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HomeMy WebLinkAbout06.26.06 EDA Packet City of Farmington 325 Oak. Street Farmington, MN 55024 . A Proud Past - A Promising Future Committed to Providing High Quality, Timely and Responsive Service to All of our Customers AGENDA ECONOMIC DEVELOPMENT AUTHORITY June 26, 2006 - 7:00 p.m. City Council Chambers, City Hall 1. Call Meeting to Order 2. Approve Agenda 3. Consent Agenda a. Bills b. May 22, 2006 Minutes 4. Public Hearings (None) 5. Unfinished Business a. Downtown Area -- Me Vicker Lot . At its May meeting, the EDA agreed to enter into a 60-day Letter of Understanding with Mr. Joe Heinen regarding the McVicker lot. Shortly thereafter, City staff faxed and/or e-mailed the Letter of Understanding to Mr. Heinen. He signed it and e-mailed back to us a .pdfversion of the document (a copy is included in your packet). I've asked him to send us the signed original, or to bring it to the EDA meeting on June 26, so that the EDA's Chair and Executive Director can sign it. The EDA's attorney and Mr. Heinen's attorney are in the process ofreviewing and discussing the previously prepared draft of a Contract for Private Development between the EDA and Mr. Heinen. I do not anticipate that all of those details will be resolved by Monday night, but I intend to provide you with a progress report at that time. After last month's EDA meeting, I relayed to Mr. Heinen the EDA's comments regarding the combination of architectural details that they would prefer to see. Mr. Heinen took those recommendations under advisement, and asked his architect to make some modifications to the elevation drawings that you saw last month. Although the revised drawings were not available for the EDA packet, I believe that Mr. Heinen intends to bring them to Monday night's EDA meeting if they have been completed by then. The McVicker lot is located directly across the street from a building (the State Bank Building) that is a designated Farmington heritage landmark. Staff members intend to determine whether that fact will require the developer to get the HPC's consent to the proposed exterior design. We suspect that it will not, but this topic will be discussed at the upcoming HPC meeting on Tuesday, June 27,2006. . r b. Industrial Park - R & L Trucking The City's Building Official met with the contractor on June 21 to discuss some newly proposed modifications of the original plans for the building. For budgetary reasons, R & L apparently intends t. reduce the initial size of the truck terminal from 98,975 square feet to 69,967 square feet, which reduces the number of loading dock doors from 156 to 107 doors (50 on each side and 7 on the end). There will be some proportionate downsizing of the maintenance building, the office space and the number of parking stalls. The revised plans for the truck terminal building identify the "now-unused" portion of the original building footprint as future expansion space. Future parking expansion areas will also be identified. It is anticipated that the staff review of the revised plans will be completed during July so that construction can begin in July or August. c. Downtown Area - Exchange Bank Building and Larson Building (1) First Amendment to Contract for Private Sale. The EDA approved the proposed First Amendment at its meeting in May. Staff subsequently notified the Browns of the EDA's approval and requested that a representative of their corporate entity sign and return the document. A copy of the signed document was faxed to City Hall on June 15 (see attachment). That fax was preceded (on the same day) by a faxed letter from Mr. Brown (also attached) explaining some of the circumstances surrounding various aspects of the renovation project. (Incidentally, Mr. Brown told me on June 22 that he would be putting the signed original First Amendment document in the mail that day.) (2) Submission of Building Permit Apolication. Exhibit C of the First Amendment to Contract for Private Sale [hereinafter ''the schedule"] required that construction plans and a building permit application be submitted by May 17, 2006 for the fire escape and the Oak Street stahway remodeling. . The construction plans were submitted on May 16. As of the May 22 EDA meeting, the permit application had not yet been submitted. Shortly after the May 22 EDA meeting, the Browns finalized the selection process for their general contractor, and a building permit application was subsequently submitted on May 31,2006. (3) Construction of Fire Escaoe and Oak Street Stairway. The schedule required that the construction of the new fire escape and the new Oak Street entry/stairway "commence...by June 14, 2006 or within 14 days of final approval of the construction plans, whichever is later." The construction plans have not yet been approved, due to the need to first obtain a Certificate of Appropriateness from the City's Heritage Preservation Commission [HPC]. See attached Memo from HPC consultant Robert Vogel dated June 12,2006. The Minnesota Historical Society [MHS] has also commented on the renovation plans; see attached letter dated June 20, 2006. The HPC members will consider and discuss all of these issues at their meeting on June 27,2006. It is my understanding that the Browns intend to attend the HPC meeting. I spoke with the Browns' architect (Mr. Quinn Hutson) on June 22 regarding the June 20 letter from the MRS. He and I believe that MHS staff may have made some incorrect assumptions about certain aspects of the renovation (i.e., whether or not the plaster will be removed from the walls). There also seems to be an unresolved issue regarding the extent to which the HPC and/or the MHS can regulate interior renovations that do not affect the historic exterior of the building. As soon as these issues are resolved, City staff members can proceed with the finalization of their plan review and issue the building permit. The Browns will then have 14 days to commence construction, pursuant to the terms of the schedule. (4) Sprinkler SyStem Plans. With regard to the sprinkler system, the schedule required that the. . . . Browns submit"... complete construction plans and building permit application (if required) by June 14, 2006." Although evidence suggests that work on the plans is in progress, the plans and the permit application have not yet been submitted to the City. I advised the Browns to provide the EDA with a written explanation of any relevant circumstances regarding the status of the sprinkler system work. Your packet includes a letter from Mr. Brown dated June 22, 2006 and a Memo from architect Quinn Hutson dated June 22, 2006, both of which were faxed to City Hall on June 22. The Browns, their architect and their general contractor have all indicated to us that the construction plans and permit application will be delivered to City Hall on Monday, June 26. At Monday night's meeting, we will let you know whether that occurred. If it did/does, the schedule specifies that the construction of the sprinkler system should commence "...by July 19, 2006 or within 14 days of final approval of construction plans, whichever is later." (5) Electrical system. With regard to the electrical system upgrade, the schedule requires that the Browns submit"... complete construction plans and building permit application (if required) by July 14, 2006." This deadline will occur before the July EDA meeting. City staff will strongly and repeatedly encourage the Browns, their architect, their general contractor and their electrical contractor to meet this contractual deadline. d. Downtown Area - Riste Building At last month's meeting, EDA members seemed to be generally in support ofthe idea of City staff members renewing discussions with Xcel Energy regarding the possible acquisition of the Xcel building located on the west side of the Riste building. I've initiated contact with an Xcel representative regarding this subject, and I'll provide you with a progress report at Monday night's meeting. e. Industrial Park - JIT Powdercoating Work is well underway regarding the expansion of Mr. Milner's business. I have attached an e-mail from him dated June 14,2006 that provides more information regarding the status of his project. f. Downtown Area - Vacant Lot at lh Street and Main Street On Friday, April 28, 2006, Tina Schwanz, Mr. Joe Heinen and I met with Dakota County staff in Hastings to discuss the minimum net sale proceeds that Dakota County will require the EDA to pay to Dakota County following the sale of the property in question to Mr. Heinen. Dakota County staff members indicated at that time that they would need to conduct some internal discussions in order to decide how they wanted to handle the "sale proceeds question" and certain environmental issues. Following the April 28 meeting, City staff initiated periodic contacts with Dakota County staff via telephone and e-mail.in an effort to determine when they would be completing their analysis. It appears that there may have been some miscommunications between the Treasurer/Auditor's Office and the Environmental Management department that resulted in a delay of several weeks. Eventually everyone received all necessary information, and Dakota County then sent us (on June 21, via e-mail) the written opinion that we had verbally requested in April regarding the "transfer price" for the conveyance of the property from the EDA to Mr. Heinen. We now know that we can finalize our acquisition of the property from the State and then sell it to Mr. Heinen for $1, without any expectation on the part of Dakota County that the EDA pay to the County an amount in excess of $1. I have contacted the State to request that the EDA be sent a deed to the 4th & Main lot. I will work with the City Attorney to schedule a closing on the transfer of the property to Mr. Heinen, so that he can proceed with his house-moving plans and the subsequent finalization of his redevelopment plans for the site upon which the "about-to- be-moved" house is currently located. g. Downtown Area -- 305 3rd Street- Former Liquor Store Building A "for rent" sign has been prepared and placed in the window, and staff members are continuing to fiel. occasional inquiries regarding the building. As you know, we previously discussed the possibility of putting an ad in the local newspaper, but I believe that the EDA didn't want to incur that expense until it could be determined whether any of the parties who were initially interested were willing to sign a lease. Those discussions have not yet produced a tenant for the building, so it may be time to consider running an ad. We will have specifics for you at Monday night's meeting regarding advertising options and ad rates. If a few months of advertising don't produce a tenant, we may need to consider listing the property with a realtor or with a company that specializes in the marketing of commercial space (Cerron, Welsh, etc.). h. Economic Development Summit; Economic Development Plan The City Administrator will continue to work with staff and with the City Council to clarify the manner in which (and the timetable under which) the Council would like to (1) proceed with its original plan to conduct an Economic Development Summit and (2) thereafter complete the Economic Development Plan [EDP]. In the meantime, City staff members will continue their work on various "component parts" of the eventual EDP. For example, staff and the EDA members have (from the beginning) intended that the final EDP would include a detailed list of existing businesses (including addresses, phone numbers, contact persons, square footage or acreage figures, etc.), for general informational purposes and to provide baseline data that could be used to quantify future commercial growth. Several months ago, you were shown a draft . of an Excel spreadsheet that was being used to collect and organize the data in question. Since that tim staff members have continued to collect information, compare and combine existing business lists (downtown business list, industrial park business list, utility billing information, Chamber of Commerce membership list, etc.), and otherwise move forward with that particular portion of the eventual EDP. Staff members have also continued to work on draft recommendations for the EDA regarding the future commercial development and/or redevelopment of specific geographic regions of the City. These recommendations will presumably be wanted or needed in connection with task force meetings or public hearings regarding the Economic Development Plan, or in connection with meetings or public hearings regarding the impending update of the City's Comprehensive Plan (due to the Met Council in 2008), whichever come( s) first. Your packet includes a copy of a summary of recent and planned commercial/industrial activity that was prepared for the City Administrator, along with a related map. This information is being provided to you because it includes references to some current (and potential future) EDA projects. A modified version of this summary and map could potentially be included in the "assessmenf' portion of the eventual EDP. Until then, staff members will revise the summary and map periodically to ensure that the information remains current and accurate. We are also preparing an edited version of the summary and map (deleting references to completed projects and a few speculative future projects) that could potentially be placed on the City's web site and/or distributed to the public upon request. 6. New Business . '. a. Downtown Area - Heinen Redevelopment Area (Elm Street) . As indicated at last month's meeting, Mr. Joe Heinen is giving consideration to redeveloping most of the south half of the block located north of Elm Street and between 3rd Street and 4th Street. He may have some conceptual drawings to show to the EDA members at Monday night's meeting, in order to gauge the EDA's initial level of interest. b. Downtown Area - Rambling River Days The Rambling River Days Committee will be using the McVicker lot, the Blaha property and the former liquor store during Rambling River Days. The McVicker lot and the Blaha property have been used in the past, without problems or incidents. Tina has worked out the necessary arrangements regarding the use of the former liquor store for the craft show; see attached e-mail from her details. c. Tour of "The Grand" in Northfield During the May EDA meeting, we discussed the possibility of touring "The Grand" in Northfield to develop a better understanding of how historic structures can be renovated and returned to productive commercial uses. We preliminarily talked about touring the building in the late afternoon or early evening on June 26, but I later determined that the building's management typically does not work on Mondays. The building's owner would be available to give us a tour ofthe building in the late afternoon or early evening (4 PM to 7 PM range) on Wednesday, June 28 or Thursday, June 29 if anyone is interested. We can determine at Monday night's meeting if one of these dates would work; if not, we can talk about potential alternate dates. . 7. Executive Director's Report A verbal update may be provided at the meeting regarding ongoing or anticipated matters involving housing and/or economic development (other than those referred to above). 8. Adjourn . . . . 1 ~ DATE ~ I 05/31/2006 05/31/2006 06/05/2006 06/02/2006 INVOICE LIST FOR EDA MEETING JUNE 26, 2006 AT 7:00 p.m. I I $ $ $ $ DESCRIPTION CAMPBELL KNUTSON CAMPBELL KNUTSON XCEL ENERGY-142 ELM ST AQUILA - 305 3RD ST Page 1 $ AMOUNT I 1,081.50 175.50 7.97 14.91 $ 1,279.88 I APPROVAq "'~'-" . 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 May 31,2006 Account # 1852G I - I_d,"'~ \ -aft. ~D , 00::', IQ --rD I i l -'7 -, ,2..2 IOIO,bl..fo? ....t:- I I 0 'l.ltJY 0 3 I ~ I ,0 t (o~o,t&i.f03 173.2-B IO.70,y..td3 J~; 5S Lf3&,Q8 IDqS.~lfQ3 .2&(~ (050 J~L{o3> CREDITS. "PAYME~TS BALANCE a '-1115, hYO 11"?'.s , V-'l 1852-000 RE: GENERAL LEGAL SERVICES (RETAINER) ~SO':':I., ~ ~'i;;.,_aa~( \ --' SERVICES RENDERED TO DATE: LlloOO. 0403 M '\ 6,942.50 6,000.00 109.63 0.00 -6,942.50 $6,109.~ 1852-001 RE: GENERAL LEGAL SERVICES (NON-RETAINER) t~ ~l'3-= 'i~~'. gE, SERVICES RENDERED TO DATE: 4Caro . ~03 - 2.,L'-f. aU/r 1,979.00 135.00 407.00 0.00 -1,979.00 $542.00 1852-002 RE: PASS THROUGH LEGAL SERVICES ~~~'l~~~:~ li-l~ SERVICES RENDERED TO DATE:"--- L.f.IdX5I~D3 - 2?..;2."").SD 2,452.50 0.00 0.00 -675.00 $2,452.50 City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 SUMMARY STATEMENT PREVIOUS BALANCE FEES EXPENSES . . 675.00 1852-003 RE: FORFEITURES (NON-RETAINER) SERVICES RENDERED TO DATE: 189.50 472.00 0.63 0.00 2 ,00. ~o3 $472.63 -189.50 1852-013 RE: EDA GENERAL MATTERS (NON-RETAINER) SERVICES RENDERED TO DATE: 2,287.50 1,081.50 0.00 0.00 1~?-OOOI(ol{tB -2,287.50 $1,081.50 1852-018 RE: WAUSAU POND EXPANSION SERVICES RENDERED TO DATE: 27.00 189.00 0.00 0.00 41\0; tvY03 $189.00 -27.00 1852-019 RE: ASH STREET POND PROJECT SERVICES RENDERED TO DATE: 162.00 81.00 0.00 0.00 4iDS.0;'103> $81.00 -162.00 Page: 2 May 31,2006 Account # 1852G PREVIOUS BALANCE FEES EXPENSES CREDITS PAYMENTS BALANCE 1852-022 RE: EDAlEXCHANGE BANK BUILDING ~ tpX!,WoJ SERVICES RENDERED TO DATE: 0.00 175.50 0.00 0.00 0.00 $175.50 1852-025 RE: LALANI CRIMINAL APPEAL I oB) .~l03 SERVICES RENDERED TO DATE: 816.85 66.50 0.00 0.00 -816.85 $66.50 1852-028 RE: WETLAND BUFFER VACATION 0402,01../03 SERVICES RENDERED TO DATE: 213.00 63.00 116.00 0.00 -213.00 $179.00 1852-029 RE: EDAl2004 REAL ESTATE COMPANY SERVICES RENDERED TO DATE: 44.88 0.00 0.00 0.00 -44.88 $0.00 . 1852-031 RE: ISO #192 (NEW SCHOOL) V. CITY OF FARMINGTON SERVICES RENDERED TO DATE: 1,282.50 3,348.00 0.00 0.00 -1,282.50 1852-033 RE: ISO #192 (NEW SCHOOL) - PASS-THROUGH SERVICES RENDERED TO DATE: 0.00 2,295.00 0.00 0.00 7/00. ~L{O~ $3,348.00 0.00 4-&00 .lvY 03 $2,295.00 1852-999 RE: PROSECUTION MATTERS SERVICES RENDERED TO DATE: 4,919.55 6,000.00 87.83 0.00 -4,919.55 {oSO. ~\.{o3 $6,087.83 19,539.28 22,359.00 721.09 0.00 -19,539.28 $23,080.09 . Amounts due over 30 days will be subject to a finance charge of .5% per month (or an annual rate of 6%). Minimum charge - 50 cents. . CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax 1.0. #41-1562130 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 Page: 1 May 31,2006 Account # 1852-013G 68 RE: EDA GENERAL MATTERS (NON-RETAINER) SERVICES RENDERED TO DATE: HOURS 05/01/2006 AMP Telephone call from Kevin re: agenda items. 0.20 27.00 05/03/2006 JJJ Milner - office conference and emails re: subordination . agreement, dispute. 0.50 67.50 AMP Email from Councilmember McKnight; pull documents re: subordination issue. 0.50 67.50 05/05/2006 AMP Email to Councilmember McKnight re: subordination issue; em ail to Kevin; email to Tim Milner; emails from Kevin Carroll. 0.80 108.00 05/15/2006 AS Milner Development - Phone conference from Kevin Carroll regarding subordination agreement with Milner Developmetn; draft assessment agreement. 1.20 150.00 AMP Milner - Telephone calls from Tina and Kevin; review and revise assessment agreement; email to Kevin. 0.70 94.50 05/16/2006 AMP Milner - Emails from Tim and Kevin re: special assessment agreement; telephone call from Kevin; telephone call to Russ Gaydos; telephone call from Kevin. 0.90 121.50 05/17/2006 . AMP Telephone call from Kevin re: Heinen contract closing and Larson building contract amendment; review contract; prepare closing checklist. 1.10 148.50 City of Farmington Page: 2 May 31, 2006 Account # 1852-013G 68 RE: EDA GENERAL MATTERS (NON-RETAINER) SERVICES RENDERED TO DATE: HOURS 05/19/2006 AMP Email from Kevin; review revisions to agreement; email to Kevin; email from Kevin; review letter of understanding; revise; email to Kevin; review agenda; emaHs from and to Kevin on agenda issues. 1.90 256.50 OS/22/2006 JJJ Telephone call with KPC re: Ramblin' River Days, use of City building. AMOUNT DUE 0.30 8.10 40.50 1,081.50 1,081.50 $2,287.50 TOTAL CURRENT WORK PREVIOUS BALANCE 05/31/2006 Payment - thank you -2,287.50 . TOTAL AMOUNT DUE $1,081.50 . 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. 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 May 31,2006 Account # 1852-022G 1 RE: EDAlEXCHANGE BANK BUILDING SERVICES RENDERED TO DATE: HOURS 05/01/2006 AMP Revise amendment to agreement; em ail to Kevin. 0.90 121.50 . 05/02/2006 AMP Telephone call from Tina; telephone call from Tina. AMOUNT DUE 0.40 1.30 54.00 175.50 TOTAL CURRENT WORK 175.50 TOTAL AMOUNT DUE $175.50 . 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. .';l Xcel Energy' . Please Return This Portion With Your PaymentTo: Northern States Power Company ?:YpijrA@9.M'Nijfflp~~. :p~~~Wim9r~Wij :iAmMI#~i~f\9r~W#!j:m .:::Am@ritgij#I9.~~@I 51 -4874009-4 06/30/2006 $1 7.67 Auto P ay 0 0 N ot Th a n k Yo u ! R etu rn AT 01 055010 588518204 A**3DGT 1.1.1..1.1.11.....1.1,1..1...11..11.1...1.1..1..1.1.1.1'1.1.11 P.O. BOX 9477 MPLS, MN 55484-9477 FARMINGTON CITY OF ATTN: ACCTS PAYABLE 325 OAK ST FARMINGTON, MN 55024-1374 5~063006rl48740094rlOODODOD1767000000D1767 Detach and Retain This Portion For Your Records Questions: Call Please Call: (800) 481-4700 Heariflg Impaired: (800) 895-4949 Fax: 1800)311-0050 Activity Summary Date of Bill Number of Payments Received Statement Number Jun 05, 2006 1 71238750 Previous Balance Total Amount of Payments Balance Forward +Current Charges Current Balance - - - - - - - = $21.70 - - $21.70 CR - - $0.00 $17.67 -- - $17.67 - - - or write to us at: Northern States Power Company PO BOX 8 EAU CLAIRE WI 54702-0008 c ~ " Current Bill $7.97 9. $17.67 Total Current Bill . .. $ ~~$ ~tJt}.$qtf lo130 ::i.!r,i~~fili!!~~~llni;i::!:ii!::ill!llill~f,~~!li!iii:ii! 06/39/2006 $17.67 ~g~~ ~~~i~~:~~t~~ n institution and immediately credited. Statement # 71238750 tl Xcel Energy- . FARMINGTON CITY OF ATTN: ACCTS PAYABLE 325 OAK ST FARMINGTON, MN 55024-1374 See back of bill for more information. Page 1 of3 Account #: 51-4874009-4 Statement Date: 06/05/06 , . . . A~~& Aquila o~1 "I:., ...' 'I,. 0 ~ ~lO \~\q J) \ ' Helofullnformation Thank you for allowing Aquila to serve you. It has been our pleasure. 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 natural 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. 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. Customer Charge covers part of the fixed costs of delivering your energy, regardless of usage. PO BOX 4649 CAROL STREAM, IL 60197-4649 24 hour Customer Service call 24 hour Eme1gency Service call :::5D5 " FGTN MUNICIPAL LIQUORS 1-800-303-0752 1-800-303-0357 Account Number: Amount Now Due: Billing Date: Auto Bank Transfer: 2059 6652 50 $14.91 06/02/06 06/19/06 Previous Account Balance Payments Received Previous Balance Due Fees/Adjustments Current Charges Gas Total This Bill New Account Balance $15.87 15.87 CR 0.00 0.00 $14.91 14.91 $14.91 I /",\.it~)F:-:.-i", 1:tli~ '-;hh.-J;1::: "~~ '/;11 '~~:h~r' 'iiJ.} ;;}J~;zit~~ $14.91 ~D &c(z-3. $ 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: $ i $5 , $20 Other $10 11,1,1,,11111,,11,11,1.,111.11,1.,1111,1,,11.1,,1111,1,1,111,1 AQUILA (PNG) PO BOX 4649 CAROL STREAM IL 60197-4649 1.111111'11111111.1111,"1.1,,1.11,"1,.11.11111.,11,1"11.111 205966525000000001591000000014915302 Please enter amount enclosed See back of bill for CheckLINE sign up or address change. 11.11",111..111,.111111.,,11,1,111,1.,11,11.11,11,11,1",1111 P09G5R 3 34501 1 AV 0.293 00034501 118 34501 DP13 FGTN MUNICIPAL LIQUORS 325 OAK ST FARMINGTON MN 55024-1374 1,1.1"1.1,11,"111,1,1..1,"111111.111.1.1..1..1.1,1,11111.11 . . . MINUTES ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING MAY 22, 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 2. Approve Agenda MOTION by Hardt, second by Starkman, to approve the agenda. APIF, MOTION CARRIED. 3. Consent Agenda MOTION by Hardt, second by McKnight, to approve the Consent agenda as follows: a. Bills b. April 24, 2006 Minutes c. May 2, 2006 Special Minutes APIF, MOTION CARRIED. 4. Public Hearings None 5. Unfinished Business a. Downtown Area - McVicker Lot Mr. Joe Heinen has expressed a high level of interest in the McVicker lot. Mr. Heinen had prepared some concept drawings for the EDA's review. He would construct a two-story mixed-use building. Member Hardt liked the plans and would like to see the balcony feature. The appearance is consistent with the look of the downtown area. Councilmember Fogarty asked about the width of the walkway and the open area next to Gossips. Mr. Heinen would prefer to keep a space between adjacent buildings. Councilmember Fogarty felt the space needed to be covered or remove the staircase rather than having a dead open space. Members would prefer to see the stairs removed. If the plans with Mr. Heinen move forward staff will talk with the owner of Gossips regarding the staircase. Perhaps Mr. Heinen would pay for the cost of removing the stairs and another option for the stairs. Staff prepared a Letter of Understanding that would remain in effect for 60 days during which the EDA would work exclusively with Mr. Heinen to determine whether a Contract for Private Development can be achieved. The 60 days would end the day prior to the July 24, 2006 EDA meeting. MOTION by Hardt, second by Starkman to direct staff to enter into the Letter of Understanding with Joseph Heinen. APIF, MOTION CARRIED. The board continued to review the various options on the concept drawings. EDA Minutes May 22, 2006 Page 2 b. Industrial Park - R&L Trucking One minor detail needs to be resolved before the building permit for the new truck terminal can be issued. This should be done within the next week or two. c. Downtown Area - Exchange Bank Building and Larson Building Staff presented a First Amendment to Contract for Private Sale. This includes the schedule discussed at the last EDA meeting. There were also several other additions. Staff has not received a response from Mr. Brown to the changes. Mr. Brown would prefer to make final renovations once they have a tenant. Staff would like to have more of the work done up front so the space looks better. By May 17, 2006 the developer was required to submit complete construction plans and building permit application for the fire escape and the Oak Street stairway. The construction plans were delivered on May 16, 2006, but a building permit application was not submitted. The architect submitted plans that were done some time ago. He was not aware the deadline included the building permit application. They had planned to continue the bidding process with a deadline of May 30, 2006, and then the contractor with the winning bid would apply for a building permit. Member Collignon commented that the original contract requires a Notice of Failure to Comply before declaring default. He stated he had previously mentioned this notice should be prepared to be ready for the default if this does happen. He still feels this should be prepared for the next EDA meeting. Members did not see how he could meet the next deadline of June 14,2006. Community Development Director Carroll noted there has been a lot of work done to update the plans and felt he should be given more time. If someone new were to come in, they would have to start from scratch and the use of the building would be delayed even further. Once a contractor is chosen, staff would be working with the contractor to enforce the time line. Member Hardt agreed with drawing up the Notice of Failure to Comply for the June meeting. The board should know by then whether Mr. Brown will be able to comply with the timeline. MOTION by Hardt, second by Flaherty to approve the First Amendment to Contract for Private Sale. Voting for: Arey, Flaherty, Fogarty, Hardt, McKnight, Starkman. Voting against: Collignon. MOTION CARRIED. Staffwill prepare a Notice of Failure to Comply and bring it to the June meeting if needed. d. Downtown Area - Riste Building Staffhad hoped that a developer would also want the lot containing the Xcel building next to the Riste building. Staff is prepared to initiate these discussions with Xcel again. e. Industrial Park - JIT Powdercoating Mr. Milner has picked up and paid for the permit and grading has begun. All of the trailers have been removed from 208th Street. The fees are $10,000 greater than estimated. Mr. Milner has elected to have some of the fees assessed. This will be brought to Council on June 5, 2006. . . . . EDA Minutes May 22, 2006 Page 3 f. Downtown Area - Vacant Lot at 4th Street and Main Street This has taken longer than anticipated because of Dakota County's approach to the contamination issues. They have spent a lot of time discussing the venting system. Dakota County staff feels that transferring the property to Mr. Heinen for $1 will be approved. g. Downtown Area - 305 3rd Street - Former Liquor Store Building Staffis marketing the property and there is a For Rent sign in the window. Interests have been received from two parties, one for a hobby shop and one for a handmade-jewelry store. Staffhas concluded it is worth it to have someone remove the conveyor at their expense. The Police Department may have an interest in the safe. . . h. Economic Development Plan Staffis trying to determine if they can look at certain geographic areas. The downtown area has received a lot of discussion lately. Currently there is not a document for a downtown plan. Staff distributed a preliminary sample work plan for discussions showing some items staff has been working on. Member Hardt understood the importance of moving ahead and agreed the downtown area is a good place to start. The EDA would be starting without a vision statement, without a statement of principles, without a formal sense of how the downtown might fit in with the overall economic development plan, but to wait for all these to be in place we would have to wait awhile. A downtown plan could be used as a pilot for those elements. The board could write up a brief statement of principles about development in the downtown area, develop a vision statement of how they see development in the downtown area and how it would fit with the rest of the community. He would be in favor of moving ahead with the idea of building in the broader elements. Councilmember McKnight recalled that City Administrator Herlofsky was going to meet with staff regarding a timeline for the economic development plan. Community Development Director Carroll added that staffwas going to wait until the results of the community survey were received. He was not sure if the economic development plan should be on hold for the small amount of information that will be received. He clarified that Council wanted to pick a facilitator to facilitate the meeting. There was minimal discussion about the facilitator assisting in deciding what should be discussed at the summit. The missing piece is how we get to the point where the Council feels comfortable with what will happen at the meeting. Council needs to decide if they want to do this on their own with or without staff input or with staff input and also the facilitator. The other alternative is to have a workshop without a facilitator to decide what we want. Councilmember McKnight stated this is a part of the economic development plan and he did not want to waste anyone's time by moving forward with this and then change direction later. Member Hardt felt the key to the summit is framing the right questions and the preparation for the meeting. The questioning of what is our vision is something the consultant may be able to EDA Minutes May 22, 2006 Page 4 guide. Member Hardt does not see the summit as the opportunity where everyone has the right answer. He sees the summit and the preparation process as being a part of the process of having the right answers emerge. Member Flaherty stated from the direction of this discussion, the board will have a difficult time divorcing a sample work plan for the historic downtown from the economic development plan. CounciImember Fogarty suggested inviting City Administrator Herlofsky to attend an EDA meeting. Member Starkman saw the document from staff as being a valuable part of the economic development plan framework. He felt getting a facilitator in place was the next logical step. Member Collignon felt there was no need to engage in further conversation until the Council has had their workshop. Community Development Director Carroll stated staffwill continue to put together summaries of things the EDA is doing or has recently done for the City Administrator. New Business a. Downtown Area - Heinen Redevelopment Area (Elm Street) Mr. Heinen was unable to attend the meeting tonight and had intended to present some concept drawings to the board. The drawings include the area from the carpet store to the end of the block. Currently the building would end prior to the auto repair business. He would put a new fayade on the existing building and connect that to the new building and go east. Staff is encouraging him to look at a two-story building. The current building would remain one story. There would be a passage way from the rear parking to the street. There would also be an elevator in the building. Mr. Heinen is uncertain if the upper floor would be offices or residential. The sequence of events would be that Mr. Heinen would acquire the 4th and Main Street lot, move the brick house to that lot, finish his plans for the McVicker lot and start construction, and during the late fall, winter and spring, finalize the plans for the Elm Street building and start on that when the building on the McVicker lot is finished. Mr. Heinen will be invited to the next EDA meeting. 6. b. Downtown Area - Rambling River Days A letter was received from the Rambling River Days committee requesting to use the McVicker lot and the former liquor store building. Staffwas open to letting the committee use the liquor store for crafters, but was concerned about having onsite supervision. Staff would prefer to have a volunteer stationed at the building for supervision or at least have someone check on the activities every hour. CounciImember Fogarty would agree to allow them to use the building ifit was supervised. Members suggested leasing the building to CEEF or having a Letter of Understanding so they would be responsible for it, however the event takes place prior to the next meeting so a document could not be approved. It was determined the Rambling River Days committee should designate a person to be responsible for the space. Ideally they would be present the entire time or at least check on it hourly. A contact should be provided in case of problems. The restroom will not be allowed for public use. A key will be given to the Park and . . . . . . EDA Minutes May 22, 2006 Page 5 Rec Department or the Police Department for them to unlock and lock the building. c. Seminar - Economic Development 101 Member Hardt felt the seminar was good. It was facilitated by Jana King and there was a presentation by Dakota Futures explaining their services. He had a copy of the powerpoint presentation and discussed this with the board. Member Collignon also attended the seminar and gave his views of what was discussed. 7. Executive Director's Report 8. Adjourn MOTION by Collignon, second by Hardt to adjourn. APIF, MOTION CARRIED. Respectfully submitted, ~~~ Cynthia Muller Executive Assistant . . . MAY-24-2006 14:01 CITY OF FARM I NGTON 651 463 1611 P.Bl ~ City of Farmington 325 O~k Street Farmington, MN 55024 (651) 463-1830 Fax (651) 463~1611 I To; ~OtJ ttj l ~n From: Company: Phone #: Fax #: lQ\J... .-- ???;;fh- 'LCOloO Date: Phone # Pages Sent: Subject: CLltvv at t) MeJtb\rJ{~J~ o Urgent 0 For Your Review 0 Please Comment Tina Schwanz 651-463-1821 ~ '2 L/' f LOtA{J 4 o Please Reply MAY-24-213136 14: 131 CITY OF FARMINGTON 651 463 1611 P.02 . LETTER OF UND,ERSTANDING THIS AGREEMENT made and entered into as ofthis 22nd day of May, 2006, by and between the ECONOMIC DEVELOPMENT AVTHORITY OF THE CITY OF FARMINGTON, MINNESOT ~ a Minnesota public body corporate and politic, hereinafter "EDA" and JOSEPH M. HEINEN. hereinafter "Developer". WHEREAS~ there exists a vacant parcel of property located at 3 t 7 & 323 3rd Street in the City of Fanning ton (locally referred to as the "McVicker Property"), as described on Exhibit "A" attached hereto (hereinafter the "Subject Property"); and WHEREAS, Developer wishes to explore the possibi Iity of acquiring the Subject Property for development of the site in a manner consistent with the EDA's preferences and requirements. NOW, tHEREFORE, IT IS MVTUALL Y AGREED AS FOLLOWS; 1. Until midnight on July 24, 2006, EDA will work solely with Developer to investigate the possibility of the Developer (a) obtaining title to the Subject Property and (b) undertaking the redevelopment otthe Subject Property; . 2. Both parties will use their best efforts to attempt to bring to fruition the development in question. 3. Both parties are aware and acknowledge that many contingencies and unknowns presently existJ anyone or more of which could make the project cost-prohibitive or impracticable, and that both parties are expending (or may expend) swns of money and/or time with full knowledge of the risks involved, unless otherwise agreed to by both parties in writing, neither party shall be liable for any of the other party's expenses incurred under the process outlined in the tenns ofthis Letter of Understanding. 4. If, by midnight on July 24, 2006, Developer's proposed redevelopment plan is approved by the EDA and by any other required parties, Developer shall have sixty (60) days from the date of the final such approval to provide written verification of any necessary financing and to enter into a Contract for Private Development with BDA for redevelopment of the Subjeet Property, upon terms acceptable to both parties. . [1] . . . MAY-24-2006 14:01 Dated: 5,hif /OtP Dated: CITY OF FARMINGTON 551 453 1511 P.03 DEVELOPER: F41)~ ECONON.UCDEVELOPMENTAUTHOmTY OF THE CITY OF FARMINGTON, MINNESOTA By: ChaiIperson By: Executive Director [2] MAY-24-213136 14:131 CITY OF FARMINGTON P.04 651 463 1611 EXHIBIT "A>> That part of Lots 5 and 6, Block 23, Town ofFannington, Dakota C01titty, Minnesota, described as follows: Beginning at a point on the West line of Lot 6, Block 23, Town of Fannington, Dakota Calmty, Mhmesota distant 20 feet North oithe Southwest comer ofsaid Lot 6; 1hence East 110 feet; thence South 30 feet; thence W cst 110 feet; thence North 30 feet to the point of beginning. Pro # 14-77000-061-23 AND All that part of Lots 7 and 8, Block 23, Town of Farmington. Dakota County, Minnesota, described as follQws: Beginning at the Northwest comer of said Lot 7; thence South, along the; West line of said Lot 7, 30 feet; thence East 110 feet; thence North 30 feet; thence West 110 feet to the point of beginning; together with that part ofthe vacated alley adjacent thereto described as follows: Beginning at the Northwest comer of said Lot 7; thence East 110 feet; thence North 10 feet; thence West 110 feet; thence South 10 feet to the point of beginning. PIN # 14-77000.086~23 [3] TOTAL P. 04 . . . l . . . HOSMER. A. DR.OWN ATTORNE.Y-AT-LAW ;,922. W. 5d" Street. Suite #201 E.DINA. MINNE.SOT A '5+2+ (b 12) 927~88,7 FAX (6 (2),921-B8j8 Facsimile Transmission Sheet Town of To _l1.:f-!'~'Li.:..1L.~rroll - J:g.rrningtQn Your Fax #: __a~1-1~J=12.21 community Development Director Fro : _~ Hosmer A. Br~ ____________._____~ Da c: _~une_l..2_'__.1.906 ______ Time: _______________ the We are sending ,you __2- pagcs, including this page. It ,you do not rcceive ntirc transmittal, please contact us at (612) 927-88,7. Our Facsimile numberis ~7~&&7~ (fax is inoperable for a short time) ~ .dY; ~r ~ ~-,4/ ~"..._.- ~ ~. ;lft; 4' . l(-? / . /,./~..... THI . MAlE-RIAL in this transmittal nla.!:j be. c.onfjdential and mlll~ be su~c:ct to at'torne~dje1"lt privilege. This ansmittal shlllll not be:: construed as a waiver of an.!:! cl"irn of confidentialit~ or privilege. It .You hove ('eceived this tr nsmitt/ll in error, ple/lse notif.!:j the sender immediat-e1.!:j and return the original in~or(flation b~ U.s. Mail to the: se: der. Furthe:rdissemination is prohibited. c f,lnc::!,,':Jc be' , e'1i'I qli'lli\? -c:"[ -t.JrI r f . FIRST AMENDMENT TO CONTRACT FOR PRIVATE SALE T S AMENDMENT TO CONTRACT FQR PRlV ATE SALE (hereinafter referred to e" endment") is made o~ /.3 . 2006, by and between the ECONOMIC LO MENT AUTHORlT IN AND FOR THE CITY OF FARMINGTON, fi'kla USIN AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF TON, a Minnesota public body corporate and politic, hereinafter "EDA," and 2004 ATE COMPANY, a Minnesota corporation, hereinafter "Developer." REcrr ALS EREAS, on November 9, 1998, the EDA's predecessor, the Housing and . ent Authority in and for the City ofFannington (the "HRA"), entered into a Contract ale with Developer (the "Contract"); REAS, on . 2005, by City of Farmington Ordinance No. --> the City armin reformed the HRA as the Economic Development Authority and for the City of . gton ("EDAlBuyer''); REAS, Section 5.3 of the Contract provides that the "first phase" of construction "completion of the first floors in both buildings and construction of the ... fire escape" Developer shall substantially complete the first phase of construction not later than ten after this Agreement is signed," that is by September 9, 1999; REAS, Section 5.3 of the Contract states, U[t]be second phase shall be the completion e seco d floors of both buildings" and sball be substantially completed "not later than fifteen this Agreement is signed ...," that is by February 9, 2000; REAS, as of the date of this Amendment, Developer has failed to substantially "first phase" and the "second phase" of the construction; REAS, the parties wish to amend the Contract to provide revised. deadlines for f improvements; . 124 3 1 C f...lnc::::r.,...,':::ll::r b,:,~ qRR?-~t-Nnr . NO , THEREFORE, for good and valuable consideration, recei}?Jt of which is hereby ac owled ed, the parties to this Amendment do hereby amend the Contract as follows: Section 5.3 of the Contract is amended in its entirety to read as follows: Exc pt for unavoidable delays as defined below, Developer shall commence and complete tructio of improvements identified in Exhibit C and in accordance with the schedule attached and incorporated herein as Exhibit C. All construction shall be in conformity with the ap ved nstruction Plans. For the purpose of this Section 5.3, unavoidable delays mean delays w ch are e direct result of strikes, litigations of third parties, fire. war, material shortage) causes be nd the Developer's control or other casualty to the improvements, or the act of any federal. or 10 govemment unit except those acts of the EDA authorized or contemplated by this eement. During construction, the Developer shall make reports in such detail and at such times y r onably be requested by the EDA and/or by CitylEDA staff concerning the actual 58 of nstruction. . The Contract shall be amended to add as Exhibit C the Exhibit C attached See . on 3. No other Amendments. All original terms of the Contract shall remain in ct exce t as amended hereby, and' the parties agree to be bound and to perform all of the nants d agreements in the Contract at the time and in the manner therein provided. The para aphs herein are fully incotpOmted into the terms of this Amendment. EBB WHEREOF, the parties have executed this Amendment as of the day and above. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON BY: Chairperson AND: Executive Director ESOT A ) )5S. ) The oregoing instrument was acknowledged before me this _ day of . 2006 and by . respectively the Chairperson and irector of the Economic Development Authority. a Minnesota public body corporate and for the City of Farmington. . 124 63 2 C f,lnC:J"1"1:Ja be"" ,'01 ClOl0l7-Cl-t,1rI r Notary Public ) )ss. ) 2004 ~AL ESTATE COMP^(~ By: /~ ({,j~ Its: vf~ ,,~~- c7 1(( .-- ../ ~~ . 15- day of ~ " '" . 2006 by of 2004 Real Estate Company, a 124 3 3 . . . C ",nC::l...,...,::lC C~~~~ q~~?-~t-Nnr , . . . 124 3 EXHIBIT C 1. Construct a fIre escape and Oak Street access/stairway to the Grand Hall of the building loc ed on the Project Property: a. Submit complete construction plans and building permit application (if required) by May 17> 2006; b. Commence construction of fire escape, construction of new Oak Street access, and renovation of stairway to Great Hall by June 14,2006 or within 14 days offlna1 approval of construction plans. whichever is later; c. Complete construction (including final approval by Building Official and Fire Marshal) by August 23, 2006. lI. Install sprinkler system in the building located on the Project Property: a. Submit complete construction plans and building permit application (if required) by June 14, 2006; b. Commence installation of sprinkler system by July 19, 2006 or within 14 days of final approval of construction plans, whichever is later; c. Complete installation of sprinkler system (including final approval by Building Official and Fire Marshal by September 20, 2006. m. Upgrade existing electrical system, or install new electrical system, so that the buil ing located on the Project property has a complete and properly functioning electrical sys that meets or exceeds the minimwnlighting, wiring and service requirements of the . esota Electrical Code and the Minnesota Building Code for all uses allowed under the City S CUlTent zoning regulations. All such electrical work shall be peIformed by an el . cal contract r licensed in and b the S e of Minnesota. a. Submit complete construction plans and building pennit application (if required) by July 19, 2006; b. Commence electrical system work by August 16) 2006 or within 14 days of final approval of consfroction plans, whichever is later; c. Complete electrical system work, including final approval by Building Official and Fire Marshal) by October 18) 2006. IV. Complete whatever interior renovations may be required in the building located on the Proj ct property to obtain a Certificate of Occupancy (for every portion of said building) from the City and to fulfill any other requirements specified in the Contract. Said 4 c: _ t..Jnc:::nl:::li=! <::;S;:::S;::0 900c-s"t-'~m 90 . d ltllOl 124 3 t ren V'atioDS shall include, but are not limited to, the folloWing: replacement of the Grand . H ceiling; decorative renovation(s) ofth~ Great Halt; completion of upper lev~l of thct Lar on Building; and renovaion of the passageway between upper levels of the Larson Bui ding and the Grand Hall. The objective shall be to prepare every portion of the Project pro erty for immediate occupancy by suitable tenants upon the completion of interior ren Vi\tions in question. a. Submit complete construction plans and building permit application (if required) by August 16, 2006; b. COIIUnC?Dce construction/renovation work by Sept~ 20, 2006 or within 14 days offinal aJ1Proval of construction pllitis, wbichevei is later; c. C<lmplete construction/renovation w(jrk (including final approval by Building Official and Fire Marshal) by December 20, 2006. . . . 5 _ l.. I~,-.-.-r..,..,n r~.~~ c~~?_CT_~nr JUt~-15-2006 01: 27 BELLESON'S 952 927 8473 P.01/03 . HOSMER A. BROWN ATfORNEYNAT-LAW 3922 W. 50TH ST., #201 EDINA, MN 55424 (6 J 2) 927-88'7 FAX (612)921-88;8 f ac.simile Transmission Sheet To: Town of Mr. Kevin Carroll - Farming.tmL_ Your Fax #: Community Development Director Hosmer A. Brown 651-4 From: Date: _ June ] S! ..2...Q.Q..6--____ Time: We are sending,you -L_ pages, including this page. If 30U do not rece ve the entire transmittal, please c.ontact us at (6 I 2) 927-88') 7. Our Facsimile num ens ~~j~~7~ (fax not operating for a short time) . . THIS MATERIAL in thi:) transmitbll m3~ be c0l"1fid<::nti.a1 and ma!j be ~u~cct to attorne,9/dient priviJ<:: This transmittal s.h~lI.,ot be construed ill' a waiv<::r of an!} d~lm of confid<::ntialit!} or privile5e. IF ,you hav<:: reo e~d this transmittal in error, please noti+;J the !l<::ndcr immedlatcl;l and rdurn th~ ori9nal information b!} U.S. M il to the sender. Further dissenlinilltion is prohibited. JUN-15-2006 01:28 BELLESON'S 952 927 8473 P.02/03 HOSMER A. BROWN Attorney-at-Law 3922 W. 50th Ave., #201 Edina, MN 55424 . (612) 927-&837 FAX (612) 921-!8J8 June 15,2006 Mr. Kevin Carroll Town of Farmington Community Development Director 325 Oak Street Fannington, MN 55024 SENT VIA FACSIMILE FAJ(: 651-463-2591 PHONE: 651-463-7111 Dear Mr. Carroll: My son and I are very eager to finish the construction of the Exchange Bank Building. We are trying to meet the deadlines outlined in the proposed amendment t contract which you submitted to us by letter of April 21. We met the first deadline b . submitting the architect's plans for the various projects outlined in the proposed ame ded contract by May 17th as to the fire escape and stairs. The sprinkler companies will n t submit the detailed plans until a contract has been signed but they have submitted bi s. We received the second one which you got a copy of just a few days ago. The installers that we have received bids from think it advisable not to use a system and recommend a wet system instead. However, the wet system would requi e insulation under the roof or outside on top of the existing roof and it be re-roofed. I on't know the age of the existing roof but I am assuming it must be at least ten years old. Would the Committee have objections to that? We are attempting therefore to get the plans today from the sprinkling com but whether that is physiCally possible I do not know. If it is, we will bring it out to ou. If not, we will can you later today. Our architect told me this morning that he had tri d to reach you before. Ironically, you and I were probably talking at the same time. We have decided that we should sign the amendment to the initial contract to illustrate and show our good 'faith ,in working with the City. You submitted the amendment to us on April 21) 2006 and we had our architect immediately assemble complete building plans which were delivered to City Hall on or about May 17,200 . We have been willing and able to begin construction on the fire escape and stairway but realize that today is the June 14th deadline for commencing constroction. We have n t been notified of your approval of the plans for that first phase and I clearly understa JUN-15-2006 01:28 BELLESON'S 952 927 8473 P.03/03 . that since you received the memorandum dated June Ith of this year from the Preservation Planning Consultant, that you must await the receipt of a certificate of appropriateness from the Heritage Preservation Commission. I think both parties realize that the amendment which is enclosed does not re eet the situation as it actually exists at this time. We realize the deadline of June 14th fo submitting the sprinkler design and plans has passed. So signing the agreement afte a date which indicates default from the date of signature seems unrealistic and does n t reflect existing conditions now. However, you have told me that you have no autho ity to make changes in or alter the dates in the contract. The letter of June 12lh from Robe Vogel, the Preservation Planning Consultant to the Fannington Planning Committee states that the Exchange Bank Project is now subject to design review and complian e and requires a certificate of appropriateness. Whether these requirements will cause a significant lengthening in the tiroeli e provided in the amendment of the contract, I do not know. I have to assume that ea of the phases stated in the amendment to the contract will have the same ntunber of da s for completion as provided therein. . I have asked our architect to inform the sprinkler contractor to try and get something in the way of plans to you involving the sprinkler system. [fthe Planni Commission has any objection to the outside insulation and the new roof, we would eed to know immediately t but I believe it would be the best for the building and the over 11 fire safety. We are very eager to finish the project and believe that any conflicts or inconsistencies that may arise can be solved between the two parties. Sincerely, Hosmer A. Brown HAB/kj . TOTAL P.03 . . . MEMORANDUM 12 June 2006 TO: Farmington Heritage Preservation Commission FR: Robert Vogel, Preservation Planning Consultant RE: Exchange Bank Certificate of Appropriateness I have reviewed the plans submitted by CNH Architects in relation to the proposed stair tower addition and interior improvements at the Exchange Bank Building, 344 Third St. Subject property is zoned as a Farmington Heritage Landmark and is also listed in the National Register of Historic Places. Built in 1880, the building was acquired by the city in the early 1990's and restored with public funds. The proposed work involves the demolition of some interior features and the construction of a stair tower to provide safety code compliant access to the second-floor auditorium space; installation of a fire suppression system; and installation of new doors and stairs on the Oak St. side of the building to provide safety code compliant access to the upper floor. In my opinion, the proposed work represents a rehabilitation project, which the city defines as the process of returning a property to a state of utility through repair or alteration which makes possible an efficient contemporary use while preserving those portions or features of the property which are significant to its historical, architectural, and cultural values. By ordinance, the city has adopted the Secretary of the Interior's standards for the treatment of historic properties as the authoritative guide for design review decisions involving properties designated as Farmington Heritage Landmarks. As shown on the plans, the proposed new door at the western entrance on Oak St. will retain the existing door opening and transom as well as the original stoop. The work should not alter historic masonry or other exterior finishes and appears to comply with preservation guidelines. The proposed stair tower appears to have been placed in an inconspicuous location where it will not require removal of significant historic fabric or interf~re with the essential historic character of the facades. Interior demolition and new construction will not, in my opinion, injure or alter the distinguishing architectural qualities or historic character of the building's exterior features, which are protected by its landmark designation. Because it involves both demolition and new construction, I believe this project is subject to design review and compliance and therefore requires a Certificate of Appropriateness (COA) from the Heritage Preservation Commission. I would also point out that the city has adopted the policy of requiring historic preservation design review and compliance for all projects funded or assisted by the City of Farmington. Therefore, I recommend approval of a Certificate of Appropriateness for the Exchange Bank stair tower addition and interior improvements, subject to the following stipulations . and conditions: 1) The proposed work will result in minimal alteration of the building's exterior and will not remove or alter any historic material or distinctive architectural feature. 2) Installation of the new door on Oak St. will retain the existing window and door openings, preserve in place the existing transom window and stoop, and install a new door that is compatible in materials, color, and texture with the historic character of the building. 3) Every reasonable effort shall be made to protect and preserve original historic interior features affected by or adjacent to the proposed demolition and stair construction work. 4) Prior to any demolition or new construction work, the owner or the contractor shall record existing conditions in the work areas with good quality color photographs and a sketch plan that will be turned over to the city for archival purposes. 5) A set of as-built plans should be produced on a durable medium (vellum or Mylar) and deposited with the Heritage Preservation Commission to provide a . permanent record of the changes made to the historic building. The Commission may also wish to consider allowing local historical organizations an opportunity to identify and salvage any historic fixtures or fabric that would otherwise be lost as a result of demolition. From the plans, I am unable to determine if any objects of historical interest will be removed in the demolition of the stairs or installation of the fire suppression system. I am confident that these recommendations provide a sound pragmatic framework that will allow the owner to adapt the Exchange Bank for modem use in a manner consistent with historic preservation standards.o cc: Lisa Shadick, Administrative Services Director . . . . ..~ MINNESOTA HISTORICAL SOCIETY June 20, 2006 City of Farmington 325 Oak Street Farmington, MN 55024 Attention: Lisa Shadick Subject: Exchange Bank Building, Farmington, MN Dear Lisa, 1bank you for the opportunity to review the above-mentioned project for conformance to the secretary of the Interior's standards for Rehabilitation. Existing photographs were not submitted with the project so I am making a few assumptions. The only area of concern I have is with the grand hall, room205 on the plans. Without photographs I am unable to determine the condition of the plaster walls and ceiling in this space. The standards state that materials dating to the period of significance should be repaired whenever possible, not replaced. I find it hard to believe that every plaster surface in the room is damaged beyond repair. Therefore I question the removal of the plaster on all the surfaces and replacement with gypsmn board The historic plaster walls and ceiling should remain, being repaired if necessary. Materials that date to the period of significance are a direct contribution to the integrity of the property. The removal of these materials, even when replaced by exact replicas, still constitutes a 100% loss of integrity for that material. (simply put, it is original... or it is not) If the majority of the historic fabric in a building is removed it will jeopardize the listing of the property. Therefore it is a standard practice to identify all materials that date to the period of significance prior to construction and integrate their preservation into the plan whenever possible. A future concern I have regarding the same space is its proposed use. The grand hall is considered a character defming space of the property and its volumetric form should be preserved. If a future tenant wishes to partition the space into multiple offices with full height walls, it would be a violation of the . standards. Ifpartitionii1g is necessary the walls should not extend full-height so any visitor can determine the volmnetric form of the space. The best solution would be the use of a modular furniture system. Sincerely, I~ Mark Buechel, AIA MIlS Historical Architect 345 Kellogg Blvd W. StPaul,MN.55102 (651) 296-5475 " ;;" ,/.A i/ .. '/ 1 "f ' - ./.:>//v. (,.- 0''' t/ l . cc: 34.5 Kellogg Boulevard West / Saint Paul, Minnesota .55102-1906 /Telepbone 651-296-6126 JUN-22-2006 03:24 BELLESON'S 952 927 8473 P.01/03 . HOSMER. A. E>R.OWN A TTOR.NE.. V-A T~LAW ~.92.2 W. ,o~h 5treet, 5uite #1.0 I EDINA. MINNLSOT A ;5+24- (612)92.7-88,7 FAX (6 I 2)927-88j8 Facsimile Transmission Sheet Town of To: _Mr. Kevin Cs~rol- ~a~mingtQ~_ Your Fax#: ~~ Community Development Director From: lLosmer.ft. Brow.!ll.. Attorney at Law________ Datel June 22, 20Q.&..______ Time: _______ We are sending :lou 3 pages, including this page. If !jOU do not reed e the entire transmittal, plea5e contact us at (61 2) 927-88~7. Our Facsimile numb r is (612) 927-88;8. . . TH15 MA TEKJAL in thio tran6mfU.a1 ma~ be conFidentiill3nd ma.lJ be 5U~c:ct to attorn.erdient privileg Thi, tr;;ln:omittal shalll'lOt be con6tnJed "0 " waiver at bn!j claim of con~identi..lity or privilege. It ~ou have ree lved th;o transmittal in error, please notit!j the .sc:nder Immediatcl'y and return the originsl (n~orn;C1tion b9 U5. M"i 1-0 the 6c:nder. further d.S6e.mfnlltion i!o prohibIted. JUN-22-2006 03:24 BELLESON'S 952 927 8473 P.02/03 HOSMER A. BROWN Attorney-at- La w 3922 W. 50th Ave., #201 Edina, MN 55424 . (612) 927.8831 PAX (612) 927-&838 June 22, 2006 Mr. Kevin Carroll Town of Farmington Community Development Director 325 Oak Street Farmington, MN 55024 SENT VIA FACSIMILE FAX: 651-463-2591 PHONE: 651-463-7111 Dear Mr. Carroll: I want to update you on our progress with the Exchange Bank project. Upo . approval of the submitted applications for building pennits on April 17th and your r ceipt of a Certification of Appropriateness from the Preservation Planning Consultant, are ready to proceed with the fire escape and stairway modification. I have verified thi with our architect, and our contractor can begin upon approval of the permit application. We could not submit complete plans for the sprinkler system, as we did for e other wor~ because the sprinkler contractors will not submit construction plans unti a contract has been signed. The delay in getting this done was their determination whether we should use a wet system or a dry system, and whether, with the wet syst the vapor barrier should be applied on the inside of the existing roof or be applied 0 er the existing roof and then re-roofed. It was reaching this determination which then caused our delay. They have recommended that the barrier should be applied on the outside and then re-roofed. I assume this is acceptable to E.n.A. In taJking to the architect today~ he tells me we have let the contract to Fire uard Company, subject of course to the City's approval of the pennit and plans. He furth r assured me just a few minutes ago that the plans would be in your possession Man y so you could present them to the Economic Development Authority. . At this point, there is not much more that my son and I can do except assure and the Development Authority that we are just as eager to start as you are. We pI be present at the Monday night meeting, and also at the Tuesday night meeting with e Heritage Preservation Committee. I am aware that there may be some questions abo t JUN-22-2006 03:24 BELLESON'S 952 927 8473 I . the renovation of the ceiling in the Great Hall, but I asswne that can be met when know the details and circumstances. I have mailed the original of this letter and the signed amendment to the orig nal contract this afternoon, but I am faxing this letter immediately. Sincerely, ...~4~. " , , , Hosmer A. Brown HAB/kj . . P.03/03 TOTAL P.03 JUN-22-2006 16:26 CNH ARCHITECTS 1 952 431 3883 P.01/03 CIVI1 FACSIMILE TRANSMITTAL SHEET ARCH/Tecrs . 7300 WEST 1471h STREET SUITE 504 APPLE VALLEY, MN 55124.7580 (952) 431 .4433 Date: To: From: Subject: June 22,2006 Fax No.: 651-463-1611 Mr. Kevin Carrol- City of Farmington Quinn Hutson Exchange Bank. Building, Farmington Comm. No.: 04007 Attachments include: Memo - Project Status Comments: Please let me know if you have any questions or suggested changes. I will be calling Mr. Vogel and Mr. Buechel at the State Historical Society first thing tomorrow morning. I am of to 2 meetings that will last the rest of today. . Quinn No. of Pages: 3 (Including this transmittal sheet) If errors occur during transmission or you do not receive all the pages indicated above, please call our office immediately at (952) 431-4433. CNH Fax: (952) 431-3883 CNH general E-Mail: cnh@cnharch.com . P:\PROIECTS\2004\04007lTEXT'.FAXlF AX007.DOC JUN-22-2006 16:27 CNH ARCHITECTS 1 952 431 3883 P.02/03 CIVil 7300 WEST 147TH STREET SUITE 504 APPLE VALLEY. MN 55124.7580 (952) 431-4433 Al?C/frreCTS . MEMORANDUM: PROJECT: COMM NO: DATE: TO: SUBJECT: Exchange Bank Building 04007 June 22, 2006 City of Farmington - Economic Development Authority Fire Suppression System Status Update As requested by my client, I am writing to provide an update of the status of the entire project and specifically in regards to the fire suppression system (sprinkler) design. First of all, a General Contractor, Langer Construction, has been selected and contracted to do the project. As you know, they have applied for a building permit and are waiting for that process to proceed through all the required city and state approvals before they start the construction. The fire suppression system is contracted to Fireguard of Minnesota as a subcontractor to Langer Construction. They had started doing the system design for submittal and realized that there were . two significantly different approaches to how the system was design which they presented to me and the owners. Fireguard then needed to wait for our analysis ofthese approaches before completing the design for submittal. The design issue is related to the code requirement to install sprinkler heads within the flat wood trussed roof system over the Great Hall. The original approach was indicated as providing sprinkler lines and heads up within the trusses which would be above the insulation batts laid at the bottom of the truss system, and thus would freeze if not constructed in a dry system containing compressed air instead of water. This dry system requires more maintenance and has a greater potential to fail causing major unjustified water damage without incurring a fire incident. The alternative approach suggested by the sprinkler contractor was to reroof the Great Hall portion of the building providing insulation on the roof deck instead of at the bottom of the trusses. This would then result in the wood trusses being within the heated portion of the building and allow a standard wet fire suppression system. The evaluation ofthis change and the cost impact of the two options was what previously delayed the completion and submittal of the fire suppression design drawings to the City. The reroofing option has been priced by Langer Construction and resulted in an $8,000 increase in construction cost. Since the contractor and I suggested to the Owner that the added cost would, in our opinion, be a good investment in lower maintenance and increased protection ofthe historic structure, the Owner has approved this design approach. With this issue investigated and resolved, Fireguard is currently . P:\PROJF.CTS\2004\04007lTEXTlMEMORANDUMSIMM.03.DOC . . . JUN-22-2006 16:27 CNH ARCHITECTS 1 952 431 3883 P.03/03 completing the design plans and will have them submitted to the City prior to the EDA meeting Monday, June 26. I have been invited to the EDA meeting this week but I must extend my apologies since I have a previously scheduled meeting. If you or any part of the City Staff has any questions, please feel free to contact me. Sincerely, cc: File Hosmer Brown Sr. Russ Zellmer, Langer Construction P:\PROJEcrS\ln04\04nn7\TEXT\MEMORANDVMS\MM-O~.DOC TOTAL P. 03 Kevin Carroll .rom: ent: To: Cc: Subject: tim [tim@jitpowdercoating.com] Wednesday, June 14, 20062:07 PM Dan Siebenaler Kevin Carroll; Jitpowdr@aol.com Construction Schedule - Need to bring trailers back to the street Dan, The JIT expansion project is moving forward at a rather rapid pace. The precast is set, the roof is on, and we are starting preparation to pour the slab (scheduled for next Tuesday, June 20). By the end of next week (June 23), the basic exterior structure of the building will be completed. That brings us to the next phase, the creation of the north storage area, parking lot and driveway. This work will require us to eliminate the temporary trailer storage on the north side of the lot. I will need to move the trailers back to the street for approximately 5-7 business days to allow the earth work, curb and gutter, and first phase of asphalt to be constructed in our permanent storage area/drive way. Once created, the trailers will be moved back off the street. In very late July, near the expected end of the project, the final layer of asphalt will be added to the storage area and the trailers will need to be moved again. But by that time, the new loading dock area facing Eaton will be ready and the trailers will be moved to that site, not the street, while the final asphalt layer is applied. You may wonder why the loading dock area is not created before the storage yard. There is a reason for this schedule. The new Eaton Ave loading docks will require the elimination of the current driveway used by Valmont Lexington to deliver light poles. Valmont .exington is quite busy and can't afford to have 5-7 days without painting. By create the torage area and new driveway first, Valmont Lexington will an alternative way to deliver roduct allowing no disruption while the current driveway is removed for the docks. We expect to start moving trailers to the street on Friday, June 23. We are going to push the schedule very hard so that the trailers our back on our property by June 30 (the start of the 4 day July 4tn holiday). If not, the trailers will be off the street by Friday, July 7. It would be our plan to store 2 trailers on the east side of Eaton Ave and 2 on the south side of 208th St. Eaton Ave is clear, but both sides of 208th St are being used by Xcel Energy. They have been parking trailers/trucks/equipment on both sides of 208th St since the day after we moved our trailers to the temporary storage area. We may need some assistance from the city in identifying the appropriate people at Xcel to contact regarding this situation. I realize this is not ideal, but in all my conversations with staff, EDA, etc., I did explain that at some point in the process, we would need to be back on the street for a very short time. I want to minimize the impact on everyone, so I thought I would send this notice early enough so we can get city staff feedback and modify/ adjust as needed. Thanks for your continued support! Tim Tim Milner President JIT Powder Coating Company .1020 Eaton Ave armington, MN 55024 651-463-4664 (office) 651-463-4627 (facsimile) 1 . . . ~# <-- = = Oako1a County Environmental Management lJiul.ern ServiC'El aen1ef · 14..~~ Galaxie Avenue · ~Ie Valley. MN .55124 ~2.S9'1.Hi57 · Fax 9~.8S1. 7.588 · WW't'l.oo.<fakota.mn.us ~ DATE: May. 31, 2006 r--.;> -= -= en TO: Mary Kennedy, Treasurer AudHor Office FROM: Bev Schomburg, EnYironmentaJ SpeciaJist SUBJECT: Tax Forfeited Property at 4t11 Street & Main, Farmington, MN (pIN 14-77000-061-27] r--.;> r--.;> -= --cJ ::s:::: You have recenlfy asked the Contaminated Sites Response workgroup in our office to revie'w the plan subrnitte<J by PEER Engineering (October 24,2005) fur the above site at the request of Mr. Joe Heinen. The pran has been approved by the MPCA Petroleum Broo'Tlfields Program staff and I arn w~ting to see documentation that it is appro\red by .MPCA VI C Program staff. c:;J :l> ;:::::"":: c::> ~ :l> <:J c::> c::: .:;;:;;::: ~ -< We have re\'iewe(j the pran and have the following recommendations: We do not advise a full basement for the foundation at this site because of \he high water table in this are<l. There also seems to be some questkm in the past about water C8rT)1ng VOC'S (Volatile Organic Compounds) on to this site from other nearby sites. (1997) Although the most recent testing did not ShCNl any VOC's ill \he ground water samples taken (2005}, we think it is pNdent to limit the foundation to a KCr<lwJ space" or a mechanicalspaoe, but not a full basement. We agree with the general plan for cr~ating: a \~apor barrier as proposed by pJacing poly ooneath the sCab, installing a passive yenlfng s~"Stem. and applyir.{l spray-on waterproofing. We also recommend lhat there be an electrk:aJ outlet wired rnto!he attic space near tt1e venting tube so that !he passeve venting 5)~tem would be ready for the ad!:lition of a fan if needed in the future to make <he system active. Mary, ptease contact me (952-891-7552} or my supervisor. George Kinney (952-691-7541). if you have any additional concerns thatwe may be able 10 help yoo wilh. .:;;:;;::: C> -= r--.;> ~ --.l --cJ " Kennedy, Mary From: Sent: To: Cc: Subject: Schomburg, Bev Tuesday, June 13, 2006 1 :54 PM Kennedy, Mary Kinney, George Our apologies This memo got written, but somehow did not get out to you 2 weeks ago. I sent to George and Cathy and I guess was waiting for response before it officially went out. Enough excuses! Hard copy also coming. ~ 5-06Farmington536 4Memo.doc 1 '" . . . . . . . ~~~ DAKOTA COUNTY TREASURER-AUDITOR 1590 HIGHWAY 55, HASTINGS, MN 55033 PHONE: (651) 438-4576, FAX: (651) 438-4399 MEMORANDUM DATE: June 21, 2006 TO: Kevin Carroll, Director Farmington EDA CC: Carol Leonard, Dakota County Treasurer-Auditor FROM: Mary Kennedy PID 14-77000-061-27 4th and Main Streets, Farmington SUBJECT: . Kevin, This memo is to confirm the transfer of property between Farmington EDA and private third party, regarding the tax-forfeited parcel of land located at 4th &. Main in the City of Farmington. There is no County intervention planned for the transfer of title to a private third party. Costs of environmental remediation, as indicated in the fee statement, exceed the value of the property. MPCA and VIC programs have identified corrective actions regarding the property. Owner must respond to the MPCA indicating what actions were taken. Dakota County is requesting copies of any correspondence between MPCA and owner. O:/Forfeit/Forms letters/Farmington EDA 6-21-06 . . . . Page 1 of2 Tina Schwanz From: Tina Schwanz Sent: Thursday, June 22,20065:15 PM To: 'micneiss@aol.com'; 'AKINKJ@aol.com' Cc: Kevin Carroll; Dan Siebenaler; Don Hayes Subject: FW: Liquor Store Michelle and Kris, I wanted to confirm in writing my telephone conversation with Michelle Neiss about the plans for the crafters to use the former liquor store building space during the Rambling River Days weekend. During our conversation Michelle indicated that she will be the CEEF Committee member who will be in charge of the keys that are needed to access the 305 3rd Street [former liquor store] building. Michelle is already in possession of the keys since I gave them to her when she stopped in at City Hall on July 15. They were given to her in advance so that she could access the space in order to clean it before the crafters started setting up their displays around 8 AM on Friday, June 23, 2006. Michelle has also indicated that she will open and close the building each day and will be responsible for a final walk-through after the event to make sure that all garbage is picked up and that everyone has removed all of their personal property (tables, chairs, inventory, etc.). Michelle is responsible for all crafters, of which some will be along 3rd Street, so she won't physically be in the building during the entire time that the crafters are in there. However, Lee Farley-Moe (long term resident of Farmington and regular vendor of Michelle's) will be the specified person in charge while Michelle is outside of the building. Michelle has indicated that she will post an "Out of Order" sign by the bathroom, to deter the public from using the bathroom and has indicated that she will inform all of the crafters inside of the building that the bathroom is not to be used by the public. Lastly, Michelle will return the keys to me Monday morning. Crafter Hours (inside former liquor store building) Friday & Saturday 10:00 AM - 7:00 PM Sunday 11:00 AM - 5:00 PM . Michelle plans to be in the building about an hour ahead of the scheduled crafter times each morning of RR Days and will keep the building locked until just before 10:00 AM on Friday and Saturday and 11:00 on Sunday. . She also stated that she will be in the building later than 5:00 PM on Sunday in order to clean-up and do the final walk-through of the building. If there are any questions or concerns please give me a call. I will be in the office from 7 AM to 11 AM Friday morning and can be reached at 651/463-1821. I can also be reached on my cell phone after work and on the weekend at 612/968-0067. Kevin Carroll can also be reached 6/23/2006 Page 2 of2 over the weekend on his cell phone at 651/775-5962 if something arises that can't be handled by "on-site" personnel. Thanks. and enjoy the weekend! Tina Schwanz Economic Development Specialist City of Farmington 651-463-1821 6/23/2006 . . .