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2015-06-15 CC Agenda Packet City of Albertville Council Agenda Monday, June 15, 2015 City Council Chambers 7:00 PM PUBLIC COMMENTS -The City of Albertville welcomes and encourages public input on issues listed on the agenda or of general community interest. Citizens wishing to address the Council regarding specific agenda items, other than public hearings are invited to do so under Public Forum and are asked to fill out a “Request to Speak Card”. Presentations are limited to five (5) minutes. M:\Public Data\City Council\Council Agendas\2015 Agendas\2015-06-15 CC Agenda.doc Meeting Date: June 15, 2015 1. Call to Order 2. Pledge of Allegiance – Roll Call 3. Recognitions – Presentations – Introductions 4. Public Forum – (time reserved 5 minutes) 5. Amendments to the Agenda 6. Consent Agenda All items under the Consent Agenda are considered to be routine by the City staff and will be enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed on the Consent agenda following the approval of the remaining Consent items. These items will be approved by a separate motion. A. Approve the June 1, 2015 regular City Council meeting minutes as presented (pgs 4-9) B. Authorize the Monday, June 15, 2015 payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been provided to City Council as a separate document and is available for public view at City Hall upon request (pg 10) C. Approve resurfacing the tennis and basketball courts at Linwood Park for $10,744. (pg 11) 7. Public Hearings – None 8. Department Business A. Planning/Legal – Old Castle Items 1). Old Castle Site Building Envelope, Inc. Site Plan, Building Plan, and Conditional Use Permit (pgs 12-30) (Motion to adopt Resolution Number 2015-024 Approving a Site Plan, Building Plan, and Conditional Use Permit for Deferred Parking for Scannell Properties #227 Located at Lot 1, Block 2, Barthel Industrial Park 2nd Addition within the City of Albertville.) Agenda Page 1 City of Albertville Council Agenda Monday, June 15, 2015 Page 2 of 3 M:\Public Data\City Council\Council Agendas\2015 Agendas\2015-06-15 CC Agenda.doc Meeting Date: June 15, 2015 2). Old Castle Tax Increment Financing (pgs 31-58) (Motion to approve Resolution 2015-025 Modifying the Development Program for Municipal Development District No. and Establishing Tax Increment Financing (Economic Development) District No. 17 Therein, and Approving a Tax Increment Financing Plan Therefor.) 3). Purchase and Development Contract (pgs 59-112) (Motion to approve Resolution 2015-026 Approving Purchase and Development Contract Between the City of Albertville, Scannell Properties #227, and Old Castle Building Envelope, Inc. and Approving the Business Subsidy Agreement and Conveyance of Land Contained Therein. 4). Interfund Loan (pgs 113-115) (Motion to approve Resolution 2015-027 Authorizing Interfund Loan for Advance of Certain Costs in Connection with Tax Increment Financing District No. 17 5). Release of 1979 Developer’s Agreement (pgs 116-121) (Motion to release the 1979 Developer’s Agreement Between the City of Albertville and Barthel Homes, Inc, Recorded as Document No. 342276 at the Wright County Recorder’s Office Related to the Development of Barthel Industrial Park.) B. City Clerk 1). Liquor License for El Bamba, 5986 Main Avenue NE (pgs 122-127) (Motion to approve a 3.2% Malt Liquor Licenses for El Bamba restaurant, 5986 Main Avenue NE contingent upon payment of liquor license fees, proof of liquor liability insurance, successful background check, and compliance with Temporary Certificate of Occupancy.) 2). Set July 20, 2015 Workshop C. City Council 1). Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.) D. Planning/Zoning 1). City Code Amendments Relating to Planning Commission and Parks Committee (pgs 128-140) • (Motion to adopt Ordinance No. 2015-04 Amending Title 2 Boards and Commissions, Chapter 2 Planning Commission.) • (Motion to adopt Ordinance No. 2015-05 Amending Title 2 Boards and Commission, Establishing Chapter 3, Parks Committee.) 2). Central Park Master Plan Amendments (pgs 141-150) (Motion to adopt Resolution No. 2015-028 Central Park Master Plan Park Amendments.) E. Public Works/Engineering - None Agenda Page 2 City of Albertville Council Agenda Monday, June 15, 2015 Page 3 of 3 M:\Public Data\City Council\Council Agendas\2015 Agendas\2015-06-15 CC Agenda.doc Meeting Date: June 15, 2015 F. Fire – None G. Finance – None H. Building – None I. Administration 1). Administrative Assistant/Building Permit Technician Position (pgs 151-156) (Motion to approve the job description and authorize advertisement for the Administrative Assistant/Building Permit Technician position.) 2). City Administrator’s Update (pgs 157-158) 9. Announcements and/or Upcoming Meetings June 22 Joint Powers Water Board, 6:30 p.m. July 2 City Offices Closed, Observance of Independence Day July 3 Public Works Closed, Observance of Independence Day July 6 City Council, 7:00 p.m. July 13 STMA Ice Arena- CANCELLED July 14 Planning Commission, 7;00 p.m. July 20 City Council, 7:00 p.m. July 27 Joint Powers Water Board, 6:30 p.m. JUNE Su M Tu W Th F Sa CC 1 2 3 4 5 6 7 Ice 8 PC 9 AFCD10 11 12 13 14 CC 15 16 17 18 19 20 21 JP 22 23 24 25 26 27 28 29 30 JULY Su M Tu W Th F Sa 1 H 2 H 3 4 5 CC 6 7 8 9 10 11 12 Ice 13 PC14 15 16 17 18 19 CC 20 21 22 23 24 25 26 JP27PK 28 29 30 31 10. Adjournment Agenda Page 3 Page 1 ALBERTVILLE CITY COUNCIL Monday, June 1, 2015 DRAFT MINUTES ALBERTVILLE CITY HALL 7:00 PM 1. CALL TO ORDER - PLEDGE OF ALLEGIANCE Mayor Hendrickson called the meeting to order at 7:02 p.m. 2. ROLL CALL Present: Mayor Hendrickson and Council members Hudson, Olson, Sorensen, and Vetsch Absent: None Others Present: City Attorney Mike Couri, City Planner Al Brixius, and Fire Chief Eric Bullen 3. RECOGNITIONS – PRESENTATIONS – INTRODUCTIONS - None 4. PUBLIC FORUM – (time reserved 5 minutes) Chris Loch, 5342 Kahler Drive NE, spoke to the Council with regard to traffic speeds and traffic safety along Kahler Drive NE, 53rd Street NE, and Karston Avenue NE. Mr. Loch indicated that the posted speed limit for these streets is 30 mph, however, the streets are designed with multiple S- curves that reduce sight lines along the streets which presents concerns for traffic safety for automobiles traveling the speed limit. He and his neighbors have witnessed numerous close calls between motorists and pedestrians, and motorists and residents, entering or exiting their lots. The neighborhood is comprised of young families with children and they are concerned that an accident will occur if speeds are not reduced and/or other traffic safety features are not implemented along this street. City Attorney Mike Couri explained that the 30 mph speed limit is set by the State for local streets. A lesser speed limit of 25 mph may be allowed by State Statutes for residential streets for a length of one-half mile of length or less. Mr. Loch questioned whether adding stop signs to three-way intersections would be an option. Council member Olson indicated that if stop signs are excessively used, motorists will tend to ignore these signs with rolling stops. This gives a false sense of security. Council member Vetsch suggested having a Sheriff Deputy periodically park in the neighborhood to catch speeders. He stated that their presence will deter speeders and slow down traffic. DRAFTAgenda Page 4 City of Albertville Council Agenda Monday, June 1, 2015 Page 2 of 6 City Council Meeting Minutes Page 2 Regular Meeting of June 1, 2015 Mayor Hendrickson stated the Council will bring this issue to the attention of the City Administrator/Engineer and ask him for some options to deal with this issue. Once he has time to examine the issue, the Council could discuss it an upcoming workshop. Council thanked Mr. Loch for bringing this issue to their attention. 5. AMENDMENTS TO THE AGENDA The agenda was amended to add Resignation Letter for Building Tech position. Motioned by Hendrickson, seconded by Olson, to approve the Agenda as amended. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 6. CONSENT AGENDA All items under the Consent Agenda are considered to be routine by the City staff and will be enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed on the Consent agenda following the approval of the remaining Consent items. These items will be approved by a separate motion. A. Approve the May 18, 2015 regular City Council meeting minutes as presented B. Authorize the Monday, June 1, 2015 payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been provided to City Council as a separate document and is available for public view at City Hall upon request Motioned by Hendrickson, seconded by Vetsch, to approve the Consent Agenda as presented. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 7. PUBLIC HEARINGS – None 8. DEPARTMENT BUSINESS A. City Council 1). Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, etc.) There were no updates. B. Fire 1). Fire Update There were no questions on the update. 2). Emergency Operations Plan Bullen reported that Wright County recently updated their Emergency Operations Plan. The County’s Emergency Management Division and Chief Bullen agreed that it would be appropriate for DRAFTAgenda Page 5 City of Albertville Council Agenda Monday, June 1, 2015 Page 3 of 6 City Council Meeting Minutes Page 3 Regular Meeting of June 1, 2015 the City of Albertville to adopt the Wright County Plan. He indicated it may be helpful if there is a future emergency incident and the plan could help with federal funding or mutual aid. Vetsch inquired about the details of the plan and Bullen responded that the plan is quite lengthy and addresses a lot of FEMA guidelines. Each city in Wright County has their own section in the plan and there is a resource list the cities can use. Bullen clarified the federal government wants the smallest unit available to deal with emergency incidents. He explained Albertville would still oversee emergency incidents at the City level, but Wright County has additional resources the City may not. The plan has vetted out potential contractors for cities to use in an emergency incident. He indicated that adopting the plan essentially puts the paperwork in a starting place to request federal funding if needed during an emergency incident, increasing the odds of receiving funding, compared to if the City did not have an adopted plan in place. Olson inquired if the adoption of this plan is for an interim amount of time. Bullen replied that Wright County has already identified several locations within Albertville as possible hazardous sites. He stated that if Albertville were to develop their own plan, it would contain many redundancies which are already in the Wright County Emergency Operations Plan. Hudson stated he would like to review the plan to see if there are any areas of concern specific to Albertville. Bullen indicated they could review the plan annually and adopt the plan annually if needed. Hendrickson explained that part of the new Fire Chief’s position was to address an Emergency Preparedness Plan as there were concerns the City did not have one adopted. Vetsch indicated he was supportive of coordinated efforts, but had concerns that the City could be billed. Bullen replied the City of Albertville is covered under the plan regardless and there is no cost associated with adopting the plan. Couri stated there is no legal basis for the County to ask the City for a fee relating to the plan. Motioned by Sorensen, seconded by Olson, to approve Resolution 2015-023 adopting the Wright County Emergency Operations Plan. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. Bullen informed the City Council that he and Public Works Supervisor Guimont attended a workshop and learned the cities of Albertville and Otsego do not have mutual aid agreements for their Public Works equipment. Eight cities including St. Michael and Rogers do have mutual aid with several other cities. He stated the City may want to consider entering a mutual aid agreement with either Otsego or the other cities. C. Legal 1). Joint Powers Fire Agreement Couri reported there are several main issues that would need to be resolved if the City were to enter into a Joint Powers Fire Agreement. The purpose of the memo outlining the issues is to give the Albertville City Council members that serve on the Fire Board an idea how the entire Council views the issues. DRAFTAgenda Page 6 City of Albertville Council Agenda Monday, June 1, 2015 Page 4 of 6 City Council Meeting Minutes Page 4 Regular Meeting of June 1, 2015 Vetsch inquired about State Fire Aid. Bullen stated that State Aid would only change if the structure of the Fire Department changed (more firefighters) or an increase in area coverage. Hudson stated that it is important they realize this is a long term commitment and even though they may wish to include a way to exit the Joint Powers Fire Agreement, they should not plan for failure. He would like to find a way to ensure they are looking out for the best interest of the entire area that is covered, similar to a fire district, and not what is just best for each City. He inquired how the representation for the Joint Powers Fire Board would be constructed. Couri stated that the Board could set their own budget or the cities could. He suggested that elected officials make up the Board with two members each and a fifth member of a third party that could break any tie votes. Council discussed the make up the representation of the possible Board. Couri stated they must have some mechanism in place that can resolve tie issues as they may have to move quickly on some issues. Hudson stated there is a check system in place to prevent unrealistic budget requests if elected officials make up the Joint Powers Fire Board, as the elected officials will be up for election and will be hearing from taxpayers and members of the community. Sorensen agreed that they are rated by how the budgets are set. Bullen stated the largest goal is the service provided. Hudson stated he would like the Board to operate as one entity. Couri suggested they have some type of comprehensive plan to guide the Board. Hendrickson left the meeting at 7:40 p.m. Olson inquired how the agreement would be drafted. Couri stated Albertville cannot draft the agreement, it should be members of both cities, ideally the members of the current Fire Board. Sorensen inquired if the Albertville Fire Board members could present these issues at the next Fire Board meeting and Couri stated it would be a good idea to let the Fire Board know of these potential issues in advance of the next meeting. Brixius stated that right now Albertville is the service provider and they do not know what the service expectations are that Otsego has and suggested they inquire of Otsego what their needs are. He stated they could start with broader topics and work back towards the details, such as a setting a budget. Couri reiterated this will be a long process. 2). City Attorney Report Couri reported there will be another closing on a Prairie Run lot. Couri stated he received a call from a lawyer working for Westbridge Church and he believes the attorney is working to help Westbridge through the re-zoning process with the City of Albertville. Old Castle Building Envelope will be expanding on a City-owned lot the City has offered them and staff will be presenting the item at the next Council meeting for approval. D. Finance – None E. City Clerk – None DRAFTAgenda Page 7 City of Albertville Council Agenda Monday, June 1, 2015 Page 5 of 6 City Council Meeting Minutes Page 5 Regular Meeting of June 1, 2015 F. Public Works/Engineering – None G. Planning/Zoning – None H. Building – None I. Administration 1). Resignation Letter Olson reported that the City Administrator received a resignation letter from Sue Schwalbe, the current Building Permit Technician/Administrative Assistant. Olson stated that he asked the Administrator to evaluate the position prior to advertising it. Couri explained that any changes to the position would need to come back to the Council. Olson stated the Administrator mentioned hiring temporary help in the interim. Hudson inquired about the compensation for temporary. Couri replied the cost for temporary help would most likely fall within the already budgeted compensation for the position. Motioned by Olson, seconded by Sorenson, to accept the letter of resignation and authorize hiring of temporary help. Ayes: Vetsch, Hudson, Olson, and Sorenson. Nays: None. Absent: Hendrickson. MOTION DECLARED CARRIED. 2). City Administrator’s Update The Council discussed the number of applications for the Public Works position that was advertised and were surprised they received 114 applications. Couri stated there were discussions in the past to put utilities in the Greenhaven streets and reconstruct the road. He stated that the cost to do so and the assessments that would be associated with it would be too great to do the project at this time. 9. ANNOUNCEMENTS AND/OR UPCOMING MEETINGS June 2 Parks Committee, 8:00 p.m. June 8 STMA Ice Arena Board, CANCELLED June 9 Planning Commission, 7:00 p.m. June 10-14 Friendly City Days June 15 City Council, 7:00 p.m. June 22 Joint Powers Water Board, 6:30 p.m. July 2 Independence Day Observed, City Hall Closed July 3 Independence Day Observed, Public Works Closed July 6 City Council, 7:00 p.m. July 13 STMA Ice Arena Board, CANCELLED July 14 Planning Commission, 7:00 p.m. July 20 City Council, 7:00 p.m. July 27 Joint Powers Water Board, 6:30 p.m. DRAFTAgenda Page 8 City of Albertville Council Agenda Monday, June 1, 2015 Page 6 of 6 City Council Meeting Minutes Page 6 Regular Meeting of June 1, 2015 JUNE Su M Tu W Th F Sa CC 1 2PK 3 4 5 6 7 Ice 8 PC 9 AFCD10 11 12 13 14 CC 15 16 17 18 19 20 21 JP 22 23 24 25 26 27 28 29 30 JULY Su M Tu W Th F Sa 1 H 2 H 3 4 5 CC 6 7 8 9 10 11 12 Ice 13 PC14 15 16 17 18 19 CC 20 21 22 23 24 25 26 JP27 28 29 30 31 10. ADJOURNMENT Motioned by Hudson, seconded by Olson, to adjourn the meeting at 8:15 p.m. Ayes: Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: Hendrickson. MOTION DECLARED CARRIED. Respectfully submitted, ___________________________________ Kimberly A. Olson, City Clerk DRAFTAgenda Page 9 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\061515\2015-06-15 Finance Bills Report (RCA).doc Meeting Date: June 15, 2015 June 11, 2015 SUBJECT: CONSENT - FINANCE – PAYMENT OF BILLS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Authorize the Monday, June 15, 2015 payment of the claims as presented except the bills specifically pulled, which are passed by separate motion. The claims listing has been provided to Council as a separate document. The claims listing is available for public viewing at City Hall upon request. BACKGROUND: The City processes claims on a semi-monthly basis. The bills are approved through their respective departments and administration and passed onto the City Council for approval. KEY ISSUES: • Account codes starting with 810 are STMA Arena Expenses/Vendors (bolded) and key issues will be presented in the claims listing document. POLICY/PRACTICES CONSIDERATIONS: It is the City’s policy to review and approve payables on a semi-monthly basis. FINANCIAL CONSIDERATIONS: City staff has reviewed and recommends approval of payments presented. LEGAL CONSIDERATIONS: The Mayor and Council have the authority to approve all bills pursuant to Minnesota State Law, which requires all bills to be paid in a timely manner, generally within 30 days unless one party determines to dispute the billing. Responsible Person: Tina Lannes, Finance Director Submitted through: Adam Nafstad, City Administrator-PWD Attachment: List of Claims (under separate cover) Agenda Page 10 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\061515\2015-06-15 Linwood Courts.doc Meeting Date June 11, 2015 June 11, 2015 SUBJECT: CONSENT - PARKS - LINWOOD PARK TENNIS AND BASKETBALL COURT RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve resurfacing the tennis and basketball courts at Linwood Park for $10,744. BACKGROUND: The courts are eleven years old and are in need of resurfacing. The courts have not been resurfaced since they were installed. The work proposed includes removing existing painted surface, patching, and resurfacing of the two courts. KEY ISSUES: • The courts are heavily used and currently in poor condition • The Parks Committee has recommended this project FINANCIAL CONSIDERATIONS: Staff has received three quotes for this project. Surface Pro from Anoka submitted the lowest quote in the amount of $10,744. Improvements and repairs such as this project are budgeted for annually. This project will be paid for with 2015 Park Improvement funds. LEGAL CONSIDERATIONS: The Mayor and City Council have the authority to authorize improvements. Responsible Person/Title Tim Guimont, Public Works Supervisor Submitted through: Adam Nafstad, City Administrator-PWD On File: Quotes for Resurfacing Agenda Page 11 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\061515\OLD CASTLE\A_Planning Oldcastle Glass - RCA.docx Meeting Date: June 15, 2015 June 15, 2015 SUBJECT: PLANNING - SITE AND BUILDING PLAN REVIEW. CONDITIONAL USE PERMIT FOR SCANNELL PROPERTIES #227 FOR PROPERTY LOCATED AT LOT 1 BLOCK 2 BARTHEL INDUSTRIAL PARK 2ND ADDITION. RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following motion: MOTION TO: Adopt Resolution Number 2015-024 Approving a Site Plan, Building Plan, and Conditional Use Permit for Deferred Parking for Scannell Properties #227 Located at Lot 1, Block 2, Barthel Industrial Park 2nd Addition within the City of Albertville BACKGROUND INFORMATION: Oldcastle Building Envelop is a manufacturing company currently operating in the City of Albertville. Oldcastle produces architectural glass for buildings across the country. In 2015, Oldcastle approached the City to explain their needs for a warehouse and manufacturing facility. The City has offered to locate a new building for them on a City-owned lot (Lot 1, Block 2, Barthel Industrial Park 2nd Addition). Scannell Properties #227 LLC has filed application with the City for site and building plan approval to allow the construction of a 33,750 square foot industrial building on Lot 1, Block 2, Barthel Industrial Park 2nd Addition and to leased by Oldcastle. Scannel is also requesting a conditional use permit to allow deferred parking. The City Code requires 62 parking spaces, however, Oldcastle has a much lower parking demand. The conditional use permit will allow for the construction of 31 parking stalls with 35 stalls reserved through proof-of-parking. KEY ISSUES: Comprehensive Plan - The City of Albertville has clearly established industrial park development and economic development as a top priority. The proposed expansion is consistent with the City’s Vision Study goals to retain and expand the City’s industrial land use, tax base, and local employment opportunities. Zoning - The subject site is zoned I-1, Limited Industrial. Oldcastle manufactures and warehouses glass for buildings. Within the I-1 District, manufacturing, office, and warehousing are permitted uses. The Oldcastle operation is allowed within the I-1 Zoning District. The site meets all the lot area, width, and setbacks requirements of the I-1 zoning district. Trash Enclosure - The site plan indicates two roll-off dumpsters on the west side of the building with no enclosure around the dumpsters. The applicant has request screening the recycling and trash equipment via landscaping at the periphery of the site rather than a structural trash enclosure. The planning commission was agreeable to this site plan change. Agenda Page 12 Mayor and Council Request for Action – (June 15, 2015) Oldcastle Building Envelope Site and Building Review Page 2 of 2 M:\Public Data\City Council\Council Packet Information\2015\061515\OLD CASTLE\A_Planning Oldcastle Glass - RCA.docx Meeting Date: June 15, 2015 Parking - By ordinance, the proposed building uses are required to provide 62 parking stalls. The site plan provides 31 parking stalls with the initial construction and shows 35 proof of parking stalls. The applicant has applied for a conditional use permit for 35 proof-of-parking stalls. The applicant has indicated that the proposed 31 stalls far exceeds the necessary number that the business will need. Therefore, the applicant has requested a conditional use permit to reduce the number of required stalls. The parking lot design meets the dimensional and design standards of the city. Truck and Trailer Parking - The applicant wants to have semi-trailers stored along the west side of the building. Within the I-1 Zoning District, semi-truck and trailer parking are permitted accessory uses. To allow this trailer parking, the site shall be striped into trailer parking stalls to delineate the location, number, and size of the trailers parked in these areas. This area shall be used exclusively for the parking of semi-trailers. Landscape Plan - The landscape plan addresses both the building perimeter and the periphery of the lot. The landscape plan meets the standards of the City Code. Additional tree planting will be required to screen the trash and recycling equipment in lieu of a structural trash enclosure. Planning Commission Findings - Upon review of the staff report and hearing public testimony, the Planning and Zoning Commission recommended that the City Council approve the Site plan, and building plan, for an industrial building and conditional use permit for deferred parking subject to conditions outlined in Resolution No. 2015-00x. POLICY CONSIDERATIONS: In accordance with State Law, public notice was published and a public hearing held on June 9, 2015 by the Planning Commission for the Site and Building Plan Review and the Conditional Use Permit application. The Commission recommended that the City Council approve the resolution with the conditions outlined in the attached resolution. FINANCIAL CONSIDERATIONS: The proposed site is currently owned by the City of Albertville. The City would sell the property to Scannell Properties #227 who would build the building and lease it to Oldcastle Building Envelope. The applicant shall be responsible for all costs associated with any enforcement related to the conditional use permit. There are no significant financial issues related to the Conditional Use Permit. LEGAL CONSIDERATIONS: In accordance with Council procedures, the Mayor and Council have the authority to issue the conditional use permit, and approve the site plan and building plan which requires a majority vote of the City Council and becomes effective upon publication. Responsible Person/Title: Alan Brixius/City Planner Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Resolution No. 2015-024 Planning Report dated June 3, 2015 City Engineer Comments Agenda Page 13 PLANNING REPORT TO: Adam Nafstad FROM: Alan Brixius / Ryan Grittman DATE: June 3, 2015 RE: Albertville – Oldcastle Site and Building Review FILE NO: 163.06 – 15.07 BACKGROUND Oldcastle is a manufacturing company currently operating in the City of Albertville. Oldcastle produces architectural glass for buildings across the country. In 2015, Oldcastle approached the City to explain their needs for a warehouse and manufacturing facility. The City has offered to locate a new building for them on a City- owned lot (Lot 1, Block 2, Barthel Industrial Park 2nd Addition). Scannell Properties #227 LLC has filed application with the City for site and building plan approval to allow the construction of a 33,750 square foot industrial building on Lot 1, Block 2, Barthel Industrial Park 2nd Addition. This building will be leased by Oldcastle. Scannell is also requesting a conditional use permit to allow deferred parking. The City Code requires 62 parking spaces, however, Oldcastle has a much lower parking demand. The conditional use permit will allow for the construction of 31 parking stalls with 35 stalls reserved through proof-of-parking. The subject property is zoned I-1 and is presently an empty lot. The site plan proposes a 33,750 square foot building. Attached for reference: Exhibit A: Site Location Exhibit B: Site Plan Exhibit C: Grading Plan Exhibit D: Utility Plan Exhibit E: Floor Plan Exhibit F: Building Elevations Exhibit G: Landscape Plan Agenda Page 14 ISSUES ANALYSIS Comprehensive Plan. The promotion and expansion of Albertville’s local industries is consistent with the City’s long range Comprehensive Plan. The City’s Vision Plan establishes the following goals and policies that support this industrial expansion: Albertville Visioning Study 2012 - Industrial Goal 1: Promote continued industrial development in order to expand local employment opportunities and the City’s tax base. Policies: 1. Pursue an industrial land use pattern consistent with Albertville’s Proposed Land Use Plan. 2. Aggressively market and promote the sale of its City-owned industrial lots. Primary focus shall be the retention and in-place expansion of Albertville’s existing industries. The City of Albertville has clearly established industrial park development and economic development as a top priority. Expansion of Oldcastle falls in line with the City’s goals. The proposed expansion is consistent with the City’s Vision Study goals to retain and expand the City’s industrial land use, tax base, and local employment opportunities. The marketing and development of the City-owned lots are an identified priority of the Albertville Vision Study. Zoning. The subject site is zoned I-1, Limited Industrial. Oldcastle manufactures and warehouses glass for buildings. Within the I-1 District, manufacturing, office, and warehousing are permitted uses. The Oldcastle operation is allowed within the I-1 Zoning District. Lot Area and Setbacks. The proposed site is approximately 3.20 acres in area and has a lot width of 515 feet. The lot width exceeds the I-1 District standards. The site is a corner lot. The following table illustrates that the proposed building meets the setbacks: Required Proposed Compliant Front Yard (south) 35 feet 35 feet Yes Side Yard on Street (east) 35 feet 170 feet Yes Side Yard Interior (west) 10 feet 140 feet Yes Rear Yard (north) 20 feet 65 feet Yes Maximum Site Coverage. Within the I-1 District, total hard cover is limited to 85%. The total lot area is 3.20 acres and total hard cover is estimated to be 76,962 square Agenda Page 15 feet or approximately 55.1% of the total lot area. The maximum site coverage is in compliance with City Code. Maximum Building Height. The City recently amended its industrial zoning districts to allow for industrial buildings of 48 feet in height. The building height will be approximately 29 ½ feet, which is in compliance with City Code. The site plan includes a roof plan. However, the roof plan does not indicate any equipment to be located on the roof. If equipment is to be located on the roof, a plan shall be submitted which will include type of equipment and equipment height. The equipment shall be screened from view. Screening shall match the building. Building Type and Design. Exhibit F illustrates the proposed building elevations. Please note the use of glass to enhance the building’s aesthetic. Oldcastle intends to showcase their products with their building design. The exterior materials of the building will consist of precast concrete panels and glass panels and windows. The exterior finishes exceed the City’s architectural design standards. The site plan indicates that the entire building will be sprinkled and have a Fire Department connection on the east side of the building. No parking shall be allowed in front of the Fire Department connection to allow Fire Department access. Site Lighting. The site plan includes a photometric plan that indicates lighting will be included in the parking lot; the south portion of the property; and the west portion of the property. However the photometric plan does not specifically indicate the types of fixtures. The lighting shall be hooded at 90 degrees as to not reflect light onto adjacent property. In the case of wall pack lighting, the fixtures must be 90 degree cutoff lights with a shielded light source. The applicant must provide cut sheets on the light fixtures to demonstrate the 90 degree cutoff. Staff is concerned that the lighting will not be enough. Trash Enclosure. Section 1000.14 requires all commercial and industrial properties to either store trash or recycling handling equipment within the building or within an exterior trash enclosure designed to match the building. The site plan indicates two roll-off dumpsters on the west side of the building with no enclosure around the dumpsters. The site plan includes a landscape berm to the south and west as screening from the street and adjacent property to the west. The applicant must provide trash enclosures to contain all trash handling and recycling equipment. Trash enclosures must be constructed of materials to match the building in accordance with Section 1000.14 of the Zoning Ordinance. Parking. Based on City parking standards, the following parking calculations have been prepared: Agenda Page 16 Net Floor Space Required Spaces Office Use ( 2,215 – 10%) ÷ 200 + 3 = 13 Manufacturing (11,285 – 10%) ÷ 350 = 30 Warehouse (20,250 – 10%) ÷ 1,000 = 19 Total Required: 62 Total Proposed: 31 By ordinance, the proposed building uses are required to provide 62 parking stalls. The site plan provides 31 parking stalls, which is non-compliant. The site will have two disability parking stalls which is appropriate for a 31 stall parking lot. The parking lot design is properly dimensioned with 9 foot by 20 foot parking stalls and drive aisles 24 feet or wider. The parking lot will be paved and have concrete perimeter curbing. The applicant has applied for a conditional use permit for 35 proof-of-parking stalls. The applicant has indicated that the proposed 31 stalls far exceeds the necessary number that the business will need. Therefore, the applicant has requested a conditional use permit to reduce the number of required stalls. As a condition of the conditional use permit, if on-street parking or parking on-site outside of designated parking stalls becomes a regular occurrence at the subject site, the applicant shall be required to install the remaining parking spaces on the site plan upon notice of the City. Truck and Trailer Parking. The applicant wants to have semi-trailers stored along the west side of the building. Within the I-1 Zoning District, semi-truck and trailer parking are permitted accessory uses. To allow this trailer parking, the site shall be striped into parking stalls to delineate the location, number, and size of the trailers parked in these areas. This area shall be used exclusively for the parking of semi-trailers. Loading Area. The Albertville Zoning Ordinance requires industrial buildings in excess of 10,000 square feet of floor area to provide a minimum of two off-street loading areas. The applicant’s site plan shows two overhead doors along the west side of the building. The western loading area is designed for large trucks and semi-trailers providing approximately 120 feet of maneuvering area between the building and the west edge of the pavement. The truck turnaround area on the west side of the building creates ample space for clearance and maneuverability. The loading area is properly dimensioned to meet City Code. Landscape Plan. Exhibit G is the applicant’s landscape plan. The plan addresses both the building perimeter and the periphery of the lot. In review of the landscape plan, we offer the following comments: Agenda Page 17 1. All landscaped areas will be irrigated. 2. The selected plant materials, both deciduous and coniferous, are hardy for Minnesota climate. 3. The front parking lot will be screened from the street with the planting of a hedge. This screening is adequate. 4. The applicant is using a combination of earth berms, Black Hills Spruce, and crabapple trees to screen the loading area from 52nd Street. This screening is adequate. 5. Snow storage will be provided at the north end of both the parking and loading areas. The landscape plan meets the standards of the City Code. Grading and Utilities. The City Engineer has reviewed the site grading and drainage plans. Approval of the site and building plans shall be subject to compliance with the City Engineer comments. Easements. There is currently a 30 foot drainage and utility easement that extends along the west lot line of the subject site. The applicant proposes to extend their loading area pavement and some landscaping into this easement. In discussions with staff, the arrangement will not interfere with the function of the easement and is acceptable. The applicant must recognize that the City will continue to use this easement as appropriate. Any disruption of private improvements within this easement, as a result of City work, shall be restored at the expense of the property owner. CONCLUSION AND RECOMMENDATION Based on our review of the plans submitted on behalf of Oldcastle dated May 19, 2015, we recommend approval of the site and building plans and conditional use permit for deferred parking with the following conditions: Site and Building Plans. 1. The site and building plan illustrate a “striped-out” area on the parking lot next to the Fire Department connection to prevent obstruction from automobile parking. 2. The applicant provide cut sheets of all exterior light fixtures to demonstrate that they meet the City’s 90 degree cutoff standard. 3. The applicant must identify any building roof top equipment and provide screening to meet the City Code. Agenda Page 18 4. The site plan must include a trash enclosure for trash receptacles that meets the requirements of Section 1000.14 of the Zoning Ordinance. 5. The City reserves the right to access its drainage easement on the west side of the property without warning and at the property owner’s expense. 6. The truck and trailer parking stalls shall be striped and clearly marked as truck and trailer parking. The area must also indicate that no other outdoor storage or parking is allowed. 7. Subject to comments of the City Engineer. Conditional Use Permit. 1. The City approves the site plan providing 31 parking stalls and 35 proof-of- parking stalls. 2. If the parking associated with this site occurs on-street or in areas of the lot not designed for parking, the City may require the property owner to construct a portion or all of the proof-of-parking area as a condition of this conditional use permit approval. c: Kim Olson Sue Schwalbe Paul Heins Mike Couri Scannell Properties #277 LLC, Dan Salzer, 821 Meander Court, Suite 120, Medina, MN 55340 Oldcastle Building Envelope, 5334 Barthel Industrial Dr. NE, Albertville, 55301 Agenda Page 19 EXHIBIT AAgenda Page 20 EXHIBIT BAgenda Page 21 MARLOWE AVE. NEOFFICEFFE = 953.0(33,750 SF)30 GRADEBREAKGRADEBREAK9509509559489505'946.9952.5946.4946.18946.0951.5951.5952.62TC 952.7G 952.7TC 952.65G 952.65TC 952.33G 952.33TC 952.4G 951.9951.4948.8951.5951.2949.5952.85952.75952.8952.7952.5952.5952.4952.5951.2951.2951.2951.75 EO952.7953.12953.0947.6 EO949951952954951 953947 C301ENGINEERINGSURVEYINGENVIRONMENTALPLANNINGEVS, INC.10025 Valley View Road, Suite 140Eden Prairie, Minnesota 55344Phone: 952-646-0236Fax: 952-646-0290www.evs-eng.comSHEET NUMBERDRAWN BY CHECKED BYDATE PROJECT # # DATE REVISIONSHEETLOCATIONPROJECT05.19.2015 2015-028Alberville, MinnesotaPreliminaryCLIENTScannell PropertiesOld CastleI HEREBY CERTIFY THAT THISPLAN, SPECIFICATION, ORREPORT WAS PREPARED BY MEOR UNDER MY DIRECTSUPERVISION AND THAT I AM ADULY LICENSED PROFESSIONALENGINEER UNDER THE LAWS OFTHE STATE OF MINNESOTA.___________________David NashDATE 05/ 19/ 2015REGISTRATION NUMBER ###Grading & ErosionControl PlanGRADING NOTES1. PROPOSED CONTOURS ARE TO FINISHED SURFACE ELEVATION.SPOT ELEVATIONS ALONG PROPOSED CURB DENOTE FLOWLINEGRADE.2. THE CONTRACTOR SHALL TAKE ALL PRECAUTIONS NECESSARY TOAVOID PROPERTY DAMAGE TO ADJACENT PROPERTIES DURINGTHE CONSTRUCTION PHASES OF THIS PROJECT. THECONTRACTOR WILL BE HELD SOLELY RESPONSIBLE FOR ANYDAMAGES TO THE ADJACENT PROPERTIES OCCURRING DURINGTHE CONSTRUCTION PHASES OF THIS PROJECT.3. CONTRACTOR SHALL COMPLETE THE SITE GRADING PER THERECOMMENDATIONS OF THE OWNER'S SOIL ENGINEER. ALL SOILTESTING SHALL BE COMPLETED BY THE OWNER'S SOIL ENGINEER.THE CONTRACTOR SHALL BE RESPONSIBLE FOR COORDINATINGALL TESTING AND INSPECTION WITH THE SOIL ENGINEER.4. TEMPORARY SEED & MULCH TO BE PLACED WITHIN 72 HOURSAFTER ROUGH GRADING COMPLETION.5. ALL EXPOSED SOIL AREAS MUST BE STABILIZED AS SOON ASPOSSIBLE TO LIMIT SOIL EROSION, BUT IN NO CASE LATER THANSEVEN (7) DAYS AFTER THE CONSTRUCTION ACTIVITY IN THATPORTION OF THE SITE HAS TEMPORARILY OR PERMANENTLYCEASED.6. THE CONTRACTOR MUST CALL GOPHER STATE ONE CALL AT651-454-0002 BEFORE DIGGING TO VERIFY LOCATION OF EXISTINGUTILITIES. IT IS THE RESPONSIBILITY OF THE CONTRACTOR TOCOORDINATE WORK WITH THE UTILITY COMPANIES AND RELOCATEALL EXISTING UTILITIES WHICH CONFLICT WITH PROPOSEDIMPROVEMENTS.7. CONTRACTOR TO HAUL OFF ALL EXCESS MATERIAL TO A LOCATIONSELECTED BY OWNER.8. SILT FENCE AND EXISTING CATCH BASIN INLET PROTECTION SHALLBE INSTALLED PRIOR TO GRADING CONSTRUCTION AND SHALL BEMAINTAINED UNTIL SITE HAS BEEN ESTABLISHED.9. IT SHALL BE THE RESPONSIBILITY OF THE CONTRACTOR TO FIELDVERIFY THE LOCATIONS AND ELEVATIONS OF EXISTING UTILITIESPRIOR TO THE START OF GRADING CONSTRUCTION. THECONTRACTOR SHALL NOTIFY THE ENGINEER IMMEDIATELY OFDISCREPANCIES OR VARIATIONS FROM THE PLAN.10. CONTRACTOR SHALL STRIP, STOCKPILE AND RESPREADSUFFICIENT TOPSOIL TO PROVIDE A MINIMUM OF 4" OF TOPSOILOVER DISTURBED AREAS THAT WILL BE SODDED, SEEDED ORLANDSCAPED.11. ALL MATCH POINTS AND PAVEMENT PATCHES TO BE SAWCUT ATFULL DEPTH.12. ALL PIPE APRONS SHALL BE PROVIDED WITH TRASH GUARDS.13. CONTRACTOR SHALL PROVIDE CLASS III RIPRAP WITH FILTERFABRIC FOR ALL PIPE OUTLETS.GOVERNING SPECIFICATIONS1. THE LATEST EDITION OF THE MINNESOTA DEPARTMENT OFTRANSPORTATION "STANDARD SPECIFICATIONS FORCONSTRUCTION" AND THE CITY OF ALBERTVILLE SPECIFICATIONS.2. THE LATEST EDITION OF THE MINNESOTA MANUAL ON UNIFORMTRAFFIC CONTROL DEVICES (MMUTCD).3. THE LATEST EDITION OF THE CITY ENGINEERS ASSOCIATION OFMINNESOTA (CEAM) STANDARD SPECIFICAITONS.KMM/ZE DJNEXHIBIT CAgenda Page 22 MARLOWE AVE. NEOFFICEFFE = 953.0(33,750 SF)52ND STREET NEMARLOWE AVE. NEGTE55CURBCUTCLEANOUT 6"ØSOLID FLAT LIDRIM=946.00INV=944.5014 LF 6" HDPE @ 2.1%MITERED END W/RODENT GUARDINV = 951.214 LF 6" HDPE @ 2.1%MITERED END W/RODENT GUARDINV = 951.214 LF 6" HDPE @ 2.1%MITERED END W/RODENT GUARDINV = 951.2CURBCUT3' SEPARATIONC401ENGINEERINGSURVEYINGENVIRONMENTALPLANNINGEVS, INC.10025 Valley View Road, Suite 140Eden Prairie, Minnesota 55344Phone: 952-646-0236Fax: 952-646-0290www.evs-eng.comSHEET NUMBERDRAWN BY CHECKED BYDATE PROJECT # # DATE REVISIONSHEETLOCATIONPROJECT05.19.2015 2015-028Alberville, MinnesotaPreliminaryCLIENTScannell PropertiesOld CastleI HEREBY CERTIFY THAT THISPLAN, SPECIFICATION, ORREPORT WAS PREPARED BY MEOR UNDER MY DIRECTSUPERVISION AND THAT I AM ADULY LICENSED PROFESSIONALENGINEER UNDER THE LAWS OFTHE STATE OF MINNESOTA.___________________David NashDATE 05/ 19/ 2015REGISTRATION NUMBER ###Utility Plan1. SAFETY NOTICE TO CONTRACTORS: IN ACCORDANCE WITHGENERALLY ACCEPTED CONSTRUCTION PRACTICES, THECONTRACTOR SILL BE SOLELY AND COMPLETELY RESPONSIBLEFOR CONDITIONS ON THE JOB SITE, INCLUDING SAFETY OF ALLPERSONS AND PROPERTY DURING PERFORMANCE OF THE WORK.THIS REQUIREMENT WILL APPLY CONTINUOUSLY AND NOT BELIMITED TO NORMAL WORKING HOURS. THE DUTY OF THEENGINEER OR THE DEVELOPER TO CONDUCT CONSTRUCTIONREVIEW OF THE CONTRACTOR'S PERFORMANCE IS NOT INTENDEDTO INCLUDE REVIEW OF THE ADEQUACY OF THE CONTRACTOR'SSAFETY MEASURES IN, ON OR NEAR THE CONSTRUCTION SITE.2. ALL WATERMAIN FITTINGS AND VALUES SHALL BE MANUFACTURED INTHE USA AND APPROVED BY THE ALBERTVILLE UTILITY DEPARTMENT.3. ALL WATERMAIN FITTINGS SHALL BE EPOXY COATED AND ALL FITTINGSAND VALVES SHALL BE SECURED UTILIZING COR-BLUE T-BOLTS ASMANUFACTURED BY NSS INDUSTRIES OR APPROVED EQUAL.4. 8-GAUGE SOLID COATED TRACER WIRE SHALL BE INSTALLED ALONGWATERMAINUTILITY NOTESMATERIAL NOTESALL MATERIALS & CONSTRUCTION SHALL BE AS SPECIFIED INCEAM SPECIFICATIONS EXCEPT AS MODIFIED HERIN.1. ALL MATERIALS SHALL COMPLY WITH THE REQUIREMENTSOF THE CITY.2. ALL STORM SEWER PIPE TO BE RCP, UNLESS NOTEDOTHERWISE.3. ALL 6" SANITARY SEWER PIPE TO BE PVC SDR 35.4. ALL WATERMAIN TO BE PVC C-900.5. ALL 1" WATERMAIN TO BE HDPE SDR-9.6. 1" CURB STOP TO BE FORD B-44-444M OR APPROVED EQUAL.KMM DJNEXHIBIT DAgenda Page 23 EXHIBIT EAgenda Page 24 EXHIBIT F Agenda Page 25 OFFICEFFE = 953.0(33,750 SF)30 GRADEBREAKGRADEBREAK9509509559489505'949951952954951 953947 MARLOWE AVE NL1Landscape PlanENGINEERINGSURVEYINGENVIRONMENTALPLANNINGEVS, INC.10025 Valley View Road, Suite 140Eden Prairie, Minnesota 55344Phone: 952-646-0236Fax: 952-646-0290www.evs-eng.comSHEET NUMBERDRAWN BY CHECKED BYDATE PROJECT # # DATE REVISIONSHEETLOCATIONPROJECTAlberville, MinnesotaPreliminaryCLIENTI HEREBY CERTIFY THAT THIS PLANSPECIFICATION, OR REPORT WASPREPARED BY ME OR UNDER MYDIRECT SUPERVISION AND THAT IAM A DULY LICENSED LANDSCAPEARCHITECT UNDER THE LAWS OFTHE STATE OF MINNESOTA.___________________Kathleen O'ConnellDATE 12/ 27/ 2013REGISTRATION NUMBER 2086212.27.2013 2013-019.1Scannell PropertiesOld CastleI HEREBY CERTIFY THAT THIS PLANSPECIFICATION, OR REPORT WASPREPARED BY ME OR UNDER MYDIRECT SUPERVISION AND THAT IAM A DULY LICENSED LANDSCAPEARCHITECT UNDER THE LAWS OFTHE STATE OF MINNESOTA.___________________Kathleen O'ConnellDATE 09/ 23/ 2014REGISTRATION NUMBER 20862I HEREBY CERTIFY THAT THIS PLANSPECIFICATION, OR REPORT WASPREPARED BY ME OR UNDER MYDIRECT SUPERVISION AND THAT IAM A DULY LICENSED LANDSCAPEARCHITECT UNDER THE LAWS OFTHE STATE OF MINNESOTA.___________________Kathleen O'ConnellDATE 05/ 19/ 2015REGISTRATION NUMBER 20862KOC KOCEXHIBIT GAgenda Page 26 Albertville City Hall ● 5959 Main Avenue NE, PO Box 9 ● Albertville, MN 55301 ● (763) 497-3384 M E M O R A N D U M Date: June 11, 2015 To: Al Brixius, City Planner Cc: John Midddendorf - WWTP and Utility Supervisor Paul Heins - Building Official Dave Nash, P.E., EVS (Scannell Prop.) From: Adam Nafstad, P.E., City Engineer Subject: Oldcastle Building Envelope (L1B2 Barthel Industrial Park 2nd Add.) Site Plan Review I have reviewed the civil engineering submittal documents for the site referenced above. The documents include the Storm Water Management Report and civil plan set prepared by EVS, Inc. and dated 05.19.2015. The plan sheets reviewed include C100, C201, C301, C401, C601, C602, C603, L101 and L102 and titled: Title Sheet, Civil Site Plan, Grading & Erosion Control Plan, Utility Plan, Construction Details (601 to 603), Landscape Plan, and Landscape Details, respectively. Site improvements generally consist of grading, tree removal, extending sewer and water services, excavation for biofiltration basins, storm sewer, two driveway entrances on 52nd Street, parking and trucking facilities, erosion and sediment control, turf restoration, and landscaping. Based on the review of the plans, it is recommended that the plans be approved subject to the following conditions: 1. Once all revisions have been completed the Applicant shall submit a signed construction set. 2. The Applicant shall secure all necessary construction permits required for the improvements and shall provide the City with a copy of the permits prior to the start of construction. Permits include NPDES (storm water) and Mn Department of Labor and Industry. 3. Record drawings of all site improvements, as described by the City’s As-Built Checklist, shall be submitted prior to issuance of CO. 4. HydroCad Calculations: The proposed outlet devices for pond 2P do match what is shown on the Utility Plan (C401). Please update the calcs and/or plans so they are consistent with one another. 5. Sheet C201: Keynote 13 at westerly driveway does not apply. Curb and entrance to match detail 5/C602. Tip Out curb in easterly parking should be noted. 6. Sheet C301: Extend the roof drain outlets such that the invert matches the top of the filtration basin (to limit erosion potential). 7. Sheet C301: The plan notes the 30’ strip along the ditch to be cleared and grubbed by City. Please know I don’t know when the City will perform this work, but we will coordinate the future work with Scannell and Oldcastle. Agenda Page 27 Plan Review Memo – Oldcastle 6/11/15 Page 2 of 2 Albertville City Hall ● 5959 Main Avenue NE, PO Box 9 ● Albertville, MN 55301 ● (763) 497-3384 8. Sheet C401: Eliminate curb cut on west side of trucking lot and install a catch basin with an outlet that extends to the NWL of adjacent pond. 9. Sheet C401: Replace the existing catch basin grate on 52nd Street with a Neenah R-3290-A casting. 10. Sheet C401: Revise the 1” domestic service line from HDPE to copper. Separation of fire and domestic lines can be adjacent to building if easement to shut-off valve is provided. 11. Sheet C401: 1” service tap to be stainless steel saddle type, as approved by city. 12. Sheet C602: Detail 6/C602 does not apply to this project. 13. Sheet C602: Detail 4/C602 can be eliminated (see comment #8). 14. Sheet C603: Detail 5/C603 – show minimum depth and call out size of aggregate filter media to be installed around tile. 15. Sheet L1: Recommendation only – specify type of seed or sod for lawn establishment. 16. Information Only: there is an unused water service with valve adjacent to the westerly entrance, city will determine if valve is to be removed or remain. Please let me know if you have any questions. Agenda Page 28 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2015-2015-024 RESOLUTION APPROVING A SITE PLAN, BUILDING PLAN AND CONDITIONAL USE PERMIT FOR DEFERRED PARKING FOR SCANNELL PROPERTIES #227 LOCATED AT LOT 1, BLOCK 2, BARTHEL INDUSTRIAL PARK 2ND ADDITION WITHIN THE CITY OF ALBERTVILLE WHEREAS, Scannell Properties #227 has submitted a site plan, building plan and conditional use permit application for deferred parking for property located at Lot 1, Block 2, Barthel Industrial Park 2nd Addition with Parcel Identification number 101-135-002010; and WHEREAS, City Staff has reviewed submitted building plan, site plan, and conditional use permit application and prepared a planning report dated June 3, 2015; and WHEREAS, the Albertville Planning and Zoning Commission held a public hearing and reviewed the site plan, building plan, and conditional use permit application for deferred parking on June 9, 2015, to consider the application; and WHEREAS, upon considering the application materials, the June 3, 2015 planning report, public testimony, and applicant testimony the Planning Commission recommended that the City Council approve the plans and conditional use permit application on a vote of 3 to 0 subject to the conditions of the June 3, 2015 planning report as amended; and WHEREAS, the Albertville City Council met on June 15, 2015 to consider the site plan, building plan, and conditional use permit; and WHEREAS, the Albertville City Council has received Scannell Properties #227 application materials including a site plan, building plan, and conditional use permit 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 plan, building plan, for an industrial building and a conditional use permit for deferred parking subject to the following Decision: Decision: Based on the foregoing information and applicable ordinances, the City Council hereby APPROVES the site plan, and building plan, for an industrial building, and a conditional use permit for deferred parking based on the plans submitted by the applicant subject to the following conditions: Agenda Page 29 City of Albertville Resolution No. 2015-024 Page 2 Site and Building Plan: 1. The site and building plan illustrate a “striped-out” area on the parking lot next to the Fire Department connection to prevent obstruction from automobile parking. 2. The applicant provides cut sheets of all exterior light fixtures to demonstrate that they meet the City’s 90 degree cutoff standard. 3. The applicant must identify any building roof top equipment and provide screening to meet the City Code. 4. The site plan / landscape plan be revised to include 6 additional coniferous trees (minimum of 6 feet tall) extending along the west property line to screen the exterior trash / recycling requirement. No structural trash enclosure will be required. 5. The City reserves the right to access its drainage easement on the west side of the property without warning and at the property owner’s expense. Applicant shall provide an access easement over the west paved loading area in favor of the City to access the adjoining drainage ditch, ponds, and wetlands. 6. Subject to comments and revisions required by the City Engineer. 7. The truck and trailer parking stalls shall be striped and clearly marked as truck and trailer parking. The area must also indicate that no other outdoor storage or parking is allowed. Conditional Use. Deferred Parking: 1. If the parking associated with this site occurs on-street or in areas of the lot not designed for parking, the City may require the property owner to construct a portion or all of the proof-of-parking area as a condition of this conditional use permit approval. Adopted by the Albertville City Council this 15th Day of June, 2015. _____________________________ Jillian Hendrickson, Mayor Attest: ___________________________________ Kimberly A. Olson, City Clerk Agenda Page 30 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\061515\OLD CASTLE\1_Old Castle TIF RCA 6-15-15.doc Meeting Date: June 15, 2015 June 12, 2015 SUBJECT: OLD CASTLE MANUFACTURING TAX INCREMENT FINANCING DISTRICT RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: • Approve Resolution 2015-025, Resolution Modifying The Development Program For Municipal Development District No. 1 And Establishing Tax Increment Financing (Economic Development) District No. 17 Therein, And Approving A Tax Increment Financing Plan Therefor. • Approve Resolution 2015-026, Resolution Approving Purchase And Development Contract Between The City Of Albertville, Scannell Properties #227, Llc, And Oldcastle Buildingenvelope, Inc. And Approving The Business Subsidy Agreement And Conveyance Of Land Contained Therein. • Approve Resolution 2015-027Authorizing Interfund Loan For Advance Of Certain Costs In Connection With Tax Increment Financing District No. 17 • Release The 1979 Developer’s Agreement Between The City Of Albertville And Barthel Homes, Inc., Recorded As Document Number 342276 At The Wright County Recorder’s Office Related To The Development Of Barthel Industrial Park. BACKGROUND: The City developed several vacant lots in Barthel Industrial Park with the installation of sanitary sewer, water, storm sewer and street several years ago. One of these lots was sold to Fraser Steel several years ago. Scannell Properties is now seeking to purchase one of the lots to construct a 33,750 square foot building to lease to Old Castle Glass for Old Castle’s window trim fabrication and warehousing operations. Construction of the proposed building and operation of the building by Old Castle will increase the City’s tax base, add permanent jobs within the City, and increase the presence of Old Castle, the City’s largest employer, in the community. Scannell is requesting tax increment financing (“TIF”) assistance to offset the cost of the land ($409,000), SAC and WAC fees ($47,000), and development application fees ($4,000). Total assistance to the Scannell is approximately $460,000, with another estimated $57,000 in TIF administrative fees and an estimated $60,000 in interest on the interfund loan, which brings the total estimated amount of the TIF expenses to $577,486. Agenda Page 31 Mayor and Council Request for Action – June 15, 2015 Old Castle Manufacturing Tax Increment Financing District Page 2 of 4 M:\Public Data\City Council\Council Packet Information\2015\061515\OLD CASTLE\1_Old Castle TIF RCA 6-15-15.doc Meeting Date: June 15, 2015 This transaction is a multi-part transaction, consisting of the following pieces: • Establishment of the TIF District. Passage of Resolution 2015-025will establish the TIF District. The City must find as part of this establishment that the proposed building project would not occur but for the granting of the TIF assistance contemplated in this transaction. Scannell and Old Castle have represented to the City that without TIF assistance, this development would not occur. By establishing the TIF, the City will be capturing the increase in taxes generated by the development of this parcel and will use that money to pay itself back for the cost of the land and development costs that it will be subsidizing. The TIF will run for 9 years, the maximum allowed by State law for an economic development district. • Sale of Lot 1, Block 2, Barthels Industrial Park Second Addition. The City will be selling this lot to Scannell for $1 under the terms of the attached purchase and development agreement, and will pay Scannell’s SAC and WAC charge and development application costs. In exchange, Scannell is agreeing to construct a 33,750 foot building, and Old Castle is agreeing to use the building as a manufacturing and warehouse facility for a minimum of five years. Old Castle is obligated to create at least 10 full-time equivalent jobs at a wage of at least $15 per hour at the facility. The current estimated value of the lot (including outstanding special assessments) is approximately $409,000. The City will be repaid the value of the lot plus SAC, WAC and development fees from the TIF funds generated by the development. There is some risk that the development will not generate enough funds to fully repay the City, including interest on the City’s $517,167 interfund loan (discussed below). The extent of that risk depends upon the value the County Assessor places on the property. Based on building plans to date, the County Assessor believes that the building will be valued at $63 per s.f. The developer believes the building should be valued at $50 per s.f. At the $63 per s.f. valuation, the entire interfund principal balance will be paid back, as well as most, if not all, of the interest on the interfund loan. If the building is valued at $58 per s.f., the City will recover $420,800 of its $517,167 principal on the interfund loan, along with $97,000 in interest. If the building is valued at $55 per s.f., the City will recover $320,610 of its $517,167 principal on the interfund loan, along with $104,000 in interest. Calculations for principal and interest recovery at $50 per s.f. were not available at the time this memo was drafted. The purchase agreement calls for Scannell to agree to a minimum assessed value of $50 per square foot, meaning that the value of the property for tax purposes cannot fall below that value, but may be higher than that value. This essentially establishes a floor to protect the City at the $50 per square foot value. The purchase agreement included with this packet may be changed slightly by the City Council meeting, as we are still awaiting final comments from the Developer’s attorney on changes that were made during the negotiating process. • Approval of a Business Subsidy. Approval of Resolution 2015-026 will also approve a business subsidy to Scannell and Old Castle as set forth in the purchase and development agreement. State law requires that the City hold a public hearing and formally approve a business subsidy in excess of $150,000. Agenda Page 32 Mayor and Council Request for Action – June 15, 2015 Old Castle Manufacturing Tax Increment Financing District Page 3 of 4 M:\Public Data\City Council\Council Packet Information\2015\061515\OLD CASTLE\1_Old Castle TIF RCA 6-15-15.doc Meeting Date: June 15, 2015 • Interfund Loan. From an internal accounting perspective, the City will “loan” itself $517,167 via an interfund loan. The purpose of this loan is to allow the various City funds to be paid what they are due from the lot sale transaction. For example, the debt service fund to which the proceeds of collections of special assessments on the Barthel Industrial lots are normally due will be credited for the outstanding amount of the special assessments as if the sale had occurred and the City had been paid the special assessments outstanding. That money will come from the City’s general fund initially, but will be repaid to the general fund when the City receives the TIF increment generated by the project. As discussed above, whether the interfund loan will be paid back in full depends upon the value placed on the building, which will directly impact the amount of taxes collected on the building and the amount of TIF collected by the City. Any shortfall in the amount of money generated by the TIF will ultimately come from the City’s general fund, which is where the money is currently coming from to meet the special assessments due on this lot. The Developer is not responsible for repaying the interfund loan—it will only be repaid from TIF revenues. Resolution 2015-027 establishes the interfund loan. • Release of the 1979 Developer’s Agreement. On September 10, 1979, the City entered into a Developer’s Agreement with Barthel Homes, Inc., for the development of the Barthel Industrial Park. The Developer’s Agreement deals almost exclusively with the payment of special assessments levied on the properties and the provision of a letter of credit to guarantee such special assessments. The Title company would like the Developer’s Agreement released by the City. Because the terms of the Developer’s Agreement are no longer enforceable (Barthel Homes, Inc. no longer exists and to the best of the City’s knowledge, all obligations under the Developer’s Agreement have been fully carried out), release of the Developer’s Agreement is a formality. KEY ISSUES: • Establishment of the TIF will create 10 additional jobs in Albertville, increase Albertville’s tax base, and increase Old Castle’s presence as the community’s largest employer. • The City will be selling the land for $1 to Scannell. • The City is expected to recover most, if not all, of the $409,000 value of the lot via TIF revenues generated by the TIF District. • The sale of the lot and subsequent construction of a $33,750 square foot building on the property will result in a total market value for the property in the $2 million to $2.2 million range, generating approximately $47,000 in City, County and School District taxes annually upon the expiration of the TIF. • The TIF will be in effect for 9 years or until the interfund loan is fully paid, whichever occurs first. Upon the expiration of the TIF, the property will be return to the tax rolls in the same manner as all other non-TIF industrial properties in the City. POLICY/PRACTICES CONSIDERATIONS: TIF has been used in the past by the City as a method of growing the City’s industrial tax base and increasing jobs. The 9-year limitation on the TIF district ensures that the additional tax base will be available for general taxation upon the Agenda Page 33 Mayor and Council Request for Action – June 15, 2015 Old Castle Manufacturing Tax Increment Financing District Page 4 of 4 M:\Public Data\City Council\Council Packet Information\2015\061515\OLD CASTLE\1_Old Castle TIF RCA 6-15-15.doc Meeting Date: June 15, 2015 expiration of the TIF. This project is slightly more complicated than past TIF projects because the City is selling the land as well as establishing the TIF. FINANCIAL CONSIDERATIONS: Depending upon the assessed value of the finished development, this transaction has the ability to pay all outstanding special assessments on the property and sell the property for $2 per square foot net of special assessments. If the assessed valuation comes back too low, the City may not realize a value of $2 per square foot on the sale of the property. At this point, it cannot be predicted exactly how this will turn out, but current estimates from the County Auditor’s office indicate that the City will be fully reimbursed. Sale of the property and establishment of the TIF will ensure the payment of the special assessments on this lot, which are currently paid by general fund levy. LEGAL CONSIDERATIONS: All TIF documents and the purchase agreement have been reviewed by TIF Counsel (Kennedy & Graven), and the entire transaction complies with State law. Responsible Person/Title: Tina Lannes, Finance Director; Mike Couri, City Attorney Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: • Resolution 2015-025, Resolution Modifying The Development Program For Municipal Development District No. 1 And Establishing Tax Increment Financing (Economic Development) District No. 17 Therein, And Approving A Tax Increment Financing Plan Therefor • Resolution 2015-026, Resolution Approving Purchase And Development Contract Between The City Of Albertville, Scannell Properties #227, Llc, And Oldcastle Building Envelope, Inc. And Approving The Business Subsidy Agreement And Conveyance Of Land Contained Therein. • Approve Resolution 2015-027 Authorizing Interfund Loan For Advance Of Certain Costs In Connection With Tax Increment Financing District No. 17 • 1979 Developer’s Agreement Between The City Of Albertville And Barthel Homes, Inc., Recorded As Document Number 342276 At The Wright County Recorder’s Office Related To The Development Of Barthel Industrial Park. • Modification To Development Program For Municipal Development District No. 1 Tax Increment Financing Plan For Tax Increment Financing (Economic Development) District No. 17 (Oldcastle Glass) Agenda Page 34 CITY OF ALBERTVILLE (MINNESOTA) MODIFICATION TO DEVELOPMENT PROGRAM FOR MUNICIPAL DEVELOPMENT DISTRICT NO. 1 TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 (OLDCASTLE GLASS) ADOPTED (RESOLUTION NO. 2015-_____) PUBLIC HEARING: JUNE 15, 2015 REQUEST FOR CERTIFICATION: _______________, 2015 DISTRICT CERTIFIED: ___________________, 2015 Northland Securities, Inc. 45 South 7th Street, Suite 2000 Minneapolis, MN 55402 (800) 851-2920 Member NASD and SIPC Agenda Page 35 TABLE OF CONTENTS ȃ .........................................................1 Section 1.01 Introduction ......................................................................................1 Section 1.02 Defi nitions .........................................................................................1 Section 1.03 Plan Preparation...............................................................................1 ǧ .......................................................................2 Section 2.01 Overview...........................................................................................2 Section 2.02 Statement of Objectives...................................................................2 Section 2.03 Boundaries of Development District.............................................2 Section 2.04 Development Activities...................................................................2 Section 2.05 Payment of Project Costs.................................................................2 Section 2.06 Environmental Controls; Land Use Regulations.........................3 Section 2.07 Park and Open Space to be Created..............................................3 Section 2.08 Proposed Reuse of Property...........................................................3 Section 2.09 Administration and Maintenance of Development District......3 Section 2.10 Amendments .....................................................................................3 ǧ ......................................................4 Section 3.01 Statutory Authority..........................................................................4 Section 3.02 Planned Development .....................................................................4 3.02.1 Description of Proposed Development.........................................4 3.02.2 City Plans and Development Program..........................................4 3.02.3 Land Acquisition..............................................................................4 3.02.4 Development Activities...................................................................4 3.02.5 Need for Tax Increment Financing ................................................4 Section 3.03 Tax Increment Financing District...................................................5 3.03.1 Designation .......................................................................................5 3.03.2 Boundaries of TIF District...............................................................5 3.03.3 Type of District.................................................................................5 Section 3.04 Plan for Use of Tax Increment ........................................................5 3.04.1 Estimated Tax Increment.................................................................5 3.04.2 Development Costs..........................................................................6 3.04.3 Estimated Sources and Uses of Funds...........................................6 Figure 3-1...........................................................................................7 3.04.4 Administrative Expense..................................................................7 3.04.5 County Road Costs...........................................................................7 3.04.6 Bonded Indebtedness.......................................................................8 3.04.7 Duration of TIF District...................................................................8 3.04.8 Estimated Impact on Other Taxing Jurisdictions.........................8 3.04.9 Prior Planned Improvements .........................................................8 ȃ .....................................................9 Section 4.01 Filing and Certifi cation ....................................................................9 Section 4.02 Modifi cations of the Tax Increment Financing Plan ....................9 Section 4.03 4-Year Knockdown Rule..................................................................9 Section 4.04 Pooling/5-Year Rule........................................................................10 Agenda Page 36 Section 4.05 Financial Reporting and Disclosure Requirements...................11 Section 4.06 Business Subsidy Compliance......................................................11 EXHIBITS..........................................................................................................................12 Exhibit I – Present Value Analysis..........................................................................12 Exhibit II – Projected Tax Increment......................................................................13 Exhibit III – Impact on Other Taxing Jurisdictions..............................................14 Exhibit IV – Estimated Tax Increment Over Life of District...............................15 Exhibit V – Map of Development District and TIF District................................16 Agenda Page 37 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 DRAFT FOR PUBLIC HEARING 1 ARTICLE I – INTRODUCTION AND DEFINITIONS SECTION 1.01 INTRODUCTION The City of Albertville proposes to provide tax increment fi nancing assistance to facilitate public improvements and private development projects in the central business district and surrounding area of the City. This document contains the plan for achieving the objectives of the Development Program for Municipal Development District No. 1 through the establishment of Tax Increment Financing (Economic Development) District No. 17. SECTION 1.02 DEFINITIONS For the purposes of this document, the terms below have the meanings given in this section, unless the context in which they are used indicates a diff erent meaning: 1. “City” means the City of Albertville, Minnesota. 2. “City Council” means the City Council of the City. 3. “County” means Wright County, Minnesota. 4. “Developer” means the party undertaking construction in the TIF District anticipated to be Scannell Properties #227, LLC, its successors or assigns. 5. “Development District” means Municipal Development District No. 1 in the City, created and established pursuant to and in accordance with the Development District Act. 6. “Development District Act” means Minnesota Statutes, Sections 469.124 through 469.134, as amended and supplemented from time to time. 7. “Development Program” means the Development Program for the Development District, as amended and supplemented from time to time. 8. “Project Area” means the geographic area of the Development District. 9. “Project Costs” means the cost of the development activities that will or are expected to occur within the Project Area or TIF District. 10. “School District” means St. Michael-Albertville Public Schools (ISD #885). 11. “State” means the State of Minnesota. 12. “TIF Act” means Minnesota Statutes, Sections 469.174 through 469.1794, as amended, both inclusive. 13. “TIF District” means Tax Increment Financing (Economic Development) District No. 17 (Oldcastle Glass). 14.“TIF Plan” means the tax increment fi nancing plan for the TIF District (this document). SECTION 1.03 PLAN PREPARATION This document was prepared for the City by Northland Securities, Inc. Project data was provided by the City and the Developer. Agenda Page 38 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 DRAFT FOR PUBLIC HEARING 2 ARTICLE II - DEVELOPMENT PROGRAM SECTION 2.01 OVERVIEW The City established the Development District and the related Development Program as a tool to achieve the objectives described in Section 2.02 of the original Development Program. The Development District was fi rst approved in April, 1981 and has been modifi ed subsequently. The Development District serves as the Project Area for tax increment fi nancing districts established within its boundaries. The Development Program describes the City’s objectives for the development of this area and the use of tax increment fi nancing. Current modifi cations to the Development Program include budget revisions to coincide with the TIF Plan relating to the TIF District. This modifi ed 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 modifi cation is intended to supersede or alter the activities described in the original Development Program. SECTION 2.02 STATEMENT OF OBJECTIVES The modifi cations of the Development District pursuant to the Development District Act are necessary and in the best interests of the City and its residents and are necessary to give the City the ability to meet certain public purpose objectives that would not be obtainable in the foreseeable future without intervention by the City in the normal development process. The current proposed development is consistent with the established “Statement of Objectives” documented by the original Development Program. SECTION 2.03 BOUNDARIES OF DEVELOPMENT DISTRICT The boundaries of the Development District are depicted in Exhibit V. The boundaries of the Development District are coterminous with the boundaries of the City. The City is not acting to modify the boundaries of the Development District. Within the Development District, the City has previously established Tax Increment Financing District Numbers 1 through 16, inclusive. SECTION 2.04 DEVELOPMENT ACTIVITIES The proposed development activities within the Development District are consistent with the goals, objectives, and plans expressed by the Development Program. The current modifi cations to the Development Program relate to plans by the Developer to construct warehouse space for an existing manufacturing facility within the City. SECTION 2.05 PAYMENT OF PROJECT COSTS Project Costs and the plan for their payment have been described in detail in each Tax Increment Financing Plan for Tax Increment Financing District Numbers 1 through 16, as authorized by the City, which are incorporated herein by reference. The City now anticipates additional Project Costs to be fi nanced in part with tax increments expected to be generated by new development within the TIF District. Project Costs and related data for such eff orts are set forth in the TIF Plan for the TIF District. The TIF Plan for the TIF District accompanies these modifi cations to the Development Program. Agenda Page 39 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 DRAFT FOR PUBLIC HEARING 3 SECTION 2.06 ENVIRONMENTAL CONTROLS; LAND USE REGULATIONS All municipal actions, public improvements and private development shall be carried out in a manner consistent with the Development Program and existing environmental controls and all applicable land use regulations. SECTION 2.07 PARK AND OPEN SPACE TO BE CREATED Park and open space within the Development District, if created, will be created in accordance with the Development Program and City’s comprehensive plan and zoning and subdivision ordinances. SECTION 2.08 PROPOSED REUSE OF PROPERTY The Development Program anticipates that the City may acquire property and reconvey the same to another entity. All parcels in the Development District are eligible for acquisition. In acquiring land, the City Council will require the execution of a binding development agreement with respect thereto and evidence that tax increments or other funds will be available to repay the Project Costs associated with the proposed acquisition. It is the intent of the City to negotiate the acquisition of property whenever possible. Appropriate restrictions regarding the reuse and redevelopment of property shall be incorporated into any development agreement to which the City is a party. SECTION 2.09 ADMINISTRATION AND MAINTENANCE OF DEVELOPMENT DISTRICT Maintenance and operation of the Development District will be the responsibility of the City Administrator who shall serve as Administrator of the Development District. Each year the Administrator will submit to the City the maintenance and operation budget for the following year. The Administrator will administer the Development District pursuant to the provisions of Section 469.131 of the Development District Act; provided, however, that such powers may only be exercised at the direction of the City Council. No action taken by the Administrator pursuant to the above-mentioned powers shall be eff ective without authorization by the City Council. SECTION 2.10 AMENDMENTS The City reserves the right to alter and amend the Development Program through future modifi cations, subject to the provisions of state law regulating such action. The City specifi cally continues to reserve the right to enlarge or reduce the size of the Development District and to modify the Development Program. Agenda Page 40 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 DRAFT FOR PUBLIC HEARING 4 ARTICLE III - TAX INCREMENT FINANCING PLAN SECTION 3.01 STATUTORY AUTHORITY The TIF District and this TIF Plan are established under the authority of the TIF Act. SECTION 3.02 PLANNED DEVELOPMENT 3.02.1 Description of Proposed Development ȱ¢ȱȱȱ ȱȱĴȱȱȱȱȱȱ ȱ ȱȱȱarea in and around the central business district. The proposed development consists of theconstruction of an approximately 34,000 square feet (SF) building to be used as a warehousefacility in support of an existing manufacturing production facility. The proposed buildingwill be constructed adjacent to an existing and related manufacturing facility. The planneddevelopment will result in an increase in tax base for the City and new manufacturing jobs. 3.02.2 City Plans and Development Program In addition to achieving the objectives of the Development Program, the planned developmentis consistent with and works to achieve the development objectives of the City by expandingviable businesses within the City’s industrial park. The TIF Plan for the TIF District conforms tothe general plan for development of the City as a whole. 3.02.3 Land Acquisition No acquisition of land by the City within the TIF District is anticipated. 3.02.4 Development Activities As of the date of approval of the TIF Plan, the City anticipates that activities proposed in the TIFPlan may be subject to contracts. The City anticipates entering into a contract with a Developerto provide tax increment fi nancing assistance to pay for Project Costs. 3.02.5 Need for Tax Increment Financing In the opinion of the City, the proposed development would not reasonably be expected to occur solely through private investment within the foreseeable future and the increased market value of the site that could reasonably be expected to occur without the use of tax increment fi nancing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for ȱ ¡ ȱȱȱȱȱ ȱ Ĵȱȱ¢ȱȱȱǯ The reasons and facts supporting this fi nding include the following. 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 expansion by the Developer of its existing operations, after adjusting for the tax increment assistance. Analysis of the site shows that continued and expanded industrial use results in a greater increase in market value than other possible land uses. Furthermore, given the location of the property and the property’s zoning classifi cation, housing or other commercial uses are not appropriate or likely for the site. The City fi nds that without the use of tax increment fi nancing, the proposed and preferred economic development project will not occur. A comparative analysis of estimated market values both with and without establishment of the TIF District and the use of tax increments has been performed as described above and is shown in Exhibit I. This analysis indicates that the increase in estimated market value of the proposed development (less the present value of the projected tax increments for the maximum ȱ Ĵȱȱ¢ȱȱȱǼȱ¡ ȱȱ ȱ ȱȱȱȱȱȱȱȱ Agenda Page 41 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 DRAFT FOR PUBLIC HEARING 5 establishment of the TIF District. SECTION 3.03 TAX INCREMENT FINANCING DISTRICT 3.03.1 Designation This TIF District is designated Tax Increment Financing (Economic Development) District No.17 (Oldcastle Glass). 3.03.2 Boundaries of TIF District The boundaries of the TIF District are depicted in Exhibit V. The TIF District includes the following parcel and adjacent right-of-way: 101-135-002010. 3.03.3 Type of District The TIF District is established as an “economic development” district pursuant to Sections469.174, Subd. 12 and 469.176, Subd. 4c of the TIF Act. These sections of the TIF Act provide thattax increment from an economic development district may be used to provide improvements,loans, subsidies, grants, interest rate subsidies, or assistance in any form to developmentsconsisting of buildings and ancillary facilities, if any of the following conditions are met: (1) it will discourage commerce, industry, or manufacturing from moving their operations toanother state or municipality; or (2) it will result in increased employment in the state; or (3) it will result in preservation and enhancement of the tax base of the state. Revenue derived from tax increment from an economic development district may not be used toprovide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any formto developments consisting of buildings and ancillary facilities, if more than 15 percent of thebuildings and facilities (determined on the basis of square footage) are used for a purpose otherthan: (1) the manufacturing or production of tangible personal property, including processingresulting in the change in condition of the property; (2) warehousing, storage, and distribution of tangible personal property, excluding retailsales; (3) research and development related to the activities listed in clause (1) or (2); (4) telemarketing if that activity is the exclusive use of the property; (5) tourism facilities; (6) qualifi ed border retail facilities; or (7) space necessary for and related to the activities listed in clauses (1) to (6). The current project within the TIF District relates to plans by the Developer to expand itsexisting manufacturing facility in the City, and therefore meets the requirements of an economicdevelopment tax increment fi nancing district. SECTION 3.04 PLAN FOR USE OF TAX INCREMENT 3.04.1 Estimated Tax Increment The original tax capacity of value of the TIF District will be set by the County upon request for certifi cation. The original tax capacity value may change over time based on the use and tax classifi cation of each parcel. For the purposes of this TIF Plan, the estimated original tax capacity is $4,276. This amount is based on the most recent published estimated market value of the Agenda Page 42 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 DRAFT FOR PUBLIC HEARING 6 property of $251,300 with tax capacity value calculated for commercial-industrial property. The total tax capacity value of the property after completion of planned development is estimated to be $43,526. This amount is based on a total estimated market value of $2,251,300 with property classifi ed as commercial-industrial. The diff erence between the total tax capacity value and the original tax capacity value is the captured tax capacity value for the creation of tax increment. It is the City’s intent to retain 100% of the captured tax capacity value for the life of the TIF district. The total estimated local tax rate for taxes payable in 2015 is 143.048%. The TIF Plan assumes that this rate will be set as the original tax rate for the District. Under these assumptions, the estimated annual tax increment upon completion of all phases of redevelopment will be $56,146. The actual tax increment will vary according to the certifi ed original tax capacity value and original tax rate, the actual property value produced by the proposed development and the changes in property value and State tax policy over the life of the district. Exhibit II contains the projected tax increment over the life of the TIF District. 3.04.2 Development Costs The parcel comprising the TIF District is currently owned by the City. The City intends toconvey the parcel to the Developer for $1. The City will use tax increment to reimburse itself forthe write-down of the purchase price, along with other associated project costs. The City reserves the right to use any other legally available revenues to fi nance or pay for Project Cots associated with the development in the TIF District. 3.04.3 Estimated Sources and Uses of Funds The estimated sources of revenue, along with the estimated Project Costs of the TIF District, are itemized in Figure 3-1. The estimates are based on the best available information in the sources and uses of funds. The Project Costs are eligible for reimbursement from tax increments from the TIF District. Agenda Page 43 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 DRAFT FOR PUBLIC HEARING 7 FIGURE 3-1 ESTIMATED SOURCES AND USES OF FUNDS The Authority reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the Estimated Tax Increment Project Costs are not increased. 3.04.4 Administrative Expense The City will retain ten percent (10%) of annual tax increment revenues, less fees paid to theState and County. The City will use these monies to pay for and reimburse the City for costs ofadministering the TIF district allowed by the TIF Act. Based on current projections, this amountis estimated to be $57,500 over the proposed life of the TIF District. Anticipated administrativeexpenses of the TIF District include annual audit of the fund for the TIF District, preparationof annual reporting, legal publication of annual report, and administration of the developmentagreement. The City may also reimburse itself for costs associated with the establishment of theTIF District, including the TIF Plan and the development assistance contract with the Developer. 3.04.5 County Road Costs The proposed development will not substantially increase the use of county roads and necessitate the need to use tax increments to pay for county road improvements. Agenda Page 44 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 DRAFT FOR PUBLIC HEARING 8 3.04.6 Bonded Indebtedness The total amount of bonds estimated to be issued is $517,467. The City plans to loan or advance money from its general fund or any other fund it has legalauthority to use to fi nance Project Costs. An interfund loan or advance is defi ned in the TIF Act as a bond or a qualifying obligation. Before money is transferred, advanced, or spent, the loanor advance shall be authorized by resolution of the City. For the loan or advance to be repaidwith TIF revenues, an interfund loan agreement must be in place before any loans or advancesare made. The terms and conditions for repayment of the loan must be in writing and include,at minimum, (i) the principal amount of the loan or advance, (ii) the interest rate to be charged,and (iii) its maximum term. The maximum rate of interest that can be charged is limited to theannual rate charged by the State Courts or by the Department of Revenue, whichever is greater. The City will not issue any general obligation bonded indebtedness as a result of the TIF Plan. 3.04.7 Duration of TIF District The TIF Act allows tax increments to be collected from the TIF District for a period not to exceedeight (8) years after the date of receipt of the fi rst tax increment. The City reserves the right to collect tax increments for this period to undertake additional eligible activities in the TIF Districtand the Development District. Under the current schedule for development, the fi rst tax increment is estimated to be collected in 2017 (construction completed in 2015) creating the authority to collect tax increments throughDecember 31, 2025. The City will request decertifi cation of the TIF District after reimbursement of all eligible Project Costs and administrative expense but no later than the fi nal year of tax increment collection. 3.04.8 Estimated Impact on Other Taxing Jurisdictions Exhibits III and IV show the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The City believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertifi ed and the development therein becomes part of the general tax base. The City anticipates minimal impact of the proposed development on city-provided services. A slight increase in water and sewer usage is expected. It is anticipated that there may be a slight but manageable increase in police and fi re protection duties due to the development. 3.04.9 Prior Planned Improvements There have been no building permits issued in the last 18 months in conjunction with theproperty within the TIF District. The City will include this statement with the request forcertifi cation to the County Auditor. If building permits had been issued during this time period, then the County Auditor would increase the original net tax capacity of the TIF District by thenet tax capacity of each improvement for which a building permit was issued. Agenda Page 45 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 DRAFT FOR PUBLIC HEARING 9 ARTICLE IV – ADMINISTERING THE TIF DISTRICT SECTION 4.01 FILING AND CERTIFICATION The fi ling and certifi cation of the TIF Plan consists of the following steps: 1. Upon adoption of the TIF Plan, the City shall submit a copy of the TIF Plan to the Minnesota Department of Revenue and the Offi ce of the State Auditor. 2. The City shall request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the City shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. 3. The City shall send the County Assessor any assessment agreement establishing the minimum market value of land and improvements in the TIF District, and shall request that the County Assessor review and certify this assessment agreement as reasonable. SECTION 4.02 MODIFICATIONS OF THE TAX INCREMENT FINANCING PLAN The City reserves the right to modify the TIF District and the TIF Plan. Under current State law, the following actions can only be approved only after satisfying all the necessary requirements for approval of the original TIF Plan (including notifi cations and public hearing): §Reduction or enlargement in the geographic area of the Development District or the TIF District. §Increase in the amount of bonded indebtedness to be incurred. §Increase in the amount of capitalized interest. §Increase in that portion of the captured net tax capacity to be retained by the City. §Increase in the Estimated Tax Increment Project Costs (shown in Figure 3-1). §Designation of additional property to be acquired by the City. Other modifi cations can be made by resolution of the City Council. In addition, the original approval process does not apply if (1) the only modifi cation is elimination of parcels from the TIF District and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District’s original net tax capacity, or the City agrees that the TIF District’s original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. The City must notify the County Auditor of any modifi cation that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after fi ve years following the date of certifi cation. SECTION 4.03 4-YEAR KNOCKDOWN RULE The 4-Year Knockdown Rule requires that if after four years from certifi cation of the TIF District no demolition, rehabilitation, renovation or site improvement, including a qualifi ed improvement of an adjacent street, has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualifi ed improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing Agenda Page 46 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 DRAFT FOR PUBLIC HEARING 10 street. The City must submit to the County Auditor, by February 1 of the fi fth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the City or owner of the parcel subsequently commences any of the above activities, the City shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certifi ed by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. SECTION 4.04 POOLING/5-YEAR RULE At least 80% of the tax increments (net of administrative expenses) from this TIF District (the “In-District Percentage”) must be expended on activities within the TIF District, including payment on any bonds for which the proceeds were used to fi nance activities within the TIF District. Up to 20% of the tax increments from this TIF District may be used to fi nance activities outside the TIF District but within the Development District. All administrative expenses are for activities outside of the TIF District, except that if the only expenses for activities outside of the TIF District are for the purposes described in Minnesota Statute, 469.1763, Subd. 2(d), administrative expenses will be considered as expenditures for activities in the TIF District. Tax increments are considered to have been “spent” within the TIF District if such amounts are: •actually paid to a third party for activities performed within the TIF District within fi ve years after certifi cation of the district; • used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the fi ve-year period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund. • used to make payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which were entered into within fi ve years after certifi cation of the district; or • used to reimburse a party for payment of eligible costs (including interest) incurred within fi ve years from certifi cation of the district; or •in the case of a housing district, used for a housing project, as defi ned in section 469.174, subdivision 11. Beginning with the sixth year after certifi cation of the TIF District, if the tax increments actually received by the City representing the In-District Percentage exceed the amounts considered “spent” within the TIF District, the excess must be used or set aside to pay or defease bonds (as described above) or to make payments under contracts (as described above). The TIF District must be decertifi ed when the City has received tax increments representing the In-District Percentage in an amount suffi cient to fully pay its in-district obligations (i.e., defease any bonds and/or fulfi ll all contractual obligations). It is anticipated that all tax increments collected in the TIF District will spent or obligated within this time period. Unless the TIF Plan is modifi ed within this fi ve-year period and additional expenditures are authorized, tax increments will only be used to pay for authorized redevelopment costs and administrative expenses. Agenda Page 47 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 DRAFT FOR PUBLIC HEARING 11 SECTION 4.05 FINANCIAL REPORTING AND DISCLOSURE REQUIREMENTS The City will comply with the annual reporting requirements of State law pursuant to the guidelines of the Offi ce of the State Auditor. Under current law, the City must prepare and submit a report on the TIF District on or before August 1 of each year. The City must also annually publish in a newspaper of general circulation in the City an annual statement for each tax increment fi nancing district in its jurisdiction. The reporting and disclosure requirements outlined in this section begin with the year the TIF District was certifi ed, and shall end in the year in which both the TIF District has been decertifi ed and all tax increments have been spent or returned to the county for redistribution. Failure to meet these requirements, as determined by the State Auditors Offi ce, may result in suspension of distribution of tax increment. SECTION 4.06 BUSINESS SUBSIDY COMPLIANCE The City will comply with the business subsidies requirements specifi ed in Minnesota Statutes, Sections 116J.993 to 116J.995, as amended. Agenda Page 48 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 DRAFT FOR PUBLIC HEARING 12 Agenda Page 49 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 DRAFT FOR PUBLIC HEARING 13 Agenda Page 50 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 DRAFT FOR PUBLIC HEARING 14 Agenda Page 51 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 DRAFT FOR PUBLIC HEARING 15 Agenda Page 52 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 DRAFT FOR PUBLIC HEARING 16 EXHIBIT V MAP OF BOUNDARIES OF MUNICIPAL DEVELOPMENT DISTRICT NO. 1 AND TAX INCREMENT FINANCING DISTRICT NO. 17 Agenda Page 53 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF ALBERTVILLE, MINNESOTA HELD: June 15, 2015 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Albertville, Wright County, Minnesota, was duly called and held on the 15th day of June, 2015, at approximately 7:00 p.m. The following members of the Council were present: and the following were absent: Member __________ introduced the following resolution and moved its adoption: RESOLUTION 2015-025 RESOLUTION MODIFYING THE DEVELOPMENT PROGRAM FOR MUNICIPAL DEVELOPMENT DISTRICT NO. 1 AND ESTABLISHING TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 17 THEREIN, AND APPROVING A TAX INCREMENT FINANCING PLAN THEREFOR WHEREAS: A. It has been proposed that the City of Albertville, Minnesota (the "City") modify the Development Program for Municipal Development District No. 1 (“the Development District”), establish Tax Increment Financing (Economic Development) District No. 17 (the “TIF District”) therein and approve and accept the proposed Tax Increment Financing Plan (the “TIF Plan”) therefor, pursuant to Minnesota Statutes, Sections 469.124 through 469.134 and Minnesota Statutes, Sections 469.174 through 469.1794, both inclusive, as amended (the "Act"); and B. The City Council has investigated the facts and has caused to be prepared a proposed modification to the Development Program for the Development District, and has caused to be prepared a proposed TIF Plan for the TIF District; and C. The City has performed all actions required by law to be performed prior to the establishment of the TIF District and the TIF Plan therefor, and the adoption of the modified Development Program for the Development District, including, but not limited to, notification of Wright County and St. Michael-Albertville Public Schools (ISD #885) having taxing Agenda Page 54 City of Albertville Resolution No. 2015-025 Page 2 jurisdiction over the property to be included in the TIF District and the holding of a public hearing upon published and mailed notice as required by law. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Albertville as follows: 1. Municipal Development District No. 1. The modified Development Program for the Development District contained in Article II of the TIF Plan for the TIF District is hereby ratified and affirmed. 2. Tax Increment Financing (Economic Development) District No. 17. The TIF District is hereby established in the City within the Development District, the initial boundaries of which are fixed and determined as described in the TIF Plan for the TIF District. 3. Tax Increment Financing Plan. The TIF Plan is adopted as the tax increment financing plan for the TIF District and the findings made within are hereby incorporated by reference. The City Council makes the following findings: (a) The TIF District is an economic development district as defined in Minnesota Statutes, Section 469.174, Subd. 12; the proposed assistance is for an expansion to an existing manufacturing facility, as described below. (b) Development in the TIF District will create or retain jobs in this state. The developer of this project has provided estimates of the jobs created and retained, and will be contractually obligated to meet certain job and wage goals as required under Minnesota Statutes, Sections 116J.993 – 116J.995. (c) The proposed development, in the opinion of the City Council, would not occur solely through private investment. The reasons supporting this finding are that: (i) The need for the use of tax increment financing has been determined in negotiations with the developer of the project. The developer has attested to inability to undertake the project without the assistance provided by the City. The extraordinary cost of the land acquisition costs, site improvements and preparation costs have proven to be prohibitive. Tax increments are needed to assist with these development costs for the property. (ii) The proposed project will allow a business to attract new development and retain neighboring businesses and new development in the area in and around the industrial business area of the City. The proposed development consists of the construction of an approximately 34,000 square feet building to be used as a warehouse facility in support of an Agenda Page 55 City of Albertville Resolution No. 2015-025 Page 3 existing manufacturing production facility. The proposed building will be constructed adjacent to an existing and related manufacturing facility. The planned development will result in an increase in tax base for the City and new manufacturing jobs. Retaining this business and related jobs is important to the economic future of the community. (iii) Private investment will not finance these development activities because of the prohibitive costs of the underlying infrastructure and site improvements. It is necessary to finance a portion of these costs through the use of tax increment financing. (iv) A comparative analysis of estimated market values both with and without establishment of the TIF District and the use of tax increments has been performed as described above. Such analysis is found in Exhibit I of the TIF Plan, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the TIF District and the use of tax increments. (v) In the opinion of the City Council, 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 the 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. The reasons supporting this finding can be found in Exhibit I of the TIF Plan. (d) The TIF Plan for the TIF District conforms to the general plan for development of the City as a whole. The reasons for supporting this finding are that: (i) The TIF District is properly zoned; and (ii) The TIF Plan will generally complement and serve to implement policies adopted in the City’s comprehensive plan. (e) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Development District by private enterprise. Agenda Page 56 City of Albertville Resolution No. 2015-025 Page 4 The reasons supporting this finding are that the development activities are necessary so that development and redevelopment by private enterprise can occur within the Development District. 4. Public Purpose. The adoption of the Development Program for the Development District, and the adoption of the TIF Plan for the TIF District therein conform in all respects to the requirements of the Act and will help fulfill a need to provide employment opportunities, to improve the tax base and to improve the general economy of the State and thereby serve a public purpose. 5. Certification and Filing. The City Clerk 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 Act, and to file a copy of the Development Program and the TIF Plan with the Minnesota Commissioner of Revenue and State Auditor as required by the Act. 6. Administration. The administration of the Development District and the TIF District is assigned to the City Administrator who shall from time to time be granted such powers and duties pursuant to the Act as the City Council may deem appropriate. The motion for the adoption of the foregoing resolution was duly seconded by member _________and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Agenda Page 57 City of Albertville Resolution No. 2015-025 Page 5 STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF ALBERTVILLE I, the undersigned, being the duly qualified and acting City Clerk of the City of Albertville, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to the modification of the Development Program for Municipal Development District No. 1 and the establishment of Tax Increment Financing (Economic Development) District No. 17 therein, and approving the Tax Increment Financing Plan therefor. WITNESS my hand this 15th day of June, 2015. ________________________________ Kimberly A. Olson, City Clerk Agenda Page 58 460980v2 MNI AL141-64 Third Draft, June 8, 2015 PURCHASE AND DEVELOPMENT CONTRACT By and Between CITY OF ALBERTVILLE, MINNESOTA and SCANNELL PROPERTIES #227, LLC and OLDCASTLE BUILDINGENVELOPE, INC. Dated as of: __________, 2015 This document was drafted by: KENNEDY & GRAVEN, Chartered (MNI) 470 U.S. Bank Plaza Minneapolis, Minnesota 55402 Telephone: 337-9300 Agenda Page 59 i 460980v2 MNI AL141-64 TABLE OF CONTENTS Page PREAMBLE ............................................................................................................................. 1 ARTICLE I Definitions Section 1.1. Definitions........................................................................................................... 2 ARTICLE II Representations and Warranties Section 2.1. Representations by the City ................................................................................ 5 Section 2.2. Representations and Warranties by the Developer ............................................. 5 Section 2.3. Representations and Warranties by the Tenant ................................................... 6 ARTICLE III Acquisition and Conveyance of Property Section 3.1. Conveyance of the Property ................................................................................ 7 Section 3.2. Purchase Price; Provisions for Payment ............................................................. 7 Section 3.3. Conditions of Conveyance .................................................................................. 7 Section 3.4. Place of Document Execution, Delivery and Recording, Costs ......................... 8 Section 3.5. Title ..................................................................................................................... 8 Section 3.6. Soils, Environmental Conditions ........................................................................ 9 Section 3.7. Advance of Land and Other Costs; Tax Increment Interfund Loan ................... 9 Section 3.8. Business Subsidy Agreement ............................................................................ 10 Section 3.9. Payment of Administrative Costs ..................................................................... 12 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements ........................................................ 13 Section 4.2. Construction Plans ............................................................................................ 13 Section 4.3. Commencement and Completion of Construction ............................................ 14 Section 4.4. Certificate of Completion ................................................................................. 14 ARTICLE V Insurance Section 5.1. Insurance ........................................................................................................... 16 Section 5.2. Subordination .................................................................................................... 17 Agenda Page 60 ii 460980v2 MNI AL141-64 ARTICLE VI Delinquent Taxes and Review of Taxes Section 6.1. Right to Collect Delinquent Taxes .................................................................... 18 Section 6.2. Review of Taxes ............................................................................................... 18 Section 6.3. Assessment Agreement ..................................................................................... 18 ARTICLE VII Financing Section 7.1. Financing........................................................................................................... 19 Section 7.2. City’s Option to Cure Default on Mortgage ..................................................... 19 Section 7.3. Subordination and Modification for the Benefit of Mortgagee ........................ 19 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development.................................................................... 20 Section 8.2. Prohibition Against Developer’s Transfer of Property and Assignment of Agreement ................................................................................ 20 Section 8.3. Release and Indemnification Covenants ........................................................... 21 ARTICLE IX Events of Default Section 9.1. Events of Default Defined ................................................................................ 23 Section 9.2. Remedies on Default ......................................................................................... 23 Section 9.3. Revesting Title in Authority Upon Happening of Event Subsequent to Conveyance to Developer ................................................................................. 24 Section 9.4. Resale of Reacquired Property; Disposition of Proceeds ................................. 25 Section 9.5. No Remedy Exclusive....................................................................................... 25 Section 9.6. No Additional Waiver Implied by One Waiver ................................................ 26 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; City Representatives Not Individually Liable ................ 27 Section 10.2. Equal Employment Opportunity ....................................................................... 27 Section 10.3. Restrictions on Use ........................................................................................... 27 Section 10.4. Provisions Not Merged With Deed ................................................................... 27 Section 10.5. Titles of Articles and Sections .......................................................................... 27 Section 10.6. Notices and Demands ....................................................................................... 27 Section 10.7. Counterparts ...................................................................................................... 28 Section 10.8. Recording .......................................................................................................... 28 Section 10.9. Amendment ....................................................................................................... 28 Section 10.10. City Approvals .................................................................................................. 28 Agenda Page 61 iii 460980v2 MNI AL141-64 Section 10.11. Termination ....................................................................................................... 28 Section 10.12. Choice of Law and Venue ................................................................................. 28 TESTIMONIUM ....................................................................................................................... S-1 SIGNATURES ......................................................................................................................... S-1 SCHEDULE A Description of Development Property SCHEDULE B Form of Quit Claim Deed SCHEDULE C Resolution Approving Interfund Loan SCHEDULE D Certificate of Completion SCHEDULE E Assessment Agreement (The remainder of this page is intentionally left blank.) Agenda Page 62 1 460980v2 MNI AL141-64 PURCHASE AND DEVELOPMENT CONTRACT This Purchase and Development Contract is made as of the 15th day of June, 2015, by and between THE CITY OF ALBERTVILLE, a Minnesota municipal corporation (the “City”), SCANNELL PROPERTIES #227, LLC, an Indiana limited liability company (the “Developer”), and OLDCASTLE BUILDINGENVELOPE, INC., a Delaware corporation (the “Tenant”). WITNESSETH: WHEREAS, the City has undertaken a program to promote economic development and job opportunities and to promote the development of land which is underutilized within the City of Albertville (the “City”), and in this connection created a Development District known as Development District No. 1 (the “Development District”) pursuant to Minnesota Statutes, Sections 469.124 to 469.134, as amended (the “Municipal Development Act”); and WHEREAS, pursuant to the Municipal Development Act, the City is authorized to acquire real property, or interests therein, and to undertake certain activities to facilitate the development of real property by private enterprise; and WHEREAS, the City has acquired certain property described in Schedule A (the “Development Property”) within the Development District, and intends to convey that property to the Developer for development of certain improvements described herein; and WHEREAS, the City has approved a Tax Increment Financing Plan for Tax Increment Financing District No. 17 (the “TIF District”) pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the “Tax Increment Act”), made up of the Development Property; and WHEREAS, the City believes that the development of the Development Property pursuant to this Agreement, and fulfillment generally of this Agreement, are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable State and local laws and requirements under which the Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: (The remainder of this page is intentionally left blank.) Agenda Page 63 2 460980v2 MNI AL141-64 ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: “Agreement” means this Purchase and Development Contract, as the same may be from time to time modified, amended, or supplemented. “Business Subsidy Act” means Minnesota Statutes, Section 116J.993 to 116J.995, as amended. “Certificate of Completion” means the certification substantially in the form attached hereto as Schedule D and made a part hereof, provided to the Developer, pursuant to Section 4.4 of this Agreement. “City” means the City of Albertville, Minnesota. “City Representative” means the City Administrator of the City, or any person designated by the City Administrator to act as the City Representative for the purposes of this Agreement. “Closing” has the meaning provided in Section 3.3(b). “Construction Plans” means the plans, specifications, drawings and related documents on the construction work to be performed by the Developer on the Development Property which (a) shall be as detailed as the plans, specifications, drawings and related documents which are submitted to the appropriate building officials of the City, and (b) shall include at least the following for each building: (1) site plan; (2) foundation plan; (3) floor plan for each floor; (4) elevations (all sides); (5) landscape plan; and (6) 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 to the extent agreed by the Developer. “County” means the County of Wright, Minnesota. “Developer” means Scannell Properties #227, LLC, an Indiana limited liability company or its permitted successors and assigns. “Development District” means the City’s Development District No. 1. “Development Plan” means the City’s Development Plan for the Development District, as amended, as made known to the Developer. Agenda Page 64 3 460980v2 MNI AL141-64 “Development Property” means the real property described in Schedule A of this Agreement. “Event of Default” has the meaning provided in Section 9.1 hereof. “Holder” means the owner of a Mortgage. “Interfund Loan” has the meaning provided in Section 3.7 hereof. “Minimum Improvements” means the construction on the Development Property of an approximately 33,750 square foot manufacturing and warehouse facility to be leased and used by Tenant as its commercial window framing production facility. “Mortgage” means any mortgage made by the Developer or Tenant which is secured, in whole or in part, with the Development Property and which is a permitted encumbrance pursuant to the provisions of Article VIII of this Agreement. “Qualified Facility” has the meaning provided in Section 3.8(a)(6). “State” means the State of Minnesota. “Tax Increment” means that portion of the real property taxes which is paid with respect to the Development Property and which is remitted to the City as tax increment pursuant to the Tax Increment Act. “Tax Increment Act” means the Tax Increment Financing Act, Minnesota Statutes, Sections 469.174 to 469.1794, as amended. “Tax Increment District” or “TIF District” means the City’s Tax Increment Financing District No. 17. “Tax Increment Plan” or “TIF Plan” means the City’s Tax Increment Financing Plan for Tax Increment Financing District No. 17, as approved by the City on June 15, 2015, and as it may be amended from time to time. “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” means Oldcastle BuildingEnvelope, Inc., a Delaware corporation, or its permitted successors and assigns, that will operate the Minimum Improvements following the construction of the Minimum Improvements by the Developer. “Termination Date” means the earlier of (a) date of the City’s last receipt of Tax Increment from the TIF District in accordance with Section 469.176, subd. 1b(3) of the TIF Act, Agenda Page 65 4 460980v2 MNI AL141-64 or (b) the date the Interfund Loan has been paid in full, defeased, or terminated in accordance with the terms of the resolution set forth in Schedule C. “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 war, terrorism, strikes, other labor troubles, inclement weather, earthquakes, tornados, flooding, acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the City in exercising its rights under this Agreement) which directly result in delays. Unavoidable Delays shall not include delays caused by the Developer’s failure to exercise reasonable efforts to obtain permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such approval and construction is required under Sections 4.2 and 4.3 of this Agreement. (The remainder of this page is intentionally left blank.) Agenda Page 66 5 460980v2 MNI AL141-64 ARTICLE II Representations and Warranties Section 2.1. Representations by the City. The City makes the following representations as the basis for the undertaking on its part herein contained: (a) The City is a statutory city duly organized and existing under the laws of the State. Under the provisions of the Municipal Development Act, the City has the power to enter into this Agreement and carry out its obligations hereunder. (b) The activities of the City are undertaken to foster the development of certain real property which for a variety of reasons is presently underutilized, to prevent the emergence of blight, to create increased tax base and employment in the City, and to stimulate further development of the Development District as a whole. (c) The Development Property is currently zoned I-1 Limited Industrial, and the Minimum Improvements conform with the permitted land uses allowed within this zoning classification. (d) The development contemplated by this Agreement is in conformance with the development objectives set forth in the Development Plan and Tax Increment Plan. (e) The Development Property is not subject to any pending condemnation by the City, and to the best of the City’s knowledge there are no other pending proceedings that would prevent use of the Development Property by Developer in accordance with this Agreement. (f) The City has not received any notice from any local, state or federal official that the activities of the Developer, the Tenant, or the City with respect to the Development Property or the Minimum Improvements may or will be in violation of any environmental law or regulation. The City is not aware of any state or federal claim filed and, without any investigation or review, the City is not aware of any state or federal claim planned to be filed by any party relating to any violation of any local, state or federal environmental law, regulation or review procedure, and the City is not aware of any violation of any local, state or federal law, regulation or review procedure which would give any person a valid claim under the Minnesota Environmental Rights Act or other state or federal environmental statute. Section 2.2. Representations and Warranties by the Developer. The Developer represents and warrants that: (a) The Developer is a limited liability company duly organized under the laws of Indiana, and in good standing, 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 its members or managers. Agenda Page 67 6 460980v2 MNI AL141-64 (b) If the Developer acquires the Development Property in accordance with this Agreement, the Developer will construct the Minimum Improvements in accordance with the terms of this Agreement, the Development 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). (c) The Developer has received no actual notice or communication from any local, state or federal official that the activities of the Developer or the City in the Development District 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). (d) The Developer will construct the Minimum Improvements in accordance with all applicable local, state or federal laws or regulations. (e) The Developer will obtain or cause to be obtained, in a timely manner, all required permits, licenses and approvals, and will meet or cause to be satisfied, in a timely manner, all requirements of all applicable local, state and federal laws and regulations which must be obtained or met before the Minimum Improvements may be lawfully constructed. (f) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any company restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (g) The proposed development by the Developer hereunder would not occur but for the tax increment financing assistance being provided by the City hereunder. (h) The Developer is not currently in default under any business subsidy agreement with any grantor, as such terms are defined in the Business Subsidy Act. Section 2.3. Representations and Warranties by the Tenant. (a) The Tenant is a corporation, duly organized and in good standing under the laws of Delaware, is not in violation of any provisions of its articles of incorporation and bylaws, 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 its officers. (b) The Tenant will operate and maintain the Minimum Improvements in accordance with the terms of this Agreement 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). Agenda Page 68 7 460980v2 MNI AL141-64 (c) 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 Tenant is now a party or by which it is bound, or constitutes a default under any of the foregoing, which default or breach might prevent the Tenant from performing its obligations under this Agreement. Agenda Page 69 8 460980v2 MNI AL141-64 ARTICLE III Acquisition and Conveyance of Property Section 3.1. Conveyance of the Property. As of the date of this Agreement, the City owns the Development Property. The City will convey fee simple title to and possession of the Development Property to the Developer, subject to all the terms and conditions of this Agreement. The Developer will construct the Minimum Improvements on the Development Property and will enter into a lease with the Tenant pursuant to which the Tenant will operate and maintain the Minimum Improvements as provided in this Agreement. In connection with the conveyance of the Development Property, the City will execute and deliver all necessary title affidavits, certificates and agreements that may be necessary to issue an owner’s policy of title insurance without any non- survey related standard exceptions. Section 3.2. Purchase Price; Provisions for Payment. The purchase price to be paid to the City by the Developer in exchange for the conveyance of the Development Property is $1.00. The parties agree and understand that for purposes of this Agreement, the fair market price of the Development Property is $409,052, as more fully described in Section 3.7 hereof. Therefore, the purchase price represents a land write-down of $409,051. The purchase price shall be payable by the Developer in cash or certified check at Closing (as defined below). Section 3.3. Conditions of Conveyance. (a) The City shall convey title to and possession of the Development Property to the Developer by a quit claim deed substantially in the form of the deed attached as Schedule B to this Agreement. The City's obligation to convey the Development Property to the Developer and the Developer’s obligation to purchase the Development Property and otherwise perform any and all of its duties and obligations hereunder or otherwise are subject to satisfaction of the following terms and conditions: (1) The City having approved Construction Plans for the Minimum Improvements in accordance with Section 4.2. (2) The City having approved financing for construction of the Minimum Improvements in accordance with Article VII hereof, of which approval shall not be arbitrary, capricious, or unreasonable. (3) The Developer having reviewed and approved (or waived objections to) title to the Development Property as set forth in Section 3.5. (4) The Developer having reviewed and approved (or waived objections to) soil and environmental conditions as set forth in Section 3.6. (5) No uncured Event of Default under this Agreement. Conditions (1), (2), and (5) above benefit the City, and may be waived by the City. Conditions (1), (2), and (5) above also benefit the Developer, but only condition (5) may be waived by the Agenda Page 70 9 460980v2 MNI AL141-64 Developer. Conditions (3) and (4) are solely for the benefit of the Developer, and may be waived by the Developer. (b) The closing on conveyance of the Development Property from the City to the Developer shall occur upon satisfaction of the conditions specified in this Section, but no later than June 30, 2015 or at such earlier date as the parties hereto agree in writing (“Closing”). Section 3.4. Place of Document Execution, Delivery and Recording, Costs. (a) Unless otherwise mutually agreed by the City and the Developer, the execution and delivery of all deeds, documents and the payment of any purchase price shall be made at the offices of the title company selected by Developer or such other location to which the parties may agree. (b) The deed shall be in recordable form and shall be promptly recorded in the proper office for the recordation of deeds and other instruments pertaining to the Development Property. At Closing, the Developer shall pay: recording costs for the deed (excluding state deed tax) and any additional recordable documents referenced in this Agreement, if applicable; title insurance commitment fees and premiums, if any; and title company closing fees, if any. The parties agree and understand that the Development Property is exempt from property taxes for taxes payable in 2015. (c) At Closing the City shall pay or cause to be paid the state deed tax, costs of recording any instruments used to clear title encumbrances, and all outstanding taxes and special assessments against Development Property, if any. Section 3.5. Title. (a) The Developer has obtained a commitment for the issuance of a policy of title for the Development Property. The Developer shall have ten (10) days from the date of this agreement to review the state of title to the Development Property and to provide the City with a list of written objections to such title. Upon receipt of the Developer's list of written objections, the City shall proceed in good faith and with all due diligence to attempt to cure the objections made by the Developer. In the event that the City has failed to cure objections within sixty (60) days after its receipt of the Developer's list of such objections, the Developer may by the giving of written notice to the City (i) terminate this Agreement, upon the receipt of which this Agreement shall be null and void and neither party shall have any liability hereunder, or (ii) waive the objections and proceed to Closing. The City shall have no obligation to take any action to clear defects in the title to the Development Property, other than the good faith efforts described above. (b) The City shall take no actions and shall permit no actions to be lawfully taken to encumber title to the Development Property between the date of this Agreement and the time the deed is recorded pursuant to Section 3.4(b). The City expressly agrees that it will not cause or permit the attachment of any mechanics, attorneys, or other liens to the Development Property prior to Closing. Upon Closing, the City is obligated to pay all costs to discharge any encumbrances to the Development Property attributable to actions of the City, its employees, officers, agents or consultants, including without limitation any architect, contractor and or engineer. (c) The Developer shall take no actions to encumber title to the Development Property between the date of this Agreement and the time the deed is delivered to the Developer. The Agenda Page 71 10 460980v2 MNI AL141-64 Developer expressly agrees that it will not cause or permit the attachment of any mechanics, attorneys, or other liens to the Development Property prior to Closing. Notwithstanding termination of this Agreement prior to Closing, Developer is obligated to pay all costs to discharge any encumbrances to the Development Property attributable to actions of Developer, its employees, officers, agents or consultants, including without limitation any architect, contractor and or engineer. Section 3.6. Soils, Environmental Conditions. (a) Before closing on conveyance of the Development Property from the City to the Developer, the Developer may enter the Development Property and conduct any environmental, soils, geotechnical, or any other inspection, investigation, or studies deemed necessary by the Developer. If, at least 10 days before Closing the Developer determines that hazardous waste or other pollutants as defined under federal and state law exist on the property, or that the soils are otherwise unsuitable for construction of the Minimum Improvements, the Developer may at its option terminate this Agreement by giving written notice to the City, upon receipt of which this Agreement shall be null and void and no party hereto shall have any liability hereunder. (b) The Developer acknowledges that the City makes no representations or warranties as to the condition of the soils on the Development Property or its fitness for construction of the Minimum Improvements or any other purpose for which the Developer may make use of such property. The Developer further agree that it will indemnify, defend, and hold harmless the City and its governing body members, officers, and employees, from any claims arising out of the presence, if any, of hazardous wastes or pollutants on the Development Property except for any claims caused by the actions of the City and further except any claims arising out of any hazardous wastes or pollutants existed or present on the Development Property prior to the Closing. Section 3.7. Advance of Land and Other Costs; Tax Increment Interfund Loan. (a) The City has determined that the fair market price of the Development Property is $409,052. This price represents the total invested or to be invested by the City in making the Development Property available for commercial development, including the value of the raw land and all costs of special assessments for infrastructure, City trunk fees, general grading, platting, administrative and holding costs. The market value of the property includes the prepayment of all currently outstanding special assessments on the property in the amount of $157,756. The Developer shall have no responsibility for paying any of the special assessments currently assessed against the property. As described in Section 3.2 hereof, the $1 purchase price for conveyance of the Development Property represents a reduction of $409,051 from the fair market price for the Development Property. Therefore, at Closing the City will forgo receipt of the full market price of the Development Property, which represents an advance of City funds in the amount of $409,051 (the “Land Advance”). In addition, the City will forgo receipt of fees in the amount of $46,816 for sewer and water charge credits and $4,100 for development application fees (collectively the “Development Assistance”). Moreover, the City will reimburse itself for administrative costs in an amount not to exceed $57,500 (the “Administrative Costs Advance”). As such, the City will advance funds in the total amount of $517,467. Agenda Page 72 11 460980v2 MNI AL141-64 (b) The City will treat the advance described in paragraph (a) as an interfund loan (the “Interfund Loan”) within the meaning of Section 469.178, Subdivision 7 of the TIF Act. The total original principal amount of the Interfund Loan is $517,467. The terms of the Interfund Loan are described in the resolution attached as Schedule C (the “Loan Resolution”). The City will pledge Available Tax Increment, as defined in the Loan Resolution, to payment of the Interfund Loan. The Developer has no rights or interest in any Tax Increment. Solely except otherwise expressly provided in Section 3.8(c) and Section 5.1(e), in no event shall the Developer or the Tenant be obligated to pay or repay any amount of the Interfund Loan or any interest accrued thereon. (c) The Developer understands and acknowledges that the City makes no representations or warranties regarding the amount of Available Tax Increment (as defined in the Loan Resolution), or that revenues pledged to the Interfund Loan will be sufficient to pay the principal of and interest on the Interfund Loan. Any 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 Developer may rely. Section 3.8. Business Subsidy Agreement. The provisions of this Section constitute the “business subsidy agreement” for the purposes of the Business Subsidy Act. (a) General Terms. The parties agree and represent to each other as follows: (1) The subsidy provided to the Developer and the Tenant consists of Land Advance and Development Assistance as described in Section 3.7 for a total subsidy of $459,967 (collectively, the “Business Subsidy”). Although the subsidy will be provided directly to the Developer, the subsidy will be passed to the Tenant in the form of lower rents. (2) The public purposes of the subsidy are to increase net jobs in the City and the State and increase the tax base of the City and the State. (3) The goals for the subsidy are: to secure development of the Minimum Improvements on the Development Property; to maintain such improvements as a warehouse facility for the time period described in clause (6) below; and to create the jobs and wage levels in accordance with Section 3.8(b) hereof. (4) If the goals described in clause (3) are not met, the Developer and the Tenant, jointly and severally, must make the payments to the City described in Section 3.8(c). (5) The subsidy is needed to induce the Developer to construct the Minimum Improvements and the Tenant to expand its business at this site thus preserving and enhancing job and tax base growth for the City all as determined by the City upon approval of the TIF Plan. (6) The Developer or the Tenant must continue operation of the Minimum Improvements as a “Qualified Facility” for at least five years after the Benefit Date (defined hereinafter), subject to the continuing obligation described in Section 10.3 of this Agenda Page 73 12 460980v2 MNI AL141-64 Agreement. The term Qualified Facility means a distribution, warehouse or manufacturing facility leased and used by Tenant as its commercial window framing production facility, including office space necessary for and related to those activities, all within the meaning of Section 469.176, subd. 4c of the TIF Act. The improvements will be a Qualified Facility as long as the Minimum Improvements are operated by Developer or the Tenant for the aforementioned qualified uses. During any period when the Minimum Improvements are vacant and not operated for the aforementioned qualified uses, the Minimum Improvements will not constitute a Qualified Facility. (7) The Developer’s parent corporation is Scannell Development Company and the Tenant’s parent corporation is Oldcastle, Inc. (8) Neither the Developer nor the Tenant has received, nor do they expect to receive, financial assistance from any other “grantor” as defined in the Business Subsidy Act, in connection with the Development Property or the Minimum Improvements. (b) Job and Wage Goals. The “Benefit Date” of the assistance provided in this Agreement is the earlier of the date of issuance of the Certificate of Completion for the Minimum Improvements or the date the Minimum Improvements are occupied by the Developer or the Tenant. Within two years after the Benefit Date (the “Compliance Date”), the Tenant shall (i) create at least 10 full-time equivalent jobs on the Development Property, and (ii) cause the average hourly wage of the 10 created jobs to be at least $15.00 per hour, exclusive of benefits. Notwithstanding anything to the contrary herein, if the wage and job goals described in this paragraph are met by the Compliance Date, those goals are deemed satisfied despite the Tenant’s continuing obligations under Sections 3.8(a)(6) and 3.8(d). The City may, after a public hearing, extend the Compliance Date by up to one year, provided that nothing in this section will be construed to limit the City’s legislative discretion regarding this matter. (c) Remedies. If the Tenant fails to meet the goals described in Section 3.8(a)(3), the Tenant and the Developer jointly and severally, shall repay to the City upon written demand from the City a “pro rata share” of the principal amount of the Business Subsidy together with interest on that amount at the implicit price deflator as referenced in Minnesota Statutes, Section 116J.994, subdivision 6, as amended, accrued from the date of substantial completion of the Minimum Improvements to the date of payment. The term “pro rata share” means percentages calculated as follows: (i) if the failure relates to the number of jobs, the jobs required less the jobs created, divided by the jobs required; (ii) if the failure relates to wages, the number of jobs required less the number of jobs that meet the required wages, divided by the number of jobs required; (iii) if the failure relates to maintenance of the facility as a Qualified Facility in accordance with Section 3.8(a)(6), 60 less the number of months of operation as a Qualified Facility (where any month in which the Qualified Facility is in operation for at least 15 days constitutes a month of operation), commencing on the Benefit Date and ending with the date Agenda Page 74 13 460980v2 MNI AL141-64 the Qualified Facility ceases operation as determined by the City Representative, divided by 60; and (iv) if more than one of clauses (i) through (iii) apply, the average of the applicable percentages, not to exceed 100%. Nothing in this Section shall be construed to limit the City’s remedies under Article IX hereof. In addition to the remedy described in this Section and any other remedy available to the City for failure to meet the goals stated in Section 3.8(a)(3), the Tenant and the Developer agree and understand that it may not a receive a business subsidy from the City or any grantor (as defined in the Business Subsidy Act) for a period of five years from the date of the failure or until the Developer or the Tenant satisfies their repayment obligation under this Section, whichever occurs first. (d) Reports. The Tenant must submit to the City a written report regarding business subsidy goals and results by no later than February 1 of each year, commencing February 1, 2016 and continuing until the later of (i) the date the goals stated Section 3.8(a)(3) are met; (ii) 30 days after expiration of the period described in Section 3.8(a)(6); or (iii) if the goals are not met, the date the subsidy is repaid in accordance with Section 3.8(c). The report must comply with Section 116J.994, subdivision 7 of the Business Subsidy Act. The City will provide information to the Tenant regarding the required forms. If the Tenant fails to timely file any report required under this Section, the City will mail the Tenant a warning within one week after the required filing date. If, after 14 days of the postmarked date of the warning, the Tenant fails to provide a report, the Tenant and the Developer, jointly and severally, must pay to the City a penalty of $100 for each subsequent day until the report is filed. The maximum aggregate penalty payable under this Section is $1,000. Section 3.9. Payment of Administrative Costs. The parties agree that the “Administrative Costs” will be paid from the City’s authorized administrative allowance of Tax Increment, and that neither the Developer nor the Tenant has any obligation to reimburse the City for such expenditures. For purposes of this section, “Administrative Costs” means out of pocket costs incurred by the City together with staff costs of the City, all attributable to or incurred in connection with the negotiation and preparation of this Agreement, the TIF Plan, and other documents and agreements in connection with the development of the Development Property, including the Administrative Costs Advance as defined or described in Section 3.7 hereof. (The remainder of this page is intentionally left blank.) Agenda Page 75 14 460980v2 MNI AL141-64 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements. The Developer agrees that it will construct the Minimum Improvements on the Development Property in substantial compliance with the approved Construction Plans and the Tenant will operate and maintain, preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition. Section 4.2. Construction Plans. (a) Before closing on conveyance of the Development Property under Article III, the Developer shall submit to the City completed Construction Plans. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in conformity with the Development Plan, the TIF Plan, this Agreement, and all applicable State and local laws and regulations. The City will approve the Construction Plans in writing if: (i) the Construction Plans conform to the terms and conditions of this Agreement; (ii) the Construction Plans conform to the goals and objectives of the Development Plan; (iii) the Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iv) the Construction Plans are adequate to provide for construction of the Minimum Improvements; and (v) no Event of Default has occurred. No approval by the City shall relieve the Developer of the obligation to comply with the terms of this Agreement or of the Development Plan, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the Minimum Improvements in accordance therewith. No approval by the City shall constitute a waiver of an Event of Default. If approval of the Construction Plans is requested by the Developer in writing at the time of submission, such Construction Plans shall be deemed approved unless rejected in writing by the City, in whole or in part. Such rejections shall set forth in detail the reasons therefore, and shall be made within 15 days (except for any permits or approval required by the State) after the date of their receipt by the City. If the City rejects any Construction Plans in whole or in part, the Developer may submit new or corrected Construction Plans within 30 days after written notification to the Developer of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the City. The City’s approval shall not be unreasonably withheld and the City will not act in an arbitrary and capricious manner with respect to the approval thereof. Said approval shall constitute a conclusive determination that the Construction Plans (and the Minimum Improvements, constructed in accordance with said plans) comply to the City’s satisfaction with the provisions of this Agreement relating thereto. Notwithstanding the foregoing, in the event the City rejects any Construction Plans, the Developer may, in its sole discretion, elect to terminate this Agreement by a written notice to the City and the Tenant, in which event the Developer shall not be obligated to undertake the construction of the Minimum Improvements or to pay or perform any sum or any agreement, covenant, duty, or responsibility hereunder. (b) If the Developer or Tenant, as the case may be, desires to make any material change in the Construction Plans after their approval by the City, the Developer shall submit the Agenda Page 76 15 460980v2 MNI AL141-64 proposed change to the City for its approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section 4.2 of this Agreement with respect to such previously approved Construction Plans, the City shall approve the proposed change and notify the Developer in writing of its approval. Such change in the Construction Plans shall, in any event, be deemed approved by the City unless rejected, in whole or in part, by written notice by the City to the Developer, setting forth in detail the reasons therefor. Such rejection shall be made within thirty (30) 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 and the City will not act in an arbitrary and capricious manner with respect to the approval thereof. Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable Delays, the Developer must commence construction of the Minimum Improvements by September 1, 2015. Subject to Unavoidable Delays, the Developer must substantially complete construction of the Minimum Improvements by January 31, 2016. All work with respect to the Minimum Improvements to be constructed or provided by the Developer on the Development Property shall be in substantial compliance with the Construction Plans in all material respects as submitted by the Developer and approved by the City. Notwithstanding anything to the contrary herein, Developer acknowledges that the minimum market value of the Development Property specified in the Assessment Agreement under Section 6.3 will be effective as of January 2, 2016, regardless of the state of completion of the Minimum Improvements as of that date. Upon approval of the Construction Plans, the Developer agrees for itself, its successors and assigns, and every successor in interest to the Development Property, or any part thereof, that the Developer, and such successors and assigns, shall promptly begin and diligently prosecute to completion the Development of the Development Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be commenced and completed within the period specified in this Section 4.3 of this Agreement. Subsequent to conveyance of the Development Property, or any part thereof, to the Developer, and until construction of the Minimum Improvements has been completed, the Developer shall make reports, in such detail and at such times as may reasonably be requested by the City, as to the actual progress of the Developer with respect to such construction. Section 4.4. Certificate of Completion. (a) Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the Developer to construct the Minimum Improvements (including the dates for beginning and completion thereof), the City will furnish the Developer with a Certificate of Completion in substantially the form provided in Schedule D and a certificate of occupancy for the Minimum Improvements. Such certification by the City shall be (and it shall be so provided in the deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement and in the deed with respect to the obligations of the Developer, and its successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. (b) The certificate provided for in this Section 4.4 of this Agreement shall be in such form as will enable it to be recorded in the proper office for the recordation of deeds and other instruments pertaining to the Development Property. If the City shall refuse or fail to provide Agenda Page 77 16 460980v2 MNI AL141-64 any certification in accordance with the provisions of this Section 4.4 of this Agreement, the City shall, within thirty (30) days after written request by the Developer, provide the Developer with a written statement, indicating in adequate detail in what respects the Developer has failed to complete the Minimum 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 Developer to take or perform in order to obtain such certification. (c) The construction of the Minimum Improvements shall be deemed to be commenced upon beginning of excavation for the building, and shall be deemed to be substantially completed when the Developer has received a certificate of occupancy issued by the City for the Minimum Improvements. (The remainder of this page is intentionally left blank.) Agenda Page 78 17 460980v2 MNI AL141-64 ARTICLE V Insurance Section 5.1. Insurance. The Developer or Tenant will provide and maintain (or cause to be provided and maintained) 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 one hundred percent (100%) of the insurable value of the Minimum Improvements at the date of completion (excluding footers, foundations and other subsurface improvements and also excluding paved areas, sidewalks, curbs, aprons, mass grading and other site work), and with coverage available in nonreporting form on the so-called “all risk” form of policy. The interest of the City shall be protected in accordance with a clause in form and content satisfactory to the City; (ii) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner’s Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used); and (iii) Workers’ compensation insurance, with statutory coverage. (b) Upon completion of construction of the Minimum Improvements and prior to the Termination Date, the Developer or Tenant shall maintain, or cause to be maintained, at their own cost and expense, and from time to time at the request of the City shall furnish proof of the payment of premiums on, insurance as follows: (i) Insurance against loss and/or damage to the Minimum Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses (excluding footers, foundations and other subsurface improvements and also excluding paved areas, sidewalks, curbs, aprons, mass grading and other site work). (ii) Comprehensive general public liability insurance, including personal injury liability (with employee exclusion deleted), against liability for injuries to persons and/or property, in the minimum amount for each occurrence and for each 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 Tenant, in such amount as is customarily carried by like organizations Agenda Page 79 18 460980v2 MNI AL141-64 engaged in like activities of comparable size and liability exposure; provided that the Tenant may be self-insured with respect to all or any part of its liability for workers' compensation. (c) All insurance required in Article V of this Agreement shall be taken out and maintained in responsible insurance companies selected by the Developer or the Tenant that are authorized under the laws of the State to assume the risks covered thereby. Upon request, the Developer or Tenant will deposit annually with the City a certificate or certificates of the respective insurers stating that such insurance is in force and effect. Unless otherwise provided in this Article V of this Agreement each policy shall contain a provision that the insurer shall not cancel nor modify it in such a way as to reduce the coverage provided below the amounts required herein without giving written notice to the Developer or the Tenant and the City at least 30 days before the cancellation or modification becomes effective. In lieu of separate policies, the Developer or the Tenant may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein, in which event the Developer or the Tenant 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. (d) The Developer or the Tenant agree 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. In such event, the Developer or the Tenant 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 Developer or the Tenant will apply the net proceeds of any insurance relating to such damage received by the Developer or the Tenant to the payment or reimbursement of the costs thereof. The Developer or the Tenant shall complete the repair, reconstruction and restoration of the Minimum Improvements, regardless of whether the net proceeds of insurance received by the Developer or the Tenant for such purposes are sufficient to pay for the same. Any net proceeds remaining after completion of such repairs, construction, and restoration shall be the property of the Developer or the Tenant. (e) In lieu of its obligation to reconstruct the Minimum Improvements as set forth in this Section, the Developer or the Tenant shall have the option of paying to the City an amount that, in the opinion of the City and its fiscal consultant, is sufficient to pay in full the outstanding principal and accrued interest on the Interfund Loan. (f) The Developer., the Tenant and the City agree that all of the insurance provisions set forth in this Article V shall terminate upon the termination of this Agreement. Section 5.2. Subordination. Notwithstanding anything to the contrary contained in this Article V, the rights of the City with respect to the receipt and application of any proceeds of insurance shall, in all respects, be subject and subordinate to the rights of any lender under a Mortgage approved pursuant to Article VII of this Agreement. Agenda Page 80 19 460980v2 MNI AL141-64 ARTICLE VI Delinquent Taxes and Review of Taxes Section 6.1. Right to Collect Delinquent Taxes. Developer agrees for itself, its successors and assigns, in addition to the obligation pursuant to statute to pay real estate taxes, that it is also obligated by reason of this Agreement to pay before delinquency, or cause Tenant to pay before delinquency, all real estate taxes assessed against the Development Property and the Minimum Improvements. The Developer acknowledges that this obligation creates a contractual right on behalf of the City through the Termination Date to sue the Developer or its successors and assigns to collect delinquent real estate taxes and any penalty or interest thereon and to pay over the same as a tax payment to the county auditor. In any such suit in which the City is the prevailing party, the City shall also be entitled to recover its costs, expenses and reasonable attorney fees. Section 6.2. Review of Taxes. The Developer and Tenant agree that prior to the Termination Date they will not cause a reduction in the real property taxes paid in respect of the Development Property through: (a) willful destruction of the Development Property or any part thereof; or (b) willful refusal to reconstruct damaged or destroyed property pursuant to Section 5.1 of this Agreement, except as otherwise provided in Section 5.1(e). The Developer and Tenant also agree that they will not, prior to the Termination Date, apply for a deferral of property tax on the Development Property pursuant to any law, or transfer or permit transfer of the Development Property to any entity whose ownership or operation of the property would result in the Development Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City in accordance with this Agreement). Section 6.3. Assessment Agreement. (a) Upon closing on conveyance of the Development Property to the Developer under Article III hereof, the Developer shall, with the City, execute an Assessment Agreement pursuant to Minnesota Statutes, Section 469.177, subd. 8, specifying an assessor's minimum Market Value for the Development Property and Minimum Improvements constructed thereon. The amount of the minimum Market Value shall be $1,938,800 as of January 2, 2016 and each January 2 thereafter, notwithstanding the status of construction by such dates. (b) The Assessment Agreement shall be substantially in the form attached hereto as Schedule E. Nothing in the Assessment Agreement shall limit the discretion of the assessor to assign a market value to the property in excess of such assessor's minimum Market Value. The Assessment Agreement shall remain in force for the period specified in the Assessment Agreement. (The remainder of this page is intentionally left blank.) Agenda Page 81 20 460980v2 MNI AL141-64 ARTICLE VII Financing Section 7.1. Financing. (a) Before conveyance of the Development Property, the Developer shall submit to the City evidence of financing in the form of one or more loan commitments or Developer’s own funds for such construction, which is sufficient for the construction of the Minimum Improvements. Such evidence may be submitted as short term financing, long term mortgage financing, a bridge loan with a long-term take-out financing commitment, bank account statement, or any combination of the foregoing. Such commitment or commitments for short term or long term mortgage financing shall be subject only to such conditions as are normal and customary in the mortgage banking industry. (b) If the City finds that such financing is sufficiently committed and adequate in amount to provide for the construction of the Minimum Improvements, then the City shall notify the Developer in writing of its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within 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 Developer shall submit adequate evidence of financing within ten (10) days after such rejection. Approval of any subordination agreement under Section 7.3 hereof will constitute approval of financing for the purposes of this Section. (c) If the Developer finances the construction of the Minimum Improvements internally, the Developer shall provide the City with an instrument reasonably acceptable to the City, certifying as to the sufficiency of Developer funds to construct the Minimum Improvements. Section 7.2. City’s Option to Cure Default on Mortgage. In the event that there occurs a default under any Mortgage authorized pursuant to Article VII of this Agreement, the Developer shall cause the City to receive copies of any notice of default received by the Developer from the holder of such Mortgage. Thereafter, the City shall have the right, but not the obligation, to cure any such default on behalf of the Developer within such cure periods as are available to the Developer under the Mortgage documents. 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 7.3. Subordination and Modification for the Benefit of Mortgagee. In order to facilitate the Developer obtaining financing for purchase of the Development Property and for construction of the Minimum Improvements according to the Construction Plans, the City agrees to subordinate its rights under this Agreement, including without limitation its right of reverter as to the Development Property under Sections 9.3 and 9.4 hereof, provided that (a) such subordination shall be subject to such reasonable terms and conditions as the City and Holder mutually agree in writing, (b) the City’s obligation to subordinate is contingent on the City’s Agenda Page 82 21 460980v2 MNI AL141-64 approval of the financing in accordance with Section 7.1 hereof, and (c) in no event will the City subordinate its rights under the Assessment Agreement described in Section 6.3. The City shall also permit and consent to the collateral assignment of the Developer’s rights, title, interest and obligations under this Agreement to any Holder as security for such financing. ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development. The Developer represents and agrees that its purchase of the Development Property or portions thereof, and its other undertakings pursuant to the Agreement, are, and will be used, for the purpose of Development of the Development Property and not for speculation in land holding. Section 8.2. Prohibition Against Developer’s Transfer of Property and Assignment of Agreement. The Developer represents and agrees that prior to issuance of a Certificate of Completion for all of the Minimum Improvements: (a) Except as specifically described in this Agreement, the Developer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Development Property, or any contract or agreement to do any of the same, to any person or entity (collectively, a “Transfer”), without the prior written approval of the City. The term “Transfer” does not include (i) encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable the Developer or any successor in interest to the Development Property or to construct the Minimum Improvements, (ii) any lease, license, easement or similar arrangement entered into in the ordinary course of business related to operation of the Minimum Improvements, including, but not limited to, leasing of the commercial space to a qualified tenant, or (iii) any sale, conveyance, or transfer in any form to any Affiliate. Any such Transfer is subject to the provisions of this Section. It is expressly understood that any lease between the Developer and the Tenant does not constitute a transfer for purposes of this Agreement. (b) In the event the Developer, upon Transfer of the Development Property or any portion thereof either before or after issuance of the Certificate of Completion, seeks to be released from its obligations under this Agreement as to the portions of the Development Property that is transferred, the City shall be entitled to require, except as otherwise provided in the Agreement, as conditions to any such release that: (i) Any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the City, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer as to the portion of the Development Property to be transferred. Agenda Page 83 22 460980v2 MNI AL141-64 (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 Developer under this Agreement as to the portion of the Development Property to be transferred and agreed to be subject to all the conditions and restrictions to which the Developer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Development Property, or any 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 Development 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 Development 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 Development 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 Developer or any other party bound in any way by this Agreement or otherwise with respect to the Development 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 Development Property governed by this Article VIII, shall be in a form reasonably satisfactory to the City. In the event the foregoing conditions are satisfied then the Developer shall be released from its obligation under this Agreement, as to the portion of the Development Property that is transferred, assigned, or otherwise conveyed. Section 8.3. Release and Indemnification Covenants. (a) The Developer and the Tenant release from and covenant and agree that, except for negligence, willful misrepresentation, or any willful or wanton misconduct of or by any of the Protected Persons (as herein defined), the City and the governing body members, officers, agents, servants and employees thereof (collectively, the “Protected Persons”) shall not be liable for and agree, jointly and severally, to indemnify and hold harmless the Protected Persons against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Minimum Improvements. (b) Except for any breach of a term or provision under this Agreement, negligence, willful misrepresentation, or any willful or wanton misconduct of or by any of the Protected Persons, the Developer and Tenant agree, jointly and severally, to protect and defend the Protected Persons, now or forever, and further agree 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 Agenda Page 84 23 460980v2 MNI AL141-64 the acquisition, construction, installation, ownership, and operation of the Minimum Improvements. (c) Except for any breach of a term or provision under this Agreement, negligence, willful misrepresentation, or any willful or wanton misconduct of or by any of the Protected Persons, the Protected Persons shall not be liable for any damage or injury to the persons or property of the Developer, the Tenant, or their officers, agents, servants or employees or any other person who may be about the Development Property or Minimum Improvements due to any act of negligence of any person other than any of the Protected Persons. (d) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City and not of any governing body member, officer, agent, servant or employee of the City in the individual capacity thereof. (The remainder of this page is intentionally left blank.) Agenda Page 85 24 460980v2 MNI AL141-64 ARTICLE IX Events of Default; Termination Section 9.1. Events of Default Defined. The following shall be “Events of Default” under this Agreement and the term “Event of Default” shall mean, whenever it is used in this Agreement (unless the context otherwise provides) any of the following event that remains uncured by such party beyond any applicable notice, cure and/or graced period set forth in Section 9.2 and/or 9.3 below, as applicable: (a) any material failure by any party to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement or under any other agreement entered into between the Developer or the Tenant and the City in connection with development of the Development Property; and (b) any material default by Developer or Tenant under a Mortgage, beyond any applicable notice, cure and/or grace period set forth therein. Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section 9.1 of this Agreement occurs, the non-defaulting party may exercise its rights under this Section 9.2 after providing thirty (30) days written notice to the defaulting party (and any other party to this Agreement) of the Event of Default, but only if the Event of Default has not been cured within said thirty days or, if the Event of Default is by its nature incurable within thirty (30) days, the defaulting party does not provide assurances reasonably satisfactory to the non- defaulting party that the Event of Default will be cured and will be cured as soon as reasonably possible: (a) Suspend its performance under the Agreement until it receives assurances that the defaulting party will cure its default and continue its performance under the Agreement. (b) Terminate the Agreement. (c) Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. (d) Notwithstanding anything to the contrary herein, in the case of defaults by Developer or the Tenant described in Section 3.8, the City has the additional remedies specified therein, subject to the qualification described in Section 10.3. Notwithstanding any other term or condition to the contrary contained herein or otherwise, in no event shall the Developer or the Tenant be obligated or responsible for or on account of any Event of Default by the Developer or the Tenant in excess of an amount equal to any outstanding amount of the Interfund Loan as of the date of such Event of Default. Agenda Page 86 25 460980v2 MNI AL141-64 Section 9.3. Revesting Title in City Upon Happening of Event Subsequent to Conveyance to Developer. In the event that subsequent to conveyance of the Development Property to the Developer and prior to receipt by the Developer of the Certificate of Completion for the Minimum Improvements required to be constructed on the Development Property: (a) the Developer, subject to Unavoidable Delays, shall fail to begin construction of the Minimum Improvements in conformity with this Agreement and such failure to begin construction is not cured within 90 days after written notice from the City to the Developer to do so; or (b) subject to Unavoidable Delays, the Developer after commencement of the construction of the Minimum Improvements, fails to carry out its obligations with respect to the construction of such improvements in conformance with Article IV above (including the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within ninety (90) days after written demand from the City to the Developer to do so; or (c) the Developer fails to pay or cause payment of real estate taxes or assessments on the Development Property or any part thereof when due, or creates, suffers, assumes, or agrees to any encumbrance or lien on the parcel (except to the extent permitted by this Agreement), or shall suffer any levy or attachment to be made, or any materialmen’s or mechanics’ lien, or any other unauthorized encumbrance or lien to attach, and such taxes or assessments shall not have been paid, or such encumbrance or lien removed or discharged or provision satisfactory to the City made for such payment, removal, or discharge, within thirty (30) days after written demand by the City to do so; provided, that if the Developer first notifies the City of its intention to do so, it may in good faith contest any mechanics’ or other lien filed or established and in such event the City shall permit such mechanics’ or other lien to remain undischarged and unsatisfied during the period of such contest and any appeal and during the course of such contest the Developer shall keep the City informed respecting the status of such defense; or (d) there is, in violation of the Agreement, any transfer of the Development Property or any part thereof, and such violation is not cured within sixty (60) days after written demand by the City to the Developer, or if the event is by its nature incurable within 60 (sixty) days, the Developer does not, within such 60-day period, provide assurances reasonably satisfactory to the City that the event will be cured as soon as reasonably possible; or (e) the Holder of any Mortgage secured by the subject property exercises any remedy provided by the Mortgage documents (or exercises any remedy provided by law or equity) to foreclose upon the Development Property in the event of a default in any of the terms or conditions of the Mortgage, Then the City shall have the right to re-enter and take possession of the Development Property and to terminate (and revest in the City) the estate conveyed by the deed to the Developer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Development Property to the Developer shall be made upon, and that the deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Agenda Page 87 26 460980v2 MNI AL141-64 Developer and failure on the part of the Developer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, the City at its option may declare a termination in favor of the City of the title, and of all the rights and interests in and to the Development Property conveyed to the Developer, and that such title and all rights and interests of the Developer, and any assigns or successors in interest to and in the parcel, shall revert to the City, but only if the events stated in Section 9.3(a)-(e) have not been cured within the time periods provided above. Upon issuance of a Certificate of Completion by the City, the rights and remedies granted to the City under this Section 9.3 and Section 9.4 shall automatically terminate without any action on the part of any party hereto and shall be null and void thereafter without any further force or effect as against the Developer and the Tenant. Section 9.4. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in the City of title to and/or possession of the Development Property or any part thereof as provided in Section 9.3, the City shall, pursuant to its responsibilities under law, use its best efforts to sell the Development Property or part thereof as soon and in such manner as the City shall find feasible and consistent with the objectives of such law and of the Development Plan and TIF Plan to a qualified and responsible party or parties (as determined by the City) who will assume the obligation of making or completing the Minimum Improvements or such other improvements in their stead as shall be satisfactory to the City in accordance with the uses specified for such parcel or part thereof in the Development Plan and TIF Plan. During any time while the City has title to and/or possession of a parcel obtained by reverter, the City will not disturb the rights of any tenants under any leases encumbering such parcel. Upon resale of the parcel, the proceeds thereof shall be applied: (a) First, to reimburse the City for all costs and expenses incurred by it, including but not limited to salaries of personnel, in connection with the recapture, management, and resale of the parcel (but less any income derived by the City from the property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Development Property or part thereof (or, in the event the Development Property is exempt from taxation or assessment or such charge during the period of ownership thereof by the City, an amount, if paid, equal to such taxes, assessments, or charges (as determined by the City assessing official) as would have been payable if the parcel were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the parcel or part thereof at the time of revesting of title thereto in the City or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Developer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the subject improvements or any part thereof on the parcel or part thereof; and any amounts otherwise owing the City by the Developer and its successor or transferee; and (b) Second, to reimburse the Developer, its successor or transferee, no less than the amount equal to (1) the purchase price paid by Developer under Section 3.2; plus (2) the amount actually incurred or invested by it in making any of the Minimum Improvements on the Development Property or part thereof. Any balance remaining after such reimbursements shall be retained by the City as its property. Agenda Page 88 27 460980v2 MNI AL141-64 Section 9.5. No Remedy Exclusive. No remedy herein conferred upon or reserved to the City, Developer or Tenant is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition 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. In order to entitle the City to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article IX. Section 9.6. 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. Section 9.7. Termination. On the Termination Date, this Agreement shall automatically terminate without any action on the part of any party hereto and shall be null and void thereafter without any further force or effect as against an y party hereto. Notwithstanding any other term or condition to the contrary contained herein or otherwise, the Developer has a right, but not an obligation, to pay, repay, or prepay the outstanding balance of the Interfund Loan, in which event this Agreement shall automatically terminate without any action on the part of any party hereto and shall be null and void thereafter without any further force or effect as against any party hereto, the Development Property, or the Minimum Improvements. (The remainder of this page is intentionally left blank.) Agenda Page 89 28 460980v2 MNI AL141-64 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; City Representatives Not Individually Liable. The City, the Developer, and the Tenant 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 which affects his personal interests or the interests of any corporation, partnership, or association in which he is, directly or indirectly, interested. No member, official, or employee of the City shall be personally liable to the Developer, Tenant or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Developer, Tenant or successor or on any obligations under the terms of the Agreement. Section 10.2. Equal Employment Opportunity. The Developer, 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, state and local equal employment and non-discrimination laws and regulations. Section 10.3. Restrictions on Use. The Developer and Tenant agree that until the Termination Date, the Developer, the Tenant and such successors and assigns, shall use the Development Property and the Minimum Improvements thereon only as a Qualified Facility, provided that after expiration of the five-year period described in Section 3.8(a)(6), the repayment remedy described in Section 3.8(c) may not be imposed on Developer or Tenant for default under this Section, and City is limited to any other remedies available under Article IX hereof. Further, until the Termination Date the Developer and Tenant shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Development Property or any improvements erected or to be erected thereon, or any part thereof. Section 10.4. Provisions Not Merged With Deed. None of the provisions of this Agreement are intended to or shall be merged by reason of any deed transferring any interest in the Development Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 10.5. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 10.6. 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; and Agenda Page 90 29 460980v2 MNI AL141-64 (a) in the case of the Developer, is addressed to or delivered personally to the Developer at Scannell Properties #227, LLC, 800 East 96th Street, Suite 175, Indianapolis, Indiana 46240; (b) in the case of the Tenant, is addressed to or delivered personally to the Tenant at Oldcastle BuildingEnvelope, Inc., General Manager, 5334 Barthel Drive, Albertville, MN 55301; and to Vice President Legal, 5005 LBJ Freeway Suite 1050, Dallas, TX 75244; and (c) in the case of the City, is addressed to or delivered personally to the City at the City of Albertville, 5959 Main Avenue NE, P.O. Box 9, Albertville, Minnesota 55301, Attn: City Administrator; or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. Section 10.7. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 10.8. Recording. The City may record this Agreement and any amendments thereto with the County recorder. The Developer shall pay all costs for recording. Section 10.9. Amendment. This Agreement may be amended only by written agreement approved by the City, the Developer, and the Tenant. Section 10.10. City Approvals. Unless otherwise specified, any approval required by the City under this Agreement may be given by the City Representative. Section 10.11. Termination. This Agreement terminates on the Termination Date. Within thirty (30) days after the Termination Date, the City will deliver to Developer a written release in recordable form satisfactory to Developer, evidencing termination of this Agreement. Section 10.12. Choice of Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. (The remainder of this page is intentionally left blank.) Agenda Page 91 S-1 460980v2 MNI AL141-64 IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Developer and Tenant has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. CITY OF ALBERTVILLE By Its Mayor By Its City Administrator STATE OF MINNESOTA ) ) SS. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this ____ day of _____________ 2015, by _______________ and ________________, the Mayor and City Administrator of the City of Albertville, a Minnesota municipal corporation, on behalf of the City. Notary Public Agenda Page 92 S-2 460980v2 MNI AL141-64 SCANNELL PROPERTIES #227, LLC By Its STATE OF ______________) ) SS. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this _____ day of ____________, 2015 by _____________________, the ___________ of Scannell Properties #227, LLC, an Indiana limited liability company, on behalf of the company. Notary Public Agenda Page 93 S-3 460980v2 MNI AL141-64 OLDCASTLE BUILDINGENVELOPE, INC. By Its STATE OF ______________) ) SS. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this _____ day of ___________, 2015 by _____________________, the ___________ of Oldcastle BuildingEnvelope, Inc., an Delaware corporation, on behalf of the company. Notary Public Agenda Page 94 A-1 460980v2 MNI AL141-64 SCHEDULE A DESCRIPTION OF DEVELOPMENT PROPERTY Lot 1, Block 2, Barthel’s Industrial Park 2nd Addition, Wright County, Minnesota. Agenda Page 95 B-1 460980v2 MNI AL141-64 SCHEDULE B FORM OF QUIT CLAIM DEED THIS INDENTURE, between the City of Albertville, a public body corporate and politic (the “Grantor”), and Scannell Properties #227, LLC, an Indiana limited liability company, (the “Grantee”). WITNESSETH, that Grantor, in consideration of the sum of $1.00 and other good and valuable consideration the receipt whereof is hereby acknowledged, does hereby grant, bargain, quitclaim and convey to the Grantee, its successors and assigns forever, all the tract or parcel of land lying and being in the County of Wright and State of Minnesota described as follows, to-wit (such tract or parcel of land is hereinafter referred to as the “Property”): Lot 1, Block 2, Barthel’s Industrial Park 2nd Addition, according to the recorded plat thereof, Wright County, Minnesota To have and to hold the same, together with all the hereditaments and appurtenances thereunto belonging. SECTION 1. It is understood and agreed that this Deed is subject to the covenants, conditions, restrictions and provisions of an agreement recorded herewith entered into between the Grantor and Grantee on the ______ day of , 2015, identified as “Purchase and Development Contract” (hereafter referred to as the “Agreement”) and that the Grantee shall not convey this Property, or any part thereof, except as permitted by the Agreement until a certificate of completion releasing the Grantee from certain obligations of said Agreement as to this Property or such part thereof then to be conveyed, has been placed of record. This provision, however, shall in no way prevent the Grantee from mortgaging this Property in order to obtain funds for the purchase of the Property hereby conveyed or for erecting the Minimum Improvements thereon (as defined in the Agreement) in conformity with the Agreement, any applicable development program and applicable provisions of the zoning ordinance of the City of Albertville, Minnesota, or for the refinancing of the same. It is specifically agreed that the Grantee shall promptly begin and diligently prosecute to complete the Development of the Property through the construction of the Minimum Improvements thereon, as provided in the Agreement. Promptly after completion of the Minimum Improvements in accordance with the provisions of the Agreement, the Grantor will furnish the Grantee with an appropriate instrument so certifying. Such certification by the Grantor shall be (and it shall be so provided in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants of the Agreement and of this Deed with respect to the obligation of the Grantee, and its successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. All certifications provided for herein shall be in such form as will enable them to be recorded with the County Recorder, or Registrar of Titles, Wright County, Minnesota. If the Agenda Page 96 B-2 460980v2 MNI AL141-64 Grantor shall refuse or fail to provide any such certification in accordance with the provisions of the Agreement and this Deed, the Grantor shall, within thirty (30) days after written request by the Grantee, provide the Grantee with a written statement indicating in adequate detail in what respects the Grantee 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 Grantor, for the Grantee to take or perform in order to obtain such certification. SECTION 2. The Grantee’s rights and interest in the Property are subject to the terms and conditions of Section 9.3 of the Agreement relating to the Grantor’s right to re-enter and revest in Grantor title to the Property under conditions specified therein, including but not limited to termination of such right upon issuance of a Certificate of Completion as defined in the Agreement. SECTION 3. The Grantee agrees for itself and its successors and assigns to or of the Property or any part thereof, hereinbefore described, that the Grantee and such successors and assigns shall materially comply with all provisions of the Agreement that relate to the Property or use thereof for the periods specified in the Agreement, including without limitation the covenant set forth in Section 10.3 thereof. It is intended and agreed that the above and foregoing agreements and covenants shall be covenants running with the land for the respective terms herein provided, and that they shall, in any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in this Deed, be binding, to the fullest extent permitted by law and equity for the benefit and in favor of, and enforceable by, the Grantor against the Grantee, its successors and assigns, and every successor in interest to the Property, or any part thereof or any interest therein, and any party in possession or occupancy of the Property or any part thereof. In amplification, and not in restriction of, the provisions of the preceding section, it is intended and agreed that the Grantor shall be deemed a beneficiary of the agreements and covenants provided herein, both for and in its own right, and also for the purposes of protecting the interest of the community and the other parties, public or private, in whose favor or for whose benefit these agreements and covenants have been provided. Such agreements and covenants shall run in favor of the Grantor without regard to whether the Grantor has at any time been, remains, or is an owner of any land or interest therein to, or in favor of, which such agreements and covenants relate. The Grantor shall have the right, in the event of any breach of any such agreement or covenant to exercise all the rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant, to which it or any other beneficiaries of such agreement or covenant may be entitled; provided that Grantor shall not have any right to re-enter the Property or revest in the Grantor the estate conveyed by this Deed on grounds of Grantee’s failure to comply with its obligations under this Section 3. SECTION 4. This Deed is also given subject to: Agenda Page 97 B-3 460980v2 MNI AL141-64 (a) Provision of the ordinances, building and zoning laws of the City of Albertville, and state and federal laws and regulations in so far as they affect this real estate. (b) [Any other permitted encumbrances after Developer’s title review] Grantor certifies that it does not know of any wells on the Property. SECTION 5. To be effective as of the Termination Date (as defined in the Agreement), any and all rights, interests, or privileges retained or reserved by Grantor under this Deed or the Agreement shall automatically terminate without any action on the part of Grantor or Grantee and the Property shall no longer be subject to or burdened by such rights, interests, or privileges or any other restrictions, duties, or obligations imposed by or on account of this Deed or the Agreement. Grantee may execute and file in the real estate record of the Property an affidavit, statement, or certificate memorializing such termination. Agenda Page 98 B-4 460980v2 MNI AL141-64 IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly executed in its behalf by its Mayor and City Administrator and has caused its corporate seal to be hereunto affixed this ______ day of ____________, 2015. CITY OF ALBERTVILLE By Its Mayor By Its City Administrator STATE OF MINNESOTA ) ) ss COUNTY OF WRIGHT ) On this ____ day of , 2015, before me, a notary public within and for Wright County, personally appeared and to me personally known who by me duly sworn, did say that they are the Mayor and City Administrator of the City of Albertville (the “City”) named in the foregoing instrument; that the seal affixed to said instrument is the seal of said City; that said instrument was signed and sealed on behalf of said City pursuant to a resolution of its governing body; and said and acknowledged said instrument to be the free act and deed of said City. Notary Public This instrument was drafted by: Kennedy & Graven, Chartered 470 US Bank Plaza Minneapolis, Minnesota 55402 Agenda Page 99 C-1 460980v2 MNI AL141-64 SCHEDULE C CITY OF ALBERTVILLE, MINNESOTA RESOLUTION NO. ____ AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 17 BE IT RESOLVED By the Board Of Commissioners of the City of Albertville (the “City”) as follows: Section 1. Background. 1.01. The City has established Tax Increment Financing District No. 17 (the “TIF District”) within Development District No. 1 (the "Development District") pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the “TIF Act”) and Sections 469.124 to 469.134, as amended (the “Municipal Development Act”). 1.02. The City may incur certain costs related to the TIF District, which costs may be financed on a temporary basis from available City funds. 1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the City is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.04. The City owns certain property (the “Development Property”) and has incurred or will incur certain costs to prepare such property for Development. The City has determined that the market price of the improved Development Property is at least $409,052. 1.05. The City proposes to enter into a Purchase and Development Contract (the “Contract”) with Scannell Properties #227, LLC (the “Developer”) and Oldcastle BuildingEnvelope, Inc. (the “Tenant”), under which the City will convey the Development Property to the Developer for a purchase price of $1.00. 1.06. By conveying the Development Property under the Contract, at Closing the City will forgo receipt the full market price of the Development Property representing an advance of City funds in the amount of $409,051 (the “Land Advance”). In addition, the City will also grant sewer and water access charge credits to the Developer in the amount of $46,816 and a waiver of development application fees in the amount of $4,100 (collectively the “Development Assistance”). Moreover, the City has determined that it may pay for administrative costs associated with the establishment and ongoing administration of the TIF District in an amount not to exceed $57,500 (“the Administrative Costs Advance”). The Land Advance, Development Assistance and Administrative Costs Advance represent a total advance of City funds in the amount of $517,467. Agenda Page 100 C-2 460980v2 MNI AL141-64 1.07. The City intends to designate such advances as an interfund loan in accordance with the terms of this resolution and the TIF Act. Section 2. Repayment of Interfund Loan. 2.01. The City will reimburse itself for the Land Advance, the Development Assistance, and the Administrative Costs Advance in the principal amount of $517,467 together with interest at the rate of 4% per annum (the “Interfund Loan”). Interest accrues on the principal amount from the date of Closing on conveyance of the Development Property to the Developer under the Contract (hereafter, the “Closing Date”). The interest rate is no more than the greatest of the rate specified under Minnesota Statutes, Section 270C.40 and Section 549.09, both in effect for calendar year 2015. The interest rate will not be increased. 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi- annually on each August 1 and February 1 (each a “Payment Date”), commencing on the first Payment Date on which the City has Available Tax Increment (defined below), or on any other dates determined by the City Administrator, through the date of last receipt of tax increment from the TIF District. 2.03. Payments on the Interfund Loan will be made solely from Available Tax Increment, defined as tax increment from the TIF District received by the City from Wright County in the six-month period before any Payment Date, less any amounts determined by the City to be applied toward administrative expenses in accordance with the TIF Act. Payments shall be applied first to accrued interest, and then to unpaid principal. Interest accruing from the Closing Date will be compounded semiannually on February 1 and August 1 of each year and added to principal until the first Payment Date, unless otherwise specified by the City Administrator. 2.04. The principal sum and all accrued interest payable under this resolution is pre- payable in whole or in part at any time by the City without premium or penalty. 2.05. This resolution is evidence of an internal borrowing by the City in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. The Interfund Loan 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 the Interfund Loan or other costs incident hereto except out of Available Tax Increment. The City shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. Subject to a letter of consent from the Developer, the City may at any time make a determination to forgive the outstanding principal amount and accrued interest on the Interfund Loan to the extent permissible under law. 2.07. The City may from time to time amend the terms of this Resolution to the extent permitted by law, including without limitation amendment to the payment schedule and the interest rate; provided that the interest rate may not be increased above the maximum specified in Section 469.178. subd. 7 of the TIF Act. Agenda Page 101 C-3 460980v2 MNI AL141-64 Section 3. Effective Date. This resolution is effective upon execution in full of the Contract. Adopted this 15th day of June, 2015. _____________________________ Mayor ATTEST: City Administrator Agenda Page 102 D-1 460980v2 MNI AL141-64 SCHEDULE D CERTIFICATE OF COMPLETION WHEREAS, the City of Albertville, a public body corporate and politic (the "Grantor"), by a Deed dated __________ recorded in the Office of the County Recorder or the Registrar of Titles in and for the County of Wright and State of Minnesota, on __________ as Document Number _________ (the “Deed”) has conveyed to Scannell Properties #227, LLC (the "Grantee"), the following described land in County of Wright and State of Minnesota, to-wit: Lot 1, Block 2, Barthel’s Industrial Park 2nd Addition, Wright County, Minnesota and WHEREAS, the Deed contained certain covenants and restrictions set forth in Sections 1 of the Deed; and WHEREAS, said Grantee has performed said covenants and conditions insofar as it is able in a manner deemed sufficient by the Grantor to permit the execution and recording of this certification; NOW, THEREFORE, this is to certify that all building construction and other physical improvements specified to be done and made by the Grantee have been completed and the above covenants and conditions in the Deed and the agreements and covenants in Article IV of the Agreement (as described in the Deed) have been performed by the Grantee therein, and the County Recorder or the Registrar of Titles in and for the County of Wright and State of Minnesota is hereby authorized to accept for recording and to record, the filing of this instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions of Article IV of the Agreement, but the covenants created by Sections 2 and 3 of the Deed shall remain in full force and effect. Dated: _______________, 20__. CITY OF ALBERTVILLE By City Representative Agenda Page 103 E-1 460980v3 MNI AL141-64 _______________________________________________________________________________ SCHEDULE E ASSESSMENT AGREEMENT and ASSESSOR'S CERTIFICATION By and Between THE CITY OF ALBERTVILLE, MINNESOTA and SCANNELL PROPERTIES #227, LLC This Document was drafted by: KENNEDY & GRAVEN, Chartered 470 U.S. Bank Plaza Minneapolis, Minnesota 55402 Agenda Page 104 E-2 460980v3 MNI AL141-64 ASSESSMENT AGREEMENT THIS AGREEMENT, made on or as of the ____ day of _________________, 2015, and between the City of Albertville, a Minnesota municipal corporation (the "City") and Scannell Properties #227, LLC, an Indiana limited liability company (the "Developer"). WITNESSETH, that WHEREAS, on or before the date hereof the City, the Developer and Oldcastle BuildingEnvelope, Inc. have entered into a Purchase and Development Contract dated __________, 2015 (the "Development Contract"), pursuant to which the City is to facilitate development of certain property in the City hereinafter referred to as the "Property" and legally described in Exhibit A hereto; and WHEREAS, pursuant to the Development Contract the Developer is obligated to construct certain improvements upon the Property (the "Minimum Improvements"); and WHEREAS, the City and the Developer desire to establish a minimum market value for the Property and the manufacturing facility constructed thereon, pursuant to Minnesota Statutes, Section 469.177, Subdivision 8; and WHEREAS, the City and the Assessor for the County (the "Assessor") have reviewed the preliminary plans and specifications for the manufacturing facility and have inspected such improvements; NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: 1. The minimum market value which shall be assessed for the Property described in Exhibit A, together with the Minimum Improvements thereon, for ad valorem tax purposes, shall be $1,938,800 as of January 2, 2016 and each January 2 thereafter notwithstanding the progress of construction of such Minimum Improvements by such dates. 2. The minimum market value herein established shall be of no further force and effect and this Agreement shall terminate on the earlier of the following: (a) The date of receipt by the City of the final payment from the County of Tax Increments from TIF District No. 17; or (b) The date when the Interfund Loan (as defined in the Development Contract) has been paid in full, defeased or terminated in accordance with the resolution set forth in Schedule C of the Development Contract. The event referred to in Sections 2(b) of this Agreement shall be evidenced by a certificate or affidavit executed by the City. 3. This Agreement shall be promptly recorded by the City. The Developer shall pay all costs of recording. Agenda Page 105 E-3 460980v3 MNI AL141-64 4. Neither the preambles nor provisions of this Agreement are intended to, nor shall they be construed as, modifying the terms of the Development Contract between the City and the Developer. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. 6. Each of the parties has authority to enter into this Agreement and to take all actions required of it, and has taken all actions necessary to authorize the execution and delivery of this Agreement. 7. In the event any provision of this Agreement shall be held invalid and unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 8. The parties hereto agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements, amendments and modifications hereto, and such further instruments as may reasonably be required for correcting any inadequate, or incorrect, or amended description of the Property or the manufacturing facility thereon, or for carrying out the expressed intention of this Agreement, including, without limitation, any further instruments required to delete from the description of the Property such part or parts as may be included within a separate assessment agreement. 9. Except as provided in Section 8 of this Agreement, this Agreement may not be amended nor any of its terms modified except by a writing authorized and executed by all parties hereto. 10. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 11. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. Agenda Page 106 E-4 460980v3 MNI AL141-64 CITY OF ALBERTVILLE By _________________________________ Its Mayor By _________________________________ Its City Administrator STATE OF MINNESOTA ) ) SS. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this ____ day of ________, 2015 by ____________________ and ___________________________, the Mayor and City Administrator of the City of Albertville, on behalf of the City. Notary Public Agenda Page 107 E-5 460980v3 MNI AL141-64 SCANNELL PROPERTIES #227, LLC By ___________________________ Its ____________________________ STATE OF MINNESOTA ) ) SS. COUNTY OF__________ ) The foregoing instrument was acknowledged before me this _____ day of _____________, 2015 by ____________________, the ____________________ of Scannell Properties #227, LLC, an Indiana limited liability company, on behalf of the company. _________________________________ Notary Public Agenda Page 108 E-6 460980v3 MNI AL141-64 CERTIFICATION BY COUNTY ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the land upon which the improvements are to be constructed, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the above described property, hereby certifies that the values assigned to the land and improvements are reasonable. County Assessor for the County of Wright STATE OF MINNESOTA ) ) ss COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this ___ day of ____________, 2015 by _____________________, the County Assessor of the County of Wright. Notary Public Agenda Page 109 E-7 460980v3 MNI AL141-64 EXHIBIT A of ASSESSMENT AGREEMENT Legal Description of Property Lot 1, Block 2, Barthel’s Industrial Park 2nd Addition, Wright County, Minnesota Agenda Page 110 Error! Bookmark not defined. CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO .2015-026 RESOLUTION APPROVING PURCHASE AND DEVELOPMENT CONTRACT BETWEEN THE CITY OF ALBERTVILLE, SCANNELL PROPERTIES #227, LLC, AND OLDCASTLE BUILDINGENVELOPE, INC. AND APPROVING THE BUSINESS SUBSIDY AGREEMENT AND CONVEYANCE OF LAND CONTAINED THEREIN. BE IT RESOLVED by the City Council (“Council”) of the City of Albertville (“City”) as follows: Section 1. Recitals. 1.01. The City currently administers Development District No. 1 (the “Development District”); and on the date hereof approved the creation of Tax Increment Financing District No. 17 (the “TIF District”) within the Development District, all pursuant to Minnesota Statutes, Sections 469.124 to 469.134 and Sections 469.174 to 469.1794, as amended. 1.02. To facilitate development of certain property in the TIF District, the City proposes to enter into a Purchase and Development Contract (the “Contract”) between the City, Scannell Properties #227, LLC (the “Developer”), and Oldcastle BuildingEnvelope, Inc. (the “Tenant”), under which among other things the City will convey to the Developer, certain property described as Lot 1, Block 2, Barthel’s Industrial Park 2nd Addition, Wright County, Minnesota (the “Development Property”) at a cost below market value. 1.03. The assistance under the Contract constitutes a “business subsidy” exceeding $150,000 within the meaning of Minnesota Statutes, Section 116J.993 to 116J.995 (the “Business Subsidy Act”). 1.04. The “business subsidy agreement” as required under the Business Subsidy Act is included as one section of the Contract, and the City has on this date conducted a duly noticed public hearing regarding the business subsidy agreement, at which all interested persons were give an opportunity to be heard. 1.05. The City finds and determines that conveyance by the City of the Development Property to the Developer is for a public purpose and is in the public interest because it will further the objectives of the Development District, and further finds that the proposed conveyance has no relationship with the City’s comprehensive plan. Section 2. Business Subsidy and Land Sale Approved; Further Proceedings. 2.01. The Council approves the Contract as presented to the Council, including the Agenda Page 111 City of Albertville Resolution No. 2015-026 Page 2 462697v1 business subsidy agreement and provisions for the conveyance of the Development Property therein, subject to modifications that do not alter the substance of the transaction and that are approved by the Mayor and City Administrator, provided that execution of the documents by the those officials shall be conclusive evidence of their approval. 2.02. City staff and officials are authorized to take all actions necessary to perform the City’s obligations under the Contract as a whole, including without limitation execution of any deed or other documents necessary to convey the Development Property to Developer. Approved by the City Council of the City of Albertville this 15th day of June, 2015. Jillian Hendrickson, Mayor ATTEST: Kimberly A. Olson, City Clerk Agenda Page 112 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2015-027 AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTSIN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 17 BE IT RESOLVED By the City Council of the City of Albertville (the “City”) as follows: Section 1. Background. 1.01. The City has established Tax Increment Financing District No. 17 (the “TIF District”) within Development District No. 1 (the "Development District") pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the “TIF Act”) and Sections 469.124 to 469.134, as amended (the “Municipal Development Act”). 1.02. The City may incur certain costs related to the TIF District, which costs may be financed on a temporary basis from available City funds. 1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the City is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.04. The City owns certain property (the “Development Property”) and has incurred or will incur certain costs to prepare such property for Development. The City has determined that the market price of the improved Development Property is at least $409,052, representing land costs of $251,296, plus the cost of special assessments levied and pending against the Development Property in the amount of $157,756 for infrastructure improvements required to make the Development Property ready for private development (the “Special Assessments”). 1.05. The City proposes to enter into a Purchase and Development Contract (the “Contract”) with Scannell Properties #227, LLC (the “Developer”) and Oldcastle BuildingEnvelope, Inc. (the “Tenant”), under which the City will convey the Development Property to the Developer for a purchase price of $1.00. 1.06. By conveying the Development Property under the Contract, at Closing the City will forgo receipt the full market price of the Development Property representing an advance of City funds in the amount of $409,051 (the “Land Advance”). In addition, the City will also grant sewer and water access charge credits to the Developer in the amount of $46,816 and a waiver of development application fees in the amount of $4,100 (collectively the “Development Assistance”). Moreover, the City has determined that it may pay for administrative costs associated with the establishment and ongoing administration of the TIF District in an amount Agenda Page 113 City of Albertville Resolution No. 2015-027 Page 2 462629v1 MNI AL141-64 not to exceed $57,500 (“the Administrative Costs Advance”). The Land Advance, Development Assistance and Administrative Costs Advance represent a total advance of City funds in the amount of $517,167. 1.07. The City intends to designate such advances as an interfund loan in accordance with the terms of this resolution and the TIF Act. Section 2. Repayment of Interfund Loan. 2.01. The City will reimburse itself for the Land Advance, the Development Assistance, and the Administrative Costs Advance in the principal amount of $517,167 together with interest at the rate of 4% per annum (the “Interfund Loan”). Interest accrues on the principal amount from the date of Closing on conveyance of the Development Property to the Developer under the Contract (hereafter, the “Closing Date”). The interest rate is no more than the greatest of the rate specified under Minnesota Statutes, Section 270C.40 and Section 549.09, both in effect for calendar year 2015. The interest rate will not be increased. 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi- annually on each August 1 and February 1 (each a “Payment Date”), commencing on the first Payment Date on which the City has Available Tax Increment (defined below), or on any other dates determined by the City Administrator, through the date of last receipt of tax increment from the TIF District. 2.03. Payments on the Interfund Loan will be made solely from Available Tax Increment, defined as tax increment from the TIF District received by the City from Wright County in the six-month period before any Payment Date, less any amounts determined by the City to be applied toward administrative expenses in accordance with the TIF Act. Payments shall be applied first to accrued interest, and then to unpaid principal. Interest accruing from the Closing Date will be compounded semiannually on February 1 and August 1 of each year and added to principal until the first Payment Date, unless otherwise specified by the City Administrator. 2.04. The principal sum and all accrued interest payable under this resolution is pre- payable in whole or in part at any time by the City without premium or penalty. 2.05. This resolution is evidence of an internal borrowing by the City in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. The Interfund Loan 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 the Interfund Loan or other costs incident hereto except out of Available Tax Increment. The City shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. Subject to a letter of consent from the Developer, the City may at any time make a Agenda Page 114 City of Albertville Resolution No. 2015-027 Page 3 462629v1 MNI AL141-64 determination to forgive the outstanding principal amount and accrued interest on the Interfund Loan to the extent permissible under law. 2.07. The City may from time to time amend the terms of this Resolution to the extent permitted by law, including without limitation amendment to the payment schedule and the interest rate; provided that the interest rate may not be increased above the maximum specified in Section 469.178. subd. 7 of the TIF Act. Section 3. Effective Date. This resolution is effective upon execution in full of the Contract. Adopted by the Albertville City Council this 15th day of June, 2015. _____________________________ Jillian Hendrickson, Mayor ATTEST: Kimberly A. Olson, City Clerk Agenda Page 115 Agenda Page 116 Agenda Page 117 Agenda Page 118 Agenda Page 119 Agenda Page 120 Agenda Page 121 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\061515\2015-06-15 El Bamba Liquor License.doc Meeting Date: June 15, 2015 June 12, 2015 SUBJECT: CITY CLERK – LIQUOR LICENSE FOR EL BAMBA RESTAURANT, LOCATED AT 5986 MAIN AVE NE RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve a 3.2% Malt Liquor Licenses for El Bamba restaurant, 5986 Main Avenue NE contingent upon payment of liquor license fees, proof of liquor liability insurance, successful background check, and compliance with Temporary Certificate of Occupancy. BACKGROUND: Dilque Zea has submitted a liquor license application for El Bamba restaurant, located at 5986 Main Avenue NE. The applicant will be taking over management of the restaurant and wishes to serve wine and beer at the establishment. The establishment will also utilize the outdoor seating area on the property. The applicant has indicated they will play amplified music through speakers in the outdoor seating area. This music does not fall under the requirements where a Temporary Outdoor Music Permit would be necessary. Upon review of the submitted application for Wine and 3.2% Malt Liquor Licenses, it was identified that intoxicating liquor (anything above 3.2% alcohol) would require seating for at least 25 patrons and would need to comply with Albertville’s City Code for required fencing around outdoor areas where intoxicating liquor would be sold. Staff contacted the MN Alcohol and Gambling Enforcement Division (MN AGED) office due to concerns about reduced seating capacity during the winter months and MN AGED staff advised they would recommend denial of the wine license if there was not seating for 25 patrons year round. This information was relayed to the applicant and they would like to move forward with the 3.2% Malt Liquor License. The applicant plans to meet with the City Planner and Building Official in the next week to see if there is a way to meet the fencing requirements for the intoxicating liquor. In regards to the City Code relating to the fencing requirements, it was noted in the review process that the City Code only requires fencing for the intoxicating liquor, but not 3.2% malt liquor. Staff is seeking Council direction if the Council wants to hold the same standard for 3.2% malt liquor as for intoxicating liquor. There are no State Statutes that regulate fencing of outdoor liquor sales, but instead is a local restriction in the City Code. The State only requires that the outdoor are where liquor is to be served is “compact and contiguous” to the licensed establishment. KEY ISSUES: • The applicant must pass a background check by the Wright County Sheriff’s Office and the MN Bureau of Criminal Apprehension. Agenda Page 122 Mayor and Council Request for Action – June 15, 2015 El Bamba Liquor License Page 2 of 2 M:\Public Data\City Council\Council Packet Information\2015\061515\2015-06-15 El Bamba Liquor License.doc Meeting Date: June 15, 2015 • There are no fire code violations. • The Building Official noted that the current owner/manager never obtained a permit for the large outdoor sign for the restaurant and recommends the license be contigent upon issuance of that permit to complete the Temporary Certificate of Occupancy. There are no other building permit concerns and the applicant is aware of the permits needed for any changes to the property. • There are no special assessments or fines on the property. • The license fee has been pro-rated for the remaining portion of the year. • The applicant has voluntarily enhanced the coverage of the trash enclosure to better screen the dumpster and has agreed to signage for handicapped parking. • If there is a way to accommodate the fencing for intoxicating liquor sales outside, the applicant plans to submit the Wine License application at the July 6 meeting. • The applicant has been informed that ultimately the MN AGED office must inspect and find seating for 25 patrons and MN AGED holds final approval of a Wine License. POLICY/PRACTICES CONSIDERATIONS: The Mayor and City Council have the authority to review and approve or deny liquor license applications received by the City of Albertville. Once City approval is granted, the 3.2% Malt Liquor License must be certified by MN AGED. FIINANCIAL CONSIDERATIONS: The revenue collected from the applicant for the liquor license is $210.00 and will be pro-rated for the remainder of the year as regulated by City Code Section 4-1-8. Responsible Person - Department: Kimberly A. Olson, City Clerk Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: New Liquor License Application MN State Liquor Forms Agenda Page 123 Agenda Page 124 Agenda Page 125 Agenda Page 126 Agenda Page 127 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\061515\2015-06-15 Planning & Parks Ordinance RCA.doc Meeting Date: June 15, 2015 June 15, 2015 SUBJECT: PLANNING - CITY CODE AMENDMENTS FOR AMENDING TITLE 2, CHAPTER, 2, PLANNING COMMISSION AND ESTABLISHING TITLE 2, CHAPTER 3, PARK COMMITTEE RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following motion: MOTION TO: • Adopt Ordinance No. 2015-04 Amending City Code, Title 2 - Boards and Commissions, Chapter 2 - Planning Commission • Adopt Ordinance No. 2015-05 Amending Title 2 - Boards and Commissions, establishing a Chapter 3 - Parks Committee BACKGROUND: The City Council has had growing concerns over the Planning Commission attendance and the need to have a full Planning Commission to hear and provide recommendations on development applications and City policy. The attached ordinance amends the City Code, Title 2, Chapter 2, Planning Commission to outline new rules for attendance. This amendment outlines: 1. Allowance for excused absences for Planning Commissioners for reasons of work, out of town trips, illness, or other justifiable reasons. To be an excused absence, the Planning Commissioner must notify City staff at least four days in advance of the scheduled meeting. 2. The code outlines that if absences are frequent or reoccurring in a given year, it may be grounds for removal from the Planning Commission. In 2005, Resolution 2005-19 was approved establishing the Parks Committee. Staff believes the Parks Committee should also be formally established in the City Code as a way to be consistent with both commissions. POLICY CONSIDERATIONS: A draft ordinance was reviewed by the Parks Committee and they recommended approval of the draft ordinance by the City Council. The Planning Commission held a public hearing on June 8, 2015 for the City Code amendment. The Commission recommended that the City Council approve the ordinance amendment as written. FINANCIAL CONSIDERATIONS: There are no significant financial issues related to the City code amendment. Agenda Page 128 Mayor and Council Request for Action – (June 15, 2015) Commission Code Amendments Page 2 of 2 M:\Public Data\City Council\Council Packet Information\2015\061515\2015-06-15 Planning & Parks Ordinance RCA.doc Meeting Date: June 15, 2015 LEGAL CONSIDERATIONS: In accordance with Council procedures, the Mayor and Council have the authority to amend the City code, which requires a majority vote of the City Council and becomes effective upon publication. Responsible Person/Title: Alan Brixius, City Planner Kimberly Olson, City Clerk Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Planning Memo dated June 3, 2015 Draft Ordinance Amendments Agenda Page 129 MEMORANDUM TO: Adam Nafstad FROM: Alan Brixius DATE: June 3, 2015 RE: Albertville – Planning Commission Rules FILE NO: 163.05 – 15.05 The City Council has growing concerns over the Planning Commission attendance and the need to have a full Planning Commission to hear and provide recommendations on development applications and City policy. The attached ordinance amends the City Code, Title 2, Chapter 2, Planning Commission to outline new rules for attendance. This amendment outlines: 1. Allowance for excused absences for Planning Commissioners for reasons of work, out of town trips, illness, or other justifiable reasons. To be an excused absence, the Planning Commissioner must notify City staff at least four days in advance of the scheduled meeting. 2. The code outlines that if absences are frequent or reoccurring in a given year, it may be grounds for removal from the Planning Commission. Attached for reference: Exhibit A: Draft Ordinance Amendment Exhibit B: 2015 Development Review Schedule Exhibit B is the City’s development application review schedule and identifies the Planning Commission dates for 2015. If meetings are cancelled, we attempt to notify Planning Commissioners one week in advance. The role of the Planning Commissioner is important in advising the City Council on actions for each development request. In this light, full attendance and participation is needed to ensure each application is fully vetted. We ask the Planning Commissioners to review the proposed amendment and provide comments and/or modifications for Council consideration. c: Kim Olson, Sue Schwalbe, Paul Heins, Mike Couri Agenda Page 130 2015 DEVELOPMENT REVIEW SCHEDULE (Updated 12/17/2014) REQUIRED PRE- APPLICATION STAFF MEETING 10:00 AM Tuesday following a City Council meeting (exception – holidays) PROJECT PLANS INFORMATION DUE 4 weeks BEFORE Planning Commission meeting date (note below)* PUBLIC HEARING NOTICE DUE City deadline for North Crow River News publication Thursday – 12:00 P.M. (exception – holidays) PLANNING COMMISSION MEETING 2ND Tues. each month* 7:00 PM Albertville City Hall – Council Chamber (*exception – holidays) STAFF AND APPLICANT MEETING A 60-day Notice will be distributed to the applicant at this time. Revised plans will be due to Staff two weeks from this date. CITY COUNCIL MEETING 1st & 3rd Monday each month** 7:00 PM Albertville City Hall – Council Chamber (**exception – holidays) November 18, 2014 December 16, 2014 December 24, 2014 January 13, 2015 January 14, 2015 February 2, 2015 December 2, 2014 or **February 17, 2015 December 16, 2014 January 13, 2015 January 22, 2015 February 10, 2015 February 11, 2015 March 2, 2015 January 6, 2015 or March 16, 2015 January 20, 2015 February 10, 2015 February 19, 2015 March 10, 2015 March 11, 2015 April 6, 2015 February 3, 2015 or April 20, 2015 February 17, 2015 March 17, 2015 March 26, 2015 April 14, 2015 April 15, 2015 May 4, 2015 March 3, 2015 or May 18, 2015 March 17, 2015 April 14, 2015 April 23, 2015 May 12, 2015 May 13, 2015 June 1, 2015 April 7, 2015 or June 15, 2015 April 21, 2015 May 12, 2015 May 21, 2015 June 9, 2015 June 10, 2015 July 6, 2015 May 5, 2015 or July 20, 2015 * Note: This schedule will be followed without exception. If meeting dates or project due dates are missed, this will result in the Planning Commission review of the request being delayed at least one month. One complete copy of the entire application packet shall be submitted to the City Consultant Engineer, City Consultant Planner and City Attorney on the same date that the application is filed at City Hall. The City Consultant Planner will review the application materials for completeness and submit a letter to the applicant, within 10 days of receipt of the application packet, indicating whether the application is deemed complete or listing materials that are required prior to initiating the formal review process. ** Estimated City Council and Planning Commission meeting date only. It is the City’s policy that all issues are resolved and plans revised and submitted for review by City Staff prior to scheduling for City Council consideration of the project. EXHIBIT B Agenda Page 131 2015 DEVELOPMENT REVIEW SCHEDULE (Updated 12/17/2014) REQUIRED PRE- APPLICATION STAFF MEETING 10:00 AM Tuesday following a City Council meeting (exception – holidays) PROJECT PLANS INFORMATION DUE 4 weeks BEFORE Planning & Zoning Commission meeting date (note below)* PUBLIC HEARING NOTICE due to NO. CROW RIVER NEWS for publication City deadline to newspaper Thursday – 12:00 P.M. (exception – holidays) PLANNING & ZONING COMMISSION MEETING 2ND Tues. of ea. month* 7:00 PM Albertville City Hall – Council Chamber (*exception – holidays) STAFF AND APPLICANT MEETING A 60-day Notice will be distributed to the applicant at this time. Revised plans will be due to Staff two weeks from this date. CITY COUNCIL MEETING 1st & 3rd Monday of each month** 7:00 PM Albertville City Hall – Council Chamber (**exception – holidays) May 19, 2015 June 16, 2015 June 24, 2015 July 14, 2015 July 15, 2015 August 3, 2015 June 2, 2015 or August 17, 2015 June 16, 2015 July 15, 2015 July 23, 2015 August 11, 2015 August 12, 2015 **September 8, 2015 July 7, 2015 or September 21, 2015 July 21, 2015 August 14, 2015 August 20, 2015 September 2015 - TBD September 2015 - TBD October 5, 2015 August 4, 2015 or October 19, 2015 August 18, 2015 September 15, 2015 September 24, 2015 October 13, 2015 October 14, 2015 November 2, 2015 September 8, 2015 or November 16, 2015 September 22, 2015 October 13, 2015 October 22, 2015 November 10, 2015 November 11, 2015 December 7, 2015 October 6, 2015 or December 21, 2015 October 20, 2015 November 10, 2015 November 19, 2015 December 8, 2015 December 9, 2015 January 4, 2016 November 3, 2015 or **January 9, 2016 November 17, 2015 December 15, 2015 December 22, 2015 January 12, 2016 January 1, 2016 February 7, 2016 December 7, 2015 or **February 22, 2016 * Note: This schedule will be followed without exception. If meeting dates or project due dates are missed, this will result in the Planning Commission review of the request being delayed at least one month. One complete copy of the entire application packet shall be submitted to the City Consultant Engineer, City Consultant Planner and City Attorney on the same date that the application is filed at City Hall. The City Consultant Planner will review the application materials for completeness and submit a letter to the applicant, within 10 days of receipt of the application packet, indicating whether the application is deemed complete or listing materials that are required prior to initiating the formal review process. ** Estimated City Council and Planning Commission meeting date only. It is the City’s policy that all issues are resolved and plans revised and submitted for review by City Staff prior to scheduling for City Council consideration of the project. EXHIBIT B Agenda Page 132 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO. 2015-04 AN ORDINANCE AMENDING TITLE 2, BOARDS AND COMMISSIONS, CHAPTER 2, PLANNING COMMISSION THE CITY COUNCIL OF THE CITY OF ALBERTVILLE, MINNESOTA ORDAINS: SECTION 1. Title 2, Board and Commissions, Chapter 2, Planning Commission of the Albertville City Code is hereby amended to repeal the language stricken and add the underlined language as follows: CHAPTER 2 PLANNING COMMISSION SECTION: 2-2-1: Commission Established 2-2-2: Composition; Appointment, Removals 2-2-3: Terms of Office; Vacancies 2-2-4: Oath of Office 2-2-5: Organization and Meetings 2-2-6: Powers and Duties 2-2-7: Expenditures 2-2-8: Planning Commission Liaison 2-2-1: COMMISSION ESTABLISHED: A Planning Commission for the City is hereby established. The commission shall be the city planning agency. 2-2-2: COMPOSITION; APPOINTMENT; REMOVALS: A. Composition. The Planning Commission shall consist of five (5) members and a City Council Liaison. B. Appointment. All Planning Commission members shall be appointed by the City Council. C. Removal/Absences. 1. Removal. The City Council may remove a Planning Commissioner with a four- fifths (4/5) vote of the Council. Agenda Page 133 City of Albertville Ordinance No. 2015-04 Page 2 2. Absences. Planning Commissioners shall attend regularly scheduled meetings and special meetings scheduled two weeks prior to a meeting date. A Planning Commission member may be excused from an individual meeting for reasons of illness, work, out of town trips, or other justifiable reason. To qualify as an excused absence, a Planning Commission member shall notify the city clerk of the expected absence at least four (4) days in advance of the meeting. a. A Planning Commission member may be replaced upon three (3) unexcused absences, three (3) consecutive excused or unexcused absences, or four (4) absences in a calendar year. b. If the Planning Commission member exceeds the aforementioned allowances for absences, the City Council may move to replace said Planning Commission member. 2-2-3: TERMS OF OFFICE; VACANCIES: Of the members of the Commission first appointed, one shall be appointed for the term of one year, one for the term of two (2) years, one for the term of three (3) years and one for the term of four (4) years. Their successors shall be appointed for terms of four (4) years. Both original and successive appointees shall hold their office until their successors are appointed and qualified. Vacancies during the term shall be filled by the Council for the unexpired portion of the term. 2-2-4: OATH OF OFFICE: Every appointed member shall, before entering upon the discharge of his duties, take an oath that he will faithfully discharge the duties of his office. 2-2-5: ORGANIZATION AND MEETINGS: A. Officers: The Commission shall elect a chairman from among its appointed members for a term of one year, and the Commission may create and fill such other offices as it may determine. The City Clerk shall act as secretary of the Planning Commission but shall not be a member. B. Meetings: The Commission shall hold at least one regular meeting each month, unless no business is scheduled. C. Rules, Records And Reports: The Commission shall adopt rules for the transaction of business and shall keep a record of its resolutions, transactions and findings, which record shall be a public record. 2-2-6: POWERS AND DUTIES: A. Generally: The Planning Commission shall be the planning agency and shall have the powers and duties given such agencies generally by Minnesota statutes sections 462.351 through 462.364 and any amendments thereto. It shall also exercise the duties conferred upon it by this chapter. Agenda Page 134 City of Albertville Ordinance No. 2015-04 Page 3 B. Zoning Ordinances; Public Hearings: No zoning ordinances or amendments thereto shall be adopted by the Council until a public hearing has been held thereon by the Planning Commission or the Council upon notice as provided in Minnesota statutes section 462.357, subdivision 3. 2-2-7: EXPENDITURES: Expenditures of the Commission shall be within amounts appropriated by the City Council for the purpose. 2-2-8: PLANNING COMMISSION LIAISON: The Cty Council shall appoint two (2) members of the Council to be the primary and secondary Planning Commission liaisons. The liaisons shall attend the planning commission meetings. In the case that a quorum is not present, the Planning Pommission liaison will serve as an alternate voting member on the Planning Commission. When a quorum is present, the liaison will not serve as a voting member on the Planning Commission. This amendment shall be in full force and effective immediately following its passage and publication. Adopted by the Albertville City Council this 15th day of June, 2015. ___________________________________ Jillian Hendrickson, Mayor ATTEST: ______________________________ Kimberly A. Olson, City Clerk Agenda Page 135 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO.: 2015-05 AN ORDINANCE AMENDING TITLE 2 (BOARDS AND COMMISSIONS) OF THE CITY CODE CREATING CHAPTER 3 PARKS COMMITTEE The City Council of the City of Albertville, Minnesota hereby amends Title 2 (Boards and Commissions) to establish Chapter 3 (Parks Committee) as follows: Section 1. Title 2, Board and Commissions, of the Albertville City Code is hereby amended to add the following language as follows: CHAPTER 3 PARKS COMMITTEE 2-3-1: Commission Established 2-3-2: Vision, Mission, and Purpose 2-3-3: Membership 2-3-4: Term of Office 2-3-5: Vacancy 2-3-6: Officers 2-3-7: Compensation 2-3-8: Meetings 2-3-9: Quorum Section 1. ESTABLISHMENT: A Parks Committee for the City is hereby established to serve as an advisory committee to the City Council. Section 2. VISION, MISSION, AND PURPOSE: A. Vision: The vision of the Parks Committee is to create, sustain, and preserve excellent parks, trails, and open spaces to enhance the lives of current and future generations of Albertville residents. B. Mission: The mission of the Parks Committee is to contribute vision, leadership, and recommendations to the Albertville City Council for the best use and development of Albertville’s parks, trails, and open spaces. Agenda Page 136 City of Albertville Ordinance No. 2015-05 Page 2 C. Purpose: The purpose for which this Parks Committee is organized shall be to work as a team to: 1. Study and determine the park, recreation, and open space needs of the City and serve as an advisory body providing recommendations to the City Council on matters pertaining to the planning, programming, evaluating, and funding of park and recreation facilities and programs. 2. Recommend annual priorities to the City Council, with reference to the City of Albertville Master Plan for Parks, Trails and Open Space, for the acquisition, development, operation, and maintenance of recreation areas, natural areas, facilities, and programs. The recommended annual plan for the ensuing fiscal year, together with an estimate of the cost thereof, shall be submitted no later than July 1 for the following calendar year. 3. Support the mission of the Albertville Parks Department. Section 3. MEMBERSHIP: A. Committee Structure: The City Parks Committee shall consist of six (6) members: 1. One (1) Albertville City Council member 2. Five (5) citizen members All members must be Albertville residents and all shall have equal rights and privileges. B. Appointment of Members: 1. The City Council shall directly appoint their representatives. 2. The City Council may appoint a City employee liaison to the committee. 3. The remaining members shall apply for the position according to the following procedure: C. Application Procedure: 1. Any vacancies shall be advertised in the official newspaper and notices shall be published on or at City resources as directed by the City Council. Applicants will be asked to submit a letter of interest and include a resume. 2. All applications shall be submitted to the City Clerk at the Albertville City Hall. The Parks Committee shall review all applications and make a recommendation by majority vote to the City Council for an appointment to the Parks Committee. Agenda Page 137 City of Albertville Ordinance No. 2015-05 Page 3 3. A letter of interest addressing the following information shall be submitted with a resume: a. Please tell us why you are interested in applying. b. Please tell us about your work experiences. c. Please tell us about any prior or current civic involvement. d. Please tell us about your educational experiences. e. Please tell us about any “life experiences” that my help you fulfill a committee position. f. Please tell us what time commitment you can provide your committee beyond regular meetings. g. Please tell us what you think you can contribute. h. Please disclose any affiliations that may be construed as a conflict of interest. Section 4. TERM OF OFFICE: A. Term and Term Limits: The term of the members shall be for two (2) years, and shall be staggered so that no more than three members’ terms expire in a given year. All regular terms shall expire December 31st. Current members may submit a letter of interest indicating their interest in serving another term upon the expiration of the previous term. To ensure that the terms are staggered, the charter members will have the following initial terms: Council member 1-year term Citizen A 2-year term Citizen B 1-year term Citizen C 2-year term Citizen D 1-year term Citizen E 2-year term B. Early Dismissal: Any member of the Parks Committee who misses three consecutive meetings per year, or acts in a manner inappropriate to the duties of the Parks Committee is subject to removal at the pleasure of the Albertville City Council. Section 5. VACANCY: Any vacancy in the regular membership prior to term expiration shall be filled by the City Council and such appointee shall serve for the remainder of the unexpired term. . Section 6. OFFICERS: A. Appointments: Officers shall be appointed at the first regularly scheduled meeting of the New Year. The Parks Committee shall appoint from its membership a chair, vice- chair, and secretary. Agenda Page 138 City of Albertville Ordinance No. 2015-05 Page 4 B. Duties of Chair: The chair shall preside at all meetings of the Parks Committee and shall have the duties normally conferred by parliamentary usage of such officers. C. Duties of Vice-Chair: The vice-chair shall act for the chair in his/her absence. D. Duties of Secretary: The secretary shall provide to the City Clerk minutes and records of the Parks Committee. The City Clerk shall keep the minutes and records, arrange proper and legal notice of hearings when necessary, attend to the correspondence of the Committee, and other duties as are normally carried out by a secretary. E. Public Works Supervisor: The Public Works Supervisor shall serve as the City employee liaison to the Parks Committee. The Public Works Supervisor shall assist with preparation of agendas, arrange proper and legal notice of hearings when necessary, and other duties as are normally carried out by a City employee representative. Section 7. COMPENSATION: Effective as of publication of this ordinance, Committee members shall receive $25.00 per diem for attending their regular meetings. Per diem for special meetings will be subject to approval by the City Council. Section 8. MEETINGS: A. Regular meetings will be held bi-monthly or as needed. The meeting night shall be the 4th Monday of the month at 8:00 p.m. In the event of a conflict with holidays or other events, the Chair may change the date with proper notice. B. Special meetings may be called by the Chair or any two duly appointed members. C. The Committee may establish and appoint committees. These committees shall meet at the direction of the Committee and shall report back to the Committee. D. All meetings shall be open to the general public. Section 9. QUORUM: A. A quorum consisting of a majority of duly appointed members shall be present at any meeting in which official action is taken. This ordinance shall be effective upon its passage and publication. Adopted by the Albertville City Council this 15th day of June, 2015. Jillian Hendrickson, Mayor Agenda Page 139 City of Albertville Ordinance No. 2015-05 Page 5 ATTEST: Kimberly A. Olson, City Clerk Agenda Page 140 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\061515\Central Park Master Plan -Amendments - RCA.docx Meeting Date: June 15, 2015 June 15, 2015 SUBJECT: PLANNING – CENTRAL PARK MASTER PLAN AMENDMENTS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following motion: MOTION TO: Adopt Resolution No. 2015-028 Central Park Master Plan Park Amendments BACKGROUND: In 2012, the City of Albertville adopted the Central Park Master Plan to serve as a guide for future improvements to the park. Since its adoption, the City has moved ahead to the identified desired improvements (i.e., caboose and trail improvements). Since the adoption of the original plan, the Lion’s Park portion of Central Park has been scrutinized further and the Park Committee has requested some adjustments to the park design to improve site access and plan layout for functions such as Friendly City Days, Farmers Market, and Music in the Park. KEY ISSUES: 1. Entrance. The original plan calls for a pronounced park entrance for Central Park, including fencing, gateway, and landscaping to be located at the northeast corner of the park. The revised site plan maintains a pronounced entrance but relocates the entrance to the center of the lot along Main Avenue NE. This amendment is proposed to accomplish the following objectives: • The relocation moves the entranceway from the railroad tracks. The railroad is an unsightly feature that would detract from the City’s attractive park entrance. The new entrance will provide an attractive streetscape element along Main Avenue. • The Main Avenue entrance will serve both pedestrians and vehicles. A 12 foot wide path will extend from Main Avenue west through the park all the way to the parking area. This path is intended to serve as a drive lane for service vehicles associated with special events (i.e., Friendly City Days, Farmers Market, or events occurring at the Depot/stage). This vehicle access will only be for set up and take down of events. Other times it will be a pedestrian midway for those enjoying the park or community events. 2. Friendly City Days/Farmers Market. The design changes attempt to facilitate an improved layout for the City’s annual Central Park events by establishing spaces for rides, vendors, and displays. The sidewalk and trail arrangements attempt to provide durable pedestrian ways for residents visiting these events. 3. Depot/Stage/Caboose. The plan changes attempt to improve access to these areas for both service vehicles and pedestrians with the following: Agenda Page 141 Mayor and Council Request for Action – (June 15, 2015) Central Park Master Plan - Amendments Page 2 of 2 M:\Public Data\City Council\Council Packet Information\2015\061515\Central Park Master Plan -Amendments - RCA.docx Meeting Date: June 15, 2015 • A service drive extends around the caboose to accommodate service vehicles for deliveries, event set up, and maintenance of the Depot and caboose. • A hard surface plaza area is proposed in front of the stage for Music in the Park seating. • Sidewalks and path connections are provided to and around the Depot and caboose to invite people to tour these facilities. POLICY CONSIDERATIONS: On June 9, 2015 the Planning Commission reviewed the Central Park Master Plan Amendments. The Commission recommended that the City Council approve the resolution. FINANCIAL CONSIDERATIONS: There are no significant financial issues related to the Central Park Master Plan amendments. LEGAL CONSIDERATIONS: In accordance with Council procedures, the Mayor and Council have the authority to amend the City’s Comprehensive Park Plan with a majority vote of the City Council and becomes effective upon publication. Responsible Person/Title Alan Brixius/City Planner Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Planning Memo dated June 3, 2015 Resolution No. 2015-028 Agenda Page 142 MEMORANDUM TO: Adam Nafstad FROM: Alan Brixius DATE: June 3, 2015 RE: Albertville – Central Park Master Plan Amendments FILE NO: 163.05 BACKGROUND In 2012, the City of Albertville adopted the Central Park Master Plan to serve as a guide for future improvements to the park (see Exhibits A, B, and C). Since its adoption, the City has moved ahead to the identified desired improvements (i.e., caboose and trail improvements). Since the adoption of the original plan, the Lion’s Park portion of Central Park has been scrutinized further and the Park Committee has requested some adjustments to the park design to improve site access and plan layout for functions such as Friendly City Days, farmers market, and Music in the Park. Attached for reference: Exhibit A: 2012 Central Park Plan Exhibit B: 2012 Park Entrance Concept Exhibit C: 2012 East End Perspective Exhibit D: 2015 Revised Park Plan ANALYSIS Exhibits A, B and C show the original park plan layout. Exhibit D illustrates the new proposed plan. The changes involve the following: 1. Entrance. The original plan calls for a pronounced park entrance for Central Park, including fencing, gateway, and landscaping to be located at the northeast corner of the park. The revised site plan maintains a pronounced entrance but relocates the entrance to the center of the lot along Main Avenue. This amendment is proposed to accomplish the following objectives: • The relocation moves the entranceway from the railroad tracks. The railroad is an unsightly feature that would detract from the City’s attractive Agenda Page 143 park entrance. The new entrance will provide an attractive streetscape element along Main Avenue. • The Main Avenue entrance will serve both pedestrians and vehicles. A 12 foot wide path will extend from Main Avenue west through the park all the way to the parking area. This path is intended to serve as a drive lane for service vehicles associated with special events (i.e., Friendly City Days, farmers market, or events occurring at the Depot/stage). This vehicle access will only be for set up and take down of events. Other times it will be a pedestrian midway for those enjoying the park or community events. 2. Friendly City Days/Farmers Market. The design changes attempt to facilitate an improved layout for the City’s annual Central Park events by establishing spaces for rides, vendors, and displays. The sidewalk and trail arrangements attempt to provide durable pedestrian ways for residents visiting these events. 3. Depot/Stage/Caboose. These are components of the original plan. The plan changes attempt to improve access to these areas for both service vehicles and pedestrians with the following: • A service drive extends around the caboose to accommodate service vehicles for deliveries, event set up, and maintenance of the Depot and caboose. • A hard surface plaza area is proposed in front of the stage for Music in the Park seating. • Sidewalks and path connections are provided to and around the Depot and caboose to invite people to tour these facilities. CONCLUSION The park plan adjustments attempt to maintain the aesthetic components of the original plan through the park entrance, landscaping, and green space. The adjustments, however, offer a design that is also focused on the utility of this area of the park for the community events that it attracts. The Albertville Park Committee reviewed these amended Central Park plans. The Planning Commission is also asked to review the plans and make a recommendation to the City Council to formally adopt the amended plan as the Central Park Master Plan. c: Kim Olson Sue Schwalbe Paul Heins Mike Couri Agenda Page 144 EXHIBIT AAgenda Page 145 EXHIBIT BAgenda Page 146 EXHIBIT CAgenda Page 147 EXHIBIT DAgenda Page 148 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2015-028 RESOLUTION APPROVING AN AMENDMENT TO THE CENTRAL PARK MASTER PLAN FOR ALBERTVILLE CENTRAL PARK LOCATED AT 57TH STREET NE AND LANDER AVE NE WITHIN THE CITY OF ALBERTVILLE WHEREAS, the City of Albertville adopted a Comprehensive Park and Trail Plan which includes a Central Park Master Plan in 2012; and WHEREAS, The City of Albertville has submitted a Master Plan Amendment for Central Park Lion’s Park area of the Park; and WHEREAS, City Staff has reviewed submitted plans and prepared a memo dated June 3, 2015; and WHEREAS, the Albertville Park Committee met on January 26, 2015 and the Albertville Planning and Zoning Commission met on June 9, 2015, to consider the Master Plan Amendments; and WHEREAS, upon considering the amendment, the June 3, 2015 planning memo, the Planning Commission recommended that the City Council approve the amended plans on a vote of 5 to 0; and WHEREAS, the Albertville City Council met on June 15, 2015 to consider the Master Plan Amendments; and WHEREAS, the Albertville City Council has received a site plan; staff review documents; the Planning Commission recommendation; and agrees with the findings and recommendation of the Planning Commission and the June 3, 2015 planning memo. NOW, THEREFORE BE IT RESOLVED, that the City Council of Albertville, Minnesota hereby approves the amendments to the Central Park Master Plan / Albertville Comprehensive Park and Trail Plan, subject to the following Decision: Decision: Based on the foregoing information and applicable ordinances, the City Council hereby APPROVES the amendment to the Central Park Master Plan / Albertville Comprehensive Park and Trail Plan based on the plans submitted and direct staff to incorporate the amendment into the Albertville Park and Trail Plan Document. Agenda Page 149 City of Albertville Resolution No. 2015- Page 2 Adopted by the Albertville City Council this 15th day of June, 2015. _____________________________ Jillian Hendrickson, Mayor Attest: ___________________________________ Kimberly A. Olson, City Clerk Agenda Page 150 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\061515\2015-06-15 Admin Assst Permit Tech Position - RCA.doc Meeting Date: June 15, 2015 June 10, 2015 SUBJECT: ADMINISTRATION – ADMINISTRATIVE ASSISTANT/BUILDING PERMIT TECHNICIAN POSITION RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following: MOTION TO: Approve the job description and authorize advertisement for the Administrative Assistant/Building Permit Technician position. BACKGROUND INFORMATION: Staff received the resignation of the current Administrative Assistant/Building Permit Technician, and her last day will be Thursday, June 11, 2015. Staff is recommending approval of the attached job description and is seeking authorization to advertise the position for applicants. This position is essential to the day-to-day operations of City Hall and the Building Department. General responsibilities include: customer assistance at the front counter, answering telephones, permit processing, rental reservations, assist with planning commission meetings, and coordination of the fire and rental inspection programs. We will be working with a staffing agency to assist with a temporary replacement until the position is filled. Our goal is to conduct interviews in mid-July and have a recommended candidate for Council to consider at the second meeting in July. The job description for this position has been slightly modified by changing some previously required qualifications to now being preferred qualifications. The pay range for the position is currently $20.21- $22.86 per hour, for a certified permit technician. Staff is proposing to adjust the lower limit to $19.49 should the preferred candidate not have the certification. KEY ISSUES: • This is an established position and the proposed pay range is $19.46 to $22.86 per hour. • This is an essential position that needs to be filled as soon as possible. We do not a have the staffing capacity to cover for the vacancy for an extended period of time. • The position will be advertised in the official paper and through the League’s website. • Staff will develop a hiring schedule with an anticipated start date in August. • The Council will need to formally approve the staff recommended candidate. FINANCIAL CONSIDERATIONS: Since we are filling on vacant position, there will be little to no budget impact. Agenda Page 151 Mayor and Council Communication – June 10, 2015 Administrative Assistant/Permit Technician Position Page 2 of 2 M:\Public Data\City Council\Council Packet Information\2015\061515\2015-06-15 Admin Assst Permit Tech Position - RCA.doc Meeting Date: April 6, 2015 LEGAL ISSUES: The City Council has the authority to advertise for a position, and hire a qualified candidate. Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Administrative Assistant/Building Permit Technician Job Description Agenda Page 152 Job Description June 2015 M:\Public Data\City Council\Council Packet Information\2015\061515\Admin Assist - Building Permit Technician 2015.doc POSITION TITLE: Administrative Assistant/Building Permit Technician DEPARTMENT: Administration ACCOUNTABLE TO: City Administrator/City Clerk SUMMARY STATEMENT To be the primary public contact and clerical support for the Building Department, and will assist Building Official, City Administrator, City Clerk and other Department Heads as requested. Responding promptly and courteously to service requests by the public in a fast-paced, multi- task environment is essential. COMMON PERFORMANCE STANDARDS Expected to deal with the public and coworkers in a positive, courteous and timely manner and perform duties in a safe and respectful manner. EQUIPMENT/SOFTWARE USED Computer, scanner, postage machine, copier, fax machine, multi-line Voice over IP phone system, credit card program (PSN), Banyon Data Systems software, Cash drawer, MS Office, LaserFiche, Adobe, other computer software; and other general office equipment. ESSENTIAL FUNCTIONS The listed examples may not include all duties performed. 1. Coordinate the interdepartmental clerical activities of Building Permits, Code Enforcement, Public Works, Utility Department, and other departments. 2. Coordinate scheduling of all reservations and assist in scheduling inspection requests for the Building Official, Utility Department, or other departments as needed. 3. Monitor and track permit review process, permit issuance, and inspections from original application through completion. 4. Greet and assist customers at the front counter, answering resident inquiries in a timely, appropriate and courteous manner, making referrals to appropriate staff when required, using judgment and knowledge of City operations. 5. Answer telephones, giving appropriate information in a courteous manner and making referrals to appropriate staff when required. Assure a record is kept of telephone calls received in the reception area as deemed necessary. 6. Code Enforcement: take complaints, distribute to appropriate staff for complaint review, maintain a log of code enforcement activities to follow through until completed, keep a record (LaserFiche) in property file, and other duties related to code enforcement as assigned in conjunction with the City Clerk. 7. Maintain a clean, neat and orderly appearance in the conference rooms, Council Chambers, meeting areas, restrooms and other public areas of the office and building. This includes verifying and maintaining paper product/soap supply in kitchens and Agenda Page 153 Admin. Assistant/Bldg. Permit Tech. - Job Description June 2015 Page 2 of 4 M:\Public Data\City Council\Council Packet Information\2015\061515\Admin Assist - Building Permit Technician 2015.doc restrooms and general cleanliness of City Hall facility. All building maintenance issues should be reported to the City Clerk. 8. Responsible for all aspects of reservations of City properties in conjunction with the City Clerk, includes, but not limited to coordination of room rentals, completion of rental forms and payment, explanation of procedures to the renter, key inventory tracking, verify daily that the rooms are set up as needed, verify daily with a walk through inspection that City Hall rental spaces are clean and in order, verify with daily walk through that all restrooms and kitchen areas are well stocked with paper products for reserved events, and send to the appropriate staff the schedule weekly for room set up and room heat/cooling, updating staff as changes occur throughout the week. 9. Keep the calendar of City Hall use current and up-to-date, as well as posting of appropriate notices. 10. Prepare documents that require an invoice to be sent for code enforcement, rentals, building department issues, reservations, etc. and submit to Finance for processing. 11. Maintain the general office filing system, including the creation and preparation of new files and folders as needed, updating address files as zoning or other changes occur, and scanning documents into LaserFiche, creation and preparation of procedure manuals and formwork as needed. Assist in the update of City Map. 12. Process licenses for City Rental License Program and VPRO’S in conjunction with the City Clerk. 13. Keep records of the building permit information, including cursory review of permits and surveys; processing and accepting permit fees; keep track of fees and reporting same as needed or required; verify addresses on permits; assist in establishing new addresses with various departments, Post Office, and Sheriff’s Office; distributing correct copies and filing City copy; notifying applicant when permit is ready; draft monthly, quarterly and yearly reports of all permit activity along with submitting the quarterly surcharge report to the State of Minnesota due at the end of each quarter. 14. Assist with processing water meters and lock boxes for the City, including ordering, assigning numbers, distribution, and reporting. Maintain filing and record retention system for all meter records. 15. Create and prepare routine correspondence relating to assigned duties and also prepare correspondence and projects as assigned by the Building Official, City Administrator and other Department Heads as needed. 16. Responsible for correspondence, scheduling and tracking fire inspections in conjunction with the Fire Department. 17. Assist in organizing and ordering supplies as needed. 18. Assist with elections. 19. Serve as Recording Secretary at Planning Commission meetings. 20. Process yearly verification of Water and Sewer Contractors in conjunction with the City Clerk. 21. Assist City Clerk in processing zoning applications, distribute to appropriate staff (City Clerk, Planner, Finance if escrow is collected, etc.), maintain file system, process and record any updates and or changes in applications. 22. Attend Certified Building Permit Technician meetings when possible to maintain current certification. Agenda Page 154 Admin. Assistant/Bldg. Permit Tech. - Job Description June 2015 Page 3 of 4 M:\Public Data\City Council\Council Packet Information\2015\061515\Admin Assist - Building Permit Technician 2015.doc 23. Other duties as assigned. 24. Provide backup support services for Administrative Assistants/Clerk I & II: a. Receive payments and enter receipts into Point of Sale System. b. Works with customers on establishing new utility accounts and terminating accounts. c. Dispatch crews to respond to requests for service. d. Issue certain licenses/permits over the counter (examples: dog license, peddlers permits, vendor permits, etc.) e. Operate/run PSN Credit Card System. f. Assist customers with scheduling radio read set up, final readings and other Utility Department issues. g. Respond to customer requests for PID/Legal’s. EMPLOYMENT SELECTION CRITERIA Position requirements. 1. High school diploma or equivalent. 2. One year of experience as a building permit technician, administrative assistant, or secretary/receptionist. 3. Ability to communicate effectively orally and in writing. 4. Ability to follow verbal and written instructions. 5. Ability to establish effective working relationships with employees, other agencies, and the general public. 6. Flexible schedule (ability to cover for scheduled vacations, training, or other; ability to work on short notice due to an illness, family emergency, or other situation that may arise; ability to work additional hours when needed such as elections or year-end). 7. Must be 18 years of age. PREFERRED QUALIFICATIONS 1. Certified Building Permit Technician or become certified within two years of appointment. 2. Previous Municipal Experience/Certification as a Permit Technician. 3. Considerable knowledge of city services, operations and procedures. PHYSICAL DEMANDS The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations might be made to enable individuals with disabilities to perform the essential functions. While performing the duties of this job, the employee is frequently required to talk, hear, sit, stand, walk, use hands to finger, handle, or operate objects, tools, or controls; and reach with hands and arms. The employee is occasionally required to stoop, kneel, crouch, or crawl. Agenda Page 155 Admin. Assistant/Bldg. Permit Tech. - Job Description June 2015 Page 4 of 4 M:\Public Data\City Council\Council Packet Information\2015\061515\Admin Assist - Building Permit Technician 2015.doc The employee must occasionally lift and/or move up to 30 pounds. Specific vision abilities required by this job include close vision, distance vision, and peripheral vision. WORK ENVIRONMENT The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. While performing the duties of this job, the employee regularly works indoors in an office setting with moderate noise levels. SELECTION GUIDELINES Formal application and resume; review of education and experience; oral interview; background check, final selection. NOTE: Appointees will be subject to completion of a standard probationary period. The examples of duties are intended only as illustrations of the various types of work performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related or a logical assignment to the position. The job description does not constitute an employment agreement between the employer and the employee and is subject to change by the employer as the needs of the employer and requirements of the job change. Agenda Page 156 City Administrator’s Update June 11, 2015 GENERAL ADMINISTRATION Old Castle Building Envelope: Site and building plans were presented to the Planning Commission at their June 9 meeting and the public hearing for the TIF plan will be held at the June 15 Council meeting. Elementary School: To my knowledge, ISD #728 is still examining whether or not the undeveloped Towne Lakes area is a viable option. Westbridge Church: Westbridge is preparing to be at the July 6 Council meeting to ask for reconsideration of the application to rezone the Leuer-Munstertieger, LLC property. Earlier this week, Westbridge submitted a revised concept map and a letter regarding their request for reconsideration. Westbridge was hoping to be on the June 15 agenda, but due to this week’s schedule I had to ask Westbridge to come to the July meeting. STMA Ice Arena: NO SUMMER MEETINGS. The ice went back in without any moisture/humidity related dripping (the new dehumidification system is working well). July Workshop on CIP: Tina and I met with the City’s financial advisors, AE&M, and are working to update the City’s long term CIP. We plan to have AE&M present at a workshop on July 20. Admin. Asst. /Permit Tech Positon: June 11 is Sue’s last day. We are working with Vision Staffing and hope to have a temporary employee sometime next week and ultimately have the position filled permanently in August. ENGINEERING/PUBLIC WORKS Main Avenue NE Railroad Crossing: I have been working with BNSF regarding the condition of the timber pads. The railroad is putting together an estimate and draft agreement to replace the pads. Generally, these agreements have a 90/10 city-railroad cost split. I expect to have the estimate by late July. I94 West Coalition: MnDOT District 3 was awarded Corridors of Commerce II funding to study improvements on I-94 between Albertville and St. Michael. On Monday, June 15, MnDOT and their consultants are going to present the findings of the traffic forecasting. A second meeting will be held later this summer to present the results of the operational analysis and to discuss improvement options. Speed Limits: At the last meeting there was discussion regarding regulatory speed limits on local roads. I would be happy to address any questions regarding statutory limits and the options local road authorities have. Also, St. Michael has generously allowed us to use their Agenda Page 157 City Administrator’s Update Page 2 of 2 June 11, 2015 speed trailer. This past week I have had the speed trailer located on Kahler Drive NE, west of 53rd Street NE. I hope to have speed data to share at the meeting. Sanitary Sewer Service Area: We have reviewed the available capacities and the ability to serve the property south of Fieldstone Elementary and east of Jamison Avenue NE. Albertville’s system has capacity to serve this area. Two connection options exist and depth is believed to be sufficient to serve 80 plus acres. St. Michael staff is going to work with the potential developer to determine if a gravity system to one of the connection options can accommodate their site. 57th Street NE/Church of St. Albert Improvement Project: The road closure and construction will begin on Monday, June 15. 54th Street NE and Barthel Drainage Improvements: The project is generally complete with the exception of a few outstanding restoration items. Public Works Position: We will be conducting interviews on Thursday, June 18. Greenhaven Streets: We are looking into reclaiming and paving the Greenhaven streets (58th Circle NE and 59th Street NE) late summer/early Fall. I plan to have construction plans and cost estimates for Council approval in July. UPCOMING EVENTS and ANNOUNCEMENTS LMC Annual Conference: June 24 -26, Duluth Agenda Page 158