HomeMy WebLinkAbout04.24.06 EDA Packet - with notes
. 041'i2l/2006 15: 45
POSTNET ROSEMOUNT ~ 6514631611
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AGENDA
ECONOMIC DEVELOPMENT AUTHORITY
April 24, :Z006 -7:00 p.m.
City COIlDell Chambers, City Hall
1. CaD Meeting to Order
..L' Approve Agenda
~ Consent Agenda
a. Bills
b. March 27 t 2006 Minutes
" Public Baril-g. (NoDe)
J!' Dafhtisbed Bo.iness
/' ~own Area -- MeVidzr Lot (/:1 Hi) ~ /1 Off" n C, -tv ",.-IJ
As requested by the ED~ staff contaetcd the two wljacent property owners to make them
aware that the EDA is continuing to explore the possible redevelopment of the vacant
McVicker lot. Both property owners seemed primarily concerned about the cU1'1'e1'1t parking
( ~ situation. and about the possibility that a "new" building located nearby would make it barder
--(I. . v' e- of for their own patrom to find convenient parking. Although stJrlfmembers recognize that
fl ~ ,t~() \71 parking bas been (and will presumably always be) an issue in the downtown area, we do not
op1', WyJV\-- believe that parking issues are serious enough to justify leaving a vacant downtown lot
IN JJ(\ , -tY I vt permanently undeveloped.
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Since the March BDA meetingJ staff members have engaged in additional discussions with
the five developers who were initially contacted about the possible redevelopment oftbe
McVicker property, One developer indicated that he would not be able to fit the project into
his schedule fur 2006. Another developer was out of town for most of the month and will
not be able to meet with staff in person for another week or two. However, face-to.face
meetings with the three rema.i11ing developers have now been completed. and aU three of them
are continuing to express an interest in the McVicker lot. We have asked each ofthcm to
ibJJow up on our preliminary meeting(s) by providing staff with I construction cost
projectiollt a cash flow analysis, and documentation supporting any request that they might be
inclined to make regarding BDA financial assistance (i.e., they must demonstrate a justifiable
need for such assistance). We bave also suggested that they prepare drawings~ elevations or
floor plans for the type of building that they plan to build ifit will be significantly c::Iifferent
than the building that Four Star had proposed.
The staff recommendation at this time is that the BDA authorize staff to continue to interact
with the developers in question to claritY and refine their proposals. Our goal is to obtain .
enough information from them during the next two to three weeks to be able to recommend a
..
134/21/2006
15:45 POSTNET ROSEMOUNT ~ 6514631611
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~ preferred developer at the May 22 BDA meeting.
I[ :[ bldu.s/TiaI PfII'C - R &L 1'r'Ilcking (fJ r II ,
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The City's Building Official has advised me that a few minor engineering issues are in the
final review stage. We anticipate that the building permit will be issued within the next 30
days. As you may recall, a grading permit was issued in the fiIl1 of2oo5, at which time a
good portion oftbe required earthmoviDg was ooU1P1eted. We expect that the remaining
grading will be completed within the next 30-60 days, followed immediately by the actual
f) co ion of the new truck terminal (as soon as the building pemrlt is issued).
O'^~ . In
1 ' Downtown Area - Exchange Bank Building and LaTson Building ~ \bruv-: ~ ~,
{ Q., r-f{ lY Mtu 00l~ue..
ot'~ oAJ (eP"" See attached letter to Hosmer Brown III BJ1d Hosmer Brown IV, which includes a proposed
~~ /" schedule for the completion of the renJflining work. Any response(s) that we receive from ~
J<\'~ . .-Af.-haihem prior to Monday nightts EDA mtding will be conveyed to you by Tina Schwanz and
~ Andrea Poehler. at that time. As indicated in the letter, the Browns have been invited to
l!o r\-L -R..J art~thc meetmg.
~ ~ " Downtown Area - Risle Bllilding
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V'v\ ~ft ' V'\ ~ :::~ the staft7developer meetings described in Section 5(a) above, the developem in
(;J Q V\U- ~ question were also 8$ked about their potential interest in the Riste building as a
f.,A) n-h' /J..- redevelopment site. Although all of tl1em were interested. they all seemed reluctant to
discuss the subject in detail until a developer for the McVicker property is chosen. The
developer that is selected for the McVicker lot will probably not want to gg, take on the
immediate redevelopment of the Riste property, and any developer that is ml chosen for the
McVicker lot will probably have a hcighteoed h1terest in the Riste property as a result. We
suggested to all oftbem that they might want to initiate contact with Xcel regarding the
possible acquisition of the propBrty located to the west afthe Ris1e building. thereby
incre8sing the potential scale ofthc Riste redevelopment project. Frankly, private parties
may be able to make more progress in that regard than City staff members have been able to
. achieve thus fat.
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The sta1frecommendation at this time is tbat any in-depth discussion(s) of the redevelopment
. of the Riste property be deferred until after a developer is selected fur the McVicker lot. In
the meantime, staffwill attem:: to cletermine wbetber any deve1o~rs are ntrrmin~ the
potential acquisi~the:x! I property. S~ coDSideratiOnShould p~ be given t~
lUly developer who demonstrates that type ofimtrative. cspeelaUy if the developer's actions
are success:tW. Staff members will also give consideration to whether the redevelopment of
1hc R.iste property (and possibly the adjacent Xcel property) could serve as a suitable
candidate for a Met Council [LeDA or Livable Corntnlmities Demonstration Account] grant.
.,application dcadIint mr tile ~ round 0: gnmls will probably be SUDe 30. 2006.
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POSTNET ROSEMOUNT 7 6514631611
NO.208 (jl03
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A closing on the construction financing for the Hr expansion was scheduled for Friday, April
21, 2006. At the EOA meeting on Monday, Tina Schwanz and/or Andrea Poehler should be
able 10 let you know whether the closing was successfWly completed. If so, it is our
undcrstaodi11g that Mr. Milner intended to have his contractor iJnmediately initiate the
grading and excavating that win be required to create the desired off-street parking for the
trailers that are currently being parked on Baton Avenue and 20Sdl Street.
.
A variety oflegal and administrative issues cropped up during the week of April 17 related. to
the impending closing. City staff members and the City Attorney worked with Mr. Milner to
resolve the issues as they arose. One such issue involved a request from the lender (or the
lender's closing company) that the EDA execute a Quitclaim Deed that would have
essentially waived or negated the contractual Right of Reverter that gave the EDA the right
and ability to re-acquire the property in question if it was not developed in the manner that
was originally envisioned by JIT and by the HRA. City staff' and the City Attorney did not
beliew that the BDA members would be willing to agree to such an action. The City
Attorney suggested an alternate approach that involved a subordination agreement (see
attached). As of the morning of April 21. it appeared that this approach was acceptable to the
lender and the lender.s closer. Andrea. poehler will be able to Jet you know on Monday mgbt
whether your approval of the subordination agreement will be necessary. If so, a motion to
authorize the City Altomey andIorthe Executive Director and/or the Chairperson of the
EDA to execute the subordination agreement will be in order.
\(' VQClll1l LoI at 4'" Strut tmd Mai. Strut ~
Th:ro is a moetiog to:IJllcIuIed m Friday, April 211, 2006 with Dakota CoUll1y sudf and ~ ~ \ ~I
Farmington stafJto discuss the minimum net sale proceeds that Dakota County will require ~\ 5' k.(~'l
the EDA to pay to Dakota County following the sale of the property in question to Mr. ~
Heinen.. This appears to be the last major issue to resolve befure the property can be ~ s ,"'5
tranSferred to from the State of Minnesota to the EOA, and thereafter from~ED tn ~ \ ;,.. ...;A-"
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f) ~. K'l'" / ..." "? ~ f\.t."' J. .,' c. !J.
, .J>:' :~ ~~ \ JOB" Strut - F,,",,", LiquDr Sto.dvilding ~ .f"'~~ ::liY:;'~ s": ...:; - . - ~
~..J- ~J)(f. \W'~Jl< ' f' 6'~ f ~ "'J
\IV\!\ ' ~.l( <:f/J' Staff conducted 101II'S of tho property and engaged in discussions of ~ im wid. ~- (!1 ~
1\ ~ 't' dtl""1ljlCCIi>e _ during !be last Jew weeks. Staffmay be in a position to ""'" Ii' ~~ "'~ 1 ~
~ ~ ~ _~~.:~enant by next Monday night. A "working draft" of a lease agreement was be. 'CJb . · '
~",\, 0 0 ~ ~.;: on Frida1, April 21, BlId I\lBY be awilabJe Dr tho !IDA's review on Monday night. ~ ""
iJ'-'-"<. ,.)1 V If so, the BDA's permission to move ilrward with the...,cution of the lease will be 0
t l^J requested. Ifnot, the EDA.s permission to continue working on the finali1Mion oflease
~ ~ 7.with the preferred tenant will be sought. ..
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. Economic Developme"t-Pfatr - pi~tU'~ 0 SpeU U c....vlCl tY\fJ(.JJ~
As thi nda be. fY~k still' d{)..kthee.l~ . . th
. s age was mg prepar~ WOt was m progress on reVlSlons to e
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04/21/2006 15:45
POSTNET R~ ~ 6514631611
NO. 208 .~. 004
UPrameworkU dOCun:te1\t that were discussed at the special BDA meeting that was conducted .',
on April 18. lfthat work is completed before the BOA packet is finished. your packet will
include the DeW draft. If oot. it wiD be e-mailed to you and/or distributed at tbe EDA
meetiDg on Monday night.
e. Industrial Park - Building Addition (Albert J. Laue,., Inc.)
Y OUl packet will include intbtmation about a business owner in the Industrial Park who
wants to erect a struCture that would essentially be a small greenhouse. It would appuently
serve as a sample of the type of product that the business in question constructs.
manufactureS. seUs or distn'butes. The strueture would. mth<< be an addition to an existing
buiJdjng in the Industrial Park (the white buiJding on the north side of CSAH so that is
located between ViDge Tile and the ibnner Duo Plastics buiJding), m: a freestanding stmtturc
located in close proximity to that existing building (depending on how one defi.ues or
interprets words such as "addition"). The proposed structure would appear to be construCted
primarily of glass and metal. It is possible that the lower portion of the ~ might be
constrUCted with SOD type of masonry product. The relevant portion of the design
standards for the Industrial Park provides as fonows:
Exfsrior Wafs: Exterior walls of buiIt1ings to be constructed shall consist of one or mot8 of the
following materials and shell mceivs pIior epplDvsI of the city:
(a' Brick: SiZe, type, lexture. color and placement shall be approved.
(b) St0t18: Stone shall "ave a weathenld face or shall be polished, fluted or brDIcen fac8.
(e) concrete MesonI]' BIOcIc: ConC18te maSOllty IJIock shall be those get18f8IIy described 8B
'customiZed sn:hit9CIursl concr&ts masomy units" or nil be bIoIatn faced bric:Ic type units with
merDIe aggregats. All 00IICI8f8 masomy units Shall be coated with a city approved COlfting. There
shaR be no e~posed concrete bloclc on the exterior of sny buildingunleu appfOvsd by the city.
(d) Conct'9f8: ConC1Bf8 may be poursd in place, tilt up or precast; and shaH be finished in stone,
ItJxtured or coated, with a mirtimum life expectancy or <<sn (10) years.
.
All of the existing buildings in the Industrial Park have glass windows. so portions of the
exterior walls are therefore composed of glass. even though glass is not leclmntly an
approved exterior material Staff members see little pam in trying to make distinctions
~ existing buitdmg.c; that are partially composed of g1ass~.aPfOJ.""se'.iIdd~k\npr
accessory struCture that is primarily composed of glass. ,1.lll....... I brl....
liete-tbre reeommelll.ed. .
7. Eseeutiwe Dil'Ktor's Report
A verbal update may be provided at the meeting regarding ongoing or anticipated matters
involving housing and/or economic development (otber than those remed to above).
B. Adjoara
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INVOICE LIST FOR
EDA MEETING
APRIL 24, 2006
AT
7:00 p.m.
( ~
$
$
$
$
$
$
$
$
I DATE I I DESCRIPTION
03/16/2006 XCEL ENERGY - 305 3RD STREET
01/18/2006 NO DKTA CTY COC
03/31/2006 CAMPBELL KNUTSON
03/31/2006 CAMPBELL KNUTSON
03/31/2006 TINA SCHWANZ
04/10/2006 EIDE BAILLY
04/03/2006 XCEL ENERGY -142 ELM ST
04/04/2006 AQUILA - 305 3RD ST
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$
Page 1
$ AMOUNT'
61.91
30.00
121.50
1,827.97
29.26
1,821.00
7.97
57.96
$ 3,957.57
I APPROVALI
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51 -4874008-3 0411 212006 $61 .91 Auto P ay 0 0 N ot
Th a n k Yo u , R eturn
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Please Return This Portion
With Your PaymentTo:
Northern States Power Company
P.D, BOX 9477
MPLS, MN 55484-9477
J 002l1Lj
AT 01 058396 525876220 A**3DGT
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LIQUOR STORE FARMINGTON CITY OF
(::. 305 3RO ST
FARMINGTON MN 55024-1352
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Ch:~h. ~t:~
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5104120bn48740083nOOOOOOOb1910000000b191
Questions: Call
Please Call:
Hearing Impaired:
Fax: (800)311-0050
Detach and Retain This Portion For Your Records
or write to us at:
(800) 481-4700 Northern States Power Company
(800) 895-4949 PO BOX 8
EAU CLAIRE WI 54702-0008
Billing Summary
-
I
Averages for This last ~
Billinn Period Year Year
Average T emoerature 27* 25 -
Electric/kwh per Day 12.9 180.3 -
Cost oer Day $2,13 $11.73 -
. : * 2 Degrees Warmer
Electric Charges Usage Period: 02/13/06 to 03/14/06 .
Invoice # 102793416
Total
Company Reading on 03/14
Company Reading on 02113
Difference
Actual Maximum Demand
Billable Demand
Commercial
Previous Balance 02113
Payment Received asof 03/16
Balance As Of 03116
Commercial Electric Service 03/16
Total
Meter #
000002619665
General Service 29 Days
Basic Service Chg
Energy Charge
Demand Charge Winter
Interim Rate Adj
Environmt Imprvmt Rider
Environmt Imprvmt Rider
Fuel Cost Adjustment
Resource Adjustment
Subtotal
State Tax @6.50%
Total Amount
$173.16
$173.16 CR
$0.00
lliJ1
$61.91
kWh
2.32
2
76320
75947
373
373 kWh
2kW
$22.04
$14.88
$13.22
$3.64
$0.23
$0.50
$2.62
$1.00
$58.13
$3.78
$61.91
@ $0.039904
@$6.610000
@$O.000610
@$0.250110
@ $0.007024
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L1BtJSFl S'DRE FARMINGTON CITY ~
305 3RD ST
FARMINGTON, MN 55024
N ext Scheduled ..:i:!;I.I!~~"II!ii:.': :i:::i:il!!I.:lf~l~t~I:::,::.i:
Meter Reading Date
.Y''''~ $61
04/20/06 04/11/2006;, .91
,...,,,,,-.t
See back of bill for
more information.
Account #: 51-4874008-3
~~~~ ~~~i~~:~~t~h:~~ftf..our
institution and immediately credited.
Statement # 61982767 Premise # 303533111
Page 1012
Statement Date: 03116/06
NORTHERN DAKOTA COUN"
NUt
1121 Town Centre Drive
Suite 102
Eagan, MN 55123 l/)
651-452-9872 fF"".
Fax 651-452-8978 I 0<60
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CHAMBERS OF COMMERCE
-INVOICE-
Mayor Kevan Soderberg
City of Farmington City Council
325 Oak Street
Farmington, MN 55024
Date: 01/18/2006
Account #: 9124
Invoice #: 27218
Amount Due: $30.00
PLEASE DETACH AND RETURN WITH PAYMENT
Amount Remitted:
-----------------------------------------------
- - ~ - -
NORTHERN DAKOTA COUNTY CHAMBERS OF COMMERCE
Farmington Business Council luncheon 2 @ $15
30.00
Total:
$30.00
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.
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95% OF YOUR MEMBERSHIP INVESTMENT MAY BE TAX DEDUCTIBLE AS A BUSINESS EXPENSE, NOT AS A CHARITABLE CONTRIBUTION.
.
.
.
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
lOO~53
4\\4-
City of Farmington
Attention: Ms. Robin Roland
Finance Director
325 Oak Street
Farmington MN 55024
. .. .... .... . Page: 1
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10\ \. 0lf 6 :3 - i iI' 0 ~
1030,0403 - 1357,3.2
ta70,'-:,403 .- 1330, (p 1
IOs1> ,laLlo> ~ 35. ~
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SUMMARY STATEMENT
PREVIOUS BALANCE
FEES EXPENSES
CREDITS PAYMENTS
1852-000 RE: GENERAL LEGAL SERVICES (RETAINER)
SERVICES RENDERED TO DATE:
6,255.84 6,000.00 527.01 0.00
-6,232.36 $G.,.a.5OA9
'~\'i.etvIJNl- (COO.I:V5' 202~'StJ
I cc6,(,lftB j 5~ . DD
-5,251.50 $354.50
1852-001 RE: GENERAL LEGAL SERVICES (NON-RETAINER)
SERVICES RENDERED TO DATE:
5,251.50 354.50 0.00 0.00
1852-002 RE: PASS THROUGH LEGAL SERVICES
SERVICES RENDERED TO DATE:
1,867.50 135.00 0.00 0.00
-1,867.50
4&[0 I l.4-03
$135.00
1852-003 RE: FORFEITURES (NON-RETAINER)
SERVICES RENDERED TO DATE:
186.63 152.00 0.63 0.00
-186.63
2.[00. &'-{Q3
$152.63
1852-019 RE: ASH STREET POND PROJECT
SERVICES RENDERED TO DATE:
0.00 337.50 0.00 0.00
0.00
4I05".0Y-03
$337.50
1852-024 RE: ASH STREET EASEMENTS
SERVICES RENDERED TO DATE:
342.22 63.00 46.00 0.00
-342.22
Lj-I oS, (c'-{63
$109.00
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
March 31,2006
Account # 1852-013G
66
RE: EDA GENERAL MATTERS (NON-RETAINER)
SERVICES RENDERED TO DATE:
HOURS
03/15/2006
AMP Telephone call from Tina re: development property. 0.20 27.00
03/24/2006
AMP Voicemail from Kevin re: lease. 0.20 27.00
03/27/2006 .
AMP Review lease forms; e-mail to Kevin re: draft lease. 0.50 67.50
-
AMOUNT DUE 0.90 121.50
TOTAL CURRENT WORK 121.50
PREVIOUS BALANCE $54.00
03/28/2006 Payment - thank you -54.00
TOTAL AMOUNT DUE $121.50
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.
.
/t'
/
/ City of Farmington
/
/.
PREVIOUS BALANCE FEES EXPENSES CREDITS PAYMENTS BALANCE
1852-025 RE: LALANI-CRIMINAL APPEAL ID~ ' foLt03
SERVICES RENDERED TO DATE:
40.50 746.50 159.31 0.00 -40.50 $905.81
1852-028 RE: WETLAND BUFFER VACATION G, lfUd- I toll Q3
SERVICES RENDERED TO DATE:
0.00 99.00 0.00 0.00 0.00 $99.00
472.50
1,773.00
54.97
0.00
-472.50
.
1852-030 RE: EDAlJOSEPH M. HEINEN (CONTRACT FOR PRIVATE
DEVELOPMENT)
SERVICES RENDERED TO DATE:
175.50 0.00 0.00 0.00 -175.50 $0.00
1852-031 RE: ISD #192 (NEW SCHOOL) V. CITY OF FARMINGTON
SERVICES RENDERED TO DATE:
0.00 3,145.50 0.00 0.00
0.00
'1 \ 00 , (pL{ 0:5
$3,145.50
1852-032 RE: 210TH STREET EXTENSION - REGAN PROPERTY
SERVICES RENDERED TO DATE:
0.00 130.50 151.00 0.00
0.00
41 aD, &Ll 0 ~
$281.50
1852-999 RE: PROSECUTION MATTERS
SERVICES RENDERED TO DATE:
5,854.82 6,000.00 57.09 0.00
-5,854.82
;0'50.0A...{D?J
$6,057.09
20,501.01
19,058.00
996.01
0.00
-20,477.53
$20,077.49
.
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
Page: 1
City of Farmington March 31,2006
Attention: Ms. Robin Roland Account # 1852-029G
Finance Director 10
325 Oak Street
Farmington MN 55024
RE: EDA/2004 REAL ESTATE COMPANY
SERVICES RENDERED TO DATE:
HOURS
03/02/2006
AMP Telephone call to Del Schwanz; telephone call to Hosmer
Brown; draft waiver of plat application and prepare legal
descriptions for exhibits. 1.40 189.00
03/03/2006 .
CJH Work on closing checklist. 0.30 27.00
03/06/2006
AMP Telephone call from Tina S.; e-mail from Kevin; telephone
call from Hosmer Brown. 0.50 67.50
03/08/2006
AMP Telephone call from Del Schwanz; telephone call from
Hosmer Brown. 0.40 54.00
03/10/2006
AMP Telephone call from Hosmer Brown. 0.20 27.00
03/14/2006
AMP Telephone call from Tina re: Hosmer Brown request. 0.20 27.00
03/15/2006
AMP Telephone call to Del Schwanz; telephone call from Tina;
e-mail from Tina; review legal descriptions. 0.70 94.50
03/16/2006
CJH Telephone message to and from Paul Oehme; scan and
email to Paul Oehme three Owners and Encumbrance
Reports. 1.50 135.00 .
CJH Telephone conference with Hosmer Brown IV re: closing;
Page: 2
March 31, 2006
Account # 1852-029G
10
RE: EDA/2004 REAL ESTATE COMPANY
SERVICES RENDERED TO DATE:
HOURS
telephone conference with Donna at Dakota County
Abstract; telephone conference with Dakota County
Abstract in Apple Valley re: closing. 0.30 27.00
03/17/2006
CJH Telephone message to Karen Johnson at Dakota County
Abstract; telephone conference with Karen Johnson;
telephone conference with Hosmer Brown IV; draft
Resolution Authorizing Real Estate Transaction; revise
closing documents; telephone message to Karen
Johnson; telephone conference with Sandy from Dakota
County Abstract; scan and email to Karen Johnson
closing documents. 1.50 135.00
AMP E-mails from Carole Hoeft. 0.20 27.00
03/20/2006
CJH Telephone conference with Sandy at Dakota County
. Abstract; telephone conference with Karen Johnson;
telephone message to Karen Johnson at Dakota County
Abstract; scan and email closing documents to Hosmer
Brown IV; telephone conference with Hosmer Brown IV. 0.60 54.00
AMP E-mail from and to Tina re: closing information; review
information on closing; telephone call from closer;
telephone call to Lee S. re: lot split approval; review and
revise closing documents; telephone call from Hosmer
Brown IV; e-mail to Tina; review Settlement Statement;
e-mail to City re: Settlement Statement and proceeds for
closing; voicemail from Lee re: lot split approval. 2.20 297.00
03/21/2006
AMP Telephone call from Hosmer Brown; draft Release;
telephone call to Tina re: new Release and closing
issues; telephone call from Tina; e-mail from Tina;
telephone calls to and from Tina; attend closing. 3.80 513.00
03/22/2006
CJH Fax Settlement Statement and Limited Warranty Deed to
Tina Schwanz. 0.20 18.00
AMP Telephone call from Tina re: documents from closing. 0.20 27.00
.3/23/2006
CJH Forward copies of closing documents to Kevin Carroll;
City of Farmington
RE: EDA/2004 REAL ESTATE COMPANY
SERVICES RENDERED TO DATE:
record Hold Harmless Agreement with County.
AMOUNT DUE
03/23/2006 Dakota County Recorder/Registrar - Fees to Record Hold
Harmless & Indemnity Agreement (Abstract).
03/23/2006 Photocopy expense.
03/23/2006 Postage expense.
TOTAL DISBURSEMENTS
TOTAL CURRENT WORK
PREVIOUS BALANCE
03/28/2006 Payment - thank you
TOTAL AMOUNT DUE
Page: 3
March 31,2006
Account # 1852-029G
10
HOURS
0.60
14.80
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.
54.00
1,773.00
46.00
6.60
2.37
54.97
1.827.97
$472.50
-472.50
$1,827.97
.
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5601 Green Valley Drive, Ste 700
Minneapolis, MN 55437-1145
City of Farmington
Robin Roland
Finance Director
325 Oak St
Farmington MN 55024
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I N V 0 ICE
Please return this portion with your payment.
952.944.6166
Fax: 952.944.8496
.
Date: 4/10/06
Page: 1
32965:-_7_a3052_ _ _ _ _ _.
-----------------------------------------------------------------------
-----------------------------------------------------------------------
BILLINGS ARE DUE UPON RECEIPT
Progress billing # 2 for audit of financial
statement for year ended December 31, 2005.
CURRENT TOTAL
1021 ,(PLfO I
20tD .0-(0 i
2'3J2 /,04D I
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5601 Green Valley Drive, Suite 700
Minneapolis, MN 55437-1145 · 952.944.6166 · Fax 952.944.8496
Federal I.D. #45-0250958
11,000.00
$
11,000.00
--------------
--------------
.
.
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.
'~ Xcel Energy'"
.
Please Return This Portion
With Your PaymentTo:
Northern States Power Company
:::::(t#jrlg~:9jijt.!1jm~~~::::W W]~!~iWl!h~mWv.:::: :::::::;::AmYMmilJljftMwi::::;:::::: ::{:::::::::Afumij!:m~f:#:i~~::.:?!::::!:::
51 -4874009-4 04/28/2006 $43.29 Auto Pay Do Not
Thank You ! Return
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P.O, BOX 9477
MPLS, MN 55484-9477
FARMINGTON CITY OF
ATTN: ACCTS PAYABLE
325 OAK ST
FARMINGTON, MN 55024-1374
51042806rl48740094rl00000004329DOOOOOD4329
Detach and Retain This Portion For Your Records
or write to us at:
(800) 481-4700 Northern States Power Company
(800) 895-4949 PO BOX 8 ,'.
EAU CLAIRE WI 54702-0008
-
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302899419, , "
303664727
Total Current Sill ,"
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FARMINGTON
ATTN:ACCTS
325 OAK ST
FARMINGTON,
.:::tl~I'I!IIIII::~:,::'i,.'.IIII:lf~!~II:.i.:::!i
04/28/2006 $43.29
Your billis On
your due date, the amount IS Withdrawn from your fmancial
institution and immediately credited,
Statement # 63962600
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more information.
Page 1 of 3
Account #: 51-4874009-4
Statement Date: 04/03/06
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Aquila o~1
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Helpful Information
Aquila Cares helps eligible people meet energy
needs through your tax-deductible donations. To
give, please mark your payment stub (below) with
the amount you wish to be billed monthly. Aquila
matches donations $1 for $1, up to $375,000. To
stop giving, call 1-800-303-0752.
If you smell. n.atural gas,leave the premises
immediately and call Aquila at 1-800-303-0357.
Customers may register inquiries or complaints in
writing to 2665 145th Street West, Box 455,
Rosemount, MN 55068-0455 or by calling Aquila
Customer Service.
If you have a previous balance, that amount is due
immediately; the remaining balance is due on the due
date. Please send payments to the address on front of
the payment stub.
Customer Charge covers part of the fixed costs of
delivering your energy, regardless of usage.
Supply Cost - Your bill may include an adjustment or
rate change due to the cost of purchasing energy from
suppliers. The charge may appear as PGA, GCR, ECA
or ICA dependent upon the state you reside in.
PO BOX 4649
CAROL STREAM, IL 60197-4649
24 hour Customer Service call
2::;Dr Emer ency Service call
FGTN MUNICIPAL LIQUORS
, ,
1-800-303-0752
1-800-303-0357
Account Number:
Amount Now Due:
Billing Date:
Auto Bank Transfer:
2059 6652 50
$57.96
04/04/06
04/21/06
Previous Account Balance
Payments Received
Previous Balance Due
Fees/Adjustments
Current Charges
Gas
Total This Bill
New Account Balance
$137.33
137.33 CR
0.00
0.00
$57.96
57.96
$57.96
$57.96
?6lJO
~ y'z3 $
See back for billing details.
Account Number
2059 6652 50
Detach and mail this portion with your payment Bring entire bill if paying in person.
Automatic Bank Transfer
I want to support Aquila Cares with a monthly gift of:
$ >~'''''',,~_ Other [] $5 0 $10 [] $20
11.1.1..11111.,11,11...111111...1.11111'11111.11.1.1..1111.1.1
AQUILA (PNG)
PO BOX 4649
CAROL STREAM IL 60197--4649
1.111111'11111111.111111.1.1..1.111111..11.111.11111.111111111
205966525000000005896000000057961302
Please enter
amount enclosed
See back of bill for Checl<lINE sign up or address change.
11.11...111..111..111111...11.1.111.1.1.11..111..11111..11.1.1
P0918E 1 19834 1 AV 0.293 00019834 79 19834 DP13
F-G+N-MYNfGfAAb...b1.Ql:/GRS: ~.' r_
325 OAK 5T
FARMINGTON MN 55024-1374
1.1.1111.1.11'"111.1.1..111111..11.111.1.1..1111.1.1.1...1.11
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2 AQLOOl P0918E 00019834 I 00020458
.
.
.
MINUTES
ECONMIC DEVELOPMENT AUTHORITY
REGULAR MEETING
MARCH 27, 2006
1.
Call Meeting to Order
The meeting was called to order by Chairperson Arey at 7:00 p.m.
Members Present: Arey, Collignon, Flaherty, Fogarty, Hardt, McKnight, Starkman
Members Absent: None
Also Present: Community Development Director Kevin Carroll; Economic Development
Specialist Tina Schwanz
Community Development Director Carroll swore-in new members Chad Collignon, Erik
Starkman and David McKnight.
2. Approve Agenda
MOTION by Hardt, second by Flaherty, to approve the agenda. APIF, MOTION
CARRIED.
3.
Consent Agenda
Councilmember Fogarty pulled the minutes to abstain.
MOTION by Hardt, second by Starkman, to approve the Consent agenda as follows:
a. Bills
APIF, MOTION CARRIED.
b. February 27, 2006 Minutes
MOTION by Starkman, second by Hardt to approve the February 27, 2006 Minutes.
Voting for: Arey, Collignon, Flaherty, Hardt, McKnight, Starkman. Abstain: Fogarty.
MOTION CARRIED.
4. Public Hearings
None
5.
Unfinished Business
a. Downtown Area - McVicker Lot
RFP packets have been sent to Mr. Tom Wartman, developer of City Center, Mr.
John Einess, developer of the new liquor store and Fannington Market Place,
Appro Development and Cerron who have been working with Mr. Pat Regan in
connection with the R&L Truck Terminal, and Mr. Joe Heinen who is
redeveloping the corner of3rd Street and Elm Street. All of these have expressed
varying interest in doing a project in the downtown area. The concept from Four
Star was given to all of them. Staffwill give an update at the next meeting. All
these parties have been advised of the potential Riste building site. Staffhas not
yet notified neighboring businesses as they were not sure what to notify them of.
Staff asked if neighboring businesses should be notified to see if they want to
EDA Minutes
March 27, 2006
Page 2
submit proposals for the redevelopment of the lot, or about the fact that we are
talking with developers about the lot or both. Councilmember McKnight replied
both. The board agreed. Member Flaherty would like them to receive the same
information that went to the developers. The developers were also given a copy
of the Dunbar proposal. Councilmember McKnight suggested notifying the two
adjacent businesses. He did not want the businesses to read about it in the paper
that the EDA is again looking to redevelop the lot. Chair Arey did not feel they
needed to receive the proposals from Four Star and Dunbar, but just notify them
that the EDA is looking for someone to redevelop the lot. Member Collignon
suggested dropping in and telling them. Member Flaherty felt that would be fine
and ifthey wanted more information the City could provide that. The board was
discussing notifying the Farmington Steakhouse, the Long Branch, and Gossips.
Staff noted if the businesses are notified they may start asking what the EDA is
looking for. Previously Mr. LaBeau submitted a proposal that did not involve a
building, but an open area. Staff can advise him and the Farmington Steakhouse
that the EDA is again talking with developers. lfMr. LaBeau should ask ifhe
should submit his proposal again, staffwanted to know the EDA's thoughts.
Member Starkman suggested once they are notified, when the proposals are on
the agenda to be reviewed, the adjacent business owners could be invited to the
meeting so they can see what is happening and ask questions. Community
Development Carroll stated so far the board has said packet, letter, personal
contact and asked for consensus as to how to approach them. The board agreed
on personal contact. They agreed they want something more substantial than an
outdoor seating area.
b. Industrial Park - R & L Trucking
Construction plans are being reviewed. Staff obtained information as to how
many trucks will be traveling in and out of the area.
c.
Downtown Area - Exchange Bank Building and Larson Building
Staff invited Mr. Brown III and Mr. Brown IV to the meeting. Neither one was
available to attend. At the closing for the Riste building staff discussed with the
son the need to move forward with the pending items. He understood the need to
do that. The money received from the Riste building will help them fund the
improvements. He did send staff an e-mail with information regarding timing for
the remaining work. He hopes to have contracts on board by the third week in
April with work to begin soon thereafter. Staff feels they need to talk with the
attorney and craft an agreement with specific deadlines and some consequences
for failing to comply with those deadlines. This document should re-iterate the
deadlines entered into a number of years ago. There were two options with regard
to using this contract. One was to use the original contract as a starting point and
amend it to include new deadlines. The other would be to leave the original
document alone and have a separate document. The City Attorney felt the second
option was better. She was concerned there are some remedies for the EDA in the
contract. Mr. Brown is in default currently. If the EDA wanted to take some of
the actions identified in the contract, they could do that now. The City Attorney
.
.
.
.
EDA Minutes
March 27,2006
Page 3
.
d.
.
did not want to lose those remedies so a separate agreement would say all these
things still remain in effect, Mr. Brown is in default, the EDA is not waiving any
rights, but in order to make things clearer, these are the new deadlines. Staff
thought Mr. Brown had plans drawn up for the fire escape and the sprinkler
system, but has not seen plans for remodeling the upper level. For plans that are
done, they just need to select a contractor and get the work done. Staff wanted to
determine if the Brown's are interested in selling the building to someone else
under the right circumstances. A building owner is needed that is prepared to take
a more active role in getting the work finished. The board agreed with staff
suggesting this to Mr. Brown. Member Collignon asked if the EDA has ever
provided a written notice of failure to comply. Staff replied no. Member
Collignon stated the EDA cannot call it in default until they have failed to respond
to written notice of failure to comply. He felt that should be the next step. Staff
noted that would be the most aggressive stance. Member Starkman stated prior to
doing the letter, we may want to consider that the EDA has just purchased the
Riste building and the Brown's are now in receipt of over $95,000. Mr. Brown
indicated that with this money, they can get things going. He took this as one last
chance. Community Development Director Carroll preferred meeting with Mr.
Brown and saying the EDA is prepared to give him the letter saying he is in
default ifthe EDA does not see a certain amount of progress by a specific date.
Councilmember Fogarty felt this should happen quickly. She wanted the letter to
go out next month, if Mr. Brown is not prepared to work with the EDA. She
wants Mr. Brown to put this on the front burner, and the EDA has the opportunity
with the conversion to make sure Mr. Brown understands the EDA is very serious
about economic development and that is a cornerstone to the downtown. She
wants him to understand this is a new board and they are very serious about
development. Member Flaherty noted the middle of April is April 17 and the next
meeting is April 24. If Brown cannot provide the EDA with something by then,
then something more substantive needs to be done. Staff would like to tell Mr.
Brown tomorrow morning that the board discussed this and the EDA would like
him and staffto have a mutually acceptable timetable ready for the EDA to
review at the next meeting. In the event that this cannot be achieved the EDA is
prepared to start pursuing an outline of the contract. There would be 30 days to
draft a contract and a timeline with specific dates. There would be a timeline for
the fire escape, the sprinkler system and the remodeling of the upper level.
Included in the remodeling is redoing the staircase from Oak Street. Staff will
work out a timetable for each of the projects and propose dates to Mr. Brown. If
an agreement is not ready for the next meeting it is because Mr. Brown was not
willing to commit to dates.
Downtown Area - Riste Building
After the closing staff contacted the Police Department to make sure the building
was secure. The back door was frozen open, so City staff secured the opening.
Staff asked for guidance on the demolition of the building. The two options are to
obtain bids to have it demolished at the EDA's cost. The other option is to
continue to talk to developers to see who is interested in the property and see if
EDA Minutes
March 27, 2006
Page 4
e.
f.
they would be willing to handle the demolition and the hazardous materials
abatement as part of what they do forthe project. A developer would be able to
get a better price. Staff feels as long as the building is kept secure to minimize
liability issues, and it is insured, there is enough time to talk with developers to
have them do the demolition. If no one wants to buy the lot with the building on
it, then the EDA will have to demolish it. Member Starkman asked if the land
were sold to a developer to demolish the building would they have to obtain
similar indemnification language for themselves. Staffwould have to obtain a
legal opinion. Member Starkman felt that could be a sticking point in the sale of
the building. Councilmember Fogarty felt the EDA could be a pass through for
that. If the EDA had a contract with someone for demolition in exchange for the
lot, she thought the EDA could contract to have the demolition done and be
reimbursed for that. The board agreed with staff taking 30-60 days to talk with
developers.
.
JlT Powdercoating
There was a portion of what Mr. Milner had originally proposed to build that he
has now decided not to build. Mr. Milner has brought in new plans. The
agreement indicated a March 31, 2006 deadline for picking up and paying for the
permit. His construction plans have to be reviewed again. Staffhas asked that all
plans be reviewed by the end of the day tomorrow and comments be given to Mr.
Milner so he has 48 hours to make any final changes and get the permit by the end
of the week. Staffhas reminded him of the deadline and asked ifhe can still meet
the deadline. A response has not been received. After the March 31, 2006
deadline he has to start construction by May 31, 2006. Member Starkman asked
if Mr. Milner will have the area available to move the trailers off the road. Staff
talked with Mr. Milner about this again. Emergency vehicles needed to get
through to an accident in the industrial park and it was a tight fit to get in between
the trailers. Staff has asked Mr. Milner to not park trailers across from each other
and to park all on one side of the road. Staffhas asked ifhe could grade enough
of the area and put down class five to get the trailers off the road. Mr. Milner
provided a quote of $15,000 to get this done and if it was done in order to get the
trailers off the road for a couple months, they would lose that $15,000 because all
the class five would be destroyed by the grading on the rest of the lot. Police
Chief Siebenaler suggested they start the project soon and put the creation of the
parking lot as one of the first things to get the trailers off the road. Mr. Milner
was hoping to start construction April 1 , 2006 and will give the parking lot first
priority. Councilmember Fogarty suggested calling him on April 3, 2006 ifhe
has not made the March 31, 2006 deadline.
.
Vacant Lot at 4th Street and Main Street
Mr. Heinen has signed the Contract for Private Development. The EDA's
relationship with Mr. Heinen is contingent on getting an arrangement with the
county as to what they will charge the EDA for the lot when it is sold to Mr.
Heinen.
.
.
.
.
EDA Minutes
March 27, 2006
Page 5
6. New Business
a. 305 3rd Street - Former Liquor Store Building
This is now owned by the EDA. A draft lease agreement has been received from
the City Attorney. Economic Development Specialist Schwanz has done some
research with regard to rental rates in the downtown area. Staffwould like some
guidance as to what staff should quote to people and suggested the lower end of
the scale. She contacted two local property owners and spoke with Member
Collignon as to what the going rate is for lease rates. One building owner
mentioned it is difficult to state a going rate because there are a lot of factors such
as location, if the owner has been hired to do a build out which will affect the
rates that tenants would be charged, etc. She determined it could range from $6-
$l2/sq. ft. on an annual basis. The American Savings building was $6.50/sq. ft.
and the building was 2500 sq. ft. The sub-Ieaser is paying $4.32/sq. ft. The post
office is paying $6.63/sq. ft. and Immanuel Dental is paying $11.90/sq. ft. Staff
feels around $6.00/sq. ft. annually would be appropriate. The City has received 4-
5 inquiries regarding leasing the building. Staff suggested a one-year lease. Staff
would like to propose $6.00/sq. ft. and ifthey want to use the lower level it would
be a little more. It would be a one-year lease that could be renewed annually until
the EDA has a better use for it. The leasee would pay all the utilities and taxes.
The other issue is lease hold improvements. They would take the space as is. If
permanent improvements are made they would have to remain with the building.
The coolers would not be compatible with the inquiries received. If the coolers
need to be sold, staff would contact the liquor store staff to handle that. The
board agreed on $6.00/sq. ft. plus utilities and taxes and a one-year lease. Staff
will determine which inquiry would be willing to agree with these terms and
prepare a lease for the EDA to review at the next meeting.
b.
Economic Development Plan
The RFP suggests doing an Economic Development Summit in early May. The
RFP has been sent to five firms. Council would be selecting a facilitator at the
April 3, 2006 Council Meeting. Member Collignon asked what the Council
wanted to obtain from the summit. Councilmember McKnight stated he wanted
to hear people's ideas and visions. Councilmember Fogarty felt the summit is a
great way to brainstorm and vision. We do not know where to start. Member
Hardt felt the summit is a very good idea. The facilitator will work with the
Council to clarify what will happen that day, facilitate the meeting, and prepare
documents afterwards summarizing the meeting. One party who received an RFP
told staff there will not be enough time to get into a high level of detail in half a
day. The challenge will be keeping it on the higher policy level and establishing
the broad parameters. Member Hardt asked the Councilmembers to ask those
who submit proposals, if they have examples of visions. This might help to get
away from specific details. This is the first step in this process. Then the EDA
needs to determine when this will be revisited again. Staff presented a draft
Economic Development Plan and information that has been obtained from other
cities. Member Hardt felt the statement of goals and policies is a good start. Staff
noted this is a recurring theme that comes out of all economic development plans.
EDA Minutes
March 27, 2006
Page 6
Member Hardt felt that is a good news, bad news thing. lfthe EDA comes up
with these same goals in their plan, then he will consider this process to not be a
success. He encouraged the EDA when they meet for the summit to look at
something more specific. For example, he felt there should be a statement as to
how this City relates in terms of a niche to some of the other surrounding
communities. Northfield is known as the college city and Farmington will never
have that. So what role does this community play if there are magnets to a certain
lifestyle. We need to speak to what some of our specific assets are as a town and
make that part of the goals and policies. Resources - as far as affordable housing,
there is an organization called Metropolitan Interfaith Coalition for Affordable
Housing. They are a group of 50 churches that work with social service agencies,
units of government, etc. to promote good quality affordable housing. They may
be a good resource. On page 10 it deals with transportation. He liked the idea of
looking at a variety of transportation opportunities. One possibility that is not
mentioned is rail. This should definitely be added because there is dialogue about
rail coming south of the river and we want to be a part of this. On pages 8 and 9,
there is good information addressing education, but he attended the Dakota
Future's meeting and the one theme that came from that meeting was - people,
people, people. Every one of the business owners, planners, and Chamber people
said your dirt is as good as anyone else's dirt. That will not get you the kind of
economic development you want. It will be people, trained workers who are
readily available in the community. He would like to see the plan go beyond and
look at this. He does not expect this right away. There are 38 counties in the
United States that have a population of 350,000 and 450,000 people like Dakota
County. Out ofthose 38 counties there are only 4 counties that do not have a
four-year higher education campus within the borders of those counties. Dakota
County is very unusual in not having a four-year higher education institution. He
immediately thought Farmington College. Why not have some kind of higher
education campus right here. They are a tremendous economic development tool.
Councilmember Fogarty wondered how many of those counties are in close
proximity to a major metropolitan area. One strategy to solve the transportation
problems is to keep people here. Another item is what is the future of virtual
work in this area. He noted the plan mentions technology and that is good.
Community Development Director Carroll asked if education is a big enough
subtopic to add. Member Hardt felt it was. The message was having well-trained
workers. It is not something this town has ever really thought of. Chair Arey
noted if we do not put it in the plan, we will never address it. Community
Development Director Carroll recalled about 9 months ago Dr. Thomas talked
about using the old hospital facility for a satellite nursing program. This is
exactly what Member Hardt was talking about. Staff agreed education would
warrant its own category.
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Member Collignon noted staff did a great job with so many entities. At the last
meeting, it was mentioned about the EDA becoming the chief economic
development agency. This plan eludes to that. He would like to encourage the
Councilmembers to entertain that the EDA does become the chief economic
.
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EDA Minutes
March 27,2006
Page 7
c.
d.
development specialist for the Council. On page 12, Member Collignon felt the
Council needs to clarify the roles and duties of the EDA and the EDA needs to
work on being that role for the Council and work with the Council, staff, and
others in the community in forming an economic development plan. He proposed
while waiting for the Economic Development Summit that the EDA look at one
or two additional side meetings to discuss the framework to move quicker after
the summit. Member Hardt saw that as doing their homework prior to the summit
and it was a good idea. As far as the summit, Member Collignon felt all of the
EDA should be there. Certain attendees would be invited, and other people would
take the floor and the EDA would listen to their thoughts.
Chair Arey asked if Council saw the EDA as being the lead and being the body to
inform the Council as to what can be done. Councilmember McKnight replied
yes. He envisioned this group doing a large amount of the work. The role of the
EGC should also be included in the discussion. Between now and the next
meeting staff could add information about light rail and education. Ultimately the
Council will have to decide where they want the EDA and staff to spend their
time. Member Starkman asked at what point will they create the task force. Staff
saw that as one of the major parts of the summit. The Council would receive
input from the public as to what the public thinks their role should be.
Community Development Director Carroll asked if there was a way to blend the
original timetable with what the Council wants to do with the summit. It was
suggested to have a special meeting on April 10. That meeting could be just for
this topic. Some members will not be available then, so it was decided to have a
special meeting on April 4, 2006 at 7:00 p.m.
Metropolitan Council- Affordable Housing Needs
Member Hardt attended a special breakfast put on by MICAH to recognize
Economic Development Day and Housing and Redevelopment Day. Mr. Rogness
from Dakota County made a presentation on Dakota County figures relating to the
need for affordable housing. Member Hardt suggested bringing Mr. Rogness to a
future EDA meeting to give his presentation. There is a definite need for
affordable housing in this area. Farmington is a very diverse community.
Providing people with housing that is close to their jobs is very much a part of an
integrated approach to building economic development.
Dakota Future - 2006 Dakota Comity Economic Summit
Member Hardt stated it was an excellent session and recommended others attend
in the future. The speaker talked about how communities should promote
themselves. The MN Chamber of Commerce spoke about how they see economic
development in the future in the state. There was also a panel of businesses from
Dakota County that are very happy here, but there is a constant manpower
shortage.
EDA Minutes
March 27, 2006
Page 8
e.
Industrial Park - EDA-Owned Lot - Possible Site for Mobile Mini Storage
One time there were three parcels in the industrial park that made up one lot.
When this was divided into three parcels the gas pipeline easement was used at
the property line. This is in the area ofKarnnann Daycare and Aerospace. There
is a panhandle off of 20gth Street to access the remaining lot temporarily. Staff
has been talking with Mr. Pat Regan about acquiring this lot for Mobile Mini
Storage which is now located on the former bus garage property owned by Mr.
Regan. The Perkins property, which is next to the Regan property is proposed for
residential development. Along with this development, a portion of the extension
of2l0th Street would be done. The rest of the extension would go through the
Regan property. Mr. Regan has entered into a lease agreement with Mobile Mini
Storage. This business leases storage containers for offices, construction, etc.
The lease contains the area the City had envisioned for the right-of-way for 210th
Street. Mr. Regan understands the City wants the right-of-way, but he has agreed
to the lease with Mobile Mini. lfhe grants the City the right-of-way, he needs to
find a place for his tenant to stack some of the units. This is somewhat of an
industrial type use. The best use of this property is not a storage yard for
containers. It would be nice for a commercial operation. If Mr. Regan gives up
the right-of-way, he will lose 1.5 acres. Some of the advantages to the remaining
lot in the industrial park are it will be easier to get in and out than on TH3, 20gth
Street will be extended to Pilot Knob Road this summer, or traffic could take
20gth Street to Eaton Avenue to go east or west on hwy 50. Another advantage is
this is a secluded spot. There is open space to the north and there are no
residential homes nearby.
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The only issue is screening from the daycare. There is a code provision in the
design standards for the industrial park that says if you have an outdoor storage
area, it has to be screened from adjacent properties regardless of the nature. There
are other businesses that do not have outdoor storage screened completely. If a
berm were built on the property for screening, it could not be built within the
pipeline easement. It would have to be built on the north side of the easement,
which would take up use able space. Trees cannot be planted in the pipeline
easement. The best place to do screening is on the daycare side of the property.
50 ft. into the daycare property, if a row of 12 ft. trees were planted on the outside
edge of the easement, containers stacked 3 units high would be blocked from
view. This would be an advantage to Mr. Regan and his tenant to be able to stack
units 3 units high, because the Planning Commission was opposed to him stacking
them more than 2 units high on the existing property because of the screening
issue. Staffhas contacted the pipeline company, and preliminarily they would
allow units to be stacked on the pipeline easement.
Staffwas asking for recommendations from the EDA regarding several issues.
The first is the screening issue. Staff would prefer to talk with Ms. Jan Karrrnann
regarding planting a row of trees on her property to help screen the property from
this potential use. The board agreed with this. The next issue is price. The .
properties have been marketed for $1.50/sq. ft. The price has always been
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EDA Minutes
March 27, 2006
Page 9
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negotiated down. This is the last EDA-owned property. Staffhas told Mr. Regan
the price would be $1.50/sq. ft. This would be just for the land. There would be
other development fees. There would be a type of land swap where Mr. Regan
would give the City the right-of-way on his property and in exchange for that the
EDA would sell him this lot. Staff is working on an appraisal for the right-of-
way. The board agreed with $1.50/sq. ft. The next issue is land use or zoning.
There are a number of businesses in the industrial park that have storage yards. If
Mobile Mini Storage were to buy the property, they would use it just as a supply
yard. The industrial park zoning category does not have supply yard has a
permitted or conditional use. Which means the EDA would need to make a
recommendation and staff would have to talk with the Planning Commission
about whether they would be comfortable adding supply yard as a permitted or
conditional use in the industrial park. Chair Arey asked if those provisions can
just go into the 2nd Addition of the industrial park, or is it across the board for I-I
zoning. Staff noted the lot is zoned 1- P and this is the only vacant lot in the City
zoned I-P. If the code is changed to put supply yards in any I-P property only the
existing I-P properties could be used for that. Chair Arey noted Mr. Vinge still
has the vacant lot adjacent to his property. Staff replied the EDA has a
contractual relationship with him that requires him to build something on the lot.
If the code is changed, the code would say he could use the vacant lot as a supply
yard, but staff feels the contractual arrangement would trump the code. Staff has
told Mr. Regan that the HRA has not sold lots for speculation. Lots have only
been sold when someone has said they would put a structure on it. If a lot were to
be sold to Mr. Regan that he did not intend to put a structure on, staff could not
recommend that unless there was a specific obligation on Mr. Regan's part to
build a structure at some point. Ifthe EDA agrees, staffwould tell Mr. Regan
they will allow him or his tenant to use the property to stack the Mini Storage
containers for some period oftime, but within a certain number of years the
owner of the property is obligated to build a structure that is x number of square
feet and it would have to meet the design standards. If this lots works for Mobile
Mini, they may want to construct a building.
Member Flaherty asked if there have been other lots where the owner has been
allowed not to build something on it. Staff replied yes, Mr. Milner and Controlled
Air. Mr. Milner has owned the property for five years. Member Flaherty noted
staff mentioned 24 ft. for stacking and asked how high the other properties are
stacking. Staff replied MN Pipe stacks materials 12-15 ft high. Regarding
stacking on the Regan property, the Planning Commission felt this could be
regulated through the CUP. They did not want tall fences and did not have a
problem with stacking units 2 high. They felt the trees Mr. Regan had planted
were enough screening. Staff feels the Planning Commission would agree to
stacking the units 3 high in the industrial park as long as the same screening is
provided. Member Flaherty liked the idea of using trees for screening. She
recalled Mr. Milner purchased two lots and he put one building on the lot and then
there was an arrangement to add on. She asked what tax benefit there would be
other than the City would no longer own that property ifhe does not put any
EDA Minutes
March 27,2006
Page 10
structures on the property. Staff noted there are taxes paid on vacant land even
though it is a lot less. This is why staffwould not be comfortable with letting him
not build a structure indefinitely. Member Flaherty stated there were some
businesses that had proposed storage facilities in the industrial park and that was
turned down. Staff replied that was proposed on the Bergland property. The
problem was with storm water drainage and the cost was prohibitive. That was
not for storage containers, but for a building with rows of garage doors. The
Planning Commission or the Councilor the HRA was not comfortable with that
type of business. They did not see it as being industrial, but more as a retail
service. Member Flaherty noted there are certain requirements as far as what
needs to be on the ground such as class five and asked how much of an area this
would involve. Staff will have to work out that detail. There are existing
businesses that have storage areas with gravel surfaces. Staff was not sure if they
would suggest that they be required t6 pave the entire lot. The draw back to
paving it is it creates a surface water runoff problem. Staffwould require the
driveway be paved and if a building is constructed pave the parking area, but for
the storage yard, staff would not recommend that be paved. Staff did not know
how many units would be stored at anyone time. Member Flaherty was
concerned about letting someone store something for a period oftime. In the past
members have expressed frustration with Mr. Milner's progress on getting his
second building built. She was also c.oncerned with stacking higher than what has
been allowed for other businesses.
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Member Collignon agreed with Member Flaherty. Community Development
Director Carroll noted in the last four years he has not received any interest in the
lot. As far as storage containers being near the daycare, the daycare is an
exception. It is the only non-industrial business allowed in the industrial park. It
was allowed as a service to the people who work in the park. Ms. Karrmann
should be aware that there will be industrial uses all around her. This could be
addressed through screening.
.
Member Flaherty was also concerned with the fact they do not allow steel
buildings. These containers are very large and when stacked would be as large as
a building. She feels they would be compromising the standards for the industrial
park.
Chair AIey clarified that the 1.5 acre easement is not a one-for-one trade for this
lot. Staff explained if someone determined they were of equal value it would be,
but staff did not know if that would be the case. Chair AIey stated Mr. Regan
could get $3.00/sq. ft. if that is the determined market value versus the $1.50/sq.
ft. Staff was not proposing to split the industrial park lot into pieces. If Mr.
Regan sold 1.5 acres at $2.00/sq. ft., but he bought 3.5 acres at $1.50/sq. ft. he is
still paying more money. The decision is what does the EDA want to sell
property for. Should it be sold at an appraised price or the price it has been
marketed for. Chair AIey wanted to understand that all the EDA is buying from .
Mr. Regan is just the right-of-way or the whole triangle. Staff replied just the
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EDA Minutes
March 27, 2006
Page 11
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right-of-way. The next question is of'the two locations, which is more suitable for
Mobile Mini Storage. Staff felt there would be worse problems having them
stacked across the street from a residential neighborhood. The lease with Mobile
Mini is for 10 years. If Mobile Mini is there for 10 years, that will have an impact
on the ability to develop the residential properties. If a reasonably acceptable
place can be found for Mobile Mini to move some of its operations, there is a
chance they may move all of their operations. Then there is the opportunity to
redevelop the Regan site and the residential properties. This would be in the
City's best interest. Staff needs to negotiate with Mr. Regan, and did not want to
bring something back to the EDA that was not acceptable. Council has indicated
a desire to move this forward quickly as they see 21 Oth Street as an important
connection.
Chair key did not mind having the storage units there, but would like to see it on
paper that Mr. Regan needs to construct a building within three years. Member
Hardt agreed with setting a time limit. Consolidating the operations of the mini
storage is a great idea and would add value. He asked if there was a way to
encourage that. Staff noted the EDA could require that. Member Flaherty was
concerned they are setting themselves up for future inquiries on other parcels of
land where people will want to sit on it. She was also concerned they will hear
from other property owners who have approached the City in the past with things
that have been turned down. Member Hardt noted the Regan property is key to
developing a piece of the puzzle. The City gets the road.
Councilmember McKnight appreciated the potential resolution, but he is
concerned with the consistency issue. He needs more answers before he could
direct staff to talk with Mr. Regan. Member Flaherty asked if Mr. Regan was not
willing to sell just a right-of-way, or is that not the City's preference. Staff noted
Mr. Regan's response is he has a tenant that needs that space. If staff can find
another place to stack the units, he will talk with staff. Councilmember McKnight
understood Mr. Regan to say at the Planning Commission that he needs to be
bailed out, not forced out.
Chair key felt there was enough concern that this is something the EDA would
not like.
Southeast Corner of Intersection of Highway 3 and Highway 50
There are six parcels at this intersection that have been annexed. Staff has been
approached by an individual that wants to lease a building on one of the properties
for an assembly-type operation. He has the option to construct panels that would
go into homes. The material would be brought to the site, assembled into panels
and taken to construction sites. These properties were annexed as A-I. At some
point the comp plan designation and zoning needs to be decided. An assembly
use would not fall under a B-1 use. This is going to the Planning Commission on
April 11, 2006. The property is approximately 2.5 - 4 acres. The EDA
recommended allowing this on an interim basis. They would like to see
EDA Minutes
March 27,2006
Page 12
something better than what is there now and would not like to see any actions that .
would limit the ability to move towards that. Chair Arey would leave the time
limit up to the Planning Commission as to what they think.
7. Executive Director's Report
8. Adjourn
MOTION by Hardt, second by Flaherty to adjourn. APIF, MOTION CARRIED.
Respectfully submitted,
~/V?~
~
Cynthia Muller
Executive Assistant
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f:rs
SUBORDINATION AGREEMENT
THIS SUBORDINA nON AGREEMENT (this "Agreement"), is made and entered into
as of the _ day of , 2006, by and among the ECONOMIC
DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON, a
Minnesota public body corporate and politic (the "Authority") and MILNER
DEVELOPMENT, L.L.C., a Minnesota Limited Liability Company ("Buyer"), and
ASSOCIATED BANK N.A., a Wisconsin corporation (the "Lender").
.
WITNESSETH:
WHEREAS, the Authority sold to the Buyer subject to Declaration of Covenants (the
"Declaration") filed as Document #960311 and dated as of September 12, 1996, property located
in the City of Farmington, Minnesota, legally described as follows:
Lot One (1), Block Two (2), Farmington Industrial Park 2nd Addition, according
to the plat thereof now on file and of record in the Office ofthe County Recorder,
Dakota County, Minnesota
and hereby made a part hereof (the "Property"); and
WHEREAS, the Property was conveyed by the Authority to the Buyer pursuant to that
certain Limited Warranty Deed dated as of , _ (the "Deed"), filed of
record in the office of the Dakota County Recorder on , _, as Document
No. ; and
WHEREAS, the Authority and the Buyer entered into a Lot Improvement Time Limit
Extension Agreement ("Agreement") as of December 12, 2005, for the Property whereas in the
event Buyer does not comply with the timelines for Improvements of the Property as set forth
under Paragraph I of the Agreement, the Buyer shall re-convey the Property to the Authority
. pursuant to Paragraph 2 of the Agreement; and
124740
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WHEREAS,in order to provide funds for the development of the Property, the Lender is
providing a loan to the Buyer in the amount of
($_,_..--J ("Loan") pursuant to the terms of a Promissory Note dated as of
(the "Note"), by and between the Buyer and the Lender; and
.
WHEREAS, the Loan is secured by, among other things, a Mortgage encumbering the
Property dated as of (the "Mortgage"), executed by the Buyer in
favor of the Lender and filed of record in the office of the Dakota County Recorder on
, as Document No. ; and
WHEREAS, the Lender has required, as an express condition to disbursement of the
proceeds of the Loan that certain rights of the Authority under the Deed be subordinated to the
Mortgage.
NOW THEREFORE, in consideration of the foregoing recitals and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree as follows:
1. The Authority hereby agrees that its right to re-conveyance of the Property under the
Declaration and the Agreement shall be, and the same hereby is, subordinate to the
Mortgage.
2. This Agreement can be waived, modified, amended, terminated or discharged only .
explicitly in a writing signed by the Lender.
3. This Agreement shall be governed by and construed in accordance with the laws of
the State of Minnesota.
4. This Agreement may be executed in any number of counterparts, all of which taken
together shall constitute one agreement, and any of the parties hereto may execute
this Agreement by signing any such counterpart
5. This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns.
IN WITNESS WHEREOF, the parties hereto have made and entered into this
Agreement as ofthe day and year first above written.
[Remainder of Page futentionally Left Blank.]
[Signature Pages to Follow.]
.
124740
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Signature Page to Subordination Agreement
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF FARMINGTON
By:
Chairperson
And:
Executive Director
STATE OF MINNESOTA )
) ss
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this _ day of
2006, by and, respectively the Chairperson
and Executive Director of the Economic Development Authority in and for the City of
Farmington, a Minnesota public body corporate and politic, on its behalf.
Notary Public
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City of Farmington
325 Oak Street, Farmington, MN 55024
(651) 463-7111 Fax (651) 463-2591
www.ci.farmington.mn.us
April 21, 2006
Mr. Hosmer Brown III
Mr. Hosmer Brown N
3922 W. 50th Street, #201
Edina MN 55439
(via swface mail and viafax to 612-925-0555)
(via swfacemail and via e-mail tohbrown2@mn.rr.com)
RE: Exchange Bank Building & Larson Building
Gentlemen:
As I indicated to Hosmer Brown N in person on March 21, and in voicemail messages that I
subsequently left for both of you and for your architect, and in my telephone conversations with Hosmer
Brown III on April 19 and/or April 20, the Farmington EDA has directed me to determine whether it will
be possible to achieve a mutually acceptable and specific schedule for the completion of the renovation
and construction work that was referred to in the Contract for Private Sale (hereinafter "the Contract")
dated November 9, 1998 between the Farmington HRA and the 2004 Real Estate Company.
As you know, the Contract provided (in Section 5.3 thereof) that the "first phase" of construction included
the "completion of the first floors in both buildings" and the "construction...ofthe fire escape." The
Contract specified that" ...the Developer shall substantially complete the first phase of construction not
later than ten (10) months after this Agreement is signed" (i.e., by September 9, 1999). The Contract also
provided (in Paragraph 5.3) that the "...second phase shall be the completion of the second floors of both
buildings." The Contract specified that the substantial completion deadline for the second phase was
"...not later than fifteen (15) months after this Agreement is signed" (i.e., by February 9,2000).
While some of the work referred to above has been completed, much of it has remained uncompleted,
despite the fact that it is now more than six years after the latest of the contractual deadlines referred to
above. Although we appreciate the fact that Hosmer Brown N indicated in a March 24 e-mail that it was
his". . . hope to have the contractors. . . on board by the third week in April," today is the end of that week,
and the Building Official and I have not been contacted by any contractors nor have we seen any evidence
that anyone is preparing to initiate the completion of any of the unfinished construction work.
The Building Official and I have prepared the following proposed schedule for the completion of the
work in question:
1. Fire Escape and Oak Street Access/Stairway to Great Hall
Task
Submit com lete construction lans and buildin ermit a lication if re uired)
Commence construction of fire escape, construction of new Oak Street access, and
renovation of stairway to Great Hall (*or within 14 days of final approval of
construction lans, whichever is later
Complete construction (including final approval by Building Official and Fire
Marshal)
Deadline
Ma 17,2006
June 14,2006*
August 23,2006
Tuk .'0~
Submit complete construction plans and building permit application (ifreqUl ed)
.
2. Sprinkler System
Commence installation of sprinkler system Hall (*or within 14 days of final approval
of construction lans, whichever is later
Complete installation of sprinkler system (including final approval by Building
Official and Fire Marshal)
3. Electrical System
Task
Submit com Jete construction lans and buildin ermit a lication if re uired
Commence electrical system work (*or within 14 days offinalapproval of
construction lans, whichever is later
Complete electrical system work (including fmal approval by Building Official and
Fire Marshal)
October 18, 2006
4. Grand Hall ceiling replacement and decorative renovation(s); completion of upper floor
of Larson Building; renovation of passageway between upper levels of Larson
BuildmgandGrandHall
Task Deadline
Submit complete construction plans and building permit application (if required) August 16,2006
Commence construction/renovation work September 20, 2006*
Complete construction/renovation work (including fmal approval by Building Official December 20, 2006
and Fire Marshal)
.
All ofthe proposed deadlines fall on the Wednesday preceding a regularly scheduled [Monday] EDA
meeting. This arrangement would enable staffto provide the EDA with a written report, to be prepared
on the Thursday or Friday before each meeting, regarding compliance or non-compliance with each
deadline. You will note that the proposed deadlines have been staggered so that the higher priority
(public safety) projects can be started first, and to give you the option of starting the projects sequentially
rather than all at the same time. The proposed schedule envisions that all of the projects will be
completed by the end of the year. We do not consider this to be an unreasonable expectation, given the
patience that the HRA and the EDA have demonstrated to date. Finally, I should emphasize that nothing
contained in this letter is intended to be, nor should it be interpreted as, a waiver of any of the HRA' s
and/or EDA's contractual rights or remedies under the Contract in question.
Please review the proposed schedule and then contact me at 651-775-5962 at your earliest convenience to
let me know whether the proposed schedule is acceptable. The EDA members have indicated that they
would like one or both of you to attend the EDA meeting next Monday night at 7:00 p.m. to discuss the
proposed schedule and to answer any questions that they may have regarding your plans for the work in
question. When you call me in response to this letter, please let me know which of you will be in
attendance on Monday night.
It is my understanding that the City Attorney will likely recommend to the EDA that any mutually
acceptable schedule for the completion of the remaining work be incorporated into an Amendment to the
Contract, to clarify the contractual rights and responsibilities of the parties, including the potential
consequences for failing to comply with the schedule. Any such Amendment would presumably be
.
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.
.
prepared after next Monday night's meeting so that it could be reviewed by the EDA at its meeting on
May 22 and executed by the parties shortly thereafter.
I will be out oftown this weekend, but you are still welcome to call me at 651-775-5962 on Saturday or
Sunday if we do not have an opportunity to discuss this matter today. I will also be out of town on
Monday and therefore will not be attending Monday night's EDA meeting, so any written response that
you might want to provide on Monday should be e-mailed to Economic Development Specialist Tina
Schwanz at tschwanz@ci.farmington.mn.us or faxed to her at 651-463-1611. A copy should also be e-
mailed to City Attorney Andrea Poehler at AMcDowellPoehler@ck-law.comor faxed to her at 651-452-
5550.
Thank you.
Very truly yours,
Kevin Carroll
Executive Director
Farmington EDA
651-463-1860 (City Hall)
651-775-5962 (cell phone)
cc:
City Attorney Andrea Poehler
Economic Development Specialist Tina Schwanz
Farmington EDA
3
"
'.
Tina Schwanz
aErom:
~ent:
To:
Cc:
Subject:
Kevin Carroll
Saturday, April 22, 2006 10:53 AM
Tina Schwanz
Andrea Poehler (External)
FW: Tentative JIT Construction Schedule
Tina,
This (below) is the JIT scheduling e-mail that I had in mind when I asked you to look for one on
Friday. You can print it out and take it to the EDA meeting for reference. It might be useful for you or
Andrea to ask Mr. Milner if the schedule is still accurate or valid, in light of various developments that
occurred last week AFTER this e-mail was sent on Tuesday afternoon.
Kevin Carroll
Community Development Director
City of Farmington
651A63-1860 (City Hall)
651-775-5962 (cell phone)
I just received this from Tim Milner.
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-----Origi na I Messageu---
From: Lee Smick
Sent: Tuesday, April 18, 20062:13 PM
.0: Kevin Carroll; Dave Sanocki
Subject: FW: Tentative JIT Construction Schedule
As I stated in the last e-mail,is this possible?
-----Original Message-----
From: tim (mailto:tim@jitpowdercoating.com]
Sent: Tuesday, April 18, 20062:04 PM
To: Lee Smick
Cc: Chuck Bainey
Subject: Tentative JIT Construction Schedule
Lee,
Just finished up with the General and the Excavator. Here is our tentative plan.
Wed. 4-19 Survey and lot staking
<<hurs. 4-20 Mobilization
ri. 4-21 Start site work
Fri. 4-28 1st phase completed (basic excavation and temporary
storage area creation)
1
'f Mdh 5/1 - Fri 5/5 Relocate fence, trailers, etc. to temporary storage
area. Trailers off street by Friday evening, 5/5.
.hiS assumes no issue in getting the excavation permit, the 2 curb cut permits (dock area and driveway)
and, most importantly of all, reasonable weather!!
Let me know your thoughts and what I need to due for permits. Thanks for all your help!
Tim
Tim Milner
President
JIT Powder Coating Company
21020 Eaton Ave
Farmington, MN 55024
651-463-4664 (office)
651-463-4627 (facsmile)
.
.
2
Tina Schwanz
.om:
ent:
To:
Subject:
Kevin Carroll
Monday, April 24, 2006 1 :26 PM
Tina Schwanz
FW: Title Issue
You may want to print out the following e-mails and have copies of them available at the EDA
meeting to provide further background information (if needed) regarding the issues that Mr. Milner
apparently intends to bring up for discussion tonight. let Andrea know that you have done so, either
by forwarding THIS e-mail to her OR mentioning this to her when she arrives for tonight's meeting.
KPC
-----Original Message---u
From: Kevin Carroll
Sent: Thu 4/20/2006 2:01 PM
To: tim
Cc: Andrea Poehler (External); Robin Roland
Subject: RE: Title Issue
Tim,
.was away from City Hall yesterday afternoon, and involved in meetings this morning that ended a
short while ago.
I know that the City Attorney has discussed this matter with you, and with the closer, and possibly with
others. I am forwarding your e-mail (below) to her for review and comment. As you know, the title
company raised this issue regarding the Right of Reverter for first time (with the City/EDA, anyway) on
Tuesday or Wednesday of this week. legal documents of the type requested by the closing company
(a Quitclaim Deed), especially those that essentially represent the waiver or relinquishment of the EDA's
contractual rights, cannot typically be executed by City staff members or by the City Attorney without
the EDA's knowledge and express consent. There is no way to get the EDNs consent before your
scheduled closing tomorrow. The EDA members can discuss this issue at their next regular meeting on
Monday, April 24 (not April 25, as indicated in your e-mail). If your closing company is unwilling or
unable to close your transaction unless it has a document in hand that the EDA will not be in a position
to even consider until next Monday night, it may be necessary to consider rescheduling the closing
unless some mutually acceptable alternative can be devised.
I wilI ask the City Attorney to initiate further interactions with the closer and with Mr. Gaydos (if
necessary) to explore options for addressing the current situation, which I personally think will be more
productive than issuing ultimatums.
Kevin Carroll
.ommunity Development Director
City of Farmington
651-463-1860 (City Hall)
1
651-775-5962 (cell phone)
From: tim [mailto:tim@jitpowdercoating.com]
Sent: Thursday, April 20, 200610:56 AM
To: Kevin Carroll
Subject: Title Issue
.
Kevin,
There is an issue regarding the title which is preventing me from closing on the construction loan and
starting to draw funds to pay the architects/contractors who have been working on my expansion
project. I need you assistance in getting this issue resolved immediately. I left 2 messages for you
yesterday afternoon, April 19, urgently asking for a phone call back to discuss this issue. It is 10:30 AM,
April 20, I have not heard back yet. I thought I would try via e-mail.
Briefly, the issue is a City's plan to take a subordinate position on the lot as part of the construction
financing. Russ Gaydos, Associated Bank, tells me that this is highly unusual. Personally, I don't ..
understand the City's need to have such a position at this point in time. If we can get the civil drawin~
approved, I plan to start either Friday or Monday!
Because I let too many entities take positions/liens on the building/property back in 1995, Russ and I
have spent considerable effort the last 2 weeks cleaning up the title in preparation for closing. I will
not repeat that mistake again.
I had an option on that lot dating back to 1995. I purchased that lot as a favor to the City of
Farmington because the City needed help (through my payment of assessments) to cover the
construction costs of 208th St. But as a result, I have been forced to continually deal with
development contracts and stipulations which have lead to nothing but burden for JIT Powder
Coating. A burden that I never would have had if I had choose to keep the option rather than help
the City fund the street improvement.
I am not willing to sign documents giving a subordinate position to the City. If this is a requirement, .
then the expansion project stops and we can immediately move toward the sale of the lot back to the
City. I will focus my efforts on finding a different location in a different community.
2
_ expect that you will contact the EDA attorney and eliminate this requirement so closing can proceed
"n Friday, April 21. If I show up at closing, and the subordination is still there, I will stop the process.
I will then show up at the EDA's April 25 meeting to initiate the next step.
Tim
Tim Milner
President
jlT Powder Coating Company
21020 Eaton Ave
Farmington, MN 55024
651-463-4664 (office)
.51-463-4627 (facsmile)
.
3
Tina Schwanz
.om:
ent:
To:
Subject:
Kevin Carroll
Monday, April 24, 2006 1 :26 PM
Tina Schwanz
FW: Title Issue
You may want to print out the following e-mails and have copies of them available at the EDA
meeting to provide further background information (if needed) regarding the issues that Mr. Milner
apparently intends to bring up for discussion tonight. Let Andrea know that you have done so. either
by forwarding THIS e-mail to her OR mentioning this to her when she arrives for tonight's meeting.
KPC
-----Original Message-----
From: Kevin Carroll
Sent: Thu 4/20/2006 2:01 PM
To: tim
Cc: Andrea Poehler (External); Robin Roland
Subject: RE: Title Issue
Tim.
.was away from City Hall yesterday afternoon. and involved in meetings this morning that ended a
short while ago.
I know that the City Attorney has discussed this matter with you. and with the closer. and possibly with
others. I am forwarding your e-mail (below) to her for review and comment. As you know. the title
company raised this issue regarding the Right of Reverter for first time (with the City/EDA. anyway) on
Tuesday or Wednesday of this week. Legal documents of the type requested by the closing company
(a Quitclaim Deed). especially those that essentially represent the waiver or relinquishment of the EDA's
contractual rights. cannot typically be executed by City staff members or by the City Attorney without
the EDA's knowledge and express consent. There is no way to get the EDA's consent before your
scheduled closing tomorrow. The EDA members can discuss this issue at their next regular meeting on
Monday, April 24 (not April 25, as indicated in your e-mail). If your closing company is unwilling or
unable to close your transaction unless it has a document in hand that the EDA will not be in a position
to even consider until next Monday night, it may be necessary to consider rescheduling the closing
unless some mutually acceptable alternative can be devised.
I will ask the City Attorney to initiate further interactions with the closer and with Mr. Gaydos (if
necessary) to explore options for addressing the current situation. which I personally think will be more
productive than issuing ultimatums.
Kevin Carroll
.ommunity Development Director
City of Farmington
651-463-1860 (City Hall)
1
651-775-5962 (cell phone)
From: tim [mailto:tim@jitpowdercoating.com]
Sent: Thursday, April 20, 200610:56 AM
To: Kevin Carroll
Subject: Title Issue
.
Kevin,
There is an issue regarding the title which is preventing me from closing on the construction loan and
starting to draw funds to pay the architects/contractors who have been working on my expansion
project. I need you assistance in getting this issue resolved immediately. I left 2 messages for you
yesterday afternoon, April 19. urgently asking for a phone call back to discuss this issue. It is 10:30 AM,
April 20, I have not heard back yet. I thought I would try via e-mail.
Briefly, the issue is a City's plan to take a subordinate position on the lot as part of the construction
financing. Russ Gaydos, Associated Bank, tells me that this is highly unusual. Personally, I don't .
understand the City's need to have such a position at this point in time. If we can get the civil drawin~
approved, I plan to start either Friday or Monday!
Because I let too many entities take positions/liens on the building/property back in 1995, Russ and I
have spent considerable effort the last 2 weeks cleaning up the title in preparation for closing. I will
not repeat that mistake again.
I had an option on that lot dating back to 1995. I purchased that lot as a favor to the City of
Farmington because the City needed help (through my payment of assessments) to cover the
construction costs of 208th St. But as a result, I have been forced to continually deal with
development contracts and stipulations which have lead to nothing but burden for JIT Powder
Coating. A burden that I never would have had if I had choose to keep the option rather than help
the City fund the street improvement.
I am not willing to sign documents giving a subordinate position to the City. If this is a requirement, .
then the expansion project stops and we can immediately move toward the sale of the lot back to the
City. I will focus my efforts on finding a different location in a different community.
2
_ expect that you will contact the EDA attorney and eliminate this requirement so closing can proceed
.n Friday, April 21. If I show up at closing, and the subordination is still there, I will stop the process.
1 will then show up at the EDA's April 25 meeting to initiate the next step.
Tim
Tim Milner
President
JIT Powder Coating Company
21020 Eaton Ave
Farmington, MN 55024
651-463-4664 (office)
.51-463-4627 (facsmile)
.
3
~
Tina Schwanz
.om:
ent:
To:
Subject:
Kevin Carroll
Monday, April 24, 2006 1 :26 PM
Tina Schwanz
FW: Title Issue
You may want to print out the following e-mails and have copies of them available at the EDA
meeting to provide further background information (if needed) regarding the issues that Mr. Milner
apparently intends to bring up for discussion tonight. Let Andrea know that you have done so, either
by forwarding THIS e-mail to her OR mentioning this to her when she arrives for tonight's meeting.
KPC
-----Original Message-----
From: Kevin Carroll
Sent: Thu 4/20/2006 2:01 PM
To: tim
Cc: Andrea Poehler (External); Robin Roland
Subject: RE: Title Issue
Tim,
.was away from City Hall yesterday afternoon, and involved in meetings this morning that ended a
short while ago.
I know that the City Attorney has discussed this matter with you, and with the closer, and possibly with
others. I am forwarding your e-mail (below) to her for review and comment. As you know, the title
company raised this issue regarding the Right of Reverter for first time (with the City/EDA, anyway) on
Tuesday or Wednesday of this week. Legal documents of the type requested by the closing company
(a Quitclaim Deed), especially those that essentially represent the waiver or relinquishment of the EDA's
contractual rights, cannot typically be executed by City staff members or by the City Attorney without
the EDA's knowledge and express consent. There is no way to get the EDA's consent before your
scheduled closing tomorrow. The EDA members can discuss this issue at their next regular meeting on
Monday, April 24 (not April 25, as indicated in your e-mail). If your closing company is unwilling or
unable to close your transaction unless it has a document in hand that the EDA will not be in a position
to even consider until next Monday night, it may be necessary to consider rescheduling the closing
unless some mutually acceptable alternative can be devised.
I will ask the City Attorney to initiate further interactions with the closer and with Mr. Gaydos (if
necessary) to explore options for addressing the current situation, which I personally think will be more
productive than issuing ultimatums.
Kevin Carroll
.ommunity Development Director
City of Farmington
651-463-1860 (City Hall)
1
~
651-775-5962 (cell phone)
.
From: tim [mailto:tim@jitpowdercoating.com]
Sent: Thursday, April 20, 2006 10:56 AM
To: Kevin Carroll
Subject: Title Issue
Kevin,
There is an issue regarding the title which is preventing me from closing on the construction loan and
starting to draw funds to pay the architects/contractors who have been working on my expansion
project. I need you assistance in getting this issue resolved immediately. I left 2 messages for you
yesterday afternoon, April 19, urgently asking for a phone call back to discuss this issue. It is 10:30 AM,
April 20, I have not heard back yet. I thought I would try via e-mail.
Briefly, the issue is a City's plan to take a subordinate position on the lot as part of the construction
financing. Russ Gaydos, Associated Bank, tells me that this is highly unusual. Personally, I don't ..
understand the City's need to have such a position at this point in time. If we can get the civil drawing.'
approved, I plan to start either Friday or Monday!
Because I let too many entities take positions/liens on the building/property back in 1995, Russ and I
have spent considerable effort the last 2 weeks cleaning up the title in preparation for closing. I will
not repeat that mistake again.
I had an option on that lot dating back to 1995. I purchased that lot as a favor to the City of
Farmington because the City needed help (through my payment of assessments) to cover the
construction costs of 208th St. But as a result, I have been forced to continually deal with
development contracts and stipulations which have lead to nothing but burden for JIT Powder
Coating. A burden that I never would have had if I had choose to keep the option rather than help
the City fund the street improvement.
I am not willing to sign documents giving a subordinate position to the City. If this is a requirement, .
then the expansion project stops and we can immediately move toward the sale of the lot back to the
City. I will focus my efforts on finding a different location in a different community.
2
"
.. expect that you will contact the EDA attorney and eliminate this requirement so closing can proceed
~n Friday, April 21. If I show up at closing, and the subordination is still there, 1 will stop the process.
1 will then show up at the EDA's April 25 meeting to initiate the next step.
Tim
Tim Milner
President
JIT Powder Coating Company
21020 Eaton Ave
Farmington, MN 55024
651-463-4664 (office)
.51-463-4627 (facsmile)
.
3
LQtJ.
Tina Schwanz
_From:
ent:
0:
Cc:
Subject:
Kevin Carroll
Monday, April 24, 2006 1:45 PM
Tina Schwanz
Lisa Dargis
Latest Draft of EDP
~
042406 ED?
vA.doc (165 KB)
Tina,
I have attached a revised version of the EDP. I've turned off the tracking option, which seemed to be
cluttering up the drafts. I've made the changes that were discussed at the last special EDA meeting. The
major change was the implementation of the new "assessment/objectives/tools and options/action
plan" structure within Sections 3 through 9 of Part E. It's admitted not very "elegant" yet -- I basically
took the existing text and tried to fit portions of it into the new areas. Some of will clearly require
some rephrasing in later drafts in order to make it fit the new topic headings (Le., "assessment") better.
Sections 4 and 5 of Part E also have some new language.
Please print out the attachment and then copy it (duplexed) for distribution at tonight's meeting.
_ou're also welcome to give the EDA members a copy of this explanatory e-mail. Please ask them to
comment on the new structure.
I'm copying Lisa on this e-mail as a "back-up," in light of the computer problems that we experienced
last week.
If the EDA members want to schedule another special meeting to further discuss the EDP, go ahead and
set one up for any night that doesn't conflict with other commitments that are already on my schedule.
I'd personally like to avoid Thursday nights, if posssible,no matter what my schedule may show or not
show.
Thanks. I hope you have a productive meeting tonight!
Kevin
651-775-5962
.
1
Tina Schwanz
.rom:
~ent:
To:
Subject:
Kevin Carroll
Monday, April 24, 2006 1 :26 PM
Tina Schwanz
FW: Title Issue
You may want to print out the following e-mails and have copies of them available at the EDA
meeting to provide further background information (if needed) regarding the issues that Mr. Milner
apparently intends to bring up for discussion tonight. Let Andrea know that you have done so, either
by forwarding THIS e-mail to her OR mentioning this to her when she arrives for tonight's meeting.
KPC
-----Origi na I Message-----
From: Kevin Carroll
Sent: Thu 4/20/2006 2:01 PM
To: tim
Cc: Andrea Poehler (External); Robin Roland
Subject: RE: Title Issue
Tim,
_was away from City Hall yesterday afternoon, and involved in meetings this morning that ended a
short while ago.
I know that the City Attorney has discussed this matter with you, and with the closer, and possibly with
others. I am forwarding your e-mail (below) to her for review and comment. As you know, the title
company raised this issue regarding the Right of Reverter for first time (with the City/EDA, anyway) on
Tuesday or Wednesday of this week. Legal documents of the type requested by the closing company
(a Quitclaim Deed), especially those that essentially represent the waiver or relinquishment of the EDA's
contractual rights, cannot typically be executed by City staff members or by the City Attorney without
the EDA's knowledge and express consent. There is no way to get the EDA's consent before your
scheduled closing tomorrow. The EDA members can discuss this issue at their next regular meeting on
Monday, April 24 (not April 25, as indicated in your e-mail). If your closing company is unwilling or
unable to close your transaction unless it has a document in hand that the EDA will not be in a position
to even consider until next Monday night, it may be necessary to consider rescheduling the closing
unless some mutually acceptable alternative can be devised.
I will ask the City Attorney to initiate further interactions with the closer and with Mr. Gaydos (if
necessary) to explore options for addressing the current situation, which I personally think will be more
productive than issuing ultimatums.
Kevin Carroll
e :ommunity Development Director
City of Farmington
651-463-1860 (City Hall)
1
I expect that you will contact the EDA attorney and eliminate this requirement so closing can proceed
.n Friday, April 21. If I show up at closing, and the subordination is still there, I will stop the process.
I will then show up at the EDA's April 25 meeting to initiate the next step.
Tim
Tim Milner
President
JIT Powder Coating Company
21020 Eaton Ave
Farmington, MN 55024
651-463-4664 (office)
.51-463-4627 (facsmile)
.
3