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HomeMy WebLinkAbout09.24.07 EDA Packet . AGENDA ECONOMIC DEVELOPMENT AUTHORITY ~ September 24, 2007 - 6:30. p.m. City Council Chambers. City Hall T~f<1L Members 1. (6:30 p.m.) Call Meeting to Order - workine meal/lieht supped Todd Arey (Chair) 2. Pledge of Allegiance Paul Hardt (Vice Chair) 3. Approve Agenda 4. Citizens Comments/Presentations Yvonne Flaherty Erik Starkman 5. Consent Agenda (see attached) a. Bills b. August 27, 2007 Minutes c. August Budget Details Chad Collignon Christy Jo Fogarty City Council 6. Public Hearings (None) David McKnight City Council 7. Unfinished Business a. 2nd Amendment - Exchange Bank (see attached, Lisa) b. McVicker Lot - Cancellation Agreement (see attached, Tina) c. Contract for Private Development - Regan (see attached, Tina) . Citv Staff Representatives Peter Herlofsky City Administrator 8. New Business a. Realtor Information Day (see attached, Lisa) b. Former Liquor Store (see attached, Tina) Tina Hansmeier Economic Development Specialist Lisa Dargis Administrative Assistant 9. City Staff Reports See Economic Update, attached NDC Working Lunch, attached 325 Oak Street Farmington, MN 55024 10. Adjourn Phone: 651.463.7111 http://www.ci.farmington.mn.us (6:45 p.m.) Visioning Session (ED Consultants) The Farmington EDA 's mission is to improve the economic vitality of the city of Farmington and to enhance the overall . quality of life by creating partnerships, fostering employment opportunities, promoting workforce housing and by expanding the tax base through development and redevelopment. I< lll~,'\ I-I ):\ I ~(\dld 110.1') I \, l{ i 1;)1) ,ltJ i I I), '- \:_'( ''ltla lu~~t),d()~' iSl ~ '" ~I M '" '" (") '" '" (") '" (") (") (") '" '" (") 0 0 0 0 0 0 0 0 0 0 0 0 0 . 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Call Meeting to Order The meeting was called to order by Chairperson Arey at 6:00 p.m. Members Present: Arey, Hardt, Flaherty, Starkman, Collignon, Fogarty, McKnight Members Absent: None Also Present: Tina Hansmeier-Economic Development Specialist, Peter Herlofsky-City Administrator, Lisa Dargis-Administrative Assistant, Richard Fursman-Global Synergy Group, Jim Norman- Norman and Assoc., Ruthe Batulis-Northern Dakota County Chamber of Commerce ") .... Pledge of Allegiance 3. Approve Agenda Staff would like to pull 7b from the agenda. Member Hardt would like to add item 8b - Downtown Business Group Meeting. MOTION by Hardt, second by McKnight to approve the agenda. APIF, MOTION CARRIED. 4. Citizen's Comments Kraus Anderson Retail Development Matt Alexander Director of Real Estate Development, Kraus Anderson Matt Alexander from Kraus Anderson the EDA Members about the development plans his company has for the 80 acre parcel located west ofthe Vermillion River Crossings Development (a.k.a. the Don Peterson Property). The company is hoping to have a big box development on the site. There would also be areas designed for junior anchor types of businesses as well as outlots for other opportunities such as a strip mall or gas station, etc. Member Starkman asked Mr. Alexander what he felt Farmington's strengths and weaknesses are from his perspective. Matt stated that Farmington has been a growth community for the past 10 years and there has been a lot of residential growth. The fact that land is less expensive and there is currently no big box type of company already here are opportunities as well. Some of the challenges are that there is not as high a density and population level as some other sites offer and the lack of a busy transportation corridor. Kraus Anderson hopes to submit a site plan for the development in the next 30- 60 days. The goal would be to potentially start grading the site next spring with construction of an anchor site beginning next fall. EDA Minutes August 27, 2007 Page 2 5. Consent Agenda a.) Bills b.) July 23, 2007 Minutes c.) June & July Budget Details MOTION by Hardt, second by Starkman to approve the consent agenda. APIF, MOTION CARRIED. Members Fogarty and Flaherty were not present for this vote. 6. Public Hearings None 7. Unfinisbed Business a.) Market Study Update Information regarding the timeline for the Market Study was provided for reference. Staffhas been in contact with the consultants and all of the work is progressing as scheduled. The estimated completion date is September 28,2007. b.) Reagan Development Contract This item was pulled from the agenda. 8. New Business a.) Redevelopment District #2 Finance Director Roland has requested EDA approval for payment of nF reimbursement to City Center, LLC (Tom Wartman). The amount requested is $51,758.33 which would bring the City Center TIF district reimbursement payments current and make the payment for 2007. Chair Arey asked if everything had been completed and ifthere were any plans to develop the proposed park area behind the development. Staff is in the process of looking into the downtown area as a whole to determine how and where development and redevelopment should take place. Member Collignon asked if the TIF district follows the property from Mr. Daniels to Mr. Wartman when it changed ownership. Staff replied that the district did transfer to Mr. Wartman and they will check with Finance Director Roland to verify that all of the work is complete. Member McKnight asked who should be monitoring these types of contracts and the payments. Economic Development Specialist Hansmeier indicated that it has been her understanding that the Finance Department has been handling that responsibility in the past, but it may be appropriate to bring that topic up for discussion to determine if it should be a Finance responsibility or if it should be handled by Community Development. MOTION by Starkman, second by Hardt to approve the payment. APIF, MOTION CARRIED. Members Flaherty and Fogarty were not present for this vote. b.) Downtown Business Association The Downtown Business Association holds their meetings on the first Tuesday of the month at 5:30 p.m. Member Hardt attended the August ih meeting that was . . . . EDA Minutes August 27, 2007 Page 3 held at B&B Pizza. The group has been holding events to attract customers to the downtown area for the last several months. They are planning a Harvest Festival for late September. Member Hardt asked if we have a community calendar on our website. Staff replied that we do not. Due to an error indicating the wrong date in the ad that was published in the Farmington Independent the City did advertise the August event on our cable channel to try to help the Downtown Business Association get the correct information regarding the date out to residents. Member Hardt would like Staff to look further into the possible addition ofa community events calendar to the City's website. Tina Hansmeier has been attending the Downtown Business Association meetings and will work with the group to look into this further. The group would like to know if the downtown Christmas lights that are currently on the buildings are the responsibility of the business owners or the City. The lights that are currently up were purchased with grant money about 10 years ago by the City for the businesses, with the intent being that the businesses would maintain them. Member Hardt asked if there is another group representing businesses in other areas of Farmington. Staffwill discuss this issue with Ruthe Batulis from the Northern Dakota County Chamber of Commerce. . Member Hardt stated that there is a meeting regarding Rambling River Days on September 12th at the Rambling River Center. The organizers ofthe event are focused on expanding Rambling River Days and making it a much bigger event. Member Hardt also indicated that he would like to see events at the Dakota County Fair Grounds tied into the downtown activities. He would like to see a trolley or shuttle van service between the two locations. He was also wondering if there was any opportunity to get some pro-bono work from an events planner to help the groups organize their events in the future. 9. Visioning Session The EDA Members took part in a continuation of the visioning process that began at the July 23,2007 meeting. Group exercises to facilitate a future vision of Farmington were conducted and preliminary ideas for the development of a vision statement were compiled. The process will continue at the September 24, 2007 meeting. Please see the attached August 27, 2007 summary provided by Richard Fursman. a.) Paul Hardt-Visioning Information See item 8b. 10. City Staff Reports/Discussion The Members received the first issue ofthe Farmington Economic Update. Staffhas developed this publication to keep the EDA Members current on Staff activities and business contacts. There was discussion regarding how the newsletter will be distributed. There is potential to post the information on the City's website in the future. . EDA Minutes August 27,2007 Page 4 . Staff inquired as to whether the Members might be open to having an additional meeting if necessary to wrap up the Regan Development Contract. This will be discussed further ifthe final draft ofthe contract is received. The September 24th meeting will begin at 6:30 p.m. to continue the visioning process. Member Hardt will be visiting Naperville, IL and will not be present for the September meeting, 11. Adjourn MOTION by Starkman, second by Hardt to adjourn at 8:52 p.m. APIF, MOTION CARRIED. ~ . . . ~ ei ~ Cl '0 :J lD c: g ec: ~ g " g> Cl .~ 1:1. 15 b i:3 U\ .... "" ;'! .. '0 " * .~ " Ir i'l c: '" ro OJ ro 15 I- " " Cl ~ Z tj o 9 " U) ~ <0: 2 ~ " ~ ~ ::. .9 <0: ~1 ~lfi l;; ::. <l " lL c: ~ '0 c: :J lL .. .. "' o N i '" .. o <0. ~ .... "' N N ~ .. N .... "' t .... Cl o on ;! .. '" .... ., "" ~ "' ;! ",' ;'! .. U\ .... ~ .. " u ~ i ir G o '0 :z: c: I- :J :;) lL <0: I- Z W :E D. o -' w ru o o 2 o z o o w B-*! ~~U55 ~~ ,,- Ir!! ~i "lL "'\ ~ " " i~ i';.!! irE ~ .... o o o N :ft"#-# #* or--o <01.{) 0('<')1'--- 1'-0 Or.ON .,..;0 <000 00"1 0........ ot-.<O o ~"' c;:......:....: .. 5i~ "'~ " ;:' "'''' N.... "'.... N~ r--: co ., N t-.N .,0 N "'. ~ ., ., N o~ "'"' Nt-. "'"' N.... 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DISCUSSION Attached is the 2nd Amendment to Contract for Private Sale for the Exchange Bank Building. As was discussed previously, the original submittal and completion dates have been extended. Portions of the renovation work are complete. The remaining tasks pertain primarily to electrical work and renovation of the Great Hall; which includes mechanical system improvements. Mr. Brown has indicated that he has secured contractors for the remaining work and that plan design is taking place. ACfION REQUESTED Approve and execute the 2nd Amendment for Private Sale between the City of Farmington EDA and Mr. Hosmer Brown. ~::~~tiVe~ffimnt ..~.-" HOSMER A. BROWN Attorney-at-Law 3922 W. 50th St., Suite 201 Edina, MN 55424 . Telephone: 612-927-8837 Fax: 612-927-8838 August 23,2007 Ms. Lisa Dargis City of Farmington 3325 Oak Street Farmington, MN 55024 Dear Ms. Dargis: I am enclosing the two original copies of the proposed Second Amendment to the City's Agreement. Ifthe two changes meet with your approval, please sign and send one back to me for my files and keep the other. Thanks very much. . Very truly yours, ~ , Hosmer A. Brown HAB/kjlencl . . . . SECOND AMENDMENT TO CONTRACT FOR PRIVATE SALE THIS AMENDMENT TO CONTRACT FOR PRIVATE SALE (hereinafter referred to as the "Amendment") is made on , 2007, by and between the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON fIkIa HOUSING AND REDEVELOPMENT AUTHOIRTY IN AND FOR THE CITY OF FARMINGTON, a Minnesota public body corporate and politic, hereinafter "EDA," and 2004 REAL ESTATE COMPANY, a Minnesota corporation, hereinafter "Developer." RECITALS WHEREAS, on November 9, 1998, the EDA's predecessor, the Housing and Redevelopment Authority in and for the City of Farmington (the "HRA"), entered into a Contract for Private Sale with Developer (the "Contract"); WHEREAS, on August 15,2005, by City of Farmington Ordinance No. 541, the City of Farmington reformed the HRA as the Economic Development Authority and for the City of Farmington ("EDA"); WHEREAS, on June 2i\ 2006, the EDA entered into an Amendment of the Contract with Developer extending certain deadlines for Developer's obligations under the Contract ("First Amendment"); WHEREAS, the parties wish to amend the deadlines provided under the Amendment to provide revised deadlines for completion of two remaining improvements; NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, the parties to this Amendment do hereby amend the Contract as follows: Section 1. attached hereto. Exhibit C under the First Amendment shall be amended in its entirety as I Section 2. No other Amendments. All original terms of the Contract shall remain in . effect except as amended hereby, and the parties agree to be bound and to perform all of the covenants and agreements in the Contract at the time and in the manner therein provided. The recital paragraphs herein are fully incorporated into the terms of this Amendment. IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and year set forth above. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON BY: Chairperson AND: Executive Director STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) . The foregoing instrument was acknowledged before me this _ day of , 2007 by and by , respectively the Chairperson and Executive Director of the Economic Development Authority, a Minnesota public body corporate and politic, in and for the City of Fannington. Notary Public . 2 . . . 2004 REAL ESTATE COMPANY BY:~1~ Cf- Il-,~p-r::--, Its: V~ ? ~~ # STATE OF MINNESOTA COUNTY OF DAKOTA ) )ss. ) JIa This instrument was acknowledged before me this .J.? day of A V 1 6m?r fI ,l3iDuJ/1..JJL , the V, P rC'J and /0Jrelao/--of 2004 Real Eklate Minnesota corporation, on behalf of the corporation. rx{huJ $~ Notary Public , 2007 by Company, a DRAFTED BY: CAMPBELL KNUTSON (ALS) Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 " 3 EXHIBIT C . I. Construct a fire escape and Oak Street access/stairway to the GandHall ofthe building located on the Project Property: Section I Completed a. Submit complete construction plans and building permit application (if required) by May 17, 2006; b. Commence construction of fire escape, construction of new Oak Street access, and renovation of stairway to Great Hall by June 14, 2006 or within 14 days of final approval of construction plans, whichever is later; c. Complete construction (including final approval by Building Official and Fire Marshal) by August 23, 2006. II. Install sprinkler system in the building located on the Project Property: Section II - Completed a. Submit complete construction plans and building permit application (if required) by June 14,2006; b. Commence installation of sprinkler system by July 19, 2006 or within 14 days of . final approval of construction plans, whichever is later; c. Complete installation of sprinkler system (including final approval by Building Official and Fire Marshal by September 20, 2006. III. Electrical System a. Submit confirmation of electrical permit by October 1,2007; b. Commence electrical system work by October 12,2007 or within 14 days of final approval of construction plans, whichever is later; c. Complete electrical system work, including final approval by Building Official and Fire Marshal by January II, 2008. IV. Grand Hall ceiling replacement and decorative renovation(s), completion of upper floor of Larson Building, renovation of passageway between upper levels of Larson Building and Grand Hall a. Submit revised construction plans and mechanical plans and permit application (if required) by October 1,2007; . 4 " . b. Commence construction/renovation work by October 12,2007 or within 14 days of final approval of construction plans, whichever is later; c. Complete construction/renovation work (including final approval by Building Official and Fire Marshal) by March 15,2008. . . 5 . . . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: McVicker Lot DATE: September 24, 2007 INTRODUCfION Enclosed please find the Notice of Termination of Contract for Private Development. DISCUSSION On July 24, 2006 the EDA entered into a Contract for Private Development with Mr. Joe Heinen. On November 13, 2006 the Contract was amended to extend the developer's timeline for submittal of plans and construction of a two story building. However, the extended timeline was not met, therefore Mr. Heinen has requested termination of the Contract to focus on the expansion of the 301 Elm Street Building. ACTION REOUESTED Approve the Notice of Termination of Contract for Private Development. Sincerely, ~~~~l ~~ /)1:::..) Tina Hansmeier, Economic Development Specialist cc: Peter Herlofsky Jr, City Administrator Andrea McDowell-Poehler, City Attorney Lisa Dargis, Administrative Assistant File Joseph M. Heinen 595 Lakeridge Drive Shoreview, MN 55126 NOTICE OF TERMINATION OF CONTRACT FOR PRIVATE DEVELOPMENT Dear Mr. Heinen: It is the Farmington EDA's understanding that, at this time, you do not propose to move ahead with the acquisition and improvements identified under the Contract for Private Development between the Economic Development Authority In and For the City of Farmington and Joseph M. Heinen, dated July 24. 2006("Development Contract"). Therefore, this letter shall serve as the Farmington EDA's notice to you that the Farmington EDA is hereby terminating the Development, together with an amendment dated November 13. 2006, pursuant to Sections 4.2, 4.5, 6.1 and 6.2 of the Development Contract, which termination is effective immediately. To complete the cancellation of this Contract please execute the attached Quit Claim Deed and return it to me by October 8. 2007. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON By: Peter Herlofsky Jr., City Administrator . . . . . . (Reserved for Recording Data) QillT CLAIM DEED STATE DEED TAX DUE HEREON: $ Dated: , 2007. FOR VALUABLE CONSIDERATION, JOSEPH M. HEINEN and RACHELLE S. HEINEN, husband and wife, Grantor's, hereby convey and quitclaim to the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON, a public body corporate and politic, Grantee, real property in Dakota County, Minnesota, as legally described in the attached Exhibit "A" together with all hereditaments and appurtenances belonging thereto, subject to the following exceptions: None. This Quit Claim Deed is given to cancel a Contract for Private Development by and between Joseph M. Heinen and the Economic Development Authority In and For the City of Farmington dated July 24, 2006, together with an amendment dated November 13, 2006. THE GRANTOR'S CERTIFY THAT THE GRANTOR'S DO NOT KNOW OF ANY WELLS ON THE DESCRIBED REAL PROPERTY. The consideration for this transfer is less than $500.00. JOSEPH M. HEINEN By: Its: RACHELLES.HETINEN By: Its: 123077 STATE OF MINNESOTA ) )ss. COUNTY OF ) The foregoing instrument was acknowledged before me this 2007, by Joseph M. Heinen. day of Notary Public The foregoing instrument was acknowledged before me this Rachelle S. Heinen. day of ,2007, by Notary Public Tax Statements for the real property described in this instrument should be sent to: THIS INSTRUMENT DRAFTED By: CAMPBELL KNUTSON, P.A. Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 123077 . . . . . . EXHIBIT" A" Legal Description of Property: Parcell: That part of Lots 5 and 6, Block 23, Town of Farmington, Dakota County, Minnesota, described as follows: Beginning at a point on the West line of Lot 6, Block 23, Town of Farmington, Dakota County, Minnesota distant 20 feet North of the Southwest corner of said Lot 6; thence East 110 feet; thence South 30 feet; thence West 110 feet; thence North 30 feet to the point of beginning. AND Parcel 2: All that part of Lots 7 and 8, Block 23, Town of Farmington, Dakota County, Minnesota, described as follows: Beginning at the Northwest corner of said Lot 7; thence South, along the West line of said Lot 7, 30 feet; thence East 110 feet; thence North 30 feet; thence West 110 feet to the point of beginning; together with that part of the vacated alley adjacent thereto described as follows: Beginning at the Northwest corner of said Lot 7; thence East 110 feet; thence North 10 feet; thence West 110 feet; thence South 10 feet to the point of beginning. 123077 . . . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Contract for Private Development and Related Documents DATE: September 24, 2007 INTRODUCfION Please see enclosed Contract for Private Development and related documents for the sale and development of Lot 3, Block 1, Farmington Industrial Park 208th Street Addition. DISCUSSION Staff received from Mr. Patrick Regan signed original copies of the following documents: . Contract for Private Development, . Grant of Temporary and Permanent Easement and Easement Maintenance Agreement, . Grant of Easement and Easement Maintenance Agreement, . Escrow Agreement Staff also received the earnest money in the amount of $10,000. ACfION REQUESTED Approve the following: Contract for Private Development; Grant of Temporary and Permanent Easement and Easement Maintenance Agreement, Grant of Easement and Easement Maintenance Agreement, and Escrow Agreement. Sincerely, ~~~~ Tina Hansmeier, Economic Development Specialist cc: Peter Herlofsky Jr, City Administrator Andrea McDowell-Poehler, City Attorney Joel Jamnik, City Attorney Robin Roland, Finance Director Lee Mann, Director of Public Works File . CONTRACT FOR PRIVATE DEVELOPMENT FARNUNGTON,NITNNESOTA Tms AGREEMENT, made on or as of the _ day of ,2007, by and between 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 (the "EDA") and POR-MKR REAL ESTATE, LLC, a Minnesota limited liability company ("Developer"). . WITNESSETH: WHEREAS, the EDA was created pursuant to Minnesota Statutes, Sections 469.090-.108 and was authorized to transact business and exercise its powers by a resolution of the City Council of the City of Farmington pursuant to Section 469.093 of the Act; and WHEREAS, as of the date of this Agreement there has been a proposal that the EDA approve the sale of the real property described in Exhibit "A" attached hereto (the "Property") to the Developer for development of at least a 12,000 square foot building that would include areas for Bus & Truck Terminal uses and all permitted and, subject to City approval, conditional uses within the Industrial Park (IP) District in the City of Farmington (the "Project"); and WHEREAS, the EDA believes that the Project and fulfillment generally of this Agreement is in the best interest of the EDA and the health, safety, morals and welfare of the residents of the City of Farmington and in accord with the public purposes and provisions of the applicable state and local laws and requirements. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: ARTICLE I. DEFINITIONS . . . . In this Agreement, unless a different meaning clearly appears from the context: "Act" means Minnesota Statutes, Sections 469.090-.108, as amended. "Agreement" means this Contract for Private Development by and between the EDA and the Developer, as the same may be from time to time modified, amended or supplemented. "Articles and Sections" mentioned by number only are the respective Articles and Sections of this Agreement so numbered. "City" means the City of Farmington, Minnesota. "County" means the County of Dakota, Minnesota. "Deed" means the limited warranty deed to be executed by the EDA conveying the Property to the Developer. "Developer" means POR-MKR REAL ESTATE, LLC, or any assigns that have received prior written approval from the EDA. "EDA" means the Economic Development Authority in and for the City of Farmington. "Event of Default" means an action by the Developer listed in Article VII of this Agreement. "Minimum Improvements" means at least a 12,000 square foot building to be moved to the Property or constructed in conformance with applicable design standards and appurtenant improvements thereto constructed on the Property and driveways, walks and parking fixtures and equipment by the. Developer, in accordance with all applicable local, state and federal regulations governing such'facilities,and in conformance with site plans as the same have been submitted to the EDA. "Parties" means the Developer and the EDA. "Party" means either the Developer or the EDA. "Project" means the Property and the completed Minimum Improvements thereon. "Property" means the real property described as shown in Exhibit "A" attached hereto. "Purchase Price" means the sum of One and 50/1 00 ($1.50) Dollars per square foot as determined by a survey of the Property to be prepared under this Agreement, which the Developer shall pay the City for the purchase ofthe Property, less any earnest money paid by the Developer. The estimated purchase price is Two Hundred Twenty-five Thousand One Hundred 114487.07 Rev:8/30107 2 Eighty-eight and no/100 ($225,188.00) Dollars. . "State" means the State of Minnesota. "Unavoidable Delays" means delays outside the control of the Party claiming its occUrrence which are the direct result of strikes, other labor troubles, unusually severe or prolonged bad weather, Acts of God, fire or other casualty, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the City pursuant to this Agreement) which directly result in delays. Unavoidable Delays shall not include delays in the Developer's obtaining permits or governmental approvals necessary directly to enable construction of the Minimum Improvements, unless such permitting or approvals process is unforeseeably delayed. ARTICLE II. REPRESENTATIONS AND WARRANTIES Section 2.1. Representations and Warranties by the EDA. The EDA represents and warrants that: (c) 114487.07 Rev:8/30107 (a) The EDA is a public body corporate and politic duly organized and existing under the laws of the State. Under the provisions of the Act and the laws of the State, the EDA has the power to enter into this Agreement and carry out its obligations hereunder. . (b) The activities of the EDA are undertaken for the purpose of creating additional job opportunities within the City and to enhance the economic diversity of the City and to provide essential products and services within the City. To the best of the EDA's knowledge, no toxic or hazardous substances or wastes, pollutants or contaminants (including, without limitation, asbestos, urea formaldehyde, the group of organic compounds known as polychlorinated biphenyls, petroleum products including gasoline, fuel oil, crude.oil and various constituents of such products, and any hazardous substance as defmed in any Environmental Law (collectively, "Hazardous Substances") have been generated, treated, stored, transferred from, released or disposed of, or otherwise placed, deposited in or located on the Property in violation of any Environmental Law, nor has any activity been undertaken on the Property that would cause or contribute to the Property becoming a treatment, storage or disposal facility within the meaning of any Environmental Law. The term "Environmental Law" shall mean any and all federal, state and local laws, statutes, codes, ordinances, regulations, rules, policies, consent decrees, judicial orders, administrative orders or other requirements relating to the environment or to human health or safety associated with the environment, all as amended or modified from time to time. To the best of ED A's knowledge, there has been no discharge, release or threatened release of Hazardous Substances from the Property, and there are no Hazardous Substances or conditions in or on the Property that may support a . 3 . (d) (e) (f) . (g) claim or cause of action under any Environmental Law. The Property is not now, and to the best of the EDA's knowledge never has been, listed on any list of sites contaminated with Hazardous Substances, nor used as landfill, dump, disposal or storage site for Hazardous Substances. To the best of the EDA's knowledge, it has maintained all records required to be kept concerning the presence, location and quantity of asbestos containing materials, and presumed asbestos containing materials, in the Property and will deliver the same to the Developer on or before closing. The EDA makes no representation or warranty, either express or implied, that the Property is suitable for the Developer's needs except as specifically set forth in this Agreement. To the best knowledge of the EDA, the EDA is not in default concerning any of its obligations or liabilities regarding the Property. There is no action, litigation, investigation, condemnation or proceeding of any kind, including but not limited to condemnation, pending or, to the best knowledge of the EDA, threatened against the EDA or any portion of the Property. The EDA certifies and warrants that the EDA does not know of any "Wells" on the described Property within the meaning of Minn. Stat. ~ l03I. This representation is intended to satisfy the requirements of that statute. To the best knowledge of the EDA after due inquiry, no above ground or underground tanks are located in or about the Property, or have been located under, in or about the Property and have subsequently been removed or filled. To the extent storage tanks exist on or under the Property, such storage tanks have been duly registered with all appropriate regulatory and governmental bodies, and otherwise are in compliance with applicable federal, state and local statutes, regulations, ordinances and other regulatory requirements. (h) That the Property abuts Middle Creek which is regulated by the Minnesota Department of Natural Resources. (i) Solely for purposes of satisfying the requirements of Minn. Stat. S lI5.55, the EDA represents that there is no "individual sewage treatment system" (within the meaning of that statute) on or serving the Property. The EDA will indemnify the Developer, its successors and assigns, against, and will hold the Developer, its successors and assigns, harmless from, any expenses or damages, including reasonable attorneys' fees, that the Developer incurs because of the breach of any of the above representations and warranties, whether such breach is discovered before or after Closing. Consummation of this Agreement by the Developer with knowledge of any such breach by the EDA will not constitute a waiver or release by the Developer of any claims due to such breach. . Il4487.07 Rev: 8/3 0107 4 Section 2.2. Representations and Warranties by the Developer. The Developer represents and warrants that: . (e) (a) The Developer has the capacity to enter into this Agreement and to perform its obligations hereunder. (b) When the Property is conveyed to the Developer, the Developer will construct, operate and maintain the Minimum Improvements upon the Property in accordance with the terms of this Agreement, and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations). (c) The Minimum Improvements will be constructed by the Developer, at its sole expense, in such manner, and at such expense as are necessary to make the Property usable by the Developer, including all such improvements as are necessary to make said facility comply with all applicable federal, state and local rules, regulations, ordinances and laws. (d) The Developer will use reasonable efforts to construct the Minimum Improvements in accordance with all local, state or federal energy-conservation laws or regulations. The Developer will use reasonable efforts to obtain, in a timely manner, all required permits, licenses and approvals and to meet, in a timely manner, all requirements of all applicable local, state and federal laws and regulations which must be obtained or met before the Minimum Improvements may be lawfully constructed. The EDA will cooperate to expedite the processing of any application filed with the City by the Developer. The EDA does not hereby warrant or represent that it or the City will approve an application filed by Developer, except as expressly provided in this Agreement. . (f) The Developer will cooperate with the EDA, and the EDA will cooperate with the Developer with respect to any litigation commenced with respect to the Property or the Minimum Improvements. (g) The Developer will construct the Minimum Improvements on the Property in accordance with the plans approved by the EDA. (h) 114487.07 Rev:8/30107 Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with, or results in a breach of, the terms, conditions or provisions of any corporate restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound or constitutes a default under any of the foregoing. . 5 . . . (i) Whenever any Event of Default occurs and if the EDA shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement of performance or observance of any obligation or agreement on the part of the Developer under this Agreement, the Developer agrees that it shall, within ten (10) days of written demand by the EDA, pay to the EDA the reasonable fees of such attorneys and such other expenses so incurred by the EDA. ARTICLE III. CONVEYANCE OF PROPERTY Section 3.1. Status of Property. Subject to the satisfaction of the terms and conditions of this Agreement, the EDA will convey the Property to Developer through the execution and delivery of the Deed containing a right of reversion as provided under Section 7.3 of this Agreement. Section 3.2. Conditions Precedent to Conveyance of Property. (a) The EDA's obligation to convey the Property shall be subject to the satisfaction of, or waiver by the EDA of, all of the following conditions precedent: (i) The Developer not being in default beyond applicable notice and cure periods under the terms of this Agreement; (ii) The Developer having secured all governmental permits and approvals, including building permits necessary to be obtained in order to permit construction of the Minimum Improvements; and (iii) The Developer shall have submitted to the EDA and the EDA shall have approved Construction Plans for the Minimum Improvements pursuant to Article IV of this Agreement. (b) The Developer shall be obligated to accept title to the Property subject to satisfaction, or waiver by the Developer, of the following conditions precedent: (i) The EDA not being in default beyond applicable notice and cure periods under the terms of this Agreement; and (ii) The Developer having secured the EDA's approval of the Construction Plans and all other governmental permits and approvals, including building permits necessary to construct the Minimum Improvements. (iii) Approval of the environmental condition of the Property. 114487.07 Rev:8/30107 6 (iv) Approval of the condition of the soil for the construction of the Minimum . Improvements. (v) Approval of the condition of the title ofthe Property. (vi) Approval of City and County zoning requirements and restrictions applicable to the Property. (vii) The Developer determining that City water and sewer are available to the Property and that the water pressure is adequate to sprinkler all Minimum Improvements to be constructed. (viii) The representations and warranties of the EDA contained in this Agreement must be true now and on the Closing Date as if made on the Closing Date. (ix) The Developer obtaining an easement for private sanitary sewer purposes from Bernard Murphy Farms L.P. (x) The Developer obtaining from Northern Natural Gas an acceptable encroachment agreement. In the event that Developer has not satisfied the conditions set forth in Section .. 3.2(b)(ix) and (x) above by the Closing Date set forth in Section 3.4 below, Developer may extend the Closing Date by up to sixty (60) days, subject to Developer's obligation to close within ten (10) days of satisfying both of said contingencies. In the event that either of said contingencies are not satisfied or waived by Developer by the extended Closing Date, and the parties do not extend the Closing Date further, then this agreement shall be null and void and the earnest money shall be refunded to Developer. Section 3.3. Purchase Price. The Purchase Price for the Property shall be payable by Developer to the EDA as follows: (a) $lO,OOO.OO as earnest money ("Earnest Money"); (b) The balance of the Purchase Price in cash or by wire transfer at the closing. Section 3.4. Closing. (a) Within ten (10) days after the satisfaction and/or waiver of all of the conditions contained in Section 3.2 of this Agreement (and in any event no later than October 3l, 2007, the "Closing Date") provided all conditions precedent for the EDA and Developer to close have either been met or waived, and the Developer pays the City the Purchase Price, the EDA shall convey the Property to the . 114487.07 Rev:8/30107 7 . . . Developer through the execution and delivery of the Deed with the right of reversion described in Section 3.1 above, and all other documents reasonably required by Developer and the Title Company. The closing shall be at a location mutually agreed upon by the parties. (b) The Developer shall take possession of the Property upon execution and delivery of the Deed by the EDA at closing. (c) The Deed shall be in recordable form and shall be promptly recorded along with this Agreement. (d) At closing, the Developer shall pay: all closing costs including, but not limited to, state deed tax relating to the conveyance of the Property, all title insurance company fees for title insurance premiums, if any, one half of closing costs, all recording fees and conservation fees. Property taxes shall be prorated to the closing date. The EDA shall pay all pending and levied assessments. (e) At the time of the conveyance of the Property by EDA to Developer, the EDA shall deliver to Developer (if the EDA has not already done so), all other documents reasonably required by Developer's title agent in order to complete the transaction described herein. Section 3.5. Title. Developer shall, at its sole cost and expense, obtain a current commitment for the issuance ofa ALTA Form B owner's policy of title insurance (the "Commitment") issued by Title committing to insure that Developer will have good and marketable title to the Property free and clear of all liens, restrictions, covenants and encumbrances. A mortgage, monetary lien or any other lien or encumbrance against the property shall be deemed to be a title objection. In the event any exceptions are listed in the Commitment (except for Permitted Encumbrances), if the EDA does not immediately remove the exceptions, the Developer shall have the right to terminate this Agreement as the Developer's sole and exclusive remedy and in such event neither the EDA nor the Developer shall have any obligations or liability to the other hereunder, and the Earnest Money shall be returned to Developer. Section 3.6. Charges to be Paid by Developer. (a) The Developer shall be responsible to pay, at closing, the following charges and fees, which may be amended to reflect changes in the fmal plans from the assumptions identified herein: (i) surface water management fees = $23, l51.3l This amount is based upon the 1996 fee calculation, adjusted to 2007. (ii) water main trunk area charges = $6266.43 This amount is based upon the 1996 fee calculation, adjusted to 2007. 114487.07 Rev:8/30107 8 (0") 111/ water treatment plant fees = $ TBD This fee is based upon a charge of _ Residential Equivalent Units (REUs) at $645 per REU, under the City's 2007 fee schedule. The actual number of REUs may be lower or higher, and the final Water Treatment Plant Fee may be correspondingly lower or higher, based upon the construction plans that are ultimately approved and the date of construction. Number of REUs will be based on approved construction plans and shall be paid along with building permit fees. No estimate provided at this time. (iv) sanitary trunk area charges = $6.680.31 This amount is based upon 1996 fee calculation, adjusted to 2007 (v) park dedication fees = $2.823.84 This amount is based upon 1996 fee calculation, adjusted to 2007 (vi) GIS fees = $310.50 This amount is based upon 1996 fee calculation, adjusted to 2007 $1.221.00 $535.00 (vii) Surveying/Platting fees: (viii) Water quality management fee == At Developer's request, the City will assess the amounts under subsection (i) - (v) against the Property. At that time, the Developer will have the option of paying the assessment in full or having the assessment added to the Property tax bill. If the latter option is selected, the assessments shall be spread over a ten-year period with 5% interest on the unpaid balance from the time of the initial adoption of the assessment. The assessment shall be deemed adopted on the date this Contract is signed by the City. Developer waives any and all procedural and substantive objections to the assessments under this section, including but not limited to hearing requirements and any claim that the assessment is unlawful or exceeds the benefit to the property assessed. Developer waives any remedies or appeal rights otherwise available pursuant to law or Minnesota Statute ~ 429.081. (b) The Developer shall be responsible to pay, prior to obtaining a building permit for the Minimum Improvements, all charges and fees identified herein, and other charges and assessments as may be imposed, such as (but not limited to) the following: (i) 114487.07 Rev: 813 0107 Water and Sewer Connection Charges = $7.245.00 For sewer, this fee includes Metro Sewer Availability Charges and City Sewer Availability Charge and connection permit. Sewer charges are based upon 3 SAC units and J. CSAC units. The actual number of SAC and CSAC units may be lower or higher, and the final sewer charges may be correspondingly lower or higher, based upon the constructions plans that are ultimately approved. SAC charges will be charged based on the 9 . . . . . . current rates. CSAC and connection permit amounts are based upon a 1996 fee calculation, adjusted to 2007. For water, this fee includes a WAC and connection permit charge. The WAC charge is based on a l" water connection. The final WAC will be lower or higher if the construction plans that are ultimately approved reflect a smaller or larger water connection. The WAC and connection permit amounts are based upon a 1996 fee calculation, adjusted to 2007. (ii) Water meter fee = $490 The Water Meter Fee is based on a l" water connection. The fInal Water Meter Fee will be lower or higher if the construction plans that are ultimately approved reflect a smaller or larger water connection. This fee is based on the 2007 City Fee Schedule. (iii) building permit fees. Any of the above fees that are calculated at 2007 rates, shall be calculated at the current city rates, in the event a building permit is not issued before December 31. 2007. Section 3.7. Other Charges. In addition to the utility charges and other charges and fees referred to in this Agreement, other fees due the City are building permit fees such as for signs, electrical, and plumbing. ARTICLE IV. CONSTRUCTION OF MINIMUM IMPROVEMENTS Section 4.1. Construction of Minimum Improvements. The Developer agrees that it will construct the Minimum Improvements on the Property in accordance with construction plans approved by the EDA, (the "'Construction Plans") and will operate and maintain, preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof in good repair and condition. Section. 4.2. Construction Plans. (a) On or before September l. 2007. the Developer shall submit to the EDA a site plan for the Property ("Site Plan") and the Construction Plans for the Minimum Improvements. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in conformity with this Agreement, the Site Plan, and all applicable state and local laws and regulations. The EDA and/or the City Engineer shall approve the Construction Plans in writing if, in the reasonable discretion of the EDA and/or City Engineer: (i) the Construction Plans conform to the terms and conditions of this Agreement; (ii) the Construction Plans conform to 114487.07 Rev: 8/3 0/07 10 thall acpplicable.fedeprlal, state andd local law, O~ddin~ceths, rules and :egulfatihons; b(~ii) . e onstructlOn ans are a equate to proVl e lor e constructIon 0 t e su ~ect Minimum Improvements; and (iv) no Event of Default has occurred and is continuing hereunder. No approval by the EDA and/or City Engineer under this Section 4.2 shall relieve the Developer of the obligation to comply with the terms of this Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the Minimum Improvements. No approval by the EDA and/or City Engineer shall constitute a waiver of an Event of Default. The EDA and/or City Engineer shall review the Construction Plans within thirty (30) days after submission of a complete set of Construction Plans and either approve the same or provide Developer with a list of reasonable, specific required changes to be made to the Construction Plans. Upon making the specific changes to the Construction Plans as reasonably required by the EDA and/or City Engineer, the Developer shall submit the Construction Plans with the required changes to the City Engineer for his approval and if Developer made the required changes, the Construction Plans shall be approved. (b) If the Developer desires to make any material change in any Construction Plans after their approval by the EDA and/or City Engineer, the Developer shall submit the proposed change to the City Engineer for his approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section 4.2 of this Agreement with respect to such previously approved Construction Plans, the EDA and/or City Engineer shall approve the proposed change and notify the Developer in writing of its approval. . Section 4.3. Construction of Minimum Improvements. The Developer shall commence construction of the Minimum Improvements on or before thirty (30) days after closing. Subject to Unavoidable Delays, the Developer shall substantially complete construction of the Minimum Improvements, except for landscaping, exterior matters such as paving, and minor "plIDCh list items", on or before July 31. 2008. Section 4.4. Construction Requirements. In constructing the Minimum Improvements, the Developer shall comply with all federal, state and local laws and regulations, including the following requirements: a. Erosion Control and Fees. After the site is rough graded, but before any utility construction is commenced or building permits are issued, an erosion control plan shall be implemented by the Developer and inspected and approved by the City. The City may impose additional erosion control requirements if it is determined that the methods implemented are insufficient to properly control erosion. All areas disturbed by the excavation and back-filling operations shall be re-seeded forthwith after the completion of the work in that area. All seeded areas shall be fertilized, mulched and disc anchored as necessary for seed retention. The parties recognize that time is of the essence in controlling erosion. If the Developer does not comply with the erosion control plan and schedule, or supplementary instructions received from the City, or in an emergency . determined at the sole discretion of the City, the City may take such action as it deems 114487.07 Rev: 813 0/07 11 . appropriate to control erosion immediately, without notice to the Developer. The City will endeavor to notify the Developer in advance of any proposed action, but failure of the City to do so will not affect the Developer's and the City's rights or obligations hereunder. If the Developer does not reimburse the City for any costs of the City incurred for such work within thirty (30) days, the City may upon any available security to pay such costs. No bui~ding permits will be issued unless the development is in full compliance with the erosion control requirements. The Developer is responsible for Erosion Control inspection fees at the current rate(s). The Developer is also responsible for a Water Quality Management Fee based upon the number of acres acquired by the Developer. This fee is due and payable at the time of closing or at such other time as may be mutually agreed upon by the parties hereto, and is in the amount of $155.00 per acre. . b. License. The Developer hereby grants the City, its agents, employees, officers and contractors, a license to enter the Property to perform all necessary work and/or inspections deemed appropriate by the City during the installation of public improvements by the City. The license shall expire after the public improvements installed pursuant to this Agreement have been installed by the City. During its use of the license herein granted, the City shall not unreasonably interfere with Developer's use and enjoyment of the Property or the construction of the Minimum Improvements. Further, the City shall indemnify the Developer against all losses, claims, and causes of action resulting from the City's use of this license, or the City's presence on the Property. c. Clean UP. The Developer shall weekly, or more often if required by the City Engineer, clear from the public streets and property any soil, earth or debris resulting from construction work by the Developer or its agents or assigns. All debris, including brush, vegetation, trees and demolition materials, shall be disposed of off site. Burning of trees and structures shall be prohibited, except for fire training only. The City has a contract for street cleaning services. The City will have the right to clean the streets as outlined in current City policy. The Developer shall promptly reimburse the City for street cleaning costs. d. Enforcement: Liens. The Developer shall reimburse the City for costs incurred in the enforcement of this Contract, including engineering and attorney's fees. In the event that the City receives claims from labor, materialmen, or others that have performed work required by this Contract, that the sums due them have not been paid, and the laborers, materialmen, or others are seeking payment from the City, the Developer hereby authorizes the City to commence an Interpleader action pursuant to Rule 22, Minnesota Rules of Civil Procedure for the District Courts, to draw upon any available security in an amount up to 125% of the claim(s) and deposit the funds in compliance with the Rule, and upon such deposit, the Developer shall release, discharge, and dismiss the City from any further proceedings as it pertains to the funds deposited with the District Court, except that the Court shall retain jurisdiction to determine attorneys' fees pursuant to this Contract. . 114487.07 Rev: 8/3 0107 12 e. Bills. The Developer shall pay in full all bills submitted to it by the City within thirty (30) . days after receipt. If the bills are not paid on time, the City may halt all site development work until the bills are paid in full. Bills not paid within thirty (30) days shall accrue interest at the rate of eight percent (8%) per annum. If the bills are not paid within sixty (60) days, the City has the right to draw from the Developer's security to pay the bills. Section 4.5. Failure to Accept Title to Property or to Construct. In the event all conditions precedent herewith are met or waived and the Developer fails to accept title to the Property pursuant to Article III or construction of the Minimum Improvements is not completed as provided in Section 4.3 of this Agreement (subject to the provisions of Article VII hereof), the Developer shall be liable to the EDA for the amount of the EDA's actual expenses related to this Agreement as liquidated damages. Section 4.6. Security. As security for the obligations created in this Section and in Section 3.2 and elsewhere herein, the Developer shall deliver to the EDA at closing, an irrevocable Letter of Credit, in the form attached hereto as Exhibit "C", from a bank or other security satisfactory to the EDA (cash escrow) in the amount of$l5L690.00. The amount of the security was calculated as follows: . Landscaping $ 9,922.00 . Bituminous Parking and Drive Area $47,430.00 . Utilities $64.000.00 TOTAL PROJECT SECURITIES (with 25% Mult.) $151,690.00 . This breakdown is for historical reference; it is not a restriction on the use of the security. The bank shall be subject to the approval of the EDA Attorney. The security shall be for a term ending November 30. 2008. Individual security instruments may be for shorter terms provided they are replaced at least thirty (30) days prior to their expiration. The EDA may draw down the security, without notice, for any violation of the terms of this Agreement or if the security is allowed to lapse prior to the end of the required term. If the required improvements are not completed at least thirty (30) days prior to the expiration of the security, the EDA may also draw it down. If the security is drawn down, the proceeds shall be used to cure the default. Upon receipt of proof satisfactory to the EDA that work has been completed and :financial obligations to the EDA have been satisfied, with EDA approval the security may be reduced from time to time by eighty percent (80%) of the fInancial obligations that have been satisfied. Twenty percent (20%) of the security shall be retained until all improvements have been completed and all fmancial obligations to the EDA satisfied. At Developer's option, the project security required above may be partially satisfied by Developer providing written directions to the City of Farmington to transfer funds otherwise owed to Developer by the City for 2 10th Street Right of Way to the City of Farmington EDA to be held as a cash escrow security under this Section. The EDA may draw down on either the LOC or cash escrow at its discretion for any default. Amounts released by the EDA from the total project securities upon completion of improvements and satisfaction of obligations to the ED A may be apportioned at Developer's direction between the LOC or cash escrow. As further security for the aforesaid obligations, the Developer shall arrange to have the . 114487.07 Rev:8/30/07 13 . .' . EDA and City named as an additional insureds on any payment or performance bond(s) that the Developer obtains from its construction contractor(s). As further security for the aforesaid obligations, the Developer shall ensure that the terms of its construction financing and/or title insurance include a provision requiring EDA and City approval prior to the payment or disbursement of any funds for construction-related expenses. The City may draw on such security under those circumstances expressly provided for in this Agreement ARTICLE V. REAL PROPERTY TAXES Section 5.1. Developer's Obligations. The Developer shall pay all real property taxes payable with respect to the Property after closing. Section 5.2. Review Waiver. The Developer agrees that prior to the year 2008: (a) It will not seek administrative review or judicial review of the applicability of any tax statute relating to the taxation of real property contained on the Property determined by any tax official to be applicable to the project or the Developer or raise the inapplicability of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; (b) It will not seek administrative review or judicial review of the constitutionality of any tax statute relating to the taxation of real property contained on the Property determined by any tax official to be applicable to the project or the Developer or raise the unconstitutionality of any such tax statute as a defense in any proceedings. ARTICLE VI. BUSINESS SUBSIDY Intentionally Left Blank. ARTICLE VII Events of Default Section 7.1. Events of Default Def'med. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides), anyone or more of the following events, if any of the following occurs and continues for thirty (30) days after demand to cure is delivered to the Developer by the EDA, or if such Event of Default cannot reasonably be cured within such thirty (30) day period, if Developer fails to provide to the EDA reasonably adequate assurances that Developer will continue to perform in compliance with this Agreement: 114487.07 Rev: 8/3 0/07 14 (a) Failure by the Developer to pay when due any payments required to be paid under this Agreement or to pay when due ad valorem taxes on the Property. . (b) Failure by the Developer to commence, diligently pursue and complete construction of the Minimum Improvements, or portions thereof, pursuant to the terms, conditions and limitations of this Agreement. '(c) Failure by Developer to observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed hereunder. (d) The Developer does any of the following: (i) files any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under United States Bankruptcy Laws or any similar federal or state laws; or (ii) make an assignment for the benefit of its creditors; or (iii) admit, in writing, its inability to pay its debts generally as they become due; or (iv) be adjudicated, bankrupt or insolvent. (e) If any warranty or representation by the Developer in this Agreement is untrue in any material respect. Section 7.2. EDA's Remedies on Default. Whenever any Event of Default by Developer referred to in Section 7.1 of this Agreement occurs, the EDA may take anyone or . more of the following actions: (a) Suspend its performance under the Agreement until it receives assurances from the Developer, reasonably deemed adequate by the EDA, that the Developer will cure its default and continue its performance under the Agreement. (b) Terminate this Agreement; (c) Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to the EDA to collect any payments due or damages arising under this Agreement or to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement. Section 7.3. Revesting Title in EDA Upon Happening of Event of Default Subsequent to Conveyance to Developer. In the Event that subsequent to the execution and delivery of the Deed the Developer shall fail to complete construction of the Minimum Improvements in conformity with this Agreement and such failure shall not be cured within thirty (30) days after written notice to do so, or within a reasonable amount of time thereafter if Developer is diligently proceeding with the construction of the Minimum Improvements, then the EDA shall have the right to immediately re-enter and take possession of the Property and to terminate (and revest in the EDA) the estate conveyed by the Deed to the Developer, it being the . intent of this provision, together with other provisions of the Agreement, that the conveyance of . 114487.07 Rev:8/30107 15 . the Property to the Developer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Developer and failure on the part of the Developer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, the EDA at its option may declare a termination in favor the EDA of the title, and all of the rights and interests in and to the Property conveyed to the Developer, and that such title and all rights and interests of the Developer, and any assigns or successors in interest to and in the Property, shall revert to the EDA. Section 7.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to the EDA is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. Section 7.5. Attorneys' Fees. Whenever any Event of Default occurs and either the EDA or the Developer shall employ attorneys or incur expenses for the collection of payments due or to become due or for the enforcement of performance or observance of any obligation or agreement under this Agreement, the defaulting party agrees that it shall, within ten (l 0) days of written demand by the other party pay the reasonable fees of such attorneys and such other expenses so incurred by the non-defaulting party; provided, that such non-defaulting party prevails in is claim for enforcement of this Agreement. . ARTICLE VIII. ADDITIONAL PROVISIONS Section 8.1. Certificate of Completion. Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of this Agreement, the EDA will furnish Developer with a certificate of completion substantially in the form shown at Exhibit "B" (the "Certificate of Completion"). Such certification by the EDA shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligations of Developer, and its successors and assigns, to construct the Minimum Improvements, and shall operate to forever waive the EDA's interest in the Property, including the right of reverter. If the EDA shall refuse or fail to provide any certification in accordance with the provisions of this Section 8.1, the EDA shall, upon demand, provide Developer with a written statement, indicating in adequate detail in what respect Developer has failed to complete the Minimum Improvements in accordance with the provision of this Agreement, or is otherwise in default, and what measures or acts will be necessary, in the opinion of the EDA, for Developer to take or perform in order to obtain such certification. Upon Developer's completion of the items so described by the EDA, the EDA shall deliver a fully executed Certificate of Completion to Developer. . Section 8.2. Restrictions on Use. The Developer agrees for itself and its successors and 114487.07 Rev:8/30107 16 assigns and every successor in interest to the Property, or any part thereof, that the Developer . and such successors and assigns shall devote the Property to, and only to, and in accordance with, the uses specified in the City Code. Section 8.3. Equal Employment Opportunity. The Developer, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in this Agreement it will comply with all applicable federal, state and local equal employment and nondiscrimination laws and.regulations. Section 8.4. Conflicts of Interest. No member of the governing body or other official of the EDA shall have any financial interest, direct or indirect, in this Agreement, the Project or any contract, agreement or other transaction contemplated to occur or be undertaken thereunder or with respect thereto, nor shall any such member of the governing body or other official participate in any decision relating to the Agreement which affects his personal interest or the interest of any corporation, partnership or association in which he is, directly or indirectly, interested. No member, official or employee of the EDA shall be personally liable to the Developer or any successors in interest, in the event of any default or breach by the EDA or for any amount which may become due to the Developer or successor or on any obligations under the terms of the Agreement. Section 8.5. Waiver and Release by Developer. The Developer hereby waives, releases and forever discharges the EDA from any claim for costs incurred in preliminary plans, specifications, site testing improvements, professional fees or legal fees in connection with the . Project. Section 8.6. Titles of Articles and Sections. Any titles of the several parts, Articles and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 8.7. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested or delivered personally; and (a) In the case of the Developer, is addressed or delivered personally to: POR-MKR REAL ESTATE, LLC 101 East lOth Street Suite 300 Hastings, MN 55033 Telephone: 651-437-9421 Facsimile: 651-437-9197 with a copy to: Richard K. Hocking . 114487.07 Rev: 8/3 0107 17 . . . Richard K. Hocking, P.A. 10657 165th Street West Lakeville, MN 55044 (952)432-8129 Facsimile: (952)241-3861 114487.07 Rev:8/30107 18 (b) In the case of the EDA, is addressed or delivered personally to: . Economic Development Authority in and for the City of Farmington City of Farmington 325 Oak Street Farmington, MN 55024 with a copy to: Economic Development Authority Attorney Andrea McDowell Poehler CAMPBELL KNUTSON Professional Association 1380 Corporate Center Curve, Suite #317 Eagan, Minnesota 55121 Telephone: (65l) 452-5000 (c) Either Party may, upon written notice to the other Party, change the address to which such notices and demands are made. Section 8.8. Disclaimer of Relationship. The Developer acknowledges that nothing contained in this Agreement nor any act by the EDA or the Developer shall be deemed or . construed by the Developer or any third person to create any relationship of third-party beneficiary, principal and agent, limited or general partner or joint venture between the EDA and the Developer. Section 8.9. Covenants Running with the Land. The terms and provisions of this Agreement shall be deemed to be covenants running with the Property and shall be binding upon any successors or assigns of the Developer and any future owners or encumbrancers of the Property . Section 8.10. Counterparts. This Agreement is executed m any number of counterparts, each of which shall constitute one and the same instrument. Section 8.11. Law Governing. This Agreement will be governed and construed in accordance with the laws of Minnesota. Section 8.12. Facsimile Signature. The parties hereto acknowledge and agree that in order to expedite the signing of this Agreement and the processing, and review and compliance with the terms hereof, the parties may utilize facsimile equipment to transmit and convey signatures hereto and such other information as may be necessary. With respect to any such transmission bearing a signature for any party hereto and on which the receiver is or may be reasonably expected to rely, than if such a facsimile transmission is corroborated by regular facsimile printout showing the telephone number from which transmitted together with a date . and time of transmission, it shall be binding on the sending party and may be relied upon by the 114487.07 Rev: 8/3 0107 19 . . . party receiving the same. The sending party hereby acknowledges such reliance and waives any defenses to the use of such documents or signatures. Section 8.13. Approvals and Consents. Wherever the EDA's approval or consent is required by this Agreement, such approval or consent shall not be unreasonably withheld, conditioned or delayed, unless otherwise expressly set forth herein. Section 8.14. Exchange Provisions. The EDA shall cooperate, at no out of pocket expense, with the treatment of this purchase of property as an exchange under Internal Revenue Code Sections 103l or 1033, if so elected by Developer. 114487.07 Rev:8130107 20 IN WITNESS WHEREOF, the EDA has caused this Agreement to be duly executed in . its name and behalf, and the Developer has caused this Agreement to be dilly executed in its name and behalf, on or as of the date first above written. Economic Development Authority in and for the City of Farmington By: Its President By: Its Executive Director By: . STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ~ day of , 2007, by and , the President and Executive Director, respectively, of the Economic Development Authority in and for the City of Farmington, Minnesota, 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 STATE OF MINNESOTA ) TANYA L. DOLAN )ss. Notary Public COUNTY OF DAKOTA ) Minnesota My om mission Expires January 31, 2011 The foregoing instrument was acknowledged before me this ~ day of ~ rJ, I~ ' . 2007, by Patrick O. Regan, the Chief Manager of POR-MRK REAL~, LLC, a 114487.07 Rev: 8/3 0107 21 . Minnesota limited liability company corporation . . DRAFTED BY: CAMPBELL KNUTSON, P.A. 1380 Corporate Center Curve, Suite #3l7 Eagan, Minnesota 55121 Telephone: (651) 452-5000 114487.07 Rev: 8/3 0107 22 EXHIBIT "A" . LEGAL DESCRIPTION OF THE PROPERTY Lot 3, Block l, Farmington Industrial Park 20Sth Street Addition, according to the recorded plat thereof, Dakota County, Minnesota. . . . . . EXHIBIT "B" CERTIFICATE OF COMPLETION The undersigned hereby certifies that POR-MRK REAL ESTATE, LLC ("Developer") has fully complied with its obligations to construct the Minimum Improvements under that document titled Contract for Private Redevelopment dated , 2007, by and between the Economic Development Authority in and for the City of Farmington (the "EDA") and Developer, and that Developer is released and forever discharged form its obligations under the Agreement with respect to the obligations of Developer, and its successors and assigns, to construct the Minimum Improvements, and the EDA waives any right, title or interest it may have in the Property, including a right of reverter. The Dakota County Recorder's Office is hereby authorized to accept for recording the filing of this instrument, to be a conclusive determination of the satisfaction and termination of the covenants and conditions of the Contract for Private Redevelopment described above. IN WITNESS WHEREOF, the EDA has caused this Certificate to be duly executed in its name and behalf on or as of the date first above-written. Economic Development Authority in and for the City of Farmington By: Its President By: Its Executive Director STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this _ day of ,2007, by and , the President and Executive Director, respectively, of the Economic Development Authority in and for the City of Farmington, Minnesota, 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 EXHIBIT "e" . IRREVOCABLE LETTER OF CREDIT No. Date: TO: Economic Development Authority in and for the City of Farmington 3 25 Oak Street Farmington, MN 55024 Dear Sir or Madam: . and in your favor, our , available to you by your We hereby issue, for the account of Irrevocable Letter of Credit in the amount of $ draft drawn on sight on the undersigned bank. The draft must: a) Bear the clause, "Drawn under Letter of Credit No. , dated 20_, of (Name of Bank) "; . b) Be signed by the Chair and Executive Director of the Economic Development Authority in and for the City of Farrnington ("Farmington EDA"). c) Be presented for payment at (Address of Bank) This Letter of Credit shall automatically renew for successive one-year terms from the date indicated above unless, at least forty-five (45) days prior to the next annual renewal date, the Bank delivers written notice to the Farmington EDA Executive Director that it intends to modify the terms of, or cancel, this Letter of Credit. Written notice is effective if sent by certified mail, postage prepaid, and deposited in the U.S. Mail, at least forty-five (45) days prior to the next annual renewal date addressed as follows: Farmington EDA Executive Director, 325 Oak Street, Farmington, MN 55024, and is actually received by the Farmington EDA Executive Director at least thirty (30) days prior to the renewal date. This Letter of Credit sets forth in full our understanding which shall not in any way be modified, amended, amplified, or limited by reference to any document, instrument, or agreement, whether or not referred to herein. This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw may be made under this Letter of Credit. This Letter of Credit shall be governed by the most recent revision of the Uniform Customs . and Practice for Documentary Credits, International Chamber of Commerce Publication No. 400. . . . We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly honored upon presentation. [NAME OF BANK] By: [name] Its: [identify official " (1) 1.0 C\I C\I .... C!; f\~~ I'l I "'.- i;2 ~ ~ 0 o ..J ..Jo UJ~LO W~ !:i!::~ I-=>", rn(/)O _ll'l W~ll'l ..J(/)Z ctZ::;E Wo _ -:J(/) "'~C!l a:::;E~ ~ffi~ :iE><( 'O):I: a:~ 00) D. . ~ '" It i~l :Iii ~ {J ? I tJ\ C8 \ '0; Cfl I ~~ ~ '\~.&iir 0 ~1 \ ~~ . ~ I . ~ []'" lI1 n.J n.J ~ lIS .... 0", II~ :E. ~ ~gg ~ lIS~!!! ~ m;!:a; 0 "'Z:E '!!!~rJ , rtI E .z tll Q)~~ t: lI1 .. ~< "" D..-J: <::i 0 ~J~ ~'~ ill ~ ~ ;-~ ~ 0 .l3"TT'f'M 3xn130 CI 3.1't:)(1d1'\O 1:10 IJSJYd JJ.34'1S . . . . GRANT OF TEMPORARY AND PERMANENT EASEMENT AND EASEMENT MAINTENANCE AGREEMENT ("Easement") r!- TillS EASEMENT is made this 2/."'- day of September, 2007, by and between POR-MKR REAL ESTATE, LLC, a Minnesota limited liability company ("Grantee") 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 ("Grantor"). RECITALS 1. Grantee is the owner of the real estate in Dakota County, Minnesota legally described as: Lot 3, Block 1, Farmington Industrial Park 20Sth Street Addition 2. Grantor is the owner of the real estate in Dakota County, Minnesota legally described as: Outlot C, Farmington Industrial Park 2nd Addition 3. Sanitary sewer installations necessary to service Grantee's property are located west of Grantor's property. To access the sanitary sewer installations the Grantee desires to obtain from Grantor an easement for sanitary sewer purposes and a temporary construction easement described as follows: A 30.00 foot wide private sanitary sewer easement over, under, and across that part of Outlot C, Farmington Industrial Park 2nd Addition, Dakota County, Minnesota, according to the recorded plat thereof. The centerline of said easement is described as follows: ll40Q?vOl 1 FMClTN H'R AIR p.p'~n Commencing at the southeast corner of Lot 3, Block 1, Farmington Industrial Park 208th Street Addition, Dakota County, Minnesota, according to the recorded plat thereof; . thence North 00 degrees l5 minutes 20 seconds West, assumed bearing, along the east line of said Lot 3 (also being the west line of said Outlot C) a distance of 297.94 feet to the beginning of the line to be described; thence North 77 degrees 29 minutes 26 seconds East a distance of l6.88 feet to the east line of said Outlot C of Farmington Industrial Park 2nd Addition, and said line there terminating. Together with a temporary construction easement described as follows: A 70.00 foot wide temporary construction easement over, under, and across that part of Outlot C, Farmington Industrial Park 2nd Addition, Dakota County, Minnesota, according to the recorded plat thereof. The centerline of said easement is described as follows: Commencing at the southeast comer of Lot 3, Block l, Farmington Industrial Park 208th Street Addition, Dakota County, Minnesota, according to the recorded plat thereof; thence North 00 degrees l5 minutes 20 seconds West, assumed bearing, along the east line of said Lot 3 (also being the west line of said Outlot C) a distance of297.94 feet to the beginning of the line to be described; thence North 77 degrees 29 minutes 26 seconds East a distance of l6.88 feet to the east line of said Outlot C of Farmington Industrial Park 2nd Addition, and said line there terminating. 4. The parties further desire to set forth the terms and conditions of a maintenance . agreement in regard to the easements. EASEMENTS For one dollar and other good and valuable consideration the parties hereby agree as follows: 1. Grantor hereby grants and conveys unto Grantee easements described as follows: A 30.00 foot wide private sanitary sewer easement over, under, and across that part of Outlot C, Farmington Industrial Park 2nd Addition, Dakota County, Minnesota, according to the recorded plat thereof. The centerline of said easement is described as follows: Commencing at the southeast comer of Lot 3, Block 1, Farmington Industrial Park 208th Street Addition, Dakota County, Minnesota, according to the recorded plat thereof; thence North 00 degrees 15 minutes 20 seconds West, assumed bearing, along the east line of said Lot 3 (also being the west line of said Outlot C) a distance of 297.94 feet to the beginning of the line to be described; thence North 77 degrees 29 minutes 26 seconds East a distance of l6.88 feet to the east line of said Outlot C of Farmington Industrial Park 2nd Addition, and said line there terminating. . 1 ~40Q".vO 1 ? FMCTrn HR AIR"'P'fln . . . Together with a temporary construction easement described as follows: A 70.00 foot wide temporary construction easement over, under, and across that part of Outlot C, Farmington Industrial Park 2nd Addition, Dakota County, Minnesota, according to the recorded plat thereof. The centerline of said easement is described as follows: Commencing at the southeast corner of Lot 3, Block I, Farmington Industrial Park 208th Street Addition, Dakota County, Minnesota, according to the recorded plat thereof; thence North 00 degrees l5 minutes 20 seconds West, assumed bearing, along the east line of said Lot 3 (also being the west line of said Outlot C) a distance of 297.94 feet to the beginning of the line to be described; thence North 77 degrees 29 minutes 26 seconds East a distance of 16.88 feet to the east line of said Outlot C of Farmington Industrial Park 2nd Addition, and said line there terminating. 2. The temporary construction easement shall terminate on July 31, 2008. Grantee shall restore the temporary construction easement area to a condition reasonably similar to the condition of the property prior to the commencement of construction. 3. The sanitary sewer easement shall be perpetual in nature. 4. Grantee shall be obligated to provide any and all maintenance of the sanitary sewer installations as may be necessary to assure the continuing, proper functioning of the sanitary sewer system. Grantee may go upon the easement area from time to time, and with reasonable notice to the Grantor, for the purpose of inspecting, repairing, replacing, and maintaining the sanitary sewer installations. The maintenance provided herein shall be at the sole cost and expense of the Grantee. 5. Grantee shall indemnify and hold harmless the Grantor from any claims or causes of action that may result from the activities of the Grantee in regard to the installation and maintenance provided under this Easement. 6. This Easement shall run with the land and be binding upon the parties, their heirs, successors, and assigns. IN WITNESS WHEREOF, the parties have executed this Easement effective the day and year first above written. ll40Q?v01 '< FMr-TN HR AfRP.l>lln GRANTOR: GRANTEE: ECONOMIC DEVELOPMENT AUTHORITY POR-MKR REAL ESTATE, LLC IN AND FOR THE CITY OF FARMINGTON . Its Chairperson BY: ~ Patrick O. Regan, BY: AND Its Secretary STATE OFMINNESOTA ) ( ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this 2007, by and by day of September, the and of the Economic Development Authority in and for the City of Farmington, a public body corporate and politic, on its behalf. NOTARY PUBLIC . STATE OF MINNESOTA ) ~ G" ''''.. TANYA L. DO~AN ( ~ ..lJ Notary Public ~ ss. . .'., ,.' Minnesota ~ COUNTY OF DAKOTA ) My Commission Expires Janw:>ry 11. 2011 ~ The foregoing instrument was acknowledged before me this~ day of September, 2007, by Patrick O. Regan. the Chief Manager ofPOR-MKR Real Estate, LLC, a Minnesota limited liability company, on behalf of the co y. INSTRUMENT DRAFTED BY: CAMPBELL KNuTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 Telephone: (651) 452-5000 SRN . 1140Q?v01 Ll FMGrn HRAIRp.IJfm ATTACHED EASEMENT SKETCH HERE / .4'" / ,f( / I ;;> () ;0 ~/ )> 0 u / ., -.100: ., 0>1\) o 0 / )> .01 ;0 OlD:> So / ~ CN -.10 ~ -.10 - / z fT1 G) / -I 0 z / o o DRAINAGE AND UTILITY EASEMENT 406.92 P~\F~I< 0~1" L...I "f,LJ A C""'\r"'\I"'T"IAIr.I r\uvt ,IVI' CD rrI ::::0 Z )> ::::0 0 s: c ;0 -0 I -< ..,., )> ;0 ~ (f) r 'lJ li40Q?vOl II :;Ol/):::jzp:!l/)(') (j)~(Xll/)fTl~~ 1T1;i'j -I<rTl :;0 :;0 r )> )> ;;0 fTl1 .,,'::l ZUJ' 'O3:~ :<~o$11z)>;= /' II S;'" (}1"", ~ ' ()Ol :!JOIT1 (Xl fTl . 2!2 fTl , X (J)'IT1- ~@(J)fTlO ~ O>-"~;;o<)>z ~. -)>I'TI-IG) o);!z2!2tl) ~:;oo"'lTIUJ UJ-< .:S~~ , -.-- o )>-'--1 "'0 z)> rI"\ 0:;0 . -< DRIVE ,/' ~ VI m 3:: m % -I -.0 6\~ I~ ~ ~ ~ -. c; FMC1TN HR A/R~o:ln -' . . . Grant of Easement and Easement Maintenance Agreement ("Easement" ) This Easement is made this 21st day of September, 2007, by and between Economic Development Authority in and for the City of Farmington, a public body corporate and politic under the laws of the State of Minnesota ("EDA") ("Grantee") and Bernard Murphy Farms L.P., a Minnesota limited partnership ("Grantor"). RECITALS 1. Grantee is the owner of the real estate in Dakota County, Minnesota legally described as: Lot 3, Block 1, Farmington Industrial Park 20Sth Street Addition 2. Grantor is the owner of the real estate in Dakota County, Minnesota legally described as: The south SO.OO feet of the west 330.00 feet of the Northwest Quarter of the Southeast Quarter of Section 25, Township 114, Range 20, Dakota County, Minnesota and The west 330.00 feet of the north 660.00 feet of the Southwest Quarter of the Southeast Quarter of Section 25, Township 114, Range 20, Dakota County, Minnesota 3. Grantee's property lies westerly of Grantor's property and is separated from Grantor's property by property legally described as Outlot C, Farmington Industrial Park 2nd Addition, Dakota County, Minnesota, which property is also owned by EDA. 4. Sanitary sewer installations necessary to service Grantee's property are located on Grantor's property. Grantee desires to obtain from Grantor an easement for sanitary sewer purposes described as follows: A 30.00 foot wide sanitary sewer easement over, under, and across the above described property the centerline of said easement is described as follows: Commencing at the northeast corner of the Southeast Quarter of the Southwest Quarter of said Section 25; thence South 00 \ degrees 15 minutes 20 seconds East, assumed bearing, along the east line of said Southeast Quarter of the Southwest Quarter a distance of 474.34 feet to the point of beginning of the centerline to be described; thence North 77 degrees 29 minutes 26 seconds East a distance of 55.00 feet and said centerline there terminating. The side lines of said easement shall be prolonged or shortened to terminate at said east line of the Southeast Quarter of the Southwest Quarter. . Together with a temporary construction easement described as follows: A 70.00 foot wide temporary construction easement over, under, and across the above described property the centerline of said easement is described as follows: Commencing at the northeast corner of the Southeast Quarter of the Southwest Quarter of said Section 25; thence South 00 degrees 15 minutes 20 seconds East, assumed bearing, along the east line of the said Southeast Quarter of the Southwest Quarter a distance of 474.34 feet to the point of beginning of the centerline to be described; thence North 77 degrees 29 minutes 26 seconds East a distance of 75.00 feet and said centerline there terminating. The side lines of said easement shall be 4It prolonged or shortened to terminate at said east line of the Southeast Quarter of the Southwest Quarter. 5. The parties further desire to set forth the terms and conditions of a maintenance agreement in regard to the easements. EASEMENT For one dollar and other good and valuable consideration the parties hereby agree as follows: 1. Grantor hereby grants and conveys unto Grantee easements described as follows: A 30.00 foot wide sanitary sewer easement over, under, and across the above described property the centerline of said easement is described as follows: Commencing at the northeast corner of the Southeast Quarter of the Southwest Quarter of said Section 25; thence South 00 degrees 15 minutes 20 seconds East, assumed bearing, along the east line of said Southeast Quarter of the Southwest Quarter a 4It ? ~ . distance of 474.34 feet to the point of beginning of the centerline to be described; thence North 77 degrees 29 minutes 26 seconds East a distance of 55.00 feet and said centerline there terminating. The side lines of said easement shall be prolonged or shortened to terminate at said east line of the Southeast Quarter of the Southwest Quarter. and A 70.00 foot wide temporary construction easement over, under, and across the above described property the centerline of said easement is described as follows: Commencing at the northeast corner of the Southeast Quarter of the Southwest Quarter of said Section 25; thence South 00 degrees 15 minutes 20 seconds East, assumed bearing, along the east line of the said Southeast Quarter of the Southwest Quarter a distance of 474.34 feet to the point of beginning of the centerline to be described; thence North 77 degrees 29 minutes 26 seconds East a distance of 75.00 feet and said centerline there terminating. The side lines of said easement shall be prolonged or shortened to terminate at said east line of the Southeast Quarter of the Southwest Quarter. . 2. The temporary construction easement shall terminate on July 31, 2008. Grantee shall restore the temporary construction easement area to a condition reasonably similar to the condition of the property prior to the commencement of construction. 3. The sanitary sewer easement shall be perpetual in nature. 4. Grantee shall be obligated to provide any and all maintenance of the sanitary sewer installations as may be necessary to assure the continuing, proper functioning of the sanitary sewer system. Grantee may go upon the easement area from time to time, and with reasonable notice to the Grantor, for the purpose of inspecting, repairing, replacing, and maintaining the sanitary sewer installations. The maintenance provided herein shall be at the sole cost and expense of the Grantee. 5. Grantee shall indemnify and hold harmless the Grantor from any claims or causes of action that may result from the activities of the Grantee in regard to the installation and maintenance provided under this Easement. . ~ ~ 6. This Easement shall run with the land and be binding upon the parties, their heirs, successors, and assigns. . IN WITNESS WHEREOF, the parties have executed this Easement effective the day and year first above written. Grantor Grantee Bernard Murphy Farms L.P. Economic Development Authority in and for the City of Farmington By: By: Its: Its: By: Its: STATE OF MINNESOTA ) ) ss. ) . COUNTY OF DAKOTA The foregoing was acknowledged before me this September, 2007, by the Bernard Murphy Farms L.P. on behalf of the partnership. day of of STATE OF MINNESOTA ) ) ss. COUNTY OF DAKOTA ) The foregoing was acknowledged September, 2007, by the and Authority in and for the City of before me this and of Economic Farmington. day of Development This instrument was drafted by: Richard K. Hocking, P.A. 10657 165th St W Lakeville MN 55044 (952)432-8129 Attorney ID. No. 45639 . /I . . . Escrow Agreement This Escrow Agreement is by and among Bernard Murphy Farms L.P., a Minnesota limited partnership ("Murphy"), Economic Development Authority in and for the City of Farmington, a public body corporate and politic under the laws of the State of Minnesota ("EDA"), and POR-MKR Real Estate LLC, a Minnesota limited liability company ("POR"). RECITALS 1. POR has entered into a land purchase contract to purchase from EDA Lot 3, Block 1, Farmington Industrial Park 208ili Street Addition ("Lot"). 2. The Lot will be serviced by a sanitary sewer connection that is the subject of a Grant of Easement and Easement Maintenance Agreement ("Easement") dated September 21, 2007, a copy of which is attached hereto. 3. The Easement is in regard to a private sanitary sewer installation that will benefit POR as the owner of the Lot. The closing of the Lot is pending resolution of certain contingencies. The parties do not intend that the Easement take effect unless and until POR closes with EDA on the purchase of the Lot. AGREEMENT In consideration of the mutual covenants and promises herein, the parties agree as follows: 1. The executed Easement shall be retained by the attorney for the EDA and delivered to POR for recording at the closing of the sale between EDA and POR. 2. In the event that closing of the sale has not occurred on or before March 1, 2008, or in any event upon the cancellation of the purchase contract between EDA and POR, the Easement shall be null and void, of no further force and effect, marked as cancelled across the face page of the document, with a copy of the cancelled document delivered by regular U.S. Mail to each party hereto at the address they provide to the attorney for the EDA. IN WITNESS WHEREOF, the parties have executed this Escrow Agreement effective the date and year first above written. . ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON BERNARD MURPHY FARMS L.P. By: By: Its: Its: By: Its: By: Its: Chief Manager . . . . . City of F'arnlington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Assistant SUBJECT: Realtor's Forum DATE: September 24,2007 INTRODUCTION The first annual Farmington REALTOR@ Information Day win be held next month. DISCUSSION The Farmington REALTOR@ Information Day will be held on Thursday, October 11, 2007 in the Farmington High School's Little Theater. City staff had been working with staff from I.S.D. #192, the NDC Chambers and the Southern Twin Cities Association of REALTORS@ (STCAR) to coordinate the presentation. The information is still pending approval for CEU requirements for attendees, but approval should be verified soon. The Southern Twin Cities Association of REALTORS@ is marketing the event and is already receiving registrations. Please note that there is a fee for attendance and all registrations are submitted to STCAR. Attached is the agenda for the event and the STCAR's flyer advertising the forum. Staff is very excited about this opportunity to share information highlighting the many wonderful amenities Farmington has to offer potential residents. ACTION REQUESTED This item is for informational purposes only. Respectfuny,Submitted, \. j" < __..--7 _:..---- -;c:- ,~~--~.-~~ : c...---- ,,,' ..... LiSa Dargis, Administrative Assi~tant Farmington REALTOR@ Information Day presented by the Southern Twin Cities Association of REALTORS@ Hear from City of Farmington leaders about the latest in programs and developments happening, such as: . Growth, Development and Demographic Trends, plus Zoning and Enforcement from City Planner Lee Smick .. Building Code Information from Ken Lewis, Building Official . Transportation and Infrastructure Updates from Kevin Schorzman, Assistant City Engineer . City Services and Utilities News from Lena Larson, Public Works .. Public Safety Information from Police Chief Brian Lindquist and Fire Marshal John Powers " Parks and Recreation Programs and Facilities from Randy Distad, Parks & Recreation Director Plus get information on Dakota County CDA's Homebuyer and Rehabilitation Programs, School District 192 Information, and a Business Community News Update from NDC Chamber of Commerce. Don't miss this unique opportunity to hear directly from city, county and school district officials about the community where you and your clients live and work! Farmington REAL TOR@ Info Day Registration Form Complete the registration form or register online at V,Iww.stcar.com! Name Member ID # I am paying by: STCAR Express Pass Cash Check Visa MC AMEX Discover Account # V-Code Exp Date Name on card Billing Address for card Email Office Phone Submit registration forms by mail to STeAR, 4490 Erin Drive, Eagan, MN 55121, or by fax to 651-452-2911. ~ SOUTHERN TWIN CITIES . 7 ("."", .' .--". ,,; ~. ,.. . . ~ tj ....-'-'\....... ,,_,,(. Q=._..1Cf'S Rev 8/31/07 ..~~ . :::;) -... ~ e I N Q.> :! 0 () o ... (J) !..... :II: ... CO ~ 0 ""- (l) :~; :t:t: E C Ql: ... ... m ::c ::E -+-' E l;;; Cl: () o ::c :z ... C !.- 0 c: 0 +-' U +oJ if) 0 0)0 4- C 0 .- .- E 0 L ...... 0 (l) !.- ...0 CO rn -C LL U E E 4- (f) ro 0 +-' -C '- ~ c U +-' (l) 0 U "0 U C 0 '+- ~z c: (l) - "0 @ C . ~ 0 ~ -I <( W ~ "- 0 0 N . City of Farmington REALTOR@ Information Day Thursday, October 11,2007 8:30-11 :30 a.m. . 8:00-8:30 Check-in and ContunentallBreakfast 8:30-8:45 Welcome and Introduction Mayor Kevan Soderberg 8:45-9:00 Growth. Development & Demographic Trends Zoning & Code Enforcement City Planner Lee Smick 9:00-9:15 Building Code Information Ken Lewis, Building Official 9:15-9:30 Transportation & Infrastructure Kevin Schorzman, Assistant City Engineer 9:30-9:45 City Services/Utilities . Lena Larson, Public Works 9:45-10:00 Public Safety Information Brian Lindquist, Police Chief John Powers, Fire Marshal 10:00-10:15 Break 10:15-10:30 Parks and Recreation Programs & Facilities Randy Distad, Parks & Recreation Director 10: 10-10:45 Homebuyer/Rehabilitation Programs Dakota County CDA Dan Rogness Rachel Smith 10:45-11:15 School District Information Aaron Tinklenberg 11:15-11:30 Business Community News Ruthe Batulis 11 :30 Questions & Answers Period . . e . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Former Liquor Store Building DATE: September 24,2007 INTRODUCTION Broadband Solution's has vacated the former liquor store building space one month prior to the end of their lease with the EDA. DISCUSSION The building that was formerly the downtown liquor store space is again unoccupied. Staff is currently exploring options for use of the space including discussions with the Dakota Valley Arts Council. ACTION REQUESTED This item for informational purposes only. Sincerely, ~w~f&~/I~ Tina Hansmeier, Economic Development Specialist cc: Peter Herlofsky Jr, City Administrator Andrea McDowell-Poehler, City Attorney Lisa Dargis, Administrative Assistant File FarJnington EconoJnic Update Economic Development Staff Report Networking . Peter Herlofsky, Lisa Dargis, Tina Hansmeier and Tony Wippler attended the NDC Chamber Working Lunch on 9/19/07 . Tina Hansmeier attended the Downtown Business Association meeting on 9/04/07 . Lisa Dargis visited Aerospace Fabrication and Materials on 9/13/07 to tour their facility and learn more about their company. Communications . A commercial broker con- tacted staff regarding a prop- erty along Highway 3. He wanted zoning information . and a copy of the new devel- opment review process man- ual. He is considering sev- eral potential uses at this time. . Staff has been contacted regarding the Riste demolition bidding process. The demoli- tion specifications have been completed and abatement bids are being obtained. Inquiries Commercial Space 1 Commercial Land 3 Industrial Space 0 Industrial Land 1 Retail Space 2 ,~etail Land 0 ./ Funding 0 Misc. 3 f=. ~ , - New Look for the Corner of 3rd & Elm When Elm street reopens in October, residents will hardly recognize the building on the northeast corner of Third and Elm Streets. The build- ing. owned by Joe Heinen, has been expanded and the fa9ade has a sophisticated new look that will be a com- pliment to the new Street- scape design along Elm. The make-up of tenants has not changed. Linn's Carpet occupies the portion of the building facing Elm Street and the 1.8.0. #192 New Heights Program is located in the portion facing Third. EI m Street Update The Elm Street reconstruc- tion project is nearing com- pletion-ahead of schedule! A ribbon cutting has been planned to coincide with the Fall Festival & Car Show that will be taking place Downtown on Sep- tember 29th. Pedestrians will be able to get a close up view of the new Elm Street before vehicle traffic resumes. Notices advertis- ing the project's upcoming completion will be pub- lished in the next week. The contractor anticipates the road will be open to vehicle traffic the first week of October. The completion is over a month ahead of schedule! Off to a Great Start Owners Ronda and Clyde Rath are off to a great start in Downtown Farmington. Accord- ing to Ronda, the Lillian's Grand Opening weekend went very well and the owners were impressed by the warm wel- come that they received from other Downtown business own- ers and the City of Farmington l representatives. The store of- fers a unique shopping experi- ence that fits well with the other offerings in the Down- town area. Lillian's promises to be an important addition to the community and because the inventory changes constantly, every month there are many new items to enjoy and keep customers coming back time and time again. "" [ ~J~ r ,. 1 ! L Lillian's Grand Opening Lillian's is located at: 344 third Street The next opportunity to experi- ence Lillian's will be the week- end of October 11th-14th Hours of Operation Lillian's is open the second weekend of each month. Thursday Friday Saturday Sunday 10-8 10-5 10-5 11-4 Page 2 r -- I I Farmington Economic Update . Tbz:r newfatili(), boa,rt,r 108 loading bC!)',r and oller 76,000,rquare feet ~rrpaee. R & L Carriers New Facility is Complete Construction of R & L Carriers' new facility located in Farmington's Indus- trial Park is now complete. The distri- bution company has relocated from Lakeville. In business for over 30 years, R & L has 98 other facilities }-un (act,r about tbe comtmetion project will be po,rted along Elm St. forpede,rtn'an,r to l'iew tbe dC!)' ~( tbe Fe,rtilJal. throughout the country and serves all 50 states. There are also several other new locations being constructed at this time. The Farmington location employs about 75 workers and the company an- ticipates continued growth and potential future expansion. The new site will handle roughly 300 incoming and 300 outgoing shipments per day. With an excellent industry reputation and strong growth potential R & L Carriers is a valuable asset to our community. . Fall Festival & Car Show Tina Hansmeier has been working with members of the Downtown Business Association as they finalize the details for their Fall Festival and Car Show to be held September 29th in Downtown Farmington. Large events are always laden with last minute details but everything seems to be coming along great! The Downtown Business Association is to be com- mended for this, and all of the other events they have organ- ized this summer! Staff would like to encourage everyone to come Downtown on the 29th and help to make this event a success. Commercial Permit Activity Permits by Month .-.' '~~l~ ~,I Jan. Feb. Mar. Apr. May Jill Jul. Aug. Sep. Oct. Nov. Dec. Month . j _Comnercial2007 - Commercial 2006 I Soulhern Dakola Counl., Sportsman Club Troul Ilelease in Vermillion Jliver Arlw-ork Dedil!aHon in Depol Park b., FAC AIlT SHOW begins, Trophics for Top 3 V olc-gcHcrs" FOOD on 3rd Slreel, Mini Donuls, Collon Cand." Cheese Curds, Fries, 'Brals &- 'Burgers! Wolves, Woods &- Wildlife exhfbHon in Ml! Vil!ker Lol 'BSA Pal!k 113 Popl!orn sales la'Lle Tae I{w-on Do DemonslraHons on 3rd Sl. Fal!e PainHng for kids Musil! Mania Oldies DJ Car Show- llegislraHon 'Begins CAll SHOW - sponsorcd '&'9: FARMINGTON Trophies for Top 3 Vole-gcHcrs" (conoco) 8pm-Midnighl Eagles Clu'L, Live 'Land- "TIlA V EVANS 'BAND" and ouldoor beer garden (11 and over) VFW has Live 'Land, fundraiser evenl (11 and over) Sponsored by the Farmington Downtown Business ftssociation ~ 868 Pizza . 8ugaloo's Ice Cream Shoppe . Econofoods . Edward Jones. Edina Realty-Cheryl Retterath · Fan Club nthletics Farmington Eagles · Farmington Independent. Farmington liquors. Farmington Printing · Gerster Jewelers. Great Clips for Hair · Brad Hauge. Heikkila Studios. Janie's Home Team Realtors · Landscape Depot memory Creek · miller Hartwig-Leroy Uan Brunt. Pellicci's nce Hardware · Premier Bank. Seruicios Latinos mena's Treasures Past 6 Present. u.s.n. Tae Kwon Do. Welcome Friends ~.... ~ "'"'!'z:ili1~ ,,-=2'-~'"\. ~ .'1.#- -- ----...~":'~0"7111 .: . ~~~r:.- FIIlST ANNlJAL ..~. ,s. .. SATUIlDA Y, SEPTEMBEIl 13TH, 1001 DOWNTOWN F AIlMINGTON IO:30am 11:30a.m I;1:00-8pm 11pm-3pm I;1pm 1:00pm 1:00-8pm 3:0o-8pm ~:oopm J:OO-8pm Jpm-Midnighl __~o;~') ,~O;~'). __~O;~'). ,It llt.II ~" ,It ~It '" ",.~'" '''~,~ ,,~ ,''i "1 ,II "1 ~" I."-..~J' ~'J ,,~ ~'J ", .~~..,. i'i1 Ii'il __~O;~'). Ii'il i'i'i ;'i1 ~" ,,~ i'~ 'I' ,II 'I' 'I' '" ", .~,.. ,..~u, "ill ,,, ", .". ,'" , ,.". lI' "1 lI' I~ "1 ,It ,It ," ,,~ ,..1 I" 'f'~ '.. ~.. ", ". ~"'1'J' ~" ,,~ ~'-..~J' "''1''\11'' ,.1"4)\ \\~~" i\~\\\~ t'.,~~'s~ . ~ &- ~pple Ford Mereu LAKEVILL~~ APPLE FORD MERCURY . . . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Assistant SUBJECT: NDC Chambers of Commerce Presentation DATE: September 24, 2007 INTRODUCTION Staff attended the September 19th, Northern Dakota County Chambers of Commerce Working Lunch featuring an economic development panel discussion. DISCUSSION On the 3rd Wednesday of each month, the NDC Chambers of Commerce hosts a Working Lunch at the Farmington Eagles Club. The meeting starts at 11:30 a.m. and lasts until 1:00 p.m. This month's meeting featured a three member panel that provided information on economic development from different perspectives. Bill Coleman from Dakota Future highlighted some of the differences between community development and economic development. He also discussed the need for communities to use their strengths and unique qualities to attract business. He emphasized the impact of forming strong economic development partnerships to achieve success regionally. Patty Neuman from Hammel, Green and Abrahamson discussed the importance of creating a business friendly environment and how being able to respond to business inquiries in an expeditious and professional manner can make the critical difference. Jack Matasosky from APPRO Development presented case studies on developing long term economic development strategies from the private sector perspective. He also pointed out that economic development is a long range planning process and successes do not happen overnight. City Staff who attended the luncheon felt that the information provided was very useful and comprehensive. ACTION REQUESTED This item is for informational purposes only. . \ Respectfully Submitted, \ \ .... /'\. \~-, .. ~.. ~ ;.-.:.-"~--~ " '...." -:::::;< \ ~''-,. ~ "'''---..'--.-<:<:-C. . \.. . i",- j" \ /...-.... I i'.') (- :jLisa Dargis, Administrative'Assistant . . . . . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.fannington.mn.us September 19, 2007 Bill Coleman Dakota Future P.O. Box 240874 Apple Valley, MN 55124 Dear Bill, I just wanted to thank you for your participation in the Economic Development panel presentation at today's NDC Chamber Luncheon. The discussion was both relevant and timely. As we work toward creating economic development strategies that will provide the basis for long term growth and sustainability, it is important to share information and form partnerships with the stakeholders in our region. I was very pleased to see members of our community come together to learn more about economic development and continue to share ideas. Thank you again for sharing your knowledge and experience. s~Cer~IY, . / / r-:' ~, J//L~) ~j '-'-'-- f/-/ // Peter He9.ofsky ':J~. City Adgiinistrator , Cc: City Council EDA Ruthe Batulis City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us . September 19, 2007 Patricia Neuman Hammel, Green and Abrahamson, Inc. 701 Washington Ave. North Minneapolis, MN 55401 Dear Patricia, I just wanted to thank you for your participation in the Economic Development panel presentation at today's NDC Chamber Luncheon. The discussion was both relevant and timely. As we work toward creating economic development strategies that will provide the basis for long term growth and sustainability, it is important to share information and form partnerships with the stakeholders in our region. I was very pleased to see members of our community come together to learn more about economic development and continue to share ideas. Thank you again for sharing your knowledge and experience. . ...Sincerely. '.. .. i tf; 6/ vC).\ I /~/1 .--/ / /, /' / . // /, .... , II~. /-iL Peter Her-0fSky Jr. 7 City Administrator Cc: City Council EDA Ruthe Batulis . . . . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.fannington.mn.us September 19, 2007 Jack Matasosky APPRO Development 21476 Grenada Ave. Lakeville, MN 55044 Dear Jack, I just wanted to thank you for your participation in the Economic Development panel presentation at today's NDC Chamber Luncheon. The discussion was both relevant and timely. As we work toward creating economic development strategies that will provide the basis for long term growth and sustainability, it is important to share information and form partnerships with the stakeholders in our region. I was very pleased to see members of our community come together to learn more about economic development and continue to share ideas. Thank you again for sharing your knowledge and experience. (~c;e[eIY'_) /( /J ~--.~ / ///./ ~-;-;~/J~_.,J//;~ Peter Herlofsky Jr. ?-//( City Ad~istrator Cc: City Council EDA Ruthe Batulis EDA Structure Meeting: July 23, 2007 EDA Member Streilllgtlbts ~ Commercial lending officer: Understands world of economics ~ Proj ect Manager ~ Farm Background . Former City Council Member . Live & Work in the City . Experience on the HRA . Public Finance Background . Independent Contractor . Attorney . Public Administrator TOP 2 PRIORITIES 1. Create Commercial & Industrial Tax Base 2. Job Creation 3. Encourage Further ED in City 4. Maintain Current Development 5. Economic Development 6. Facilitate Business Growth 7. Put Economic Development Plan in place 8. More Downtown Businesses 9. Promote Business Growth 10. Get Blighted land back on Tax Base 11. Facilitate Redevelopment 12. Preservation . "Things we've done well" . City Center o "Facilitators & go-between" o Helped assemble land . I-Park o Land Acquisition o Staff fields inquiry . Negotiate Development agreements . Ci ty Hall o Acquire Land . Town Homes o Redevelopment o Elimination of contaminationlblight . Contract Compliance . Becoming EDA . Spruce Street Bridge o Grant . August 27, 2007 . It us 21HS and. everything Y01Ul reaHistkaHy could want flOr Farmington is nlOw here. What is it? What does it Hook Hike? ~ Northfield is a Farmington Bedroom community ~ There is a $500,000 balance in the Public Private Development Corporation )>> There is office and retail development up and down Highway 50 )>> Township Annexation is Complete )>> The school boundary matches the City )>> There is a destination down-town with specialty retail );> There is a hospitality/convention center with two hotels );> There are higher paying jobs );> Green Corridor Remains );> Big Box Stores giving more options )>> VRC Completed - Life Style Center )>> More Head-of-Household Jobs );> Areas linked with trails and walkways )>> In-fill development has occurred down town );> Events are coordinated between organizations );> There is a community center );> The river is used as an asset )>> Economic development is focused on all areas )>> There are mass transit options )>> There are college classes offered and a 2 or 4 year college );> Golf Course );> There is a designated Industrial Park )>> Highway 3 is developed )>> Farmington mall is redeveloped into offices );> More mixed housing )>> The development process at City Hall is fast-tracked )>> History is reflected in new development ~ Some roads now pass over the rails ~ Residents are working in town ~ There are offices located at Highway 3 & 50 Economic Development Vision of Farmington . . . . VISION ST A TEMENT(S) Farmington is a vibrant community comprised of an integrated network of commercial, industrial, educational and hospitality opportunities surrounded by natural esthetics. Farmington is a community that combines abundant natural resources with an established down - town and a sense of community. The City otTers a wide variety of commercial/industrial opportunities with a strong employment base and housing options. Residents enjoy a high quality oflife with a strong transportation system, diverse services and unique shopping opportunities. Famlington is a vibrant, diverse, growing, economically sustained community. r,~ \J Farmington is a vibrant, high quality oflife~hat combines abundant natural resources and sense of c,<Lmmunity with an established Down Town. The City ~r~ diverse, growing, economically sustained community with excellent schools, quality jobs, unique shopping, and housing options. . . . Page 1 of 1 Lisa Dargis From: Tina Hansmeier Sent: Monday, September 24,20074:39 PM To: Peter Herlofsky Cc: Lisa Dargis; Tony Wippler; Lee Smick Subject: FW: Peterson Property I just received the email below from Matt Alexander earlier today. It sounds like things are progressing, but, no announcements just yet. Tina Hansmeier Economic Development Specialist City of Farmington 651-463-1821 From: Matt Alexander [mailto:malexander@karealty.com] Sent: Monday, September 24,20073:26 PM To: Tina Hansmeier Subject: Peterson Property Tina, I apologize for not getting back to you sooner following your voice mail last week. We are moving ahead with our tenant negotiations, however at this time we still cannot announce the deal. It will be coming soon, though.. Matt S. Alexander Director of Real Estate Development Kraus-Anderson Realty Company 4210 West Old Shakopee Road Bloomington, MN 55437 D: 952-948-9401 F: 952-881-8114 malexander@karealty.com www.krausanderson.com 9/24/2007