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2006-08-07 CC Agenda PacketAlb-crtville snmdloum uAmt. ft city Ufa. ALBERTVILLE CITY COUNCIL AGENDA AUGUST 7, 2006 7:00 PM 1. PLEDGE OF ALLEGIANCE 2. CALL TO ORDER — ROLL CALL — ADOPT AGENDA 3. MINUTES A. July 17, 2006 City Council minutes (pgs. 5-12) 4. CITIZEN FORUM — (10 Minute Limit) 5. CONSENT AGENDA A. Approve payment of claims check numbers 023106 to 023174 (pgs. 13-22) B. Approve Resolution No. 2006-xx entitled a Resolution Appointing 2006 Election Judges (pgs. 23-24) C. Approve S.E.H. 'Engineer's recommendation for Application for Payment No. 6 for STMA Ice Arena Expansion to KUE Construction in the amount of $36,580 (pgs. 25-26) D. Approve S.E.H. Engineer's recommendation for Application for Payment No. 14F for WWTF Expansion to Gridor Construction, Inc. in the amount of $92,499 (pgs. 27-28) E. Approve Ordinance No. 2006-11 entitled an Ordinance Modifying 2005 City Code Title 1, Chapter 5, Section 1 — Mayor and Council members Wages (pg. 29) F. Approve Bolton & Menk's recommendation for Application for Payment No. 2 for Albertville's Outdoor Hockey Rink to Dennis Fehn in the amount of $4,674.79 (pgs. 31-33) G. Approve application for 3.2 Malt Liquor License for the Albertville Lions for a Lions Zone meeting to be held on Monday, August 21, 2006 at the St. Alberts Parish Center H. Approve Bonestroo's recommendation for Application for Payment No. 6 for City Hall Construction to Breitbach Construction in the amount of $302,005 (pgs. 35-36) 6. ACTION ON PULLED CONSENT ITEMS 7. PUBLIC HEARING NOTICES A. Proposed Modifications to the Development Program for Municipal Development District No. 1 and Establishment of Tax Increment Financing District No. 12 and Adoption of Plans Thereof (Winkleman Building Complex — Eull Concrete Site) (attachments) 0 1). Approve Resolution No. 2006-xx entitled a Resolution Approving a Modified • Development Program for Development District No. 1 and a Tax Increment Financing Plan for Tax Increment Financing District No. 12 (pgs. 37-39) 2). Approve revised Resolution No. 2006-xx entitled a Resolution Approving a Preliminary Plat for Schultz & Schupp, LLC at 5836 Large Avenue NE, which replaces Resolution No. 2006-31 (pgs. 41-43) B. Albertville Plaza 2nd Addition (pgs. 45-46, plus attachments) 1). Approve Resolution No. 2006-xx entitled a Resolution Approving a Site and Building Plan Review, Preliminary and Final Plat, and Conditional Use Permit (CUP)/Planned Unit Development (PUD) Amendment for Albertville Plaza Second Addition located at CSAH 19 and CSAH 37 in the City of Albertville (pgs. 47-49) 2). Approve Resolution No. 2006-xx entitled a Resolution Vacating a Drainage and Utility Easement for Outlot A Albertville Plaza Addition (pg. 51) C. Request to re -schedule Public Hearing for Proposed Modification to the Development Program for Development District No. 1, the Proposed Establishment of Economic Development Tax Increment Financing (TIF) District No. 13 and a Tax Increment Financing (TIF) Plan for the District, and the Consideration of a Business Subsidy Agreement (Fraser Steel Site) to be held on Tuesday, September 5, 2006 at 7:00 p.m. or soon thereafter 8. DEPARTMENT BUSINESS • A. Public Works Department 1). Public Works Parks and Streets Maintenance Report (pg. 53) 2). S.E.H. Status Update on Wastewater Treatment Plant Expansion (pg. 55) B. Finance Department 1). Accounts Receivable Status Update (pgs. 57-59) 2). Project Status Update (pg. 61) 3). Request for Council Action to Award Bid "C" for Prairie Run Wear Course (pg. 63 ) C. Planning and Zoning 1). GEM Development — Granite -Tops, LLC - Zoning Text Amendment for Industrial Wall Signage (pgs. 65-68) a. Approve Ordinance No. 2006-xx entitled an Ordinance Amending Section 10-7-8 of Chapter 7 Relating to Permitted Business Signs (pg. 69) 2). Albertville Medical Clinic -Building LLC (pgs. 71-81, plus attachments) a. Approve Resolution No. 2006-xx entitled a Resolution Approving a Site and Building Plan Review, Preliminary and Final Plat, and Conditional Use Permit/Planned Unit Development CUP/PUD) Amendment for Albertville St. Michael Clinic Located at County Road 19 and County Road 18 in the • City of Albertville (pgs. 83-86) 2 • D. Engineering 1). Bolton & Menk, Inc. Status Update (pgs. 87-88) E. Legal 1). Approve Resolution No. 2006-xx entitled a Resolution Declaring the Official Intent of the City of Albertville to Reimburse Certain Expenditures from the Proceeds of Bonds to be Issued by the City (pgs. 89-90) F. Administration 1). Written Report (pg. 91) 2). Request for Council Action to Accept the Contract for Low Bid for the City Hall Phone System to (Cable Services in the amount of $32,841.90 (pgs. 93-99) 9. ADJOURNMENT • • 3 . " Nb t e satcm,rown ft tk UFO. ALBERTVILLE CITY COUNCIL July 17, 2006 Albertville City Hall 7:00 PM PRESENT: Acting Mayor LeRoy Berning, Council members John Vetsch, Tom Fay, and Ron Klecker, City Attorney Mike Couri, City Planner Al Brixius, Assistant City Engineer Adam Nafstad, City Administrator Larry Kruse, and City Clerk Bridget Miller ABSENT: Mayor Don Peterson Acting Mayor Beming 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 Vetsch to approve the . agenda as amended and on file in the office of the City Clerk. Motion carried unanimously. Add to the Agenda: Continue to August 7, 2006 City Council meeting the Public Hearing for Eull Concrete Tax Increment Financing District No 12 -on March 20, 2006 the City Council recessed the TIF Public Hearing until June 19, 2006, which was rescheduled Wednesday, July 5, 2006 at 7:00 p.m. Engineering - Resolution No. 2006-xx entitled a Resolution Ordering Improvement for 52" d Street NE from Barthel Industrial Drive NE east to Marlow Avenue NE Building Department - Dumpster Enforcement Parks and Recreation — Purchase Park Benches and Picnic Tables Administration - Speed limit on LaBeaux Avenue NE Administration — set Monday, August 7, 2006 as a Public Hearing for a Resolution Calling for a Public Hearing on a Proposed Modification to the Development Program for Development District No. 1, the Proposed Establishment of Economic Development Tax Increment Financing (TIF) District No. 13 and a Tax Increment Financing (TIF) Plan for the District, and the Consideration of a Business Subsidy Agreement • 5 MINUTES • MOTION BY Council member Vetsch, seconded by Council member Fay to approve the July 5, 2006 regular City Council minutes as presented on file in the office of the City Clerk. Motion carried unanimously. CITIZEN FORUM Acting Mayor Berning asked if there was anyone in the audience that wished to discuss an item that is not already on the agenda. There was no one present from the public that wished to address the Council. CONSENT AGENDA MOTION BY Council member Klecker, seconded by Council member Fay to approve the consent pulling item E. Motion carried unanimously. A. Approve payment of claims check numbers 023039 to 023098 B. Approve application for 3.2 Malt Liquor License for the Knights of Columbus # 4174 for Saturday and Sunday, July 29 and July 30, 2006 at Central -City Park for Park Improvements C. Approve Bonestroo's recommendation for Application for Payment No. 5 for City Hall Construction to Breitbach in the amount of $383,325 is D. Accept Bid of $1.00 each for two Playground Equipment (spring mounted) to Denise Prow from Four Seasons Park E. Accept Bid of $59.00 for Big or Small Slide to John Vetsch from Four Seasons Park F. Accept Bid of $5.00 for Swinging Park Bench to Ryan Zachman from Four Seasons Park G. Accept Bid of $5.00 for Stable Park Bench to Ryan Zachman from Four Seasons Park ACTION ON PULLED CONSENT ITEMS Accent Bid of $59.00 for Big or Small Slide to John Vetsch from Four Seasons Park MOTION BY Council member Klecker, seconded by Council member Fay to accept the Bid of $59.00 for Big or Small Slide to John Vetsch from Four Seasons Park. Acting Mayor Berning, Council members Klecker and Fay voted aye. Council member Vetsch abstained from voting. Motion carried. • 32 • DEPARTMENT BUSINESS BUILDING DEPARTMENT Monthly Report City Administrator Kruse reported that work continues to be steady with re -roof and re -siding permits from the September storm in 2005. There are various commercial permits under construction, which are progressing along nicely. Dumnster Enforcement Council brought it to staffs attention the City Hall construction site has an uncovered dumpster. Staff was aware of the uncovered dumpster and had notified Brietbach prior to the meeting. PUBLIC WORKS DEPARTMENT Request for Council Action-- Purchase of Park Benches and Picnic Tables City Administrator Kruse stated that Public Works Supervisor Guimont is looking for authorization to purchase picnic tables and park benches for Villas Park and Four Seasons Park at a cost not to exceed $3,200 using Park Dedication Funds. MOTION BY Council member Vetsch, seconded by Council member Klecker to approve the purchase of park benches and picnic tables at a cost not to exceed $3,200 with monies from the Park Dedication Fund. Motion carried unanimously. • PLANNING AND ZONING Set Monday August 7 2006 as a Public Hearing for Albertville Plaza 2nd Addition City Planner Brixius reported that the Public Hearing notice that was sent to the abutting property owners identified the wrong lot. Staff is requesting to set Monday, August 7, 2006 as a Public Hearing for Albertville Plaza 2nd Addition to correct the identification of the site. MOTION BY Council member Fay, seconded by Council member Klecker to set Monday, August 7, 2006 as a Public Hearing for Albertville Plaza 2nd Addition. Motion carried unanimously. ENGINEERING 52°d Street NE Improvements Project - —Approve Resolution No 2006-xx entitled a Resolution Ordering 52" d Street NE Improvements City Attorney Couri brought to the Council's attention that a Resolution Ordering the 52nd Street NE Improvements was missed during the approval process. Staff is requesting Council approval on Resolution No. 2006-xx entitle a Resolution Ordering Improvements on 52" d Street NE from Barthel Industrial Drive NE east to Marlowe Avenue NE. MOTION BY Council member Klecker, seconded by Acting Mayor Berning to approve Resolution No. 2006-xx entitled a Resolution Ordering 52" d Street NE Improvements. Motion Is carried unanimously. 11 52nd Street NE Improvements Project Approve Resolution No 2006 xx entitled a Resolution • Awarding Contract 52nd Street NE Improvements City Engineer Nafstad stated that staff advertised, received and opened bids for the 52"d Street NE Improvement Project within the Albertville city limits. A total of five (5) bids were received, in which LaTour Construction, Inc. of Maple Lake, Minnesota submitted the low bid of $679,680.90. Staff recommends awarding the Contract for 52"d Street NE Improvement Project from Barthel Industrial Drive NE east to Marlowe Avenue NE, to LaTour Construction, Inc. at a cost not to exceed $679,680.90. Council asked staff, in the future, to report the names of the bidders and the amount of their bid. MOTION BY Council member Vetsch, seconded by Council member Fay to approve Resolution No. 2006-xx entitled a Resolution Awarding Contract for 52nd Street NE Improvements at a cost not to exceed $679,680.90. Motion carried unanimously. 2006 Street Overlay Project - Approve Resolution No 2006-xx entitled a Resolution Awarding Contract for the 2006 Overlay Project City Engineer Nafstad informed the Council that staff advertised, received and opened bids for the 2006 Street Overlay Project. Staff received three (3) bids, in which the low bid was submitted by Buffalo Bituminous, Inc. of Buffalo, Minnesota for the base bid in the amount of $131,527.10. • MOTION BY Council member Fay, seconded by Council member Klecker to approve the amended Resolution No. 2006-xx entitled a Resolution Awarding Contract for the 2006 Overlay Project for the Base Bid "Schedule A" only to Buffalo Bituminous, Inc. in the amount not to exceed $131,527.10 removing item 4. Motion carried unanimously. Council directed staff to present additional information at a future meeting to award the bids for Contract for Schedule C — Prairie Run Wear Course. Winkleman Building Complex — Schultz and Schupp LLC (Eull Concrete Building) (discussion item City Engineer Nafstad acknowledged that at the July 5, 2006 City Council meeting the Schultz and Schupp LLC was approved the application contingent on the location of the driveway location. Staff has reviewed the site noting that along Large Avenue — Barthel Industrial Drive NE there is a long curb opening on the west side of the roadway and south of 591h Street NE. Since there are five (5) parcels in which there are three (3) owners that utilize the opening for access to their property it is recommended that the long opening in the curb be reduced in length by combining the multiple driveways into on single driveway. By combining the driveways into one common shared driveway will better define the Barthel Industrial Drive NE roadway and provide for more organized access to the multiple parcels, which will help to clarify motorists' intentions and limit confusion. 40 • To achieve the desired combined driveway at the location recommended, the Developer will be required to dedicate approximately 1,200 square -feet of right-of-way. Additionally approximately 1,400 square -feet of right-of-way will need to be acquired from the property owner directly to the west of the proposed development. The proposed improvements have been discussed with the abutting property owners and the benefit of a combined -shared access driving is seen by all. In addition to the location of the driveway, Council inquired about the southerly parking lot elevations. City Engineer Nafstad reported that the proposed curb line along the south side of the development site, the existing grade is approximately 2-feet below the top of the railroad tracks. The design elevation of the top of the curb at the location is approximately 0.5-feet below that of the existing grade and the design slope of the parking lot is at approximately 1 % downward towards the tracks. Therefore, the proposed design of the southerly parking lot does minimize headlight projection to the south, and that additional correction and or modification to the site design to further reduce headlight project will compromise the design of other elements of the site. MOTION BY Council member Vetsch, seconded by Council member Fay to approve the Eull Concrete — Winkleman Building Complex Driveway entrance as recommended by staff as a common -shared access located at the intersection of Large Avenue NE, 59'" Street NE and Barthel Industrial Drive NE within the Albertville city limits. Motion carried unanimously. LEGAL Utility Easement for Albertville Plaza 2"" Addition City Attorney Couri noted that on the Albertville Plaza 2nd Addition a drainage and utility easement needs to be vacated, therefore the City Council needs to set a date for a Public Hearing to vacate the drainage and utility easement for Outlot A, Albertville Plaza 2nd Addition. MOTION BY Council member Fay, seconded by Council member Klecker to set Monday, August 7, 2006 as a Public Hearing for a Vacation of the Drainage and Utility Easement for Albertville Plaza 2nd Addition, Outlot A. Motion carried unanimously. Railroad Purchase A eement City Attorney Couri brought to the Council's attention with the Purchase Agreement for the Railroad Property under the Reservations Section 8 (a) Grantee's interest shall be subject to the rights and interests of Grantor, Grantor's licensees, permittees and other third parties in and to all existing utilities, fiber optic lines, wires and easements of any kind whatsoever on the Property whether owned, operated, used or maintained by the Grantor, Grantor's licensees, permittees or other third parties and whether or not of public record. However, if Buyer obtains an ALTA • survey certified to both the Buyer and Seller and at Closing Buyer obtains extended ALTA title 7 insurance coverage in the amount of the Purchase Price, then Seller's reservation as to the above • referenced matters will be limited to matters disclosed in the public record and any unrecorded matters disclosed on said ALTA survey. Couri reported that Burlington Northern SantaFe (BNSF) was persistent regarding Miscellaneous Section 10. (m) Within 90 days after closing, Grantee shall, at its sole cost and expense, construct a protective chain link fence a minimum of six (6) feet in height upon, over and across the Property as shown green on the attached Exhibit "A" and by this reference made a part hereof. Grantee shall thereafter repair, maintain and renew said fence, so as to keep same in good repair at the sole cost of the Grantee. If fence is not constructed within this time frame, Grantor may construct said fence at the sole cost of Grantee and Grantee shall pay Grantor all associated costs within 10 days of receipt of bills. MOTION BY Council member Klecker, seconded by Council member Fay to approve the Railroad Purchase Agreement at a cost of $384,000 plus closing costs. Motion carried unanimously. ADMINISTRATION Written Report City Administrator Kruse updated the Council regarding the Albertville Mall issues' stating that staff continues to work with the Mall Management staff on the pedestrian crossing, CSAH 19 median and the screening of the garbage dumpsters. Kruse shared with the Council that construction on the New City Hall is progressing along. Elert & Associates is evaluating the bids for the phone system. We are currently out for bid on the furniture and fixtures. Staff anticipates Council to take action in early September. Staff has received preliminary estimates to install about 300 feet of conduit to accommodate all the utilities at a cost estimate of $8,000. MOTION BY Council member Klecker, seconded by Council member Fay to approve installation of about 300 feet of conduit to accommodate all the utilities for the City Hall site at an estimated cost of $8,000. Motion carried unanimously. Request for Council Action on City Hall South Parking Lot City Administrator Kruse reported that Bonestroo has submitted a $4,200 proposal to draw up a plan sheet for the new parking lot south of City Hall. City Engineer Nafstad has reviewed the proposal and stated Bonestroo's fee of $4,200 was cost effective as they have the topography for the site. Staff is looking for Council's authorization to proceed with developing a plan sheet for the south parking lot in preparation to allow a separate contract, which is not affiliated with the City Hall Project at a cost not to exceed $4,200. Council directed staff to hold off until the Railroad Purchase Agreement has been completed; therefore, no action was taken at this time. • 10 • Advanced Fitness Discussion City Administrator Kruse asked the Council if they are still interested in proceeding with the Advanced Fitness Concept Plan. Should the Council agree to proceed it appears that the City of Otsego would need to be involved in order to make it work. Council member Vetsch expressed concerns with the location and where would the compost site be relocated within the Albertville city limits; therefore, he would suggest staff contacting Advanced Fitness and politely say "no" the City is not interested at this time. Council member Klecker appeared somewhat hesitant on proceeding and at the same time did not want to pass up the potential opportunity for a fitness center to be located within Albertville. Council member Fay would like to hear from Otsego to find out if they are interested in participating in the fitness center prior to Albertville making the commitment. Council member Berning felt the city should consider saying "thanks for the consideration and the opportunity to build a fitness center in Albertville; however, the city is not prepared at this time to release the property." After hearing further discussion from the Council it appeared to be the consensus to go forward with the Advanced Fitness Concept. Council directed City Administrator Kruse to contact the appropriate representative from Advanced Fitness stating that the City of Albertville will consider the project contingent that Advanced Fitness contacts the City of Otsego to obtain their interest and commitment towards the fitness center. City Administrator Kruse then confirmed that he will contact Adrian Haid and Mike Johnson informing them of the City's interest to sell the land for $5.00 per square foot less a $0.75 discount. If Advanced Fitness needs further assistance, they may want to contact the City of Otsego to find out if they are interested in getting involved. If it appears a deal is viable, the City will be expected to put $10,000 escrow for initial City consultant expenses. Reauest to set Monday. August_7, 2006 as a Public Hearing for a Resolution Calling for a Public Hearing on a Proposed Modification to the Development Program for Development District No 1, the Proposed Establishment of Economic Development Tax Increment Financing(TIF) District No. 13 and a Tax Increment Financing (TIF) Plan for the District. and the Consideration of a Business Subsidy Agreement City Administrator Kruse inquired if the Council would set Monday, August 7, 2006 at 7:00 p.m. or soon there after to consider a modification to the Development Program for the Project Area and the establishment of Economic Development Tax Increment Financing (TIF) District 13; otherwise known as Fraser Steel. MOTION BY Council member Fay, seconded by Acting Mayor Berning to Approve Resolution No. 2006-xx entitled a Resolution to Request setting Monday, August 7, 2006 as a Public • Hearing for a Resolution Calling for a Public Hearing on a Proposed Modification to the Development Program for Development District No. 1, the Proposed Establishment of Economic 11 Development Tax Increment Financing (TIF) District No. 13 and a Tax Increment Financing • (TIF) Plan for the District, and the Consideration of a Business Subsidy Agreement. Motion carried unanimously. CSAH 19 Sneed Limit Council member Klecker expressed concern regarding the speed limit along CSAH 19 or LaBeaux Avenue NE within the Albertville city limits. This past weekend there was a 4-5 car accident. The speed limit along CSAH 19 has been discussed at previous Council meetings and Klecker has been in contact with Wright County making them aware of the concerns. MOTION BY Council member Klecker, seconded by Council member Fay to authorize for Wright County to do a speed study of CSAH 19 south of CSAH 37 and staff report back to Council at a future meeting. Motion carried unanimously. Burger King/Mall Pedestrian Crossing Acting Mayor Berning asked staff to obtain signage to be placed possibly in the roadway "State Law — Stop for Pedestrian within Crosswalk." City Engineer Nafstad stated that he would like to do research on the roadway prior to placing portable signs within the roadway. MOTION BY Council member Klecker, seconded by Council member Fay to authorize staff to • research the roadway prior to placement of crosswalk signage and report back to Council at a future meeting. Motion carried unanimously. ADJOURNMENT MOTION BY Council member Klecker, seconded by Council member Fay to adjourn at 9:50 p.m. Motion carried unanimously. 12 •Nbertvillei • • City of Albertville Check Detail Register August 7, 2006 Check Amt Invoice Comment 10100 Premier Bank Paid Chk# 023106 8/7/2006 ACTION RADIO & COMMUNICATIONS E 101-42000-404 Repair/Maint- $125.00 30429 Total ACTION RADIO & COMMUNICATIONS $125.00 Paid Chk# 023107 8/7/2006 AFLAC G 101-21710 Other Deducations Total AFLAC Paid Chk# 023108 8/7/2006 ALLINA HEALTH SYSTEM E 101-42000-312 First Responder Training Total ALLINA HEALTH SYSTEM Paid Chk# 023109 8/7/2006 ALLINA OCC MED E 101-42000-305 Medical - Physicals Total ALLINA OCC MED $16.16 735334 $16.16 $721.25 ii10004979 $721.25 $90.00 11305 $90.00 Repair Service on Radio Equip AFLAC Insurance Prem First Reponder Classes medical -physicals Paid Chk# 023110 8/7/2006 ARAMARK UNIFORM SERVICES E 601-49450-417 Uniform Rentals $14.10 629-6017378 Uniform Sery - Sewage Dept. E 101-43100-417 Uniform Rentals $21.15 629-6017378 Uniform Sery - PW Dept. E 101-45100-417 Uniform Rentals $21.15 629-6017378 Uniform Sery - Parks Dept E 602-49400-417 Uniform Rentals $14.10 629-6017378 Uniform Sery - Water Dept E 601-49450-417 Uniform Rentals $10.12 629-6022476 Uniform Sery - Sewage Dept. E 101-43100-417 Uniform Rentals $15.16 629-6022476 Uniform Sery - PW Dept. E 101-45100-417 Uniform Rentals $15.17 629-6022476 Uniform Sery - Parks Dept E 602-49400-417 Uniform Rentals $10.11 629-6022476 Uniform Sery - Water Dept E 101-41940-405 Repair/Maint - Buildings $27.69 629-6022477 Rental -rugs Total ARAMARK UNIFORM SERVICES $148.75 Paid Chk# 023111 8/7/2006 B & B MASONRY E 101-45100-589 C/O - Park/Trail Construction $2,180.00 06JULY1 Albert Villas Park -sidewalk Total B & B MASONRY $2,180.00 Paid Chk# 023112 8/7/2006 BARR ENGINEERING COMPANY E 604-49660-300 Professional Srvs (GENERAL) $2,020.11 2386062-2 Albert Villas -legal fees Total BARR ENGINEERING COMPANY $2,020.11 Paid Chk# 023113 8/7/2006 BEAUDRY, MARTINA G 101-22900 Park Rental Deposit Escrow $100.00 07232006P Park Damage Deposit Total BEAUDRY, MARTINA $100.00 13 Check Amt Invoice Comment Paid Chk# 023114 8/7/2006 BOLTON & MENK, INC E 492-49000-303 Engineering Fees $39,362.00 0095564 52nd Street Improvement E 101-41700-303 Engineering Fees $7,578.00 0095565 Lachman Ave Report E 101-41710-303 Engineering Fees $3,129.00 0095566 Hunter's Pass E 468-49000-303 Engineering Fees $336.00 0095567 MnDOT meeting E 101-41710-303 Engineering Fees $363.00 0095567 Outlet Mall Traffic E 101-41710-303 Engineering Fees $84.00 0095567 T-Square Review E 101-41700-303 Engineering Fees $168.00 0095567 Hwy 241 Detour E 470-49000-303 Engineering Fees $84.00 0095567 CSAH 37 Trail E 470-49000-303 Engineering Fees $53.50 0095567 CSAH 37/60th Street Lane Confi E 468-49000-303 Engineering Fees $905.00 0095567 1-94, CSAH 19 & 37 E 101-42400-303 Engineering Fees $210.00 0095567 Low Opening Review E 206-49400-520 Buildings and Structures $42.00 0095567 STMA School WAC E 204-49480-500 Capital Outlay (GENERAL) $42.00 0095567 STMA School SAC E 101-41700-303 Engineering Fees $210.00 0095567 City Council Workshop E 101-41710-303 Engineering Fees $210.00 0095567 Fraiser Steel E 101-41700-303 Engineering Fees $3,316.50 0095567 2006 Traffic Study E 101-41700-303 Engineering Fees $294.00 0095567 Consultant Staff mtg E 101-41710-303 Engineering Fees $252.00 0095567 Eull Concrete Site E 101-41700-303 Engineering Fees $214.00 0095567 Boarder Road Agreements E 101-41710-303 Engineering Fees $588.00 0095567 TL 5th Add E 101-41700-303 Engineering Fees $42.00 0095567 Road Restrictions E 101-41700-303 Engineering Fees $525.00 0095567 Parcel Map Update E 101-41700-303 Engineering Fees $3,355.00 0095567 Barthel Property Borings E 101-41700-303 Engineering Fees $84.00 0095567 St. Albert Cemetery Bd E 604-49660-300 Professional Srvs (GENERAL) $336.00 0095567 Albert Villas Flooding E 604-49660-300 Professional Srvs (GENERAL) $168.00 0095567 Drainage Issues E 101-41700-303 Engineering Fees $42.00 0095567 Reduced Trail Map E 494-49000-303 Engineering Fees $245.00 0095567 CSAH 19 South Proj E 101-42400-303 Engineering Fees $84.00 0095567 Lot Survey Require E 101-41710-303 Engineering Fees $84.00 0095567 Old Mill (bill out) E 101-41710-303 Engineering Fees $6,185.00 0095568 Towne Lakes 6th Add E 468-49000-303 Engineering Fees $214.00 0095570 1-94 Study E 482-49300-303 Engineering Fees $749.00 0095571 City Hall E 482-49300-303 Engineering Fees $672.00 0095571 City Hall -soil remediation E 101-41710-303 Engineering Fees $1,788.00 0095572 Phillip Morris Development E 473-49000-303 Engineering Fees $126.00 0095573 Prairie Run E 101-41710-303 Engineering Fees $168.00 0095574 Quality Title E 493-49000-303 Engineering Fees $2,995.00 0095575 CSAH - 67th to 70th Improv E 101-41700-303 Engineering Fees $84.00 0095576 57th Street sidewalk Improv E 492-49000-303 Engineering Fees $3,766.50 0095577 Wetland Mitigation (Barthel) E 101-41710-303 Engineering Fees $3,360.00 0095578 Albertville Medical Clinic E 101-43100-224 Street Overlayment $8,378.00 0095579 2006 Overlay Project E 101-43100-223 Seal Coating $2,331.00 0095580 2006 Sealcoat Project E 101-41710-303 Engineering Fees $1,843.00 0095581 Albertville Premium Outlets E 604-49660-300 Professional Srvs (GENERAL) $4,752.00 0095582 Flood Mitigation Project E 101-41700-303 Engineering Fees $3,102.00 0095583 STMA School Plat E 604-49660-300 Professional Srvs (GENERAL) $900.00 0095583 STMA School Plat E 604-49660-300 Professional Srvs (GENERAL) $610.00 0095584 Flood Study Litigation E 101-41710-303 Engineering Fees $318.00 0095585 Intex Development Total BOLTON & MENK, INC $104,747.50 Paid Chk# 023115 8/7/2006 BREITBACH CONSTRUCTION CO E 482-49300-300 Professional Srvs (GENERAL) $302,005.00 Pay Req 6 City Hall Construction pmt # 6 Total BREITBACH CONSTRUCTION CO $302,005.00 Paid Chk# 023116 8/7/2006 CANNON BUSINESS SOLUTIONS E 101-41940-404 Repair/Maint - $150.00 12011124 Maintenance on Scanner Total CANNON BUSINESS SOLUTIONS $150.00 • • • 14 Check Amt Invoice Comment S Paid Chk# 023117 8/7/2006 CARQUEST E 101-45100-404 Repair/Maint - ($0.53) 8615 belt return credit E 101-45100-404 Repair/Maint - $6.71 8902 throttle spring E 101-45100-405 Repair/Maint - Buildings $36.30 9227 hyd fitting, cable, lugs E 101-45100-404 Repair/Maint- $11.10 9254 fittings, hose E 101-45100-404 Repair/Maint - $13.33 9266 fittings, hose Total CARQUEST $66.91 Paid Chk# 023118 8/7/2006 CDW-G E 101-41940-404 Repair/Maint- $116.85 bhv4906 Canon Roller Kits Total CDW-G $116.85 Paid Chk# 023119 8/7/2006 CENTER POINT ENERGY E 101-41940-383 Gas Utilities $19.14 Electric -City Hall E 101-42000-383 Gas Utilities $19.84 Electric -Fire Dept E 101-45100-383 Gas Utilities $7.06 Electric -Lander Lighting E 101-42400-383 Gas Utilities $21.61 Electric -Old PW Garage Total CENTER POINT ENERGY $67.65 Paid Chk# 023120 8/7/2006 CHARTER COMMUNICATIONS E 101-42000-404 Repair/Maint - $80.05 07132006 Internet Service FD Total CHARTER COMMUNICATIONS $80.05 Paid Chk# 023121 8/7/2006 COBORN'S E 101-41940-399 Miscellaneous $9.33 101372922 Miscellaneous items E 101-41940-399 Miscellaneous $21.69 101372954 Miscellaneous items E 101-42000-200 Office Supplies (GENERAL) $29.33 101384627 Fire Calls supplies E 101-42000-200 Office Supplies (GENERAL) $54.76 101406287 Fire Calls supplies Total COBORN'S $115.11 Paid Chk# 023122 8/7/2006 COMMUNITY PARTNERS E 101-41000-300 Professional Srvs (GENERAL) $750.00 07072006 Negaard TIF 12 Proj Total COMMUNITY PARTNERS $750.00 Paid Chk# 023123 8/7/2006 COURI & MACARTHUR E 101-41610-304 Legal Fees $36.25 07072006 Shoppes @ Towne Lakes 2 E 101-41610-304 Legal Fees $36.25 07072006 Prairie Run -Gold Key E 101-41610-304 Legal Fees $36.25 07072006 LaBeaux Station E 101-41610-304 Legal Fees $217.50 07072006 Philip Morris Dev E 101-41610-304 Legal Fees $390.00 07072006 Albert Villas E 101-41600-304 Legal Fees $422.50 07072006 Edina Development Default E 101-41610-304 Legal Fees $181.25 07072006 Albertville Plaza 2nd E 101-41600-304 Legal Fees $65.00 07072006 Liquor Compliance E 101-41610-304 Legal Fees $72.50 07072006 Albertville Medical Clinic E 468-49000-304 Legal Fees $32.50 07072006 1-94 Ramps E 473-49000-304 Legal Fees $36.25 07072006 Prairie Run-Heuring E 101-41600-304 Legal Fees $1,397.50 07072006 council, staff mtgs, variances E 473-49000-304 Legal Fees $682.50 07072006 Prairie Run Litigation E 482-49300-304 Legal Fees $455.00 07072006 City Hall E 492-49000-304 Legal Fees $32.50 07072006 52nd Street Improve Total COURT & MACARTHUR $4,093.75 Paid Chk# 023124 8/7/2006 CROW RIVER NEWS NORTH • E 101-41100-351 Legal Notices Publishing Total CROW RIVER NEWS NORTH $358.46 072006 $358.46 miscellaneous legal notices Check Amt Invoice Comment 15 Paid Chk# 023125 8/7/2006 D H B is 101-43100-215 Shop Supplies $76.66 22549 Nylon cases Total D H B $76.66 Paid Chk# 023126 8/7/2006 DAVIS, JEFF E 101-42000-200 Office Supplies (GENERAL) $134.83 052606A 6 safety wands with batteries E 101-42000-200 Office Supplies (GENERAL) $91.81 PO2616 General Shop supplies Total DAVIS, JEFF $226.64 Paid Chk# 023127 8/7/2006 DENNIS FEHN GRAVEL & EXCAVATIN E 496-00000-300 Professional Srvs (GENERAL) $4,674.79 Pay No. 2 Outdoor Hockey Rink Total DENNIS FEHN GRAVEL & EXCAVATIN $4,674.79 Paid Chk# 023128 8/7/2006 DJ'S TOTAL HOME CARE CENTER E 101-42000-200 Office Supplies (GENERAL) $55.92 12694 batteries E 101-42000-200 Office Supplies (GENERAL) $14.37 12975 Link chain E 101-42000-200 Office Supplies (GENERAL) $65.94 12979 rags, wax, polish E 101-42000-200 Office Supplies (GENERAL) $11.94 12983 spray paint E 101-42000-200 Office Supplies (GENERAL) $47.27 13696 tape, oil E 101-42000-200 Office Supplies (GENERAL) $0.50 622575 finance charge Total DJ'S TOTAL HOME CARE CENTER $195.94 Paid Chk# 023129 8/7/2006 DON'S AUTO & REPAIR E 101-42000-212 Motor Fuels $66.87 40971 motor fuel E 101-42000-212 Motor Fuels $43.71 41091 motor fuel E 101-42000-212 Motor Fuels $29.58 41163 motor fuel Total DON'S AUTO & REPAIR $140.16 0 Paid Chk# 023130 8/7/2006 ELAN FINANCIAL SERVICES E 101-41400-200 Office Supplies (GENERAL) ($96.77) 072006 credit E 101-41400-200 Office Supplies (GENERAL) $498.36 072006 HP office supplies E 101-41400-200 Office Supplies (GENERAL) $240.30 072006 general office supplies E 101-41300-208 Training and Instruction $147.84 072006 Training and Instruction LK E 101-41100-200 Office Supplies (GENERAL) $61.77 072006 floral arrangement E 101-41300-331 Travel Expenses $10.09 072006 travel expense LK E 101-41500-208 Training and Instruction $15.00 072006 travel -meeting expense Total ELAN FINANCIAL SERVICES $876.59 Paid Chk# 023131 8/7/2006 EMBARQ - IL E 101-41940-321 Telephone $57.01 07242006 general phone service Total EMBARQ - IL $57.01 16 • • C Paid Chk# 023132 8/7/2006 EMBARQ- MO E 101-41940-321 Telephone E 101-41940-321 Telephone E 101-42000-321 Telephone E 101-43100-321 Telephone E 101-41940-321 Telephone E 101-41940-321 Telephone E 101-42000-321 Telephone E 101-41940-321 Telephone E 101-42400-321 Telephone E 101-42400-321 Telephone E 101-42400-321 Telephone E 101-42000-321 Telephone E 101-41940-321 Telephone E 601-49450-321 Telephone E 101-41940-321 Telephone E 601-49450-321 Telephone E 601-49450-321 Telephone E 101-41940-321 Telephone E 101-41940-321 Telephone E 101-41940-321 Telephone E 101-45100-321 Telephone Total EMBARQ- MO Check Amt Invoice Comment $57.46 07212006 $57.46 07212006 $47.50 07212006 $47.46 07212006 $235.75 07212006 $36.69 07212006 $116.68 07212006 $72.21 07212006 $64.41 07212006 $57.46 07212006 $57.46 07212006 $38.55 07212006 $37.51 07212006 $37.51 07212006 $57.46 07212006 $47.46 07212006 $27.71 07212006 $18.25 07212006 $36.69 07212006 $29.01 07212006 $26.19 07212006 $1,206.88 Phone-497-3758 Phone-497-4182 Phone-497-4836 Phone-497-3145 Phone-tax/surcharges Phone-497-3210 497-5007 phone Phone-497-3384 Phone-497-5106 Phone-497-7485 Phone-497-7416 Phone-497-7474 497-0452 phone line 497-0774 497-3106 Phone-497-1888 Phone-497-1888 Long distance servie 497-0269 phone line Phone-497-4214 Phone-497-2215 Check Amt Invoice Comment Paid Chk# 023133 8/7/2006 EMERGENCY MEDICAL PRODUCTS E 101-42000-200 Office Supplies (GENERAL) $950.17 E 101-42000-200 Office Supplies (GENERAL) $52.98 852429 Total EMERGENCY MEDICAL PRODUCTS $1,003.15 Paid Chk# 023134 8/7/2006 FIRE INSTRUCTION & RESCUE EDUC E 101-42000-108 Medical Training $240.00 04778 Total FIRE INSTRUCTION & RESCUE EDUC $240.00 Paid Chk# 023135 8/7/2006 FTTH COMMUNICATIONS E 101-43100-321 Telephone Total FTTH COMMUNICATIONS Paid Chk# 023136 8/7/2006 FYCC E 101-45000-598 Pledges & Contributions Total FYCC $62.02 072006 $62.02 Resusciatator, gauze, gloves, pocket masks N.I.M.S. Training general phone -cable service $4,000.00 2006-Pay 2 2006 second half $4,000.00 Paid Chk# 023137 8/7/2006 GOPHER STATE ONE -CALL E 601-49450-209 Locates $451.25 6060152 E 602-49400-209 Locates $451.25 6060152 Total GOPHER STATE ONE -CALL $902.50 Locates - Sewer Dept Locates - Water Dept Paid Chk# 023138 8/7/2006 GRIDOR CONSTRUCTION E 491-49000-300 Professional Srvs (GENERAL) $92,499.00 Pay NO. 14F Final Pay - WWTF Total GRIDOR CONSTRUCTION $92,499.00 Paid Chk# 023139 8/7/2006 HAWKINS, INC E 601-49450-210 Operating Supplies Total HAWKINS, INC $100.19 IN828032 General supplies $100.19 Check Amt Invoice Comment 17 Paid Chk# 023140 8/7/2006 HEALTH PARTNERS E 601-49450-130 Employer Paid Ins $623.80 082006 E 101-41500-131 Employer Paid Health $533.55 082006 G 101-21706 Group Insurance Payable $2,036.39 082006 E 101-41300-131 Employer Paid Health $406.06 082006 E 101-45100-130 Employer Paid Ins $624.50 082006 E 101-41400-131 Employer Paid Health $995.61 082006 E 101-42400-130 Employer Paid Ins $1,493.25 082006 E 602-49400-130 Employer Paid Ins $686.00 082006 E 101-43100-130 Employer Paid Ins $1,261.86 082006 Total HEALTH PARTNERS $8,661.02 Paid Chk# 023141 8/7/2006 HOGLUND BUS COMPANY E 101-42000-404 Repair/Maint- $333.72 16jun06 Total HOGLUND BUS COMPANY $333.72 Paid Chk# 023142 8/7/2006 KENNEDY & GRAVEN E 101-41000-300 Professional Srvs (GENERAL) $1,269.50 07132006 Total KENNEDY & GRAVEN $1,269.50 Paid Chk# 023143 8/7/2006 KITZBERGER, CARRIE Emp Health/Dental Ins Emp Health/Dental Ins Emp Health/Dental Ins Emp port Emp Health/Dental Ins Emp Health/Dental Ins Emp Health/Dental Ins Emp Health/Dental Ins Emp Health/Dental Ins Emp Health/Dental Ins repair to rescue van Negaard TIF 12 G 101-22900 Park Rental Deposit Escrow $100.00 07202006 Refund Park Rental Damage Depo Total KITZBERGER, CARRIE $100.00 Paid Chk# 023144 8/7/2006 KUE CONTRACTORS, INC E 488-41000-300 Professional Srvs (GENERAL) $36,580.00 Pay No. 6 2005 Ice Arena Locker Room; Total KUE CONTRACTORS, INC $36,580.00 Paid Chk# 023145 8/7/2006 LEAGUE OF MINNESOTA CITIES E 101-41300-208 Training and Instruction $105.00 1-000026621 2006 LMC Conf E 101-41100-208 Training and Instruction $355.00 1-000026621 2006 LMC Conf Total LEAGUE OF MINNESOTA CITIES $460.00 Paid Chk# 023146 8/7/2006 MENARDS E 101-45100-530 Improvements $986.01 78141 Four Season Park Improv Total MENARDS $986.01 Paid Chk# 023147 8/7/2006 Mill LIFE E 101-41500-131 Employer Paid Health $30,97 082006 Emp Short Term Disability E 101-43100-130 Employer Paid Ins $49.17 082006 Emp Short Term Disability E 602-49400-130 Employer Paid Ins $17.99 082006 Emp Short Term Disability E 101-41500-131 Employer Paid Health $2.40 082006 Emp Life Ins E 601-49450-130 Employer Paid Ins $5.40 082006 Emp Life Ins E 602-49400-130 Employer Paid Ins $3.90 082006 Emp Life Ins E 601-49450-130 Employer Paid Ins $26.05 082006 Emp Short Term Disability E 101-45100-130 Employer Paid Ins $19.55 082006 Emp Short Term Disability E 101-41300-131 Employer Paid Health $54.29 082006 Emp Short Term Disability E 101-41400-131 Employer Paid Health $21.10 082006 Emp Short Term Disability E 101-42400-130 Employer Paid Ins $18.90 082006 Emp Life Ins E 101-41300-131 Employer Paid Health $14.10 082006 Emp Life Ins E 101-43100-130 Employer Paid Ins $9.00 082006 Emp Life Ins G 101-21710 Other Deducations $7.50 082006 Emp Life Ins Emp Port E 101-45100-130 Employer Paid Ins $5.40 082006 Emp Life Ins E 101-41400-131 Employer Paid Health $4.80 082006 Emp Life Ins E 101-42400-130 Employer Paid Ins $63.40 082006 Emp Short Term Disability Total Mill LIFE $353.92 Check Amt Invoice Comment is s IR • Paid Chk# 023148 8/7/2006 MINNESOTA COPY SYSTEMS E 101-41400-413 Office Equipment Rental $22.63 149015 Total MINNESOTA COPY SYSTEMS $22.63 • • Paid Chk# 023149 8/7/2006 MINNESOTA STATE TREASURER G 101-21705 Building Permit Surcharge $3,563.02 032006 G 101-21705 Building Permit Surcharge $5,993.64 062006 Total MINNESOTA STATE TREASURER $9,556.66 Paid Chk# 023150 8/7/2006 MN DEPT. OF TRADE/ECON. DEV. E 601-49450-601 Debt Sry Bond Principal $37,771.52 082006 E 601-49450-611 Bond Interest $12,193.74 082006 Total MN DEPT. OF TRADE/ECON. DEV. $49,965.26 Paid Chk# 023151 8/7/2006 MUNICIPAL EMERGENCY SERVICES Copier Maintenance Agreement March 2006 Surcharge Surcharge Principal - GO Bond Interest - GO Bond E 101-42000-591 C/O -Air Compressor $26,792.69 07052006 Air Compressors E 101-42000-585 C/O - Air Packs $1,803.14 07052006 Air Packs E 101-42000-591 C/O -Air Compressor $1,187.50 07052006 Air Compressors Total MUNICIPAL EMERGENCY SERVICES $29,783.33 Paid Chk# 023152 8/7/2006 N. A. C. E 482-49300-306 Planning Fees $398.70 15573 City Hall Final Plat E 101-41910-306 Planning Fees $53.30 15573 land use map E 482-49300-306 Planning Fees $764.50 15573 landscape plan -City Hall E 101-41910-306 Planning Fees $1,136.96 15573 zoning issues E 101-41910-306 Planning Fees $455.20 15573 Sex Offender Ordinance E 101-41910-306 Planning Fees $415.65 15573 Edina Development E 101-41910-306 Planning Fees $98.50 15573 downtown re -development E 101-41915-306 Planning Fees $344.50 15573 Advanced Fitness E 101-41910-306 Planning Fees $875.00 15575 planning comm, staff & council Total N. A. C. $4,542.31 Paid Chk# 023153 8/7/2006 NAPA AUTO PARTS E 101-45100-404 Repair/Maint - $121.75 06272006 General Repair to Equip Total NAPA AUTO PARTS $121.75 Paid Chk# 023154 8/7/2006 NEXTEL COMMUNICATIONS E 601-49450-323 Nextel Radio Units E 602-49400-323 Nextel Radio Units E 101-43100-323 Nextel Radio Units E 101-41400-323 Nextel Radio Units E 101-41400-323 Nextel Radio Units E 101-42400-321 Telephone E 101-42400-321 Telephone E 101-43100-323 Nextel Radio Units E 101-43100-323 Nextel Radio Units E 101-41300-321 Telephone E 101-45100-323 Nextel Radio Units E 101-45100-323 Nextel Radio Units Total NEXTEL COMMUNICATIONS $36.34 718183318-0 nextel phones $31.65 718183318-0 nextel phones $31.65 718183318-0 nextel phones $31.65 718183318-0 nextel phones $31.65 718183318-0 nextel phones $31.65 718183318-0 nextel phones $31.65 718183318-0 nextel phones $31.65 718183318-0 nextel phones $31.65 718183318-0 nextel phones $56.83 718183318-0 nextel phones $138.14 718183318-0 nextel phones $31.65 718183318-0 nextel phones $516.16 Check Amt Invoice Comment WE Paid Chk# 023155 8/7/2006 NORTHERN TOOL & EQUIPMENT E 101-45100-404 Repair/Maint - $532.49 0183182380 12V Power Pack E 101-43100-404 Repair/Maint- $451.01 0193164586 wire, lights, ratchet, slip ho E 101-45100-404 Repair/Maint- $77.73 0194062364 cylinder Total NORTHERN TOOL & EQUIPMENT $1,061.23 Paid Chk# 023156 8/7/2006 NORTHERN WATER WORKS E 602-49400-250 Meters for Resale $142.42 S01026040.0 Meters for Re -sale Total NORTHERN WATERWORKS $142.42 Paid Chk# 023157 8/7/2006 OFFICE MAX - A BOISE COMPANY E 101-41400-200 Office Supplies (GENERAL) $312.07 408848 cups, pens, ppr, hilighters, t Total OFFICE MAX - A BOISE COMPANY $312.07 Paid Chk# 023158 8/7/2006 PAT'S 66 E 101-42000-200 Office Supplies (GENERAL) $1.54 finance charge E 101-42000-212 Motor Fuels $96.26 13626 motor fuel E 101-42000-212 Motor Fuels $16.56 13629 motor fuel E 101-42000-212 Motor Fuels $71.01 13804 motor fuel E 101-42000-212 Motor Fuels $57.35 13805 motor fuel Total PAT'S 66 $242.72 Paid Chk# 023159 8/7/2006 PINNACLE PRINTING, INC. E 101-41400-200 Office Supplies (GENERAL) $830.70 5881 checks - envelopes Total PINNACLE PRINTING, INC. $830.70 Paid Chk# 023160 8/7/2006 PITNEY BOWES E 101-41400-413 Office Equipment Rental $410.00 07072006 postage E 101-41400-413 Office Equipment Rental $13.02 07072006 finance E 101-41400-413 Office Equipment Rental $102.00 0787150-JYO Postage Machine Rental Total PITNEY BOWES $525.02 Paid Chk# 023161 8/7/2006 PRAUGHT, BEATRICE G 101-22900 Park Rental Deposit Escrow $150.00 07312006 Park Rental G 101-22900 Park Rental Deposit Escrow $100.00 07312006 Damage Deposit Total PRAUGHT, BEATRICE $250.00 Paid Chk# 023162 8/7/2006 RAPIT PRINTING E 101-41100-300 Professional Srvs (GENERAL) $430.62 os 39621 Printing - Newsletter E 101-41400-200 Office Supplies (GENERAL) $509.17 os 39734 envelopes E 101-41400-200 Office Supplies (GENERAL) $332.61 os 39735 office supplies -envelopes Total RAPIT PRINTING $1,272.40 Paid Chk# 023163 8/7/2006 REED BUSINESS INFORMATION E 101-41100-351 Legal Notices Publishing $286.20 3307739 Total REED BUSINESS INFORMATION $286.20 Paid Chk# 023164 8/7/2006 S.E.H. E 468-49000-303 Engineering Fees $3,252.56 0144592 E 101-41710-303 Engineering Fees $1,370.02 0148468 Total S.E.H. $4,622.58 52nd Street Improve 1-94 Ramp AV 6th Add Check Amt Invoice Comment • • 20 • Paid Chk# 023165 8/7/2006 SCHARBER & SONS E 101-43100-404 Repair/Maint- Total SCHARBER & SONS Paid Chk# 023166 8/7/2006 SHARP, KELLY G 101-21705 Building Permit Surcharge R 101-00000-32210 Building Permits Total SHARP, KELLY Paid Chk# 023167 8/7/2006 SUNRISE PLUMBING E 602-49400-250 Meters for Resale Total SUNRISE PLUMBING $32.75 01 360051 repair - main $32.75 $0.50 B26-727 Reimburse surcharge $25.00 B26-727 Reimburse bldg permit $25.50 $88.59 8747 re -sale meter $88.59 Paid Chk# 023168 8/7/2006 TOSHIBA AMERICA INFO SYS INC E 101-41400-413 Office Equipment Rental $496.16 45139918 Copier Maintenance Agreement Total TOSHIBA AMERICA INFO SYS INC $496.16 Paid Chk# 023169 8/7/2006 VERNESS, NATALIE R 101-00000-34950 Other Revenues $5.00 overpmt of dog license Total VERNESS, NATALIE $5.00 Paid Chk# 023170 8/7/2006 VIKING TROPHIES, INC. E 101-42000-200 Office Supplies (GENERAL) $100.22 81482 Fire Dept. Trophies E 101-42000-200 Office Supplies (GENERAL) $121.09 81658 Fire Dept. Trophies Total VIKING TROPHIES, INC. $221.31 Paid Chk# 023171 8/7/2006 WARNERS STELLIAN E 101-42000-200 Office Supplies (GENERAL) $122.48 07142006 Water Cooler for Rescue Van Total WARNERS STELLIAN $122.48 Paid Chk# 023172 8/7/2006 WRIGHT-HENNEPIN COOPERATIVE E 601-49450-381 Electric Utilities $66.38 Lift Stations E 101-43160-381 Electric Utilities $316.51 Street Lighting E 101-45100-381 Electric Utilities $189.11 072006 parks Total WRIGHT-HENNEPIN COOPERATIVE $572.00 Paid Chk# 023173 8/7/2006 XCEL ENERGY E 101-41940-381 Electric Utilities $3.34 electric E 101-41940-381 Electric Utilities $17.46 general E 101-41940-381 Electric Utilities $23.19 general electric E 601-49450-381 Electric Utilities $4,181.02 Sewage plant E 601-49450-381 Electric Utilities $244.32 lift station E 601-49450-381 Electric Utilities $83.53 electric -lift station E 601-49450-381 Electric Utilities $29.19 Electric -Kaiser - Lift Station E 101-41940-381 Electric Utilities $473.83 Electric -City Hall E 101-41940-381 Electric Utilities $24.94 electric E 101-45100-381 Electric Utilities $61.94 electric park shelter E 101-45100-381 Electric Utilities $26.83 Electric Park shelter E 101-41940-381 Electric Utilities $28.59 electric E 101-43160-381 Electric Utilities $32.37 Electric-CR 19 & 37 Traffic E 101-41940-381 Electric Utilities $46.41 general E 101-45100-381 Electric Utilities $48.16 Electric -Main Ave -Parking Lot E 101-41940-381 Electric Utilities $51.98 Electric -Old City Hall E 101-43100-381 Electric Utilities $354.26 Electric-PW Garage E 101-45100-381 Electric Utilities $281.60 Electric--P.Shelter E 101-42000-381 Electric Utilities $219.17 Electric -Fire Dept E 101-41940-381 Electric Utilities $23.22 additional • Total XCEL ENERGY $6,255.35 Check Amt Invoice Comment 21 Paid Chk# 023174 8/7/2006 ZIEGLER E 601-49450-404 Repair/Maint - $675.00 E4883101 Total ZIEGLER $675.00 10100 Premier Bank $685,505.83 Fund Summary 10100 Premier Bank 101 GENERAL FUND $127,643.78 204 SEWER ACCESS $42.00 206 WAC FUND $42.00 468 CSAH 19 RAMPS/I 94 Project $4,740.06 470 CSAH 37 TRAIL. $137.50 473 PRAIRIE RUN $844.75 482 CITY HALL 2004-5 $305,044.20 488 ICE ARENA LOCKER ROOMS $36,580.00 491 WWTF Phase 2 $92,499.00 492 52nd st Industrial Park $43,161.00 493 CASH 19 & 57th Intersection $2,995.00 494 CSAH 19 & 50th St. (South 19) $245.00 496 Hockey Rink $4,674.79 601 SEWER FUND $56,624.63 602 WATER FUND $1,446.01 604 STORM WATER $8,786k11 $685,505.n_ Repair -maintenance • • 22 • CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO.2006-xx A RESOLUTION APPOINTING ELECTION JUDGES FOR THE SPECIAL PRIMARY AND GENERAL ELECTION FOR THE CITY OF ALBERTVILLE WHEREAS, The City Council of the City of Albertville is required by MS 204B.21, Section 2, to officially approve the appointment of election judges; and WHEREAS, the City of Albertville City Council hereby adopts the judges listed on Exhibit A, hereto attached, as the official judges for the September 12, 2006 State Primary, and the November 7, 2006 General Election, with the understanding that amendments may be necessary to the appointments in order to fill vacancies and meet party splits. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Albertville that the names listed on Exhibit A, hereto attached, are the Official 2006 Election Judges for the City of Albertville, State Primary Election to be held on Tuesday, September 12, 2006 and the is General Election on Tuesday, November 7, 2006 at a rate of $8.00 per hour. Exhibit A — Attached Adopted by the City Council of the City of Albertville this 7th day of August 2006. Donald Peterson, Mayor Bridget Miller, City Clerk • 23 Exhibit A — Official 2006 Appointed Election Judges Tracey Nubbe, co -Head Michael Johnshoy Kathy Undlin, co -Head Joyce Jungbauer Jane Arnoldy Lorraine Keske Sarah Blenkush Anges Kohnen Norma Casey Charles Davidson Elaine Engstrom Lana Freeburg Marjory Hart Terri Hobza Larry Kruse Dennis Kueng Tina Lannes Linda Leger Tori Leonhardt Raymond Meyer Bridget Miller Charles Nelson Sharon Nelson Douglas Potter Beatrice Praught Judy Rand Judy Roden Mike VandeBerg Jeanne Vetsch Charleen Zachman 0 • • 24 � SEH July 12,2006 OS tic Arma Laackur fete ,8,ddjtiotj L H N a -AL_ EN (15 15 bO 14.00 florlona le xllayot gatid cily coomil c'o Larry Y rya City a&Allx,-lv ll 1'Acl wd plumte find fuuT copics of Application for Payment No, 6 far th3r, a"qCCt. 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Jk1'_'HlT9C7,'S CZRTIFZCATE FM PAYMENT I M actotdtfto *I th the r7401'84t gimi'MMS, based an om-0:# o,%*wotiwm " the data cawnsing thEs #Ygplit,oti,w, the Architect eartifies to the Owrer jhj;t to thq best of the Ar&M=V-_ krtwtedp_ information wid belief the Work has progrettvd 64 irviicatcd, the quality of the Work Is In w,,ikh rtie 1.optraKt O"w , t;, and the Contractor is anti bell to paywnt of Che AMOUNT CUTIJUD, J' -art f I i L „Attach explanation if afto_nt e, vd differ4 f"m the ameunt applied for. Iniflak att fl jre* an Phis APPI iowtift' am, on the cantip.Lation sheet that are cmorqod to conform to the amunt certified,) An"111 - DATE: T'sis Certificate is not Me0atiaMt. Thy -t,RT;F19D is payacits onky to tN Conrractw nanod i erem;. Imwoftct, poywnt and of: paynent era withoat prejudice to " riohts of the Ogg *t of, Cartractar u-sder this Cortract. tot614k CMUCT Ao"T_ ............. ..... ...... Tl TOTAL CSOGE ORTER AKLMT .... _ ------ TOTAL CONTRACT INCIUVENt C#AWGE 0AOER1, ....... S 00.14T CWLETED TO 0X7 .......... ...... I RETAI NA49, - a . CM OF WORK COMPLETED : .... .......... S 5.0= OF STU*b MAT AL UPPLtMO 10 DATE LESS RUAIMAGE,, S PREVIOUS AM"I VLLE6 ............ ... s 3 MALE. TA t .................. .......... CUIRENTAMMI SUE .... ...... ..... 41"t 111 1-11 1—, 11111 .' S 6w .9%1 Go 984 00 641)'qw.m ARR '56, 5w, Do 2,634.00 The undersigned CoMe*"Oe C*rtiffft 1114; TQ the beat at ttt-* CM(ritta(IS inforM tion Arai belief the Wort EaverM. i7f this Application for Payment has been rempieted in auordwte with the Contract Documents, that aki daotmtt ho" b"m p0d by the Cnntrartar for 1,wk for wh50 prey Fous CertMeO14% for Paymem ire ittwd Ard p*ftmu rec#Omd tnw tt§o Cwner, -wf That twr-w,4r ;*Vwt shaw harein, Is inow due- M14TRACTLOS, INC, star of Mina "to Owinty of z Stearns 5 rib4o, worr to before me Ohim 7th clay of� 4awy puol 6t-' 1. , C sy Cwmtsslon, cxpirics. January 31. 2010 -EAMHER 0," !MDA'�H" "My Rklia ;'vo 0 0 26 0 1�1 4 LlUm9gm;2= To'- CITY OFAIBERT VILLE 5 9 7 5 M A I N, A V EN U E INT, Po Box 9 AlTiERWILLEMN 5$301�0009, JULY 26,20N SEH File Na.: ALDEV05,12,01) CMent Me.- - Ro', (-A%N'FR.'S PRO. JFC7 NUMBER , APPTIC,,N,'1'1()N FOR PAYMENT FLA, IBER ' .4F, CONTRA Cx':FOR WASTEWATER TEA 7.74ENJ FACRM", W* are, 0 Cft7Jo*ng swmling War mParm* co 0 Senclog as requested For y4wf,- 0 (ngwmobnm'RRe-view and cpmmer4 AppraVaP 0 A&tocyn, Noldbulion Revimn and- To3uhmitaw Roma*s�-' SEN RECOMMENDS PAYMENT OF PAY REQUEST NUMBER 14 F IN ..AMMOUNJ 0F!4Z499[J)(, NCLUDES CHANOE ORDIER #2,N THE AlMOUNT OF $2,09..W TJrx* I (A-jN,%TkUf.'Jj0N, D4C,. 27 -71�- M"Wrif *lTSlYoVMM 3990 27TH ST SE SUFFAL0, II UN 65313 RFQ-U,EST FOR PAYMENT 7M-746-"7'3 0 WASTEWATER THE- ATNONTF FACTLITY MjkADC I ()XIONAL CONTRMI.77 AMOI-Wr 120 2, CVAW,.r-- 0"ER - AMMON $ 3 CHANGE ORDER , DEDUC-nt),.N I 4 MAOISED COMIRACT AMOUNT 5 VALUE C-02SPLE ll�()TO 6 WN.IEMAL STO"D 7 AN10IM'EARNED T111$ "RJOE) ITSS RETAJ7A(,E I LUSAMOUNT PMrIM.,,,.,3LY PAN) 11 AMOUNT DtT, TMS RIOVEST 914" C AppmvCftntmc-tar! CRID( (CONSTR, INC. .0 IWARERT MENITR V MW2006 Conwacl Couiplolitm Mar, PAYXIS'Yff ZIMC- M- Appm,wA by Owper CITY OF ALBLRIVIIJLE D41C i m • CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO.2006-11 AN ORDINANCE MODIFYING 2005 CITY CODE TITLE 1, CHAPTER 5, SECTION 1 The City Council of the City of Albertville ordains: Section 1. Compensation. Compensation of the Mayor shall be $400 per month and compensation for each Councilmember shall be $300 per month. Said salaries include attendance at any and all meetings of the Council, its Boards, Commissions, Committees, and inter -governmental assignments. Section 2. Effective Date. The salary schedule shall be effective January 1, 2007. Section 3. Repeal. The following ordinances are hereby repealed and replaced: ■ Ordinance No. 1990-7, adopted September 4, 1990 ■ Ordinance No. 1996-18, adopted August 16, 1996 ■ Ordinance No. 2002-11, adopted May 20, 2002 Section 4. Effective Date. This ordinance shall be in full force and effective immediately following its passage and publication. Adopted by the City Council of the City of Albertville this 7 h day of August 2006. Don Peterson, Mayor Bridget Miller, City Clerk • Q Mr, City Adminimmwr City ofAlbatville 5975 Main,Avcwjc WIP 0, DO-1 9 Albatville. MN 55301-0009 �umwjllk:' =4 Oda . LO Will ; rnn 4 i 11, OWL AeAiMdM 7i--UV7,T7M4F i I I �<ITF177�m Cc. Gwy Mm, Dami3 Fdm Gmvcl & Ex=v*ting toM-, KATO, W4 a FAMMONT.,MN - SLEEPY FW, MN , WRNSVILLE VN - WUM4R,, MN - CHASXA NIN ® ANEI�, A An -rqL& f—J.,6vef 31 AW#274 200 TOTAL, COMPLETED WKW TO DAT 95 7t RETAINEOPMENTAGE ( 74 ) Joel 70TAL AMOUNT OF CMiER PAYMENTS OR (M*jCt*N$j NET AMOUNT DUE TO 0ONTRACTOR TO OATS 171 TOTS AMOUNT P T:ES WMA2 PAY 0ONTRACYCA AS EST#AkTt W. W74,79 Rol wx And Now Too oft is 32 "irl Bonestroo z3 3 5 %k"L� 5 E H'gh"'a Y 36 5 t' P " k' 1 - r"'vj FJ!' 11 3 Rosene w,rnrsr, Assoclates .re f t , 2006 Mr. Larry Krum City f AlbcrMRIC, 5 75Main wm-f Albertville, MN 55301 Re: Albertville City Hall Boarstroo Project No.0 1 8-0 lid Pay Request 6 r Mr. Kru&e-- Transmitted herewith are fourf j copies Request forPaymwnt No, 6. We have viewd the . request and hcrcby rwommmd appr vol for payment in the amount of :53 205, ), Pleasc execute the documents and distribute follows',, l copy City of Albcavilk, 2 copies r itbac Constnrction, Attiv Mr. Ryan Urrithach t copy Bonestrm Rosen, And rtik & Associates Inc, att - l i hard I1iell Also attached is the Casa Waivers for Pear Rcqu No- 5. Should you have any quicstions regarding Ns prv.lect, pleas: feel free to call m w, 51-6(4- 91 *car s vcr,y truly, Richard Hjlle Enclosare • 35 COWRACTOR'S REQMT FOR PAYMENT ALSERMILLE VTY HALL BPA FILL WD, 001OZ&O5100-0 SUNUARY i Oronal Cahlracl Ammo 2 change Ordw - AAdiWo S a Change OrwfX,,b:m 4 Revised OzNwt Amiumt 5 Value Coledl L- Oak 6 Ww4 on Hwd 7 mount Earmo 8 Less Relainage 9 Subimal !0 toss Armwm, Paid IV 11 L*ifJ*W dwiaoa - 12 AMOUW rXW, THIS REQUEST FOR PA'WEN7 WE. IzTa -Itt-:11WIM ap2t I -L411" 1 [;11 Si* adathed � Spv.6ed Contrad. Qprro,*tom foie' Rm • 36 • CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO.2006-xx RESOLUTION APPROVING A MODIFIED DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 12 BE IT RESOLVED by the City Council (the "Council") of the City of Albertville, Minnesota (the "City") as follows: Section 1. Recitals. 1.01. The City has proposed to modify the Development Program for Municipal Development District No. 1 pursuant to Minnesota Statutes, Sections 469.124 through 469.134 (the "Development District Act"), and to that end has caused to be prepared a document titled "Modified Development Program for Municipal Development District No. 1" (the "Modified Development Program"); 1.02. The City has determined a need to create Tax Increment Financing (Redevelopment) District No. 12 (the "TIF District") therein pursuant to Minn. Stat., Section 469.174 through 469.179 (the "TIF Act"), and to that end has caused to be prepared a document titled "Tax increment Financing Plan for District No. 12" (referred to as the "TIF Plan"). 1.03. The TIF Plan and Modified Development Program were, in accordance with the Development District Act and TIF Act, referred to the Albertville Planning Commission (the "Commission"), which found that they conform to the general plan for the development of the City as a whole, subject to a modification to the City comprehensive plan which the Commission approved on June 13, 2006. 1.04. Notice of the City's intent to establish the TIF District was delivered to the County Commissioner who represents the site at least 30 days before publication of the notice of public hearing. 1.05. A copy of the draft TIF Plan, including estimates of the fiscal and economic implications of the TIF District, was provided to Independent School District No. 885 and Wright County at least 30 days before the Council's public hearing on the TIF Plan. 1.06. This Council has fully reviewed the contents of the TIF Plan and Modified Development . Program and on this date conducted a public hearing thereon at which the views of all interested persons were heard. 37 Section 2. Findings; Modified Development Program for Development District No. 1. 2.01 It is found and determined that the Modified Development Program is intended to provide an impetus for development in the public interest, and that the effect of the Modified Development Program will be to encourage development in accordance with the general plan of development of the City as a whole. Section 3. Findings; TIF District No. 12. 3.01. It is found and determined that it is necessary and desirable for the sound and orderly development of the Development District and the City as a whole, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF Act be exercised by the City to provide public financial assistance to the TIF and Development Districts. 3.02. It is further found and determined, and it is the reasoned opinion of the City, that the development proposed in the TIF Plan for the TIF District could not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan. 0 3.03. The Plan for the TIF District conforms to the general plan of development of the City as a whole. 3.04. The Plan for the TIF District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the TIF and Development Districts by private enterprise. 3.05. The TIF District is a redevelopment district under Section 469.174, subd. 10 of the TIF Act, based on the findings described in the TIF Plan, which are incorporated herein by reference, and other records on file with the City. 3.06. Reasons and facts supporting the findings under this Section are stated in the TIF Plan. The City has also relied upon the reports and recommendations of its staff and consultants as well as the personal knowledge of members of the City Council in reaching its conclusions regarding the TIF District. Section 4. Modified Development Program and TIF Plan Adopted; Certification; Filing. 4.01. The Modified Development Program and TIF Plan are hereby approved and adopted. 4.02. The geographic boundaries of the TIF District and Development District are described in 0 • the TIF Plan and Modified Development Program, respectively, and are incorporated herein by reference. 4.03. The City Administrator is authorized and directed to transmit a certified copy of this resolution together with a certified copy of the TIF Plan to the Auditor of Wright County with a request that the original tax capacity of the property within the TIF District be certified to the City pursuant to Section 469.177, subd. 1 of the TIF Act, and to file a copy of the TIF Plan and Modified Development Program with the Minnesota Commissioner of Revenue and State Auditor as required by the TIF Act. Adopted by the City Council of the City of Albertville, Minnesota this 7t' day of August, 2006. Don Peterson, Mayor Bridget Miller, City Clerk • 39 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO.2006-xx RESOLUTION APPROVING A PRELIMINARY PLAT FOR SCHULTZ & SCHUPP LLC AT 5836 LARGE AVENUE NE WHEREAS, Schultz & Schupp LLC has submitted an application for a preliminary plat at 5836 Large Avenue; and WHEREAS, City staff has reviewed submitted plans and prepared a planning report dated June 8, 2006; and WHEREAS, the Albertville Planning Commission met and held a public hearing on June 13, 2006 to consider the Schultz & Schupp LLC application; and WHEREAS, upon review of the staff reports and hearing public testimony, the Planning Commission closed the public hearing and recommended that the City Council approve the site and building plan review and conditional use permit application with the conditions outlined in • the June 8, 2006 Planning Report, June 7, 2006 Memo from the City Engineer, with additional conditions recommended by the Planning Commission; and WHEREAS, the applicant has submitted revised plans dated June 26, 2006; and WHEREAS, the Albertville City Council has received the Schultz & Schupp application, staff review documents, and the Planning Commission recommendation, and agrees with the findings and recommendation of the Planning Commission. NOW, THEREFORE BE IT RESOLVED, that the City Council of Albertville, Minnesota hereby approves the preliminary plat for Schultz & Schupp LLC subject to the attached Findings of Facts and Decisions. Findings of Fact: Based on review of the evidence received, the City Council now makes the following finding of fact and decision: A. The site legal description is attached as Exhibit A. B. The planning report dated June 8, 2006 from Northwest Associated Consultants and the Engineer's Reports dated June 7, 2006 are incorporated herein. C. The proposed use can be accommodated with existing public services and will not overburden the City's service capacity. 41 D. Traffic generated by the proposed use is within capabilities of streets serving the • property as proposed. E. The requirements of the Albertville Zoning Ordinance have been reviewed in relation to the proposed use. F. The proposed actions have been considered in relation to the specific policies and provisions of and have been found to be consistent with the Comprehensive Plan. G. The proposed use will be compatible with present and future land uses of the area. H. The proposed use conforms to applicable Zoning Ordinance performance standards. I. The proposed use will not tend to or actually depreciate the area in which it is proposed. Decision: Based on the foregoing information and applicable ordinances, the City Council APPROVES the preliminary plat based on the most current plans dated June 26, 2006 and information received to date subject to the following conditions: 1) Final Plat for the lot combination must be submitted and approved by the City prior to the • issuance of the building permit. 2) A sidewalk is required in the right-of-way along Barthel Drive connecting with 591h Street and extending to the eastern property line of this site to be provided when sidewalk is installed along the south side of 59�' Street between Main & Large Avenue. The developer shall enter into an Assessment Agreement with the City to ensure the future installation of the sidewalks. 3) Public street right-of-way shall be dedicated over the north western corner of the site to accommodate the extension of Large Avenue. The right-of-way and entrance within will allow access to adjacent parcels without the need for cross -easements. 4) The northwest access shall be constructed per the City Engineer's concept of July 17, 2006 provided that an access easement is obtain from the property to the west with all cost being covered by the developer and no cost to be covered by the City. Absence of the easement acquisition, temporary direct access to Barthel Industrial Drive shall be allowed to align with the drive aisle west of the building. Said temporary access shall be removed at the cost of the developer when Large Avenue is constructed along the west property line with the development of the property to the west of the subject site. 5) A drainage and utility easement over the pond shall be provided and recorded. The Developer shall be responsible for upkeep and maintenance of the pond. • 42 0 6) The Developer shall enter into a Developer's Agreement with the City of Albertville. 7) In the event access is not obtained a temporary curb cut shall be placed directly north of the service drive. This access will be eliminated when Large Avenue is improved to the west or redevelopment occurs on the property to the west. 8) A cross easement and maintenance agreement for access to the property to the east. Adopted by the Albertville City Council this 71h day of August, 2006. Don Peterson, Mayor Bridget Miller, City Clerk • 0 Gf1C NORTHWEST ASSOCIATED CONSULTANTS, INC. 4800 Gilson Memorial Highway, Suite 202, Golden Malley, MN 55422 Telephone: 763.231.2555 Facsimile: 763.231.2561 planners@nacplanning.com MEMORANDUM TO: Larry Kruse — City Administrator FROM: Alan Brixius / Charles Carlson DATE: July 28, 2006 RE: Revised Resolution — Albertville Plaza Second Addition NAC FILE: 163.05 — 06.22 BACKGROUND The attached resolution relates to the proposed automotive service center and retail development at Albertville Plaza, Second Addition. The Planning Commission recommended approval of the development subject to conditions outlined in the staff report dated June 29, 2006. The applicant then submitted revised platting, grading, drainage, utility, and site plans to respond to conditions included in the initial report. REVISED PLANS We have prepared a City Council resolution based on the Planning Commission recommendation and the revised plans. Planning Commission/Staff conditions satisfied in revised plans include drainage and utility easement requirements satisfied, signed plan sheets, pedestrian circulation, snow storage, and additional parking requirements. Other conditions for landscape, lighting, and signage remain, as well as standard conditions such as the requirement to enter into a development agreement with the city. Staff also reviewed parking requirements on the site. Automotive uses are credited 1,000 square feet for storage area in determining parking requirements per the Zoning Ordinance. Approximately 1,000 square feet are located in the proposed building for this use. Therefore, no reduction can be provided. The site provides two fewer spaces than required by the Zoning Ordinance, but provides parking on the street in revised plans. Still, we would like to investigate lengthening the on -street parking stalls to accommodate larger vehicles. 45 ATTACHMENTS Resolution Exhibit A Site Plan Exhibit B Grading and Drainage Plan Exhibit C Utility Plan Exhibit D Preliminary Plat Exhibit E Final Plat Pc. Mike Couri Adam Nafstad Jon Sutherland Applicant — RJ Marco, 75 W Viking Drive #104, Little Canada, MN 55117 Owner — Albertville Plaza LLC, 75 W Viking Drive #104, Little Canada, MN 55117 • .R • CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO.2006-xx RESOLUTION APPROVING A SITE AND BUILDING PLAN REVIEW, PRELIMINARY AND FINAL PLAT, AND CONDITIONAL USE PERMIT (CUP) /PLANNED UNIT DEVELOPMENT (PUD) AMENDMENT FOR ALBERTVILLE PLAZA SECOND ADDITION LOCATED AT COUNTY ROAD 19 AND COUNTY ROAD 37 IN THE CITY OF ALBERTVILLE WHEREAS, RJ Marco Construction has submitted an application for site and building plan review, preliminary and final plat, and conditional use permit/planned unit development amendment to construct a new retail building and plat a future retail/office development on the site legally described as follows; and Outlot A of the Albertville Plaza Addition, Wright County, Minnesota WHEREAS, City staff has reviewed submitted plans and prepared a planning report dated July 6, 2006; and • WHEREAS the Albertville PlanningCommission met and held a public hearing on p g July 11, 2006 to consider the Albertville Plaza Second Addition application; and • WHEREAS, upon review of the staff reports and hearing public testimony, the Planning Commission closed the public hearing and recommended that the City Council approve the Conditional Use Permit/Planned Unit Development amendment, preliminary plat, final plat, and site and building plan review, subject to the conditions outlined in the July 6, 2006 Planning Report and Engineer reports with additional conditions recommended by the Planning Commission; and WHEREAS, the Albertville City Council has received the Albertville Plaza Second Addition application, staff review documents, and the Planning Commission Recommendation, and agrees with the findings and recommendation of the Planning Commission. NOW, THEREFORE, BE IT RESOLVED, that the City Council of Albertville, Minnesota hereby approves the site and building plan review, preliminary and final plat, and amendment to conditional use permit/planned unit development subject to the attached findings of fact and decisions. 47 Findings of Fact: Based on review of the evidence received, the City Council now makes the • following finding of fact and decision: A. The site is described as Outlot A of Albertville Plaza. B. The planning report dated July 6, 2006 from Northwest Associated Consultants is incorporated herein. C. The proposed use can be accommodated with existing public services and will not overburden the city's service capacity. D. Traffic generated by the proposed use is within the capabilities of streets serving the property as proposed E. The requirements of the Albertville Zoning Ordinance have been reviewed in relation to the proposed use. F. The proposed actions have been considered in relation to the specific policies and provisions of and have been found to be consistent with the Comprehensive Plan. G. The proposed use will be compatible with present and future land uses of the area. H. The proposed use conforms to the applicable Zoning Ordinance performance standards and approved planned unit development standards. I. The proposed use will not tend to or actually depreciate the area in which it is proposed. Decision: Based on the foregoing information and applicable ordinances, the City Council APPROVES the site and building plan review, preliminary plat, final plat, and conditional use permit/ planned unit development amendment based on the original plans dated June 30, 2006 and revised plans dated July 19, 2006, subject to the following conditions: • Preliminary Plat 1. The applicant shall seek approval from Wright County for the development along CSAH 19. The plans and plat shall be submitted to the Wright County Highway Department for review and approval. 2. The Developer will be responsible for all construction permits required for the improvements (sanitary, water, storm water, etc.) 3. Cross easements shall be submitted on private streets to allow access to the property to the south. Said easements shall be subject to review and approval by the City Attorney. Final Plat 1. The applicant shall enter to a Development Agreement with the City. 2. The city must vacate existing easements on the site, which will be replaced with new easements dedicated by the applicant. A park dedication fee in the amount of $30,300.00 shall be made to the City of Albertville at time of final plat approval. 0 Mi 4. Cross easements shall be required on private streets to allow access to the adjacent property to the south. These easements must be recorded at the time of final plat recording. Conditional Use Permit/Planned Unit Development 1. Block 2, Lot 2 shall be approved as a separate approval requiring site and building plan review, including any additional permits or approvals as necessary. Uses on block 2, lot 2 are restricted to professional office, day care, credit union, and retail sales. 2. A pedestrian connection to Block 2, Lot 2 will be required when the lot is developed. Crosswalks shall be provided across parking lot aisles and roads, as necessary. 3. Landscape Plan Amendments, including: a. The proposed trash enclosure shall be screened from view by landscaping or fencing on the south side. b. The landscape plan shall be revised to add screening along the east side of the site to screen the parking lot from CSAH 19, per code requirements. A minimum height of three feet is required. d. The landscape plan should be coordinated with the sign plan. Spruce trees under the proposed 27' ground sign (9' clear height) should be replaced with a shorter species that will not hide the sign at mature height. 4. Signage conditions, including a. Between lots 1 and 2, a total of two freestanding signs are allowed (one per lot) with a total of 242 square feet maximum area; applicant may distribute the freestanding sign area between the two sign provided no individual freestanding sign exceeds 150 square feet. b. Freestanding signage shall have a dark background with illuminated lettering c. Signage shall be illuminated only during store hours of operation. Sign lights shall be turned off when retail tenant spaces are closed. 5. Lighting on the east property line shall be 90 degree cutoff lighting, and shall be shielded or otherwise modified to eliminate light trespass above 1.0 foot-candles in the right-of- way. 6. Fire department amendments, including a. If the building will have sprinkling type fire protection, separate water shutoffs and services for the fire line and for the domestic line will be required, as well as, easement over services and their shutoffs. b. Hydrant spacing and water supply shall meet the requirements of the latest version of the Minnesota State Fire Code and that of Albertville's Fire Chief. 7. Bump -out parking provided on revised plans shall be extended along the east -west private street. is Adopted by the Albertville City Council this 7th Day of August 2006. CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO.2006-xx RESOLUTION VACATINGA DRAINAGE AND UTILITY EASEMENT LOCATED ON OUTLOT A, ALBERTVILLE PLAZA WHEREAS, the City of Albertville has duly published and mailed notice of a public hearing to consider the vacation of all of the drainage and utility easements located on Outlot A, Albertville Plaza according to the plat of record in the Wright County Recorder's Office, Wright County, Minnesota; and WHEREAS, the City has heard from all interested members of the public at a duly noticed public hearing to consider said vacation; and WHEREAS, the City believes that with the filing of the plat of Albertville Plaza Second Addition said drainage and utility easements are no longer needed for drainage and utility purposes; and WHEREAS, the City believes that it is in the interest of the public to vacate said drainage and utility easements; NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF ALBERTVILLE: 1. The City finds that said drainage and utility easements described above are no longer needed for public purposes; and 2. The City finds that it is in the interest of the public to vacate said drainage and utility easements described above; and 3. The City Clerk is hereby directed to execute the necessary paperwork to complete the vacation of said drainage and utility easements described above. Adopted by the Albertville City Council this 7th Day of August 2006. 0 51 0 AIbc tvi e Small Town Uving. 819 ClAp We. TO: City Council FROM: Tim Guimont DATE: July 28, 2006 RE: Public Works Department Parks Maintenance Department 1. The playground equipment at four Seasons Park has been installed. The gazebo should be done sometime this month. City staff has installed retaining walls and done some landscaping there as well. 2. The gazebo at Villas Park is complete. The second lift and striping has been done on parking lot. The city staff installed two basketball hoops and landscaped around the gazebo. 3. There is a trail leaving Oakside Park between 10779 and 10759 57th Street NE that has been damaged by tree roots from trees that were planted in the back yard of 10779 57ih Street.NE • City staff has rented a trencher and purchased sheet metal to put between the property and the trail. The cost to date is about $350.The cost to repair the trail is $1600. The Westwind apartment manger was not happy with some of the cleanup along the 37 trail so I made a deal with Oman's that we would finish the cleanup and they would take $500 off of the trail repair at Oakside park. 0 Streets Maintenance Department 1. The Albertville sign on MacIver Avenue NE has been moved to north towards 70th Street NE. 2. Signs have been ordered to change old MacIver Avenue NE to 63rd Street NE. 3. We have been patching potholes with hot mix around the city. 4. We have been mowing lots of weeds in ditches and private lots. 5. A resident called and asked why Main Avenue NE is not marked as a School Zone in front of the Albertville Primary School. It would be a good idea to provide signage on Main Avenue NE identifying it as a School Zone location. 53 TO: _N13-yor and C*' Cal=il FROM: John Stadella DA L T—E July 27, 20 06 RE Allbea-,-,ffle Wastewater Treatment Pant E.=3=,ou, SEHNo. A-ALBF,1105,12.00 This ruemo is intended to pronde an update on the progrem by Gridm- Cons waction Inc., on the ,waste xater treat plant an sou.. Comtrmnon and ptuich h-.t issues (nat wmTanty)ewe ccTapleted by Gaidor p= to the schedded conr?Ie--;on date of hme 30, MCA- A walk fln-ough was done an July 112' 21Xj6 on punch list items, to obsisne tl ap3etiam Pay Appli c atiou, ILN76. 'A (Final) ha,-., been retie wed and submitted to the Ghy Council for apploval. T"nat payapplictitian also includes a Chance Order '-No. 2M' the anaount, of $2,499which INUUR-I"council. aWoval. The chmm order Micldes five separate items which are explained ivit-1, the changge Wider Gridoz. �s pay apphcaticm does not zhmv any retainagge because they have pleilgged.:,ecunities in lieu of letaL-k-ge as al. .'Imved bar 'Mimm-e-ou Sta=tes and accepted by the City. ---t Is nny underqsanchng that the am,cmt of securities is $196,OOC, 6or this, 'ect, W, "hen I Ezat rffi, Gidor to rel"Iew thepr,ect, I in&imed there that I culzinot recommend to the City that those secuakiesreea~ Mi total until two warranty its are completed arid accepted, These are as foLows- :ill landscaping-ad€ng;, top-scil, seedihas been completed- HoueveT. this occuzred during kane. a !ime, which was too hot for any grza.- to grow. Ckideruili need to reseed most of the site this fall dnmin� shment -s a S12.000 item cm flseir pay applikatian which needs ; cooler ws3-�fier. Twf esmEi to be, redone. We -would typically keep money from ret.-.M'U E a a--',er the work was completed to a=.a-e that the 7,af=' establi fed. th e heI=axiolet disiinzBectionaystem, althougL- work-ing- requzes, some electromc boards replaced in the ex:stingcontrol panel. This doe-, not appex x be the contrac*or's prcbk-= bec.Tase, :he fasilty parts are no., pit of the ' v-stem that Ckidor pvmided. These boards are n,,-iv beuig b�ypased ,txith ten--porazzywazing, Fxwever, ne-tv bcir&- -Lr.-" be nntalled and thetenipomy by.y pzus Wirule needs to be chaused o-vu for the systemto, work- as &,upe-& The co=ractar completed their vxik but issues as found -vvith the en'"-stingg zy-.*em. ThKT h.-,, e ageed to came back and rewire when the parts can be replaced.. I "WOOL -A sugf gre�, when G.-Idor requests a dra-w&=n on thefi-secuyities that m, auw m-A ofFabout S-90.000, be retahned =1 these two Wazranzy items are com*v.,ed. I realize this is quite a bit n=e thaniw cost to do that as but that anicuat -a-21 In-ovLde mmie mcentive to cau4zlete them. After &,,doyreceives fmal paNmm=, they are still required to panide lien- u-iiveis x-A IC -I 34 fm=,. We have alsasczhedWed an ou-site final =Tection with the -NIPCA ou.Augmt 3, 2006. stwIl FjrAd *4Pdftmcm ino, 353svas-at cer-mrarhe, eL Pw, m*4 ss itc-.1% I WWWAehtMWM " SS1.49:1.21"M ! SCIG.32SzZS6SI.032ise4 x 55 • e A�Ibcrtvi e Small Tows Wing. Big City We. TO: City Council FROM: Tina L. Lannes DATE: August 4, 2006 RE: Accounts Receivable Update Total accounts receivable outstanding through August 3, 2006 is $90,014.76 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 $57,342.31 63.70% $4,421.67 4.91 % $5,626.58 6.25% $22,624.20 25.13% The majority of the over 90 days outstanding is due to Gold Key Development, Yearwood Development and the St. Michael, Albertville District. 57 Vendor Amount Due 0-30 Days 30-60 days 60-90 days 90 days & Over 152 CLUB $500.00 $500.00 ALBERTVILLE HOLDINGS $2,047.67 $2,047.67 ALBERTVILLE MEDICAL CLINIC $4,034.70 $4,034.70 BRACK BUILDERS $126.04 $126.04 BURGER KING $1,171.69 $127.70 $535.83 $508.16 CAHOON, MATTHEW $200.00 $200.00 CARIBOU COFFEE $138.60 $138.60 CARLSON, BRETT $378.13 $378.13 CPG PARTNERS $1,199.69 $90.63 $861.64 $247.42 EDINA DEVELOPMENT $3,336.69 $1,470.02 $1,387.34 $479.33 ERICKSON, JUSTIN & KARI $189.06 $189.06 FRANCIS PROPERTIES $500.00 $500.00 GEEZ SPORTS BARS $584.00 $584.00 GOLD KEY DEVELOPMENT $5,631.00 $36.25 $73.71 $5,521.04 GREENINGER, JOHN & BRENDA $400.00 $400.00 GUTWILLER, GREG & ZONA $100.00 $100.00 HERMANN, KRISTI $100.00 $100.00 LACHAPELLE, TAMMY $80.67 $80.67 LENGSAVATH, SKIP $100.00 $100.00 LEUER-MUNSTERTEIGER PROPERTIES $300.00 $300.00 LIFE IN CHRIST CHURCH $42.10 $42.10 LITZAU, JEFF & LINDA $126.04 $126.04 MAINSTREAM PROPERTIES $272.82 $168.00 $104.82 MAJESTIC BLDRS $300.00 $300.00 MAJORS SPORTS BAR $1,000.00 $1,000.00 MERCHAND, JOSH & THERESA $100.00 $100.00 NORTH COUNTRY QUALITY BLDRS $126.04 $126.04 NORTHWOODS CUSTOM HOMES $800.00 $800.00 OLDCASTLE GLASS $81.68 $81.68 OPTION ONE MORTGAGE CORP $252.09 $252.09 OTSEGO, CITY OF $24,273.44 $24,273.44 PARAMOUNT HOMES $100.00 $100.00 PETERSON, JOSH $252.17 $252.17 PREMIER DEVELOPMENT GROUP $148.67 $69.30 $32.40 $46.97 SHOPPES AT PRAIRIE RUN - FINKE $144.65 $144.65 SHOPPES AT TOWN LAKES $33.09 $33.09 SHOPPES AT TOWNE LAKES 2 $4,774.86 $1,290.90 $81.68 $2,116.83 $1,285.45 SMACKDOWN BAR & GRILL $1,430.03 $500.00 $930.03 SPACE ALIENS $280.00 1 $280.00 • • • • • • ST. MICHAEL, ALBERTVILLE DIST $5,521.35 $5,521.35 ST. Michael, CITY OF $12,259.00 $12,259.00 T-SQUARE PROPERTIES $84.00 $84.00 TERRA DEVELOPMENT $1,878.98 $36.25 $1,842.73 TOWNE LAKES $7,394.21 $6,845.50 $343.34 $205.37 WAHLSTROM, SHAWN & MEGAN $205.01 $205.01 WARD, TOM $500.00 $500.00 YEARWOOD DEVELOPMENT $6,516.59 $491.36 $6,025.23 Total $90,014.76 $57,342.31 $4,421.67 $5,626.58 $22,624.20 Total Billed (Through 6/28/06) $762,903.64 Total Collected (Through 6/28/06) $672,888.88 Current 0-30 days $57,342.31 63.70% 30-60 days $4,421.67 4.91 % 60-90 days $5,626.58 6.25% over 90 day $22,624.20 25.13% 59 • A�Ibcrtvillci • TO: City Council FROM: Tina L. Lannes DATE: August 4, 2006 RE: Project Status Update Council requested an update on outstanding project status. Below are the contracted projects with amounts paid to date as of August 3, 2006: 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 $1,481,972.61 $113,260.92 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 $3,615,000.06 $89,999.94 05 Overay $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 Ice Arena Locker Room $683,581.00 $537,050.00 $146,531.00 Hockey Rink $100,953.00 $88,820.92 $12,132.08 City Hall $3,091,000.00 $1,442,480.00 $1,648,520.00 37 Trail $241,522.75 $226,608.96 $14,913.79 Total 1 $13,766,301.42 1 $11,479,695.66 1 $2,248,883.53 83.39% • 194 Project $287,131.55-$287,131.55 C= Construction R= Retainage C & R C&R R R C&R C & R R C&R R R C&R C&R C&R C & R 61 Albertvill-c Small Town Uving. Big City Ufa. TO: City Council FROM: Tina Lannes/Adam Nafstad DATE: August 3, 2006 RE: Prairie Run Addition REQUEST FOR COUNCIL ACTION BACKGROUND The City of Albertville has secured a bid in the amount of $78,298 to complete the installation of wear course within the Prairie Run Addition as part of the 2006 overlay project. The original contract for the Prairie Run construction project that was allocated for special assessments was $1,597,046. The City of Albertville has spent $1,481,972.61 to date. This leaves $115,073 left on the budget for construction according to the assessment allocation numbers for construction. The contract amount for completion of the wear course is $45,129 leaving an additional expense of $33,169. RECOMMENDATION Move to award BID C of the overlay project in the amount of $78,298 to Buffalo Bituminous. E 63 • 4800 Olson Memorial Highway, Suite 202, Golden Valley, MN 55422 Telephone: 763,231.2555 Facsimile: 763.231.2561 plan ners@n cplanning.com MEMORANDUM TO: Larry Kruse — Albertville City Administrator FROM: Cassie Schumacher-Georgopoulos / Alan Brixius DATE: June 8, 2006 RE: Albertville — Granite Tops Industrial Sign Amendment NAC FILE: 163.06 — 06.14 BACKGROUND Granite -Tops LLC. has applied for a Zoning Text Amendment to allow a greater number of industrial signs on the building face. Granite -Tops is proposing to have four front wall signs displaying their business, a generic list of their products, the location of their commercial showroom, and a sign displaying the product SileStone. The four signs cover 783.75 sqft of the 9,300 sqft building front or 8.5% of the front wall (Exhibit B). The proposed signs are similar to those found on Granite -Tops building in Cold Spring, MN (Exhibit C). Albertville current industrial sign regulations do not permit the requested signs. Staff suggested that Granite -Tops pursue a sign code text amendment rather than a variance. Their request would not meet the criteria for variance. ISSUE ANALYSIS Attached for reference: Exhibit A Illustration of Current Zoning Standards for Industrial Signs Exhibit B Illustration of Proposed Signs for the Granite -Tops Albertville Building Exhibit C Photo of Existing Granite -Tops Cold Spring Building Signs 65 The City of Albertville's current Zoning Ordinance language for size of front wall O industrial signs is as follows (Exhibit A): Front Wall Signs: a. Not more than one sign shall be permitted on the front wall of any principal building. The total area of such sign shall not exceed two hundred (200) square feet. A 200 square foot sign is approximately two percent (2%) of the Granite -Tops building face. Granite -Tops does not feel that the 200 square feet provides adequate signage for their building front. The Granite -Tops proposed signage exceeds both the number and sign area standards of the industrial district. An amendment to accommodate greater signage is being requested. The following options are available for consideration of the Planning Commission and City Council. An option would be for language closer to the current commercial signs, but with stricter limits could be more appropriate for industrial buildings. The current commercial language is as follows: Front Wall Signs: a. Not more than two (2) signs shall be permitted on the front wall of any principal building. The total area of two (2) signs shall not exceed fifteen percent (15%) of the wall area. 0 The language for commercial signage would allow Granite -Tops two signs totaling approximately 1400 square feet in area. Allowing a large number of sign while restricting the area would be an appropriate change to the ordinance. We are suggesting the following language for consideration: Number of Signs. Currently one (1) sign is allowed on the front wall of an industrial building. Commercial buildings, which often have small fronts than industrial buildings, allow two (2) signs. Granite -Tops has proposed four (4) signs, one for building identification, one for generic products, one to illustrate the public entrance, and one that is product specific. Possible changes to the current language could be increasing to number of signs to two (2) as restricted by the commercial district or four (4) which is the number proposed by the applicant for front wall signs for industrial buildings. Sign Area. The current allotted wall area for signage in the industrial district is 200 square feet. As stated above, 200 square feet of the Granite -Tops building is approximately 2% of the front wall. Fifteen percent (15%) is allowed for commercial front walls in Albertville; however, fifteen percent is large amount of front wall space on industrial buildings due to their larger building fronts. Therefore, an area between five (5) and ten percent (10%) would be more proportional for industrial signs. The signs proposed by Granite -Tops would cover 8.5% of the front wall. • • To amend the industrial front wall sign ordinance is a policy decision made by the Planning Commission and City Council. Staff welcomes the discussion of the Planning Commission for comments and recommendations to amend the Zoning Ordinance to allow a greater amount of signage for industrial sites or to reject the request. Attached is a draft ordinance for discussion. PC. Bridget Miller, City Clerk Mike Couri, City Attorney Adam Nafstad, City Engineer Jon Sutherland, Building Official James Cameron Granite -Tops LLC 1480 Prairie Drive Cold Spring, MN 56320 • 67 Elj I El IE 0 0 EXHIBIT A 0 m • CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO.2006-xx AN ORDINANCE AMENDING SECTION 10-7-8 OF CHAPTER 7 RELATING TO PERMITTED BUSINESS SIGNS THE CITY COUNCIL OF THE CITY OF ALBERTVILLE, MINNESOTA ORDAINS: SECTION 1. Section 10-7-8 C. 4 relating to permitted business signs is hereby amended to read as follows: 4. Signage for single occupancy building containing Mixed Use Industrial/Retail: Industrial Buildings that contains a showroom for retail sales may apply for a conditional use permit for the following signage provided that: a. The building has received a CUP for retail sales in the I-1 District per Section 4600.4.13 of this Ordinance. . b. Not more than two (2) signs shall be permitted on the front wall of any principal building. The total area of two (2) signs shall not exceed ten percent (10%) of the wall area. C. The building front where the wall signs are installed have visual exposure to Interstate 94. d. Two additional wall signs may be permitted in lieu of the site having a freestanding ground sign with the total area for all front wall signs not exceeding ten percent (10%) of the wall area. This amendment shall be in full force and effective immediately following its passage and publication Approved by the City Council of the City of Albertville this 7th day of August 2006. Don Peterson, Mayor . Bridget Miller, City Clerk z • NORTHWEST ASSOCIATED CONSULTANTS, INC. 400 Olson Memorial Highway, Suite 202, Golden Valley, NAN 55422 Telephone: 763.231 .2555 Facsimile: 763.231.2561 planners@nacplanning.com I►Y,14LTA Lei A'_ 1 p 11 TO: Larry Kruse — City Administrator FROM: Charles Carlson / Al Brixius DATE: August 3, 2006 RE: Albertville St. Michael Clinic Revised Plans, CUP-PUD Amendment, Preliminary and Final Plat, Site and Building Plan Review, Revised Plans NAC FILE: 163.05 — 06.25 BACKGROUND HDR/Jordan Architects has applied for CUP-PUD Amendment, Preliminary and Final Plat, Site and Building Plan Review for a new medical clinic in Albertville. The Planning Commission discussed the project on July 25, 2006 and recommended approval of the project, subject to many conditions. The applicant submitted revised plans on August 2, 2006. The plans were submitted in response to conditions of approval incorporated within the planning report for the clinic project. The attached resolution includes the conditions of approval recommended by staff and the Planning Commission, as amended by the new plan submittal. REVISED PLANS Revised plans show a number of revisions to the site plan, primarily to improve site access and circulation. The access to the property is shifted west along 51 st Street to improve driveway circulation. Truck circulation is also shown on revised plans. The circulation patterns show that the site will serve delivery, garbage, and fire trucks. Pedestrian circulation is improved as well. The applicant added sidewalks in several areas to improve pedestrian circulation through the parking lots. The applicant also provided a trail connection. These new sidewalks are shaded in the revised plan. Though it is not shaded, the applicant will be responsible for the sidewalk on the north edge of the property. The applicant should submit revised drawings to reflect the updated site plan, and modify the landscape plan accordingly. RESOLUTION A resolution approving the project is attached, with conditions as established by the Planning Commission and as modified by staff upon review of revised plans. ATTACHMENTS: Revised Plans, dated August 2, 2006 Resolution 71 • NORTHWEST ASSOCIATED CONSULTANTS, INC. 4800 Olson Memorial Highway, Suite 202, Golden Valley, MN 55422 Telephone: 763.231.2555 Facsimile: 763.231.2561 planners@nacplanning.com REPORT TO PLANNING and ZONING COMMISSION TO: Larry Kruse FROM: Charles Carlson / Alan Brixius DATE: July 20, 2006 RE: Albertville St. Michael Clinic Revised Plans, CUP/PUD Amendment, Preliminary and Final Plat, Site and Building Plan Review NAC FILE: 163.06 — 06.25 BACKGROUND HDR/Jordan Architects and Albertville Medical Building LLC have applied to construct two medical office buildings on three existing parcels located at the corner of County Road 18 (Jason Avenue NE) and County Road 19 (Labeaux Avenue). Previous site and building plans were approved in May 2006 by the Albertville City Council for a three - building development including a medical office building. Approvals included preliminary and final plat, sign and building plan review, conditional use permit/planned unit development, and rezoning of Parcel C. Since that time, the tenant of one building withdrew from the development, and the applicant has revised plans to include only two buildings, including a larger clinic building. A PUD/CUP amendment is sought to continue the project with only two buildings. Current uses of the parcels include a County maintenance shed, a vacant lot, and a single family home. The three parcels will be platted into Lot 1, Lot 2, and Outlot A. The site is proposed to be built in a two phases, beginning with construction of the medical clinic and urgent care facility on Lot 1. A second story on the clinic and a building on Lot 2 will follow in future phases. Attached for Reference: Exhibit A Exhibit B Exhibit C Exhibit D • Exhibit E Exhibit F Land Title Survey Preliminary Plat Final Plat Site Plan Landscape Plan Grading and Erosion Control Plan 73 Exhibit G Utility Plan Is H Site Electrical Plan Exhibit I Photometric Plan Exhibit J Color Building/Sign Elevations (One Level) Exhibit K Color Building/Sign Elevations (Two Levels) Exhibit L Floor Plan Exhibit M Sign Plans Exhibit N Engineer's Comments ISSUE ANALYSIS Zoning. The Albertville City Council established B-2, Limited Business zoning for the entire site on May 15, 2006. The rezoning of the property occurred in conjunction with the original development proposal. The B-2 District allows for medical clinics and office buildings. The City Council granted a rezoning request to rezone Parcel C from R-1 A, Residential Low Density Single Family District to B-2 Zoning. No additional zoning changes have been requested with the proposed development. Preliminary Plat. (Exhibit B) The revised preliminary plat illustrates that the three existing parcels will be platted into two lots and one outlot. The previous approved preliminary plat included two lots and two outlots, with a future phase development to include a new building on Outlot B. This outlot has been eliminated and included with the clinic on Lot 1, to provide adequate parking for the larger proposed clinic. Outlot A will be a 5,736 square foot triangular parcel located west of the entrance drive off of County Road 18. In the future Outlot A should be incorporated into the adjacent property to the west when development occurs. Lot 1 is a 140,516 square foot parcel and Lot 2 is a 40,934 square foot parcel. Drainage and utility easement have been placed around the entire site (ten feet) and along interior property lines (five feet). These are indicated on plans submitted July 11, 2006. Additional drainage and utility easements are provided on lot 1, including a north - south easement and an east -west easement. Both of these easements are 30 to 35 feet in width. These easements cover sewer and water mains on the site. Access to site will be provided via an entrance from County Road 18. Internal access off of City roads will be provided by a full entrance at the corner of 51S' Street NE and Kyler Avenue NE. Previous plans indicated a right -in access from County Road 19, but this access is eliminated in the revised proposal. Access to the site from County Road 18 must be reviewed and approved by Wright County. With previous approvals, the County required a 70 foot right-of-way from the center line of County Road 18 and County Road 19. These dedications are shown on the preliminary plat. • 74 • Final Plat. (Exhibit C) The final plat shows drainage and utility easements of 10 feet around the perimeter of the site and five feet along interior property lines. The Final Plat meets city requirements. Park dedication fees were due upon approval of the original final plat on May 15. Provided that these fees in the amount of $21,375.00 were paid, no additional fees shall be required for the revised plans. The applicant will be required to enter into a revised development agreement with the city. Conditional Use Permit/Planned Unit Development (CUP/PUD). The site was approved with a CUP/PUD as an overlay of the B-2 District to allow a private street with cross easements for shared access within the site and shared parking. The applicant is seeking an amendment to the CUP/PUD to increase the area of building one and to eliminate the proposed third building from the development. The change is requested as a project partner withdrew from the development. Lot Requirements. The site will be platted into three parcels, including two lots and one outlots. Outlot A will be a triangular lot of 5,736 square feet and will remain vacant. Lot 1 is 140,516 square feet and Lot 2 is 40,934 square feet. Lots 1 and 2 with applicable building footprints are reviewed in the following table. The buildings meet all applicable setback requirements, and the lots comply with width and area requirements for the district. Setbacks Required Proposed Building 1 Lot 1 Lot Area 10,000 square feet 140,516 square feet Lot Width 100 feet 300 feet Front Yard South 35 feet 65 feet Side Yard West 10 feet 170 feet Side Yard East 20 feet 35 feet Rear Yard North 20 feet 46 feet Building 2 Lot 2 Lot Area 10,000 square feet 40,934 square feet Lot Width 100 feet 264 feet Front Yard South 35 feet 35 feet Side Yard East 10 feet 24 feet Side Yard West 10 feet 131 feet Rear Yard North 20 feet 74 feet Impervious Surface Coverage. The maximum impervious surface allowed in an R-2A Zoning District is 80 percent. In the case of this PUD, the total impervious surface may not exceed 149,749 square feet. A total of 37,437 square feet of green space is required. Exact calculations are not included in plans, but measurement of large green areas indicates at least 40,000 square feet of green space are available. Vegetated parking lot islands and other perimeter areas further increase this total. • 75 Architectural Standards. The applicant has submitted color elevations, one for the • single story Building 1 and one for the two-story Building 1. The building will be constructed as a single -story, and will later expand to two stories. Site and building plan review for the second story addition is included with the current submission. The building in both drawings is almost completely surfaced with faced brick. Details of the building include a rock faced concrete block base on three sides of the building, and strip of faced brick in a light tone above the windows. A large glass area with a metal atrium surrounds the primary entrance, establishing a legible entrance feature. This design is repeated, more subtly, on a secondary entrance on the south end of the building. A future second story will continue the same design features on a second floor. All proposed materials comply with the requirements of B-2 Architectural Standards. Building 2 (Exhibit D) should be composed of similar materials. Individual site and building plan review will be required for Building 2. Landscaping and Screening. (Exhibit E) The landscape plan shows a variety of the plants used in rows and in groupings across the site. The deciduous, evergreen, and ornamental trees are proposed at the proper size required by the Zoning Ordinance. Shrubs proposed for the site must be increased to a minimum height of 24 inches. Screening of parking lot areas from public streets is required. The Albertville Zoning Ordinance requires parking areas to be screened from public right-of-way to a height of three to four feet. Screening shall be required along County Road 18, a portion of County Road 19, and along 51 st Street NE. The screening and landscaping along 51 st St is particularly important, as landscaping is generally sparse in this area. The shrub species proposed for the site is Japanese Yew. The applicant must increase the planted size of these shrubs to a minimum of 24 inches, and select plants that will grow into a three to four foot tall, continuous screen of parking areas. Coordination between landscape and snow storage plans is necessary to ensure proper snow storage and plant survival. Some areas marked for snow storage on plans are not practical snow storage areas as they are planned for low-level vegetation. Vehicular Circulation and Cross Easements. Access to the site occurs at a full entry/ exit along County Road 18. A previously approved right -in entrance on County Road 19 was eliminated from the revised plans. Access is also provided by a driveway at the corner of 51 st Street NE and Kyler Avenue NE. Vehicular circulation does not appear to function as well as previous proposals. The site appears to be maximized with the larger clinic building, and the layout appears to occupy the site more tightly than the previous proposal. This tight layout may not allow effective delivery and trash removal services, awkward vehicle circulation, and poor pedestrian connectivity. The applicant should add turning radius information for 30 and 40 foot trucks, and should comment on anticipated delivery movements. Pedestrian circulation is described below. 0 iro • Parking. The master plan shows parking for the entire site. In total, Building 1 (as two stories) and Building 2 require 226 stalls. The applicants propose 226 stalls. Building 1 — (42,852 square feet - 10%)/200 + 3 spaces = 196 stalls, 194 provided Building 2 — (6,000 square feet - 10%)/200 + 3 spaces = 30 stalls, 32 provided Total = 226 stalls required, 226 stalls provided Total parking for Buildings 1 and 2, will require 226 stalls. Parking around the buildings includes 226 stalls. The division of parking between the two lots is appropriate for each use, and of adequate supply. Parking on revised plans was moved to the west side of the clinic building. No parking will occur on the east side of Building 1. Pedestrian Circulation. A proposed sidewalk is shown on the site plan on the northeast corner of the site, but the sidewalk is located off the property line with no easements identified. This sidewalk must be relocated onto the property. It should also extend to connect to the trail along County Road 19. An additional sidewalk should connect to the north -south sidewalk in front of Building 1. This could be accomplished by adding a 12 foot extension south from the existing sidewalk, and installing any appropriate ADA accessibility features as needed. The previously approved site plan incorporated a number of pedestrian features to provide a campus -like setting, with pedestrian connections between buildings, safe and • direct walkways, and pedestrian friendly parking layout. The revised plans eliminated most of these features. Pedestrians between buildings must walk between vehicles or through a circuitous driveway loop in mixed traffic. The reason for this change relates to the large size of the proposed clinic building. The large building demands high parking volumes. Combined with the re -oriented building and one-sided parking of the revised plans, the pedestrian circulation pattern does not work well. The site plan should be revised to provide a reasonable pedestrian connection between buildings adjoining sidewalks and trails. Drainage, Grading and Utilities. Drainage, grading, and utility plan are subject to review and comment of the City Engineer (Exhibit N). Lighting. (Exhibits H, 1) Seventeen lights are proposed for the site. These proposed lights will be 22 feet tall with 90 degree cutoffs. The light fixtures use multiple, lower - height, lower wattage bulbs (250W) to create uniform and even light levels. The Albertville Zoning Ordinance regulates light trespass. A maximum of 1.0 footcandles of light trespass is allowed at the right-of-way line, and a maximum of 0.4 footcandles is allowed on adjacent residential property. The foot candles shown on the photometric plan along the right-of-way lines and interior property lines exceed the maximum allowed by the Zoning Ordinance in several locations. is neighboring the lighting along the west property line allows excessive light trespass onto neighboring residential property. The lighting proposed for this area must be shielded to 77 allow no more than 0.4 footcandles onto the residential property. In addition, no light • sources should be directly visible from this property. Second, the north and south property lines have more than one footcandle of light, which is not allowed per code requirements. These fixtures must be adequately screened or blocked to reduce light trespass below one footcandle. Signage. (Exhibits J, M) The comprehensive sign plan is identical to the plan approved for the site in May 2006. The key difference between the past approval and current plan is the elimination of future building three on the site, and the eliminated County Road 19 entrance. The City Council and Planning Commission should discuss whether the signage should be reduced. Four ground signs and two building signs are proposed for the entire site. Three of the four ground signs are located on Lot 1 and the other is on Lot 2. Two of the four signs are located at the entry drives, one is located on County Road 19, and the other is located at the corner of County Road 18 and County Road 19. The Zoning Ordinance for business signs permits one freestanding sign not to exceed 60 square feet per 100 feet of frontage width. In past CUP/PUD approvals of comprehensive sign plans, including the sign plan for the approved three -building site plan, an extra freestanding sign has been allowed; therefore the Council may allow the extra free standing sign on Lot 1 under the conditions of the sign details. Still, the original proposal had an entrance at the • proposed sign location adjacent to County Road 19. If the sign is not appropriate without the entrance, the city may require the applicant to remove this sign. However, removing this sign eliminates all ground signage visible to southbound County Road 19 traffic. Sign details have been submitted for three of the four signs (Exhibit M). Corner of County Road 19 and County Road 18 Sign — Sign area 112 square feet for single face sign panel. The sign proposed for the corner of County Road 19 and County Road 18 is a large monument sign, identical to previously approved signage. Entrance from County Road 18 and adjacent to County Road 19 Signs — Sign area 53 square feet per side of sign. The sign proposed for the entrance from County Road 19 sign is adequately sized for the site and will be located. Internal Directional Monument — Sign Area 27 square feet per side of sign. The Internal Directional Monument will be located at the entrance at the corner of 51St Street NE and Kyler Avenue NE. The materials of the ground sign match those used in the building and will fit nicely with the site. Further details of the building signs should be submitted to illustrate dimensions • of the signs and will be reviewed as a separate sign permit. Under the PUD, building sign not exceeding 15 percent of the building face will be allowed on the front and rear of the buildings, or the side in lieu of a rear building sign. Trash Enclosures. Each building provides its own trash enclosure and adequate access to the enclosure. The color elevations show the walls of the trash enclosure, which match building materials. The gate for the trash enclosure is of wood construction on a tubular steel frame. The gate and enclosure are suitable for the site. The applicant should supply truck turning radius information to show that proposed dumpster enclosures will be accessible to garbage hauling vehicles. Snow Storage. Snow storage is labeled on revised site plan. Snow storage and landscape plans must be coordinated to ensure survivability of landscaping and adequate snow storage. The site appears to lack adequate space for extensive snow storage, and required parking stalls may not be used to store snow. As such, the development agreement should contain a provision that requires excess snow to be transported off site as necessary. The extensive parking areas and small yards will require careful management of snow storage within the development. RECOMMENDATION Preliminary Plat • Based upon the review of the submitted plans, staff recommends approval of the St. Michael -Albertville Medical Clinic preliminary plat with the following conditions: The applicant shall seek approval from Wright County for the access point on County Road 18. The plans and plat shall be submitted to the Wright County Highway Department for review and approval. An entrance permit and/or work within the right-of-way permit will be required. 2. Individual site and building plan review shall be required for Building 2. 3. The developer will be responsible for all construction permits required for the improvements (sanitary, water, storm water, etc.) 4. Separate cross easements shall be required over the access roads off of CSAH 18 to allow shared access to the newly created lots and property to the west. These easements shall be submitted to the city for approval by the city attorney. 5. All comments and conditions from the City Engineer and Building Official. Final Plat Staff recommends approval of the final plat for the St. Michael -Albertville Medical Clinic • subject to the following conditions: 79 1. The applicant shall comply with preliminary plat conditions. • 2. Park dedication fees were paid with past approvals. No additional fees shall be required with the revised plans. 3. Separate cross access easements shall be recorded with the final plat. 4. The applicant shall enter to a revised development agreement with the City. Conditional Use Permit/Planned Unit Development Staff recommends approval of the conditional use permit/planned unit development for the St. Michael -Albertville Medical Clinic subject to the following conditions: 1. Parking lots visible from public right-of-way shall be screened to a height of three to four feet. This includes parking along County Road 18, a portion of County Road 19, and 51 st Street NE. 2. All shrubs planted on the site shall have a minimum height of 24 inches. 3. Turning radii for all expected delivery and refuse hauling trucks shall be submitted on a site plan for staff review. The turning radii shall provide a minimum 33 foot inside radius and 48 foot outside radius for all truck circulation patterns on the site. A 20 foot width shall be provided for all fire lanes. 4. The north sidewalk along 51St Street NE between the subject site and Shoppes at Prairie Run shall be relocated onto the clinic property and connected southward to provide access to the sidewalk in front of building one. 5. The applicant shall submit a revised site plan that provides a reasonable pedestrian connection between the proposed buildings and adjoining sidewalks and trails. 6. All sidewalks and pedestrian ramps shall meet the requirements of ADA and MnDOT (truncated domes). 7. A street signage and striping (traffic, no parking, etc.) plan shall be submitted for review. Signing and striping of the access roads and parking lots shall be in accordance with the latest edition of the MMUTCD and as required by fire regulations. 8. Building signs shall be approved as a separate permit requiring details of the building signs showing dimensions. Building signs shall not exceed 15 percent of the building face, and shall be placed only on the front and rear of the building. One sign on the front and one sign on the rear of the building is allowed. • W • 9. Additional ground signage conditions from Planning Commission/Council discussion of proposed signage, if applicable. Signage shall include four signs. One sign is a 112 square foot sign at the corner of County Road 18 and County Road 19. Two signs with 53 square feet of sign area shall be placed along County Road 18 and on County Road 19. A fourth sign is an internal direction monument sign, which shall not exceed 27 square feet of sign area and will be placed on the property near Kyler Avenue and 51 st Street. All signage shall meet applicable building setbacks. 10. Lighting along the west, north, and south property lines shall be shielded or otherwise altered to allow no more than 0.4 footcandle light trespass on residential property, and no more than 1 footcandle trespass on right-of-way. 11. Snow storage shall be revised to be compatible with the landscape plan. Snow must be removed from the site as needed to maintain required parking spaces. 12. If the building will have sprinkling type fire protection, separate water shutoffs and services for the fire line and for the domestic line will be required, as well as easement over services and their shutoffs. 13. Hydrant spacing and water supply shall meet the requirements of the latest version of the Minnesota State Fire Code and that of Albertville's Fire Chief. 14. The applicant shall submit revised stormwater calculations to be reviewed and approved by the City Engineer. 15. All comments and conditions from the City Engineer and Building Official. Pc. Mike Couri Adam Nafstad Jon Sutherland Applicant: Don Rolf Jordan Architects One West Water Street, Suite 280, St Paul MN 55107 Owners: Robert Jossart Albertville Medical Building LLC 5455 Highway 169 Plymouth, MN 55442 Bob and Christine Heuring 5020 Jason Avenue NE Albertville, MN 55301 • Eileen Heuring 5010 Jason Avenue NE Albertville, MN 55301 ME H W � � H w w N a a IIII � a � z .g x . W � s z �� S� b H Z �W >' o uVi z 193 i I / J sw \ `-A If IF r 1 � yy�,� Xo qK 0 F[ Q\ f 4"T sy 01 4 Ores cq / ✓ I o ok a \ N \y IOI 'F OL 9M1 ,� •y �\ h� re •pt� A I SLLII I, �. [-- //\\mot\ �/ V a- _ _ _ _ _ _M_Bf.9S.00N_ _4 J , .M10 L 1 J � , ��---------------- LLJ 101 yI i -- - PC'1 OI LLJ I 21 I m � I qK I \ s I �- •-- I 1Z \ lot i - LL_ ` VI 0 W O N H Q ° ArZ A 'C C r OC Z K °CIzC Z m z < aA z < � »_D �a»ua c A A ° c A-4 cc a 1'=3D Z 3 mO a O O 3 7 m 3.i a. 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EF 2 'En F 7 1 z Zrn D I z z z z z Ti 3 3 3 3 13 . . . . . . n Eo } |\ / � (; m \ ) ( |� )§ TTI m x --4 mm r— 30 ni 0 < > m i co 0 c F z Wo a Z m -n in- m > t m r- m z 0 r < (-)0( F r- r- -n r- r- 1T, z 2 m 0 0 0 -D NOA 073i§ 3 A D c < z A m �9 0 0nr 3� 3 Z / 0 rU'm ZN N N � N B N Z J ^ Z Z fn N n n W 0m� mAn n NZ D 71� O N o l Ek�sr SNFD 0 I I I 811 I i I I I I I I I I I I >p- - 1 6 40* K m rm o z z �' o a r- m Nm 0 0 Z 0 e N NlN NZJ O NLl _L,p _ N mIPN -ZA Tm 0m ci n 'n Z z D D � 0 N 0 .ZA1 �<OD @30 �0 O Z«iz < Anm r �rnr m � m - N z OZ 0 mtnm �� L, N Z j z Z Q m mU3 CP ^ pmM 03 0 m cni m O tiN, � � z D N m I I I I N N N Om D Z D � crn O m - 0 �,1019prp69 O nr(lAtn -� m m E� D 3 A z DrD m9cZ Om m m = A0 0-- �� m MD 'fizm m D N 9 o ElCOUNTY ROAD n T O 11 @ 3 p zN r n O ZAm u60 Dr_U'z m mrN 0 r Nm ZN Nz� �zA m n G,y1 ZOACm � Bm � O �� N D 0 0 0 � !j ;\ . \ > ( ( \.�.... /. ) � _ --- $ 333333 \ - D I s ƒ --- ~ } @ , @I§ & 9 � i � C / z = -n zm mm=m \\ \k§\ ^ m /00 > 2 2 —1 | � I • CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO.2006-xx RESOLUTION APPROVING A SITE AND BUILDING PLAN REVIEW, PRELIMINARY AND FINAL PLAT, AND A CONDITIONAL USE PERMIT/PLANNED UNIT DEVELOPMENT (CUP/PUD) AMENDMENT FOR ALBERTVILLE ST. MICHAEL CLINIC LOCATED AT COUNTY ROAD 19 AND COUNTY ROAD 18 IN THE CITY OF ALBERTVILLE WHEREAS, HDR/Jordan Architects and Albertville Medical Building LLC has submitted an application for site and building plan review, preliminary and final plat, and conditional use permit/planned unit development amendment to construct a new medical clinic and plat a future office development on the site legally described as follows; and Lot 1, Block 1, Truck Station Two, Wright County, MN Outlot C, Prairie Run, Wright County, MN That part of Government Lot 1 of Section 2, Township 120, Range 24, Wright County, Minnesota, described as follows: Commencing at the southeast corner of said Government Lot l; thence West, assumed bearing, along the south line thereof, 558 feet to the point of beginning; thence North 254.20 feet, thence West 80 feet; thence South 254.3 feet to said south line; thence East to the point of beginning. WHEREAS, City staff has reviewed submitted plans and prepared a planning report dated July 20, 2006; and WHEREAS, the Albertville Planning Commission met and held a public hearing on July 25, 2006 to consider the Albertville St. Michael Clinic application; and WHEREAS, upon review of the staff reports and hearing public testimony, the Planning Commission closed the public hearing and recommended that the City Council approve the Conditional Use Permit/Planned Unit Development amendment, preliminary plat, final plat, and site and building plan review, subject to the conditions outlined in the July 20, 2006 Planning Report and Engineer reports; and WHEREAS, the applicant submitted revised plans on August 2, 2006 to meet conditions set forth by staff and the Planning Commission, which were reviewed by staff; and WHEREAS, the Albertville City Council has received the Albertville St. Michael Clinic . application, staff review documents, and the Planning Commission Recommendation, and agrees with the findings and recommendation of the Planning Commission and revised plans as received August 2, 2006. NOW, THEREFORE, BE IT RESOLVED, that the City Council of Albertville, Minnesota • hereby approves the site and building plan review, preliminary and final plat, and amendment to conditional use permit/planned unit development for Albertville St. Michael Clinic, subject to the attached findings of fact and decisions. Findings of Fact: Based on review of the evidence received, the City Council now makes the following finding of fact and decision: J. The site is described Lot 1, Block 1, Truck Station Two, Wright County, MN and as Outlot C, Prairie Run, Wright County, MN and as that part of Government Lot 1 of Section 2, Township 120, Range 24, Wright County, Minnesota, described as follows: Commencing at the southeast corner of said Government Lot 1; thence West, assumed bearing, along the south line thereof, 558 feet to the point of beginning; thence North 254.20 feet, thence West 80 feet; thence South 254.3 feet to said south line; thence East to the point of beginning. K. The planning report dated July 20, 2006 from Northwest Associated Consultants is incorporated herein, with amendments based on revised plans dated August 2, 2006. L. The proposed use can be accommodated with existing public services and will not overburden the city's service capacity. M. Traffic generated by the proposed use is within the capabilities of streets serving the property as proposed N. The requirements of the Albertville Zoning Ordinance have been reviewed in relation to the proposed use. O. The proposed actions have been considered in relation to the specific policies and provisions of and have been found to be consistent with the Comprehensive Plan. P. The proposed use will be compatible with present and future land uses of the area. Q. The proposed use conforms to the applicable Zoning Ordinance performance standards and approved planned unit development standards. R. The proposed use will not tend to or actually depreciate the area in which it is proposed. Decision: Based on the foregoing information and applicable ordinances, the City Council APPROVES the site and building plan review, preliminary plat, final plat, and conditional use permit/ planned unit development amendment based on the original plans received July 30, 2006 and revised plans dated August 2, 2006, subject to the following conditions: Preliminary Plat 1. The applicant shall seek approval from Wright County for the access point on CR18. The plans and plat shall be submitted to the Wright County Highway Department for review and approval. An entrance permit and/or work within the right-of-way permit will be required. 2. Individual site and building plan review shall be required for Building 2. • 3. The Developer will be responsible for all construction permits required for the proposed 0 development and related improvements. 4. Separate cross easements shall be required over the access roads off of CSAH 18 to allow shared access to the newly created lots and property to the west. These easements shall be submitted to the city for approval by the city attorney. Final Plat 5. The Applicant shall comply with preliminary plat conditions. 6. Park Dedication fees were paid with past approvals. No additional fees shall be required with the revised plans. 7. Separate cross access easements shall be recorded with the final plat. The applicant shall enter to a revised Development Agreement with the City. Conditional Use Permit/Planned Unit Development 1. Parking lots visible from public Right -of -Way shall be screened to a height of three to four feet. This includes parking along CR 18, a portion of CR 19, and 51 st St NE. 0 2. All shrubs planted on the site shall have a minimum height of 24 inches. 6. Sidewalks shall be installed per plans submitted August 2, 2006. All sidewalks and pedestrian ramps shall meet the requirements of ADA and MnDOT. 7. A street signage and striping (traffic, no parking, etc.) plan shall be submitted for review. Signing and striping of the access roads and parking lots shall be in accordance with the latest edition of the MMUTCD and as required by fire regulations. Building signs shall be approved as a separate permit requiring details of the building signs showing dimensions. Building signs shall not exceed 15 percent of the building face, and shall be placed only on the front and rear of the building. One sign on the front and one sign on the rear of the building is allowed. 9. Additional ground signage conditions from Planning Commission/Council discussion of proposed signage, if applicable. Signage shall include four signs. One sign is a 112 square foot sign at the corner of CR 18 and CR 19. Two signs with 53 square feet of sign area shall be placed along CR 18 and on CR 19. A fourth sign is an internal direction monument sign, which shall not exceed 27 square feet of sign area and will be placed on the property near Kyler Ave and 51 st St. All signage shall meet applicable building setbacks. 0 10. Lighting along the west, north, and south property lines shall be shielded or otherwise • altered to allow no more than 0.4 footcandle light trespass on residential property, and no more than 1 footcandle trespass on Right -of -Way. 11. Snow storage shall be revised to be compatible with the landscape plan. Snow must be removed from the site as needed to maintain required parking spaces. 12. If the building will have sprinkling type fire protection, separate water shutoffs and services for the fire line and for the domestic line will be required, as well as easement over services and their shutoffs. 13. Hydrant spacing and water supply shall meet the requirements of the latest version of the Minnesota State Fire Code and that of Albertville's Fire Chief. 14. The applicant shall submit revised stormwater calculations to be reviewed and approved by the City Engineer. 15. The developer shall submit a copy of storm water permit application (including SWPPP) and permit to the city. 16. Plans shall include the design and details, as required by Wright County, for the turn lane of off CSAH 18. 17. The primary driveway on the west and north side of the property shall be increased to a • width of 28 feet, back of curb to back of curb. 18. The applicant shall submit revised drawings to reflect the updated site plan. Adopted by the Albertville City Council this 7th Day of August 2006. • BO L_TON & M r-= N K , I NC_ Consulting Engineers & Surveyors 2638 Shadow Lane, Suite 200 • Chaska, MN 55318 Phone (952) 448-8838 • FAX (952) 448-8805 MEMORANDUM Date: August 1, 2006 To: The Honorable Mayor and City Council Cc: Larry Kruse, Albertville City Administrator From: Adam Nafstad, P.E., Assistant City Engineer Subject: Project Status Update The following is a brief project status update: 1. 52°d Street Improvements To date, the project has been awarded, the contract has been signed and notice to . proceed has been issued. A pre -construction meeting was held on Friday the 28th. Survey, erosion control installation and mass grading have been scheduled to begin the week of August 7th 2. Hunter's Pass Estates All improvements, with the exception of fencing and minor punchlist items, have been completed. 3. Towne Lakes 5th Addition All improvements, with the exception of trail construction and punchlist items, have been completed. 4. Towne Lakes 6th Addition Grading throughout the addition has resumed and construction of Lancaster Way has begun. The curb and gutter has been placed and preparation for the first lift of bituminous continues. It is expected that the roadway will be paved in the next few weeks. 5. 57th Street Sidewalk Needed construction easements have been requested from the residents adjacent to the project, quotes from contractors are being solicited, and possible pole relocation is being discussed with Xcel Energy. Staff will present plans, specifications, and quotes for Council review and acceptance once easements and quotes have been secured. 6. LaBeaux Station M. Currently, the majority of the utility installation has been completed on both the Long Lake State Bank and LaBeaux Station Plats. Construction of the roadways, including 40 the southern portion of Lachman Avenue, will begin in the next few weeks. 7. Flood Mitigation Feasibility Study The study is currently being revised to reflect the very recent changes made to the new elementary school site. The study identifies a potential phase 1 improvement, with an estimated cost of approximately $1,000,000, which can be incorporated into the design of the high school site. The School District is planning on bidding the high school project in January of 2007. 8. CSAH 19 and CSAH 18 Improvement The County has completed preliminary design of the project and is moving towards right-of-way acquisition and final design. Once preliminary cost estimates have been prepared, it is recommended that Council and staff discuss project specifics and City options at a City workshop. 9. 2006 Overlay Project To date, Buffalo Bituminous has been notified of the award, contracts are being finalized, and a pre -construction meeting has been scheduled for the week of August 7th. Work is expected to begin the week of August 14th I will be at your August 7th City Council meeting to answer any questions concerning these • and/or other projects taking place in town. 0 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO.2006-xx DECLARING THE OFFICIAL INTENT OF THE CITY OF ALBERTVILLE TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not be deemed spent unless certain requirements are met; and WHEREAS, the City expects to incur certain expenditures which may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of a bond; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Albertville (the "City") as follows: 1. The City reasonably intends to make expenditures for the project described in Exhibit A (the "Project"), and reasonably intends to reimburse itself for such expenditures from the proceeds of debt to be issued by the City in the maximum principal amount described in Exhibit A. 2. The City Clerk is authorized to designate appropriate additions to Exhibit A in circumstances where time is of the essence, and any such designation shall be reported to the City Council at the earliest practicable date and shall be filed with the official books and records of the City as provided in Section 3. This resolution is intended to constitute a declaration of official intent for purposes of Treas. Reg. § 1.150-2 and any successor law, regulation, or ruling. Adopted by the City Council of the City of Albertville this 7th day of August 2006. Donald Peterson, Mayor • Bridget Miller, City Clerk :• EXHIBIT A TO OFFICIAL INTENT RESOLUTION ADOPTED AUGUST 7, 2006 Date of Maximum Principal Declaration Description of Project Amount of Debt for Project August 7, 2006 52" d Street Utility and Road Improvement Project. $ • • •ert1le l imd To&" livinw ft aty Ufa. MEMORANDUM Date: August 3, 2006 To: City Council From: Larry R. Kruse, City Administrator Re: General Update CITY HALL CONSTRUCTION • HANDICAPPED ACCESS TO OLD CITY HALL: A mathematical error has resulted in the need to remove some curb in front of the existing City Hall to meet ADA requirements. The Architect has assumed responsibility for the error and it will be reconstructed to ADA standards. • ELECTRIC POWER LINES ON MAIN: The conduits have been installed to accommodate the future relocation of the Xcel's power lines. • AUDIO VISUAL AND TECHNICAL EQUIPMENT: I continue to work with Will Craig on the bid package for the AV equipment. • FURNITURE AND FIXTURES: Four bids have been received and staff is evaluating them and will bring a recommendation back to the Council in mid August. • SECURITY CAMERAS: Bonestroo will be presenting a proposal for four security cameras. This will be brought to the Council in early September. • RAILROAD LAND PURCHASE AGREEMENT: The agreement has been signed and BMI has been authorized to proceed with the ALTA survey. I-94 PROJECT IMPLEMENTATION TASK FORCE MEETING I believe the I-94 meeting went very well. The meeting started off a little challenging, but the group seemed to come to an agreement and the understanding of the importance of working together. A draft of the meeting is enclosed. Since that time Albertville, St. Michael, Ostego and Wright County staff has met and began to layout a memorandum of understanding on how the group will function and operate. The staffs will meet again on Monday, August 141h to refine a recommendation to the full board in September. Wednesdays, August 2nd Environmental Assessment public hearing was very uneventful with • one resident attending. August 16`h is the deadline for public comments. 91 AIbertville Small Town Uving. flag City Ufa. TO: City Council FROM: Larry R. Kruse DATE: July 26, 2006 RE: City Hall Phone System REQUEST FOR COUNCIL ACTION BACKGROUND The City contracted with Elert and Associates to develop specifications, bidding and facilitate selection of a phone system for the new City Hall. Attached is a recommendation from Elert on the new phone system recommending acceptance of Cable Services low bid. Staff has worked closely with Pat Daniels to identify the City's phone needs and has completed hands on demonstrations of the three systems for ease of operation and maintenance. The City will still need to install a fibre connection to the fire hall to complete system connectivity allowing voice and data transmission between the two facilities. This line will eliminate the additional internet service at the fire hall. Cable installation will be done by a separate proposal. Cable Services also does this service and we will seek a quote from them. It is Mr. Daniels and my recommendation to accept the low quote of Cable Services of Maple Grove in the amount of $32,841.90. The 3Com System provides the City with all the functionality that we will need in the near future. Our initial budget for the phone system was in the $40,000 but less than $50,000 range. RECOMMENDATION Move to accept the low quote from Cable Services in the amount of $32,841.90. • 93 • City of Albertville Telephone System Recommendation July 25, 2006 Prepared by: Pat Daniels ELERT & ASSOCIATES (651)430-2772 www.elert.com 95 Summary • Elert & Associates (E&A) was retained by the City of Albertville to assist in the procurement of a new voice telecommunications system. After a review of the City's needs, an RFP was developed and distributed to multiple vendors. The base system configuration allowed vendors to propose IP or IP/Hybrid telephone systems with voice mail. We also required the vendors to provide the local area network (LAN) and wide area network (WAN) electronics for the data network and the IP telephones if proposed. The City received proposals from the six vendors listed below: 1. Black Box Nortel BCM 2. Cable Services Corporation — 3COM NBX 3. Compunet International Inc.Zultys —MX250 4. Enterprise Systems Group — ShoreTel 5. Eschelon Telecom Inc— InterTel 5000 6. Marco — Interte15000 All proposals were evaluated and scored based upon the criteria outlined in the RFP. Our initial evaluation included the following components: 1. Base Telephone System 2. Voice Mail 3. Data Electronics 4. Unified Messaging 5. Maintenance The companies that scored the highest for this configuration were Cable Services Corporation and Eschelon Telecom Inc. A committee of City employees and a representative from Elert & Associates received presentations from the two vendors. Based on the presentations and system demonstrations, the Committee determined that the systems proposed by Cable Service Corporation would meet the City's current and future needs. The Committee was impressed with inherent feature functionality of the system and the ease of operation. The City was also impressed with Cable Services Corporation's offer of a 60-day money back satisfaction guarantee. Elert & Associates recommends that the City enter into contract negotiations with Cable Services Corporation for the purchases of its proposed solution including all voice and data electronics at an estimated cost of $32,900.00. • w, • Bid Results Upfront Costs (Includes telephone sstems, voice mail, data electronics and unified messaging) Company Upfront Costs Cabling Services - 3Com NBX V3000 $32,841.90 Eschelon -InterTel CS5200-Netvanta Switches $35,058.45 Enterprise Systems Group - ShoreTel & HP $36,069.60 Marco - InterTel CS5200 $38,365.95 Black Box - Nortel BCM $38,827.95 Com uNET International - Zult s MX250 $51,263.10 • Five -Year - Cash Flow (Includes telephone system, voice mail, data electronics, and system maintenance (ex luding telephones) between the hours of 8 AM and 5 PM five days per week) Company Five Year Cabling Services - 3Com NBX V3000 $33,256.28 Eschelon -InterTel CS5200-Netvanta Switches $40,210.21 Black Box - Nortel BCM $40,485.76 Enterprise Systems Group - ShoreTel & HP $43,876.76 Marco - InterTel CS5200 $49,072.77 Com uNET International - Zult s MX250 $66,585.65 * All numbers include 5% contingency. • 97 Summary of Proposals • Black Box proposed a Nortel BCM equipped with a CallPilot voicemail and VoIP telephones for all locations. They did not provide any details on the proposed data electronics. Cable Service Corporation proposed a 3COM NBX V3000 equipped with voice mail, VoIP telephones for all locations and 3COM data electronics. Compunet International proposed Zultys MX250 VoIP with an embedded voice mail system, VoIP telephones for all locations and Enterasys data electronics. Enterprise Systems Group proposed a ShoreTel solution utilizing the Shore Gear Voice Switch equipped with voice mail, VoIP telephones for all locations, personal call manager for all users, and HP Procurve data electronics. Eschelon Telecom Inc proposed an Intertel 5000 equipped with their embedded voice mail, VoIP telephones for all locations, and NetVanta data electronics. Marco proposed a Hybrid InterTel 5000 PBX with voice mail and includes standard digital telephones at City Hall, VoIP telephones at the Fire Station, and Micron data electronics. Notes COST Cable Services Corporation with its 3COM solution provided the lowest qualified upfront and five-year cost. TECHNOLOGY All of the proposed solutions met the City's current and future needs and provided a full set of features functionality. However, the 3COM solution proposed by Cable Services included unified messaging, automatic call distribution, and call tracking software at no additional cost. PROPOSER/SUPPORT Cable Services Corporation has been in business for fifteen years and has been installing the 3COM NBX system for seven years. They also have four technicians certified on the proposed system. The City of Ham Lake was contacted and highly recommended the system and Cable Services Corporation. s N • Toll Fraud Note: None of the vendors has provided any Toll Fraud detection software or hardware. Since there is no foolproof configuration, the vendors and Elert & Associates do not guarantee to prevent Toll Fraud. There are measures within the PBX that the vendors will assist you in watching, but again this is not foolproof. Any of the vendors can assist you in purchasing advanced detection devices and some of the vendors have monthly plans that can monitor for any toll problems. To provide better detection, we recommend that you consider purchasing one or more of the following items: 1. Call accounting software with Toll Fraud detection. 2. Services from specialized companies that will monitor your system and alert you of potential hackers. 3. Special "Toll Fraud Insurance". Recommendation Elert & Associates recommends that the City enter into contract negotiations with Cable Services Corporation for the purchase of its proposed solution including all voice and data electronics at an estimated cost of $32,900.00. • 0 Third Draft, August 4, 2006 • CONTRACT FOR PRIVATE REDEVELOPMENT By and Between CITY OF ALBERTVILLE and SCHULTZ & SCHUPP LLC Dated as of: , 2006 This document was drafted by: KENNEDY & GRAVEN, Chartered 470 US Bank Plaza Minneapolis, Minnesota 55402 (612) 337-9300 http://www.kennedy-graven.com 2941780 MM AL141-43 I TABLE OF CONTENTS Page PREAMBLE...................................................................................................................................I ARTICLE I Definitions Section1.1. Definitions................................................................................................................2 ARTICLE II Representations and Warranties Section 2.1. Representations by the City.....................................................................................6 Section 2.2. Representations and Warranties by the Redeveloper...............................................6 ARTICLE III Public Redevelopment Costs Section 3.1. Status of Redevelopment Property...........................................................................8 Section 3.2. Environmental Conditions.......................................................................................8 Section 3.3. Public Redevelopment Costs...................................................................................8 Section3.4. Issuance of Note.......................................................................................................8 Section 3.5. Business Subsidy.....................................................................................................9 Section 3.6. Payment of Administrative Costs..........................................................................10 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Improvements..............................................................................I I Section 4.2. Construction Plans.................................................................................................I I Section 4.3. Commencement and Completion of Construction.................................................I I Section 4.4. Certificate of Completion......................................................................................12 Section4.5. Records..................................................................................................................12 ARTICLE V Insurance Section5.1. Insurance................................................................................................................1) Section5.2. Subordination.........................................................................................................15 ARTICLE VI Tax Increment; Taxes Section 6.1. Right to Collect Delinquent Taxes.........................................................................16 Section 6.2. Review of Taxes....................................................................................................16 01 • • 2941780 MNI AL141-43 1 Section 6.3. Use of Tax Increment.............................................................................................16 ARTICLE VII Financing Section 7.1. Redeveloper Financing..........................................................................................17 Section7.2. Subordination.........................................................................................................17 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development.........................................................................18 Section 8.2. Prohibition Against Redeveloper's Transfer of Property and Assignmentof Agreement.....................................................................................18 Section 8.3. Release and Indemnification Covenants................................................................19 ARTICLE IX Events of Default Section 9.1. Events of Default Defined.....................................................................................21 Section 9.2. Remedies on Default..............................................................................................21 Section 9.3. No Remedy Exclusive............................................................................................22 Section 9.4. No Additional Waiver Implied by One Waiver....................................................22 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; City Representatives Not Individually Liable .....................23 Section 10.2. Equal Employment Opportunity............................................................................23 Section 10.3. Restrictions on Use................................................................................................23 Section 10.4. Titles of Articles and Sections...............................................................................23 Section 10.5. Notices and Demands............................................................................................23 Section10.6. Counterparts...........................................................................................................24 Section10.7. Amendment...........................................................................................................24 Section10.8. Minnesota Law.......................................................................................................24 Section10.9. City Approvals.......................................................................................................24 Section 10.10. Term of this Agreement.........................................................................................24 Section 10.11. Effect of Termination or Assignment....................................................................24 TESTIMONIUM......................................................................................................................... S-1 SIGNATURES............................................................................................................................ S-1 SCHEDULE A Redevelopment Property SCHEDULE B Authorizing Resolution SCHEDULE C Certificate of Completion 2941780 MNI AL141-43 11 CONTRACT FOR PRIVATE REDEVELOPMENT (a THIS AGREEMENT, made as of the day of August, 2006, by and between the City of Albertville (the "City"), a public body corporate and politic under the laws of Minnesota, and Schultz & Schupp LLC (the "Redeveloper"), a Minnesota limited liability company. WITNESSETH: WHEREAS, the City has undertaken a program to promote the development and redevelopment of land which is underutilized within the City, and in this connection created Development Project No. 1 (hereinafter referred to as the "Project") in an area (hereinafter referred to as the "Project Area") located in the City pursuant to Minnesota Statutes, Sections 469.124 to 469.134 (the "City Development District Act"); and WHEREAS, pursuant to the Act, the City is authorized to undertake certain activities to prepare such real property for development and redevelopment by private enterprise; and WHEREAS, the Redeveloper has acquired certain property described in Schedule A (the "Redevelopment Property") located in the Project Area, and proposes to redevelop that property for certain commercial improvements; and WHEREAS, the City believes that the development of the Redevelopment Property pursuant to and in general fulfillment of this Agreement, is in the vital and best interests of the City, will promote the health, safety, morals, and welfare of its residents, and will be in accord with the public purposes and provisions of the applicable State and local laws and requirements under which the Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: (The remainder of this page is intentionally left blank.) • 2941780 MNI ALI41-43 • ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Affiliate" means with respect to the Redeveloper (a) any corporation, partnership, limited liability company or other business entity or person controlling, controlled by or under common control with the Redeveloper, and (b) any successor to such party by merger, acquisition, reorganization or similar transaction involving all or substantially all of the assets of such party (or such Affiliate). For the purpose hereof the words "controlling", "controlled by" and "under common control with" shall mean, with respect to any corporation, partnership, limited liability company or other business entity, the ownership of fifty percent or more of the voting interests in such entity possession, directly or indirectly, of the power to direct or cause the direction of management policies of such entity, whether ownership of voting securities or by contract or otherwise. "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Available Tax Increment" means, on each Payment Date, 90% of the Net Tax Increment derived from the Redevelopment Property, and received by the City in the six months preceding the Payment Date. "Authorizing Resolution" means the resolution of the City, substantially in the form of attached as Schedule B, to be adopted by the City to authorize the issuance of the Note. "Business Day" means any day except a Saturday, Sunday, legal holiday, a day on which the City is closed for business, or a day on which banking institutions in the City are authorized by law or executive order to close. "Business Subsidy Act" means Minnesota Statutes, Sections 116J.993 to 116J.995, as amended. "Certificate of Completion" means the certification provided to the Redeveloper, or the purchaser of any part, parcel, or unit of the Redevelopment Property, pursuant to Section 4.4 of this Agreement. "City" means the City of Albertville, Minnesota. "City Development District Act" means Minnesota Statutes Sections 469.124 to 469.134, as amended. 2941780 MNI A1.141-43 2 "City Representative" means the Administrator of the City, or any person designated by the Administrator to act as the City Representative for the purposes of this Agreement. 0 "Construction Plans" means the plans, specifications, drawings and related documents on the construction work to be performed by the Redeveloper on the Redevelopment Property which (a) shall be as detailed as the plans, specifications, drawings and related documents which are submitted to the appropriate building officials of the City, and (b) shall include at least the following for each building: (1) site plan; (2) foundation plan; (3) basement plans; (4) floor plan for each floor; (5) cross sections of each (length and width); (6) elevations (all sides); (7) landscape plan; and (8) such other plans or supplements to the foregoing plans as the City may reasonably request to allow it to ascertain the nature and quality of the proposed construction work. "County" means the County of Wright, Minnesota. "Event of Default" means an action by the Redeveloper listed in Article IX of this Agreement. "Holder" means the owner of a Mortgage. "Maturity Date" means the earliest of February 1, 2024, or the date that the Note has been paid in full or terminated in accordance with its terms, whichever is earlier. "Medical Tenant" means a tenant of the Minimum Improvements providing services in the areas of adolescent medicine, anesthesiology, cardiology, chiropractic, dermatology, dentistry, ear, nose & throat services, emergency medicine, endocrinology, diabetes, diet services, family practice, gastroenterology, general practice, genetic services, geriatrics, hearing impaired services, hematology, immunology, infectious disease, internal medicine, medical genetics, medical & dental equipment & supplies, medical imaging, neck & back clinics, nephrology, neurological surgery, neurology, obstetrics & gynecology, occupational medicine, oncology, ophthalmology, otolaryngology, pathology, pediatrics, pharmacy, physical therapy, physiology, plastic surgery, preventive medicine, psychiatry, pulmonology, radiation oncology, radiology, rheumatology, sports medicine, surgery, urology, vascular medicine, or veterinary medicine. "Minimum Improvements" means construction on the Redevelopment Property of an approximately 18,500 square foot professional office building, including all related parking. "Mortgage" means any mortgage made by the Redeveloper that is secured, in whole or in part, with the Redevelopment Property and that is a permitted encumbrance pursuant to the provisions of Article VIII of this Agreement. "Net Tax Increment" means tax increment generated in the preceding six (6) months with respect to the Redevelopment Property and the Minimum Improvements thereon, and remitted to the Authority by Wright County. The term Net Tax Increment does not include any amounts retained by or payable to the State auditor under Section 469.177, subd. 11 of the Tax Increment 2941780 MNI AL141-43 3 Act, or any amounts described in Section 469.174, subd. 25, clauses (2) through (4) of the Tax Increment Act. "Note" means the Tax Increment Revenue Note, substantially in the form contained in the Authorizing Resolution, to be delivered by the City to the Redeveloper in accordance with Section 3.4 hereof. "Parcel" means any parcel of the Redevelopment Property. "Project" means the City's Development Project No. 1. "Project Area" means the geographic area within the boundaries of the Project. "Public Redevelopment Costs" has the meaning provided in Section 3.3. "Redeveloper" means Schultz & Schupp, LLC, or its permitted successors and assigns. "Redevelopment Plan" means the Redevelopment Plan for the Project. "Redevelopment Property" means the real property described in Schedule A of this Agreement. "State" means the state of Minnesota. "Tax Increment" means that portion of the real property taxes that is paid with respect to the Redevelopment Property and that is remitted to the City as tax increment pursuant to the Tax Increment Act. "Tax Increment Act" or "TIF Act" means the Tax Increment Financing Act, Mimnesota Statutes Sections 469.174 to 469.179, as amended. "Tax Increment District" or "TIF District" means Redevelopment Tax Increment Financing District No. 12 created by the City. "Tax Increment Plan" or "TIF Plan" means the Tax Increment Financing Plan for the TIF District approved by the City Council on August 7, 2006, and as it may be amended. "Tax Official" means any County assessor, County auditor, County or State board of equalization, the commissioner of revenue of the State, or any State or federal district court, the tax court of the State, or the State Supreme Court. "Tenant Improvements" means improvements made to the Minimum Improvements by tenants leasing professional office space therein. "Transfer" has the 0 meaning set forth in Section 8.2(a) hereof. 2941780 MNI AL141-43 4 "Unavoidable Delays" means delays beyond the reasonable control of the party seeking to be excused as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, acts of terrorism, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, wrongful holdover of parties in possession, or acts of any federal, state or local governmental unit (other than the City in exercising its rights under this Agreement), including without limitation condemnation or threat of condemnation of any portion of the Redevelopment Property, which directly result in delays. Unavoidable Delays shall not include delays experienced by the Redeveloper in obtaining permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such construction is required under Section 4.3 of this Agreement, so long as the Construction Plans have been approved in accordance with Section 4.2 hereof. (The remainder of this page is intentionally left blank.) • • 2941780 MNI AL141-43 5 ARTICLE II Representations and Warranties Section 2.1. Representations by the City. (a) The City is a municipal corporation duly organized and existing under the laws of the State. Under the provisions of the City Development District Act, the City has the power to enter into this Agreement and carry out its obligations hereunder. (b) The City will use its best efforts to facilitate development of the Minimum Improvements, including but not limited to cooperating with the Redeveloper in obtaining necessary administrative and land use approvals. (c) The City will issue the Note, subject to all the terms and conditions of this Agreement. (d) The activities of the City are undertaken for the purpose of fostering the redevelopment of certain real property that is occupied in part by substandard and obsolete buildings, which will revitalize this portion of the Project Area, increase tax base, and increase employment opportunities. (e) There are no pending or threatened legal proceedings, of which the City has notice, to restrain or enjoin the execution or delivery of this Agreement or the Note, or in any way contesting the validity of this Agreement or the Note, or contesting the authority of the City to execute, deliver and perform this Agreement or the Note. (0 The consummation of the transactions contemplated by this Agreement, and compliance by the City with the terms of this Agreement and the Note, will not result in any breach of any of the terms of, or constitute a default under, any indenture, lease, loan agreement, or other instrument to which the City is a party or by which the City is bound, or any law applicable to the City or this transaction. Section 2.2. Representations and Warranties by the Redeveloper. The Redeveloper represents and warrants that: (a) The Redeveloper is a limited liability company duly organized and in good standing under the laws of the State, is not in violation of any provisions of its articles of organization, is duly authorized to transact business within the State, has power to enter into this Agreement and has duly authorized the execution, delivery, and performance of this Agreement by proper action of the officers of its members. (b) If the conditions precedent to construction occur, the Redeveloper will construct the Minimum Improvements in accordance with the tenns of this Agreement, the Redevelopment Plan and all applicable local, state and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations). 2941780 MNI Al-141-43 6 (c) The Redeveloper will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all applicable local, state and federal laws and regulations which must be obtained or met before the Minimum Improvements may be lawfully constructed. (d) The Redeveloper has received no notice or communication from any local, state or federal official that the activities of the Redeveloper or the City in the Project Area may be or will be in violation of any environmental law or regulation (other than those notices or communications of which the City is aware). The Redeveloper is aware of no facts the existence of which would cause it to be in violation of or give any person a valid claim under any local, state or federal environmental law, regulation or review procedure. (e) The Redeveloper shall promptly advise the City in writing of all litigation or claims affecting any part of the Minimum Improvements and all written complaints and charges made by any governmental authority materially affecting the Minimum Improvements or materially affecting Redeveloper or its business which may delay or require changes in construction of the Minimum Improvements. (f) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any corporate restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the Redeveloper is now a party or by which it is bound, or constitutes a. default under any of the foregoing. (g) The proposed development by the Redeveloper hereunder would not occur but for the tax increment financing assistance being provided by the City hereunder. (h) The Redeveloper is not currently in default under any business subsidy agreement with any grantor, as such terms are defined in the Business Subsidy Act. (The remainder of this page is intentionally left blank.) 2941780 MNI AL141-43 7 • ARTICLE III Public Redevelopment Costs Section 3.1. Status of Redevelopment Property. The Redeveloper warrants and represents that it acquired fee title to the Redevelopment Property prior to the date of this Agreement, in anticipation of the redevelopment described herein. The City has no obligation to acquire the Redevelopment Property or any portion thereof. Section 3.2. Environmental Conditions. (a) The Redeveloper acknowledges that the City makes no representations or warranties as to the condition of the soils on the Redevelopment Property or the fitness of the Redevelopment Property for construction of the Minimum Improvements or any other purpose for which the Redeveloper may make use of such property, and that the assistance provided to the Redeveloper under this Agreement neither implies any responsibility by the City for any contamination of the Redevelopment Property or poor soil conditions nor imposes any obligation on such parties to participate in any cleanup of the Redevelopment Property or correction of any soil problems (other than the financing described in this agreement). (b) Without limiting its obligations under Section 8.3 of this Agreement the Redeveloper further agrees that it will indemnify, defend, and hold harmless the City and its governing body members, officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the Redevelopment Property, unless and to i the extent (i) such hazardous wastes or pollutants are present as a result of the actions or omissions of the indemnities, or (ii) the claim or action arises out of an act or omission of the City in exercise of its regulatory powers regarding the Redevelopment Property prior and unrelated to the financial assistance provided under this Agreement. Nothing in this section will be construed to limit or affect any limitations on liability of the City under State or federal law, including without limitation Minnesota Statutes Sections 466.04 and 604.02. Section 3.3. Public Redevelopment Costs. (a) Generally. The Redeveloper shall demolish all existing buildings on the Redevelopment Property and undertake all necessary utility construction and/or relocation, and grading, excavation and environmental remediation needed to construct the Minimum Improvements (such activities are collectively referred to as the "Public Redevelopment Costs"). (b) Medical Tenants. Prior to any request for reimbursement of Public Redevelopment Costs, the Redeveloper shall lease a minimum of 25% of available rental space in the Minimum Improvements, based on rentable square footage, to Medical Tenants. Section 3.4. Issuance of Note. (a) Terms. In order to reimburse the Redeveloper for a portion of the Public Redevelopment Costs incurred by Redeveloper, the City shall issue to the Redeveloper the Note in the maximum aggregate principal amount of $196,750. The terms of the Note, including maturity, payment dates and interest rate, will be substantially those set forth . in the form of the Note shown in Schedule B. The Note will be dated as of the date of delivery, and interest will accrue from such date. The payment schedule will be determined as of the date 2941780 MNl AL141-43 8 of delivery, and will reflect the compounding of interest from the date of issue on each February • 1 and August 1 through and including August 1, 2009. The payment schedule will also be determined based on projection of Available Tax Increment from the Minimum Improvements, excluding the value of any Tenant Improvements, as reasonably determined by the City in consultation with the County assessor. (b) Issuance. Before issuance and delivery of the Note, Redeveloper must submit to the City one or more certificates signed by the Redeveloper's duly authorized representative, containing the following: (i) a statement that each cost identified in the certificate is a Public Redevelopment Cost as defined in this Agreement and that no part of such cost has been included in any previous certification (ii) evidence that each identified Public Redevelopment Cost has been paid or incurred by or on behalf of the Redeveloper, (iii) evidence that at least 25% of the Minimum Improvements is occupied by Medical Tenants; and (iv) a statement that no uncured Event of Default by the Redeveloper has occurred and is continuing under the Agreement. The City may, if not satisfied that the conditions described herein have been met, return any certificate with a statement of the reasons why it is not acceptable and requesting such further documentation or clarification as the City may reasonably require. The City will deliver the Note upon receipt and approval of certificates evidencing Public Redevelopment Costs in at least the principal amount of the Note. (c) Termination of right to Note. Notwithstanding anything to the contrary in this Agreement, if the conditions for delivery of the Note are not met by the date of required completion of the Minimum Improvements under Section 4.3, the City may terminate this Agreement by ten days written notice to the Redeveloper. Thereafter neither party shall have any obligations or liability to the other hereunder, except that any obligations of the Redeveloper under Sections 3.2 and 8.3 survive such termination. (d) Qualifications. The Redeveloper understands and acknowledges that the City makes no representations or warranties regarding the amount of Available Tax Increment, or that revenues pledged to the Note will be sufficient to pay the principal and interest on the Note. Redeveloper expressly acknowledges that amounts of Available Tax Increment will be determined, in part, by the estimated market value of the completed Minimum Improvements (excluding the Tenant Improvements), and that if the market value assigned by the County is less than Redeveloper anticipated at the time this Agreement was negotiated, Available Tax Increment may be insufficient to pay all principal and interest on the Note. Redeveloper further acknowledges that estimates of Tax Increment prepared by the City or its financial advisors in connection with the TIF District or this Agreement are for the benefit of the City, and are not intended as representations on which the Redeveloper may rely. If the Public Redevelopment Costs exceed the principal amount of the Note, such excess is the sole responsibility of Redeveloper. Section 3.5. Business Subsidy. The Redeveloper warrants and represents that the Redeveloper's investment in the purchase of the Redevelopment Property together with Redeveloper's investment in site preparation on such property (net of any portion of such costs reimbursed through issuance of the Note) will equal at least 70% of the County assessor's • 2941780 MN[ AL141-43 9 • 0 estimated market value of the Redevelopment Property for the 2006 assessment year, calculated as follows: Aggregate Purchase price of Redevelopment Property Date of purchase of each Parcel: , 2006 Plus Estimated cost of Redevelopment Property site preparation Equals land cost and site preparation Less site preparation reimbursed by the Note Equals net land cost and site preparation 2006 Assessor's estimated market value of Redevelopment Property $750,000 $350,000 $1,100, 000 $196,750 $903,250 $401,300 $903,250 (net acquisition and site preparation cost) is 225% of $401,300 (assessor's current estimated fair market value of the Redevelopment Property). Accordingly, the parties agree and understand that the financial assistance described in this Agreement does not constitute a business subsidy within the meaning of the Business Subsidy Act. The Redeveloper releases and waives any claim against the City and its governing body members, officers, agents, servants and employees thereof arising from application of the Business Subsidy Act to this Agreement, including without limitation any claim that the City failed to comply with the Business Subsidy Act with respect to this Agreement. Section 3.6. Payment of Administrative Costs. The City acknowledges that Redeveloper has previously deposited with the City $5,000 as a nonrefundable administrative fee. The City will use such deposit to pay the reasonable costs of consultants and attorneys retained by the City in connection with the negotiation in preparation of this Agreement and other incidental agreements and documents related to the development contemplated hereunder (collectively the "Administrative Costs"). If at any time the City determines that the deposit is insufficient to pay Administrative Costs, the Redeveloper is obligated to pay such shortfall within 15 days after receipt of a written notice from the City containing evidence of the unpaid costs. Upon termination of this Agreement in accordance with its terms, the Redeveloper remains obligated under this section for Administrative Costs incurred through the effective date of termination. Any balance of deposited funds in excess of Administrative Costs may be retained by the City and used for any purposes under law. (The remainder of this page is intentionally left blank.) 2941780 MNI AL141-43 I ARTICLE IV • Construction of Minimum Improvements Section 4.1. Construction of Improvements. The Redeveloper agrees that it will construct or cause construction of the Minimum Improvements on the Redevelopment Property in accordance with the approved Construction Plans, and that it will, subject and pursuant to the terms of this Agreement, at all times prior to the Maturity Date maintain, preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition, reasonable wear and tear excluded. Section 4.2. Construction Plans. (a) Redeveloper has submitted Construction Plans to the City and the City has approved those Construction Plans for the purposes of this Agreement. The Redeveloper hereby waives any and all claims and causes of action whatsoever resulting from the review of the Construction Plans by the City and/or any changes in the Construction Plans requested by the City. Neither the City nor any employee or official of the City shall be responsible in any manner whatsoever for any defect in the Construction Plans or in any work done pursuant to the Construction Plans, including changes requested by the City. (b) If the Redeveloper desires to make any material change in the Construction Plans or any component thereof after their approval by the City, the Redeveloper shall submit the • proposed change to the City for its approval. For the purpose of this section, the term "material" means changes that increase or decrease construction costs by $100,000 or more. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section 4.2 of this Agreement with respect to such previously approved Construction Plans, the City shall approve the proposed change and notify the Redeveloper in writing of its approval. Such change in the Construction Plans shall, in any event, be deemed approved by the City unless rejected, in whole or in part, by written notice by the City to the Redeveloper, setting forth in detail the reasons therefor within ten (10) days after receipt of the notice of such change. The City's approval of any such change in the Construction Plans will not be unreasonably withheld. Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable Delays, the Redeveloper shall commence demolition of the existing buildings and construction of the Minimum hmprovements by July 1, 2007, and shall substantially complete the construction by December 31, 2007. All work with respect to the Minimum Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property shall be in conformity with the Construction Plans as submitted by the Redeveloper, subject to changes as provided in Section 4.2. The Redeveloper agrees for itself, its successors, and assigns, and every successor in interest to the Redevelopment Property, or any part thereof, that the Redeveloper, and such successors and assigns, shall promptly begin and diligently prosecute to completion the development of the Redevelopment Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be commenced and • 2941780 MNI AL141-43 11 . completed within the period specified in this Section 4.3 of this Agreement. After the date of this Agreement and until construction of the Minimum Improvements has been completed, the Redeveloper shall make reports, in such detail and at such times as may reasonably be requested by the City, but no more than monthly, as to the actual progress of the Redeveloper with respect to such construction. • Notwithstanding anything to the contrary herein, at any time prior to completion of construction of the Minimum Improvements, Redeveloper may terminate this Agreement by giving the City ten days written notice. Thereafter the Note (if issued) will be deemed terminated, and neither party shall have any obligations or liability to the other hereunder, except that any obligations of the Redeveloper under Sections 3.2 and 8.3 survive such termination. Section 4.4. Certificate of Completion. (a) Promptly after completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the Redeveloper to construct the Minimum Improvements (including the dates for beginning and completion thereof), the City Representative will furnish the Redeveloper with a Certificate shown as Schedule C. (b) If the City Representative shall refuse or fail to provide any certification in accordance with the provisions of this Section 4.4 of this Agreement, the City Representative shall, within thirty (30) days after written request by the Redeveloper, provide the Redeveloper with a written statement, indicating in adequate detail in what respects the Redeveloper has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the City, for the Redeveloper to take or perform in order to obtain such certification. (c) The construction the Minimum Improvements shall be deemed to be complete upon (i) issuance of a temporary or partial certificate of occupancy by the City for the building shell, prior to completion of Tenant Improvements; and (ii) determination by the City Representative that all site work, landscaping, and parking improvements have been completed in accordance with the Construction Plans. Section 4.5. Records. The City through any authorized representatives, shall have the right at all reasonable times after reasonable notice to inspect, examine and copy all books and records of Redeveloper relating to the Minimum Improvements. Such records shall be kept and maintained by Redeveloper through the Maturity Date. (The remainder of this page is intentionally left blank.) 2941780 MNl AL141-43 12 ARTICLE V • Insurance Section 5. L Insurance. (a) The Redeveloper will provide and maintain, or cause its contractor to provide and maintain, at all times during the process of constructing the Minimum Improvements an All Risk Broad Form Basis Insurance Policy and, from time to time during that period, at the request of the City, furnish the City with proof of payment of premiums on policies covering the following: (i) Builder's risk insurance, written on the so-called "Builder's Risk -- Completed Value Basis," in an amount equal to 100% of the insurable value of the Minimum Improvements at the date of completion, and with coverage available in nonreporting form on the so-called "all risk" form of policy; (ii) Commercial general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations, and contractual liability insurance) together with an Owner's Protective Liability Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above -required limits, an umbrella excess liability policy may be used). The City shall be listed as an additional insured on the policy; and (iii) Workers' compensation insurance, with statutory coverage, provided that the Redeveloper may be self -insured with respect to all or any part of its liability for workers' compensation. (b) Upon completion of construction of the Minimum Improvements and prior to the Maturity Date, the Redeveloper shall maintain, or cause to be maintained, at its cost and expense, and from time to time at the request of the City shall furnish proof of the payment of premiums on, insurance as follows: (1) Insurance against loss and/or damage to the Minimum Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses. (ii) Commercial general liability insurance, including personal injury liability (with employee exclusion deleted), against liability for injuries to persons and/or property, in the minimum amount for each occurrence and for each year of $1,000,000, and shall be endorsed to show the City as an additional insured. (iii) Such other insurance, including workers' compensation insurance respecting all employees of the Redeveloper located at the Minimum Improvements, in such amount as is customarily carried by like organizations engaged in like activities of comparable size and liability exposure; provided that the Redeveloper may be self - insured with respect to all or any part of its liability for any and all of the insurance required herein. • 2941780 MNI AL141-43 1J (c) All insurance required in Article V of this Agreement shall be taken out and maintained in responsible insurance companies selected by the Redeveloper that are authorized under the laws of the State to assume the risks covered thereby. Upon request, the Redeveloper will deposit annually with the City a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect, or if applicable, a statement of self- insurance, or the Web address where such insurance information is contained. Unless otherwise provided in this Article V of this Agreement each policy shall contain a provision that the insurer shall not cancel nor modify it in such a way as to reduce the coverage provided below the amounts required herein without giving written notice to the Redeveloper and the City at least thirty (30) days before the cancellation or modification becomes effective. In lieu of separate policies, the Redeveloper may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein, in which event the Redeveloper shall deposit with the City a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Minimum Improvements. All insurance required under this Section 5.1 may be provided under (i) an individual policy covering the Minimum Improvements, (ii) a blanket policy or policies that includes other liabilities, properties and locations of the Redeveloper; provided, however, that if such blanket commercial general liability insurance policy or policies contain a general policy aggregate of less than $20,000,000, then Redeveloper shall also maintain excess liability coverage necessary to establish a total liability insurance limit of $20,000,000, (iii) a plan of self-insurance, provided that Redeveloper notifies the City of its intent to self -insure and agrees that upon request it shall deliver to the City each calendar year a • copy of the annual report of its parent corporation that is audited by an independent certified public accountant that discloses that the parent corporation of the Redeveloper has $250,000,000 of net worth, or (iv) a combination of any of the foregoing insurance programs. (d) The Redeveloper agrees to notify the City immediately in the case of damage exceeding $100,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. Subject to (e) below, in such event the Redeveloper will forthwith repair, reconstruct, and restore the Minimum Improvements to substantially the same or an improved condition or value as it existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction, and restoration, the Redeveloper will apply the net proceeds of any insurance relating to such damage received by the Redeveloper to the payment or reimbursement of the costs thereof. The Redeveloper shall complete the repair, reconstruction and restoration of the Minimum Improvements, regardless of whether the net proceeds of insurance received by the Redeveloper for such purposes are sufficient to pay for the same. Any net proceeds remaining after completion of such repairs, construction, and restoration shall be the property of the Redeveloper. (e) In lieu of its obligation to reconstruct the Minimum Improvements as set forth in this Section, the Redeveloper shall have the option of: (i) if the Note is held by a third party, paying to the City an amount that, in the opinion of the City and its fiscal consultant, is sufficient to pay or redeem the outstanding principal and accrued interest on the Note, or (ii) if the Note is held by the Redeveloper, waiving its right to receive subsequent payments under the Note, by written notice to City, upon receipt of which the Note will be deemed terminated. 2941780 MNI AL141-43 14 (0 The Redeveloper and the City agree that all of the insurance provisions set forth is this Article V shall terminate upon the termination of this Agreement. Section 5.2. Subordination. Notwithstanding anything to the contrary herein, the rights of the City with respect to the receipt and application of any insurance proceeds shall, in all respects, be subordinate and subject to the rights of any Holder under a Mortgage allowed pursuant to Article VII of this Agreement. (The remainder of this page is intentionally left blank.) E C� 2941780 MNI AL141-43 15 . ARTICLE VI Tax Increment; Taxes Section 6.1. Right to Collect Delinquent Taxes. The Redeveloper acknowledges that the City is providing substantial aid and assistance in furtherance of the development through reimbursement of Public Redevelopment Costs. The Redeveloper understands that the Available Tax Increment pledged to payment on the Note is derived from real estate taxes on the Redevelopment Property, which taxes must be promptly and timely paid. To that end, the Redeveloper agrees for itself in addition to the obligation pursuant to statute to pay real estate taxes, that it is also obligated by reason of this Agreement to pay before delinquency all real estate taxes assessed against the Redevelopment Property and the Minimum Improvements. The Redeveloper acknowledges that this obligation creates a contractual right on behalf of the City to sue the Redeveloper to collect delinquent real estate taxes and any penalty or interest thereon and to pay over the same as a tax payment to the county auditor, provided, however, that Redeveloper shall have the right to contest taxes in the manner provided by law. In any such suit, the City shall also be entitled to recover its costs, expenses and reasonable attorney fees. Section 6.2. Review of Taxes. The Redeveloper agrees that prior to the Maturity Date it will not cause a reduction in the real property taxes paid in respect of the Redevelopment Property through willful destruction of the Redevelopment Property or any part thereof. The • Redeveloper also agrees that it will not, prior to the Maturity Date, seek exemption from property tax for the Redevelopment Property or any portion thereof or transfer or permit the transfer of the Redevelopment Property to any entity that is exempt from real property taxes and state law (other than any portion thereof dedicated or conveyed to the City in accordance with platting of the Redevelopment Property), or apply for a deferral of property tax on the Redevelopment Property pursuant to any law. 0 Section 6.3. Use of Tax Increment. The Redeveloper acknowledges that the Available Tax Increment may exceed the scheduled payments on the Note, and that the City may use such excess Available Tax Increment to pay any obligation, including without limitation costs of acquisition for the real property within the TIF District owned by Burlington Northern Santa Fe Railroad. The Redeveloper further acknowledges that it has no interest in Available Tax Increment except as expressly provided in the Note and the Authorizing Resolution. (The remainder of this page is intentionally left blank.) 2941780 MNI AL141-43 16 ARTICLE VII Financing Section 7.1. Redeveloper Financing. (a) Before commencement of construction of the Minimum Improvements, Redeveloper shall submit to the City evidence of one or more commitments for financing which, together with committed equity, is sufficient for the acquisition of the Redevelopment Property and construction of the Minimum Improvements. Such commitments may be submitted as short term financing, long term mortgage financing, a bridge loan with a long term takeout financing commitment, or any combination of the foregoing. (b) If the City finds that the financing is sufficiently committed and adequate in amount to provide for the undertakings described in paragraph (a), then the City shall notify the Redeveloper in writing of its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within ten (10) days from the date when the City is provided the evidence of financing. A failure by the City to respond to such evidence of financing shall be deemed to constitute an approval hereunder. If the City rejects the evidence of financing as inadequate, it shall do so in writing specifying the basis for the rejection. In any event the Redeveloper shall submit adequate evidence of financing within ten (10) days after such rejection. (c) In the event that there occurs a default under any Mortgage, the Redeveloper shall cause the City to receive copies of any notice of default received by the Redeveloper from the holder of such Mortgage. Redeveloper will include in any Mortgage documents a provision giving the City the right, but not the obligation, to cure any such default on behalf of the Redeveloper within such cure periods as are available to the Redeveloper under the Mortgage documents. In the event there is an event of default under this Agreement, the City will transmit to the Holder of any Mortgage a copy of any notice of default given by the City pursuant to Article IX of this Agreement. Section 7.2. Subordination. In order to facilitate the Redeveloper obtaining financing for the development of the Minimum Improvements, the City agrees to subordinate its rights under this Agreement to the Holder of any Mortgage, provided that (i) such subordination shall be subject to such reasonable terms and conditions as the City and Holder of a Mortgage mutually agree in writing; and (ii) any subordination agreement must include the provision described in Section 7.1(c). (The remainder of this page is intentionally left blank.) • 2941780 MNl AL141-43 17 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development. The Redeveloper represents and agrees that its purchase of the Redevelopment Property, and its undertakings pursuant to the Agreement, are, and will be used, for the purpose of development of the Redevelopment Property and not for speculation in land holding. The Redeveloper specifically represents that it intends to develop a professional office facility, and that it has no present intent to transfer any portion of the Redevelopment Property before completion of the Minimum Improvements. Section 8.2. Prohibition Against Redeveloper's Transfer of Property and Assignment of Agreement. The Redeveloper represents and agrees that prior to issuance of the Certificate of Completion, (a) Except only by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable the Redeveloper or any successor in interest to the Redevelopment Property, or any part thereof, to perform its obligations with respect to undertaking the Minimum Improvements, and any other purpose authorized by this Agreement, including leases to commercial tenants, the Redeveloper has not made or created and, prior to issuance of the Certificate of Completion, will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Redevelopment Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity whether or not related in any way to the Redeveloper (collectively, a "Transfer"), without the prior written approval of the City (whose approval will not be unreasonably withheld, subject to the standards described in paragraph (b) of this Section). Prior approval by the City is not required for any Transfer to an Affiliate, provided that such Transfer is nevertheless subject to the requirements of Section 8.2(b)(ii). (b) If the Redeveloper seeks to effect a Transfer prior to issuance of the Certificate of Completion, the City shall be entitled to require as conditions to such Transfer that: (i) any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the City, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Redeveloper as to the portion of the Redevelopment Property to be transferred; and (ii) Any proposed transferee, by instrument in writing satisfactory to the City and in form recordable in the public land records of Wright County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of the City, have expressly assumed all of the obligations of the Redeveloper under this Agreement as to the portion of the Redevelopment Property to be transferred and agreed to be subject to all the conditions and restrictions to which the Redeveloper is subject as to such portion; provided, 2941780 MNI AL141-43 18 however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Redevelopment Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the City) deprive the City of any rights or remedies or controls with respect to the Redevelopment Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Redevelopment Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit the City of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Redevelopment Property that the City would have had, had there been no such transfer or change. In the absence of specific written agreement by the City to the contrary, no such transfer or approval by the City thereof shall be deemed to relieve the Redeveloper, or any other party bound in any way by this Agreement or otherwise with respect to the Redevelopment Property, from any of its obligations with respect thereto. (iii) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Redevelopment Property governed by this Article VIII, shall be in a form reasonably satisfactory to the City. (c) If the conditions described in paragraph (b) are satisfied then the Transfer will be approved and the Redeveloper shall be released from its obligation under this Agreement, as to the portion of the Redevelopment Property that is transferred, assigned, or otherwise conveyed. After issuance of the Certificate of Completion, the Redeveloper may effect a Transfer without approval by the City, provided that any transferee shall remain bound by any remaining obligations of the Redeveloper under this Agreement. (d) Notwithstanding the foregoing, Redeveloper may elect, prior to commencement of construction of the Minimum Improvements and prior to payment of any Available Tax Increment to Redeveloper, to terminate this Agreement and return the Note in which event there shall be no restriction on Redeveloper's right to convey the Redevelopment Property to any third party. After commencement of construction but before completion, should Redeveloper desire to transfer the property without the approval of the City as required by this Section, the City's sole remedy for such Transfer is the action described in 9.2(b); if the City disapproves of a proposed Transfer, Redeveloper may elect to waive any further fight to receive payment under the Note. Section 8.3. Release and Indemnification Covenants. (a) Except for any willful misrepresentation or any willful or wanton misconduct or negligence of the Indemnified Parties as hereinafter defined, and except for any breach by any of the Indemnified Parties of their obligations 2941780 MNI AL141-43 19 under this Agreement, the Indemnified Parties shall not be liable for any damage or injury to the persons or property of the Redeveloper or its officers, agents, servants, or employees or any other person who may be about the Redevelopment Property or Minimum Improvements. For the purposes of this Section, the term "Indemnified Parties" means the City, and the governing body members, officers, agents, servants, and employees thereof. (b) Except for any willful misrepresentation or any willful or wanton misconduct or negligence of the Indemnified Parties, and except for any breach by any of the Indemnified Parties of their obligations under this Agreement, the Redeveloper agrees to protect and defend the Indemnified Parties, now and forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action, or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from this Agreement, or the transactions contemplated hereby or the Redeveloper's acquisition, construction, installation, ownership, maintenance, and operation of the Redevelopment Property. (c) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements, and obligations of such entity and not of any governing body member, officer, agent, servant, or employee of such entities in the individual capacity thereof. 9 (The remainder of this page is intentionally left blank.) • 2941780 MNl AL141-43 20 ARTICLE IX Events of Default Section 9.1. Events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement, any one or more of the following events, after the non -defaulting party provides thirty (30) days written notice to the defaulting party of the event, but only if the event has not been cured within said thirty (30) days or, if the event is by its nature incurable within thirty (30) days, the defaulting party does not, within such 30-day period, provide assurances reasonably satisfactory to the party providing notice of default that the event will be cured and will be cured as soon as reasonably possible: (a) Failure by the Redeveloper or City to observe or perform any covenant, condition, obligation, or agreement on its part to be observed or performed under this Agreement; (b) If, before issuance of the Certificate of Completion for all the Minimum Improvements, the Redeveloper shall (i) file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act or under any similar federal or State law; or (ii) make an assignment for benefit of its creditors; or or (iii) admit in writing its inability to pay its debts generally as they become due; (iv) be adjudicated as bankrupt or insolvent. Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section 9.1 of this Agreement occurs, the City or Redeveloper may take the following actions: (a) The City or Redeveloper may suspend its performance under the Agreement until it receives assurances that the defaulting party will cure its default and continue its performance under the Agreement. (b) Upon an Event of Default by the Redeveloper, the City may withhold payments under the Note in accordance with its terms pending cure of the Event of Default, or may terminate the Note and this Agreement. (c) Except as otherwise expressly stated in this Agreement, the City or Redeveloper may take whatever action, including legal, equitable, or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. . 2941780 MNl AL141-43 21 • Section 9.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to any party is intended to be exclusive of any other available remedy or remedies (except as provided herein), but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. To entitle the City to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article IX. • • Section 9.4. No Additional Waiver Implied by One Waiver. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. 2941780 MNI AL141-43 22 ARTICLE X . Additional Provisions Section 10.1. Conflict of Interests; City Representatives Not Individually Liable. The City and the Redeveloper, to the best of their respective knowledge, represent and agree that no member, official, or employee of the City shall have any personal interest, direct or indirect, in the Agreement, nor shall any such member, official, or employee participate in any decision relating to the Agreement that affects his personal interests or the interests of any corporation, partnership, or association in which he, directly or indirectly, is interested. No member, official, or employee of the City shall be personally liable to the Redeveloper, or any successor in interest, in the event of any default or breach by the City or for any amount that may become due to the Redeveloper or successor or on any obligations under the terms of the Agreement. Section 10.2. Equal Employment Opportunity. The Redeveloper, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in the Agreement it will comply with all applicable federal and state equal employment and non-discrimination laws and regulations. Section 10.3. Restrictions on Use. (a) The Redeveloper agrees that it must continue operation of the Minimum Improvements as commercial facilities through the Maturity Date. For the purpose of this paragraph, space in the Minimum Improvements will be considered to be maintained in operation if it is leased, or available for lease, to any person or entity, for use in its private trade or business, or occupied by Redeveloper for use in its private trade or business, and a temporary closure due to remodel or remerchandising, repair, restoration or reconstruction or force majeure event shall not be considered a failure to comply with this Section 10.3(a). Notwithstanding anything to the contrary herein, the City's sole remedy for Redeveloper's failure to comply with this Section 10.3(a) is the action described in Section 9.2(b). (b) The Redeveloper further agrees that until the Maturity Date, the Redeveloper, and such successors and assigns, shall maintain the Minimum Improvements as described in Section 4.1 hereof. (c) Redeveloper shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Redevelopment Property or any improvements erected or to be erected thereon, or any part thereof. Section 10.4. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 10.5. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, to the following addresses (or to such other addresses as either party may notify the other): • 2941780 MNI AL141-43 23 • To Redeveloper: Schultz & Schupp LLC Attn: Keith Schupp 340 Highway 10 South St. Cloud, Minnesota 56304 To City: City of Albertville Attn: City Administrator 5975 Main Avenue Albertville, Minnesota 55301-0009 Section 10.6. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 10.7. Amendment, This Agreement may be modified only by written amendments hereto approved by the City and the Redeveloper. Section 10.8. Minnesota Law. This Agreement will be construed in accordance with the laws of the State, and any claim arising from this Agreement will be adjudicated in the State. Section 10.9. City Approvals. Unless otherwise specified, any approval required by the City under this Agreement may be given by the City Representative, except that final approval of issuance of the Note shall be made by the City's city council. Section 10.10. Term of this Agreement. The term of this Agreement shall commence on the day and year first above written and continue until the Termination Date. The Termination Date shall be the earlier of: A. The date on which this Agreement is cancelled or terminated in accordance with the provisions of Article IX or any other provision of this Agreement providing for termination; B. The date on which this Agreement is cancelled or rescinded by mutual written agreement of the City and Redeveloper; or C. The Maturity Date. Section 10.11. Effect of Termination or Assignment. Upon termination of this Agreement all rights and obligations of the City and Redeveloper shall terminate, except as follows: A. Any amounts due from Redeveloper for charges incurred prior to termination shall continue to be the obligation of the Redeveloper; and B. Any event that occurs prior to termination that results in the obligation of the Redeveloper to indemnify and defend shall survive termination. • 2941780 MN] AL141-43 24 IN WITNESS WHEREOF, the City and Redeveloper have caused this Agreement to be duly executed by their duly authorized representatives as of the date first above written. CITY OF ALBERTVILLE, MINNESOTA By Its Mayor By Its City Administrator STATE OF MINNESOTA ) SS. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of 2006 by Don Peterson and Larry Kruse, the Mayor and City Administrator, respectively, of the City of Albertville, a Minnesota municipal corporation, on behalf of the City. Notary Public • 294178v3 MNl AL141-43 S-1 • n • STATE OF MINNESOTA SS. COUNTY OF WRIGHT SCHULTZ & SCHUPP LLC By Its The foregoing instrument was acknowledged before me this , 2006 by , the & Schupp LLC, a Minnesota limited liability company, on behalf of the company. Notary Public day of of Schultz 2941780 MM AL141-43 S-2 SCHEDULE A REDEVELOPMENT PROPERTY Parcel 1: Parcel 2: • • 2941780 MNI AL141-43 A-1 0 SCHEDULE B AUTHORIZING RESOLUTION Authorizing Resolution CITY OF ALBERTVILLE, MINNESOTA RESOLUTION NO. RESOLUTION APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT WITH SCHULTZ & SCHUPP LLC, AND AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS $196,750 TAX INCREMENT REVENUE NOTE, SERIES 2006 BE IT RESOLVED BY the City Council (the "Council") of the City of Albertville, Minnesota (the "City") as follows: Section 1. Authorization; Award of Sale. S1.01. Authorization. The City of Albertville has heretofore approved the establishment of its Redevelopment Tax Increment Financing District No. 12 (the "TIF District") within Municipal Development Project No. 1 ("Project"), and has adopted a tax increment financing plan for the purpose of financing certain improvements within the Project. Pursuant to Minnesota Statutes, Section 469.178, the City is authorized to issue and sell its bonds for the purpose of financing a portion of the public redevelopment costs of the Development District. Such bonds are payable from all or any portion of revenues derived from the TIF District and pledged to the payment of the bonds. The City hereby finds and detennines that it is in the best interests of the City that it issue its $196,750 Tax Increment Revenue Note, Series 2006 (the "Note") for the purpose of financing certain public costs of the Project. 1.02. Agreement Approved; Issuance and Terms of the Note. The City hereby approves the Contract for Private Redevelopment between the City and Schultz & Schupp, LLC (the "Agreement"), and authorizes the Mayor and City Administrator to execute such Agreement in substantially the form on file with City, subject to modifications that do not alter the substance of the transaction and are approved by such officials, provided that execution of the Agreement by such officials is conclusive evidence of their approval. The City hereby delegates to the City Administrator the detennination of the date on which the Note is to be delivered, in accordance with the Agreement. The Note shall be issued to Schultz & Schupp, LLC (the "Owner'), shall be dated the date of delivery thereof, and shall bear interest from the date of issue at the rate of seven percent (7%) per annum to the earlier of maturity or prepayment. The City shall receive in • 2941780 MNl AL141-43 B-1 exchange for the sale of the Note the evidence that the Owner paid Public Redevelopment Costs as defined in the Agreement, in at least the principal amount of the Note. 0 (The remainder of this page is intentionally left blank.) 1�1 :7 2941780 MNI AL141-43 B-2 Section 2. Form of Note. The Note shall be in substantially the following form, with the blanks to be properly filled in and the principal amount adjusted as of the date of issue: UNITED STATE OF AMERICA STATE OF MINNESOTA COUNTY OF WRIGHT No. R-1 CITY OF ALBERTVILLE TAX INCREMENT REVENUE NOTE SERIES 200_ Rate 7.0% $196,750 Date of Original Issue 20 The City of Albertville (the "City") for value received, certifies that it is indebted and hereby promises to pay to Schultz & Schupp, LLC or registered assigns (the "Owner"), the principal sum of $196,750 and to pay interest thereon at the rate of seven percent (7.0%) per annum, as and to the extent set forth herein. 1. Payments. Principal and interest (the "Payments") shall be paid on August 1, 2009 and each February 1 and August 1 thereafter to and including February 1, 2024 (the "Payment Dates") in the amounts set forth in Exhibit A hereto and from the sources set forth in Section 3 herein. Payments shall be applied first to accrued interest, and then to unpaid principal. Payments are payable by mail to the address of the Owner or such other address as the Owner may designate upon thirty (30) days written notice to the City. Payments on this Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. Interest at the rate stated herein shall accrue on the unpaid principal, commencing on the date of original issue. Interest shall be computed on the basis of a year of 360 days and charged for actual days principal is unpaid. 3. Available Tax Increment. Payments on this Note are payable solely from Available Tax Increment. As defined in the Contract for Private Redevelopment between the City and the Owner, dated as of August _, 2006 (the "Agreement"), the term "Available Tax Increment" means, on each Payment Date, 90% of the Net Tax Increment (as defined in the Agreement and hereinafter referred to as "Net Tax Increment") derived from the Redevelopment Property and received by the City in the six months preceding the Payment Date. 0 The City shall have no obligation to pay principal of and interest on this Note on each 2941780 MNI AL141-43 B-3 Payment Date from any source other than Available Tax Increment and the failure of the City to pay any scheduled Payments on any Payment Date shall not constitute a default hereunder as long as the City pays principal and interest hereon to the extent of Available Tax Increment. If on any Payment Date the Available Tax Increment is insufficient to make the Payment due on that date, the deficiency will be deferred and paid, without interest thereon, to the extent possible on any subsequent Payment Date on which the City has Available Tax Increment in excess of the Payment due on such date. The City shall have no obligation to pay unpaid balance of principal or accrued interest that may remain after the Maturity Date (as defined in the Agreement). The City makes no warranty or representation that Available Tax Increment will be sufficient to pay all or any portion of the principal or interest on this Note. 4. Default. Upon an Event of Default by the Redeveloper under the Agreement, the City may exercise the remedies with respect to this Note described in Section 9.2 of the Agreement, the terms of which are incorporated herein by reference. 5. Optional Prepayment. The principal sum and all accrued interest payable under this Note is prepayable in whole or in part at any time by the City without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular Payment otherwise required to be made under this Note. 6. Nature of Obligation. This Note is one of an issue in the total principal amount of $196,750, issued to aid in financing certain public redevelopment costs and administrative costs of a Project undertaken by the City pursuant to Minnesota Statutes, Sections 469.124 through 469.134, and is issued pursuant to an authorizing resolution (the "Resolution") duly adopted by the City on August _, 2006, and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.179. This Note is a limited obligation of the City which is payable solely from Available Tax Increment pledged to the payment hereof under the Resolution. This Note and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Note or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Note or other costs incident hereto. 7. Registration and Transfer. This Note is issuable only as a fully registered note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this Note is transferable upon the books of the City kept for that purpose at the principal office of the City Finance Director, by the Owner hereof in person or by such Owner's attorney duly authorized in writing, upon surrender of this Note together with a written instrument of transfer satisfactory to the City, duly executed by the Owner. Upon such transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the City with respect to such transfer or exchange, there will be issued in the name of the transferee a new Note of the same aggregate principal amount, bearing interest at the same rate and maturing on the same dates. 2941780 MNI AL141-43 B-4 . This Note shall not be transferred to any person other than an affiliate, or other related entity, of the Owner unless the City has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory to the City, that such transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. .7 • IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this Note a valid and binding limited obligation of the City according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. IN WITNESS WHEREOF, the City Council of the City of Albertville has caused this Note to be executed with the manual signatures of its Mayor and City Administrator, all as of the Date of Original Issue specified above. CITY OF ALBERTVILLE, MINNESOTA Mayor City Administrator 2941780 MNI AL141-43 B-5 REGISTRATION PROVISIONS • The ownership of the unpaid balance of the within Note is registered in the bond register of the City Finance Director, in the name of the person last listed below. Date of Registration Registered Owner ,20 Schultz & Schupp, LLC Federal Tax ID No. 2941780 MNI AL141-43 B-6 Signature of Finance Director • • Exhibit A Scheduled Payments Payment Date Principal Interest Total Payment August 1, 2009 February 1, 2010 August 1, 2010 February 1, 2011 August 1, 2011 February 1, 2012 August 1, 2012 February 1, 2013 August 1, 2013 February 1, 2014 August 1, 2014 February 1, 2015 August 1, 2015 February 1, 2016 August 1, 2016 February 1, 2017 August 1, 2017 February 1, 2018 August 1, 2018 February 1, 2019 August 1, 2019 February 1, 2020 August 1, 2020 February 1, 2021 August 1, 2021 February 1, 2022 August 1, 2022 February 1, 2023 August 1, 2023 February 1, 2024* * Maturity 2941780 MNl AL141-43 B-7 Section 3. Terms, Execution and Delivery. 0 3.01. Denomination, Payment. The Note shall be issued as a single typewritten note numbered R-1. The Note shall be issuable only in frilly registered form. Principal of and interest on the Note shall be payable by check or draft issued by the Registrar described herein. 3.02. Dates; Interest Payment Dates. Principal of and interest on the Note shall be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not such day is a business day. 3.03. Registration. The City hereby appoints the City Finance Director to perform the functions of registrar, transfer agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Re ig ster. The Registrar shall keep at its office a bond register in which the Registrar shall provide for the registration of ownership of the Note and the registration of transfers and exchanges of the Note. (b) Transfer of Note. Upon surrender for transfer of the Note duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form reasonably satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, a new Note of a like aggregate principal amount and maturity, as requested by the transferor. Notwithstanding the foregoing, the Note shall not be transferred to any person other than an affiliate, or other related entity, of the Owner unless the City has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory to the City, that such transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. The Registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each Payment Date and until such Payment Date. (c) Cancellation. The Note surrendered upon any transfer shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (d) Improper or Unauthorized Transfer. When the Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Note or separate instrument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (e) Persons Deemed Owners. The City and the Registrar may treat the person in whose name the Note is at any time registered in the bond register as the absolute owner of the 2941780 MNI AL141-43 B-8 Note, whether the Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Note and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the City upon such Note to the extent of the sum or sums so paid. (0 Taxes, Fees and Charges. For every transfer or exchange of the Note, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee, or other governmental charge required to be paid with respect to such transfer or exchange. (g) Mutilated, Lost, Stolen or Destroyed Note. In case any Note shall become mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new Note of like amount, maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated Note or in lieu of and in substitution for such Note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case the Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. The Note so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the City. If the mutilated, lost, stolen, or destroyed Note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Note prior to payment. 3.04. Preparation and Delivery. The Note shall be prepared under the direction of the City Administrator and shall be executed on behalf of the City by the signatures of its Mayor and City Administrator. In case any officer whose signature shall appear on the Note shall cease to be such officer before the delivery of the Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. When the Note has been so executed, it shall be delivered by the City Administrator to the Owner thereof in accordance with the Agreement. Section 4. Security Provisions. 4.01. Pledge. The City hereby pledges to the payment of the principal of and interest on the Note all Available Tax Increment as defined in the Note. Available Tax Increment shall be applied to payment of the principal of and interest on the Note in accordance with the terms of the form of Note set forth in Section 2 of this resolution. 4.02. Bond Fund. Until the date the Note is no longer outstanding and no principal thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains unpaid, the City shall maintain a separate and special "Bond Fund" to be used for no purpose other than the payment of the principal of and interest on the Note. The City irrevocably agrees to appropriate to the Bond Fund on or before each Payment Date the Available Tax hncrement in 2941780 MNI AL141-43 B-9 an amount equal to the Payment then due, or the actual Available Tax Increment, whichever is less. Any Available Tax Increment remaining in the Bond Fund shall be transferred to the City's account for the TIT District upon the termination of the Note in accordance with its terms. 4.03. Additional Obligations. The City may apply or pledge Available Tax Increment in excess of the amount needed to make Payments due on each Payment Date, to any other obligations (including without limitation any interfund loan). Any such pledge or expenditure is subordinate to the Note, including the requirement to pay any accumulated deficiency in meeting scheduled Payments on the Note. Section 5. Certification of Proceedings. 5.01. Certification of Proceedings. The officers of the City are hereby authorized and directed to prepare and furnish to the Owner of the Note certified copies of all proceedings and records of the Authority, and such other affidavits, certificates, and information as may be required to show the facts relating to the legality and marketability of the Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. Section 6. Effective Date. This resolution shall be effective upon full execution of the Agreement. • 0 2941780 MNI AL141-43 B-10 E 0 Adopted this day of , 2006. CITY OF ALBERTVILLE, MINNESOTA Mayor ATTEST: City Administrator 294178v3 MNI AL141-43 B-11 4 SCHEDULE C CERTIFICATE OF COMPLETION • WHEREAS, the City of Albertville (the "City") and Schultz & Schupp, LLC ("Redeveloper") entered into a certain Contract for Private Redevelopment dated , 2006 ("Contract"); and WHEREAS, the Contract contains certain covenants and restrictions set forth in Articles III and IV thereof related to completing certain Minimum Improvements; and WHEREAS, the Redeveloper has performed said covenants and conditions insofar as it is able in a manner deemed sufficient by the City to permit the execution and recording of this certification; NOW, THEREFORE, this is to certify that all construction and other physical improvements related to the Minimum Improvements specified to be done and made by the Redeveloper have been completed and the agreements and covenants in Articles III and IV of the Contract have been performed by the Redeveloper, and this Certificate is intended to be a conclusive determination of the satisfactory termination of the covenants and conditions of Articles III and IV of the Contract related to completion of the Minimum Improvements (excluding Tenant Improvements), but any other covenants in the Contract shall remain in full force and effect. Dated: , 20 CITY OF ALBERTVILLE, MINNESOTA By: City Representative STATE OF MINNESOTA ) SS. COUNTY OF WRIGHT ) The foregoing instrument , 20 by of Albertville, on behalf of the City. This document drafted by: Kennedy & Graven, Chartered 470 US Bank Plaza Minneapolis, MN 55402 2941780 MNI AL141-43 was acknowledged before me this .the Notary Public _ day of of the City C-1 c i go C aECl o LO m n $� iQ N a) MN a a ga�o S Y o Cd M E fO Y £ o a JS o O Ao .v h G� 90 `o �i ZY I N L — —— —j- ,y 0a • , / S m IN I � I .0 N J � J O Z J Q I— :za- m J w C_Z Q z d ;J a aF J1�Z p �w Jl� �< w r w� pV� ww °a z o QQO IL 7 a x < <� .I Q o — _ W - N o — I IL—II`IIII I I —I �IOJ� J I E" 11 3 8 N O� O< IV p� N O 4ea pF wV�� w�� Jp w xa O uvJ� fJJ V�< NSR P JJ ry�pLL � w� W NkkYi 0 • 9 {OBIDe100{I'tb110800t1 'z�RHI�� '310N N30 ;SONIM"O 03,339X 0��ADDC9001 t\9N0O\PP00\00II\I°"°OwwoO-90\900Z\'.b :311YN 3111 ONIMtlN0 0 IF 8 3 r- `. 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UU<OxOoo'WZZ =�Q <'NaoNNlQQ."iiUw f— R02x 1 O W OO NxZ0 WK W Z 0Z owZ77 0 0 3 Z01 0; mkz O OzzO oO ��Poo op4m EoLo tii "�I 3aE oWw o� c oUUo zrm N Uoz<W. g Gn 0-I .t �'0oJ lj I (, Cv ri a vi 16 16 of .-A \ X" �\ O : S z �� p 952 . _. .� 950 948 W ZO O rr 8 m8 G�w - vs GT &�h If ey i � m i i m= i, i a(aidwoo "aPwlwrvn jOd �. 'seNlsej PPPrdY9 • • • v ..x a lip.. ... • • 0 Redevelopment Plan for TIF District No. 12- Eull Concrete City of Albertville TIF Plan Date: February 17, 2006 — Revised Version TIF Plan Adoption Date: SECTION 1 THE DEVELOPMENT PROGRAM • A. Modifications to the Development Program Development District No. 1 was first approved in April, 1981 and has been modified subsequently. Current modifications to the Development Program include budget revisions to coincide with the Finance Plan relating to Tax Increment Financing District No. 12. Proposed development within Municipal Development District No. 1 will be consistent with the goals, objectives and plans expressed by the Development Program. The current project relates to the redevelopment of property within the downtown area to facilitate construction of a commercial facility that will include a tenant or tenants that offer medical services and to address the need for additional off-street parking space. Certain costs associated with the proposed project are to be paid in part with tax increment funds. The City of Albertville has now determined that, in order to address the changing development needs throughout the community, it is in the public interest to provide for additional expenditures and development within Development District No. 1. This modified Development Program is intended to restate and expand on the original program and all prior amendments hereto, which are incorporated herein by reference. Nothing in this modification is intended to supersede or alter the activities described in the original Development Program. The current project is consistent with the established "Statement of Objectives" documented by Subsection 1.4 of the Development Program. The public improvement costs and development plans for Development District No. I have been described in detail by each Tax Increment Financing Plan authorized by the City of Albertville, which are incorporated herein by reference. The City of Albertville now anticipates additional public costs to be financed in part with tax increments expected to be generated by new development within Redevelopment Tax Increment Financing (TIF) District No. 12. Estimated costs and related data for such efforts are set forth in the TIF Plan for TIF District No. 12. The TIF Plan for TIF District No. 12 accompanies these modifications to the Development Program. The City of Albertville may acquire any parcels located within the Tax Increment Financing District or in Development District No. 1 as may be necessary to carry out the goals and objectives of the Development Program, including land for off-street parking. B. Development District No. 1 The current boundaries of Development District No. 1 are represented by map and identified as Exhibit No. 1. Modifications to the Development Program do not expand the current geographic designation of Development District No. 1. TIF District No. 12 is located within the current boundaries of Development District No. 1. Within Development District No. 1, the City of Albertville has previously established TIF District Nos. 1 through 11, inclusive. 0 • SECTION II TAX INCREMENT FINANCING PLAN FOR DISTRICT NO. 12 A. Foreword The City, staff and consultants have prepared the following information to expedite and create Redevelopment Tax Increment Financing District No. 12 (the "Tax Increment District"). The Tax Increment District lies within Development District No. 1 which was duly created in April, 1981 with subsequent modifications. The objectives of the City for the improvement of the Project Area are set forth in the modified Development Program for Development District No. 1. The Development Program for the project is also identified within the modified Development District No. 1 Plan. Proposed development within the Tax Increment District and Development District No. 1 will be consistent with the goals, objectives and plans expressed by the modified Development Project and Development Program for Development District No.1. The current project within the Tax Increment District proposes redevelopment of certain property within the downtown area to facilitate construction of a commercial facility that will include a tenant or tenants that offer medical services and to address the need for additional off-street parking space. • B. Use of Tax Increment Pursuant to Section 469.176, Subd. 4, of the Tax Increment Act, all revenues derived from the Tax Increment District shall be used in accordance with the tax increment financing plan. The revenues shall be used for the following purposes: 1. to pay the principal of and interest on bonds used to finance a project; 2. to finance or otherwise pay the capital and administration costs of the Development District pursuant to the Development District Act; 3. to pay for project costs as identified in the budget; and 4. to finance or otherwise pay for other purposes as provided in Section 469.176, Subd. 4, of the TIF Act. These revenues shall not be used to circumvent any levy limits. C. Excess Tax Increments Pursuant to Section 469.176, Subd. 2, of the Tax Increment Financing (TIF) Act, the City shall use the excess increments only to do one or more of the following: • 1. prepay any outstanding bonds; 2 2. discharge the pledge of tax increment therefor; 3. pay into an escrow amount dedicated to the payment of such bonds; or • 4. return the excess amount to the County Auditor for redistribution. The City of Albertville expects to spend all tax increment received and in accordance with the TIF Plan and consequently no excess tax increments are anticipated. D. Limitation of Increment Pursuant to the Tax Increment Financing (TIF) Act: 1. The proposed TIF District is a "redevelopment district" as defined by Section 469.174, Subd. 10. The City has determined that parcels constituting seventy percent (70%) of the area of the TIF District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than fifty percent (50%) of the buildings in the TIF District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. Furthermore, the City has determined that a single non-contiguous parcel of land within the TIF District that is currently owned by the Burlington Northern Santa Fee Railroad consists of vacant, unused and underused rail storage facilities and excessive railroad right-of-way. 0 At least fifteen percent (15%) of the area of each occupied parcel contains buildings, streets, utilities, paved or gravel parking lots or other similar structures, including the Railroad parcel. These findings are based upon an analysis by the City Building Official and others; the results of which are on -file in the office of the City Administrator and further identified by Exhibit No. 5. 2. The tax increment pledged to the payment of bonds and interest thereon may be discharged and the TIF District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. If, after four (4) years from the date of certification of the original net tax capacity value of the TIF District pursuant to Section 469.177 of the TIF Act, no demolition, rehabilitation or renovation of property or other site preparation, including improvement of a street adjacent to a parcel but not installation of an underground utility service, has been commenced on a parcel located within the TIF District by the City or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel, and the original net tax capacity value of that parcel shall be excluded from the original net tax capacity • value of the TIF District. If the City or the owner of the parcel subsequently • commences demolition, rehabilitation or renovation or other site preparation on that parcel, including improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the Authority shall certify to the County Auditor that the activity has commenced, and the County Auditor shall certify the net tax capacity value thereof as most recently certified by the Commissioner of Revenue and add it to the original net tax capacity value of the TIF District. For purposes of this subdivision, "parcel' means a tract or plat of land established as a single unit for purposes of assessment. 4. At least seventy-five percent (75%) of the revenue derived from tax increments paid by properties in the TIF District will be expended on "Activities" in each TIF District or to pay bonds, to the extent that the proceeds of the bonds were used to finance "Activities" in the TIF District or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than twenty-five percent (25%) of the revenue derived from tax increment paid by'properties in the TIF District will be expended, through a development fund or otherwise, on "Activities" outside of the TIF District, except to pay, or secure payment of, debt service on credit enhanced bonds. All administrative expenses are considered to be expended outside of the TIF District. 5. Pursuant to Section 469.1763, Subd. 3 of the TIF Act, revenues derived from tax increments will be considered as expended within the TIF District only if: (a) before or within five (5) years after certification of the TIF District, the revenues are actually paid to a "Third Party" with respect to the "Activity"; (b) bonds, the proceeds of which must be used to finance the "Activity", are issued and sold to a "Third Party" before or within five (5) years after certification, the revenues are spent to repay the bonds, and proceeds of the bonds either are, on the date of issuance, reasonably expected to be spent before the end of the later of (1) the five-year period, or (ii) a reasonably temporary period within the meaning of the use of that term under section 149 (c) (1) of the Internal Revenue Code, or are deposited in a reasonably required reserve or replacement fund; (c) binding contracts with a "Third Party" are entered into for performance of the "Activity" before or within five years after certification of the TIF District and the revenues are spent under the contractual obligation; or (d) cost with respect to the "Activity" are paid before or within five (5) years after certification of the TIF District and the revenues are spent to reimburse a party for payment of the costs, including interest on unreimbursed costs. For the purpose of this Subsection, bonds include subsequent refunding bonds if the original refunded bonds meet the requirements of the clause (b) above. 6. Beginning with the sixth year following certification of the TIF District, seventy-five percent (75%) of the revenues derived from tax increments paid by properties in the TIF District that remain after permitted expenditures will be used only to pay outstanding bonds; contracts, as defined in clauses 5(c) and 5(d); or certain enhanced bonds. When the outstanding bonds have been defeased and when sufficient money has been set aside to pay contractual obligations, the TIF District will be decertified and the pledge of tax increment discharged. M At least ninety percent (90%) of the tax increment derived from the TIF District will be used to finance the cost of correcting conditions that allow designation of a redevelopment district in accordance with Section 469.176, Subd. 4 (j). These costs include, but are not limited to, acquiring properties that contain structurally substandard buildings, demolition activities, installation of public utilities, roads, sidewalks and parking facilities. Pursuant to Minnesota Statutes, Section 469.175, Subd. la, the County Board may require the City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgment of Wright County, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads, it must notify the City within forty-five (45) days of receipt of this TIF Plan. 9. Minnesota Statutes, Section 469.1771, provides that the State Auditor shall enforce the TIF Act and the City will accept certain administrative responsibilities. A list will be maintained by the City to document all building permits issued within the TIF District. 10. Applicable Definitions (a) "Activities" means acquisition of property, clearing of land, site preparation, • soils correction, removal of hazardous waste or pollution, installation of utilities, construction of public or private improvements, and other similar activities, but only to the extent that tax increment revenues may be spent for such purpose under the law. (b) "Third Party" means an entity other than (1) the person receiving the benefit of assistance financed with tax increments, or (2) City or other person substantially under the control of the City. (c) "Tax increment" includes taxes paid by captured net tax capacity, but excluding any excess taxes; includes sale or lease proceeds of property that has been purchased by the City with tax increments; includes repayment of loans or other advances made by the City with tax increments; and includes interest or other investment earnings on or from tax increment. E. Limitation on Administrative Expenses Pursuant to Section 469.176, Subd. 3, of the Tax Increment Financing ("TIF") Act, no tax increment shall be used to pay any administrative expenses for the Tax Increment District which exceed ten percent (10%) of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the Tax Increment District, whichever is less. The City intends to retain the maximum allowable • administrative reimbursement permitted by the TIF Act. • F. Parcels for Acquisition 1. Any properties identified for acquisition will be acquired by the City only in order to accomplish one or more of the following: storm sewer improvements, provide land for needed public streets, utilities and facilities, carry out clearance and/or development to accomplish the uses and objectives set forth in this Tax Increment Financing Plan. 2. The City may acquire any or all of the parcels in the TIF District, including property currently owned by the Burlington Northern Santa Fee Railroad, by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this Tax Increment Financing Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. In lieu of direct acquisition, the City may also finance acquisition of any parcels in the TIF District by one or more developers. G. Estimate of Costs Estimated costs associated with TIF District No. 12 are subject to change. The City Council retains the authority to modify the itemized budget as may be necessary to accomplish the redevelopment program. Project costs related to the development which are eligible for assistance through the tax increment financing program are estimated and generally described as including land acquisition and other work related to accomplishing the redevelopment program. Costs incurred to construct public improvements including sanitary sewer, water, streets and storm drainage, related appurtenances and engineering; site improvements including grading, soil preparation, utility services, parking lots and landscaping; land acquisition; demolition and clearance activities; financing costs; and administration are activities that may be financed with tax increment financing assistance. The preliminary estimate of project costs is summarized below: Land Acquisition $ 250 000 Site Improvements $ 125,000 Financing Costs $ 334,400 Administration $ 37,100 Total Project Costs $ 746,500 The City of Albertville may use other potential revenues to finance project costs including special assessment revenues, local funds (City and County), interest earnings and other sources which may be become available. However, the costs listed above represent the amounts expected to be paid with tax increments/ Administrative costs are not expected to exceed ten percent (10%) of the lesser of tax increment expenses authorized by the tax increment financing plan or total tax increment expenditures. Administrative costs may include direct County Reimbursements, reporting costs, city staff time, and out-of-pocket expenses. The City reasonably expects the project will be developed within Development District • No. 1 beginning in 2006. The City expects to expend all tax increments received from TIF District No. 12. Further budget details are available from the City of Albertville, PC At this time, no contracts have been approved relating to public improvements and this is Increment Financing Plan. H. Use of Tax Increments Tax increments generated in the Tax Increment Financing District will be paid by Wright County to the City of Albertville for its Tax Increment Fund for said District. The City will use the tax increment funds in accordance with the provisions of the Tax Increment Financing Plan not to exceed the total estimated project costs. The City retains the right to use tax increments as a source of revenue to pay for financing expenses relating to project costs. When all authorized expenses have been paid, or other arrangements for payment have been made, all further increments, if any, will be used pursuant to this Tax Increment Financing Plan, including repayment to the City for any financial participation in the current project. In the future, the City may elect to modify the current budget authorization to capture and use tax increments that exceed projected amounts resulting from the proposed redevelopment project. I. Sources of Revenue for Public Costs Tax increment financing is one source of revenue for financing public costs. The City may also use special assessments, user charges and other sources to finance project costs. J. Estimate of Tax Increment The estimate of tax increment and assumptions are set forth in the following sections of this Tax Increment Financing Plan: Sections K, L, and M. K. Original Net Tax Capacity Value Pursuant to Section 469.177, Subd. 1, of the Tax Increment Act, the Original Net Tax Capacity Value ("ONTC") for Tax Increment District No. 12 is estimated to be $7,885 on all taxable real property within the Tax Increment District, which is the tax capacity as of January 2, 2006. Pursuant to Section 469.177, Subd. 1 and 2 of the Tax Increment Act, the County Auditor shall certify in each year the amount by which the original net tax capacity value has increased or decreased as a result of a change in tax exempt property within the Tax Increment District, reduction or enlargement of the Tax Increment District or changes in connection with previously issued building permits. In any year in which the current net tax capacity value of the Tax Increment District declines below the ONTC, no net tax capacity will be captured and no tax increment will be payable to the City. The City of Albertville intends to capture 100% of the tax increments that are generated for a period of not more than twenty-five (25) years from the date of first receipt assumed to begin in the year 2009. See "Section M" for further explanation. 0 • L. Current Net Tax Capacity Value The current net tax capacity value is the same as the original net tax capacity value estimated in Subsection K. M. Estimated Captured Net Tax Capacity Value/Increment Pursuant to Section 469.177, Subd. 1, 2 and 4 of the Tax Increment Financing Act and assuming the proposed commercial facility is substantially complete by year-end 2007, the estimated captured net tax capacity value in TIF District No. 12 as of January 2, 2008 (for 2009 collection), is estimated below. This estimate assumes that new construction is expected to be 100% completed and its value added to the TIF District by that time. Future Estimated Market Value (2008/09) $ 1,587,500 Current Estimated Market Value (2006/07) $ 435,950 Estimated Captured Market Value (2008/09) $ 1,151,550 Future Estimated Tax Capacity (2008/09) $ 31,000 Current Estimated Tax Capacity (2006/07) $ 7,885 Estimated Captured Tax Capacity (2008/09) $ 23,115 Current (TIF) Tax Rate (2005/06) 97.638 % Projected Tax Increment (2008/09) $ 22,569 Future Estimated Market Value TIF District No. 12 is expected to include the construction of a commercial facility of approximately 17,700 square feet. Including estimated tenant improvements, the TIF Plan assumes a building construction cost in the neighborhood of $2,200,000. For tax purposes, estimated market value is projected at approximately $90 per square foot. The final value will be determined based upon actual construction details and assessment practices of the Wright County Assessor. As a result of improvements made by tenants that occupy the proposed commercial facility, it is possible that the projected market value may exceed current projections. In that event, the City may choose later to modify the current budget authorization and finance additional redevelopment project costs; including acquisition and improvement of the property currently owned by the Burlington Northern Santa Fee Railroad. Current Estimated Market Value TIF District No. 12 is comprised of three (3) parcels. The total estimated market value of Parcel 101-500-011202 and Parcel 101-500-011226 is $419,200 (2006/07) and for the property owned by the Burlington Northern Santa Fee Railroad, $16,750 (2006). Future and Current Estimated Tax Capacity The current and future classification of the property within TIF District No. 12 assumes "Commercial" and is assigned a tax rate of 1.5% for the first $150,000 of estimated market value and a rate of 2% for all value in excess of $150,000. Orizinal Local Tax Rate/Inc re men t/Cashflow • The original local tax rate of 97.638 % represents the effective rate for 2005/06. The actual original local tax rate will be the rate established for the 2007 tax year which at this time is not known. The City expects to use 100% of the captured net payable tax capacity and the resulting increments, beginning in the 2009 collection year. See Exhibit No. 3 for further details of the projected financing scenario that assumes a 25-year period and a 100% captured value as of January 2, 2008. The actual amount of tax increment revenue generated by the proposed development may vary each year depending upon a number of factors and potential legislative changes to the property tax system, including tax increment financing. N. Tax Increment Financing Account for the Tax Increment Financing District The tax increment received with respect to the Tax Increment Financing District shall be segregated by the City in a special account or accounts on its official books and records. O. Duration of the District Pursuant to the Tax Increment Act, the duration of the Tax Increment Financing ("TIF") District within Development District No. 1 of the City will be no more than twenty-five (25) years after the date of receipt by the City of the first tax increment or the point at which the Tax Increment Financing Plan has been satisfied. The projected date of receipt by the City of the first tax increment is in 2009. The City anticipates that the duration of the TIF District may be the maximum permitted by law which would permit collection through 2034 if the first increment is received in 2009. If the first increment is received in 2008 (due to inflation), the last year of collection will be 2033. Exhibit No. 3 illustrates a 25-year term beginning in 2009 and ending in 2033 and the City of Albertville understands that the actual term may vary from the illustration. P. Taxine Jurisdictions For purposes of this projection, it is anticipated that the net captured value of the parcels included in the Tax Increment Financing ("TIF") District will remain stable from year to year after project completion and that the impact of tax increment financing on the net tax capacity values of all taxing jurisdictions in which the TIF District is located in whole or in part would also remain stable from year-to-year. Based on this assumption, it is anticipated that tax increments will be captured annually. The estimate is based on the qualifications identified in this report and does not include the possible tax increment derived from any other future development, tax capacity changes or inflation factors. Assuming a TIF Tax Rate of 97.638 % and that the total Estimated Captured Net Tax Capacity Value of the TIF District on January 2, 2008 is $23,115, the following fiscal impact analysis has been prepared: • E • 2006 Tax Rate 2005/06 Net Tax Capacity Wright County 33.04 % $ 106,178,099 City of Albertville 31.37 % $ 6,672,272 I.S.D. # 885 33.22 % $ 17,658,338 Total 2006 Tax Rate 97.63 % I.S.D. #885 comprised 34.025% of the 2006 TIF tax capacity rate, while Wright County comprised 33.840%. The City of Albertville made up 32.135% of the cumulative tax capacity levy for the taxing jurisdictions affected by the Tax Increment District proposal. A TIF tax capacity rate of 97.638% has been utilized in this Tax Increment Financing Plan. If the new taxes estimated within the TIF District are captured for the duration of the District, taxes and values will experience no change until termination of the District. If the new taxes upon completion were not captured (assuming the project could be done without tax increment financing) and by applying the 2006 Tax Rate for each jurisdiction, taxes (2008/09) would be distributed as follows: Wright County $ 7,637 City of Albertville $ 7,253 1.S.D. # 885 7,679 Total Tax Increment $22,569 The projected amount of captured tax capacity ($23,115) within the TIF District is a small amount compared against the total tax capacities of Wright County, the City of Albertville and I.S.D. # 885. Similarly, the projected amount of taxes to be generated within the TIF District is a modest amount compared to the overall taxes received annually by each taxing jurisdiction. The proposed project is not expected to significantly increase or decrease the demand for services provided by the City. Furthermore, the redevelopment project can be serviced by existing utility systems and consequently no negative impacts to public infrastructure are expected. At this point, other than issuing debt payable from tax increment financing, the City does not plan to incur new debt payable from revenue sources other than tax increments or by sources generated as a result of redevelopment activities within the TIF District; however, the City reserves the right to do so. Total Estimated Tax Increment/2 5 -Year Duration: $ 746,428 Total Estimated Tax Increments/2 5 -Year Duration —Albertville: $ 239,865 Total Estimated Tax Increments/2 5 -Year Duration — I.S.D. #885: $ 253,972 Total Estimated Tax Increments/2 5 -Year Duration — Wright County: $ 252,591 Beyond the information provided above and if requested to do so, the City will provide • further information to Wright County and/or I.S.D. 4885 officials relating to projected and anticipated fiscal and cost implications of the proposed redevelopment project. 10 Q. Annual Disclosure Requirements • Pursuant to M.S. Section 469.175, Subd. 5, 6, and 6b, the City must undertake annual and ongoing financial reporting for all tax increment financing districts to the Office of the State Auditor, the County Board and County Auditor and the School Board. The City intends to comply with applicable reporting requirements for this TIF District. R. Requirements for Agreements with the Developer Pursuant to Section 469.176, Subd. 5, of the Tax Increment Financing ("TIF") Act, no more than twenty-five percent (25%), by acreage, of the property to be acquired in the Tax Increment Financing District as set forth in the tax increment financing plan shall at any time be owned by the City as a result of acquisition with the proceeds of bonds issued pursuant to Section 469.178 to which tax increments from property acquired is pledged without the City having, prior to acquisition in excess of twenty-five percent (25%) of the acreage, concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the City should the development not be completed. Property may be acquired without a development agreement provided land acquisition is not funded by bonds secured by tax increments from the acquired property. S. Assessment Agreements The City is permitted to enter into a written assessment agreement in recordable form with the Developer of property within the Tax Increment Financing District which establishes a minimum market value of the land and completed improvements for the duration of the District. T. Sources of Revenue/Bonded Indebtedness Public improvement costs, acquisition, relocation, utilities, parking facilities, streets and sidewalks, site preparation, administration and other costs outlined in the cost budget will be financed primarily through the annual collection of tax increments. The City reserves the right to use other sources of revenue legally available to the City and the TIF Plan, including but not limited to special assessments, general property taxes, transportation state aids, land sale proceeds and other forms of public and private sector funding. The City may choose to authorize the financing of project costs with repayment coming from tax increment revenues. The principal amount of TIF obligations is not expected through any combination of bonds, notes or interfund loans (together, "TIF Obligations") to exceed $375,000, exclusive of interest and administration. This provision does not obligate the City to incur debt; it merely establishes the maximum principal amount of indebtedness that may be secured in whole or in part by tax increments. U. Assumptions and Analysis Certain assumptions have been made to anticipate future considerations relating to 11 • property tax legislation, the development schedule, project financing and costs. One or more of the assumptions may prove to be inaccurate and the City of Albertville retains the right to authorize changes as may be required to achieve the Development Program. V. Legal Description/Map/Parcel Number Legal Description: See Exhibit No. 2 (survey description "pending"). Parcel Identification Numbers: PID #101-500-011202 and 4101-500-011226. No known PID # currently exists for the parcel owned by the Burlington Northern Santa Fee Railroad. A map of the TIF District is provided as Exhibit No. 2. W. Reasonable Expectations As required by the Tax Increment Financing Act, in establishing the Tax Increment Financing District the determination has been made that the anticipated development and improvements would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. In reaching this . conclusion, reliance has been placed upon representations made by the Developer to such effects and upon awareness by City Officials of the feasibility of redeveloping the project site. See Section `Bb" (But -For Evaluation). • X. Building Permits Issued A building permit is expected to be issued in 2006 for construction activities within the Tax Increment Financing District. Y. Notification of Prior Planned Improvements The City shall, after due and diligent search, accompany its request for certification to the County Auditor, or its notice of Tax Increment Financing ("TIF") District enlargement with a listing of all properties within the TIF District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the tax increment financing plan by the City pursuant to Section 469.175, Subdivision 3, of the TIF Act. The County Auditor shall increase the original net tax capacity value of the TIF District by the net tax capacity value of improvements for which a building permit was issued. Z. Summary The City of Albertville is establishing the Tax Increment Financing District to facilitate redevelopment activities within the downtown area. 12 Aa. Business Subsidies To the extent applicable, the City of Albertville agrees to comply with M.S. Section 110993 to • 116J.995, which states that a local unit of government granting financial assistance to business for economic development or job growth purposes, including tax increment financing, must establish business subsidy criteria and approve a business subsidy agreement with the business receiving the assistance. The planned redevelopment project may be "exempt" pursuant to M.S. 116J.993, Subd. 3 (17) relating to redevelopment when the "Developer's investment in the purchase of the site and in site preparation is 70% or more of the assessor's current year's estimated market value." Bb. But — For Evaluation The primary purpose of this TIF District is to promote the redevelopment of property within the District that is underutilized, through construction of a professional office facility on a site occupied by a former concrete plant (the "Plant Site"), which has been vacant for over five years and is currently occupied by a substandard structure. The City has received only one prior redevelopment proposal for the Plant Site, and this prior proposal was abandoned by the applicant. The City has determined a need for increased commercial, office, and professional service facilities in the area, and increased parking facilities to serve such development. However, this development is not feasible without tax increment assistance based on analysis of material submitted to the City by the Redeveloper (on file at City Hall). Development of the Plant Site requires demolition of the existing building, along with additional costs for correction of soil conditions. The City therefore does not believe the proposed redevelopment is likely to occur without the assistance described in this TIF Plan. Moreover, the Redeveloper and its lender have stated that the costs of redevelopment of the site require projected commercial lease rates at • a rate roughly $2.00 per square foot or more than current market lease rates in the City. Without the assistance described in this TIF Plan, the Redeveloper will not be able to lease the commercial space at prices comparable to other facilities in the City. Further, redevelopment of the parcel currently owned by the Burlington Northern Sante Fe Railroad (the "Railroad Site") is more likely to occur if the Plant Site is redeveloped. The Railroad Site would be unlikely to be developed for any use on its own, given its current location between an active rail line and the substandard property on the Plant Site. However, development of the Plant Site will create an increased need for municipal parking close by. The City does not have available funds to acquire the Railroad Site without the use of tax increment. Therefore, the increment from the Plant Site is necessary to allow the City to acquire and redevelop the Railroad Site for use as municipal parking. For purposes of the "but -for" analysis, "site" means the Plant Site, which consists of the parcels on which the professional office building to be assisted with tax increment will be located. The City has determined that no other development is expected to occur on the site that would create a greater market value than the proposed affordable professional office building, after adjusting for the tax increment assistance. Analysis of the Plant Site shows that commercial use results in a greater increase in market value than manufacturing or industrial uses, and enhances property values of surrounding properties. Given the location of the property and the property's zoning classification, housing is not appropriate or likely for the Plant Site. Manufacturing and industrial uses would not likely increase value more than the proposed professional office building or perhaps even the value over the Plant Site's previous use. Despite the fact that the Plant Site has been vacant for many years, no other developer has followed through with plans for • redevelopment, likely due to the high costs associated with correction of soil conditions and 13 • redevelopment of the site. The City finds that without the use of tax increment financing, no other commercial development is likely to occur. • Likewise, analysis of the Railroad Site involves consideration of many of the same factors. The Railroad Site has been vacant for many years. Its location and zoning classification do not readily allow for housing, and no developers have come forward with plans for developing the site for commercial, industrial, or manufacturing uses. Because the Railroad Site is located next to an "active" rail line, the City's proposed use for the property as a municipal parking lot is the only development that is likely to occur on this site, and this use would not occur without tax increment generated by redevelopment of the Plant Site. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. If all of the development which is proposed to be assisted with tax increment were to occur in the District, the total increase in market value would be $1,551,550. The present value of tax increments from the District is estimated to be $137,529. For reasons described above, it is the Council's finding that no development with any significant market value is expected to occur in the foreseeable future without tax increment and other assistance; and that even if some development could occur, it would not create new market value of greater than $1,014,021. (See Cashflow in Exhibit No. 3 and project plans in Exhibit No. 4). 14 EXHIBIT NOA • EXHIBIT NO. 2 • Property ID: 101-500-011202 Legal Description: TH PRT OF NW IA OF NEI/4 DES COM SE COR OF LT4 BLK2 TWNSITE ALBERTVILLE TH S89D40'26"W ALG S LN OF SD BLK2 148.83FT TH SO I D40'07"W35.35FT TH RET NOID 40'07"E 3535FT TO S LN OF BLK2 TH N89D40'26"E ALG SD S LN& ITS ELY EXT 208.91 FT TO POB TH SO 1 D 12'37"W 34.16FT TH S22D 09'16"W 170.64FT TO NLY R/W OF RR TH S60D59'I8"E ALG NLY R/W LN 282.69FT TH N22D08'32"E 232.47FT TH N60D54'28"W 307.23 FT TO ELY WW LN OF ST ADJ TO BLK2 TH SO D05'28"W ALG SD ELY R/W LN 35.41 FT TO S LN&ITS ELY EXT OF BLK2 TH S89D40'26"W ALG S LN&ITS ELY EXT OF BLK2 .62FT TO POB Property ID: 101-500-011226 Oegal Description: TH PRT OF NW IA OF NEI/4 DES COM SE COR OF LT4 BLK2 TWNSITE ALBERTVILLE TH S89D40'26"W ALG S LN OF SD BLK2 148.83FT TH S O1D40'07"W 35.35FT TH RET NO1D 4010711E 35.35FT TO S LN OF BLK 2 TH N89D40'26"E ALG SD S LN& ITS ELY EXT 208.91FT TH SO1D 12'37"W 34.16FT TH S22D09' 16"W 170.64FT TO NLY R/W OF RR TH S 60D59' 18"E ALG NLY R/W LN 282.69FT TO POB TH N22D08'32"E 232.47FT TH N60D54'28"W 5.54FT TH NO1D06'32"E 26.88FT TH N80D 15'34"E 5994FT TI1 SOIDO6'32"W 330.50FT TO NLY R/W LN OF RR TH N60D59' 18"W ALG NLY R/W LN 155.49FT TO POB EXHIBIT NO. 3 0 TIF Period Tax Year Gross TIF Administration Net TIF Project TIF Surplus/(Deficit) Cumulative TIF 1 2009 $22,569 $1,128 $21,441 $21,441 $0 $0 2 2010 $23,077 $1,154 $21,923 $21,923 $0 $0 3 2011 $23,596 $1,180 $22,416 $22,416 $0 $0 4 2012 $24,127 $1,206 $22,921 $22,921 $0 $0 5 2013 $24, 670 $1, 233 $23, 436 $23, 436 $0 $118,039 6 2014 $25,225 $1,261 $23,964 $23,964 $0 $0 7 2015 $25,792 $1,290 $24,503 $24,503 $0 $0 8 2016 $26,373 $1,319 $25,054 $25,054 $0 $0 9 2017 $26,966 $1,348 $25,618 $25,618 $0 $0 10 2018 $27,573 $1,379 $26,194 $26,194 $0 $249,968 11 2019 $28,193 $1,410 $26,784 $26,784 $0 $0 12 2020 $28,828 $1,441 $27,386 $27,386 $0 $0 13 2021 $29,476 $1,474 $28,002 $28,002 $0 $0 14 2022 $30,139 $1,507 $28,632 $28,632 $0 $0 15 2023 $30,818 $1,541 $29,277 $29,277 $0 $397,422 16 2024 $31,511 $1,576 $29,935 $29,935 $0 $0 17 2025 $32,220 $1,611 $30,609 $30,609 $0 18 2026 $32,945 $1,647 $31,298 $31,298 $0 19 2027 $33,686 $1,684 $32,002 $32,002 $0 $0 20 2028 $34,444 $1,722 $32,722 $32,722 $0 $562,228 21 2029 $35,219 $1,761 $33,458 $33,458 $0 $0 22 2030 $36,012 $1,801 $34,211 $34,211 $0 $0 23 2031 $36,822 $1,841 $34,981 $34,981 $0 $0 24 2032 $37,650 $1,883 $35,768 $35,768 $0 $0 25 2033 $38,497 $1,925 $36,573 $36,573 $0 $746,428 Totals $746,428 $37,321 $709,107 $709,107 $0 $746,428 Gross TIF is increased annually by two and one -quarter percent (2.2501o). Administration equals five percent (5%) of Gross TIF. • E • EXHIBIT nit �ii �O Q lit I I co <Z f Y t�i E o o Elis C i d I I I( GL i I �1-JI1 1 / � 1 1 / o 1 h 4 v' ZftTZfvveZC�� V Q 1 � I 1 NLL1 � 1 Wp I 1 1 i i I � 1 _i R �4 b4 =a al 1 � � I I © I s r NO.4 i �r�wlro�� VvnV.• `Po��Mo+t�VwIN �w+�nu niww EXHIBIT NO. 5 • QUALIFICATIONS AND SUPPORT DOCUMENTATION FOR REDEVELOPMENT 1. Report by BRKW Appraisals, Inc. dated January 3, 2006. 5.2. Topographic Survey by Duffey Engineering and Associates, Inc. dated January 17, 2006. 5.3. Report of Geotechnical Explorations by Independent Testing Technologies dated May 14, 2004. 5.4. Phase I Environmental Assessment by EarthTech of Minnesota, Inc. dated May 25, 2004. 5.5. Eull Concrete Site Assessment b Bolton and Menk, Inc. dated March 2 2006. • Y , 5.6. Property Condition Assessment Summary by Jon Sutherland, Building Official dated March 2, 2006. • • EXHIBIT SA STATEMENT OF SUPPORTING FACTS FOR REDEVELOPMENT DISTRICT DETERMINATION REDEVELOPMENT TIF DISTRICT NO. 12 The following conditions exist within the area designated as the Redevelopment TIF District No. 12 ("TIF District"): The TIF District contains the following parcels, all of which are occupied by buildings or parking lots (parcels are deemed occupied if at least 15% of the area is occupied by improvements): PID #101-500-011202 — 1.52 acres. A building of approximately 5,920 square feet and approximately 30,350 square feet of gravel parking and access improvements exist on the site. The site is +/- 55% occupied. PID # 101-500-011226 - .64 acres. Approximately 19,100 square feet of the site is covered with gravel parking and access improvements. The site is +/- 68% occupied. sRailroad Parcel — 2.26 acres. Approximately 18,750 square feet of the property is covered with gravel parking and volleyball court improvements. The site is +/- 19% occupied. 2. The TIF District contains one building, which is currently vacant. The building is structurally substandard to a degree requiring substantial renovation or clearance. The cost of rehabilitation needed to meet current building codes would exceed 15% of the cost of constructing a new building of similar size and type on this site. These findings are based on an analysis of the building prepared on behalf of the City by all as summarized in on file in City Hall. The finding is based on both interior and exterior inspection. 0