2026-02-17 City Council Agenda Packet
City of Albertville Council Agenda
Tuesday, February 17, 2026
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 February 2, 2026, regular City Council Meeting minutes as presented.
B. Authorize the Tuesday, February 17, 2026, 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.
C. Accept Accounts Receivable Report.
D. 4th Quarter Budget to Actual
E. 10% Annual Gambling Contributions
F. Approve Payment Estimate No. 4 to Omann Contracting in the amount of $833,147.89
for Main Avenue Improvements.
7. Public Hearing
A. Public Hearing – Outlet Mall East Side Tax Increment Financing Request
• Mayor to open the public hearing
• Motion to close the public hearing
(Motion to adopt Resolution No. 2026-07 establishing Tax Increment Financing District
No. 24 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, etc.)
City of Albertville City Council Agenda
Tuesday, February 17, 2026 Page 2 of 2
B.Building – None
C.City Clerk – None
D.Finance – None
E.Fire – None
F.Planning and Zoning
1.Leuer Concept Review
G.Public Works/Engineering
1.Proposed 2026 City Compost Site Hours
(Motion to approve the amended Albertville Compost site hours as listed in the Staff
Report.)
H.Legal – None
I.Administration – None
10.Announcements and/or Upcoming Meetings
February 23 Joint Power Water Board, 6 pm
Parks Committee, 7 pm
March 2 City Council, 7 pm
March 9 STMA Arena Board, 6 pm
March 10 Planning Commission, 7 pm
March 16 City Council, 7 pm
11.Adjournment
ALBERTVILLE CITY COUNCIL
DRAFT REGULAR MEETING MINUTES February 2, 2026 – 7 pm
Council Chambers
Albertville City Hall
1. Call to Order
Mayor Hendrickson called the meeting to order at 7 pm.
2. Pledge of Allegiance – Roll Call
Present: Mayor Hendrickson, Councilmembers Cocking, Hayden, Olson, and Zagorski.
Staff Present: City Administrator Nafstad, Fire Chief Bullen, Planning Consultant Faulkner, City
Attorney Couri, Finance Director Lannes and City Clerk Luedke.
3. Recognitions – Presentations – Introductions
A. Albertville Fire Department Presentation – 2025 Year in Review
Fire Chief Bullen presented the 2025 call data and said the fire department had received a total of
674 in 2025. He also provided details on the incident statistics by City along with the date and time
frame of the incidents. Chief Bullen reported on the department’s 2025 accomplishments and
reviewed the grants received. He answered questions from Council regarding the review.
B. Albertville Fire Department – 2025 Service Awards
Fire Chief Bullen recognized the following Albertville Firefighters for their years of service:
Firefighter Asfeld (10 years) and Fire Chief Bullen (20 years).
Chief Bullen said the department averaged 62 training hours per member with Firefighter Follett
completing the most at 103 hours. The top volunteer hours were performed by Firefighter Aguirre
with 56.5 hours. The 2025 Top Caller was Firefighter Follett with 374 calls and Firefighter Aguirre
received the 2025 Paul Heinen Above and Beyond Award.
The City Council thanked the Albertville Fire Department for their service to the Community
4. Public Forum
Wright County Commissioner Holland provided an overview of the upcoming 2026 Wright County
Road projects, highlighting those scheduled to occur within the City of Albertville and responded to
questions from Council.
5. Amendments to the Agenda
City Administrator Nafstad requested that the items listed under 9F. Planning and Zoning, and 9H.
Legal be moved to follow the Consent Agenda.
MOTION made by Councilmember Olson, seconded by Councilmember Hayden to approve the
February 2, 2026, agenda as amended. Ayes: Cocking, Hayden, Hendrickson, Olson, and Zagorski.
Nays: None. The motion carried.
Agenda Page 3
City Council Meeting Draft Minutes Page 2
Regular Meeting of February 2, 2026
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 January 20, 2026, regular City Council Meeting minutes as presented.
B. Authorize the Monday, February 2, 2026, 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.
C. Adopt the following Resolutions imposing civil penalties for liquor license violations
according to Albertville City Code section 4-1-15.
• Resolution No. 2026-03 imposing civil penalty for a liquor license violation
occurring on December 26, 2025 at D. Michael B’s located 6550 Lamplight Drive.
• Resolution No. 2026-04 imposing civil penalty for liquor license violations
occurring on December 26, 2025, at Cedar Creek Bar & Grill located 5700 Jason
Avenue NE.
D. Approve renewal of Consumption and Display Permit for the Church of St. Albert’s for
the Parish Center located at 11400 57th Street NE and further subject to receipt of
licensing approval from the State of Minnesota.
MOTION made by Councilmember Cocking, seconded by Councilmember Olson to approve the
February 2, 2026, consent agenda as submitted. Ayes: Cocking, Hayden, Hendrickson, Olson, and
Zagorski. Nays: None. The motion carried.
7. Public Hearing – None
8. Wright County Sheriff’s Office – Updates, reports, etc.
There were no updates from Wright County Sheriff’s Office.
9. Department Business
A. City Council
1. Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board,
FYCC, etc.)
Councilmember Olson reported that the Parks Committee met and set the date Park’s Night and the
grand opening of Central Park for Thursday, May 14, 2026.
B. Building
1. 2025 Year-End Building Permit Review
City Administrator Nafstad presented the staff report and summarized the 2025 Building Permit
Activity report. He also reviewed the rental license information and the number of inspections
conducted in 2025 and responded to questions from Council.
C. City Clerk – None
D. Finance
Agenda Page 4
City Council Meeting Draft Minutes Page 3
Regular Meeting of February 2, 2026
1. Central Park Warming House – Security Cameras, Burglary and Fire Alarm
System
Finance Director Lannes presented the staff and explained the warming house has a burglary and
fire system that was no longer working and a quote was obtained to repair it. She also reported that
the possibility of adding exterior cameras was considered. Director Lannes noted that the Fire Chief
indicated a commercial fire system was required, which the building does not currently have, and
responded to question from Council.
MOTION made by Councilmember Cocking, seconded by Councilmember Olson to authorize the
purchase of security cameras, burglary and fire system plus related equipment for Central Park
warming house in the amount of $14,194.95. Ayes: Cocking, Hayden, Hendrickson, Olson, and
Zagorski. Nays: None. The motion carried.
2. Central Park Light Pole - Security Cameras
MOTION made by Councilmember Cocking, seconded by Councilmember Zagorski to authorize
the purchase of security cameras and related equipment for security cameras at Central Park
roundabout in the amount of $4,490.00. Ayes: Cocking, Hayden, Hendrickson, Olson, and
Zagorski. Nays: None. The motion carried.
E. Fire – None
F. Planning and Zoning
1. Due Pointe Commons Concept Review
Planning Consultant Faulkner presented the staff report on the potential redevelopment of the Outlet
Mall East and explained the proposal would remove four vacant existing buildings and redevelop
the site into ten commercial lots. She reported that Phase One, anticipated in 2026, would include
construction of a car wash, which was the primary driver of the development. Consultant Faulkner
noted the property was subject to significant deed restrictions on allowable businesses uses and
stated the developer was seeking Council feedback on proposed building materials for the carwash.
She reported the site was considered blighted and would require Tax Increment Financing (TIF)
assistance and responded to questions from Council.
The developer, Corey Kampschroer, reported the project would be called Due Point Commons and
stated he was seeking Council’s feedback on the proposal. He explained the carwash would be a
premium product featuring a new concept of building materials and outlined the planned amenities.
Mr. Kampschroer provided additional information on the property’s deed restrictions, stated he
would be open to another building location within the City if available and responded to questions
from Council.
City Attorney Couri answered questions from Council regarding the property’s deed restrictions.
City Administrator Nafstad provided additional information regarding the deed restrictions and the
challenges associated with demolition. He reported the site would not be suitable for housing due to
zoning ordinance requirements as well as DNR and shoreland regulations.
The Council discussed the development concept, the existing deed restrictions, potential options for
the remaining buildings due to the restrictions, and possible alternative locations within the City for
a carwash
Agenda Page 5
City Council Meeting Draft Minutes Page 4
Regular Meeting of February 2, 2026
2. Federated Co-op Zoning Map Amendment, Preliminary Plat and Final Plat
Planning Consultant Faulkner presented the staff report, provided background information on the
project, and stated that Federated had closed on the properties, and was now requesting to rezone
them from Right-A-Way to B3 Highway Commercial and Federated PUD.
MOTION made by Councilmember Cocking, seconded by Councilmember Hayden to adopt
Ordinance No. 2026-01 for Rezoning PID 101-500-012133 from Right-of-Way to Federated Co-
ops PUD/B-3 district, Resolution No. 2026-05 allowing for summary publication for Ordinance
No. 2026-01, and Resolution No. 2026-06 approving the preliminary plat and final plat entitled
Federated Co-ops Albertville, with conditions. Ayes: Cocking, Hayden, Hendrickson, Olson, and
Zagorski. Nays: None. The motion carried.
G. Public Works/Engineering – None
H. Legal
1. Federated Co-op Albertville PUD Developer’s Agreement
City Attorney Couri presented the staff report and explained that the developer's agreement was
mostly a formality since there are no municipal improvements or site improvements, and the park
dedication fees have already been paid. He added that the main purpose of the agreement was to
ensure the developer comes back to work out another easement if access across the railroad tracks,
covered by a 25-year agreement, was no longer available.
MOTION made by Councilmember Hayden, seconded by Councilmember Cocking to approve the
Developer’s Agreement for Federated Co-ops Albertville PUD. Ayes: Cocking, Hayden,
Hendrickson, Olson, and Zagorski. Nays: None. The motion carried.
I. Administration
Mayor Hendrickson reported that the State of the Cities was scheduled for tomorrow, February 3.
Announcements and/or Upcoming Meetings
February 9 STMA Arena Board, 6 pm
February 10 Planning Commission, 7 pm
February 16 City Hall closed in observance of President’s Day
February 17 City Council, 7 pm (Tuesday)
February 23 Joint Power Water Board, 6 pm
Parks Committee, 7 pm
March 2 City Council, 7 pm
10. Adjournment
MOTION made by Councilmember Cocking, second by Councilmember Olson to adjourn the
meeting at 8:33 pm. Ayes: Cocking, Hayden, Hendrickson, Olson, and Zagorski. Nays: None. The
motion carried.
Respectfully submitted,
_____________________________
Kristine A. Luedke, City Clerk
Agenda Page 6
Mayor and Council Request for Action
February 17, 2026
SUBJECT: CONSENT – FINANCE – PAYMENT OF BILLS
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the
following:
MOTION TO: Authorize the Tuesday, February 17, 2026, 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 (highlighted)
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 7
Mayor and Council Communication
February 17, 2026
SUBJECT: CONSENT – FINANCE – ACCOUNTS RECEIVABLE REPORT
ACCOUNTS RECEIVABLE: Total accounts receivable outstanding through February 4, 2026,
is $51,525.24.
The percentage of the total due based on the aging report is as follows:
0-30 days outstanding $ 39,952.32 77.54%
30-60 days outstanding $ 4,726.75 9.17%
60-90 days outstanding $ 49.02 0.10%
Over 90 days outstanding $ 6,797.35 13.19%
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 8
Mayor and Council Communication – February 17, 2026
Consent – Finance – Accounts Receivable Report Page 2 of 2
Vendor Amount Due 0-30 Days 30-60 days 60-90 days 90 days & Over
ALDI 1,171.20$ 9.70$ 1,161.50$
Bogart Pederson/Federated 1,753.27$ 14.52$ 1,738.75$
City of St. Michael 8,153.50$ 8,153.50$
Hockey Finder 3,027.98$ 3,027.98$
MN Reign 2,675.56$ 41.96$ 20.98$ 2,612.62$
Monticello Fire & Rescue 500.48$ 500.48$
NWCRH Girls Varsity Hockey 9,000.00$ 9,000.00$
State of MN - Tax Forfeit 4,272.45$ 59.68$ 28.04$ 4,184.73$
STMA High School Boys Team 16,771.25$ 16,771.25$
STMA United Soccer Club 2,350.00$ 2,350.00$
T & J Construction 875.25$ 7.25$ 868.00$
Winslow, Tanner 974.50$ 16.00$ 958.50$
Total $51,525.44 $39,952.32 $4,726.75 $49.02 $6,797.35
Current 0-30 days $39,952.32 77.54%
30-60 days $4,726.75 9.17%
60-90 days $49.02 0.10%
over 90 day $6,797.35 13.19%
Agenda Page 9
Mayor and Council Communication
February 17, 2025
SUBJECT: CONSENT – FINANCE – 4TH QUARTER BUDGET TO ACTUAL REPORT
– UN-AUDITED
4th QUARTER BUDGET TO ACTUAL: Attached are the 4th Quarter 2025 un-audited
General Fund summaries of revenues and expenditures. Revenues are expected to be 100%.
Expenses are expected to be at 100%.
This summary shows operating revenues are at 107.36% and operating expenses are at 101.62%.
VARIANCES:
Revenue:
• Current Ad Valorem Taxes – Final settlement received in January 2026
• Building Permits – unbudgeted projects Kindercare, Mold Tech and Engle Haus
• Police Aid – received more than expected
• Administrative Fee – Engle Haus Plat
• Zoning & Subdivisions Fees – Unbudgeted developments Kindercare, Mold Tech and
Engle Haus
• Plan Check Fee – Unbudgeted developments Kindercare, Mold Tech and Engle Haus
Expenses:
• General Government – Incident response and investigation and software licenses
• City Attorney – general legal plus unexpected developments along with code
enforcement
• City Engineer – general engineering plus projects – Main Ave, Central Park, wetland
violation
• Economic Development – Property Taxes
• Planning & Zoning - Unbudgeted developments Kindercare, Mold Tech and Engle Haus
Responsible Person: Tina Lannes, Finance Director
Submitted Through: Adam Nafstad, City Administrator-PWD
Attachment:
• 2025 Budget to Actual
Agenda Page 10
Mayor and Council Communication – February 17, 2026
Consent – Finance – 4th Quarter Report Page 2 of 4
2025 Council Update
General Fund Operations
General Fund Revenue: 2025 Budget
2025 Actual
12/31/25
Ytd %
Budget
31010 Current Ad Valorem Taxes $ 2,721,294 $2,712,398 99.67%
32000 Licenses & Permits $ 30,500 $47,392 155.38%
32110 Liquor Licenses $ 30,000 $34,585 115.28%
32150 Sign Permits $ 2,500 $140 5.60%
32210 Building Permits $ 200,000 $378,370 189.18%
33401 LGA Revenue expected $ 261,315 $270,998 103.71%
33405 Police Aid $ 50,000 $71,816 143.63%
33422 Other State Aid Grants $ - $0 0.00%
33423 Municipal Maintenance $ 11,535 $11,535 100.00%
34000 Charges for Services $ 18,000 $4,870 27.05%
34001 Administrative Fee $ 1,500 $10,688 712.53%
34005 Engineering As Built Fee $ 250 $1,050 420.00%
34101 Leases - City Property $ 31,700 $31,560 99.56%
34103 Zoning & Subdivision Fees $ 2,500 $12,100 484.00%
34104 Plan Check Fee $ 65,000 $143,721 221.11%
34107 Title Searches $ 2,500 $3,125 125.00%
34112 Franchise Fee - Electric $ 134,700 $118,951 88.31%
34113 Franchise Fee - Cable $ 50,000 $63,823 127.65%
34114 Franchise Fee - Gas $ 168,000 $205,954 122.59%
34202 Fire Protection Contract Charges $ 714,498 $714,498 100.00%
34780 Rental Fees $ 17,000 $21,351 125.59%
34950 Other Revenues $ 25,000 $14,122 56.49%
34110 Arena $ 16,013 $16,013 100.00%
Total Revenues $ 4,553,805 $4,889,060 107.36%
Agenda Page 11
Mayor and Council Communication – February 17, 2026
Consent – Finance – 4th Quarter Report Page 3 of 4
General Fund Department Expenditures: 2025 Budget
2025 Actual
12/31/25
Ytd %
Budget
41000 General Government $ 80,467 $157,404 195.61%
41100 Council $ 58,128 $57,846 99.52%
41300 Combined Administrator/Engineer $ 208,949 $205,063 98.14%
41400 City Clerk $ 167,890 $167,834 99.97%
41410 Elections $ 27,000 $2,549 9.44%
41500 Finance $ 148,881 $143,418 96.33%
41550 City Assessor $ 50,000 $46,281 92.56%
41600 City Attorney $ 30,000 $41,400 138.00%
41700 City Engineer $ 35,000 $206,243 589.26%
41800 Economic Development $ 5,000 $19,928 398.56%
41910 Planning & Zoning $ 61,507 $89,086 144.84%
41940 City Hall $ 171,882 $135,254 78.69%
42000 Fire Department $ 723,401 $695,615 96.16%
42110 Police $ 1,237,746 $1,204,500 97.31%
42400 Building Inspection $ 317,487 $309,394 97.45%
42700 Animal Control $ 8,000 $7,582 94.78%
43100 Public Works - Streets $ 490,876 $491,574 100.14%
43160 Electric - Street Lights $ 114,000 $102,291 89.73%
45000 Culture & Recreation $ 90,846 $85,715 94.35%
45100 Parks & Recreation $ 526,745 $458,813 87.10%
Total Expenditures $ 4,553,805 $4,627,788 101.62%
Agenda Page 12
Mayor and Council Communication – February 17, 2026
Consent – Finance – 4th Quarter Report Page 4 of 4
2025 Budget 12/31/2025
Ytd %
Budget
102-31010 Capital Levy 2,344,018$ $2,344,018 100.00%
Total Revenues 2,344,018$ $2,344,018 100.00%
2025 Budget 12/31/2025
Ytd %
Budget
102 Capital Expenditures 2,344,018$ $479,252 20.45%
Total Expenditures 2,344,018$ $479,252 20.45%
Capital Reserve Fund Expenditures:
2025 Council Update
Capital Fund
Capital Reserve Fund Revenue:
2025 Council Update
Capital Fund
Agenda Page 13
Mayor and Council Communication
February 17, 2026
SUBJECT: CONSENT – FINANCE – 10% ANNUAL GAMBLING CONTRIBUTION
BALANCE: Total gambling contribution received as of February 11, 2026 is $153,594.55.
The annual projection of funds to be collected is approximately $86,000.
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.
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
Fund 208
10 % Gambling Contributions
Fund
Date Organization Description Deposited Expensed Balance
9/9/2025 Albertville Lions 2025 10% contribution $7,486.60 $107,486.60
10/21/2025 Albertville Lions 2025 10% contribution $6,754.28 $114,240.88
11/3/2025 STMAYHA 2025 10% contribution $5,016.64 $119,257.52
11/10/2025 Albertville Lions 2025 10% contribution $7,210.98 $126,468.50
12/24/2025 Albertville Lions 2025 10% contribution $5,728.15 $132,196.65
1/5/2026 Knights 2025 10% contribution $890.44 $133,087.09
1/28/2026 Albertville Lions 2026 10% contribution $1,878.44 $134,965.53
2/4/2026 Albertville Lions 2025 10% contribution $4,311.85 $139,277.38
2/5/2026 STMAYHA 2025 10% contribution $14,317.17 $153,594.55
Agenda Page 14
Mayor and Council Request for Action
February 17, 2026
SUBJECT: PUBLIC HEARING – OUTLET MALL EAST SIDE TAX INCREMENT
FINANCING REQUEST
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the
following:
MOTION TO: Adopt Resolution No. 2026-07 establishing Tax Increment Financing District
No. 24 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.
BACKGROUND: The City of Albertville proposes to provide tax increment financing
assistance through the establishment of Tax Increment Financing (TIF) District No. 24 (Outlet
Mall East Side Redevelopment) to the Developer, LEP Holdings LLC to assist with the phased
construction and development of approximately 81,653 square feet of commercial-retail space,
new infrastructure and site improvements, and parking to be constructed across what is proposed
to be up to eight parcels.
The TIF District would be established as a “redevelopment district” pursuant to Section 469.174,
subdivision 10 of the TIF Act. The City finds that the property in the TIF District meets the
statutory criteria for a redevelopment district.
KEY ISSUES:
• The TIF District would be established to assist with the phased construction and
development of approximately 81,653 square feet of commercial-retail space, new
infrastructure and site improvements, and parking to be constructed across what is
proposed to be up to eight parcels.
• 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 $2,083,000 of certain eligible costs the Developer will incur
for the redevelopment project, 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.
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.
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.
Agenda Page 15
Mayor and Council Request for Action – February 17, 2026
Public Hearing – Tax Increment Financing Request Page 2 of 2
Responsible Person: Tina Lannes, Finance Director
Submitted Through: Adam Nafstad, City Administrator-PWD
Attachments:
• Northland TIF Plan
• Resolution No. 2026-07
• Development Agreement
Agenda Page 16
DRAFT
CITY OF ALBERTVILLE, MINNESOTA
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING (REDEVELOPMENT)
DISTRICT NO. 24 (OUTLET MALL EAST SIDE REDEVELOPMENT)
WITHIN MUNICIPAL DEVELOPMENT DISTRICT NO. 1
PROPOSED TO BE ADOPTED BY THE CITY COUNCIL
PUBLIC HEARING DATE: ___________, 2026
PLAN APPROVED DATE: ______________, 2026
PLAN CERTIFICATION REQUEST DATE: ____________, 2026
PLAN CERTIFIED DATE: _____________, 2026
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 17
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 .........................................................3
Section 2.01 Statutory Authority ..........................................................................3
Section 2.02 Planned Development .....................................................................3
2.02.1 Development Description ..........................................................................3
Figure 2-1 Development Description Details ..........................................3
2.02.2 City Plans and Development Program ....................................................3
2.02.3 Land Acquisition .........................................................................................3
2.02.4 Development Activities ..............................................................................3
2.02.5 Need for Tax Increment Financing ...........................................................4
Section 2.03 Tax Increment Financing District ...................................................4
2.03.1 Designation ..................................................................................................4
2.03.2 Boundaries of TIF District ..........................................................................4
2.03.3 Type of District ............................................................................................4
Section 2.04 Plan for Use of Tax Increment ........................................................5
2.04.1 Estimated Tax Increment............................................................................5
2.04.2 Public Development Costs .........................................................................6
2.04.3 Estimated Sources and Uses of Funds .....................................................6
Figure 2-2 Estimated Sources and Uses of Tax Increment ....................6
2.04.4 Administrative Costs ..................................................................................7
2.04.5 County Road Costs .....................................................................................7
2.04.6 Bonded Indebtedness .................................................................................7
2.04.7 Election of First Year of Tax Increment and Duration of TIF District ..7
2.04.8 Estimated Impact on Other Taxing Jurisdictions ...................................8
2.04.9 Prior Planned Improvements ....................................................................8
ARTICLE III – ADMINISTERING THE TIF DISTRICT .....................................................8
Section 3.01 Filing and Certification ....................................................................8
Section 3.02 Modifications of the Tax Increment Financing Plan ....................8
Section 3.03 Correcting Redevelopment Conditions ........................................9
Section 3.04 Four-Year Knockdown Rule ...........................................................9
Section 3.05 Pooling and Five-Year Rule .............................................................9
Section 3.06 Financial Reporting and Disclosure Requirements ...................10
Section 3.07 Business Subsidy Compliance ......................................................10
EXHIBITS...........................................................................................................................11
Exhibit I Present Value Analysis ..................................................................11
Exhibit II Projected Tax Increment ................................................................12
Exhibit III Impact on Other Taxing Jurisdictions..........................................13
Exhibit IV Estimated Tax Increment Over Life of District ..........................14
Exhibit V Map of TIF District and Development District ..........................15
Exhibit VI Inspection Report of Property ......................................................16
Agenda Page 18
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 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 (Redevelopment) District No. 24 (Outlet Mall East
Side Redevelopment) (the “TIF District”) within Municipal Development District No. 1 to
assist with the phased construction and development of approximately 81,653 square feet
of commercial-retail space, new infrastructure and site improvements, and parking to be
constructed across what is proposed to be up to eight parcels.
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. “County Auditor” means the County Auditor/Treasurer of the County.
5. “Developer” means the party undertaking construction of the Development in the TIF District,
which is anticipated to be LEP Holdings LLC, its successors or assigns.
6. “Development” means the phased construction and development of approximately 81,653
square feet of commercial-retail space, new infrastructure and site improvements, and
parking to be constructed across what is proposed to be up to eight parcels.
7. “Development District” means Municipal Development District No. 1 within the City, which
was established pursuant to the Development District Act.
8. “Development District Act” means Minnesota Statutes, Sections 469.124 through 469.134,
as amended and supplemented from time to time.
9. “Development Program” means the Development Program for the Development District, as
amended and supplemented from time to time.
10. “Project Area” means the geographic area of the Development District.
11. “Public Development Costs” means the cost of the development activities that will or are
expected to occur within the Project Area or TIF District.
12. “School District” means Independent School District No. 728.
13. “State” means the State of Minnesota.
14. “TIF Act” means Minnesota Statutes, Sections 469.174 through 469.1794, as amended, both
inclusive.
15. “TIF District” means Tax Increment Financing (Redevelopment) District No. 24 (Outlet Mall
East Side Redevelopment).
16. “TIF Plan” means the tax increment financing plan for the TIF District (this document).
Agenda Page 19
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SECTION 1.03 PLAN PREPARATION
This document was prepared for the City by Northland Securities, Inc.
Agenda Page 20
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 3
ARTICLE II - TAX INCREMENT FINANCING PLAN
SECTION 2.01 STATUTORY AUTHORITY
The TIF District and this TIF Plan are established under the authority of the TIF Act.
SECTION 2.02 PLANNED DEVELOPMENT
2.02.1 Development Description
The Developer proposes to undertake the phased construction and development of
approximately 81,653 square feet of commercial-retail space, new infrastructure and site
improvements, and parking to be constructed across what is proposed to be up to eight parcels.
Figure 2-1 below provides information on the estimated building size per lot and estimated
timing for construction commencement and completion, which is subject to vary from the
estimates included in Figure 2-1 prepared solely for planning purposes for the TIF Plan.
Estimated
Lot # Land Use
Estimated
Gross Land
Area (SF)
Estimated
Useable Land
Area (SF)
Estimated
Building Size
(SF)
Estimated
Commence
Construction
of Building
Date
Estimated
Complete
Construction of
Building Date
1
Carwash / Service
Commercial 199,936 161,048 49,153 3/1/2026 12/31/2026
2 Fast Food 61,361 61,361 3,700 1/1/2027 12/31/2027
3 Service Commercial 111,699 83,123 11,400 1/1/2029 12/31/2029
4 Fast Food 29,055 29,055 600 1/1/2027 12/31/2027
5 Service Commercial 49,747 49,747 7,800 1/1/2028 12/31/2028
6 Service Commercial 74,117 50,214 3,000 1/1/2029 12/31/2029
7 Auto Service 24,568 22,866 1,500 1/1/2028 12/31/2028
8 Fast Food 122,296 73,455 4,500 1/1/2028 12/31/2028
672,779 530,869 81,653 Total
Figure 2-1
Development Description Details
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 City finds that
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 have been reviewed by the City
Council and the City Council finds the Development will conform to City land use controls.
2.02.3 Land Acquisition
The Developer will acquire the property within the TIF District.
2.02.4 Development Activities
As of the date of approval of the TIF Plan, the City anticipates that activities proposed in the TIF
Plan will be subject to contracts. The City anticipates entering into a contract with the Developer
to construct the Development and provide tax increment financing assistance to the Developer
to reimburse Public Development Costs incurred by the Developer.
Agenda Page 21
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 4
2.02.5 Need for Tax Increment Financing
In the opinion of the City, the Development would not reasonably be expected to occur solely
through private investment within the foreseeable future and the increased market value of the
site that could reasonably be expected to occur without the use of tax increment financing would
be less than the increase in the market value estimated to result from the 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 and facts supporting this finding include the following:
• The Development requires public financial assistance to offset land and building acquisition
costs to allow for the Developer to proceed with the Development.
• A comparative analysis of estimated market values both with and without establishment of
the TIF District and the use of tax increments has been performed as described above and
is shown in Exhibit I. This analysis indicates that the increase in estimated market value of
the 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.
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.
SECTION 2.03 TAX INCREMENT FINANCING DISTRICT
2.03.1 Designation
The TIF District is designated as Tax Increment Financing (Redevelopment) District No. 24
(Outlet Mall East Side Redevelopment).
2.03.2 Boundaries of TIF District
The boundaries of the TIF District are depicted in Exhibit V. The TIF District includes parcel
101095001010 and the immediate adjacent roads and right-of-way to the parcel.
Parcel 101095001010 is described as follows:
• SECT-36 TWP-121 RANGE-024 OUTLETS AT ALBERTVILLE 2ND ADD LOT-001
BLOCK-001
2.03.3 Type of District
The TIF District is established as a “redevelopment district” pursuant to Section 469.174,
subdivision 10 of the TIF Act. The City finds that the property in the TIF District meets the
statutory criteria for a redevelopment district.
Section 469.174, subdivision 10 (a) (1) of the TIF Act requires two tests for occupied parcels
be met to qualify as a “redevelopment district”: a conditions test and coverage test. For a
“redevelopment district” more than 50% of the buildings, not including outbuildings, must be
found to be structurally substandard to a degree requiring substantial renovation or clearance.
The conditions test for structurally substandard is defined under Section 469.174, subdivision
10(b) of the TIF Act. For purposes of that subdivision, “structurally substandard” means
containing defects in structural elements or a combination of deficiencies in essential utilities
and facilities, light and ventilation, fire protection including adequate egress, layout and
condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient
total significance to justify substantial renovation or clearance.”
Buildings are not eligible to be considered structurally substandard unless they meet certain
additional criteria, as set forth in Section 469.174, subdivision 10(c) of the TIF Act. A building
is not structurally substandard if it is in compliance with the building code applicable to new
Agenda Page 22
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 5
buildings or could be modified to satisfy the building code at a cost of less than 15% of the
cost of constructing a new structure of the same square footage and type on the site. The
municipality may find that a building is not disqualified as structurally substandard under the
preceding sentence on the basis of reasonably available evidence, such as the size, type, and
age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar
reliable evidence. Items of evidence that support such a conclusion that the building is not
disqualified include recent fire or police inspections, on-site property tax appraisals or housing
inspections, exterior evidence of deterioration, or other similar reliable evidence.
Furthermore, parcels consisting of 70% of the area of the district must be occupied by buildings,
streets, utilities, or paved or gravel parking lots to meet the required coverage test. The
coverage required by the parcel to be considered occupied is defined under Section 469.174,
subdivision 10(e) of the TIF Act. For purposes of such subdivision, a parcel is not occupied by
buildings, streets, utilities, or paved or gravel parking lots unless 15% of the area of the parcel
contains building, streets, utilities, or paved or gravel parking lots.
As summarized in the table below, 100% of the area of the TIF District is occupied by improved
parcels, and 100% of the buildings within the TIF District are found to be substandard. The
substandard buildings are reasonably distributed.
The detailed results of the building inspection and analysis performed by LHB, Inc. is contained
in the “Report of Inspection Procedures and Results for Determining Qualifications of a Tax
Increment Financing District” report from LHB, Inc. dated February 26, 2024 (the “Inspection
Report”). The Inspection Report is included in Exhibit V of the TIF Plan. In summary the
findings are as follows:
Number of Parcels .................................................................................................1
Site Area Included (square feet) .................................................................656,449
Area of Improved Parcels (square feet) ......................................................656,449
Percent of Area Improved ...............................................................................100%
Total Number of Buildings within Parcel(s) ............................................................4
Number of Buildings found Substandard ...............................................................4
Percent of Buildings found Substandard ........................................................100%
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 is
$389,806. This amount is estimated based on the most recent published estimated market
value of $4,490,300 for Parcel 101095001010 with tax capacity value calculated for commercial
property.
The total tax capacity value of the property after Development (for taxes payable in 2028) is
estimated to be $196,612. This amount is based on a total estimated taxable market value of
$9,830,600 for taxes payable in 2028, with property classified as commercial. The estimated
difference between the total tax capacity value and the original net tax capacity value is the
captured tax capacity value in the amount of $106,806 for the creation of tax increment for tax
collection year 2028.
The total local tax rate is estimated at 103.67% based on the tax rates for taxes payable in
2025. The TIF Plan assumes that this rate will be set 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
Agenda Page 23
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DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 6
County Auditor shall certify the original local tax rate that applies to the TIF District. 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 life of the TIF District.
Under these assumptions, the estimated annual tax increment will be $110,327 for tax collection
year 2028, after deducting for the State Auditor’s fee (0.36% of the captured tax increments).
The actual tax increment will vary according to the certified original tax capacity value and
original tax rate, the actual property value produced by the Development and the changes in
property value and State tax policy over the life of the TIF District.
It is the intent of the City to retain 100% of the captured tax capacity value for the duration of the
TIF district. Exhibit II contains the projected tax increment over the duration of the TIF District.
The annual tax increment to be generated from the TIF District is expected to increase over the
duration of the TIF District as a result of anticipated phased development of the property within
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 means for verifying Public Development Costs incurred by the
Developer that will be eligible for reimbursement and the means of disbursing tax increments
collected by the City. The City plans to use tax increment to pay financing costs. The interest
rate payable on bonds issued will be set pursuant to approving resolutions and/or contracts.
2.04.3 Estimated Sources and Uses of Funds
The estimated sources of revenue, along with the estimated Public Development Costs of
the TIF District, are itemized in Figure 2-2. Such costs are eligible for reimbursement from
tax increments, and other listed sources of revenue from the TIF District. The City may
administratively adjust the amount of any of the Public Development Cost line item listed in
Figure 2-1, so long as the total estimated tax increment project costs amount, not including
financing costs, is not increased.
Total
Estimated Tax Increment Revenues (from tax increment
generated by the district)
Tax increment revenues distributed from the county 3,643,074
Interest and investment earnings 10,000
Total Estimated Tax Increment Revenues 3,653,074
Estimated Project/Financing Costs (to be paid or financed with
tax increment)
Project costs
Land/building acquisition 2,083,886
Site improvements/preparation costs -
Utilities -
Other qualifying improvements -
Administrative costs 231,543
Estimated Tax Increment Project Costs 2,315,429
Estimated financing costs
Interest expense 1,337,645
Total Estimated Project/Financing Costs to be Paid from Tax
Increment
3,653,074
Estimated Financing
Total amount of bonds to be issued 2,315,429
Estimated Source and Use of Tax Increment
Figure 2.2
Agenda Page 24
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
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2.04.4 Administrative Costs
The City plans to use tax increment revenues to pay for administrative expenses for the TIF
District. The use of tax increment revenues to pay administrative expenses will not exceed the
maximum amount of 10% of tax increment revenues pursuant to the TIF Act. The City may use
these monies to pay for and reimburse itself for costs of administering the TIF District as allowed
by the TIF Act. The estimated amount of tax increment revenue planned to pay administrative
expense is shown in Figure 2-1 on page 6. Anticipated administrative expenses of the TIF
District include annual audit of the fund for the TIF District, preparation of annual reporting, legal
publication of annual report, and administration of the development agreement.
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.
2.04.6 Bonded Indebtedness
The total not to exceed amount of bonds estimated to be issued is shown in Figure 2-2 on page
6. The City will not issue any general obligation bonded indebtedness as a result of the TIF
Plan.
Pursuant to Section 469.178, subdivision 7 of the TIF Act, the City may advance or loan money
to finance expenditures under Section 469.176, subdivision 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,
subdivision 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 Election of First Year of Tax Increment and Duration of TIF District
Pursuant to Section 469.175, subdivision 1 of the TIF Act, the City elects 2028 to be the first
year to receive increment. The duration to collect and spend tax increments on eligible purposes
is set at fourteen (14) years after the date of receipt of the first tax increment or fifteen (15)
years of tax increment collection. The estimated date for receipt of the first tax increment is July
1, 2028, and the decertification date is December 31, 2042.
Agenda Page 25
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
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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.
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, the City will submit a copy of the TIF Plan to the Minnesota
Department of Revenue and the Office of the State Auditor.
2. The City will 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 will
submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the
TIF Plan, and a listing of any prior planned improvements.
3. The City will send the County Assessor any assessment agreement establishing the
minimum market value of land and improvements within the TIF District and shall request
that the County Assessor review and certify the assessment agreement as reasonable.
The City does not plan to enter into an assessment agreement in connection with the
Development.
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 current State law,
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 Public Development Costs, including administrative costs of
the City.
Agenda Page 26
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 9
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 (A) (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 (B) the City agrees
that the TIF District’s original net tax capacity will be reduced by no more than the current net
tax capacity of the parcels eliminated.
The City must notify the County Auditor of any 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 CORRECTING REDEVELOPMENT CONDITIONS
Section 469.176, subdivision 4j of the TIF Act requires that at least 90% of the revenues derived
from tax increments from the TIF District be used to finance the cost of correcting conditions that
allow designation of the TIF District as a redevelopment district. These costs include, but are not
limited to, acquiring properties containing structurally substandard buildings or improvements
or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to
provide a site of sufficient size to permit development, demolition and rehabilitation of structures,
clearing of the land, the removal of hazardous substances or remediation necessary for the
development of the land, and installation of utilities, roads, sidewalks, and parking facilities for
the site. The allocated administrative expenses of the City, including the cost of preparation of
the development action response plan, may be included in the qualifying costs.
SECTION 3.04 FOUR-YEAR KNOCKDOWN RULE
The provision of the TIF Act referred to as the Four-Year Knockdown Rule requires development
activity to take place on each parcel within a tax increment financing district within four years
from the date of certification of the original net tax capacity of such tax increment financing
district. If development activity on a parcel has not begun within the required time frame, no
additional tax increment may be collected from that parcel and its value must be excluded from
the district’s original net tax capacity.
Development activity includes demolition, rehabilitation, renovation or site improvement,
including a qualified improvement of an adjacent street, on a parcel located within the TIF
District. If no development activity has occurred within four years from the date of certification
then that parcel shall be excluded from the TIF District and the original net tax capacity shall
be adjusted accordingly. The City must submit to the County Auditor, by February 1 of the fifth
year, evidence that the required activity has taken place for each parcel in the TIF District.
If a parcel is excluded from the TIF District and the City or owner of the parcel subsequently
commences any of the above activities, the City shall recertify to the County Auditor that such
activity has commenced and the parcel shall once again be included in the TIF District. The
County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the
Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF
District.
SECTION 3.05 POOLING AND FIVE-YEAR RULE
An amount equal to at least 75% of the total revenue derived from tax increments paid by
properties in the TIF District must be expended on activities in the TIF District or to pay bonds,
to the extent that the proceeds of the bonds were used to finance activities in the TIF District
or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25%
Agenda Page 27
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 10
of the total revenue derived from tax increments paid by properties in the TIF District may be
expended, through a development fund or otherwise, on activities outside of the TIF District but
within the defined geographic area of the Project Area except to pay, or secure payment of, debt
service on credit enhanced bonds.
Revenue derived from tax increments paid by properties in the TIF District are considered to
have been “spent” within the TIF District if such amounts are:
• actually paid to a third party for activities performed within the TIF District within five years
after certification of the district;
• used to pay bonds that were issued and sold to a third party, the proceeds of which are
reasonably expected on the date of issuance to be spent within the later of the five-year
period or a reasonable temporary period or are deposited in a reasonably required reserve
or replacement fund.
• used to make payments or reimbursements to a third party under binding contracts for
activities performed within the TIF District, which were entered into within five years after
certification of the district; or
• used to reimburse a party for payment of eligible costs (including interest) incurred within
five years from certification of the district.
It is anticipated that all revenue derived from tax increments paid by properties in the TIF District
will be spent or obligated within the first five years after certification of the TIF District and spent
on Public Development Costs within the boundaries of the TIF District.
SECTION 3.06 FINANCIAL REPORTING AND DISCLOSURE REQUIREMENTS
The City will comply with the annual reporting requirements of the TIF Act pursuant to the
guidelines of the Office of the State Auditor. Under current law, the City must prepare and
submit a report on the TIF District on or before August 1 of each year. The City must also
annually publish in a newspaper of general circulation in the City an annual statement for the
TIF District, in the format as prescribed by the Office of the State Auditor.
The reporting and disclosure requirements outlined in this section begin with the year a tax
increment financing district is certified, and shall end in the year in which both the 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 Auditors Office,
may result in suspension of distribution of tax increments.
SECTION 3.07 BUSINESS SUBSIDY COMPLIANCE
The City will comply with the business subsidy requirements specified in Minnesota Statutes,
Sections 116J.993 to 116J.995, as amended.
Agenda Page 28
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
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Minnesota Statutes 469.175(3)(2)
1 Estimated Future Market Value w/ Tax Increment Financing 17,897,300 1
2 Payable 2025 Market Value 4,490,300
3 Market Value Increase (1-2)13,407,000
4 Present Value of Future Tax Increments 2,315,429
5 Market Value Increase Less PV of Tax Increments 11,091,571
6 Estimated Future Market Value w/o Tax Increment Financing 4,715,769 1
7 Payable 2025 Market Value 4,490,300
8 Market Value Increase (6-7)225,469
9 Increase in MV From TIF 10,866,102 2
1 Assume 0.35% annual appreciation over 15 year life of district.
2
Exhibit I
City of Albertville
Statutory compliance achieved if increase in market value from TIF (Line 9) is
greater than or equal to zero.
Present Value Analysis As Required By Statute
Tax Increment Financing District No. 24
Outlet Mall East Side Redevelopment
Agenda Page 29
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 12
1 2028 9,830,600 49,153 196,612 89,806 106,806 103.67% 110,327 100,771
2 2029 9,655,269 53,453 193,105 89,806 103,299 103.67% 106,704 193,537
3 2030 13,519,995 67,253 270,400 89,806 180,594 103.67% 186,548 347,901
4 2031 17,221,452 81,653 344,429 89,806 254,623 103.67% 263,018 555,056
5 2032 17,281,823 81,653 345,636 89,806 255,830 103.67% 264,264 753,163
6 2033 17,342,406 81,653 346,848 89,806 257,042 103.67% 265,516 942,617
7 2034 17,403,201 81,653 348,064 89,806 258,258 103.67% 266,772 1,123,796
8 2035 17,464,210 81,653 349,284 89,806 259,478 103.67% 268,033 1,297,059
9 2036 17,525,432 81,653 350,509 89,806 260,703 103.67% 269,297 1,462,751
10 2037 17,586,869 81,653 351,737 89,806 261,931 103.67% 270,566 1,621,203
11 2038 17,648,521 81,653 352,970 89,806 263,164 103.67% 271,840 1,772,730
12 2039 17,710,390 81,653 354,208 89,806 264,402 103.67% 273,118 1,917,633
13 2040 17,772,475 81,653 355,450 89,806 265,644 103.67% 274,402 2,056,202
14 2041 17,834,778 81,653 356,696 89,806 266,890 103.67% 275,688 2,188,712
15 2042 17,897,300 81,653 357,946 89,806 268,140 103.67% 276,980 2,315,429
TOTAL = 3,643,074 2,315,429
Key Assumptions:
1 Taxable market value (TMV) annual growth assumption equals approximately 0.35%.
2
3 Election for captured tax capacity is 100%.
4
5
6 TIF from District is after deduction of State Auditor Fee (0.36%).
7 Present Value (PV) is estimated based on 5.0% rate and dated date 12/31/2026.
8
9 Amounts are rounded which may result in small (not material) differences between line items and total.
Information in Exhibit II are estimates for planning purposes only, actual amounts will vary, all pursuant
to the TIF Plan for the TIF District.
Sq. Ft. of
Building
Subject
to TMV
TIF
District
Year
Taxes
Payable
Year
Tax
Capacity
Original
Base Tax
Capacity
Taxable
Market
Value
C
I
T
a
x
C
PV
Available
TIF
Captured
Tax
Capacity
for TIF
Base Tax Capacity estimated for one parcel within TIF District and TMV for Pay 2026 = $4,490,300 (for
PID101095001010).
Original Tax Capacity Rate for calculation of TIF from District is estimated based on preliminary tax
payable Year 2025 rate of 103.67%.
TMV is based on Developer's plans for phased development, including estimated building SF by year,
and assumptions by consultant to City as to estimated TMV per SF.
Exhibit II
City of Albertville
Tax Increment Financing District No. 24 (Redevelopment)
Outlet Mall East Side Redevelopment
Projected Tax Increment Financing (TIF) Cash Flow
Original
Tax Rate
TIF from
District
Agenda Page 30
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 13
Estimated Annual Captured Tax Capacity (Full Development)$268,140
Payable 2025 Local Tax Rate 103.670%
Estimated Annual Tax Increment $277,981
Net Tax
Capacity
(NTC)
Captured
Tax
Capacity
Percent of
Total NTC
City of Albertville 14,135,020 268,140 1.90%
Wright County 286,412,486 268,140 0.09%
ISD 728 43,494,038 268,140 0.62%
Net Tax
Capacity
(NTC)
% of Total
Tax
Increment
Share
Added
Local Tax
Rate
City of Albertville 42.861% 41.344%114,927 0.813%
Wright County 35.561% 34.302% 95,354 0.033%
ISD 728 25.248% 24.354% 67,700 0.156%
Other 0.000% 0.000%0
Totals 103.670% 100.000%277,981
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. 24
Outlet Mall East Side Redevelopment
Dollar Impact of Affected Taxing Jurisdictions
Agenda Page 31
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 14
Based on Pay 2025 Tax Rate = 103.670%42.861% 35.561% 25.248% 0.000%
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 Increments Share Share Share Share
1 2028 9,830,600 196,612 89,806 106,806 110,726 45,778 37,981 26,966 -
2 2029 9,655,269 193,105 89,806 103,299 107,090 44,275 36,734 26,081 -
3 2030 13,519,995 270,400 89,806 180,594 187,222 77,404 64,221 45,596 -
4 2031 17,221,452 344,429 89,806 254,623 263,968 109,134 90,547 64,287 -
5 2032 17,281,823 345,636 89,806 255,830 265,219 109,651 90,976 64,592 -
6 2033 17,342,406 346,848 89,806 257,042 266,475 110,171 91,407 64,898 -
7 2034 17,403,201 348,064 89,806 258,258 267,736 110,692 91,840 65,205 -
8 2035 17,464,210 349,284 89,806 259,478 269,001 111,215 92,273 65,513 -
9 2036 17,525,432 350,509 89,806 260,703 270,270 111,740 92,709 65,822 -
Total 3,656,236 1,511,621 1,254,171 890,444 -
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 (Redevelopment) District No. 24
Outlet Mall East Side Redevelopment
Estimated Tax Increments Over Maximum Life of District
Agenda Page 32
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 15
Exhibit V
Map of Boundaries of Tax Increment Financing District No. 24
and Municipal Development District No. 1
Boundaries of Municipal District No. 1 are Coterminous with Municipal Boundaries of the City
Tax IncrementFinancing District No. Albertville City LimitsMunicipal DevelopmentDistrict No. 100.50.25MilesSource: Wright County, Norated ConsultCreated Development District No. 1Tax IncrementTTFinancing District No. 224TIF District No. 24
Agenda Page 33
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
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REPORT OF INSPECTION PROCEDURES AND RESULTS
FOR
DETERMINING QUALIFICATIONS
OF A
TAX INCREMENT FINANCING DISTRICT
OUTLET MALL
REDEVELOPMENT TIF DISTRICT
Prepared for
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
February 26, 2024
Exhibit VI
Inspection Report of Property
Inspection ReportAgenda Page 34
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Table of Contents
Part 1: Executive Summary ...................................................................................................................................... 2
Purpose of the Evaluation ........................................................................................................................................................ 2
Scope of Work ......................................................................................................................................................................... 2
Conclusion ............................................................................................................................................................................... 3
Part 2: Minnesota Statute 469.174, Subdivision 10 Requirements ....................................................................... 3
Interior Inspection .................................................................................................................................................................... 3
Exterior Inspection and Other Means ...................................................................................................................................... 3
Documentation ......................................................................................................................................................................... 3
Qualification Requirements ...................................................................................................................................................... 3
1. Coverage Test .................................................................................................................................................................... 3
2. Condition of Buildings Test ................................................................................................................................................. 4
3. Distribution of Substandard Buildings ................................................................................................................................. 5
Part 3: Procedures Followed .................................................................................................................................... 5
Part 4: Findings ......................................................................................................................................................... 5
1. Coverage Test ..................................................................................................................................................................... 5
2. Condition of Building Test .................................................................................................................................................... 6
3. Distribution of Substandard Structures ................................................................................................................................ 8
Part 5: Team Credentials .......................................................................................................................................... 9
Appendices ................................................................................................................................................................ 9
APPENDIX A Property Condition Assessment Summary Sheet
APPENDIX B Building Code, Condition Deficiency and Context Analysis Reports
APPENDIX C Building Replacement Cost Reports
Code Deficiency Cost Reports
Photographs
Inspection ReportAgenda Page 35
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Part 1: Executive Summary
Purpose of the Evaluation
LHB was hired by the City of Albertville to inspect and evaluate the properties within a Tax Increment Financing
Redevelopment District (“TIF District”) proposed to be established by the City. The proposed TIF District is located at 6500
Labeaux Avenue NE, just north of Interstate Highway 94 (Diagram 1). The purpose of LHB’s work is to determine whether the
proposed TIF District meets the statutory requirements for coverage, and whether four buildings on one parcel, located within
the proposed TIF District, meet the qualifications required for a Redevelopment District.
Diagram 1: Proposed TIF District
Scope of Work
The proposed TIF District consists of one parcel with four buildings. The buildings were inspected on January 25, 2024.
Building Code and Condition Deficiency reports are in Appendix B. Inspection ReportAgenda Page 36
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Conclusion
After inspecting and evaluating the properties within the proposed TIF District and applying current statutory criteria for a
Redevelopment District under Minnesota Statutes, Section 469.174, Subdivision 10, it is our professional opinion that the
proposed TIF District qualifies as a Redevelopment District because:
The proposed TIF District has a coverage calculation of 100 percent which is above the 70 percent requirement.
100 percent of the buildings are structurally substandard which is above the 50 percent requirement.
The substandard buildings are reasonably distributed.
The remainder of this report describes our process and findings in detail.
Part 2: Minnesota Statute 469.174, Subdivision 10
Requirements
The properties were inspected in accordance with the following requirements under Minnesota Statutes, Section 469.174,
Subdivision 10(c), which states:
Interior Inspection
“The municipality may not make such determination [that the building is structurally substandard] without an interior
inspection of the property...”
Exterior Inspection and Other Means
“An interior inspection of the property is not required, if the municipality finds that
(1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain
permission from the party that owns or controls the property; and
(2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard.”
Documentation
“Written documentation of the findings and reasons why an interior inspection was not conducted must be made and
retained under section 469.175, subdivision 3(1).”
Qualification Requirements
Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1) requires three tests for occupied parcels:
1. COVERAGE TEST
a. Minnesota Statutes, Section 469.174, Subdivision 10(a)(1) states:
“Parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or paved or
gravel parking lots…”
b. The coverage required by the parcel to be considered occupied is defined under Minnesota Statutes, Section
469.174, Subdivision 10(e), which states:
“For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots,
or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or
gravel parking lots, or other similar structures.” Inspection ReportAgenda Page 37
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2. CONDITION OF BUILDINGS TEST
a. Minnesota Statutes, Section 469.174, Subdivision 10(a) states:
“…and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree
requiring substantial renovation or clearance;”
b. Structurally substandard is defined under Minnesota Statutes, Section 469.174, Subdivision 10(b), which states:
“For purposes of this subdivision, ‘structurally substandard’ shall mean containing defects in structural elements or a
combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate
egress, layout and condition of interior partitions, or similar factors, which defects, or deficiencies are of sufficient
total significance to justify substantial renovation or clearance.”
i. We do not count energy code deficiencies toward the thresholds required by Minnesota Statutes, Section
469.174, Subdivision 10(b) defined as “structurally substandard”, due to concerns expressed by the State of
Minnesota Court of Appeals in the Walser Auto Sales, Inc. vs. City of Richfield case filed November 13, 2001.
c. Buildings are not eligible to be considered structurally substandard unless they meet certain additional criteria, as set
forth in Subdivision 10(c) which states:
“A building is not structurally substandard if it follows the building code applicable to new buildings or could be
modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the
same square footage and type on the site. The municipality may find that a building is not disqualified as structurally
substandard under the preceding sentence based on reasonably available evidence, such as the size, type, and age
of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence.”
“Items of evidence that support such a conclusion [that the building is not disqualified] include recent fire or police
inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar
reliable evidence.”
i. LHB counts energy code deficiencies toward the 15 percent code threshold required by Minnesota Statutes,
Section 469.174, Subdivision 10(c)) for the following reasons:
1) The Minnesota energy code is one of ten building code areas highlighted by the Minnesota Department of
Labor and Industry website where minimum construction standards are required by law.
2) Chapter 13 of the 2015 Minnesota Building Code states, “Buildings shall be designed and constructed in
accordance with the International Energy Conservation Code.” Furthermore, Minnesota Rules, Chapter
1305.0021 Subpart 9 states, “References to the International Energy Conservation Code in this code mean
the Minnesota Energy Code…”
3) Chapter 11 of the 2015 Minnesota Residential Code incorporates Minnesota Rules, Chapters, 1322 and
1323 Minnesota Energy Code.
4) The Senior Building Code Representative for the Construction Codes and Licensing Division of the
Minnesota Department of Labor and Industry confirmed that the Minnesota Energy Code is being enforced
throughout the State of Minnesota.
5) In a January 2002 report to the Minnesota Legislature, the Management Analysis Division of the Minnesota
Department of Administration confirmed that the construction cost of new buildings complying with the
Minnesota Energy Code is higher than buildings built prior to the enactment of the code.
6) Proper TIF analysis requires a comparison between the replacement value of a new building built under
current code standards with the repairs that would be necessary to bring the existing building up to current
code standards. For an equal comparison to be made, all applicable code chapters should be applied to
both scenarios. Since current construction estimating software automatically applies the construction cost
of complying with the Minnesota Energy Code, energy code deficiencies should also be identified in the
existing structures. Inspection ReportAgenda Page 38
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3. DISTRIBUTION OF SUBSTANDARD BUILDINGS
a. Minnesota Statutes, Section 469.174, Subdivision 10, defines a Redevelopment District and requires one or more of
the following conditions “reasonably distributed throughout the district.”:
“(1) Parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved
or gravel parking lots, or other similar structures and more than 50 percent of the buildings, not including
outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance.
(2) the property consists of vacant, unused, underused, inappropriately used, or infrequently used rail yards, rail
storage facilities, or excessive or vacated railroad rights-of-way.
(3) tank facilities, or property whose immediately previous use was for tank facilities…”
b. Our interpretation of the distribution requirement is that the substandard buildings must be reasonably distributed
throughout the district as compared to the location of all buildings in the district. For example, if all the buildings in a
district are located on one half of the area of the district, with the other half occupied by parking lots (meeting the
required 70 percent coverage for the district), we would evaluate the distribution of the substandard buildings
compared with only the half of the district where the buildings are located. If all the buildings in a district are located
evenly throughout the entire area of the district, the substandard buildings must be reasonably distributed throughout
the entire area of the district. We believe this is consistent with the opinion expressed by the State of Minnesota
Court of Appeals in the Walser Auto Sales, Inc. vs. City of Richfield case filed November 13, 2001.
Part 3: Procedures Followed
LHB inspected four buildings on January 25, 2024.
Part 4: Findings
1. Coverage Test
a. The total square foot area of the parcel in the proposed TIF District was obtained from City records, GIS mapping
and site verification.
b. The total square foot area of buildings and site improvements on the parcels in the proposed TIF District was
obtained from City records, GIS mapping and site verification.
c. The percentage of coverage for each parcel in the proposed TIF District was computed to determine if the 15 percent
minimum requirement was met. The total square footage of parcels meeting the 15 percent requirement was divided
into the total square footage of the entire district to determine if the 70 percent requirement was met.
FINDING
The proposed TIF District met the coverage test under Minnesota Statutes, Section 469.174, Subdivision 10(e),
which resulted in parcels consisting of 100 percent of the area of the proposed TIF District being occupied by
buildings, streets, utilities, paved or gravel parking lots, or other similar structures (Diagram 2). This exceeds the 70
percent area coverage requirement for the proposed TIF District under Minnesota Statutes, Section 469.174,
Subdivision (a) (1). Inspection ReportAgenda Page 39
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Diagram 2 – Coverage Diagram
Shaded area depicts a parcel more than 15 percent occupied by buildings, streets, utilities,
paved or gravel parking lots or other similar structures
2. Condition of Building Test
a. BUILDING INSPECTION
i. The first step in the evaluation process is the building inspection. After an initial walk-thru, the inspector makes a
judgment whether a building “appears” to have enough defects or deficiencies of sufficient total significance to
justify substantial renovation or clearance. If it does, the inspector documents with notes and photographs code
and non-code deficiencies in the building.
b. REPLACEMENT COST
i. The second step in evaluating a building to determine if it is substandard to a degree requiring substantial
renovation or clearance is to determine its replacement cost. This is the cost of constructing a new structure of
the same square footage and type on site. Replacement costs were researched using R.S. Means Cost Works
square foot models for 2024.
ii. A replacement cost was calculated by first establishing building use (office, retail, residential, etc.), building
construction type (wood, concrete, masonry, etc.), and building size to obtain the appropriate median
replacement cost, which factors in the costs of construction in Albertville, Minnesota. Inspection ReportAgenda Page 40
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iii. Replacement cost includes labor, materials, and the contractor’s overhead and profit. Replacement costs do not
include architectural fees, legal fees or other “soft” costs not directly related to construction activities.
Replacement cost for each building is tabulated in Appendix A.
c. CODE DEFICIENCIES
i. The next step in evaluating a building is to determine what code deficiencies exist with respect to such building.
Code deficiencies are those conditions for a building which are not in compliance with current building codes
applicable to new buildings in the State of Minnesota.
ii. Minnesota Statutes, Section 469.174, Subdivision 10(c), specifically provides that a building cannot be
considered structurally substandard if its code deficiencies are not at least 15 percent of the replacement cost of
the building. As a result, it was necessary to determine the extent of code deficiencies for each building in the
proposed TIF District.
iii. The evaluation was made by reviewing all available information with respect to such buildings contained in City
Building Inspection records and making interior and exterior inspections of the buildings. LHB utilizes the current
Minnesota State Building Code as the official code for our evaluations. The Minnesota State Building Code is a
series of provisional codes written specifically for Minnesota only requirements, adoption of several international
codes, and amendments to the adopted international codes.
iv. After identifying the code deficiencies in each building, we used R.S. Means Cost Works 2024; Unit and
Assembly Costs to determine the cost of correcting the identified deficiencies. We were then able to compare
the correction costs with the replacement cost of each building to determine if the costs for correcting code
deficiencies meet the required 15 percent threshold.
FINDING
Four out of four buildings (100 percent) in the proposed TIF District contained code deficiencies exceeding the 15
percent threshold required by Minnesota Statutes, Section 469.174, Subdivision 10(c). Building Code, Condition
Deficiency and Context Analysis reports for the building(s) in the proposed TIF District can be found in Appendix B of
this report.
d. SYSTEM CONDITION DEFICIENCIES
i. If a building meets the minimum code deficiency threshold under Minnesota Statutes, Section 469.174,
Subdivision 10(c), then for such building to be “structurally substandard” under Minnesota Statutes, Section
469.174, Subdivision 10(b), the building’s defects, or deficiencies should be of sufficient total significance to
justify “substantial renovation or clearance.” Based on this definition, LHB re-evaluated each of the buildings
that met the code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), to
determine if the total deficiencies warranted “substantial renovation or clearance” based on the criteria we
outlined above.
ii. System condition deficiencies are a measurement of defects or substantial deterioration in site elements,
structure, exterior envelope, mechanical and electrical components, fire protection and emergency systems,
interior partitions, ceilings, floors, and doors.
iii. The evaluation of system condition deficiencies was made by reviewing all available information contained in
City records and making interior and exterior inspections of the buildings. LHB only identified system condition
deficiencies that were visible upon our inspection of the building or contained in City records. We did not
consider the amount of “service life” used up for a particular component unless it was an obvious part of that
component’s deficiencies.
iv. After identifying the system condition deficiencies in each building, we used our professional judgment to
determine if the list of defects or deficiencies is of sufficient total significance to justify “substantial renovation or
clearance.”
FINDING
In our professional opinion, four out of four buildings (100 percent) in the proposed TIF District are structurally
substandard to a degree requiring substantial renovation or clearance, because of defects in structural elements or a
combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate Inspection ReportAgenda Page 41
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egress, layout and condition of interior partitions, or similar factors which defects or deficiencies are of sufficient total
significance to justify substantial renovation or clearance. This exceeds the 50 percent requirement of Subdivision
10a(1).
3. Distribution of Substandard Structures
e. Much of this report has focused on the condition of individual buildings as they relate to requirements identified by
Minnesota Statutes, Section 469.174, Subdivision 10. It is also important to look at the distribution of substandard
buildings throughout the geographic area of the proposed TIF District (Diagram 3).
FINDING
The parcels with substandard buildings are reasonably distributed compared to all parcels that contain buildings.
Diagram 3 – Substandard Buildings
Shaded yellow area depicts parcels with buildings.
Shaded orange area depicts substandard buildings.
Inspection ReportAgenda Page 42
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Part 5: Team Credentials
Michael A. Fischer, AIA, LEED AP - Project Principal/TIF Analyst
Michael has 37 years of experience as project principal, project manager, project designer and project architect on planning,
urban design, educational, commercial, and governmental projects. He has become an expert on Tax Increment Finance
District analysis assisting over 100 cities with strategic planning for TIF Districts. He is an Architectural Principal at LHB and
currently leads the Minneapolis office.
Michael completed a two-year Bush Fellowship, studying at MIT and Harvard in 1999, earning master’s degrees in City
Planning and Real Estate Development from MIT. He has served on more than 50 committees, boards, and community task
forces, including a term as a City Council President, Chair of a Metropolitan Planning Organization, and Chair of the Edina
Planning Commission. Most recently, he served as a member of the Edina city council and Secretary of the Edina HRA.
Michael has also managed and designed several award-winning architectural projects and was one of four architects in the
Country to receive the AIA Young Architects Citation in 1997.
Phil Fisher – Inspector
For 35 years, Phil Fisher worked in the field of Building Operations in Minnesota including White Bear Lake Area Schools. At
the University of Minnesota, he earned his Bachelor of Science in Industrial Technology. He is a Certified Playground Safety
Inspector, Certified Plant Engineer, and is trained in Minnesota Enterprise Real Properties (MERP) Facility Condition
Assessment (FCA). His FCA training was recently applied to the Minnesota Department of Natural Resources Facilities
Condition Assessment project involving over 2,000 buildings.
Appendices
APPENDIX A Property Condition Assessment Summary Sheet
APPENDIX B Building Code, Condition Deficiency and Context Analysis Reports
APPENDIX C Building Replacement Cost Reports
Code Deficiency Cost Reports
Photographs Inspection ReportAgenda Page 43
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
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APPENDIX A
Property Condition Assessment Summary Sheet
Inspection ReportAgenda Page 44
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 27Outlet Mall Redevelopment TIF DistrictProperty Condition Assessment Summary SheetAlbertville, MinnesotaTIFMap No.PID #Property AddressImproved or VacantSurvey Method UsedSite Area(S.F.)Coverage Area of Improvements(S.F.)Coverage Percent of ImprovementsCoverageQuantity(S.F.)No. of BuildingsBuildingReplacementCost15% of ReplacementCostBuilding Code DeficienciesNo. of Buildings Exceeding 15% CriteriaNo. of buildings determined substandardA1 101095001010 6500 Labeaux Ave NE Improved Interior/Exterior 656,449472,64372%656,4491$6,327,635 $949,145 $1,819,75411A2 101095001010 6500 Labeaux Ave NE Improved Interior/Exterior See A1See A11$2,481,011 $372,152 $677,89011A3 101095001010 6500 Labeaux Ave NE Improved Interior/Exterior See A1See A11$6,729,757 $1,009,464 $1,917,56511A4 101095001010 6500 Labeaux Ave NE Improved Interior/Exterior See A1See A11$2,998,514 $449,777 $838,43011TOTALS 656,449656,4494 44100.0%100.0%M:\24Proj\240070\300 Design\Reports\Final Report\[240070 Outlet Mall Redevelopment TIF Summary Spreadsheet.xlsx]Property Info100.0%Total Coverage Percent:Percent of buildings exceeding 15 percent code deficiency threshold: Percent of buildings determined substandard: LHB Project Number 240070.00Page 1 of 1Property Condition Assessment Summary SheetInspection ReportAgenda Page 45
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
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APPENDIX B
Building Code, Condition Deficiency and Context Analysis Reports
Inspection ReportAgenda Page 46
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Outlet Mall TIF District Page 1 of 2 Building Report
LHB Project No.240070.00 Parcel A1 – 6500 Labeaux Ave NE, Albertville, MN 55301
Outlet Mall Redevelopment TIF District
Building Code, Condition Deficiency and Context Analysis Report
Parcel A1 Albertville - Building One
Address:6500 Labeaux Avenue Northeast, Albertville, Minnesota 55301
Parcel ID:101095001010
Inspection Date(s) & Time(s):January 25, 2024, 9:40 am
Inspection Type:Interior and Exterior
Summary of Deficiencies:It is our professional opinion that this building is Substandard because:
- Substantial renovation is required to correct Conditions found.
- Building Code deficiencies total more than 15% of replacement cost, NOT
including energy code deficiencies.
Estimated Replacement Cost:$6,327,635
Estimated Cost to Correct Building Code Deficiencies:$1,819,754
Percentage of Replacement Cost for Building Code Deficiencies:28.8%
DEFECTS IN STRUCTURAL ELEMENTS
1. No deficiencies observed.
COMBINATION OF DEFICIENCIES
1.Essential Utilities and Facilities
a. The water service to the building has been shut off because of interior pipe freezing.
2. Light and Ventilation
a. The lighting system does not comply with code.
b. The HVAC system does not comply with code.
3. Fire Protection/Adequate Egress
a. Sidewalks are severely damaged creating an impediment to emergency egress which is contrary to code.
b. Thresholds do not comply with code.
c.Smoke detectors are not code compliant.
d. There is no code required emergency notification system.
e. The sprinkler system has failed and does not comply with code.
f. Fire caulking should be installed per code.
4. Layout and Condition of Interior Partitions/Materials
a. Interior walls should be repaired and repainted.
b. The carpeting should be cleaned or replaced.Inspection ReportAgenda Page 47
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 30
Outlet Mall TIF District Page 2 of 2 Building Report
LHB Project No.240070.00 Parcel A1 –6500 Labeaux Ave NE, Albertville, MN 55301
c.Ceiling tile is damaged from roof leaks and should be replaced.
5. Exterior Construction
a. Exterior windows are damaged/missing allowing for water intrusion which is contrary to code.
b. Exterior Insulation and Finish System is damaged/cracking, allowing for water intrusion which is contrary to code.
c.The roofing system has failed, allowing for water intrusion which is contrary to code.
DESCRIPTION OF CODE DEFICIENCIES
1. Install a code compliant lighting system.
2. Install a code compliant HVAC system.
3. Repair damaged sidewalks to create an unimpeded means for emergency egress per code.
4. Modify thresholds to comply with code for maximum height.
5. Install code compliant smoke detectors.
6. Install a code required emergency notification system.
7. Install a code compliant sprinkler system.
8. Install code required fire caulking.
9. Replace failed/damaged windows to prevent water intrusion per code.
10. Repair/replace damaged/failed E.I.F.S to prevent water intrusion per code.
11. Replace failed roofing system to prevent water intrusion per code.
OVERVIEW OF DEFICIENCIES
This retail shopping building is currently vacant. It is one of four buildings in this complex. The sidewalks are severely
damaged creating an impediment to emergency egress which is contrary to code. Some windows are damaged/missing,
allowing for water intrusion which is contrary to code. Exterior E.I.F.S. walls are damaged/cracked allowing for water intrusion
which is contrary to code. Interior walls are damaged and should be repaired and repainted. Water damaged ceiling tile
should be removed and replaced. The smoke detectors do not comply with code. There is no code required emergency
notification system. The sprinkler system has failed because of frozen pipes and is currently shut off which is contrary to
code. Fire caulking should be installed per code. The lighting system and HVAC system do not comply with code.
ENERGY CODE DEFICIENCIES
In addition to the building code deficiencies listed above, the existing building does not comply with the current energy code.
These deficiencies are not included in the estimated costs to correct code deficiencies and are not considered in determining
whether the building is substandard.
M:\24Proj\240070\300 Design\Reports\Building Reports\Building 1 Building Report.docx Inspection ReportAgenda Page 48
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 31
Outlet Mall TIF District Page 1 of 2 Building Report
LHB Project No.240070.00 Parcel A2 –6500 Labeaux Ave NE, Albertville, MN 55301
Outlet Mall Redevelopment TIF District
Building Code, Condition Deficiency and Context Analysis Report
Parcel A2 Albertville -Building Two
Address:6500 Labeaux Avenue Northeast, Albertville, Minnesota 55301
Parcel ID:101095001010
Inspection Date(s) & Time(s):January 25, 2024, 9:00 am
Inspection Type:Interior and Exterior
Summary of Deficiencies:It is our professional opinion that this building is Substandard because:
- Substantial renovation is required to correct Conditions found.
- Building Code deficiencies total more than 15% of replacement cost, NOT
including energy code deficiencies.
Estimated Replacement Cost:$2,481,011
Estimated Cost to Correct Building Code Deficiencies:$677,890
Percentage of Replacement Cost for Building Code Deficiencies:27.3%
DEFECTS IN STRUCTURAL ELEMENTS
1. No deficiencies observed.
COMBINATION OF DEFICIENCIES
1.Essential Utilities and Facilities
a. The water service to the building has been shut off because of interior pipe freezing.
2. Light and Ventilation
a. The lighting system does not comply with code.
b. The HVAC system does not comply with code.
3. Fire Protection/Adequate Egress
a. Sidewalks are severely damaged creating an impediment to emergency egress which is contrary to code.
b. Thresholds do not comply with code.
c.Smoke detectors are not code compliant.
d. There is no code required emergency notification system.
e. Natural gas meters are not properly protected,per code.
f. The sprinkler system has failed and does not comply with code.
g. Fire caulking should be installed per code.
4. Layout and Condition of Interior Partitions/Materials
a. Interior walls should be repaired and repainted.Inspection ReportAgenda Page 49
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 32
Outlet Mall TIF District Page 2 of 2 Building Report
LHB Project No.240070.00 Parcel A2 –6500 Labeaux Ave NE, Albertville, MN 55301
b. The carpeting should be cleaned or replaced.
c.Ceiling tile is damaged from roof leaks and should be replaced.
5. Exterior Construction
a. Exterior Insulation and Finish System is damaged/cracking, allowing for water intrusion which is contrary to code.
b. The roofing system has failed, allowing for water intrusion which is contrary to code.
DESCRIPTION OF CODE DEFICIENCIES
1. Install a code compliant lighting system.
2. Install a code compliant HVAC system.
3. Repair damaged sidewalks to create an unimpeded means for emergency egress per code.
4. Modify thresholds to comply with code for maximum height.
5. Properly protect natural gas meters per code.
6. Install code compliant smoke detectors.
7. Install a code required emergency notification system.
8. Install a code compliant sprinkler system.
9. Install code required fire caulking.
10. Repair/replace damaged/failed E.I.F.S to prevent water intrusion per code.
11. Replace failed roofing system to prevent water intrusion per code.
OVERVIEW OF DEFICIENCIES
This retail shopping building is currently vacant. It is one of four buildings in this complex. The sidewalks are severely
damaged creating an impediment to emergency egress which is contrary to code. Exterior E.I.F.S. walls are
damaged/cracked allowing for water intrusion which is contrary to code. Interior walls are damaged and should be repaired
and repainted. Water damaged ceiling tile should be removed and replaced. The smoke detectors do not comply with code.
There is no code required emergency notification system. The sprinkler system has failed because of frozen pipes and is
currently shut down, which is contrary to code. Fire caulking should be installed per code. The lighting system and HVAC
system do not comply with code.
ENERGY CODE DEFICIENCIES
In addition to the building code deficiencies listed above, the existing building does not comply with the current energy code.
These deficiencies are not included in the estimated costs to correct code deficiencies and are not considered in determining
whether the building is substandard.
M:\24Proj\240070\300 Design\Reports\Building Reports\Building 2 Building Report.docx Inspection ReportAgenda Page 50
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 33
Outlet Mall TIF District Page 1 of 2 Building Report
LHB Project No.240070.00 Parcel A3 –6500 Labeaux Ave NE, Albertville, MN 55301
Outlet Mall Redevelopment TIF District
Building Code, Condition Deficiency and Context Analysis Report
Parcel A3 Albertville -Building Three
Address:6500 Labeaux Avenue Northeast, Albertville, Minnesota 55301
Parcel ID:101095001010
Inspection Date(s) & Time(s):January 25, 2024, 9:20 am
Inspection Type:Interior and Exterior
Summary of Deficiencies:It is our professional opinion that this building is Substandard because:
- Substantial renovation is required to correct Conditions found.
- Building Code deficiencies total more than 15% of replacement cost, NOT
including energy code deficiencies.
Estimated Replacement Cost:$6,729,757
Estimated Cost to Correct Building Code Deficiencies:$1,917,565
Percentage of Replacement Cost for Building Code Deficiencies:28.5%
DEFECTS IN STRUCTURAL ELEMENTS
1. Exterior façade columns are damaged creating a safety hazard which is contrary to code.
COMBINATION OF DEFICIENCIES
1.Essential Utilities and Facilities
a. The water service to the building has been shut off because of interior pipe freezing.
2. Light and Ventilation
a. The lighting system does not comply with code.
b. The HVAC system does not comply with code.
3.Fire Protection/Adequate Egress
a. Sidewalks are severely damaged creating an impediment to emergency egress which is contrary to code.
b. Thresholds do not comply with code.
c.Smoke detectors are not code compliant.
d. There is no code required emergency notification system.
e. The sprinkler system has failed and does not comply with code.
f. Fire caulking should be installed per code.
4. Layout and Condition of Interior Partitions/Materials
a. Interior walls should be repaired and repainted.
b. The carpeting should be cleaned or replaced.Inspection ReportAgenda Page 51
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 34
Outlet Mall TIF District Page 2 of 2 Building Report
LHB Project No.240070.00 Parcel A3 –6500 Labeaux Ave NE, Albertville, MN 55301
c.Ceiling tile is damaged from roof leaks and should be replaced.
5. Exterior Construction
a. One exterior service door is fire damaged and should be replaced.
b. Exterior windows are damaged/missing allowing for water intrusion which is contrary to code.
c.Exterior Insulation and Finish System is damaged/cracking, allowing for water intrusion which is contrary to code.
d. The roofing system has failed, allowing for water intrusion which is contrary to code.
DESCRIPTION OF CODE DEFICIENCIES
1. Repair damaged façade columns to comply with code for safety.
2. Install a code compliant lighting system.
3. Install a code compliant HVAC system.
4. Repair damaged sidewalks to create an unimpeded means for emergency egress per code.
5. Modify thresholds to comply with code for maximum height.
6. Install code compliant smoke detectors.
7. Install a code required emergency notification system.
8. Install a code compliant sprinkler system.
9. Install code required fire caulking.
10. Replace failed/damaged windows to prevent water intrusion per code.
11. Repair/replace damaged/failed E.I.F.S to prevent water intrusion per code.
12. Replace failed roofing system to prevent water intrusion per code.
OVERVIEW OF DEFICIENCIES
This retail shopping building is currently vacant. It is one of four buildings in this complex. The sidewalks are severely
damaged creating an impediment to emergency egress which is contrary to code. Some windows are damaged/missing,
allowing for water intrusion which is contrary to code. Exterior E.I.F.S. walls are damaged/cracked allowing for water intrusion
which is contrary to code. Am exterior façade support column is damaged creating a structural safety hazard which is contrary
to code. Interior walls are damaged and should be repaired and repainted. Water damaged ceiling tile should be removed
and replaced. The smoke detectors do not comply with code. There is no code required emergency notification system. The
sprinkler system has failed because of frozen pipe and is currently shut down which is contrary to code. Fire caulking should
be installed per code. The lighting system and HVAC system do not comply with code.
ENERGY CODE DEFICIENCIES
In addition to the building code deficiencies listed above, the existing building does not comply with the current energy code.
These deficiencies are not included in the estimated costs to correct code deficiencies and are not considered in determining
whether the building is substandard.
M:\24Proj\240070\300 Design\Reports\Building Reports\Building 3 Building Report.docx Inspection ReportAgenda Page 52
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 35
Outlet Mall TIF District Page 1 of 2 Building Report
LHB Project No.240070.00 Parcel A4 –6500 Labeaux Ave NE, Albertville, MN 55301
Outlet Mall Redevelopment TIF District
Building Code, Condition Deficiency and Context Analysis Report
Parcel A4 Albertville -Building Four
Address:6500 Labeaux Avenue Northeast, Albertville, Minnesota 55301
Parcel ID:101095001010
Inspection Date(s) & Time(s):January 25, 2024,10:00 am
Inspection Type:Interior and Exterior
Summary of Deficiencies:It is our professional opinion that this building is Substandard because:
- Substantial renovation is required to correct Conditions found.
- Building Code deficiencies total more than 15% of replacement cost, NOT
including energy code deficiencies.
Estimated Replacement Cost:$2,998,514
Estimated Cost to Correct Building Code Deficiencies:$838,430
Percentage of Replacement Cost for Building Code Deficiencies:28.0%
DEFECTS IN STRUCTURAL ELEMENTS
1. No deficiencies observed.
COMBINATION OF DEFICIENCIES
1.Essential Utilities and Facilities
a. The water service to the building has been shut off because of interior pipe freezing.
2. Light and Ventilation
a. The lighting system does not comply with code.
b. The HVAC system does not comply with code.
3. Fire Protection/Adequate Egress
a.Sidewalks are severely damaged creating an impediment to emergency egress which is contrary to code.
b. Thresholds do not comply with code.
c.Smoke detectors are not code compliant.
d. There is no code required emergency notification system.
e. The sprinkler system has failed and does not comply with code.
f. Fire caulking should be installed per code.
4. Layout and Condition of Interior Partitions/Materials
a. Interior walls should be repaired and repainted.
b. The carpeting should be cleaned or replaced.Inspection ReportAgenda Page 53
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 36
Outlet Mall TIF District Page 2 of 2 Building Report
LHB Project No.240070.00 Parcel A4 –6500 Labeaux Ave NE, Albertville, MN 55301
c.Ceiling tile is damaged from roof leaks and should be replaced.
5. Exterior Construction
a. Exterior windows are damaged/missing allowing for water intrusion which is contrary to code.
b. Exterior Insulation and Finish System is damaged/cracking, allowing for water intrusion which is contrary to code.
c.The roofing system has failed, allowing for water intrusion which is contrary to code.
DESCRIPTION OF CODE DEFICIENCIES
1. Install a code compliant lighting system.
2. Install a code compliant HVAC system.
3. Repair damaged sidewalks to create an unimpeded means for emergency egress per code.
4. Modify thresholds to comply with code for maximum height.
5. Install code compliant smoke detectors.
6. Install a code required emergency notification system.
7. Install a code compliant sprinkler system.
8. Install code required fire caulking.
9. Replace failed/damaged windows to prevent water intrusion per code.
10. Repair/replace damaged/failed E.I.F.S to prevent water intrusion per code.
11. Replace failed roofing system to prevent water intrusion per code.
OVERVIEW OF DEFICIENCIES
This retail shopping building is currently vacant. It is one of four buildings in this complex. The sidewalks are severely
damaged creating an impediment to emergency egress which is contrary to code. Some windows are damaged/missing,
allowing for water intrusion which is contrary to code. Exterior E.I.F.S. walls are damaged/cracked allowing for water intrusion
which is contrary to code. Interior walls are damaged and should be repaired and repainted. Water damaged ceiling tile
should be removed and replaced. The smoke detectors do not comply with code. There is no code required emergency
notification system. The sprinkler system has failed because of frozen pipes and is currently shut down which is contrary to
code. Fire caulking should be installed per code. The lighting system and HVAC system do not comply with code.
ENERGY CODE DEFICIENCIES
In addition to the building code deficiencies listed above, the existing building does not comply with the current energy code.
These deficiencies are not included in the estimated costs to correct code deficiencies and are not considered in determining
whether the building is substandard.
M:\24Proj\240070\300 Design\Reports\Building Reports\Building 4 Building Report.docx Inspection ReportAgenda Page 54
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 37
APPENDIX C
Building Replacement Cost Reports
Code Deficiency Cost Reports
Photographs Inspection ReportAgenda Page 55
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 38
Square Foot Cost Estimate Report Date:1/26/2024
Estimate Name:Albertville ‐ Building One
Building Type:Store, Retail with E.I.F.S. & Metal Studs / Steel Joists
Location:ALBERTVILLE, MN
Story Count:1
Story Height (L.F.):18
Floor Area (S.F.):50000
Labor Type:OPN
Basement Included:No
Data Release:Year 2024 Quarter 1
Cost Per Square Foot:$126.55
Building Cost:$6,327,635.06
Quantity % of Total Cost Per S.F. Cost
A Substructure 11.50% $12.66 $632,913.85
A1010 Standard Foundations $4.37 $218,445.85
A10101051560 Foundation wall, CIP, 4' wall height, direct chute, .148 CY/LF, 7.2 PLF,
12" thick
1150 $2.54 $127,068.10
A10101102700 Strip footing, concrete, reinforced, load 11.1 KLF, soil bearing capacity
6 KSF, 12" deep x 24" wide
1150 $1.38 $69,113.85
A10102107410 Spread footings, 3000 PSI concrete, load 100K, soil bearing capacity 6
KSF, 4' ‐ 6" square x 15" deep
37.5 $0.45 $22,263.90
A1030 Slab on Grade $7.86 $392,796.00
A10301202240 Slab on grade, 4" thick, non industrial, reinforced 50000 $7.86 $392,796.00
A2010 Basement Excavation $0.43 $21,672.00
A20101104560 Excavate and fill, 10,000 SF, 4' deep, sand, gravel, or common earth,
on site storage
50000 $0.43 $21,672.00
B Shell 34.97% $38.48 $1,924,043.94
B1020 Roof Construction $13.85 $692,525.00
B10201123300 Roof, steel joists, beams, 1.5" 22 ga metal deck, on columns, 25'x25'
bay, 20" deep, 40 PSF superimposed load, 60 PSF total load
50000 $11.65 $582,406.00
B10201123400 Roof, steel joists, beams, 1.5" 22 ga metal deck, on columns, 25'x25'
bay, 20" deep, 40 PSF superimposed load, 60 PSF total load, add for
column
50000 $2.20 $110,119.00
B2010 Exterior Walls $7.85 $392,461.75
B20101525230 E.I.F.S., cement board sheathing, 1x8 fascia, R8 insulation, 6" metal
studs, 16" O.C., 2" EPS
17595 $7.85 $392,461.75
B2020 Exterior Windows $3.29 $164,738.79
B20202101100 Aluminum flush tube frame, for 1/4"glass,1‐3/4"x4", 5'x6' opening, no
intermediate horizontals
207 $0.13 $6,478.72
B20202201000 Glazing panel, insulating, 1/2" thick, 2 lites 1/8" float glass, clear 2898 $3.17 $158,260.07
B2030 Exterior Doors $2.24 $112,088.47
B20301106700 Door, aluminum & glass, without transom, bronze finish, hardware, 3'‐
0" x 7'‐0" opening
18.75 $1.73 $86,621.06
B20302203450 Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'‐0"
x 7'‐0" opening
6.25 $0.51 $25,467.41
B3010 Roof Coverings $11.20 $559,886.99
B30101203300 Roofing, single ply membrane, EPDM, 60 mils, fully adhered 50000 $3.42 $171,000.00
B30103202700 Insulation, rigid, roof deck, extruded polystyrene, 40 PSI compressive
strength, 4" thick, R20
50000 $6.90 $344,781.00
B30104201400 Roof edges, aluminum, duranodic, .050" thick, 6" face 1150 $0.61 $30,635.54
B30106305100 Gravel stop, aluminum, extruded, 4", mill finish, .050" thick 1150 $0.27 $13,470.45
B3020 Roof Openings $0.05 $2,342.94
B30202100300 Roof hatch, with curb, 1" fiberglass insulation, 2'‐6" x 3'‐0", galvanized
steel, 165 lbs
1 $0.05 $2,342.94
C Interiors 15.65% $17.22 $861,012.49
C1010 Partitions $1.77 $88,734.27
C10101265400 Metal partition, 5/8"fire rated gypsum board face, no base,3 ‐5/8" @
24" OC framing, same opposite face, no insulation
8333.33 $1.02 $51,228.42
Outlet Mall Redevelopment TIF District
Replacement Cost Report
Costs are derived from a building model with basic components.
Scope differences and market conditions can cause costs to vary significantly.
Outlet Mall TIF District
LHB Project No. 240070.00 Page 1 of 3
Replacement Cost Report
Parcel A1 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 56
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 39
C10101280700 Gypsum board, 1 face only, exterior sheathing, fire resistant, 5/8" 17595 $0.47 $23,541.58
C10101280960 Add for the following: taping and finishing 17595 $0.28 $13,964.27
C1020 Interior Doors $1.40 $69,764.04
C10201022600 Door, single leaf, kd steel frame, hollow metal, commercial quality,
flush, 3'‐0" x 7'‐0" x 1‐3/8"
43.74 $1.40 $69,764.04
C1030 Fittings $0.32 $16,232.08
C10301100460 Toilet partitions, cubicles, ceiling hung, stainless steel 6.25 $0.32 $16,232.08
C3010 Wall Finishes $1.14 $57,036.10
C30102300140 Painting, interior on plaster and drywall, walls & ceilings, roller work,
primer & 2 coats
15000 $0.37 $18,590.85
C30102300140 Painting, interior on plaster and drywall, walls & ceilings, roller work,
primer & 2 coats
17595 $0.44 $21,807.07
C30102301940 Ceramic tile, thin set, 4‐1/4" x 4‐1/4" 1666.67 $0.33 $16,638.18
C3020 Floor Finishes $3.08 $153,826.50
C30204101600 Vinyl, composition tile, maximum 50000 $3.08 $153,826.50
C3030 Ceiling Finishes $9.51 $475,419.50
C30302107400 Acoustic ceilings, 3/4"mineral fiber, 12" x 12" tile, concealed 2" bar &
channel grid, suspended support
50000 $9.51 $475,419.50
D Services 37.88% $41.69 $2,084,321.08
D2010 Plumbing Fixtures $3.20 $160,156.54
D20101102000 Water closet, vitreous china, tank type, 2 piece close coupled 12.5 $0.46 $22,913.38
D20102102000 Urinal, vitreous china, wall hung 1 $0.04 $1,776.28
D20103101560 Lavatory w/trim, vanity top, PE on CI, 20" x 18"12.5 $0.48 $23,997.50
D20104404340 Service sink w/trim, PE on CI,wall hung w/rim guard, 24" x 20" 12.5 $1.68 $84,240.00
D20108201880 Water cooler, electric, wall hung, dual height, 14.3 GPH 6.25 $0.54 $27,229.38
D2020 Domestic Water Distribution $0.51 $25,636.80
D20202502220 Gas fired water heater, commercial, 100< F rise, 500 MBH input, 480
GPH
1 $0.51 $25,636.80
D2040 Rain Water Drainage $1.80 $89,851.13
D20402104200 Roof drain, CI, soil,single hub, 4" diam, 10' high 31.25 $1.68 $84,143.75
D20402104240 Roof drain, CI, soil,single hub, 4" diam, for each additional foot add 125 $0.11 $5,707.38
D3050 Terminal & Package Units $9.97 $498,375.00
D30501502560 Rooftop, single zone, air conditioner, department stores, 10,000 SF,
29.17 ton
50000 $9.97 $498,375.00
D4010 Sprinklers $6.49 $324,537.00
D40104101080 Wet pipe sprinkler systems, steel, ordinary hazard, 1 floor, 10,000 SF 50000 $6.49 $324,537.00
D4020 Standpipes $2.03 $101,283.75
D40203101540 Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe, 1
floor
6.25 $2.03 $101,283.75
D5010 Electrical Service/Distribution $0.59 $29,615.43
D50101200320 Overhead service installation, includes breakers, metering, 20'
conduit & wire, 3 phase, 4 wire, 120/208 V, 400 A
1 $0.16 $7,876.95
D50102300320 Feeder installation 600 V, including RGS conduit and XHHW wire, 400
A
50 $0.13 $6,465.95
D50102400200 Switchgear installation, incl switchboard, panels & circuit breaker,
120/208 V, 3 phase, 400 A
1 $0.31 $15,272.53
D5020 Lighting and Branch Wiring $15.45 $772,546.38
D50201100440 Receptacles incl plate, box, conduit, wire, 8 per 1000 SF, .9 watts per
SF
50000 $3.66 $182,912.50
D50201350360 Miscellaneous power, 1.5 watts 50000 $0.54 $26,824.00
D50201400280 Central air conditioning power, 4 watts 65000 $1.07 $53,540.50
D50202100520 Fluorescent fixtures recess mounted in ceiling, 1.6 watt per SF, 40 FC,
10 fixtures @32watt per 1000 SF
62500 $10.19 $509,269.38
D5030 Communications and Security $1.65 $82,319.05
D50309100452 Communication and alarm systems, fire detection, addressable, 25
detectors, includes outlets, boxes, conduit and wire
2.25 $1.16 $58,166.55
D50309100460 Fire alarm command center, addressable without voice, excl. wire &
conduit
6.25 $0.48 $24,152.50
E Equipment & Furnishings 0.00% $0.00 $0.00
E1090 Other Equipment $0.00 $0.00
Outlet Mall TIF District
LHB Project No. 240070.00 Page 2 of 3
Replacement Cost Report
Parcel A1 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 57
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 40
F Special Construction 0.00% $0.00 $0.00
G Building Sitework 0.00% $0.00 $0.00
100% $110.05 $5,502,291.36
15.0% $16.51 $825,343.70
0.0% $0.00 $0.00
0.0% $0.00 $0.00
Total Building Cost $126.55 $6,327,635.06
Contractor Fees (General Conditions,Overhead,Profit)
Architectural Fees
SubTotal
User Fees
Outlet Mall TIF District
LHB Project No. 240070.00 Page 3 of 3
Replacement Cost Report
Parcel A1 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 58
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 41
Code Deficiency Cost Report
Parcel A1 - 6500 Labeaux Avenue Northeast, Albertville, Minnesota 55301 Building Name or Type
Parcel ID 101095001010 Albertville - Building One
Code Related Cost Items Unit Cost Units Unit Quantity Total
Accessibility Items
No Deficiencies Observed -$
Structural Elements
-$
No Deficiencies Observed
Exiting
Sidewalks
Repair/replace damaged sidewalks to create a code required
unimpeded means for emergency egress 7.86$ SF 10,000 78,600.00$
Thresholds
Modify thresholds to comply with code for maximum height 100.00$ EA 25 2,500.00$
Emergency Notification System
Install a code required emergency notification system 0.48$ SF 50,000 24,000.00$
Fire Protection
Smoke Detectors
Install code compliant smoke detectors 1.16$ SF 50,000 58,000.00$
Building Sprinkler System
Repair/replace building sprinkler system to comply with code 1.49$ SF 50,000 74,500.00$
Fire Caulking
Install code required fire caulking 0.05$ SF 50,000 2,500.00$
Exterior Construction
Windows
Replace damaged windows to prevent water intrusion per code 3.17$ EA 1,200 3,804.00$
Exterior Insulation and Finish System
Replace/repair damaged/cracked E.I.F.S. to prevent water intrusion
per code 7.85$ SF 1,000 7,850.00$
Roof Construction
Roofing Material
Remove and replace failed roofing system to prevent water intrusion
per code 11.20$ SF 50,000 560,000.00$
Outlet Mall Redevelopment TIF District
Outlet Mall TIF District
LHB Project No. 240070.00 Page 1 of 2
Code Deficiency Cost Report
Parcel A1 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 59
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 42
Code Related Cost Items Unit Cost Units Unit Quantity Total
Mechanical - Electrical
Mechanical
Install a code compliant HVAC system 9.97$ SF 50,000 498,500.00$
Electrical
Install a code compliant lighting system 10.19$ SF 50,000 509,500.00$
Total Code Improvements 1,819,754$
Outlet Mall TIF District
LHB Project No. 240070.00 Page 2 of 2
Code Deficiency Cost Report
Parcel A1 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 60
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 43
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Outlet Mall Redevelopment TIF District | Parcel A1
Inspection ReportAgenda Page 61
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 44
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Outlet Mall Redevelopment TIF District | Parcel A1
Inspection ReportAgenda Page 62
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 45
Square Foot Cost Estimate Report Date:1/26/2024
Estimate Name:Albertville ‐ Building Two
Building Type:Store, Retail with E.I.F.S. & Metal Studs / Steel Joists
Location:ALBERTVILLE, MN
Story Count:1
Story Height (L.F.):18
Floor Area (S.F.):18000
Labor Type:OPN
Basement Included:No
Data Release:Year 2024 Quarter 1
Cost Per Square Foot:$137.83
Building Cost:$2,481,011.10
Quantity % of Total Cost Per S.F. Cost
A Substructure 12.03% $14.42 $259,579.28
A1010 Standard Foundations $6.13 $110,370.80
A10101051560 Foundation wall, CIP, 4' wall height, direct chute, .148 CY/LF, 7.2 PLF,
12" thick
600 $3.68 $66,296.40
A10101102700 Strip footing, concrete, reinforced, load 11.1 KLF, soil bearing capacity
6 KSF, 12" deep x 24" wide
600 $2.00 $36,059.40
A10102107410 Spread footings, 3000 PSI concrete, load 100K, soil bearing capacity 6
KSF, 4' ‐ 6" square x 15" deep
13.5 $0.45 $8,015.00
A1030 Slab on Grade $7.86 $141,406.56
A10301202240 Slab on grade, 4" thick, non industrial, reinforced 18000 $7.86 $141,406.56
A2010 Basement Excavation $0.43 $7,801.92
A20101104560 Excavate and fill, 10,000 SF, 4' deep, sand, gravel, or common earth,
on site storage
18000 $0.43 $7,801.92
B Shell 36.68% $43.97 $791,410.09
B1020 Roof Construction $13.85 $249,309.00
B10201123300 Roof, steel joists, beams, 1.5" 22 ga metal deck, on columns, 25'x25'
bay, 20" deep, 40 PSF superimposed load, 60 PSF total load
18000 $11.65 $209,666.16
B10201123400 Roof, steel joists, beams, 1.5" 22 ga metal deck, on columns, 25'x25'
bay, 20" deep, 40 PSF superimposed load, 60 PSF total load, add for
column
18000 $2.20 $39,642.84
B2010 Exterior Walls $11.38 $204,762.65
B20101525230 E.I.F.S., cement board sheathing, 1x8 fascia, R8 insulation, 6" metal
studs, 16" O.C., 2" EPS
9180 $11.38 $204,762.65
B2020 Exterior Windows $4.78 $85,950.67
B20202101100 Aluminum flush tube frame, for 1/4"glass,1‐3/4"x4", 5'x6' opening, no
intermediate horizontals
108 $0.19 $3,380.20
B20202201000 Glazing panel, insulating, 1/2" thick, 2 lites 1/8" float glass, clear 1512 $4.59 $82,570.47
B2030 Exterior Doors $2.24 $40,351.85
B20301106700 Door, aluminum & glass, without transom, bronze finish, hardware, 3'‐
0" x 7'‐0" opening
6.75 $1.73 $31,183.58
B20302203450 Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'‐0"
x 7'‐0" opening
2.25 $0.51 $9,168.27
B3010 Roof Coverings $11.59 $208,692.98
B30101203300 Roofing, single ply membrane, EPDM, 60 mils, fully adhered 18000 $3.42 $61,560.00
B30103202700 Insulation, rigid, roof deck, extruded polystyrene, 40 PSI compressive
strength, 4" thick, R20
18000 $6.90 $124,121.16
B30104201400 Roof edges, aluminum, duranodic, .050" thick, 6" face 600 $0.89 $15,983.76
B30106305100 Gravel stop, aluminum, extruded, 4", mill finish, .050" thick 600 $0.39 $7,028.06
B3020 Roof Openings $0.13 $2,342.94
B30202100300 Roof hatch, with curb, 1" fiberglass insulation, 2'‐6" x 3'‐0", galvanized
steel, 165 lbs
1 $0.13 $2,342.94
C Interiors 14.81% $17.75 $319,557.74
C1010 Partitions $2.11 $38,010.51
C10101265400 Metal partition, 5/8"fire rated gypsum board face, no base,3 ‐5/8" @
24" OC framing, same opposite face, no insulation
3000 $1.02 $18,442.23
Outlet Mall Redevelopment TIF District
Replacement Cost Report
Costs are derived from a building model with basic components.
Scope differences and market conditions can cause costs to vary significantly.
Outlet Mall TIF District
LHB Project No. 240070.00 Page 1 of 3
Replacement Cost Report
Parcel A2 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 63
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 46
C10101280700 Gypsum board, 1 face only, exterior sheathing, fire resistant, 5/8" 9180 $0.68 $12,282.57
C10101280960 Add for the following: taping and finishing 9180 $0.40 $7,285.71
C1020 Interior Doors $1.40 $25,115.06
C10201022600 Door, single leaf, kd steel frame, hollow metal, commercial quality,
flush, 3'‐0" x 7'‐0" x 1‐3/8"
15.75 $1.40 $25,115.06
C1030 Fittings $0.32 $5,843.55
C10301100460 Toilet partitions, cubicles, ceiling hung, stainless steel 2.25 $0.32 $5,843.55
C3010 Wall Finishes $1.34 $24,060.06
C30102300140 Painting, interior on plaster and drywall, walls & ceilings, roller work,
primer & 2 coats
5400 $0.37 $6,692.71
C30102300140 Painting, interior on plaster and drywall, walls & ceilings, roller work,
primer & 2 coats
9180 $0.63 $11,377.60
C30102301940 Ceramic tile, thin set, 4‐1/4" x 4‐1/4" 600 $0.33 $5,989.75
C3020 Floor Finishes $3.08 $55,377.54
C30204101600 Vinyl, composition tile, maximum 18000 $3.08 $55,377.54
C3030 Ceiling Finishes $9.51 $171,151.02
C30302107400 Acoustic ceilings, 3/4"mineral fiber, 12" x 12" tile, concealed 2" bar &
channel grid, suspended support
18000 $9.51 $171,151.02
D Services 36.47% $43.71 $786,853.85
D2010 Plumbing Fixtures $3.27 $58,793.18
D20101102000 Water closet, vitreous china, tank type, 2 piece close coupled 4.5 $0.46 $8,248.82
D20102102000 Urinal, vitreous china, wall hung 1 $0.10 $1,776.28
D20103101560 Lavatory w/trim, vanity top, PE on CI, 20" x 18" 4.5 $0.48 $8,639.10
D20104404340 Service sink w/trim, PE on CI,wall hung w/rim guard, 24" x 20" 4.5 $1.68 $30,326.40
D20108201880 Water cooler, electric, wall hung, dual height, 14.3 GPH 2.25 $0.54 $9,802.58
D2020 Domestic Water Distribution $1.42 $25,636.80
D20202502220 Gas fired water heater, commercial, 100< F rise, 500 MBH input, 480
GPH
1 $1.42 $25,636.80
D2040 Rain Water Drainage $1.80 $32,346.41
D20402104200 Roof drain, CI, soil,single hub, 4" diam, 10' high 11.25 $1.68 $30,291.75
D20402104240 Roof drain, CI, soil,single hub, 4" diam, for each additional foot add 45 $0.11 $2,054.66
D3050 Terminal & Package Units $9.97 $179,415.00
D30501502560 Rooftop, single zone, air conditioner, department stores, 10,000 SF,
29.17 ton
18000 $9.97 $179,415.00
D4010 Sprinklers $6.49 $116,833.32
D40104101080 Wet pipe sprinkler systems, steel, ordinary hazard, 1 floor, 10,000 SF 18000 $6.49 $116,833.32
D4020 Standpipes $2.03 $36,462.15
D40203101540 Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe, 1
floor
2.25 $2.03 $36,462.15
D5010 Electrical Service/Distribution $1.65 $29,615.43
D50101200320 Overhead service installation, includes breakers, metering, 20'
conduit & wire, 3 phase, 4 wire, 120/208 V, 400 A
1 $0.44 $7,876.95
D50102300320 Feeder installation 600 V, including RGS conduit and XHHW wire, 400
A
50 $0.36 $6,465.95
D50102400200 Switchgear installation, incl switchboard, panels & circuit breaker,
120/208 V, 3 phase, 400 A
1 $0.85 $15,272.53
D5020 Lighting and Branch Wiring $15.45 $278,116.70
D50201100440 Receptacles incl plate, box, conduit, wire, 8 per 1000 SF, .9 watts per
SF
18000 $3.66 $65,848.50
D50201350360 Miscellaneous power, 1.5 watts 18000 $0.54 $9,656.64
D50201400280 Central air conditioning power, 4 watts 23400 $1.07 $19,274.58
D50202100520 Fluorescent fixtures recess mounted in ceiling, 1.6 watt per SF, 40 FC,
10 fixtures @32watt per 1000 SF
22500 $10.19 $183,336.98
D5030 Communications and Security $1.65 $29,634.86
D50309100452 Communication and alarm systems, fire detection, addressable, 25
detectors, includes outlets, boxes, conduit and wire
0.81 $1.16 $20,939.96
D50309100460 Fire alarm command center, addressable without voice, excl. wire &
conduit
2.25 $0.48 $8,694.90
E Equipment & Furnishings 0.00% $0.00 $0.00
E1090 Other Equipment $0.00 $0.00
Outlet Mall TIF District
LHB Project No. 240070.00 Page 2 of 3
Replacement Cost Report
Parcel A2 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 64
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 47
F Special Construction 0.00% $0.00 $0.00
G Building Sitework 0.00% $0.00 $0.00
100% $119.86 $2,157,400.96
15.0% $17.98 $323,610.14
0.0% $0.00 $0.00
0.0% $0.00 $0.00
Total Building Cost $137.83 $2,481,011.10
Contractor Fees (General Conditions,Overhead,Profit)
Architectural Fees
SubTotal
User Fees
Outlet Mall TIF District
LHB Project No. 240070.00 Page 3 of 3
Replacement Cost Report
Parcel A2 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 65
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 48
Code Deficiency Cost Report
Parcel A2 - 6500 Labeaux Avenue Northeast, Albertville, Minnesota 55301 Building Name or Type
Parcel ID 101095001010 Albertville - Building Two
Code Related Cost Items Unit Cost Units Unit Quantity Total
Accessibility Items
No Deficiencies Observed -$
Structural Elements
-$
No Deficiencies Observed
Exiting
Sidewalks
Repair/replace damaged sidewalks to create a code required
unimpeded means for emergency egress 7.86$ SF 5,000 39,300.00$
Thresholds
Modify thresholds to comply with code for maximum height 100.00$ EA 10 1,000.00$
Emergency Notification System
Install a code required emergency notification system 0.48$ SF 18,000 8,640.00$
Fire Protection
Smoke Detectors
Install code compliant smoke detectors 1.16$ SF 18,000 20,880.00$
Building Sprinkler System
Repair/replace building sprinkler system to comply with code 1.49$ SF 18,000 26,820.00$
Fire Caulking
Install code required fire caulking 0.05$ SF 18,000 900.00$
Natural Gas Meters
Protect natural gas meters per code 1,000.00$ Lump 1 1,000.00$
Exterior Construction
Exterior Insulation and Finish System
Replace/repair damaged/cracked E.I.F.S. to prevent water intrusion
per code 7.85$ SF 1,000 7,850.00$
Roof Construction
Roofing Material
Remove and replace failed roofing system to prevent water intrusion
per code 11.59$ SF 18,000 208,620.00$
Outlet Mall Redevelopment TIF District
Outlet Mall TIF District
LHB Project No. 240070.00 Page 1 of 2
Code Deficiency Cost Report
Parcel A2 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 66
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 49
Code Related Cost Items Unit Cost Units Unit Quantity Total
Mechanical - Electrical
Mechanical
Install a code compliant HVAC system 9.97$ SF 18,000 179,460.00$
Electrical
Install a code compliant lighting system 10.19$ SF 18,000 183,420.00$
Total Code Improvements 677,890$
Outlet Mall TIF District
LHB Project No. 240070.00 Page 2 of 2
Code Deficiency Cost Report
Parcel A2 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 67
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 50
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Outlet Mall Redevelopment TIF District | Parcel A2
Inspection ReportAgenda Page 68
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 51
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Outlet Mall Redevelopment TIF District | Parcel A2
Inspection ReportAgenda Page 69
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 52
Square Foot Cost Estimate Report Date:1/26/2024
Estimate Name:Albertville ‐ Building Three
Building Type:Store, Retail with E.I.F.S. & Metal Studs / Steel Joists
Location:ALBERTVILLE, MN
Story Count:1
Story Height (L.F.):18
Floor Area (S.F.):53000
Labor Type:OPN
Basement Included:No
Data Release:Year 2024 Quarter 1
Cost Per Square Foot:$126.98
Building Cost:$6,729,757.37
Quantity % of Total Cost Per S.F. Cost
A Substructure 11.55% $12.76 $676,177.06
A1010 Standard Foundations $4.47 $236,840.98
A10101051560 Foundation wall, CIP, 4' wall height, direct chute, .148 CY/LF, 7.2 PLF,
12" thick
1250 $2.61 $138,117.50
A10101102700 Strip footing, concrete, reinforced, load 11.1 KLF, soil bearing capacity
6 KSF, 12" deep x 24" wide
1250 $1.42 $75,123.75
A10102107410 Spread footings, 3000 PSI concrete, load 100K, soil bearing capacity 6
KSF, 4' ‐ 6" square x 15" deep
39.75 $0.45 $23,599.73
A1030 Slab on Grade $7.86 $416,363.76
A10301202240 Slab on grade, 4" thick, non industrial, reinforced 53000 $7.86 $416,363.76
A2010 Basement Excavation $0.43 $22,972.32
A20101104560 Excavate and fill, 10,000 SF, 4' deep, sand, gravel, or common earth,
on site storage
53000 $0.43 $22,972.32
B Shell 35.13% $38.78 $2,055,555.13
B1020 Roof Construction $13.85 $734,076.50
B10201123300 Roof, steel joists, beams, 1.5" 22 ga metal deck, on columns, 25'x25'
bay, 20" deep, 40 PSF superimposed load, 60 PSF total load
53000 $11.65 $617,350.36
B10201123400 Roof, steel joists, beams, 1.5" 22 ga metal deck, on columns, 25'x25'
bay, 20" deep, 40 PSF superimposed load, 60 PSF total load, add for
column
53000 $2.20 $116,726.14
B2010 Exterior Walls $8.05 $426,588.86
B20101525230 E.I.F.S., cement board sheathing, 1x8 fascia, R8 insulation, 6" metal
studs, 16" O.C., 2" EPS
19125 $8.05 $426,588.86
B2020 Exterior Windows $3.38 $179,063.90
B20202101100 Aluminum flush tube frame, for 1/4"glass,1‐3/4"x4", 5'x6' opening, no
intermediate horizontals
225 $0.13 $7,042.08
B20202201000 Glazing panel, insulating, 1/2" thick, 2 lites 1/8" float glass, clear 3150 $3.25 $172,021.82
B2030 Exterior Doors $2.24 $118,813.78
B20301106700 Door, aluminum & glass, without transom, bronze finish, hardware, 3'‐
0" x 7'‐0" opening
19.88 $1.73 $91,818.33
B20302203450 Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'‐0"
x 7'‐0" opening
6.62 $0.51 $26,995.45
B3010 Roof Coverings $11.22 $594,669.15
B30101203300 Roofing, single ply membrane, EPDM, 60 mils, fully adhered 53000 $3.42 $181,260.00
B30103202700 Insulation, rigid, roof deck, extruded polystyrene, 40 PSI compressive
strength, 4" thick, R20
53000 $6.90 $365,467.86
B30104201400 Roof edges, aluminum, duranodic, .050" thick, 6" face 1250 $0.63 $33,299.50
B30106305100 Gravel stop, aluminum, extruded, 4", mill finish, .050" thick 1250 $0.28 $14,641.79
B3020 Roof Openings $0.04 $2,342.94
B30202100300 Roof hatch, with curb, 1" fiberglass insulation, 2'‐6" x 3'‐0", galvanized
steel, 165 lbs
1 $0.04 $2,342.94
C Interiors 15.62% $17.25 $914,272.11
C1010 Partitions $1.79 $95,069.36
C10101265400 Metal partition, 5/8"fire rated gypsum board face, no base,3 ‐5/8" @
24" OC framing, same opposite face, no insulation
8833.33 $1.02 $54,302.12
Outlet Mall Redevelopment TIF District
Replacement Cost Report
Costs are derived from a building model with basic components.
Scope differences and market conditions can cause costs to vary significantly.
Outlet Mall TIF District
LHB Project No. 240070.00 Page 1 of 3
Replacement Cost Report
Parcel A3 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 70
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 53
C10101280700 Gypsum board, 1 face only, exterior sheathing, fire resistant, 5/8" 19125 $0.48 $25,588.68
C10101280960 Add for the following: taping and finishing 19125 $0.29 $15,178.56
C1020 Interior Doors $1.40 $73,949.89
C10201022600 Door, single leaf, kd steel frame, hollow metal, commercial quality,
flush, 3'‐0" x 7'‐0" x 1‐3/8"
46.37 $1.40 $73,949.89
C1030 Fittings $0.32 $17,206.00
C10301100460 Toilet partitions, cubicles, ceiling hung, stainless steel 6.62 $0.32 $17,206.00
C3010 Wall Finishes $1.15 $61,046.10
C30102300140 Painting, interior on plaster and drywall, walls & ceilings, roller work,
primer & 2 coats
15900 $0.37 $19,706.30
C30102300140 Painting, interior on plaster and drywall, walls & ceilings, roller work,
primer & 2 coats
19125 $0.45 $23,703.33
C30102301940 Ceramic tile, thin set, 4‐1/4" x 4‐1/4" 1766.67 $0.33 $17,636.47
C3020 Floor Finishes $3.08 $163,056.09
C30204101600 Vinyl, composition tile, maximum 53000 $3.08 $163,056.09
C3030 Ceiling Finishes $9.51 $503,944.67
C30302107400 Acoustic ceilings, 3/4"mineral fiber, 12" x 12" tile, concealed 2" bar &
channel grid, suspended support
53000 $9.51 $503,944.67
D Services 37.70% $41.62 $2,205,958.63
D2010 Plumbing Fixtures $3.20 $169,659.35
D20101102000 Water closet, vitreous china, tank type, 2 piece close coupled 13.25 $0.46 $24,288.18
D20102102000 Urinal, vitreous china, wall hung 1 $0.03 $1,776.28
D20103101560 Lavatory w/trim, vanity top, PE on CI, 20" x 18" 13.25 $0.48 $25,437.35
D20104404340 Service sink w/trim, PE on CI,wall hung w/rim guard, 24" x 20" 13.25 $1.68 $89,294.40
D20108201880 Water cooler, electric, wall hung, dual height, 14.3 GPH 6.62 $0.54 $28,863.14
D2020 Domestic Water Distribution $0.48 $25,636.80
D20202502220 Gas fired water heater, commercial, 100< F rise, 500 MBH input, 480
GPH
1 $0.48 $25,636.80
D2040 Rain Water Drainage $1.80 $95,242.20
D20402104200 Roof drain, CI, soil,single hub, 4" diam, 10' high 33.12 $1.68 $89,192.38
D20402104240 Roof drain, CI, soil,single hub, 4" diam, for each additional foot add 132.5 $0.11 $6,049.82
D3050 Terminal & Package Units $9.97 $528,277.50
D30501502560 Rooftop, single zone, air conditioner, department stores, 10,000 SF,
29.17 ton
53000 $9.97 $528,277.50
D4010 Sprinklers $6.49 $344,009.22
D40104101080 Wet pipe sprinkler systems, steel, ordinary hazard, 1 floor, 10,000 SF 53000 $6.49 $344,009.22
D4020 Standpipes $2.03 $107,360.78
D40203101540 Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe, 1
floor
6.62 $2.03 $107,360.78
D5010 Electrical Service/Distribution $0.56 $29,615.43
D50101200320 Overhead service installation, includes breakers, metering, 20'
conduit & wire, 3 phase, 4 wire, 120/208 V, 400 A
1 $0.15 $7,876.95
D50102300320 Feeder installation 600 V, including RGS conduit and XHHW wire, 400
A
50 $0.12 $6,465.95
D50102400200 Switchgear installation, incl switchboard, panels & circuit breaker,
120/208 V, 3 phase, 400 A
1 $0.29 $15,272.53
D5020 Lighting and Branch Wiring $15.45 $818,899.16
D50201100440 Receptacles incl plate, box, conduit, wire, 8 per 1000 SF, .9 watts per
SF
53000 $3.66 $193,887.25
D50201350360 Miscellaneous power, 1.5 watts 53000 $0.54 $28,433.44
D50201400280 Central air conditioning power, 4 watts 68900 $1.07 $56,752.93
D50202100520 Fluorescent fixtures recess mounted in ceiling, 1.6 watt per SF, 40 FC,
10 fixtures @32watt per 1000 SF
66250 $10.19 $539,825.54
D5030 Communications and Security $1.65 $87,258.19
D50309100452 Communication and alarm systems, fire detection, addressable, 25
detectors, includes outlets, boxes, conduit and wire
2.38 $1.16 $61,656.54
D50309100460 Fire alarm command center, addressable without voice, excl. wire &
conduit
6.62 $0.48 $25,601.65
E Equipment & Furnishings 0.00% $0.00 $0.00
E1090 Other Equipment $0.00 $0.00
Outlet Mall TIF District
LHB Project No. 240070.00 Page 2 of 3
Replacement Cost Report
Parcel A3 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 71
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 54
F Special Construction 0.00% $0.00 $0.00
G Building Sitework 0.00% $0.00 $0.00
100% $110.41 $5,851,962.93
15.0% $16.56 $877,794.44
0.0% $0.00 $0.00
0.0% $0.00 $0.00
Total Building Cost $126.98 $6,729,757.37
Contractor Fees (General Conditions,Overhead,Profit)
Architectural Fees
SubTotal
User Fees
Outlet Mall TIF District
LHB Project No. 240070.00 Page 3 of 3
Replacement Cost Report
Parcel A3 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 72
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 55
Code Deficiency Cost Report
Parcel A3 - 6500 Labeaux Avenue Northeast, Albertville, Minnesota 55301 Building Name or Type
Parcel ID 101095001010 Albertville - Building Three
Code Related Cost Items Unit Cost Units Unit Quantity Total
Accessibility Items
No Deficiencies Observed -$
Structural Elements
Metal Stud Columns
Replace damaged/rusting metal stud columns to protect façade for
code required safety issues 8.05$ SF 2,500 20,125.00$
Exiting
Sidewalks
Repair/replace damaged sidewalks to create a code required
unimpeded means for emergency egress 7.86$ SF 10,000 78,600.00$
Thresholds
Modify thresholds to comply with code for maximum height 200.00$ EA 36 7,200.00$
Emergency Notification System
Install a code required emergency notification system 0.48$ SF 53,000 25,440.00$
Fire Protection
Smoke Detectors
Install code compliant smoke detectors 1.16$ SF 2,500 2,900.00$
Building Sprinkler System
Repair/replace building sprinkler system to comply with code 1.49$ SF 53,000 78,970.00$
Fire Caulking
Install code required fire caulking 0.05$ SF 53,000 2,650.00$
Exterior Construction
Windows
Replace damaged windows to prevent water intrusion per code 3.17$ SF 2,000 6,340.00$
Exterior Insulation and Finish System
Replace/repair damaged/cracked E.I.F.S. to prevent water intrusion
per code 8.05$ SF 4,000 32,200.00$
Roof Construction
Roofing Material
Remove and replace failed roofing system to prevent water intrusion
per code 11.22$ SF 53,000 594,660.00$
Outlet Mall Redevelopment TIF District
Outlet Mall TIF District
LHB Project No. 240070.00 Page 1 of 2
Code Deficiency Cost Report
Parcel A3 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 73
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 56
Code Related Cost Items Unit Cost Units Unit Quantity Total
Mechanical - Electrical
Mechanical
Install a code compliant HVAC system 9.97$ SF 53,000 528,410.00$
Electrical
Install a code compliant lighting system 10.19$ SF 53,000 540,070.00$
Total Code Improvements 1,917,565$
Outlet Mall TIF District
LHB Project No. 240070.00 Page 2 of 2
Code Deficiency Cost Report
Parcel A3 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 74
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 57
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Outlet Mall Redevelopment TIF District | Parcel A3
Inspection ReportAgenda Page 75
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Outlet Mall Redevelopment TIF District | Parcel A3
Inspection ReportAgenda Page 76
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Outlet Mall Redevelopment TIF District | Parcel A3
Inspection ReportAgenda Page 77
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 60
Square Foot Cost Estimate Report Date:1/26/2024
Estimate Name:Albertville ‐ Building Four
Building Type:Store, Retail with E.I.F.S. & Metal Studs / Steel Joists
Location:ALBERTVILLE, MN
Story Count:1
Story Height (L.F.):18
Floor Area (S.F.):22500
Labor Type:OPN
Basement Included:No
Data Release:Year 2024 Quarter 1
Cost Per Square Foot:$133.27
Building Cost:$2,998,514.43
Quantity % of Total Cost Per S.F. Cost
A Substructure 11.79% $13.66 $307,414.81
A1010 Standard Foundations $5.37 $120,904.21
A10101051560 Foundation wall, CIP, 4' wall height, direct chute, .148 CY/LF, 7.2 PLF,
12" thick
650 $3.19 $71,821.10
A10101102700 Strip footing, concrete, reinforced, load 11.1 KLF, soil bearing capacity
6 KSF, 12" deep x 24" wide
650 $1.74 $39,064.35
A10102107410 Spread footings, 3000 PSI concrete, load 100K, soil bearing capacity 6
KSF, 4' ‐ 6" square x 15" deep
16.88 $0.45 $10,018.76
A1030 Slab on Grade $7.86 $176,758.20
A10301202240 Slab on grade, 4" thick, non industrial, reinforced 22500 $7.86 $176,758.20
A2010 Basement Excavation $0.43 $9,752.40
A20101104560 Excavate and fill, 10,000 SF, 4' deep, sand, gravel, or common earth,
on site storage
22500 $0.43 $9,752.40
B Shell 35.91% $41.62 $936,389.35
B1020 Roof Construction $13.85 $311,636.25
B10201123300 Roof, steel joists, beams, 1.5" 22 ga metal deck, on columns, 25'x25'
bay, 20" deep, 40 PSF superimposed load, 60 PSF total load
22500 $11.65 $262,082.70
B10201123400 Roof, steel joists, beams, 1.5" 22 ga metal deck, on columns, 25'x25'
bay, 20" deep, 40 PSF superimposed load, 60 PSF total load, add for
column
22500 $2.20 $49,553.55
B2010 Exterior Walls $9.86 $221,826.21
B20101525230 E.I.F.S., cement board sheathing, 1x8 fascia, R8 insulation, 6" metal
studs, 16" O.C., 2" EPS
9945 $9.86 $221,826.21
B2020 Exterior Windows $4.14 $93,113.22
B20202101100 Aluminum flush tube frame, for 1/4"glass,1‐3/4"x4", 5'x6' opening, no
intermediate horizontals
117 $0.16 $3,661.88
B20202201000 Glazing panel, insulating, 1/2" thick, 2 lites 1/8" float glass, clear 1638 $3.98 $89,451.34
B2030 Exterior Doors $2.24 $50,439.81
B20301106700 Door, aluminum & glass, without transom, bronze finish, hardware, 3'‐
0" x 7'‐0" opening
8.44 $1.73 $38,979.48
B20302203450 Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'‐0"
x 7'‐0" opening
2.81 $0.51 $11,460.33
B3010 Roof Coverings $11.42 $257,030.92
B30101203300 Roofing, single ply membrane, EPDM, 60 mils, fully adhered 22500 $3.42 $76,950.00
B30103202700 Insulation, rigid, roof deck, extruded polystyrene, 40 PSI compressive
strength, 4" thick, R20
22500 $6.90 $155,151.45
B30104201400 Roof edges, aluminum, duranodic, .050" thick, 6" face 650 $0.77 $17,315.74
B30106305100 Gravel stop, aluminum, extruded, 4", mill finish, .050" thick 650 $0.34 $7,613.73
B3020 Roof Openings $0.10 $2,342.94
B30202100300 Roof hatch, with curb, 1" fiberglass insulation, 2'‐6" x 3'‐0", galvanized
steel, 165 lbs
1 $0.10 $2,342.94
C Interiors 15.12% $17.52 $394,289.50
C1010 Partitions $1.97 $44,251.75
C10101265400 Metal partition, 5/8"fire rated gypsum board face, no base,3 ‐5/8" @
24" OC framing, same opposite face, no insulation
3750 $1.02 $23,052.79
Outlet Mall Redevelopment TIF District
Replacement Cost Report
Costs are derived from a building model with basic components.
Scope differences and market conditions can cause costs to vary significantly.
Outlet Mall TIF District
LHB Project No. 240070.00 Page 1 of 3
Replacement Cost Report
Pacel A4 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 78
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 61
C10101280700 Gypsum board, 1 face only, exterior sheathing, fire resistant, 5/8" 9945 $0.59 $13,306.11
C10101280960 Add for the following: taping and finishing 9945 $0.35 $7,892.85
C1020 Interior Doors $1.40 $31,393.82
C10201022600 Door, single leaf, kd steel frame, hollow metal, commercial quality,
flush, 3'‐0" x 7'‐0" x 1‐3/8"
19.69 $1.40 $31,393.82
C1030 Fittings $0.32 $7,304.43
C10301100460 Toilet partitions, cubicles, ceiling hung, stainless steel 2.81 $0.32 $7,304.43
C3010 Wall Finishes $1.25 $28,178.79
C30102300140 Painting, interior on plaster and drywall, walls & ceilings, roller work,
primer & 2 coats
6750 $0.37 $8,365.88
C30102300140 Painting, interior on plaster and drywall, walls & ceilings, roller work,
primer & 2 coats
9945 $0.55 $12,325.73
C30102301940 Ceramic tile, thin set, 4‐1/4" x 4‐1/4" 750 $0.33 $7,487.18
C3020 Floor Finishes $3.08 $69,221.93
C30204101600 Vinyl, composition tile, maximum 22500 $3.08 $69,221.93
C3030 Ceiling Finishes $9.51 $213,938.78
C30302107400 Acoustic ceilings, 3/4"mineral fiber, 12" x 12" tile, concealed 2" bar &
channel grid, suspended support
22500 $9.51 $213,938.78
D Services 37.18% $43.08 $969,310.19
D2010 Plumbing Fixtures $3.25 $73,047.40
D20101102000 Water closet, vitreous china, tank type, 2 piece close coupled 5.62 $0.46 $10,311.02
D20102102000 Urinal, vitreous china, wall hung 1 $0.08 $1,776.28
D20103101560 Lavatory w/trim, vanity top, PE on CI, 20" x 18" 5.62 $0.48 $10,798.88
D20104404340 Service sink w/trim, PE on CI,wall hung w/rim guard, 24" x 20" 5.62 $1.68 $37,908.00
D20108201880 Water cooler, electric, wall hung, dual height, 14.3 GPH 2.81 $0.54 $12,253.22
D2020 Domestic Water Distribution $1.14 $25,636.80
D20202502220 Gas fired water heater, commercial, 100< F rise, 500 MBH input, 480
GPH
1 $1.14 $25,636.80
D2040 Rain Water Drainage $1.80 $40,433.01
D20402104200 Roof drain, CI, soil,single hub, 4" diam, 10' high 14.06 $1.68 $37,864.69
D20402104240 Roof drain, CI, soil,single hub, 4" diam, for each additional foot add 56.25 $0.11 $2,568.32
D3050 Terminal & Package Units $9.97 $224,268.75
D30501502560 Rooftop, single zone, air conditioner, department stores, 10,000 SF,
29.17 ton
22500 $9.97 $224,268.75
D4010 Sprinklers $6.49 $146,041.65
D40104101080 Wet pipe sprinkler systems, steel, ordinary hazard, 1 floor, 10,000 SF 22500 $6.49 $146,041.65
D4020 Standpipes $2.03 $45,577.69
D40203101540 Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe, 1
floor
2.81 $2.03 $45,577.69
D5010 Electrical Service/Distribution $1.32 $29,615.43
D50101200320 Overhead service installation, includes breakers, metering, 20'
conduit & wire, 3 phase, 4 wire, 120/208 V, 400 A
1 $0.35 $7,876.95
D50102300320 Feeder installation 600 V, including RGS conduit and XHHW wire, 400
A
50 $0.29 $6,465.95
D50102400200 Switchgear installation, incl switchboard, panels & circuit breaker,
120/208 V, 3 phase, 400 A
1 $0.68 $15,272.53
D5020 Lighting and Branch Wiring $15.45 $347,645.88
D50201100440 Receptacles incl plate, box, conduit, wire, 8 per 1000 SF, .9 watts per
SF
22500 $3.66 $82,310.63
D50201350360 Miscellaneous power, 1.5 watts 22500 $0.54 $12,070.80
D50201400280 Central air conditioning power, 4 watts 29250 $1.07 $24,093.23
D50202100520 Fluorescent fixtures recess mounted in ceiling, 1.6 watt per SF, 40 FC,
10 fixtures @32watt per 1000 SF
28125 $10.19 $229,171.22
D5030 Communications and Security $1.65 $37,043.58
D50309100452 Communication and alarm systems, fire detection, addressable, 25
detectors, includes outlets, boxes, conduit and wire
1.01 $1.16 $26,174.95
D50309100460 Fire alarm command center, addressable without voice, excl. wire &
conduit
2.81 $0.48 $10,868.63
E Equipment & Furnishings 0.00% $0.00 $0.00
E1090 Other Equipment $0.00 $0.00
Outlet Mall TIF District
LHB Project No. 240070.00 Page 2 of 3
Replacement Cost Report
Pacel A4 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 79
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 62
F Special Construction 0.00% $0.00 $0.00
G Building Sitework 0.00% $0.00 $0.00
100% $115.88 $2,607,403.85
15.0% $17.38 $391,110.58
0.0% $0.00 $0.00
0.0% $0.00 $0.00
Total Building Cost $133.27 $2,998,514.43
Contractor Fees (General Conditions,Overhead,Profit)
Architectural Fees
SubTotal
User Fees
Outlet Mall TIF District
LHB Project No. 240070.00 Page 3 of 3
Replacement Cost Report
Pacel A4 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 80
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 63
Code Deficiency Cost Report
Parcel A4 - 6500 Labeaux Avenue Northeast, Albertville, Minnesota 55301 Building Name or Type
Parcel ID 101095001010 Albertville - Building Four
Code Related Cost Items Unit Cost Units Unit Quantity Total
Accessibility Items
No Deficiencies Observed -$
Structural Elements
No Deficiencies Observed -$
Exiting
Sidewalks
Repair/replace damaged sidewalks to create a code required
unimpeded means for emergency egress 7.86$ SF 5,000 39,300.00$
Thresholds
Modify thresholds to comply with code for maximum height 200.00$ EA 20 4,000.00$
Emergency Notification System
Install a code required emergency notification system 0.48$ SF 22,500 10,800.00$
Fire Protection
Smoke Detectors
Install code compliant smoke detectors 1.16$ SF 22,500 26,100.00$
Building Sprinkler System
Repair/replace building sprinkler system to comply with code 1.49$ SF 22,500 33,525.00$
Fire Caulking
Install code required fire caulking 0.05$ SF 22,500 1,125.00$
Exterior Construction
Windows
Replace damaged windows to prevent water intrusion per code 3.17$ SF 1,000 3,170.00$
Exterior Insulation and Finish System
Replace/repair damaged/cracked E.I.F.S. to prevent water intrusion
per code 9.86$ SF 1,000 9,860.00$
Roof Construction
Roofing Material
Remove and replace failed roofing system to prevent water intrusion
per code 11.42$ SF 22,500 256,950.00$
Outlet Mall Redevelopment TIF District
Outlet Mall TIF District
LHB Project No. 240070.00 Page 1 of 2
Code Deficiency Cost Report
Parcel A4 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 81
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 64
Code Related Cost Items Unit Cost Units Unit Quantity Total
Mechanical - Electrical
Mechanical
Install a code compliant HVAC system 9.97$ SF 22,500 224,325.00$
Electrical
Install a code compliant lighting system 10.19$ SF 22,500 229,275.00$
Total Code Improvements 838,430$
Outlet Mall TIF District
LHB Project No. 240070.00 Page 2 of 2
Code Deficiency Cost Report
Parcel A4 - 6500 Labeaux Ave NE, Albertville, MN 55301 Inspection ReportAgenda Page 82
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24
DRAFT FOR PUBLIC HEARING FEBRUARY 17, 2026 65
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Inspection ReportAgenda Page 83
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Outlet Mall Redevelopment TIF District | Parcel A4
Inspection ReportAgenda Page 84
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Prepared by:
701 Washington Avenue North, Suite 200, Minneapolis, MN 55401
LHBcorp.com
LHB Project No. 240070.00 Inspection ReportAgenda Page 85
197895306v1
EXTRACT OF MINUTES OF MEETING
OF THE CITY COUNCIL OF THE
CITY OF ALBERTVILLE, MINNESOTA
HELD: FEBRUARY 17, 2026
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 February 17, 2026 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. 24 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. 2026-07
RESOLUTION ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 24
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. 24 (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 86
197895306v1
City of Albertville
Resolution No. 2026-07
Meeting of February 17, 2026
Page 2
D. WHEREAS, LEP Holdings LLC (the “Developer”) has requested the City assist
with the financing of certain costs incurred in connection with the proposed rehabilitation of an
existing commercial building, the demolition of three existing buildings, and the construction of
up to 30,000 additional square feet commercial-retail space, new infrastructure, site
improvements and parking (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. 24. There is hereby established in the City
within the Development District, Tax Increment Financing District No. 24, a redevelopment 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 redevelopment district as defined in Minnesota
Statutes, Section 469.174, Subd. 10; 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
Agenda Page 87
197895306v1
City of Albertville
Resolution No. 2026-07
Meeting of February 17, 2026
Page 3
District by private enterprise. The reasons supporting this finding are set forth in Section
2.02.5 of the TIF Plan.
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.
Agenda Page 88
197895306v1
City of Albertville
Resolution No. 2026-07
Meeting of February 17, 2026
Page 4
(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
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.
Agenda Page 89
197895306v1
City of Albertville
Resolution No. 2026-07
Meeting of February 17, 2026
Page 5
(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
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 17th day of February 2026.
_____________________________________
Jillian Hendrickson, Mayor
ATTEST:
_______________________________
Adam Nafstad, City Administrator
Agenda Page 90
197895306v1
City of Albertville
Resolution No. 2026-07
Meeting of February 17, 2026
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. 24
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 17th day of February, 2026.
_____________________________
Adam Nafstad, City Administrator
Agenda Page 91
TIF DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF ALBERTVILLE, MINNESOTA
AND
LEP HOLDINGS LLC
This document drafted by: Taft Stettinius & Hollister LLP (RMS)
2200 IDS Center
80 South 8th Street
Minneapolis, Minnesota 55402
Agenda Page 92
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 Development Property; 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 Real Property Taxes ................................................................................... 7
Section 3.5 Prohibition Against Transfer of Project and Assignment of
Agreement .................................................................................................. 8
Section 3.6 Assignment of Agreement and TIF Note ................................................... 8
ARTICLE IV EVENTS OF DEFAULT ........................................................................................ 9
Section 4.1 Events of Default Defined ......................................................................... 9
Section 4.2 Remedies on Default .................................................................................. 9
Section 4.3 No Remedy Exclusive.............................................................................. 10
Section 4.4 No Implied Waiver .................................................................................. 10
Section 4.5 Agreement to Pay Attorney’s Fees and Expenses ................................... 10
Section 4.6 Indemnification of City. ........................................................................... 10
ARTICLE V DEVELOPER’S OPTION TO TERMINATE AGREEMENT ............................. 12
Section 5.1 The Developer’s Option to Terminate ..................................................... 12
Section 5.2 Action to Terminate ................................................................................. 12
Section 5.3 Effect of Termination ............................................................................... 12
ARTICLE VI ADDITIONAL PROVISIONS ............................................................................. 13
Section 6.1 Restrictions on Use .................................................................................. 13
Section 6.2 Conflicts of Interest.................................................................................. 13
Section 6.3 Titles of Articles and Sections ................................................................. 13
Section 6.4 Notices and Demands .............................................................................. 13
Section 6.5 Counterparts ............................................................................................. 14
Agenda Page 93
TABLE OF CONTENTS
(continued)
Page 2
-ii-
Section 6.6 Law Governing ........................................................................................ 14
Section 6.7 Expiration ................................................................................................. 14
Section 6.8 Provisions Surviving Rescission or Expiration........................................ 14
EXHIBIT A DESCRIPTION OF DEVELOPMENT PROPERTY ............................................. 1
EXHIBIT B FORM OF TIF NOTE .............................................................................................. 1
EXHIBIT C BUILDINGS ON DEVELOPMENT PROPERTY.................................................. 1
Agenda Page 94
1
TIF DEVELOPMENT AGREEMENT
THIS TIF DEVELOPMENT AGREEMENT, made as of the 17th day of February, 2026,
by and between the City of Albertville, Minnesota (the “City”), a municipal corporation existing
under the laws of the State of Minnesota and LEP Holdings LLC, a Minnesota limited liability
company (the “Developer”),
WITNESSETH:
WHEREAS, pursuant to Minnesota Statutes, Section 469.124 through 469.133, as
amended, 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 has heretofore established
the Development District, Tax Increment Financing (Redevelopment) District No. 1-24 (Outlet
Mall East Side Redevelopment) (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 Tax Increment District and 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 because the Developer's investment in
the purchase of the site and in site preparation is at least 70 percent of the assessor's current year's
estimated market value;
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 95
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 TIF 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;
County means Wright County, Minnesota;
Developer means LEP Holdings LLC, a Minnesota limited liability company, 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;
Land Use Development Agreement means that certain Development Agreement, dated on
a date hereafter, between the City and the Developer, relating to the construction of the Project;
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 96
3
Project means the rehabilitation of Building 3 as identified on Exhibit C, the demolition of
Buildings 1, 2, and 4 as identified on Exhibit C, [and the construction of up to 30,000 additional
square feet commercial-retail space, new infrastructure, site improvements and parking, all 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 (Redevelopment) District No. 1-
24 (Outlet Mall East Side Redevelopment) located within the Development District, a description
of which is set forth in the Tax Increment Financing Plan, which was qualified as a redevelopment
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 February 17, 2026, 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 (Outlet Mall East Side Redevelopment)
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 97
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) The Tax Increment District is a “redevelopment district” within the meaning of
Minnesota Statutes, Section 469.174, Subdivision 10, 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 acquisition of the Development Property 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, operating agreement, or other organizational
document 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 Land Use Development 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 98
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) Rehabilitation of Building 3 as identified on Exhibit C shall begin by June 30, 2026,
and shall be substantially complete by December 31, 2026; demolition of Buildings 1, 2, and 4 as
identified on Exhibit C shall be completed by December 31, 2026, and construction of at least
15,000 square feet of additional new construction shall be substantially completed by
December 31, 2030, all as further described in the Land Use Development Agreement, subject to
Unavoidable Delays and other adjustments consistent with the Land Use Development Agreement.
(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 acquisition of the Development
Property as provided in Article III.
(10) The Developer covenants that the Project shall be operated in such a way that it
shall be subject to property tax, and covenants that it shall not lease or transfer any portion of the
Project to a business or organization that is not required to pay property tax based on its use of the
Development Property.
Agenda Page 99
6
ARTICLE III
UNDERTAKINGS BY DEVELOPER AND CITY
Section 3.1 Development Property; Legal and Administrative Expenses.
(1) The parties agree that the acquisition of the Development Property is essential to
the successful completion of the Project. The costs of the acquisition of the Development Property
and shall be paid by the Developer. The City shall reimburse the Developer for the lesser of (a)
$2,083,000, or (b) the actual costs of the acquisition of the Development Property relating to 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(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(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
(a) demonstrated in writing to the reasonable satisfaction of the City that (i) the Developer has
incurred and paid all costs of the acquisition of the Development Property, (ii) demolition of
Buildings 1, 2, and 4 has been completed in accordance with the Land Use Development
Agreement by the dates required in Section 2.2(7) of this Agreement, and (iii) rehabilitation of
Building 1 has been completed in accordance with the Land Use Development Agreement by the
dates required in Section 2.2(7) of this Agreement, and (b) submitted a settlement statement
showing the cost of acquisition of the Development Property 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 and the interest thereon 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 and interest outstanding on the TIF Note, the Tax Increments
received by the City during the preceding six months. All such payments shall be applied first to
accrued interest and then to reduce the principal of the TIF Note.
Agenda Page 100
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(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
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 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
(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.
Agenda Page 101
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(4) It will not seek a reduction in the market value as determined by the Wright County
Assessor of the Project or other facilities, if any, that it constructs on the Development Property,
pursuant to the provisions of this Agreement, for so long as the TIF Note remains outstanding.
Section 3.5 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.
(3) Any proposed transferee of the Project or any portion thereof must be an entity that
is required to pay property tax based on the proposed use of the Development Property.
Section 3.6 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.
Agenda Page 102
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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 103
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(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 104
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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
“redevelopment district” under Section 469.174, Subdivision 10, 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 105
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ARTICLE V
DEVELOPER’S OPTION TO TERMINATE AGREEMENT
Section 5.1 The Developer’s Option to Terminate. This Agreement may be terminated
by the 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 106
13
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 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:
LEP Holdings LLC
Attention: [developer contact]
[developer address]
with a copy to:
[developer counsel -if desired]
Agenda Page 107
14
(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, unless
earlier terminated or rescinded in accordance with its terms.
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.
Agenda Page 108
15
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.
CITY OF ALBERTVILLE, MINNESOTA
By ____________________________________
Its Mayor
By ____________________________________
Its Administrator
STATE OF MINNESOTA )
) ss
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this ___ day of ________, 2026,
by _______________, the Mayor and ______________, the Administrator of the City of
Albertville, Minnesota on behalf of said City.
_______________________________________
Notary Public
This is a signature page to the Development Agreement by and between the City of Albertville,
Minnesota and LEP Holdings LLC
Agenda Page 109
16
LEP HOLDINGS LLC
By ____________________________________
Its ____________________________________
STATE OF MINNESOTA )
) ss
COUNTY OF ___________ )
The foregoing instrument was acknowledged before me this ___ day of ________, 2026,
by _______________, the _________ of LEP Holdings LLC, a Minnesota limited liability
company on behalf of said company.
_______________________________________
Notary Public
This is a signature page to the Development Agreement by and between the City of Albertville,
Minnesota and LEP Holdings LLC
Agenda Page 110
A-1
EXHIBIT A
DESCRIPTION OF DEVELOPMENT PROPERTY
Parcel: 101095001010
Agenda Page 111
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
(OUTLET MALL EAST SIDE REDEVELOPMENT)
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 LEP Holdings 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 $2,083,000 as provided in that certain Development Agreement, dated as of
February 17, 2026, 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 (Redevelopment) District No. 1-24 (Outlet Mall East
Side Redevelopment) (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
Agenda Page 112
B-2
Developer shall have terminated the Development Agreement under Article V thereof, the date the
Tax Increment District is 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 113
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 SETTLEMENT STATEMENTS FOR ACQUISITION OF
THE DEVELOPMENT PROPERTY ARE GIVEN TO THE CITY AND THE
DEMOLITION AND REDEVELOPMENT CRITERIA SETFORTH IN SECTION 3.3(1)
ARE COMPLETED BY THE DEVELOPER.
Agenda Page 114
B-4
CERTIFICATION OF REGISTRATION
It is hereby certified that the foregoing Note was registered in the name of LEP Holdings
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
LEP Holdings LLC
[Developer Address]
____________
___________________
_________________________
___________________
_________________________
___________________
_________________________
___________________
_________________________
Agenda Page 115
C-1
EXHIBIT C
COMPLIANCE CERTIFICATE
Agenda Page 116
Mayor and Council Communication
February 17, 2026
SUBJECT: PLANNING – LEUER CONCEPT REVIEW
RECOMMENDATION: Review the concept and provide feedback to the applicant and staff.
BACKGROUND: The Council provided feedback on a commercial concept in August 2025 for
LaBeaux Commercial Centre located north of this subject site. That project is proceeding and
applications are anticipated this month. With that concept LaCenter would be extended to the
Leuer site. The concept is included for reference.
The property owner is interested in developing the vacant parcel on the east side of LaBeaux,
south of the future LaCentre Commercial Development and 53rd Street intersection. The site
consists of one parcel of 21.29 acres and is zoned B-2 Limited Business and R-1 Single Family
Residential. The proposed development consists of the following:
• Five commercial lots
o Three of the lots indicate drive thru’s
• A high density residential lot
o 81 Unit Apartment on 3.48 acres (similar to Kington across LaBeaux)
o 82 underground and 88 surface parking stalls
o Play area, dog run, sport court
• Three outlots
o Outlot A is for wetland and stormwater
o Outlots B & C are for future access to CSAH 18 (50th Street)
• Continuation of LaCentre Avenue (street and trail) through the development from north
• Stormwater pond to serve entire development
Agenda Page 117
Mayor and Council Communication – February 17, 2026
Planning – Leuer Concept Plan Page 2 of 2
KEY ISSUES:
• The property is zoned B-2 Limited Business with a strip of R-1 Single Family on the east
side.
• B-2 is intended to provide for low intensity, retail or service outlets. The uses allowed in
this district are to provide goods and services on a limited community market scale and
located in areas which are well served by collector or arterial streets at the edge of
residential districts. Many of the permitted uses are general retail, office, and personal
services. Conditional uses include daycares, veterinary clinics, restaurants without drive-
through, brew pubs, and mixed-use commercial/residential buildings.
• The property would need to be rezoned to B-2A or B-3 and/or PUD to accommodate
restaurants with drive through or auto repair type use. PUD would allow for better buffer
and regulation of signage (Comprehensive Sign Plan) to be limited to ground
monuments.
• The R-1 designation was likely a long standing designation to serve as a buffer to the
residential to the east. It would be challenging to plat single family lots within that area
alone.
• There will be significant traffic impacts to the area with this proposed development and
the LaCentre Commercial concept.
• Multi-family (apartments) are not consistent with the long-range land use plan
designation of commercial/low density residential or the commercial and single family
zoning.
• There are two homes abutting this on the south side. Adjacent residential to the east is
buffered by existing wetland and vegetation.
POLICY/PRACTICES CONSIDERATIONS: The development requires a legislative decision
by the Council to change the zoning and the land use plan. The Council has the most discretion
when rezoning properties. The City Council does not have to accept auto-oriented commercial
uses or multi-family uses where not intended. A PUD as a rezoning tool would provide
flexibility to the developer where needed while providing benefit the development/neighborhood
that would not exist under straight up B-3 rezoning. Lot standards and performance standards
will be reviewed with a preliminary plat and rezoning application.
FINANCIAL CONSIDERATIONS: The proposed development will add tax base and services
to the City.
LEGAL CONSIDERATIONS: The City Attorney has not reviewed the concept. A rezoning,
preliminary plat, final plat, and developer agreement will be required.
Responsible Person: Jenni Faulkner, City Planner @ Bolton-Menk
Submitted Through: Adam Nafstad, City Administrator-PWD
Attachments:
• Conceptual site layout
• Java 2 La Center Concept (to the north)
Agenda Page 118
STORM WATER
MANAGEMENT
BASIN
CSAH 19 (LaBeaux Ave NE)CSAH 18 (50th St NE)
53rd St NE
PUBLIC STREET
PUBLIC STREETRT-IN/
RT-OUT
LABEAUX AVE / 50TH ST
ALBERTVILLE, MN
CONCEPT PLAN
01/26/2026
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Agenda Page 119
Agenda Page 120
Mayor and Council Request for Action
_____________________________________________________________________________
February 17, 2026
SUBJECT: PUBLIC WORKS – PROPOSED 2026 CITY COMPOST SITE HOURS
RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider
the following:
MOTION TO: to approve the amended Albertville Compost Site hours for the 2026 as follows:
Month(s) Monday Tuesday-Friday Saturday-Sunday
April 8 am to 6 pm 2 pm to 6 pm 9 am to 4 pm
May-September 8 am to 8 pm 2 pm to 8 pm 9 am to 4 pm
October-November 8 am to 6 pm 1 pm to 6 pm 9 am to 4 pm
BACKGROUND: For nearly 20 years, the City’s compost site was open 24 hours a day at no
charge, as chipping and hauling could be performed at a little or no cost. In recent years,
chipping and hauling expenses have increased significantly, and dumping by non-residents and
contractors had further contributed to the rising costs.
In response, the City restricted access and operating hours at the site beginning in the summer of
2025. Summer hours were initially scheduled from 3 pm to 8 pm, Monday-Friday. Based on
resident feedback, staff is now proposing expanded hours for 2026, including a full day on
Mondays and an additional hour on weekends.
Staff will continue to monitor the site hours to ensure they meet operational and resident needs.
KEY ISSUES:
• The City’s compost site operates seasonally from April through November.
• Operating hours were restricted beginning in summer 2025 due to rising costs.
• Staff propose additional hours for 2026 in response to resident feedback.
FINANCIAL CONSIDERATIONS: There proposed schedule would increase hours for the
seasonal part-time staff position. The cost to operate the compost site are shared with the City of
Otsego.
LEGAL CONSIDERATIONS: The Mayor and City Council have the authority to review and
approve hours of operation for the City’s compost site.
Submitted through: Adam Nafstad, City Administrator-PWD
Agenda Page 121