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HomeMy WebLinkAbout05.22.06 EDA Packet City of Fannington 325 Oak Street fjarrrrington, 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 May 22, 2006 - 7:00 p.m. City Council Chambers, City Hall 1. Call Meeting to Order 2. Approve Agenda 3. Consent Agenda a. Bills b. April 24, 2006 Minutes c. May 2, 2006 Special Minutes 4. Public Hearings (None) 5. Unfinished Business a. Downtown Area -- Mc Vicker Lot . As you know, City staff members initiated discussions with five developers during March and April regarding the possible redevelopment ofthe McVicker property. One developer indicated that he would not be able to fit the project into his schedule for 2006, and another did not respond to our contacts. Face-to-face meetings with the three remaining developers were then conducted during April and May, during which all three of them expressed an interest (to varying degrees) in the McVicker lot. Staff asked each ofthem to follow up on our preliminary meeting(s) by providing additional information in writing, including (if desired) drawings, elevations or floor plans for whatever type of building they proposed to build. One of the three developers referred to above subsequently decided that the other development projects that he already has "in the works" will take up all of his available time during 2006. One of the other three developers is currently dealing with a client who is apparently considering the McVicker lot as a possible site for a day care business, but she is also looking at other potential sites in Farmington and/or elsewhere, and she's not yet ready to make a decision. A few questions also exist regarding how many square feet she would need, whether she would be willing to construct a two story building (which has been the EDA's preference in the past), and how she would deal with the state's requirement regarding enclosed outdoor recreational space for the children. . However, one of our five original contacts, Mr. Joseph Heinen, has continued to express a high level of interest in the McVicker lot during our meetings and telephone conversations with him. As you will recall, Mr. Heinen is the owner of the commercial building located at the northeast corner of Elm & Third. That building, which formerly contained a business known as Wide Open Throttle, was recently remodeled (and substantially upgraded) by Mr. Heinen and is now the site of a satellite educational facility for ISD 192. Mr. Heinen also owns the rest ofthe properties located along the north side of Elm Street between 3rd Street and 4th Street,. and the EDA has been working with him for a number of months to explore the potential redevelopment of that entire area. We have attached some conceptual drawings that Mr. Heinen brought to one of our recent meetings wi. him regarding the McVicker lot. The drawings include color elevations of the west (front), south (side) and east (back) of the building that he has proposed. Although the color elevations reflect Mr. Heinen's preferred design, he has also provided black and white copies of three alternative elevations of the west (front) side that incorporate slightly different architectural details regarding items such as rooflines, awnings, windows and doors. He has indicated that he is prepared to consider "mixing and matching" these elements to achieve whatever final design is preferred by the EDA. . We have also attached, for comparison purposes, the drawings that were originally submitted by Four Star Development. Mr. Heinen has indicated that his own concept plan is essentially based on the same floor plan that Four Star had proposed. That is, the interior of the building would be basically the same; only the exterior would be modified (in accordance with the EDA's preferences). The lower level would still be dedicated to commercial uses (office, retail, restaurant, personal service, etc.), and the upper level would consist of four or five market-rate rental units. The pedestrian walkway desired by the EDA (along the south side of the building, connecting the municipal parking lot with the sidewalk along 3rd Street) is a component of Mr. Heinen's plan. He has indicated that he does not want to physically connect the north wall of his proposed building to the adjacent building (Gossips), which eliminates the need to immediately address the existing stairway that is used to access the second floor of the Gossips building. (However, that stairway encroaches onto the EDA property, which is an issue that someone will eventually have to address.) Some ofthe more attractive elements of Mr. Heinen's proposal include the following: 5. . Mr. Heinen is a "known quantity" who has already established good working relationships with City staff and other parties (Dakota County staff, Peer Engineering, etc.) in connection with the proposed redevelopment of the vacant 4th & Main lot and in connection with the rehabilitation of the former Wide Open Throttle space. Building Official Ken Lewis has indicated that Mr. Heinen's contractor (his brother, Nick Heinen) was responsive, professional and easy to work with in connection with the Wide Open Throttle rehab. Nick Heinen would presumably be the general contractor on the McVicker lot redevelopment project. Mr. Heinen has indicated that he has discussed the McVicker project with his lender, and that his lender is prepared to provide whatever financing would be needed for the project (we have asked him to confirm that fact in writing). Mr. Heinen is considering the possibility of constructing a new two-story, mixed-use building on the north side of Elm Street between 3rd Street and 4th Street. He is currently weighing the relative merits of putting housing units or office space on the second floor of that building. He has indicated that including four or five units of rental housing on the upper level of the McVicker property would enable him to "test the market" and determine the level of interest in second floor, "downtown" apartments or condos. Mr. Heinen has indicated that he likes the "phasing" possibilities presented by the McVicker property and its close physical proximity to his other existing and planned projects. He could continue his remodeling work on the 3rd & Elm building during the summer and early fall of this year, complete final construction plans for the McVicker building during that time, then begin. constructing it in the late summer or early fall. While construction was in progress, he could 1. 2. 3. 4. . . . work on finalizing his plans for the redevelopment ofthe property on the north side of Elm Street between 3rd and 4th (where the two brick houses are now located), so that he could start that project after the McVicker building is completed in 2007. In the past, the EDA has occasionally entered into a "Letter of Understanding" with a developer in a situation where there were mutual advantages to establishing an exclusive working relationship for a specified period oftime. The staff recommendation in this instance is that the EDA approve a Letter of Understanding between the EDA and Mr. Heinen that would remain in effect for a period of 60 days, during which the EDA would work exclusively with Mr. Heinen to determine whether a mutually acceptable Contract for Private Development can be achieved. A draft of a proposed Letter of Understanding has been attached for the EDA's review. If it is acceptable, a motion to approve it would be in order. b. Industrial Park - R & L Trucking The City's Building Official has advised me that only one more detail (and a minor one) has to be resolved before the building permit for the new truck terminal can be issued. Everyone seems to be anticipating that the permit will be issued within the next week or two. c. Downtown Area - Exchange Bank Building and Larson Building Attached hereto you will find a draft of a proposed "First Amendment to Contract for Private Sale." This document incorporates the schedule that was discussed and approved at the last EDA meeting. Some additional details have been provided regarding certain aspects of the planned rehabilitation work, in order to eliminate any ambiguity regarding the EDA's expectations. The schedule's first deadline was May 17. By that date, the Developer was required to "submit complete construction plans and building permit application (if required)" for the fire escape and the Oak Street access/stairway to the Grand Hall. The construction plans in question were delivered to City Hall on May 16, 2006, although a building permit application was not submitted. Unless the EDA indicates that we should do otherwise, staff will consider the May 16 submittal to constitute "reasonable compliance" with the first deadline, with the express understanding that the Developer will promptly apply for a building permit as soon as the Building Official requests one or when he completes his review of the plans (whichever comes first). If the format of the proposed "First Amendment to Contract for Private Sale" is acceptable, a motion to approve it would be in order. Staffwill subsequently make arrangements to get the required signatures. d. Downtown Area - Riste Building The staff recommendation at the last EDA meeting was that any in-depth discussion(s) of the redevelopment of the Riste property be deferred until after a developer had been selected for the McVicker lot. The EDA's action(s) on May 22 with regard to the McVicker lot will help staff determine whether and when to devote more attention to the Riste building. At least two of the local developers who ultimately "dropped out of the running" on the Me Vicker lot have continued to express potential interest in looking at the Riste property as a potential 2007 project. Any new construction projects that are started or even proposed in the downtown area (McVicker, new City Hall, new Heinen mixed-use building on Elm Street, etc.) in the near future could potentially generate a heightened level of interest in the Riste site. Our hope that some developer might be prepared to "take the lead" on negotiating with Xcel Energy regarding the property adjacent to the Riste building may not be realized in the near future. The pros and cons of directing staff to pursue such discussions with Xce1 can be considered at Monday night's . meeting, if desired. e. Industrial Park - JIT Powdercoating Please review the attached e-mails, which will provide you information regarding the recent history of this matter. I've also enclosed a copy of the building permit that has been issued and a copy of the Special Assessment Agreement that Mr. Milner has signed. Progress continues to be made. f. Downtown Area - Vacant Lot at 4'h Street and Main Street On Friday, April 28, 2006, Kevin Carroll, Tina Schwanz and Mr. Joe Heinen 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. The informal and "unofficial" contacts that we have had with Dakota County staff since that time suggest that Dakota County will allow the EDA to.transfer the property to Mr. Heinen for $1 rather than for the property's "market value," in light of the substantial expenses that Mr. Heinen has already paid (and will continue to pay) to consultants to address the contamination issue. However, the transaction is still being delayed up to some extent by Dakota County's interest in closely examining the plan that Peer Engineering proposed (and that the MPCA has approved) for the vapor barrier and venting system that would be installed in or around the foundation that would be constructed for the house that Mr. Heinen has proposed to move onto the site. Ken Larson of Peer is interacting with Dakota County staff in an effort to obtain the County's final approval(s) so that we can finally move forward. . 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 field inquiries regarding the building. However, such discussions are not far enough along yet to justify preparing a draft of a proposed lease agreement. h. Economic Development Plan Staff members are giving consideration to how the working draft of the "Framework" document could be revised to incorporate the comments that were made during the discussion that took place at the EDA's special meeting on May 2, 2006. 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 proceed with its original plan to conduct an Economic Development Summit. In the meantime, advice and guidance from the EDA regarding tasks that could potentially be performed by staff and/or the EDA prior to the Summit would be helpful. The staff recommendation in that regard is that the ED A and staff immediately begin taking a closer look at Farmington's "historic" downtown. As you know, the first draft of the "Framework" document, and all subsequent revisions, proposed that the final Economic Development Plan include a "geographic" section wherein specific areas of the City would be analyzed with regard to their current . commercial/industrial uses and their future potential. The existing downtown was one area that was identified for such analysis, which (as recommended by staff) would have included components such as . . . task force discussions and neighborhood meetings. Although staff members continue to believe that those components would be useful and perhaps even necessary, we see no reason why staff and the EDA could not set the stage for them by identifying, discussing and clarifying the relevant issues now. Frankly, everyone is already discussing a number of them anyway, and staff members are working on them on a daily basis. The agenda for this EDA meeting is a good example of that. In the same way that the EDA's work on the Framework document has already successfully created an initial structure for the further study of non-geographic topics such as marketing or business expansion, a few focused discussions of the downtown area could help the EDA create a template for the future analysis (by the EDA, a task force, consultants, the Council, etc.) of other geographic regions of the City. Staff members will have a preliminary written summary of potential discussion topics available to distribute at Monday night's meeting if the EDA indicates a desire to begin addressing this subject. 6. New Business a. Downtown Area - Heinen Redevelopment Area (Elm Street) As indicated in Item #5 (a) above, 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 has indicated that 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 has indicated a desire to use the McVicker lot and the former liquor store during Rambling River Days. See attached letter for more details. The EDA will need to determine whether the Committee can use the properties in question and, if so, the applicable terms and conditions. Staff generally supports the Committee's requests, especially if a tenant for the former liquor store is not found before Rambling River Days. Insurance issues and supervision arrangements will have to be addressed. c. Seminar - "Economic Development 101" Attached is a copy of the material that was disseminated at the seminar. Those who attended the recent "Economic Development 1 0 1" seminar may wish to share their comments, reactions and observations with the rest of the EDA. 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 , t 04/30/2006 04/30/2006 04/30/2006 05/03/2006 05/04/2006 INVOICE LIST FOR EDA MEETING MAY 22,2006 AT 7:00 p.m. DESCRIPTION CAMPBELL KNUTSON CAMPBELL KNUTSON CAMPBELL KNUTSON XCEL ENERGY: 142 ELM ST SIGN AQUILA - 305 3RD ST ~ I $ $ $ $ $ Page 1 $ AMOUNT I 187.50 44.88 2,287.50 7.97 15.87 $ 2,543.72 I APPROVAL! p0 \G0 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 5b\ ~/'),df . Page: 1 April 30, 2006 Account # 1852G (OOS,GP403 - 10 (0 ,V{O.3 - I () t I, ftH 03 - 10 30 ,(PLfD~ - I o5D,~\{o3 - 1010.0Yol- to q (). (pc...W-.y - h~o;;"" I & <.{t>?7 - CREDITS PAYMENTS 1::1.430.00 111.50 '-It ~,5D {/6&;,5D '--r???, · 00 1~3 '6DOD (:,1. ;:;u SUMMARY STATEMENT PREVIOUS BALANCE FEES EXPENSES 1852-000 RE: GENERAL LEGAL SERVICES (RETAINER) SERVICES RENDERED TO DATE: 6,550.49 6,736.50 206.00 0.00 1852-001 RE: GENERAL LEGAL SERVICES (NON-RETAINER) SERVICES RENDERED TO DATE: 354.50 1,979.00 0.00 0.00 1852-002 RE: PASS THROUGH LEGAL SERVICES SERVICES RENDERED TO DATE: 135.00 675.00 0.00 0.00 1852-003 RE: FORFEITURES (NON-RETAINER) SERVICES RENDERED TO DATE: 152.63 189.50 0.00 0.00 1852-013 RE: EDA GENERAL MATTERS (NON-RETAINER) SERVICES RENDERED TO DATE: 121.50 ., 2,277.50 10.00 0.00 1852-018 RE: WAUSAU POND EXPANSION SERVICES RENDERED TO DATE: 0.00 27.00 0.00 0.00 1852-019 RE: ASH STREET POND PROJECT SERVICES RENDERED TO DATE: 337.50 162.00 0.00 0.00 BALANCE -6,550.49 $6,942.50 7100,~03 - /~UJ. D . /tJ30.{Pl{()-;! - SO'50 OlOO 0 . &'-103. - {'67. OD I070.C,'/o,,?- - ~/. ~ -354.50 $1,979.00 -135.00 J/(/JD .&'103 $675.00 -152.63 2100 . (P\..fO~ $189.50 -121.50 1f)OO.WD3 $2,287.50 0.00 41lD .(PLfo3 $27.00 -337.50 4-IOS.~Lf03 $162.00 . . CAMPBfLL KNUTSON Professional Association Attorneys at Law Federal Tax 1.0. #41-1562130 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 RE: GENERAL LEGAL SERVICES (NON-RETAINER) SERVICES RENDERED TO DATE: 04/10/2006 MMM Code Enforcement - prepare for pretrial. 04/11/2006 MMM .4/18/2006 JJJ Code Enforcement - Court - arraignments and pretrials. School- Meeting with PVW, CG, LMM, etc. 04/19/2006 JJJ School - Review documents, emails and telephone calls staff, PVW, emails/telephone call councilmember. 04/20/2006 AS Draft subordination agreement between EDA and Milner Development. 04/21/2006 JJJ School - Emails/telephone calls PVW re: documents. 04/24/2006 JJJ Xcel/GRE - meeting at City with LMMITG re: easements. 04/27/2006 JJJ Telephone calls with PVW re: school. AMOUNT DUE TOTAL CURRENT WORK . PREVIOUS BALANCE 05/02/2006 Payment - thank you Page: 1 April 30, 2006 Account # 1852-001 G 94 HOURS 0.10 0.30 10.00 1.50 12.50~ 37.50r 1,350.00 t 202.50 'fi 1.50 187.50 0.50 67.50 x 0.60 81.00 0.30 40.50 X" - 14.80 1,979.00 1,979.00 $354.50 -354.50 City of Farmington Page: 2 April 30, 2006 Account # 1852G PREVIOUS BALANCE FEES EXPENSES CREDITS PAYMENTS 1852-024 RE: ASH STREET EASEMENTS SERVICES RENDERED TO DATE: 109.00 0.00 0.00 0.00 -109.00 1852-025 RE: LALANI CRIMINAL APPEAL SERVICES RENDERED TO DATE: 905.81 728.00 88.85 0.00 -905.81 1852-028 RE: WETLAND BUFFER VACATION SERVICES RENDERED TO DATE: 99.00 90.00 123.00 0.00 -99.00 1852-029 RE: EDA/2004 REAL ESTATE COMPANY SERVICES RENDERED TO DATE: 1,827.97 36.00 8.88 0.00 -1,827.97 1852-031 RE: ISO #192 (NEW SCHOOL) V. CITY OF FARMINGTON SERVICES RENDERED TO DATE: 3,145.50 1,282.50 0.00 0.00 -3,145.50 1852-032 RE: 210TH STREET EXTENSION - REGAN PROPERTY SERVICES RENDERED TO DATE: 281.50 0.00 0.00 0.00 -281.50 1852-999 RE: PROSECUTION MATTERS SERVICES RENDERED TO DATE: 6,057.09 4,842.75 76.80 0.00 -6,057.09 20,077.49 19,025.75 513.53 0.00 -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. . BALANCE $O.OO/' /050. &\-f cJ3 $816.85 &~.{.,yD-t $213.00 2tJCO, (AD!> $44.88 71 CO. & L{ C13;.",. $1,282.50 . $O.OO/' I05o.&L{o3 $4,919.55 $19,539.28 . . CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax i.D. #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 April 30, 2006 Account # 1852-029G 11 RE: EDA/2004 REAL ESTATE COMPANY SERVICES RENDERED TO DATE: HOURS 04/10/2006 CJH Forward to Kevin Carroll recorded Hold Harmless and Indemnity Agreement and Abstract of Title. AMOUNT DUE 0.40 0.40 36.00 36.00 .4/10/2006 04/10/2006 Photocopy expense. Postage expense. TOTAL DISBURSEMENTS 1.60 7.28 8.88 TOTAL CURRENT WORK 44.88 PREVIOUS BALANCE $1,827.97 05/02/2006 Payment - thank you -1,827.97 TOTAL AMOUNT DUE $44.88 . 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. {005.&l/03 - 10 f 0 ,(d-{03 - 10 Il,folfD3 - 10 30 .(PLfD~ - I o5D.~'103 - I 0 10 . 0l( 01 ..... to q (). l.P<..fD'-Y - h~O')... , V <.{t>? - CREDITS PAYMENTS ~~0) \ GO ~r 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 SUMMARY STATEMENT PREVIOUS BALANCE FEES EXPENSES 1852-000 RE: GENERAL LEGAL SERVICES (RETAINER) SERVICES RENDERED TO DATE: 6,550.49 6,736.50 206.00 0.00 1852-001 RE: GENERAL LEGAL SERVICES (NON-RETAINER) SERVICES RENDERED TO DATE: 354.50 1,979.00 0.00 0.00 5b\ ~/S' cif' . Page: 1 April 30, 2006 Account # 1852G 1:2430.. 00 ,11.50 41 '6,5D [{~,5D '7? <6 ,(}O 1C93.~ fo1 . ov BALANCE -6,550.49 $6,942.50 -71 00 . t?-to 3 - / ~(,,(). 0 . / () 30. (pl.{O?? .- 6'0. ~ ~DOO . &'103. - (f5l....;T- I07P.C,i{o"?-" ~/. i5D -354.50 $1,979.00 ~ 1852-002 RE: PASS THROUGH LEGAL SERVICES J/friJO .&tf03 SERVICES RENDERED TO DATE: 135.00 675.00 0.00 0.00 -135.00 $675.00 1852-003 RE: FORFEITURES (NON-RETAINER) 2toO . (P4D.3> SERVICES RENDERED TO DATE: 152.63 189.50 0.00 0.00 -152.63 $189.50 1852-013 RE: EDA GENERAL MATTERS (NON-RETAINER) 1DOO.(v4D3 SERVICES RENDERED TO DATE: 121.50 2,277.50 10.00 0.00 -121.50 $2,287.50 1852-018 RE: WAUSAU POND EXPANSION 41lD ,~L{ 03 SERVICES RENDERED TO DATE: 0.00 27.00 0.00 0.00 0.00 $27.00 1852-019 RE: ASH STREET POND PROJECT 4-1 oS. ~l.{03 SERVICES RENDERED TO DATE: 337.50 162.00 0.00 0.00 -337.50 $162.00 . . CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax i.D. #4;-1562;30 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 RE: EDA GENERAL MATTERS (NON-RETAINER) SERVICES RENDERED TO DATE: 04/04/2006 JJJ 04/10/2006 AMP . 04/12/2006 AMP 04/18/2006 AMP 04/19/2006 AMP AMP 04/20/2006 AMP . AMP Review problem with quit claim legal; forward to AMP. E-mails to and from Kevin re: lease and meeting; telephone call from Kevin re: disposal of property; review statutes. Telephone call from Kevin re: deed; telephone call from Kevin. Telephone call from Kevin re: right of reverter and Milner closing. Telephone call from Kevin re: meeting issues. Milner - Telephone call to closer re: right of reverter; telephone call from Milner; e-mail to Kevin. Milner - E-mails from and to Kevin re: subordination agreement; e-mail from Kevin; telephone call to closer; telephone call to bank re: subordination; telephone call to Kevin; telephone call to Tina; telephone call from Robin and Lee S.; telephone call from Kevin; telephone call to Milner; e-mail to Kevin; review subordination agreement. Milner - Review surety agreements; e-mail to Lee S. Page: 1 April 30, 2006 Account # 1852-013G 67 HOURS 0.20 27.00 0.70 94.50 0.40 54.00 0.20 27.00 0.20 27.00 0.50 67.50 1.80 243.00 0.30 40.50 Page: 2 City of Farmington April 30, 2006 Account # 1852-013G 67 . RE: EDA GENERAL MA TIERS (NON-RETAINER) SERVICES RENDERED TO DATE: HOURS 04/21/2006 AS Milner Development - Talk to Russell at Associated Bank regarding subordination agreement; amend agreement. 0.40 50.00 AS Amend lease agreement for 305 Third Street property. 0.50 62.50 AS Exchange Bank Building - Draft amendment to Contract for Private Sale between EDA and 2004 Real Estate Company. 1.50 187.50 AMP E-mail from Kevin re: lease; e-mail from Kevin re: Exchange Bank Building; e-mail from Kevin; review letter to Brown. 0.60 81.00 AMP Milner - Telephone calls from staff re: revise subordination agreement; telephone call from Tina. 0.40 54.00 04/24/2006 AMP Review lease agreement; review emails from Kevin and . Tina; telephone call from Tina; telephone call from Tina; e-mail from Tina; review agenda. 1.50 202.50 AMP Milner - E-mails from and to Tina re: Milner's proposal. 0.40 54.00 AMP E-mail from Tina re: agenda items and packet; attend EDA meeting. 3.30 445.50 AS Amend lease agreement for 305 - 3rd Street property. 0.20 25.00 AS Milner - Draft subordination agreement. 0.30 37.50 04/25/2006 AMP Milner - Telephone calls from Tina; telephone call to Mr. Milner; review subordination agreement; telephone call to Tina; e-mail from Lee S. re: permit; telephone call from Milner; review Development Contracts re: right of reverter; e-mail to Tina. 1.70 229.50 AS Draft subordination agreement. 0.20 25.00 04/26/2006 AMP Milner - E-mail from Tim Milner re: subordination agreement; e-mail to Tim; e-mail from Tim; e-mail to Tim; . pull sample documents for Tim's review; e-mail to Tim. 1.10 148.50 City of Farmington Page: 3 April 30, 2006 Account # 1852-013G 67 . RE: EDA GENERAL MATTERS (NON-RETAINER) SERVICES RENDERED TO DATE: HOURS 04/27/2006 AMP Milner - E-mail from and to Milner; telephone call from and telephone call to Tina. 0.50 67.50 04/28/2006 AMP Telephone call from Kevin. AMOUNT DUE 0.20 17.10 27.00 2,277.50 04/30/2006 Dakota County Abstract - partial tract check (Milner Development). TOTAL DISBURSEMENTS 10.00 10.00 PREVIOUS BALANCE 2,287.50 $121.50 TOTAL CURRENT WORK 05/02/2006 Payment - thank you . -121.50 TOTAL AMOUNT DUE $2,287.50 . 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. tl Xcel EnergY-J: $\OD-Q~olP Please Return This Portion .s \ ~ With Your PaymentTo: Northern States Power Company ::@t(#ijtljMyij~::!Mm!if@~:: :::@g~',::Wl:"~~flWi:I~: I:@::::liiWqi~:WI:~im~W#:l:::~ll :r:))l:r~m@jitiij#:~@!I:::I:\:r 51-4874009-4 05/31/2006 $21.70 Auto Pay Do Not Thank You! Return AT 01 046557 56458B168 A**3DGT 1,1,/"1,1,11,,, ,,1.1,1..1. ,,11..11.111.1.1.,1..1.1.1.1. ,,1.11 P.O. BOX 9471 MPLS, MN 55484-9477 FARMINGTON CITY OF ATTN: ACCTS PAYABLE 325 OAK ST FARMINGTON, MN 55024-1374 51053106n48740094n0000000217000000002170 Questions: Call Please Call: (800) 481-4700 Hearing Impaired: (800) 895-4949 Fax: (800) 311-0050 Activity Summary Date of Bill Number of Payments Received Statement Number Oetach and Retain This Portion For Your Record s or write to us at: Northern States Power Company PO BOX 8 EAU CLAIRE WI 54702-0008 - ~ - - ;;; - - - Previous Balance Total Amount of Payments Balance Forward +Current Charges Current Balance - - - May 03,2006 1 67579987 $43.29 $43.29 CR . $0.00 - S2t.70' : $21. ~ Premise Summary Premise Number 302899419 303664727 Premise Identifier 142 ELM ST 201 SPRUCE ST Premise Descriptor SIGN Current Bill $7.97 $13.73 $21.70 Total Current Bill (l Xcel Energy" FARMINGTON CITY OF ATTN: ACCTS PAYABLE 325 OAK ST FARMINGTON, MN 55024-1374 ::::!:~~':li~~!~!II:l:i"::l..::!II~~~~.:li~~~r:::::::::.::.:.::/~; 05/3112006 $21.70 ~tl'ltAmAnt nl'ltA~ OIi/n:4/M Your bill is paid through Xcel Energy's Auto Pay program. On your due date, the amount is withdrawn from your financial institution and immediately credited. ~tl'ltAmp.nt # fi71i799R7 See back of bill for more information. Pl'lnA 1 of}4 Account#: 51-4874009-4 . . -I . .~~6 Aquila /)(J /1 .4: .... "''If _ / 0 OC/ b \ ~~... /[;t 1 Helpful Information Customers may register inquiries or complaints in writing to 2665145th Street West, Box 455, Rosemount, MN 55068-0455 or by calling Aquila Customer Service. If you smell natural gas, leave the premises immediately and call Aquila at 1-800-303-0357. 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 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 SeNice call 24 hour Emergency SeNice c II 1-800-303-0752 1-800-303-0357 FGTN MUNICIPAL LIQUORS Account Number: Amount Now Due: Billing Date: Auto Bank Transfer: 2059 6652 50 $15.87 05/04/06 OS/22/06 Previous Account Balance Payments Received Previous Balance Due Fees/Adjustments Current Charges Gas Total This Bill New Account Balance $57.96 57.96 CR 0.00 0.00 $15.87 15.87 $15.87 ~ $15.87 I' ~y 2WD &VZ3 $ ~ee bacK tor billing defalls. .... 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: $ $5 $10 $20 ...," Other 11.1.1,.11111,.11.11.11,.11.11,111..,1,111.1.11.11.,1,1111..11 AQUILA (PNGJ PO BOX 4649 CAROL STREAM IL 60197-4649 '.1111 "'11'11111"11'11.'.'..1.1111.'..11"11.'..11.111111111 205966525000000001687000000015873302 Please enter amount enclosed See back of bill for CheckLlNE sign up or address change. 11.'1".111,.111..11 II 1'...".1.111.1..1"1,.'.1, II 11,1", "'1 P099EM 1 585701 AB 0.317 00058570 232 58570 DP13 FGTN MUNICIPAL LIQUORS 325 OAK ST FARMINGTON MN 55024-1374 '.',',,','.11... 1.',1.1,,1,.. II ..11,111,1,1,.1111,1.1.1...1.11 2 AQLOOl P099EM 00058570 I 0008341' . . . MINUTES ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING MAY 2, 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 2. Approve Agenda MOTION by McKnight, second by Collignon, to approve the agenda. APIF, MOTION CARRIED. 3. Consent Agenda MOTION by Collignon, second by McKnight, to approve the Consent agenda as follows: a. April 18, 2006 Minutes APIF, MOTION CARRIED. 4. Discussion a. RFP Submittals Staff distributed proposals received for the facilitator for the Economic Development Summit. Councilmember McKnight gave highlights of the discussion at the Council Meeting where it was determined Council needs to have more discussions as to what they are looking for before a facilitator is selected. The EDA should hold off on any more special meetings until the Council has more discussions. Councilmember McKnight suggested going through the second half ofthe framework document and then wait for Council direction. Staff asked how Councilmember McKnight would feel about the EDA having targeted discussions regarding specific geographic areas. Councilmember McKnight suggested waiting until after the Economic Development Summit. Council needs to discuss the entire topic of economic development and where they want to go. Chair Arey noted the EDA had Council's approval to do the framework. What Council does with that is the Council's part in how this goes forward. Councilmember McKnight did not have a problem with completing the framework as he assumed that would be finished at this meeting. Community Development Director Carroll was not opposed to the EDA crafting some action plans, however ifthat is going too far, it will not be done. Chair Arey felt ifthe EDA did the work for the Council it would make Council's job easier to go in a particular direction. HRA Minutes May 2, 2006 Page 2 b. Economic Development Plan Framework Staff was unclear how the EDA wanted the assessment part. One was an assessment of why this is an important topic, why business retention and expansion is critical. The other item was to assess where we are now, and what we are doing or not doing. Chair Arey suggested where we are and a piece of why this is important. Member Collignon felt it was more of where we have been, where we are, strengths and weaknesses, opportunities and risks, objectives, goals, vision of the community, and then proceed into action plans, strategies, initiatives, etc. All three sections will have cross components within them. Member Starkman felt assessment is more where we are now and where we have been and the objective leads to where we want to go. Member Flaherty felt assessment is a sub-category and a brief statement no more than two sentences summarizing the present situation. This could be incorporated into the objectives. The board then discussed partnerships and working relationships. Staffwill change the assessment part to more specifically say what we have done and not done. Member Collignon stated within the goals, the assessment becomes a separate area. This is where the Council comes in with what they have identified as to whether we need more industrial growth, housing, etc. This defines the objectives. Then we get into what tools we have to obtain that goal and then develop the action plan. Anything that has to do with defining objectives, goals, tools, action plans within each individual category needs to come out. . Member Hardt asked if Member Collignon was suggesting that any objective or goal type statements come out of the first part and be placed in the later part. Member Collignon did not think the assessment, objective, tools and action plan should go under each heading. He did not feel objectives and action plans should be discussed at this time. Chair Arey felt once the Council reads the assessment of where we have been, then it is their goals and objectives of what they want to do with that section. Then the EDA would determine what tools are available. Member Hardt felt the objectives were reasonable and more process oriented to keep the process going. Member Collignon stated the objectives, assessment, etc. cannot be broken down into categories. The assessment is everything through technology. This is where the assessment stops and then the rest is for identifying challenges, opportunities, goals and objectives, tools, action plans. He did not want to see an assessment in each category. Member Flaherty suggested a separate section for a community profile, another section for goals and objectives, another section for tools and options available. Member Collignon agreed with this. The board continued to discuss assessments and objectives. Ifthere will be assessments in each section, they need to be very general. The focus for the next few months should be very much on assessments and then coming out of that might be some objectives. Member Hardt would be in favor oftaking the objective statements and rolling them up into a later section that just focuses on objectives, but also keep the objectives in the topical section. Chair Arey agreed with this. Member Hardt felt the assessment is absolutely critical. It was agreed to have the objectives in both places. Chair Arey could see the larger assessment . . . . . HRA Minutes May 2, 2006 Page 3 portion being in the topical section and then summarized in another spot. Staff will have the modifications ready for the next regular meeting. 5. Adjourn - MOTION by McKnight, second by Hardt to adjourn. APIF, MOTION CARRIED. Respectfully submitted, 'L, ~~:' /Yl~ (?"~ Cynthia Muller Executive Assistant . . . MINUTES ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING APRIL 24, 2006 1. Call Meeting to Order The meeting was called to order by Chairperson Arey at 7 :00 p.m. Members Present: Arey, Collignon, Fogarty, Hardt, McKnight, Starkman Members Absent: Flaherty Also Present: Andrea Poehler, City Attorney; Tina Schwanz, Economic Development Specialist 2. Approve Agenda MOTION by Hardt, second by Starkman, to approve the agenda. APIF, MOTION CARRIED. 3. Consent Agenda MOTION by Collignon, second by Hardt, to approve the Consent agenda as follows: a. Bills b. March 27,2006 Minutes APIF, MOTION CARRIED. 4. Public Hearings None 5. Unfinished Business c. Downtown Area - Exchange Bank Building and Larson Building Staff provided Mr. Brown with a timetable for the completion of the remaining work. Mr. Brown felt it was not overly restrictive and did not have a problem with it. He will make sure the contractors are aware ofthe dates. Regarding the electrical system, on July 19,2006 he will be out of town but he will contact the electrical contractor before then. Some design elements might change from the contractor. Mr. Brown has talked with the architect regarding the fire escape and he should have plans and a potential contractor in a couple days. Since the timetable is acceptable, staffwill be proposing a contract for Mr. Brown to sign at a future meeting. Attorney Poehler felt a contract could be ready by May 2, 2006. MOTION by Hardt, second by McKnight to direct staff to draft an amendment to the existing contract reflecting the timeline proposed in the April 21, 2006 letter to Mr. Brown. APIF, MOTION CARRIED. Mr. Brown noted as much as the EDA wants the work done, that does not compare to how much he wants the work done. HRA Minutes April 24, 2006 Page 2 6. New Business c. Industrial Park - Building Addition (Albert J. Lauer, Inc.) Mr. Ed Lauer, a business owner in the industrial park would like to put up a greenhouse that would either be an addition to an existing building in the industrial park or a freestanding structure located close to the existing building. Mr. Lauer stated they fabricate greenhouses. They wanted to have one to show the installers what they look like. Mr. Lauer stated it would be attached, but there would be an 8 ft. breezeway that would separate it from the building. They would grow plants within the structure to show customers how it works. The structure would be made of glass and metal. The size of the greenhouse is 25 ft x 20 ft plus 10ft back to the concrete wall which would have a metal cover. This would be placed on top of an existing patio area. Attorney Poehler felt the exterior material would apply to the design standards, however she was unsure about the metal roofing. Mr. Lauer noted he could leave the metal roofing off and use the greenhouse roofing. The board supported the idea, but was concerned with the outcome of allowing this. Chair Arey wanted to stay away from the metal roof, but did not have a problem with using the greenhouse roofing. MOTION by Starkman, second by Hardt approving the proposed application for the greenhouse structure contingent upon staff verifying the mixed use for roofing material meets the covenant requirements. APIF, MOTION CARRIED. 5. Unfinished Business e. JIT Powdercoating Attorney Poehler stated the issue is that the developer is looking to move forward with construction, however, he needs to obtain approval for construction financing to do so. The lender refused to provide construction financing without more guarantee that the financing would carry forward. With the EDA's Right of Reverter they were uncomfortable doing so. They were looking for some mechanism to ensure their construction financing would not be subordinated by the EDA's Right of Reverter. At one point, staff had proposed a Quit Claim Deed once the building permit had been approved. After talking with staff, Attorney Poehler felt the better option would have been to look at a Subordination Agreement because that would allow the terms of the contract to stay in place, but would achieve the construction financing to move forward with the Subordination Agreement in place. Mr. Milner was not satisfied with the subordination option. The Quit Claim Deed would wipe out the EDA's contract. The Subordination Agreement would put the EDA in second place to the construction financing. . . Mr. Milner stated the issue came forward with the title company. The Right of Reverter raised the flag with the title company, because the bank wanted clear title in order to go forward. The current situation is the bank and Attorney Poehler have worked out some language with regard to a Subordination Agreement. Mr. Milner felt the City was happy, the bank is willing but not happy, the business owner is very unhappy. He is almost to the point of saying to the EDA that with equipment out there ready to dig, with financing in place, with . plans set which were approved today by staff, if at this point the City does not feel HRA Minutes April 24, 2006 Page 3 . . . that Mr. Milner should just simply own the lot so he can build on it and have a building so it is just him and his bank, then maybe the City would prefer to simply exercise the Right of Reverter and purchase the lot back. At that time he would stop everything and look for an alternative place outside ofthe City. Mr. Milner stated his intentions are clear. If anyone thinks the bank is going to loan him $1.3 million and not ensure that the building is going to go up and be appraised at $1.3 million, that will happen. He is moving very quickly because the pre-cast is supposed to show up in about four weeks. This project will be done by the end of June. It is the EDA's choice. He does not see why there is a need at this point to have any type of Subordination Agreement as part ofthe development contract. If the EDA has a real reason for it, he would be happy to hear it. He does not think there are other development contracts like this in the City right now. It is very unusual. His bank was absolutely surprised to hear about it. The bank was aware of the Reverter, but the bank was surprised that at the point you are closing a deal to start construction that the Reverter would still be in position. From the bank's thinking and Mr. Milner's was that the whole idea of the Reverter was back in 1997 when the HRA asked him to buy the lot when 20Sth Street went through, the HRA did not want him to sell the lot to someone else and Mr. Milner agreed. If he did not develop it, he would sell the lot back to the City. That was the start of the Right of Reverter. His option was with the farmer that owned the land, Mr. Murphy. He gave up that option when the City needed to buy the land to create the second phase ofthe industrial park. At that point, his option with Mr. Murphy became his option with the City. When 20Sth Street went through the City was interested in getting the assessment dollars in order to pay for it, which is why Mr. Milner bought the lot. At that point it was required to have a development agreement in place in order to buy a lot in the industrial park. When Mr. Milner bought the lot he expected to build within three years. A lot has happened since then. Mr. Milner stated at this point it is the EDA's decision. They can vote to put a Letter of Subordination in place, and Mr. Milner will decide whether to sign it or not. The EDA could also decide to do the Quit Claim Deed in which case Mr. Milner owns the land, there will be no need for the Subordination Agreement, the title will be clean, and it is just between him and the bank. Councilmember McKnight asked for some of the history on this issue. Chair Arey recalled because the lot was adjacent there was an option on purchasing the lot. The option was about to run out. Mr. Milner purchased the land, there was a Development Agreement, and there were several extensions. Mr. Milner noted the option did not have a time frame. The clock started when he bought the land when 20Sth Street needed to go through for the Lexington Standard expansion. Chair Arey stated he cannot remember ifthe option had a time limit, but there was a reason the HRA asked Mr. Milner and Controlled Air to purchase the lots. Mr. Milner stated he was asked how long it would take him to expand and he felt it would be three years and everyone agreed to that. The price was the same as what he paid for the lot in 1995. The big difference was as soon as he bought the lot he paid $62,000 in assessments for 20Sth Street. Councilmember McKnight asked why the City needs a Subordination Agreement. Attorney Poehler replied HRA Minutes April 24, 2006 Page 4 every time a City enters into a development contract where the goal is to get something constructed, it is often required under the economic development statutes that it include a Right of Reverter that guarantees what the individual is purchasing the property for will happen. In this case, both the deed with the limitation, the covenants, and the extension agreements that the EDA entered into with Mr. Milner all required that before the Right of Reverter would be discontinued that the building would be built. That is extremely common. As soon as the building is substantially complete the developer would request that the EDA release the development contract. It is substantially complete when a Certificate of Occupancy is issued. . Member Starkman asked Mr. Milner what his main objection is to the Subordination Agreement. Mr. Milner replied he will have to come back to the EDA again for him to petition for the release, he will have to clear the title, and it is two steps that he does not see why they are needed. There is a reason for the City to have Right of Reverter, he completely understands and supports what has gone on, but it seems that when you are at a point where the plans are approved, you are trying to get the title work done so construction can start, it seems it is not necessary anymore. When there is a Right of Reverter and he has half the building up, is the EDA going to take the land? Members replied no. Mr. Milner asked at what point can he own the land so he can build the property. Member Hardt asked if it requires Mr. Milner to come back to petition the EDA. It sounds like a proforma. Attorney Poehler replied it would be a letter request. Also it dies by its terms, because the building is there. Member Hardt clarified that Mr. Milner would not be going through an extra step by getting a Certificate of Occupancy, that is a normal step. Member Starkman wanted something that will be mutually agreeable to Mr. Milner and the EDA so Mr. Milner can complete his project and stay within City guidelines. . Mr. Milner stated there is a distribution building being built in phase three of the industrial park. He asked if the City has a Right of Reverter with them. Chair Arey stated R&L is not part of a phase of the industrial park. They are a private developer and bought the land from Devney and Regan. Councilmember Fogarty stated the EDA had to approve the business being out there because of the covenants. The EDA did not sell them that land. Chair Arey stated it was a private transaction. The covenants do not extend to phase three and four because the EDA does not own it. Mr. Milner asked ifVinge Tile had a Right of Reverter. Chair Arey replied yes. Mr. Milner understood why it would be on a second lot. He assumed the building is completely finished at this point. Chair Arey replied Mr. Vinge has built on his first lot. He still has to build on his second lot. The HRA sold the first lot at full price and the second lot at half price. The lots were done on separate transactions. Mr. Milner stated if someone can document to him that that is standard practice by showing him that the building which has gone up in the last year had a Right of Reverter on its property all the way up to the point of Certificate of Occupancy then he will be happy to accept the Subordination Agreement. At that point he will consider that to be standard operating procedure . HRA Minutes April 24, 2006 Page 5 . . a. . ofthe City. He is being counseled by the bank and others that that is very unusual. Chair Arey noted it has been done as long as it has been on the board and did not think they would go forward without one as a protection to the City. The bank reluctantly agreed to the language in the Subordination Agreement. Councilmember Fogarty stated ifthey do not have proof ofthis, then they will go with the Quit Claim Deed. Staffwill obtain this information. Mr. Milner stated as the EDA meets once a month this leaves an open issue with how the EDA will proceed. The Building Official is hoping Mr. Milner will pay for the permit tomorrow because they want to start digging Wednesday morning. Mr. Milner will not allow digging to start until he has a loan closed. Attorney Poehler stated there are three places where the Right of Reverter is contained. One is in the deed itself, one is in the covenants themselves, and the third is the extension agreements. Her concern is that from the bank's perspective a Quit Claim Deed alone may not be enough. The Subordination Agreement has been approved by the bank. Member Collignon stated banks have encountered Right of Reverters before. It depends on their internal policies. He was surprised the bank made such an issue with this. Mr. Milner stated the original building was financed in part by an SBA504, which is past its ten year point. The title work is being done to purchase out the SBA. The 504 can be bought out two times a year, so they have to do that in August. That is why there was also concern with the language "substantially complete." If it means Certificate of Occupancy, Mr. Milner was still unsure how that will be determined. It is an expansion of the existing building and will become one building. Councilmember Fogarty stated the City will actually issue a Certificate of Occupancy for that portion ofthe building. Mr. Milner stated they expect to have the building up by July 1, 2006. Then they expect to take the better part of6 months to move and install current and new equipment. This includes the equipment in the trailers. Chair Arey stated the Right of Reverter is standard practice. The EDA will do what they can to get Mr. Milner going as quickly as possible. Member Collignon felt if the bank was willing to accept the Subordination Agreement it would be cleaner to move ahead with that at this point. Councilmember Fogarty noted ifthe City fails to provide the information requested, a Quit Claim Deed can be discussed at the next meeting. MOTION by Collignon, second by Fogarty to approve the Subordination Agreement and allow Economic Development Specialist Schwanz to sign the agreement. APIF, MOTION CARRIED. Downtown Area - McVicker Lot Staffhas contacted the two adjacent property owners to make them aware the EDA is continuing to explore the possible redevelopment of the McVicker lot. Three developers are continuing to express interest. One developer is ready to submit the same type of drawings as Four Star, another one is receptive to the Four Star proposals with some minor changes, the third was interested in the Four HRA Minutes April 24, 2006 Page 6 Stay layout. Staffwill recommend a preferred developer at the May 22,2006 EDA meeting. . b. Industrial Park - R&L Trucking Minor engineering issues are in the final review stage. The building permit will be issued within the next 30 days. d. Downtown Area - Riste Building Staff recommends any discussions regarding a developer for the Riste building be deferred until a developer is chosen for the McVicker lot. The board agreed with this recommendation. Once the three proposals are received for the Me Vicker lot, staffwill meet with all three developers before the May 22,2006 EDA meeting. Member Starkman noted three months ago staff received a letter from the Met Council indicating the City needed to have a certain number of affordable housing units by 2010. He asked if the City has assessed how many properties there are currently and how many more are needed. This is a possible livable communities development account grant from the Met Council. Member Hardt recalled his impression of the communication was that it was not a mandated number, but a number based on current trends. Chair Arey located the information which stated the need for affordable housing for 2011-2020 is forecasted to be 492 new affordable units. f. Vacant Lot at 4th Street and Main Street A meeting is scheduled for April 28, 2006 with the county to discuss the minimum net sale proceeds that the county will require the EDA to pay to the county following the sale ofthe property to Mr. Heinen. . 6. New Business a. 305 3rd Street - Former Liquor Store Building Staff thought they were close to leasing the space, but now the tenant is unsure. The tenant proposed a hobby shop type use. Staff recommended becoming more aggressive with marketing the space by continuing to work with parties that have expressed interest and also prepare a classified ad in the paper, placing a sign in the window that it is available for lease and place it on the MNPro website. Chair Arey asked if there are some things that could be done to make the building more attractive. Staffnoted some of the signs have been removed from the windows, but there is also a sign on the side and on the awning. The coolers are still in the building and are out of date. The liquor store manager may have someone interested in the conveyor. The inside could be cleaned up more. Member Collignon suggested advertising on MNPro and placing a sign in the window first and hold off on placing an ad in the paper. Members agreed with this approach. b. Economic Development Plan Staffhad made changes suggested from the last meeting. The board was very pleased with the new structure. Member Hardt found some economic . . . . HRA Minutes April 24, 2006 Page 7 development statements on the internet. He also found information on systematic business development. He will pursue this further. A special meeting will be held on May 2, 2006 to review the framework for the economic development plan. 7. Executive Director's Report There will be a Business After Hours Event at Hadler Family Chiropractic on Thursday. There is a grand opening for Olympus 24 on Wednesday. Member Collignon asked if staff was planning on having information on the EDA on the website. Staff replied nothing has been planned, but there is a new Communications Specialist and staffhas talked with her about changing references from the HRA to the EDA. Members requested to have their contact information for the EDA be placed on the web site. 8. Adjourn MOTION by Starkman, second by Hardt to adjourn. APIF, MOTION CARRIED. 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"'\;", /' / / ) ~~.\.<. / V <i I- <t C\ 13 3~ 1 S OO!:I~ ~ ~~ o ~ ~ <( .,,~,9 ~; ~. . ~~~'..' , <,~ .0t '" '\:-... .. :,,"~ ~ ..>.~ <t N <l .... 0.. o w > <l 0.. Ii ~ ~ ~ <l UlWo.. ~~Il( ........0 <l<t"- 6~~ E~~ D-OC 6:;l<l 1\ OC '> ~ ..J ll. Ii: C) C) ..J u. I- lQ u: z S 0- ct o o -J U. I- m ct u:: wZ >-): iiiz' il!0 wI- ~~ >~ U<{ 1=1L ~ 0- W I- 0; - ou.; !-l.cIl t:O~ 5~~. y~ ,:~ . - u.; POcIl I-IO~ - '" 5-~. i($ oc () ou.; ...JcIl u.~ 0", 5 ~. uol'l UJ cIl o N ~ <( z S "- a: o o -' u. o z o u w en . . . LETTER OF UNDERSTANDING THIS AGREEMENT made and entered into as of this 22nd day of May, 2006, by and between the ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON, MINNESOTA, 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 317 & 323 3rd Street in the City of Farmington (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 possibility of acquiring the Subject Property, with the intention of redeveloping the site in a manner consistent with the EDA's preferences and requirements. NOW, THEREFORE, IT IS MUTUALLY 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 above-described property and (b) undertaking the redevelopment of the property; 2. Both parties will use their best efforts to attempt to bring to fruition the redevelopment in question. 3. Both parties are aware and acknowledge that many contingencies and unknowns presently exist, anyone or more of which could make the project cost-prohibitive or infeasible, and that both parties are expending (or may expend) sums of money and/or time with full knowledge of the risks involved, and that unless agreed to by both parties in writing" neither party shall be liable for any of the other party's expenses. 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 EDA for redevelopment ofthe Subject Property, upon terms acceptable to both parties. [1] Dated: Dated: DEVELOPER: . JOSEPH M. HEINEN ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON, MINNESOTA By: Chairperson By: Executive Director . . [2] . . . EXHIBIT" A" That part of Lots 5 and 6, Block 23, Town of Farmington, Dakota County, Minnesota, described as follows: Beginning at a point on the West line of Lot 6, Block 23, Town of Farmington, Dakota County, Minnesota distant 20 feet North of the Southwest comer of said Lot 6; thence East 110 feet; thence South 30 feet; thence West 110 feet; thence North 30 feet to the point of beginning. PID # 14-77000-061-23 AND All that part of Lots 7 and 8, Block 23, Town of Farmington, Dakota County, Minnesota, described as follows: 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 of the vacated alley adjacent thereto described as follows: Beginning at the Northwest corner of said Lot 7; thence East 110 feet; thence North 10 feet; thence West 110 feet; thence South 10 feet to the point of beginning. PIN # 14-77000-086-23 [3] . . . FIRST AMENDMENT TO CONTRACT FOR PRIVATE SALE THIS AMENDMENT TO CONTRACT FOR PRIVATE SALE (hereinafter referred to as the "Amendment") is made on , 2006, by and between the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON, f/kIa HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON, a Minnesota public body corporate and politic, hereinafter "EDA," and 2004 REAL EST ATE COMPANY, a Minnesota corporation, hereinafter "Developer." RECITALS WHEREAS, on November 9, 1998, the EDA's predecessor, the Housing and Redevelopment Authority in and for the City of Farmington (the "HRA"), entered into a Contract for Private Sale with Developer (the "Contract"); WHEREAS, on ,2005, by City of Farmington Ordinance No. _, the City of Farmington reformed the HRA as the Economic Development Authority and for the City of Farmington ("EDA/Buyer"); WHEREAS, Section 5.3 of the Contract provides that the "first phase" of construction included the "completion of the first floors in both buildings and construction of the .., fire escape" and that "the Developer shall substantially complete the first phase of construction not later than ten (10) months after this Agreement is signed," that is by September 9, 1999; WHEREAS, Section 5.3 of the Contract states, "[t]he second phase shall be the completion of the second floors of both buildings" and shall be substantially completed "not later than fifteen months after this Agreement is signed.. .," that is by February 9, 2000; WHEREAS, as of the date of this Amendment, Developer has failed to substantially complete the "first phase" and the "second phase" of the construction; WHEREAS, the parties wish to amend the Contract to provide revised deadlines for completion of improvements; 124763 1 NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, the parties to this Amendment do hereby amend the Contract as follows: . Section 1. Section 5.3 ofthe Contract is amended in its entirety to read as follows: Except for unavoidable delays as defined below, Developer shall commence and complete construction of improvements identified in Exhibit C and in accordance with the schedule attached hereto and incorporated herein as Exhibit C. All construction shall be in conformity with the approved Construction Plans. For the purpose of this Section 5.3, unavoidable delays mean delays which are the direct result of strikes, litigations of third parties, fire, war, material shortage, causes beyond the Developer's control or other casualty to the improvements, or the act of any federal, state or local government unit except those acts of the EDA authorized or contemplated by this Agreement. During construction, the Developer shall make reports in such detail and at such times as may reasonably be requested by the EDA and/or by City/EDA staff concerning the actual progress of construction. Section 2. hereto. The Contract shall be amended to add as Exhibit C the Exhibit C attached Section 3. No other Amendments. All original terms of the Contract shall remain in effect except as amended hereby, and the parties agree to be bound and to perform all of the covenants and agreements in the Contract at the time and in the manner therein provided. The recital paragraphs herein are fully incorporated into the terms of this Amendment. . IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and year set forth above. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON BY: Chairperson AND: Executive Director STATEOFMINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this _ day of , 2006 by and by , respectively the Chairperson and Executive Director of the Economic Development Authority, a Minnesota public body corporate and politic, in and for the City of Farmington. . 124763 2 , . . . Notary Public 2004 REAL ESTATE COMPANY By: Its: STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) This instrument was acknowledged before me this _ day of , 2006 by , the of 2004 Real Estate Company, a Minnesota corporation, on behalf ofthe corporation. Notary Public DRAFTED BY: CAMPBELL KNUTSON (ALS) Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 124763 3 , EXHIBIT C . I. Construct a fire escape and Oak Street access/stairway to the Grand Hall ofthe building located 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 of final approval of construction plans, whichever is later; c. Complete construction (including final approval by Building Official and Fire Marshal) by August 23, 2006. II. Install sprinkler system in the building located on the Project Property: a. Submit complete construction plans and building permit application (if required) by June 14,2006; b. Commence installation of sprinkler system by July 19, 2006 or within 14 days of final approval of construction plans, whichever is later; . c. Complete installation of sprinkler system (including final approval by Building Official and Fire Marshal by September 20, 2006. III. Upgrade existing electrical system, or install new electrical system, so that the building located on the Project property has a complete and properly functioning electrical system that meets or exceeds the minimum lighting, wiring and service requirements of the Minnesota Electrical Code and the Minnesota Building Code for all uses allowed under the City's current zoning regulations. All such electrical work shall be performed by an electrical contractor licensed in and by the State of Minnesota. a. Submit complete construction plans and building permit application (if required) by July 19, 2006; b. Commence electrical system work by August 16,2006 or within 14 days of final approval of construction plans, whichever is later; c. Complete electrical system work, including final approval by Building Official and Fire Marshal, by October 18, 2006. IV. Complete whatever interior renovations may be required in the building located on the Project 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 124763 4 f . . . renovations shall include, but are not limited to, the following: replacement ofthe Grand Hall ceiling; decorative renovation(s) ofthe Great Hall; completion of upper level of the Larson Building; and renovation of the passageway between upper levels of the Larson Building and the Grand Hall. The objective shall be to prepare every portion of the Project property for immediate occupancy by suitable tenants upon the completion of interior renovations in question. a. Submit complete construction plans and building permit application (if required) by August 16, 2006; b. Commence construction/renovation work by September 20,2006 or within 14 days of final approval of construction plans, whichever is later; c. Comp ~ ( DDX, 2006 124763 5 Tina Schwanz . From: Kevin Carroll Sent: Wednesday, May 17, 20069:02 AM To: Tina Schwanz Cc: Sue Miller; Ken Lewis Subject: FW: Special Assessment Agreement Tina...please copy this e-mail (below)for the EDA packet. Also...in my mailbox there is a copy of the Special Assessment Agreement that Mr. Milner signed and returned today...could you make copies of that for EDA packet, too? Finally, Sue will give you a copy of the permit when Mr. Milner's contractor comes in and pays for it, which may occur later today; please copy that for the packet also. Thanks. Kevin Carroll Community Development Director City of Farmington 651-463-1860 (City Hall) 651-775-5962 (cell phone) From: Kevin Carroll Sent: Tuesday, May 16, 20062:23 PM To: 'tim' Subject: RE: Special Assessment Agreement . Tim, Thanks for your e-mail. It seems like we're on track to get the building permit issued tomorrow. We'll be able to do 50 if someone from your company shows up here with: (a) three duplicate original copies of the Special Assessment Agreement that have all been signed by you and by your lender (all signatures must be notarized; we'll get a copy back to you after the Mayor and City Administrator sign them, which may take a few days); and (b) a check for the remaining building permit fees. The last sentence of your e-mail implies that two options ("reinforcement storage area or expedited dock") are still under consideration with respect to the handling of the trailers. We discussed this matter at this morning's Development Committee meeting, and the consensus was that you should do whatever will get the greatest number of trailers off the street at the earliest possible moment. It was unclear to us why the preparation of the trailer parking area could not be done concurrently with the excavation work and the preparation of the footings and the installation of the FABCON panels. Inasmuch as the trailer parking is more of a traffic/law enforcement matter than a planning or land use matter, it is my understanding that Police Chief Dan Siebenaler will be contacting you to discuss this matter (if he has not yet done so). It was suggested at today's Committee meeting that you give consideration to using your existing employee parking lot for trailer storage on an interim basis and that you have your employees park along Eaton Avenue and/or 208th Street until the "regular" long-term trailer storage is ready. Passenger vehicles present much less of a problem or issue with regard to safety and roadway obstruction than truck trailers. Perhaps you and Dan could discuss this at further length when he calls you. . Kevin Carroll Community Development Director City of Farmington 5/17/2006 651-463-1860 (City Hall) 651-775-5962 (cell phone) From: tim [mailto:tim@jitpowdercoating.com] . Sent: Monday, May 15, 20069:32 PM To: Kevin Carroll Cc: Robin Roland; Tracy Geise; Ken Lewis; Sue Miller; Lisa Dargis; Joel Jamnik; Andrea Poehler (External) Subject: Re: Special Assessment Agreement Kevin, Thanks for the correspondence. All of the information in your first e-mail accurately reflects our conversation. I have 2 additional updates. 1) Schedule You may recall that we had to push the delivery of precast concrete from F ABCON one week due to delays in closing/permitting/etc. It is currently scheduled to be delivered in - 2 weeks. The Bainey Group has attempted to push delivery back another week to give us more time for site work. F ABCON has refused and has offered a late June delivery date if we are unable to stay on plan. After a lengthy meeting this AM, we have concluded that if we focus on the excavation work/footings we can still accept the F ABCON panels in - 2 weeks. This means pouring footings (and special inspections) sometime Wednesday/Thursday this week. It also means that we need to complete all the task listed in your e-mails so that I can pay for the permit by Wednesday AM. I think it is doable on my part. I see no issue with the Special Assessment agreement and have received positive response from Brain Rude, . my attorney. I have forwarded the file to Russ Gaydos at Associated Bank and do not anticipate any concerns. My hope is to have this complete (3 copies signed, notarized plus bank approval) by mid afternoon Tuesday. Could you have Sue Miller fax the revised copy of the Building Permit to 1IT (651- 463-4627) ASAP Tuesday AM. Attn Ann Christian. Ann can then prepare a check. 2) Trailers The trailer storage area is a mess. We started constructing this area last week. The significant rain fall has made the area extremely soft. Some of the class 5 material has actual "sunk" into the soils. We nearly got a the fork lift stuck this morning while "testing it out" on the small area that was deemed ready. It was decided to let the area dry out for a few days before any more trails/work is attempted. Not being an expert (but based on what I saw this morning), I believe that we are going to need to significantly redesign/reinforced the area to a far greater extent than originally planned to make it feasible to store trailers in that area. I am concerned that this may divert resources away from the excavation work that must be complete in the next 2 weeks so we are ready for the F ABCON panels. The Bainey Group offered an alternative this AM that I think merits consideration. Ifwe stay on track for the FABCON delivery (-2 weeks), Bainey believes that we could expedite the concrete pad, curb and asphalt for the new loading dock area facing Eaton Ave. Though the docks would not be available until late June, the driveway could be completely installed and we could store 4 trailers there. That would eliminate street trailer storage (except for the short time each day when trailers are being reorganized during pick ups / deliveries). Estimates are that the dock area could be completed - 1 week. 5/17/2006 . . . after the F ABCON panels are erected. There would be some additional mobilization expense which I am willing to incur as the rest of the curb/gutter/asphalt is not scheduled until late June. I believe this concept would not be a significant time difference from the 3-4 weeks after the start of construction that has been my pledge from the beginning and be a permanent solution. We have a construction meet set for lOAM Wednesday AM to specifically discuss this idea with the excavation, concrete and asphalt contractors. If anyone at the City would like to sit in, you are welcome to do so. I will contact you Wednesday to confirm which plan (reinforcement storage area or expedited dock) will be implemented with updated timeline. Tim Tim Milner President JIT Powder Coating Company 21020 Eaton Ave Farmington, MN 55024 651-463-4664 (office) 651-463-4627 (facsmile) On May 15,2006, at 4:37 PM, Kevin Carroll wrote: Tim, I have attached a draft of the Special Assessment Agreement referred to in Paragraph #2 below. Please review it and/or have your attorney do the same. If the format and content are acceptable, please print out three copies and then sign all of them in the presence of a notary public, making certain that the notarization clauses are completed. Then make arrangements to get the "Mortgage Holder Consent" on all three copies signed, dated and notarized. You can deliver all three copies to City Hall when you come to pay for and pick up your building permit. If you can, please call me in advance to let me know when you'll be coming, so that I can help make sure that all of the necessary paperwork is exchanged. After all three copies of the Agreement have been signed by the Mayor and City Administrator, I'll make sure that you receive one of the fully-executed copies. Please call me if you have any questions. Thanks. Kevin Carroll Community Development Director City of Farmington 651-463-1860 (City Hall) 651-775-5962 (cell phone) From: Kevin Carroll Sent: Monday, May 15, 200611:20 AM To: 'tim' Cc: Robin Roland; Lee Smick; Sue Miller; Ken Lewis; Lee Mann; Tim Gross; Dave Sanocki; Dan Siebenaler; Peter Herlofsky; Lisa Dargis Subject: JIT Expansion -- Status Tim, This e-mail will summarize my understanding of the current status of your expansion project. The summary is based primarily on telephone conversations that I had with you, Larry Hoffmeister and others on Friday of last week. I'm copying a number of my co-workers on this e-mail, so that everyone has a common understanding of 5/17/2006 what has been done and what remains to be done. Please call me or write back if any portion of my summary is incorrect. 1. The Engineering Division has reviewed and approved your grading plan. You have been given permission to begin grading, and preliminary work in that regard commenced last week. I think you mentioned that the grading had been slowed down a bit by all of the wet weather. We provided you with information regarding the projected building permit fees and development fees during the week of May 1. You mentioned last Friday that the total amount of the fees was more than you and your contractor had estimated. I indicated that you had the option of having some of the fees assessed to the property, so that you could pay them off over time. You said that you'd like to have the surface water management fee ($14,087.65) assessed to the property. I have asked the City Attorney to prepare a Special Assessment Agreement as quickly as possible. The format of it will be similar to the example (the Aerospace Fabrication & Materials Special Assessment Agreement) that Tina Schwanz faxed to you last week at my request. We expect to have the Agreement ready for you to sign later today or tomorrow. I'll call you when it becomes available. The City Attorney indicated that the Agreement will also have to be signed by your lender, so you and I will need to coordinate that when the document is ready. I contacted Dakota County on Friday and verified that the lot combination has been completed. I obtained the new PID and gave it to Sue Miller so that she could add it to the permit. I also asked Sue to amend the "working draft" of the building permit to delete the surface water management fee and to recalculate the total fees. When we have all of the necessary signatures on the Special Assessment Agreement, we should be able to issue the building permit immediately upon the payment of the building permit fees. Incidentally, your contractor apparently saw or was given a copy of Sue Miller's initial draft of the building permit and concluded that the permit had already been issued. I think you indicated that you would be clarifying that point for him. On Friday, you and I talked about the fact that your contractor had recently scheduled footing inspections for the week of May 15, starting on Tuesday (May 16). You indicate that the footings would almost certainly NOT be poured this week, and that you would talk with your contractor to clarify the projected timetable. For the time being, we'll leave the inspections in question on the schedule; however, if or when you determine for certain that inspections will not be needed this week, please have someone notify Sue Miller (651-463-1830) or Lisa Dargis (651-463-1813) ofthat fact so that we don't send out an inspector unnecessarily. Even though it will probably take one to three days to get the final building permit arrangements concluded, Building Official Ken Lewis has indicated that he will allow you to proceed with the excavation necessary for the footings, and with the pouring of the footings themselves, whenever it is convenient for you and your contractor to do so. However, he has asked that you NOT proceed with any other foundation-related work until the building permit has been officially issued. With regard to the trailers that are parked on Eaton Avenue and 208th Street, I believe you indicated on Friday that the remainder of the grading work will be completed as soon as weather conditions permit, and that you anticipate being able to get the trailers off the street within the next two to three weeks. I think you mentioned in the past that the trailers would remain off the street until you were ready to install pavement, at which time they would have to be moved back onto the street for a few days. They would then be moved back onto your property when the pavement was ready for truck traffic. That's where things stood as of last Friday afternoon; if there have been any significant developments since then, please let me know. Thanks. 2. 3. 4. 5. 6. . . Kevin Carroll Community Development Director City of Farmington 651-463-1860 (City Hall) 651-775-5962 (cell phone) <docs-# 125 1 28-v2-FMT _ Special_ Assessment_ Agreement_Milner _Development.DOC> 5/17/2006 . Tina Schwanz Arom: .~nt: To: Subject: Kevin Carroll Wednesday, May 17, 2006 9:22 AM Tina Schwanz FW: JIT Trailer Storage -- Update Tina, please copy the e-mails below for the EDA packet. Thanks. Kevin Carroll Community Development Director City of Farmington 651-463-1860 (City Hall) 651-775-5962 (cell phone) -----Origi na I Message----- From: Dan Siebenaler Sent: Wednesday, May 17,20069:07 AM To: tim; Kevin Carroll Cc: Robin Roland; Peter Herlofsky; Jitpowdr@aol.com Subject: RE: JIT Trailer Storage -- Update Tim, _hanks for your prompt response. You're right about Valmont/Lexington. They are a good orporate Citizen and I'm sure, an excellent neighbor. It doesn't surprise me that they would help out like this. This plan is exactly what Larry and I discussed yesterday. As noted, the most important piece of this arrangement is to keep the street wide open so we can get emergency vehicles through. So, even the production trailers should be parked in such a way as to allow a large truck to get through. We are all looking forward to the completion of your new building expansion and parking lot addition. Retention and expansion of a valuable Business like yours is always a good sign of success in our community. (Not to mention that we finally get to resolve on-street parking in the area.) Thanks Again for your cooperation. Dan -----Original Message----- From: tim [mailto:tim@jitpowdercoating.com] Sent: Wednesday, May 17, 20068:47 AM To: Kevin Carroll; Dan Siebenaler Cc: Robin Roland; Peter Herlofsky; Jitpowdr@aol.com .subject: Re: JIT Trailer Storage -- Update Kevin/Dan, 1 Based on comments received from Dan, JtT is implementing the following storage short term plan. JtT has reached an agreement with Valmont Lexington this morning (our neighbor and good custome~ to have our employees park on the south end of their parking lot effective Thursday, May 18. We wi. start moving our storage trailers off the street on Thursday and into our parking lot. This will be finished by Friday, May 29. We expect to have 1 trailer in the class 5 area and 4 trailers (with an east/west orientation) in our lot. We believe we will still have 6-8 parking spots (including the handicap space) available for short term parking. Production trailers will still be on the street though they will move typically within a 24 hour period of time. I will advise on the longer term plan later this week (ie reinforced area or expedited dock). Tim Tim Milner President JIT Powder Coating Company 21020 Eaton Ave Farmington, MN 55024 651-463-4664 (office) 651-463-4627 (facsimile) . . 2 PERMIT <_ ~__.__.-J Permit Type: Permit Number: Building FA023861 .y of Farmington ~Oak Street Farmington, MN 55024-1328 (651) 463-1830 Date Issued: 05/15/2006 Site Address: 21020 EATON AVE Lot: PID: Use: Block: Addition: Sub Type: Work Type: Description: Census Code: CommerciallInd-remodeVint fm/add Commercial Addition Occupancy: Construction Type: Zoning: Square Feet: ~,PL.V- m-L-t P)~ , \.,Cp VJ:j r{O(J?f~ ~ tD'(\1YC~ on yY1~ (I'n; )CDLPB ?'.~S pm, Description: . Remar ks: SURF ACE WATER MGMT FEE TO BE ASSESSED (14,087.65) PER KEVIN C. 5/15/06 Fee Summary: Valuation: $711,161.00 City SAC - NR 1,260.00 3900.4335 GIS FEE 174.25 1001.4614 Plan Review 2,935.89 1001.4305 SAC - Commercial/Institutional 4,650.00 6201.5030 SAN SWR TRUNK AREA 4,064.65 3900.4625 Surcharge - Based on Valuation 355.58 1001.4305 WTR MAIN TRUNK AREA 3,813.54 6501.4644 WTR QUAL MGMT FEE 317.75 6501.4637 WTR TRMT PLANT FEE 1,800.00 6501.4637 PARK DEDICATION FEE 1,718.53 Base Fee 4,516.75 1001.4305 Total Fees: $25,606.94 Contractor: THE BAINEY GROUP 14700 - 28TH AVE NO #30 PLYMOUTH, MN 55447 (763) 557-6911 - Applicant - St. Lie.: Owner: MILNER DEVELOPMENT 21020 EATON AVE FARMINGTON, MN 55024 PLEASE CALL 2 DAYS IN ADVANCE TO SCHEDULE INSPECTIONS (651) 463-1830 or 1813 APPROVED PLANS MUST BE ON SITE FOR INSPECTIONS ZU,A . . . mr@~~JH SPECIAL ASSESSMENT AGREEMENT.i MAY 112l1Jl ill Jjl u~ '~l AGREEMENT made this _ day of May, 2006, by and between the cb FARMINGTON, a Minnesota municipal corporation ("City") and MILNER DEVELOPMENT, LLC, a Minnesota Limited Liability Company (the "Property Owner"). RECITALS A. Property Owner is the fee owner of the property described on the attached Exhibit "A" (the "subject property"). B. The Subject Property shall be assessed costs, fees and charges associated with the development of the Subject Property for surface water management in the amount of $14,087.65 (the "Assessment"). C. Property Owner has requested that the City assess the total amount of the Assessment to the Subject Property in accordance with the terms of this Agreement. NOW, THEREFORE, IN CONSIDERATION OF THEm MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1. SDecial Assessment. The Subject Property is hereby assessed by the City for the Assessment in the amount of $14,087.65. The foregoing assessment will be spread over ten (10) years, with interest accruing at the rate of 5% per year on the unpaid balance until the assessment is paid in full. The Assessment shall be deemed adopted on the date this Agreement is signed by the City. 2. Waiver. The Property Owner waives any and all procedural and substantive objections to the Assessment, including but not limited to hearing requirements and any claims that the Assessment 125128 exceeds the benefit to the subject property. The Property Owner waives any appeal rights otherwise . available pursuant to Minn. Stat. S 429.081. 3. Development Approval. Nothing contained in this Agreement shall be construed to give the Property Owner pre-approval of any development of the Subject Property. 4. Bindin1! Effect: Recordine:. This Agreement shall be binding upon the Property Owner and the Property Owner's successors and assigns. This Agreement may be recorded against the title to the subject property. CITY OF FARMINGTON By: Kevan Soderberg, Mayor And: Peter Herlofsky, Jr., City Administrator STATE OF MINNESOTA ) ) ss COUNTY OF DAKOTA ) . The foregoing instrument was acknowledged before me this _ day of , 2006, by and , respectively the Mayor and City Administrator in and for the City of Farmington, a Minnesota municipal corporation, on its behalf. Notary Public . 125128 2 . . . MILNER DEVELOPMENT, LLC ~.. J J/J By:~r '/AtA)+tuL ft. (VfAJ(~ o Its: r 1, i ~((-^-- STATE OF MINNESOTA ) COUNTY OF j)c:}\1ot-d ~ ss M" Th~ foregoing instrument was acknowledged before me this J lJ~ay of \rn~ ,2006, by '-nMc\\;hu {\ M\ \\'\~-'("' , the C'n\c\= ~\\-aCK';Y- of Milner Development, LLC, a Minnesota Limited Liability Company, on behalf of said'tompany. cJMlflrAiJtm~- ) Notary Public 125128 ANN M CHRISTIAN NOTARY PUGLIC . MINNESOTA My Commission Expires Jan. 31, 2010 3 EXHIBIT" A" TO SPECIAL ASSESSMENT AGREEMENT Legal description of the Subject Property: [Original JIT Lot:] Lot 1, Block 1, Farmington Industrial Park, Dakota County, Minnesota, according to the plat recorded therein, and [TIT Expansion Lot:] Lot 1, Block 2, Farmington Industrial Park 2nd Addition, Dakota County, Minnesota, according to the plat recorded therein. [These two lots were combined by Dakota County on or about May 5,2006.] 125128 4 . . . . . . MORTGAGE HOLDER CONSENT TO SPECIAL ASSESSMENT AGREEMENT ASSOCIATED BANK. N.A., which holds a mortgage on all or part of the property more particularly described in the foregoing Special Assessment Agreement, which mortgage is dated ~\ 1-(, ,200~ and was filed for record on 'h>~ ' 200_, as Document No. ~)) , with the office of the County Recorder for 1.41t.sf'A- , Minnesota, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, does hereby join in, consent, and is subject to the above referenced Special Assessment Agreement. Dated this ~ day of r\A-~ ,2006. ASSOCIATED BANK N.A., ~~:}~~I~T<~~ STATE OF MINNESOTA ) 1 )ss. COUNTY OF D~ ) The fOJfgoing instrument was acknowledged before me this ((]1M day of .ff/l1j; , 2006, by It.-USSiJ.1 Ai ~ G{Lfjdo~ the V LC~ PeE:5i Dt::.--NI of Associated Bank N.A., on its behalf. ~~ N6T Y Ie ... DRAFTED BY: CAMPBELL KNuTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 KYRIAKY W.ACHOVSKY Notary Public Minnesota My Conm~sion Expires Jan. 31, 2008 125128 5 .. C .IE.lE .IF . Communities Working Together... Castle Rock Empire Eureka Farmington May 10, 2006 Dear Fannington EDA, . Farmington's Hometown Celebration- Rambling River Days is being planned for June 23,24, and 25, 2006. The celebration will be held in the historic downtown area with a few events elsewhere. A softball tournament is planned for Feely Fields, skateboard demonstrations at the city skate park, dodgeball tournament at Rambling River tennis courts and a bike tour of Farmington on the city's bike trails. We would like to ask for your support and permission to use the green space located at the comer of 3rd and Spruce Street. We would set up the stage-and bleacher area, as we have in the past for community celebrations. The stage would back up to the east side of the Blaha building. We will not need to use any space inside the Blaha building. We would set up the stage with Don Hayes and crew on Thursday, June 22, 2006.. Bleachers would also be placed and set up sometime that week, with help from School District # 192. We would vacate the area on Monday, June 26, 2006. We hire local kids to help keep the area clear of debris for the 3 days and when we are done on Sunday evening. We would also like permission to use the green space lot known as the McVicker's lot. We contract with a carnival and they need space to set up concession stands and game booths. - Rambling River Days also has a Craft and Merchant Mart. We set up the craft booths on 3rd Street. We usually have up to 6-8 crafters that ask for indoor space. If the old Farmington Liquor store is not rented out by Rambling River Days, we were wondering if we could use this space to provide indoor space for the Craft Mart. We would use the space from June 23 at Sam through Sunday, June 25 at 5:00 pm. We would need the front and back doors unlocked and the lights on. The hours of the Craft and Merchant Mart are Friday and Saturday, I 0:00am-7:00pm and Sunday, 11:00am-5:00 pm. Our Committee carries Festival and Event insurance with First National Insurance Agency and can provide the City with a certificate of insurance. Please let us know if you need any questions answered and thank you for your consideration. . Sin..~cee,re:,. /\ J),1' --ri~~ n. j (.;4'Q n Kris J .";J;l CEEF President Fiscal Agent for Rambling River Days 24 Spruce Street. Farmington, MN 55024 . . . Economic Development 101 Dakota Electric Janna King, CEcD, CEDFP Economic Development Services jking@econdevelop.com "Economic Vitality" Cycle ~ ~.m_ Development Development Workforce o Wortdorce ~ . Dynamic, ever-changing . Interdependent & mutually supportive . Together they create a cycle of growth & vitality @Economic Development Services 1 ~C~IC Deve~~enl . Focuses on those sectors that export a product or service & import new wealth to the region . Three ways to do it - Entrepreneurship - Business retention/expansion - Attraction . Job & wealth creation goals . Provides tax base to support community development Community DevelO~:i) . Focuses on infrastructure & quality of life necessary to attract businesses & workers . Transportation . Utilities . Telecommunications . Health care . RecreationaUcultural amenities . "Quality of life" COI18iderations . Educational resources . Enables companies to be productive & competitive in the changing economy . Enables workers to engage successfully in the changing economy . Enables communities to maintain a healthy economic base Workforce Development ~ @Economic Development Services . . . 2 . . . "Economic Vitality" Cycle WoJ1dorce ~7 Site Location Factors... How do businesses make site location decisions? Site Location Factors · Work force - skilled, productive, available, critical knowledge · Transportation (time and distance) . Industrial sites and buildings · Utilities - energy, telecom, sewer & water . Customers/suppliers . Access to capital . Access to technology @Economic Development Services 3 Site Location Factors . Taxes . Available housing . Access to higher education/training resources . Quality of life - health care, schools, amenities . Natural resources/ ag resources Bottom Line - Long Term . Costs - labor, transportation, facilities, utilities, taxes . Benefits - productivity, creativity, talent pool, proximity to customers/suppliers! competitors!air service, access to capital . Risks - time, reputation, inability to recruit talent, critical infrastructure (telcom), natural disaster Economic Development.... Why Do Communities Care? . Local employment opportunities . Residents who work nearby are better volunteers, more engaged in the community . Tax base development . Create a community where residents can work, live and play @Economic Development Services . . . 4 . . . Employment Opportunities . "Traded" Cluster businesses - Export a product or service - Import wealth - 32.2% of jobs (Twin Cities MSA,2003) - Average wage $54,555 . "Local" cluster businesses - Depend on local market - 67.7% of jobs (Twin Cities MSA,2003) - Average wage $32,100 Cluster Mapping Project. Harvam Business School Tax Base Development . Commerciallindustrial tax base typically yields more than residential tax base · $250,000 home in Apple Valley yields $2,599 with homestead credit · $250,000 business in Apple Valley yields $6,605 . Demand for public services for businesses is typically less than for residential properties Tax Base Development . Need to understand - Your community's unique situation - The particular public service demands of a residential or business development project . Be strategic - Use infrastructure efficiently - Explore increasing density @Economic Development Services 5 Creating a Sense of Community A place where residents can live, work, & play - "Softer," less tangible value - People seek a sense of community - Mental & physical health - Promotes civic engagement, volunteerism, democracy If you want economic development, what do you need? . Community capacity . Organizational capacity Community Capacity What you need.... . Transportation access . Land & buildings . Utilities . Workforce . Quality of life to attract & retain workers . Capital & incentives @Economic Development Services . . . 6 . . . Transportation Access . Major transportation corridor . 1 Q-ton all weather road . Appropriate width, tuming lanes, tuming radii . Access to workforce 'j~ . 7...........~ _ " /,5.~ _ .... -~-- - ~-~ Buildings & Sites . Site locators' questions: "Do you have... a building with xx square feet? Do you have xx acres of land with services?" . Lease/own . Existing building is often the lowest cost option . Time Business & Industrial Parks . Define appropriate market niche - Workforce - Transportation access - Land Cost - Competition . Reserve adequate land for long term development - Develop in phases - Development standards appropriate to your market @Economic Development Services 7 Industrial land & Buildings Adjacent Use . Safety - trucks, chemicals . Noise - hours of operation . Aesthetic considerations :,t''':;l -,~x"~!~1: Incompatible adjacent use rsw aparlments l..._.~ ..-=i III Outside S10rage saeened""'" view Utilities Each prospect has different requirements . Sewer & wastewater . Water - Fire pressure can be critical factor . Electricity - Cost & reliability . Telecommunications . Natural gas I Workforce . Talent pool in region . Appropriately skilled . Available - Unemployed or underemployed . Productive . Unionization . Average wage, benefits . Training resources available @Economic Development Services . . . 8 . . . Quality of Life - Amenities to Attract Workers . Varies based on type of workforce - Production - Technical, managerial, professional . Health care, schools . Housing stock . Recreational & cultural amenities Capital & Incentives . Private financial institutions . Public sector - Understand your market & situation: Do you need incentives? - If so, what type? (redevelopment, gap, microenterprise, T1F for infrastructure) - Establish clear policies (befOre the prospect shows up!!) Organizational Capacity... . Economic strategy . Teamwork!!! . Foundation building . Business retention · Capacity to respond to inquiries . Proactive attraction @Economic Development Services 9 Economic Strategy . Based on a community's or region's unique assets.... . Based on a community's "competitive advantage" Competitive Advantage . Historically based on natural resources (mining & forest products), agriculture, location, transportation and basic infrastructure . Increasingly based on human capital - knowledge Michael Porter - Harvard Competitive Advantage Competitiveness is not simply cost related factors or natural resouroes.. .other factors . Specialized labor pool or infrastructure . Disadvantages that drive innovation . Related and supporting industries creating demand, spur innovation or spin-offs . Rivalry among local industries . A .culture" that supports innovation @Economic Development Services . . . 10 . . . Teamwork Define roles and responsibilities for economic development in your community . Cities & economic development authorities - statutory authority for eoonomic development financing tools, infrastructure · Public-private or private development corporations - Important "conveners" - Older groups - real estate or cash assets · Chambers, downtown development corporations · Workforce development team members, including educational institutions Teamwork · Based on your strategy - what needs to be done . Which team member'(s) have the most appropriate skills, resources . Define roles and responsibilities · FOCUS ON THE CUSTOMER not turf . There is plenty of work, and there is plenty of credit if it is shared Foundation Building Address gaps in community capacity . Land and buildings . Workforce development . Capital and incentives · Utilities, telecom and transportation . Quality of life to attract and retain workers . In some cases, visitor attractions & amenities @Economic Development Services 11 Business Retention . Take care of existing companies first . Learn about your communities strengths, weaknesses, and opportunities through industry visits . Existing industries are often contacted by prospective companies... ... Business Retention . Focus building relationships, not filling out surveys . Visits are important, follow-up is critical to credibility . Set monthly goals; communicate regularly . Consider industry as well as company visits, speakers, events, recognition . Involve elected officials, workforce, utilities, bankers Capacity to Respond to Inquiries . Teamwork with city, local development corporation, workforce development, brokers . Timely and accurate information @Economic Development Services . .. . 12 . . . . Capacity to Respond to Inquiries . Buildings and sites inventory - Good industrial park maps, aerials, induding utilities - MnPRO, MnCAR, relationships with local brokers . Community information - Workforce, utilities, telecom, transportation, housing, health care, education, quality of life, major employers, possible suppliers . Policies on financing & incentives Proactive Attraction - Marketing . Make sure you are capable of responding to inquiries before you do active marketing · Best leads come from connections with existing companies, residents or former residents . Variety of approaches - partner with utility - networking - direct mail - media relations - advertising Resources · Economic Development Association of Minnesota www.edam.orq · UMD - Basic Economic Development Course (July 17 -21,2006) www.umdced.com · International Economic Development Council WWW.iedconline.o,,", · Dakota Future www.dakotafuture.com Janna King ikina@econdeveIoD.com 612.925.2013 @Etonomic Development Services 13 Economic Development 101 Questions??? Discussion Good Luck.... Have Fun!! Aft RIghts ReserwcI _nno King Ec_DewIopment_ 2006 @Economic Development Services ( . . . 14 Tina Schwanz .rom: ent: To: Subject: Kevin Carroll Monday, May 22,200610:12 AM Tina Schwanz FW: JIT Storage Trailer Update . i!:1 t:J . i!:l ~ OOO_0127.jpg (156 ATT725519.txt OOO_0128.jpg (171 ATT725520.txt (1 KB) (609 B) KB) KB) photos to pass out at tonight's EDA meeting. Thanks. Please copy these e-mails and text files and Kevin Carroll Community Development Director City of Farmington 651-463-1860 (City Hall) 651-775-5962 (cell phone) -----Original Message----- From: tim [mailto:tim@jitpowdercoating.com] Sent: Friday, May 19, 20069:45 AM To: Dan Siebenaler Cc: Kevin Carroll; Jitpowdr@aol.com Subject: JIT Storage Trailer Update . Dan, As of this morning, May 19, JIT has moved all storage trailer off Eaton Ave and 208th St. We choose to reinforce the trailer storage area on the north end of the expansion lot and have moved the trailers to that location. As you can see from the photo below, we still have room for 1 more storage trailer should a need arise. . 1 ATT725519.txt OOO_0127.JPG The daily production trailers are still on Eaton Ave. These are the trailers that move within a 12-36 hour period. I understand per your conversation with Larry Hofmeister that this is acceptable at the point in time. This AM, we have had 3 trailers ready for pick up being parked on Eaton Ave per the photo below. page 1 ~ . . . e . . . . . ATT725520.txt 000_0128.JPG FInally, we will be moving 1 trailer (powder storage) into the JIT parking lot at the end of business today. This trailer needs electrlcity to operate an air conditioner to protect the powder should the weather get hot and humid. AS a result, we will have - 7 cars of employees parking across the street at valmont Lexington. Again, thanks for you patience and understanding. Let me know ASAP if anything else needs to be done immediately. I have also chosen to expedite the paving of the new loading dock area, so I should have an off street spot for the production trailers by mid June (per the current construction schedule). I will keep you advised. Tim Tim Milner President JIT Powder coating company 21020 Eaton Ave Farmington, MN 55024 651-463-4664 (office) 651-463-4627 (facsimile) Page 1 . . . . ,. ~ -~ .~ ;:: I 0 ,~. :1 U ....'1 .. . .I'm ~ "~Ii ." -;, . .. " 1 4. LETTER OF UNDERSTANDING . THIS AGREEMENT made and entered into as of this 22nd day of May, 2006, by and between the ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON, MINNESOTA, a Minnesota public body corporate and politic, hereinafter "EDA" and JOSEPH M. HEINEN, hereinafter "Developer". .A Deleted:_ WHEREAS, there exists a vacant parcel of property located at 317 & 323.,?!~U?~~~~.!!!.t~~.qtLj/ of Farmington (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 possibility of acquiring the Subject Property for Deleted: . with the intention ofre p.~~~l<?p.!!l.<?!!~.<?f!h~_~J~~.~t:l.~.~~~!...~~.~~.i.~!<?!!!_~!!h~~~.~P~:.~ .P!~f~.~<?!!~~~.~~_~<?gI}J!..<?!!l.<?!!!~:___........_ ___._.:<'-. Deleted: ing NOW, THEREFORE, IT IS MUTUALLY 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 Subiect Property ~~~t~t!!I).~~I.:!~!9..I).8.!h~u_------ Deleted: above-described property redevelopment of the Subi ect ft:<?p.~.Y;"'h__""u",u,,_, ....u..u.__....u. ...____...uu..._ _____..___..u._u..__----- Deleted: p I 2. Both parties will use their best efforts to attempt to bring to fruition the~<?y:<?!~p_~~Lu_____..._______------{ Deleted: re in question. 3. Both parties are aware and acknowledge that many contingencies and unknowns presently exist, anyone or more of which could make the project cost-prohibitive or j.~R~~~t~ <:~1? J~~ .~!!~. !!!~!. !J.<?!~ .P.~!!! ~.~ .~!~ .~~.P~l1.~!!1:g f <?!. !!l.~X. ~~p.I?!1:~1.s.11~~. ~f. !tl.<?!1:~X .l.l!!c:J!<?!. !!!"!1:<?...._. _.""" Deleted: infeasible with full knowledge of the risks involved..~.______muu___.___.________h___._.______..._u_________u._u____u____-"".." Deleted: and that 4. J.J!!l<?~"~_<?!l!~i~~!!&l:<?~~.!~.l?y..~<?!h.P.I!~~~J!!_~!J!!!!g~!!~J!h~!...P~I.:!y_~.~~lU~~)j_l!l?)~.f~!...~.Y..<"---~ Deleted: u of the other party's expenses incurred under the process outlined in the terms of this Letter of ..... Deleted:. 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 EDA for redevelopment of the Subject Property, upon terms acceptable to both parties. [1] . It . Dated: Dated: . . ... DEVELOPER: JOSEPH M. HEINEN ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON, MINNESOTA By: Chairperson By: Executive Director [2] ~ . . . ~ . EXHIBIT" A" That part of Lots 5 and 6, Block 23, Town of Farmington, Dakota County, Minnesota, described as follows: Beginning at a point on the West line of Lot 6, Block 23, Town of Farmington, Dakota County, Minnesota distant 20 feet North of the Southwest comer of said Lot 6; thence East 110 feet; thence South 30 feet; thence West 110 feet; thence North 30 feet to the point of beginning. PID # 14-77000-061-23 AND All that part of Lots 7 and 8, Block 23, Town of Farmington, Dakota County, Minnesota, described as follows: 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 of the 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 [3J . .1. . ... LETTER OF UNDERSTANDING THIS AGREEMENT made and entered into as of this 22nd day of May, 2006, by and between the ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON, MINNESOTA, 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 3rd Street in the City of Farmington (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 possibility 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 MUTUALLY AGREED AS FOLLOWS: 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 of the 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 exist, anyone or more of which could make the project cost-prohibitive orimpracticable, and that both parties are expending (or may expend) sums of money and/or time with full knowledge of the risks involved., 4. 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 terms of this 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 EDA for redevelopment of the Subject Property, upon terms acceptable to both parties. [1] Dated: Dated: DEVELOPER: JOSEPH M. HEINEN ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON, MINNESOTA By: Chairperson By: Executive Director [2] ,. . . . . . . EXHIBIT "A" That part of Lots 5 and 6, Block 23, Town of Farmington, Dakota County, Minnesota, described as follows: Beginning at a point on the West line of Lot 6, Block 23, Town of Farmington, Dakota County, Minnesota distant 20 feet North of the Southwest comer of said Lot 6; thence East 110 feet; thence South 30 feet; thence West 110 feet; thence North 30 feet to the point of beginning. Pill # 14-77000-061-23 AND All that part of Lots 7 and 8, Block 23, Town of Farmington, Dakota County, Minnesota, described as follows: 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 of the 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]