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HomeMy WebLinkAbout11.28.11 EDA Packet AGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING November 28, 2011 6:30 PM CITY COUNCIL CHAMBERS Jason Bartholomay, Chair Christy Fogarty, Vice-Chair Todd Larson; Mayor, Terry Donnelly, Julie May, Ex-Officio: Douglas Bonar, Geraldine Jolley Action Taken 1 Call Meeting to Order 2 Pledge of Allegiance 3 Approve Agenda 4 Citizen Comments / Presentations 5 Consent Agenda a) EDA Minutes: October 24 b) Budget Details: October c) Bills: October 22 - November 25 6 Public Hearings 7 Continued Business a) Pellicci Ace Hardware - Commercial Rehabilitation Grant Agreement 8 New Business a) Quality Ingredients Corporation 9 City Staff Reports/Discussion/Open Forum a) December 2011 EDA Meeting Date 10. Adjourn 5~ MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting October 24, 2011 1. CALL TO ORDER The meeting was called to order by Chair Bartholomay at 6:30 p.m. Members Present: Bartholomay, Fogarty, Larson, May (arrived 6:33 p.m.), Bonar (arrived 6:35 p.m.), Jolley Members Absent: Donnelly Also Present: David McKnight, City Administrator; Teresa Walters, Finance Director; Tina Hansmeier, Economic Development Specialist; Cynthia Muller, Executive Assistant 2. PLEDGE OF ALLEGIANCE 3. APPROVE AGENDA MOTION by Larson, second by Fogarty to approve the Agenda. APIF, MOTION CARRIED. 4. CITIZEN COMMENTS/PRESENTATIONS 5. CONSENT AGENDA MOTION by Fogarty, second by Larson to approve the Consent Agenda as follows: a) Approved EDA Minutes August 15,2011 b) Received Budget Details August and September c) Approved Bills August 13 - October 21,2011 d) Approved EDA By-laws Amendment APIF, MOTION CARRIED. 6. PUBLIC HEARINGS 7. CONTINUED BUSINESS a) Greater MSP Update The Greater MSP is a regional economic development partnership made up of 11 Minnesota counties and two Wisconsin counties. The group will forward any economic development leads to specific cities. (Member May arrived). 8. NEW BUSINESS a) Pellicci Ace Hardware, Commercial Rehabilitation Grant Application Pellicci Ace Hardware is requesting funds to assist them in making improvements to property they recently purchased, the former Allina Medical Clinic on TH3. To bring the property in compliance with code, they need to install a fire suppression system. (Member Bonar arrived). EDA Minutes (Regular) October 24, 2011 Page 2 The applicant has estimated costs of $12,380 for the fire suppression system. The grant program requires a 1: 1 match between the grant and the applicant. The grant amount would be $6,190. As this is an estimate, staff is requesting the EDA authorize up to the maximum amount of$35,000 with the understanding it will not be that amount. No other improvements would qualify for the grant. The owners hope to be open around March/April 2012. The EDA would authorize the grant award and provide a recommendation to Council. Council would authorize awarding the grant, there will be other steps in between, the EDA will review the grant agreement and provide a recommendation to Council, and the Council will give the final approval. Any work that has already begun will not qualify for the grant. Member May was concerned with approving $35,000. She asked ifthe EDA can approve the $6,190 which is half the fire suppression system. Staff was looking for some flexibility in case the bids came in higher. Member Larson suggested rather than approving $35,000 why not approve the total cost of the work, knowing it will be half. Member Fogarty suggested approving $10,000. Staff explained if the bid is greater than what is awarded by the EDA, it would have to come back for approval. The grant requires Council approval, because the Council is a subrecipient of CDBG funds. Member Bonar asked if we have to approve an amount or just the concept. He asked who defines the scope of the sprinkler work. Staff explained it depends on what is needed to meet the code requirements. Member Bonar understood sprinkler drawings need to be signed off by code officials before construction can begin. If there is a means to competitively bid the project, would the EDA award to the bid amount. He was trying to move this forward without being tied into a dollar amount. Staff felt there was flexibility in awarding the grant; traditionally there has been a not to exceed amount. MOTION by Fogarty, second by Larson to approve awarding the grant in an unspecified dollar amount until after bids are received and an agreement is brought to the EDA with the stipulations noted in the memo. Member May asked why this is different than saying up to $35,000 and felt there should be a maximum amount. Member Bonar felt approving the concept is the necessity. Member Larson stated this is an estimated cost vs a bid cost. With the other stipulations the amount could be $8,000 and the bids might come in at $12,000. They have to seek three bids and obtain two bids. APIF, MOTION CARRIED. b) EDA Budget Finance Director Walters presented the 2012 preliminary EDA budget. The preliminary budget does not include expenditures needed to operate the EDA as we did not have any approved revenue source. The changes to the budget were reviewed with the EDA. Interest revenue is slightly lower than the preliminary budget. Rental income was eliminated as the property was sold. Staff did add a miscellaneous line for $2,495, legal services $2,000, $475 for electricity for the Elm Street sign, and other legal fees may be incurred if the Riste lot is sold. The miscellaneous revenue is if we charge rent for the Elm Street sign. We would be able to cover electricity and legal fees with this revenue. With these additional items, there would be a cash balance of$7,613, however this is reserved for the escrows payable so we cannot use it. The escrows payable is money we are EDA Minutes (Regular) October 24, 2011 Page 3 holding for someone that we have to pay back. The fund balance would be $17,272 with the $175,000 transfer that Council approved. That fund balance is not cash and not available to use because it is tied up in receivables and payables. Member Fogarty noted the loans receivable are from Vinge and CEEF. Member May recalled we used to charge for the Elm Street sign and we were going to tear it down, but it was expensive to do that. City Administrator McKnight noted staff can ask the businesses if they are willing to pay rent for the sign. Member May felt we should either charge rent or not light the sign at night. Finance Director Walters noted staff has suggested $200 for mileage to be used when a City vehicle is not available. In addition, there is a $240 stipend for the ex-officio EDA members, but there is no revenue for that. Staff provided four options: 1. Transfer $10,000 from fiscal disparities for operations for 2012. We would have to look for another revenue source in 2013 and possibly an EDA levy. 2. Transfer $50,000 from fiscal disparities which would wipe out the interfund loan. 3. Not use the entire $175,000 against the loan, but use it for operations and what is left would be applied to the interfund loan. 4. Eliminate the EDA, because is there a plan for the EDA, is there anything for the EDA to do that the City could not do? There would no longer be EDA audit costs. All revenues and expenditures would be transferred to the general fund and with the sign revenue, there would be an increase of $1,809. Community Development can do a lot of the same things the EDA can do. Staff noted with an EDA there is greater flexibility in doing development projects. The greatest challenge would be the perception of eliminating the EDA. Staff recommended option 2 as it eliminates the deficit, eliminates the interfund loan and provides the EDA with operational revenue. Member Fogarty felt discussing the long term value of the EDA is a good conversation for 2012. Member Larson felt we should know the benefits of having an EDA vs not having an EDA. He agreed with option 2. Member May recommended option 4 as we can have these same discussions without a formal EDA. We need to look at the dollars and if there is a savings that is the direction she would like to go. Our primary goal is to bring the fund whole and we have an opportunity to make that happen. Member Larson asked if option 4 should be a goal for next year or make that decision now. Member May wanted to make the decision now. Member Larson felt the EDA does not have all the information to make that decision. Member May noted there would still be some function in Community Development. Finance Director Walters stated the City has the ability to purchase land, set up TIF districts, and a lot ofthe same abilities the EDA does. Economic Development Specialist Hansmeier stated the reason EDA's were created was to have greater flexibility in accomplishing goals of a development organization. EDA Minutes (Regular) October 24, 2011 Page 4 Mr. Clyde Rath, Farmington Business Association President, stated the FBA would like to see an ongoing dialogue before that decision is made because they are just starting the Steering Committee for GROW Farmington which will cover a lot of economic development issues and the EDA is involved in that. He does not want that decision made tonight without public input. Member Bonar felt a dialogue would be healthy. Regardless of whether the EDA moves forward with this title or is absorbed into the Council, it is important to be perceived as a body that is not a rocking chair body, but an action group that has a goal, mission, and a plan and moves towards it on a regular basis. Member Jolley felt this needs more thought and conversation before a decision is made. She agreed there is no need to duplicate efforts, but we are not at the point to make that decision yet. Chair Bartholomay agreed with Member Larson that we need more information and to have Member Donnelly's thoughts. He asked staff to provide information on the benefits of having an EDA vs not having one and what the difference would be with having a Community Development department. As far as the budget, he agreed with option 2. Chair Batholomay noted we just added two ex-officio members to the EDA. Member Jolley thought the purpose of expanding the board was to get some outside opinion and have some interaction between the FBA and GROW Farmington. We have not had an opportunity to do that. Member May felt we could still do that without being an EDA. There are other costs involved such as an audit. Member Jolley noted when GROW Farmington started we did not have any EDA members in the group. We thought we would make progress with collaboration between different groups in town. She thought the ability to have that representation on the EDA would help to make the group a stronger player. They have not had that opportunity, but she did realize there is a budget consideration that needs to be addressed. MOTION by Larson, second by Fogarty to approve option 2 and agreed to have a conversation regarding option 4 at a later date. Voting for: Bartholomay, Fogarty, Larson. Voting against: May. MOTION CARRIED. 9. CITY STAFF REPORTS a) September/October Activity Report Staff highlighted the activities that occurred over September and October. b) ThisWeek News: Branding Helps Cities Attract, Retain Businesses This article was provided to the EDA. c) Small Business Lending Letter and Press Release This information was provided to the EDA. d) 2011 Farmers' Market Summary A survey was sent to the Farmington Business Association to obtain feedback on the Market. Eight surveys were returned and the results were presented to the EDA. For 2011, the revenues did exceed expenditures. Dates for 2012 will be June 14 - September 13. EDA members were very pleased with the turnout of the Market. EDA Minutes (Regular) October 24, 2011 Page 5 Member May thanked staff for their work, but was concerned with using staff time to run a Farmers' Market. If the businesses who sponsored the Market were from the north, why is the Market not located at the north end? We have discussed bringing both areas together, but why don't we have anything on the north side? Is this about the downtown area or to provide fresh produce for the City? She would like to see something on the north side. She felt the Market should be run by an independent group. Member Bonar agreed and suggested a neutral location may give the best advantage to the vendors and give equal opportunity to northern and southern businesses. There is a cost associated to having staff members participate that is not being realized. Hours committed by staff to this are hours that could be committed elsewhere. Chair Bartholomay agreed, but noted staff did a great job. He did not see it being the City's role to run a Farmers' Market. Member May asked ifthis is how Markets start and then a group takes it over. Staff explained Markets are either run by the City or are part ofthe St. Paul Farmers' Market. Member Jolley stated a topic high on the list of GROW Farmington is doing more things throughout the City. This is an activity that would lend itself to being in a different venue and would not have a problem with seeing this in different areas of town. When we have more success with GROW Farmington we will see more things happening around town. This is a process to get more activity all over town. It was an easy place to start and was easily accessible. Staff noted electricity is needed for some vendors. Member Larson noted when the Market was started, the main reason was to bring people to downtown to see what Farmington has to offer. It was used as an economic development tool. If we did not want it, we should have said no three years ago. If we are going to let it run for three years and then cut if off, that looks foolish where we want something and then we don't. Member Larson felt we should give it a chance and staff knows where it will work best, but we do need to keep this going. Chair Bartholomay agreed if no one else wants to take it over. Mr. Mark Pellicci commented on the location. As a citizen of Farmington, we should have learned a lesson with moving Dew Days around. It does not work to continually move things around. It is a noble idea to move it north, but the crowds and people will continue to decline because know one knows where it will be. You have to have a spot and say this is where it is. Everyone knows where the St. Paul Farmers' Market is and everyone knows where Lakeville's Farmers' Market is. In Farmington for two years it was at the former Lampert's site, then on Third Street, now you want to move it up north. The City has made a choice and said it is downtown. We should stick with it downtown. Staff noted Market customers did ask about moving from the Lampert's site to Third Street and staff explained it was to make the Market more visible. Customers really liked the new site. We advertise it everywhere and have signs throughout town. Chair Bartholomay asked for the City Administrator's thoughts on staff doing this. City Administrator McKnight noted this is a summary and he is seeing a two to two split. We do spend other dollars that are not represented on the spreadsheet. It is five to six hours for 14 weeks. Three years is not enough to judge it and we just changed locations. He was happy with the size of the crowds and hopefully it will grow. Chair Bartholomay noted if we did move it around, it would be difficult to gauge the success. EDA Minutes (Regular) October 24, 20 II Page 6 Mr. Clyde Rath noted there will be more support for the Market from the downtown businesses next year. They wanted to see how it went for the first year. 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Fax 651.280.6899 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Pellicci Ace Hardware - Commercial Rehabilitation Grant Agreement DATE: November 28,2011 INTRODUCTION The City Council authorized the award of a Commercial Rehabilitation Grant to Pellicci Ace Hardware on November 7, 2011. Grant funds were awarded to assist the property owner in eliminating conditions detrimental to public health and safety specific to the installation of a new roof and fire suppression system. DISCUSSION The City's Commercial Rehabilitation Grant Program is a program that provides assistance to property owners that make eligible improvements to commercial properties to prevent deterioration of structures and encourages projects that correct code violations. The total available balance in the Commercial Rehabilitation Grant program fund is $53,500. Pellicci Ace Hardware has purchased and will be converting the property at 3560 213th Street West from a former empty medical building into a retail space. Their new facility is in need of a new roof, fac;:ade improvements, handicap accessibility improvements and code violation upgrades. Of the work identified, the installation of a fire suppression system and new room meet the program requirements. Both improvement projects have been identified by appropriate city staff to be code deficiencies. Copies of bids received for the project have been provided and reviewed by staff. All documentation required of the program has been received. The program requires for every $1 dollar of grant funds provided the applicant must provide $1. Three competitive bids were received for the installation of a new roof and ranged from $12,454 up to $19,686. Three competitive bids were received for the installation of the fire suppression system and ranged from $49,700 up to $72,550. ACTION REQUESTED Provide favorable recommendation to City Council to award a Commercial Rehabilitation Grant to Pellicci Ace Hardware (Farmington Stallions, LLC) for $31,122.50. Respectfully Submitted, Tina Hansmeier, Economic Development Specialist City of Farmington Commercial Rehabilitation Grant Program Grant Agreement This agreement is made and entered into this ~ day of ~M,~\ ,2011, by and between Farmington Stallions, LLC, a Limited Liability company, having its principal offices at 13683 Dunbar Way, Apple Valley, Minnesota (hereinafter referred to as "Grantee") and the City of Farmington, a public body corporate and politic, having its principal offices at 430 Third Street, Farmington, Minnesota (hereinafter referred to as "Grantor"). WHEREAS, the Grantor is a Subrecipient of Dakota County Community Development Agency in the County's Community Development Block Grant ("CDBG") Program; and WHEREAS, the Grantor has established a Commercial Rehabilitation Grant Program funded by its entitlement of CDBG funds to assist businesses with the elimination of specific conditions detrimental to public health and safety; and WHEREAS, the Grantee shall match the total Grant amount received from the Grantor based upon the expenditure of one dollar of Grantee funds for each one dollar of Grant funding; and WHEREAS, the Grantee has applied for Commercial Rehabilitation Grant funds to convert the building located at 3560 213th St W, Farmington, Minnesota, from an empty medical clinic to a retail space for Pellicci ACE Hardware; and WHEREAS, the Grantee has requested funding to assist with the installation of a new roof and installation of a new fire suppression system; and WHEREAS, the Grantor has reviewed the Grantee's application and determined that the proposed rehabilitation project eliminates specific conditions detrimental to public health and safety. NOW THEREFORE, in consideration of the Grant and the mutual covenants contained herein, the parties agree as follows: 1. The Grantor agrees to provide a maximum of $31,122.50 (thirty-one thousand one hundred twenty two dollars and fifty cents) in CDBG funds to the Grantee for the installation of a new roof and fire suppression system (the "Project") to eliminate conditions detrimental to public health and safety. 2. The Grantee agrees to use the proceeds of the Grant solely for the installation of a new roof and installation of a new fire suppression system. 3. The Grantee will provide the Grantor copies of the bids received for the Project prior to the award of bids. Grantee must solicit at least three businesses and obtain two competitive bids for all work to be done as part of the Project. 4. The Project shall be completed in a timely manner and all Grant funds must be used within one year from the date of the grant agreement ("End Date"). The End Date may be extended beyond the original End Date up to one year, upon written approval of the Grantor. 5. The Grantee will require all contractors to pay federal prevailing wages (Davis Bacon Act) to employees working on the Project. The wage determination for this project is MN100068 10/14/2011 (Attachment B). 6. The Grantee will require all contractors to submit weekly Davis Bacon payroll documents to the Dakota County CDA (contact: Lisa Henning, Assistant Director of Community and Economic 1 Development). Such payroll documents must be approved by the Dakota County CDA before reimbursement payments will be made to the Grantee. 7. Grant funds will be paid on a reimbursement basis only after all improvements have been completed according to the authorized scope of work and have been accepted by the Grantor. 8. The grant agreement will be terminated 90 days from the date of this Agreement if construction work has not yet begun. 9. The Grantee agrees not to relocate outside of the City of Farmington for a period of three years after the date of this grant agreement. 10. The Grantee shall defend, indemnify, and hold harmless the officers and employees of the Grantor and the Dakota County CDA from all liability and claims for damages arising from bodily injury, death, property damage, sickness, disease, or loss and expense resulting from or alleged to result from Grantee's operations under this Agreement. 11. The Grantee agrees to keep in force at all times during the term of this Agreement a comprehensive general liability insurance policy covering any injury and/or property damage caused by any negligent act or omission on the part of the Grantee, its agents, or employees in the performance of or with relation to the work or services to be performed or furnished by the Grantee under the terms of this Agreement in an amount of $1,000,000.00. The Certificate of Insurance shall include the Grantor and Dakota County CDA as certificate holders by endorsement. The Grantee further agrees to maintain worker's compensation coverage in accordance with state law. Certificates of Insurance evidencing such insurance policies shall be provided to the Grantor prior to initiation of the work under the Project activities covered by this Agreement and before any reimbursement of grant funds is made. 12. The Grantee agrees to comply with all local, state, and federal equal employment opportunity laws and ordinances as they pertain to unlawful discrimination on account of race, color, creed, religion, national origin, sex, sexual or affectional orientation, marital status, status with regard to public assistance, familial status, disability or age. 13. The Grantee agrees to comply with other Federal CDBG contract provisions as detailed in Attachment A. 14. The Grantee agrees to comply with the Federal Labor Standard Provisions and Standard Assurances as detailed in Attachment C and Attachment D. 15. Grantee agrees that if there occurs any breach in the terms of this agreement after payment of CDBG funds that is not cured within 30 days or such longer period as may be necessary after written notice from the Grantor to the Grantee of such breach, the Grantor may take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to the Grantor, to enforce performance and observance of any obligation, agreement, or covenant of the Grantee under this Agreement. In addition, upon said breach and the failure to cure said breach within 30 days or such longer period as may be necessary after written notice from the Grantor to the Grantee of such breach, the Grantor shall have the option to require the Grantee to reimburse the Grantor CDBG funds, plus any expenses incurred by the Grantor to include, but not necessarily be limited to, administrative and legal expenses and any investment of CDBG funds. 2 IN WITNESS WHEREOF, the parties hereto have hereby executed this Agreement as of the year and date written above. GRANTOR: GRANTEE: BY: FARMINGTON STALLIONS, LLC. By:.~Q~ CITY OF FARMINGTON ITS: ITS: c.. E 0 BY: \V\:..r.\..~.1 ~Q,~~ ITS: C ~O BY: ITS: 3 Attachment A - PROVISIONS FOR CDBG FUNDED CONTRACTS I. SPECIAL EQUAL OPPORTUNITY PROVISIONS A. Activities and Contracts Not Subiect to Executive Order 11246. as Amended (Applicable to Federally assisted construction contracts and related subcontracts of$10,000 and under.) During the performance of this contract, the contractor agrees as follows: 1. The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Contractor shall take affirmative action to ensure that applicants for employment are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of payor other forms of compensation; and selection for training, including apprenticeship. 2. The Contractor shall post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this non-discrimination clause. The Contractor shall state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. 3. Contractors shall incorporate the foregoing requirements in all subcontracts. B. Executive Order 11245 (Applicable to Federally assisted contracts and related subcontracts of$10,000 and over.) 1. Section 202 Equal Opportunity Clause During the performance ofthis contract, the contractor agrees as follows: (A) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment, or recruitment advertising; layoff or termination, rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this non-discrimination clause. (B) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration without regard to race, color, religion, sex, or national origin. (C) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice advising the said labor union or workers' representatives of the contractor's commitment under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (D) The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (E) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the Department and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and others. (F) In the event of the contractor's non-compliance with the non-discrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be cancelled, terminated, or suspended in whole or in part and the contractor may be declared ineligible in part and the contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. (G) The contractor will include the provisions of the sentence immediately preceding paragraph (A) and the provisions of paragraphs (A) through (G) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of 1 September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the Department may direct as a means of enforcing such provisions, including sanctions for non-compliance. Provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Department, the contractor may request the United States to enter into such litigation to protect the interest of the United States. 2. Notice of Requirement for Affirmative Action to Ensure Equal Employment Opportunity (Executive Order 11246). (A) The Offer's or Bidder's attention is called to the "Equal Opportunity Clause" and the "Standard Federal Equal Employment Opportunity Construction Contract Specifications" set forth herein. (B) The goals and timetables for minority and female participation, expressed in percentage terms for the Contractor's aggregate workforce in each trade on all construction work in the covered area, are as follows: Goals for Women / Minority Participation 5% Overall Timetables: N/A These goals are applicable to all the Contractor's construction work (whether or not it is Federal or federally assisted) performed in the covered area. The Contractor's compliance with the Executive Order and the regulations in 41 CFR Part 60-4 shall be based on its implementation of the Equal Opportunity Clause, specific affirmative action obligations required by the specifications set forth in 41- CFR 60-4.3 (a), and its efforts to meet the goals established for the geographical area where the contract resulting from this solicitation is to be performed. The hours of minority and female employment and training must be substantially uniform throughout the length of the contract, and in each trade, and the contractor shall make a good faith effort to employ minorities and women evenly on each of its projects. The transfer of minority or female employees or trainees from Contractor to Contractor or from project to project for the sole purpose of meeting the Contractor's goals shall be a violation of the contract, the Executive Order and the regulations in 41 CFR Part 60-4. Compliance with the goals will be measured against the total work hours performed. (C) The Contractor shall provide written notification to the Director of the Office of Federal Contract Compliance Programs within 10 working days of the award of any construction subcontract in excess of $ 10,000 at any tier for construction work under the contract resulting from this solicitation. The notification shall list the name, address and telephone number of the subcontractor; employer identification number; estimated dollar amount of the identification number; estimated dollar amount of the subcontract; estimated starting and completion dates of the subcontract; and the geographical area in which the contract is to be performed. (D) As used in this Notice, and in the contract resulting form this solicitation, the "Covered Area" is Dakota County, Minnesota. 3. Standard Federal Equal Employment Opportunity Construction Contract Specifications (Executive Order 11246) (A) As used in these specifications: (1) "Covered area" means the geographical area described in the solicitation from which this contract resulted; (2) "Director" means Director, Office of Federal Contract Compliance Programs, United States Department of Labor, or any person to whom the Director delegates authority; (3) "Employer identification number" means the Federal Social Security number used on the Employer's Quarterly Federal Tax Return, U.S. Treasury Department Form 941. (4) "Minority" includes: (a) Black (all persons having origins in any of the Black African racial groups not of Hispanic origin); 2 (b) Hispanic (all persons of Mexican, Puerto Rican, Cuban, Central or South American or other Spanish Culture or origin, regardless ofrace); (c) Asian and Pacific Islander (all persons having origins in any of the original peoples of the Far East, Southeast Asia, the Indian Subcontinent, or the Pacific Islands): and (d) American Indian or Alaskan Native (all persons having origins in any of the original peoples of North American and maintaining identifiable tribal affiliations through membership and participation or community identification). (B) Whenever the Contractor, or any subcontractor at any tier, subcontracts a portion of the work involving any construction trade, it shall physically include in each subcontract in excess of $10,000 the provisions of these specifications and the Notice which contains the applicable goals for minority and female participation and which is set forth in the solicitations from which this contract resulted. (C) If the Contractor is participating (pursuant to 41 CFR 60-4.5) in a Hometown Plan approved by the U.S. Department of Labor in the covered area either individually or through an association, its affirmative action obligations on all work in the Plan area (including goals and timetables) shall be in accordance with that for those trades which have unions participating in the PIan. Contractors must be able to demonstrate their participation in and compliance with the provisions of any such Hometown Plan. Each Contractor or subcontractor participating in an approved PIan is individually required to comply with its obligations under the EEO clause, and to make good faith effort to achieve each goal under the Plan in each trade in which it has employees. The overall good faith performance by other Contractors or Subcontractors toward a goal in an approved PIan does not excuse any covered Contractor's or Subcontractor's failure to take good faith efforts to achieve the PIan goals and timetables. (D) The Contractor shall implement the specific affirmative action standards provided in paragraphs (G)(1) through (16) of these specifications. The goals set forth in the solicitation from which this contract resulted are expressed as percentages of the total hours of employment and training of minority and female employees the Contractor should reasonably be able to achieve in each construction trade in which it has employees in the covered area. The Contractor is expected to make substantially uniform progress toward its goals in each craft during the period specified. (E) Neither the provisions of any collective bargaining agreement, nor the failure by a union with whom the Contractor has a collective bargaining agreement, to refer either minorities or women shall excuse the Contractor's obligations under these specifications, Executive Order 11246, nor the regulations promulgated pursuant thereto. (F) In order for the non-working training hours of apprentices and trainees to be counted in meeting the goals, such apprentices and trainees must be counted in meeting the goals, such apprentices and trainees must be employed by the Contractor during the training period, and the Contractor must have made a commitment to employ the apprentices and trainees at the completion of their training, subject to the availability of employment opportunities. Trainees must be trained pursuant to training programs approved by the U.S. Department of Labor. (G) The Contractor shall take specific affirmative actions to ensure equal employment opportunity. The evaluation of the Contractor's compliance with these specifications shall be based upon its efforts to achieve maximum results from its actions. The Contractor shall document these efforts fully, and shall implement affirmative action steps at least as extensive as the following; (1) Ensure and maintain a working environment free of harassment, intimidation, and coercion at all sites, and in all facilities at which the Contractor's employees are assigned to work. The Contractor shall specifically ensure that all foremen, superintendents, and other on-site supervisory personnel are aware of and carry out the Contractor's obligation to maintain such a working environment, with specific attention to minority or female individuals working at such sites or in such facilities. (2) Establish and maintain a current list of minority and female recruitment sources, provide written notification to minority and female recruitment sources and to community organizations when the Contractor or its unions have employment opportunities available, and maintain a record of the organizations' responses. (3) Maintain a current file of the names, addresses and telephone numbers of each minority and female off-the-street applicant and minority or female referral from a union, a recruitment source or community organization and of what action was taken with respect to each such individual. If such individual was sent to the union hiring hall for referral and was not referred back to the Contractor by the union or, if referred, not employed by the Contractor, this shall be documented in the file with the reason therefore, along with whatever additional actions the Contractor may have taken. 3 (4) Provide immediate notification to the Director when the union or unions with which the Contractor has a collective bargaining agreement has not referred to the Contractor a minority person or woman sent by the Contractor, or when the Contractor has other information that the union referral process has impeded the Contractor's efforts to meet its obligations. (5) Develop on-the-job training opportunities and/or participate in training programs for the area which expressly include minorities and women, including upgrading programs and apprenticeship needs, especially those programs funded or approved by the Department of Labor. The Contractor shall provide notice of these programs to the sources compiled under (G)(2) above. (6) Disseminate the Contractor's EEO policy by providing notice of the policy to unions and training programs and requesting their cooperation in assisting the Contractor in meeting its EEO obligations; by including it in any policy manual and collective bargaining agreement; by publicizing it in the company newspaper, annual report, etc.; by specific review of the policy with all management personnel and with all minority and female employees at lease once a year; and by posting the company EEO policy on bulletin boards accessible to all employees at each location where construction work is performed. (7) Review, at least annually, the company's EEO policy and affirmative action obligations under these specifications with all employees having any responsibility for hiring, assignment, layoff, termination or other employment decisions including specific review of these items with onsite supervisory personnel such as Superintendents, General Foremen, etc., prior to the initiation of construction work at any job site. A written record shall be made and maintained identifying the time and place of these meetings, persons attending, subject matter discussed, and disposition of the subject matter. (8) Disseminate the contractor's EEO policy externally be including it any advertising in the news media, specifically including minority and female news media, and providing written notification to and discussing the Contractor's EEO policy with other Contractors and Subcontractors with whom the Contractor does or anticipates doing business. (9) Direct its recruitment efforts, both oral and written, to minority, female and community organizations, to schools with minority and female students and to minority and female recruitment and training organizations serving the Contractor's recruitment area and employment needs. Not later than one month prior to the date for the acceptance of applications for apprenticeship or other training by any recruitment source, the Contractor shall send written notification to organizations such as the above, describing the openings, screening procedures, and tests to be used in the selection process. (10) Encourage present minority and female employees to recruit other minority persons and women and, where reasonable, provide after school, summer and vacation employment to minority and female youths both on the site and in other areas of a Contractor's work force. (11) Validate all tests and other selection requirements where there is an obligation to do so under 41 CFR part 60-3. (12) Conduct, at least annually, an inventory and evaluation at least of all minority and female personnel for promotional opportunities and encourage these employees to seek or to prepare for, through appropriate training, etc., such opportunities. (13) Ensure that seniority practices, job classifications, work assignments and other personnel practices, do not have a discriminatory effect by continually monitoring all personnel and employment related activities to ensure that the EEO policy and the Contractor's obligations under these specifications are being carried out. (14) Ensure that all facilities and company activities are non-segregated except that separate or single-user toilet and necessary changing facilities shall be provided to assure privacy between the sexes. (15)Document and maintain a record of all solicitations of offers for subcontracts from minority and female construction contractors and suppliers, including circulation of solicitations to minority and female contractor associations and other business associations. (16)Conduct a review, at least annually, of all supervisors' adherence to and performance under the Contractor's EEO policies and affirmative action obligations. (H) Contractors are encouraged to participate in voluntary associations which assist in fulfilling one or more of their affirmative action obligations [(G)(1) through (16)]. The efforts of a contractor association, joint contractor-union, contractor-community, or other similar groups of which the contractor is a member and participant, may be asserted as fulfilling anyone or more of its obligations as enumerated above provided that the Contractor actively participates in the group, makes every effort to assure that the group has a positive impact on the employment of minorities and women in the industry, ensures that the concrete 4 benefits of the program are reflected in the Contractor's minority and female workforce participation, makes a good faith effort to meet its individual goals and timetables, and can provide access to documentation which demonstrates the effectiveness of actions taken on behalf of the Contractor. (I) A single goal for minorities and a separate single goal for women have been established. The Contractor, however, is required to provide equal employment opportunity and to take affirmative action for all minority groups, both male and female, and all women, both minority and non-minority. Consequently, the Contractor may be in violation of the Executive Order if a particular group is employed in a substantially disparate manner (for example, even though the Contractor has achieved its goals for women generally, the Contractor may be in violation of the Executive Order if a specific minority group of women is underutilized). (1) The Contractor shall not use the goals and timetables or affirmative action standards to discriminate against any person because of race, color, religion, sex, or national origin. (K) The Contractor shall not enter into any subcontract with any person or firm debarred from Government contracts pursuant to Executive Order 11246. (L) The Contractor shall carry out such sanctions and penalties for violation of these specifications and of the Equal Opportunity Clause, including suspension, termination and cancellation of existing subcontracts as may be imposed or ordered pursuant to Executive Order 11246, as amended, and its implementing regulations, by the Office of Federal Contract Compliance Programs. Any Contractor who fails to carry out such sanctions and penalties shall be in violation of these specifications and Executive Order 11246, as amended. (M) The Contractor, in fulfilling its obligations under these specifications, shall implement specific affirmative action steps, at least as extensive as those standards prescribed in paragraph (G) of these specifications, so as to achieve maximum results from its efforts to ensure equal employment opportunity. If the Contractor fails to comply with the requirements of the Executive Order, the implementing regulations, or these specifications, the Director shall proceed in accordance with 41 CFR 60-4.8. (N) The Contractor shall designate a responsible official to monitor all employment related activity to ensure that the company EEO policy is being carried out, to submit reports relating to the provisions hereof as may be required by the Government and to keep records. Records shall at least include for each employee the name, address, telephone numbers, construction trade, union affiliation if any, employee identification number assigned, social security number, race, sex, status (e.g., mechanic, apprentice trainee, helper, or laborer), dates of changes in status, hours worked per week in the indicated trade, rate of pay, and locations at which the work was performed. Records shall be maintained in an easily understandable and retrievable form; however, to the degree that existing records satisfy this requirement, contractors shall not be required to maintain separate records. (0) Nothing herein provided shall be constructed as a limitation upon the application of other laws which establish different standards of compliance or upon the application of requirements for the hiring of local or other area residents (e.g., those under the Public Works Employment Act of 1977 and the Community Development Block Grant Program). 4. Segregated Facilities The Contractor or Subcontractor will not maintain any facility which is provided for their employees in a segregated manner or permit their employees to perform their services at any location under their control where segregated facilities are maintained except that separate or single user toilet and necessary changing facilities shall be provided to assure privacy between the sexes. C. Section 503 Handicapped - Affirmative Action for Handicapped Workers (Applicable to Federally assisted contracts and related subcontracts if $2,500 or over.) 1. The Contractor will not discriminate against any employee or applicant for employment because of physical or mental handicap in regard to any position for which the employee or applicant for employment is qualified. The Contractor agrees to take affirmative action to employ, advance in employment and otherwise treat qualified handicapped individuals without discrimination based upon their physical or mental handicap in all employment practices such as the following: employment, upgrading, demotion or transfer, recruitment, advertising, layoff or termination, rates of payor other forms of compensation, and selection for training, including apprenticeship. 2. The Contractor agrees to comply with the rules, regulations, and relevant orders of the Secretary of Labor issued pursuant to the Act. 5 3. In the event of the Contractor's noncompliance with the requirements of this clause, actions for noncompliance may be taken in accordance with the rules, regulations, and relevant orders of the Secretary of Labor issued pursuant to the Act. 4. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices in a form to be prescribed by the Director, provided by or through the contracting officer. Such notices shall state the Contractor's obligation under the law to take affirmative action to employ and advance in employment qualified handicapped employees and applicants for employment, and the rights of applicants and employees. 5. The Contractor shall notify each labor union or representative of workers with which it has a collective bargaining agreement or other contract understanding, that the Contractor is bound by the terms of Section 503 of the Rehabilitation Act of 1973, and is committed to take affirmative action to employ and advance in employment physically and mentally handicapped individuals. 6. The Contractor will include the provisions of this clause in every subcontract or purchase order of $ 2,500 or more unless exempted by rules, regulations, or orders of the Secretary issued pursuant to Section 503 of the Act, so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order as the Director of the Office of Federal Contract Compliance Programs may direct to enforce such provisions, including action for non-compliance. D. Section 402 Veterans of the Vietnam Era (Applicable to Federally assisted contracts and related subcontracts of$10,000 or over.) 1. Affirmative Action for Disabled for Disabled Veterans and Veterans of the Vietnam Era (A) The Contractor will not discriminate against any employee or applicant for employment because he or she is a disabled veteran or veteran of the Vietnam Era in regard to any position for which the employee or applicant for employment is qualified. The Contractor agrees to take affirmative action to employ, advance in employment and otherwise treat qualified disabled veterans and veterans of the Vietnam Era without discrimination based upon their disability or veteran status in all employment practices such as the following: employment upgrading, demotion or transfer, recruitment, advertising, layoff or termination, rates of payor other forms of compensation, and selection for training, including apprenticeship. (B) The Contractor agrees that all suitable employment openings of the Contractor which exist at the time of the execution of this contract and those which occur during the performance of this contract, including those not generated by this contract and including those occurring at an establishment of the Contractor other than the one wherein the contract is being performed but excluding those of independently operated corporate affiliates, shall be listed at an appropriate local office of the State employment service system wherein the opening occurs. The Contractor further agrees to provide such reports to such 10cal office regarding employment openings and hires as may be required. State and 10cal government agencies holding Federal contracts of $10,000 or more shall also list all their suitable openings with the appropriate office of the State employment service, but are not required to provide those reports set forth in paragraphs (D) and (E). (C) Listing of employment openings with the employment service system pursuant to this clause shall be made at least concurrently with the use of any other recruitment source or effort and shall involve the normal obligations which attach to the placing of a bona fide job order, including the acceptance of referrals for veterans and non-veterans. This listing of employment openings does not require the hiring of any particular job applicant or from any particular group of job applicants, and nothing herein is intended to relieve the Contractor from any requirements in Executive Orders or regulations regarding non- discrimination in employment. (D) The reports required by paragraph (B) of this clause shall include, but not be limited to, periodic reports which shall be filed at lease quarterly with the appropriate local office or, where the Contractor has more than on hiring 10cation in a State, with the central office of the State employment service. Such reports shall indicate for each hiring 10cation (1) the number of individuals hired during the reporting period, (2) the number of non-disabled veterans of the Vietnam era hired, (3) the number of disabled veterans of the Vietnam era hired, and (4) the total number of disabled veterans hired. The reports should include covered veterans hired for on-the-job training under 38 U.S.c. 1787. The Contractor shall submit a report within 30 days after the end of each reporting period wherein any performance is made on this contract identifying data for each hiring location. The Contractor shall maintain at each hiring location copies of the reports submitted until the expiration of one year after final payment under the contract, during which these reports 6 and related documentation shall be made available, upon request, for examination by any authorized representatives of the contracting officer or of the Secretary of Labor. Documentation would include personnel records respecting job openings, recruitment and placement. (E) Whenever the Contractor becomes contractually bound to the listing provisions of this clause, it shall advise the employment service system in each State where it has establishments of the name and 10cation of each hiring 10cation in the State. As long as the Contractor is contractually bound to these provisions and has so advised the State system, there is no need to advise the State system when it is no longer bound by this contract clause. (F) This clause does not apply to the listing of employment openings which occur and are filled outside the 50 states, the District of Columbia, Puerto Rico, Guam and the Virgin Islands. (G) The provision of paragraphs (B), (C), (D), and (E) of this clause do not apply to openings which the Contractor proposes to fill from within his own organization or to fill pursuant to a customary and traditional employer-union hiring arrangement. This exclusion does not apply to a particular opening once an employer decides to consider applicants outside of his own organization or employer-union arrangement for that opening. (H) As used in this clause: (1) "All suitable employment openings" includes, but is not limited to openings which occur in the following job categories: Production and non-production; pIan and office; laborers and mechanics; supervisory and non-supervisory; technical; and executive administrative, and professional openings that are compensated on a salary basis of less than $ 25,000 per year. This term includes full time employment, temporary employment of more than 3 days duration, and part-time employment. It does not include openings which the contractor proposes to fill from within his own organization or to fill pursuant to a customary and traditional employer-union hiring arrangement or openings in an educational institution which are restricted to students of that institution. Under the most compelling circumstances an employment opening may not be suitable for listing, including such situations where the needs of the Government cannot reasonably be otherwise supplied, where listing would be contrary to national security, or where the requirement of listing would otherwise not be in the best interest of the Government. (2) "Appropriate office of the State employment service system" means the 10cal office of the Federal- State national system of public employment offices with assigned responsibility for serving the areas where the employment opening is to be filled, including the District of Columbia, Guam, Puerto Rico, and the Virgin Islands. (3) "Openings which the Contractor proposes to fill from within his own organization" means employment openings for which no consideration will be given to persons outside the Contractor's organization (including any affiliates, subsidiaries, and the parent companies) and includes any openings which the Contractor proposes to fill from regularly established "recall" lists. (4) "Openings which the Contractor proposes to fill pursuant to a customary and traditional employer- union hiring arrangement" means employment openings which the Contractor proposes to fill from union halls, which is part of the customary and traditional hiring relationship which exists between the Contractor and representatives of his employees. (I) The Contractor agrees to comply with the rules, regulations, and relevant orders of the Secretary of Labor issued pursuant to the act. (J) In the event of the Contractor's non-compliance with the requirements of this clause, actions for non- compliance may be taken in accordance with the rules, regulations, and relevant orders of the Secretary of Labor issued pursuant to the act. (K) The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices in a form to be prescribed by the Director, provided by or through the contracting officer. Such notice shall state the Contractor's obligation under the law to take affirmative action to employ and advance in employment qualified disabled veterans and veterans of the Vietnam era, and the rights of applicants and employees. (L) The Contractor will notify each labor union or representative of workers with which it has a collective bargaining agreement or other contract understanding, that the contractor is bound by the terms of the Vietnam Era Veterans Readjustment Assistance Act, and is committed to take affirmative action to employ and advance in employment qualified disabled veterans and veterans of the Vietnam Era. (M) The Contractor will include the provisions of this clause in every subcontract or purchase order of $ 10,000 or more unless exempted by rules, regulation, or orders of the Secretary issued pursuant to the Act, so that 7 such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order as the Director of the Office of Federal Contract Compliance Programs may direct to enforce such provisions, including action for noncompliance. E. Section 109 of the Housing and Community Development Act of 1974. No person in the United States shall on the grounds of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this title. F. "Section 3" Compliance in the Provision of Training, Emplovment and Business Opportunities 1. The work to be performed under this contract is on a project assisted under a program providing direct Federal financial assistance from the Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u. Section 3 requires that to the greatest extent feasible opportunities for training and employment be given lower income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the area of the project. 2. The parties to this contract will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR, Part 135 and all applicable rules and orders of the Department issued there under prior to the execution of this contract. The parties to this contract certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements. 3. The Contractor will send to each labor organization or representative of workers with which he has a collective bargaining agreement or other contract or understanding, if any, a notice advising the said labor organization of workers representative of his commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. 4. The Contractor will include this Section 3 clause in every subcontract for work in connection with the project and will, at the direction of the applicant for or recipient of Federal financial assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in a violation of regulations issued by the Secretary of Housing and Urban Development, 24 CFR Part 135. The Contractor will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part 135 and will not let any subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. 5. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable rules and orders of the Department issued hereunder prior to the execution of the contract, shall be a condition of the Federal financial assistance provided to the project, binding upon the applicant or recipient for such assistance, its successors and assigns. Failure to fulfill these requirements shall subject the applicant or recipient, its contractors and subcontractors, its successors and assigns to those sanctions specified by the grant or loan agreement or contract through which Federal assistance is provided, and to such sanctions as are specified by 24 CFR Part 135. II. CERTIFICATION OF COMPLIANCE WITH AIR AND WATER ACTS (Applicable to Federally assisted construction contracts and related subcontracts exceeding $100,000) A. During the performance of this contract, the Contractor and all subcontractors shall comply with the requirements of the Clean Air Act, as amended, 42 USC 1251 et seq., and the regulations of the Environmental Protection Agency with respect thereto, at 40 CFR Part 15, as amended. B. In addition to the foregoing requirements, all non-exempt contractors and subcontractors shall furnish to the owner, the following: 1. A stipulation by the Contractor or subcontractors, that any facility to be utilized in the performance of any non- exempt contract or subcontract, is not listed on the list of Violating Facilities issued by the Environmental Protection Agency (EP A) pursuant to 40 CFR 15.20. 2. Agreement by the Contractor to comply with all the requirements of Section 114 of the Clean Air Act, as amended (42 USC 1857c-8) and Section 308 of the Federal Water Pollution Control Act, as amended, (33 USC 1318) relating to inspection, monitoring, entry, reports and information, as well as all other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder. 8 3. A stipulation that as a condition for the award of the contract, prompt notice will be given of any notification received from the Director, Office of Federal Activities, EP A, indicating that a facility utilized, or to be utilized for the contract, is under consideration to be listed on the EP A List of Violating Facilities. 4. Agreement by the Contractor that he will include, or cause to be included, the criteria and requirements in paragraph (1) through (4) of this section in every non-exempt subcontract and requiring that the Contractor will take such action as the Government may direct as a means of enforcing such provisions. III. CERTIFICATION FOR CONTRACTS, GRANTS, LOANS, AND COOPERATIVE AGREEMENTS The undersigned certifies to the best of his or her knowledge and belief, that: A. No Federally appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress in connection with the awarding of any Federal Contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. B. If any funds other than Federally appropriated funds have been paid or will be paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, 10an, or cooperative agreement, the undersigned shall complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. C. The undersigned shall require that the language of this certification be included in the award documents for all sub- awards at all tiers (including subcontract, sub-grant, and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly. D. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a pre-requisite for making or entering into this transaction imposed by Section 1332, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 9 Attachment B - WAGE DETERMINATION (MN 10006810/14/2011) 10 Page lof7 General Decision Number: MN100068 10/14/2011 MN68 State: Minnesota Superseded General Decision Number: MN20080068 Construction Type: Building County: Dakota County in Minnesota. BUILDING CONSTRUCTION PROJECTS (does not include single family homes or apartments up to and including 4 stories). Modification Number o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 ASBE0034-009 06/01/2011 Publication Date 03/12/2010 06/04/2010 08/06/2010 09/03/2010 09/24/2010 10/01/2010 12/03/2010 01/21/2011 02/04/2011 03/04/2011 05/13/2011 06/03/2011 06/10/2011 06/17/2011 06/24/2011 07/01/2011 07/08/2011 07/22/2011 08/12/2011 08/26/2011 10/14/2011 Rates Fringes ASBESTOS WORKER/HEAT & FROST INSULATOR (Includes application of all insulating materials, protective coverings, coatings & finishes to all types of mechanical systems)..............$ 41.07 BOIL0647-007 07/01/2009 ---------------------------------------------------------------- 18.39 Rates Fringes BRMNOOOI-049 05/01/2011 BOILERMAKER.. .... ................$ 33.84 18.53 --------------------~------------------------------------------- TILE SETTER......................$ 28.89 17.09 Rates Fringes Eilliiiiii l:l~ :t http://www.wdol.gov/wdol/scafiIes/davisbaconlMN68.dvb 10/20/2011 Page 2 of7 ---------------------------------------------------------------- BRMN0008-013 05/01/2010 Rates Fringes BRICKLAYER. . . . . . . . . . . . . . . . . . . . . . . $ 33.30 ---------------------------------------------------------------- 14.74 CARP0087-015 05/01/2009 Rates Fringes CARPENTER (Including Acoustical Installation, Drywall Hanging & Form Work) .....$ 31.79 ---------------------------------------------------------------- 16.10 CARP0190-010 06/01/2009 Rates Fringes LATHER. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 33.04 14.87 ---------------------------------------------------------------- ELEC0110-013 03/01/2009 Rates Fringes ELECTRICIAN (Low Voltage, including wiring for Alarms) Installer..... ........ .... ..$ 21.68 Technician (Installation of Controller) . . . . . . . . . . . . . . $ 30.98 10.48+a,b 12.18+a,b FOOTNOTES: a. 1 year service - 5 days paid vacation; 2 years service _ 10 days paid vacation; 5 years service - 12 days paid vacation; 7 years service - 14 days paid vacation; 9 years service - 16 days paid vacation; 11 years service - 18 days paid vacation; 12 years service - 20 days paid vacation b. 8 Paid HOlidays: New Year's Day; Memorial Day; 4th of July; Labor Day; Thanksgiving Day; Day after Thanksgiving; the normal work day preceding Christmas Day; & Christmas Day ---------------------------------------------------------------- ELEC0110-014 05/01/2010 Rates Fringes ELECTRICIAN... ...... ...... .......$ 35.55 20.37 ---------------------------------------------------------------- ELEV0009-002 01/01/2011 Rates Fringes ELEVATOR MECHANIC................$ 42.06 21.785 FOOTNOTE: PAID VACATION: Employer contributes 8% of regular hourly rate as vacation pay credit for employees with more than 5 years of service, and 6% for 6 months to 5 years of service. PAID HOLIDAYS: New Years Day, Memorial Day, Independence Day, http://www. wdol.gov /wdol/scafiles/davisbacon/MN 68.dvb 10/20120 II .tml>>iMJl milmmJIJ~. J~~_,-i<""'_"""''''''-''""_.""o'.O'.ow",,. Page 3 of7 Labor Day, Veterans Day, Thanksgiving Day, Friday after Thanksgiving, and Christmas Day. ---------------------------------------------------------------- ENGI0049-042 05/01/2011 Rates Fringes OPERATOR: GROUP GROUP GROUP GROUP GROUP GROUP GROUP GROUP Power Equipment 1.. " . '" ... .... .. ... .$ 2.... . '" '" . . ..... ...$ 3.. .., . " .. . . . ... .. '" $ 4.................... .$ 5............... ......$ 6.................... .$ 7.................... .$ 8.................... .$ 34.64 34.30 32.89 32.55 32.38 30.87 29.75 27.74 15.85 15.85 15.85 15.85 15.85 15.85 15.85 15.85 POWER EQUIPMENT OPERATOR CLASSIFICATIONS GROUP 1: Truck & Crawler Crane with 200' of Boom & Over, including Jib ($.50 premium with 300' of Boom & over, including jib); & Tower Crane 250' & Over. GROUP 2: Truck & Crawler Crane with 150' of Boom, up to but not including 200' of Boom, including Jib; & Tower Crane 200' & Over. GROUP 3: Traveling Tower Crane; Truck & Crawler Crane, up to but not including 150' of Boom, including Jib; Tower Crane (Stationary) up to 200'; All-Terrain Vehicle Crane, Boom Truck over 100 ft, Dragline. GROUP 4: Backhoe/Track/Trackhoe, Hoist (3 drums or more); Overhead Crane (inside building perimeter), Excavator. GROUP 5: Asphalt Spreader, Bulldozer, Curb Machine, Drill, Forklift, Compressor 450 CFM or over (2 or more machines); Boom Truck up to 100 ft, Loader over 1 cu yd, Hoist (lor 2 drums); Mechanic, Milling Machine, Roller, Scraper, Tractor over D2. GROUP 6: Bobcat/Skid Loader, Loader up to 1 cu. yd., Tractor D2 or similar size. GROUP 7: Compressor 600 CFM or over, Crane Oiler, Self Propelled Vibrating Packer. GROUP 8: Oiler, Greaser (Tractor/Truck). ---------------------------------------------------------------- IRON0512-002 05/01/2011 Rates Fringes IRONWORKER, REINFORCING, ORNAMENTAL AND STRUCTURAL........$ 34.05 20.37 * LAB00132-006 03/04/2011 -----------------------..--------------------------------------- Rates Fringes http://www.wdol.gov/wdol/scafiles/davisbacon/MN68.dvb 10/20/2011 NIli J1;U uaum:tfimHltlift'4 i! ';!ll.r:..;~~~'tmll1i~_"""""'~""""<-""'''''''~~mc'~m'''_. Page 4 of? LABORER (ASBESTOS ABATEMENT) Removal from Floors, Walls & Ceilings..... ...... .......$ 29.43 12.75 * LAB00132-023 05/01/2011 ---------------------------------------------------------------- Rates Fringes LABORER Group 1..................... $ 30. 06 Group 2..................... $ 30.56 13.33 13.33 LABORERS CLASSIFICATIONS GROUP 1 - Common or General Laborer, Asphalt Raker, Asphalt Shoveler, Carpenter Tender, Concrete Saw, Form Stripping, Mason Tender (Brick, Cement/Concrete), Plaster Tender, Scaffold Builder (Brick and Masonry), Top Person, Vibrating Plate GROUP 2 - Pipelayer, Bottom Person ---------------------------------------------------------------- PAIN0061-007 05/01/2011 Rates Fringes Drywall Finisher/Taper..... .........$ 32.39 Sander. . . . . . . . . . . . . . . . . . . . . . $ 24. 29 PAINTER Brush, Roller............... $ 30.89 Spray. . . . . . . . . . . . . . . . . . . . . . . $ 31.64 17.45 17.45 ---------------------------------------------------------------- 17.76 17.76 PAIN1324-006 05/31/2010 Rates Fringes GLAZIER. . . . . . . . . . . . . . . . . . . . . . . . . . $ 35. 75 * PLAS0265-005 06/01/2011 ---------------------------------------------------------------- 12.85 Rates Fringes PLASTERER. . . . . . . . . . . . . . . . . . . . . . . . $ 28.94 ---------------------------------------------------------------- 19.58 PLAS0633-054 05/01/2011 Rates Fringes CEMENT MASON/CONCRETE FINISHER...$ 31.14 ---------------------------------------------------------------- 16.60 PLUM0034-011 05/01/2011 Rates Fringes PLUMBER (Excluding HVAC Pipe Installation) . . . . . . . . . . . . . . . . . . . . $ 38.99 20.81 FOOTNOTE: Paid Holiday: Labor Day http://www.wdol.gov/wdol/scafiles/davisbaconlMN68.dvb 1012012011 tl!~mijl!gJmillu>illullllll_;"ll~______,>....._..>>.. >00..00> Page 50f7 ---------------------------------------------------------------- PLUM0417-003 06/01/2011 Rates Fringes SPRINKLER FITTER (Fire) ..........$ 39.89 20.64 FOOTNOTE: Paid Holidays: Memorial Day; July 4th; Friday before Labor Day; Labor Day; Columbus Day; & Thanksgiving Day ---------------------------------------------------------------- PLUM0455-012 05/01/2011 Rates Fringes PIPEFITTER. . . . . . . . . . . . . . . . . . . . . . . $ 38.95 ---------------------------------------------------------------- 23.09 ROOF0096-022 05/01/2011 Rates Fringes ROOFER. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 34.14 14.60 FOOTNOTE: Paid Holiday - Labor Day ---------------------------------------------------------------- SHEE0010-052 05/01/2009 Rates Fringes SHEET METAL WORKER (Including HVAC Duct and System Installation).............. ......$ 38.46 18.34 FOOTNOTE: Paid Holiday: Labor Day ---------------------------------------------------------------- SUMN2009-043 07/27/2009 Rates Fringes INSTALLER - SIGN.................$ 20.32 5.05 LABORER: Landscape..............$ 12.88 ----------------~----------------------------------------------- 4.61 TEAM0346-005 05/01/2008 Rates Fringes TRUCK DRIVER 2-Axle Dump Truck...........$ 24.80 3-Axle Dump Truck...........$ 25.05 9.70 9.70 TRUCK DRIVER CLASSIFICATIONS GROUP 1: Boom Truck GROUP 2: Ready Mix, Tractor Trailor GROUP 3: Fork Lift, Mechanic, Tandem or 3 axle truck http://www.wdol.gov/wdoUscafiles/davisbaconlMN68.dvb 10/20/2011 GROUP 4: Dumpman, Farm Tractor, Single or 2 axle Truck _1J1l jJm.Uill9tl~'LlnJn':-~J!i,~--'~~!tleH~;~;~'iil~~~_._..............__,~'''',,~_ W~ Page 6 of7 ---------------------------------------------------------------- WELDERS - Receive rate prescribed for craft performing operation to which welding is incidental. ========;=============================================== Unlisted classifications needed for work not included within the scope of the classifications listed may be added after award only as provided in the labor standards contract clauses (29 CFR S.S(a) (1) (ii)). ---------------------------------------------------------------- In the listing above, the "SU" designation means that rates listed under the identifier do not reflect collectively bargained wage and fringe benefit rates. Other designations indicate unions whose rates have been determined to be prevailing. ---------------------------------------------------------------- WAGE DETERMINATION APPEALS PROCESS 1.) Has there been an initial decision in the matter? This can be: * an existing publiShed wage determination * a survey underlying a wage determination * a Wage and Hour Division letter setting forth a position on a wage determination matter * a conformance (additional classification and rate) ruling On survey related matters, initial contact, including requests for summaries of surveys, should be with the Wage and Hour Regional Office for the area in which the survey was conducted because those Regional Offices have responsibility for the Davis-Bacon survey program. If the response from this initial contact is not satisfactory, then the process described in 2.) and 3.) should be followed. With regard to any other matter not yet ripe for the formal process described here, initial contact should be with the Branch of Construction Wage Determinations. Write to: http://www. wdol.gov/wdol/scafiles/davisbaconlMN68.dvb 10/20/2011 Branch of Construction Wage Determinations ~r. lli.llliJj:]1UI-IUJllffi['m1iUj"~~~__"'''''4~___''__'. Page 7 of7 Wage and Hour Division U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, DC 20210 2.) If the answer to the question in 1.) is yes, then an interested party (those affected by the action) can request review and reconsideration from the Wage and Hour Administrator (See 29 CFR Part 1.8 and 29 CFR Part 7). Write to: Wage and Hour Administrator U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, DC 20210 The request should be accompanied by a full statement of the interested party's position and by any information (wage payment data, project description, area practice material, etc.) that the requestor considers relevant to the issue. 3.) If the decision of the Administrator is not favorable, an interested party may appeal directly to the Administrative Review Board (formerly the Wage Appeals Board). Write to: Administrative Review Board U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, DC 20210 4.) All decisions by the Administrative Review Board are final. END OF GENERAL DECISION http://www. wdol.gov/wdol/scafiles/davisbacon/MN 68.dvb 10/20/2011 lliilU.nll[rO"lliilU:ljllllji~aw"~___...,,,,,, Attachment C - FEDERAL LABOR STANDARD PROVISIONS 11 Federal Labor Standards Provisions Applicability The Project or Program to which the construction work covered by this contract pertains is being assisted by the United States of America and the following Federal Labor Standards Provisions are included In this Contract pursuant to the provisions applicable to such Federal assistance. A. 1. (I) Minimum Wages. All laborers and mechanics employed or working upon the site of the work. will be paid unconditionally and not less often than once a week. and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR Part 3). the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof. regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under Section l(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics. subject to the provisions of 29 CFR 5.5(a)(1)(lv); also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs. which cover the particular weekly period. are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed. without regard to skill. except as provided In 29 CFR 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided. That the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under 29 CFR 5.5(a)(1 )(ii) and the Davis-Bacon poster (WH- 1321) shall be posted at all times by the contractor and its subcontractors at the site of the work In a prominent and accessible. place where II can be easily seen by the workers. (II) (a) Any class of laborers or mechanics which is not listed In the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. HUD shall approve an addllional classification and wage rate and fringe benefits therefor only when the following criteria have been met: Previous editions are obsolete U.S. Department of Housing and Urban Development Office of Labor Relations (1) The work to be performed by the classification requested is not performed by a classification In the wage determination; and (2) The classification Is utilized in the area by the construction industry; and (3) The proposed wage rate. Including any bona fide fringe benefits. bears a reasonable relationship to the wage rates contained In the wage determination. (b) If the contractor and the laborers and mechanics to be employed in the classification (if known). or their representatives. and HUD or lis designee agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate). a report of the action taken shall be sent by HUD or lis designee to the Administrator of the Wage and Hour Division. Employment Standards Administration. U.S. Department of Labor. Washington. D.C. 20210. The Administrator. or an authorized representative, will approve, modify. or disapprove every additional classification action wllhin 30 days of receipt and so advise HUD or lis designee or will notify HUD or its designee within the 30-day period that addllional time is necessary. (Approved by the Office of Management and Budget under OMB control number 1215- 0140.) (c) In the event the contractor. the laborers or mechanics to be employed in the classification or their representatives. and HUD or lis designee do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits. where appropriate). HUD or Its designee shall refer the questions. including the views of all Interested parties and the recommendation of HUD or its designee. to the Administrator for determination. The Administrator. or an authorized representative. will issue a determination within 30 days of receipt and so advise Hub or its designee or will notify HUD or its designee within the 30-day period that additional time is necessary. (Approved by the Office of Management and Budget under OMB Control Number 1215-0140.) (d) The wage rate (including fringe benefits where appropriate) determined pursuant to subparagraphs (1)(ii)(b) or (c) of this paragraph. shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification. (III) Whenever the minimum wage rate prescribed In the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. (Iv) If the contractor does not make payments to a trustee or other third person, the contractor may consider as part Page 1 of 5 fonn HUD-4010 (0612009) ref. Handbook 1344.1 of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found. upon the written request of the contractor, that the applicable standards of the Davis- Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. (Approved by the Office of Management and Budget under OMB Control Number 1215-0140.) 2. Withholding. HUD or its designee shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld from the contractor under this contract or any other Federal contract with the same prime contractor, or any other Federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics. including apprentices, trainees and helpers. employed by the contractor or any subcontractor the full amount of wages required by the contract In the event of failure to pay any laborer or mechanic, including any apprentice. trainee or helper, employed or working on the site of the work, all or part of the wages required by the contract, HUD or its designee may. after written notice to the contractor. sponsor. applicant. or owner, take such action as may be necessary to cause the suspension of any further payment, advance. or guarantee of funds until such violations have ceased. HUD or its designee may. after written notice to the contractor, disburse such amounts withheld for and on account of the contractor or subcontractor to the respective employees to whom they are due. The Comptroller General shall make such disbursements in the case of direct Davis-Bacon Act contracts. 3. (I) Payrolls and basic records. Payrolls and basic records relating thereto shall be mainlained by the contractor during the course of the work preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work. Such records shall contain the name. address. and social security number of each such worker, his or her correct classification. hourly rates of wages paid (Including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in Section l(b)(2)(B) of the Davis-bacon Act), dally and weekly number of hours worked. deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5 (a)(1 )(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in Section l(b)(2)(B) of the Davis- Bacon Act. the contractor shall maintain records which show that the commitment to provide such benefits is enforceable. that the plan or program is financially responsible. and that the plan or program has been Previous editions are obsolete communicated in writing to the laborers or mechanics affected. and records which show the costs anticipated or the actual cost incurred in providing such benefits. Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs. the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (Approved by the Office of Management and Budget under OMB Control Numbers 1215-0140 and 1215-0017.) (II) (a) The contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to HUD or its designee if the agency is a party to the contract. but if the agency is not such a party, the contractor will submit the payrolls to the applicant sponsor. or owner, as the case may be, for transmission to HUD or its designee. The payrolls submitted shall set out accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i) except that full social security numbers and home addresses shall not be included on weekly transmittals. Instead the payrolls shall only need to include an individually identifying number for each employee (e.g.. the last four digits of the employee's social security number). The required weekly payroll information may be submitted in any form desired. Optional Form WH-347 is available for this purpose from the Wage and Hour Division Web site at httD://www.dol.aov/esa/whd/forms/wh347instr. htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social security number and current address of each covered worker. and shall provide them upon request to HUD or its designee if the agency is a party to the contract, but if the agency is not such a party. the contractor will submit the payrolls to the applicant sponsor. or owner. as the case may be. for transmission to HUD or its designee, the contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It Is not a violation of this subparagraph for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for Its own records, without weekly submission to HUD or its designee. (Approved by the Office of Management and Budget under OMB Control Number 1215-0149.) (b) Each payroll submitted shall be accompanied by a 'Statement of Compliance," signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following: (1) That the payroll for the payroll period contains the information required to be provided under 29 CFR 5.5 (a)(3)(ii). the appropriate information is being maintained under 29 CFR 5.5(a)(3)(i), and that such information is correct and complete; Page 2 of 5 fonn HUD-4010 (0612009) ref. Handbook 1344.1 (2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in 29 CFR Part 3; (3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed. as specified in the applicable wage determination incorporated into the contract. (c) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the 'Statement of Compliance" required by subparagraph A.3.(ii)(b). (d) The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under Section 1001 of Title 18 and Section 231 of Title 31 of the United States Code. (III) The contractor or subcontractor shall make the records required under subparagraph A.3.(i) available for inspection, copying, or transcription by authorized representatives of HUD or its designee or the Department of Labor. and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available. HUD or its designee may, after written notice to the contractor. sponsor. applicant or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12. 4. Apprentices and Trainees. (I) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration. Office of Apprenticeship Training, Employer and Labor Services. or with a State Apprenticeship Agency recognized by the Office, or if a person Is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered In the program. but who has been certified by the Office of Apprenticeship Training. Employer and Labor Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who Previous editions are obsolete is not registered or otherwise employed as stated above. shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition. any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the Journeyman's hourly rate) specified in the contractor's or subcontractor's registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice's level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits. apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Office of Apprenticeship Training, Employer and Labor Services. or a State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program, the contractor will no longer be permitted' to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (II) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant . .to and individually registered In a program which has received prior approval. evidenced by formal certification by the U.S. Department of Labor. Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee's level of progress. expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits In acc'ordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits. trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by Page 3 of 5 fonn HUD-4010 (0612009) ref. Handbook 1344.1 the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at les.s than the applicable predetermined rate for the work performed until an acceptable program is approved. (III) Equal emptoyment opportunity. The utilization of apprentices. trainees and journeymen under 29 CFR Part 5 shall be in conformity with the equal employment opportunlly requirements of Executive Order 11246. as amended. and 29 CFR Part 30. 5. Compliance with Copeland Act requirements. The contractor shall comply with the requirements of 29 CFR Part 3 which are incorporated by reference in this contract 6. Subcontracts. The contractor or subcontractor will insert in any subcontracts the clauses contained in subparagraphs 1 through 11 in this paragraph A and such other clauses as HUD or its designee may by appropriate instructions require, and a copy of the applicable prevailing wage decision. and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in this paragraph. 7. Contract termination; debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract and for debarment as a contractor and a subcontractor as provided In 29 CFR 5.12. 8. Compliance with Davis-Bacon and Related Act Requirements. All rulings and Interpretations of the Davis-Bacon and Related Acts contained In 29 CFR Parts 1, 3, and 5 are herein incorporated by reference In this contract 9. Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR Parts 5. 6. and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of lis subcontractors) and HUD or its designee. the U.S. Department of Labor, or the employees or their representatives. 10. (I) Certification of Eligibility. By entering into this contract the contractor certifies that neither It (nor he or she) nor any person or firm who has an Interest in the contractor's firm Is a person or firm ineligible to be awarded Government contracts by virtue of Section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be awarded HUD contracts or participate in HUD programs pursuant to 24 CFR Part 24. (II) No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of Section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be awarded HUD contracts or participate in HUD programs pursuant to 24 CFR Part 24. (III) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C. 1001. Additionally, U.S. Criminal Code. Section 1 01 0, Title 18, U.S.C., "Federal Housing Administration transactions", provides in part: "Whoever. for the purpose of . . . influencing in any way theaclion of such Administration..... makes. utters or publishes any statement knowing the same to be false..... shall be fined not more than $5,000 or imprisoned not more than two years. or both." 11. Complaints, Proceedings, or Testimony by Employees. No laborer or mechanic to whom the wage, salary, or other labor standards provisions of this Contract are applicable shall be discharged or in any other manner discriminated against by the Contractor or any subcontractor because such employee has filed any complaint or instituted or caused to be instituted any proceeding or has testified or Is about to testify In any proceeding under or relating to the labor standards applicable under this Contract to his employer. B. Contract Work Hours and Safety Standards Act. The provisions of this paragraph B are applicable where the amount of the prime contract exceeds $100,000. As used in this paragraph, the terms "laborers" and "mechanics. include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which the individual Is employed on such work to work In excess of 40 hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of 40 hours in such workweek. (2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth In subparagraph (1) of this paragraph, the contractor and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (In the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each Individual laborer or mechanic, Including watchmen and guards, employed in violation of the clause set forth In subparagraph (1) of this paragraph. in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of 40 hours without payment of the overtime wages required by the clause set forth In sub paragraph (1) of this paragraph. Previous editions are obsolete Page 4 of 5 form HU04010 (0612009) ref. Handbook 1344.1 (3) Withholding for unpaid wages and liquidated damages. HUD or its designee shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld. from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contract. or any other Federally-assisted contract subject to the Contract Work Hours and Safety Standards Act which is held by the same prime contractor such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided In the clause set forth in subparagraph (2) of this paragraph. (4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in subparagraph (1) through (4) of this paragraph and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in subparagraphs (1) through (4) of this paragraph. C. Health and Safety. The provisions of this paragraph Care applicable where the amount of the prime contract exceeds $100,000. (1) No laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary. hazardous. or dangerous to his health and safety as determined under construction safety and health standards promulgated by the Secretary of Labor by regulation. (2) The Contractor shall comply with all regulations issued by the Secretary of Labor pursuant to Title 29 Part 1926 and failure to comply may result in Imposition of sanctions pursuant to the Contract Work Hours and Safety Standards Act, (Public Law 91-54, 83 Stat 96). 40 USC 3701 et sea. (3) The contractor shall include the provisions of this paragraph in every subcontract so that such provisions will be binding on each subcontractor. The contractor shall take such action with respect to any subcontractor as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as a means of enforcing such provisions. Page 5 of 5 form HUD-4010 (0612009) ref. Handbook 1344.1 Previous editions are obsolete Revised IOn/99 STANDARD ASSURANCES I. NON-DISCRIMINA TION. During the performance of this Contract, the Contractor shall not unlawfully discriminate against any employee or applicant for employment because of race, color, creed, religion, sex, national origin, disability, sexual orientation, age, marital status or public assistance status. The Contractor will take affirmative action to ensure that applicants are employed and that employees arc treated during employment without unlawful discrimination because of their race, color, creed, religion, sex, national origin, disability, sexual orientation, age, marital status or public assistance status. Such action shall include, but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of payor other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices which set forth the provisions of this nondiscrimination clause. The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, religion, sex, national origin, disability, sexual orientation, age, marital status, or public assistance status. No funds received under this Contract shall be used to provide religious or sectarian training or services. The Contractor shall comply with any applicable federal or state law regarding non-discrimination. The following list includes, but is not meant to limit, laws which may be applicable: A. The Eaual Emolovment Opportunity Act of 1972, as amended, 42 V.S.c. ~ 2000e ~ ~. which prohibits discrimination in employment because of race, color, religion, sex or national origin. B. Executive Order 11246, as amended, which is incorporated herein by reference, and prohibits discrimination by V.S. Government contractors and subcontractors because of race, color, religion, sex or national origin. C. The Rehabilitation Act of 1973. as amended, 29 V.S.C. ~ 701 ~~. and 45 C.F.R. 84.3 (J) and (K) implementing Sec. 504 of the Act which prohibits discrimination against qualified handicapped persons in the access to or participation in federally-funded services or employment. D. The A~e Discrimination in Emplovment Act of 1967, 29 V.S.C. * 621 ~~. as amended, and Minn. Stat. * 181.81, which generally prohibit discrimination because of age. E. The Equal Pay Act of 1963. as amended, * 29 V.S.C. * 206, which provides that an employer may not discriminate on the basis of sex by paying employees of different sexes differently for the same work. F. Minn. Stat. Ch. 363. as amended, which generally prohibits discrimination because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, sexual orientation or age. G. Minn. Stat. & 181.59 which prohibits discrimination against any person by reason of race, creed, or color in any state or political subdivision contract for materials, supplies or construction. Violation of this section is a misdemeanor and any second or subsequent violation of these terms may be cause for forfeiture of all sums due under the Contract. H. Americans with Disabilities Act of 1990, 42 V.S.C. ** 12101 through 12213,47 U.S.c. ** 225,611, with regulations at 29 C.F.R. * 1630, which prohibits discrimination against qualified individuals on the basis of a disability in term, condition or privilege of employment. 2. DA TA PRIVACY. For purposes of this Contract all data created, collected, received, stored, used. maintained, or disseminated by Contractor in the performance of this Contract is subject to the requirements of the Minnesota Govemment Data Practices Act, Minn. Stat. Chapter 13 and the Minnesota Rules implementing the Act now in force or hereafter adopted as well as the Federal laws on data privacy, and Contractor must comply with those requirements as if it were a governmental entity. The remedies in section 13.08 apply to the Contractor. Contractor does not have a duty to provide access to public data to the public if the public data are available from the governmental agency (CDA), except as required by the terms of this Contract. All subcontracts shall contain the same or similar data practices compliance requiremcnts. 3. RECORDS DISCLOSURE/RETENTION. Contractor's bonds, records, documents, papers, accounting procedures and practices, and Olher evidences relevant to this Contract are subject to the examination, duplication, transcription and audit by the CDA and either the Legislative or State Auditor, pursuant to Minn. Stal. * 16C.05, subd. 5. Such evidences are also subject to review by the Comptroller General of the Vnited States, or a duly authorized representative, if federal funds are used for any work under this Contract. The Contractor agrees to maintain such evidences for a period of six (6) years from the date services or payment were last provided or made or longer if any audit in progress requires a longer retention period. 4. WORKER HEALTH. SAFETY AND TRAINING. Contractor shall be solely responsible for the health and safety of its employees in connection with the work performed under this Contract. Contractor shall make arrangements to ensure the health and safety of all subcontractors and other persons who may perform work in connection with this Contract. Contractor shall ensure all personnel of Contractor and subcontractors are properly trained and supervised and, when applicable, duly licensed or certified appropriate to the tasks engaged in under this Contract. Each Contractor shall comply with federal, state and local occupational safety and health standards, regulations and rules promulgated pursuant to the Occupational Health and Safety Act which are applicable to the work to be performed by Contractor. ~ c:l.r. City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Quality Ingredients Corporation - 21025 Edmonton Avenue DATE: November 28, 2011 INTRODUCTION Quality Ingredients Corporation, Inc (Qle) is pursuing the purchase of the property located at 21025 Edmonton Avenue (Exhibit 1) for chemical and food ingredient processing. The property consists of two parcels: Lot 1, Block 4, Farmington Industrial Park and Lot 1, Block 4, Farmington Industrial Park 2nd Addition (Exhibit 2). Recorded against the property are a Development Contract (Exhibit 3) and the Industrial Park Addition (Exhibit 4) and Industrial Park 2nd Addition Declarations of Covenants (Exhibit 5). DISCUSSION QIC requests approval of the following documents: · Release of Land from Development Contract (Exhibit 6) · Estoppel letters re: 1990 covenants (Resolution Exhibit A) · Estoppel letters re: 1996 covenants (Exhibit 7) Release of Land from Development Contract The Development Contract is dated May 21, 1991 and is between the City and HRA. All requirements outlined in the terms of the first phase of the Farmington Industrial Park have been completed. The request for approval of the Release of Land from Development Contract to amend the original Development Contract and release the land (Lot 1, Block 4, Industrial Park Addition) from the development agreement. The EDA should discuss the proposed use and alterations to the property in the specific context of the 1990 and 1996 covenants. In the covenants, the original Declarants (1990: Elizabeth C. Murphy and Bernard D. Murphy and 1996: Bernard D. Murphy and Lexington Standard Corporation) appointed the HRA as the agent and attorney-in-fact to act and to perform any act, function or duty of the Declarants hereunder." Accordingly, the appropriate course of action would be for the EDA to review the proposed use and alterations and acknowledge if they comply with the terms and conditions of the covenants. Qle's plans and specifications are attached (Resolution Exhibit B). · The proposed use of the property is for food and chemical ingredient processing whereby QIC processes wet material into dry powders. · The proposed alterations include: o Raising a portion of the existing roof to a height of 68 feet. o Installation of product silos on the southwest side of the building. The proposed use and alterations to the property must satisfy both the city code and the applicable covenants. On November 8th the Planning Commission approved Qle's request for a variance to exceed the maximum height requirement within the IP (Industrial Park) Zoning District to raise a portion of the existing roof. The City granted approval to allow for the outside storage of tanks. Please see the November 8th staff memorandum for additional details (Exhibit 8). Estoppel Letters QIC has prepared the attached Declarant Estoppel letters and requests EDA's approval and execution. One of the provisions included in both of the estoppel letters states "The Property is subject to the Declaration, and the Property and all improvements thereon fullv complv with the terms and conditions of the Declaration." The existing property has been reviewed for compliance with the Declarations of Covenants and the following preexisting elements appear non-compliant: Loading dock location and screening, and parking lot location. The EDA (as Declarant) can approve, by resolution, these "non-compliant" items because they are preexisting. The estoppel letter regarding the 1996 convenants includes a provision that the EDA (as Declarant) prior to approving plans and specifications of any alteration, has provided opportunity for the property owner and adjacent property owners to provide comment regarding Qle's proposed use and alteration of the property. Notice has been provided. To allow sufficient time for comment, the EDA can not take action on the 1996 covenant estoppel letter at tonight's meeting. Therefore. a special EDA meetim!: has be scheduled for Mondav. December 5th at 6:45pm to consider comments and take action on this item. Staff's recommendation is to approve and execute the Release of Land from Development Contract, Resolution acknowledging existing 21025 Edmonton Avenue property conditions and Qle's proposed use and alterations as compliant with Declarations of Covenants, and Estoppel letter regarding 1990 Declaration of Covenants. ACTION REQUESTED Approve and execute the attached Resolution approving the Release of Land from Development Contract and approval of estoppel letter under declaration of covenants. Respectfully Submitted, Tina Hansmeier Economic Development Specialist Cc: File Andrea McDowell-Poehler, City Attorney Bob Freemore, QIC ft. I Property Card ParcellD Number 14-25850-04-010 Fee Owner Owner Information RIVER VALLEY BANK Mailing Address 327 N 17TH AVE WAUSAU WI 54401 Property Address Address 21025 EDMONTON AVE Municipality FARMINGTON Last Qualified Sale Sale Value Uses Parcel Information Total Acres 2.31 $0.00 Rrw Acres INDUSTRIAL-PREFFERED Water Acres Plat Lot and Block Tax Description FARMINGTON INDUSTRIAL PARK 14 Building Type Building Style Frame Multiple Buildings 2011 Building Characteristics (payable 2012) Year Built 0 Bedrooms Foundation Sq Ft Bathrooms Finished Sq Ft Misc. Building Garage Sq Ft Other Garage School District 192 Watershed District VERMILLION RIVER Miscellaneous Information Homestead NON HOMESTEAD Green Acres Ag PreseNe Open Space 2011 Land Values (payable 2012) 2011 Building Values (payable 2012) 2011 Total Values (payable 2012) 2010 Total Values (payable 2011) Assessor Valuation Taxable $327,500.00 $1,150,100.00 $1,477,600.00 $1,560,700.00 Estimated $327,500.00 $1,150,100.00 $1,477 .600.00 $1,560,700.00 Net Tax (payable 2011) $58,856.46 Property Tax Information Special Assessments (2011) $543.66 Total Tax & Assessments (2011) $59,400.12 Disclaimer: Map and parcel data are believed to be accurate. but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search, appraisal, sUNey. or for zoning verification. Monday, November 21,2011 Dakota County. MN Page 1 of 1 Print Preview Page 1 of I Dakota County, MN fx '2 Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search, appraisal, survey, or for zoning verification. Map Scale 1 inch = 419 feet o T/) tl" (1:. ( ..+ C' be..," ( {C(\'S{i,c(( YO"", Dcuc \OpNC r-t CDntvllc* http://gis.co.dakota.mn. us/website/dakotanetgis/printPreview.aspx?PrintOptData=Dakota c... 11/21/2011 2>(. '3 Plan D - praliulinnry Engineering Report Plan E - Final Plllt of First Addition 4. R,eQuired Public Improvem~nts The Developer shall ins~aLl and pay for the following: A. Sanitary Sewe: System Il. 'Water ::'ystem C. Storm Sewer D. Streets E. Concrete Curb ,md Gutter F. Stree t Signs G. Street Li&hts R. Sidewalks I. Site Grading and Ponding J. Undergraur.d U!:l aties K. Setting of Lot and Block Monuments L. 5tH"Ve)'i r.g and Staking 'The :Improvements shall. be installed in accordance with the prelimimlt'Y engineering report. Plan A. and in accordance with City sl:a::ldards. (,rdinancell and plams and specif.i,eations 'which havll been prepared by a :ompetenl: regtBt/:'lred professiol,sl engineer furnished co the City and approved by the City Engineer. The Develc)per shall o'btll1'11 all. n41CeSS&r.y permits from the M.~tropolil:an Wallte Control Cmmaission and! other agel etes before proceeding with construction. The Developer shall instruct: its engineet. 1:0 provide adeqU.:lte f:leld inspection personnel to assure an iLceeptebl.e hveJ. of quality CO"ltx'ol 1:0 the e:ctent that the Develnper's eng:f.neet: will be ab \.41 t.o eertHy ct the clmstruction w01:k 2 I \<ll b,' ','. :' ! I Ii 1 .' . ~ . L I j 1" il .. - I, ~ 11 t 1 . . j \ '[I \ '. .. I I ~ ..I:.b '. I 'I ' iL I ~ I I \ ! .' ..ets the approved City freandard&: as a condition of City llcceptance. In additioll. the City :illY. at th. Chy'loI discretion and at tt.e Developer's expensp., have one or 1I0re CHy inspectors /lnd a soil engineer inspect the work on a full or part tille basis. The Ueveloper or hi3 engineer shaLL schedule a preconstruction meetinl~ at liI mutulll1y aK:~eeabl.e tiUle at the City Council chambers with all partj~s concern~d, incJuding the Cit:' stsff, to review the program for the cons~ruc;tion work. Withj.n thirty (30) daY'1 after the cot!pletion of thl1 improvements i1nd befon thll l1ecurity is released, the Developer shall supply the City with a complete 5~.t of reproducible "As Built" plans. 5. Time of Performance The Developer shall install all required public Improv81llents by June, 1991. The De'leloper lIIay, however. re~uest an extension of tme frolD the City. If an extenS1'Jll is grant.d, it shall be conditioned upon updating the security posted hy th'l Developer to reflect CO:Jt increases. 6. Ownership of l1!2!.!lveUlent:! Upc-Tl the ':')1IIplet10n of the w(lrk and construct1on required to be doue by thiS ^nre'3l1emt, the :!.mprovelllcnts lyiroS wi. thin public easements sball bec~~ City p:operty without further notice or action. 7. !arrant~ The Developer w~rrants all work req~ired to be performed by it aSlIiulIt poor matedal and faulty workmanship fOL a period of one (1) year after 1\:8 cClIIlpletion and acceptance by tlm City. All landscaping tncluding. but not limited to, treee, busl:1es, s:nubs. lIrass and !lod, ehall be warranted to be alivlI, of good quality and disuse free for twelve (12) lllontlls after planting. Any replacements sha.ll be wart'.1lnte,,~ for twlllve (12) months frOUl the time of plant:ing. The Developer shall. pOl'lt 1llll:Lnter.!1nce bonds ot' other SIlcurity acceptable to the City to secure the warranties. 3 10. Landscaping 'thel DeveloplIr aha 11 landscape the plat in accordanCE: with Plan C. t~. landscaplng shall be accomplished In accordance with a time schedule approved by the C:Lty, 11. Phased DevclO'Plllent The plat shall be developed in eme (l) phue in accordance with Plan A. No earth moving, construction of public improvements or othor deve10plllent shall bl! dCnil in any phase until a final plat for t.he phase has 'buen filed in eho County Recorcl~r' s office and the necessary security halJ been furnished to t:'he Cit~'. Fot' purposes of this requirement, outlots shall not be alltlmed to have been fins1- platted. The City moy refune to approve final pla.ts of subseque'nt phasell until public improvemetlts for all prior phases have been sa1:isfactClrily completed. Subject to the terms of this agreement. this Doeve1.opment Colll:ract constitutes approval to develop phase numbot'. De'lelopment of subsequent phases may ~ot proceed until develo~ment agreements for such lIbasEla a-re approve'~ by the l;iClI. 12. !ffect of Subdivision ~2E!~~ For two years from the date of th1.s Ae;reement, no amendloents to the (::lty' B compreh..,llsive Plan, el(Cepe an aUlendraent placing the plat in tlle current urban service area, or rel!oving any pal't thereof whicb has not been final platted, or official controls shull apply to, or affect the use, develop1lll!n'l: density, lot s1ze. lot " ,"out or dedl.cations or platting requir(~d or pennittlild by the approved preliminary plat unless required by State 01: Fe,deral law or agreed to in wdttng by the City and the Jllp.'~eJ.opl!r. thereafter. not'Jithr.:tanding IInyl:1\;l118 in this Agreement: to thl! contrary. to the full IllCtent penn1ttcd by State' .au, the City may requ:l,re, coml,liance with any lJIlIendments to the CHy's Camprlohons:ive Plim (including removing unplatted prop<:\rty f-rom the ul'bllln se"i,ce neB.). official controls, plal:ting OT dedication 5 r.' 5 .' :llllprovements installed pur:Ju.ant tll the development I;Qntral:t hove been installed and accepted by the C:I.ty. 17. ~lean UP The }":"lJlopu shall promptly clear from public stnetD and property any 90il. ,!arth or debris resulting from construcc:l.on lTork by tbe D~veloper or :l.ts agl!nt nr Ilss:!.gns. .~ 18. Security To gt.arante6. compliance witb the terms of l:h:1s Agreement. payulent of the costs of ;111 pubolic 1.mpro\lements in Phase I 8';1d conDtruction of all public illlprovements in Phas" I, tbe Developer shall furnish the City with a cssh ucrar, from a bank for $ 65Z,OOO. The bank shall 1,e subje:ct to the approval of the City Administrator. TM security shall be for a ptlriod ending JUlie, 1991. If tbtl required publ!.c imprllvements are not completed. or terms of the agreement are nut satisfied. a.t least thirty (30) days prior to the expiT.:!tiotl of security. the City may dra1o' down the security. The C:I.ty may draw dOlm the Sei:udty. without prtor ~'1ot:lce, for any violation of this Agrlll!11lent. The amount of the security was calculated as follows: Gl:ading $ 30.000 Monuments $ Iosltalle!d ~anitary Sewer $ lZ5.:B55 St. L:I~hts & Signs $ 1,000 (signs) Water Main "' l4!'.500 Erosion Control $ Incl. in Street/SewerthTater Storm Sew'lr $ 12.350 Engr, Sun & Insp $ Incl. in Street/Sever!Uater Streets $ ~\3(l. lOO StO'ClD Selver Charge $ ..0- Blvd. Trees $ !1.000 Blvd. S<Idding $ ..0-. t9. fu!spo.!!!.i~gg'y.2~!..s~} A. The Developer shall pay ull costs incurred by :It: or the City in conjunction with the devetClp~:lent of the plat, including, 'ou.t not Hmit.ed to. Soll and Wat-er Conlle'L"vatiol1 r.lstrl.c:t Ch:arg<as, legal },).a[lning, construcdon 7 COlts .~sln.or1ns and in.p.c~ion expenses incurred in conn~ction with approval aDd acceptance of the plat, the preparation of this Agre~ment, and all l:easo1ll/.ble costs and expenses incurred by the City in IDonitoring and inlJpect:l.ng development of the p ls. t. B. The Developel: shall hold the City and its off1cers and eqlloyees I1anless fl:OIll cla1ms made by itself and tr.il:d parties for devlagell sustained or costs incurred l:esulting from plat approval and development. The Developer shall indemnify the City and its officers and employe os for all costs, damages or expenses which the City 'lIIay pay Cot incur in consequellce of such claims, including attorney's fees. C. The Developer shalt rei~bu"se the City for costs incurred in the enforcelllent of this P.greement, incll:dlng engineering and attorney's fees. "D. The Develoit'er shall pay in full all bills submitted to it by the City within thirty (30) ,lays after rece:l.pt. If the bills are not paid on time. the City Illay halt 1111 pl.at development w-ork until the bills are pa~ ~ in full. Bills not paid Trlthin thi1:ty (30) clays shall accrue interest at; the rate of 6% per year.. 20. Developer's Defaulttn I:he event of default by the DevelOj)er as to any of the \lol~k to be pedoned by it hereundttr. the City may, at ::lts o),tion, perfon the woJ:l~ and the Dllv,eloper shall p,ompt:!y reimbu:rse the City for any expense incurred by thE! City. provided the l>eveloper is first given wrJ,tten notice of the work in default, not less than 48 hours in advance. This ~greement is a licenlle for the City t<l ae~', and it shaJ 1 not be necessary for the City to se<ak 6 \ ' ...' \l \1"" " . \ f I . .9 \ , I j e . I j , -)" I. Developul:' shall take out and maintain until aix Dlontr.s a!:ter the City lias accepted the publill iuproVBments, public liability and property damage insurance coveritLg perllonal injur~. includina death, and claims fO'r property damege which may aris~ out. of Developer's work or the work of its subcontractors .,r by one directly or indit.'l!ctly elllployed by any of them. Limits for bodi1.y injury or death shall be not: leGs than $500,000 for OM perBon and $1,000,000 fol:' each occurrence; l~its fo~ pl~perty damage shall be not less than $200,000 for each occurren::e. The C:l ty shall be named as an additi.):nal named insu::ed on sl~id pol icy, and ))nveloper shall file a copy of the inllurance coverage with the C:f.ty pr:lor to the (:ity signlng the plat. 22. Notices Req\:dred notices to the Developer shall be in 'Hit:l,ng, and shall be either hand delivered to the Developer, its employees or agents, or mailed to '.:be Developer by certified (Ir roegistered mail. at the fo llowing address: Fa11D:l.ngton Housing .and Rec'evelopment Authority, 325 Oak Street, FaI'll1ington, .'ti.:uilesota, 55014. Hoticof!S to the City shall bu in writing and shall \le either band dBlivered to the City Admin1st1:ator, or wailed to t:he City by certified tGa:ll or regist:llred mail in cat'e of tile City Admin1stratc1r at the foll~rlng ndc1nsfl: , FanningtoOn City Hall, 3'25 Oak Street. Farlllington. Minnesota 55024: Attention: C:I.ty Administrator. 0iIr~n'8 : ~~~r.& /'7~~ -. ~"::. tin I. e ,,_ ~_:I. ~1.6 . l&Ur.1 eth C. !lu1:'JilhJ' ~ I City of f_~ . ~ ~ tI , /._ II ...-t~r&,...c.V t.aL. ~ ..~ 7 ~~ "",:/ ~ator .-1.~~,f?;: Ah~J.d;;:,,- Cha:Lr ~~ . Hauaing fmd Redevelop_nt h1thority 11 \' \ ,II l! I. I \' IiI' \: ,'. l' f' I' 'I t', :,: ',i' :1 . 11\' \ 11 I . . Iii 1\111" . \ I !I\' , COHSEN~ Fend.ngton Houshg and Redevelopment .\uthot'ity, he owners of all Dr psr.t of the SUbjllct property, the deve LoplIlent of which is governed by the fe-regoing development agre.alllant, affi,rm and consent to the pr'oviB:ions thereof and agree to be bound by said provisions as the same may apply to that portion of the subject prop.,rty owed b;T them. Dated this,JtQJy! ds}' of (\.'~";'1'-' 1990. _ rO~ '~ -_~ _ __:1 STATE OF MINNESQ]~A ) , ( as. COlJNTY OF DAKOTA ) (L:r~. foregoln.g 1nslZqment was ackuc.wledged before me tht., ..a~Lday of~' 1990 by 7:~...J!.:i ~-~~ ~_}J-~~~~-- .-" I" '-J Notary Fubl1c . I<AAEN M. FINST!JEN IIOTAIl'I pUlUl . DAKOTA COUNTY IJV ~~+'.\1l1 STATE OF MINNESOT~ ) ( ;ss. ~nstrumentt was ::.cknowledged before me thill _;;;3.flJ,. day of .J!. (U Ll J.< Ilfr-~ ._- " ~ lk. k~;;;t,v- Notary Public COUNTY OF DAKOTA n:. I ~l1e foregoinlt ~t. 19!:!). b:/ Drafted by: City of Farm.ngton 325 Oak Street Val "lington, Minnesota 55024 ~.!I;' ~ En ~'" lClTASN PU8l.lC . DAKOTA coullTY .' ..... ~1'lU=~~S :~''''~ t3 I \" ' 'I I', :~~ 11. f 11 \ ~ . I'll I' ~ I ': 1"1" .,' \ I ,i' ~ ~ 'I I " [1'\ ~' . \ --~~-- . " APPENDIX A CIT~ OF FARMINGTON DEVBLOPERS AGRHKMENT FARMINGTUN I.NDUSTRIAL PARK PLAT STORM SEWER AND WATER AREA CHARGES : 'rOTAL LOT AREA I 34. ~a STORR SEWER CHARGe: $125.779.5Q ,:WATER AREA CHARGE: $59,630.00 STORN SEWER \>lATER TOTAL Lo'r BLOCK AREA % AREA AREA CHARGES ------------- - -----... -.- --------- --.... ------------ ------..--- .--- ---------------- 1 1 2.1.8 6.3.17% $7,945.50 $3.767,2J. $11.712.71 2 1 Loo '. . 810% $0.050.25 $2.866.6J. $8,918.86 J 1 1.J"i' .3. 97V't. :)4.'J9J.2.7 U.36i".47 $7.3&0.14 10 1 1.37 J.970'\ $4.993.27 :~2.367.47 :;'7.360.74 ;:; 1 1.46 ,~. 231% $5,321. .30 :52,523.uv $7.844.30 1 2 2.54 7.360% $9,257.&0 $4,389.32 $13,646.92 2 " 2.0S 6.02.7% $7,58l.v3 $3,59...41) $1l.,175.43 ~ 3 2. 1. 79 ~i.187% $6.524.(;6 53,093.26 $9.617.32 4 ;/. :LS:'4 U . v69% :;.l.J, 922. 85 56 . 60 1. . 26 $20,524.12- 5 .2 3.15 9.215!li UA. 590. 23 $5,495.29 $J7,085.52 1 J .2.30 tJ,665!}; $!;,.}&2..Si $3,974.5& $12.357.45 .2 J 4.40 1~:. 750"0 UI,.,[).3&.80 $7,6;)3.55 $23,640.34 3 3 2.\}1/ 5. 795.~ :H .289.45 ~;3, 4Sb. 1.6 $10.745.61 4 .) :,.00 s. i95!i :Iti' , 289.45 $3 . 456 . J 6 $10,745.&1 1 4 :LJ6 6.839% $H.;J01..55 ~4,078.;H $12.&79.82 .._---_.._------_._-----~~~----------------,._---_...------------- 34.51 h1(1.1)00% $125.779.50 $59,636.00 $155,415.50 ============:=====================:======;=;===;:========~==~= ~)( i ~ 4.0 Al'PROV AL OF l'LA1iS:: Prior to eonstructlell nr alteration of any building or other structure, two complete sets of b~lldjing and landscaping plans and specifications shall be sublU.tt8d to Declarant for its approval. No building, IItructure, or other 1mprovlllllent sball b. cunstructed. altered or placed upon the affected property until the 10cat10n, df1s1gn. p1.anll and sllec1f1cacions fot such (including 1andecaping) shall \18\'e been first app'C.oved by Declarant. If Declarant fails to approve or deny plll:as sublllitted to it within 60 days of receipt, it shall be pr..UlllCd that such plmml as submit ted are approved. s.O BUILDING MATEllIAL AIm DESIGN: 5.01 KlTEIlIOll. WALLS: A. :€xtcll::I.or Walli 011 buildings to be constructed on the following described lots, to wit: Block 1 Lets 3,4 and 5 Block 2 Lets 3 and 4 Block 3 lets 1,2,3 .1nd 4 Exterior "81ls .shall COllsist of one or IDore lIf the following lIIatet'1als: BRICK shall be of a ~ize, type, texture, color and placement to be approved by Df!CIarant. stONE shall. have a ..."nthel~ed face err shall be polished, fluted 0; broken face to i);l4PprOVeci by Dec larllnt:. CClNCJlE"!Z MASONRY units shal.I. be those generally C1es,cribed as "custOlllized IlJ:ch:Ltectural Conc:ret:~l ~(as(lm:y Utl1 ts" or shllll be broi:eu faced brick-type units ''''.th m.uble IlggUg.atElt. 10 e1t:he:r cue to be Ilpproved b~1 Declarant. All concrete llUL80nrlT Ult:l.tlll shaLL 1.., coatl!d Il/it'b a coatinl& approved by Declarant. !here shall bll no exposed coner(":.' block on theextet'lo:r of any building unless approved by J)f'clarant. !!~ lJU:\y De p~u:rlld in place, tilt-up "r precast and shall be finished in 111:0'114, textured 01.' o::,pm:ecl 111 a mannet' to be appt'oved by Declarant and with a lid."/lJ.mIm life expectal:loCl' of 10 yealS. B. ~:terior t.l;SI.Ls on, buildings to 'pEl COl1~;!~cted on the fol.lowi.1tll described :Lot:s. to \rit: !lJ.ock 1 lota L aDd, 2 Ill.ock 2 lots 1, 2 an,! ~i JU.ock 4 lot 1 R:I:t:er:f.or Walls sha.ll ~llnsist of oua or DI~re of the followinf\ lute rials : BRJ:CK I1ha1,1 be of sho, type. texture. color and plac emenl: to bo j)fK: larant . approved by STONE aha!l have welllthe't'ed face Of shall be polished, fluted, or broken face to i;eappro".,d by Declara:nt. -:t- , . ~.' I'" . \ I' ': I' ~ ~ I I : ill 1, ",' I .I ,.. I" ,I" I., .:' . .... 'j COJlCRS'I'! llASONRY unit'! ahaLl bll C:,OBtl 'len.rally ductibod all "Cu&tomiud Architectural. Concreto liaaonry Units" or shall be broken farl!d brick.-type units with urble aggregate. ill t.llther cssa to be approved by Declarant. All concrete masonry units shall be ~out~d 1,ith a coating approved by Declarant. There shall be 1\0 exposed couente OlOl;lr. on the tlCter1()r of any building unless approved by D.clar~nt. CONCR.tT! may be pound ill place. tilt-up or pncBSt and shall be finished in stone, textured or couced in ~ manner to be approved by Declarant and with a md.nillnlJD !:tfe expectanc'l ::If 10 y.ears. FRE-ENGINKImED KETAL 'i'Iiit'&i- ma':erials and self-weathering type consi~ered or sidings nhall be ueed only in combination ',dth U1?lln the Bpel:1fi~ ap'proval of Declarant:. 0:1; with a long ll.fo, (10 yeaI'D urlni:llllJlll) 01: el\uivalent strength and durability. one of the above Only sidings of finish will. be 5.02 (:AJ\iOP.IESs No cano/li-eli wl.tb via:lble wdl hangers will be pel'lDitted. Desig~ of CillllOpi'IS shall be r.n I~eeping ,dtll the design of the builIJing and shall be approved by De~larant prio~ to consttuctio~ or alternation. 5.03 liDOF MOUNTED EQUIl?l!'IEN!: lW.Jf mounted. equipment shall be located or screened as may b'l required by Declarant tc> minimize visibility fr')14 the street or surro\'luding bui.Ldings. 5.04 'LOADING DOCKS: I.oeding docks ..i1all DOl: be constIucted faci.ng Highway 50 or other dedicated streetl~. Provision must be made for hand.ling all freight on those sid,!s of~he buildings whLch do not f.~ce a dedicated st:ee~t or Highway 50. All load:lng doc1<.s !DUe,t be scr,eened ftOlll risibility by the public and from adjacent buildings it: fl manner apptoved by Declarant befo:,e const1;'Uction !,l' .11..\ teyatio':l. 5.05 COV!lACE: Unless otherwise approved by Declar~nt. the ratio of building square fO:Jcage aud park:Lng area to the totaL square footage o.E any buDding site w!thin the affected ptoperty shall not eKceed 50%. 5.06 UNDERGROUND UTL~ITIE3: ~uildings and $t~lcture9 located :In ~he Farmi~gtQn lnduscrial Park shall be served by underground utility distrlbution facilities. The installation of sUI:b utilities shail not change the grad~ or contour of the land adjacent thereto. 6.0 BUIlDING SEtBACKS: No bu:U,ding or other st::uctur6 shall be erected nearer than 50 het to the front property line; nearer :hau Z~; feet to any side property line; or near.er than 25 feet t.~ any resr proper;y line. 7.0 PA'RKt:llG: Upon completion or oC:':IJpanc~' of building, which ever occurs fl.rst. all parking areas, d:eiveways and lo-ading areas shal.l be surfaced wi th esphal.t pavement using MNDO't gu1.delines. -3- 7.01 OFF STREET l'AlU<lNG SPACl!S FlEQlltRED: to lierva each sUe. 'the fo11o\ling m1n:tmums: a. One space b. One space c. One space The'te will be no Off street parldng AhaLl be provided cdted,a eonsd tuting the absolute for every 600 sq. ft. of Industrial Space for every 200 sq.ft. of office spacr, for each 2000 sq.ft. of storage areR parld.ng on IIny st:re.HS. 7.02 SCREEN'ING: All paddng areas shaLl be screened in a Dlanner approved by the Declarant. 7.03 LOCATION: Pal:king will. not be 'Permitted witb1n 35 feet of the front property line (those facing any dedicated street), within 10 feet of any side property line or within 10 feet: of a'lIY' rear ptoperty line. 8.0 ALTERATIONS TO BU'ILDINGS: Any alter'ations 1:0 blJildings shall meet all require.uents of these covenants and the City Code. 9.0 LANDSCAPING: All open spaces $hall be dustproof.ed, surfaced, landscaped, rockacaped or devlJted to lawns. 'Not less than two-thirds of tne required buildin~ setback area from a~y dedicated street shall be landscaped lawns, trees. shrubs and walkways of a de:!l1g11 apl'roved by Declarant. Landscaping as approved by Declarant shall ~e insr.alle~ within 90 days of occupancy or substantial completion of tbe building. whichever occurs first, weather gerinitting. 10.0 SCREENING: 10.01 STORAGE: No articles, gO'Jds. materials, incinerators, storage tanks. r'efuse containers or lik.e equipment shall be kept in the open or exposed to public view or view frolll ad1acent buildings without the approval of the Declarant. In tkle event that ll?proval is granteci, all IlIaterials shall be screen,ed fro;' view and all storage sh~ll be limit:edto tb,e rear two-thirds of the propertY' lrith such storage n.)t occurring within 50 feet of any street ['ight-of-way. 10.02 STRUCTURE: No water toweT, storage tank. p'rocessing equipment, skylights, cool ing towers. or other ancl11a1:7 str'lctures oX' outside equipment shall be constructed, ere~ted or placed on the affected propelty without prior approval of Declarant .C'J the event that such approval is granted. s'uch structures shall be screened from public lIillW ,and the vie\l of adjacent buildings in a manner approved by the Oec1arant. 1.1.0 SIGNS: All signs shall be of a d\!si!\D 8t,d lIIaterial .~pproved b)' Declarant. Unless otherwise appto'red by r'e(!larant, .111 signll 1IIUst be at:tached to a building, and be parallel to And contiguous wittl its ~al1s a:nd not. ptojecting above its roof line. No sign of c. flashing or. mOl,ing character ..halJ. be :Installed at'i no sign shall be painted on any building wall. (Genetsl g\liclelJ,nes for signage ~,vtdlable at Deci.u:ant' S .Jffi,coa). -4- , "CClIllIlenC81DUnt of Const1:uction of /I B'.1ild.lng" as defined herdn: a. Plana approved by Declarant a'l sel: forth in Section 4 hereof. b. Ower obtained building pe1'llli'~s from the appropriate gover'llll:ental authority authorb1.ng the cOnflcruet1.on of a building and illip1:ovements as a.pproved by Dllclat.ant. c. Owner ente1:ed into a construct:ion contract wir.h a contractor licensed to do business in lUllnesota. d. Owner has expendnd at leallt th.e SUID of rom Thousand Dollars ($10.000.) puuuunt co such construction contract. iJ~')""~ APPROVALS: ""w....<: Only m:itten approval;; by Del!larllnt shall be effective. W!:itteu approval by Declarant of a part~ular U$e or action shall be concl~3ive evidence of compliance with this Declaration to the extent any use or act~on so llpproved is not in violation of any law, oxdfnance or governmental regulation. Declarant shall not be u.able for damages to an)"one submitting plans to it for ElpprovaJ. or seeking any approval under this Declaration or to any owner, lessee or other intere:st affacted by t'llis ])I!claration by reason of mbulke in judpent, negligence: or nonfeasnn:e Ilri.Hing out of or in connection with the approval or disapprov~.l or failure to apllrove any matter or plan. Eucb persoll who seeks such apprc-val agrees, b.~ 110 f.eeking. and every owner or lesse.. of any said prope:ty agrees. by ac:.quid.n,; ti,tle thereto or interest therein. that he will not b::ing auy action, l.rocee:Ung :IT:' suit. against Declar.ane allegiug such da1llages. 14.0 T.EllMINATION. MODIFICATION AND IJ.E<:1.ARANTS RIGiITS: 14.01 Declarant shall have the sole right and pawnr at all times to terminate or modify this Declaration Idth respect to any portion of the iffecced property which Declarant owns. 14.02 If at any time Doaclaraut ceases to exist or fails or refuses to act for a period of more than niriety (9Q) days 'ifter having been not1fil!d of ies failure to act on Any request 0.:0 files fOl~ rncord it:'> resignation. a s~u:cessor Decla:rant may he appointed. 15.0 :ENFt)llCEMENT: The :restrj,ctions couta:l.nid in thl! I:'eclaration may be: p.nforcE,d at law or in equit.y by the Declarant 01:, i.f Declat.lInt fails tll act t() enfar.c!! within thirty (30) d.IlYs after havipg !leen r.!!quflsten to do so by lIny owner of any portion of the aflected property. Declars'lll: shal~ n(lt have l1nbil:l.ty al: law or iu equity to 8ny pel'solll for the .faUureto e:n!':at:ce any of the restric:t:l,ons contained in this Declar.ao:1on. In the eve'.. that: Declarant ceases co exist:, or files 1:or reco'Cd its resignation aEI Decl.a;rant, any olmer of any portion of the affected p:ropareY'lllay enforce this Declara'tion \lith rnpect to his property. -(1- . .' \1 . . It' .' , l' r (i l\\' i' .~' \', I " 1 \1' 1\ I' , .. I \ I 1 '\"' ' it 1 'f \ t I,. {'t... ~ I 1 L : 1 i-I '.. '. f I~f) , .' II~ ~ !~ ~ ~I~I :D~ ".~ ht 1 ~ II r~ ~ ~ ~2~l!J ~ ~ to i~~ ~ · i ." c.-, i a~~Cll ~ ~J1~ ~~ ~ 'I ~~ ~ ~ f;!~~ g~ ~ " ~ N tB ~z ~ I I ~P~' !l: 01 ;i1: 9l (x. r o . ,. . 1375883 DECLARATION OF COVENANT$ This Declaration made this 5th day of September, 1996, by Bernard D. MUIphy, a single person, (Declarant) and Lexington Standard Corporation, a Minnesota corporation, (Lexington), hereinafter collectively "Declarants" WHEREAS, Murphy is the owner of that portion of :Farmington Industrial Park 2nd Addition described as follows, to-wit: All of Blocks 1,2 and 4 Farmington Industrial Park 2nd Addition according.to the Plat tbereofnowon file and ofreco.rd in the o;ffice of the County Recorder within and for said County and State; and WHEREAS; Lexington is the owner of that portion of Farmington Industrial Park 2nd Addition described as follows, to wit: All of Block 3 Fannington Industrial Park 2nd Addition (hereinafter Block 3) according to the Plat thereof now on file and of record in the office of the County Recorder within and for said County and State; and WHEREAS; the above described property of said Declarants constitutes the whole of Farmington Industrial Park 2nd Addition; and . WHEREAS; the Declarations intend that the whole of Farmington Industrial Park 2ud Addition(the affected property) shall be.subject to this Declaration; and WHEREAS; the Covenants declared herein shall run with the affected property and each part thereof and with allY interest in the affected property of any part thereof for all purposes and shall be binding upon all Owners, Lessees, Licenses, occupants, Lieners, and their heirs, successors and assigns of the affected property; and WHEREAS; aU parcels and lots of the affected property shall be developed in conformance with the requirements of the City Code of the City of Farmington and shall fUrther be subject to the covenants contained herein. J.p DEFINITIONS: The term "Declarants" shall mean Bernard D. MUl'phy, a single person, his heirs, successors and assigns and Lexington Standard Corporation, its successors and assigns. Except as to Lexingtons dghU; as the owner ofI}lock 3, which rights Lexington retains, Declarants hereby appoint Housing and Redevelopment Authority of the City ofFarmingtoti, Minnesota its successors or assigns, as the agent and attorney-in~fact to act and to peno1'lll any act, ftmction or duty of the Declarants hereunder, and Declarants agree that any person or entity may rely upon the acts of the Housing and Redevelopment Authorit.y of the City of Farmington, Minnesota its successors or assigns, as if they are the acts of the Declarants. This appointment is irrevocable for the term and duration of the existence of the Declaration of Covenants as herein set forth. Further, the Housing and Redevelopment Authority of the City of Farmington, Minnesota shall have the exclusive and 1 , .' unlimited right to assign and transfer its powers, rights and duties hereunder as the Housing and Redevelopment Authority of the City of Farmington, Minnesota shall direct. ~.o PERMITTED USES: All building sites within the affected property ~aJ1 be used, subject to City Zoning Ordinances, solely for processing, research, light industrial, light manufacturing, warehousing and distribution purposes and services ancillary to such uses, subject to applicable ordinances. 3.0 PRECLUDED USES: No restaurant, gasoli~e seryi~~ station, motor ~otel, mini storage facility, financial institution or retail use will be permitted. No use shall be permitted which in the sole judgment of Declarant, is incompatible with existing and proposed uses within the lrlfected property or is offensive by reason of odors, fumes, dust, smoke, noise, pollution or which is hazardous by reason of excessive danger offire or explosion. Approval by Declarant of a particular use shall be conclusive evidence of compliance with this provision. 4.1) APPROVAL OF PLANS: ~SlJBMITTAL Prior to conslruction or alteration of any building or other structure, two complete sets of building and landscaping plans shall be submitted to Declarant for approval. No building, structure, or other improvement shall be constructed, altered or placed upon the affected property until the location, design, plans and specifications fot such (including landscaping) shall have been Ittst approved by Declarant. If Declarant fails to approve or deny plans submitted to it within 90 days of receipt, it shan be presumed that such plans as submitted are approved. Ji.02 SOTICE .;.ND COMMEN'I Prior to approving building and landscaping plans Declarant shall make reasonable effort to: 1) notifY other owners of the affected properly of such proposed construction and use 2) provide copies ofpropose~ site and lan9,sQ8pe plans with such notice 3) mail or deliver such notice to al~ow a reasonable time for comments (either written or oral) to be received prior to determination. Such comments in respect to the proposed development shall be received and considered io such approval process. Failure of such owners to receive notice shall not invalidate or affect, in any manner, Declarant's determination in respect to the construction, alteration or use approval as stated in 4.01. 5.0 1!IJlLDINQ MATERIAL AND DESIGN: :;.01 EXTERIOR W ALI.l5: Exterior Walls of buildings to be constructed 00 the following described lots, to wit: Block I Lots 1 and 2 Block 2 Lot 1 Block 3 Lot 1 Block 4 Lot 1 shall consist of one or more of the following materials: 2 '. , . . BRIer<: shall be of a size, type, texture, color and placement to be approved by Declarants. STONE shall have a weathered face or shall be polished, fluted or broken face to be approved by Declarants. CONCRETE MASONRY BLOCK shall be those generally described as "Customized Architectural Concrete Masonry Units" or shall be broken faced brick-type units with marble aggregate; in either case to be approved by Declarants. All concrete masonry units shall be coated with a coating approved by Declarants. There shall be no exposed concrete block on the exterior of any building unless approved by Declarants. GLASS CONCRETE may be poured in place, tilt-up or precast and shall be finished in stone, textured or coated in a manner to be approved by Declarants and with a minimum life expectancy of 10 years. W~I;LLARY SURFACE MATERIALS Alternate exterior surface materials of preengilleereQ metal may be substituted in up to 6% of the exteribr wall surface area of each building based upon the following criteria: a. That such alternate exterior material and the construction of such areas shall be used for housing ancillary equipment necessary for the manufactming operations conducted thereon and therein. b. TIlat such alternate material and area so enclosed shall be architecturaJJy compatible with the building as a whole. c. That developer shall comply with any additional screening and/or landscaping requirements required by Declarants. d. That upon agreement in respect to the use of alternate materials, screening and landscaping, no further modifications shall be made by the developer without prior written approval ofDeclarants. Such use of alternate materials and interpretation of and compliance in respect to the above stated criteria shall be within the sole discretion of Declarants, their successors-and assigns. 5.02. CA NOPJES: No canopies with visible wall hangers shall be permitted. Design of canopies shall be in keeping with the design of the building and shall be approved by Declarant prior to construction or alteration. 3 , " 5.03 ROOF MOUNTED EQUIPMEN'r: Roofmounted equipment: shall be located or screened as may be required by Declarant to minimize visibility from "the street or surrounding buildings. 5.04 LOADING DOCKS: All loading dock designs and locations must be approved by Declarant before construction or alteration. 5.05 COVERAGE: Unless otherwise approved by Declarant, the ratio of building square footage and parlcing area shall not exceed 65% of the total square footage of any building site within the affected property . 5.06 UNDERGI!OUND UTILITIES': Building and structures located in the Farmington Industrial Park 2nd Addition shall be served by underground utility distribution facilities. The installation of such utilities shall not change the grade or contour of the land adjaCent thereto. 6.0 BUILDING SETBACKS: No building or other structure shall be erected nearer than 50 feet to the front property line; nearer than 25 feet to any side property line; or nearer than 25 feet to any rear property line. If two or more lots are developed as one site. the interior co:mmon lot line shall be ign9~d. f9l," all pmposes under this Declaration 7.0 PARKING: 7.01 SURFACING Prior to occupancy of buildings constructed in the industrial park, all parking areas. driveways and loading areas shall be surfaced with asphalt pavement using MNDOT guidelines. In the event said surfacing cannot be colnpleted prior to occupancy due to w~ther or seasonal restrictions then occupancy of newly constructed facilities may be had upon escrowing of funds for or adequate assurances of completion acceptable to Declarant. 7.02 OFF STREET PARKING SPACES jJEOUIRED: Ofr street parldng shall be provided to serve each site. The minimum number of parking spaces shall be the greater of: 1. a. One space for every 600 sq. ft. of Industrial Space; and b. One space for every 200 sq. ft. of office space; and c. One space for each 2000 sq. ft. to storage area or 2. One space per projected employee per shift 7.03 SCREENING: All parking areas shall be screened in a manner approved by the Declarant. 7.04 LOCATION: Parking win not be pezmiued within 35 feet of the front property line (those facing any dedicated street), within 10 feet of any side property line or within 10 feet of any reat property< line unless otherwise approved by Declarant. 8.0 AL'l:ERA TION Tp fflJ1LDING,S: A1iy al1erations to buildings shall meet all requirements of these covenants and the City Code. 4 . . . .. 9.0 LANDSCAPING;, All open spaces shall be dustproofed, surfaced, landscaped, rockscaped or devoted to lawns. Not less than twowthirds of the required building setback area from. any dedicated street shall be landscaped lawns. trees. shrubs and walkways of a design approved by the Declarants. Landscaping as approved by Declarant shall be installed within 90 days of occupancy Of substantial completion of building, whichever occurs first. ~eatp.er permitting. 10.0 SCREENING 10.01 STORAGE" .... .' Without prior approval of Declarant no outside storage areas shl;l1l be maintained nor shall articles, goods. materials; incinerators, s!~rag~ tapks. refuse copt~~ Qf like. equipment be kept in the open or exposed to public view or view from adjacent buildings. In the event that approval is granted, all materials shall be screened from view. Screening as used in this paragraph means a landscaping plan approved by Declarant. 10.02 STRlJC'{1JRE No ancillary structures (including but not limited to water towers. storage tanks, processing equipment, cooling towers) or outside equipment shall be constructed, erected ot placed on the affected property without prior approval of Declarant. In the event that such approval is gran1ed. such stmctures shall be screened from public view and the view of adjacent buildings in a manner approved by the Declarant. 11.0 SIGNS " All signs shall be of a design and material approved by Declarant. Unless otherwise a.pproved by Declarant. all signs must be att8:c~ed to ~ building. and be parallel to and contiguous with its walls and not projecting above its roof line. No sign of a flashing or moving character shall be i-llstalled and no sign shall be painted on any building wall. (General guidelines for signage - available at Declarant's office or City Planner.) 12.0 MAINTENANCE Owners and occupants orany part of any site have the duty and responsibility, at their sole cost and expense, to keep the site, including buildings. improvements and grounds, in a well maintained, safe. clean and attractive condition. Such maUltenance includes but is not limited to the following: a. Promptly removing aHlitter, trash, refuse and wastes. b. Lawn mowing. c. Pruning of trees and shrubs. d. Watering e. Maintaini.ng e~rior lighting and mechanical facilities in working order. f. Maintaining lawn and garden areas alive. g. Maintaining parking areas, driveways and roads in good repair. h. 'promptly repairing exterior damage to improvements. 12.01 ENFORCE~ . If. in the opinion of the Declarant, any owner or occupant has failed to fulfill any of the above duties or other maintenance responsibilities. the Declarant will give owner or occupant written notice of such failure. Owner or occupant has ten (10) days after mailing of written notice to perform duties 5 . . . . and maintenance responsibilities required. Upon failure of owner or occupant to perform duties and responsibilities within ~uch time period, the Declarant shall have the right and power to proceed by court action to have such covenants enforced or enter onto the premises and perform the duties and responsibilities without any liability for damages or for wrongful entry or trespass. The owner or ~ occupant shall be liable for the cost of work and shall promptly reimburse the Declarant for such costs. If owner or occupant fails to reimburse the Declarant within thirty (30) days after receipt of statement for such work, then said indebtedness shall be a debt against the property owner and occupant This debt, bearing interest at the maximum rate allowed by law, not to exceed 12%, shall constitute a lien against the property on which the work was performed until fully paid. 13.0 TIME LIMIT FOR CONSTRUC'I'IONIRIGHT ()F'REPURCHASE Irowner fails to commence construction ofa building upon a building site within one (I) year from the date of the original deed transfer to owner, the Declarant his heirs, successors, assigns or attorneys-in-fact shall have the option to repurchase the site as follows: a. The repurchase price shall be 90% of sale price and shall be paid in cash at the time of closing. b. 1ne option to repurchase is deemed exercised by written notice provided to Owner within a one hundred eighty (180) day period beginning one (1) year from the date of Declarant deed. c. The closing sh~l1 be thirty (30) days from the date of mailing of said written notice at which time Owner shall deliver niarke1able title and fts warranty deed as directed by Declarant. "Commencement of Constructicin of a Building" .is satisfied w1J.en all of the following are completed: a. Plans approve'd by Declarant as set forth in Section 4 hereof. b. Owner obtained building permits from the appropriate governmental authority authorizing the construction of a building and improvements as approved by Declarant. c. Owner entered into a construction contract with a contractor licensed to do business in Minnesota. d. Owner has expended at least the sum ofTen Thousand Dollars ($10,000.) pursuant to such construction contract. 14.0 APPROYALS;. Only written approvals by Declarant shall be effective. Written approval by Declarant ora particular use or action shall be conclusive evidence of compliance with this Declaration to the extent any use or action so approved is not. in violation of any law, ordinance or governmental regulation. Declaran.Lshall not be liable for damages to anyone submitting plans to it for approval or seeking any approval under this Declaration or to any owner, lessee or other interest affected by this Declaration by reason of .mistake in judgment, negligence or nonfeasance arising out of or in connection with the approval or disapproval or failure to approve any matter or plan. Each person 6 , . '. . who seeks such approval agrees, by so seeking, and every owner or lessee of any said property agrees, by acquiring title thereto or interest therein, that he will not bring any action, proceeding or suit against Declarants alleging)IUch ~Q,18.ges. 15.0 'tERMINATION, ~OD1FICATION AND DECI.ARANTS RIGHTS: 1S..Q1 Declarant shall have the s!)le right and power at aU times to tenninate or modify this Declaration with respect to any portion of the affected property which Declarant owns. lS..OZ If at any time Declarant ceases to exist or fails or refuses to act for a period of more than ninety (90) days after having been notified offailure to act on any request or file for record his resignation, a successor Declarant may be appointed. 16.0 ENFORCEMENt: The restrictions contained in this DecImation may be enforced at law or in equity by the Declarant or by the owner of any portion of the affected property. If Declarant fails to act to enforce Within thirty (30) days after having been requested to do so by any owner of any portion of the affected property. Declarant shall not have liability at law or in equity to any person or entity for the failure to enforce any of the restrictions contained in this Declaration. In the event that Declarant ceases to exist, or f1les for record his resignation as Declarant, any owner of any portion of the affected property may enforce this Declaration. 17.0 DURATION: .-- - .. All of the covenants, easements, restrictions and powers herein contained shall run with and bind the subject property and shall inure to the benefit of and be enforceable by the owners of the respective tracts, their respective legal representatives, heirs, successors lUld assigns for the initial term of thirty (30)years from the date oftbis instnunent. 18.0 EFFECT OF INV AUDATION. In the event that any provision or portions of any provision of tlllS Declaration is held to be invalid by any Court, the invalidity of such provision or portion or portions of such provision shall not. affect the remaining provisions or portion or portions of provisions of this Declaration and shall continue in full force and effect. 19.0 WAIVER OF RIGHTS: The failure of Declarant, or any owner to enforce any covenant herein shall not be deemed to be a waiver of the right to do so thereafter nor of the right to enforce any other restriction. 20.0 INSPECTION: Declarant may from time to time at any reasonable hour or hours, enter and inspect any of the affected property to ascertain compliance with this Declaration. 7 , I" .. t t 21.0 ADDITION OF TERRITORY AND RIGHT TO RF....SUBDMDE: 21.01 ADDlTIONAr". PROPERTlEa . . Declarant may from time to time during the term of this Declaration add. to the affected property. 21.02 SUBDIVISION OF PARCELS BY THmD PARTIES ., - At the time of purchase of a tract or parcel of land from Declarant or Declarants, such tract or parcel shall be considered as a single building site for all purposes hereunder. Re-subdivision of such tract or parcel shall not be permitted without ~e prior approval by Declarant. Z1.03LIMITATION OF SUBDIVISION.QE.PARCELS BY DECLARANT ..... .. ." The Declarant: may subdivide lots within the development so that no lot or part thereof shall be less than one (1) acre (43,560 square feet) in size ana have no less than 150 foot adjacent road frontage. Lexingt(,ln Standard Corporation, a Mimlesota Corporation ~- f2- It. by Richard D. Hanson, President bY~^"fC-L ~ Bxyce Kilene, Vice President &!!:6~ r... ( :J...? (, Date 9-/:;' ~~6 Date ACCEPTANC~ OF APPOINTMENT: .. The Housing and redevelopment Authority ofthe City of Farmington, State of Minnesota, in accordance with and pursuant. to Paragraph 1.0 of the Declaration of Covenants herein above-stated, hereby acknowledges and accepts the appointment as agent and attorney-in-fact to act on behalf of Declarants in respect to the above-stated Declaration ofCovenant.s. ~_.I?~- William Fitch t/" HRA Chairperson ,d..-Gf;/.~ . Gerald A. Henricks BRA Executive Director "-' , 8 . . . . . .... STATE OF MINNESOTA) ) 55. COUNTY OF OAKor A ) Subscribed and sworn before me this J;;l.-I-h Bernard O. Murphy, a single person owner. ~Q:m&L~ Notary Public day.of ~ _~1996,by Stamp: SUSANJ.MaleR NOT~ PUBUc-MINNESOTA MY OOMMlBaION EXPIRes 14HlO STATE OF MINNESOTA) ) ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before Ole this lA-11. dar of i' ~LM.Jr-(A oJ 1996, by William Fitch and Gerald A. HenrickS, the Chairperson and xecutive Director respectively of the Housing and Redevelopment Authority of the City of Faritlington, a public body corporate Wlder the Laws of the State of Minnesota, 011 behalf ofihe corporation. ~~ .. I J~.A / Notary Public S~amp: SUSAN J. MILt.ER i NOTARY PUB\.lo-MINIIIESOTA. ~ MY COMMISSION I!XP1flI'!$ ""'00 , . STATE OF MINNESOTA ) ) 88. COUNTY OF DAKOTA ) The foregoing was acknowledged before me this I~ 'I'{I' day of 51~ 10 r t /11 tl f! /2. , 1996, by Richard D. Hanson and Bryce Kilene, the President and Vice President respectively, of the Lexington Standard Corporation, a Minnesota corporation under the laws of the State of Minnesota and on behalf of the LeXington Standard Corporation. ~.- ot b 1c {1.1,...1:--.- . . UAN.-"'~ . IIOTAllYIiUIIUt.~A .. ..,c~~~- Stamp: ...." THIS INSTRUMENT DRAFTED BY: Gerald A. Henricks Executive Director Housing and Redevelopment Authority 325 Oak Street Farmington, Minnesota 55024 (612) 463-1111 9 - l---:-;'..1'<11 '~1~ J I ~.........-.... ~ ,,~ -- ..... L. '.i,. .,~ ~ ~ ~iR _a V'I I "- ~ Q ~:J; fn ~ mu; Oom:eD ~. CA J ~~~~o ~e r> i;! ~ 0 iff en 8115; ~ ~ ~ -8 !: (') 0 2 1;7 liil:1 0 $: > -8 I;i r5 ~ m ~-i:zJ m~ ~ D~~~ ~Bl ~ .',..:.. .- !n i ~!I~ i!l~~~ ~ lY!j~~ ~ i~~~ CoO ~~E ~ 5 fdiiiii z=. 2i1m~ ::;c: > ~. 51 ~ ... e'i1l!~O f:R !j=i m ;D .... c.J 'I C.Il (Zl ~ ~x, le (Reserved for Recording Data) RELEASE OF LAND FROM DEVELOPMENT CONTRACT THIS RELEASE OF LAND FROM DEVELOPMENT CONTRACT ("Release") is made as of this _ day of , 2011, by and between the CITY OF FARMINGTON, a Minnesota municipal corporation ("City"), and the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON, a public body corporate and politic under the laws of the State of Minnesota, formerly known as Farmington Housing and Redevelopment Authority ("Developer"). RECITALS A. City and Developer are parties to that certain Development Contract dated May 21, 1990, recorded as Document No. 958742 in the office of the Dakota County Recorder, Dakota County, Minnesota ("Development Agreement"). B. The parties now desire to amend the Development Agreement to release Lot 1, Block 4, Farmington Industrial Park (the "Land") from the terms of the Development Agreement. NOW, THEREFORE, in consideration of the mutual covenants and promises set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Developer agree as follows: 1. RELEASE OF LAND. The City hereby acknowledges and confirms that Developer has completed the work required of it under the Development Agreement as it relates to the Land and the Land is hereby released from the Development Agreement. 2. All capitalized terms used in this Release and not otherwise defined herein shall have the meanings given such terms in the Development Agreement. [Signature page follows.] IN WITNESS WHEREOF, the parties hereto have duly executed this Release as of the date set forth above. CITY: DEVELOPER: CITY OF FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON By: Name: Title: By: Name: Title: STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of 2011, by the of the City of Farmington, a Minnesota municipal corporation, on behalf of the municipal corporation. Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of 2011, by , the of the Economic Development Authority in and for the City of Farmington, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the public body corporate and politic. Notary Public This instrument was drafted by: Fredrikson & Byron, P.A. 200 South Sixth Street, Suite 4000 Minnea olis, MN 55402-1425 5020627 _1.Doe 2 [Y, '7 Date: Ms. Isabelle Day, CEO Quality Ingredients Corporation 14300 Rosemount Drive Burnsville, MN 55306-6925 Re: Declaration of Covenants regarding Farmington Industrial Park 2nd Addition dated September 5, 1996, recorded September 20, 1996 as Document No. 1375883 with the Dakota County Recorder, Dakota County, Minnesota (the "Declaration") entered into by Bernard D. Murphy and Lexington Standard Corporation, a Minnesota corporation (collectively, "Declarants") as it relates to property located at 21025 Edmonton Avenue, Farmington, Minnesota (the "Property") Dear Ms. Day: The Economic Development Authority in and for the City of Farmington (the "EDA"), as agent and attorney-in-fact for the Declarants, hereby certifies to and covenants with Quality Ingredients Corporation, a Minnesota corporation ("Buyer"), and its successors and assigns, as follows: 1. The EDA is the agent and attorney-in-fact of the Declarants with respect to approvals and other matters relating to the Declaration, and the EDA has the right, power and authority to act on behalf of and bind the Declarants in connection with the Declaration. 2. The Declaration is in full force and effect and has not been modified or amended. 3. The Property is subject to the Declaration, and the Property and all improvements thereon fully comply with the terms and conditions of the Declaration. 4. The owner of the Property is not in default under the Declaration, and, to the EDA's knowledge, no event has occurred with respect to the Property or the owner of the Property that, with the passage of time or the giving of notice or both, would constitute a default under the Declaration. 5. The EDA hereby approves Buyer's intended use of the Property for food and chemical ingredient processing, and acknowledges and agrees that such intended use complies with the terms and conditions of the Declaration. 6. The EDA hereby approves the plans and specifications attached hereto as Exhibit A and agrees that Buyer may construct and install the alterations and improvements to the Property shown in such plans and specifications. The EDA acknowledges and agrees that, prior to approving such plans and specifications, the EDA complied with the requirements of Section 4.02 of the Declaration, including considering any comments from other affected property owners regarding Buyer's proposed use and alteration of the Property. The EDA acknowledges that Buyer will rely on this letter in purchasing and making improvements to the Property. Economic Development Authority in and for the City of Farmington By: Name: Title: 5018510_1.DOC 'L~ ~ City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: Planning Commission FROM: Lee Smick, AICP CND City Planner SUBJECT: Variance Request to Height Requirements in the IP District DATE: November 8, 2011 INTRODUCTION The applicant, APPRO Development on behalf of Quality Ingredients Corporation (QIC), is seeking approval of it variance to exceed the maximum height requirement within the IP (Industrial Park) Zoning District to add an additional 23 feet to a portion of the existing roof to a maximum height of 68 foot. Additionally, the QIC is seeking approval of storage tanks to be constructed on the west side of the building. Planning Division Review Applicant: APPRO Development on behalf of Quality Ingredients Corporation 21476 Grenada Ave Lakeville, MN 55044 Attachments: 1. Application (Ex. A) 2. Business Information (Ex. B) 3. Site and Building Plans (Ex. C) 4. Exterior Buildings Cales (Ex. D) 5. Aerial photograph ofthe property (Ex. E) Property Location: 21025 Edmonton Ave - Former PIC Building Variance Request: A variance from the maximum height requirement of 45 feet to add an additional 23 feet to the north side of the building.. Property Area: 4.3 Acres - Two Lots Existing Building Coverage: Approximately 61,598 square feet or 32.9% Surrounding Land Uses: The property is completely surrounded by the IP zoning district. Existing Zoning: IP (Industrial Park) 2030 Comprehensive Plan: Industrial DISCUSSION APPRO Development on behalf of QIC is seeking approval to exceed the maximum height requirement within the IP (Industrial Park) Zoning District to add an additional 23 feet to a portion of the existing roof to a height of 68 foot. QIC processes wet material into dry powders (see Ex. B). QIC is an employee owned company. The company currently has a location in Bumsville and Marshfield WI (see page 7 and page 8 respectively as shown in Ex. B). The employees added to the Farmington site will be 12-16 skilled workers. QIC representatives will be on hand at the meeting to further explain the processes of the company. The maximum height of buildings within the IP zoning district is 45 feet. QIC is proposing building renovations to occur in two phases. Phase 1 includes the extension of the roof on the south side of the building to a height of 35 feet meeting the maximum height allowed in the IP District. Phase 2 will consist of increasing the height of the north side of the building to 68 feet. Roll drums will be stored in the 35 foot section of the building and a vertical drum will be installed in the 68 foot portion of the building. Additionally, QIC proposes to locate storage tanks on the southwest side of the building, which requires city approval but not a variance. There is no screening requirement of the storage tanks because the lot is within the interior ofthe Industrial Park and is not exposed to CSAH31 and CSAH 50. This increase would require a variance to be approved by the Planning Commission. Revised Variance language from the State Statute states that variances shall only be permitted when they are in harmony with the general purposes and intent of the official control and when variances establish that there are practical difficulties in complying with the official control. In reviewing this criteria staff recommends approval of the variance because it meets the practical difficulties test as follows: 1. The lot is located within an Industrial Park and is within an interior lot of the park. 2. The property is surrounded by industrial buildings. 3. The lot is not located along CSAH 31 and CSAH 50. 4. The exterior material made of pre-engineered metal of the renovations meet the 50% wall surface in the code . (Ex. D). 5. The equipment in the building needs to be covered. ACTION REQUESTED 1. Staff recommends approval of the variance to exceed the maximum height requirement within the IP (Industrial Park) Zoning District to add an additional 23 feet to a portion of the existing roof to a total height of 68 foot. Conditions to the variance are set as follows: a) Obtain all necessary building permits for the renovations to the building. b) Obtain a sign permit. 2. Staff recommends that the storage tanks be approved for the location of storage tanks on the southwest side of the building. Respectfully submitted, Lee Smick, AICP CND City Planner ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON, MINNESOTA DAKOTA COUNTY, MINNESOTA RESOLUTION NO. RESOLUTION APPROVING THE RELEASE OF CERTAIN PROPERTY FROM THE INDUSTRIAL PARK DEVELOPMENT CONTRACT AND APPROVAL OF ESTOPPEL LETTER UNDER THE DECLARATION OF COVENANTS WHEREAS, Quality Ingredients Corporation, Inc ("QIC") is pursuing the purchase of the property located at 21025 Edmonton Avenue, Farmington, Minnesota, located in the Farmington Industrial Park ("Property"); WHEREAS, The Property consists oftwo parcels: Lot 1, Block 4, Farmington Industrial Park and Lot 1, Block 4, Farmington Industrial Park 2nd Addition. WHEREAS, Recorded against the Property are a Development Contract for the Industrial Park between the City of Farmington, and the predecessor to the Farmington EDA, the Farmington Housing and Redevelopment Authority (the "Developer"), dated May 21, 1990; WHEREAS, Also recorded against the Property are the following: Declaration of Covenants dated October 22, 1990 for the Farmington Industrial Park ("Declarations"). WHEREAS, as the successor to the Farmington HRA, the Farmington EDA is the appointed agent and attorney-in-fact to act and to perform any act, function or duty of the Declarant under the Declarations WHEREAS, the Declarant is required to review and approve the proposed uses, alterations and plans for property covered by the Declarations and determine whether there is compliance with the terms, conditions and covenants of the Declarations; WHEREAS, QIC proposes to use the Property for chemical and food ingredient processing and proposes the following alterations: (i) Raising a portion of the existing roof to a height of 68 feet; (ii) . Installation of product silos on the southwest side of the building. WHEREAS, QIC is requesting that the Farmington HRA release the Property from the terms of the Development Contract and approve the attached estoppel letter (Exhibit A) related to compliance with the Declarations, including approval of the proposed use, plans and specifications for the Property (plans attached as Exhibit B); WHEREAS, Farmington EDA staffhave reviewed the Development Contract and determined that all requirements of the Development Contract have been met; WHEREAS, although the existing loading and parking lot locations appear to be non- compliant with the terms of the Declarations and no formal approval for the deviations exists, the long-standing pre-existing location of these elements suggest that they were deemed approved in the past pursuant to the terms of the Declaration and it is appropriate for the Farmington EDA to formally approve the location of the loading dock and parking lot; WHEREAS, the existing landscape is appropriate to address the screening requirements for the silos under the terms of the Declarations, in light of the height of the proposed silos and practicality of adequately screening them and the buffer provided by loading docks located on abutting property facing the silos; NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Economic Development Authority in and for the City of Farmington that the Chair and Executive Director are hereby authorized to execute a release, releasing the Property from the terms of the Development Contract; BE IT ALSO RESOLVED, by Board of Directors of the Economic Development Authority in and for the City of Farmington, as and for the Declarant of the Declarations that: (i) The Property, proposed plans, and the proposed use and alterations complies with the terms of the Declarations; (ii) Authorizing the Chair and Executive Director to execute the attached Estoppel Letter relating to the Declarations; PASSED AND DULY ADOPTED by the Board of Directors of the Economic Development Authority in and for the City of Farmington, Minnesota this _ day of ,2011. , Chair ATTEST: David McKnight, Executive Director Date: Ms. Isabelle Day, CEO Quality Ingredients Corporation 14300 Rosemount Drive Burnsville, MN 55306-6925 Re: Declaration of Covenants regarding Farmington Industrial Park dated October 22, 1990, recorded October 26, 1990 as Document No. 960311 with the Dakota County Recorder, Dakota County, Minnesota (the "Declaration") entered into by Elizabeth C. Murphy and Bernard D. Murphy, husband and wife (collectively, "Declarant") as it relates to property located at 21025 Edmonton Avenue, Farmington, Minnesota (the "Property") Dear Ms. Day: The Economic Development Authority in and for the City of Farmington (the "EDA"), as agent and attorney-in-fact for the Declarant, hereby certifies to and covenants with Quality Ingredients Corporation, a Minnesota corporation ("Buyer"), and its successors and assigns, as follows: 1. The EDA is the agent and attorney-in-fact of the Declarant with respect to approvals and other matters relating to the Declaration, and the EDA has the right, power and authority to act on behalf of and bind the Declarant in connection with the Declaration. 2. The Declaration is in full force and effect and has not been modified or amended. 3. The Property is subject to the Declaration, and the Property and all improvements thereon fully comply with the terms and conditions of the Declaration. 4. The owner of the Property is not in default under the Declaration, and, to the EDA's knowledge, no event has occurred with respect to the Property or the owner of the Property that, with the passage of time or the giving of notice or both, would constitute a default under the Declaration. 5. The EDA hereby approves Buyer's intended use of the Property for food and chemical ingredient processing, and acknowledges and agrees that such intended use complies with the terms and conditions of the Declaration. 6. The EDA hereby approves the plans and specifications attached hereto as Exhibit A and agrees that Buyer may construct and install the alterations and improvements to the Property shown in such plans and specifications. The EDA acknowledges that Buyer will rely on this letter in purchasing and making improvements to the Property. 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Fax 651.280.6899 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Special EDA meeting - December 5, 2011 DATE: November 28, 2011 INTRODUCTION/DISCUSSION A special EDA meeting has be scheduled for Monday, December 5th at 6:45pm to consider comments and take action on QlC's request for approval of an estopple letter specific to the Industrial Park 2nd Addition Declaration of Covenants.