5/1/2006 CUMMINS N-POWER, LLC E 101-43100-400 Repair/Maint - Paved Rd $364.21 100-1789 gaskets, repair kit - carb, fu Total CUMMINS N-POWER, LLC $364.21 Paid Chk# 022771 5/1/2006 DXS TOTAL HOME CARE CENTER E 101-42000-404 Repair/Maint - $9.58 10458 car bulb & hex drill pnt E 101-42000-404 Repair/Maint - $16.10 10459 23 14x 1 sl hex sms-ss E 101-42000-404 Repair/Maint- $19.47 110008 Antifreeze E 101-42000-405 Repair/Maint - Buildings $3.98 9960 Key cut Total DXS TOTAL HOME CARE CENTER $49.13 Paid Chk# 022772 5/1/2006 ELAN FINANCIAL SERVICES E 101-41300-331 Travel Expenses $125.00 annual conf. LK E 101-41300-399 Miscellaneous $56.12 lunch meetings LK E 101-41400-300 Professional Srvs (GENERAL) $62.13 fee E 101-41400-200 Office Supplies (GENERAL) $74.47 supplies, pop, water E 101-41300-208 Training and Instruction $15.42 Monthly mtg LK R 101-00000-34950 Other Revenues $74.85 Ken's retirement - scrap mtl R 101-00000-34950 Other Revenues $300.00 Ken's retirement cert - scrap E 101-41300-208 Training and Instruction $325.00 govt't training LK E 101-45100-208 Training and Instruction $10.18 monthly mtg TLL Total ELAN FINANCIAL SERVICES $1,043.17 • Paid Chk# 022773 5/1/2006 FIRE INSTRUCTION & RESCUE EDUC E 101-42400-208 Training and Instruction $205.00 04807 Fire Inspector Training - JS E 101-42000-208 Training and Instruction $820.00 04807 Fire Inspector Training - FD Total FIRE INSTRUCTION & RESCUE EDUC $1,025.00 Paid Chk# 022774 5/1/2006 GOPHER STATE ONE -CALL E 601-49450-209 Locates $105.85 6030148 Locates - Sewer Dept E 602-49400-209 Locates $105.85 6030148 Locates - Water Dept Total GOPHER STATE ONE -CALL $211.70 Paid Chk# 022775 5/1/2006 HALLMAN OIL COMPANY -FUEL DIV E 101-43100-212 Motor Fuels $827.30 188432 premier diesel off rd Total HALLMAN OIL COMPANY -FUEL DIV $827.30 Paid Chk# 022776 5/1/2006 HEALTH PARTNERS E 101-45100-130 Employer Paid Ins $624.50 Emp Health & Dental Ins E 101-41500-131 Employer Paid Health $533.55 Emp Health & Dental Ins E 101-43100-130 Employer Paid Ins $2,373.78 Emp Health & Dental Ins E 101-41400-131 Employer Paid Health $995.61 Emp Health & Dental Ins E 602-49400-130 Employer Paid Ins $686.00 Emp Health & Dental Ins E 101-42400-130 Employer Paid Ins $1,493.25 Emp Health & Dental Ins G 101-21706 Group Insurance Payable $2,359.57 Emp Health & Dental Ins Emp Po E 601-49450-130 Employer Paid Ins $623.80 Emp Health & Dental Ins E 101-41300-131 Employer Paid Health $406.06 Emp Health & Dental Ins Total HEALTH PARTNERS $10,096.12 Paid Chk# 022777 5/1/2006 INSTRUMENT CONTROL SYSTEMS E 601-49450-404 Repair/Maint - $674.98 10835 repair of flow meter Total INSTRUMENT CONTROL SYSTEMS $674.98 Check Amt Invoice Comment 16 Paid Chk# 022778 5/1/2006 MCCANN, DEB & STEVE • G 101-21705 Building Permit Surcharge $4.00 refund permit R 101-00000-32210 Building Permits $162.25 refund permit Total MCCANN, DEB & STEVE $166.25 • • Paid Chk# 022779 5/1/2006 MII LIFE E 101-45100-130 Employer Paid Ins $5.40 Emp Life Ins E 101-41300-131 Employer Paid Health $14.10 Emp Life Ins E 101-42400-130 Employer Paid Ins $126.80 Emp Short Term Dis Ins (2 mos) E 101-41300-131 Employer Paid Health $108.58 Emp Short Term Dis Ins (2 mos) E 101-43100-130 Employer Paid Ins $95.60 Emp Short Term Dis Ins (2 mos) G 101-21710 Other Deducations $7.50 Emp Life Ins Emp Port E 101-41400-131 Employer Paid Health $4.80 Emp Life Ins E 101-41500-131 Employer Paid Health $2.40 Emp Life Ins E 101-45100-130 Employer Paid Ins $39.10 Emp Short Term Dis Ins (2 mos) E 602-49400-130 Employer Paid Ins $35.98 Emp Short Term Dis Ins (2 mos) E 101-42400-130 Employer Paid Ins $18.90 Emp Life Ins E 101-41500-131 Employer Paid Health $61.94 Emp Short Term Dis Ins (2 mos) E 602-49400-130 Employer Paid Ins $3.90 Emp Life Ins E 101-43100-130 Employer Paid Ins ($3.90) Emp Life Ins E 101-41400-131 Employer Paid Health $42.20 Emp Short Term Dis Ins (2 mos) E 601-49450-130 Employer Paid Ins $52.10 Emp Short Term Dis Ins (2 mos) E 601-49450-130 Employer Paid Ins $5.40 Emp Life Ins Total Mil LIFE $620.80 Paid Chk# 022780 5/1/2006 MILLER ARCHITECTS & BUILDERS G 101-22850 Planning & Zoning Escrow $20,000.00 Reimburse Escrow Total MILLER ARCHITECTS & BUILDERS $20,000.00 Paid Chk# 022781 5/1/2006 MINNESOTA PCA E 601-49450-433 Dues and Subscriptions $1,450.00 MN0050954 annual permit fee WQ Total MINNESOTA PCA $1,450.00 Paid Chk# 022782 5/1/2006 MONTICELLO ANIMAL CONTROL E 101-42700-309 Animal Control Contract $66.00 600 pick up lab, cat, dog Total MONTICELLO ANIMAL CONTROL $66.00 Paid Chk# 022783 5/1/2006 MTI DISTRIBUTING, INC. E 101-45100-404 Repair/Maint - $272.71 515641-00 blade atomic 19 in Total MTI DISTRIBUTING, INC. $272.71 Paid Chk# 022784 5/1/2006 NEXTEL COMMUNICATIONS E 101-42000-321 Telephone E 101-41300-321 Telephone E 101-41400-323 Nextel Radio Units E 101-41400-323 Nextel Radio Units E 101-43100-323 Nextel Radio Units E 101-42400-323 Nextel Radio Units E 101-42400-323 Nextel Radio Units E 101-45100-323 Nextel Radio Units E 101-45100-323 Nextel Radio Units E 602-49400-323 Nextel Radio Units E 601-49450-323 Nextel Radio Units E 101-43100-323 Nextel Radio Units Total NEXTEL COMMUNICATIONS $31.71 718183318-0 nextel phones $63.53 718183318-0 nextel phones $31.71 718183318-0 nextel phones $31.71 718183318-0 nextel phones $31.71 718183318-0 nextel phones $31.74 718183318-0 nextel phones $31.77 718183318-0 nextel phones $31.80 718183318-0 nextel phones $33.32 718183318-0 nextel phones $31.71 718183318-0 nextel phones $32.32 718183318-0 nextel phones $32.51 718183318-0 nextel phones $415.54 Paid Chk# 022785 5/1/2006 NORTH MEMORIAL EMS EDUCATION E 101-42000-208 Training and Instruction $855.00 EMTB Training - RP Total NORTH MEMORIAL EMS EDUCATION $855.00 Paid Chk# 022786 5/1/2006 NORTHERN TOOL & EQUIPMENT E 101-43100-215 Shop Supplies $53.24 191111320 14 pc 1/2 deep metric set Total NORTHERN TOOL & EQUIPMENT $53.24 Paid Chk# 022787 5/1/2006 NORTHLAND SECURITIES E 482-49300-300 Professional Srvs (GENERAL) $625.00 1019 continuing disclosure rpt Ch b Total NORTHLAND SECURITIES $625.00 Check Amt Invoice Comment 17 Paid Chk# 022788 5/1/2006 OFFICE MAX - A BOISE COMPANY E 101-42400-200 Office Supplies (GENERAL) $342.27 253506 ppr, certif ppr, inkcarts, sta OFFICE MAX - A BOISE COMPANY $342.27 is Paid Chk# 022789 5/1/2006 PAT'S 66 E 101-42000-212 Motor Fuels $74.25 11042 & motor fuel Total PAT'S 66 $74.25 Paid Chk# 022790 5/1/2006 PITNEY BOWES E 101-41400-413 Office Equipment Rental $97.55 0787150-APO Postage Machine Rental E 101-41400-322 Postage $238.89 80090000195 postage Total PITNEY BOWES $336.44 Paid Chk# 022791 5/1/2006 PREMIER 94 TRUCK SERVICES E 101-43100-404 Repair/Maint- $110.00 0076352-IN Tractor DOT inspection, suppli E 601-49450-404 Repair/Maint- $71.50 0076403-IN Tractor DOT inspection E 101-43100-404 Repair/Maint- $88.52 0076444-IN Tractor DOT inspection, Reflec Total PREMIER 94 TRUCK SERVICES $270.02 Paid Chk# 022792 5/1/2006 STERLING CODIFIERS, INC. E 101-41400-300 Professional Srvs (GENERAL) $711.00 5700 supplement# 1 City Code E 101-41400-300 Professional Srvs (GENERAL) $483.00 5701 Code reprints (5) Total STERLING CODIFIERS, INC. $1,194.00 Paid Chk# 022793 5/1/2006 T & S TRUCKING OF BUFFALO, INC E 101-43100-227 Street Sweeping $552.75 98 sweeping 04/06 Total T & S TRUCKING OF BUFFALO, INC $552.75 Paid Chk# 022794 5/1/2006 TINKLENBERG GROUP E 468-49000-300 Professional Srvs (GENERAL) $2,976.70 1177 1-94 funding Total TINKLENBERG GROUP $2,976.70 Paid Chk# 022795 5/1/2006 UNIQUE PAVING MATERIALS CORP E 602-49400-407 R/M - Water Mains $204.48 401727, UPM Total UNIQUE PAVING MATERIALS CORP $204.48 Paid Chk# 022796 5/1/2006 USA BLUE BOOK E 601-49450-210 Operating Supplies $133.68 145621 CorePro Sr. 15" Sampler, CoreP Total USA BLUE BOOK $133.68 Paid Chk# 022797 5/1/2006 VALERIUS, BILL E 101-42000-200 Office Supplies (GENERAL) $35.51 rpt folder, labels, tags, etc Total VALERIUS, BILL $35.51 Paid Chk# 022798 5/1/2006 WATER LABORATORIES INC E 601-49450-218 Testing Expenses $516.60 Testing Expense (CBOD-5) Total WATER LABORATORIES INC $516.60 Paid Chk# 022799 5/1/2006 WRIGHT CTY AUDITOR/TREASURER E 101-41800-511 Taxes on City Property $24.00 R101-022-00 1st Half 2006 Property Taxes E 101-41800-511 Taxes on City Property $24.00 R101-067-00 1st Half 2006 Property Taxes E 101-41800-511 Taxes on City Property $181.00 R101-110-00 1st Half 2006 Property Taxes E 101-41800-511 Taxes on City Property $39.00 R101-110-00 1st Half 2006 Property Taxes E 101-41800-511 Taxes on City Property $10.00 R101-110-00 1st Half 2006 Property Taxes E 101-41800-511 Taxes on City Property $40.00 R101-111-00 1st Half 2006 Property Taxes E 101-41800-511 Taxes on City Property $24.00 R101-500-01 1st Half 2006 Property Taxes E 101-41800-511 Taxes on City Property $24.00 R101-500-01 1st Half 2006 Property Taxes E 101-41800-511 Taxes on City Property $24.00 R101-500-01 1st Half 2006 Property Taxes E 101-41800-511 Taxes on City Property $24.00 R101-500-01 1st Half 2006 Property Taxes E 101-41800-511 Taxes on City Property $24.00 R101-500-01 1st Half 2006 Property Taxes E 101-41800-511 Taxes on City Property $24.00 R101-500-01 1st Half 2006 Property Taxes E 101-41800-511 Taxes on City Property $163.00 R101-500-36 1st Half 2006 Property Taxes E 101-41800-511 Taxes on City Property $24.00 R101-500-36 1st Half 2006 Property Taxes Total WRIGHT CTY AUDITOR/TREASURER $649.00 Paid Chk# 022800 5/1/2006 WRIGHT RECYCLING E 101-43200-308 Recycling Contract Fee $3,710.70 March Pick up Total WRIGHT RECYCLING $3,710.70 • • Check Amt Invoice Comment Paid Chk# 022801 5/1/2006 WRIGHT-HENNEPIN COOPERATIVE E 101-45100-381 Electric Utilities E 101-43160-381 Electric Utilities E 601-49450-381 Electric Utilities Total WRIGHT-HENNEPIN COOPERATIVE Paid Chk# 022802 5/1/2006 XCEL ENERGY E 101-45100-381 E 601-49450-381 E 601-49450-381 E 101-45100-381 E 601-49450-381 E 101-43100-381 E 601-49450-381 E 101-42000-381 E 101-41940-381 E 101-41940-381 E 101-45100-381 E 101-41940-381 E 101-42400-381 E 101-43160-381 E 101-45100-381 E 101-43160-381 E 101-41'940-381 E 601-49450-381 Electric Utilities Electric Utilities Electric Utilities Electric Utilities Electric Utilities Electric Utilities Electric Utilities Electric Utilities Electric Utilities Electric Utilities Electric Utilities Electric Utilities Electric Utilities Electric Utilities Electric Utilities Electric Utilities Electric Utilities Electric Utilities E 101-41940-381 Electric Utilities E 101-45100-381 Electric Utilities E 101-43160-381 Electric Utilities Total XCEL ENERGY Paid Chk# 022803 5/1/2006 YOCUM OIL COMPANY, INC. E 601-49450-404 Repair/Maint- Total YOCUM OIL COMPANY, INC. Fund Summary 101 GENERAL FUND 468 CSAH 19 RAMPS/I 94 Project 482 CITY HALL 2004-5 601 SEWER FUND 602 WATER FUND 10100 Premier Bank $167.01 Parks $407.52 Street lights $24.47 Lift Station $599.00 $25.07 51457964030 11830 51stSt $34.71 51468978490 4940 Kaiser swr $241.70 51468978490 11200 60th swr $7.97 51468978490 11474 58th $3,141.18 51468978490 6451 Maciver $399.02 51468978490 6461 Maciver $65.84 51468978490 11942 52nd swr $266.92 51468978490 11350 57th $256.71 51468978490 5975 Main Ave $87.53 51468978490 auto protective Igt, facil chg $81.54 51468978490 11401 58th $48.31 51468978490 6002 Main $46.80 51468978490 5964 Main $30.56 51468978490 11060 61stSignal $7.97 51468978490 5801 Main Ave $27.95 51468978500 11750 County Rd 37 Signal $23.48 51511236300 5998 LaBeaux Ave $40.92 51545432690 5900 County Rd 18 Swr $4.05 51555641080 5799 Lander $4.84 51644391160 10820 Kantar Ct $4,742.64 51690103800 Street Lighting - 58-59-60 St. $9,585.71 $919.81 129746 mobilgear, mobil SHC $919.81 $65,556.62 10100 Premier Bank $51,282.90 $2,976.70 $625.00 $9,553.03 $1,118.99 $65,556.62 19 BOI_TON 8o- NA N K, I NC_ • Consulting Engineers & Surveyors 2638 Shadow Lane, Suite 200 • Chaska, MN 55318 Phone (952) 448-8838 • FAX (952) 448-8805 April 19, 2006 Mr. Larry Kruse, City Administrator City of Albertville 5975 Main Avenue NE, P. O. Box 9 Albertville, MN 55301 RE: Old Castle Glass Property Release of Surety BMI Project No. T15.21660 Dear Mr. Kruse: As part of the Variance Agreement for the improvements to the Old Castle Glass property, a $20,000 escrow was required. The escrow was established as security for the relocation of the sanitary sewer and extension of watermain along the north and northeast side of the subject property, as well as, the restoration of 53rd Street. Mike Dubsky of Miller Architects, the General Contractor for Old Castle Glass, claims that all improvements have been completed and requests that Miller Architects be reimbursed for the escrow ($20,000). To date, the installation of the utilities and restoration of 53rd Street have been completed in general conformance with plans and specifications, the as -built construction drawing have been received, and lien waivers from the utility contractor have been provided. Upon review of the completed work, it is recommended that the $20,000 escrow deposit be reimbursed in full. Please let me know if you have any questions or would like additional information. Sincerely, BOLTON & MENK, INC. Adam Nafstad, P. E. Albertville Assistant City Engineer s 21 A�Ibcrtvillci TO: City Council FROM: Tim Guimont DATE: April 21, 2006 RE: Parks Department Update Request for Council Action (RCA) Parks Maintenance At the March and April Parks and Recreation Committee meetings, the committee has been evaluating the condition of the parks within Albertville. The committee noted that the Four Seasons Park was in need of updating. The park did not appear to be handicap accessible. In reviewing the condition of Four Seasons Park, the committee would like to update the playground equipment and add a gazebo to the park. . Staff received quotes on the playground equipment: Flannigan Sales $45,159 for the playground equipment and 12-foot gazebo (includes installation) RECOMMENDATION: Staff recommends authorization to purchase new playground equipment and a 12-foot gazebo with Flannigan Sales at a cost not to exceed $45,159 with funds from Park Dedication, which has an estimated Unreserved available fund balance of less than $184,900. TG:bmm • 23 • ■ 1 b�rty� � Small Tocean Uving. Blg City We. TO: City Council FROM: Tim Guimont DATE: April 21, 2006 RE: Public Works Department Request for Council Action (RCA) Streets Maintenance Staff has contacted several asphalt companies for a quote on crack filling project throughout Albertville, only one quote was obtained. Allied Blacktop Company $4,900 RECOMMENDATION: Staff recommends contracting with Allied Blacktop Company to do the crack filling project throughout Albertville at a cost not to exceed $4,900 with funds from Streets Maintenance. TG:bmm • 25 0 • A�Ibcrtvillcoif TO: City Council FROM: Tina L. Lannes DATE: April 28, 2006 RE: Accounts Receivable Update Total accounts receivable outstanding through April 20, 2006 is $399,242.37 The percentage of the total due based on the aging report is as follows: 0-30 days outstanding 30-60 days outstanding 60-90 days outstanding Over 90 days outstanding $6,019.45 1.51% $20,768.61 5.20% $5,887.77 1.47% $366,566.54 91.82% The majority of the over 90 day's amount due Edina Development. Total Edina Development bills are $337,592.59 or 85% of the total outstanding receivables. 27 Vendor Amount Due 0-30 Days 30-60 da s 60-90 days 90 da s & Over 152 CLUB $901.25 $901.25 ALBERTVILLE BODY SHOP, INC. $900.00 $900.00 ALBERTVILLE HOLDINGS $1,984.45 $1,984.45 BROWN, STEVE & CHRISTY $52.52 $52.52 BURGER KING $492.51 $492.51 CROIX OIL Co $100.00 $100.00 COBORN'S $227.81 $40.50 $187.31 CPG PARTNERS $239.47 $92.50 $146.97 EDINA DEVELOPMENT $337,592.59 $463.00 $550.64 $1,717.92 $334,861.03 FRANKLIN OUTDOOR SIGN $9,000.00 $9,000.00 FULL MOON SALOON $900.00 $900.00 GOLD KEY DEVELOPMENT $7,649.07 $688.75 $1,812.50 $2,519.59 $2,628.23 GRIDOR CONSTRUCTION $1,636.28 $1,636.28 HOEY OUTDOOR ADVERTISING $700.00 $700.00 K. HOVNANIAN $81.00 $81.00 LACHAPELLE, TAMMY $78.16 $78.16 MARINE SERVICE $1,438.32 $382.97 $1,055.35 MONTGOMERY, SAM $81.00 $81.00 PETERSON, JOSH $244.22 $244.22 PREMIER DEVELOPMENT GROUP $298.75 $36.25 $262.50 SHOPPES AT TOWNE LAKES 2 $2,504.02 $1,174.95 $1,329.07 SNAP FITNESS $121.50 $121.50 ST. MICHAEL, ALBERTVILLE DIST $5,357.99 $5,357.99 STATE BANK OF LONG LAKE $1,012.50 $1,012.50 TERRA DEVELOPMENT $4,251.72 $2,156.25 $1,693.75 $401.72 TOWNE LAKES $15,362.37 $706.56 $904.36 $13,751.45 WAHLSTROM, SHAWN & MEGAN $200.00 $200.00 YEARWOOD DEVELOPMENT $5,834.87 $322.50 $115.96 $5,396.41 Total $399,242. 37 $6,019.45 $20,768. 61 $5,887.77 $366,566.54 Current 0-30 days $6,019.45 1.51 % 30-60 days $20,768.61 5.20% 60-90 days $5,887.77 1.47% over 90 day $366,566.5 4 91.82% Total outstanding less Edina $61,649.78 15.44% Total outstanding less Edina more than 30 days $56,643.97 14.19% 0 TO: City Council FROM: Tina L. Lannes DATE: April 21, 2006 RE: Project Update Council requested an update on outstanding project status. Below are the contracted projects with amounts paid to date as of April 20, 2006: Fund 476 473 101 101 466 400 101 400 602 491 101 602 204 463 488 496 482 470 468 • Project Total Contract Paid to Date Difference 2004 School Pedestrian Trail Bituminous $353,876.90 $331,703.71 $22,173.19 2004 Prairie Run $1,595,233.53 $1,567,701.19 $27,532.34 2004 Seal Coat Improvement $19,965.00 $18,692.60 $1,272.40 2004 Street Overlay $98,070.00 $89,978.40 $8,091.60 Public Works Building $1,714,020.00 $1,706,967.00 $7,053.00 2003 CSAH 19 Upgrade $1,446,496.70 $1,340,629.92 $105,866.78 2003 Seal Coat Improvement $10,421.00 $10,061.62 $359.38 Frontage Avenue Improvements $313,719.00 $281,440.31 $32,278.69 Water Main Change Order $32,394.00 $30,288.00 $2,106.00 CSAH 37 / 60th Street Storm Sewer $49,983.00 $47,941.00 $2,042.00 WWTF Expansion $3,705,000.00 $3,533,477.06 $171,522.94 05 Overlay $94,713.00 $71,348.90 $23,364.10 Mud Lake Water Main $70,923.14 $67,725.89 $3,197.25 Hunter Pass Lift Station $127,600.00 $111,878.59 $15,721.41 NW Commercial Park $1,349,333.40 $1,292,804.00 $56,529.40 Ice Arena Locker Room $683,581.00 $644,377.00 $39,204.00 Hockey Rink $100,953.00 $88,820.92 $12,132.08 City Hall $3,091,000.00 $433,745.00 $2,647,255.00 37 Trail $241,522.75 $202,281.60 $39,241.15 194 Project $273,484.41 -$273,484.41 Total $13,603,038.95 $12,308,123.73 $3,324,269.71 81.43% 29 • 4500 Olson Memorial Highway, Suite 202, Golden Valley, Mrs 55422 Telephone: 763.231.2555 Facsimile: 763.231.2561 planners@nacplanning.com MEMORANDUM TO: Larry Kruse, City Administrator FROM: Cassie Schumacher-Georgopoulos / Al Brixius DATE: April 13, 2006 RE: Albertville — Model Homes NAC FILE: 163.05 — 06.06 Recently model homes have been approved as part of a new subdivision. Staff feels there is a need to create greater stipulations to the approval of model homes to maintain a higher quality. • The Albertville Zoning Ordinance specifies that Model Homes are approved by a conditional use permit reviewed by the City Council. We feel that model homes may still be approved as part of a subdivision, however higher provisions need to be established. The following ordinance changes have been suggested per staff review following March 23, 2006 field inspection of current model home sites. The changes are illustrated with strike -outs and underlines to aid in the Planning Commission Review. The attachment illustrates the proposed Zoning Ordinance Amendment. • 31 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO.2006-07 AN ORDINANCE AMENDING SECTION 2200.0 RELATING TO MODEL HOMES THE CITY COUNCIL OF THE CITY OF ALBERTVILLE, MINNESOTA ORDAINS: SECTION 1. Section 2200.0 Model Homes, of the Albertville Zoning Ordinance hereby amends the following guidelines for model home review: 2200 MODEL HOMES 2200.1 PURPOSE: The purpose of this chapter is to provide for the erection of model homes in new subdivisions without adversely affecting the character of surrounding residential neighborhoods temporary commercial use, special consideration must be given to the peculiar problems associated with them, and special standards must be applied to ensure reasonable compatibility with their surrounding environment. 2200.2 PROCEDURE: eetffieik • A. Submission requirements 1. Applicant shall submit site and building plans for the model that illustrates requires setbacks, parkin and pedestrian access, site access site landscape plan and building construction plan. 2. Applicant shall provide details related to outdoor lighting model home signage and hours of operation. 3. Narrative describing site restoration to home site shall be provided. B. Staff Review. Appropriate staff shall review the application and prepare a technical report outliningthe he application compliance with city standards. C. Staff may approve the Model Home Applications and Plans. 2200.3 SPECIAL REQUIREMENTS: A. Temporary parking facilities equal to four (4) spaces per model home dwelling unit shall be provided. The overall design, drainage, and surfacing of the temporary parking facility shall be subject to the approval of the city engineer. 32 B. Access from a temporary parking facility onto a local, residential street shall be • discouraged. Where this requirement is physically impracticable, access shall be directed away from residential neighborhoods to the greatest extent possible. C. No model home shall incorporate outside lighting which creates a nuisance due to glare or intensity, as provided for in section 1000.10 of this ordinance. D. All model home signage shall comply with the sign regulations as contained in the provisions of this ordinance relating to signs. E. Sidewalks providing access to model homes shall be kept clear debris, snow, over the term of the model home permit. F. Landscaping and fencing shall comply with the performance standards of section 1000.7 of this ordinance. 2200.4 APPROVAL AND ENFORCEMEMT A. As a condition for approval of a model home hermit, the Citv may reauire the ahhlicant to enter into a development agreement with the City that insures proper installation of the model home improvements and the site subsequent restoration as a home site. B. Staff may conduct periodic inspections to insure that the model home site remains in good condition and abides by the condition of the approval. SECTION 2. Effective Date. This amendment shall be effective beginning May 1, 2006. ATTEST Bridget Miller, City Clerk • CITY OF ALBERTVILLE Mayor Don Peterson 33 s Albertville Small Town Living. Big Cfbx We. TO: City Council FROM: Larry R. Kruse DATE: April 27, 2006 RE: Railroad Property REQUEST FOR COUNCIL ACTION BACKGROUND Last fall we hired MIA appraiser Michael Bettendorf of BRKW Appraisals to appraise three parcels of railroad property in the downtown area. Mr. Bettendorf completed the appraisals and a copy of which is available at City Hall. The parcels are identified on the map as: Parcel #1 (West of Main, South of railroad tracks). This 42,689 S.F. parcel is appraised at $1.46 per square foot, totaling $60,000. The parcel abuts the City Park and the purchase could be funded with Park Dedication Funds. • Parcel #2 (East of Main, South of railroad tracks). This 98,527 S.F. parcel is appraised at $2.60 per S.F., totaling $256,000. The City has done a downtown parking study, and further discussions need to be done to determine if the City may want to purchase this property or trade land to develop some downtown parking. Another possibility is to purchase the land and sell it for development with funds to come from the General Fund with possible future contribution from the Winkelman Tax Increment District. Parcel #3 (West of Main, North of railroad tracks. This 49,446 S.F. parcel is appraised at $1.40 per S.F., totaling $68,000. The City is interested in this parcel to complement the New City Hall. Building funds could be used to acquire this property. ADMINISTRATOR'S COMMENTS: BNSF has verbally agreed to sell the three parcels to the City for Mr. Bettendorf appraisal value with closing to take place prior to August 31, 2006. As I stated before, if the City is serious about purchasing these lots, now is the time to do it. If we wait, the railroad may change their mind about selling or they may want a new appraisal. RECOMMENDATION: Authorize the City entering into a Purchase Agreement with the BNSF railroad to purchase Parcel #1, Parcel #2 and Parcel #3 as identified in the Bettendorf Appraisal Report as on file in the Office of the City Clerk. Financing for Parcel #1 is to come from Park Dedication Funds; Parcel #2 to come from the General Fund with a portion of the funds ultimately coming from the • Winkelman TIF Project and Parcel #3 to be funded via the New City Hall Project. 35 e A COMPLETE APPRAISAL SUMMARY APPRAISAL REPORT (File #5483) OF 3 VACANT LAND PARCELS MAIN STREET SOUTH OF 59TH STREET ALBERTVILLE, MINNESOTA BURLINGTON NORTHERN SANTA FE - OWNER AS OF DECEMBER 15, 2005 FOR CITY OF ALBERTVILLE 5975 MAIN AVENUE NE ALBERTVILLE, MN 55301 BY MICHAEL J. BETTENDORF MAI CERTIFIED REAL PROPERTY APPRAISER . MINNESOTA LICENCE #4001398 Jai M1 Ci Ci 5975 Main Avenue NE Albertville, MN 55301 Re: 3 Vacant Parcels Main St. South of 591h St. Albertville, MN BNSF - Owner Dear Mr. Kruse: In accordance with your request, I have captioned property that is more particularly made a study of conditions affecting its value. BRKW APPRAISALS, INC, REAL ESTATE VALUATION SERViCE5 made a careful inspection of the described in this report, and have The subject property comprises three parcels located east and west of Main Street, South of 59`h Street in the City of Albertville. The combined area of the parcels is 198,182 SF gross with 8,500 SF in street right of way. Deducting the right of way produces a net area of 189,682 SF. Parcel 1 is located on the west side Main Street, south of the Railroad Tracks containing 42,689 SF. Parcel 2 comprises the land on the east side of Main Street, south of the tracks containing a total area of 105,777 SF with 98,527 SF useable area, excluding street.. Parcel 3 is located on the west side of Main Street, north of the railroad tracks. This parcel contains a total area of 49,716 SF with a useable area of 48,466 SF, excluding street. The opinion of value, as stated in this report is predicated upon the definition of Market Value contained herein. Implicit in the definition of Market Value is that payment is made in cash or its equivalent. The equivalent of cash is conventional financing at bank/ institutional rates. The estimate of value, as stated herein reflects cash or cash equivalent financing. 1600 U N i V CRa?7Y AV .rY P A U L MN $5104 I • • • • • The property was inspected on November 11, 2005 and on December 15, 2005. The effective date of this report is December 15, 2005, which constitutes the latest date of inspection. By virtue of my investigation, I have formed the opinion that the market value of the property, as of December 15, 2005 is: Value of Parcel 1 $ 60,000 (West of Main, South of railroad tracks) Value of Parcel 2 $256,000 (East of Main, South of railroad tracks) Value — Parcel 3 $ 68,000 (West of Main, North of railroad tracks) Total — Combined Parcels $384,000 This report has been prepared in conformity with the Code of Ethics and Standards of Professional Practice of the Appraisal Institute and in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as mandated by the State of Minnesota. Your attention is invited to data and discussions, which, in part, form the basis of this conclusion. Yours Truly, Michael J. Bettendorf, MAI Certified General Real Property Appraiser Minnesota License #4001398 BRKW APPRAISALS INC. PAGE 2 TABLE OF CONTENTS SALIENT FACTS A N D CONCLUSIONS ................................................................ 1 AERIALPHOTOGRAPH.......................................................................................... 3 PHOTOGRAPHS.................................................................................................. 4 PROPERTY IDENTIFICATION.......................................................................... 10 RELATIONSHIP TO LARGER PARCEL............................................................. 10 LEGALDESCRIPTION...................................................................................... 10 PURPOSE /INTENT OF APPRAISAL................................................................... 11 PROPERTY RIGHTS APPRAISED...................................................................... 11 SCOPEOF WORK............................................................................................. 11 ASSESSMENT AND TAXATION......................................................................... 12 ZONING............................................................................................................ 12 • ZONINGMAP.................................................................................................... 13 • MARKET VALUE DEFINITION......................................................................... 14 COMPETENCY PROVISION.............................................................................. 14 CONTINGENT AND LIMITING CONDITIONS ................................................... 15 HISTORY OF OWNERSHIP ............................................................................... 16 METROPOLITAN AREA DESCRIPTION ............................................................ 17 METROPOLITAN LOCATION MAP.......................................................................... 19 CITYDESCRIPTION......................................................................................... 20 CITYMAP........................................................................................................ 22 TRAFFICMAP................................................................................................... 23 NEIGHBORHOOD ANALYSIS............................................................................ 24 NEIGHBORHOODMAP......................................................................................... 25 SITEDESCRIPTION.......................................................................................... 26 PLATMAP........................................................................................................ 27 HIGHEST AND BEST USE ANALYSIS................................................................ 30 EXPOSURE TIME AND MARKETING PERIOD .................................................. 32 BRKW APPRAISALS INC. PAGE 1 • DIRECT SALES COMPARISON......................................................................... 33 • • LAND SALES LOCATION MAP............................................................................... 41 ANALYSIS OF COMPARABLE SALES............................................................... 42 RECONCILIATION........................................................................................... 51 CERTIFICATION.............................................................................................. 52 APPRAISER QUALIFICATIONS........................................................................ 54 COMPANY PROFILE......................................................................................... 56 BRKW APPRAISALS INC. PAGE 2 SALIENT FACTS AND CONCLUSIONS Opinion of Market Value Value of Parcel 1 Value of Parcel 2 Value — Parcel 3 Total — Combined Parcels The Property Size of Parcels Parcel 1 Parcel 2 Parcel 3 Topography Utilities Shape $ 60,000 $256,000 $ 68,000 $384,000 42,689 SF - Useable 98,527 SF - Useable 48,466 SF - Useable Level All Available Parcels 1 & 3 —Elongated Parcel 2 - Trapezoidal Zoning I-1 Limited Industrial Highest and Best Use Parcel 1 for Limited Industrial use Parcel 2 For Service Commercial Use Parcel 3 For Limited Industrial use Value Conclusions Direct Sales Comparison Value of Parcel 1 $ 60,000 Value of Parcel 2 $256,000 Value — Parcel 3 $ 68,000 Total — Combined Parcels $384,000 BRKW APPRAISALS INC. PAGE 1 s • • 0 • • Cost Approach Not Applicable Income Approach Not Applicable Date of Valuation December 15, 2005 Last Date of Inspection Appraiser Michael J. Bettendorf, MAI BRKW APPRAISALS INC. PAGE 2 • Aerial Photograph • BRKW APPRAISALS INC. PAGE 3 • • • PHOTOGRAPHS Parcel 1 — West Side of Main Street Parcel 1 BRKW APPRAISALS INC. PAGE 4 Development South Parcel 1 Area South of Parcel 1 BRKW APPRAISALS INC. PAGE 5 • • • C BRKW APPRAISALS INC. Parcel 2 — East Side of Main Parcel 2 PAGE 6 • Parcel 2 — Central • Parcel 2 — Encroachment Area r BRKW APPRAISALS INC. PAGE 7 • Street Scene South of Parcel 2 Parcel 3 View from east to west BRKW APPRAISALS INC. PAGE 8 • Parcel 3 — View from West to East Parcel 3 — Development across Main Street E BRKW APPRAISALS INC. PAGE 9 • PROPERTY IDENTIFICATION The subject property comprises three parcels located east and west of Main Street, South of 591h Street in the City of Albertville. The combined area of the parcels is 198,182 SF gross with 8,500 SF in street right of way. Deducting the right of way produces a net area of 189,682 SF. Parcel 1 located on the west side of Main Street comprises a strip of land 60 feet in width with a depth of 715 feet± along the northern end and 762 feet± along the southern end containing 42,689 SF. Parcel 2 is located on the east side of Main Street, across from Parcel 1, is trapezoidal in shape and contains 105,777 SF with street or 98,527 SF excluding road. Parcel 3 is located on the north side of the railroad tracks, west of Main Street, containing 49,716 SF with street or 48,466 excluding street. The site is 50 feet in width with a depth of 969 feet, more or less, excluding street. RELATIONSHIP TO LARGER PARCEL The parcels under appraisal are part of a larger railroad right of way that passes though central Minnesota in a general Northwesterly/Southeasterly direction. The parcels under analysis, while part of the ownership are not required for the . operation of the railroad right of way and constitute excess land. Recognition is given to the relationship of the parcels to the overall ownership. Corridor Concept The corridor concept recognizes that use creates value. The determination of value involves consideration of two elements including the value of individual segments of the corridors based upon the highest and best use of surrounding land (Across the Fence Technique) together with an enhancement or plottage value created by the ability of a corridor to connect two locational points. However, this concept relates only to the main right of way, which is generally 100 feet in width. The area under appraisal is outside of the main corridor and therefore does not meet the Corridor Concept requirements and will be valued accordingly. LEGAL DESCRIPTION No legal description of the property has been submitted to your appraiser. The area is defined by the maps and plats contained in this report and are subject to survey BRKW APPRAISALS INC. PAGE 10 PURPOSE/INTENT OF APPRAISAL The purpose of the appraisal is to determine the market value of the subject property as of December 15, 2005, which constitutes the latest date of inspection. The opinions of value, as stated in this report are predicated upon the Definition of Market Value contained herein. The intended use of the property is to assist in determining a purchase price. The intended users of the appraisal are representatives of the City of Albertville. PROPERTY RIGHTS APPRAISED The property rights appraised are those of the fee simple estate. The source of the following definition of fee simple estate is page 113 of the Dictionary of Real Estate Appraisal, fourth edition, © 2002, published by the Appraisal Institute: "Absolute ownership estate, subject only governmental powers power, and escheat. " unencumbered by any to the limitations of taxation, eminent SCOPE OF WORK other interest or imposed by the domain, police A detailed inspection of the property has been made coupled with an analysis of physical characteristics, zoning, market trends, and other pertinent information leading to a conclusion of highest and best use. As will be discussed later in this report, the highest and best use of the property is for service commercial use. A valuation analysis will be made based upon this highest and best use. Of the three approaches to value (Cost, Direct Sales Comparison and Income) only the Direct Sales Comparison Approach will be utilized. The Income Approach involves an analysis of the rental potential of a property and the conversion of that potential into present value. The site comprises vacant land. Land is generally not rented for investment purposes. As such, the Income Approach is not appropriate in this instance. The Cost Approach separates the value of a property into the components of land and improvements. Since the site comprises vacant land, this approach is not applicable. BRKW APPRAISALS INC. PAGE 11 • • • • • The Direct Sales Comparison Approach involves an analysis of sales of similar properties, which, after adjusting for various differences provides a value conclusion for the subject property. An analysis has been made of sales of acreage sites in the market area in providing in conclusion as to the market value of the property. Market Data regarding land sales, building sales and rental information were obtained by researching county records, city records, local data exchanges, and interviews with Real Estate Brokers, Appraisers, Developers and Lending Institution Representatives. Information and market data from these various sources were then verified and checked for accuracy and completeness. The most relevant and pertinent of the market data collected has been presented and analyzed within the approaches to value. ASSESSMENT AND TAXATION Parcels 1, 2 and 3 comprise portions of railroad right of way. As such, the property is real estate tax exempt. ZONING The zoning of the subject parcels are I-1 Limited Industrial District. Permitted uses under this classification include manufacturing or assembly of a wide variety of products that produce no exterior adverse influences such as warehousing of non -explosive material or equipment, printing and publishing, machine shops, major auto repair and so forth. The minimum lot width is 100 feet with front yard setback of 35 feet, side yard setback of 10 feet for interior sites and 30 feet for corner and 20 feet for rear yard. The maximum site coverage for building is 30% with building and hard surface areas at 85%. The maximum building height is 35 feet. The minimum lot size is determined by the foregoing along with criteria for parking and loading. BRKW APPRAISALS INC. PAGE 12 • • Zoning Map • BRKW APPRAISALS INC. PAGE 13 • MARKET VALUE DEFINITION Market Value as defined by the United States Department of the Treasury through the Comptroller of the Currency and the Office of Thrift Supervision is: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not of by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: ♦ buyer and seller are typically motivated; ♦ both parties are well informed or well advised, and each acting in what he considers his own best interest; ♦ a reasonable time is allowed for exposure in the open market; ♦ payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and ♦ the price represents the normal consideration for the property sold • unaffected by special or creative financing or sales concessions granted by any associated with the sale. • This definition is also recognized by the Appraisal Foundation by the Uniform Standards of Professional Appraisal Practice (USPAP). COMPETENCY PROVISION I have been a full time professional real estate appraiser since February 1971. Included in this report for your review is a copy of my professional qualifications. I have extensive experience in the appraisal of a wide variety of commercial real estate, including the subject property type. My experience and knowledge provide me with the necessary background to complete this appraisal assignment in accordance with the competency provision of the Uniform Standards of Professional Appraisal Practice. BRKW APPRAISALS INC. PAGE 14 CONTINGENT AND LIMITING CONDITIONS • This appraisal report is subject to the following Limiting Conditions and Assumptions: 1. The legal description contained herein is assumed to be correct. 2. The appraiser assumes no responsibility for matters legal in nature affecting the property appraised or the title thereto, nor does the appraiser render any opinion as to the title, which is assumed to be good and marketable. The property is appraised as though under responsible ownership. 3. No survey has been prepared of the property by the appraiser and no responsibility is assumed in connection with such matters. Sketches in this report are included only to assist the reader in visualizing the property. 4. Information furnished by others is assumed to be reliable. However, no responsibility for its accuracy is assumed by the appraiser. 5. In cases where no soil tests have been submitted, the appraiser has assumed a good subsoil condition, subject to visual observations noted in the report. 6. The appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil or structures, which would render it more or less valuable. The appraiser assumes no responsibility for such conditions or for engineering, which might be required to discover such factors. 7. The appraiser is not required to give testimony or appear in court because of having made this appraisal with reference to the property in question, unless arrangements have been previously made. 8. The distribution of the total valuation in this report between land and improvements applies only under the highest and best use of the property. 9. Disclosure of the contents of the appraisal report is governed by the Bylaws and Regulations of the professional appraisal organizations with which the appraiser is affiliated. 10. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and, in any event, only with proper written qualifications and only in its entirety. 11. Neither all nor any part of the contents of this report, or a copy thereof, shall be conveyed to the public through advertising, public relations, news, sales or any other media without written consent and approval of the appraiser. Nor shall the appraiser, firm or professional organization of which the appraiser is a member by identified without the written consent of the appraiser. 12. The value conclusion assumes all taxes and special assessments are paid in full. BRKW APPRAISALS INC. PAGE 15 • • • 0 Environmental Disclaimer: The value estimated in this report is based on the assumption that the property is not negatively affected by the existence of hazardous substances or detrimental environmental conditions. The appraiser is not an expert in the identification of hazardous substances or detrimental environmental conditions. The appraiser's routine inspection of and inquiries about the subject property did not develop any information that indicated any apparent significant hazardous substances or detrimental environmental conditions which would affect the property negatively. It is possible that tests and inspections made by a qualified hazardous substance and environmental expert would reveal the existence of hazardous materials and environmental conditions on or around the property that would negatively affect its value. The client is urged to retain an expert in this field, if desired. Americans With Disabilities Act: Title III of the Americans with Disabilities Act, "Public Accommodations and Services Operated by Private Entities", requires all privately owned/operated buildings, which provide public accommodations and/or services, to be equally accessible for persons with disabilities. All architectural, transportation and communication barriers must be removed, if readily achievable. The appraiser is not qualified to make a determination as to whether the property under appraisal is in compliance with this act. The client is urged to retain an expert in this field, if desired. HISTORY OF OWNERSHIP The Uniform Standards of Professional Appraisal Practice (USPAP) requires that appraisers report and analyze any sale transactions involving an appraised property that occurred during the three years (ten years by Federal Standards) prior to the effective date of an appraisal. The fee owner of record for Parcels 1, 2 and 3 is Burlington Northern Santa Fee, whose ownership dates back through mergers over 100 years. BRKW APPRAISALS INC. PAGE 16 METROPOLITAN AREA DESCRIPTION The subject property is located within the City of Albertville, Wright County, Minnesota. This is one of the thirteen counties that form the "Twin Cities" Metropolitan Statistical Area (MSA). The metropolitan area is located in the northern end of the southern 1/3 of the State of Minnesota adjacent to the state's east boundary with Wisconsin, and includes two Wisconsin Counties. The City of Minneapolis, in Hennepin County, together with the City of St. Paul, adjacent to the east in Ramsey County, forms the hub of the metropolitan area. These two cities are known nationally as the "Twin Cities". The metropolitan area has a population, according to the 2000 census, of 2,970,606 residents. Presented below is population information for census years 1980, 1990, and 2000 as well as the estimated populations for the two urban centers. Minneapolis - St. Paul - WI (MSA) Population POPULATION Change, 1980-2000 POPULATION CHANGE County 1980 1990 2000 1980-1990 1990-2000 1980-2000 Anoka 195,998 243,641 298,084 24.31% 22.35% 52.09% Carver 37,046 47,915 70,205 29.347. 46.52% 89.51% Chisa o 25,717 32,521 41,101 26.46% 26.38% 59.82% Dakota 194,279 275,227 355,904 41.67% 29.31% 83.19% Hennepin 941,411 1,032,431 1,116,200 9.67% 8.11% 18.57% Isanti 23,600 25,921 31,287 9.83% 20.70% 32.57% Ramsey 459,784 485,765 511,035 5.65% 5.20% 11.15% Scott 43,784 57,846 89,498 32.12% 54.72% 104.41% Sherburne 29,908 41,945 64,417 40.25% 53.57% 115.38% St. Croix - WI 43,262 50,251 63,155 16.16% 25.68% 45.98% Pierce - WI 31,149 32,765 38,604 5.19% 17.82% 23.93% Washington 113,571 145,896 201,130 28.46% 37.86% 77.10% Wright 58,681 68,710 89,986 17.09% 30.96% 53.35% TOTALS 2 198 190 2,540,834 2,970,606 15.59%1 16.91% 35.14% Urban Centers - Minneapolis 370,951 3]618 382,618 -0.69% 3.86% 3.15% St. Paul 270,230 2 287,151 0.74% 5.48% 6.26% TOTALS 641,181 6 669,769 -0.09% 4.55% 4.46% Source: U. S. Census Bureau The seven core counties consisting of Hennepin, Ramsey, Washington, Dakota, Anoka, Carver and Scott are connected to the Metropolitan Council. This Council oversees those facilities that extend beyond county boundaries and involve the entire metropolitan area, including public water, sanitary sewer, public transportation and metropolitan parks. The Metropolitan Council also coordinates and guides land use planning and development within the metropolitan area. BRKW APPRAISALS INC. PAGE 17 • is • • The metropolitan area has a strong and diversified economic base. Many industries serving regional, national and international markets have their corporate headquarters here, including 3M Company, General Mills/Pillsbury, Cargill, Land O'Lakes/Cenex, Xcel Energy, Medtronic and West Publishing. Other companies with corporate headquarters here include Target, Best Buy, and U.S. Bancorp. The unemployment rate for the metropolitan area (October 2005) was 3.1 % as compared with the national rate for the same time frame of 5.0%. The unemployment rate for the metropolitan area has typically been one to two percentage points below the national average. One factor influencing the metropolitan area is its highway system. A series of interstate highways allows residents to share in the benefits of the metropolitan area. Interstate Highway 94 enters the eastern portion of the metropolitan area from the State of Wisconsin. The interstate travels westward, passing the downtown areas of St. Paul and Minneapolis, then turning northwestward and continuing through the state to the state of North Dakota. Interstate Highway 35 extends through the state in a north/south direction. As it enters the metropolitan area from the south, the interstate separates into I-35W, which extends through Minneapolis, and I-35E, which extends through St. Paul. At the opposite end of the metropolitan area, the interstate reconnects and continues north through the balance of the state to Duluth. Interstate Highway 694/494 forms a beltway surrounding the cities of Minneapolis and St. Paul together with the first tier suburbs. The interstate system, coupled with the network of major and minor highways, allows easy access through the entire metropolitan area. It is common for residents in one community to work in another portion of the metropolitan area. As a result, the impact of plant closings or layoffs, while hurting, fails to have a devastating impact upon the metropolitan area. Also, the economic base is diversified which enables stronger segments of the markets to offset the weaker ones. This situation is reflected in the low unemployment rate. The Mississippi River passes through the metropolitan area providing barge service. The Minneapolis/St. Paul International Airport along with smaller commuter airports serves the area. Rail facilities also serve the metropolitan area. The general growth profile of the area's economy includes a well educated labor force; good training institutions; and a significant portion of the Twin Cities employment being in such growth industries as computers, business services, banking, and health services. Negative economic aspects for the area are a lack of an independent supply of energy; high wages in the manufacturing sectors; and relatively high taxes. While vacancy rates for office and industrial have been high due to the recession and slow recovery there are indications of market improvement in the industrial sector. The retail market remains strong. Overall, the Twin Cities diversification in basic industries tends to moderate the extremes of the peaks and troughs in the real estate cycle. The long-term overall growth ismetropolitan for the Twin Cities remains positive. On the following page is a metropolitan area location map. BRKW APPRAISALS INC. PAGE 18 S,?iN'P Lft JJ I;.NNFa JLLS` wa _nn. Anrn • Metropolitan Location Map 0 BRKW APPRAISALS INC. PAGE 19 . CITY DESCRIPTION The City of Albertville is strategically located in the east central portion of the State of Minnesota, between the Twin Cities and St. Cloud. The City's beginning around the turn of the century was tied to the presence of the railroad that extended through the community. Interstate Highway 94, which was constructed in the 1960s, extends through the community strengthening its position between the Twin Cities and St. Cloud. Evidence of this strength is show in its population history. Population History 1990 2000 Census 2004 Estimate Census City 1,251 3,621 5,368 County 68,710 89,986 106,734 Twin Cities MSA* 1 2,540,835 2,970,606 3,091,321 Source: U.S. Census/MN. State Demographer *The MSA reflects the 13 county metropolitan area. The near tripling of the population between 1990 and 2000 along with its near 50% increase between 2000 and 2004 is due to its location. I-94 has become a growth corridor with development moving up from the Twin Cities and down from St. Cloud. Added to this is the presence of the Albertville Premium Outlets. The two phases of this development (The Plaza and The Promenade) comprises a 100 store complex which has become a major regional retail center serves as strong customer draw, a major employment center and a focal point for satellite commercial development. The major employers in the community are as follows: Employer Major Products/Services # Employees Outlets at Albertville Retail Stores 800 Ind. School District#885 Schools 275 HGP Glass Product Manuf. 135 Truss Manufacturing Wood Product Manuf. 50 Land of Lakes Tile/Stone Concrete Product Manuf. 40 Fraser Steel Inc. Industrial Mach. Manuf. 32 Source: City of Albertville Residential development is growing rapidly. According to the 2000 Census, 65% of the homes in Albertville were constructed since 1995. The majority of the development has been in the southern two thirds of the city. To the south of the city is the Community of St. Michael. The two communities have blended together in various ways including the St. Michael/Albertville (STMA) school district. In this school district (#885) there is one elementary school in Albertville and two in St. Michael. There is one high school for the district, which is located in Albertville. It is noted that students living north of I-94 are BRKW APPRAISALS INC. PAGE 20 within the Elk River Area School District. 0 The main transportation highway passing through the City is Interstate Highway 94. The traffic volume along this highway is 55,000 vehicles per day. In the central portion of the community, County State Aid Highway 19 (La Beaux Avenue), which runs in a general north/south direction, provides a partial connection to the interstate and the City of St. Michael. County State Aid Highway 37 links CSAH 19 with balance of the connection to the Interstate. While the main commercial focus is on the Outlet Mall, other centers of commercial activity exists providing services to the residents. In the Central portion of the community, as the Southeast corner of CSAH 19 and 57th Street is a commercial complex known as the Albertville Crossings. This area anchored by a Corborn's Grocery store and contains a variety of stores. There is a free standing restaurant known as Major's Sports Grill. The Northwest corner of the intersection is the Parkside Commercial Center. In addition to a convenience store with gas pumps, the site is in the process of being developed with a one story office/service commercial facility. Commercial development is also located along CSAH 19 north of the interstate, which is separate from the outlet complex. The Burlington Northern Santa Fe operates a railroad whose tracks parallel I-94 and, with the exception of an area in the Central Business District, is adjacent to the south side of the interstate. In the early years of the city, industrial development occurred along the train route, with some of that industrial activity remaining in the eastern portion of the community. A newer industrial area is located at the southeasterly end of the community with companies such as Ahrens Enterprises, Old Castle Glass and Radiation Products among others. The future of the city is excellent. The city is located in a growth corridor with development moving towards it from the Twin Cities to the Southeast and the St. Cloud and Monticello areas to the Northwest. It is anticipated that strong growth will continue into the foreseeable future. • BRKW APPRAISALS INC. PAGE 21 • • • City Map BRKW APPRAISALS INC. PAGE 22 • Traffic Map 0 BRKW APPRAISALS INC. PAGE 23 • NEIGHBORHOOD ANALYSIS The subject parcels are located in a neighborhood that is bounded on the west by CSAH 19 (La Beaux Avenue), on the north by Interstate highway 94, on the east by Large Avenue extended and by 57`h Street NE on the south. The neighborhood is a mix of commercial, industrial and municipal uses, with scattered housing. The west boundary separates the site from newer residential development to the west and southwest, with the north boundary being a major highway separation. The east boundary separates the area from industrial with the south boundary separating the area from residential activity. The central portion of the neighborhood comprises a city park with a fire station at the south end, the St. Michael/Albertville Arena at the northwest end. Adjacent to the fire station is St. Albert's Catholic Church and parish center. The western end of the neighborhood contains a large area of vacant land for future development with a mini storage facility adjacent to the north along with older industrial, motel and other uses. At the Northwest corner of the neighborhood there is a BNSF railroad right of way adjacent to I-94. The railroad pulls away from the interstate creating a mixed development in the Northeast portion of the neighborhood. The northeastern portion of the neighborhood is triangular in shape with single . family residential in the central portion part of the "downtown" area in the eastern portion. The City Hall, Post office, bank, and auto body shop are located in this area, together with a park in ride. The commercial development continues south of the railroad tracks in the eastern portion of the neighborhood including 3 taverns, a church converted to a dance studio along with scattered residential. Older industrial activity is located along the southern boundary of railroad tracks. • The east central portion of the neighborhood comprises what appears to have been the original business district of Albertville. This area contains City Hall along with the post office, an older building containing an automobile body shop and a hair salon, 3 taverns, a church converted into a dance studio and several houses. The subject property is located in this area. To the east is residential extending to the east boundary of the neighborhood. A new City Hall is planned for the subject neighborhood, which will maintain the neighborhood as the center of municipal recreational and services. However, other commercial and industrial activity is moving away from the neighborhood into new development areas of the community. The situation will continue into the foreseeable future. BRKW APPRAISALS INC. PAGE 24 • • Neighborhood Map • BRKW APPRAISALS INC. PAGE 25 :7 • SITE DESCRIPTION The subject property comprises three parcels located east and west of Main Street, South of 59tb Street in the City of Albertville. The combined area of the parcels is 198,182 SF gross with 8,500 SF in street right of way. Deducting the right of way produces a net area of 189,682 SF. Parcel 1 located on the west side of Main Street comprises a strip of land 60 feet in width with a depth of 715 feet± along the northern end and 762 feet± along the southern end containing 42,689 SF. Parcel 2 is located on the east side of Main Street, across from Parcel 1, is trapezoidal in shape and contains 105,777 SF with street or 98,527 SF excluding road. Parcel 3 is located on the north side of the railroad tracks, west of Main Street, containing 49,716 SF with street or 48,466 excluding street. The site is 50 feet in width with a depth of approximately 969 Feet. The sites comprise level terrain. Parcel 1 is a dirt surfaced parking area with the site having approximately 60 feet of street frontage. A portion of Parcel 2 has a dirt covering where it appears that a building once stood, with the balance being grass. The parcel has approximately 125 feet of street frontage for a depth of approximately 90 feet, where it widens to 145 feet. Volleyball Courts and a fence encroach into the southern portion of the site. Parcel 3 is basically grass covered with approximately 50 feet of street frontage. A park and ride abuts the northeastern portion of the parcel. Utilities The utilities serving the subject property are public water, public sanitary sewer, gas, electricity, paved street and concrete sidewalk. Soils No engineering test borings have been submitted on the subject property. In the absence of engineering test borings to indicate the composition of the subsoil, its suitability for bearing purposes and to locate a water table, if any, based upon a visual inspection it is assumed that no serious problems exist. Environment No direct evidence is available which would indicate the presence of environmental hazards including, but not limited to toxic waste and none are assumed. Your appraiser is not qualified to detect such substances. You are hereby urged to retain an expert in the field, if desired. BRKW APPRAISALS INC. PAGE 26 t r s q 6$ 6 3 In1 G Too a 44 « PP "'0v,•, ' <� I a s i �u. a.• I j... ' 3fi34il 364312 .. i+C. :3'€34i , , _ Kteze " J \ l v �A '� '� •``X % ` t` • �M. t '� {��tP'iS"y � � cafia�t.,�.. `. � cg� f99xsx`} � �`"., , zco`"AN" 11 Sr J�..`•.°a'=t... i.... tom' P el € x�fri ;2 J _.o �r Q. � t is Parcel 2 MCA14L zz 4 . t 'JUE7 5 l 1i 1 1 1 1 1 j 1a 6F �h� a t � d 'TEA M 1�, ff� m T r3 �� Pam"" 4 Sritr 9• .. 3-<�`7f'"-?a*-6� cl a V' till, uAIT' � f a a . ..c � I x � � r tom:-n� � .:>• � �.�, y. : �� `'t ls3E`*' �� i l t _� a � X 405 nfi PARK .s}€ I M s ... .. sa 011303 =4lxsiti�;cr a2 rr �� a i� f I t�--- r ,{ �I i k.. Gt1�4�i, oI €� Ja?4i a P t 3f3f6f f o ®� Ga 3u'6mmum rf . sr� V —6 q""„s� v "ice �aJ 1. "a �.tt4b`?.-•f ,6 0 � Plat Map BRKW APPRAISALS INC. PAGE 27 • • • • • Railroad Map — Parcel 1 • Railroad Map Parcel 2 BRKW APPRAISALS INC. PAGE 28 'ry :r,t5 U'6 con u T.B5pu3 41, INN 1 , 7 /^777' �r._%,„�.,.,m..„,%,� / r,,.,., r.. - yr�•ar+r- r x 1 a 9 T . _3 A, a - k_t / lk � 4�0 g City of NScrtvil€e IMonticello SuubdivWon - L.S.0202/1 Nber'Ole .M=.. S`%. A" E.e ; VOL Sec, 01-69015 Wright County, ON RY iilV-ki., heop f}7 Ms.�r-e&ata ' sec, iT420N, R24W 5ih, PM !June 4 2006 Rev 36-13-20C,5 M,P. 26,85 - RAN Railroad Map Parcel 3 BRKW APPRAISALS INC. PAGE 29 • • • • HIGHEST AND BEST USE ANALYSIS In the highest and best use analysis, the appraiser identifies the most profitable, competitive use to which a property can be put. The highest and best use analysis is an economic study of market forces that is focused on the subject property. In appraisal, the concept of the highest and best use represents the premise upon which value is based. The analysis of highest and best use considers the property both as vacant, and as improved. The term highest and best use is defined in The Dictionary of Real Estate Appraisal, fourth edition,© 2002 published by the Appraisal Institute, page 135, as: "The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability. In estimating the highest and best use, the four criteria that are included in both the analysis of the site as though vacant and as improved are as follows: i1. Legally Permissible Use: Determining which uses are legally permitted for the site. This primarily deals with issues of the existing zoning, community land use guide restrictions, and any private restrictive covenants on the property. • 2. Physically Possible Use: Determine the physically possible uses of the site based upon physical characteristics such as size, shape, soil conditions, topography, and access. 3. Financially Feasible Use: Determine which possible and permissible uses produce a net return to the subject site. This criteria tests for the financial feasibility of the ultimate uses to determine if a particular use generates a positive return to the site. 4. Maximally Profitable Use: Determine which use, among the feasible alternatives, is the most profitable use of the subject. This final test determines which of the financially feasible alternatives will generate the maximum return to the site. BRKW APPRAISALS INC. PAGE 30 Parcel 1 • Parcel 1 comprises a 42,689 SF tract of land with a width of 60 feet. Lion's Park abuts to the South with railroad right of way to the north. The site fronts on Main Street that in the -area of the subject contains a mix of uses. Consideration has been given to various potential uses. In terms of commercial, two types of development exist, retail and service. Retail involves uses that rely on impulse buyers. This type of use requires visibility and accessibility to major streets for customer draw. Also, retailers tend to congregate with other retail activity, such as shopping centers in order to share customer draw. Service or destination oriented commercial use involves those uses were customers seek out goods and services. In some of these uses highway visibility is important with access not as critical while others consider neither highway visibility or access as critical. Service uses include office, automobile dealerships, furniture stores, lighting studios and so forth. The subject is located in an area that is presently more service commercial in nature. However, the elongated shape of the site limits its desirability for this type of use. The site is zoned I-1 Limited industrial. Generally speaking, limited industrial users tend to located in modern industrial parks where there is a homogeneous grouping of similar activity with adequate infrastructure. Also, the shape of the site reduces its desirability for industrial use. However, there are limited industrial users willing to work with a difficult shape for a lower purchase price. The site, by itself, would not meet the minimum lot width and setback requirements of the City. However, this is part of a larger railroad right of way with the shape created in part by the intended separation from the larger parcel. With recognition to that situation, it was concluded that the highest and best use of the parcel is for limited industrial use. Parcel 2 Parcel 2 contains 98,527 SF, excluding street. The site is also zoned I-1 industrial. However, the shape of site allows for a potential for commercial use. Of the two types of commercial use, service commercial would reflect the most probable use. The street frontage of 145 feet is sufficient for service commercial. In older urban centers, commercial uses are typically constructed without on site parking. However, modern commercial uses require onsite parking. The size of the site allows for on site parking. After analyzing the foregoing data, it was concluded that the highest and best use of the combined parcels is for service commercial use. • BRKW APPRAISALS INC. PAGE 31 • Parcel Parcel 3 comprises 48,466 SF, excluding street. The site has a width of 50 feet with the railroad tracks to south and parking to the north with the area north of site being zoned public/institutional. The site has the same restrictions as Parcel 1 with the highest and best use being for limited industrial use. EXPOSURE TIME AND MARKETING PERIOD According to the Uniform Standards of Professional Appraisal Practice, exposure time is a historical concept and is always presumed to have occurred prior to the effective date of the appraisal. The Dictionary of Real Estate Appraisal, 4th Edition,© 2002 page 105, published by the Appraisal Institute, defines exposure time as: The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market. The overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort. Exposure time is different for various types of real estate and value ranges and under various market conditions. The Dictionary of Real Estate Appraisal, 4th Edition, page 175,© 2002 published by the Appraisal Institute, defines marketing time (period) as: The time it takes an interest in real property to sell on the market subsequent to the date of appraisal. Reasonable marketing time is an estimate of the amount of time it might take to sell an interest in real property at its estimated market value during the period immediately after the effective date of the appraisal; the anticipated time required to expose the property to a pool of prospective purchasers and to allow appropriate time for negotiation, the exercise of due diligence, and the consummation of a sale at a price supportable by concurrent market conditions. The parcels are unusually shaped sites, which would be difficult to market unless the price is right. The analysis of the parcels includes recognition of the shape with the price influencing the marketing time. After analyzing the market it was concluded that the exposure time would approximate one year, with the marketing • time having the same time frame of one year. BRKW APPRAISALS INC. PAGE 32 • DIRECT SALES COMPARISON Estimating the value of land is most reliably accomplished by researching and analyzing recent sales of comparable land. The sale properties may have varying degrees of similarity to the subject in location, zoning, size, shape, topography, soil conditions and/or highest and best use. An indication of value is derived by making appropriate adjustments to allow for the value related differences in the land sales in comparison to the land being appraised. The conclusion of highest and best use is for limited industrial use for Parcels 1 and 3 and service commercial for parcel 2. Correspondingly, an in-depth search was undertaken to locate data on recent sales of land which has a similar highest and best use development potential. Several sources were checked for land sales information including the appraisal office files, county records, local data exchanges providing sale information, and the Multiple Listing Service. From the available researched land sales, those having the highest degree of overall comparability to the subject have been individually detailed in the body of this report. Following the land sale information is a location map showing the location of the land sales in relation to the subject site, and a land sale summary grid to aid the reader in the analysis. • • BRKW APPRAISALS INC. PAGE 33 • �dfr f As 4 1 m4 '' T• vb. r Zu j MAL Sale #1: 5548 Barthel Industrial Dr. - Albertville Legal Description: Lot 1 Block 2 Barthel's Industrial Park Buyer/Seller: Nextex Properties/Scherer Brothers Lumber Zoning: I-1 Industrial Utilities: All Available Size of Site: 177,198 SF Sale Date: February 10, 2005 Sale Price: $322,000- cash sale, Verified by Seller Indicated Factor: $1.82/SF The property is located in the Barthel Industrial Park. The area comprises light industrial on the east side of Barthel Street with residential on the west. The site is level. Railroad tracks abut the northern side. The site was vacant as of the effective date of appraisal. BRKW APPRAISALS INC. PAGE 34 Legal Description: Lot 8 Block 2 Barthel's Industrial Park Buyer/Seller: Aherns Enterprises/Scherer Brothers Lumber Zoning: I-1 Industrial Utilities: All Available Size of Site: 140,263 SF Sale Date: July 24, 2003 Sale Price: $246,233- cash sale, Verified by Buyer Indicated Factor: $1.76/SF The property is located at the Southeast corner of Barthel Drive and 53`d Street. The area comprises light industrial on the east side of Barthel Street with residential on the west. The property is improved with an industrial building comprises office and warehouse. The site has a gradual slope from west to east with the building constructed with office at grade level and the rear of the warehouse having drive-in overhead doors opening to a level rear yard and access to 53rd street. The yard area is fenced. • BRKW APPRAISALS INC. PAGE 35 • Sale #3: 5454 Barthel Industrial Dr - Albertville Legal Description: Lot 2, Block 2, Barthel's Industrial Park • Buyer/Seller: Keep It Safe, LLC/Scherer Bros. Lumber Co. Zoning: I-1, Industrial Land Area: 118,050 square feet, or 2.71 acres Sale Date: May 2, 2003 Sale Price: $206,584 cash — Verified with Buyer 28,000 soil corrections cost $234,584 total is Indicated Factor: $1.99/SF The property is located on the east side of Barthel Drive across from 541h Street. The area comprises light industrial on the east side of Barthel Street with residential on the west. The property was purchased for a mini storage facility, which is now on site. The topography is level. Prior to purchase, buyer conducted soil boring test and found intermittent layers of black dirt and clay. This was unsuitable for proposed project, requiring excavation, importing and correction of soil. The South 50 feet or approximately 15% of site is encumbered with a drainage/utility easement for underground force main and storm sewer lines. BRKW APPRAISALS INC. PAGE 36 KALLANO AVENi� n p �•s, sx FOURTH �u7 � z�sx,�. t �,�ACI ti �, e' r, �' vast c"' PAR ID „s *r t g v: MME AL s4 sx 5 CEN " T y w.. Uj > 24 NS.a. ca $'35.6i,,.•. Sale #4: 1125 571h St, NE - Albertville Legal Description: Lot 2 Block 1 Parkside Commercial Center Buyer/Seller: Premier Development Group/Pilot Land • Development Company Zoning: B-2A, Limited Business Utilities: All Available Size of Site: 172,967 SF - Useable Sale Date: May 23, 2005 Sale Price: $765,000 - cash sale, Verified by Buyer Indicated Factor: $4.42/SF — Useable The site is located in the Northwest quadrant of County Road 19 and 57th Street. The total land area is 260,087 SF with 87,120 SF comprises low land encumbered with a drainage and utility easement, reducing the useable area to 172,967 SF. The useable area comprises level terrain. A one story multi -tenant office building is presently under construction. BRKW APPRAISALS INC. PAGE 37 • • OR Xl` 0 �et u Is i m�,�pp.. SECUt'+D !! Sale #5: Legal Description: g p Buyer/Seller: Zoning: Utilities: Size of Site: Sale Date: Sale Price: Indicated Factor: 4 jj SE Corner of County Rd. 19 and 571h St NE Albertville Lot 1 Block 1 Albertville Crossing 2nd Addition Albertville 2003 LLC/Cascade II Land Co. LLC B-3 Highway Commercial All Available 70,131 SF April 14, 2003 $574,992 - cash sale, Verified by Buyer $8.20/SF The property comprises a pad site at the entrance to a new retail complex anchored by Coborn's Grocery Store along with a multi tenant commercial center. The site comprises level terrain. The property is now improved with a commercial building containing 3 tenants. BRKW APPRAISALS INC. PAGE 38 0 r �Y �, M Y' I L,LF o Sale #6: Legal Description: Buyer/Seller: Zoning: Utilities: Size of Site: Sale Date: Sale Price: Indicated Factor: E Side of Co. Rd. 19 and 571h Street NE Albertville Lot 2 Block 1 Albertville Crossing 2"d Addition Albertville 2003LLC/Cascade II Land Co. LLC B-3 Highway Business All Available 78,960 SF January 15, 2003 $622,560- cash sale, Verified by Buyer $7.88/SF The property comprises a pad site within newer retail complex anchored by Coborn's Grocery Store along with a multi tenant commercial center. The site comprises level terrain. The property is now improved with two buildings. One building is a free standing restaurant, now known as Major's Bar and Grille and a second multi tenant service commercial building. • BRKW APPRAISALS INC. PAGE 39 • g, ' 4 8 J* I- a a. 3^Y a y i aa. Sale #7: 6554 Lamplight Drive - Albertville Legal Description: Lot 6 Block 1 the Shoppes at Town Lakes One Addition Buyer/Seller: Albertville Lodging LLC/Contractor Property Development Zoning: PUD - Commercial Utilities: All Available Size of Site: 87,556 SF Sale Date: February 1, 2004 Sale Price: $711,399- cash sale, Verified by Seller Indicated Factor: $8.13/SF The property is located east of County Road 19 (La Beaux Avenue) south of 67`h Street. The site comprises level terrain. The property was purchase for development with a Country Inns and Suites facility, which is now on site. The site is separated from County Rd 19 with a site developed with a restaurant. The area to the north is being development with multiple buildings containing service commercial activity. The land to the south has since been developed with Phase II of the Albertville Outlet Facility with the rear of the facility abutting the above • property. BRKW APPRAISALS INC. PAGE 40 • • Land Sales Location Map • BRKW APPRAISALS INC. PAGE 41 • • 0 ANALYSIS OF COMPARABLE SALES The subject property comprises 3 parcels located east and west of Main Street, South of 59th Street. Parcel 1 Parcel 1 contains 42,689 SF. The site is zoned I-1 Industrial with the highest and best use reflecting the zoning. Of the six sales contained herein, Sales Following is a grid that summaries the salient features of the comparables in relation to the subject. Land Sale 1 Sales Summar� Grid — Parcel Sale 2 Sale 3 I Sale 4 Subject Location 54XX Barthel Albertville 5234 Barthel Albertville 5454 Albertville 1125-571h Albertville Main Street Albertville Size 177,198 SF 140,263 SF 118.050 SF 172,967 SF 42,689 SF Shape Rectangular Rectangular Rectangular Irregular Irregular Topo. Level Level Level Level Level Soils Good Good Corrected Good Good Utilities All Avail All Avail. All Avail. All Avail. All Avail Zoning: I-1 Industrial 1-1 Industrial 1-1 Industrial B-2A Comm. 1-1 Industrial Sale Date: 2/10/05 7/24/2003 5/2/2003 5/23/2005 ---- Sale Price: $322,000 $246,233 $234,584 $765,000 ---- Terms: Cash Cash Cash Cash Cash Price/SF $1.82/SF $1.76/SF $1.99/SF $4.42/SF ---- Following is a grid that analyses the comparables in relation to the subject. BRKW APPRAISALS INC. PAGE 42 Land Sales Adjustment Grid - Parcel I Sale 1 Sale 2 Sale 3 Sale 4 Sale Date 02/ 10/05 7/24/03 05/02/03 05/23/05 Sale Price/SF $1.82 /S $1.76 /S $1.99 $4.42 /SIF Property Rights x 1.00 x 1.00 x 1.00 x 1.00 $1.82 /S $1.76 /S $1.99 /ST, $4.42 /S Financing x 1.00 x 1.00 x 1.00 x 1.00 $1.82 /S $1.76 /S $1.99 /S $4.42 /S Sale Conditions x 1.00 x 1.00 x 1.00 x 1.00 $1.82 SF $1.76 /S $1.99 /S $4.42 /SIF Soil Conditions x 1.00 x 1.00 x 1.00 x 1.00 $1.82 /S $1.76 /S $1.99 /S $4.42 /S Market Conditions x 1.04 x 1.12 x 1.13 x 1.03 $1.89 /S $1.97 /S $2.25 /S $4.55 /S Location - 20 % - 20 % - 20 % - 50 % Size + 10 % + 10 % + 5 % + 10 % Shape - 20 % - 20 % - 20 % - 30 % Topography 0 0 0 0 Zoning 0 0 0 0 - 30 % - 30 % - 35 % - 70 % Net Adjustment Indicated Factor $1.32 /S $1.38 /S $1.46 /S $1.37 /S Property Rights Appraised The property rights appraised reflect fee simple title. All of the sales involved transfer of fee simple estate, requiring no adjustment. Financing 0 • The definition of market value, as stated in this report, reflects cash or cash equivalent financing. The comparables are all cash transactions requiring no • adjustments. BRKW APPRAISALS INC. PAGE 43 • • Conditions of Sale The sales involve arm length transactions with no unusual conditions of sale. Soil Conditions The comparables, with the exception of Sale 3, had adequate soil conditions resulting in no adjustment. Sale 3 needed some soil correction, which is included in the sale price, with no additional adjustment required. Market Conditions Consideration has been given to a market conditions (time) adjustment between the date of sale of each of the comparables and the effective date of this report. The dates of sale range from January 2003 through May 2005. While the economy remains slow, a demand continues to exist for sites such as the subject. Based upon an analysis of the market, it was concluded that an upward adjustment of 5% per year would reflect the market conditions. Location Sales 1, 2 and 3 are located within a modern industrial park. However, the properties are located across the street from residential. The proximity of residential places restrictions on the comparables in terms of uses that have minimal impact on residential. The subject is located in an older mixed use area that is less desirable for industrial purposes. Taking all factors into account, it was concluded that the location of the comparables is superior. Sale 4 is located in the Northwest quadrant of County Road 19 and 57rh Street. The location is service commercial in nature with the overall location being superior to the subject. Size Parcel 1 contains 42,689 SF. The comparables range in size from 118,050 SF to 177,198 SF. As the size of a site decreases, the price per square foot increases. This is mitigated to a certain degree by the ability of the larger sites to provide greater development potential. Overall, the comparables are considered inferior in size. BRKW APPRAISALS INC. PAGE 44 Shape The comparables are generally rectangular in shape whereas the subject is elongated, which limits it development potential. It is recognized that the site is part of a larger parcel, which influences the shape impact. Overall, the comparables are considered superior. Topography The parcel comprises level terrain. All of the comparables have similar terrain, resulting in no adjustment. Zoning The subject parcel is zoned I-1 industrial. Sales 1, 2, and 3 have the same zoning, resulting in no adjustment. Sale 4 is zoned 132-A commercial. The impact of this has been reflected in the location adjustment, with no additional adjustment required. Summary The adjusted prices range from $1.32/SF to $1.46/SF. After analyzing all of the foregoing data, it was concluded that a factor of $1.40/SF would reflect the market attitude. Following are the calculations: Size of Parcel — 42,689 SF 42,689 SF x $ 1.40/SF = Opinion of Value — Parcel 1 Parcels 2 $59,765 Rounded to $60,000 $60,000 Parcel 2 contains 105,777 SF with 98,527 SF useable. The site is zoned I-1 Industrial with the highest and best use being service commercial. Of the six sales contained herein, Sales 4, 5, 6, and 7 were utilized. Following is a grid that summaries the salient features of the comparables in relation to the subject. BRKW APPRAISALS INC. PAGE 45 • • • • • • Land Sale 4 Sales SummarN Grid — Parcel Sale 5 Sale 6 2 Sale 7 Subject Location 1125-57" Albertville 56xx LaCentre Albertville 56xx LaCentre Albertville 6554 Lamplight Albertville Main Street Albertville Size 172,967 SF 70,131 SF 78,960 SF 87,556 SF 98,527 SF Shape Irregular Irregular Rectangular Irregular Irregular Topo. Level Level Level Level Level Soils Good Good Good Good Good Utilities All Avail. All Avail All Avail All Avail. All Avail Zoning: B-2A Comm. B3 Hwy Bus B-3 Hwy Bus PUD-Comm I-1 Industrial Sale Date: 5/23/2005 4/14/2003 1/15/2003 2/01/2004 ---- Sale Price: $765,000 $574,992 $622,560 $711,399 ---- Terms: Cash Cash Cash Cash Cash Price/SF $4.42/SF j $8.20/SF j $7.88/SF j 8.13/SF j ---- Following is a grid that analyses the comparables in relation to the subject. BRKW APPRAISALS INC. PAGE 46 Land Sales Adjusti-nent Grid - Parcel 2 Sale 4 Sale 5 Sale 6 Sale 7 Sale Date 05/23/05 04/ 14/03 01/ 15/03 02/01/04 Sale Price/SF $4.42 /S $8.20 /S $7.88 $8.13 /S Property Rights x 1.00 x 1.00 x 1.00 x 1.00 $4.42 /S $8.20 /S $7.88 /S $8.13 /S Financing x 1.00 x 1.00 x 1.00 x 1.00 $4.42 /S $8.20 /S $7.88 /S $8.13 /S Sale Conditions x 1.00 x 1.00 x 1.00 x 1.00 $4.42 SF $8.20 /S $7.88 /S $8.13 /S Soil Conditions x 1.00 x 1.00 x 1.00 x 1.00 $4.42 /S $8.20 /S $7.88 /S $8.13 /S Market Conditions x 1.03 x 1.13 x 1.14 x 1.09 $4.55 /S $9.27 /S $8.98 /S $8.86 /S Location - 50 % - 60 % - 60 - 60 % Size + 5 % 0 0 0 Shape - l () % - 10 % - l () % - 10 % Topography 0 0 0 0 Zoning 0 0 0 0 - 55 % - 70 % - 70 % - 70 OYo Net Adjustment Indicated Factor $2.05 /S $2.78 /S $2.69 /S $2.66 /S As with the analysis of Parcel 1 no adjustment is needed for property rights, financing and conditions of sale. All of the comparable had good soil conditions requiring no adjustment. The market conditions adjustment is 5% per year, the same as in the Parcel 1 analysis. Location Sale 4 is located in the NW quadrant of County Road 19 and 57th Street in a newer commercial area, which is superior to the area of the subject. BRKW APPRAISALS INC. PAGE 47 • • is • Sales 5 and 6 are located in the Southwest corner of County Road 19 and 57`h Street. The properties abut County Road 19 and are adjacent to a shopping center development with the location being superior to both the subject and to a certain degree Sale 4. Sale 7 is located east of County Road 19, north of the Albertville Outlet Mall. The proximity of the outlet mall, DB Michael's Restaurant and other commercial makes the overall commercial location superior to the subject. Size Parcel 2 contains 98,527 SF. Sales 5, 6, and 7 ranges from 70,131 SF to 87,556 SF with the sizes considered similar. Sale 4 at 172,967 SF of useable area is inferior to that of the subject. Shape The parcel has an irregular shape. The comparables have more useable shapes and are superior. Topography The subject and the comparables have level terrain requiring no adjustment. . Zoning The subject is zoned I-1 industrial. A rezoning would be required. However, given the adjacent development it appears that such a change would be within the realm of reasonable probability. The comparables are zoned commercial with the impact reflected in the location adjustment. No additional adjustment is required. Summary The adjusted prices range from $2.50/SF to $2.78/SF. After analyzing the foregoing data, it was concluded that a factor of $2.60/SF would reflect the market attitude for the useable area. Approximately 7,250 SF of the overall site is within street right of way. This portion of the site has no utility, and hence no value. Following are the calculations: Size of Parcel — 105,777 SF 98,527 SF useable x $2.60/SF = $256,170 7,250 SF -Street x $0/SF = $ 0 $256,023 Rounded to $256,000 • Opinion of Value for Parcel 2 $256,000 BRKW APPRAISALS INC. PAGE 48 Land Sales Adjusti-nent Grid - Parcel I Sale 1 Sale 2 Sale 3 Sale 4 Sale Date 02/10/05 7/24/03 05/02/03 05/23/05 Sale Price/SF $1.82 /S $1.76 /S $1.99 $4.42 /S Property Rights x 1.00 x 1.00 x 1.00 x 1.00 $1.82 /S $1.76 /S $1.99 /S $4.42 /S Financing x 1.00 x 1.00 x 1.00 x 1.00 $1.82 /S $1.76 /S $1.99 /S $4.42 /S Sale Conditions x 1.00 x 1.00 x 1.00 x 1.00 $1.82 SF $1.76 /S $1.99 /S $4.42 /S Soil Conditions x 1.00 x 1.00 x 1.00 x 1.00 $1.82 /S $1.76 /S $1.99 /S $4.42 /S Market Conditions x 1.04 x 1.12 x 1.13 x 1.03 $1.89 /S $1.97 /S $2.25 /S $4.55 /S Location - 20 % - 20 % - 20 % - 50 % Size + 10 % + 10 % + 5 % + 10 % Shape - 20 % - 20 % - 20 % - 30 % Topography 0 0 0 0 Zoning 0 0 0 0 - 30 % - 30 % - 35 % - 70 % Net Adjustment Indicated Factor 1 $1.32 /S $1.38 /S $1.46 /S $1.37 /S Parcel 3 Parcel 3 comprises a gross area of 49,716 SF with 48,446 SF excluding Street. The highest and best use of the site is for limited industrial development. Sales 1, 2, 3 and 4 were used in analyzing the site. Following is the adjustment grid. • All of the comments and adjustments discussed in regards to Parcel 1 apply with equal validity to Parcel 3. The adjusted prices range from $1.32/SF to $1.59/SF. After analyzing all of the foregoing information, it was concluded that a factor of $1.40/SF would reflect the market for the useable area of this parcel. Following - are the calculations: BRKW APPRAISALS INC. PAGE 49 .7 Size of Parcel — 49,716 SF — 48,466 SF - Useable x $1.40/SF = $67,852 1,250 SF — Street x $0/SF = $ 0 $67,852 Rounded to $68,000 SUMMARY Value of Parcel 1 $ 60,000 Value of Parcel 2 $256,000 Value — Parcel 3 $ 68,000 • Total — Combined Parcels $384,000 • Opinion of Value by Direct Sales Comparison — 3 parcels $384,000 BRKW APPRAISALS INC. PAGE 50 • RECONCILIATION The opinions of Value as obtained from the various approaches are: Direct Sales Comparison Value of Parcel 1 $ 60,000 Value of Parcel 2 $256,000 Value — Parcel 3 $ 68,000 Total — Combined Parcels $384,000 Cost Approach Not Applicable Income Approach Not Applicable The property being appraised reflects land only. The best measure of value is the Direct Sales Comparison at it relates to land. The Income Approach has been excluded since land is typically not rented for investment purposes. The Cost Approach, has been excluded since the site is vacant. • After analyzing all of the data contained herein, it was concluded that the market value of the fee simple interest of the three land parcels as of, December 15, 2005, is Value of Parcel 1 $ 60,000 Value of Parcel 2 $256,000 Value — Parcel 3 $ 68,000 Total — Combined Parcels $384,000 • BRKW APPRAISALS INC. PAGE 51 • CERTIFICATION The undersigned does hereby certify that in this appraisal report: 1. This appraisal assignment is not based on a requested minimum valuation or specific valuation for approval of a loan. The estimate of market value identified in this report was developed independent of any undue influence. 2. The compensation for completing this assignment is not contingent upon the development or report of a predetermined value or direction in value that favors the cause of the client, the amount of the value, the attainment of a stipulated result or the occurrence of a subsequent event directly related to the intended use of the appraisal. 3. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 4. I have no personal interest or bias with respect to the subject matter of this appraisal report or the parties involved. 5. To the best of my knowledge and belief the statements of fact contained in this appraisal report upon which the analyses, opinions and conclusions expressed herein are based, are true and correct. 6. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial and unbiased analyses, opinions and conclusions. 7. This appraisal report has been made in conformity with and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice. 8. No one other than the undersigned prepared the analyses, conclusions and opinions concerning real estate that are set forth in this appraisal report. 9. I have made a personal inspection of the property that is the subject of this report. 10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 11. As of the date of this report, Michael J. Bettendorf, MAI, has completed the requirements of the continuing education program of the Appraisal Institute. 12. Disclosure of the contents of this appraisal report is governed by the by-laws and regulations of the Appraisal Institute. 13. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser or the firm with which he is connected, or any reference to the Appraisal Institute or MAI designation) shall be disseminated to the public through advertising media, public relations media, news media, sales media, or any other public means of communication without the prior written consent and approval of the undersigned. • Michael J. Bettendorf, MAI BRKW APPRAISALS INC. PAGE 52 • APPRAISER QUALIFICATIONS MICHAEL J. BETTENDORF, MAI BRKW APPRAISALS, INC. Spruce Tree Centre Suite 314 1600 University Avenue St. Paul, Minnesota 55104 EDUCATION: B.A. - St. John's University, Collegeville, MN. - 1969 Successfully completed courses sponsored by the American Institute of Real Estate Appraisers (Appraisal Institute): Basic Appraisal Principles Methods and Techniques Capitalization Theory and Techniques Urban Properties Condemnation Standards of Professional Practice Numerous Seminars on various aspects of real estate appraising, including Business Valuation, Land Use Planning/Regulation, Engineering Drawings, Review Appraising, Market Analysis, Highest and Best Use. PROFESSIONAL MEMBERSHIPS & ASSOCIATIONS Member - Appraisal Institute (MAI) Regional Representative - Appraisal Institute - Ethics Administrator -Region 3 - 2000- 2005 President - Minnesota Chapter #35 - A.I.R.E.A. - 1987 Licensed Certified General Real Property Appraiser - State of Minnesota - I.D. #4001398 Member - International Right of Way Association Member - Lambda Alpha International (Honorary Land Economics Society) Member - Faculty of Appraisal Institute/A.I.R.E.A. (1978-1991) Member - Faculty of University of Minnesota - Extension Division (1978-1983) Instructor - A.I.R.E.A. Course "Single Family Residential Appraisal" and "Residential Valuation" - University of Minnesota 1978, 1979, 1980 and 1984. "Residential Valuation" - University of North Carolina, 1981. Instructor - B.O.M.A. - "Real Estate Investment and Finance" - University of Minnesota - 1987; St. Cloud University - 1990 and 1991/92. Instructor - Master of Science Program - Real Estate Appraisals - St. Thomas University - 1996, 1999 EXPERIENCE February, 1971 to July, 1979 - Independent Fee Appraiser, Bettendorf Appraisals, Inc. serving as Vice -President and then President. July, 1979 to October, 1981 - Chief Appraiser, Farmer's and Mechanic's Savings Bank of Minneapolis - Mortgage Officer. October 1981 - March 1991 - Independent Fee Appraiser - Dahlen and Dwyer, Inc. March, 1991 to Present - Independent Fee Appraiser - Bettendorf Rohrer Knoche Wall, • Inc, now BRKW Appraisals, Inc. - President. BRKW APPRAISALS INC. PAGE 54 • TYPES OF PROPERTIES APPRAISED: Single family, multi -family, shopping centers, retail buildings office buildings, industrial buildings, hotels, golf courses, sports arenas, hospitals, schools and colleges, development land, Railroad corridors, easements for public utilities and assessment analyses. CLIENTS INCLUDE: State of Minnesota; Ramsey County; Cities of Bloomington, Blaine, Shoreview, Woodbury, So. St. Paul, Richfield, Inver Grove Heights, St. Paul, Little Canada, Minnetonka, New Brighton; Lending institutions including US. Banks, Twin City Federal, American (Midway) Bank, Highland Bank, Comerica, St. Paul Port Authority: Corporations including Boston Bay Capital, Burlington Northern Santa Fe, Canadian Pacific, Gillette Company, General Cinema, Land for Public Trust, Health Partners, ANT, LLC, White Consolidated, Relocation Resources, Prudential Relocation, and numerous private clients. Testified as expert witness in District Court Proceedings. Served as Court Appointed Commissioner on real estate matters. Revised -March 2005 • • BRKW APPRAISALS INC. PAGE 55 • COMPANY PROFILE BRKW APPRAISALS, INC. 1600 University Avenue, Suite 314 St. Paul, Minnesota 55104 ♦ Phone: 651-646-6114 ♦ Fax: 651 646-8086 ♦ e-mail: brkw@brkw.com BRKW Appraisals, Inc. is a full service professional real estate appraisal company formed in 1991. The three principals have more than 85 years of combined experience in the valuation of a wide variety of real estate. Located in the Midway area of St. Paul, we concentrate on the appraisal of real estate primarily in the Twin Cities Metropolitan Area, as well as outlying communities in Minnesota. Our extensive professional training and experience enable us to provide the expertise necessary for consistently reliable valuation of real estate. Our appraisal reports are confidential documents completed in accordance with all current standards of professional appraisal practice and ethics. Our appraisers stay current with advances in appraisal techniques and the changing real estate • market through continuing education programs. At BRKW Appraisals, Inc. we strive to build and maintain long lasting relationships with our clients. Our goal is to provide high -quality professional real estate valuation services in a timely manner that is consistent with the needs of our clients. Appraisal & Consulting Services Property Types ♦ Real Estate Appraisals ♦ Commercial Properties ♦ Mortgage Financing Appraisals ♦ Industrial Properties ♦ Condemnation/Litigation Appraisals ♦ Multiple Family Residential ♦ Review Appraisals ♦ Single Family Residential ♦ Real Estate Tax Abatements ♦ Subdivision Analysis ♦ Special Benefits Analysis ♦ Vacant Land Parcels ♦ Expert Witness Testimony ♦ Special Purpose Properties ♦ REO Portfolio Valuation ♦ Gas Station / Conv. Stores ♦ Feasibility Studies ♦ Schools and Churches ♦ Market Surveys ♦ Recreation Facilities ♦ Partial Interest Valuations ♦ Railroad Corridors BRKW APPRAISALS INC. PAGE 56 APPRAISAL STAFF Michael J. Bettendorf, MAI - Principal Active as an appraiser since 1971, Michael has the MAI designation of the Appraisal Institute and specializes in commercial, industrial, multiple family, residential, and special purpose property appraisals with extensive litigation experience. Court appointed Commissioner in Ramsey County, past President of Minnesota Chapter A.I.R.E.A. (1987), instructor of appraisal courses and seminars. Michael is a graduate of St. John's University. Licensed as a Certified General Real Property Appraiser. Roger M. Rohrer, Appraiser - Principal • Roger has been an appraiser since 1972, and has expertise in most types of • property including business office, general commercial, industrial, multiple family and special purpose. Extensive experience as an expert witness as well as in benefit analysis of public improvements; court appointed condemnation commissioner in Dakota County. A graduate of the University of Minnesota, Roger is licensed by the State of Minnesota as a Certified General Real Property Appraiser. Marc E. Knoche, MAI - Principal Marc has been an appraiser since 1982, and has the MAI designation of the Appraisal Institute. He specializes in commercial, industrial, multiple family, residential, and special purpose property appraisals. Marc has extensive litigation / expert witness experience and has served as a court appointed commissioner. He is a Past President of the Metro/Minnesota Chapter of the Appraisal Institute (1992 & 1993). A graduate of Macalester College, Marc is licensed as a Certified General Real Property Appraiser. • BRKW APPRAISALS INC. PAGE 57 • r] Paul J. Gleason, Appraiser Paul has been appraising real estate since 1992. Primary focus is on commercial/industrial properties, though a significant part of his time also involves the valuation of single family houses, condos, townhouses, and small residential income properties as well. Paul is a graduate of the University of Wisconsin at La Crosse. Licensed as a Certified General Real Property Appraiser. William E. Petersen, Appraiser Bill has been an active appraiser since 1986 specializing in the valuation of commercial, industrial, multi -family, office and special purpose properties with experience as an expert witness. Bill is a graduate of the University of Minnesota and practiced dentistry from 1970-1986 before becoming licensed as a Certified General Real Property Appraiser. Joan M. Anderson, Appraiser Joan has been appraising since 1998, specializing in commercial properties. Types of property appraised include multi -family, industrial, office and special use properties. She is a graduate of St. Cloud State University majoring in real estate and is a Certified General Real Property Appraiser. BRKW APPRAISALS INC. PAGE 58 Nbertville smnr Toum LMM. sip tidy Ufa. MEMORANDUM Date: April 29, 2006 To: City Council From: Larry R. Kruse, City Administrator Re: General Update BOARD OF APPEALS: The Board of Appeals is scheduled for Wednesday, May 3 at 6:30 p.m. in the Council Chamber. Property owners who feel their property has been assessed to high or misclassified have an opportunity to appeal to the Council. The Council can make adjustments as they deem necessary. If the Council declines a request, the property owner can proceed to the County. If a property owner does not either write or appear at the City meeting they can not go on to the County. If there is inadequate information and the City Council can't make a determination, they can recommend they proceed to the County for to a determination. I find it would be helpful if the Council members bring in their own property tax statement to the meeting. to I-94: We learned that the state will not be able to approve the purchase of the Knechtl right-of- way until the Environmental Assessment is complete or risk not being allowed to use our allocation of Federal Funds for this purpose. We continue to work the Knecthl's attorney to complete the transaction. As you know we were appropriated $800,000 of Federal funds for right-of-way acquisition and engineering. We are working with MNDOT representative Calvin Howieson to get our allocation of funds for the Knechtl purchase. Initially we are eligible to receive $276,000 and the balance will be paid to us in increments in 2007, 2008 and 2009. Thus the City will need to provide the interim financing. I met with Otsego Administrator Mike Robertson last Wednesday and we discussed the idea of our two cities entering into a Joint Powers Agreement whereby they would invest in our interchange project. Then when Kadler Avenue is constructed, Albertville would contribute a like amount. He was intrigued with the concept but questioned our ability to bind future councils. We agreed we will explore it further. I have asked our bond council to give me an opinion on the matter. MAPublic Data\City Administrator\2006\Reports to Council\05-01-2006.doc CITY HALL: The concrete panels erection is scheduled to be completed Monday, May 1, at which time so they will begin backfilling. You will see some installation of utilities next along with brick work. By the end of May a significant amount of exterior work will have been completed. On Monday, please look at the mock-up brick wall by the construction trailer to get an idea of how the brick work will look. Let me know if you have any comments. We are developing a concept plan for a parking lot on the south end of the railroad property. I am exploring a City Hall Change Order so we can get the parking lot constructed at the same time the rest of the site improvements are completed. Assuming the prices are good, that would be the simplest way to do. I hope to have more information for the council in the next few weeks. ARENA: The City crew will be completing installation of landscaping rock on the south side of the arena. We will be compiling the final construction number for the locker rooms and drafting loan notes for the Hockey Association and STMA Arena Board. I have invited the Barthels to attend our Tuesday morning consultant staff meeting to discuss the acquisition of property for the second sheet and to visit about the installation of Lachman Avenue NE. I will let you know how our discussion goes. CSAH 37 TRAIL: . Oman Brothers are doing the finish landscaping on the west end of the trail and will soon install the remaining bituminous wear course. Following that we will develop a final punch list and commence getting those items done prior to recommending final acceptance. WRIGHT COUNTY ADMINISTRATOR'S GROUP: Since the first of the year I have been chairing the Wright County Administrator's group. The seventeen cities of Wright County meet monthly to share information. One of our main focuses is to build better relationships with the County. At the last meeting we invited County Board Chairperson and Humorist Karla Heeter to speak. We believe we are making inroads to better relations there. I also invited the Executive Director of Western Area City County Cooperative to present how their organization functions so well. WACCO has been in existence serving 28 cities and 10 counties in western central Minnesota for almost 12 years. They focus on facilitating training; equipment and information sharing and creating collaborations in and amongst cities and counties. We are searching for a successful model to build cooperation and collaboration in our County. ALBERTVILLE PREMIUM OUTLETS: I am working with the Chelsea group to try and accomplish most of the item(s) identified by the Council. Based on our meeting discussion, I suggest that we proceed to engineer an acceptable center median barrier (wrought Iron or Jersey barrier) to prevent the Jaywalking. We have sent a letter to Burger King to remove the side walk and will M:\Public Data\City Administrator\2006\Reports to Council\05-01-2006.doe 2 J suggest they have a traffic engineer look at it, then present us with a plan for our review. asked Chelsea to complete the fence on the south end of Phase III and to screen the dumpsters with the goal that if the City sees progress we may then allow the fence to be lowered. Chelsea agreed to try and remove the top portion of the dirt berm. It is my recommendation that you allow me to work with them to begin to build a better relationship. The stalemate that we have had in the past is not working for anyone. Your indulgence is appreciated. Following my Friday conversation, Chelsea responded as follows: Larry, I spoke with Greg and discussed your suggestions with him. As a show of our continued good faith, we are prepared to unilaterally move forward on the dumps te r-related work (i.e. extension of walls, etc.) as well as the extension of the chain -link fence. The lighting adjustments cannot be done without the rental of a lift and the retention of a photometrics consultant which will cost us approximately $10,000 to do. If, as, and when the council approves reduction of the fence height with acceptable conditions, we will re -point the lights to reduce off -site glare as much as possible without reducing on -site lighting below 3 foot- candles at any point on our project. We look forward to seeing your information on the quantities of earth in the berm and your traffic information. As I mentioned to you, our traffic counts from 2003-2005 do not in any way support the assertion that traffic entering the Mall has increased by 100% over that period. Finally, while we are not offering to contribute to the costs, we are obtaining estimates of construction costs to install a cross walk and associated drop - curbs between our property and BK so that we can more meaningfully evaluate and discuss with BK in the future. COMMUNITY SERVICE OFFICER: More and more I hear the need for increased enforcement of zoning ordinances including nuisances. Uncovered dumpsters, illegal signs, unsightly garbage and junk, unlicensed cars, long grass and weeds and much more. Although we try to do our best to respond to complaints, we do lack personnel time to pursue these issues. To successfully pursue these issues requires a trained employee with good human relations skills and adequate time to bird dog the non-compliance. Proper procedures must be followed and timelines tracked to insure due process is followed. Albertville has a very limited staff right now so when I send an employee to focus on some of these issues other important things go undone. St. Michael for example has a full time person that focuses on these issues, whereas Albertville uses existing staff and sometimes our consulting attorney and planner to respond to complaints. MAPublic Data\City Administrator\2006\Reports to Council\05-01-2006.doc 6 I've talked to the Wright County Sheriff's department about them hiring a Community Service Officer who might be shared amongst several communities. Perhaps we could use someone for 12 hours per week. I mentioned this to Otsego Administrator Mike Robertson and his initial thoughts were the idea had merit. Please think about how important these issues are to you and if you are willing to apply additional resources. PERSONNEL POLICY UPDATES: I will be scheduling a meeting of the Personnel Committee to review some suggested changes to our personnel policy. Following a recent retirement, the employees have asked for the opportunity to discuss a few changes along with some administrative suggestions to keep the policy current. NEW MOWER/SNOW PLOW TRUCK —THANK YOU!!!! Many times the City Council approves the purchase of equipment and you don't hear much after that. On behalf of the Public Work's Employees and for that matter all employees, I want to thank the City Council for being progressive in making these two purchases. Employees have told me that the new plow truck is safer, more efficient and more comfortable to operate. On Monday I was told that the new mower is great. Basically it is two or three times faster than the smaller mowers and is more comfortable to operate which for me also means a more alert employee and a safer employee. Thank you for allowing us to purchase those two new units! Have I thanked you for the new Public Works Building? That too is a huge improvement and I can see the pride and efficiencies it has made in our operations. Again thank you! MAPublic Data\City Administrator\2006\Reports to Council\05-01-2006.doc 4