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2025-10-06 City Council Agenda Packet City of Albertville Council Agenda Monday, October 6, 2025 City Council Chambers 7 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. 1. Call to Order 2. Pledge of Allegiance – Roll Call Pages 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. Items pulled will be approved by a separate motion. A. Approve the September 15, 2025, regular City Council Meeting minutes as presented. 3-6 B. Approve the September 24, 2025, Joint Governance Meeting Minutes as presented 7 C. Authorize the Monday, October 6, 2025, 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. 8 D. 3rd Quarter Budget to Actual Report. 9-11 E. Accounts Receivable Report. 12-13 F. 10% Annual Gambling Contribution Report 14 G. Adopt Resolution No. 2025-39 approving and authorizing the Execution of Assignment and Assumption of Rights and Obligations Agreement. 15-24 H. Authorize the purchaser of new Self-Contained Breathing Apparatus for a total purchase of $190,250. 25-26 I. Adopt Resolution No. 2025-44 relating to financing Senior Multifamily Housing Developments under the Municipal Housing Program Act; and Calling for a Public Hearing Thereon. 27-32 J. Approve purchase of a 2026 Chev Silverado 3500 4x4 Regular Cab from North Country GM in the amount of $45,615.04 and construction/dump box from Twin Star in the amount of $16,776. 33-38 K. Approve Payment Estimate No. 3 to Ebert Construction in the amount of $68,583.37 for Central Park Playground Improvements. L. Approve Payment Estimate No. 1 to Omann Contracting in the amount of $135,614.93 for Main Avenue Improvements. City of Albertville City Council Agenda Monday, October 6, 2025 Page 2 of 2 7. Public Hearing A. Public Hearing – Guardian Angels Tax Increment Financing Request 39-93 • Mayer to open the public hearing • Motion to close the public hearing (Motion to adopt Resolution No. 2025-40 establishing Tax Increment Financing District No. 23 within Development District No. 1 and adopting the Tax Increment Financing Plan Therefor; Authorizing the Terms of an Interfund Loan; Authorizing the execution of a Development Agreement.) 8. Wright County Sheriff’s Office – Updates, reports, etc. 9. Department Business A. City Council 1. Committee Updates (STMA Arena, Planning, JPWB, Parks, Fire Board, FYCC.) B. Building – None C. City Clerk – None D. Finance – None E. Fire – None F. Planning and Zoning 1. Winslow Conditional Use Permit for Accessory Structure 94-124 (Motion to adopt Resolution No. 2025-41 approving a Conditional Use Permit to allow for a 460 square foot detached accessory structure, with conditions.) 2. Amend City and Zoning Code relating to the Standards and Permissibility of Temporary Outdoor Seasonal Sales 125-153 (Motion to adopt Ordinance No. 2025-08 amending Title Four Chapter 4 Peddlers, Solicitors, and Transient Merchants and Appendix A: City of Albertville Chapters 200, 1000, 4300, 4350, 4400, and 4500 of the Zoning Code relating to the standards and permissibility of temporary outdoor seasonal sales and Resolution No. 2025-42 allowing for summary publication for the ordinance.) G. Public Works/Engineering – None H. Legal – None I. Administration 1. City Administrator’s Update 154-155 10. Announcements and/or Upcoming Meetings October 13 STMA Arena Board, 6 pm October 14 Planning Commission, 7 pm October 20 City Council, 7 pm October 27 Joint Power Water Board, 6 pm Parks Committee, 7 pm 11. Adjournment ALBERTVILLE CITY COUNCIL DRAFT REGULAR MEETING MINUTES September 15, 2025 – 7 pm Council Chambers Albertville City Hall 1.Call to Order Acting Mayor Olson called the meeting to order at 7 pm. 2.Pledge of Allegiance – Roll Call Present: Acting Mayor Olson, Councilmembers Cocking, Hayden and Zagorski. Absent: Mayor Hendrickson Staff Present: City Administrator Nafstad, Fire Chief Bullen, City Attorney Couri, Finance Director Lannes and City Clerk Luedke. 3. Recognitions – Presentations – Introductions A.Proclaiming September 21 through 27, 2025 as “Women of Today Week” STMA Women of Today’s President Abby Baker provided an update on the organization’s week-long celebration. She also highlighted their largest fundraiser, the Annual November Craft show, and noted that the majority of the funds raised are used to support the STMA community. Acting Mayor Olson read the proclamation supporting the proclaiming September 21 through 27, 2025 as “Women of Today Week”. The Council thanked the Women of Today organization for their service to the community. B.Proclamation Recognizing the Retirement of FYCC Director Sandra Greninger FYCC Director Sandy Greninger thanked the Albertville City Council for its support of FYCC over the past 26 years. She expressed that, while she would miss FYCC, she was confident the program would be in good hands with New Director Paula Adamski and FYCC Supervisor Crysal Sayen, both of whom have worked at the organization and have a strong passion for the community. Acting Mayor Olson read the proclamation recognizing the retirement of FYCC Director Sandra Greninger. The Council expressed their appreciation of Ms. Greninger service to the community. 4.Public Forum There was no one present for the public forum. 5.Amendments to the Agenda There were no amendments to the agenda. MOTION made by Councilmember Zagorski, seconded by Councilmember Cocking to approve the September , 2025, agenda as submitted. Ayes: Cocking, Hayden, Olson and Zagorski. Nays: None. Absent: Hendrickson. The motion carried. Agenda Page 3 City Council Meeting Draft Minutes Page 2 Regular Meeting of September 15, 2025 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. Items pulled will be approved by a separate motion. A. Approve the September 2, 2025, regular City Council Meeting minutes as presented. B. Authorize the Monday, September 15, 2025, 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. MOTION made by Councilmember Cocking, seconded by Councilmember Hayden to approve September 15, 2025, consent agenda as submitted. Ayes: Cocking, Hayden, Olson and Zagorski. Nays: None. Absent: Hendrickson. The motion carried. 7. Public Hearing – None 8. Wright County Sheriff’s Office – Updates, reports, etc. The Wright County Sheriff Deputy who was present provided an update on traffic issues around the current road construction projects. 9. Department Business A. City Council 1. Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.) Councilmember Cocking provided an update from the STMA Arena Board meeting, which included a discussion on advertising at the Ice Arena, noting that the school district would be taking over the advertising at one of the rinks. Councilmember Hayden added further details from the meeting. City Administrator Nafstad provided background information on the advertising contract for the rinks and responded to questions from the other Councilmembers. Councilmember Zagorski provided an update from the Planning Commission meeting, detailing the items presented to the Commissioners, which included a request for a new storage shed exceeding ordinance requirements, along with two additional items. He noted these items were expected to come before the City Council at the first meeting in October. City Administrator Nafstad responded to questions from the Council regarding the storage shed standards. B. Building – None C. City Clerk – None D. Finance – None E. Fire – None F. Planning and Zoning – None Agenda Page 4 City Council Meeting Draft Minutes Page 3 Regular Meeting of September 15, 2025 G. Public Works/Engineering – None H. Legal 1. Guardian Angels Developer’s Agreement City Attorney Couri presented the staff report, providing background information on the Guardian Angels Developers, Agreement, noting it was similar to the 2013 Engle Haus agreement with two differences: the minimum age would be 60 years old instead of 55 and the letter of credit could be reduced at 10% landscape completion rather than the standard 25% due to the presence of the existing building and the City’s familiarity with its appearance and maintenance. He responded to question from the Council. City Administrator Nafstad provided background on Guardian Angels’ request to reduce the park dedication fees, which are based on the City’s current fee schedule. He explained that in 2008, when the original building was constructed, the City arranged a reduced park dedication fee since the land was originally intended for single-family homes or townhomes, and the City charged the equivalent of 16 homes, recognizing this was a significant subsidy. At the time, the City’s top priority was to attract a senior housing facility; however, due to recent housing and multi-family developments, and given the proposed Phase 2 is largely independent living, Administrator Nafstad recommended park dedication as per code. City Attorney Couri recalled back in 2008, the park dedication was reduced in part because a portion of their residents were in memory care and unlikely to go outdoors. He reported that another portion required assisted living, with limited park usage expected, while the remainder were in independent living units. Attorney Couri noted that the current phase consisted entirely of independent living units, which was a different population than Phase I. MOTION made by Councilmember Zagorski, seconded by Councilmember Hayden to approve the Developer’s Agreement for Lot 1, Block 1, Guardian Angels of Albertville, 2nd Addition. Ayes: Cocking, Hayden, Olson and Zagorski. Nays: None. Absent: Hendrickson. The motion carried. I. Administration 1. City Administrator Update City Administrator Nafstad presented the City Administrator’s update on upcoming projects and events within the City. He responded to questions from Council regarding the new hours and regulations at the City’s compost site. Announcements and/or Upcoming Meetings September 22 Joint Power Water Board, 6 pm Parks Committee, 7 pm September 24 Joint Governance Meeting, 6 pm (Albertville) October 6 City Council, 7pm October 13 STMA Arena Board, 6 pm October 14 Planning Commission, 7 pm October 20 City Council, 7 pm Agenda Page 5 City Council Meeting Draft Minutes Page 4 Regular Meeting of September 15, 2025 10. Adjournment MOTION made by Councilmember Cocking, second by Councilmember Hayden to adjourn the meeting at 7:40 pm. Ayes: Cocking, Hayden, Olson and Zagorski. Nays: None. Absent: Hendrickson. The motion carried. Respectfully submitted, _____________________________ Kristine A. Luedke, City Clerk Agenda Page 6 St. Michael-Albertville School Board City of Albertville City of St. Michael Joint Governance Meeting Minutes Wednesday, September 24, 2025, 6 pm Albertville City Hall 1. Welcome and Call to Order Acting Mayor Olson called the meeting to order at 6 pm Members of the School Board and Cities present: STMA School Board Members Present: Chairperson Drew Scherber; Board Members: Taylor Klemmensen, Tim Lewis, Carol Steffens, Hollee Saville and Travis Weber; Superintendent Dr. Ann-Marie Foucault and Director of Business Kris Crocker. City of St. Michael Present: Mayor Joe Hagerty; Councilors: Ryan Gleason, Tom Hamilton, Chuck Lefebvre and Zach Schoen; City Administrator Steve Bot. City of Albertville Present: Mayor Jillian Hendrickson; Councilors: John Hayden, Rob Olson and Bob Zagorski; City Administrator Nafstad and City Clerk Luedke. 2. STMA School District Operating Levy and Bond Vote Superintendent Dr. Foucault provided a presentation regarding the upcoming school levy referendum. She noted for additional information on the upcoming St. Michal-Albertville Schools Operating Levy and Bond election, visit stma.k12.mn.us/vote2025. 3. Adjourn Motioned by Hagerty, second by Gleason to adjourn at 6:52 pm. Motion carried unanimously. ATTEST: ____________________________ Kris Luedke, Albertville City Clerk Agenda Page 7 Mayor and Council Request for Action October 6, 2025 SUBJECT: CONSENT – FINANCE – PAYMENT OF BILLS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Authorize the Monday, October 6, 2025, 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 have reviewed and recommend 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 8 Mayor and Council Communication October 6, 2025 SUBJECT: CONSENT – FINANCE – 3rd QUARTER BUDGET TO ACTUAL REPORT – UN-AUDITED BUDGET TO ACTUAL: Attached are the 3rd Quarter 2025 un-audited General Fund summaries of revenues and expenditures. Revenues are expected to be 66%. Expenses are expected to be at 72%. This summary shows operating revenues are at 66.82% and operating expenses are at 74.62%. VARIANCES: Revenue: • Police aid – Not received until October • LGA – 2nd Half LGA – Not received until December • Fire Protection Contract Charges – Collection for entire year is half in January and half in July • Gas Franchise Fee – includes 4th quarter 2024 revenue received February 2025 Expenses: • City Engineering – Main Ave, Central Park and wetland related work • General Government – Software Renewals June and July plus an estimated $16,000 for hacker attempt incident which will be reimbursed by LMCIT • Economic Development – 2025 property taxes on city purchased parcels Responsible Person: Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD Attachment: • 2025 Budget to Actual Agenda Page 9 Mayor and Council Communication – October 6, 2025 Consent – Finance – 3rd Quarter Report Page 2 of 3 2025 Budget 2025 Actual 09/30/25 Ytd % Budget 31010 Current Ad Valorem Taxes 2,721,294$ $1,518,883 55.81% 32000 Licenses & Permits 30,500$ $43,899 143.93% 32110 Liquor Licenses 30,000$ $33,118 110.39% 32150 Sign Permits 2,500$ $105 4.20% 32210 Building Permits 200,000$ $203,063 101.53% 33401 LGA Revenue expected 261,315$ $140,340 53.71% 33405 Police Aid 50,000$ $0 0.00% 33422 Other State Aid Grants -$ $0 0.00% 33423 Municipal Maintenance 11,535$ $11,535 100.00% 34000 Charges for Services 18,000$ $3,920 21.78% 34001 Administrative Fee 1,500$ $4,131 275.37% 34005 Engineering As Built Fee 250$ $900 360.00% 34101 Leases - City Property 31,700$ $24,510 77.32% 34103 Zoning & Subdivision Fees 2,500$ $6,800 272.00% 34104 Plan Check Fee 65,000$ $52,757 81.16% 34107 Title Searches 2,500$ $2,075 83.00% 34112 Franchise Fee - Electric 134,700$ $50,420 37.43% 34113 Franchise Fee - Cable 50,000$ $52,886 105.77% 34114 Franchise Fee - Gas 168,000$ $139,492 83.03% 34202 Fire Protection Contract Charges 714,498$ $714,498 100.00% 34780 Rental Fees 17,000$ $16,368 96.29% 34950 Other Revenues 25,000$ $11,321 45.28% 34110 Arena 16,013$ $12,009 75.00% Total Revenues 4,553,805$ $3,043,029 66.82% 2025 Council Update General Fund Operations General Fund Revenue: Agenda Page 10 Mayor and Council Communication – October 6, 2025 Consent – Finance – 3rd Quarter Report Page 3 of 3 2025 Budget 2025 Actual 09/30/25 Ytd % Budget 41000 General Government 80,467$ $120,950 150.31% 41100 Council 58,128$ $46,798 80.51% 41300 Combined Administrator/Engineer 208,949$ $147,235 70.46% 41400 City Clerk 167,890$ $111,362 66.33% 41410 Elections 27,000$ $2,549 9.44% 41500 Finance 148,881$ $105,187 70.65% 41550 City Assessor 50,000$ $46,281 92.56% 41600 City Attorney 30,000$ $26,795 89.32% 41700 City Engineer 35,000$ $199,229 569.23% 41800 Economic Development 5,000$ $16,150 323.00% 41910 Planning & Zoning 61,507$ $44,149 71.78% 41940 City Hall 171,882$ $103,647 60.30% 42000 Fire Department 723,401$ $469,616 64.92% 42110 Police 1,237,746$ $903,375 72.99% 42400 Building Inspection 317,487$ $222,424 70.06% 42700 Animal Control 8,000$ $5,142 64.28% 43100 Public Works - Streets 490,876$ $365,277 74.41% 43160 Electric - Street Lights 114,000$ $69,329 60.81% 45000 Culture & Recreation 90,846$ $57,562 63.36% 45100 Parks & Recreation 526,745$ $335,126 63.62% Total Expenditures 4,553,805$ $3,398,182 74.62% General Fund Department Expenditures: 2025 Budget 9/30/2025 Ytd % Budget 102-31010 Capital Levy 2,344,018$ $1,171,601 49.98% Total Revenues 2,344,018$ $1,171,601 49.98% 2025 Budget 9/30/2025 Ytd % Budget 102 Capital Expenditures 2,344,018$ $124,088 5.29% Total Expenditures 2,344,018$ $124,088 5.29% Capital Reserve Fund Expenditures: 2025 Council Update Capital Fund Capital Reserve Fund Revenue: 2025 Council Update Capital Fund Agenda Page 11 Mayor and Council Communication October 6, 2025 SUBJECT: CONSENT – FINANCE – ACCOUNTS RECEIVABLE REPORT ACCOUNTS RECEIVABLE: Total accounts receivable outstanding through September 30, 2025, are $80,372.79. The percentage of the total due based on the aging report is as follows: 0-30 days outstanding $ 48,377.91 60.19% 30-60 days outstanding $ 17,878.81 22.24% 60-90 days outstanding $ 0.00 0.00% Over 90 days outstanding $ 14,116.07 17.56% PRACTICES/POLICY CONSIDERATIONS: The Mayor and Council review quarterly financial reports. FINANCIAL CONSIDERATIONS: There are no financial considerations at this time. LEGAL CONSIDERATIONS: The Mayor and Council have the authority to review and direct staff to take action regarding all financial matters. Responsible Person: Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD Attachment: • Accounts Receivable Report Agenda Page 12 Mayor and Council Communication – October 6, 2025 Consent – Finance – Accounts Receivable Report Page 2 of 2 Vendor Amount Due 0-30 Days 30-60 days 60-90 days 90 days & Over Albertville MN, LLC 816.45$ 13.30$ 6.65$ 796.50$ Arvig Enterprises, Inc 270.70$ 3.44$ 1.72$ 265.54$ Carrol Goalie School 1,513.99$ 1,513.99$ Englund, Regan 655.72$ 10.16$ 5.08$ 640.48$ Everbrook Learning Care 1,419.87$ 21.30$ 10.65$ 1,387.92$ FYCC 13.00$ 13.00$ Hockey Finder 2,523.31$ 2,523.31$ HS Blue Line Club 12,220.00$ 12,220.00$ Kindercare 1,471.96$ 15.64$ 7.82$ 1,448.50$ Lakes Area Training 1,009.33$ 1,009.33$ Langford, Felix Jr.318.64$ 2.64$ 316.00$ Massaquol, Haji 751.63$ 751.63$ Mega Goaltending 15,310.00$ 2,350.00$ 12,960.00$ MN Hockey Tier 1 League 8,914.07$ 2,470.63$ 2,738.44$ 3,705.00$ MN Reign 2,591.64$ 35.50$ 787.62$ 1,768.52$ MN Steel Hockey Club 1,766.32$ 1,766.32$ Mold Tech 66.25$ 66.25$ Quail Investments LLC 974.46$ 330.20$ 322.13$ 322.13$ Riverhawks Booster Club 3,290.00$ 3,290.00$ Saygbe 439.50$ 6.88$ 3.44$ 429.18$ State of MN - Tax Forfeit 4,153.09$ 373.29$ 397.13$ 3,382.67$ STMA Girls CC Booster 108.40$ 108.40$ STMAYHA 18,800.00$ 19,152.50$ (352.50)$ TC Assets LLC 974.46$ 330.20$ 322.13$ 322.13$ Total $80,372.79 $48,377.91 $17,878.81 $0.00 $14,116.07 Current 0-30 days $48,377.91 60.19% 30-60 days $17,878.81 22.24% 60-90 days $0.00 0.00% over 90 day $14,116.07 17.56% Agenda Page 13 Mayor and Council Communication October 6, 2025 SUBJECT: CONSENT – FINANCE – 10% ANNUAL GAMBLING CONTRIBUTION BALANCE: Total gambling contribution received as of October 2, 2025, is $364,165.16. The annual projection of funds to be collected is approximately $86,000. These funds were used to pay for part of the Central Park play equipment in the amount of $256,678.56 leaving a balance of $107,486.60 BACKGROUND: Per City Code section 4-3-8, organizations licensed by the State to conduct lawful gambling shall contribute to the City 10% of its net profits derived from lawful gambling operations within the City. Annually, the City must file a report to the State showing contributions, expenses, and balance of the 10% gambling contributions. Fund 208 10 % Gambling Contributions Fund Date Organization Description Deposited Expensed Balance 7/7/2025 STMAYHA 2025 10% contribution $13,935.14 $347,704.74 8/4/2025 Knights 2025 10% contribution $1,485.31 $349,190.05 8/5/2025 Albertville Lions 2025 10% contribution $7,488.51 $356,678.56 9/15/2025 Landscape Structures Central Park Play Equipment $256,678.56 $100,000.00 9/9/2025 Albertville Lions 2025 10% contribution $7,486.60 $107,486.60 KEY ISSUES: • Funds can be used for limited purposes. • Balance of the gambling fund 208 will be funding a portion of the playground equipment in Central Park. PRACTICES/POLICY CONSIDERATIONS: The Mayor and Council review gambling contribution balances annually. FINANCIAL CONSIDERATIONS: There are no financial considerations at this time. LEGAL CONSIDERATIONS: MN Statute 349.213 (f)(2) allows a City by ordinance to require organizations to contribute 10% of their net profit derived from lawful gambling within the City to be used for limited purposes. The Mayor and Council have the authority to review and direct staff to act regarding all financial matters. Responsible Person: Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD Agenda Page 14 EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF ALBERTVILLE, MINNESOTA HELD: October 6, 2025 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 at the City Hall in said City on October 6, 2025 at 7:00 P.M. The following members were present: and the following were absent: Member ________________ introduced the following resolution and moved its adoption: CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2025-39 RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF ASSIGNMENT AND ASSUMPTION OF RIGHTS AND OBLIGATIONS AGREEMENT A. WHEREAS, the City of Albertville, Minnesota (the “City”) entered into a Development Agreement, dated February 20, 2024 (the "Development Agreement") with Medart, Inc., a Missouri corporation (the “Developer”). B. WHEREAS, the Developer desires to assign its interest in the Development Agreement and the TIF Note (as defined in the Development Agreement) pursuant to an Assignment and Assumption of Rights and Obligations Agreement (the "Assignment") by and between the Developer and M67 LP, a Missouri limited partnership. C. WHEREAS, a draft of the Assignment has been submitted to the City Council of the City for approval. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Albertville, Minnesota, as follows: 1. The City Council hereby approves the Assignment in substantially the form submitted, and the Mayor and City Administrator are hereby authorized and directed to execute the Assignment on behalf of the City. 2. The approval hereby given to the Assignment includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the City officials authorized by this resolution to execute the Assignment. The execution of the Assignment by the appropriate officer or officers of the City shall be conclusive evidence of the approval of the Assignment in accordance with the terms hereof. Agenda Page 15 City of Albertville Resolution No. 2025-39 Meeting of October 6, 2025 Page 2 The motion for adoption of the foregoing resolution was duly seconded by member _________________ and, after full discussion thereof, and upon a vote being taken thereof, the following voted in favor thereof: and the following voted against same: Adopted by the City Council of the City of Albertville this 6th day of October 2025. _________________________ Jillian Hendrickson, Mayor ATTEST: ________________________ Adam Nafstad, City Administrator Agenda Page 16 City of Albertville Resolution No. 2025-39 Meeting of October 6, 2025 Page 3 STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF ALBERTVILLE I, the undersigned, being the duly qualified and acting City Administrator of the City of Albertville, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the City Council held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to a Resolution Authorizing the Execution of Assignment and Assumption of Rights and Obligations Agreement. WITNESS my hand as such City Administrator of the City of Albertville, Minnesota this 6th day of October, 2025. _____________________________ Adam Nafstad, City Administrator Agenda Page 17 176416440v1 ASSIGNMENT AND ASSUMPTION OF RIGHTS AND OBLIGATIONS AGREEMENT Tax Increment Financing District No. 21 (Medart, Inc. Project) This instrument drafted by: Taft, Stettinius & Hollister (MTM) 2200 IDS Center 80 South 8th Street Minneapolis, Minnesota 55402 Agenda Page 18 176416440v1 ASSIGNMENT AND ASSUMPTION OF RIGHTS AND OBLIGATIONS AGREEMENT THIS ASSIGNMENT AND ASSUMPTION OF RIGHTS AND OBLIGATIONS AGREEMENT (“Assignment” or “Agreement”), made as of October 6, 2025, by and among the City of Albertville, Minnesota (the “City”), Medart, Inc., a Missouri corporation, as assignor (the “Assignor”), and M67 LP, a Missouri limited partnership, as assignee (the “Assignee”). RECITALS: WHEREAS, the City entered into a Development Agreement, dated February 20, 2024, with the Assignor (the “Development Agreement”) and the Assignor desires to assign its interest in the Development Agreement to Assignee pursuant to this Agreement. WHEREAS, upon the Developer’s compliance with the terms of the Development Agreement, the City is to issue a Tax Increment Revenue Note (Medart, Inc. Project) in a maximum principal amount of $992,036 (the “TIF Note”) in favor of the Assignor. WHEREAS, the Assignor desires to assign to the Assignee its rights, and be released from all of its duties, obligations and responsibilities under the Development Agreement and the TIF Note arising or accruing after the date of this Assignment, and the Assignee is willing to accept and assume such rights, duties, obligations and responsibilities under the Development Agreement and the TIF Note arising or accruing after the date of this Assignment. NOW THEREFORE, in consideration of the premises, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Incorporation of Recitals: The recitals set forth above are hereby incorporated into the body of this Assignment as if fully restated herein. 2. Assignment of Agreement: The Assignor hereby assigns, transfers and quitclaims to the Assignee all of Assignor’s rights, duties, obligations and responsibilities under the Development Agreement and the TIF Note arising or accruing after the date of this Assignment, subject to the terms of this Agreement. The Assignee hereby accepts such rights and assumes such duties, obligations and responsibilities of the Assignor as the “Developer” under the Development Agreement and the TIF Note arising or accruing after the date of this Assignment, subject to the terms of this Agreement. Assignor shall retain rights, liabilities or obligations under the Development Agreement and the TIF Note arising or occurring prior to the date of this Assignment, but shall have no further rights, liabilities or obligations under the Development Agreement or TIF Note associated with actions or inactions arising or occurring on or after the date of this Assignment. Assignor shall be released from all of its duties, obligations, liabilities, and responsibilities under the Development Agreement and TIF Note on and after the date of this Assignment. The Assignor warrants that it is not in default under the Development Agreement. Agenda Page 19 176416440v1 2 3. Covenants of Assignee: (a) As a condition of the assignment herein, the Assignee hereby expressly assumes the duties, obligations and responsibilities of the Assignor as the “Developer” under the Development Agreement. (b) The Assignee acknowledges that it may not re-assign its rights as the “Developer” under the Development Agreement without the express prior written consent of the City, which consent shall not be unreasonably withheld, delayed or conditioned as provided in the Development Agreement. (c) The Assignee certifies that it has the qualifications and financial responsibility necessary and adequate to fulfill the obligations undertaken by the Developer in the Development Agreement. (d) The Assignee hereby agrees to defend, indemnify and hold the Assignor and the City harmless from and against any and all claims by third parties arising under or related to the Development Agreement or the TIF Note from and after the date of this Assignment, as provided in the Development Agreement. 4. Assignee Default: In the event the Assignee defaults under the terms and obligations of the Development Agreement assigned hereunder and does not cure the default in accordance with the terms of the Development Agreement, the Assignee acknowledges the City has the right to pursue any remedies against the Assignee as provided in the Development Agreement without any notice to and without seeking any remedy from the Assignor. 5. Governing Law: It is agreed that this Assignment shall be governed by, construed and enforced in accordance with the laws of the State of Minnesota. 6. Partial Invalidity: The invalidity of any portion of this Assignment will not and shall not be deemed to affect the validity of any other provision. In the event that any provision of this Assignment is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision. 7. Entirety of Agreement: This Assignment shall constitute the entire agreement between the parties regarding its subject matter and any prior understanding or representation of any kind preceding the date of this Assignment shall not be binding upon either party except to the extent incorporated in this Agreement. 8. Modification: Any modification of this Agreement or additional obligation assumed by either party in connection with this Assignment shall be binding only if placed in writing and signed by each party or an authorized representative of each party. 9. Paragraph Headings: The titles to the paragraphs of this Agreement are solely for the convenience of the parties and shall not be used to explain, modify, simplify, or aid in the interpretation of the provisions of this Agreement. Agenda Page 20 176416440v1 3 10. Execution in Counterparts: This Agreement may be executed, acknowledged and delivered in any number of counterparts and each of such counterparts shall constitute an original but all of which together shall constitute one agreement. Electronic and PDF signatures shall be sufficient for all purposes. [Signature pages follow.] Agenda Page 21 176416440v1 S-1 To evidence their agreement to the foregoing, the Parties have duly executed this Agreement effective as of the date hereof. ASSIGNOR: Medart, Inc. By: ____________________________ Its: ___________________________ Agenda Page 22 176416440v1 S-3 ASSIGNEE: M67 LP By: Its: _________________________________ Agenda Page 23 176416440v1 CONSENT AND ACKNOWLEDGMENT OF THE CITY OF ALBERTVILLE, MINNESOTA The City of Albertville, Minnesota, by its undersigned designated representatives, hereby expressly agrees and consents to the assignment of the Development Agreement and the TIF Note by Medart, Inc., a Missouri corporation to M67 LP, a Missouri limited partnership, pursuant to the terms and conditions of the foregoing Assignment and Assumption of Rights and Obligations Agreement (the “Assignment”). The City further joins this Agreement to confirm the facts set forth herein. From and after the date of the foregoing Assignment, Assignor shall be released from all of its duties, obligations, liabilities, and responsibilities under the Development Agreement. The City certifies that, as of the date hereof, all obligations of Assignor under the Development Agreement have been satisfied and, to the City’s knowledge, the Assignor is not in default thereunder. CITY OF ALBERTVILLE, MINNESOTA By: _______________________________________ Mayor By: ______________________________________ City Administrator Agenda Page 24 Mayor and Council Request for Action _____________________________________________________________________________ October 6, 2025 SUBJECT: CONSENT – FIRE – PURCHASE OF SELF-CONTAINED BREATHING APPARATUS RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following: MOTION TO: Authorize the purchase of new Self-Contained Breathing Apparatus (SCBA) for a total purchase price of $190,250. BACKGROUND: The Albertville Fire Department’s current SCBA were purchased in 2015. Since the 2015 purchase, the National Fire Protection Agency (NFPA) has updated its SCBA standard in 2018 and 2024. The new SCBA will be the newest technology, and fully compliant with the 2024 standard. The Fire Department currently has 15 SCBA packs, 33 SCBA bottles, 31 SCBA masks, and 2 RIT Packs. The new order will add one more SCBA and one more SCBA bottle, to be used when the new Chief #1 vehicle is in-service. The Fire Department’s Board of Officers received product demos from 3 SCBA manufacturers. After the product demos, the Board of Officers voted on their preferred manufacturer, selecting one. The SCBA distributor is able to work the Fire Departments’ order into a large, bulk, order with multiple Fire Departments, offering significant cost savings over the price quotation that was provided through Cooperative Purchasing. The Board of Officers is up to date on the current Fire Department CIP and approves of both the selected manufacturer and purchase of the new SCBA. Staff is recommending approval of the purchase of SCBA for the quotation price of $190,250. The SCBA’s will be ordered this year, locking in pricing, with delivery and payment in early 2026. KEY ISSUES: •The Fire Department Board of Officers and City Staff have reviewed the purchase and are recommending Council action. •The SCBA order will be made now, and the Fire Department will take delivery next spring. •Ordering in 2025 guarantees the 2025, bulk order, price and places the Department high on the priority list for delivery in 2026. •The SCBA purchase is a planned purchase and part of the Fire Department’s capital equipment budget. Agenda Page 25 Mayor and Council Request for Action – October 6, 2025 Consent – Fire – Purchase of New SCBA Page 2 of 2 POLICY CONSIDERATIONS: It is City policy for the Council to review and approve all capital purchases and investments. FINANCIAL CONSIDERATIONS: The cost associated with the SCBA will be funded through fire department capital reserves. LEGAL CONSIDERATIONS: The City has the authority to purchase equipment under the State of Minnesota contract or by quotes. Responsible Person Fire Chief Bullen, Fire Department Submitted Through: Adam Nafstad, City Administrator-PWD Supplemental Information: • Quotes on file and available upon request Agenda Page 26 CERTIFICATE CITY OF ALBERTVILLE I, the undersigned, being a duly qualified and acting officer of the City of Albertville, Minnesota, hereby attest and certify that: 1. As such officer, I have the legal custody of the original record from which the attached resolution was transcribed. 2. I have carefully compared the attached resolution with the original record of the meeting at which the resolution was acted upon. 3. I find the attached resolution to be a true, correct and complete copy of the original: RESOLUTION RELATING TO FINANCING A SENIOR MULTIFAMILY HOUSING DEVELOPMENT ; AND CALLING FOR A PUBLIC HEARING THEREON 4. I further certify that the affirmative vote on said resolution was ________ ayes, ________ nays, and _________ absent/abstention. 5. Said meeting was duly held, pursuant to call and notice thereof, as required by law, and a quorum was present. WITNESS my hand officially as such officer this 6th day of October, 2025. Kristine A. Luedke, City Clerk Agenda Page 27 City of Albertville Resolution No. 2025-44 Meeting of October 6, 2025 Page 2 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2025-44 RESOLUTION RELATING TO FINANCING A SENIOR MULTIFAMILY HOUSING DEVELOPMENTS ; AND CALLING FOR A PUBLIC HEARING THEREON BE IT RESOLVED by the City Council of the City of Albertville, Minnesota (the “City”), as follows: Recitals. Public Hearing. 2.1. The Act provides that the City may adopt the Housing Program upon the conditions specified in the Act, including the holding of a public hearing following not fewer than ten (10) days’ published notice. 2.2. Section 147(f) of the Internal Revenue Code of 1986, as amended, and regulations thereunder, further requires that, as a condition to the exemption from federal income taxation of interest on all or a portion of the Bonds, a public hearing be conducted by the City on the proposed issuance of the Bonds by the Issuer. 2.3. A public hearing on the Housing Program and the issuance of the Bonds is hereby called and shall be held on Monday, November 3, 2025, at 7:00 P.M., at the City offices, or at such later date as the City Clerk shall determine. 2.4. The City Clerk shall cause notice of the public hearing, substantially in the form attached as Exhibit B, to be published in a newspaper of general circulation in the City at least once not less than ten (10) days prior to the date fixed for the public hearing. Adopted by the City Council of the City of Albertville this 6th day of October 2025. ______________________________ Jillian Hendrickson, Mayor ATTEST: _____________________________ Kristine A. Luedke, City Clerk Agenda Page 28 City of Albertville Resolution No. 2025-44 Meeting of October 6, 2025 Page 3 EXHIBIT A PROGRAM FOR SENIOR MULTIFAMILY HOUSING DEVELOPMENTS UNDER MINNESOTA STATUTES, CHAPTER 462C GUARDIAN ANGELS OF ELK RIVER, INC., AND AFFILIATES Proposal; Authority. Guardian Angels of Elk River, Inc., a Minnesota nonprofit corporation, and one or more affiliates (the “Borrower”), has requested that the City of Albertville, Minnesota (the “City”) (a) adopt a Housing Program pursuant to Minnesota Statutes, Chapter 462C, as amended (the “Act”) and (b) consent to the issuance by the City of Becker, Minnesota (the “Issuer”) of its taxable and tax-exempt revenue bonds thereunder in furtherance of the objective of financing (i) the construction of an 86-unit independent living facility (the “Independent Living Facility”) to be located adjacent to an existing 63-unit assisted living community located at 5101 Kassel Ave. NE in the City (the “Assisted Living Facility”; together with the Independent Living Facility, the “Facilities”) and (ii) the improvement of the Assisted Living Facility and (iii) the refinancing of City of Otsego Refunding Revenue Bonds (Evans Park Inc., Project), Series 2017A, the proceeds of which were used to finance and refinance improvements to the Assisted Living Facility. This Housing Program is subject to amendment or waiver by the City. Purposes. In creating this Housing Program, the Borrower has represented to the City that the preservation of the quality of life in the City is in part dependent upon the maintenance and provision of adequate, decent, safe, sanitary, and affordable housing stock, including housing for the elderly, within the meaning of the Act; that accomplishing the goals of this Housing Program is a public purpose and will benefit the residents of the City; that the need exists within the City to provide affordable housing facilities to and for the benefit of elderly persons; that there exist or are expected to exist elderly persons and families within the City who are and will be able to benefit from and are in need of this Housing Program; that this Housing Program is necessary in view of the limited resources that may be available to such persons relative to the expenses involved in accomplishing the type of objectives outlined in this Housing Program in the absence of one or more of the forms of assistance described herein or otherwise available pursuant to the Act; and that, furthermore, the successful implementation of the objectives of the kind described in this Housing Program has been found to provide impetus for the development of other housing and health care facilities, as well as the general development of the City, by other persons who are not the beneficiaries of such governmentally sponsored or assisted activities. General Description of the Program. The owner and operator of the Facilities will be Guardian Angels of Elk River, Inc., a Minnesota nonprofit corporation, or an affiliate thereof (the “Borrower”). The Facilities are intended for residency solely by elderly and disabled persons, and consequently, no income limits apply under the Act or other state law. Agenda Page 29 City of Albertville Resolution No. 2025-44 Meeting of October 6, 2025 Page 4 Revenue Bonds. Financing for the Facilities will be obtained through the issuance of taxable and tax-exempt revenue bonds by the Issuer pursuant to the Act (the “Bonds”). The maximum principal amount of Bonds to be issued by the Issuer is expected not to exceed $40,000,000. Monitoring Methods. It is believed the oversight exercised by the trustee bank and certain other parties will be adequate to insure the Housing Program as presented is in fact carried out. The Facilities must be operated by the Borrower in accordance with various operating covenants (relating to such things as maintenance, insurance, etc.) to be contained in the loan agreement(s) and related documents to be entered into by the Issuer, the Borrower and certain other parties, which loan agreement(s) and related documents will be assigned by the Issuer, to the extent of the Issuer’s interests, to the trustee bank as security for the Bondholders. Meeting Needs. The Borrower has represented to the City that this Housing Program will meet the need identified by the City for ongoing availability of senior housing facilities. The specific methods anticipated to be used include the issuance of revenue bonds of the Issuer under the Act to provide feasible financing for the Facilities. Authorization. This Housing Program is undertaken pursuant to Minnesota Statutes, Chapter 462C. Costs. The costs of the Facilities and this Housing Program, including specifically the costs of the City generally, will be paid or reimbursed by the Borrower. Agenda Page 30 City of Albertville Resolution No. 2025-44 Meeting of October 6, 2025 Page 5 EXHIBIT B PUBLIC NOTICE CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA NOTICE OF PUBLIC HEARING ON A PROPOSED SENIOR HOUSING DEVELOPMENT AND THE ISSUANCE OF REVENUE BONDS BY THE CITY OF BECKER, MINNESOTA NOTICE IS HEREBY GIVEN that the City Council (the “Council”) of the City of Albertville, Minnesota (the “City”), will hold a public hearing on Monday, November 3, 2025, at 7:00 p.m. in the Council Chambers, 5959 Main Avenue NE, Albertville, Minnesota, to consider a proposal that the City authorize the issuance of revenue bonds, in one or more series (the “Bonds”), by the City of Becker, Minnesota (the “Issuer”), under Minnesota Statutes, Chapter 462C, as amended (the “Act”), in order to finance all or a portion of the following: (i) the construction of an 86-unit independent living facility (the “Independent Living Facility”) to be located adjacent to an existing 63-unit assisted living community located at 5101 Kassel Ave. NE in the City of Albertville, Minnesota (the “Assisted Living Facility”; together with the Independent Living Facility, the “Facilities”); (ii) the improvement of the Assisted Living Facility; (iii) the refinancing of the City of Otsego, Minnesota Refunding Revenue Bonds (Evans Park, Inc. Project), Series 2017A, the proceeds of which were used to finance or refinance the Assisted Living Facility and (iv) costs of issuance of the Bonds. Guardian Angels of Elk River, Inc., a Minnesota nonprofit corporation, or an affiliate thereof (the “Borrower”), will own and operate the Facilities. The estimated aggregate principal amount of the proposed Bonds will not exceed $40,000,000. Following the public hearing, the Council will consider a resolution approving a housing program prepared in accordance with the requirements of the Act, and granting approval to the issuance of the Bonds. A draft copy of the housing program is available for public inspection during normal business hours, Monday through Friday, at the City Hall in the City. The Bonds will be issued by the Issuer, and not the City. If issued, the Bonds shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City or the Issuer, and the Bonds, when, as, and if issued, shall recite in substance that the Bonds, including interest thereon, are payable solely from the revenues received from the Borrower and the property pledged to the payment thereof, and shall not constitute a debt of the City or the Issuer within the meaning of any constitutional or statutory limitation. Anyone desiring to be heard during this public hearing will be afforded an opportunity to do so. In addition, interested persons may file written comments respecting the proposal with the City Finance Director at or prior to the public hearing. Agenda Page 31 City of Albertville Resolution No. 2025-44 Meeting of October 6, 2025 Page 6 Dated: October 6, 2025. CITY OF ALBERTVILLE By: /s/ Tina Lannes Finance Director Agenda Page 32 Mayor and Council Request for Action October 6, 2025 SUBJECT: CONSENT – PUBLIC WORKS – PURCHASE OF 2026 CHEV SILVERADO 3500 AND RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following motion: MOTION TO: Approve purchase of a 2026 Chev Silverado 3500 4x4 Regular Cab from North Country GM in the amount of $45,615.04 and construction/dump box from Twin Star in the amount of $16,776. BACKGROUND: The City plans and budgets for equipment and vehicle purchases and replacements. The proposed 2026 Chevy 3500 is a programmed replacement of the 1998 Chevy 3500. KEY ISSUES: •The proposed purchase will replace the 1998 Chevy 3500 •The price is based on the Minnesota State Contract Pricing. •The 1998 Chevy will be sold. POLICY CONSIDERATIONS: It is the Mayor and Council’s policy to review and approve the purchase of the Public Works Department. FINANCIAL CONSIDERATIONS: The Purchase of the truck and box will be paid with public works capital reserves. LEGAL CONSIDERATIONS: The Mayor and Council have the authority to approve the purchase for the Public Works Department. Responsible Person: Tim Guimont, Public Works Supervisor Submitted Through: Adam Nafstad. City Administrator-PWD Attachment: •Quote from North Country GM •Quote from Twin Star Equipment & MFG Agenda Page 33 QUOTATION NORTH COUNTRY GM 1502 E HOWARD ST CONTRACT # 188747 HIBBING, MN 55746 218-263-7578 BOB O'HARA EST DELIVERY TIME 218-263-7576 218-349-8955 90 - 120 ARO rwohara01@aol.com RCC4 BASE MODEL 2026 CHEV SILVERADO 3500 4x4 CK31003 43,999.00$ REG CAB CHASSIS CAB 60" CA GVW 14,000 LBS. 3,248.60 LT TRIM UPGRADE LT - ADDED OPTIONS 6.6L V8 L8T x STD 10 SPEED AUTO MYD x STD 3.73:1 AXLE RATIO GT4 x STD AIR CONDITIONING FRT x STD 8,703.20 Engine, Duramax 6.6L Turbo-Diesel V8 B20-Diesel compatible, (445 hp [332 kW] @ 2800 rpm, 910 lb-ft of torque [1220 Nm] @ 1600 rpm) LP5 - N/C Transmission, Allison 10-speed automatic MGM - N/C Transmission, Allison 10-speed automatic with integrated Power Take-Off (PTO) (Requires (L5P) Duramax 6.6L Turbo-Diesel V8 engine. Included and only available with (PTO) Power Take-Off.) MGU - 875.60 Power Take-Off (Requires (L5P) Duramax 6.6L Turbo-Diesel V8 engine and (K34) Cruise Control. PTO - 374.00 WT Convenience Package includes (AKO) tinted windows and (C49) rear- window defogger(Not available with (ZLQ) WT Fleet Convenience Package.) PCV - STD LT235/80R-17E ALL TERRAIN QZT X STD 334.40 Spare Tire to Match ZZT - STD BRAKE CONTROLLER JL1 X STD STD Cruise Control STD k34 x STD Agenda Page 34 264.00 Snow Plow Prep Package includes (KW5) 220-amp alternator, includes increased front GAWR on Heavy Duty models, (NZZ) skid plates (transfer case and oil pan), pass through dash grommet hole and roof emergency light provisions. (Requires 4WD model. Upgradeable to (KHF) Dual alternators (220-amp primary, 170-amp auxiliary). Not available with (F60) Heavy Duty Front Spring Package.) VYU X $264.00 220.00 DPF, diesel particulate filter, manual regeneration customer regeneration will not be allowed until the DPF load percentage has reached 100% full FPF - 744.00 BLACK ASSIST STEPS RV X $744.00 118.80 AUX BATTERY (std w/diesel)K4B X $118.80 334.00 Alternators, dual, 220-amps primary, 170-amps auxiliary (Requires (K4Z) auxiliary battery with (L8T) 6.6L V8 gas engine.) KHF - INCL w/VYU Alternator, 220 amps (Included with (L5P) Duramax 6.6L Turbo-Diesel V8 engine or (VYU) Snow Plow Prep Package. Free flow on (L8T) 6.6L V8 gas engine.) X INCL w/VYU 176.00 DASH SWITCH AUTO TRAC 4X4 NQH - 88.00 Chrome Front Bumper V46 X $88.00 N/C VINYL FLOORING BG9 - 132.00 120 VOLT OUTLET IN CAB AND BOX KJ4 - 132.00 UPFITTER SWITCHED (kit shipped loose, req additional upfitter wiring)9L7 X $132.00 185.00 Upfitter Switch install Completed DLR2 X $185.00 255.20 Power Drivers Seat (Requires (H0U) Jet Black interior, (KI4) 120-volt power outlet and either (PCV) WT Convenience Package or (ZLQ) WT Fleet Convenience Package.) A2X - 64.24 REAR CAMERS KIT 5N5 X $64.24 - 275.00 ADDITIONAL KEY/FOB COMB EA 0 -$ RED HOT G7C Agenda Page 35 BLACK GBA LAKESHORE BLUE METALLIC GXP 396.00 SPECIAL PAINT STERLING GRAY METALLIC GXD EXT COLOR WHITE GAZ X STD INT TRIM COLOR VINYL SEAT TRIM H2G STD CLOTH SEAT TRIM H1T X N/C TOTAL 45,595.04$ 3,134.66 6.875% SALES TAX - 325.25 LICENCE TITLE & REG - 20.00 TRANSIT TAX X 20.00$ TOTAL per UNIT 45,615.04$ QTY 1 45,615.04$ purchase order number contact TIM customer CITY OF ALBERTVILLE phone (763) 497-3145 email billing address delivery address date ordered order # Agenda Page 36 Page | 1 1950 202nd Street East Clearwater, MN 55320 Office 320-558-2800 Fax 320-558-2809 Parts 320-558-2810 August 21, 2025 Revised 9-2-25 City of Albertville 11822 63rd Street NE Albertville, MN 55301 Dear Customer; Twin Star Equipment & Mfg Co is pleased to provide the following quote: 9’6” TSEM Legacy Mild Steel Contractor Body Body Serial # 190023 96” Wide (OD) Headboard With Window to Fit 2025 GM 4500 Cab Height 12” Cabshield 3/16” AR450 Floor 14” Fold Down Sides, 10 ga Mild Steel Board Pocket Steps Added With Grab Handles (See Pictures) 25” Electric Quick Release Tailgate, 10 ga Mild Steel Grease Fittings Added To Tailgate Upper Hinge Pins LED Marker Lights 6” Oval in Rear Tail of Body: Stop/Tail/Turn, Back-Up, Amber Strobe (or any combination) Champion Double Acting Underbody Hoist Electric Hydraulic Power Unit With In Cab Controls Media Blasted, Primed and Painted Blue (Customer to Supply Paint Code) Surface Mounted Strobes In Grill (2) Rear Oval Strobes in Rear Apron (2) ½” Weld On Pull Plate w/ Receiver Tube, D Rings and 7 Flat Electrical Hitch Not Included Poly Fenders 36”x18”x18” Aluminum Treadplate Frame Mounted Toolbox (1) Professional Installation Including Mud Flaps Agenda Page 37 Page | 2 Cost Installed: $16,776.00 Please feel free to contact us with any questions. Jay Weber 651-968-6871 Many customizable options are also available. Please inquire for custom specifications or custom options. This quote is valid for 10 days after date issued. All taxes, including FET are additional. 25% down payment required with order. Acceptance of Quotation: I hereby authorize Twin Star Equipment & Mfg to complete work as outlined on this Quotation. Full payment will be due upon completion of project, or delivery of products outlined. I agree to payment terms. I also acknowledge that I am authorized by the Company listed to complete this transaction on behalf of the Company. Signature Name Date Agenda Page 38 Mayor and Council Request for Action October 6, 2025 SUBJECT: PUBLIC HEARING – GUARDIAN ANGELS TAX INCREMENT FINANCING REQUEST RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Adopt Resolution No. 2025-40 Establishing Tax Increment Financing District No. 23 within Development District No. 1 and adopting the Tax Increment Financing Plan Therefor; Authorizing the terms of an Interfund Loan; Authorizing the Execution of a Development Agreement; and Approving a Business Subsidy. BACKGROUND: The City of Albertville received an application from Evans Park, Inc. – Guardian Angels Engel Haus Senior Living (the Developer) for tax increment financing (TIF) assistance to assist the construction of a new approximate 86-unit senior independent living apartment building and common area for these units within the building. The development will include a minimum of 68 units at market rate and 18 units, or a minimum of 20% of the total units, affordable for households earning up to 50% of the area median income. The Developer is a Minnesota nonprofit corporation organized and operated exclusively for charitable purposes. The Development will be located at 5101 Kassel Avenue NE, and they are requesting the City include the property along with the immediate adjacent roads and right-of -way to the property within the boundaries of a housing tax increment financing district. The proposed new Tax Increment Financing District will be No. 23 – Engel Haus Phase II. The Developer’s are seeking a form of a pay-go TIF assistance. With “pay-go” TIF assistance, the Developer would pay all up-front cost for the Development. As tax increment is received by the City, the Developer will be reimbursed for TIF-eligible costs. In Northland’s opinion the Development would be unlikely to occur without TIF assistance because the Development would not expect to achieve the level of debt service coverage need to secure the necessary financing and equity. KEY ISSUES: • The TIF District to be established to assist in the construction of a new 86-unit senior independent living apartment building and common area within the building with a maximum duration of 15 years. • The City would collect tax increment from the new taxable market value that would be created from the development within the TIF District. State property taxes and school referendum taxes are not captured as tax increment, pursuant to state law. POLICY/PRACTICES CONSIDERATIONS: The City has established a number of TIF districts in the past to aid in the development of manufacturing facilities in the City. FINANCIAL CONSIDERATIONS: The City will issue a TIF “pay-go” revenue note to reimburse the Developer for up to $1,872,000 of certain eligible costs the Developer will incur Agenda Page 39 Mayor and Council Request for Action – October 6, 2025 Public Hearing – Tax Increment Financing Request Page 2 of 2 for the Development for construction of the affordable housing units, payable with interest at rate of 5.0%. The payments on the TIF Note by the City to the Developer will be payable over a period not to exceed 15 years. The total payments over this period, including principal and interest is estimated at $2,850,000. This is an estimate; the actual amount will vary based on actual taxable market value of the Development, future tax rates for the taxing jurisdictions, among other factors. The first payment to the Developer will be due on August 1, 2028, and the final payment no later than February 1, 2043. LEGAL CONSIDERATIONS: After holding the public hearing on this matter, the City has the legal authority to establish the TIF, provided it makes the findings set out in the attached resolution establishing the TIF district. Responsible Person: Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: • Northland Memo and TIF Plan • Resolution No. 2025-40 • Development Agreement Agenda Page 40 Northland Securities, Inc. 150 South Fifth Street, Suite 3300, Minneapolis, MN 55402, Main Tel. 612-851-5900 www.northlandsecurities.com Member FINRA and SIPC | Registered with SEC and MSRB MEMORANDUM To:City of Albertville From: Tammy Omdal Date:September 29, 2025 Re:Tax Increment Financing District No. 23 – Engel Haus Phase II The City of Albertville (the “City’) received an application from Evans Park, Inc. - Guardian Angels Engel Haus Senior Living (the “Developer”) for tax increment financing (TIF) assistance to assist the construction a new approximate 86-unit senior independent living apartment building and common areas fort these units within the building by the Developer (the “Development”). The Development will include a minimum of 68 units at market rate and 18 units, or a minimum of 20% of the total units, affordable to households earning up to 50% of the area median income. The Developer is a Minnesota nonprofit corporation organized and operated exclusively for charitable purposes. The Development will be located on un-occupied land, parcel 101-143-000010, at what is currently 5101 Kassel Avenue NE in the City (the “Property”). The Developer is requesting the City to include the Property, along with the immediate adjacent roads and right-of-way to the Property, within the boundaries of a housing tax increment financing district. The proposed new tax increment financing housing district is Tax increment Financing District No. 23 – Engel Haus Phase II (the “TIF District”). The purpose of this memorandum is to provide information about the TIF District and the proposed terms for tax increment assistance for the Development, among other information. Background The cost for the Development, as prepared by the Developer is estimated at $40.8 million. The estimated cost is inclusive of certain costs that are anticipated to be outside the boundaries of the TIF District. Tax increment from the TIF District may only be used to reimburse the cost of providing the affordable housing units within the TIF District, all pursuant to the Contract between the City and the Developer. To provide the affordable units, the Developer is requesting tax increment to reimburse a portion of certain development costs to be incurred by the Developer related to the construction of the affordable housing units. Information on the terms for assistance follows. The Developer has represented that they will not undertake the Development without tax increment assistance. Financial Assistance It is Northland’s opinion that the Development is unlikely to occur but for the TIF. Without TIF assistance, the Development is not expected to achieve the level of debt service coverage needed to secure the necessary financing and equity. The Development, inclusive of the affordable housing units, will not occur solely through private investment within the reasonably foreseeable future. Agenda Page 41 Albertville TIF 23 September 29, 2025 Page 2 Northland finds that it is reasonable for the City to consider TIF assistance as necessary so that the Development by private enterprise, inclusive of the affordable housing units, will occur. The City will work with the Developer to ensure the design of the Development will be consistent with overall development objectives for the City as a whole, in addition to the offering of affordable residential housing units, growth in tax base, among other benefits to the City. Terms of Assistance The Developer is seeking TIF from the City in the form of pay-go TIF assistance. With “pay-go” TIF assistance, pursuant to terms that will be included within a TIF Assistance Agreement (the “Contract”), the Developer will pay all up-front costs for the Development. As tax increment is received by the City, the Developer will then be reimbursed for TIF-eligible costs up to the lesser of agreed to reimbursement amount or costs substantiated by the Developer, pursuant to the Contract. Northland finds that while TIF is needed for the Development, the term of the assistance should be limited in the amount and to a term not to exceed 15 years. Based on Northland’s financial analysis of the information provided by the Developer, the terms for assistance are as follows: The City will issue a TIF “pay-go” revenue note (the “TIF Note”) to reimburse the Developer for up to $1,872,000 of certain eligible costs the Developer will incur for the Development for construction of the affordable housing units, payable with interest at rate of 5.0%. The TIF Note will be issued upon evidence of costs to the City, all pursuant to terms within the Contract. The payments on the TIF Note by the City to the Developer will be payable over a period not to exceed 15 years. The total payments over this period, including principal and interest, is estimated at $2,850,000. This is an estimate, the actual amount will vary based on actual taxable market value of the Development, future tax rates for the taxing jurisdictions, among other factors. The first payment to the Developer will be due on August 1, 2028, and the final payment no later than February 1, 2043. The TIF Note, pursuant to terms within the Contract, will be payable solely from net available semi-annual tax increments. Net available semi-annual tax increments shall mean 90% of the tax increment from the Development. The TIF Note shall bear simple, non- compounding interest from the date the TIF Note is issued to the Developer, pursuant to the Agreement. The Development will commence by December 31, 2025, and completion by December 31, 2027. The Development will not be subject to terms of a minimum assessment agreement. The Developer will reimburse the City for consulting and legal costs incurred by the City for establishment of the TIF District and preparation of the Contract. Agenda Page 42 Albertville TIF 23 September 29, 2025 Page 3 The City will adopt and interfund loan to provide authority for the City to reimburse itself for costs incurred for administration of the TIF District, after establishment, and prior to the City collecting tax increment from the TIF District to pay for these costs. Exhibit A provides a summary of the estimated tax increment cash flow from the TIF District available to reimburse the Developer for eligible costs and to reimburse the City for eligible costs from tax increments. Review of Application for Assistance Northland completed a review of the Developer’s application for TIF assistance. The Development cost estimates were reviewed to ensure anticipated sources and uses were properly included. See Exhibit B for a summary of the pro forma for the Development, as prepared by Northland based on estimates provided by the Developer and estimates for tax increment and real estate taxes prepared independently by Northland. Based on the pro forma for the Development, and under current market conditions, as noted earlier, we find that the Development may not reasonably be expected to occur solely through private investment within the reasonably near future. The Development is feasible only through assistance, in part, from TIF. This conclusion is supported by the following: The Developer plans for approximately $40.8 million of costs to be funded from a combination of debt (92%) and equity and earnings (8%). Exhibit C includes the estimated construction budget and source of financing. The present value of the estimated future tax increment revenue from the TIF Note payments to the Developer reduces the effective cost of the Development by $1,872,000, or approximately 5% of the total cost. The estimated effective annual debt service coverage without the TIF assistance is not at a level the Development will proceed. The Development will include a mix of residential unit types, including one- and two- bedroom units. The estimated average gross potential monthly rental income from the Development, net of 5% vacancy and rental loss assumption, is $3,655 per residential units in the first year of full occupancy. The annual total gross rental income from housing units is estimated at approximately $3,861,060 in 2028. The total annual expense, including operating and non-operating costs, as well as management fees, before real estate taxes and reserves, is estimated at $853 per unit (for year 2028). This estimated average cost per unit is reasonable. Annual real estate tax is estimated at an average equivalent cost of $2,522 per residential unit. The analysis supports that the $1,872,000 in pay-go tax increment financing assistance supports financial returns and debt service coverage that will provide for the Development to be financially feasible. The Developer’s requirement for debt service coverage of 1X is achieved with the tax increment. Agenda Page 43 Albertville TIF 23 September 29, 2025 Page 4 Exhibit A 1 2028 13,647,404 164,216 114.076%186,657 18,666 167,991 154,073 2 2029 14,509,345 174,991 114.076%198,903 19,890 179,013 310,343 3 2030 14,654,439 176,804 114.076%200,965 20,096 180,868 460,625 4 2031 14,800,983 178,636 114.076%203,046 20,305 182,742 605,148 5 2032 14,948,993 180,486 114.076%205,150 20,515 184,635 744,131 6 2033 15,098,483 182,355 114.076%207,274 20,727 186,547 877,787 7 2034 15,249,468 184,242 114.076%209,419 20,942 188,477 1,006,320 8 2035 15,401,963 186,148 114.076%211,586 21,159 190,427 1,129,924 9 2036 15,555,982 188,074 114.076%213,774 21,377 192,396 1,248,789 10 2037 15,711,542 190,018 114.076%215,984 21,598 194,385 1,363,097 11 2038 15,868,657 191,982 114.076%218,217 21,822 196,395 1,473,021 12 2039 16,027,344 193,966 114.076%220,471 22,047 198,424 1,578,729 13 2040 16,187,617 195,969 114.076%222,748 22,275 200,473 1,680,383 14 2041 16,349,494 197,992 114.076%225,048 22,505 202,543 1,778,138 15 2042 16,512,989 200,036 114.076%227,372 23,047 204,324 1,872,000 TOTAL = 3,166,613 316,971 2,849,642 1,872,000 Key Assumptions for Cash Flow: 1 Taxable market value (TMV) annual growth assumption = 1.00%. 2 Original Tax Capacity Rate estimated based on Taxes Payable Year 2025. 3 Election for captured tax capacity is 100.00%. 4 5 6 7 8 9 10 Property classification is apartment, 4a. Engel Haus Phase II City of Albertville Tax Increment Financing District No. 1-23 (Housing) Projected Tax Increment Cash Flow for Developer Contract - All Amounts are Estimates and Subject to Change TIF District Year Taxes Payable Year Taxable Market Value (TMV) Captured Net Tax Capacity Original Tax Rate City to retain 10.00% of the tax increment for City administration costs. TIF Revenue is Captured TIF less State Auditor Fee of 0.36%. TIF to Developer PV of TIF to Developer (Reimbursem ent of Costs) Base Tax Capacity calculated based on a TMV = $510,100. Present Value (PV) of TIF to Developer is calculated based on semi-annual payments, 5.0% rate, and dated date 1/31/2027. TMV is based on preliminary estimated valuation from the County Assessor (dated January 23, 2025) with estimated a value of $165,389 per unit (for then 90 units, which has been reduced to 86 units); and TMV annual growth assumption. Analysis assumes 5% completion in 2025; 95% in 2026; and 100% in 2027 for City to elect 2028 as the first year of tax increment collection. TIF Revenue TIF Retained by City Agenda Page 44 Albertville TIF 23 September 29, 2025 Page 5 Exhibit B 5 10 15 20 26 Calendar Year 2032 2037 2042 2047 2052 Year of TIF District Year 5 Year 10 Year 15 Year 20 Year 25 Income before TIF 4,161,773 4,706,149 5,321,800 6,018,063 6,974,956 TIF to Developer 184,635 194,385 204,324 -- Income after TIF 4,346,407 4,900,535 5,526,124 6,018,063 6,974,956 Less operating expense (not including property tax)1,272,619 1,548,336 1,883,787 2,291,915 2,900,003 Less property taxes 237,544 249,661 262,396 275,781 292,747 Net operating income 3,073,788 3,352,199 3,642,338 3,726,149 4,074,953 Less debt service 2,733,225 2,733,768 2,734,580 2,730,750 2,733,888 Net cash flow with TIF 340,563 618,432 907,758 995,399 1,341,065 Debt coverage with TIF 1.04 1.13 1.24 1.26 1.38 Debt coverage without TIF 0.90 0.99 1.09 1.26 1.38 YTD Debt coverage with TIF 0.91 0.99 1.06 1.10 1.15 YTD Debt coverage without TIF 0.79 0.87 0.92 1.00 1.07 YTD TIF to Developer 895,249 1,847,482 2,849,952 2,849,952 2,849,952 Present Value of YTD TIF to Developer (5.0% Rate)744,131 1,363,097 1,872,142 1,872,142 1,872,142 Notes: 1/ Total Development Cost (TDC): 40,825,000 2/ Developer Equity before Refinance:2,200,000 4/ The TIF Plan for the TIF District will provide for a maximum of 26 years of tax increment collection. Agreement with Developer will provide for 15 years of payments, commencing 8/1/2028 and final payment 2/1/2043. 5/ Income before TIF, operating expense, and debt service are based on estimates prepared by Developer and submitted with application to City, with the exception of estimated TIF to Developer and Property Taxes, which are estimates prepared by Northland Public Finance. 6/ Minnesota statute governing the use of tax increment for a housing district requires that for the duration of the district the City (TIF authority) must maintain and be prepared to produce documentation of ongoing compliance with income requirements, even if the TIF District extends beyond the conclusion of a Contract with the Developer. If the City cannot produce documentation the TIF District must be decertified, which may be earlier than the maximum duration (26 years) approved for the TIF District. 3/ Estimated par amount of reimbursement to developer is $1,872,000, payable with interest at 5.0%. First payment 8/1/2028 and final payment 2/1/2043. This amount is based on total estimated tax increment from the TIF District, collected semi- annually, with 90% of the tax increment collected by the City payable to the developer, all pursuant to terms within the agreement. City of Albertville Engel Haus Phase II 86 Unit Residential Apartment Building Summary Pro Forma - All Amounts are Estimates for Planning Purposes Agenda Page 45 Albertville TIF 23 September 29, 2025 Page 6 Exhibit C Total Project Cost Sources of Funds Tax Exempt Conduit Bonds $37,730,000 Earnings on Project Funds $750,000 Land Equity $145,000 Equity $2,200,000 Total Sources of Funds $40,825,000 Uses of Funds Land acquisition $145,000 City fees $776,000 Construction $26,565,000 Machinery & equipment $650,000 Architectural, engineering & development fees $2,130,000 Legal fees $1,067,000 Interest accumulated during construction $2,982,000 Debt service reserve $2,737,000 Funded interest, marketing, other $2,773,000 Contingencies $1,000,000 Total Uses of Funds $40,825,000 Notes: The Developer application states, in part, that the Development is an expansion of an adjacent established senior housing project located on a parcel immediately adjacent to the TIF District and owned by the Developer (Phase I). The Develpment proposed within the TIF District will include the construction of a new approximate 86-unit senior independent living apartment building and common areas for these units within the building by the Developer (Phase II). The project costs included in Exhibit C above includes costs for expansion of dining areas and remodeling of the current kitchen located in Phase I on the adjancent parcel not witin the boundaries of TIF District 23, including the addition of elevator, and other minor renovations. Tax increment from the TIF District 23 can be used only to assist the construction of affordable housing units in Phase II. City of Albertville Engel Haus Phase II Developer Sources and Uses of Funds for Construction 86 Unit Residential Apartment Building Agenda Page 46 DRAFT FOR PUBLIC HEARING CITY OF ALBERTVILLE, MINNESOTA TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 23 (ENGEL HAUS PHASE II) WITHIN MUNICIPAL DEVELOPMENT DISTRICT NO. 1 PROPOSED TO BE ADOPTED BY CITY COUNCIL, CITY OF ALBERTVILLE PUBLIC HEARING DATE: OCTOBER 6, 2025 PLAN APPROVED DATE: ________________, 2025 PLAN CERTIFICATION REQUEST DATE: _____________, 2025 PLAN CERTIFIED DATE: ____________, 2025 Northland Securities, Inc. 150 South Fifth Street, Suite 3300 Minneapolis, MN 55402 (800) 851-2920 Member NASD and SIPC Registered with SEC and MSRB Agenda Page 47 TABLE OF CONTENTS ARTICLE I – INTRODUCTION AND DEFINITIONS .........................................................1 Section 1.01 Introduction ......................................................................................1 Section 1.02 Definitions .........................................................................................1 Section 1.03 Plan Preparation ...............................................................................2 ARTICLE II - TAX INCREMENT FINANCING PLAN .........................................................2 Section 2.01 Statutory Authority ..........................................................................2 Section 2.02 Planned Development .....................................................................2 2.02.1 Description of Development .....................................................................2 2.02.2 City Plans and Development Program ....................................................2 2.02.3 Land Acquisition .........................................................................................2 2.02.4 Development Activities ..............................................................................2 2.02.5 Need for Tax Increment Financing ...........................................................2 Section 2.03 Tax Increment Financing District ...................................................3 2.03.1 Designation ..................................................................................................3 2.03.2 Boundaries of TIF District ..........................................................................3 2.03.3 Type of District ............................................................................................3 Section 2.04 Plan for Use of Tax Increment ........................................................4 2.04.1 Estimated Tax Increment............................................................................4 2.04.2 Public Development Costs .........................................................................4 2.04.3 Estimated Sources and Uses of Funds .....................................................4 Figure 2-1 ......................................................................................................5 2.04.4 Administrative Expenses ...........................................................................5 2.04.5 County Road Costs .....................................................................................5 2.04.6 Bonded Indebtedness .................................................................................6 2.04.7 Duration of TIF District ..............................................................................6 2.04.8 Estimated Impact on Other Taxing Jurisdictions ...................................6 2.04.9 Prior Planned Improvements ....................................................................7 ARTICLE III – ADMINISTERING THE TIF DISTRICT ......................................................7 Section 3.01 Filing and Certification ....................................................................7 Section 3.02 Modifications of the Tax Increment Financing Plan ....................7 Section 3.03 Four-Year Knockdown Rule ...........................................................8 Section 3.04 Five-Year Rule and Six-Year Rule ...................................................8 Section 3.05 Financial Reporting and Disclosure Requirements .....................8 Section 3.06 Business Subsidy Compliance ........................................................8 EXHIBITS...........................................................................................................................9 Exhibit I Present Value Analysis ....................................................................9 Exhibit II Projected Tax Increment ................................................................10 Exhibit III Impact on Other Taxing Jurisdictions..........................................11 Exhibit IV Estimated Tax Increment Over Life of District ..........................12 Exhibit V Map of TIF District and Development District ..........................13 Agenda Page 48 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 23 DRAFT FOR PUBLIC HEARING, OCTOBER 6, 2025 1 ARTICLE I – INTRODUCTION AND DEFINITIONS SECTION 1.01 INTRODUCTION The City of Albertville proposes to provide tax increment financing assistance through the establishment of Tax Increment Financing (Housing) District No. 23 (the “TIF District”) within Municipal Development District No. 1 to assist with the financing of certain project costs for the construction of a new approximate 86-unit senior independent living apartment building and common areas for these units within the building (the “Development”) by Evans Park, Inc. - Guardian Angels Engel Haus Senior Living (the “Developer”). The Development will be adjacent to Engel Haus’ existing senior living building located on an adjacent, but separate parcel, to the boundaries of the TIF District. The Developer reports their mission is to provide exceptional health care, housing, and supportive services to seniors and their families. The Developer serves the communities of Albertville, Becker, Elk River, Otsego, Zimmerman, and surrounding communities and serves more than 3,000 individuals and their families each year. The Developer reports to have staff of approximately 500, as well as volunteers and donors. The Development was contemplated in the Planned Unit Development Agreement between the City and Evans Park, Inc. dated September 30, 2013. This document contains the plan for the TIF District which is consistent with the objectives of the Development Program for Municipal Development District No. 1, as most recently amended pursuant to City Resolution No. 2015-025 adopted June 15, 2015. 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 different 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 Evans Park, Inc. - Guardian Angels Engel Haus Senior Living, its successors or assigns. 5. “Development” means the project which includes the construction a new approximate 86- unit senior independent living apartment building and common areas for these units within the building by the Developer. 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. “Public Development Costs” means the cost of the development activities that will or are expected to occur within the TIF District or Project Area, including but not limited to land acquisition, site improvements, other qualified costs, and administrative costs for the TIF District. 10. “School District” means Independent School District No. 728. 11. “State” means the State of Minnesota. Agenda Page 49 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 23 DRAFT FOR PUBLIC HEARING, OCTOBER 6, 2025 2 12. “Tax Increment Bonds” means any tax increment bonds as defined in Section 469.174, Subd. 3 of the TIF Act, issued by the City to finance Public Development Costs, and any obligations issued to refund such bonds, pursuant to Section 469.178 of the TIF Act. 13. “TIF Act” means Minnesota Statutes, Sections 469.174 through 469.1794, as amended, both inclusive. 14. “TIF District” means Tax Increment Financing (Housing) District No. 23 (Engel Haus Phase II). 15. “TIF Plan” means the tax increment financing plan for the TIF District (this document). SECTION 1.03 PLAN PREPARATION The document was prepared for the City by Northland Securities, Inc. ARTICLE II - TAX INCREMENT FINANCING PLAN SECTION 2.01 STATUTORY AUTHORITY The TIF District and the TIF Plan are established under the authority of the TIF Act. SECTION 2.02 PLANNED DEVELOPMENT 2.02.1 Description of Development The Development includes the construction of the construction a new approximate 86-unit senior independent living apartment building and common areas for these units within the building by the Developer. 2.02.2 City Plans and Development Program In addition to achieving the objectives of the Development Program, the Development is consistent with and works to achieve the development objectives of the City. The TIF Plan for the TIF District conforms to the general plan for development or redevelopment of the City as a whole. The City has adopted land use controls to guide the use of property. The development plans for the Development in the TIF District shall be reviewed by the Planning Commission and the City Council as of the date of approval of the TIF Plan. 2.02.3 Land Acquisition The Developer owns the property within the boundaries of the TIF District. The City does not plan to acquire land within the TIF District. 2.02.4 Development Activities The City anticipates that the development activities for the Development will be subject to a contract between the City and the Developer. The City plans to enter into a contract with the Developer to provide tax increment financing assistance to pay for certain Public Development Costs. 2.02.5 Need for Tax Increment Financing In various materials the Developer has demonstrated that the proposed use of tax increment financing is needed to offset the high construction costs of high-quality low- to moderate- income housing and associated infrastructure required to support the facility. Without the proposed assistance, these initial up-front costs would make it infeasible for the Developer to Agenda Page 50 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 23 DRAFT FOR PUBLIC HEARING, OCTOBER 6, 2025 3 be able to charge the affordable rents required for low-to moderate-income residents. Thus, it is the opinion of the City that the proposed development would not reasonably be expected to occur solely through private investment within the foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in 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. 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, which is not required by the TIF Act for approval of a housing district, indicates that the increase in estimated market value of the proposed development (less the present value of the projected tax increments for the maximum duration permitted by the TIF Plan) exceeds the estimated market value of the site prior to the establishment of the TIF District. SECTION 2.03 TAX INCREMENT FINANCING DISTRICT 2.03.1 Designation This TIF District is designated as Tax Increment Financing (Housing) District No. 23 (Engel Haus Phase II). 2.03.2 Boundaries of TIF District The boundaries of the TIF District are depicted in Exhibit V. The TIF District includes parcel number 101-143-000010 and the immediate adjacent roads and right-of-way. The parcel is currently described as follows: • SECT-02 TWP-120 RANGE-024 GUARDIAN ANGELS OF ALBERTVILLE OUTLOT A 2.03.3 Type of District The TIF District is designated as a “housing” district pursuant to Section 469.174, Subd. 11 of the TIF Act. For the designation, of a tax increment financing housing district, the Developer of the Project will need to commit to the following: 1. Satisfy the income requirements for a qualified residential rental project as defined in section 142(d) of the Internal Revenue Code. This requirement applies for the duration of the tax increment financing district. The developer will commit to provide (a) 20% or more of units for occupancy by persons at 50% or less of area median gross income. 2. Provide that no more than 20% of the square footage of building to receive assistance from tax increments consist of commercial, retail, or other nonresidential uses. Revenue derived from tax increment from a housing district must be used solely to finance the cost of housing projects as defined in Section 469.174, Subd. 11 of the TIF Act. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the City may be included in the cost of a housing project. 3. Failure to comply with these income limitations is subject to the enforcement provisions of Section 469.1771 of the TIF Act. Agenda Page 51 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 23 DRAFT FOR PUBLIC HEARING, OCTOBER 6, 2025 4 SECTION 2.04 PLAN FOR USE OF TAX INCREMENT 2.04.1 Estimated Tax Increment The original net tax capacity of value of the TIF District will be set by the County upon request for certification. For the purposes of the TIF Plan, the estimated original net tax capacity (base tax capacity) is $6,376. The original net tax capacity of value is calculated based on residential rental property classification (4a) and estimated taxable market value of $510,100. This is an estimate for planning purposes. The actual certified original net tax capacity of value may vary. The estimated total tax capacity value of the property after the Development completion (for taxes payable in 2029 (the estimated second year of the TIF District) is $181,367. This amount is based on a total estimated market value of $14,509,345 for the Development (for tax payable 2029) with property classified as residential rental property (4a). The TIF Plan anticipates construction of the Development will commence by 12/31/2025 with 95% completion by 12/31/2026 and 100% completion by 12/31/2027 . The estimated difference between the total tax capacity value after the Development completion (for taxes payable in 2029) and the original net tax capacity value is the captured tax capacity value of $174,991, or the captured net tax capacity, for the creation of tax increment. The total local tax rate for estimating tax increment within this TIF Plan is 114.076%. The TIF Plan assumes this rate as the original local tax rate for the TIF District. At the time of the certification of the original net tax capacity for the TIF District, the county auditor will certify the original local tax rate that applies to the TIF District for the duration. The original local tax rate is the sum of all the local tax rates, excluding that portion of the school rate attributable to the general education levy under Minnesota Statutes Section 126C.13, that apply to a property in the TIF District. The local tax rate to be certified is the rate in effect for the same taxes payable year applicable to the tax capacity values certified as the TIF District’s original tax capacity. The resulting tax capacity rate is the original local tax rate for the duration of the TIF District. Under these assumptions, the estimated annual tax increment is $199,622 after development completion for taxes payable in 2029. The tax increment from the TIF District will vary according to the certified original tax capacity value and original tax rate, the actual property value produced by the proposed development, among other factors that may impact tax increment from the TIF District. The City will retain 100% the full captured net tax capacity for the duration of the TIF district, pursuant to Section 469.177, Subd. 2, (b), (1) of the TIF Act. Exhibit II contains the projected tax increment over the life of the TIF District. 2.04.2 Public Development Costs The City will use tax increment to pay Public Development Costs. A contract between the City and the Developer will define the Public Development Costs that will be eligible to receive reimbursement from tax increment and process for reimbursement. The City may use tax increments to pay financing costs. The rate for interest payable on Tax Increment Bonds issued, which includes pay-go tax increment notes, will be set pursuant to approving resolutions and a contract. 2.04.3 Estimated Sources and Uses of Funds The estimated tax increment revenue along with the estimated Public Development Costs of the TIF District (the “Project Costs”) are itemized in Figure 2-1 that follows. Such costs are eligible for reimbursement from tax increments from the TIF District. The City reserves the right to administratively adjust the amount of any of the Project Cost line items as listed in Figure 2-1, so long as the total estimated tax increment project costs line item amount, not including financing costs, is not increased. Agenda Page 52 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 23 DRAFT FOR PUBLIC HEARING, OCTOBER 6, 2025 5 Total Estimated Tax Increment Revenues Tax increment revenues distributed from the County 3,166,613 Interest and investment earnings 50,000 Sales/lease proceeds - Market value homestead credit - Total Estimated Tax Increment Revenues 3,216,613 Estimated Project/Financing Costs (to be paid or financed with Tax Increment Revenues) Project costs Land/building acquisition - Site improvements/preparation costs - Utilities - Other public improvements - Construction of affordable housing 1,872,000 Administrative costs 316,661 Estimated Tax Increment Project Costs 2,188,661 Estimated financing costs Interest expense 1,027,952 Total Estimated Project/Financing Costs to be Paid from Tax Increment Revenues 3,216,613 Estimated Financing Total amount of bonds to be issued 2,188,661 Figure 2-1 Estimated Sources and Uses of Funds 2.04.4 Administrative Expenses The estimated not to exceed amount of tax increment revenue to pay administrative expenses of the TIF District is shown in Figure 2-1. Anticipated administrative expenses include annual audit of the fund for TIF District, preparation of annual reporting, legal publication of annual report, and administration of the development agreement, among other allowable expenses pursuant to Section 469.174, Subd. 14 of the TIF Act. Pursuant to Section 469.176, Subd. 3 of the TIF Act, the use of tax increment revenues to pay administrative expense for the TIF District cannot exceed ten percent of either 1) the total estimated tax increment expenditures in Figure 2.1 or 2) the total tax increments received for the district net of any certain returned increment, whichever is less. 2.04.5 County Road Costs The 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 53 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 23 DRAFT FOR PUBLIC HEARING, OCTOBER 6, 2025 6 2.04.6 Bonded Indebtedness The total not to exceed amount of Tax Increment Bonds that may be issued is shown in Figure 2-1. The City will not issue general obligation bonded indebtedness as a result of the TIF Plan. Pursuant to Section 469.178, Subd. 7 of the TIF Act, the City may advance or loan money to finance expenditures under Section 469.176, Subd. 4 of the TIF Act, from the general fund of the City or any other legally authorized fund under which it has legal authority to do so, subject to the following provisions: (a) Not later than 60 days after money is transferred, advanced, or spent, whichever is earliest, the loan or advance must be authorized by resolution of the City. (b) The resolution may generally grant to the City the power to make interfund loans under one or more tax increment financing plans or for one or more districts. The resolution may be adopted before or after the adoption of the tax increment financing plan or the creation of the tax increment financing district from which the advance or loan is to be repaid. (c) The terms and conditions for repayment of the loan must be provided in writing. The written terms and conditions may be in any form, but must include, at a minimum, the principal amount, the interest rate, and maximum term. Written terms may be modified or amended in writing by the City before the latest decertification of any tax increment financing district from which the interfund loan is to be repaid. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or 549.09 are from time to time adjusted. Loans or advances may be structured as draw-down or line-of-credit obligations of the lending fund. (d) The City shall report in the annual report submitted under Section 469.175, Subd. 6 of the TIF Act: (1) the amount of any interfund loan or advance made in a calendar year; and (2) any amendment of an interfund loan or advance made in a calendar year. 2.04.7 Duration of TIF District The duration for the TIF District shall not exceed 14 years after the date of receipt of the first tax increment or 15 years of tax increment collection. The City elects 2028 as the first year of tax increment collection pursuant to Section 469.175, Subd. 1(b) of the TIF Act. The estimated month and year of first receipt of tax increment is July 2028. Based on the estimated first year of tax increment collection, the estimated required decertification date is no later than 12/31/2042. 2.04.8 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 finds that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the 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 decertified and the Development therein becomes part of the general tax base. The City anticipates minimal impact of the Development on city-provided services. There may be minimal borrowing costs to the City for the Development. A manageable increase in water and sewer usage is expected. It is anticipated that there may be a slight but manageable increase in police and fire protection duties due to the Development. Agenda Page 54 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 23 DRAFT FOR PUBLIC HEARING, OCTOBER 6, 2025 7 2.04.9 Prior Planned Improvements There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. The City will include this statement with the request for certification to the county auditor. ARTICLE III – ADMINISTERING THE TIF DISTRICT SECTION 3.01 FILING AND CERTIFICATION The filing and certification of the TIF Plan consists of the following steps: 1. Upon adoption of the TIF Plan by the City, the City shall submit a copy of the TIF Plan to the Minnesota Department of Revenue and the Office 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. SECTION 3.02 MODIFICATIONS OF THE TAX INCREMENT FINANCING PLAN The City reserves the right to modify the TIF District and the TIF Plan. Under the TIF Act, the following actions can only be approved after satisfying all the necessary requirements for approval of the original TIF Plan (including notifications 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 total estimated Project Costs, not including cost of financing.  Designation of additional property to be acquired by the City. Other modifications can be made by resolution of the City. In addition, the original approval process does not apply if (1) the only modification 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 finds 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 shall notify the County Auditor of any modification 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 five years following the date of certification. SECTION 3.03 FOUR-YEAR KNOCKDOWN RULE Development of the project as planned will prevent any loss of value from the Four-Year Knockdown Rule. The Four-Year Knockdown Rule requires that if after four years from certification of the TIF District no demolition, rehabilitation, renovation or site improvement, including a qualified 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. Qualified improvements of a street are limited to Agenda Page 55 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 23 DRAFT FOR PUBLIC HEARING, OCTOBER 6, 2025 8 construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The City must submit to the County Auditor, by February 1 of the fifth year following certification, evidence that the required activity has taken place for each parcel in the TIF District. SECTION 3.04 POOLING AND FIVE-YEAR RULE As permitted under Section 469.1763, Subd. 2(b) and Subd. 3(a)(5) of the TIF Act, any expenditures of increment from the TIF District to pay the cost of a “housing project” as defined in Section 469.174, Subd. 11 of the TIF Act will be treated as an expenditure within the district for the purposes of the “pooling rules” and the “five year rule”. It is not anticipated that tax increments will be spent outside the boundaries of the TIF District (except allowable administrative expenses), but such expenditures are expressly authorized in the TIF Plan. SECTION 3.05 FINANCIAL REPORTING AND DISCLOSURE REQUIREMENTS The City will comply with the annual reporting requirements of the TIF Act pursuant to the guidelines of the State Auditor. Pursuant to the TIF Act, 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 the TIF District, in the format as prescribed by the State Auditor. The reporting and disclosure requirements outlined in this section begin with the year the TIF District is certified, and shall end in the year in which both the TIF District has been decertified and all tax increments have been spent or returned to the County for redistribution. Failure to meet these requirements, as determined by the State Auditor may result in suspension of distribution of tax increments. SECTION 3.06 BUSINESS SUBSIDY COMPLIANCE The Project is exempt from the business subsidies requirements specified in Minnesota Statutes, Sections 116J.993 to 116J.995 because the intended assistance for the Project specified in this document is anticipated to be 100% for housing assistance. Agenda Page 56 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 23 DRAFT FOR PUBLIC HEARING, OCTOBER 6, 2025 9 Section 469.175(3)(2) of the TIF Act 1 Estimated Future Market Value w/ Tax Increment Financing $16,512,989 1 2 Payable 2025 Market Value $510,100 3 Market Value Increase (1-2)$16,002,889 4 Present Value of Future Tax Increments $2,080,158 5 Market Value Increase Less PV of Tax Increments $13,922,730 6 Estimated Future Market Value w/o Tax Increment Financing $586,347 1 7 Payable 2025 Market Value $510,100 8 Market Value Increase (6-7)$76,247 9 Increase in MV From TIF $13,846,484 2 1 Assume 1.00% annual appreciation over 15 year duration of the TIF District. 2 3 Section 469.175(3)(2) of the TIF Act does not require this present value analysis for a housing tax increment financing district. This analysis is provided for information purposes. Exhibit I Statutory compliance achieved if increase in market value from TIF (Line 9) is greater than or equal to zero. Present Value Analysis 3 Tax Increment Financing District No. 1-23 Engel Haus Phase II City of Albertville Agenda Page 57 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 23 DRAFT FOR PUBLIC HEARING, OCTOBER 6, 2025 10 1 2028 13,647,404 170,593 6,376 164,216 114.076%187,331 (674)186,657 171,192 2 2029 14,509,345 181,367 6,376 174,991 114.076%199,622 (719)198,903 344,826 3 2030 14,654,439 183,180 6,376 176,804 114.076%201,691 (726)200,965 511,806 4 2031 14,800,983 185,012 6,376 178,636 114.076%203,780 (734)203,046 672,386 5 2032 14,948,993 186,862 6,376 180,486 114.076%205,891 (741)205,150 826,812 6 2033 15,098,483 188,731 6,376 182,355 114.076%208,023 (749)207,274 975,319 7 2034 15,249,468 190,618 6,376 184,242 114.076%210,176 (757)209,419 1,118,133 8 2035 15,401,963 192,525 6,376 186,148 114.076%212,350 (764)211,586 1,255,471 9 2036 15,555,982 194,450 6,376 188,074 114.076%214,546 (772)213,774 1,387,544 10 2037 15,711,542 196,394 6,376 190,018 114.076%216,764 (780)215,984 1,514,552 11 2038 15,868,657 198,358 6,376 191,982 114.076%219,005 (788)218,217 1,636,690 12 2039 16,027,344 200,342 6,376 193,966 114.076%221,268 (797)220,471 1,754,143 13 2040 16,187,617 202,345 6,376 195,969 114.076%223,553 (805)222,748 1,867,092 14 2041 16,349,494 204,369 6,376 197,992 114.076%225,861 (813)225,048 1,975,708 15 2042 16,512,989 206,412 6,376 200,036 114.076%228,193 (821)227,372 2,080,158 TOTAL = 3,178,054 (11,441) 3,166,613 2,080,158 Key Assumptions for Cash Flow: 1 Taxable market value (TMV) annual growth assumption = 1.00%. 2 Original Tax Capacity Rate estimated based on Taxes Payable Year 2025. 3 Election for captured tax capacity is 100.00%. 4 5 6 7 8 9 Property classification is apartment, 4a. City of Albertville Tax Increment Financing District No. 1-23 (Housing) Projected Tax Increment Cash Flow Exhibit II TIF District Year Taxable Market Value (TMV) Present Value of TIF Revenue Engel Haus Phase II Captured Net Tax Capacity Taxes Payable Year Net Tax Capacity Less Original Net Tax Capacity Captured TIF Original Tax Rate Less State Auditor Fee TIF Revenue Base Tax Capacity calculated based on a TMV = $510,100. TMV is based on preliminary estimated valuation from the County Assessor (dated January 23, 2025) with estimated a value of $165,389 per unit (for then 90 units, which has been reduced to 86 units); and TMV annual growth assumption. Analysis assumes 5% completion in 2025; 95% in 2026; and 100% in 2027 for taxes payable 2029. TIF Revenue is Captured TIF less State Auditor Fee of 0.36%. City to elect 2028 as the first year of tax increment collection. Present value is calculated based on semi-annual payments, 5.0% rate, and dated date 1/31/2027. Agenda Page 58 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 23 DRAFT FOR PUBLIC HEARING, OCTOBER 6, 2025 11 Estimated Annual Captured Tax Capacity (Full Development)$200,036 Payable 2025 Local Tax Rate 114.076% Estimated Annual Tax Increment $228,193 Net Tax Capacity (NTC) Captured Tax Capacity Percent of Total NTC City of Albertville 13,771,891 200,036 1.45% Wright County 285,160,824 200,036 0.07% ISD 885 42,781,641 200,036 0.47% Net Tax Capacity (NTC) % of Total Tax Increment Share Added Local Tax Rate City of Albertville 42.861% 37.572% 85,737 0.623% Wright County 35.560% 31.172% 71,132 0.025% ISD 885 35.655% 31.256% 71,323 0.167% Other 0.000% 0.000%0 Totals 114.076% 100.000% 228,192 NOTE NO. 1: Assuming that ALL of the captured tax capacity would be available to all taxing jurisdictions even if the City does not create the Tax Increment District, the creation of the District will reduce tax capacities and increase the local tax rate as illustrated in the above tables. NOTE NO. 2: Assuming that NONE of the captured tax capacity would be available to the taxing jurisdiction if the City did not create the Tax Increment District, then the plan has virtually no initial effect on the tax capacities of the taxing jurisdictions. However, once the District is established, allowable costs paid from the increments, and the District is terminated, all taxing jurisdictions will experience an increase in their tax base. Annual Tax Increment Exhibit III Impact on Other Taxing Jurisdictions (Taxes Payable 2025) Percent of Tax Base City of Albertville Tax Increment Financing District No. 1-23 Engel Haus Phase II Dollar Impact of Affected Taxing Jurisdictions Agenda Page 59 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 23 DRAFT FOR PUBLIC HEARING, OCTOBER 6, 2025 12 New Estimated City County School Other TIF Taxes Taxable New Base Captured Total TIF TIF TIF TIF District Payable Market Tax Tax Tax Tax Related Related Related Related Year Year Value Capacity Capacity Capacity Increment Share Share Share Share 1 2028 13,647,404 170,593 6,376 164,216 187,331 70,385 58,395 58,551 - 2 2029 14,509,345 181,367 6,376 174,991 199,622 75,003 62,226 62,393 - 3 2030 14,654,439 183,180 6,376 176,804 201,691 75,780 62,871 63,040 - 4 2031 14,800,983 185,012 6,376 178,636 203,780 76,565 63,523 63,693 - 5 2032 14,948,993 186,862 6,376 180,486 205,891 77,358 64,180 64,352 - 6 2033 15,098,483 188,731 6,376 182,355 208,023 78,159 64,845 65,019 - 7 2034 15,249,468 190,618 6,376 184,242 210,176 78,968 65,516 65,692 - 8 2035 15,401,963 192,525 6,376 186,148 212,350 79,785 66,194 66,371 - 9 2036 15,555,982 194,450 6,376 188,074 214,546 80,610 66,878 67,058 - 10 2037 15,711,542 196,394 6,376 190,018 216,764 81,444 67,570 67,751 - 11 2038 15,868,657 198,358 6,376 191,982 219,005 82,285 68,268 68,451 - 12 2039 16,027,344 200,342 6,376 193,966 221,268 83,136 68,974 69,158 - 13 2040 16,187,617 202,345 6,376 195,969 223,553 83,994 69,686 69,873 - 14 2041 16,349,494 204,369 6,376 197,992 225,861 84,861 70,406 70,594 - 15 2042 16,512,989 206,412 6,376 200,036 228,193 85,737 71,132 71,323 - Total 3,178,054 1,194,070 990,664 993,319 - Note: The Estimated Total Tax Increment shown above is before deducting the State Auditor's fee, which is payable at a rate of 0.36% of the Total Tax Increment collected. Exhibit II provides Estimated Total Tax Increment after deducting for the State Auditor's fee. Exhibit IV City of Albertville Tax Increment Financing (Housing) District No. 1-23 Engel Haus Phase II Estimated Tax Increments Over Maximum Life of District Agenda Page 60 TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 23 DRAFT FOR PUBLIC HEARING, OCTOBER 6, 2025 13 EXHIBIT V Map of Boundaries of Tax Increment Financing District No. 23 and Municipal Development District No. 1 Boundaries of Tax Increment Financing District No. 23 include the immediate adjacent roads and right-of-way Boundaries of Municipal District No. 1 is coterminous with the municipal boundaries of the City of Albertville Tax IncrementFinancing District No. 2Albertville City LimitsMunicipal DevelopmentDistrict No. 100.50.25MileskSource: Wright County, Norated ConsultCreated Development District No. 1Tax IncrementTTFinancing District No. 23 TIF District No. 23 Agenda Page 61 EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF ALBERTVILLE, MINNESOTA HELD: OCTOBER 6, 2025 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Albertville, Wright County, Minnesota, was duly held at the City Hall on October 6, 2025 at 7:00 p.m. for the purpose, in part, of holding a public hearing on the proposed establishment of Tax Increment Financing District No. 23 within Municipal Development District No. 1, and the proposed adoption of the Tax Increment Financing Plan relating thereto. The following Council members were present: and the following were absent: Councilmember _______________________ introduced the following resolution and moved its adoption: CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2025-40 RESOLUTION ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 23 WITHIN DEVELOPMENT DISTRICT NO. 1 AND ADOPTING THE TAX INCREMENT FINANCING PLAN THEREFOR; AUTHORIZING THE TERMS OF AN INTERFUND LOAN; AUTHORIZING THE EXECUTION OF A DEVELOPMENT AGREEMENT A. WHEREAS, It has been proposed that the City of Albertville, Minnesota (the "City"): (1) establish Tax Increment Financing District No. 23 (the “TIF District”) within Development District No.1 (the "Development District"); (2) approve and adopt the proposed Tax Increment Financing Plan therefor; (3) authorize the terms of an interfund loan related thereto; and (4) authorize the execution of a development agreement, all pursuant to and under the provisions of Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the "Act"); and B. WHEREAS, the City Council has investigated the facts and has caused to be prepared a proposed tax increment financing plan for the TIF District therein (the "TIF Plan"); and C. WHEREAS, the City has performed all actions required by law to be performed prior to the approval of the establishment of the TIF District therein, and the adoption of the TIF Plan therefor, including, but not limited to, notification of Wright County and Independent School District No. 728 having taxing 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; and Agenda Page 62 City of Albertville Resolution No. 2025-40 Meeting of October 6, 2025 Page 2 D. WHEREAS, Engel Haus, LLC (the “Developer”) has requested the City assist with the financing of certain costs incurred in connection with the proposed construction of an approximately 86-unit senior independent living apartment building and common areas for those units within the building (the “Project”); and E. WHEREAS, the Developer and the City have determined to enter into a Development Agreement providing for the City's financial assistance for the Project (the "Development Agreement"); NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Albertville as follows: 1. Development District. The City is not modifying the boundaries of the Development District. 2. Tax Increment Financing District No. 23. There is hereby established in the City within the Development District, Tax Increment Financing District No. 23, a housing development tax increment financing district, the initial boundaries of which are fixed and determined as described in the TIF Plan. 3. Tax Increment Financing Plan. The TIF Plan is adopted as the tax increment financing plan for the TIF District, and the City Council makes the following findings: (a) The TIF District is a housing district as defined in Minnesota Statutes, Section 469.174, Subd. 11; the specific basis for such determination is set forth in Section 2.03.3 of the TIF Plan. (b) The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The reasons for such determination are set forth in Section 2.02.5 of the TIF Plan. (c) 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 are set forth in Section 2.02.5 and Exhibit I of TIF Plan. (d) The TIF Plan for the TIF District conforms to the general plan for development or redevelopment of the City as a whole. The reasons for supporting this finding are set forth in Section 2.02.2 of the TIF 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. The reasons supporting this finding are set forth in Section 2.02.5 of the TIF Plan. Agenda Page 63 City of Albertville Resolution No. 2025-40 Meeting of October 6, 2025 Page 3 4. Public Purpose. The adoption of the TIF Plan for the TIF District within the Development District conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State which is already built up to provide safe, decent, sanitary housing for residents of the City, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. 5. Certification. The Auditor of Wright County is requested to certify the original net tax capacity of the TIF District as described in TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased in accordance with the Act; and the City Administrator is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding the adoption of this Resolution. 6. Filing. The City Administrator is further authorized and directed to file a copy of the TIF Plan for the TIF District with the Commissioner of Revenue and the Office of the State Auditor. 7. Administration. The administration of the Development District is assigned to the City Administrator who shall from time to time be granted such powers and duties pursuant to Minnesota Statutes, Sections 469.130 and 469.131 as the City Council may deem appropriate. 8. Interfund Loan. The City has determined to pay for certain costs (the "Qualified Costs") identified in the TIF Plan consisting of the acquisition costs of the land and certain administrative expenses, which costs may be financed on a temporary basis from the City's general fund or any other fund from which such advances may be legally made (the "Fund"). Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan money from the Fund in order to finance the Qualified Costs. The City intends to reimburse itself for the payment of the Qualified Costs, plus interest thereon, from tax increments derived from the TIF District in accordance with the following terms (which terms are referred to collectively as the "Interfund Loan"): (a) The City hereby authorizes the advance of up to $50,000 from the City's General Fund or so much thereof as may be paid as Qualified Costs. The City shall reimburse itself for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4.00% and will not fluctuate. (b) Principal and interest on the Interfund Loan ("Payments") shall be paid annually on each December 31 commencing with the date the tax increments from the TIF District are available and not otherwise pledged to and including the earlier of (a) the date the principal and accrued interest of the Interfund Loan is paid in full, or (b) the date Agenda Page 64 City of Albertville Resolution No. 2025-40 Meeting of October 6, 2025 Page 4 of last receipt of tax increment from the TIF District ("Payment Dates") which Payments will be made in the amount and only to the extent of available tax increments. Payments shall be applied first to accrued interest, and then to unpaid principal. (c) Payments on the Interfund Loan are payable solely from the tax increment generated in the preceding twelve (12) months with respect to the TIF District and remitted to the City by Wright County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1794, as amended. Payments on this Interfund Loan are subordinate to any outstanding or future bonds, notes or contracts secured in whole or in part with tax increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with tax increments. (d) The principal sum and all accrued interest payable under this Interfund Loan are pre-payable in whole or in part at any time by the City without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. (e) The Interfund Loan is evidence of an internal borrowing by the City in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from tax increment pledged to the payment hereof under this resolution. The Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of tax increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on the Interfund Loan or other costs incident hereto. 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 termination of the TIF District. (f) The City may amend the terms of the Interfund Loan at any time by resolution of the City Council, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. 9. Development Agreement. (a) The Council hereby approves the Development Agreement in substantially the form submitted, and the Mayor and the City Administrator are hereby authorized and directed to execute the Development Agreement on behalf of the Council. (b) The approval hereby given to the Development Agreement includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the City officials authorized by this resolution to execute the Development Agreement. The execution of the Development Agreement by the Agenda Page 65 City of Albertville Resolution No. 2025-40 Meeting of October 6, 2025 Page 5 appropriate officer or officers of the City shall be conclusive evidence of the approval of the Development Agreement in accordance with the terms hereof. The motion for adoption of the foregoing resolution was duly seconded by member _________________ and, after full discussion thereof, and upon a vote being taken thereof, the following voted in favor thereof: and the following voted against same: Adopted by the City Council of the City of Albertville this 6th day of October 2025. _____________________________________ Jillian Hendrickson, Mayor ATTEST: _______________________________ Adam Nafstad, City Administrator Agenda Page 66 City of Albertville Resolution No. 2025-40 Meeting of October 6, 2025 Page 6 STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF ALBERTVILLE I, the undersigned, being the duly qualified and acting Administrator of the City of Albertville, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and the original minutes of a meeting of the City Council of the City held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to a resolution establishing TIF District No. 23 within Development District No. 1 and Adopting the TIF Plan therefor; authorizing the terms of an Interfund Loan; and authorizing the execution of a Development Agreement. WITNESS my hand as such Administrator of the City Council of the City of Albertville, Minnesota this 6th day of October, 2025. _____________________________ Adam Nafstad, City Administrator Agenda Page 67 DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF ALBERTVILLE, MINNESOTA AND ENGEL HAUS, LLC This document drafted by: Taft Stettinius & Hollister LLP (RMS) 2200 IDS Center 80 South 8th Street Minneapolis, Minnesota 55402 Agenda Page 68 TABLE OF CONTENTS Page 1 -i- ARTICLE I DEFINITIONS ........................................................................................................ 2 Section 1.1 Definitions.................................................................................................. 2 ARTICLE II REPRESENTATIONS AND WARRANTIES ...................................................... 4 Section 2.1 Representations and Warranties of the City ............................................... 4 Section 2.2 Representations and Warranties of the Developer ..................................... 4 ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY ............................................ 6 Section 3.1 Project Costs and Legal and Administrative Expenses .............................. 6 Section 3.2 Limitations on Undertaking of the City ..................................................... 6 Section 3.3 Reimbursement: TIF Note ......................................................................... 6 Section 3.4 Compliance with Low and Moderate Income Requirements .................... 7 Section 3.5 Real Property Taxes ................................................................................... 8 Section 3.6 Prohibition Against Transfer of Project and Assignment of Agreement .................................................................................................. 9 ARTICLE IV EVENTS OF DEFAULT .................................................................................... 10 Section 4.1 Events of Default Defined ....................................................................... 10 Section 4.2 Remedies on Default ................................................................................ 10 Section 4.3 No Remedy Exclusive.............................................................................. 11 Section 4.4 No Implied Waiver .................................................................................. 11 Section 4.5 Agreement to Pay Attorney’s Fees and Expenses ................................... 11 Section 4.6 Indemnification of City. ........................................................................... 11 ARTICLE V DEVELOPER’S OPTION TO TERMINATE AGREEMENT ........................... 13 Section 5.1 The Developer’s Option to Terminate ..................................................... 13 Section 5.2 Action to Terminate ................................................................................. 13 Section 5.3 Effect of Termination ............................................................................... 13 ARTICLE VI ADDITIONAL PROVISIONS ........................................................................... 14 Section 6.1 Restrictions on Use .................................................................................. 14 Section 6.2 Conflicts of Interest.................................................................................. 14 Section 6.3 Titles of Articles and Sections ................................................................. 14 Section 6.4 Notices and Demands .............................................................................. 14 Section 6.5 Counterparts ............................................................................................. 15 Agenda Page 69 TABLE OF CONTENTS (continued) Page 2 -ii- Section 6.6 Law Governing ........................................................................................ 15 Section 6.7 Expiration ................................................................................................. 15 Section 6.8 Provisions Surviving Rescission or Expiration........................................ 15 Section 6.9 Assignment of Agreement and TIF Note ................................................. 15 EXHIBIT A DESCRIPTION OF DEVELOPMENT PROPERTY ......................................... A-1 EXHIBIT B FORM OF TIF NOTE .......................................................................................... B-1 EXHIBIT C COMPLIANCE CERTIFICATE ......................................................................... C-1 Agenda Page 70 1 DEVELOPMENT AGREEMENT THIS AGREEMENT, made as of the 6th day of October, 2025, by and between the City of Albertville, Minnesota (the “City”), a municipal corporation existing under the laws of the State of Minnesota and Engel Haus, LLC, a Minnesota limited liability company, the sole member of which is Evans Park, Inc., a Minnesota nonprofit corporation (the “Developer”), WITNESSETH: WHEREAS, pursuant to Minnesota Statutes, Section 469.124 through 469.133, the City has heretofore established Municipal Development District No. 1 (the “Development District”) and has adopted a development program therefor (the “Development Program”); and WHEREAS, pursuant to the provisions of Minnesota Statutes, Section 469.174 through 469.1794, as amended (hereinafter, the “Tax Increment Act”), the City is establishing as of the date hereof, the Development District, Tax Increment Financing District No. 1-23 (Engel Haus Phase II) (the “Tax Increment District”) and has adopted a tax increment financing plan therefor (the “Tax Increment Plan”) which provides for the use of tax increment financing in connection with certain development within the Development District; and WHEREAS, in order to achieve the objectives of the Development Program and particularly to make the land in the Development District available for development by private enterprise in conformance with the Development Program, the City has determined to assist the Developer with the financing of certain costs of a Project (as hereinafter defined) to be constructed within the Tax Increment District as more particularly set forth in this Agreement; and WHEREAS, the City believes that the development and construction of the Project, and fulfillment of this Agreement are vital and are in the best interests of the City, the health, safety, morals, and welfare of residents of the City, and in accordance with the public purpose and provisions of the applicable state and local laws and requirements under which the Project has been undertaken and is being assisted; and WHEREAS, the requirements of the Business Subsidy Law, Minnesota Statutes, Section 116J.993 through 116J.995, do not apply to this Agreement pursuant to an exemption for housing. 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: Agenda Page 71 2 ARTICLE I DEFINITIONS Section 1.1 Definitions. All capitalized terms used and not otherwise defined herein shall have the following meanings unless a different meaning clearly appears from the context: Agreement means this Development Agreement, as the same may be from time to time modified, amended or supplemented; Business Day means any day except a Saturday, Sunday or a legal holiday or a day on which banking institutions in the City are authorized by law or executive order to close; City means the City of Albertville, Minnesota, its successors and assigns; Compliance Certificate means the Compliance Certificate in substantially the form attached hereto as Exhibit C; County means Wright County, Minnesota; Developer means Engel Haus, LLC, a Minnesota limited liability company, the sole member of which is Evans Park, Inc., a Minnesota nonprofit corporation, its successors and assigns; Development District means the real property included in Municipal Development District No. 1 heretofore established; Development Program means the development program approved in connection with the Development District; Development Property means the real property described in Exhibit A attached to this Agreement; Event of Default means any of the events described in Section 4.1 hereof; Legal and Administrative Expenses means the fees and expenses incurred by the City in connection with the review and analysis of the development proposed under this Agreement, the adoption of the Tax Increment Financing Plan and establishment of the Tax Increment District, and the preparation of this Agreement including, but not limited to, attorney and municipal advisor fees and expenses; Note Payment Date means August 1, 2028, and each February 1 and August 1 of each year thereafter to and including February 1, 2043; provided, that if any such Note Payment Date should not be a Business Day, the Note Payment Date shall be the next succeeding Business Day; Prime Rate means the rate of interest from time to time publicly announced by U.S. Bank National Association in St. Paul, Minnesota, as its “prime rate” or “reference rate” or any successor rate, which rate shall change as and when that rate or successor rate changes; Agenda Page 72 3 Project means an 86-unit senior independent living apartment building and common areas for those units within the building to be located on the Development Property; State means the State of Minnesota; Tax Increment Act means Minnesota Statutes, Sections 469.174 through 469.1794, as amended; Tax Increment District means Tax Increment Financing District No. 1-23 (Engel Haus Phase II) located within the Development District, a description of which is set forth in the Tax Increment Financing Plan, which was qualified as a housing district under the Tax Increment Act; Tax Increment Financing Plan means the tax increment financing plan approved for the Tax Increment District by the City Council on October 6, 2025, and any future amendments thereto; Tax Increments means 90% of the tax increments derived from the Development Property which have been received by the City in accordance with the provisions of Minnesota Statutes, Section 469.177; Termination Date means the earlier of (i) February 1, 2043, (ii) the date the TIF Note is paid in full, (iii) the date on which the Tax Increment District expires or is otherwise terminated, or (iv) the date this Agreement is terminated or rescinded in accordance with its terms; TIF Note means the Tax Increment Revenue Note (Engel Haus, LLC Project) to be executed by the City and delivered to the Developer pursuant to Article III hereof, the form of which is attached hereto as Exhibit B; and Unavoidable Delays means delays, outside the control of the party claiming its occurrence, which are the direct result of strikes, other labor troubles, unusually severe or prolonged bad weather, acts of God, fire or other casualty to the Project, litigation commenced by third parties which, by injunction or other similar judicial action or by the exercise of reasonable discretion, directly results in delays, or acts of any federal, state or local governmental unit (other than the City) which directly result in delays. Agenda Page 73 4 ARTICLE II REPRESENTATIONS AND WARRANTIES Section 2.1 Representations and Warranties of the City. The City makes the following representations and warranties: (1) The City is a municipal corporation and has the power to enter into this Agreement and carry out its obligations hereunder. (2) Based on the representations of the Developer set forth in Section 3.4 below, the Tax Increment District is a “housing district” within the meaning of Minnesota Statutes, Section 469.174, Subdivision 11, and was created, adopted and approved in accordance with the terms of the Tax Increment Act. (3) The development contemplated by this Agreement is in conformance with the development objectives set forth in the Development Program. (4) To finance certain costs within the Tax Increment District, the City proposes, subject to the further provisions of this Agreement, to apply Tax Increments to reimburse the Developer for a portion of the costs of the Project as further provided in this Agreement. (5) The City makes no representation or warranty, either expressed or implied, as to the Development Property or its condition or the soil conditions thereon, or that the Development Property shall be suitable for the Developer’s purposes or needs. Section 2.2 Representations and Warranties of the Developer. The Developer makes the following representations and warranties: (1) The Developer is a Minnesota limited liability company and has the power and authority to enter into this Agreement and to perform its obligations hereunder, and doing so will not violate its articles of organization, bylaws, or other operating agreement, or the laws of the State and by proper action has authorized the execution and delivery of this Agreement. (2) The Developer shall cause the Project to be constructed in accordance with the terms of this Agreement, the Development Program, and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, energy conservation, building code and public health laws and regulations). (3) The construction of the Project would not be undertaken by the Developer, and in the opinion of the Developer would not be economically feasible within the reasonably foreseeable future, without the assistance and benefit to the Developer provided for in this Agreement. (4) 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 provision of any contractual restriction, evidence of indebtedness, Agenda Page 74 5 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. (5) The Developer will cooperate fully with the City with respect to any litigation commenced with respect to the Project. (6) The Developer will cooperate fully with the City in resolution of any traffic, parking, trash removal or public safety problems which may arise in connection with the construction and operation of the Project. (7) Construction of the Project shall begin by April 30, 2026, and the construction of the Project will be substantially completed by December 31, 2027, both subject to Unavoidable Delays. (8) The Developer will obtain, or cause to be obtained, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all applicable local, state, and federal laws and regulations which must be obtained or met before the Project may be lawfully constructed. (9) The Developer acknowledges that Tax Increment projections contained in the Tax Increment Financing Plan are estimates only and the Developer acknowledges that it shall place no reliance on the amount of projected Tax Increments and the sufficiency of such Tax Increments to reimburse the Developer for a portion of the costs of the construction of the Project as provided in Article III. Agenda Page 75 6 ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY Section 3.1 Project Costs and Legal and Administrative Expenses. (1) The costs of construction of the Project shall be paid by the Developer. The City shall reimburse the Developer for the lesser of (a) $1,872,000, or (b) the costs of the construction of the Project actually incurred and paid by the Developer (the “Reimbursement Amount”), as further provided in Section 3.3 hereof. (2) Upon the request of the City, the Developer shall pay or reimburse all Legal and Administrative Expenses incurred by the City within 15 days of receipt of such request. Section 3.2 Limitations on Undertaking of the City. Notwithstanding the provisions of Sections 3.1, the City shall have no obligation to the Developer under this Agreement to reimburse the Developer for the costs identified in Section 3.1, if the City, at the time or times such payment is to be made, is entitled under Section 4.2 to exercise any of the remedies set forth therein as a result of an Event of Default which has not been cured. Section 3.3 Reimbursement: TIF Note. The City shall reimburse the payments made by the Developer under Section 3.1 for costs of the construction of the Project through the issuance of the City’s TIF Note in substantially the form attached to this Agreement as Exhibit B, subject to the following conditions: (1) The TIF Note shall be dated, issued and delivered when the Developer shall have demonstrated in writing to the reasonable satisfaction of the City that the construction of the Project has been completed and that the Developer has incurred and paid all costs of the construction of Project, as described in and limited by Section 3.1 and shall have submitted paid invoices for the costs of construction of the Project in an amount not less than the Reimbursement Amount. (2) The unpaid principal of the TIF Note shall bear simple, non-compounding interest from the date of issuance of the TIF Note, at 5.00% per annum. Interest shall be computed on the basis of a 360 day year consisting of twelve (12) 30-day months. (3) The principal amount of the TIF Note shall be payable solely from the Tax Increments. (4) On each Note Payment Date and subject to the provisions of the TIF Note, the City shall pay, against the principal outstanding on the TIF Note, the Tax Increments received by the City during the preceding 6 months. All such payments shall be applied first to accrued interest and then to reduce the principal of the TIF Note. (5) The TIF Note shall be a special and limited obligation of the City and not a general obligation of the City, and only Tax Increments shall be used to pay the principal of and interest on the TIF Note. If, on any Note Payment Date, the Tax Increments for the payment of the accrued and unpaid interest on the TIF Note are insufficient for such purposes, the difference shall be Agenda Page 76 7 carried forward, without interest accruing thereon, and shall be paid if and to the extent that on a future Note Payment Date there are Tax Increments in excess of the amounts needed to pay the accrued interest then due on the TIF Note. (6) The City’s obligation to make payments on the TIF Note on any Note Payment Date or any date thereafter shall be conditioned upon the requirements that: (A) there shall not at that time be an Event of Default that has occurred and is continuing under this Agreement; and (B) this Agreement shall not have been rescinded pursuant to Section 4.2. (7) The TIF Note shall be governed by and payable pursuant to the additional terms thereof, as set forth in Exhibit B. In the event of any conflict between the terms of the TIF Note and the terms of this Section 3.3, the terms of the TIF Note shall govern. The issuance of the TIF Note pursuant and subject to the terms of this Agreement, and the taking by the City of such additional actions as bond counsel for the TIF Note may require in connection therewith, are hereby authorized and approved by the City. Section 3.4 Compliance with Low and Moderate Income Requirements. (1) The City and the Developer understand and agree that the Tax Increment District will constitute a “housing district” under Section 469.174, Subd. 11 of the Tax Increment Act. Accordingly, in compliance with Section 469.1761, Subd. 3 of the Tax Increment Act, the Developer agrees that the Project must satisfy, or be treated as satisfying, the income requirements for a qualified residential rental project as defined in Section 142(d) of the Internal Revenue Code. The parties further agree that no more than 20% of the square footage of the Project may consist of commercial, retail, or other nonresidential uses. The Developer must meet the above requirements as follows: (A) At least 20% of the residential units in the Project must be occupied or available for occupancy by persons whose incomes do not exceed 50% of the County median income; and (B) The limits described in clause (A) must be satisfied through the Termination Date. Income for occupants of units described in clause (A) shall be adjusted for family size in accordance with Section 142(d) of the Internal Revenue Code and related regulations. (2) On or before each January 1 and July 1, commencing on January 1, 2026, the Developer or an agent of the Developer must deliver or cause to be delivered to the City a Compliance Certificate, substantially in the form attached hereto as Exhibit C, executed by the Developer covering the preceding six (6) months together with written evidence satisfactory to the City of compliance with the covenants in this Section. This evidence must include a statement of the household income of each qualifying renter, a written determination that each qualifying renter’s household income falls within the qualifying limits of this Section (and Section 142(d) of the Internal Revenue Code), and certification that the income documentation is correct and accurate (and that the determination of qualification was made in compliance with Section 142(d) of the Internal Revenue Code). The City may review, upon request, all documentation supporting the Developer submissions and statements. In determining compliance with this Section, the Agenda Page 77 8 Developer must use the County median incomes for the year in which the payment is due on the TIF Note, as promulgated by the Minnesota Housing Finance Agency based on the area median incomes established by the United States Department of Housing and Urban Development. Section 3.5 Action to Reduce Taxes and Notice to the City. (1) The Developer may seek through petition or other means to have the market value for the Development Property reduced. Until the TIF Note is fully paid, such activity must be preceded by written notice from the Developer to the City indicating its intention to do so. Upon receiving such notice, or otherwise learning of the Developer's intentions, the City may suspend payments due under the TIF Note until the actual amount of the reduction is determined, whereupon the City will make the suspended payments less any amount that the City is required to repay the County as a result any reduction in market value of the Development Property. During the period that the payments are subject to suspension, the City may make partial payments on the TIF Note if it determines, in its sole and absolute discretion that the amount retained will be sufficient to cover any repayment which the County may require. The City's suspension of payments on the TIF Note pursuant to this Section shall not be considered a default under this Agreement. (2) On or before each January 1 and July 1, commencing on January 1, 2026, the Developer or an agent of the Developer must deliver or cause to be delivered to the City a Compliance Certificate, substantially in the form attached hereto as Exhibit C, executed by the Developer covering the preceding six (6) months, stating that is not seeking to have the market value for the Development Property reduced or otherwise challenging any payment of any property taxes in connection with the Development Property. Section 3.6 Real Property Taxes. The Developer acknowledges that it is obligated under law to pay all real property taxes payable with respect to all and any parts of the Development Property until the Developer’s obligations have been assumed by any other person with the written consent of the City pursuant to the provisions of this Agreement. The Developer agrees that prior to the Termination Date: (1) It will not seek administrative review or judicial review of the applicability of any tax statute relating to the taxation of real property contained on the Development Property determined by any tax official to be applicable to the Project or the Developer or raise the inapplicability of any such tax statute as a defense in any proceedings with respect to the Development Property, including delinquent tax proceedings; provided, however, “tax statute” does not include any local ordinance or resolution levying a tax; (2) It will not seek administrative review or judicial review of the constitutionality of any tax statute relating to the taxation of real property contained on the Development Property determined by any tax official to be applicable to the Project or the Developer or raise the unconstitutionality of any such tax statute as a defense in any proceedings with respect to the Development Property, including delinquent tax proceedings; provided, however, “tax statute” does not include any local ordinance or resolution levying a tax; and Agenda Page 78 9 (3) It will not seek any tax deferral or abatement, either presently or prospectively authorized under Minnesota Statutes, Section 469.1813, or any other State or federal law, of the ad valorem property taxation of the Development Property between the date of execution of this Agreement and the Termination Date. Section 3.7 Prohibition Against Transfer of Project and Assignment of Agreement. The Developer represents and agrees that prior to the Termination Date, the Developer shall not transfer the Project or any part thereof or any interest therein, without the prior written approval of the City. The City shall be entitled to require as conditions to any such approval that: (1) 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. (2) Any proposed transferee, by instrument in writing satisfactory to the City 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 and agreed to be subject to all the conditions and restrictions to which the Developer is subject. There shall be submitted to the City for review and prior written approval all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Project. Agenda Page 79 10 ARTICLE IV EVENTS OF DEFAULT Section 4.1 Events of Default Defined. The following shall be “Events of Default” under this Agreement and the term “Event of Default” shall mean whenever it is used in this Agreement any one or more of the following events: (1) Failure by the Developer to timely pay any ad valorem real property taxes, special assessments or other City charges with respect to the Development Property when due and payable. (2) Failure by the Developer to cause the construction of the Project to be completed pursuant to the terms, conditions and limitations of this Agreement. (3) Failure of the Developer to observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement. (4) The holder of any mortgage on the Development Property or any improvements thereon, or any portion thereof, commences foreclosure proceedings as a result of any default under the applicable mortgage documents. (5) If the Developer shall: (A) file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act of 1978, as amended or under any similar federal or state law; or (B) make an assignment for the benefit of its creditors; or (C) admit in writing its inability to pay its debts generally as they become due; or (D) be adjudicated as bankrupt or insolvent; or if a petition or answer proposing the adjudication of the Developer as bankrupt or its reorganization under any present or future federal bankruptcy act or any similar federal or state law shall be filed in any court and such petition or answer shall not be discharged or denied within sixty (60) days after the filing thereof; or a receiver, liquidator or trustee of the Developer, or of the Project, or part thereof, shall be appointed in any proceeding brought against the Developer, and shall not be discharged within sixty (60) days after such appointment, or if the Developer, shall consent to or acquiesce in such appointment. Section 4.2 Remedies on Default. Whenever any Event of Default referred to in Section 4.1 occurs and is continuing, the City, as specified below, may take any one or more of the following actions after giving thirty (30) days’ written notice of the Event of Default to the Developer, but only if the Event of Default has not been cured within said thirty (30) days: Agenda Page 80 11 (1) The City may suspend its performance under this Agreement and the TIF Note until it receives assurances from the Developer, deemed adequate by the City, that the Developer will cure its default and continue its performance under this Agreement. (2) The City may cancel and rescind the Agreement and the TIF Note. (3) The City may take any action, including legal or administrative action, in law or equity, which may appear necessary or desirable to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement. Section 4.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the City 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. Section 4.4 No Implied Waiver. In the event any agreement contained in this Agreement should be breached by any party and thereafter waived by any 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 4.5 Agreement to Pay Attorney’s Fees and Expenses. Whenever any Event of Default occurs and the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement or performance or observance of any obligation or agreement on the part of the Developer herein contained, the Developer agrees that it shall, on demand therefor, pay to the City fees of such attorneys and such other expenses so incurred by the City. Section 4.6 Indemnification of City. (1) The Developer (a) releases the City and its governing body members, officers, agents, including the independent contractors, consultants and legal counsel, servants and employees (collectively, the “Indemnified Parties”) from, (b) covenants and agrees that the Indemnified Parties shall not be liable for, and (c) agrees to indemnify and hold harmless the Indemnified Parties against, any claim, cause of action, suit or liability for 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 Project or on the Development Property. (2) Except for any willful misrepresentation or any willful or wanton misconduct of the Indemnified Parties, the Developer agrees to protect and defend the Indemnified Parties, now and forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from the actions or inactions of the Developer (or if other persons acting on its behalf or under its direction or control) under this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Project; provided, that this Agenda Page 81 12 indemnification shall not apply to the warranties made or obligations undertaken by the City in this Agreement or to any actions undertaken by the City which are not contemplated by this Agreement but shall, in any event and without regard to any fault on the part of the City, apply to any pecuniary loss or penalty (including interest thereon from the date the loss is incurred or penalty is paid by the City at a rate equal to the Prime Rate) as a result of the Developer operating the Project so that the Tax Increment District does not qualify or ceases to qualify as a “housing district” under Section 469.174, Subdivision 11, of the Act or to violate limitations as to the use of Tax Increments as set forth in Section 469.176, Subdivision 4d. (3) 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. Agenda Page 82 13 ARTICLE V DEVELOPER’S OPTION TO TERMINATE AGREEMENT Section 5.1 The Developer’s Option to Terminate. This Agreement may be terminated by Developer, if (i) the Developer is in compliance with all material terms of this Agreement and no Event of Default has occurred; and (ii) the City fails to comply with any material term of this Agreement, and, after written notice by the Developer of such failure, the City has failed to cure such noncompliance within ninety (90) days of receipt of such notice, or, if such noncompliance cannot reasonably be cured by the City within ninety (90) days, of receipt of such notice, the City has not provided assurances, reasonably satisfactory to the Developer, that such noncompliance will be cured as soon as reasonably possible. Section 5.2 Action to Terminate. Termination of this Agreement pursuant to Section 5.1 must be accomplished by written notification by the Developer to the City within sixty (60) days after the date when such option to terminate may first be exercised. A failure by the Developer to terminate this Agreement within such period constitutes a waiver by the Developer of its rights to terminate this Agreement due to such occurrence or event. Section 5.3 Effect of Termination. If this Agreement is terminated pursuant to this Article V, this Agreement shall be from such date forward null and void and of no further effect; provided, however, the termination of this Agreement shall not affect the rights of either party to institute any action, claim or demand for damages suffered as a result of breach or default of the terms of this Agreement by the other party, or to recover amounts which had accrued and become due and payable as of the date of such termination. Upon termination of this Agreement pursuant to this Article V, the Developer shall be free to proceed with the Project at its own expense and without regard to the provisions of this Agreement; provided, however, that the City shall have no further obligations to the Developer with respect to reimbursement of the expenses set forth in Section 3.2, or to make any further payments on the TIF Note. Agenda Page 83 14 ARTICLE VI ADDITIONAL PROVISIONS Section 6.1 Restrictions on Use. The Developer agrees for itself, its successors and assigns and every successor in interest to the Development Property, or any part thereof, that during the term of this Agreement the Developer and such successors and assigns shall operate, or cause to be operated, the Project as a housing facility and shall devote the Development Property to, and in accordance with, the uses specified in this Agreement. Section 6.2 Conflicts of Interest. No member of the governing body or other official of the City shall have any financial interest, direct or indirect, in this Agreement, the Development Property or the Project, or any contract, agreement or other transaction contemplated to occur or be undertaken thereunder or with respect thereto, nor shall any such member of the governing body or other official participate in any decision relating to the Agreement which affects his or her personal interests or the interests of any corporation, partnership or association in which he or she is directly or indirectly interested. No member, official or employee of the City shall be personally liable to the City in the event of any default or breach by the Developer or successor or on any obligations under the terms of this Agreement. Section 6.3 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 6.4 Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by any party to any 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 (1) in the case of the Developer is addressed to or delivered personally to: Engel Haus, LLC Attention: Teresa Larson 508 Freeport Avenue NW Elk River, MN 55330 with a copy to: Nilan Johnson Lewis PA Attention: Zach Crain 250 Marquette Avenue South Suite 800 Minneapolis, MN 55401 Agenda Page 84 15 (2) in the case of the City is addressed to or delivered personally to the City at: City of Albertville, Minnesota Attention: City Administrator Albertville City Hall 5959 Main Avenue Albertville, MN 55301 with a copy to: Taft Stettinius & Hollister LLP Attention: Rhonda Skoby 2200 IDS Center 80 South 8th Street Minneapolis, MN 55402 or at such other address with respect to any such party as that party may, from time to time, designate in writing and forward to the other, as provided in this Section. Section 6.5 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 6.6 Law Governing. This Agreement will be governed and construed in accordance with the laws of the State. Section 6.7 Expiration. This Agreement shall expire on the Termination Date. Section 6.8 Provisions Surviving Rescission or Expiration. Sections 4.5 and 4.6 shall survive any rescission, termination or expiration of this Agreement with respect to or arising out of any event, occurrence or circumstance existing prior to the date thereof. Section 6.9 Assignment of Agreement and TIF Note. This Agreement may be assigned only with the consent of the City. The TIF Note may only be assigned pursuant to the terms of the TIF Note. IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and on its behalf and the Developer has caused this Agreement to be duly executed on its behalf, on or as of the date first above written. Agenda Page 85 16 CITY OF ALBERTVILLE, MINNESOTA By ____________________________________ Its Mayor By ____________________________________ Its Administrator This is a signature page to the Development Agreement by and between the City of Albertville, Minnesota and Engel Haus, LLC Agenda Page 86 17 ENGEL HAUS, LLC By ____________________________________ Its ____________________________________ This is a signature page to the Development Agreement by and between the City of Albertville, Minnesota and Engel Haus, LLC Agenda Page 87 A-1 EXHIBIT A DESCRIPTION OF DEVELOPMENT PROPERTY Parcel: 101-143-000010 Agenda Page 88 B-1 EXHIBIT B FORM OF TIF NOTE No. R-1 $___________ UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF ALBERTVILLE TAX INCREMENT REVENUE NOTE (ENGEL HAUS, LLC PROJECT) The City of Albertville, Minnesota (the “City”), hereby acknowledges itself to be indebted and, for value received, hereby promises to pay the amounts hereinafter described (the “Payment Amounts”) to Engel Haus, LLC, a Minnesota limited liability company (the “Developer”) or its registered assigns (the “Registered Owner”), but only in the manner, at the times, from the sources of revenue, and to the extent hereinafter provided. The principal amount of this Note shall equal from time to time the principal amount stated above, as reduced to the extent that such principal installments shall have been paid in whole or in part pursuant to the terms hereof; provided that the sum of the principal amount listed above shall in no event exceed $1,872,000 as provided in that certain Development Agreement, dated as of October 6, 2025, as the same may be amended from time to time (the “Development Agreement”), by and between the City and the Developer. The unpaid principal amount hereof shall bear interest from the date of this Note, at the simple, non-compounding interest rate of 5.00% per annum. Interest shall be computed on the basis of a 360-day year, consisting of twelve, 30-day months. The amounts due under this Note shall be payable on August 1, 2028, and on each February 1 and August 1 thereafter to and including February 1, 2043, or, if the first should not be a Business Day (as defined in the Development Agreement), the next succeeding Business Day (the “Payment Dates”). On each Payment Date the City shall pay by check or draft mailed to the person that was the Registered Owner of this Note at the close of the last business day of the City preceding such Payment Date an amount equal to the Tax Increments (hereinafter defined) received by the City during the six month period preceding such Payment Date. All payments made by the City under this Note shall be first applied to accrued interest and then to the principal. This Note is prepayable by the City, in whole or in part, on any date. The Payment Amounts due hereon shall be payable solely from 90% of tax increments (the “Tax Increments”) from the Development Property (as defined in the Development Agreement) within the City’s Tax Increment Financing District No. 1-23 (Engel Haus Phase II) (the “Tax Increment District”) within its Municipal Development District No. 1 which are paid to the City and which the City is entitled to retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.1794, as the same may be amended or supplemented from time to time (the “Tax Increment Act”). This Note shall terminate and be of no further force and effect following the last Payment Date defined above, on any date upon which the City shall have terminated the Development Agreement under Section 4.2(2) thereof or the Developer shall have terminated the Development Agreement under Article V thereof, the date the Tax Increment District is Agenda Page 89 B-2 terminated, or on the date that all principal and interest payable hereunder shall have been paid in full, whichever occurs earliest. The City makes no representation or covenant, expressed or implied, that the Tax Increments will be sufficient to pay, in whole or in part, the amounts which are or may become due and payable hereunder. The City’s payment obligations hereunder shall be further conditioned on the fact that no Event of Default under the Development Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder, but such unpaid amounts shall become payable, without interest accruing in the meantime, if said Event of Default shall thereafter have been cured; and, further, if pursuant to the occurrence of an Event of Default under the Development Agreement the City elects to cancel and rescind the Development Agreement, the City shall have no further debt or obligation under this Note whatsoever. Reference is hereby made to all of the provisions of the Development Agreement, including without limitation Section 3.3 thereof, for a fuller statement of the rights and obligations of the City to pay the principal of this Note, and said provisions are hereby incorporated into this Note as though set out in full herein. This Note is a special, limited revenue obligation and not a general obligation of the City and is payable by the City only from the sources and subject to the qualifications stated or referenced herein. This Note is not a general obligation of the City, and neither the full faith and credit nor the taxing powers of the City are pledged to the payment of the principal of this Note and no property or other asset of the City, save and except the above-referenced Tax Increments, is or shall be a source of payment of the City’s obligations hereunder. This Note is issued by the City in aid of financing a project pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including the Tax Increment Act. This Note may be assigned only with the consent of the City, which consent shall not be unreasonably withheld. In order to assign the Note, the assignee shall surrender the same to the City either in exchange for a new fully registered note or for transfer of this Note on the registration records for the Note maintained by the City. Each permitted assignee shall take this Note subject to the foregoing conditions and subject to all provisions stated or referenced herein. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law; and that this Note, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation thereon. Agenda Page 90 B-3 IN WITNESS WHEREOF, City of Albertville, Minnesota, by its City Council, has caused this Note to be executed by the manual signatures of its Mayor and Administrator and has caused this Note to be dated as of __________________, 20____. ________________________ ________________________ Administrator Mayor DO NOT EXECUTE UNTIL PAID INVOICES OR OTHER EVIDENCE OF PAYMENT FOR CONSTRUCTION OF THE PROJECT ARE GIVEN TO THE CITY - REFER TO SECTION 3.3(1). Agenda Page 91 B-4 CERTIFICATION OF REGISTRATION It is hereby certified that the foregoing Note was registered in the name of Engel Haus, LLC, and that, at the request of the Registered Owner of this Note, the undersigned has this day registered the Note in the name of such Registered Owner, as indicated in the registration blank below, on the books kept by the undersigned for such purposes. NAME AND ADDRESS OF REGISTERED OWNER DATE OF REGISTRATION SIGNATURE OF ADMINISTRATOR Engel Haus, LLC 508 Freeport Avenue NW Elk River, MN 55330 ____________ ___________________ _________________________ ___________________ _________________________ ___________________ _________________________ ___________________ _________________________ Agenda Page 92 C-1 EXHIBIT C COMPLIANCE CERTIFICATE The undersigned Evans Park, Inc, does hereby certify that as of the date of this Certificate and for the previous six (6) months prior to the execution of this Certificate: (1) not less than 20% of the residential units in the project located at 5101 Kassel Avenue NE, in Albertville, MN Minnesota (the "Project") were occupied or available for occupancy by individuals whose income is 50% or less of the Wright County median income, and (2) neither the Developer nor any affiliate or agent is seeking to have the market value for the Development Property reduced or otherwise challenging any payment of any property taxes in connection with the Development Property. Developer acknowledges that in the event it does seek to challenge any payment of property taxes in connection with the Development Property, it must timely notify the City as required by Section 3.5 of the Development Agreement and that the City may suspend payments otherwise due under the TIF Note. Dated this ____ day of _________________, 20___. ENGEL HAUS, LLC By ____________________________________ Its ___________________________________ [Attach income verification required by Section 3.4(2)] Agenda Page 93 Mayor and Council Request for Action October 6, 2025 SUBJECT: PLANNING – WINSLOW CONDITIONAL USE PERMIT RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following for Tanner Winslow at 5053 Kahl Avenue NE (PID 101-081-001120): • Conditional Use Permit MOTION TO: Adopt Resolution No. 2025-41 approving a Conditional Use Permit (CUP) to allow for a 460 square foot detached accessory structure, with conditions. BACKGROUND: The Planning Commission reviewed the request and held a public hearing on the CUP at their September 9, 2025, meeting. One public comment was received regarding the use of the impervious surface shown on the submitted renderings, which was not germane to the conditional use permit. The applicant also provided a statement about their application. The Planning Commission discussed the building design and location of the structure. The Planning Commission questioned if the overhang on the building was included. The applicant clarified the size of the structure and staff noted that the overhang is considered part of the building and must be included. The Planning Commission recommends approval of the application citing consistency with the City’s Comprehensive Plan and zoning codes. The Planning Commission acknowledged the difference between the stated 192 sq. ft. of the structure and recommended the approval as presented, including the overhang. Following the Planning Commission meeting, the applicant provided a total size of 360 sq. ft. for the concept reviewed by the Planning Commission. The applicant noted to staff after the Planning Commission meeting, they were unaware that the overhang was included and had further plans to expand the structure in the future. The applicant has revised the request to include an additional overhang, shown in the attached rendering, for a total of 460 sq. ft. KEY ISSUES: • The CUP would allow for a 460 sq. ft. detached accessory building on a lot zoned R-1A. • An existing garage, 640 sq. ft. attached accessory building, exists on site. • The applicant is allowed to have a 150 sq. ft. detached accessory building by right, and up to a 610 sq. ft. structure based on the areas of accessory buildings on the site. • The site plan shows the structure approximately 8.09 ft. from the south lot line that requires a 10 ft. setback. The applicant has stated that the 10 ft. setback is intended to be met, and a condition has been included to correct the setback. • The applicant states the building materials for the shed to be a green siding. This does not currently match the existing siding on the principal building, but the applicant has stated that the principal building is planned to be resided. A condition is included that documentation of the building materials be submitted, but the City Council may include a condition related to the building materials and the principal building if desired. • The CUP was recommended for approval by staff and the Planning Commission with the terms and conditions established in the staff report. The applicant has revised the Agenda Page 94 Mayor and Council Request for Action – October 6, 2025 Planning - Winslow Conditional Use Permit Page 2 of 2 proposed structure to be larger than presented at the Planning Commission. Staff believes the revised proposal is reasonable as up to a 610 sq. ft. structure could be allowed through the CUP and the increase in size does not change the recommended finding based on the CUP review criteria. POLICY/PRACTICES CONSIDERATIONS: Approval of the CUP is consistent with the City’s long-range land use plan and zoning code. FINANCIAL CONSIDERATIONS: There are no financial considerations relevant to the request. LEGAL CONSIDERATIONS: The City Attorney has not provided any legal consideration for this application. Responsible Person: Jenni Faulkner, Bolton & Menk T.J. Hofer, Bolton & Menk Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: • Revised Proposed Rendering • Emails from Applicant Regarding Proposed Structure Size • Resolution No. 2025-41 Approving CUP for a 460 square ft detached Accessory Building • PC Memo with Attachments Agenda Page 95 Agenda Page 96 1 TJ Hofer From:Tanner Winslow Sent:Thursday, September 11, 2025 1:23 PM To:TJ Hofer Cc:Kris Luedke; Jenni Faulkner; Maeghan Becker Subject:Re: Tuesday, September 9, 2025 Albertville Planning Commission Packet Follow Up Flag:Follow up Flag Status:Flagged *** WARNING: This email is from outside the company. Proceed with Caution*** TJ, Here is the square footage of the floor print. The plan submitted: 360sf The second rendering I sent. 460sf Thank you for your time, and make it a great day, Tanner J. Winslow Operation Manager, SUPER SIDERS MN Lic. No. BC-632296 “Creating Jealous Neighbors Since 1990!” 2x Recipient of the BBB Torch Award for Ethics (2019 & 2024) Agenda Page 97 2 On Sep 10, 2025, at 3:33 PM, TJ Hofer <tj.hofer@bolton-menk.com> wrote: Tanner, Apologies for the misunderstanding. At this point I think modifying the request is up to you. The pros of doing so are that you have the approval and don’t have to come back to amend/request another CUP. The cons are that any time a request changes there is a chance that the Council may want to send it back to Planning Commission, which would put your approval timeline into October, possibly November. My recommendation, if you are not in a rush to begin construction as soon as possible, would be to amend the request and see if Council wants to send it back or if they are willing to approve it as amended. If you want to amend the CUP in the future you have to pay the fees and escrows again and go through the process another time. We could also ask the Council their opinion on the overhang being considered part of the “building.” If they make a different interpretation than staff, then they could move the request forward as presented. Ultimately, I think laying everything out that you want to do and asking the Council how they would like to proceed would be the best course of action. I think there is a good chance they just move it forward. I’m trying to figure out what the size is that we need to put in the resolution. The measurements you have right now are partially on the roof line. Can you give me the “floor print” of the building as a whole? I tried to illustrate the measurements below. <image004.png> Please let me know <image001.png> <image002.png> TJ Hofer (he/him/his) Planner II Bolton & Menk, Inc. Agenda Page 98 3 <image003.png> (612) 271-6984 From: Tanner Winslow Sent: Wednesday, September 10, 2025 10:37 AM To: TJ Hofer <tj.hofer@bolton-menk.com> Cc: Kris Luedke <KrisL@albertvillemn.gov>; Jenni Faulkner <jenni.faulkner@bolton-menk.com> Subject: Re: Tuesday, September 9, 2025 Albertville Planning Commission Packet *** WARNING: This email is from outside the company. Proceed with Caution*** Otherwise, the plan submitted was to have a 10’ overhang on the shorter portion of the structure. This would make the surface area taken up by the roof 360 sf (two 18’ x 10’ roof sections). As there will be a foot overhang around the rest of the structure. Thank you for your time, and make it a great day, Tanner J. Winslow Operation Manager, SUPER SIDERS MN Lic. No. BC-632296 “Creating Jealous Neighbors Since 1990!” 2x Recipient of the BBB Torch Award for Ethics (2019 & 2024) Agenda Page 99 4 On Sep 10, 2025, at 10:30 AM, Tanner Winslow wrote: TJ, I just want to make sure, cause I might want to add on to the structure (probably next year) to have even more overhangs. When I spoke with Maeghan, she didn’t think the overhang counted towards the size, hence why I put 192 SF in the first place. I provided screenshots of what I planned to do for the future of the structure. This would total 502.07 sq. ft., still well within the 610 sq. ft. that the second detached structure can accommodate. Is this something I should have considered? Otherwise, I can accomplish the same thing by constructing individual pavilions, which would not fail under any permitting process; however, it would not provide the uniform and consistent appearance I am looking to achieve with this structure. Thank you for your time, and make it a great day, Tanner J. Winslow Operation Manager, SUPER SIDERS MN Lic. No. BC-632296 “Creating Jealous Neighbors Since 1990!” 2x Recipient of the BBB Torch Award for Ethics (2019 & 2024) <Screenshot 2025-09-10 at 10.21.40 AM.png><Screenshot 2025-09-10 at 10.22.45 AM.png> On Sep 10, 2025, at 10:09 AM, TJ Hofer <tj.hofer@bolton-menk.com> wrote: Tanner, Agenda Page 100 5 I wouldn’t worry about the overhang. It was a misunderstanding/bad measurement on my part and the Planning Commission seemed entirely in support of it. Additionally, as I detailed below, you’re not at risk of exceeding the maximum that could be allowed. The rationale comes from the definition of “Building” and “Structure:” BUILDING: Any structure having a roof and built for the support, shelter, or enclosure of persons, animals, chattels, or movable property of any kind. STRUCTURE: Anything which is built, constructed or erected; an edifice or building of any kind; or any piece of work artificially built up and/or composed of parts joined together in some definite manner, whether temporary or permanent in character. Among other things, "structures" include buildings, manufactured homes, walls, fences, swimming pools, billboards and poster panels. This recently came up as someone was trying to do a detached structure, but they proposed a breezeway between their garage and the “detached” structure. We explored the options of allowing a covered passage way (roof only with no walls between the two) and determined that because of the definition of building, we couldn’t allow that. There are a ton of factors that limit the size of buildings and we essentially have to work through them all to find the lost maximum allowed. I’ve summarized them below (and excluded the factors that aren’t relevant) and highlighted the one that limits the second accessory structure the most. For your property, using county records for information like lot area and principle structure footprint, I believe the detached, second accessory structure could be up to 610 sq. ft. By Right Allowances Limiting Factor Allowable Acc. Str. Sq. Ft. With CUP Limiting Factor Attached Acc. St. Ground Coverage of Dwelling 976 sq. ft. Attached Acc. St. Ground Coverage of Dwelling 2nd Detached Acc. St. 150 sq. ft. 2nd Detached Acc. St. Cumulative area of acc buildings cannot exceed 10% min. lot area (12,500 sq. ft. based on Albertvillas 3 PUD) Maximum Combined Acc. St. Sq. Ft. 1,150 sq. ft. Maximum Combined Acc. St. Sq. Ft. 10% min lot area. Agenda Page 101 6 Since the approval is through a CUP, if the City Council had reason to believe an accessory structure had a creditable potential to create a nuisance, then they could potentially restrict the size below the maximum allowed by the ordinance. Can you let me know what the square footage of the overhang is as proposed? I think because I didn’t have a top-down measurement I wasn’t bale to properly scale my tools which is probably why my measurements were off. Thanks, <image001.png> <image002.png> TJ Hofer (he/him/his) Planner II Bolton & Menk, Inc. <image003.png> (612) 271-6984 From: Tanner Winslow Sent: Tuesday, September 9, 2025 7:28 PM To: TJ Hofer <tj.hofer@bolton-menk.com> Cc: Kris Luedke <KrisL@albertvillemn.gov> Subject: Re: Tuesday, September 9, 2025 Albertville Planning Commission Packet *** WARNING: This email is from outside the company. Proceed with Caution*** Hey TJ, Following up on tonight’s meeting. Can you send me the reasoning/ordinance that the overhang would apply to the structure size. Also. So you know the max size of the structure allowed on my property. I do not want to go over the max size because the overhangs extended too far. If I had to design it to be smaller over hangs, then I can. Agenda Page 102 7 Thank you for your time and make it a great day! Sincerely, Tanner J. Winslow Operation Manager, SUPER SIDERS MN Lic. No. BC-632296 “Creating Jealous Neighbors Since 1990!” Recipient of the BBB Torch Award for Ethics On Sep 5, 2025, at 8:18 AM, TJ Hofer <tj.hofer@bolton-menk.com> wrote: Tanner, Please find the packet for the 9/9 Planning Commission meeting attached. Your item is pages 7 to 22. Thank you, Agenda Page 103 8 <image002.png> <image003.png> <image004.png> <image005.png> <image006.png> <image007.png> <image008.png> TJ Hofer (he/him/his) Planner II Bolton & Menk, Inc. <image009.png> 3507 High Point Drive North Bldg. 1 - Suite E130, Oakdale, Minnesota, 5512 <image010.png> (651) 506-7474 <image011.png> (612) 271-6984 <image012.png> tj.hofer@bolton-menk.com <image013.png> www.Bolton-Menk.com <image014.png> Book time to meet with me From: Kris Luedke <KrisL@albertvillemn.gov> Sent: Thursday, September 4, 2025 3:35 PM To: Kris Luedke <KrisL@albertvillemn.gov> Subject: Tuesday, September 9, 2025 Albertville Planning Commission Packet *** WARNING: This email is from outside the company. Proceed with Caution*** Attached please find the Tuesday, September 9, 2025, Planning Commission Packet. Please let me know if you have any questions. Thank you and have a great weekend, Kris Agenda Page 104 9 Kris Luedke, MMMC, MMC City Clerk Direct: 763-496-6801 Office: 763-497-3384 Krisl@albertvillemn.gov Office hours: Monday-Thursday 7 am to 5:30 pm <image001.jpg> <2025-09-09 Planning Commission Agenda Packet.pdf> Agenda Page 105 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2025-41 RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR A 460 SQUARE FOOT DETACHED ACCESSORY BUILDING AT LOT 12, BLOCK 1, ALBERTVILLAS THIRD ADDITION, WRIGHT COUNTY, MINNESOTA. WHEREAS, Tanner Winslow, the owner, has made a Conditional Use Permit application to allow for the construction of a 460 sq. ft. detached accessory building at 5053 Kahl Avenue Northeast, the property described as follows: Lot 12, Block 1, ALBERTVILLAS THIRD ADDITION, WRIGHT COUNTY, MINNESOTA. WHEREAS, the Planning Commission reviewed the Conditional Use Permit request at a duly noticed Public Hearing on September 9, 2025, and recommended approval of the request; and WHEREAS, the applicant provided updated and revised plans, including the overhang square footage, for the accessory structure after the review and hearing held by the Planning Commission; and WHEREAS, the accessory building is not in conflict with the Comprehensive Plan; and WHEREAS, the proposed accessory building generally meets performance standards of the Albertville Zoning Code; and WHERAS, where the proposed accessory building is not consistent with the Albertville Zoning Code, conditions have been included to address the inconsistencies; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of Albertville, Wright County, Minnesota, hereby approves the conditional use permit for a 460 square foot detached accessory structure at 5053 Kahl Avenue Northeast, based on the following findings: 1. The proposed use is consistent with the official city comprehensive plan and the goals for residential land. 2. The proposed use is and will be compatible with other uses in the R-1A and PUD zoning districts. 3. The proposed use is generally consistent with the performance standards within the Zoning Ordinance. Where the application is not consistent, conditions have been included to address the inconsistencies. a. There is a demonstrated need and potential for a continued use of the structure and the applicant has stated the purpose of the building is storage. Storage of equipment and personal property is a reasonable use on a residential lot. b. The building has an evident reuse or function related to the principal use in providing storage. Agenda Page 106 City of Albertville Resolution No. 2025-41 Meeting of October 6, 2025 Page 2 c. The proposed structure appears compatible with adjacent residential uses and does not present a hazard to public health, safety, and general welfare. d. The required minimum lot size for the R1-A zoning district is 15,000 sq. ft., for a maximum size of accessory structure of 1,500 sq. ft. The principal dwelling is 976 sq. ft. according to Wright County records. The proposed accessory building is 460 sq. ft. and does not exceed either as allowed by the Zoning Code. e. The rear yard is approximately 23,961 sq. ft., and includes a large wetland, for approximately 10,112 sq. ft. of upland area. The proposed 460 sq. ft. building is less than 25% of both of these areas, 5,990 sq. ft. and 2,528 sq. ft., respectively. f. The proposed 460 sq. ft. accessory building and existing 640 sq. ft. garage total an area of 1,100 sq. ft. g. The lot does not share a rear or side lot line with Cedar Creek Golf Course. h. The lot is part of a subdivision approved as a planned unit development that was granted flexibility for lot area, but the lot meets the minimum area requirements for the R-1A district. i. The lot is not a substandard residential lot. j. The proposed accessory building shall be located at least 10 ft. from side lot lines, 10 ft. from rear lot line, five feet from all other buildings and structures on the lot, 30 ft. from wetlands, and shall not encroach on recorded easements. k. The proposed activities shall be in compliance with the provisions of subsection 400.2F. 4. The proposed use will not tend to or actually depreciate the area in which it is proposed. The proposed use is similar to surrounding use and an allowed use in the R-1A zoning district. 5. The proposed use is not expected to have any more demand on public services than the current use of the site. 6. The proposed use shall not have a meaningful impact on traffic. FURTHER BE IT RESOLVED that the following conditions of approval shall be met: 1. The location and layout of structures and facilities on the lot shall be substantially consistent with the plans submitted to the city and reviewed with this request with the exception of where revisions are required with this approval. 2. Before a building permit may be issued the following is required: a. The site plan shall be revised to show the proposed structure setback 10 ft. from the south side lot line and consistent with all other dimensional standards. b. Documentation showing the type and color of exterior building material shall be submitted and shall be the same or similar quality "exterior building material,” meaning exterior finish and color, between the accessory building and the principal building. 3. Any exterior lighting on the site shall be consistent with the standards established in the Zoning Ordinance. 4. Whenever, within one year after granting a conditional use or interim use permit, the use as allowed by the permit shall not have been initiated or utilized, then such permit shall become null and void, unless a petition is filed for an extension of time in which to complete or utilize the use that was approved by the City Council. Agenda Page 107 City of Albertville Resolution No. 2025-41 Meeting of October 6, 2025 Page 3 5. The City may revoke the Conditional Use Permit for the site if all permits and required work to comply with approvals from other local, state, and federal permits is not completed. 6. The applicant shall pay all fees related to the application and enforcement of the CUP. 7. The applicant shall secure any and all applicable and necessary permits required from local, state, and federal entities prior to work on the site. Adopted by the City Council of the City of Albertville this 6th day of October 2025. ___________________________ Jillian Hendrickson, Mayor ATTEST: _____________________________ Kristine A. Luedke, City Clerk Agenda Page 108 Planning Commission Request for Recommendation September 9, 2025 ACTION REQUESTED The Planning Commission is asked to conduct a public hearing and make a recommendation to the City Council on a Conditional Use Permit (CUP) to allow for a detached accessory structure over 150 sq. ft. sales at 5053 Kahl Ave NE. BACKGROUND Tanner Winslow, the owner, has made an application for a CUP that would allow for the construction of a detached accessory structure at 5053 Kahl Ave NE. The Planning Commission is responsible for reviewing the application, holding a public hearing, and making a recommendation to City Council on the CUP. The subject property is located on Kahl Avenue Northeast, just north of the intersection of Kahl Ave NE and Kagan Avenue Northeast. The site is 0.72 acres and contains a single-family dwelling that includes a deck and garage. The parcel is currently zoned R-1A and is a part of the Albertvillas 3 PUD. All properties around the subject property are also zoned R-1A and is a part of the Albertvillas 3 PUD. REVIEW Conditional Use Permit Proposed Use The applicant is proposing to construct a 192 sq. ft. detached accessory building on the subject property. Single-family dwelling uses are allowed accessory uses and structures as permitted in the Zoning Ordinance and Section 1000.4 establishes the standards for accessory structures. The total number of accessory buildings are limited to either one attached garage and one detached accessory building or two detached accessory buildings. The subject property currently has an attached garage that, according to county records, is approximately 640 sq. ft. The Zoning Ordinance restricts second accessory storage buildings to 150 sq. ft., except by conditional use permit. TO: Chair Buhrmann and Members of the Planning Commission FROM: Jenni Faulkner, Consultant Planner T.J. Hofer, Consultant Planner AGENDA ITEM: Public Hearing for Conditional Use Permit for Accessory Structure at 5053 Kahl Ave NE (PID 101-081-001120) Agenda Page 109 Planning Commission Request for Recommendation – September 9, 2025 Planning – Winslow CUP Page 2 of 6 Review Considerations The purpose of a CUP is to provide the city with a reasonable degree of discretion in determining the suitability of certain designated uses upon the general welfare, public health, and safety. In accordance with Section 400 of the Albertville Zoning Code, the Planning Commission and City Council shall consider possible adverse effects of the proposed conditional use. 1. The proposed action has been considered in relation to the specific policies and provisions of and has been found to be consistent with the official city comprehensive plan. The proposed use is consistent with the official city comprehensive plan and the goals for residential land. 2. The proposed use is or will be compatible with present and future uses of the area. The proposed use will be compatible with other uses in the R1-AR-1A and PUD zoning districts. 3. The proposed use conforms with all performance standards contained herein. The proposed use is generally consistent with the performance standards within the Zoning Ordinance. Where the application is not consistent, conditions have been included to address the inconsistencies. a. There is a demonstrated need and potential for a continued use of the structure and the purpose stated. There is a demonstrated need and potential for a continued use of the structure and the applicant has stated the purpose of the building is storage. Storage of equipment and personal property is a reasonable use on a residential lot. b. The building has an evident reuse or function related to the principal use. The building has an evident reuse or function related to the principal use in providing storage. c. Accessory building shall be maintained in a manner that is compatible with the adjacent residential uses and does not present a hazard to public health, safety, and general welfare. The proposed structure appears compatible with adjacent residential uses and does not present a hazard to public health, safety, and general welfare. d. For conditional uses for accessory buildings exceeding one thousand (1,000) square feet in floor area in the R-1A, R-1, R-2, R-3, or R-4 zoning districts, the accessory building shall not exceed the area footprint of the principal building or ten percent (10%) of the minimum lot area of the respective zoning district. Agenda Page 110 Planning Commission Request for Recommendation – September 9, 2025 Planning – Winslow CUP Page 3 of 6 The required minimum lot size for the R1-AR-1A zoning district is 15,000 sq. ft., for a maximum size of 1,500 sq. ft. and the principal dwelling is 976 sq. ft. according to Wright County records. The proposed accessory building is 192 sq. ft. e. For conditional uses for a second accessory building exceeding one hundred fifty (150) square feet in floor area in the R-1A, R-1, R-2, R-3, or R-4 zoning districts, the accessory building shall not occupy more than twenty five percent (25%) of a rear yard and/or the cumulative floor area of all accessory buildings on the lot and shall not exceed ten percent (10%) of the minimum lot area standard of the respective district. The rear yard is approximately 23,961 sq. ft., including a large wetland, with approximately 10,112 sq. ft. of upland area. The proposed 192 sq. ft. building is less than 25% of both areas, 5,990 sq. ft. and 2,528 sq. ft., respectively. The required minimum lot size for the R1-AR-1A zoning district is 15,000 sq. ft., for a maximum size of 1,500 sq. ft. f. For conditional uses exceeding the maximum accumulative floor area of one thousand one hundred fifty (1,150) square feet for accessory buildings in the R-1A, R-1, R-2, R-3, or R-4 zoning districts, the accumulative accessory floor area shall be capped at ten percent (10%) of the minimum lot area requirement of the respective district. The proposed 192 sq. ft. accessory building and existing 640 sq. ft. garage total an area of 832 sq. ft. g. For conditional uses for accessory buildings that exceed the size requirements of this section the use shall not be granted if the lot meets the following conditions: i. The lot shares a rear or side lot line with Cedar Creek Golf Course. The lot does not share a rear or side lot line with Cedar Creek Golf Course. ii. The lot is part of a subdivision approved as a planned unit development and granted flexibility for a reduced lot size. The lot is part of a subdivision approved as a planned unit development that was granted flexibility for lot area, but the lot meets the minimum area requirements for the R1-AR-1A district. iii. Any substandard residential lot that falls below the minimum lot area standard of its respective zoning district. The lot is not a substandard residential lot. h. Any accessory buildings must meet the required accessory building setbacks. The proposed accessory building shall be located at least 10 ft. from side lot lines, Agenda Page 111 Planning Commission Request for Recommendation – September 9, 2025 Planning – Winslow CUP Page 4 of 6 10 ft. from rear lot line, five feet from all other buildings and structures on the lot, 30 ft. from wetlands, and shall not encroach on recorded easements. i. The provisions of subsection 400.2F of this ordinance shall be considered and a determination made that the proposed activities are in compliance with such criteria. The proposed activities shall be in compliance with the provisions of subsection 400.2F. 4. The proposed use will not tend to or actually depreciate the area in which it is proposed. The proposed use will not tend to or actually depreciate the area in which it is proposed. The proposed use is similar to surrounding use and an allowed use in the R-1A zoning district. 5. The proposed use can be accommodated with existing public services and will not overburden the city's service capacity. The proposed use is not expected to have any more demand on public services than the current use of the site. 6. Traffic generated by the proposed use is within capabilities of streets serving the property. The proposed use shall not have a meaningful impact on traffic. Dimensional Standards R1-AR- 1A/PUD Proposed Conditions Meets Standard? Minimum Lot Size (sq. ft.) 15,000/12,500 31,363.2 Meets Lot Width (ft.) 100/85 91.23 Meets Principal Structure Setbacks (ft.) Front 30 30.5 Meets Side (interior) 10 19.75 Meets Rear 25 269.08 Meets Accessory Structure Setbacks (ft.) Front N/A N/A Meets Side (interior) 10 8.09 Condition to be revised. Rear 10 245 Meets Wetland Setback (ft.) 30/20 58.42 Meets Maximum Lot Coverage 25% 3.77% Meets Principal Building Height (ft.) 35 ~18 Meets Accessory Building Height (ft.) 16 7.75 Meets Agenda Page 112 Planning Commission Request for Recommendation – September 9, 2025 Planning – Winslow CUP Page 5 of 6 The submitted survey shows the proposed structure located closer to 10 ft. to the side lot line, but the applicant has indicated that they intend to meet the required 10 ft. setback. A condition has been included to address the setback. Landscaping Landscaping on the subject property will not be altered as a result of the proposed use. Lighting The applicant stated that a light may be added to the structure. Details were not provided related to lighting, and any future lighting shall meet the standards of the Zoning Ordinance, Exterior lighting shall not exceed 0.4 foot-candles as measured at the property line and arranged as to deflect light away from any adjoining residential property or from any public right of way . Light sources shall be hooded and bare light bulbs shall not be permitted in view of adjacent property or public right-of-way. Based on how the proposed accessory structure is oriented on the lot, complying with the required standards should not prevent a light being placed on the proposed structure. A condition has been included to address future lighting. Parking The proposed use has no impact on parking requirements. Building Materials No building materials were provided as part of the submittal. The rendering included within the submittal appears to be finished with grey vertical siding with black doors and roofs, however, the applicant has stated that the proposed structure will be sided with a green siding and that the principal dwelling is planned to be resided with the same material. The Zoning Ordinance requires the same or similar quality "exterior building material,” meaning exterior finish and color, shall be used in the accessory building and in the principal building. A condition has been included to address the building materials. Compliance with Comprehensive Plan The proposed CUP must comply with the Albertville Comprehensive Plan. The property is shown on the Proposed Land Use Plan as Residential. Residential Goal 1 in the Albertville Vision/Comprehensive Plan is to promote maintain and build attractive residential neighborhoods. The proposed use creates an accessory structure that is consistent with the neighborhood aesthetics and provides for storage, potentially reducing the amount of exterior storage on the site. Agenda Page 113 Planning Commission Request for Recommendation – September 9, 2025 Planning – Winslow CUP Page 6 of 6 RECOMMENDATION: It is respectfully requested that Chair Buhrmann and Members of the Planning Commission consider the following: MOTION TO: Recommend approval of the condition use permit to allow for a 192 square foot accessory structure at 5053 Kahl Avenue Northeast (PID 101-081-001120), with the findings established in the staff report and the following conditions: 1. The location and layout of structures and facilities on the lot shall be substantially consistent with the plans submitted to the city and reviewed with this request with the exception of where revisions are required with this approval. 2. Before a building permit may be issued the following is required: a. The site plan shall be revised to show the proposed structure setback 10 ft. from the south side lot line and consistent with all other dimensional standards. b. Documentation showing the type and color of exterior building material shall be submitted and shall be the same or similar quality "exterior building material,” meaning exterior finish and color, between the accessory building and the principal building. 3. Any exterior lighting on the site shall be consistent with the standards established in the Zoning Ordinance. 4. Whenever, within one year after granting a conditional use or interim use permit, the use as allowed by the permit shall not have been initiated or utilized, then such permit shall become null and void, unless a petition is filed for an extension of time in which to complete or utilize the use that was approved by the City Council. 5. The City may revoke the Conditional Use Permit for the site if all permits and required work to comply with approvals from other local, state, and federal permits is not completed. 6. The applicant shall pay all fees related to the application and enforcement of the CUP. 7. The applicant shall secure any and all applicable and necessary permits required from local, state, and federal entities prior to work on the site. Attachments: A. Location Map B. Zoning Map C. Winslow CUP Application D. Winslow CUP Application Materials E. Draft Resolution Agenda Page 114 37 6.2 © Bolton & Menk, Inc - Web GIS 0 Legend Location Map This drawing is neither a legally recorded map nor a survey and is not intended to be used as one. This drawing is a compilation of records, information, and data located in various city, county, and state offices, and other sources affecting the area shown, and is to be used for reference purposes only. The City of Albertville is not responsible for any inaccuracies herein contained. Disclaimer: 9/4/2025 10:51 AM 263 Feet City Limits Centerlines Interstate Highway CSAH Local Road Parcels (07/02/2024) Protected Waters WRCO_2018 Red: Band_1 Green: Band_2 Blue: Band_3 ATTACHMENT A Agenda Page 115 Subject PropertyATTACHMENT BAgenda Page 116 08/12/2025 08/21/2025 09/09/2025 10/06 OR 10/20 2025-009PM 300 1500 101-081-001120001012ALBERT VILLAS 3RD ADDN SAME AS OWNER ATTACHMENT C Agenda Page 117 Agenda Page 118 ATTACHMENT DAgenda Page 119 Agenda Page 120 Agenda Page 121 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2025-XX RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR A 192 SQUARE FOOT DETACHED ACCESSORY BUILDING AT LOT 12, BLOCK 1, ALBERTVILLAS THIRD ADDITION, WRIGHT COUNTY, MINNESOTA. WHEREAS, Tanner Winslow, the owner, has made a Conditional Use Permit application to allow for the construction of a 192 sq. ft. detached accessory building at 5053 Kahl Avenue Northeast, the property described as follows: Lot 12, Block 1, ALBERTVILLAS THIRD ADDITION, WRIGHT COUNTY, MINNESOTA. WHEREAS, the Planning Commission reviewed the Conditional Use Permit request at a duly noticed Public Hearing on September 5, 2025, and recommended approval of the request; and WHEREAS, the accessory building is not in conflict with the Comprehensive Plan; and WHEREAS, the proposed accessory building meets performance standards of the Albertville Zoning Code; and WHERAS, where the proposed accessory building is not consistent with the Albertville Zoning Code, conditions have been included to address the inconsistencies; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of Albertville, Wright County, Minnesota, hereby approves the conditional use permit for a 192 square foot detached accessory structure at 5053 Kahl Avenue Northeast, based on the following findings: 1. The proposed use is consistent with the official city comprehensive plan and the goals for residential land. 2. The proposed use is and will be compatible with other uses in the R-1A and PUD zoning districts. 3. The proposed use is generally consistent with the performance standards within the Zoning Ordinance. Where the application is not consistent, conditions have been included to address the inconsistencies. a. There is a demonstrated need and potential for a continued use of the structure and the applicant has stated the purpose of the building is storage. Storage of equipment and personal property is a reasonable use on a residential lot. b. The building has an evident reuse or function related to the principal use in providing storage. c. The proposed structure appears compatible with adjacent residential uses and does not present a hazard to public health, safety, and general welfare. Agenda Page 122 City of Albertville Resolution No. 2025-XX Meeting of October 6, 2025 Page 2 d. The required minimum lot size for the R-1A zoning district is 15,000 sq. ft., for a maximum size of accessory structure of 1,500 sq. ft. The principal dwelling is 976 sq. ft. according to Wright County records. The proposed accessory building is 192 sq. ft. and does not exceed either as allowed by the Zoning Code. e. The rear yard is approximately 23,961 sq. ft., and includes a large wetland, for approximately 10,112 sq. ft. of upland area. The proposed 192 sq. ft. building is less than 25% of both of these areas, 5,990 sq. ft. and 2,528 sq. ft., respectively. f. The proposed 192 sq. ft. accessory building and existing 640 sq. ft. garage total an area of 832 sq. ft. g. The lot does not share a rear or side lot line with Cedar Creek Golf Course. h. The lot is part of a subdivision approved as a planned unit development that was granted flexibility for lot area, but the lot meets the minimum area requirements for the R-1A district. i. The lot is not a substandard residential lot. j. The proposed accessory building shall be located at least 10 ft. from side lot lines, 10 ft. from rear lot line, five feet from all other buildings and structures on the lot, 30 ft. from wetlands, and shall not encroach on recorded easements. k. The proposed activities shall be in compliance with the provisions of subsection 400.2F. 4. The proposed use will not tend to or actually depreciate the area in which it is proposed. The proposed use is similar to surrounding use and an allowed use in the R-1A zoning district. 5. The proposed use is not expected to have any more demand on public services than the current use of the site. 6. The proposed use shall not have a meaningful impact on traffic. FURTHER BE IT RESOLVED that the following conditions of approval shall be met: 1. The location and layout of structures and facilities on the lot shall be substantially consistent with the plans submitted to the city and reviewed with this request with the exception of where revisions are required with this approval. 2. Before a building permit may be issued the following is required: a. The site plan shall be revised to show the proposed structure setback 10 ft. from the south side lot line and consistent with all other dimensional standards. b. Documentation showing the type and color of exterior building material shall be submitted and shall be the same or similar quality "exterior building material,” meaning exterior finish and color, between the accessory building and the principal building. 3. Any exterior lighting on the site shall be consistent with the standards established in the Zoning Ordinance. 4. Whenever, within one year after granting a conditional use or interim use permit, the use as allowed by the permit shall not have been initiated or utilized, then such permit shall become null and void, unless a petition is filed for an extension of time in which to complete or utilize the use that was approved by the City Council. Agenda Page 123 City of Albertville Resolution No. 2025-XX Meeting of October 6, 2025 Page 3 5. The City may revoke the Conditional Use Permit for the site if all permits and required work to comply with approvals from other local, state, and federal permits is not completed. 6. The applicant shall pay all fees related to the application and enforcement of the CUP. 7. The applicant shall secure any and all applicable and necessary permits required from local, state, and federal entities prior to work on the site. Adopted by the City Council of the City of Albertville this 6th day of October 2025. ___________________________ Jillian Hendrickson, Mayor ATTEST: _____________________________ Kristine A. Luedke, City Clerk Agenda Page 124 Mayor and Council Request for Action October 6, 2025 SUBJECT: PLANNING – AMEND CITY AND ZONING CODE RELATING TO THE STANDARDS AND PERMISSIBILITY OF TEMPORARY OUTDOOR SEASONAL SALES RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following: • Amendment to Title Four Chapter 4 Peddlers, Solicitors, and Transient Merchants and Appendix A: City of Albertville Zoning Code Chapter 200, 1000, 4300, 4350, 4400, and 4500 relating to the standards and permissibility of transient merchants and temporary outdoor seasonal sales MOTION TO: Adopt Ordinance No. 2025-08 amending Title Four Chapter 4 Peddlers, Solicitors, and Transient Merchants and Appendix A: City of Albertville Chapters 200, 1000, 4300, 4350, 4400, and 4500 of the Zoning Code relating to the standards and permissibility of temporary outdoor seasonal sales and Resolution No. 2025-42 allowing for summary publication for the ordinance. BACKGROUND: Staff have identified a standard within the Zoning Ordinance that staff believe is inconsistent with the intent of the City Council and current practices. Temporary outdoor seasonal sales are currently allowed as a permitted use in the B-2, B-2A, B-3, and B-4 zoning districts. Based on the temporary nature of the use and it being directly related to another businesses, staff believe that temporary outdoor seasonal sales are an accessory use. Further, the City has issued temporary seasonal sales for non-agricultural items such as sheds or trailers/recreational vehicles. The Planning Commission reviewed the ordinance amendment to the Zoning Code and held a public hearing at their September 9, 2025, meeting. No public comments were received. The Planning Commission discussed the proposed 14-day limit but ultimately did not recommend an amendment based on the ability to do consecutive periods of 14 days, for a total of 28 days. The Planning Commission recommends approval of the code change citing consistency with the City’s Comprehensive Plan, zoning codes, and economic development goals. In addition to the Zoning Code, Title 4 Business Regulations, Chapter 4 addresses Peddlers, Solicitors, and Transient Merchants. Changes are proposed to this section to be consistent with the proposed changes to the Zoning Code for Temporary Outdoor Seasonal Sales. KEY ISSUES: • The amendments to Title 4 Chapter 4 include references for the Temporary Outdoor Seasonal Sales standards and set limitations on transient merchants operating outside of a building or structure to a term that is consistent with the term proposed in the Zoning Ordinance. Agenda Page 125 Mayor and Council Request for Action – October 6, 2025 Planning – Amendment for Temporary Outdoor Seasonal Sales Page 2 of 2 • The amendment to Chapter 200 Zoning Definitions allows for “other equipment or goods” to be sold and removes the requirements that the use be done by “operators of a legitimate, established business within the appropriate zoning district in the City,” as the standard is subjective and there are operators from outside of the City that have historically established temporary outdoor seasonal sales. • The amendment to Chapter 1000 (Temp. Seasonal Sales within the Zoning Code) reformats the section and reduces the term of temporary outdoor seasonal sales permits from 60 days to 14 days. The amendment also establishes that an IUP may be issued for temporary outdoor seasonal sales permits exceeding 14 days. • The amendments to Chapter 4300, 4350, 4400, and 4500 (Zoning Code Commercial Districts) remove temporary outdoor seasonal sales as a permitted use, add it as an accessory use, and adds temporary outdoor seasonal sales over 14 days as an interim use, to each chapter. POLICY/PRACTICES CONSIDERATIONS: • The proposed ordinance amendment allows additional types of retail as temporary outdoor seasonal sales, but in shorter terms. The City Council may wish to discuss the 14-day term limit. • The proposed ordinance allows temporary outdoor seasonal sales over 14 days through an interim use permit. Interim use permits allow the City Council a great deal of discretion and flexibility when issuing permits including term of permit, termination conditions, and operating conditions. Interim use permits also require an applicant to proceed through the public hearing process and be heard before the Planning Commission and City Council, which significantly extends the timeline for a permit to be issued. The City Council may wish to discuss the approval process for temporary outdoor seasonal sales longer than 14 days. • The change in term length and types of goods may impact reoccurring uses within the City. Staff can reach out to 2024/2025 permit recipients to notify them of the changes to the ordinance. FINANCIAL CONSIDERATIONS: No financial considerations are included in the application. LEGAL CONSIDERATIONS: The City Attorney has reviewed the proposed changes and is in support of amending as drafted. Responsible Person: Jenni Faulkner, Bolton & Menk T.J. Hofer, Bolton & Menk Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: • Ordinance No. 2025-08 Amend City Code Title 4 Chapter 4 Peddlers, Solicitors, and Transient Merchants and Appendix A: Albertville Zoning Ordinances related to Standards and Permissibility of Transient Merchants and Temporary Outdoor Seasonal Sales • Resolution No. 2025-42 Approving Summary Publication of Ordinance 2025-08 • PC Memo with Attachments Agenda Page 126 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO. 2025-08 AN ORDINANCE AMENDING THE ALBERTVILLE CITY CODE TITLE 4 CHAPTER 4 PEDDLERS, SOLICITORS, AND TRANSIENT MERCHANTS AND APPENDIX A: CITY OF ALBERTVILLE ZONING ORDINANCES RELATING TO THE STANDARDS AND PERMISSIBILITY OF TRANSIENT MERCHANTS AND TEMPORARY OUTDOOR SEASONAL SALES WITHIN THE CITY The City Council of the City of Albertville, Minnesota, hereby ordains: Section 1: Title 4 Chapter 4 Peddlers, Solicitors and Transient Merchants Section 4-4-3 Licensing Requirements D. Restrictions On Issuance to Transient Merchants is hereby amended, inserting the following language: “D. Restrictions On Issuance To Transient Merchants: 3. Duration Of Sales: No transient merchant license operating solely within a building or structure shall be issued for more than one hundred eighty (180) days, during which time period sales shall be limited to no more than thirty (30) days. No transient merchant license operating outside of a building or structure shall be issued for more than fourteen (14) days, during which time period sales shall be limited to no more than two consecutive periods of fourteen (14) days for a total of twenty-eight days (28), unless the site has been issued an interim use permit as described in Appendix A: City of Albertville Zoning Ordinances. At the time of the application for the transient merchant license, the applicant shall state the times within the license period to be used by the applicant.” Section 2: Title 4 Chapter 4 Peddlers, Solicitors and Transient Merchants Section 4-4-6 Additional Restrictions for Transient Merchants is hereby amended, inserting the following language: “4-4-6: ADDITIONAL RESTRICTIONS FOR TRANSIENT MERCHANTS: A. Operation On Public Property: It shall be unlawful for any transient merchant to sell or offer for sale any goods, wares, or merchandise on any public lands or public right of way within the City unless such sale is specifically authorized by the City Council. B. Operation On Private Property: No transient merchant shall sell or offer for sale any goods, wares, or merchandise within the City from a stationary location on private property at any location where such sales would not be permitted by the zoning ordinance, or without first obtaining the written consent of the property owner or occupant. The written consent must accompany the license application. C. Space For Off Street Parking And Display Of Merchandise: The space used by the transient merchant, including off street parking in connection therewith, shall not use the space needed for the existing business at the site as set forth in the City’s Zoning Ordinance, and in any case, the merchandise displayed shall not occupy more than one hundred (100) square feet. Agenda Page 127 City of Albertville Ordinance No. 2025-08 Meeting of Octboer 6, 2025 Page 2 D. Overnight Storage: No outdoor overnight storage of transient merchant equipment or merchandise shall be permitted. E. Signs: No signage shall violate the provisions of this code relating to size and number of business signs. F. Outdoor sales. Transient merchants operating outside of a building or structure shall comply with the temporary outdoor seasonal sales standards within Appendix A: City of Albertville Zoning Ordinances.” Section 3: Appendix A: City of Albertville Zoning Ordinances, Chapter 200: Rules and Definitions of the Albertville City Code is hereby amended, inserting the following language: “200.2: DEFINITIONS: The following words and terms, wherever they occur in this ordinance, shall be interpreted as herein defined: TEMPORARY OUTDOOR SEASONAL SALES: The temporary sale of agricultural produce, Christmas trees, flowers, or other equipment or goods. and the like sold and conducted by the operators of a legitimate, established business within the appropriate zoning district in the city. A. City licensed mobile food units and food carts as defined in section 4-4-2 of the city code do not fall within this definition, and are exempt from temporary outdoor seasonal sale requirements as provided in section 1000.22 of this ordinance. B. Peddlers, solicitors, and transient merchants as defined in Title 4 Chapter 4 of the City Code that are exempt from the provision of Chapter 4, as described in Section 4-4-11: Exemptions From Provisions are exempt from temporary outdoor seasonal sale requirements as provided in Section 1000.22 of this ordinance.” Section 4: Appendix A: City of Albertville Zoning Ordinances, Chapter 1000: General Building and Performance Standards of the Albertville City Code is hereby amended, inserting the following language: “1000.22: TEMPORARY OUTDOOR SEASONAL SALES: Temporary outdoor seasonal sales may be permitted in any business zoning district; provided, that the following minimum criteria are complied with: A. A permit application form, fee, as established in section 3-1-3 of the city code. B. A site plan illustrating the location and compliance with the following criteria shall be submitted to the city administrator who is hereby authorized to review and approve permits for temporary outdoor seasonal sales, provided the following criteria are established: 1. The maximum term of operation shall be fourteen (14) sixty (60) consecutive days, with a maximum of two (2) permits per calendar year for a property. 2. An interim use permit may be issued for a maximum term of operations greater than fourteen (14) consecutive days. 3. No portion of the use shall take place within any public right of way or landscaped green strip. Agenda Page 128 City of Albertville Ordinance No. 2025-08 Meeting of Octboer 6, 2025 Page 3 4. Parking and display areas associated with the use shall not distract or interfere with existing business operations or traffic circulation patterns. 5. Display areas and parking spaces shall use those parking lot spaces that are in excess of the minimum required parking for the primary use of that property. 6. The site shall be kept in a neat and orderly manner, and display of items shall be as compact as possible so as to not interfere with existing business, parking or driveway operations. 7. Sales products, trailers, temporary stands, etc., shall be located on an asphalt or concrete surface as approved in the administrative permit. 8. Temporary outdoor seasonal sales uses (with a valid administrative permit) may have one on site temporary sign not to exceed twenty four (24) square feet in area and not more than twelve feet (12') in height 1 . 9. The owner/operator shall have the written permission of the current property owner to locate the use on a specific site. 10. A daily cleanup program shall be presented as part of the administrative permit application. 11. Those temporary outdoor seasonal sales uses that are determined by the city administrator not to be consistent with the intent of the city code or comprehensive plan may be appealed pursuant to the process outlined in Chapter 600 of this ordinance.” Section 5: Appendix A: City of Albertville Zoning Ordinances, Chapter 4300: B-2 Limited Business District of the Albertville City Code is hereby amended, inserting the following language: “4300.2: PERMITTED USES The following are permitted uses in a B-2 district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4300.3: ACCESSORY USES: The following are permitted accessory uses in a B-2 district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4300.5: INTERIM USES: The following are interim uses in a B-2 district, subject to additional requirements set forth in this ordinance: "Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance, exceeding 14 days.” Section 6: Appendix A: City of Albertville Zoning Ordinances, Chapter 4350: B-2A Special Business District of the Albertville City Code is hereby amended, inserting the following language: Agenda Page 129 City of Albertville Ordinance No. 2025-08 Meeting of Octboer 6, 2025 Page 4 “4350.2: PERMITTED USES The following are permitted uses in a B-2A district, subject to additional requirements set forth in this ordinance and except as otherwise provided in section 4350.4 of this chapter: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4350.3: ACCESSORY USES: The following are permitted accessory uses in a B-2A district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4350.5: INTERIM USES: The following are interim uses in a B-2A district, subject to additional requirements set forth in this ordinance: "Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance, exceeding 14 days.” Section 7: Appendix A: City of Albertville Zoning Ordinances, Chapter 4400: B-3 Highway Commercial District of the Albertville City Code is hereby amended, inserting the following language: “4400.2: PERMITTED USES The following are permitted uses in a B-3 district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4400.3: ACCESSORY USES: The following are permitted accessory uses in a B-3 district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4400.5: INTERIM USES: The following are interim uses in a B-3 district, subject to additional requirements set forth in this ordinance: "Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance, exceeding 14 days.” Section 8: Appendix A: City of Albertville Zoning Ordinances, Chapter 4500: B-4 General Business District of the Albertville City Code is hereby amended, inserting the following language: “4500.2: PERMITTED USES The following are permitted uses in a B-4 district, subject to additional requirements set forth in this ordinance: Agenda Page 130 City of Albertville Ordinance No. 2025-08 Meeting of Octboer 6, 2025 Page 5 Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4500.3: ACCESSORY USES: The following are permitted accessory uses in a B-4 district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4500.5: INTERIM USES: The following are interim uses in a B-4 district, subject to additional requirements set forth in this ordinance: "Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance, exceeding 14 days.” Section 9: This amendment shall be in full force and effective upon its passage and publication. Adopted by the City Council of the City of Albertville on this 6th day of October 2025. Jillian Hendrickson, Mayor ATTEST: Kristine A. Luedke, City Clerk Agenda Page 131 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2025-42 RESOLUTION PROVIDING FOR THE SUMMARY PUBLICATION OF ORDINANCE NO. 2025-08, AN ORDINANCE AMENDING THE ALBERTVILLE CITY CODE TITLE 4 CHAPTER 4 PEDDLERS, SOLICITORS, AND TRANSIENT MERCHANTS AND APPENDIX A: CITY OF ALBERTVILLE ZONING ORDINANCES RELATING TO THE STANDARDS AND PERMISSIBILITY OF TRANSIENT MERCHANTS AND TEMPORARY OUTDOOR SEASONAL SALES WITHIN THE CITY WHEREAS, On September 9, 2025, at a Meeting of the Albertville City Council, by majority vote, the City Council adopted Ordinance No. 2025-08 which amends Title 4 Chapter 4 Peddlers, Solicitors, and Transient Merchants and Appendix A: City of Albertville Zoning Code Chapter 200, 1000, 4300, 4350, 4400, and 4500; and WHEREAS, State law requires that all ordinances adopted be published prior to becoming effective; and WHEREAS, the City Council of the City of Albertville has determined that publication of the title and a summary of Ordinance NO. 2025-08 would clearly inform the public of the intent and effect of the Ordinance; and WHEREAS, the City Council of the City of Albertville has reviewed the summary of Ordinance No. 2025-08 attached and incorporated herein as Exhibit A; and WHEREAS, the City Council of the City of Albertville has determined that the text of the summary clearly informs the public of the intent and effect of Ordinance No.2025-08. NOW THEREFORE BE IT RESOLVED, the City Council of the City of Albertville hereby: 1. Approves the text of the summary of Ordinance No. 2025-08 attached as Exhibit A. 2. Directs the City Clerk to post a copy of the entire text of Ordinance No. 2025-08 in all public locations designated by the City Council. 3. Directs the City Clerk to publish the summary in the City’s legal newspaper within ten days. 4. Directs the City Clerk to file the executed Ordinance upon the books and records of the City along with proof of publication. Adopted by the City Council of the City of Albertville this 6th day of October 2025. ___________________________ Jillian Hendrickson, Mayor ATTEST: _____________________________ Kristine A. Luedke, City Clerk Agenda Page 132 City of Albertville Resolution No. 2025-42 Meeting of October 6, 2025 Page 2 Exhibit A Ordinance Summary CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA SUMMARY PUBLICATION OF ORDINANCE NO. 2025-08 AN ORDINANCE AMENDING THE ALBERTVILLE CITY CODE TITLE 4 CHAPTER 4 PEDDLERS, SOLICITORS, AND TRANSIENT MERCHANTS AND APPENDIX A: CITY OF ALBERTVILLE ZONING ORDINANCES RELATING TO THE STANDARDS AND PERMISSIBILITY OF TRANSIENT MERCHANTS AND TEMPORARY OUTDOOR SEASONAL SALES WITHIN THE CITY On October 6, 2025, at a Meeting of the Albertville City Council, by majority vote, the City Council adopted Ordinance No. 2025-08 which amends Title 4 Chapter 4 Peddlers, Solicitors, and Transient Merchants and Appendix A: City of Albertville Zoning Code Chapter 200, 1000, 4350, 4400, and 4500: • Title 4 Chapter 4 amendments include references for the Temporary Outdoor Seasonal Sales standards and set limitations on transient merchants operating outside of a building or structure to a term that is consistent with the term proposed in the Zoning Ordinance. • Chapter 200 amendments include the definition for “Temporary Outdoor Seasonal Sales” to include “other equipment or goods” to be sold and removes the requirements related to types of businesses. • Chapter 1000 amendments include reformatting, reducing the term of temporary outdoor seasonal sales permits from 60 days to 14 days, and allowing temporary outdoor seasonal sales permits exceeding 14 days through an interim use permit. • Chapter 4300, 4350, 4400, and 4500 are amended to remove temporary outdoor seasonal sales as a permitted use, add it as an accessory use, and add temporary outdoor seasonal sales over 14 days as an interim use. A printed copy of the Ordinance is available for inspection by any person during regular office hours at City Hall or by standard or electronic mail. /s/ Kris Luedke, City Clerk Agenda Page 133 Planning Commission Request for Recommendation September 9, 2025 ACTION REQUESTED The Planning Commission is asked to conduct a public hearing and make a recommendation to the City Council on an Ordinance Amendment to the Zoning Ordinance regarding permissibility of temporary outdoor seasonal sales. BACKGROUND Staff have identified a standard within the Zoning Ordinance that staff believes is inconsistent with the intent of the City Council and current practices. Temporary outdoor seasonal sales are defined within the Zoning Ordinance as: TEMPORARY OUTDOOR SEASONAL SALES: The temporary sale of agricultural produce, Christmas trees, flowers and the like sold and conducted by the operators of a legitimate, established business within the appropriate zoning district in the city. City licensed mobile food units and food carts as defined in section 4-4-2 of the city code do not fall within this definition, and are exempt from temporary outdoor seasonal sale requirements as provided in section 1000.22 of this ordinance. Temporary outdoor seasonal sales are currently allowed as a permitted use in the B-2, B-2A, B- 3, and B-4 zoning districts. Based on the temporary nature of the use and it being directly related to another businesses staff believe that temporary outdoor seasonal sales are an accessory use. Further, the city has issued temporary seasonal sales for non-agricultural items such as sheds or trailers/recreational vehicles. ORDINANCE AMENDMENT The following text includes the existing code language (italics), added text (red and underlined), and stricken text (red and struckthrough) as well as staff’s consideration of the proposed changes. Chapter 200: RULES AND DEFINITIONS: “200.2: DEFINITIONS: The following words and terms, wherever they occur in this ordinance, shall be interpreted as herein defined: TEMPORARY OUTDOOR SEASONAL SALES: The temporary sale of agricultural TO: Chair Buhrmann and Members of the Planning Commission FROM: Jenni Faulkner, Consultant Planner T.J. Hofer, Consultant Planner AGENDA ITEM: Public Hearing for Ordinance Amendment Relating to the Regulation of Temporary Sales Agenda Page 134 Planning Commission Request for Recommendation – September 9, 2025 Planning – Ordinance Amendment for Temporary Outdoor Seasonal Sales Page 2 of 5 produce, Christmas trees, flowers, or other equipment or goods and the like sold and conducted by the operators of a legitimate, established business within the appropriate zoning district in the city. City licensed mobile food units and food carts as defined in section 4-4-2 of the city code do not fall within this definition, and are exempt from temporary outdoor seasonal sale requirements as provided in section 1000.22 of this ordinance. There is a historic need to allow both temporary outdoor seasonal sales of products beyond agricultural products and to allow operates that are outside of the city to perform temporary outdoor seasonal sales. Without the term defined, “operators of a legitimate, established business,” has no real impact or enforceability, so staff is recommending the language related to it is struck. Chapter 1000: General Building and Performance Standards “1000.22: TEMPORARY OUTDOOR SEASONAL SALES: Temporary outdoor seasonal sales may be permitted in any business zoning district; provided, that the following minimum criteria are complied with: A. A permit application form, fee, as established in section 3-1-3 of the city code. B. A site plan illustrating the location and compliance with the following criteria shall be submitted to the city administrator who is hereby authorized to review and approve permits for temporary outdoor seasonal sales, provided the following criteria are established: 1. The maximum term of operation shall be fourteen (14) sixty (60) consecutive days, with a maximum of two (2) permits per calendar year for a property. 2. An interim use permit may be issued for a maximum term of operations greater than fourteen (14) consecutive days. 3. No portion of the use shall take place within any public right of way or landscaped green strip. 4. Parking and display areas associated with the use shall not distract or interfere with existing business operations or traffic circulation patterns. 5. Display areas and parking spaces shall use those parking lot spaces that are in excess of the minimum required parking for the primary use of that property. 6. The site shall be kept in a neat and orderly manner, and display of items shall be as compact as possible so as to not interfere with existing business, parking or driveway operations. 7. Sales products, trailers, temporary stands, etc., shall be located on an asphalt or concrete surface as approved in the administrative permit. 8. Temporary outdoor seasonal sales uses (with a valid administrative permit) may have one on site temporary sign not to exceed twenty four (24) square feet in area and not more than twelve feet (12') in height 1 . 9. The owner/operator shall have the written permission of the current property owner to locate the use on a specific site. 10. A daily cleanup program shall be presented as part of the administrative permit application. 11. Those temporary outdoor seasonal sales uses that are determined by the city administrator not to be consistent with the intent of the city code or comprehensive plan may be appealed pursuant to the process outlined in chapter 600 of this ordinance Agenda Page 135 Planning Commission Request for Recommendation – September 9, 2025 Planning – Ordinance Amendment for Temporary Outdoor Seasonal Sales Page 3 of 5 Staff is recommending lowering the consecutive days allowed by right for temporary outdoor seasonal sales, but allowing greater periods of time through an interim use permit (IUPs). IUPs allow the city a large amount of discretion in setting terms and conditions for uses and will allow the city to establish appropriate standards and conditions as needed. Chapter 4300: B-2 LIMITED BUSINESS DISTRICT “4300.2: PERMITTED USES The following are permitted uses in a B-2 district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4300.3: ACCESSORY USES: The following are permitted accessory uses in a B-2 district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4300.5: INTERIM USES: The following are interim uses in a B-2 district, subject to additional requirements set forth in this ordinance: "Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance, exceeding 14 days.” Chapter 4350: B-2 SPECIAL BUSINESS DISTRICT “4350.2: PERMITTED USES The following are permitted uses in a B-2A district, subject to additional requirements set forth in this ordinance and except as otherwise provided in section 4350.4 of this chapter: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4350.3: ACCESSORY USES: The following are permitted accessory uses in a B-2A district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4350.5: INTERIM USES: The following are interim uses in a B-2A district, subject to additional requirements set forth in this ordinance: "Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance, exceeding 14 days.” Agenda Page 136 Planning Commission Request for Recommendation – September 9, 2025 Planning – Ordinance Amendment for Temporary Outdoor Seasonal Sales Page 4 of 5 Chapter 4400: B-3 HIGHWAY COMMERCIAL DISTRICT “4400.2: PERMITTED USES The following are permitted uses in a B-3 district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4400.3: ACCESSORY USES: The following are permitted accessory uses in a B-3 district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4400.5: INTERIM USES: The following are interim uses in a B-3 district, subject to additional requirements set forth in this ordinance: "Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance, exceeding 14 days.” Chapter 4500: B-4 GENERAL BUSINESS DISTRICT “4500.2: PERMITTED USES The following are permitted uses in a B-4 district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4500.3: ACCESSORY USES: The following are permitted accessory uses in a B-4 district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4500.5: INTERIM USES: The following are interim uses in a B-4 district, subject to additional requirements set forth in this ordinance: "Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance, exceeding 14 days.” Agenda Page 137 Planning Commission Request for Recommendation – September 9, 2025 Planning – Ordinance Amendment for Temporary Outdoor Seasonal Sales Page 5 of 5 Review Consideration The Zoning Ordinance states that the Planning Commission shall consider possible adverse effects of the proposed amendment. Its judgment shall be based upon, but not limited to, the following factors: 1. The proposed action has been considered in relation to the specific policies and provisions of and has been found to be consistent with the official city comprehensive plan. 2. The proposed use is or will be compatible with present and future land uses of the area. 3. The proposed use conforms with all performance standards contained herein. 4. The proposed use will not tend to or actually depreciate the area in which it is proposed. 5. The proposed use can be accommodated with existing public services and will not overburden the city's service capacity. 6. Traffic generation by the proposed use is within the capabilities of streets serving the property. Staff believes that the proposed ordinance amendment is consistent with the review considerations and will help clarify standards within the zoning ordinance. Temporary seasonal sales will be considered accessory to a use on the site and meet the regulations of the permit as outlined in Section 1000.22. Changes to the duration and clarification of what may be sold temporarily will assist with limiting land use impacts. Compliance with Comprehensive Plan The Zoning Ordinance must be consistent with the Albertville Comprehensive Plan. The above standards are not directly related to the Comprehensive Plan. RECOMMENDATION: It is respectfully requested that Chair Buhrmann and Members of the Planning Commission consider the following: MOTION TO: Recommend approval of the ordinance amendment to Chapters 200, 1000, 4300, 4350, 4400, and 4500 of the Zoning Ordinance, relating to the permissibility of temporary outdoor seasonal sales. Attachments: A. Zoning Map B. Section 1000.22 of the Zoning Ordinance C. Section 4300.2 and 4300.3 of the Zoning Ordinance D. Section 4350.2 and 4350.3 of the Zoning Ordinance E. Section 4400.2, 4400.3, and 4400.5 of the Zoning Ordinance F. Section 4500.2 and 4500.3 of the Zoning Ordinance G. Draft Ordinance H. Temporary Seasonal Sales Research from Neighboring Cities Agenda Page 138 ATTACHMENT AAgenda Page 139 1000.22: TEMPORARY OUTDOOR SEASONAL SALES: Temporary outdoor seasonal sales may be permitted in any business zoning district; provided, that the following minimum criteria are complied with: A permit application form, fee, as established in section 3-1-3 of the city code, and a site plan illustrating the location and compliance with the following criteria shall be submitted to the city administrator who is hereby authorized to review and approve permits for temporary outdoor seasonal sales, provided the following criteria are established: A. The maximum term of operation shall be sixty (60) consecutive days, with a maximum of two (2) permits per calendar year for a property. B. No portion of the use shall take place within any public right of way or landscaped green strip. C. Parking and display areas associated with the use shall not distract or interfere with existing business operations or traffic circulation patterns. D. Display areas and parking spaces shall use those parking lot spaces that are in excess of the minimum required parking for the primary use of that property. E. The site shall be kept in a neat and orderly manner, and display of items shall be as compact as possible so as to not interfere with existing business, parking or driveway operations. F. Sales products, trailers, temporary stands, etc., shall be located on an asphalt or concrete surface as approved in the administrative permit. G. Temporary outdoor seasonal sales uses (with a valid administrative permit) may have one on site temporary sign not to exceed twenty four (24) square feet in area and not more than twelve feet (12') in height 1 . H. The owner/operator shall have the written permission of the current property owner to locate the use on a specific site. I. A daily cleanup program shall be presented as part of the administrative permit application. J. Those temporary outdoor seasonal sales uses that are determined by the city administrator not to be consistent with the intent of the city code or comprehensive plan may be appealed pursuant to the process outlined in chapter 600 of this ordinance. (Ord. 1988-12, 12-19-1988; amd. Ord. 1999-8, 10-19-1999; Ord. 2010-002, 7-19-2010; Ord. 2017-01, 1-3-2017; Ord. 2024- 05, 10-21-2024) Notes 1 1. See also subsection 10-7-7B of the city code. ATTACHMENT B Agenda Page 140 4300.2: PERMITTED USES: The following are permitted uses in a B-2 district, subject to additional requirements set forth in this ordinance: Bakery goods and baking of goods for retail sales on the premises. Essential services as regulated by chapter 2100 of this ordinance. Government and public related utility buildings and structures. Liquor sales, off sale. Office business - clinical. Office business - general. Personal services. Personal wireless service antennas located upon a public structure, including necessary equipment buildings, as regulated by chapter 2500 of this ordinance. Public parking garage. Retail business. Service business - on site. Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance. Thrift stores/secondhand dealers having a building floor area of two thousand five hundred (2,500) square feet or less with all receipt of goods, processing of goods and disposal of the unusable goods occurring with the principal building or tenant bay. Outdoor receipt of secondhand goods is prohibited. (Ord. 1988-12, 12-19-1988; amd. Ord. 2003-31, 11-3-2003; Ord. 2021-10, 6-21-2021; Ord. 2024-08, 12-2-2024) 4300.3: ACCESSORY USES: The following are permitted accessory uses in a B-2 district, subject to additional requirements set forth in this ordinance: Accessory and secondary use antennas with a single support structure not to exceed seventy feet (70') including radio and television receiving antennas, single satellite dish TVROs two meters (2m) or less in diameter, shortwave radio dispatching antennas, or those necessary for the operation of electronic equipment including radio receivers, federal licensed amateur radio stations and television receivers, as regulated by chapter 2500 of this ordinance. Adult uses - accessory, as regulated by chapter 2800 of this ordinance. Commercial or business buildings and structures for a use accessory to the principal use, but such use shall not exceed thirty percent (30%) of the gross floor space of the principal use. Off street loading as regulated by chapter 1300 of this ordinance. Off street parking as regulated by chapter 1200 of this ordinance, but not including semitrailer trucks. Open or outdoor display of merchandise for sale or rent as an accessory use; provided, that: A. Outdoor display of merchandise connected with the principal use is limited to ten percent (10%) of the gross floor area of the principal building or tenant bay, as applicable. B. The use does not take up parking space as required for conformity to this ordinance. C. The outdoor display area is hard surfaced with bitumen or concrete. D. The applicant demonstrates that pedestrian circulation is not disrupted as a result of the outdoor display area by providing minimum clear passage zone for pedestrians at the perimeter of the outdoor display area which shall be at least four feet (4') without interference from parked motor vehicles, curbs, trash receptacles, or light standards. (Ord. 1988-12, 12- 19-1988; amd. Ord. 2003-31, 11-3-2003) ATTACHMENT C Agenda Page 141 4350.2: PERMITTED USES: The following are permitted uses in a B-2A district, subject to additional requirements set forth in this ordinance and except as otherwise provided in section 4350.4 of this chapter: Animal veterinary clinics (small animal) (with no overnight care), as regulated by chapter 2300 of this ordinance. Bakery goods and baking of goods for retail sales on the premises. Essential services as regulated by chapter 2100 of this ordinance. Government and public related utility buildings and structures. Hospitality business. Liquor sales, off sale. Office business - clinical. Office business - general. Personal services. Personal wireless service antennas located upon a public structure, including necessary equipment buildings, as regulated by chapter 2500 of this ordinance. Recreational businesses. Restaurant. Retail business. Service business - off site. Service business - on site. Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance. Thrift stores/secondhand dealers having a building floor area of two thousand five hundred (2,500) square feet or less with all receipt of goods, processing of goods and disposal of unusable goods occuring with the principal building or tenant bay. Outdoor receipt of secondhand goods is prohibited. (Ord. 1988-12, 12-19-1988; amd. Ord. 2003-32, 11-3-2003; Ord. 2007-05, 5-21-2007; Ord. 2021-10, 6-21-2021; Ord. 2024- 08, 12-2-2024) 4350.3: ACCESSORY USES: The following are permitted accessory uses in a B-2A district, subject to additional requirements set forth in this ordinance: Accessory and secondary use antennas with a single support structure not to exceed seventy feet (70') including radio and television receiving antennas, single satellite dish TVROs two meters (2m) or less in diameter, shortwave radio dispatching antennas, or those necessary for the operation of electronic equipment including radio receivers, federal licensed amateur radio stations and television receivers, as regulated by chapter 2500 of this ordinance. Adult uses - accessory, as regulated by chapter 2800 of this ordinance. Commercial or business buildings and structures for a use accessory to the principal use, provided such use shall not exceed thirty percent (30%) of the gross floor space of the principal use. Off street loading as regulated by chapter 1300 of this ordinance. Off street parking as regulated by chapter 1200 of this ordinance, but not including semitrailer trucks. Open or outdoor display of merchandise for sale or rent as an accessory use; provided, that: A. Outdoor display of merchandise connected with the principal use is limited to ten percent (10%) of the gross floor area of the principal building or tenant bay, as applicable. B. The use does not take up parking space as required for conformity to this ordinance. C. The outdoor display area is surfaced with bitumen. D. The applicant demonstrates that pedestrian circulation is not disrupted as a result of the outdoor display area by providing the following: 1. Outdoor display area shall be segregated from through pedestrian circulation by means of temporary fencing, bollards, ropes, plantings, or other methods. 2. Minimum clear passage zone for pedestrians at the perimeter of the outdoor display area shall be at least five feet (5') without interference from parked motor vehicles, bollards, trees, tree gates, curbs, stairways, trash receptacles, ATTACHMENT D Agenda Page 142 streetlights, parking meters, or the like. (Ord. 1988-12, 12-19-1988; amd. Ord. 2003-32, 11-3-2003) Agenda Page 143 4400.2: PERMITTED USES: The following are permitted uses in a B-3 district, subject to additional requirements set forth in this ordinance: Adult uses - principal, as regulated by chapter 2800 of this ordinance. Animal veterinary clinics with overnight care, as regulated by chapter 2300 of this ordinance. Bakery goods and baking of goods for retail sales on the premises. Essential services, as regulated by chapter 2100 of this ordinance. Government and public utility buildings and structures. Hospitality business. Liquor sales, off sale. Office business - clerical. Office business - general. Personal services. Personal wireless service antennas located upon a public structure, including necessary equipment buildings, as regulated by chapter 2500 of this ordinance. Public parking garage. Recreational business. Restaurant. Retail business. Service business - off site. Service business - on site. Temporary outdoor seasonal sales, as regulated by section 1000.22 of this ordinance. Thrift stores/secondhand dealers having a building floor area of two thousand five hundred (2,500) square feet or less with all receipt of goods, processing of goods and disposal of the unusable goods occurring with the principal building or tenant bay. Outdoor receipt of secondhand goods is prohibited. (Ord. 1988-12, 12-19-1988; amd. Ord. 2003-33, 11-3-2003; Ord. 2007-05, 5-21-2007; Ord. 2021-10, 6-21-2021; Ord. 2024- 08, 12-2-2024) 4400.3: ACCESSORY USES: The following are permitted accessory uses in a B-3 district, subject to additional requirements set forth in this ordinance: Accessory and secondary use antennas with a single support structure not to exceed seventy feet (70') including radio and television receiving antennas, single satellite dish TVROs two meters (2m) or less in diameter, shortwave radio dispatching antennas, or those necessary for the operation of electronic equipment including radio receivers, federal licensed amateur radio stations and television receivers, as regulated by chapter 2500 of this ordinance. Adult uses - accessory, as regulated by chapter 2800 of this ordinance. Commercial or business buildings and structures for a use accessory to the principal use, provided such use shall not exceed thirty percent (30%) of the gross floor space of the principal use. Off street loading, as regulated by chapter 1300 of this ordinance. Off street parking, as regulated by chapter 1200 of this ordinance, but not including semitrailer trucks. Open or outdoor display of merchandise for sale or rent as an accessory use; provided, that: A. Outdoor display of merchandise connected with the principal use is limited to twenty percent (20%) of the gross floor area of the principal building or tenant bay, as applicable. B. The use does not take up parking space as required for conformity to this ordinance. C. The outdoor display area is surfaced with bitumen. D. The applicant demonstrates that pedestrian circulation is not disrupted as a result of the outdoor display area by providing the following: 1. Outdoor display area shall be segregated from through pedestrian circulation by means of temporary fencing, bollards, ropes, plantings, or other methods. ATTACHMENT E Agenda Page 144 2. Minimum clear passage zone for pedestrians at the perimeter of the outdoor display area shall be at least five feet (5') without interference from parked motor vehicles, bollards, trees, tree gates, curbs, stairways, trash receptacles, streetlights, parking meters, or the like. (Ord. 1988-12, 12-19-1988; amd. Ord. 2003-33, 11-3-2003) 4400.5: INTERIM USES: Cannabis Delivery Service. Cannabis delivery services are allowed as an accessory use to a cannabis retail sales establishment or a lower potency hemp retail establishment with an interim use permit, subject to the following standards: A. Must be licensed bv the State of Minnesota as a Cannabis Delivery Service and in compliance with the standards set by the Office of Cannabis Management. B. The use must meet all other B- 3 District performance standards listed in Chapter 4400 of this chapter. C. Fleet vehicle parking will be permitted outside of the principal structure but may not occupy parking, spaces required for employees or customers. D. Fleet vehicle parking must be screened in accordance with Chapter 1000.7 of the Zoning Ordinance. E. Fleet vehicle parking may not occupy any required parking spaces. F. All delivery and loading areas must be screened from view of the public street or adjacent properties. G. Signage. A maximum of two fixed signs, including freestanding and wall signs, is permitted per site. All signage must meet the size and location requirements of Title 10 Chapter 7 of the Code of Ordinances. H. Off-street parking requirements shall be met per Chapter 1200 of this chapter. I. Off-street loading requirements shall be met per Chapter 1300 of this chapter. Cannabis Sales Low Potency Hem Sales Retail. Asa principal or accessory use retail cannabis and low potency hemp sales are allowed with an interim use permit„ subject to the following standards: A. Must be licensed by the State of Minnesota as a Cannabis Retailer and/or Lower Potency Hemp Retailer and in compliance with the standards set by the Office of Cannabis Management. B. Must be registered with the City of Albertville. C. Buffer Required: 1. The City of Albertville shall prohibit the operation of a cannabis business within one thousand feet (1,000') of a school. 2. The City of Albertville shall prohibit the operation of a cannabis business within five hundred feet (500') of a daycare. 3. The City of Albertville shall prohibit the operation of a cannabis business within five hundred feet (500') of a residential treatment facility. 4. The City of Albertville shall prohibit the operation of a cannabis business within five hundred feet (500') of an attraction within a public park that is regularly used by minors, including a playground or athletic field. 5. Pursuant to Minn. Stat. 462.357, subd. 1e nothing in this Section shall prohibit an active cannabis business or a cannabis business seeking registration from continuing operation at the same site if a school daycare, residential treatment facility, or attraction within a public park that is regularly used by minors moves within the minimum buffer zone. D. The use must meet all other B-3 District performance standards listed in Chapter 4400 of this chapter. E. Hours of operation are limited to ten o’clock (10:00) A.M. to nine o’clock (9:00) P.M. F. Signage. All signage must meet the size and location requirements of Title 10. G. Lighting shall meet the requirements of Chapter 1000.10 of this chapter. H. No outdoor storage or display of equipment or merchandise is permitted. Outdoor storage of vehicles associated with the use may be permitted with a Conditional Use Permit issued in accordance with Chapter 4400.4. I. No onsite consumption is permitted. J. Temporary Cannabis events may be permitted administratively pursuant to Title 4-11 for retail locations not in violation of City Code. K. Off-street parking requirements shall be met per Chapter 1200 of this chapter. L. Off-street loading requirements shall be met per Chapter 1300 of this chapter. (Ord. 2024-13, 12-16-2024) Agenda Page 145 4500.2: PERMITTED USES: The following are permitted uses in a B-4 district, subject to additional requirements set forth in this ordinance: Adult uses - principal, as regulated by chapter 2800 of this ordinance. Animal veterinary clinics (with no overnight care), as regulated by chapter 2300 of this ordinance. Bakery goods and baking of goods for retail sales on the premises. Essential services, as regulated by chapter 2100 of this ordinance. Government and public related utility buildings and structures. Hospitality business. Liquor sales, off sale. Office business - clinic. Office business - general. Personal wireless service antennas located upon a public structure, including necessary equipment buildings, as regulated by chapter 2500 of this ordinance. Personnel service. Public parking garages. Recreational business. Restaurant - general. Retail business. Service business - off site. Service business - on site. Tattoo parlors/body piercing. Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance. Thrift stores/secondhand dealers having a building floor area of two thousand five hundred (2,500) square feet or less with all receipt of goods, processing of goods and disposal of the unusable goods occurring with the principal building or tenant bay. Outdoor receipt of secondhand goods is prohibited. (Ord. 1988-12, 12-19-1988; amd. Ord. 2003-34, 11-3-2003; Ord. 2007-05, 5-21-2007; Ord. 2021-10, 6-21-2021; Ord. 2024- 08, 12-2-2024) 4500.3: ACCESSORY USES: The following are permitted accessory uses in a B-4 district, subject to additional requirements set forth in this ordinance: Accessory and secondary use antennas with a single support structure not to exceed seventy feet (70') including radio and television receiving antennas, single satellite dish TVROs two meters (2m) or less in diameter, shortwave radio dispatching antennas, or those necessary for the operation of electronic equipment including radio receivers, federal licensed amateur radio stations and television receivers, as regulated by chapter 2500 of this ordinance. Adult uses - accessory, as regulated by chapter 2800 of this ordinance. Commercial or business buildings and structures for a use accessory to the principal use, provided such use shall not exceed thirty percent (30%) of the gross floor space of the principal use. Off street loading, as regulated by chapter 1300 of this ordinance. Off street parking, as regulated by chapter 1200 of this ordinance, but not including semitrailer trucks. Open or outdoor display of merchandise for sale or rent as an accessory use; provided, that: A. Outdoor display of merchandise connected with the principal use is limited to ten percent (10%) of the gross floor area of the principal building or tenant bay, as applicable. B. The use does not take up parking space as required for conformity to this ordinance. C. The outdoor display area is surfaced with bitumen. D. The applicant demonstrates that pedestrian circulation is not disrupted as a result of the outdoor display area by providing the following: 1. Outdoor display area shall be segregated from through pedestrian circulation by means of temporary fencing, ATTACHMENT F Agenda Page 146 bollards, ropes, plantings, or other methods. 2. Minimum clear passage zone for pedestrians at the perimeter of the outdoor display area shall be at least five feet (5') without interference from parked motor vehicles, bollards, trees, tree gates, curbs, stairways, trash receptacles, streetlights, parking meters, or the like. (Ord. 1988-12, 12-19-1988; amd. Ord. 2003-34, 11-3-2003) Agenda Page 147 Page 1 10/XX/2025 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO. 2025-___ AN ORDINANCE AMENDING THE ALBERTVILLE CITY CODE AND ZONING ORDINANCE RELATING TO THE STANDARDS AND PERMISSIBILITY OF TEMPORARY OUTDOOR SEASONAL SALES WITHIN THE CITY The City Council of the City of Albertville, Minnesota, hereby ordains: Section One: Appendix A: City of Albertville Zoning Ordinances, Chapter 200: Rules and Definitions of the Albertville City Code is hereby amended, inserting the following language: “200.2: DEFINITIONS: The following words and terms, wherever they occur in this ordinance, shall be interpreted as herein defined: TEMPORARY OUTDOOR SEASONAL SALES: The temporary sale of agricultural produce, Christmas trees, flowers, or other equipment or goods and the like sold and conducted by the operators of a legitimate, established business within the appropriate zoning district in the city. City licensed mobile food units and food carts as defined in section 4-4-2 of the city code do not fall within this definition, and are exempt from temporary outdoor seasonal sale requirements as provided in section 1000.22 of this ordinance.” Section Two: Appendix A: City of Albertville Zoning Ordinances, Chapter 1000: General Building and Performance Standards of the Albertville City Code is hereby amended, inserting the following language: “1000.22: TEMPORARY OUTDOOR SEASONAL SALES: Temporary outdoor seasonal sales may be permitted in any business zoning district; provided, that the following minimum criteria are complied with: A. A permit application form, fee, as established in section 3-1-3 of the city code. B. A site plan illustrating the location and compliance with the following criteria shall be submitted to the city administrator who is hereby authorized to review and approve permits for temporary outdoor seasonal sales, provided the following criteria are established: 1. The maximum term of operation shall be fourteen (14) sixty (60) consecutive days, with a maximum of two (2) permits per calendar year for a property. 2. No portion of the use shall take place within any public right of way or landscaped green strip. 3. Parking and display areas associated with the use shall not distract or interfere with existing business operations or traffic circulation patterns. ATTACHMENT G Agenda Page 148 Page 2 10/XX/2025 4. Display areas and parking spaces shall use those parking lot spaces that are in excess of the minimum required parking for the primary use of that property. 5. The site shall be kept in a neat and orderly manner, and display of items shall be as compact as possible so as to not interfere with existing business, parking or driveway operations. 6. Sales products, trailers, temporary stands, etc., shall be located on an asphalt or concrete surface as approved in the administrative permit. 7. Temporary outdoor seasonal sales uses (with a valid administrative permit) may have one on site temporary sign not to exceed twenty four (24) square feet in area and not more than twelve feet (12') in height 1 . 8. The owner/operator shall have the written permission of the current property owner to locate the use on a specific site. 9. A daily cleanup program shall be presented as part of the administrative permit application. 10. Those temporary outdoor seasonal sales uses that are determined by the city administrator not to be consistent with the intent of the city code or comprehensive plan may be appealed pursuant to the process outlined in chapter 600 of this ordinance.” Section Three: Appendix A: City of Albertville Zoning Ordinances, Chapter 4300: B-2 Limited Business District of the Albertville City Code is hereby amended, inserting the following language: “4300.2: PERMITTED USES The following are permitted uses in a B-2 district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4300.3: ACCESSORY USES: The following are permitted accessory uses in a B-2 district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4300.5: INTERIM USES: The following are interim uses in a B-2 district, subject to additional requirements set forth in this ordinance: "Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance, exceeding 14 days.” Agenda Page 149 Page 3 10/XX/2025 Section Four: Appendix A: City of Albertville Zoning Ordinances, Chapter 4350: B-2A Special Business District of the Albertville City Code is hereby amended, inserting the following language: “4350.2: PERMITTED USES The following are permitted uses in a B-2A district, subject to additional requirements set forth in this ordinance and except as otherwise provided in section 4350.4 of this chapter: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4350.3: ACCESSORY USES: The following are permitted accessory uses in a B-2A district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4350.5: INTERIM USES: The following are interim uses in a B-2A district, subject to additional requirements set forth in this ordinance: "Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance, exceeding 14 days .” Section Five: Appendix A: City of Albertville Zoning Ordinances, Chapter 4400: B-3 Highway Commercial District of the Albertville City Code is hereby amended, inserting the following language: “4400.2: PERMITTED USES The following are permitted uses in a B-3 district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4400.3: ACCESSORY USES: The following are permitted accessory uses in a B-3 district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4400.5: INTERIM USES: The following are interim uses in a B-3 district, subject to additional requirements set forth in this ordinance: "Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance, exceeding 14 days.” Agenda Page 150 Page 4 10/XX/2025 Section Six: Appendix A: City of Albertville Zoning Ordinances, Chapter 4500: B-4 General Business District of the Albertville City Code is hereby amended, inserting the following language: “4500.2: PERMITTED USES The following are permitted uses in a B-4 district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4500.3: ACCESSORY USES: The following are permitted accessory uses in a B-4 district, subject to additional requirements set forth in this ordinance: Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance.” “4500.5: INTERIM USES: The following are interim uses in a B-4 district, subject to additional requirements set forth in this ordinance: "Temporary outdoor seasonal sales as regulated by section 1000.22 of this ordinance, exceeding 14 days.” Section Seven: This amendment shall be in full force and effective upon its passage and publication. Agenda Page 151 Page 5 10/XX/2025 Adopted by the City Council of the City of Albertville on this ___th day of October 2025. Jillian Hendrickson, Mayor ATTEST: Kristine A. Luedke, City Clerk Agenda Page 152 St. Michael: Outdoor Temporary Seasonal Sales: A short-term display and/or sale of seasonal products such as the following: Christmas trees, nursery products and horticulture products (fruits, vegetables, fiowers, shrubs and the like). • Interim use permit required • Duration will vary by permit Monticello: Seasonal Sales: No apparent deflnition Farmers Market: An occasional or periodic market held in an open area or in a structure where groups of individual sellers offer for sale to the public such items as fresh produce, seasonal fruits, fresh fiowers, arts and crafts items, and food and beverages (but not to include second-hand goods) dispensed from booths located on-site. Wayside Stand: A temporary structure or vehicle used for the seasonal retail sale of agricultural goods produced by the operator of the wayside stand; the stand being clearly a secondary use of the premises which does not change the character thereof. • Interim use permit required • Seasonal sales: 60 days per permit; 120 days per calendar year • Farmer’s market: 5 months on single site • Wayside stands: No more than 3 days in one site per week Rogers: Seasonal Agricultural Business: A seasonal business not exceeding six months in any calendar year operated on a rural farm as deflned offering for sale to the general public, produce or any derivative thereof, grown or raised on the property. • No permitting process given • Duration of 6 months ATTACHMENT H Agenda Page 153 City Administrator’s Update October 2, 2025 GENERAL ADMINISTRATION Absentee Voting for STMA Levy Election: Absentee voting for the November Election continues through Monday, November 3. Residents can absentee vote at the STMA District Office or through the mail by completing the 2025 Minnesota Absentee Ballot Application and submitting it to Wright County Elections. Voting on Election Day: On November 4, the polling location for the STMA Levy Election is the STMA Middle School West, 11343 50th Street NE. The polls will be open from 7 am to 8 pm. TIF 21 (Medart): At the request of Medart, Inc., included on the consent agenda is an agreement and a resolution to facilitate a name change on the TIF 21 Development Agreement from Medart, Inc. to M67 LP. Both the agreement and resolution were prepared by Taft, the City’s TIF attorneys. Guardian Angels: At the request of Guardian Angels, included on the consent is a resolution calling for a public hearing on November 3 regarding financing for the project. Planning Commission Vacancy: The Planning Commission vacancy has been posted on the City’s website and Facebook page. The City has received two applications of interest for the open seat. Compost Site: The new compost site hours of operation are in use, and the City has hired a Compost attendant. Staff is still working with Xcel to get power to the site and will be looking to purchase a small building for the attendant. Custodian/Building Maintenance Positions: Staff is working to fill this position. Code/Zoning Enforcement: The City is working on several properties regarding zoning ordinance and/or nuisance ordinance violations. Generally, the violations include outdoor storage of vehicles, materials, and/or equipment, and typically include junk accumulation and illegal structures. ENGINEERING/PUBLIC WORKS Main Avenue Reconstruction: The utility work north of the railroad tracks is complete and the Contractor is now building the road between 60th and the railroad tracks. Next week utility work south of the railroad tracks will begin. It is anticipated the watermain and storm sewer work between the railroad and 57th Street will take approximately 2 weeks. Agenda Page 154 City Administrator’s Update Page 2 of 2 October 2, 2025 Central Park Playground and Plaza: The concrete work around the playground will be completed this week. Installation of the play equipment is underway now, and the playground surfacing is scheduled to begin next week. Next week work on the plaza area seat walls will resume. CSAH 18 (Main Ave to CSAH 19): The County is working to complete the traffic study associated with the proposed concept and will be developing construction plans for a potential spring construction start. CSAH 137: The project is underway and the primary focus in 2025 will be the roundabout at Mackenzie. Linwood Park Sport Courts: The Linwood Park tennis and basketball courts opened on September 18. The tennis courts are also striped for pickle ball. City Stormwater Modeling: The City received a $71,848 grant from the MPCA Small Communities Planning Grants for Stormwater, Wastewater, and Community Resilience Program. The funds will be used to update the City’s stormwater model and stormwater management plan. Staff is working with the MPCA to execute the grant agreement and begin work on the project. The total cost of the work proposed by Bolton and Menk is $79,832 and the City match is 10% or $7,984. WWTF Improvements: The project is complete and we are working on closing the project out. Generator Improvements: Work is ongoing at both the Fire Hall and Villa’s lift station and we expect both locations to be completed this fall. Street Capital Improvement Plan: Staff is updating the Street CIP and will present the updated plan early in the year. Agenda Page 155