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Home My WebLink About02.27.06 EDA Packet - with notes ~ City of Farmington 325 Oak Street .armington, MN 55024 A Proud Past - A Promising Future Committed to Providing High Quality, Timely and Responsive Service to All of our Customers . . AGENDA ECONONUCDEVELOPMENTAUTHORITY February 27, 2006 - 7:00 p.m. City Council Chambers, City Hall 1. Call Meeting to Order Ii" Approve Agenda ~ Consent Agenda a. Bills b. January 9, 2006 Minutes .v Public Hearings (None) s! New Business (Procedural Matters) /~ Adoption of By-Laws (L'w~ r P evu-O Although a "working draft" of by-laws for the new EOA was reviewed, discussed and preliminarily approved by the BRA, the members of the BRA believed that the by-laws should be reviewed and adopted by the members of the EDA at the EDA's first meeting. A copy of the proposed by-laws has been enclosed. If they appear to be acceptable, a motion to approved and adopt the by-laws would be in order. / Election ofOjJicers t h cu;~ - \" 0 d~ \j \ U;-e1iGr? CAMJ Section 1, subd. 3 of the EOA By-Laws provides that at the regular EOA meeting in February of each year, the EOA shall choose a Chairperson and Vice-Chairperson. In the past, the HRA's procedme in this regard typically involved a nomination for Chairperson, a second, and a vote, followed by a similar process for the Vice-Chairperson. / Official Newspaper Section 1, subd. 3 of the EOA By-Laws provides that at the regular EDA meeting in February of each year, the EDA shall designate the official newspaper. A motion to designate the Farmington Independent as the official newspaper would be in order. peeting Schedule Section 1, subd. 3 of the EOA By-Laws provides that at the regular EDA meeting in February of each year, the EDA shall establish a meeting schedule for the year. As a courtesy, the City's engineering firm (Bonestroo, Rosene, Anderlik & Associates) prepares a meeting schedule in January of each year, based on whatever scheduling information is available at that time. A copy of the 2006 schedule has been enclosed for your review. The existence of such a documeQ,t qoes not p;rohibit th,.e EDA from modifying w its own meeting schedule if it wishes to do so. At the January HRA meeting, a request was made to review the initial 2006 meeting schedule so that the EDA members could jointly determine an acceptabele . date for the December 2006 meeting. The 4th Monday of December falls on a holiday (Christmas) and the following day (December 26) is a City holiday. City staff would like to determine whether Wednesday, December 27 would be an acceptable date for the December EDA meeting. !fnot, an alternate date should be selected. When the issue involving the December meeting date has been resolved, a motion to adopt the 2006 meeting schedule would be in order. ,~ th )')...o"tn P o-ul -~locAc1 6. Unfinished Business a. Downtown Area -- Mc Vicker Lot A draft of a proposed Contract for Private Development has been in the possession of Four Star Land Development since September or October of2005. (For the EDA members who were not members of the HRA, I have enclosed copies of the elevations that the HRA had previously received from Four Star regarding the building that Four Star had proposed to construct on the McVicker lot.) I have been in periodic contact with Mr. David May of Four Star during the past few months regarding the BRA's desire to move forward with the finalization of the Contract. During that time, he consistently indicated his continuing interest in doing the project that his company had proposed. During January of this year he indicated that he needed a little additional time to deal with some personnel changes and internal restructuring within his company. On February 15 he left me a voicemail message in which he indicated that he has not yet been able to "get where he needs to be" and that he is "not in a position to say that he can proceed" at this time. I have left some messages for him since then, but I have not yet had an opportunity to speak with him. If or when I do, I will attempt to determine what the primary impedime. to progress is, and what (if anything) City staff and/or the EDA can do to assist. In the meantime, however, the EDA should identify a course of action that will be followed if it is determined that Four Star will definitely not be able or willing to complete the project that it had proposed. One option would be to initiate a new RFP [Request for Proposals] process, to see what types ofprojects might be proposed for the McVicker lot. The two primary drawbacks to this approach are that the RFP process is time-consuming and inherently competitive (i.e., "winllose"). Although any governmental entity (City, EDA, HRA, etc.) that initiates an RFP process can theoretically reject any or all of the proposals that it receives, necessity or political expediency sometimes results in a "take what you can get" outcome. Another option would be to authorize staff to initiate direct contacts with reputable developers to determine whether any of them would be interested in doing a project similar to the one that Four Star had proposed. This approach would reflect a "go after what you want" attitude rather than the ''take what you can get" philosophy referred to above, and would theoretically take less time to pursue or investigate. The basic elements of the Four Star proposal (mixed-use building with ground floor commercial and upper level residential, architectural elements similar to nearby "historic" buildings, pedestrian-friendly and attractive walkway on the south side of the property, etc.), which were very favorably received by HRA members and City staff, could be duplicated by virtually any developer or contractor. There are at least four well-known developers who have completed successful projects in downtown Farmington or in the Industrial Park who could potentially be interested in redeveloping the ~~~ . The staff recommendation is that the EDA authorize or direct City staff to initiate contacts with developers (who have substantial commercial development experience) regarding the potential availability of the McVicker lot as redevelopment site for a new mixed-use building. . / Industrial Park -- Aerospace Fabrication and Materials EDA members who participated in the tour and/or ribbon-cutting at the AFM facility are encouraged to share their thoughts and observations regarding this new addition to the Industrial Park. As many of you know, AFM relocated its entire operation from the Lakeville Industrial Park to Farmington. r' ~ Industrial Park - R & L Trucldng ~ Construction plans have been reviewed by the Engineering Division and the Building Inspections _ Q ~ 0/' Divisio~, and .c~~struction pl~ comment letters have been sent to th~ d~veloper. The Buil~~ . f';!!J . 'tf InspectIons DIVISIon has receIved a response from the developer and IS m the process of revlewmg It. (('tJ:'jJ _~ome of the initial site grading was completed in the fall of2005, and we anticipate that the remaining cP\ K'~~~ -grading will be completed when the frost comes out, followed immediately by the actual construction of V the new truck terminal. R & L's project is also a relocation from the Lakeville Industrial Pad<. ~ Downtown Area - Exchange Bank Building and Larson Building . We have still not yet received building permit applications for the fire escape, the sprinkler system or the remodeling of the upper level of the Exchange Bank building. As previously indicated, staff will devote additional attention to attempting to expediting the Exchange Bank renovations as soon as the EDA has obtained title to the Riste Building (see "e" below). e. Downtown Area - Riste Building As part of the "due diligence" portion of staff's preparations for the purchase of the Riste Building, we arranged to have the property surveyed. The survey disclosed the existed of some "boundary line" issues (gaps and overlaps, primarily) regarding the parcels in question. The City Attorney and City staff concluded that some of these issues were minor enough to disregard, and that those that could not be disregarded could be resolved by splitting off the "flag" portion of the Riste building parcel (the part that extends to the east - behind the Larson building -- and overlaps the west line of the Gerster building). Mr. Brown was not opposed to this lot split. It makes more sense for the property directly behind the Larson building to be part of the Larson building's parcel, rather than part of any adjoining parcel. . However, the proposed lot split raised another issue. The Riste building lot is already "non- conforming," in the sense that it's smaller than the minimum lot size specified in the City Code. Splitting off a portion of the lot obviously reduces the size of the remaining portion, which technically increases (or worsens) its nonconformity. A nonconformity cannot typically be increased unless a variance is granted. Accordingly, City staff assisted Mr. Brown in applying for a variance, which was considered and approved by the Planning Commission at its meeting on February 14, 2006 (see attached Planning Commission memo for more information). Incidentally, almost all of the lots or parcels in Farmington's "historic" downtown area are smaller than the minimum lot size specified in the City Code, so City staff members are researching the possibility of amending the Code by reducing the minimum lot size to a more realistic number. Now that the required variance has been granted, the administrative steps necessary to effectuate the lot split can be completed. Those steps will probably be completed during the wyek,ofFebmary 27. In anticipation of the completion of that process, the City Attorney has indicated that the previously signed Purchase Agreement should be amended to reflect the correct legal description fur the land (the ''post-IO.t split" parcel) that the EDA will now be purchasing. A draft of the proposed First Amendment to Real Land Purchase Agreement has been enclosed for your review. The legal descriptions referred to on Exhibit A-I have not yet been finalized, but the City Attorney anticipates that the surveyor will have that information available on or by Febmary 27 or 28. The City Attorney believes that the closing can take place soon thereafter, so the enclosed First Amendment to Re ~l Ld f!urchase Agreement reflects a March 17 deadline for the completion of the transaction. I~ tJ8J. \0 ~ ttr The staff recommendation is that the EDA authorize and direct the Executive Director and the Chairperson of the EDA to execute the proposed First Amendment to Real Land Purchase Agreement, with the understanding that the executed copy will include the full and correct legal descriptions for any affected parcels of property. ~ JIT Powdercoating The grading and construction plans for the expansion of JIT are still being reviewed by the Engineering Division and the Building Inspections Division. Thus far, no insurmountable problems or obstacles have been identified. Everyone seems to be anticipating that grading and excavating for the expansion will begin around April 1. I have enclosed copies of some recent e-mails about the issue involving trailer parking and/or storage on Eaton Avenue and 208th Street. Although City staff members would prefer to see the trailers removed from the streets in question immediately, we understand the points that Mr. Milner has made regarding. timing and cost issues. Our primary objective is to see that ongoing and continuous progress is made toward a reasonably prompt resolution of this issue. Mr. Milner and his contractor have indicated their belief that the expansion project can be started by April!. A subcontractor has indicated that it would take 3-6 days to create a temporary parking lot. It therefore does not seem unreasonable to expect that Mr. Milner should be in a position to get the trailers off the road by April 15 at the latest. If Mr. Milner t.S av .lable to attend Monday night's EDA meeting, he can indicate at that time whether the expectation in estion can be met. . Vacant Lot at lh Street and Main Street Before the house located at 315 Elm Street could be moved to the vacant lot at the southeast comer of 4th & Main, a Special Exception/Conditional Use Permit [CUP] needed to be issued by the City. A public hearing on the CUP was held at the Planning Commission meeting on December 13, at which time the Commission approved the CUP. An initial draft of a proposed Contract for Private Development between Mr. Heinen and the HRA was sent to Mr. Heinen in December. The City Attorney subsequently made some revisions (added some indemnification provisions, changed all of the HRA references to EDA, etc.), and the revised document was sent to Mr. Heinen in January for his review. A few remaining blanks in the document (a Letter of Credit provision in Section 3.3, a projected completion date in Section 4.3, and some security provisions in Section 4.5) were recently discussed and agreed upon. It is my understanding that the Contract is now in a form that is acceptable to Mr. Heinen and the City Attorney. A "red-lined" version of the contr. has been enclosed for your review. , . . . The staff recommendation is that the EDA authorize and direct the Executive Director and the Chairperson of the EDA to execute the Contract for Private Development. City staff and Mr. Heinen will then be able to move forward with our efforts to get Dakota County to specify the minimum net sale proceeds that Dakota County will require the EDA to pay to Dakota County following the EDA's sale of the property to Mr. Heinen (see Section 3.1 of the Contract). /' New Business (Non-Procedural) ~ 305 3rd Street-Former Liquor Store Building At a prior HRA meeting, City staff presented a recommendation that ownership of the former City liquor store (on Elm Street) be transferred from the City to the EDA, so that the EDA can then (a) take responsibility for marketing the property to prospective tenants and (b) subsequently enter into any leases or contracts that may be required. The HRA indicated its support of this recommendation. A copy of the Quit Claim Deed that would be needed to effectuate this transfer has been enclosed. If the EDA shares the HRA's views regarding this matter, a motion to recommend that the City Council approve the proposed transfer of ownership would be in order. ~ Economic Development Plan See enclosed staff memo, with attachments. ~/ Metropolitan Council - Affordable Housing Needs See enclosed letter from the Metropolitan Council dated February 17, 2006 regarding future or projected affordable housing needs in Dakota County. ,~ Dakota Future - 2006 Dakota County Economic Summit See enclosed information regarding the 2006 Dakota County Economic Summit, which will be held at the Rosemount Community Center on March 23,2006. Please contact Tina Schwanz at 651-463-1821 if you are interested in attending. ~ Partners in Progress 2006 See enclosed information regarding Dakota Electric Association's 2006 "Partners in Progress" event, which will be held at the Royal Cliffbanquet center on March 8, 2006. Please contact Tina Schwanz at 651-463-1821 ASAP if you are interested in attending (February 27 RSVP deadline). 7. Executive Director's Report A verbal update may be provided at the meeting regarding ongoing or anticipated matters involving housing and/or economic development (other than those referred to above). 8. Adjourn . . . 1 I DATE ~ I 12/31/2005 12/31/2005 01/31/2006 01/31/2006 02/03/2006 02/10/2006 02/15/2006 INVOICE LIST FOR HRA MEETING FEBRUARY 27,2006 AT 7:00 p.m. DESCRIPTION CAMPBELL KNUTSON CAMPBELL KNUTSON CAMPBELL KNUTSON CAMPBELL KNUTSON XCEL ENERGY - 142 ELM (SIGN) EIDE BAILLY - 2005 AUDIT DEMLAR H SCHWANZ LAND SURVEYORS Elm Park Cleanup Invoices Page 1 I t $ $ $ $ $ $ $ $ AMOUNT I 1,375.00 631.00 533.00 639.00 7.71 1,208.48 2,000.00 $ 6.394.19 $ lAPPROVAq CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax 1.0. #41-1562130 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 . ~~~~ ~ \ 'l:P Page: 1 December 31, 2005 Account # 1852G City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 ~~9v \.2" . LlO?:. - <11. CD ;Z~'uO. v' - 9 c:T"'. (',() {005,(...Y03 - I ~'6v'/ 10 10 r0Lio3 '- 778,'0 1030. It;,c{ 0.3'- 3.32.. CO PAYMEN~tlD,~~f~tN~E ~q~(D /050, (;403 - ~4l, 0.....-;/ -5,050.31 W90.~ ~b !\.tWII ~ - 4(J.;11, 00 ~ 1000. 150t5 IDD.ltl~ '.ld 5sQ,i)C>-7/DO, /t;yo3. I~ _ .5~.oO - \o?>o,<.MO~ -5537.00 $5,408.00 . cs, 1-40:: --tL~'- - \ 2;:). ro- (O,~.It-' ~~OO. &L((5 $2,009.50 SUMMARY STATEMENT CREDITS FEES EXPENSES PREVIOUS BALANCE 1852-000 RE: GENERAL LEGAL SERVICES (RETAINER) SERVICES RENDERED TO DATE: 5,050.31 3,990.50 0.00 0.00 1852-001 RE: GENERAL LEGAL SERVICES (NON-RETAINER) SERVICES RENDERED TO DATE: 637.00 5,408.00 0.00 0.00 1852-002 RE: PASS THROUGH LEGAL SERVICES SERVICES RENDERED TO DATE: 405.00 2,009.50 0.00 0.00 . -405.00 1852-003 RE: FORFEITURES (NON-RETAINER) SERVICES RENDERED TO DATE: 426.87 156.00 0.00 0.00 2/DO.{j-fQ3 $156.00 -426.87 1852-013 RE: EDA GENERAL MATTERS (NON-RETAINER) SERVICES RENDERED TO DATE: 403.00 1,375.00 0.00 0.00 1852-019 RE: ASH STREET POND PROJECT SERVICES RENDERED TO DATE: 0.00 39.00 0.00 0.00 20 00. /.p40.3 $1,375.00 -403.00 4l0S ,Gl{Q3 $39.00 0.00 1852-024 RE: ASH STREET EASEMENTS SERVICES RENDERED TO DATE: 2,637.66 559.75 57.00 0.00 410S .~y@ $616.75 -2,637.66 . . CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax 1.0. #41-1562130 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 Page: 1 December 31, 2005 Account # 1852-013G 63 RE: EDA GENERAL MATTERS (NON-RETAINER) SERVICES RENDERED TO DATE: HOURS 12/01/2005 AMP Telephone call to Kevin Carroll re: development contract. 0.20 26.00 12/05/2005 . AMP United Properties - review release and settlement; e-mail to Mary Taylor; e-mail from Kevin Carroll; e-mail from Mary; review revisions to agreement; e-mail to Mary. 1.10 143.00 12/06/2005 AMP Contract for Private Development (Joe Heinen) - e-mail from Kevin Carroll; review reports; telephone call from Kevin; draft agreement; e-mail to Kevin. 2.80 364.00 AMP United Properties - e-mail from Mary Taylor; e-mail to Kevin Carroll. 0.20 26.00 12/07/2005 AMP United Properties - e-mail from Mary. 0.10 13.00 AMP Private Development Contract (Heinen) - review research re: revision to agreement. 0.30 39.00 CRM Research regarding recommended language for environmental liability release and indemnification. 1.50 127.50 12/08/2005 CJH United Properties - Forward to Tina Schwanz original executed Settlement Agreement. 0.30 25.50 . AMP United Properties - e-mails to and from Kevin Carroll; review and revise letter. 0.50 65.00 Page: 2 City of Farmington December 31,2005 Account # 1852-013G . 63 RE: EDA GENERAL MATTERS (NON-RETAINER) SERVICES RENDERED TO DATE: HOURS 12/09/2005 AMP Telephone call from Kevin Carroll re: agenda items. 0.30 39.00 12/12/2005 AMP E-mails from Kevin Carroll; telephone calls from Kevin; review agenda packet and revised agreement; attend meeting. 3.10 403.00 12/15/2005 AMP E-mails from and to Tina re: signatories. 0.10 13.00 12/16/2005 AMP United Properties - e-mails from and to Tina. 0.20 26.00 12/19/2005 AMP Telephone call from Kevin Carroll re: settlement; review gap issue. 0.50 65.00 . - AMOUNT DUE 11.20 1,375.00 TOTAL CURRENT WORK 1,375.00 PREVIOUS BALANCE $403.00 12/27/2005 Payment - thank you -403.00 TOTAL AMOUNT DUE $1,375.00 . Amounts due over 30 days will be subject to a finance charge of .5% per month (or an annual rate of 6%). Minimum charge - 50 cents. . . . City of Farmington PREVIOUS BALANCE FEES EXPENSES CREDITS 1852-026 RE: EQB AIRLAKE TO EMPIRE POWER LINE APPEAL (NON-RETAINER) SERVICES RENDERED TO DATE: 96.00 1,860.00 146.76 0.00 1852-029 RE: EDA/2004 REAL ESTATE COMPANY SERVICES RENDERED TO DATE: 261.00 617.00 14.00 0.00 1852-999 RE: PROSECUTION MATTERS SERVICES RENDERED TO DATE: 7,369.22 4,324.50 73.16 0.00 17,286.06 20,339.25 290.92 0.00 Page: 2 December 31, 2005 Account # 1852G PAYMENTS -96.00 -261.00 -7,369.22 -17,286.06 Amounts due over 30 days will be subject to a finance charge of .5% per month (or an annual rate of 6%). Minimum charge - 50 cents. BALANCE I bdJ I \'3JS $2,006.76 1.;:JoOl fJ1 (l3 $631.00 \ 1>50 I VJ~D3 $4,397.66 $20,630.17 . CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax 1.0. #41-1562130 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 Page: 1 December 31, 2005 Account # 1852-029G 7 RE: EDA/2004REAL ESTATE COMPANY SERVICES RENDERED TO DATE: HOURS 12/01/2005 AMP Telephone call from Kevin Carroll. 0.20 26.00 12/06/2005 . AS Draft closing list. 0.40 48.00 12/14/2005 CJH Check Secretary of State - Utilicorp United Inc.; telephone conference with Aquila Inc.; telephone message to Aquila re: release of easement; correspondence to Hosmer Brown. 0.50 42.50 AMP Review title work; telephone calls from Kevin Carroll; letter to Hosmer Brown. 1.20 156.00 12/21/2005 CJH Telephone conference with Marvin Friedrich at Aquila in Kansas City; review file; fax to Friedrich a copy of title policy and warranty deed; Dakota County website search; e-mail to Dakota County Abstract re: copy of pipeline easement and assignment. 0.60 51.00 CJH Review faxed documents from Dakota County Abstract; fax copy of 1934 Easement and 1985 Assignment to Marvin Freidrich at Aquila. 0.30 25.50 12/27/2005 CJH Telephone message to Deb Dura at Aquila re: release of easement. 0.10 8.50 . 12/28/2005 AMP Telephone call from Kevin Carroll; review survey; draft City of Farmington RE: EDA/2004 REAL ESTATE COMPANY SERVICES RENDERED TO DATE: letter to Mr. Brown. 12/29/2005 CJH Telephone conference with Deb Dura at Aquila re: release of easements; telephone conference with Jim Anderson at Dakota County Abstract Company; fax to Jim Anderson a copy of letter to Hosmer Brown. AMOUNT DUE 12/14/2005 Minnesota Secretary of State - Business Organization Inquiry. 12/30/2005 Dakota County Abstract & Title - copies. TOTAL DISBURSEMENTS TOTAL CURRENT WORK PREVIOUS BALANCE 12/27/2005 Payment - thank you TOTAL AMOUNT DUE Page: 2 December 31, 2005 Account # 1852-0298 7 . HOURS 1.80 234.00 0.30 25.50 - 5.40 617.00 4.00 10.00 - 14.00 631.00 $261.00 -261.00 . $631.00 . Amounts due over 30 days will be subject to a finance charge of .5% per month (or an annual rate of 6%). Minimum charge - 50 cents. . ':),~ ~ \~~ CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax 1.0. #41-1562130 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 2.\2~ SUMMARY STATEMENT '1CXJ5. 0103 =- 2.CfCjI, I q 1010, (;,403 :: 1 / 71. 'it.? 1030, 0l(O 3 == 110",22 I07010L(03~ 33gl~ 2502 ,t?401 .=:. I ~(C, g 0 0302,0101 = 'l2..\,q.3 -I09J.~')L/O:':;; 3S,DL-{ leA!5' 0402:>. ~ 103,5,3- . v,2.2,. [0 Page: 1 January 31 , 2006 Account # 1852G \t~~ PREVIOUS BALANCE FEES EXPENSES CREDITS PAYMENTS. BALANCE 1852-000 RE: GENERAL LEGAL SERVICES (RETAINER) SERVICES RENDERED TO DATE: 3,990.50 6,000.00 227.10 0.00 -3,990.50 $6,227.10 . 1030,0403 40, s:J 1852-001 RE: GENERAL LEGAL SERVICES (NON-RETAINER) ,loo,~.l.../03 64 01)-~ SERVICES RENDERED TO DATE: lo5D ,Wo:j BI.'oO - . 5,408.00 5,886.00 0.00 0.00 -5,408.00 0 $~886.00 I P/C(2 fIOO.<cHC1 6710,9). 'S 1852-002 RE: PASS THROUGH LEGAL SERVICES L/(di), 1J/03 SERVICES RENDERED TO DATE: 2,009.50 1,885.50 0.00 0.00 -2,009.50 $1,885.50 1852-003 RE: FORFEITURES (NON-RETAINER) 2too,lp.-{o3 SERVICES RENDERED TO DATE: 156.00 189.50 0.00 0.00 -156.00 $189.50 1852-013 RE: EDA GENERAL MATTERS (NON-RETAINER) LrdJ I \f1 02> SERVICES RENDERED TO DATE: 1,375.00 513.00 20.00 0.00 -1,375.00 $533.00 1852-019 RE: ASH STREET POND PROJECT l}1 05, t}jQ3 SERVICES RENDERED TO DATE: 39.00 220.50 0.00 0.00 -39.00 $220.50 1852-024 RE: ASH STREET EASEMENTS 41c6I~YO~ SERVICES RENDERED TO DATE: 616.75 171.00 8.38 0.00 -616.75 $179.38 . CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax 1.0. #41-1562130 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 RE: EDA GENERAL MATTERS (NON-RETAINER) SERVICES RENDERED TO DATE: 01/03/2006 AMP 01/05/2006 AMP . 01/06/2006 AMP 01/09/2006 AMP 01/24/2006 AMP 01/31/2006 AMP Telephone call from Kevin Carroll. Contract for Private Development/Building Move - telephone call from Tina; revise development contract; review legal description. Telephone call from Kevin Carroll; review revised development contract; telephone calls to Kevin and Tina; e-mail from Mary Taylor; e-mails to and from Kevin. E-mail from Tina; e-mail to Mary Taylor. E-mail from Kevin Carroll; prepare deed. , Review deed and resolution for liquor store sale from City to EDA; e-mail to Kevin Carroll. AMOUNT DUE 01/31/2006 Dakota County Abstract & Title - last record deed (201 4th Street). . __....._.IOT~L_PJ~BlJ~~~~~.NTS. . TOTAL CURRENT WORK PREVIOUS BALANCE Page: 1 January 31, 2006 Account # 1852-013G 64 HOURS 0.20 1.90 0.90 0.10 0.30 0.40 3.80 27.00 256.50 121.50 13.50 40.50 54.00 513.00 20.00 20.00 533.00 $1,375.00 Page: 2 January 31, 2006 Account # 1852-013G 64 RE: EDA GENERAL MATTERS (NON-RETAINER) SERVICES RENDERED TO DATE: 01/30/2006 Payment - thank you -1,375.00 . . TOTAL AMOUNT DUE $533.00 Amounts due over 30 days will be subject to a finance charge of .5% per month (or an annual rate of 6%). Minimum charge - 50 cents. Page: 2 January 31, 2006 Account # 1852G PREVIOUS BALANCE FEES EXPENSES CREDITS PAYMENTS BALANCE 1852-025 RE: LALANI CRIMINAL APPEAL I050.(f(rO SERVICES RENDERED TO DATE: 0.00 92.50 0.00 0.00 0.00 $92.50 1852-026 RE: EQB AIRLAKE TO EMPIRE POWER LINE APPEAL (NON-RETAINER) SERVICES RENDERED TO DATE: $0.00 / 2,006.76 0.00 0.00 0.00 -2,006.76 1852-029 RE: EDA/2004 REAL ESTATE COMPANY 2oeO I luLl 03> SERVICES RENDERED TO DATE: 631.00 639.00 0.00 0.00 -631.00 $639.00 1852-999 RE: PROSECUTION MA TIERS lo.r;D, ~1D6 SERVICES RENDERED TO DATE: 4,397.66 6,000.00 8.47 0.00 -4,397.66 $6,008.47 . 20,630.17 21,597.00 263.95 0.00 -20,630.17 $21,860.95 . Amounts due over 30 days will be subject to a finance charge of .5% per month (or an annual rate of 6%). Minimum charge - 50 cents. CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax 1.0. #41-1562130 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 Page: 1 January 31, 2006 Account # 1852-029G 8 RE: EDA/2004 REAL ESTATE COMPANY SERVICES RENDERED TO DATE: HOURS 01/03/2006 AMP Telephone call from Kevin Carroll. 0.20 27.00 01/04/2006 . .AMP Telephone call from Jim Anderson with Dakota County Abstract re: status. 0.20 27.00 01/11/2006 CJH Telephone message to Deb Dura at Aquila re: release of. easement. 0.10 9.00 01/16/2006 CJH Review maps from Aquila in relation to legal description of subject property. 0.40 36.00 01/18/2006 AMP Review lot split and lot combination issue, zoning ordinance and title issues. 1.20 162.00 01/19/2006 CJH E-mail from AMP; telephone conference with County; e-mail to AMP. 0.30 27.00 01/24/2006 AMP Telephone call from Hosmer Brown; e-mail from Kevin Carroll. 0.20 27.00 0112512006 . AMP Telephone call from Hosmer Brown; telephone call to Kevin Carroll; e-mail from Kevin; e-mails from and to Kevin. 0.50 67.50 City of Farmington Page: 2 January 31, 2006 Account # 1852-029G 8 RE: EDA/2004 REAL ESTATE COMPANY SERVICES RENDERED TO DATE: HOURS 01/27/2006 AMP Telephone call from Del Schwanz; telephone calls from Kevin Carroll; telephone call from Lee Smick re: lot size; telephone calls from Lee Smick and Tony Wippler; review zoning ordinance; e-mail from Lee Smick; telephone calls to Lee Smick and Kevin Carroll. 1.20 162.00 01/30/2006 AMP Telephone call from Lee Smick; telephone call from Lee Smick; review notice requirements. 01/30/2006 Payment - thank you 0.40 54.00 0.30 40.50 - 5.00 639.00 639.00 $631.00 -631.00 $639.00 AMP Telephone calls from and to Hosmer Brown; telephone calls from and to Kevin Carroll. AMOUNT DUE TOTAL CURRENT WORK . PREVIOUS BALANCE TOTAL AMOUNT DUE . Amounts due over 30 days will be subject to a finance charge of .5% per month (or an annual rate of 6%). Minimum charge - 50 cents. Xcel Energy'. ::::X&\i~~~6.u.tI*~~ij~~e: .... .:t}at#t}@)/::' ... . .::t!~~~~::t1\f:: ....;.:::::::::;:::;. .;.;.;.:.:.:.:-:.;.: :::::::::~,ijw.J~'~J,i#:iij::~:{:::::::::: 51-4874009-4 03/03/2006 $36.49 Thank You! .Please Return This Portion With Your PaymentTo: Northern States Power Company AT 01 049131 503538199 A**3DGT 111111I1I11111IIII1I1I11I1III111I1111III1I1I111I1I1I1111II1I11 P.O. BOX 9477 MPLS, MN 55484-9477 FARMINGTON CITY OF ATTN: ACCTS PAYABLE 325 OAK ST FARMINGTON, MN 55024-1374 51030306M48740094MODDDDDD3649DDDDDDD3649 ...--....--..------------. .. .n............ . .... Detach and Retain This Portion For Your Records or write to us at: Northern States Power Company PO BOX 8 EAU CLAIRE WI 54702-0008 Questions: Call Please Call: (8001481-4700 Hearing Impaired: (800) 895-4949 Fax: I BOO) 311.-0050 Activity Summary Date of Bill Number of Payments Received Statement Number Fe b 03, 2006 2 57244802 Previous Balance Total Amount of Payments Balance Forward +Current Charges Current Balance $44.51 $44.51 CR $0.00 ~ $36.49 .mise Summary Premise Number 302899419 303664727 Total Current Bill Premise Descriptor SIGN Current Bill $28.78 $36.49 -* \OD~~~ 3 to \ Olo : .. :'I:((.:'::(\.(:('::ii'ti!I~..~I"::i':i.I;:.:I::ii:.::: :::=:::nailtnu~ ........................... . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................ ......................... ....... 03/03/2006 $36.49 .- Xcel Energy- FARMINGTON CITY OF ATTN: ACCTS PAYABLE 325 OAK ST FARMINGTON, MN 55024-1374 See back of bill for more information. Account #: 51-4874009-4 Please pay on or before the date due to avoid assessment of a late payment charge. Page 1 of 3 Statement Date: 02/03/06 Statement # 57244802 5601 Green Valley Drive, Ste 700 Minneapolis, MN 55437-1145 ~~>>~ EideBaillY:M ~ . I N V 0 ICE City of Farmington Robin Roland Finance Director 325 Oak St Farmington MN 55024 952.944.6166 Fax: 952.944.8496 Date: 2/10/06 Page: 1 Please return t~~s_p~~t~o~ ~~h_y~~~~a!~_e~t~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _~ ~ ~_6_5_ -=-7 ~13_~~;!._ _ _ _ _ __ BILLINGS ARE DUE UPON RECEIPT ======================:================================================ - ~ - - - - - - - - - - - - - - - - - - - -- ~.- Progress billing for audit planning and interim work related to financial statement audit for year ended December 31, 2005. CURRENT TOTAL ~ ltr2-1/&~O I. zoo"D,0L{ 01 /1\2 &YO\ --Z 'Q..l - \ lol~Ollo~O\ \ 5 loLi 0 I h I - I eot.{ D ) /c;7P2 \ ~\)) (0 3D 2 . ~ yo \ (pSDL-'1O of ?13Dl,l~ 12-0glLrt L\5'3,SD 321' '5D 3?l,c;D ~,lS 59P:l5 0--5(P,J 5 . /..."" EideBailly~ ~ 5601 Green Valley Drive, Suite 700 Minneapolis, MN 55437-1145 . 952.944.6166 . Fax 952.944.8496 Federal I.D. #45-0250958 7,300.00 -------------- $ 7,300.00 -------------- -------------- ~:W ~/f t A SERVICE CHARGE on past due accounts is computed by a PERIODIC RATE OF 1% per month, which is an ANNUAL PERCENTAGE RATE of 12% applied to the past due amount. PAYMENT IS DUE UPON RECEIPT. . Delmar H. Schwanz Land Surveyors, Inc. 14555 South Robert Trail JJ.:::' SSd- Rosemount, MN 55068 ~ {DO tt.J -- {) (p 651-423-1769 3~ BILL TO Farmington HRA Art: Kevin Camon, Director City of Farmington 325 Oak Street Farmington, MN 55024 DATE DESCRIPTION 02-15-06 Boundary survey of the former "Riste Property" being part of Lots 3 and 4, Block 22, TOWN OF FARMINGTON, Dakota County, Minnesota. Per agreement dated 11-30-05. ;/1/'11 ~ . \OAT'E 5\ ._.JR~Di - $ Thank you for your business ! DATE 2/15/2006 Total Invoice INVOICE # 2245 AMOUNT 2,000.00 $2,000.00 . . . MINUTES HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING JANUARY 9, 2006 1. Call Meeting to Order The meeting was called to order by Chairperson Arey at 7:00 p.m. Members Present: Arey, Flaherty, Fogarty, Hardt, Starkman Members Absent: None Also Present: Community Development Director Kevin Carroll; Economic Development Specialist Tina Schwanz 2. Approve Agenda MOTION by Hardt, second by Starkman, to approve the agenda. APIF, MOTION CARRIED. 3. Consent Agenda MOTION by Hardt, second by Starkman, to approve the Consent agenda as follows: a. Bills b. December 12, 2005 Minutes APIF, MOTION CARRIED. 4. Public Hearings None 6. New Business a. JIT Powdercoating (This was moved forward to accommodate the audience). The plans have been received and are being reviewed. Mr. Milner is still looking at a spring construction date. Staff and Mr. Milner are still looking for an alternative to parking the trailers on the road. There is the option of parking the trailers on the expansion lot, but this depends on the weather. Staffwill obtain additional input from Engineering to determine if this will be possible in the next month or two. Mr. Milner is committed to resolving the problem. Member Starkman asked about the timeframe for the expansion. Mr. Milner stated there is a set of prints at the bank and they have contracted with an appraiser. This process should take four weeks. They will fund the construction project possibly the third week of February. Then it is a matter of when the road restrictions are lifted. His contractor has talked with the construction crew across the street regarding using their equipment as it is already there. Councilmember Fogarty asked when the building permit would be pulled. Mr. Milner and the bank have made a commitment to have the appraisal work done and the building permit pulled before March 18, as he and the bank officer will be out of town for awhile after that. Councilmember Fogarty asked about the parking situation and HRA Minutes January 9, 2006 Page 2 if anything can be done in the meantime to mitigate that. Mr. Milner stated the . business volume has grown over the last six months. They are processing 5,000- 6,000 metal parts which are delivered to them in full-size trailers. They have had a few storage trailers on the lot and in the street. With the growth of business, they have 5-6 trailers in and out every day. They only have four loading docks. Staffnotified them of the parking problem in NovemberlDecember, and Mr. Milner was able to move a couple trailers, but there are still the daily work flow trailers. When Mr. Milner proposed moving the trailers onto the expansion lot, the weather was favorable to scrape off the top layer and put down class five. Now the ground is very soft and it may not be feasible to do this at this time. Chair Arey clarified the only trailers there now are being turned over on a 2-3 days basis. Mr. Milner confirmed this, but added it will look like they are always there, because when two move, two others take their place. Chair Arey asked if the plans for the expansion lot will accommodate the turnaround for the trailers. Mr. Milner stated there will be four more dock spaces plus a yard. Councilmember Fogarty asked Mr. Milner to be very mindful of the situation as it is not ideal. If a truck can be moved off the street at the end of the day, she would appreciate it. Mr. Milner stated when it snows they use their bobcat to make sure any snow plowed by the City is removed around all the trailers and plowed to the curb. The contractor has been told to modify his plans so the class five storage area gets put in early rather than late in the project. The plans show a future curb cut on 208th Street. If they are able to quickly build the class five area and get the trailers off the street, they may need to cut that curb to pull the trailers on and off . to keep them out of the construction area. Staff did not see a problem with this. 5. Unfinished Business a. Downtown Area - McVicker Lot Mr. David May of Four Star Land Development is still in the process of finding someone to work with him on this project. Staffhas asked Mr. May to come to the February EDA meeting. Staff has asked him ifhe would have someone else on board by then and if he could provide a response to the Contract for Private Development. Mr. May will work toward doing this. b. Industrial Park - Aerospace Fabrication and Materials At the last meeting, the HRA expressed an interest in touring the building. They would prefer to do a tour when they are open for business or management could provide a tour after hours. Staff suggested doing a tour at 6:00 p.m. prior to an EDA meeting. Chair Arey suggested having a reception or kick-off for the new EDA for the February meeting, invite the press, etc. It was agreed to do the tour of Aerospace in March. Staffwill do a press release inviting the public to the EDA kick-off. After further discussion, the tour will be done at 6:00 p.m. prior to the February meeting and the open house at 6:00 p.m. prior to the March meeting. . . . . lIRA Minutes January 9, 2006 Page 3 c. Industrial Park - R&L Trucking Construction plans are being reviewed. d. Downtown Area - Exchange Bank Building and Larson Building There has been no progress since the last meeting. Staffhas expressed an urgency to Mr. Brown, Jr. in wanting to see something happen. Mr. Brown will be invited to a future EDA meeting. Ifthere is a funding issue, Mr. Brown will be receiving funds from the HRA for the purchase of the Riste building and staff would like to see that used for the Exchange Bank building. If the Riste building closes in January, in February the EDA could propose to enter into a contractual agreement with Mr. Brown with specific deadlines for certain things and identified consequences for failing to meet those deadlines. e. Downtown Area - Riste Building Staffhas done some title work, had a survey done and has identified some issues. Once the property is acquired, staff wi11look at combining the two existing lots into one parcel. City Attorney Poehler suggested cutting off the piece to the east which contains an electric transformer and overlaps onto the Gerster property. There are also small gaps along the Larson building, and along the north side. Once the property is re-platted those gaps can be eliminated. Part of the property is torrens and part of it is abstract. Staff requested authorization to further investigate the viability of re-drawing the survey without the eastern section and if it is viable, amend the purchase agreement to reflect the new legal description. The initial survey is the HRA's expense. There may be additional expense for the HRA to re-do the survey to obtain a legal description. As far as the re-platting, that would be done by the HRA. MOTION by Hardt, second by Flaherty to authorize staff to investigate eliminating the eastern portion of the parcel and platting it accordingly and amend the Purchase Agreement to reflect the revised legal description. APIF, MOTION CARRIED. f. BRA to EDA Transition - Bylaws; Meeting Schedule The by-laws will be adopted at the February meeting when new members are available. g. Vacant Lot at 4th Street and Main Street A draft of a Contract for Private Development has been provided to Mr. Heinen for his review. Staff needs to do more work with the county on the transfer price. Member Hardt spoke with Mr. Nick Heinen and they do intend to move both houses. The biggest problem with moving the houses is obtaining permission to go under the power lines. The contract should be finalized in February. 6. New Business b. CDBG Allocation for Next Fiscal Year Staff met with Mr. Dan Rogness of the Dakota County CDA regarding what would have to be done to use all of this year's CDBG money for the Riste building. Staff felt if there were four rental units up above and two met the HR.A Minutes January 9, 2006 Page 4 medium income requirements, and if there were a retail business on the lower level and everyone who applied was unemployed it would meet the low/mod income requirements. After further thought, Mr. Rogness was concerned this might result in placing restrictions on prospective developers that might discourage them from doing a project they might otherwise do. Mr. Rogness cautioned if there was $55,000 total in CDBG money, does the lIRA want to risk a multi-million dollar project over $25,000. The down side is there will be less money to spend on hazardous abatement and demolition, which means the lIRA would have to find a developer that is willing to foot the bill for these expenses. In this case, they would want a corresponding reduction in what the property is sold for. Staff agreed that this risk may exist. The other half of the money could be put into the housing rehabilitation program. This money could only be used by Farmington residents for fixing up their homes. Once the costs are paid for the closing there may be $9,000 - $10,000 left of the money that was allocated to purchase the building. Half of next year's CDBG money could be used for slum and blight projects without having to meet the low income requirement. This could amount to $25,000 - $26,000. At a future meeting, it needs to be determined how much of the hazmat abatement can be done up front before the building is demolished. The person who buys the building would be responsible for any additional abatement as part of the demolition of the building. Staff noted the building has been cleaned out. Member Starkman would be in favor of the breakdown of the funds. The more that can be done with the money available without putting restrictions on the developer the better. Staff noted to meet the low income requirement, 51 % of the units would have to be low income. There could also be the issue of hiring employees that currently do not have ajob. Member Hardt felt the goal is to provide affordable housing and also help the residents keep up their homes. He asked how many low income homes we have and if the City's needs are being met. If they are, then we should not be too concerned about that. If there is a waiting list of25-30 people who cannot get into affordable housing and have been waiting for 2-3 years, maybe we should consider it. Staffnoted we have lost some ground in affordable housing goals with the Met Council. There is a proj ect for a parcel of land to be annexed where the developer will try to keep the price under the definition of low income. The CDA would like to know the lIRA's intentions for this money this month. Councilmember Fogarty noted the Council wants this building down very quickly once the HRA takes possession. They do not want the liability. . . Community Development Director Carroll stated whether or not a developer will be concerned with these restrictions is an unknown. It will be unknown until the lIRA starts interacting with developers. If the HRA commits the money to demolition up front and later figure out we have to go with a particular developer and they build something that does not meet the requirements then there are consequences to the EDA. The other unknown is where will we come up with the money to demolish the building. There are some options within the lIRA's control. We can discuss with developers about picking up that expense. Member Starkman stated if we use all the money available from the CDBG plus the $9,000 . . HRA Minutes January 9, 2006 Page 5 . c. d. . would that be enough to demolish the building. Staff felt it would not be according to the estimate for demolition. Member Starkman stated if we will not have enough money to get to the end where we have the building off and ready to sell, would it be better to explore getting funds outside of the CDBG so we can sell the property without restrictions. This could be paid back with the sale of the building. He felt using the funds to allow people to fix up their homes was better than putting a restriction on a developer. Member Hardt would like to see affordable housing, but that could slow down the process. He would like to see a source for other funding for demolition. Member Flaherty felt it would be a nice balance between this project and helping people with their homes. Councilmember Fogarty had concerns with bringing the building down quickly. She felt the Council might be open to a short-term loan to the EDA to demolish the building. MOTION by Hardt, second by Fogarty to authorize staff to present to the Council at the next opportunity a recommendation that the 2006 CDBG funds be allocated 50% to hazmat abatement and demolition costs related to the Riste building with the remainder going to Dakota County's housing rehabilitation program. Member Flaherty clarified that if the Council disagrees, they can override this decision. Chair Arey wanted to convey to the Council that this was a tough decision, but knowing all the facts they have come to a good decision. Member Starkman wants to explore the opportunity to have all or most of the CDBG funds used for the county program and getting short term financing for the Riste building. Staff could not guarantee that options for obtaining other money might work. This could take some time. Chair Arey wanted to put this property in the best light possible to get it off the books quickly. He felt without the low- income restriction is the only way to do that. APIF, MOTION CARRIED. 305 3rd Street - Former Liquor Store Building Attorney Poehler agrees that if the plan is to have the EDA get more involved, if the Council supports ownership of the building, it would make sense for the EDA to own it. Staff needed direction to request the City Attorney to draft whatever documents are necessary to make that transaction. Member Hardt agreed the EDA should retain ownership and lease the building out. Councilmember Fogarty agreed the EDA should take control of the property and lease it out, but she wanted to make sure the EDA can get out of the lease if an opportunity presents itself to do redevelopment on that comer. The lease should not be long-term, perhaps year to year. She would like to talk to Mr. Finnegan about his long-term plans with the Subway building. MOTION by Hardt, second by Flaherty to direct the City Attorney to prepare whatever documents are necessary to transfer ownership of the property from the City to the EDA subject to Council approval. APIF, MOTION CARRIED. Appointments to EDA Mr. Chad Collignon and Councilmember David McKnight were appointed to the EDA beginning February 1, 2006. HRA Minutes January 9, 2006 Page 6 e. Economic Development Plan Staff felt the EDA should playa very pivotal role in the development of an Economic Development Plan. There should be discussions about what the scope of the EDA should be. The EDA should decide if there should be an advisory task force involved. Staff suggested setting aside a portion of the next couple meetings to set a framework. Then the task force could get involved. The EDA could use consultants. Each year Dakota Electric makes $5,000 available to member communities. Staffhas indicated they would use the money to pay consultants to work on the Economic Development Plan. The EDA may want to do a survey about what the residents would like to see for economic development. Chair Arey suggested they also need to discuss funding sources. Various funding sources were discussed. Staff provided a map on land use development. As part of the plan staffwill re-examine these areas. An area or two could be discussed at upcoming EDA meetings. Member Hardt suggested not only defining roles, functions and duties of the EDA, but also their relationship to other groups such as the Planning Commission. They could discuss ideas such as joint meetings, partnerships, etc. He also would like to find out from Council what is the City's general approach to what kind of mix they want for tax revenues from commercial versus industrial versus residential. Does this plan meet those goals? Councilmember Fogarty noted that would be a good discussion for the annual goal setting workshop. Staff asked if the EDA was comfortable with being the lead agency with regard to the development of this plan. Councilmember Fogarty felt the Council would be in agreement with this. Members agreed the EDA should take the lead on this plan. At the next meeting staff could provide a timetable for the Economic Development Plan process and some information about what the EDA's proposed role is. This would then be placed on a Council agenda for approval. At the next meeting staff could provide a recommendation as to the composition of the advisory task force. 7. Executive Director's Report Ms. Ruthe Batulis, President of the Northern Dakota County Chamber, had representatives of an Economic Development Growth Committee at a Farmington Business Luncheon. She believed it was time to form a group like this in Farmington. She will be attending the January 17 Council Meeting. Staffhas suggested she attend an EDA meeting for the EDA to make a recommendation to Council, however Ms. Batulis would rather go directly to the Council. There are a lot of details that need to be worked through with the EDA. There could be some confusion between this group and the EDA. This needs to be discussed and defined carefully. Ms. Kris Akin is selling her business, We1come Friends, and the building. . . . . . . HRA Minutes January 9, 2006 Page 7 8. Adjourn MOTION by Starkman, second by Hardt to adjourn. APIF, MOTION CARRIED. Respectfully submitted, ~~/V?~~ C/ Cynthia Muller Executive Assistant . . . ECONOMIC DEVELOPMENT AUTHORITY BY-LAWS These By-Laws, when adopted, are intended to deal with matters not otherwise covered by State Law, City Ordinance or elsewhere. Section I - Meetine:s SUBD. 1 - Regular meetings ofthe Economic Development Authority shall be held on the fourth (4th) Monday of each month at 7:00 PM. Any regular meeting falling upon a holiday shall be held on the next following business day at the same time and place. All meetings, including special and adjourned meetings, shall be held in the City Hall unless otherwise designated. SUBD. 2 - Special meetings of the Authority may be called by the Chairperson or in written form by any other three (3) members ofthe Authority, filed with the Executive Director. The Executive Director may also call a special meeting. At least 3 days before the meeting, the Executive Director shall notify each member of the time, place and purpose of the meeting by causing written notice thereof to be delivered to him/her personally if he/she can be found, or, if he/she cannot be found, by leaving a copy at the home of the member with some person of suitable age and discretion residing therein. At least three (3) days prior to the meeting, the Executive Director shall also post notice of the meeting and if applicable, notify each person who has filed an applicable written request for notice, or may, if necessary, provide such other more restricted notice, including but not limited to (as allowed by Statute, such as) M.S. 471.705, subd. 1 C, paragraph g, " if a person receives actual notice of a meeting of a public body at least 24 hours before the meeting, all notice requirements ofthis subdivision are satisfied with respect to that person, regardless of the method of receipt of notice." Emergency meetings may be held because of circumstances that, in the judgement of the Authority require immediate attention. The notice of special meeting shall state the item(s) to be discussed and acted upon. Items not stated in the notice may be discussed, but no action may be taken if any member objects. Any special meeting attended by a majority of the Authority members shall be a valid meeting for the transaction of business that may come before the meeting. SUBD. 3 - At the regular Authority meeting in February of each year, the Authority shall (1) designate the official newspaper; (2) establish meeting schedule for the year; and (3) choose a Chairperson and a Vice-Chairperson, who shall perform the duties of the Chairperson during the Chairpersons disability or absence and in case of a vacancy in the office of Chairperson and until a successor has been appointed and qualifies to fulfill the duties of Chairperson. SUBD. 4 - All Authority meetings, as defined by State Law, including special and adjourned meetings shall be open to the public. The Authority Attorney shall advise the Authority in writing as to his interpretation of the state "Open Meeting Law" and all new members shall be provided such written interpretation. K:\TINA\Economic Development\HRA\2006 EDA By-Laws. doc 1 Section II Presidinl! Officer: Rules of Order . SUBD. 1 - The Chairperson shall preside at all meetings ofthe Authority. In the absence ofthe Chairperson, the Vice-Chairperson shall preside. In the absence of both, the Executive Director shall call the meeting to order and shall preside until the Authority members present at the meeting choose one oftheir number to act temporarily as presiding officer. SUBD. 2 - The presiding officer shall preserve order, enforce the rule of procedure herein prescribed, and determine all questions of procedure and order. Except as otherwise provided by statute or by these rules, the proceedings of the Authority shall be conducted in accordance with the following rules of order: A. A Motion must be seconded before being considered by the Authority and the The presiding officer must recognize mover, as well as the seconder. B. Any motion may be withdrawn by its mover with the consent of his /her second. But a motion, once debated, cannot be withdrawn except by a majority vote of the Authority. C. A motion will not be subject to debate until it has been stated by the presiding officer and he/she has opened it to debate. D. Each member, while speaking, shall confine himself/herself to the question at hand and avoid all personal, indecorous or sarcastic language. . E. Whenever any member ofthe Authority desires to speak on any question, which affects himlher personally, he/she shall first vacate his/her chair and shall not resume his/her seat until the matter under consideration has been acted upon. He/she shall be allowed to make comments on the question as a private citizen only and while a member of the audience. F. Whenever public hearings are held, the presiding officer, shall allow any member of the public, the privilege of speaking. A reasonable time shall be allowed to anyone as long as they are not repeating points already made. The presiding officer shall maintain order and may rule anyone out of order. G. At any meeting, the presiding officer will allow the public to participate as long as there is reason to believe the input is beneficial. SUBD. 3 - Any member may appeal to the Authority from a ruling ofthe presiding officer. If the appeal is seconded, the appealing member may speak first on the reason for his/her appeal. General discussion can then take place on the appeal before a vote. The appeal shall be sustained if it is approved by a majority ofthe members present. . K:\TINA \Economic Development\HRA \2006 EDA By-Laws.doc 2 . . . Section III - Ae:endas SUBD. 1 - The agenda shall be prepared by the EDA Executive Director and shall be closed at noon on the Wednesday preceding the meeting for publication purposes. SUBD. 2 - Any member may place an item on the agenda by so instructing the Executive Director. SUBD. 3 - No item shall be placed on the agenda unless the item is expressed in such a way as to clearly show the subject matter involved SUBD. 4 - The agenda add-ons are subject to approval by a majority vote of the members present and further such add-on items may be discussed, but no action may be taken if any member objects. Section IV - Order of Business SUBD. I - Each meeting of the Authority shall convene at the time and place appointed therefore. Authority business shall be conducted in the following order: I) Call to Order 2) Approve Agenda 3) Approve Consent Agenda a. Bills b. Minutes c. Additional Consent Agenda items 4) Public Hearings 5) Unfinished Business 6) New Business 7) Executive Director's Report 8) Adjourn SUBD. 2 - The order of business may be varied by the presiding officer, except that all public hearings shall be held at the time specified in the notice of hearing. Section V - Minutes SUBD. I - Minutes of each Authority meeting shall be kept by the Executive Director or, in his/her absence, his/her designee. In the absence of both, the presiding officer shall appoint a secretary pro tern. Resolutions need not be recorded in full in the minutes if they appear in other permanent records of the Executive Director and can be accurately identified from the description given in the minutes. SUBD. 2 - Minutes of each meeting shall be reduced to typewritten form, shall be signed by the taker, and copies thereof shall be delivered to each Authority member as soon as practicable after the meeting. At the next regular Authority meeting following such delivery, approval of the minutes shall be considered by the Authority. The minutes need not be read aloud, but the presiding officer shall call for any additions or corrections. Ifthere is an objection, the Authority K:\TINA\Economic Deve1opment\HRA\2006 EDA By-Laws.doc 3 shall vote upon the addition or correction. If there are no additions or corrections, the minutes shall stand approved by motion. If there is an objection, the Authority shall vote upon the addition or correction and approve the minutes by motion as amended. Section VI - Quorum and V otinf! . SUBD. 1 - At all meetings a majority of all members shall constitute a quorum for the transaction of business. SUBD. 2 - The votes of members on any question pending before the EDA shall be by voice votes. Roll call vote can be requested by any member, except for the following agenda items; approval of the agenda; approval of the consent agenda; and the adjournment. The names of those voting for and against the question shall be recorded in the minutes. If any member present does not vote, the minutes shall state: "Abstain: Name". SUBD. 3 - Except as otherwise provided by statute, a majority vote ofthe quorum shall prevail. Section VII - Executive Directors Review The City Administrator shall complete an annual performance review of the Executive Director. The City Administrator will provide an opportunity for Authority members to comment on the performance ofthe Executive Director. Section VIII - Suspension or Amendment of the Bv-Laws SUBD. 1 - These by-laws may be temporarily suspended by a unanimous vote ofthe members . present. SUBD. 2 - These by-laws shall not be repealed or amended except by a majority vote of the whole Authority after notice has been given at some preceding meeting. Section IX - Effective Date SUBD. 1 - These by-laws have been adopted by the on the day of immediately. ,20 and becomes effective Attest: EDA Executive Director EDA Chairperson Date: Date: . K:\TINA \Economic Development\HRA \2006 EDA By-Laws.doc 4 . JANUARY 2006 8jfiW T F 8 1 45.7 8 9 12 13 14 15 18 19 . 21 22024 25 26 27 28 29 30 31 JULY 2006 8 M T W T F 8 1 2 6.8 9 13 14 15 16 18 19 20.22 23 25 26 27 28 29 3031 AUGUST 2006 8 M T W T F 8 2 3.5 6 10 11 12 13 15 16 17 . 19 20 2223242526 27 29 30 31 FEBRUARY 2006 8 M T W T F 8 12.4 5Ji~9 10 11 12 15 16. 18 19 22 23 24 25 261i1a1 MARCH 2006 8 M T W T .c..8 1 2 .4 51t~9 10 11 12 15 16 11118 19 21 22 23 24 25 26D2829 30. SEPTEMBER 2006 8 M T W T F 8 .2 1~ t~.,~ ,7.,:T2, 22 23 24(g2627 28 .30 . OCTOBER 2006 S T W T F 8 134 567 8 12 . 14 15 1 18 19 20 21 22 242526.28 29 30 31 APRIL 2006 S M T W T F 8 1 1~~.! :~~~~~ 231~~~27.29 30 MAY 2006 8 F 8 345 6 ,1.,3 16 17 18 19 20 21 23 24 25 .27 28.3031 NOVEMBER 2006 8 M T W T F 8 1 234 51!~.." 12 3 .1. 5 16 17 18 19 21 ...25 26 28 29 30 . JUNE 2006 S M T W T F 8 123 8 .,0 15 16 17 20 21 22.24 21 28 29 30 DECEMBER S M T W T 2006 PHONE NUMBERS . CITY HOLIDAYS + PLANNING COMMISSION . COUNCIL MEETINGS PAYDAYS o WATER BOARD & EDA <> PARK & REC. COMMISSION o RRC ADVISORY BOARD HPC MEETINGS JfJ Bonestroo ~.. Rosene .. Anderlil< 4 1\1 Associates EngIneer. 4 AreNtec" (850 838-4800 FAX (85t) ea8-1311 . . ..; ....~.., ....... 'I! . ..,.,.....~.~~"~~~.~...: '. ... ..~ ",. ,....:. .........: '. . ...,: '. ~':"'~""\' ,','. ..,,~~.~,<~~.- ~~~..,~:. . I ><..... .: ~.~.~:-l~~~~~~~:.;:.::..~ .' : I' I I I I , .1 i I .::.~:~.<. ..i<~~:~t~\.: I .' F- 'it :;. ~ . f r: .... I; . t f . Is i'; . I: 'j I, Ii f; !: o ('I") ..... <! I i I j, II Ii " I I I !I I. ;/ .1 'I Ii i ! . t ~ -q. > ~ ~ u. .... u. u.. !k: :n ~~ ~f ; I I II I !: I I ., i " ! '. I Ii I I .. I ~ , i:!!f I; : " ;;s z' : I At 0 ! t .. .. l.cr ! ~~ . ~ I. ~i . I I ~... I . . I , f ~u ~ ~i!f 'II~I , -...J 1II i ~ ;.a It '"':_-:: ._"";.-= -....... .- ~-'=-- --~-, ~~.:-:'= . - -... .. . ..~-j --- ,t f! t ~ '.;. :... ., '. ,. ~ ~ I: . ~ f i . " !It -;:" ., . ~ ::~:.aliII ..........~ ~ ~- ~------ ~ . -<c4 G ~ <:. .> u.. 10: <l So .... . <l. ..... t:.. . . --.../ ' I i Ii :1 ,I !I ;, !I I' il . o ~ or- <( i: I, ji " I' f! I! 'I I Ii ; ! '! I; 'j I, Ii ! i It :1 i' I ,e l!!f ii I ;n . ~ ! it ~ "' :> .; S~ - - "' 'i "> r .... :1 ~! < ~ le 'I I ~ '., i 'f 1.- !i~! :ilal . . . City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: Planning Commission \e..~v FROM: Lee Smick, AICP City Planner SUBJECT: Variance to the Minimum Lot Area Requirements in the B-2 Zoning District Applicant: Mr. Hosmer Brown 5050 France Avenue South Edina, MN 55410 DATE: February 14,2006 INTRODUCTION The applicant, Hosmer Brown, is seeking a variance (Exhibit A) from Section 10-5-14 of the City Code (Exhibit B) to the minimum lot area in the B-2 Zoning District for the property at 209 Oak Street known as the Riste building (Exhibit C & D). The variance of 3,200 square feet from the code requirements is being requested. DISCUSSION The City of Farmington's Economic Development Authority (EDA) is preparing to purchase the Riste building from Mr. Brown. The Riste building currently straddles a shared property line between Lots 3 & 4 of Block 22, Town of Farmington plat (Exhibit E). The plat is dated December 19, 1864 and shows that the original configuration of the downtown oriented lots north and south with a majority of the lot lengths at 170 feet and lot widths at 60 feet. The EDA recently had the Riste building surveyed in order to prepare for the building purchase (Exhibit F). As shown on the survey, the Riste building straddles a shared property line between Lots 3 & 4 on Block 22. Therefore, the Riste building encompasses 2 parcels. Because of minor boundary issues disclosed by the survey, Mr. Brown and the EDA have agreed to split off the "flag" portion of the easternmost half of Parcel 2 (the part that extends to the east and overlaps the west line of the Gerster building - Exhibit G). As shown on the attached dimension map (Exhibit H), the west portion of Parcel 2 encompasses 1,890 square feet and the east portion of Parcel 2 encompasses 2,200 square feet. The "flag" portion of the east lot encompasses 400 square feet. In the B-2 Zoning District requirements, the minimum lot area is 5,000 square feet, therefore, Mr. Brown is requesting a variance for 3,200 square feet from this requirement since the east portion of Parcel 2 would encompass only 1,800 square feet upon the splitting off of the "flag" portion of the lot at 400 square feet. The intention of the EDA once the Riste building is purchased is to combine the east and west portions of Parcel 2 into a total parcel area of 3,690 square feet, thereby increasing the total parcel area of the nonconforming parcels, thus decreasing the nonconformity. Additionally, it is intended that the "flag" portion be combined with the Larson parcel, also increasing the total parcel area of the nonconforming . parcels, thus decreasing the nonconformity. The dimension map (Exhibit F) shows a majority of the lots within the B-2 Zoning District less than the required minimum of 5,000 square feet. The B-2 District also requires a 50-foot minimum lot width, which again, rules out a majority of the lots in the downtown business district. Therefore, a majority of lots in this area are considered legal non-conforming. Because of this information, staff is preparing a text amendment to the minimum lot area and width in the near future in order to make a majority of the lots conforming. However, because of the impending purchase of the Riste building, staff will not have the text amendment completed before the transaction occurs. Therefore, Mr. Brown is requesting a variance to the minimum lot area within the B-2 Zoning District of 3,200 square feet. The City Code provides the following criteria that must be met for a variance to be approved: 1. Because the particular physical surroundings, or the shape, configuration, topography, or other conditions of the specific parcel of land involved, strict adherence to the regulations of this Title would cause undue hardship. Economic consideration alone shall not constitute an undue hardship if reasonable use for the property exists under the terms of this Title. A majority of the parcel areas on Block 22, and for that matter, the parcel areas along 3rd Street on Block 23, do not meet the B-2 District's requirement of 5,000 square-foot minimum lot area. Strict adherence to the regulations of the B-2 Zoning District would cause undue hardship if the variance was not allowed. 2. The conditions upon which a variance is based are unique to the parcel of land for which the . variance is sought and are not applicable, generally, to other properties within the same zoning classification. Because of the intended parcel combinations for the Riste and Larson parcels, the total parcel area of these nonconforming parcels will decrease the nonconformity. 3. The alleged difficulty or hardship is caused by this Title and has not been created by any persons presently having an interest in the parcel of land. The hardship was not created by the applicant. 4. The granting of the variance will not alter the essential character of the locality or be injurious to other property in the vicinity in which the parcel of land is located or substantially diminish property values. The variance will not alter the essential character of the locality or be injurious to other property in the vicinity. 5. The proposed variance will not substantially increase the congestion of the public streets, or increase the danger of fire, or be detrimental to the public welfare or public safety. The variance would not create any of the above-mentioned adverse effects. 6. The requested variance is the minimum action required to eliminate the hardship. . 2 . . . In order to decrease the non-conformity, the parcel split needs to be performed to allow the intended parcel combinations for the Riste and Larson parcels. The requested variance is the minimum necessary to meet those needs. ACTION REQUESTED Approve the variance to the minimum lot area within the B-2 Zoning District of 3,200 square feet in order to ultimately decrease the non-conformity of the Riste and Larson parcels. Respectfully submitted, 4~-C;.~) ~C_~ Lee Smick, AICP City Planner cc: Hosmer Brown Farmington EDA 3 FROM: Panasonic FRX SYSTEM PHONE NO. FEE:-OS:I..:2006 15: [:1'3 CITY OF F~f;:rW.I(:iTm{ Feb. 09 2006 04:26PM P1 ~51 463 1611 P.02 --- ~I-!. 'O/T A C::X' lb,/ (N-t/tI'" . ' I": / ;J j,:j" .' City of Farmington 325 Oak Street. Farmington. MN 55024 (651) 463-7111 Fax (651) 463-2591 v{ww.ci.fa,rmington.mn~ J. .. -VARIANCE~APPLICA TION -.-._~ ~ = : ='ll ~ CJp '1 ~ t;,.;rZ;:-' . ~ ~.-., -.- :.~. . -~-, ~ A~~l;"n" %:- 1/ -jr"fk:" '" #- j]T._ Tel.~hon., &.~) _.1.!- ? ' /13 ! F"" @) N).J rJ 3 Y Address: ':!c?J'O E.1I~1J L (.,..._AVE'""~~ ____..__.._.-_.___.__,,~.-.-.-.----..--.,-.....-----.-- E,( ~ ~e;; ~ 1.5'- ..J~/d City Slate lip (,:,lll<: [I'..... -... ----- -. Street City State lip Code --7Q " q 0 . /. <?..L. ~'. /. / p / .t -""1"7 / ---- ,) Premises Involved: __.-U_._ . tLU- '-..:T"I . .Ct:f;l/l11/ '.' .E.n" .-t1~ _.1:/1..0[,1'\ ~!:;VI ,~ Address' Legal Del:cl'iption (lot, block, plat name, sc::;;ion. l!)wnS~; ,~?t\S~j , /? tl)fIJ/( ct"7::;;'f1?1!f1",'t Curreo! Zoning District -8...- L Current Land Use ".._ ("tJ 1# J~J/ClJlk_.._n_._.... .-.--- Specifie Nature of Re.qu", I Clal.... H.n1,bl~: ~ de') ~J7f- 1:!~--=iP /(7"1-_ _ i~_Jkwtl- 2. ~- -iftjWi 'i<:t_L.-4?>:!?_!&.d~mb1f!!L.lhL ~ tlJiCr-1" r" '. ~/C~ <?'F '111/hfDI/!/J /~7 ~. ~rB!\n. .-\.1, Rt6'UTREME!'(r.~. : Proof of Ownership 0 Copies of Site Plan J Applic,ation Fee ($200) 0 AbsnactlRo!:sidelltial List (adjoil'Jng properry owners only) o;;~od"~~ ?_:~7:m(o~n:';;"'M<c<nil\l~tt:j'de t ~ /q de P-r~__~ ~ JJ.i&!. &, ~__._..__-_.._,_'!-2l,-- 2(t ~~Y1r~ of Propurty w~u D:ate ~(APPIi ant ". ~ pr" I/LVJ. 9- V; f~ ~ SIf;"e. e(J Telephone: (-> "~. ~...p fiJ-0if Fil)';: L-) Ow'ner: ----- Adch'..:;:;; ..--....---..... Re.qoest Submitted to Pl~g Conunis:sion on Public Hearing Sei for: __--...--- For office use only Advertised in Local Newspaper: ___.._,___ Pbnning Commission Acriou: __Approved __.tJcrucd -----.---.....-.-. ---------"----.--- _..~ -..------.,.....--..---...-. . Comme:Ols:__ _...._..___-_-..-----------..-......1"--.-----........------......-- Conditions Set~ -_...-_.....-----------_._-_._.-...-.....~.-..,~._._.._.....__.. --..---- .-.--- ....-.--------.'....,...-----...-.....--.--.-,..-... l)huming divisiQn~__ Date: "."'a'S . . . 10-5-14: B-2 DOWNTOWN BUSINESS DISTRICT: Page 1 of3 -.--:- ff / I ,/) ...--- /;./7 ;....--;(, , I !., .' " '::--J I PrIO(/ / / '---'/, ' y' 10-5-14: B-2 DOWNTOWN BUSINESS DISTRICT: (A) Purpose: The B-2 downtown business district identifies a variety of general commercial and higher density residential uses for the downtown area in order to expand and strengthen the downtown as the primary commercial district for the city, create a pedestrian friendly downtown, and promote the city as a cultural center. Objectives of this district are to preserve historical buildings, require high design standards, and provide a diverse mix of community oriented commercial and cultural activities that are pedestrian oriented and accessible to area residents. (B)Bulk And Density Standards: 1. Minimum Standards: >- Lot area 5,000 square feet Lot width 50 feet Front yard setback 0 feet Side yard setback 0 feet Rear yard setback 0 feet Height (maximum) 45 feet Maximum lot coverage of all structures 100 percent All standards are minimum requirements unless noted. (C)Uses: 1. Permitted: Animal clinics. Clinics. Clubs. Coffee shops. Commercial recreational uses. Commercial services. Neighborhood services. Nonprofit recreational, cultural and entertainment uses. Offices. http://66.113.195.234/MN/Farmington/13005000000014000.htm 2/9/2006 o I Co(int ian LO?ge I I c: ~ I Brown ~ I Ri e 2 Oak Street ~ ~ co en 75' Elm Street t N DC] Qt Q) (]) .... - en '0 .... C'") Farmington Steakhouse . 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FIRST AMENDMENT TO REAL LAND PURCHASE AGREEMENT THIS AGREEMENT made and entered into this _ day of , 2006, by and between by and between the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON f/k/a HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON, a public body corporate and politic under the laws of the State of Minnesota, with offices at 325 Oak Street, Farmington, MN 55024 (referred to herein as the "Buyer") and, 2004 REAL ESTATE CO., a Minnesota corporation, with offices at 5050 France Ave. So., Edina MN55410 (referred to herein as the "Seller"). WHEREAS, on November 8, 2005, the Buyer's predecessor, the Housing and Redevelopment Authority in and for the City of Farmington (the "HRA"), entered into a Real Estate Purchase Agreement by and between the HRA and Seller ("Purchase Agreement"); WHEREAS, on August 15, 2005, the City of Farmington reformed the HRA as the Economic Development Authority and for the City of Farmington ("EDA/Buyer") by City of Farmington Ordinance No. 005-541; WHEREAS, Buyer and Seller desire to amend the terms of the Purchase Agreement. IN CONSIDERATION of the mutual covenants and agreements herein, the Purchase Agreement between Buyer and Seller shall be amended as follows: 1. Paragraph 4.1 of the Purchase Agreement is amended to read as follows: 4.1) The closing (the "Closing") shall be at a location designated by Seller, and shall occur on or before March 17, 2006 ("Closing Date"). Notwithstanding any other provision herein to the contrary, Buyer may extend the Closing Date for an additional ninety (90) days if all of the contingencies set forth in Section 7 (Buyer's Contingencies) and other conditions set forth in this Agreement have not been satisfied, provided Buyer is diligently pursuing the satisfaction thereof. 2. Paragraph 7.1.2 is amended to read as follows: 7.1.2) Buyer and Title Company determining on or before February 28, 2006, that they are satisfied with the results of the matters disclosed by the Survey of the Subject Property and the Commitment, both as referenced in this Agreement. 3. Paragraph 7.1 is amended by adding a new subsection 7.1.6 to read as follows: 7.1.6) Seller obtaining the necessary lot split approval, and any other necessary . approvals, from the City of Farmington of the Subject Property splitting off the remainder . parcel, as legally described in the Attached Exhibit A-I ("Remainder Parcel") and combining the Remainder Parcel with Seller's abutting property, as legally described on the attached Exhibit A-I ("Seller's Property"), in a form acceptable to the City of Farmington. 4. Exhibit "A" of the Purchase Agreement, entitled Legal Description of Property, is hereby replaced with the attached Exhibit "A-I", 5. Except as specifically provided herein, the Vacant Land Purchase Agreement remains unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of this day above written. BUYER: 2004 Real Estate Co. SELLER: Economic Development Authority for the City of Farmington f/k/a Housing and Redevelopment Authority in and for the City of Farmington, . By: By: Its Its By: Its STATEOFMlNNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this _ day of , 2006, by and Kevin Carroll, the President and Executive Director, respectively, of the Economic Development Authority 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 119840 2 . . . STATE OF MINNESOTA ) )55. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this _ day of , 2005, by , the of 2006 Real Estate Co., a Minnesota corporation, on behalf of the corporation. Notary Public THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON, P.A. 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, MN 55121 Telephone: (651) 452-5000 119840 3 EXHIBIT A-I LEGAL DESCRIPTION OF SUBJECT PROPERTY: . LEGAL DESCRIPTION OF REMAINDER PARCEL: LEGAL DESCRIPTION OF SELLER'S PROPERTY: . . 119840 4 , . . . Page 1 of2 Kevin Carroll From: Kevin Carroll Sent: Monday, February 13, 2006 1:41 PM To: 'tim@jitpowdercoating.com' Cc: Dave Sanocki Subject: Trailers on Eaton Ave. and 208th Street Tim, This e-mail will confirm some of the details of my telephone conversation this morning with one of your business associates regarding the trailer parking issue. Please give me a call after you have spoken with him and/or reviewed this e-mail. The need to get all of your company's trailers off of Eaton Avenue and 208th Street still exists. Our Engineering Division is currently reviewing permit applications for the installation of small utilities at the Xcel substation that is under construction at the east end of 208th Street. Those permit applications will be approved within the next two weeks, at which time construction traffic on Eaton Avenue and 208th Street will escalate significantly. In addition, construction traffic related to the extension of 208th Street to Pilot Knob Road and the construction of the R & L Carriers truck terminal will be starting soon. As we've previously indicated, the trailer parking that has been occurring in the Industrial Park violates two City Code provisions. The first prohibits the parking of large vehicles on the street overnight, at any time. The second is the City's winter parking ordinance, which prohibits any parking on the street between 2:30 and 5:30 AM during the winter (November 15 through April 15). To the best of my knowledge, citations have not been issued for these violations in the past, in part due to low traffic volumes within the Industrial Park. Such volumes did not present substantial public safety concerns. However, such concerns now exist, for the reasons set forth in the preceding paragraph. I think we are in agreement that the logical place for the overnight parking of your trailers is on your "expansion lot." Neither you nor the City wanted to see trailers being backed or hauled over the curb, nor did it make any sense to make a curb break in any location other than at the entrance to the new parking area that you proposed in connection with your expansion. As you know, the plans and other documents related to your planned expansion are currently under review by the Engineering Division and the Building Inspections Division. Although that review has not yet been completed, Dave Sanocki of the Engineering Division has advised me that he has no objection to the width or location of the new Eaton Avenue entrance that you have proposed. Accordingly, we would appreciate your cooperation in immediately completing and submitting the Street/Curb Breaking Permit Application that was previously provided to you, so that the Engineering Division can get it promptly reviewed and approved. If you have any questions about the permit itself or the application process, please contact Dave Sanocki at 651-463-1602 or 651-248-7079. After the permit has been issued, our expectation would be that you would immediately make the curb cut(s) in question so that you could begin backing or hauling your trailers onto the expansion lot for overnight storage and/or for overnight pick-up by their owners. Engineering Division staff members believe that the existing topography is sufficiently flat to allow this, and that the frozen ground will support the weight of the trucks and trailers. You could consult with the Engineering Division regarding whether some gravel or Class 5 would be useful or necessary at the entrance and/or elsewhere on the expansion lot. We realize that another temporary arrangement will probably be necessary when the ground thaws in the spring. However, with proper planning/timing, it would be possible to move the trailers off of the expansion lot for whatever short period of time would be required for the grading of the lot (if required) and the installation of the base for the future parking lot, at which time the lot could once again be used for overnight storage. Call me if you would like to discuss this matter, or if you see any reason why the course of action outlined above would be unworkable. Your colleague asked today about the next HRA meeting, and I told him that the City 2/25/2006 Page 2 of2 Council has changed the HRA's format to that of an EDA (Economic Development Authority). Although the HRA met on the second Monday of each month, the new EDA will be meeting on the fourth Monday. The next meeting will be on February 27,2006, and we're hoping that you'll be available to give the EDA an update on your project at that time. Thanks. Kevin Carroll Community Development Director City of Farmington 651-463-1860 (City Hall) 651-775-5962 (cell phone) 2/25/2006 , . . . . . . Page 1 of 4 Kevin Carroll From: tim [tim@jitpowdercoating.com] Sent: Tuesday, February 21, 2006 1 :43 PM To: Kevin Carroll Subject: Fwd: JIT Temp Trailer Estimate Kevin, Below you will find a forward of Chuck Bainey's e-mail regarding Paul Johnson's estimate. I am troubled by the costs and the timeline. Let me explain. But first, I wanted you to know that I did connect with Gordy Schiltz of Appro Development this AM. He is 90% complete with the excavation work for R & L and he is moving on. He is waiting for the ground to warm so that he can pour concrete before finishing the site work. He did mention that he found 18"+ of frost in the ground at that site which made the work a little more difficult. So, rather than 12" of frost (as found by Paul Johnson's quick and dirty speed shovel test), I, too, probably have 18"+ of frost. The estimate of $15,000 (based on l' of frost) is likely too low and my actual costs will probably be significantly higher. When you wrote me the first e-mail in late November, JIT quickly responded with a two part plan. The first part was to eliminate as many trailers as possible, as quickly as possible. At that time, we had 7-8 trailers on the street. We consolidated a few trailers and moved some storage to an off site location. I believe this eliminated 3 trailers within the span of the first week. As you know, what has been left are the trailers that contain product waiting for / having just been painted. These trailers typically move every 48 hours. I have been monitoring the situation daily. We have been averaging a low of2 (typically happens Monday afternoon) and a high of6 trailers (typically on Thursday night as we have prepare to work the weekend) on the street at anyone time. The second part of the plan was to create a temporary storage area for these trailers. JIT proposed to immediately break curb and put down some class 5 thus creating a space to store trailers through the winter on the expansion lot. The plan recognized that during the spring thaw, the area would become unusable and the trailers would need to back on the street for a some period of time. I believe that I also communicated this concern when I attended the HRA meeting in January. I received from you -10 days ago a fax which contained the curb breaking permit with your note asking me to proceed quickly with the temporary storage area. In the time that has passed, conditions have changed. Because of the way the winter has unfolded, conditions are ripe for an early spring. To simply break the curb and put down the class 5 right now, as originally proposed, seems to me to make little sense at this time. I seriously doubt that the area would be usable for more than just a few weeks before the frost starts to come out of the ground necessitating the need to put the trailers back on the street. Since my financing is in place, the idea of expediting the site work to create the actual area appealed to me as the right decision until I saw Mr. Bainey's comments. I really can't afford to spend $15,000-$20,000 to create the trailer area and not have it be part of / beneficial to the overall project. Especially considering that the actual start date for the entire project is less than 45 days away. But that seems to be the consensus on the type of work and the amount of money I would have to spend, if I hope to create an area that will be usable during the spring thaw. I find it very difficult to commit to 2/25/2006 Page 2 of 4 that course of action. I realize that the City has been more than accommodating in allowing the trailers to be stored on the . 208th St spur. I also realize that expansion plans within the park make this situation no longer acceptable. But from my perspective, everyone planning construction/expansion is in the same situation. We are all prepared to be in the ground the moment spring conditions allow. Mr. Bainey assures me that our site work schedule has been modified to quickly allow the trailer area to be created. I am convinced that our work will progress quickly enough that we will not impact any other project within the park. Rather than spending a significant sum of money to create an area right now that may have limited use or benefit, I ask that the city tolerate several more weeks of the current situation and let me continue to push Mr. Bainey towards the April I start date. Maybe the best way to proceed would be to have a meeting at JIT with you, appropriate members of city staff, and any other interested parties, to see first hand what the situation is and come to some reasonable agreement. I am willing to rearrange my schedule to accommodate yours. Tim PS - Larry Hofmeister, TIT VP of Operations, has been out with the stomach flu the last 2 days and I have been covering appointments for him. If! am not available, please leave a message with Yvonne and she will page it through to me. I will call back ASAP. Tim Milner President TIT Powder Coating Company 21020 Eaton Ave Farmington, MN 55024 651-463 -4664 (office) 651-463-4627 (facsmile) . Begin forwarded message: From: "Chuck Bainey" <chuckb@bainey.com> Date: February 21,200612:00:31 PM CST To: "tim" <tim@jitpowdercoating.com> Cc: "Brad Bainey" <bradb@bainey.com> Subject: JIT Temp Trailer Estimate Tim, Weill just got a price from Paul Johnson, Custom Earhworks, who did the original site-work back in 1995. I provided him your sketch showing a driveway and spaces for up to 6 trailers. Based on that, he proposes the following: . 2/25/2006 Page 3 of4 Rip frost and pile in berm areas. . Remove curb. level Area with onsite material. Furnish and install 12" of class 5 recycled base. His estimate stands at $15,000 based on the frost level being at - 1 ft. (Paul estimated the frost using a speed shovel). Should we discover more frost, the costs will increase. I still have concerns that class 5 will be an adequate base and have quoted 6" of clear rock under 6" of class 5 recycled as alternative. That would add -$2,500 to the estimate. Paul can mobilize within 2 weeks. He expects that it will take 3-6 days to complete the project depending on weather and actual frost depth. If we pulled the trigger today, you would probably have the space available by March 10. . Currently, the price for the entire excavation for the project is -$100,000. It is nearly impossible to tell what this temporary trailer area will look like after spring thaw making it difficult to determine if any of this work we do "early" will be a benefit to the actual project. I advise you to budget this temporary area as an "add" alternate and NOT plan to have the cost for this work be part of the excavation budget. We are still very much on target for an April 1 start date. Based on current conditions and assuming normal weather, we believe the vast majority of excavation work will be done by the 3rd week in April. Then, we could make a portion of the actual class 5 yard available for trailer storage without any addition costs. It will be up to you and the City to determine if the money being spent on the temporary storage area makes sense for the what we currently estimate to be a 5-6 week period. let me know your decision ASAP. Thanks, . Chuck Bainey Project Manager The Bainey Group, Inc. 763-557-6911 612-618-5713 2/25/2006 Page 4 of 4 chuckb@bainey.com Built as if it were our own...@ This message is intended for the sole use of the individual and entity to whom it is addressed, and may contain information that is privileged, confidential and exempt from disclosure under applicable law. Any unauthorized review, use, disclosure or distribution of this email message, including any attachment, is prohibited. If you are not the intended recipient, please advise the sender by reply email and destroy all copies of the original message. Thank you. 2/2512006 . . . . . . CONTRACT FOR PRIVATE DEVELOPMENT Between THE HOUSINC }1ND REDEVELOP1\fENTECONOMIC DEVELOPMENT AUTHORITY OF FARMINGTON, MINNESOTA And JOSEPH M. HEINEN At Regarding Property located in Dakota County, Minnesota Street Address: 201 4th Street, Farmington! MN PID 14-77000-061-27 This Instrument Drafted by: Housing ""...nEl RedevelopmentEconomic Develonment Authority of Farmington 325 Oak Street Farmington, MN 55024 (651) 463-7111 CONTRACT FOR PRIVATE DEVELOPMENT . THIS AGREEMENT, effective the _day of , ~2006 by and between the Housing and RedevelopmentEconomic Develooment Authority of Farmington, a body corporate and politic under the laws of the State of Minnesota, having its principal office at 325 Oak Street, Farmington, MNMinnesota 55024 ("HRAEDA"), and JOSEPH M. HEINEN, a Minnesota resident, simde individual. residinl! at 1200 Willowbrook Drive, Wayzata-MN. Minnesota 55391 ("Developer"). WITNESSETH WHEREAS, the City of Farmington ("City") has granted authority for the creation and management of a HONsing and Rede'lelopmentEconomic Develooment Authority (the "HRAEDA"); and WHEREAS, the City has adopted HRi\. guidelines outlining the objeotives and operation ofthe HR.:\.; and WHERK-\8, in order to aehieve these objeotives of removing blighting influences in the cOl11ffiWlity and inoreasing the availability of housing, the City and the HRA have determined to aooess and pro~/ide substantial aid and assistance to de'lelopers within the City; and WHEREL-\8, the Developer has proposed a development that meets the HRAEDA guidelines and will promote and carry out the objectives for which the HRAEDA has been . created, that will be in the vital best interests of the City and the health, safety and welfare of its residents and is in accord with the public purposes and provisions of the applicable state and local laws and requirements under which development through the HRAEDA has been undertaken and may be being assisted';"~ WHEREAS. Develooer oroooses that the EDA aoorove the sale of the real orooertv hereinafter described to Develooer for less than its fair market value. in lil!ht of the costs that have been and will be incurred bv the Develooer in connection with environmental issues associated with the orooertv: NOW, THEREFORE, in consideration of the mutual covenants and obligation of the HRAEDA and the Developer, each party does hereby represent, covenant and agree with the other as follows: ARTICLE I. DEFINITIONS. EXHIBITS. RULES OF INTERPRETATION Section 1.1. Definitions. In this Agreement, the following terms have the meaning given below unless the context clearly requires otherwise: (a) City, The City of Farmington, Minnesota. . . . . (b) Developer. Joseph M. Heinen. (c) Development. The Property and the Improvements to be located thereon according to the terms of this Agreement. (d) IIRAEDA. The Housing and RedevelopmentEconomic Develooment Authority of Farmington, Minnesota. (e) Homeowner. A purchaser for value of the Property but not including any individual, corporation or entity related to the Developer. (1) HausiD~ aDd RedevelapmeDtEconomic Develooment Authorities Act (HAAEDA Act). Minnesota Statutes Sections 469.001469.090 through 469.047.469.108. (g) Improvements. The movement of a single family home from 315 Elm Street, Farmington, MN-Minnnesota 55024 to the Property and construction of any site improvements on the Property by the Developer required for the installation ofthe home. (h) l\ilart!!a~e aDd Halder. The term "mortgage" shall include the mortgages referenced in Article VI of this Agreement and any deed of trust or other instrument creating an encumbrance or lien upon the Property of any part thereof, as security f-or a loan. The term "holder" in reference to a mortgage includes any insurer or guarantor (other than the Deyeloper) of any obligation or condition secured by such mortgage or deed of trust. (i) Property. The real property located in Dakota County, Minnesota, and legally described as (201 4th 8treet, Farmington MN 55024; Pill 14 77999 061 26)~ The North Ei~tv-four (84) feet of Lot Six (6) and the North Ei~tv-four (84) feet of the West Half (W ~) of Lot Five (5), in Block Twentv-seven (27), in the Town (now City) of Farminlrton. accordimr to the olat thereof now on file and of record in the office of the County Recorder within and for said Countvand State. (ji) Unavoidable Delavs. Delays which are the direct result of strikes, labor troubles, fire or other casualty to the Improvements, litigation commenced by third parties which results in delays or acts of any federal, state or local government, except those contemplated by this Agreement, which are beyond the control of the Developer. Section 1.2. Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: A. B. Form of Certificate of Completion Form of Quit Claim Deed Section 1.3. Rules of Interpretation. . (a) This Agreement shall be interpreted in accordance with and governed by the laws ofthe State of Minnesota. (b) The words "herein" and "hereof' and words of similar import, without reference to any particular section or subdivision refer to this Agreement as a whole rather than any particular section or subdivision hereof. (c) References herein to any particular section or subdivision hereof are to the section or subdivision of this Agreement as originally executed. (d) Any titles of the several parts, articles and sections of this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of its provisions. ARTICLE II. REPRESENTATIONS AND UNDERTAKINGS Section 2.1. By the Developer. The Developer makes the following representations and undertakings: (a) The Developer has the legal authority and power to enter into this Agreement and has duly authorized the execution, delivery and performance of this Agreement; . (b) The Developer has the necessary equity capital or will obtain commitments for financing necessary for undertaking the Improvements; (c) The Developer will install the Improvements in accordance with the terms of this Agreement, and all local, state and federal laws and regulations; (d) The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws and regulations which must be obtained or met before the Improvements may be installed; and Section 2.2. Bv the HRAEDA. The HRAEDA makes the following representations as the basis for the undertaking on its part herein contained: (a) The HAAEDA is authorized by law to enter into this Agreement and to carry out its obligations hereunder; and (b) The IIRAEDA will, in a timely manner, subject to all notification requirements, review and act upon all submittals and applications of the Developer and will cooperate with the . efforts of Developer to secure the granting of any permit, license, or other approval required to . . . allow the installation of the Improvements; provided, however, that nothing contained in this Section 2.2(b) shall be construed to limit in any way the reasonable and legitimate exercise of the HAAEDA discretion considering any submittal or application. ARTICLE III. ACQUISITION OF PROPERTY; CONVEYANCE TO DEVELOPER Section 3.1. Sale of Property to Developer. The HRAEDA agrees to sell the Property to the Developer and the Developer agrees to purchase the Property from the HAAEDA in "as-is" condition. The HAAEDA agrees to convey the Property to the Developer by Quit Claim Deed in the general form of Exhibit B. The HAAEDA's deed to the Developer will be subject to the Right of Reverter required in Section 8.3 of this Agreement. The purchase price for the Property will be the greater ofthe following amounts: ta)-~If Dakota County agrees that the market value or sale price of the Property can be reduced to reflect the costs that have been and will be incurred by the Developer in addressing environmental ef-Contamination problems associated with the Property, and if Dakota County concludes that said costs exceed the market value of the Property, then the purchase price of the propertyProoertv will be $1.00. ~!hlJn all other circumstances, the purchase price of the Property will be the minimum net proceeds that Dakota County will require the HRAEDA to return to Dakota County following the sale ofthe propertyProDertv to the Developer. Section 3.2. Title and Examination. Developer, at its own expense, may obtain a current commitment for the issuance of a 1987/1990 AL T A Form B owner's policy of title insurance (the "Commitment") issued by Title Company acceptable to Developer ("Title") in the amount of the fair market value of the Property, committing to insure that Developer will have good and marketable title to the Property, free of any and all standard and other exceptions to title, except matters to which Developer may consent in writing. Section 3.3. Closinl!. Closing on the Property will take place on or before July 31, 2006 or such other date as may be agreed to by the parties in writing ("Closing Date"). At closing, the Developer will pay the cash purchase price (computed in accordance with Section 3.1 hereof) and will provide the HAAEDA with a Letter of Credit in the amount of $10,000, as detailed in Section 4.5 of this Agreement. At closing the HRAEDA shall pay (a) the amount of any deed tax due upon the recording or filing of the deed to be delivered by the HRAEDA to the Developer, and (b) the amount of any recording fees for the deed and this Agreement. Except as stated herein. at closing, the Developer shall pay all closing costs. Section 3.4. Taxes and Special Assessment. Real estate taxes, if any, will be prorated between the HRAEDA and the Developer as of the date of closing. +he--Developer will pay any levied and/or pending special assessments at the time of closing. Section 3.5. Soil Conditions and Hazardous Wastes. The Developer acknowledges that hazardous wastes, including non-petroleum contamination, have been found through environmental testing of the Property. The Developer acknowledges that the HRAEDA makes no representations or warranties as to the conditions of the soils on the Property, its fitness for installation of the hnprovements or any other purpose for which the Developer may make use of the Property, or regarding the presence of hazardous wastes on the site. The HAAEDA will allow reasonable access to the property for the Developer to conduct such tests regarding soils conditions and hazardous wastes as the Developer may desire. Permission to enter the Property to conduct such tests must be given in writing under the terms and conditions established by the HRAEDA. . Section 3.6. CentingeBeiesContinl!encies. The obligations of the HRAEDA under this Agreement are contingent upon each of the following occurring prior to the Closing Date: a) The HRAEDA obtaining a deed to the Property from the State; b) The State and/or County approving the Purchase Price for the Property under the terms ofthis Agreement with anv reductions; c) Issuance of all necessary letters of assurance deemed necessary by the HRAEDA, limiting the HRAEDA's liability for environmental contamination of the Property. . If any ofthe contingencies have not been satisfied on or before the Closing or the dates listed above, the HAAEDA may terminate this Agreement by giving written notice to the Developer on or before the Closing Date or the HRAEDA may extend the period oftime for the satisfaction ofthe contingencies set forth above for any additional period of ninety (90) days by giving written notice to the Developer prior to the Closing Date. Ifthe HRAEDA terminates this Agreement, except as otherwise provided herein, neither party shall have any further rights or obligations under this Agreement and the Developer shall execute and deliver to the HAAEDA a Quit Claim, which Quit Claim Deed shall memorialize the termination of this Agreement. Section 3.7. Release and Indemnification. a) Definitions. "Environmental Laws" shall mean all federal and state laws and rel!U.1ations (as mav be amended from time to time) relatinQ: to hazardous waste. hazardous substances. oollutants. contaminants. asbestos and oetroleum nroducts as those terms are defined in the Comorehensive Environmental Resnonse. Comoensation and Liability Act of 1980 (42 D.S.C. ~ 9601(14)) and as defined in Minnesota Statutes Chaoters 115B and IISC. . . "Hazardous Substances" shall mean any hazardous substance. hazardous waste. oollutant or contaminant as those terms are defined in Minnesota Statutes Chaoter 115B or as defined in 42 U.S.C & 9601(14), b) Indemnities. Develooer aQfees to unconditionally and absolutely indemnify and hold the EDA and City of Farmimrton. its officers. emolovees. contractors and assilIDs. harmless from and al!ainst any loss. cost. liability. damal!e. claim. or exoense. includinl! reasonable attorneys' fees. suffered or incurred bv Develooer in connection with the Subject Prooertv at any time. under or on account of. or as a result of. (a) any Environmental Laws (whether now existinl! or hereafter enacted or oromull!ated. as they may be amended from time to time). (b) any oresence. release. or threat of release of Hazardous Substances. (c) the oresence of asbestos or asbestos-containinl! materials. PCB's. radon l!as. or urea formaldehyde foam insulation at the Subject Prooertv. (d) clean-uo costs. (e) liability for oersonal iniury or orooertv damal!e or damal!e to the environment. (ft any diminution in the value of the Subiect Prooertv. and (l!) fines. oenalties and ounitive damal!es. It is understood that the oresence and/or release of Hazardous Substances referred to in this Section 3.7 oertains to a oresence and/or release bel!inninl! or first existinl! orior to conveyance of the Subiect Prooertv to Develooer. whether or not the discovery of said oresence and/or release occurs before or after such conveyance. . Develooer further aQfees that the EDA or the City of Farmimrton shall not assume or have any liability or oblil!ation for loss. damal!e. fines. oenalties. claims. or duty to cleanuo or disoose of Hazardous Substances relatinl! to the Subiect Prooertv. as a result ofanv conveyance oftitle to the Subiect Prooertv to the EDA or otherwise or as a result of any insoections or anvother actions made or taken bv the EDA on the Subiect Prooertv. Develooer aQfees to remain fullv liable and shall indemnify and hold harmless the EDA and the City of Farmimrton from any costs. exoenses. clean-uo costs. waste disoosal costs. litil!ation costs. fines and oenalties. includinl! without limitation any costs. exoenses. oenalties and fines within the meaninl! of any Environmental Laws. Develooer shall assume the burden and exoense of defendinl!. with counsel reasonably satisfactory to the EDA. al!ainst alllel!al and administrative oroceedinl!s arisinl! out of the occurrences set forth in this AQfeement. Develooer shall Day when due any iudlID1ents al!ainst the EDA and/or the City Farmimrton which have been indemnified under this Indemnification AQfeement and which are rendered bv a final order or decree of a court of comoetent iurisdiction from which no further aooeal may be taken or has been taken within the aoolicable aooeal oeriod. In the event that such oavrnent is not made. the EDA. in its sole discretion. may Day any such iudlID1ents. in whole or in oart. and look to Develooer for reimbursement oursuant to this AQfeement. or may oroceed to file suit al!ainst Develooer to comoel such oavrnent. c) Waiver ofRil!ht to Trial bv Jurv. Develooer waives any ril!ht it may have to trial bv jurv in any action to enforce or otherwise relatinl! to this AQfeement. . d) Duration. This AQfeement shall survive a foreclosure or the takinl! of a deed in lieu of foreclosure. the discharl!e of Develooer's oblil!ations under this Al!reement. or any transfer of the Subject Prooertv. e) Notice bv Indemnitor. Develooer shall. oromotlv after obtaininl! knowledl!e . thereof. advise EDA in writinl! of (a) any l!overnmental or rel!Ulatorv actions instituted or threatened in writinl! under any Environmental Law affectinl! the Subject Prooertv or the matters indemnified hereunder. includinl! without limitation any notice of insoection. abatement. or non- comoliance: (b) all claims made or threatened in writinl! bv any third oartv al!ainst the EDA. Develooer or the Subject Prooertv relating: to damal!e. contribution. cost recoverv. comoensation. loss. or injury resultinl! from the oresence. release. threat or release. or discharl!e on or from the Subiect Prooertv of any hazardous materials: and (c) Develooer's discoverv of the oresence of Hazardous Substances on the Subject Prooertv or on any real orooertv adjoininl! or in the vicinity of the Subject Prooertv. or of any occurrence or condition on any such orooertv which could subject Indemnitor or the Subject Prooertv to a claim under any Environmental Law or to any restriction on ownershio. occuoancv. transferability. or use ofthe Subject Prooertv under any Environmental Law. f) Pavment of ED A's Exoenses. If the EDA retains counsel for advice or other reoresentation (a) in any litil!ation. contest. disoute. suit. or oroceedinl! relatinl! to any of the occurrences for which indemnification is !riven in this Al!reement or otherwise relatinl! in any way to this Al!reement and the indemnities described herein. or (b) to enforce the oblil!ations hereunder. the attorneys' fees arisinl! from such services and all related exoenses and court costs shall be oaid bv Develooer uoon demand of the EDA. [To be added prior to exeeutioB.] . l!) No Waiver. Develooer's oblil!ations hereunder shall in no way be imoaired. reduced. or released bv reason of (a) EDA's omission or delay to exercise any ril!ht described herein. or (b) any act or omission of the EDA in connection with any notice. demand. warninl!. or claims rel!ardinl! violations of codes. laws. or ordinances l!overninl! the Subject Prooertv. ARTICLE IV. SITE IMPROVEMENTS Section 4.1. Improvements. The Developer shall move the single family home currently located at 315 Elm Street, Farmington, MN--Minnesota 55024 ("315 Elm Home") to the Property and construct any necessary improvements for installation of the home on the Property (including the completion of any required sodding, seeding or landscaping) and shall maintain, preserve and keep the Improvements in good repair and condition until sale of the Property to the Homeowner. Section 4.2. Buildim! Plans. No permit to move the single family home or building permit will be issued by the City unless the plans for movement of the home and for improvements to the Property comply with all local, state and federal regulations. The City and HAAEDA shall, within 25 days of receipt of plans submitted in application for a permit to move . the home or a building permit, review such Plans to determine whether the foregoing . . . requirements have been met. If the City or HAAEDA determines such plans to be deficient, it shall notify the Developer in writing stating the deficiencies. Section 4.3. Schedule. Subject to Unavoidable Delays, the Improvements shall be completed prior to September 30, 2006. All construction shall be in conformity with any CitylHRAEDA approved plans. If at any time prior to completion of installation the HAAEDA has cause to believe that the Developer will be unable to complete installation of the Improvements in the time permitted by this Section 4.3, it may notify the Developer and demand assurances from the Developer regarding the Developer's construction schedule. If such assurances are not forthcoming or are deemed by the HRAEDA at its sole discretion to be inadequate, the ImAEDA may declare an Event of Default and may avail itself of any of the remedies specific in Section 8.2 of this Agreement. Section 4.4. Certificate of Completion. Promptly after notification by the Developer of completion of installation of the Improvements, the City and ImAEDA shall inspect the installation to determine whether the Improvements have been completed in accordance with the plans, local state and federal laws and the terms of this Agreement, including the date of the completion thereof. In the event that the City and ImAEDA are satisfied with the Improvements, the City shall furnish the Developer with a Certificate of Completion in the form attached hereto as Exhibit A. Such certification by the City shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligation of the Developer to install the Improvements. The certification provided for in this Section 4.4 shall be in recordable form. If the City shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the City or HRAEDA shall within 15 days of such notification provide the Developer with a written statement, indicating in adequate detail in what respects the Developer has failed to complete the Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the City or HRAEDA, for the Developer to take or perform in order to obtain such certification. Before the issuance of a Certificate of Completion, conditional or limited occupancy of the Improvements may be permitted under such terms as may be specified by the City. Section 4.5. Failure to Construct. In the event that the Improvements are not completed as provided in Section 4.3 of this Agreement or in the event of any damage to City of Farmington Property during the relocation of the home contemplated under this Agreement, the Developer shall be liable to the ImAEDA for the amount ofthe City or HRAEDA's expenses as liquidated damages and/or damages. As security for the purchase price of the Property and the obligations created in this Section 4.5, the Developer shall deliver to the HAAEDA at closing, an irrevocable Letter of Credit or other security satisfactory to the ImAEDA in the amount of $10,000. The security shall be retained by the HRAEDA until the CertificateCertificate of Completion has been issued. Upon issuance by the HRAEDA of the Certificate of Completion, the security will be returned to the Developer and all liability under this Section 4.5 shall terminate; provided, however that the HAAEDA may choose to retain such portion of the security or be provided new security as it deems necessary in order to ensure completion of landscaping or other aspects of the Improvements which may have been delayed due to weather . or seasonal conditions. If at any time prior to the issuance of the Certificate of Completion, the HRAEDA determines that, for whatever reason the amount of security is inadequate, the HRAEDA shall notify the Developer of such determination, and the Developer shall have 30 days from the date of notification to furnish new security in the original amount less any drafts previously made against it. The provisions of this Section 4.5 shall not be construed to prejudice or limit any additional rights ofthe HRAEDA under Article vm of this Agreement. ARTICLE V. INSURANCE Section 5.1. Insurance. The Developer will provide and maintain or cause to be provided and maintained at all times during the installation of the Improvements and, from time to time at the request of the HRAEDA, furnish the HRAEDA with proof of payment of premiums on: (a) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner's Contractor's Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used); and (b) Workers' compensation insurance, with statutory coverage. . The policies of insurance required pursuant to clauses (a) and (b) above shall be in form and content satisfactory to the HRAEDA and shall be placed with financially sound and reputable insurers licensed to transact business in Minnesota. The policy of insurance delivered pursuant to clause (a) above shall contain an agreement of the insurer to give not less than thirty (30) days advance notice to the HRAEDA in the event of cancellation of such policy or change affecting the coverage thereunder. Section 5.2. Modification. ill order to facilitate obtaining financing for the installation of the Improvements, the HRAEDA agrees to modify this Article V to accommodate the interests of the Developer and the Holder of the first Mortgage; provided, however, that the HRAEDA determines, in its reasonable judgment, that any such modification will adequately protect the legitimate interests and security of the City and HRAEDA with respect to the Improvements. . . . . ARTICLE VI. FINANCING Section 6.1. Financinl!. Within 15 days of the date of execution of this Agreement, the Developer shall submit to the HRAEDA evidence of financing for the installation of the Improvements in compliance with the provisions of Section 2.1(b) of this Agreement. If the HRAEDA finds that the financing is adequate in amount to provide for the installation of the Improvements, the HRAEDA shall notifY the Developer of its approval. If the HRAEDA rejects the evidence of financing as inadequate, the Developer shall have 30 days or such additional period of time as the Developer may reasonably require from the date of such notification to submit evidence of financing and construction loan administration satisfactory to the HRAEDA. If the Developer fails to submit such evidence or fails to use due diligence in pursuing financing, the HRAEDA may terminate this Agreement and both parties shall be released from any further obligation or liability hereunder, except for the City and HRAEDA's remedies pursuant to Section 4.5 of this Agreement. Section 6.2. Limitation upon Encumbrance of Property. Prior to the issuance of the Certificate of Completion, neither the Developer nor any successor in interest to the Property or any part thereof shall engage in any financing or any other transaction creating any Mortgage or other encumbrance or lien upon the Property, whether by express agreement or operation of law, or suffer any encumbrance of lien to be made on or attached to the Property other than the liens or encumbrances attached for the purposes of obtaining funds to the extent necessary for making the Improvements without the prior written approval of the HRAEDA. The HRAEDA shall not approve any Mortgage that does not contain terms that conform to the terms of this Article VI and Section 8.2 of this Agreement. Section 6.3. COpy of Notice of Default to Lender. Whenever the HRAEDA shall deliver any notice or demand to the Developer with respect to any Event of Default by the Developer in its obligations or covenants under this Agreement, the HAAEDA shall at the same time forward a copy of such notice or demand to each Holder of any Mortgage authorized by the Agreement at the last address of such Holder shown in the records of the HAAEDA. Section 6.4. Lender's Option to Cure Defaults. After notification of any Event of Default referred to in Section 8.1 ofthis Agreement, each such Holder, insofar as the rights of the HRAEDA are concerned, shall have the right, at its option, to cure or remedy such Event of Default, or such Event of Default to the extent that it relates to the part of the Property covered by its Mortgage, and to add the cost thereof to the Mortgage debt and the lien of its Mortgage; provided that if the Event of Default is in respect to construction of the Improvements, nothing contained in this Section 6.4 or any other section of this Agreement shall be deemed to permit or authorize such Holder, either before or after foreclosure or action in lieu thereof, to undertake or continue the installation of the Improvements or completion of the Development beyond the extent necessary to conserve or protect the Improvements or construction already made without first having expressly assumed the obligation to the HRAEDA, by written agreement, to complete, in the manner provided in this Agreement, the Development or the part thereof to . which the lien or title of such Holder relates. Any such Holder who shall promptly complete the Development or applicable part thereof shall be entitled, upon written request made to the HR:AEDA, to certification by the HRAEDA to such effect in the manner provided in Section 4.4 of this Agreement, and any such certificate shall, if so requested by such Holder, mean and provide that any remedies or rights that the HR:AEDA shall have or be entitled to because of failure of the Developer or any successor in interest to the Property, or any part thereof, to cure or remedy any Event of Default with respect to the construction of the Improvements on other parts or parcels of the Property, or because of any other default in or breach of the Agreement by the Developer or such successor, shall not apply to the Property to which such certification relates. Section 6.5. IlRAEDA's Oution to Cure Default. In the event the Holder of financing authorized pursuant to this Article VI sends a notice of an Event of Default to the Developer, the Holder shall also use its best efforts to notify the HR:AEDA in writing of: (a) the fact of the default; (b) the elements of the default; and (c) the actions required to cure the default. If the Developer fails to cure the Event of Default in a timely manner, the HRAEDA shall have 30 days from the expiration of such cure period to cure the default. If the HRAEDA cures the default as set forth above, the Holder shall pursue none of its remedies under the financing based upon the said default of the Developer. In the event of a transfer of the title to the Property to a third party approved by the HAAEDA and Holder, which approval cannot be unreasonably withheld, regardless of whether required to cure an Event of Default under the financing unless the security . of the Holder has, in fact, been impaired by said transfer. In the event of such approved transfer, which does not impair the security of the Holder, the Holder shall permit the transferee to assume all outstanding obligations and receive all remaining disbursements under the financing. Section 6.6. Subordination. In order to facilitate obtaining financing for the construction of the Improvements by the Developer, the HAAEDA shall agree to modify this Agreement in the manner and to the extent it deems reasonable, upon request by the financial institution and the Developer. ARTICLE VII. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 7.1. Reuresentation as to Redeveloument. The Developer represents and agrees that its undertakings pursuant to the Agreement are for the purpose of development of the Property and not for speculation in land holding. The Developer further recognizes that, in view of the importance of the Development to the general welfare of Farmington and the substantial financing and other public aids that have been made available by the HR:AEDA and City for the purpose of making the Development possible, the qualification and identity of the Developer are of particular concern to the HRAEDA. The Developer further recognizes that it is because of such qualifications and identity that the HRAEDA is entering into this Agreement, and, in so . . . . doing, is further willing to rely on the representations and undertakings of the Developer for the faithful performance of all undertakings and covenants agreed by the Developer to be performed. Section 7.2. Prohibition ae:ainst Transfer of Property and Assie:nment of Ae:reement. For the reasons set out in Section 7.1 of this Agreement, the Developer represents and agrees that, except for associating with other individuals or entities, prior to the issuance of the Certificate of Completion by the City: (a) Except only by way of security for, and only for the purpose of obtaining financing necessary to enable the Developer or any successor in interest to the Property, or any part thereof, to perform its obligations with respect to the Development under this Agreement, and any other purpose authorized by this Agreement, the Developer, except as so authorized, has not made or created, and that it will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval ofthe HRAEDA; and (b) The City and HRAEDA shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such approval under this Section 7.2 that: (i) any proposed transferee shall have the qualifications and financial responsibility, as determined by the City or HRAEDA, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer or, in the event the transfer is of or relates to part of the Property, such obligations to the extent that they relate to such part; (ii) any proposed transferee, by instrument in writing satisfactory to the MRAEDA and in form recordable among the land records, shall for itself and its successor and assigns, and specifically for the benefit of the HRAEDA, have expressly assumed all of the obligations of the Developer under this Agreement and agreed to be subject to such obligations, restrictions and conditions or, in the event the transfer is of, or relates to part of the Property, such obligations, conditions, and restrictions to the extent that they relate to such part; provided, that the effect that any transferee of, or any other successor in interest whatsoever to, the Property or any part thereof, shall, for whatever reason, not have assumed such obligations or agree to do so, shall not, unless and only to the extent otherwise specifically provided in the Agreement or agreed to in writing by the RRAEDA, relieve or except such transferee or successor from such obligations, conditions, or restrictions, or deprive or limit the City or HRAEDA of or with respect to any rights or remedies or controls with respect to the Property of the construction of the Improvements; it being the intent of this Section 7.2, together with other provisions of this Agreement, that to the fullest extent permitted by law and equity and excepting only in the manner and to the extent specifically provided otherwise in the Agreement no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the City or HRAEDA, or any rights or remedies or controls provided in or resulting from this Agreement with respect to the Property and the construction of the Improvements that the HRAEDA or City would have had, had there been no such transfer or change; and (iii) there shall be submitted to the HRAEDA for review all instruments and other legal documents involved in effecting transfers described herein, and if approved by the HRAEDA, its approval shall be indicated to the Developer in writing. . In the absence of specific written agreement by the HAAEDA to the contrary, no such transfer or approval by the HAAEDA thereof shall be deemed to relieve the Developer from any of its obligations with respect thereto. The sale of the Development to the Homeowner shall not be deemed to be a transfer within the meaning of this Section 7.2. Section 7.3. Approvals. Any approval required to be given by the City or HRAEDA under this Article vn may be denied only in the event that the HAAEDA reasonably determines that the ability of the Developer to perform its obligations under this Agreement will be materially impaired by the action for which approval is sought. ARTICLE VIII. EVENTS OF DEFAULT Section 8.1. Events of Default Defined. The following shall be deemed Events of Default under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the context otherwise provides, anyone or more of the following events: (a) Failure by the Developer to pay when due the payments required to be paid or secured under any provision of this Agreement; . (b) Failure by the Developer to observe and substantially perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder, including the time for such performance; (c) If the Developer shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Property; (d) If the Developer, on a petition in bankruptcy filed against it, be adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order of decree appointing, without the consent of the Developer, a receiver of the Developer or of the whole or substantially all of its property, or approve a petition filed against the Developer seeking reorganization or arrangement of the Developer under the federal bankruptcy laws, and such adjudication, order or decree shall not be vacated or set aside or stayed within 60 days from the date of entry thereof; or ( e) If the Development is in default under any Mortgage and has not entered into a workout agreement with the Mortgagee. Section 8.2. Remedies on Default. Whenever any Event of Default occurs, the . HRAEDA may, in addition to any other remedies or rights given the HRAEDA under this . . . Agreement, take anyone or more of the following actions following written notice by the HRAEDA to the Developer as provided in Section 9.5 of this Agreement: (a) suspend its performance under this Agreement until it receives assurances from the Developer, deemed reasonably adequate by the HRAEDA, that the Developer will cure its default and continue its performance under this Agreement; (b) cancel or rescind this Agreement; (c) withhold the Certificate of Completion; or (d) take whatever action at law or in equity may appear necessary or desirable to the HRAEDA to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement; provided, however, that any exercise by the HRAEDA of its rights or remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights or interest provided in this Agreement for the protection of the Holders of a Mortgage; and provided further that should any Mortgagee succeed by foreclosure of the Mortgage or deed in lieu thereof to the Developer's interest in the Property, it shall, notwithstanding the foregoing, be obligated to perform the following obligations of the Developer only to the extent that the same have not therefore been performed by the Developer: Sections 3.3 and 3.6; Sections 4.1 through 4.5; Sections 5.1 and 5.2. Said Mortgagee, upon foreclosure or taking of a deed in lieu, shall have no obligations pursuant to this Agreement other than as specifically set forth in the foregoing sentence. Section 8.3. Reinvestin2 Interest in HRt\EDA upon Happenin2 of Event of Default Subsequent to Conveyance of Property to Developer. In the event that subsequent to the closing or the sale of the Property to the Developer and prior to the issuance of the Certificate of Completion: (a) the Developer fails to begin or complete installation of the Improvements in conformity with this Agreement, and such failure is not due to Unavoidable Delays; (b) the Developer, after commencement of the installation of the Improvements, defaults in or violates obligations with respect to the construction of the Improvements, including the nature and the date for the completion thereof, or abandons or substantially suspends installation work, and such act or actions is not due to Unavoidable Delays; (c) the Developer or successor interest fails to pay real estate taxes or assessments on the Property or any part thereof when due, or places thereon any encumbrance or lien unauthorized by this Agreement, or suffers any levy or attachment to be made, or any supplier's or mechanic's lien, or any other unauthorized encumbrance or lien to attach; (d) there is, in violation of Article VII of this Agreement, any transfer of the Property or any part thereof; or (e) the Developer fails to comply with any of its covenants under this Agreement; . then the HRAEDA shall have the right upon 30 days written notice to Developer and the Developer's failure to cure within such 30 day period to re-enter and take possession of the Property and to terminate and revest in the HRAEDA the interest of the Developer in the Property; provided, however, that such revestiture of title shall be subject to the lien of any prior encumbrance permitted under this Agreement. Section 8.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to the HRAEDA is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the lIAAEDA or the Developer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article VIll. Section 8.5 No Additional Waiver Implied bv One Waiver. In the event of the occurrence of any Event of Default by either party, which Event of Default is thereafter waived by the other party, such waiver shall be limited to the particular Event of Default so waived and shall not be deemed to waive any other concurrent, previous or subsequent Event of Default. . ARTICLE IX. ADDITIONAL PROVISIONS Section 9.1. Conflict of Interests: Representatives Not Individually Liable. No HAAEDA or City officer who is authorized to take part in any manner in making this Agreement in his or her official capacity shall voluntarily have a personal financial interest in this Agreement or benefit financially there from. No member, official, or employee of the RRAEDA or City shall be personally liable to the Developer, or any successor in interest, for any Event of Default by the HAAEDA or City or for any amount which may become due to the Developer or successor or on any obligations under the terms of this Agreement. Section 9,2. Non-Discrimination. The provisions of Minnesota Statutes Section 181.59, which relate to civil rights and non-discrimination, and any affirmative action program of the City shall be considered a part of this Agreement and binding on the Developer as though fully set forth herein. Section 9.3. Notice of Status and Conformance. At such time as all of the provisions ofthis Agreement have been fully performed by the Developer, the HAAEDA, upon not less than five days prior written notice by the Developer, agrees to execute, acknowledge and deliver, . without charge to the Developer or to any person designated by the Developer, a statement in . . . writing in recordable form certifying the extent to which this Agreement has been performed and the obligations hereunder satisfied. Section 9.4. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is sent by mail, postage prepaid, return receipt requested or delivered personally: (a) As to the HRAEDA: Executive Director Housing and RedevelopmentEconomic Develooment Authority of Farmington 325 Oak Street Farmington, MN 55024 (b) As to the Developer: Joseph M. Heinen 1200 Willowbrook Dr. Wayzata~ MN 55391 or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section 9.5. Section 9.5. Provisions Not Mereed With Deed. None of the provisions of this Agreement is intended to or shall be merged by reason of any deed transferring any interest in the Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 9.6. Counterparts. This Agreement may be simultaneously executed in any number of counterparts, all of which shall constitute one and the same instrument. IN WITNESS WHEREOF, the HRAEDA has caused this Agreement to be duly executed in its name and on its behalf and its seal to be hereunto duly affixed and the Developer has caused this Agreement to be duly executed as of the day and year first above written. THE HOUSINC AND REDEVELOP~fENTECONOMIC DEVELOPMENT AUTHORITY OF FARMINGTON, MINNESOTA By Its Chairperson By Its Executive Director DEVELOPER By Its JoseDh M H . . emen . . . . . . STATE OF MINNESOTA ) ) SS ) COUNTY OF The foregoing instrument was acknowledged before me this day of , ~2006. by and , the Chairperson and Executive Director, respectively, of the Housing and Rede'lelopmentEconomic Develooment Authority of Farmington, Minnesota (HRAEDA), a public body corporate and politic under the laws of Minnesota, on behalf ofthe HR.\EDA. Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF DAKOTA- ) The foregoing instrument was acknowledged before me this , 2005, by resident of the State ofMirmesota. . 2006. by Joseoh M. Heinen. a sine:le oerson. day of , a Notary Public EXHIBIT A . FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that , has fully and completely complied with its obligations under Article IV of that document entitled "Contract for Private Development", between the Housing and Red6\'elopmentEconomic Develonment Authority of Farmington, Minnesota and dated , filed as Document No. with respect to the construction of the approved construction plans at , legally described as and is released and forever discharged from its obligations to construct under such above-referenced Article. DATED: THE HOUSING AND REDEVELOPMENTECONOMIC DEVELOPMENT AUTHORITY OF FARMINGTON, MINNESOTA By Its Chairperson . By Its Executive Director STATE OF MINNESOTA ) ) SS COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this _ day of ,~2006.by and the Chairperson and Executive Director of the Housing and RedevelopmentEconomic Develoument Authority of Farmington. Minnesota, a public body corporate and politic under the laws ofthe State of Minnesota on behalf ofthe public body corporate and politic. Notary Public This instrument was drafted by: Housing and RedevelopmentEconomic Develoument Authority of Farmington 325 Oak Street Farmington, MN 55024 . EXHIBIT B . QUIT CLAIM DEED STATE DEED TAX DUE HEREON: $ Dated: , ~2006 FOR VALUABLE CONSIDERATION, the HOHsiBg amI ReElevelopmeBtEconomic Develonment Authority of Farmington, a public body corporate and politic under the laws of the State of Minnesota, Grantor, hereby conveys and quitclaims to Joseph M. Heinen, a . sinl!le verson, Grantee, real property in Dakota County, Minnesota, described as follows: Lot _, Block _, The North Eil!htv-four (84) feet of Lot Six (6) and the North Eil!htv-four (84) feet of the West Half (W Y;) of Lot Five (5), in Block Twentv-seven (27), in the Town (now City) of Farminl!ton. accordinl! to the vlat thereof now on file and of record in the office of the County Recorder within and for said County and State. together with all hereditaments and appurtenances belonging thereto, subject to all the terms and conditions ofthat certain Contract for Private Development between Grantor and Grantee dated , ~~ which is being recorded contemporaneously herewith. THE GRANTOR CERTIFIES THAT THE GRANTOR DOES NOT KNOW OF ANY WELLS ON THE ABOVE DESCRIBED REAL PROPERTY. . . . . AFFIX DEED TAX STAMP HERE HOUSING i\ND REDEVELOPMENTECONOMIC DEVELOPMENT AUTHORITY OF FARMINGTON BY: Its Chairperson BY: Its Executive Director STATE OF MINNESOTA ) (SS COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , ~2006 by and , the Chairperson and Executive Director, respectively, of the Housing and RedevelopmentEconomic Develooment Authority of Farmington, a public body corporate and politic under the laws of the State of Minnesota, on behalf of said public body. Notary Public Tax Statements for the real property described in this instrument should be sent to: Joseph M. Heinen 1200 Willowbrook Drive Wayzata,! MN 55391 THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association Attorneys at Law 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 ./ . ~'.'~:::~:;;~:;~~-~;~iJ-~~I~;-:~- Dakota Electric Association cordially invites you to attend an annual celebration recognizing the achievements of our communities. Wednesday, March 8, 2006 4:30 to 6:30 p.m. Program begins at 5 p.m. Royal Cliff 2280 Cliff Road, Eagan, Minnesota Refreshments will be served. Cash bar · Door prizes RSVP by February 27 Call 651-463-6387 or 1-800-874-3409 ext. 387 or e-mail cwerner@dakotaelectric.com . . mBc ASSOCIATIOII -~~._~ For those stntutorily probibited ftom ,"uiving complimmtnry ftod nnd Ixvernges, tbe unlue of the ftod provided equnls $6. . . . A. 2/27/06 [FARMINGTON ECONOMIC DEVELOPMENT PLANI Proposed Timetable (Proposed Discussion Topics Shown in Blue) 2/27/06 Economic Development Authority Regular Meeting -- Timetable; Task Force Composition; Parameters of Analysis (Geographic and Non-Geographic) Special Meeting - Use of Consultants; Marketing; Business Retention & Expansion; Financial Incentives; Partnerships Regular Meeting - Study Areas A,B,C,D,M,G,I Special Meeting - Study Areas E,F,H,J,K,L,N,O Regular Meeting (Summary; Approval of Interim EDA Report to Planning Commission and City Council) ~ ?/;q[CJo 3/27/06 4/10/06 4/24/06 B. 5/09/06 5/15/06 C. 5/16/06 to 7/21/06 Plannin2 Commission/City Council Planning Commission (Review and Comment on Interim Report) City Council (Review and Comment on Interim Report) Economic Development Task Force Task Force meetings, with public input encouraged Meeting #1: Overview; Study Areas A, B, C, D, M Meeting #2: Study Areas E, F, G, I Meeting #3: Study Areas H & J Meeting #4: Study Areas K, L, N, 0 Meeting #5: "Non-Geographic" Topics; Final Recommendations to EDA D. Economic Development Authority 7/24/06 Regular Meeting (Review Task Force Recommendations; Finalize EDA Draft of Economic Development Plan) E. Plannin2 Commission/City Council 8/08/06 8/21/06 Planning Commission (Review and Comment on EDA Draft of Economic Development Plan) City Council (Review/Approval of Economic Development Plan) [FARMINGTON ECONOMIC DEVELOPMENT PLA~ . Proposed Composition of Economic Development Task Force 2/27/06 A. City Council member (non-EDA) 1 B. Planning Commission member 1 C. EDA member (non-City Council) 1 D. ISD Board member, staff member or designee 1 E. Chamber of Commerce appointees 2 F. Owners/Officers of Local Businesses 2 (1 commercial and 1 industrial, preferred) G. Local Residents (City or adjoining township) 4 H. City staff 2 (Community Dev. Dir., Economic Dev. Spec.) I. Ex-Officio/Non- Voting 2 . (City Administrator; Planning Division rep.) Total: 16 . . . . City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn..us TO: Economic Development Authority FROM: Kevin Carroll, EDA Executive Director SUBJECT: Farmington Economic Development Plan DATE: February 27,2006 INTRODUCTION City staff members, HRA members, City Council members and others have agreed that Farmington's recent and anticipated growth warrant the creation of an Economic Development Plan that provides realistic objectives, useful direction and relevant factual information regarding current and future commercial and industrial activity. DISCUSSION Much (but not all) of the work that is done by City staff, appointed officials and City Council members is governed or facilitated by various "plans" that have been created, reviewed and adopted. Examples include the City's Capital Improvement Plan (road projects, City buildings, etc.), the 2020 Comprehensive Plan (land use), and the Engineering Division's system plans (surface water, sanitary sewer, etc.). To the best of my knowledge, the City has never created or approved a comprehensive planning document that focused exclusively on matters related to the City's commercial and industrial development. Many smaller communities, and some large ones, do not have such a document. The absence of one certainly does not mean that no economic development occurs. However, as a city grows the business needs and expectations of its residents and elected officials also grow. Farmington is now at a point where the existence of a comprehensive Economic Development Plan could help ensure that the City's future includes the commercial and industrial growth and prosperity that is almost universally desired. During much of 2005 and into the first two months of this year, City staff members conducted preliminary work on various aspects of an initial draft of an Economic Development Plan. It is our hope that the EDA will be willing to serve as the "lead agency" with regard to the coordination of the remaining work that will be required to create a final draft of an Economic Development Plan that can be presented to the City Council for its review and eventual approval. At the EDA meeting on February 27, 2006, staff will be seeking comments and direction from the EDA in the three following topic areas: 1. 2. 3. Scope/Parameters of the Economic Development Plan Timetable and Process for the Creation of the Economic Development Plan Composition of the Proposed Economic Development Task Force. . . . 1. Scope/Parameters of the Economic Development Plan At the January HRA meeting, it was suggested that the Economic Development Plan should include both geographic and non-geographic components. Non-geographic components, which are not "site specific," might include topics such as a policy regarding the use of TIF and other financial incentives, a list of "partners" that the City intends to work with to further its economic development goals, or a consultant's summary of financing mechanisms that the City or EDA could use to acquire properties that would be needed for business expansions. Geographic components would be site-specific. Staff members believe that one of the keys to effective long-term economic development planning is making certain that the City has an adequate (or perhaps even more than adequate) inventory of land that is available for commercial and industrial development - that is, parcels that have appropriate Comprehensive Plan designations, and that are appropriately zoned, and that can be provided with City services in a cost-effective manner that is not incompatible with contemporaneous or future residential development. Most of the anticipated non-geographic components of the Economic Development Plan would require less analysis and discussion, and would probably be less controversial, than the geographic components. It is quite possible that the basic framework for the non-geographic aspects of the Economic Development Plan could be largely completed less than halfway through the process that is outlined in the proposed timetable (see Part 2, below). Attached to this Memo you will find samples of the types of geographic information and documents that we propose to include in the Economic Development Plan. They include the following: a. Two regional maps that identify a number of specific geographic "study areas" within Fannington where commercial or industrial operation currently exist and/or where future commercial/industrial development may be appropriate. b. A more detailed map of each individual study area, which includes details such as parcel boundaries, the names of current owners, street names, current zoning classifications, jurisdictional borders, footprints of existing buildings, and the gross acreage of rural or large lots. c. An aerial photo of each study area, on which lot lines have been superimposed and major streets have been identified. d. An Excel spreadsheet that lists relevant factual information about every parcel located within every study area, including names of owners, property identification [Pill] numbers, gross and net developable acreage of undeveloped parcels, the square footage of existing commercial and industrial properties, and the current market value of all existing (developed) commercial and industrial properties. We believe that the types of information referred to above will be useful, if not essential, for a variety of reasons that will be explained in more detail at the EDA meeting on February 28. At that time, the EDA's comments regarding the proposed scope, parameters and content of the Economic Development Plan would be appreciated. 2 . . . 2. Timetable and Process for the Creation of the Economic Development Plan Attached hereto is a proposed schedule that begins with a series of "scoping" meetings by the EDA to identify, refine and preliminarily analyze the essential components of an Economic Development Plan. The next phase would essentially be a "reality check," by the Planning Commission and City Council, regarding any initial findings or recommendations that result from the EDA's firs.t series of meetings. A task force representing a broad spectrum of interests would then conduct a series of meetings designed to elicit public input and comment regarding specific components of the eventual Economic Development Plan. The recommendations of the task force would go back to the EDA so that the EDA could incorporate that information into the final draft of its proposed Economic Development Plan, which would then go to the Planning Commission for discussion and to the City Council for final review and adoption. The EDA's comments regarding the proposed process and timetable would be appreciated. 3. Composition of the Proposed Economic Development Task Force. Attached hereto is a staff recommendation regarding the composition of the Economic Development Task Force that is referred to in the proposed timetable. An attempt has been made to ensure that a broad range of interests would be represented, while at the same time keeping the number of participants to a manageable number. Task force members would be asked to commit to a schedule that would involve approximately 5-6 meetings (of about two hours each) at roughly two week intervals. The EDA's comments regarding the proposed composition of the task force would be appreciated. ************************************************************************** ACTIONeS) REQUESTED 1. Provide comments regarding proposed scope/parameters of the Economic Development Plan. 2. Approve the proposed timetable, or recommend revisions. 3. Approve the proposed composition of Economic Development Task Force, or recommend modifications. 3 . II) '0 >- 'i s:: <( 'i 'C . - II) ::::J '0 s:: - 'i .~ CI) E E 0 0 <( 0 w . j ~ ;Q):i :&;,.; "'ii;, c>'O ~ .5 ;, - (.) iiiiii ~g:stt j E! . O'C'Ol/) a..~.5 D- Ole c- .- III ~ i:Sat x 1/1 w ;, '0 .5 ~ ii IlIGl~ :&::IGl "'-e c ~ e ~ 0 ;, (.) (.) - -ii~ .!! c 1:! .,J c.2Glu. Gl ~ E o'OEl/) a..~o (.) ii ~'i:! :l ~Glu. .!Il E D- XEl/) wo- o Gl DGl ...llOl Glolll z-! Gl u ~<C o Gl =01 ~ m C>~ ... o a: e CD c ~ ~1lI ::I e Ui<C 0 00 h I - 0 - 0 00 g ci o <Xl ..:;~~I . 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(') ...... ,...,...C\I Mv ,...,...,...,...,...,...,...,...,...,...,...,...,...,...,...,...,...,...,...,...NNNNN 0 000 00 000000000000000900000000Q 0 ~~~ ~~ 0000000000000000000660000 ~ ~~~ ~~ ooooo~~~~~~~~~a~~~~oooooo ~ ~~~ ~~ N~~~~~~~~oooo~oo~~oooo~oo~~~~~~ 6 ......~~ ......~ 00000000000000000001l)1l)1l)1l)1l)~ 0 ~~~ ~~ ~~~~~~~~~~~~~~~~~~~~~~~~~ ~ ~~~c~~.~~~~~~~~~~~i~~~~~~~~~~~~~U~ ...... ~ ......11...... ...... 1 ...... ...... ...... ...... ...... ...... ...... ~ ...... ...... : ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... :; ......1...... I~ I~ ~ ~ il! co ~ i ~ f ~ ~ ~ ~ la 1M g~ GO ~ ~ ~ 00~~a~W .. .. r::r.- :x: ~ Q) '" "'.!!I~g!lr::lW .2 S::J3: g>-Q) g Q) ~.s: .~ :!:co~e~~1- ::l""CIE ;> a.. Q).c. ~ O(J)e'- (J) . jl_55 Q)~~Sa.. ~~ u_~ ()~~ s~o5.~1- J!/ I.t: c, c, '" :2 a:l 1Il u) ~ >0 i ;:;; !!l. l!! :::i ,n c ...: ._ .-' Q) .s ~ ~ J!I '" :!: Q)~ I-CCO~~(J)--co~~-Q)~~lIl~a..-~~~ ~~'" lii :e'" co ... "" 'E 'j: .S: c ,g == ;l :x: :: ~ iii ~ 0. ~ .!!1 I- 3: _'" lii 19 e :g ~ .~ ... :c; 8 I~~ il ~~~~~gili~~~()~~~Q)~i~~!J~$ $e <t:a:l() ,<t:a:l ~~~O(J)<t:()~<t:(J)~(9I-a..~:!:~:!:I-(J)<t:I-O(J)C (J)~ <t:<(<t: ()()()()()()()()()()()()()()()()O()()OOOOO() alal 00 00 8 ~.o og~ <0...... WElt 8 ('. ('. 8 o 0 - 8008 o 0 o cool .. I lXl N .. '" ~cri <XlI'-... Il) ......! ~9 ......0 00 00 00 Il)Il) C')(") o~~o IITIii . . a ~9.e I~jl ... 10 ~... E S Q) ~ ~ 00 . . . (Reserved for Recording Data) QUIT CLAIM DEED STATE DEED TAX DUE HEREON: $1.65 Dated: , 2006. FOR VALUABLE CONSIDERATION, the CITY OF FARMINGTON, a Minnesota municipal corporation, Grantor, hereby conveys and quitclaims to 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, Grantee, real property in Dakota County, Minnesota, described as follows: Part of Lots Five (5) and Six (6) of Block Twenty-three (23) in the Town (now City) of Farmington, described as follows, to-wit: commencing Fifty-one (51) feet South of the Northwest comer of said Lot Six (6) in said Block Twenty-three (23), thence running South Fifty-one (51) feet, thence East One Hundred Ten (110) feet, thence running North Fifty-one (51) feet, thence running West One Hundred Ten (110) feet to the place of beginning, according to the plat thereof on file and of record in the office of the County Recorder in and for Dakota County, Minnesota. together with all hereditaments and appurtenances belonging thereto, subject to the following exceptions: None. 123162 1 THE GRANTOR CERTIFIES THAT THE GRANTOR DOES NOT KNOW OF ANY WELLS ON THE DESCRIBED REAL PROPERTY. . The consideration for this transfer is less than $500.00. CITY OF FARMINGTON (SEAL) BY: Kevan A. Soderberg, Mayor AND: Robin Roland, Acting City Administrator STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 2006, by Kevan A. Soderberg and by Robin Roland, respectively the Mayor and Acting City Administrator of the City of Farmington, a Minnesota municipal corporation, on behalf . of the corporation and pursuant to the authority granted by its City Council. Notary Public Tax Statements for the real property described in this instrument should be sent to: Farmington EDA 325 Oak Street Farmington, MN 55024 THIS INSTRUMENT DRAFTED By: CAMPBELL KNUTSON, P.A. Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 AMP/cjh . 123162 2 . . . (Reserved for Recording Data) QUIT CLAIM DEED STATE DEED TAX DUE HEREON: $1.65 Dated: , 2006. FOR VALUABLE CONSIDERATION, the CITY OF FARMINGTON, a Minnesota municipal corporation, Grantor, hereby conveys and quitclaims to 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, Grantee, real property in Dakota County, Minnesota, described as follows: Part of Lots Five (5) and Six (6) of Block Twenty-three (23) in the Town (now City) of Farmington, described as follows, to-wit: commencing Fifty-one (51) feet South of the Northwest corner of said Lot Six (6) in said Block Twenty-three (23), thence running South Fifty-one (51) feet, thence East One Hundred Ten (110) feet, thence running North Fifty-one (51) feet, thence running West One Hundred Ten (110) feet to the place of beginning, according to the plat thereof on file and of record in the office of the County Recorder in and for Dakota County, Minnesota. together with all hereditaments and appurtenances belonging thereto, subject to the following exceptions: None. 123162 1 THE GRANTOR CERTIFIES THAT THE GRANTOR DOES NOT KNOW OF ANY WELLS ON THE DESCRIBED REAL PROPERTY. . 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