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Home My WebLink About07.24.06 EDA Packet - with notes ,~ City of Farmington 325 Oak Street Farmington, MN 55024 .. ?2. / 3. f~ . -k\) \f'- i')--- - --- -- - - -- ---- -- ~ A Proud Past - A Promising Future Committed to Providing High Quality, Timely and Responsive Service to All of our Customers cP~ \{\ ~ f AGENDA ECONOMIC DEVELOPMENT AUTHORITY July 24, 2006 -7:00 p.m. City Council Chambers, City Hall w u I tLSo~ f/heJ d r- tt-f+- is ~h))\-e fD hI m SI~GG- he-'s ~ b.~<.ll~ ~ ~ D?PtJ\;v~~ +0 \,^Ol~ \~ ~:~ ~.~~~~S 1D wUl 0\ 'Ylc; \ Yl ~OY""\. ~~ O\..AA' ~% is.1ha.J- \~ ~~ . _ f~ t'"4fY"c... b",I~'c. S "4.(.<' . 4. PublicHearings(None) "l~~-&.. c..oyd-Y-~cJ '1~~ \ ALSO ~ ~~uh~p\M-.J' 5. .U~shedBusiness ,pvvv\ cdl;'~ Y1.m.A- LPj 1'V\OC)-t ~r \N~ 5C . \Q-?-pICUIS fbt blC\~. O-f.-+-e.-n nCJ fbr Infvy-yy-.cVhu-it~ ~ DowntownArea--McVickerLot Dse..S ()YIL~J pVC5bo...bUj Q/~ ~ , ~. ~clLD.e..cLn.eL.~~ ~ Please see the attached Certificate of Appr ess at the HPC approved at its last meeting. We have also enclosed copies of the minutes of that me . g. 1. Call Meeting to Order Approve Agenda Consent Agenda \ \. J a~ Bills ~ (M.A...-- y VlS"n.. a.....e.. b. June 26, 2006 Minutes Your packet includes a proposed Contract for Private Develop t between the EDA and Mr. Heinen regarding the McVicker lot. If its format and content are acceptabl , . and to authorize staff and the BDA's Chair to execute it would be in order. e City Attorney and Mr. Heinen's attorney have both been involved in the drafting of this document. The proposed Contract includes provisions regarding the EDA and Mr. Heinen paying equal shares of the cost of a survey and the title examination, which staff, Mr. Heinen and the City Attorney consider fair and appropriate under the circumstances. . . Mr. Heinen has had personal contact(s) with the owner of the adjacent building (Gossips, and they are working together to achieve a mutually acceptable agreement regarding access to the upper level of the Gossips building. Mr. Heinen's architect is working on finalizing construction plans, portions of which will be dependent upon the results of the survey that is currently in progress anq whatever arrangement is ultimately achieved regarding the Gossips staircase..p~ C+v~ ~ b. Industrial Park - R & L Trucking The City's Building Official met with the contractor on June 21 to discuss some newly proposed modifications of the original plans for the building. For budgetary reasons, R & L apparently intends to ~aunG !eru~e initial size ofthe truck terminal from 98,975 square feet to 69,967 square feet, which reduces ~~WJ the number of loading dock doors from 156 to 107 doors (50 on each side and 7 on the end). There will .' ~~ be some proportionate downsizing of the maintenance building, the office space and the number of 1t:U:i~ ) parking stalls. The Building Official has not yet received revised construction plans, but he antiCiPates. +c& " V'j that they will be submitted later this month. o I IJ-()C; ~ Downtown Area - Exchange Bank Building and Larson Building lNtl\ ~ tAU \(.e.A.-~ -Ra~n 1~1{1 - Op-h 6rJ Y1J-M CY/JV/ C~ co-e/C.AJUltfL.~()jjlehJ4J \ VI <;{1JO(J See attached progress report from Building Official Ken Lewis, along with a copy of the Certificate of ~ Appropriateness that is referred to therein. Minutes have also been attached from the June 27, 2006 HPC meeting. We have been advised that the building owner will be attending Monday night's meeting to answer questions, if any. do--h-t... ~ ~e.:>Y"', <:6pr1 n kJ..e...k ~.. .~ L Downtown Area - Riste Building Staff is continuing to work with Xcel Energy in an effort to assist Xcel in moving to an ~~rnate location, so that its existing property can potentially be combined with the Riste propertyl:lS a redevelopment site. Staff recently had a second meeting with representatives of a local commercial development/leasing ~&nPa1'lY10 discuss that company's potential involvement. / I-/- clfv b, .eT ~l o.--v VOr-i ( r-:y;p vo - W Industrial Park - JIT Powdercoating u v~~ \ &/) The new addition is now mostly enclosed (with the exception of doors) and the paving of the parking lot was completed a few days ago. Mr. Milner contacted staff on July 20 to indicate that the trailers aJong 208th Street will be moved onto the new parking lot within the next few days, after the bituminous has cured or hardened enough to support the weight of the trailers. JC/?C/ S P ()l~ (y).}~. - S 1-<--P-Vl.-lvt <. ~ 0Yl-tD f. Downtow. nj-rea- VacantLo{<<t~~.~andMainStreet p~ pL/ 2- ~) ~k.-." o w.A t1Vtt ~ ~{~ Dh~ ~ - -t - -'J .. () , We have been advised that the Deed conveying the tax-forfeited lot at 4th & Main from the State of , ".p (J.X , Minnesota to the EDA has been received by the Dakota County Treasurerl Auditor's Office. We are ,'..'..'.... .~,.~, _ currently making arrangements to provide Dakota County with checks for the required filing fees so that ~:~ the Deed can be recorded. After the Deed has been recorded, the EDA will be the owner of record and lqwe can proceed with the completion of the transfer of the property to Mr. Heinen. We hope to be able to close on that transaction during August. Mr. Heinen's contractor is completing construction and grading plans for the basement and/or foundation that will be constructed on the lot for the house than he plans to move onto the site. Staff members have been assisting him. in obtaining information from Dakota County regarding permit requirements for the moving of the house (onto and along Elm Street, which is a County road) and other County requirements regarding one or two trees that may need to be removed from the boulevard in order to remove the house from the lot. ~-r A preliminary draft of a proposed Contract for Private Development regarding this project was p e; .f- c.5>. to the EDA at a prior meeting. An updated version is included in your packet.,1ilitie , ,~, ~ moti9n to approve it and to authorize staff and the EDA's Chair to execute it . order. ~~ V'\ \1'\IvJe ttt n<. 0... rl8p~ r 4<' I ~eA- - t' Dotvntown Area -- 305 3" Street - Former Liquor Store Building hi d\ h Yllvt I' \ n~ ~ $/\ ~d \1ODplnO\(jvr'ru.,V ~()YXfhI\J . ~ At the June 24, 2006 EDA meeting it was suggested tba. t. staffta\k. Wlt1iB cou~Ple 'hf eneralcon tractors ~'t RA regarding painting, uew carpet and gen~M'A. ~}~W1. f~ aff subsequently crO\~~0 uP" -f ~;vtvY'lS~t$1\1 d-tw.J)G'~ fn.- -;(,S~~.-_~05\ y,^ P . M9Y" . ~-ttl hll'Y\ ~~Irv'->io ~ It>>r ~~~ ",,1' ~~cbiY>~~"-f~~~jm)WLr . contacted and met (on site) with Brett Seeback, an employee of a company known as "Mr. Handyman. " Mr. Seeback indicated that he would do his best to prepare a remodeling proposal and deliver it to City Hall by July 21. It will be included in your EDA packet or handed out at Monday night's meeting, depending upon when it arrives. Staff later met (on site) with Keith Kristianson of "Always-Handy Professional Maintenance Service, " who also promised that he would try to provide us with an estimate in time for Monday night's EDA meeting. ~ . In addition, it was suggested at last month's EDA meeting that staff contact the Farmington Area Historical Society and Dakota Valley Arts Council (DV AC) to determine if either group would be interested in having building space to use. Staff contacted DV AC member Bev Preece, who indicated. that the DV AC has wanted space to use for some time now and would be very interested. in the [former] liquor store space. Ms. Preece indicated. that if the space was made available to the DV AC, they would probably use it for work space, storage and the creation and display of artwork. She also indicated that she would like to be able to share the space with the Farmington Area Historical Society. However, David Schreier with the Farmington Area Historical Society was contacted. and he indicated that his group is a "research, publication and presentations-type" organization and that they therefore have no interest in obtaining or using office or storage space (see attached fax). There will obviously be some amount of expense involved in remodeling the building, and it has yet to be determined. whether the DV AC would be able to handle such costs on its own, or whether the DV AC would be able to pay rent in an amount that would enable the EDA to eventually recover the remodeling costs (if the EDA paid for those costs up front), or whether the EDA would be willing to essentially subsidize the DV AC by incurring such costs without any expectation of reimbursement. 6lN e suggest that the EDA authorize staff to conduct further discussions with DV AC representatives about such matters during the next month, to clarify the options that may exist and to thereby work toward the creation of a . specific proposal that the EDA can consider at its August meeting. In the meantime, staffwill also continue to interact with any prospective commercial tenants who contact the City regarding the ~ilding. ~ . ~f1'l\' lo\.7 V n <=J f.D..c ~ m \'& <; \ on 'to ~ \'Y\.OYQ... 1 n-u::, an ~DcleJ Ins w*+- ~ J \)oJ Finally, your packet includes a quote that has been obtained regarding the cost of putting a new awnmg ~ \J- ~$":~ on the building. (The existing awning displays the phrases "Off-Sale" and "Farmington Liquors."). The~ ",0\ ~- expense is a bit higher than staff had anticipated. Ifthe EDA eventually obtains a rent-paying .~Q \ '('\l~ commercial tenant, it may be feasible to replace the awning and recover most or all of the awningO'Y'Y.d-o '\ ~, replacement expense through the lease payments that the EDA receives. This option may npt be as ~ ~'W7 viable if the EDA leases the building to a non-profit organization that pays little or no rent. The staff ~ ~ ~ i)$ recommendation ~s that we defer taking action on the awning until more is known about the eventual Us: "V.~'\~-- \~() tenant. In the meantime, we can seek information about other alternatives, such as painting over the h J.v ,,\J-,tt' ~ letters or perhaps SeWing. a ma. tCh. ing Piece. of canvas over them. The latter option could pe~~: 1, . \ a space to display the n~e ofth~@-~ tenant. ~ :~' ~) ~& (L'---~oyv\~~ ~~V5tUS:.~lr.s ~~~ ~ \ ~ ;>~, . ~ b. Economic Development Summit; Economic Development Plan <>rC<OO ~~ <-10_ ('1\ ~ ~A ~ e City Administrator will continue to work with staff and with the City Council to clarify the manner \i~Y/ in which (and the timetable under which) the Council would like to (1) proceed with its original plan to ~b ' conduct an Economic Development Summit and (2) thereafter complete the Economic Development Plan [EDP]. The City Administrator may intend to address these issues with the City Council at a future . workshop meeting. In the meantime, City staff members will continue their work on various "component parts" of the eventual EDP, including the business list that staff members are now in the process of refining. f\~~ -\-0 ~~~ YUex ~t~. ,-Va ~ ~~, · , i> Your packet also includes a copy of a working draft of a spreadsheet that staff members have prepared in ,t an effort to summarize the current status and recent history of various commercial and industrial development projects. We intend to update this summary on a monthly basis. It will be provided to other City staff, the City Council, the EDA and any other person or organization that may need or want. such information. Staff members have been advised that representatives ofthe Northern Dakota County Chamber of Commerce intend to make a presentation at the August 7 City Council meeting regarding their desire to have the City Council enter into a joint resolution regarding the creation of an Eemromie Growth Committee. k,oL> ~cl Q ~",-l- ~ ~\:.-> ~ vv-"'-'-'~ c.k:x:::>0f" \-t- 6. New Business "'.t..A-t...v \V~ ~~ .. k ~ r a. Downtown Area - Heinen Redevelopment Area (Elm Street) Mr. Heinen's architects are currently focusing on completing construction drawings for the remodeling of the southern fa~ade of his existing building at the conier of Elm Street and 3rd Street. As we understand it, attention will later shift to the proposed easterly expansion of that building, after the two brick houses located on that side of the building have been removed, and after the McVicker project is completed or at least well underway. b. Downtown Area - Rambling River Days One of the organizers of Rambling River Days indicated that the crafters who used the former liquor store building for the craft show definitely appreciated the roof over their heads when a heavy rainstorna came through Farmington on Sunday afternoon. ., c. Tour of "The Grand" in Northfield Staff members are still working on the scheduling ofa tour of "The Grand" in Northfield, which will probably occur in August. We will contact you individu. altx.. i inn -' ~ effort to find a date and time that work for the greatest number of people. ~ 1y\}J Executive Director's Report 7. 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 -r 0lA..N f')C~ ~ ~ ~~ ~~ f0rj ~ '7 . . . . our Proposal by OJ On time. Done right.'~ Structures · Kitchens · Baths · Basements · Decks July 24,2006 City of Farmington Attn: Tina Schwanz 305 3Td St. Farmington, MN 55024 Evaluation for City of Farmington owned building. Scope of Project: This bid consists of various projects at 305 3rd Street, Farmington MN, in order to make it more functional as lease space. . Paint all walls on the main floor. Labor and Materials: $1,625.00 . Remove shelving from all walls. Labor: Disposal: 540.00 250.00 . Remove desk/counter by the front door. Labor: Disposal: 850.00 125.00 . Box in 2 posts and a steal beam. Labor: 1,080.00 . Remove surveillance equipment and install ceiling tiles where equipment was removed. Labor and Materials: 975.00 2917 133rd St. W. Shakopee, MN 55379 Phone: 952-944-1024 Fax: 952-400-1142 b www.mrhandyman.comBBBANGIE.SLlSTtwincities@mrhandyman.com -r SUPER SERVICE AWARD" . Frame and install a door to the bathroom. Finish with drywall and trim. . Labor and Materials: 1,440.00 . Install new door handles and lock sets. Labor and Materials: 175.00 each set. . Remove existing carpet and install a new carpet pad and mid grade commercial carpet. ~ "n I s-D 2- -;- ~ '> T Labor and Materials: 54.00 per square yard \ -::- For a possible interest in the cooler, please contact Strategic Equipment and Supply in Golden Valley: 763-231-3900. . . 2917 133rd St. W. Shakopee, MN 55379 Phone: 952-944-1024 Fax: 952-400-1142 www.mrhandyman.com~ANGIE.SLlSTtwincities@mrhandyman.com -r SUPER SERVICE AWARD" Always-Handy Handyman Services Keith Kristiansen 1107 Walnut 8t .armington, MN 55024 651-460-6548 E147 July 21, 2006 . City of Farmington Tina 325 Oak 8t Farmington, mn 55024 City of Farmington Tina 325 Oak 8t Farmington, mn 55024 Replace 3 doors 750.00 750.00 Remove Shelves and Counters 400.00 400.00 Box in Pipe 745.00 745.00 Box in Posts and Beam 1,135.00 1,135.00 Paint Walls 2,100.00 2,100.00 . Install Laminate Floor over Carpet 5,200.00 5,200.00 Dumpster 300.00 300.00. -Does not include sights unseen- Sub-Total State Tax 6.50% on 0.00 TQ~I $10,630.00 0.00 '10,O~O.9C) . . Always-Handy Handyman Services Keith Kristiansen .107 Walnut St armington, MN 55024 651-460-6548 E147 July 21, 2006 . City of Farmington Tina 325 Oak St Farmington, mn 55024 City of Farmington Tina 325 Oak St Farmington, mn 55024 Replace 3 doors 750.00 750.00 Remove Shelves and Counters 400.00 400.00 Box in Pipe 745.00 745.00 Box in Posts and Beam 1,135.00 1,135.00 Paint Walls 2,100.00 2,100.00 . Remove Carpet 2,500.00 2,500.00 . Dumpster 300.00 300.00 -Does not include sights unseen- Sub-Total State Tax 6.50% on 0.00 Total $7,930.00 0.00 $7,930.00 . . City of Farmington 325 Oak Street Fannington, MN 55024 . WU VX~ . -\(\.-\1) \ A Prllf"'" Pn~t _ A P..^...:~;..n 17u~~._,? 1. Call Meeting to Order (~ ~/~~ c5b VoteD CVrlJ O~ MC0 to ~ \<-f0 W\rJ cc*- /~ V} iUp~ fi:v(l(loh // b ~I(J\ ~ t:b./yY). ~~Y) AGENDA ECONOMIC DEVELOPMEJ July 24, 2006 -7:0( City Council Chambers~ 2. Approve Agenda 3. Consent Agenda a. Bills b. June 26, 2006 Minutes I I I / 4. Public Hearings (None) 5. Unfinished Business \\ P\".OVl ~ I n~ ~I. CSl.A-. i.ftJ Iyi. oe>t /L.e~..+ 1/,'-<:>rY"f ~ . CJf-P I CL~, fbr (0 J CtJ' O-+-R VI n') -fl...-y it-\. fr./'r VY">Ci.;n-u;r, ~ a. Downtown Area -- Mc Vlcker LoteL;~rp D$e-S <JYI L'-jJ e //01';) CLb lAj Q.-h.cv~ '-~ ~y~~o0r)~ ccn.JL~t>>UYl.P-r.tf- cn. ~ Please see the attached Certificate of Appr8iffiM~t the HPC approved at its last meeting. We have also enclosed copies of the minutes of that meetill:$. Your packet includes a proposed Contract for Private Developtnept between the EDA and Mr. Heinen regarding the McVicker lot. Ifits format and content are acceptabie~ motion to approve it-Eld to authorize staff and the EDA's Chair to execute it would be in order. "The City Attorney and Mr. Heinen's attorney have both been involved in the drafting of this document. The proposed Contract includes provisions regarding the EDA and Mr. Heinen paying equal shares of the cost of a survey and the title examination, which staff, Mr. Heinen and the City Attorney consider fair and appropriate under the circumstances. . Mr. Heinen has had personal contact(s) with the owner ofthe adjacent building (Gossips, and they are working together to achieve a mutually acceptable agreement regarding access to the upper level of the Gossips building. Mr. Heinen's architect is working on finalizing construction plans, portions of which will be dependent upon the results ofthe survey that is currently in progress and whatever arrangement is ultimately achieved regarding the Gossips staircase. b. Industrial Park - R & L Trucking The City's Building Official met with the contractor on June 21 to discuss some newly proposed modifications of the original plans for the building. For budgetary reasons, R & L apparently intends to V cLcn-L tncu ) , reduce the initial size ofthe truck terminal from 98,975 square feet to 69,967 square feet, which reduces \fltJ ~ the number ofloading dock doors from 156 to 107 doors (50 on each side and 7 on the end). There will )4)01 be some proportionate downsizing ofthe maintenance building, the office space and the number of :ujJ parking stalls. The Building Official has not yet received revised construction plans, but he anticipates A I '''J that they will be submitted later this month. (e [l 10<; LlW~ '- ,~ c. Downtown Area - Exchange Bank Building and Larson Building (I)Lt \~ -hVVYJ i~n - op-h Dn)h~ GVMr3~~ u...;.e/~/€Jo.a/-ehJ12 See attached progress report from Building Official Ken Lewis, along with a copy of the Certificate of i~ Appropriateness that is referred to therein. Minutes have also been attached from the June 27,2006 HPC meeting. We have been advised that the building owner will be attending Monday night's meeting to answer questions, if any. dD.-::k.- ~ ~O'() ~rl n ~ ~, '6 d. Downtown Area - Riste Building Staff is continuing to work with Xcel Energy in an effort to assist Xcel in moving to an ~temate location, so that its existing property can potentially be combined with the Riste proper1y~ a redevelopment site. Staff recently had a second meeting with representatives of a local commercial development/leasing ~ompany to discuss that company's potential involvement. J -I Co v'j-~, ~ 0/ +e), l c.vvYL---rc I ryp ~ - e. Industrial Park - JIT Powdercoating The new addition is now mostly enclosed (with the exception of doors) and the paving of the parking lot was completed a few days ago. Mr. Milner contacted staff on July 20 to indicate that the trailers aJong 208th Street will be moved onto the new parking lot witIlln the next few days, after the bituminous has cured or hardened enough to support the weight of the trailers. JL DC-: S P ol~ ()I.t) ~ '.\ S ~L.~ji <: h-t-ov-e..ol 0"')r\+o Downtown Area - Vacant Lot at lh Street and Main Street P w~ P L,/ '2- ~> ~~" L-~~ ~ ~ -- - -'J .. (J' We have been advised that the Deed conveying the tax-forfeited lot at 4th & Main from the State of O(JY P Minnesota to the EDA has been received by the Dakota County Treasurer/Auditor's Office. We are A ~"J. J currently making arrangements to provide Dakota County with checks for the required filing fees so that jJ~ ~'(7}the Deed can be r~corded. After t~e Deed has been recorded, the EDA will b~ the owner of record and ~~we can proceed WIth the complel1on of the transfer of the property to Mr. Hemen. We hope to be able to "~~- - close on that transaction during August. Mr. Heinen's contractor is completing construction and grading \. A \ M plans for the basement and/or foundation that will be constructed on the lot for the house than he plans J~' 'U to move onto the site. Staff members have been assisting him in obtaining information from Dakota County regarding permit requirements for the moving of the house (onto and along Elm Street, which is a County road) and other County requirements regarding one or two trees that may need to be removed from the boulevard in order to remove the house from the lot. f. A preliminary draft of a proposed Contract for Private Development regarding this project was provided to the EDA at a prior meeting. An updated version is included in your packet. If it's acceptable, a motion to approve it and to authorize staff and the EDA's Chair to execute it would be in order. g. Downtown Area -- 305 3rd Street - Former Liquor Store Building !f.JJ At the June 24, 2006 EDA meeting it was suggested that stafftalk with a couple of general contractors. ~, . regarding painting, new carpet an. d gencr;,?lftr work for the interior of the space. Staff subsequently I (]\ &j'J -r - cJbP l;/ ~(.' ,SS oP ~).. cV-~~y{'tJ..-~C)uJi \QJ. ~uvJJ ..Q)$ \. )...- ^ ~\rvr 1~11 . . . contacted and met (on site) with Brett Seeback, an employee of a company known as "Mr. Handyman. " Mr. Seeback indicated that he would do his best to prepare a remodeling proposal and deliver it to City Hall by July 21. It will be included in your EDA packet or handed out at Monday night's meeting, depending upon when it arrives. Staff later met (on site) with Keith Kristianson of "Always-Handy Professional Maintenance Service," who also promised that he would try to provide us with an estimate in time for Monday night's EDA meeting. ill addition, it was suggested at last month's EDA meeting that staff contact the Farmington Area Historical Society and Dakota Valley Arts Council (DVAC) to determine if either group would be interested in having building space to use. Staff contacted DV AC member Bev Preece, who indicated that the DV AC has wanted space to use for some time now and would be very interested in the [former] liquor store space. Ms. Preece indicated that if the space was made available to the DV AC, they would probably use it for work space, storage and the creation and display of artwork. She also indicated that she would like to be able to share the space with the Farmington Area Historical Society. However, David Schreier with the Farmington Area Historical Society was contacted and he indicated that his group is a "research, publication and presentations-type" organization and that they therefore have no interest in obtaining or using office or storage space (see attached fax). There will obviously be some amount of expense involved in remodeling the building, and it has yet to be determined whether the DV AC would be able to handle such costs on its own, or whether the DV AC would be able to pay rent in an amount that would enable the EDA to eventually recover the remodeling costs (if the EDA paid for those costs up front), or whether the EDA would be willing to essentially subsidize the DV AC by incurring such costs without any expectation of reimbursement. 6W e suggest that the EDA authorize staff to conduct further discussions with DV AC representatives about such matters during the next month, to clarify the options that may exist and to thereby work toward the creation of a specific proposal that the EDA can consider at its August meeting. ill the meantime, staffwill also continue to interact with any prospective commercial tenants who contact the City regarding the ",j guilding. . . ~Vov \Ci. n V) ~ ?-lU" rYI \'S,'c.]Of"J ,t{) ~+ \'YI,OYQ.. \ 0*0 an j\j2...-\"Y-'ocieJ, ns wsti+- Finally, your packet includes a quote that has been obtained regarding the cost of putting a new awmng p&lc.. on the building. (The existing awning displays the phrases "Off-Sale" and "Farmington Liquors."). ThelVJ expense is a bit higher than staffhad anticipated. Ifthe EDA eventually obtains a rent-paying 0 i-'A ~ commercial tenant, it may be feasible to replace the awning and recover most or all of the awningov- 0..0 replacement expense through the lease payments that the EDA receives. This option may not be as l~ viable if the EDA leases the building to a non-profit organization that pays little or no rent. The staff I....-U1.<.J recommendation is that we defer taking action on the awning until more is known about the eventual v) tenant. ill the meaiitime, we can seek informatIon about other alternatives, such as painting over the -hs cW ~ letters or perhaps sewing a matching piece of canvas over them. The latter option could p~~~~ 17 A . a space to display the name ofthe eventual tenant. 6;, ~-=- v} l:q~\-- a. \.-~ qv\d~v-e - 010 001 ~ -n~}?~r>s ~ -\--j~ ~ \ __' / (C{~.. h. Economic Development Summit; Economic Development Plan ~~, e-k:.. k, <---0_ The City Administrator will continue to work with staff and with the City Council to clarify the manner in which (and the timetable under which) the Council would like to (1) proceed with its original plan to conduct an Economic Development Summit and (2) thereafter complete the Economic Development Plan [EDP]. The City Administrator may intend to address these issues with the City Council at a future workshop meeting. In the meantime, City staff members will continue their work on various "component parts" of the eventual EDP, including the business list that staff members are now in the process of refining. \\ O~\~ -\:-Q ~~~ ?~h 0('. \ cy--.t- \,- ,-LA- s., L-Od hl- l.o,."" -- '~~fb()u '-" ~ 0\.... O\...~ .,. . Your packet also includes a copy of a working draft of a spreadsheet that staff members have prepared in an effort to summarize the current status and recent history of various commercial and industrial development proj ects. We intend to update this summary on a monthly basis. It will be provided to other City staff, the City Council, the EDA and any other person or organization that may need or want . such information. Staff members have been advised that representatives of the Northern Dakota County Chamber of Commerce intend to make a presentation at the August 7 City Council meeting regarding their desire to have the City Council enter into a joint resolution regarding the creation of an Economic Growth Committee. 1(.,00 rv-e-v,,,cl Q Y\f\-~.+ ~ d<-~\:-" u~ ~ V'"...... e<-ioo0t" \.z. 6. New Business ~.tAvv vv~. ~~.-r= k CAJ------- a. Downtown Area - Heinen Redevelopment Area (Elm Street) Mr. Heinen's architects are currently focusing on completing construction drawings for the remodeling of the southern favade of his existing building at the comer of Elm Street and 3rd Street. As we understand it, attention will later shift to the proposed easterly expansion of that building, after the two brick houses located on that side ofthe building have been removed, and after the McVicker project is completed or at least well underway. b. Downtown Area - Rambling River Days One of the organizers of Rambling River Days indicated that the crafters who used the former liquor store building for t~e craft show definitely appreciated the roof over their heads when a heavy rainsto~ came through Fannmgton on Sunday afternoon. \. c. Tour of "The Grand" in Northfield Staff members are still working on the scheduling of a tour of "The Grand" in Northfield, which will probably occur in August. We will contact you individually in an effort to find a date and time that work for the greatest number of people. 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 re . . . 1 , DATE f I 06/09/2006 06/15/2006 06/16/2006 06/30/2006 06/30/2006 07/03/2006 07/14/2006 07/14/2006 INVOICE LIST FOR EDA MEETING JULY 24, 2006 AT 7:00 p.m. ~ I $ $ $ $ $ $ $ $ DESCRIPTION Eide Bailly Rivertown Newspaper Xcel Energy - 305 3rd St Campbell Knutson Campbell Knutson Xcel Energy - HRA Sign Dakota County Property Records Dakota County Treasurer/Auditor Page 1 $ AMOUNT ~ 908.85 33.00 53.68 459.00 162.00 7.97 46.00 6.65 $ 1,677.15 I APPROVALl 5601 Green Valley Drive, Ste 700 Minneapolis, MN 55437-1145 ~~>>~ EideBailly.M ~ \O~a6'-\ City of Farmington Robin Roland Finance Director 325 Oak St Farmington MN 55024 I N V 0 ICE &/30 952.944.6166 Fax: 952.944.8496 . Date: 6/09/06 Page: 1 32965-798236 Please return this portion with your payment. - .- ___ __ _ _______ _ _-_ _ _:. _-~-::..:... ~-~::-..: ~._ :.::~=_-:..:~~:.:..::... -,::....: _ ~=--~ _...:;.:... _ _--=,=,:,;;"~_,:",=:,,:;,,:~.~,;,;:,,_,,;:,,;--=---=__,,,,--""--"-.__h _ _ _ __ ----------------------------------------------------------------------- BILLINGS ARE DUE UPON RECEIPT Final Billing Financial statement audit for year ended December 31, 2005. Additional services and assistance with preparation of financial reports as requested by Finance Director/Activity Administrator. Less: Progress billings CURRENT TOTAL 10 2..l. ~40 l 2.000. ~ol 2.5b2.. "f.{O l (g 11 0 · (,~O J b1b~. ~'-lO( ~;). (;/01 \ft ~O) .(p'-{of 2.ll87.~ 908.gs 3C1li. is 4'1 ).. (pO 4/8.70 41 g. 7D I..{ {i", 7D ~qO.OO 22,290.00 1,500.00 18,300.00. $ 5,490.00 -------------- -------------- " ~~\~ \p \0 . ~...~ EideBailly. ~ 5601 Green Valley Drive, Suite 700 Minneapolis, MN 55437-1145 . 952.944.6166 . Fax 952.944.8496 Federal I.D. #45-0250958 A SERVICE CHARGE on past due accounts is computed by a PERIODIC RATE OF 1% per month. which is an ANNUAL PERCENTAGE RATE of 12% applied to the past due amount. PAYMENT IS DUE UPON RECEIPT. . Independent .UbSCriPtiOn Services P.O. Box 15, Red Wing, MN 55066-0015 1-800-284-3402 subscriptionsservices@rivertowns.net 06/15/06 1000001087 M6 ACCOUNT BILLED FOR Subscri Rates: KEVIN CARROLL 325 OAK ST FARMINGTON MN 55024-1374 1.1.1..1.1.11111111.1.1'11'1,111,11.1'1.1.11.1'11,1,1,11,,1,/1 Credit card: Expiration Date: Signature: Phone: (We 'Il keep it confidential) Tear here and return upper portion ...................................................................................................................................... News tips, concerns.... .......... ...... .... ........ ....651-460-6606 E-mail -editorl@farmingtonindependent.com E-mail -gml@farmingtonindependent.com --....""" Customer Service Information General Information ....................................651-460-6606 Fax.............................. ... .... ...... .................. .651-463-7730 Subscriber services................................. .1-800-284-3402 . After hours, please leave a detailed message Placing a Classified ad ..............................651-437-6730 Classified advertising fax.. ........... ..... ..........651-437 -5911 Display or Web advertising ........................651-460-6606 E-mail -adsalesl@farmingtonindependent.com Sports news, tips ........... ............. ................651-460-6606 '\' 003S1worldW; web 10/30 www.far I tQOI APtt . Expiration Date Account Number Check Number Amount Paid 06/15/06 1000001087 ~ Xcel Energy'" / Please Return This Portion With Your PaymentT 0: Northern States Power Company ::::::::Y~!flsi~ij9.tmW1'wf::: t::!!~iW!!!mfflWm::::: ::::t:ii:liAA#ntWlWm',:wij:::i::::::: :::::::::::::::il.m@m;:m~tM!gl~I::g 51-4874008-3 07/1 4!2006 $1,174.93 Auto Pay Do Not Tha nk You ! R etu rn AV 01 030308 59830C121 A**5DGT 1.1.1..1.1.11'11..1.1.1..111111..11.11111.1..1..1.1.1.111.1.11 . P.O. BOX 9477 MPlS, MN 55484-9477 FARMINGTON CITY OF 325 OAK ST FARMINGTON MN 55024-1374 51D714Dbn48740083rlOOOD0117493DDDDD117493 Detach and Retain This Portion For Your Records or write to us at: Northern States Power Company PO BOX 8 EAU CLAIRE WI 54102-0008 - - - Questions: Call Please Call: (800~ 481-4700 Hearing Impaired: (800~ 895-4949 Fax: (8001311-0050 Activity Summary Date of Bill Number of Payments Received Statement Number - - . "!!3 Jun 16,2006 1 12131518 Previous Balance Total Amount of Payments Balance Forward +Current Charges Current Balance $1,064.33 $1.064.33 CR $0.00 $1.114.93 $1,114.93 - - - - - - - - - Premise Summary Premise Number 303533111 303971265 --- Premise Identifier 305 3RD ST 109 ELM ST UNIT A Premise Descriptor NEW LIQUOR STORE . Total Current Bill $1,114.93 ~~-=.~ c:~ (j~ :t> ..."7-.. 1J~~ /~ o \~ \ 8 J\/L (l Xcel Energy' # Statement Date: 06/16/06 ::!::lif,II!IIII!~::::::::;:II!!~fl~tlll;::::~:: FARMINGTON CITY OF 325 OAK ST FARMINGTON MN 55024-1374 See back of bill for more information. Page 1 of3 Account #: 51-4874008-3 Page: 2 June 30, 2006 Account # '1852G PREVIOUS BALANCE FEES EXPENSES CREDITS PAYMENTS BALANCE 1852-022 RE: EDA/EXCHANGE BANK BUILDING SERVICES RENDERED TO DATE: 175.50 0.00 0.00 0.00 -175.50 $0.00 1852-025 RE: LALANI CRIMINAL APPEAL SERVICES RENDERED TO DATE: 66.50 0.00 0.00 0.00 -66.50 $0.00 1852-028 RE: WETLAND BUFFER VACATION SERVICES RENDERED TO DATE: 179.00 0.00 0.00 0.00 -179.00 $0.00 1852-029 RE: EDA/2004 REAL ESTATE COMPANY 2Cf..:D. W<5 SERVICES RENDERED TO DATE: 0.00 27 -'l0 0.00 0.00 0.00 $27.00 . 1852-030 RE: EDA/JOSEPH M. HEINEN (CONTRACT FOR PRIVATE DEVELOPMENT) SERVICES RENDERED TO DATE: 0.00 432.00 0.00 0.00 0.00 2-000 . (0..( 03 $432.00 1852-031 RE: ISD #192 (NEW SCHOOL) V. CITY OF FARMINGTON SERVICES RENDERED TO DATE: 3,348.00 0.00 0.00 0.00 -3,348.00 $0.00 1852-033 RE: ISO #192 (NEW SCHOOL) - PASS-THROUGH SERVICES RENDERED TO DATE: 2,295.00 1,575.00 0.00 0.00 1852-999 RE: PROSECUTION MATTERS SERVICES RENDERED TO DATE: 6,087.83 6,176.00 28.03 0.00 -2,295.00 4tpOO.{p"-{03 $1,575.00 -6,087.83 \o0D,~O?> $6,204.03 23,206.09 15,141.00 302.06 0.00 -23,080.09 $15,569.06 . Amounts due over 30 days will be subject to a finance charge of .5% per month (or an annual rate of 6%). Minimum charge - 50 cents. .... .0- _..._--"~._~::'" .::.~.".."'~ ,'"'-"~ CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax 1.0. #41-1562130 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 ~ . City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 Page: 1 June 30, 2006 Account # 1852-029G 13 RE: EDN200,4 REAL ESTATE COMPANY SERVICES RENDERED TO DATE: HOURS 06/05/2006 AMP , Telephone call from Tom Krier, assessor's office re: CRV confirmations. ... 0.20 27.00 - - 0.20 27.00 27.00 . $27.00 AMOUNT DUE TOTAL CURRENT WORK TOTAL AMOUNT DUE Amounts due over 30 days will be subject to a finance charge of .5% per month (or an annual rate of 6%). Minimum charge - 50 cents. . . CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax 1.0. #41-1562130 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 Page: 1 June 30, 2006 Account # 1852-030G 3 RE: EDAlJO$EPH M. HEINEN (CONTRACT FOR PRIVATE DEVELOPMENT) SERVICES RENDERED TO DATE: HOURS 06/21/2006 AMP E-mails from staff and Heinen re: contract; e-mail from Kevin; e-mail from"Joe Heinen. 0.60 81.00 .6/22/2006 AMP Telephone call from Kevin C.; e-mail to attorney Marrone; e-mail from Kevin; telephone call from Kevin; e-mail from attorney Marrone. 0.70 94.50 06/23/2006 AMP Telephone call from attorney Marrone; e-mail to attorney Marrone; telephone call from attorney Marrone. 0.50 67.50 06/26/2006 AMP Telephone call from attorney Marrone; e-mail to Kevin; telephone call from attorney Marrone; telephone call to Kevin. 1.00 135.00 06/27/2006 AMP Voicemail from Kevin; e-mail to Kevin; e-mails from Kevin and staff re: Heinen contracts. 0.40 54.00 - AMOUNT DUE 3.20 432.00 TOTAL CURRENT WORK 432.00 TOTAL AMOUNT DUE $432.00 . Amounts due over 30 days will be subject to a finance charge of .5% per month (or an annual rate of 6%). Minimum charge - 50 cents. CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax 1.0. #41-1562130 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 r')~v)~ \\J \) City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 SUMMARY STATEMENT 1\31. . Page: 1 June 30, 2006 Account # 1852G lbtD,~L('03 45q ICO 10/0 do~O~ [ (p 1 3,03 IOi t ,04-03 Z Ua,OO Jt3D 11o~'D.3 2.0q).....;D I oSD \~~03 q.4 I 50 10/0.(J1u5 G?i<O'SO ~\~ f\\ ~\ PREVIOUS BALANCE FEES EXPENSES CREDITS PAYMENTS BALANCE 1852-000 RE: GENERAl.- LEGAL SERVICES (RETAINER) SERVICES RENDERED TO DATE: 6,109.63 4,909.50 274.03 0.00 1852-001 RE: GENERAL LEGAL SERVICES (NON-RETAINER) SERVICES RENDERED TO DATE: 328.00 148.50 0.00 0.00 1852-002 RE: PASS THROUGH LEGAL SERVICES SERVICES RENDERED TO DATE: 2,792.50 1,305.00 0.00 0.00 1852-003 RE: FORFEITURES (NON-RETAINER) SERVICES RENDERED TO DATE: 472.63 406.00 0.00 0.00 1852-013 RE: EDA GENERAL MA TIERS (NON-RETAINER) SERVICES RENDERED TO DATE: 1,081.50 162.00 0.00 0.00 1852-018 RE: WAUSAU POND EXPANSION SERVICES RENDERED TO DATE: 189.00 0.00 0.00 0.00 1852-019 RE: ASH STREET POND PROJECT SERVICES RENDERED TO DATE: 81.00 0.00 0.00 0.00 -5,983.63 SI<63,5~ $&;-309.53- (010 ,td-iD3. -328.00 $148.50 L/i.vOb, 04'03 - logD, CiD i-fQc6' 01-/03- 1\ ?-,SD L{ q (0, ~(.i 0_:' ~ II 2 · <;t) -2,792.50 $1,305.00 -472.63 'Z.l (j::) . <C,L.( 0 3 $406.00 -1,081.50 zr::;ee. I.t~03, $162.00 -189.00 $0.00 -81.00 $0.00 . CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax 1.0. #41-1562130 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 Page: 1 June 30, 2006 Account # 1852-013G 69 RE: EDA GEt'JERAL MATTERS (NON-RETAINER) SERVICES RENDERED TO DATE: HOURS 06/26/2006 AMP E-mail from Tina; review agenda. 0.30 40.50 06/29/2006 AMP ... . Telephone call to Tina; review tax-exempt status; draft memo; e-mail to Tina information re: leased property. AMOUNT DUE 0.90 1.20 121.50 162.00 TOTAL CURRENT WORK 162.00 PREVIOUS BALANCE $1,081.50 -1,081.50 06/26/2006 Payment - thank you TOTAL AMOUNT DUE $162.00 . Amounts due over 30 days will be subject to a finance charge of .5% per month (or an annual rate of 6%). Minimum charge - 50 cents. ?l Xcel Energy'. ---- Please Return This Portion With Your PaymentT 0: Northern States Power Company !);fX"~t:~!MiM)::tt@i!!t:::m: :::::::li,i:Ji:!!~~t~mfI:: :;:m:I!1ffll~9.f!,~l.t#:w#:::I::r: ::::::!I::::::~m9ij,~::mf:miij~:::::t::::: 51 -4874009-4 07/3112006 $16.29 Auto Pay Do Not . Tha nk You ! Return . P.O. BOX 9477 MPLS, MN 55484-9477 AT 01 048117 611038177 A**3DGT 1.1.1..1.1.11.....1.1.1..1'1111..11.1...1.'..'..'.1.1.1...1.11 FARMINGTON CITY OF ATTN: ACCTS PAYABLE 325 OAK ST FARMINGTON, MN 55024-1374 51073106rl48740094rl0000000162900000001629 Detach and Retain This Portion For Your Records - - ,- - - - - Previous Balance Total Amount of Payments Balance Forward +Current Charges Current Balance - - - - $17 .67 $17.67 CR $0.00 $16.29 $16.29 - - - - - = . 'P~emj~~ ide~tifier ~42ELM ST " , "~01 ~PRUCE ST Premise Descriptor SIGN fooo. <ct.f.2;L 09:J..fp4.::1;l ,,-'.t. ,~,;". .. $16.29 AP AUTHORIZATION --~)}~ 1ZJ&c, IGNATU DA: ~ '~~~- '~,$ '~ -- $,. '- -rYIOD~/~t-O(p 1l Xcel Energy' Statement Date: 07103/06 :::!i!~I'lil!~!I~::i:i.'!::!::!I~!II!~II::::::::::t::::::: 07/31/2006 $16.29 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. Statement # 74565192 FARMINGTON CITY OF ATTN: ACCTS PAYABLE 325 OAK 8T FARMINGTON, MN 55024-1374 See back of bill for more information. Page 1 of3 Account #: 51-4874009-4 . , CHECK REQUEST DATE REQUESTED: "f jy;a,DATENEEDED: 1f94f r ,/, {, h I ---7'" //1' PAYABLE TO: l)::cf{o-tzl LA:..U,'V\- '-t'vf (re t:(..~..(4-e-r- /4(c-c/: fer 9 () c/J" '.v01 .55. /j 55633 . ADDRESS: REQUESTED BY: ~.. ,/ AMOUNT: (y. & s , ~ -fo( J ~ ~'VI/\ ~ /-( of (VU--J ---r ljM \ P .__... ."~ "'. .. \ ACCOUNT NO.: DESCRIPTION: AUTHORIZED BY: ,/ i (/' /// PLEASE FILL OUT FORM IN ITS ENTIRETY. ANY FORM RECEIVED BY THE ACCOUNTS PAYABLE DEPARTMENT NOT FILLED OUT CORRECTL YIENTIREL y. WILL BE RETURNED. . CHECK REQUEST DATEREQUESTED: ?//I/obDATENEEDED: @1r PAYABLE TO: / ;' (.:~y J ~ ADDRESS: 5S '033-Z3'72 . ACCOUNT NO.: /'/ (:) / . i ~/,.7 \ AMOUNT: $;t/?, {;0 DESCRIPTION: fi [ ''dJ4 (u{ J":L-k.~ -W cL d -h-_ ~ ~ of' fY{ /J -'7 zM- REQUESTED BY: /~~?J .. ~.. {: / . ; i j, ,,\. ,./ AUTHORIZED BY: ,.-.. l' i PLEASE FILL OUT FORM IN ITS ENTIRETY. ANY FORM RECEIVED BY TIlE ACCOUNTS PAYABLE DEPARTMENT NOT FILLED OUT CORRECTL YIENTIREL y. WILL BE RETURNED. . . . MINUTES ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING JUNE 26, 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 Hardt, second by Flaherty, to approve the agenda. APIF, MOTION CARRIED. 3. Consent Agenda MOTION by Hardt) second by Starkman, to approve the Consent agenda as follows: a. Bills b. May 22, 2006 Minutes APIF, MOTION CARRIED. 4. Public Hearings None 5. Unfinished Business a. Downtown Area - McVicker Lot Mr. Joe Heinen has signed the 60-day Letter of Understanding. This will end at midnight on the night of the July EDA meeting, July 24,2006. Staff presented a Contract for Private Development between the EDA and Mr. Heinen. Staffwill bring this to the EDA at the July meeting. Community Development Director Carroll reviewed the highlights of the document. The RFP stated the EDA proposed to sell the property for $30,000, but they would allow that $30,000 to be a one-time cost. This amount includes the assessment against the property. The total amount of the assessment is $14,532.73. Mr. Heinen could pay the assessment off at the closing in which case he would have to pay the EDA the difference of$15,467.27 or he could have it assessed against the property in which case he would still have to pay the difference. Staffwas hoping to close by August 1, 2006. The deadline for construction plans to be submitted is September 29, 2006. Construction could begin by October 31, 2006. Staff was checking to see ifHPC approval is needed for the exterior design of the building as it is within site of buildings designated as heritage landmarks. The HPC will discuss this on June 27, 2006. Mr. Heinen showed drawings of his proposed building design. The EDA was very pleased with the proposed design. EDA Minutes June 26, 2006 Page 2 f. Downtown Area - Vacant Lot at 4th Street and Main Street Staff received information from Dakota County regarding how much money they wanted upon the sale ofthe lot. Mr. Heinen had sent staff an updated list of expenses for this lot. Some were higher than anticipated. It has been suggested that soil may need to be removed from the property. Staffwill clarify the issue with the MPCA. Staff had asked the state to not send the EDA the deed to the property. The liability assurance letters have been received from the MPCA and the issue has been clarified with the County, so staff has now requested the deed to the property. The state will send it to the County for recording. Once recorded, the EDA will have the closing with Mr. Heinen. 6. New Business a. Downtown Area - Heinen Redevelopment Area (Elm Street) Mr. Joe Heinen plans on redeveloping the south half of the block located north of Elm Street between 3rd Street and 4th Street. Mr. Heinen showed a conceptual drawing of his plans for this area. The EDA preferred the two-story option. The store fronts are staggered to allow for a patio. The front ofLynn's Carpet will be brought up flush to the 305 Elm Street structure. They would like to start the project this summer. Member Hardt stated the EDA is dealing with an identity for the downtown area. He asked Mr. Heinen what he saw as an identity. Mr. Heinen saw a community centered on a historic downtown area. Member Hardt stated the EDA is having to start to deal with the bigger picture and the role of the downtown area in relation to other commercial development happening in the City. He saw this as a potential area to give us a brand for the downtown area. 5. Unfinished Business c. Downtown Area - Exchange Bank Building and Larson Building Staffhas received the original Amendment to Contract for Private Sale. The building permit application for the fire escape and the remodeling of the staircase to Oak Street has been received. Construction was to begin by June 14,2006 or within 14 days of final approval of the construction plans. The construction plans have been reviewed but have not been formally approved. The Building Official has approved the plans, but a Certificate of Appropriateness needs to be issued by the Heritage Preservation Commission. The HPC Consultant has reviewed the plans, and will give his approval. The MN Historical Society believes they have the right to render judgment on the interior and the exterior of the building. Mr. Robert Vogel, HPC Consultant, believes having the building on the National Register of Historic Places is limited to the exterior ofthe building. If the HPC agrees with the exterior renovations, they do not need to render an opinion with regard to the interior. The HPC meets tomorrow, and the issue should be resolved by then. If the HPC issues a Certificate of Appropriateness then the Building Official will issue the permit and Mr. Brown will have two weeks to begin construction. Regarding the sprinkler system, staffhas received a set of sprinkler . . . . EDA Minutes June 26, 2006 Page 3 system plans. A building permit application has been submitted and the fees have been paid. Electrical system plans are due by July 14, 2006. Mr. Brown stated they are on schedule. They have hired the professionals and will let them do their work. CNH Architects has dealt with the HPC and Historical Society in the past and they do not foresee any problems. Mr. Brown suggested when doing branding, that the EDA keep in mind this is a historic community shopping area. b. Industrial Park - R&L Trucking R&L will be reducing the size of the truck terminal for budgetary reasons and there will be some downsizing of the maintenance building, the office space, and the number of parking stalls. Future parking expansion areas will be identified. Staff should complete review of the revised plans during July so construction can begin in July or August. . . d. Downtown Area - Riste Building Staffhas initiated discussions with Xcel regarding the acquisition of their building. Staff was informed the request has been routed to the appropriate staff. Staffwill assist Xcel with fmding an alternate location. They need 10% office and 90% bay for a truck. They have not said how much square footage. They want one vehicle bay with a minimum height of 14-15 ft. They want a site separate from the substation. One employee would be located out of the site so 1- 2 parking spaces would be adequate. Staffwill continue to work with Xcel on this situation. If the EDA members hear of someone looking for a tenant, they should let staffknow. e. Industrial Park - JlT Powdercoating Work is continuing on the expansion of the building. g. Downtown Area - 305 3rd Street - Former Liquor Store Building Staffwill be stepping up the marketing of this building. A display ad or a classified ad will be placed in the newspaper. Staff provided costs for these two options. Staff suggested a display ad with a photo of the building. Chair Arey felt the EDA needed to decide how soon they wanted the building leased. Councilmember Fogarty asked about a property management company. Members felt they have not had too much luck with these in the past. Member Starkman asked about the costs of utility bills each month, which is minimal. He asked if people are giving reasons as to why people are not interested in the building. If it will cost a lot to fix up the property Member Starkman asked if the board would want to consider selling it as is. Member Collignon noted the rates that Mr. Brown is trying to rent the Exchange Bank building for are unreasonable. With the liquor store building there are concerns with the costs of renovating the interior. One option is for the EDA to incur the expense of renovating the interior and charge it back in the lease rate. The businesses he has talked to are unable to obtain financing for renovating the interior, but they would be able to pay a higher EDA Minutes June 26, 2006 Page 4 lease rate. Councilmember McKnight cautioned that in the future they could demolish the building and redevelop the whole comer. Member Collignon stated they could entertain a lease rate for not more than three years, The tenant would indicate what they would need to make the space feasible for their business, the business would obtain estimates, and the EDA would determine what direction to go at that point. It was decided to have a sign saying for rent and a sign saying build-to-suit. Staff asked for parameters such as a cost not to exceed a certain amount. Staff could contact a couple general contractors to look at the interior to see what needs to be done. Ifwhat is wanted is left open, the EDA might obtain ideas as to what could be done. Member Collignon suggested contacting the Farmington Historical Society to use the space to display Farmington as a historical place and it could include a visitor's center. It was decided to take the next 30 days to talk to general contractors regarding painting, new carpet and general repair work. At the same time talk to the Historical Society to determine if they would be interested in the building. Member Hardt noted there is also the Dakota Valley Arts Council and perhaps they could share the space. He suggested that in the future the EDA consider reserving space in a building for historical information. Staffwill contact the Historical Society and the DV AC to determine their level of interest of having a space. Staffwill also contact two or three general contractors and tell them what they have in mind and ask for quotes as to what they would propose. They will be told there is a chance the EDA may be looking for someone to do the work or a future tenant may be looking for recommendations. It was decided to wait with the ad. h. Economic Development Summit; Economic Development Plan Staff provided some information on what they are currently working on and the eventual creation of an economic development plan. The direction staffhas received is that they can continue to work on gathering information. Member Hardt felt there is a need to have clearer ideas of goals and objectives for the summit. Member Hardt noted Northfield has published their economic development plan on their website. It is very impressive. He will provide the website address to staff. Staff noted the assessment portion is on the web site. Community Development Director Carroll stated when they saw the quality of the assessment portion staff contacted Northfield and was told it cost $80,000. Member Hardt saw a couple articles in the Independent regarding a statue of a trout. The positive thing is that people are thinking about this. The trout could be a brand, that one of the key features of this area is the Vermillion River. We need to continue to get that kind of creativity flowing. . . . . . . EDA Minutes June 26, 2006 Page 5 6. New Business b. Downtown Area - Rambling River Days Staff has not heard of any difficulties with EDA properties during this event. c. Tour of "The Grand" in Northfield They are interested in talking with the EDA as to what they have done. There was a group of interested business people in the City that took on the project of renovating this building. The owner or manager would be available to give the EDA a tour. It was determined to wait until a Wednesday in August to take a tour. Staffwill contact The Grand to determine a date they would be available. 7. Executive Director's Report Member Hardt spoke with City Administrator Herlofsky who has a planning and economic development background. Member Hardt realized there was a concern about slowing down the economic development process, but feel it is a situation where we will go slow to go fast. City Administrator Herlofsky is very good about seeing that a very strong foundation is laid for this whole process. His perspective is that we will build this plan to last and that is a positive thing. Member Hardt congratulated the City Council on making a very good hiring decision. He was very impressed with City Administrator Herlofsky. Member Starman would like to see City Administrator Herlofsky attend an EDA meeting. 8. Adjourn MOTION by Starkman, second by Hardt to adjourn at 8:57 p.m. APIF, MOTION CARRIED. Respectfully submitted, ~ J'V7~ Cynthia Muller Executive Assistant . . . CONTRACT FOR PRIVATE DEVELOPMENT Between THE ECONOMIC DEVELOPMENT AUTHORITY OF FARMINGTON, MINNESOTA And JOSEPH M. HEINEN At Regarding Property located in Dakota County, Minnesota Street Address: 201 4th Street, Farmington, MN PID 14-77000-061-27 This Instrument Drafted by: Economic Development Authority of Farmington 325 Oak Street Farmington, MN 55024 651-463-7111 122258v.9 1 CONTRACT FOR PRIVATE DEVELOPMENT . THIS AGREEMENT, effective the _day of , 2006 by and between the Economic Development Authority of Farmington, a body corporate and politic under the laws of the State of Minnesota, having its principal office at 325 Oak Street, Farmington, Minnesota 55024 ("EDA"), and JOSEPH M. HEINEN, a single individual, residing at 1200 Willowbrook Drive, Wayzata, Minnesota 55391 ("Developer"). WITNESSETH WHEREAS, the City of Farmington ("City") has granted authority for the creation and management of an Economic Development Authority (the "EDA"); and WHEREAS, the Developer has proposed a development that meets the EDA guidelines and will promote and carry out the objectives for which the EDA has been created, that will be in the vital best interests of the City and the health, safety and welfare of its residents and is in accord with the public purposes and provisions of the applicable state and local laws and requirements under which development through the EDA has been undertaken and may be being assisted; WHEREAS, Developer proposes that the EDA approve the sale of the real property hereinafter described to Developer for less than its fair market value, in light of the costs that have been and will be incurred by the Developer in connection with environmental issues . associated with the property; NOW, THEREFORE, in consideration of the mutual covenants and obligation of the EDA and the Developer, each party does hereby represent, covenant and agree with the other as follows: ARTICLE I. DEFINITIONS. EXHIBITS. RULES OF INTERPRETATION Section 1.1. Definitions. In this Agreement, the following terms have the meaning given below unless the context clearly requires otherwise: (a) City. The City of Farmington, Minnesota. (b) Developer. Joseph M. Heinen. (c) Development. The Property and the Improvements to be located thereon according to the terms of this Agreement. (d) EDA. The Economic Development Authority of Farmington, Minnesota. . 122258v.9 2 . . . (e) Homeowner. A purchaser for value of the Property but not including any individual, corporation or entity related to the Developer. (1) Economic Development Authorities Act (EDA Act). Minnesota Statutes Sections 469.090 through 469.108. (g) Improvements. The movement of a single family home from 315 Elm Street, Farmington, Minnnesota 55024 to the Property and construction of any site improvements on the Property by the Developer required for the installation of the home. (h) Property. The real property located in Dakota County, Minnesota, and legally described as in the attached Exhibit "A". (i) Unavoidable Delays. Delays which are the direct result of strikes, labor troubles, fire or other casualty to the Improvements, litigation commenced by third parties which results in delays or acts of any federal, state or local government, except those contemplated by this Agreement, which are beyond the control ofthe Developer. Section 1.2. Exhibits. The following Exhibits are attached to and by reference made a part ofthis Agreement: A. B. C. Legal Description of Property Form of Certificate of Completion Form of Quit Claim Deed Section 1.3. Rules of Interpretation. (a) This Agreement shall be interpreted in accordance with and governed by the laws ofthe State of Minnesota. (b) The words "herein" and "hereof' and words of similar import, without reference to any particular section or subdivision refer to this Agreement as a whole rather than any particular section or subdivision hereof. (c) References herein to any particular section or subdivision hereof are to the section or subdivision ofthis Agreement as originally executed. (d) Any titles of the several parts, articles and sections ofthis Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of its provisions. 122258v.9 3 ARTICLE II. . REPRESENTATIONS AND UNDERTAKINGS Section 2.1. By the Developer. The Developer makes the following representations and undertakings: (a) The Developer has the legal authority and power to enter into this Agreement and has duly authorized the execution, delivery and performance of this Agreement; (b) The Developer has the necessary equity capital or will obtain commitments for financing necessary for undertaking the Improvements; (c) The Developer will install the Improvements in accordance with the terms of this Agreement, and all local, state and federallaws and regulations; (d) The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws and regulations which must be obtained or met before the Improvements may be installed; and Section 2.2. Bv the EDA. The EDA makes the following representations as the basis for the undertaking on its part herein contained: (a) The EDA is authorized by law to enter into this Agreement and to carry out its obligations hereunder; and . (b) The EDA will, in a timely manner, subject to all notification requirements, review and act upon all submittals and applications of the Developer and will cooperate with the efforts of Developer to secure the granting of any permit, license, or other approval required to allow the installation of the Improvements; provided, however, that nothing contained in this Section 2.2(b) shall be construed to limit in any way the reasonable and legitimate exercise of the EDA discretion considering any submittal or application. ARTICLE III. ACQUISITION OF PROPERTY; CONVEYANCE TO DEVELOPER Section 3.1. Sale of Property to Developer. The EDA agrees to sell the Property to the Developer and the Developer agrees to purchase the Property from the EDA in "as-is" condition. The EDA agrees to convey the Property to the Developer by Quit Claim Deed in the general form of Exhibit C. The EDA's deed to the Developer will be subject to the Right of Reverter required in Section 8.3 of this Agreement. The purchase price for the Property will be the greater of the following amounts: . 122258v.9 4 . . . (a) If Dakota County agrees that the market value or sale price of the Property can be reduced to reflect the costs that have been and will be incurred by the Developer in addressing environmental contamination problems associated with the Property, and if Dakota County concludes that said costs exceed the market value of the Property, then the purchase price of the Property will be $1.00. (b) In all other circumstances, the purchase price of the Property will be the minimum net proceeds that Dakota County will require the EDA to return to Dakota County following the sale of the Property to the Developer. Section 3.2. Title and Examination. Developer, at its own expense, may obtain a current commitment for the issuance of a 1987/1990 ALTA Form B owner's policy of title insurance (the "Commitment") issued by Title Company acceptable to Developer ("Title") in the amount of the fair market value of the Property, committing to insure that Developer will have good and marketable title to the Property, free of any and all standard and other exceptions to title, except matters to which Developer may consent in writing. Section 3.3. Closine:. Closing on the Property will take place on or before September 29, 2006 or such other date as may be agreed to by the parties in writing ("Closing Date"). At closing, the Developer will pay the cash purchase price and will provide the EDA with a Letter of Credit in the amount of $10,000.00, as detailed in Section 4.5 of this Agreement. At closing the EDA shall pay (a) the amount of any deed tax due upon the recording or filing of the deed to be delivered by the EDA to the Developer, and (b) the amount of any recording fees for the deed and this Agreement. Except as stated herein, at closing, the Developer shall pay all closing costs. Section 3.4. Taxes and Special Assessment. Real estate taxes will be prorated between the EDA and the Developer as of the date of closing. Developer will pay any levied and/or pending special assessments at the time of closing. Section 3.5. Soil Conditions and Hazardous Wastes. The Developer acknowledges that hazardous wastes, including non-petroleum contamination, have been found through environmental testing of the Property. The Developer acknowledges that the EDA makes no representations or warranties as to the conditions of the soils on the Property, its fitness for installation of the Improvements or any other purpose for which the Developer may make use of the Property, or regarding the presence of hazardous wastes on the site. The EDA will allow reasonable access to the property for the Developer to conduct such tests regarding soils conditions and hazardous wastes as the Developer may desire. Permission to enter the Property to conduct such tests must be given in writing under the terms and conditions established by the EDA. Section 3.6. Contingencies. The obligations ofthe EDA under this Agreement are contingent upon each ofthe following occurring prior to the Closing Date: a) The EDA obtaining a deed to the Property from the State; 122258v.9 5 b) The State and/or County approving the Purchase Price for the Property under the terms ofthis Agreement with any reductions; c) Issuance of all necessary letters of assurance deemed necessary by the EDA, limiting the EDA's liability for environmental contamination of the Property. If any of the contingencies have not been satisfied on or before the Closing or the dates listed above, the EDA may terminate this Agreement by giving written notice to the Developer on or before the Closing Date or the EDA may extend the period of time for the satisfaction of the contingencies set forth above for any additional period of ninety (90) days by giving written notice to the Developer prior to the Closing Date. If the EDA terminates this Agreement, except as otherwise provided herein, neither party shall have any further rights or obligations under this Agreement and the Developer shall execute and deliver to the EDA a Quit Claim, which Quit Claim Deed shall memorialize the termination of this Agreement. _______ Section 3.7. Release and Indemnification. a) Definitions. "Environmental Laws" shall mean all federal and state laws and regulations (as may be amended from time to time) relating to hazardous waste, hazardous substances, pollutants, contaminants, asbestos and petroleum products as those terms are defined in the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 V.S.C. ~ 9601(14)) and as defined in Minnesota Statutes Chapters 115B and 115C. "Hazardous Substances" shall rtI~e '\ ~a'Zardous substance, hazardous waste, pollutant or contaminant as those terms are de~~ ',. i. nnesota Statutes ChaEter 1~ Of_as defin..~d i, ( 42 V.S.C ~ 9601(14). ( If'"' ~ ~ .--- \ (}\/'-') ~ 5ka LP""'. . -k ~... -....ev......slt/ \ C \ ~ 0-. ~ ~,v-f.;J""~ . Lit". b) Indemnities. Developer agrees to unconditionally and absolutely indemnify and hold the EDA and City of FarmingtQn, its officers, employees, contractors and assigns, harmless from and against any loss, cost, liabi1ity~ damage, claim, or expense, including reasonable attorneys' fees, suffered or incurred by Developer in connection with the Subject Property at any time, under or on account of, or as a result of, (a) any Environmental Laws (whether now existing or hereafter enacted or promulgated, as they may be an1end~d from time to time), (b) any presence, release, or threat of release of Hazardous Substances:-(c") the presence of asbestos or asbestos-containing materials, PCB's, radon gas, or urea formaldehyde foam insulation at the Subject Property, (d) clean-up costs, (e) liability for personal injury or property damage or damage to the environment, (f) any diminution in the value of the Subject Property, and (g) fines, penalties and punitive damages. It is understood that the presence and/or release of..Hazardous Substances referred to in this Section 3.7 pertains to a presence and/or release beginning or first eXIstmgprior to conveyance of the Subject Property to Developer, whether or not the discovery of said presence and/or release occurs before or after such conveyance,. ~ .~ o'.\:\l.. V l..$ ,;' Q)'V~x~ ~\ ~ \Q~ <t-J~- 122258v.9 6 . . . . . . \~V~~.~~~ ~ ' ~ \l\Je..d~\ pM~DA~ ~2 "D +0 c I.t \J cl ^J./~'Yl ()\t~ 4Q, ~ ~ 1-. y\ Jf:11 (lA t -t..L ~ ~~~\)i'V>(lncJvdln5 ~~t?JS Developer further iees that the EDA or the City of Farmington shall not assume or have any liability or obligation fi r loss, damage, fines, penalties, claims, or duty to cleanup or dispose of Hazardous Substance~e' ating to the Subject Property, as a result of any conveyance of title to the Subject Property to the EDA or otherwise or as a result of any inspections or any other actions made or taken by the EDA on the Subject Property. Developer agrees to remain fully liable and shall indemnify and hold harmless the EDA and the City of Farmington from any costs, expenses, clean-up costs, waste disposal costs, litigation costs, fines and penalties, including without limitation any costs, expenses, penalties and fines within the meaning of any Environmental Laws. Developer shall assume the burden and expense of defending, with counsel reasonably satisfactory to the EDA, against all legal and administrative proceedings arising out of the occurrences set forth in this Agreement Developer shall pay when due any judgments against the EDA andlor the City Farmington which have been indemnified under this Indemnification Agreement and which are rendered by a final order or decree of a court of competent jurisdiction from which no further appeal may be taken or has been taken within the applicable appeal period. In the event that such payment is not made, the EDA, in its sole discretion, may pay any such judgments, in whole or in part, and look to Developer for reimbursement pursuant to this Agreement, or may proceed to file suit against Developer to compel such payment. c) Waiver of Right to Trial bv Jury. Developer waives any right it may have to trial by jury in any action to enforce or otherwise relating to this Agreement. d) Duration. This Agreement shall survive a foreclosure or the taking of a deed in lieu of foreclosure, the discharge of Developer's obligations under this Agreement, or any transfer of the Subject Property. e) Notice by Indemnitor. Developer shall, promptly after obtaining knowledge thereof, advise EDA in writing of (a) any governmental or regulatory actions instituted or threatened in writing under any Environmental Law affecting the Subject Property or the matters indemnified hereunder, including without limitation any notice of inspection, abatement, or non- compliance; (b) all claims made or threatened in writing by any third party against the EDA, Developer or the Subject Property relating to damage, contribution, cost recovery, compensation, loss, or injury resulting from the presence, release, threat or release, or discharge on or from the Subject Property of any hazardous materials; and (c) Developer's discovery of the presence of Hazardous Substances on the Subject Property or on any real property adjoining or in the vicinity of the Subject Property, or of any occurrence or condition on any such property which could subject Indemnitor or the Subject Property to a claim under any Environmental Law or to any restriction on ownership, occupancy, transferability, or use of the Subject Property under any Environmental Law. f) Payment of ED A's Expenses. Ifthe EDA retains counsel for advice or other representation (a) in any litigation, contest, dispute, suit, or proceeding relating to any ofthe occurrences for which indemnification is given in this Agreement or otherwise relating in any way to this Agreement and the indemnities described herein, or (b) to enforce the obligations 122258v.9 7 hereunder, the attorneys' fees arising from such services and all related expenses and court costs shall be paid by Developer upon demand of the EDA. . g) No Waiver. Developer's obligations hereunder shall in no way be impaired, reduced, or released by reason of (a) EDA's omission or delay to exercise any right described herein, or (b) any act or omission of the EDA in connection with any notice, demand, warning, or claims regarding violations of codes, laws, or ordinances governing the Subject Property. ARTICLE IV. SITE IMPROVEMENTS Section 4.1. Improvements. The Developer shall move the single family home currently located at 315 Elm Street, Farmington, Minnesota 55024 ("315 Elm Home") to the Property and construct any necessary improvements for installation of the home on the Property (including the completion of any required sodding, seeding or landscaping) and shall maintain, preserve and keep the Improvements in good repair and condition until sale of the Property to the Homeowner. Section 4.2. Buildin2 Plans. No permit to move the single family home or building permit will be issued by the City unless the plans for movement of the home and for improvements to the Property comply with all local, state and federal regulations. The City and . EDA shall, within 25 days of receipt of plans submitted in application for a permit to move the home or a building permit, review such Plans to determine whether the foregoing requirements have been met. If the City or EDA determines such plans to be deficient, it shall notify the Developer in writing stating the deficiencies. Section 4.3. Schedule. Subject to Unavoidable Delays, the Improvements shall be completed prior to April 30, 2007. All construction shall be in conformity with any City/EDA approved plans. If at any time prior to completion of installation the EDA has cause to believe that the Developer will be unable to complete installation of the Improvements in the time permitted by this Section 4.3, it may notify the Developer and demand assurances from the Developer regarding the Developer's construction schedule. If such assurances are not forthcoming or are deemed by the EDA at its sole discretion to be inadequate, the EDA may declare an Event of Default and may avail itself of any of the remedies specific in Section 8.2 of this Agreement. Section 4.4. Certificate of Completion. Promptly after notification by the Developer of completion of installation of the Improvements, the City and EDA shall inspect the installation to determine whether the Improvements have been completed in accordance with the plans, local state and federal laws and the terms of this Agreement, including the date of the completion thereof. In the event that the City and EDA are satisfied with the Improvements, the City shall furnish the Developer with a Certificate of Completion in the form attached hereto as Exhibit B. . Such certification by the City shall be a conclusive determination of satisfaction and termination 122258v.9 8 . . . of the agreements and covenants in this Agreement with respect to the obligation of the Developer to install the Improvements. The certification provided for in this Section 4.4 shall be in recordable form. If the City shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the City or EDA shall within 15 days of such notification provide the Developer with a written statement, indicating in adequate detail in what respects the Developer has failed to complete the Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the City or EDA, for the Developer to take or perform in order to obtain such certification. Before the issuance of a Certificate of Completion, conditional or limited occupancy of the Improvements may be permitted under such terms as may be specified by the City. Section 4.5. Failure to Construct. In the event that the Improvements are not completed as provided in Section 4.3 of this Agreement or in the event of any damage to City of Farmington Property during the relocation of the home contemplated under this Agreement, the Developer shall be liable to the EDA for the amount of the City or EDA's expenses as liquidated damages and/or damages. As security for the purchase price of the Property and the obligations created in this Section 4.5, the Developer shall deliver to the EDA at closing, an irrevocable Letter of Credit or other security satisfactory to the EDA in the amount of $10,000.00. The security shall be retained by the EDA until the Certificate of Completion has been issued. Upon issuance by the EDA of the Certificate of Completion, the security will be returned to the Developer and all liability under this Section 4.5 shall terminate; provided, however that the EDA may choose to retain such portion of the security or be provided new security as it deems necessary in order to ensure completion of landscaping or other aspects of the Improvements which may have been delayed due to weather or seasonal conditions. If at any time prior to the issuance of the Certificate of Completion, the EDA determines that, for whatever reason the amount of security is inadequate, the EDA shall notify the Developer of such determination, and the Developer shall have 30 days from the date of notification to furnish new security in the original amount less any drafts previously made against it. The provisions of this Section 4.5 shall not be construed to prejudice or limit any additional rights ofthe EDA under Article vm of this Agreement. ARTICLE V. INSURANCE Section 5.1. Insurance. The Developer will provide and maintain or cause to be provided and maintained at all times during the installation of the Improvements and, from time to time at the request of the EDA, furnish the EDA with proof of payment of premiums on: (a) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner's Contractor's Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used); and 122258v.9 9 (b) Workers' compensation insurance, with statutory coverage. . The policies of insurance required pursuant to clauses (a) and (b) above shall be in form and content satisfactory to the EDA and shall be placed with financially sound and reputable insurers licensed to transact business in Minnesota. The policy of insurance delivered pursuant to clause (a) above shall contain an agreement of the insurer to give not less than thirty (30) days advance notice to the EDA in the event of cancellation of such policy or change affecting the coverage thereunder. Section 5.2. Modification. In order to facilitate obtaining financing for the installation of the Improvements, the EDA agrees to modify this Article V to accommodate the interests of the Developer and the Holder of the first Mortgage; provided, however, that the EDA determines, in its reasonable judgment, that any such modification will adequately protect the legitimate interests and security ofthe City and EDA with respect to the Improvements. ARTICLE VI. FINANCING Section 6.1. Financine:. Within 15 days of the date of execution of this Agreement, the Developer shall submit to the EDA evidence of financing for the installation of the Improvements in compliance with the provisions of Section 2.1 (b) of this Agreement. If the . EDA finds that the financing is adequate in amount to provide for the installation of the Improvements, the EDA shall notify the Developer of its approval. If the EDA rejects the evidence of financing as inadequate, the Developer shall have 30 days or such additional period of time as the Developer may reasonably require from the date of such notification to submit evidence of financing and construction loan administration satisfactory to the EDA. If the Developer fails to submit such evidence or fails to use due diligence in pursuing financing, the EDA may terminate this Agreement and both parties shall be released from any further obligation or liability hereunder, except for the City and EDA's remedies pursuant to Section 4.5 ofthis Agreement. Section 6.2. Limitation upon Encumbrance of Property. Prior to the issuance of the Certificate of Completion, neither the Developer nor any successor in interest to the Property or any part thereof shall engage in any financing or any other transaction creating any Mortgage or other encumbrance or lien upon the Property, whether by express agreement or operation of law, or suffer any encumbrance of lien to be made on or attached to the Property other than the liens or encumbrances attached for the purposes of obtaining funds to the extent necessary for making the Improvements without the prior written approval of the EDA. The EDA shall not approve any Mortgage that does not contain terms that conform to the terms ofthis Article VI and Section 8.2 of this Agreement. . 1222S8v.9 10 . . . Section 6.3. Copv of Notice of Default to Lender. Whenever the EDA shall deliver any notice or demand to the Developer with respect to any Event of Default by the Developer in its obligations or covenants under this Agreement, the EDA shall at the same time forward a copy of such notice or demand to each Holder of any Mortgage authorized by the Agreement at the last address of such Holder shown in the records of the EDA. Section 6.4. Lender's Option to Cure Defaults. After notification of any Event of Default referred to in Section 8.1 of this Agreement, each such Holder, insofar as the rights of the EDA are concerned, shall have the right, at its option, to cure or remedy such Event of Default, or such Event of Default to the extent that it relates to the part of the Property covered by its Mortgage, and to add the cost thereof to the Mortgage debt and the lien of its Mortgage; provided that if the Event of Default is in respect to construction of the Improvements, nothing contained in this Section 6.4 or any other section of this Agreement shall be deemed to permit or authorize such Holder, either before or after foreclosure or action in lieu thereof, to undertake or continue the installation of the Improvements or completion of the Development beyond the extent necessary to conserve or protect the Improvements or construction already made without first having expressly assumed the obligation to the EDA, by written agreement, to complete, in the manner provided in this Agreement, the Development or the part thereof to which the lien or title of such Holder relates. Any such Holder who shall promptly complete the Development or applicable part thereof shall be entitled, upon written request made to the EDA, to certification by the EDA to such effect in the manner provided in Section 4.4 of this Agreement, and any such certificate shall, if so requested by such Holder, mean and provide that any remedies or rights that the EDA shall have or be entitled to because of failure of the Developer or any successor in interest to the Property, or any part thereof, to cure or remedy any Event of Default with respect to the construction of the Improvements on other parts or parcels of the Property, or because of any other default in or breach of the Agreement by the Developer or such successor, shall not apply to the Property to which such certification relates. Section 6.5. EDA's Option to Cure Default. In the event the Holder of financing authorized pursuant to this Article VI sends a notice of an Event of Default to the Developer, the Holder shall also use its best efforts to notify the EDA in writing of: (a) the fact of the default; (b) the elements of the default; and (c) the actions required to cure the default. If the Developer fails to cure the Event of Default in a timely manner, the EDA shall have 30 days from the expiration of such cure period to cure the default. If the EDA cures the default as set forth above, the Holder shall pursue none of its remedies under the financing based upon the said default of the Developer. In the event of a transfer of the title to the Property to a third party approved by the EDA and Holder, which approval cannot be unreasonably withheld, regardless of whether required to cure an Event of Default under the financing unless the security of the Holder has, in fact, been impaired by said transfer. In the event of such approved transfer, which does not impair the security of the Holder, the Holder shall permit the transferee to assume all outstanding obligations and receive all remaining disbursements under the financing. 122258v.9 11 Section 6.6. Subordination. In order to facilitate obtaining financing for the . construction of the Improvements by the Developer, the EDA shall agree to modify this Agreement in the manner and to the extent it deems reasonable, upon request by the financial institution and the Developer. ARTICLE VII. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 7.1. Representation as to Redevelopment. The Developer represents and agrees that its undertakings pursuant to the Agreement are for the purpose of development of the Property and not for speculation in land holding. The Developer further recognizes that, in view of the importance of the Development to the general welfare of Farmington and the substantial financing and other public aids that have been made available by the EDA and City for the purpose of making the Development possible, the qualification and identity of the Developer are of particular concern to the EDA. The Developer further recognizes that it is because of such qualifications and identity that the EDA is entering into this Agreement, and, in so doing, is further willing to rely on the representations and undertakings of the Developer for the faithful performance of all undertakings and covenants agreed by the Developer to be performed. Section 7.2. Prohibition aeainst Transfer of Property and Assil!nment of Aereement. For the reasons set out in Section 7.1 of this Agreement, the Developer represents and agrees that, except for associating with other individuals or entities, prior to the issuance of . the Certificate of Completion by the City: (a) Except only by way of security for, and only for the purpose of obtaining financing necessary to enable the Developer or any successor in interest to the Property, or any part thereof, to perform its obligations with respect to the Development under this Agreement, and any other purpose authorized by this Agreement, the Developer, except as so authorized, has not made or created, and that it will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval ofthe EDA; and (b) The City and EDA shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such approval under this Section 7.2 that: (i) any proposed transferee shall have the qualifications and financial responsibility, as determined by the City or EDA, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer or, in the event the transfer is of or relates to part of the Property, such obligations to the extent that they relate to such part; (ii) any proposed transferee, by instrument in writing satisfactory to the EDA and in form recordable among the land records, shall for itself and its successor and assigns, and specifically for the benefit of the EDA, have expressly assumed all of the obligations of the Developer under this Agreement and agreed to be subject to such obligations, restrictions and conditions or, in the event the transfer is of, or relates to part of the . Property, such obligations, conditions, and restrictions to the extent that they relate to such part; 1 22258v.9 12 . . . provided, that the effect that any transferee of, or any other successor in interest whatsoever to, the Property or any part thereof, shall, for whatever reason, not have assumed such obligations or agree to do so, shall not, unless and only to the extent otherwise specifically provided in the Agreement or agreed to in writing by the EDA, relieve or except such transferee or successor from such obligations, conditions, or restrictions, or deprive or limit the City or EDA of or with respect to any rights or remedies or controls with respect to the Property of the construction of the Improvements; it being the intent of this Section 7.2, together with other provisions of this Agreement, that to the fullest extent permitted by law and equity and excepting only in the manner and to the extent specifically provided otherwise in the Agreement no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the City or EDA, or any rights or remedies or controls provided in or resulting from this Agreement with respect to the Property and the construction of the Improvements that the EDA or City would have had, had there been no such transfer or change; and (iii) there shall be submitted to the EDA for review all instruments and other legal documents involved in effecting transfers described herein, and if approved by the EDA, its approval shall be indicated to the Developer in writing. In the absence of specific written agreement by the EDA to the contrary, no such transfer or approval by the EDA thereof shall be deemed to relieve the Developer from any of its obligations with respect thereto. The sale of the Development to the Homeowner shall not be deemed to be a transfer within the meaning ofthis Section 7.2. Section 7.3. Approvals. Any approval required to be given by the City or EDA under this Article vn may be denied only in the event that the EDA reasonably determines that the ability of the Developer to perform its obligations under this Agreement will be materially impaired by the action for which approval is sought. ARTICLE VIII. EVENTS OF DEFAULT Section 8.1. Events of Default Defined. The following shall be deemed Events of Default under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the context otherwise provides, anyone or more of the following events: (a) Failure by the Developer to pay when due the payments required to be paid or secured under any provision of this Agreement; (b) Failure by the Developer to observe and substantially perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder, including the time for such performance; (c) If the Developer shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the 122258v.9 13 benefit of its creditors, or shall consent to the appointment of a receiver of itself or of the whole . or any substantial part of the Property; (d) If the Developer, on a petition in bankruptcy filed against it, be adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order of decree appointing, without the consent of the Developer, a receiver of the Developer or of the whole or substantially all of its property, or approve a petition filed against the Developer seeking reorganization or arrangement of the Developer under the federal bankruptcy laws, and such adjudication, order or decree shall not be vacated or set aside or stayed within 60 days from the date of entry thereof; or (e) If the Development is in default under any Mortgage and has not entered into a workout agreement with the Mortgagee. Section 8.2. Remedies on Default. Whenever any Event of Default occurs, the EDA may, in addition to any other remedies or rights given the EDA under this Agreement, take any one or more of the following actions following written notice by the EDA to the Developer as provided in Section 9.5 of this Agreement: (a) suspend its performance under this Agreement until it receives assurances from the Developer, deemed reasonably adequate by the EDA, that the Developer will cure its default and continue its performance under this Agreement; (b) cancel or rescind this Agreement; . ( c) withhold the Certificate of Completion; or (d) take whatever action at law or in equity may appear necessary or desirable to the EDA to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement; provided, however, that any exercise by the EDA of its rights or remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights or interest provided in this Agreement for the protection of the Holders of a Mortgage; and provided further that should any Mortgagee succeed by foreclosure of the Mortgage or deed in lieu thereof to the Developer's interest in the Property, it shall, notwithstanding the foregoing, be obligated to perform the following obligations of the Developer only to the extent that the same have not therefore been performed by the Developer: Sections 3.3 and 3.6; Sections 4.1 through 4.5; Sections 5.1 and 5.2. Said Mortgagee, upon foreclosure or taking of a deed in lieu, shall have no obligations pursuant to this Agreement other than as specifically set forth in the foregoing sentence. Section 8.3. Reinvestinl! Interest in EDA upon Happeninl! of Event of Default Subsequent to Conveyance of Property to Developer. In the event that subsequent to the closing or the sale of the Property to the Developer and prior to the issuance of the Certificate of Completion: . 122258v.9 14 . . . (a) the Developer fails to begin or complete installation of the Improvements in conformity with this Agreement, and such failure is not due to Unavoidable Delays; (b) the Developer, after commencement of the installation of the Improvements, defaults in or violates obligations with respect to the construction ofthe Improvements, including the nature and the date for the completion thereof, or abandons or substantially suspends installation work, and such act or actions is not due to Unavoidable Delays; (c) the Developer or successor interest fails to pay real estate taxes or assessments on the Property or any part thereof when due, or places thereon any encumbrance or lien unauthorized by this Agreement, or suffers any levy or attachment to be made, or any supplier's or mechanic's lien, or any other unauthorized encumbrance or lien to attach; (d) there is, in violation of Article VII of this Agreement, any transfer of the Property or any part thereof; or (e) the Developer fails to comply with any of its covenants under this Agreement; then the EDA shall have the right upon 30 days written notice to Developer and the Developer's failure to cure within such 30 day period to re-enter and take possession of the Property and to terminate and revest in the EDA the interest of the Developer in the Property; provided, however, that such revestiture of title shall be subject to the lien of any prior encumbrance permitted under this Agreement. Section 8.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to the EDA is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the EDA or the Developer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article VllI. Section 8.5 No Additional Waiver Implied by One Waiver. In the event of the occurrence of any Event of Default by either party, which Event of Default is thereafter waived by the other party, such waiver shall be limited to the particular Event of Default so waived and shall not be deemed to waive any other concurrent, previous or subsequent Event of Default. ARTICLE IX. ADDITIONAL PROVISIONS Section 9.1. Conflict of Interests: Representatives Not Individually Liable. No EDA or City officer who is authorized to take part in any manner in making this Agreement in his or 122258v.9 15 her official capacity shall voluntarily have a personal financial interest in this Agreement or . benefit financially there from. No member, official, or employee of the EDA or City shall be personally liable to the Developer, or any successor in interest, for any Event of Default by the EDA or City or for any amount which may become due to the Developer or successor or on any obligations under the tenns of this Agreement. Section 9.2. Non-Discrimination. The provIsIons of Minnesota Statutes Section 181.59, which relate to civil rights and non-discrimination, and any affirmative action program of the City shall be considered a part of this Agreement and binding on the Developer as though fully set forth herein. Section 9.3. Notice of Status and Conformance. At such time as all of the provisions of this Agreement have been fully perfonned by the Developer, the EDA, upon not less than five days prior written notice by the Developer, agrees to execute, acknowledge and deliver, without charge to the Developer or to any person designated by the Developer, a statement in writing in recordable form certifying the extent to which this Agreement has been performed and the obligations hereunder satisfied. Section 9.4. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is sent by mail, postage prepaid, return receipt requested or delivered personally: (a) As to the EDA: Executive Director Economic Development Authority of Farmington 325 Oak Street Farmington, MN 55024 . (b) As to the Developer: Joseph M. Heinen 1200 Willowbrook Dr. Wayzata, MN 55391 or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section 9.5. Section 9.5. Provisions Not Mert!:ed With Deed. None of the provisions of this Agreement is intended to or shall be merged by reason of any deed transferring any interest in the Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 9.6. Counternarts. This Agreement may be simultaneously executed in any number of counterparts, all of which shall constitute one and the same instrument. . 122258v.9 16 . . . IN WITNESS WHEREOF, the EDA has caused this Agreement to be duly executed in its name and on its behalf and its seal to be hereunto duly affixed and the Developer has caused this Agreement to be duly executed as ofthe day and year first above written. THE ECONOMIC DEVELOPMENT AUTHORITY OF FARMINGTON, MINNESOTA By Its Chairperson By Its Executive Director DEVELOPER By Joseph M. Heinen 122258v.9 17 STATE OF MINNESOTA COUNTY OF ) )ss ) The foregoing instrument was acknowledged before me this day of , 2006, by and , the Chairperson and Executive Director, respectively, of the Economic Development Authority of Farmington, Minnesota (EDA), a public body corporate and politic under the laws of Minnesota, on behalf ofthe EDA. STATE OF MINNESOTA ) )ss COUNTY OF DAKOTA ) Notary Public The foregoing instrument was acknowledged before me this ,2006, by Joseph M. Heinen, a single person. day of 122258v.9 Notary Public 18 . . . . . . EXHIBIT A LEGAL DESCRIPTION OF PROPERTY: The North Eighty-four (84) feet of Lot Six (6) and the North Eighty-four (84) feet ofthe West Half (W lf2) of Lot Five (5), in Block Twenty-seven (27), in the Town (now City) of Farmington, according to the plat thereof now on file and of record in the office of the County Recorder within and for said County and State. 122258v.9 19 EXHIBIT B FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that , has fully and completely complied with its obligations under Article IV of that document entitled "Contract for Private Development", between the Economic Development Authority of Farmington, Minnesota and dated filed as Document No. with respect to the construction of the approved construction plans at , legally described as and is released and forever discharged from its obligations to construct under such above-referenced Article. DATED: STATE OF MINNESOTA ) )ss COUNTY OF DAKOTA ) THE ECONOMIC DEVELOPMENT AUTHORITY OF FARMINGTON, MINNESOTA By Its Chairperson By Its Executive Director The foregoing instrument was acknowledged before me this _ day of , 2006, by and the Chairperson and Executive Director of the Economic Development Authority of Farmington, Minnesota, a public body corporate and politic under the laws of the State of Minnesota on behalf of the public body corporate and politic. This instrument was drafted by: Notary Public Economic Development Authority of Farmington 325 Oak Street Farmington, MN 55024 (651) 463-7111 122258v.9 20 . . . . . . EXHIBIT C QUIT CLAIM DEED STATE DEED TAX DUE HEREON: $ Dated: , 2006 FOR VALUABLE CONSIDERATION, the Economic Development Authority of Farmington, a public body corporate and politic under the laws of the State of Minnesota, Grantor, hereby conveys and quitclaims to Joseph M. Heinen, a single person, Grantee, real property in Dakota County, Minnesota, described as follows: The North Eighty-four (84) feet of Lot Six (6) and the North Eighty-four (84) feet of the West Half (W lf2) of Lot Five (5), in Block Twenty-seven (27), in the Town (now City) of Farmington, according to the plat thereof now on file and of record in the office of the County Recorder within and for said County and State. together with all hereditaments and appurtenances belonging thereto, subject to all the terms and conditions ofthat certain Contract for Private Development between Grantor and Grantee dated , 2006, which is being recorded contemporaneously herewith. THE GRANTOR CERTIFIES THAT THE GRANTOR DOES NOT KNOW OF ANY WELLS ON THE ABOVE DESCRIBED REAL PROPERTY. 122258v.9 21 AFFIX DEED TAX STAMP HERE . ECONOMIC DEVELOPMENT AUTHORITY OF FARMINGTON BY: Its Chairperson BY: Its Executive Director STATE OF MINNESOTA ) )ss COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 2006 by and , the Chairperson and Executive Director, respectively, of the Economic Development Authority of Farmington, a public body corporate and politic under the laws of the State of Minnesota, on behalf of said public body. . Notary Public Tax Statements for the real property described in this instrument should be sent to: Joseph M. Heinen 1200 Willowbrook Drive Wayzata, MN 55391 THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association Attorneys at Law 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 . 122258v.9 22 . . . City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us CERTIFICATE OF APPROPRIATENESS This is to certify that the activity or work described below has been reviewed by the Heritage Preservation Commission (HPC) pursuant to ~2-11-6 of the City Code and determined to have no adverse effect on any property designated or determined eligible for designation as a Farmington Heritage Landmark, provided: the building fronts the street with zero setback and the masonry materials used and height are appropriate. Applicant name and address: Farmington Economic Development Authority, owner, McVicker Lot, Third Street, Farmington, MN 55024 Description of activity or work: Proposed building elevations by Mr. Joe Heinen for a new building on the Mc Vicker lot across from the State Bank Building, a Designated Farmington Heritage Landmark. Appropriate City permits as required. Date ofHPC review: June 27,2006 This Certificate of Appropriateness does not constitute approval, endorsement or recommendation by the Heritage Preservation Commission for issuance of any city permit or license. en Stewart, HPC Vice Chairperson HPC Minutes (Regular) June 27, 2006 Page 2 2. Installation of the new door on Oak Street will retain the existing window and door openings, preserve in place the existing transom window and stoop, and install a new door that is compatible in materials, color, and texture with the historic character of the building. 3. Every reasonable effort shall be made to protect and preserve original historic interior features affected by or adjacent to the proposed demolition and stair construction work. 4. Prior to any demolition or new construction work, the owner or the contractor shall record existing conditions in the work areas with good quality color photographs and a sketch plan that will be turned over to the City for archival purposes. 5. A set of as-built plans should be produced on a durable medium (vellum or mylar) and deposited with the Heritage Preservation Commission to provide a permanent record of the changes made to the historic building. . MOTION by Samuelson, second by Burke to approve a Certificate of Appropriateness with the conditions in the staff report. APIF, MOTION CARRIED. ~b. McVicker Building Proposal The McVicker lot was acquired by the lIRA as a tax-forfeited property. The EDA is selling the lot to Mr. Joe Heinen who is proposing a mixed-use building with retail on the first floor and apartments above. The exterior of the building will be brick and glass. HPC comments include: . - The building should be flush to the sidewalk. - It should be shorter than three stories. _ It should follow a traditional pattern where the dimensions of the second floor are the same as the first floor. - It should be compatible with surrounding buildings. The building needs a Certificate of Appropriateness because it is within the line of sight of historical buildings. Several drawings were presented and it was determined option B for the west elevation would be best. The walkway by the mural would require an easement and the City would maintain it or not deed the south 20 ft. ofthe property. The EDA will determine which option to use. . Options for the stairway leading from the second floor ofthe adjacent Gossips building include: _ Constructing a new staircase from the back of the building. _ Keep the existing staircase and sell Gossips a strip of property. The fayade of the McVicker building could be extended up to Gossips so the staircase is not visible from the front. _ Have an exit from the second floor of Gossips in the McVicker building. _ Construct an exterior stairway between the two buildings and branch it off to the second floor of both buildings. The EDA was leaning towards this option. Mr. Heinen was hoping a combination of options would meet a Certificate of Appropriateness. Consultant V ogelliked option B because the building looks HPC Minutes (Regular) June 27, 2006 Page 3 symmetrical with straight sides and roof. He did not like to have the second floor set back from the front of the building for a balcony. If there is a balcony, the parapet in front should be eliminated along with the historic details and make it look more modern. The EDA liked the balconies as an amenity to residents and could be a selling point for the apartments. After further discussion, it was determined the colored drawing meets compatibility standards. MOTION by Samuelson, second by Stewart to issue a conditional Certificate of Appropriateness for the west elevation drawing and the setback from the street, the masonry materials, and height are appropriate. APIF, MOTION CARRIED. -+ Final drawings will be brought to the HPC. c. Liquor Store Building This building is owned by the EDA and they are looking at leasing the building. The EDA is considering uses such as the DV AC or the Historical Society for offices or display space. Member Burke suggested sharing the space with the Northern Dakota County Chamber for a local branch office. Consultant Vogel stated the building should be used for something that will attract people to the downtown that normally would not come downtown. Member Samuelson would prefer to see it used for retail space. d. Vice-Chair Appointment Due to the resignation of Danielle Stuckle, a new Vice-Chair needed to be appointed. MOTION by Samuelson, second by Burke to appoint Member Ken Stewart as Vice-Chair. APIF, MOTION CARRIED. 8. NUSCELLANEOUS Consultant Vogel informed the commission that the tax credit act was not included in the final bill at the legislature. Regarding the overlay zoning for the residential area of downtown, Administrative Services Director Shadick needs to work with City Planner Smick on this. Once the six properties are designated as landmarks, then the overlay zoning should be done. Staff should request City Planner Smick have an ordinance prepared for the August 22, 2006 HPC meeting. The landmark designations will be brought to Council two at a time beginning with the September 5,2006 Council meeting. The August 22, 2006 HPC agenda should include: - Landmark designations - Draft ordinance for overlay zoning - Comprehensive Plan When the 2008 Comprehensive Plan is updated, the historic preservation portion should also be updated. . . . . . . TO: Kevin Carroll, Community Development Director FROM: Ken Lewis, Building Official SUBJECT: Exchange Bank Building -- Schedule and Progress Report DATE: July 20,2006 On July 19, 2006 a preliminary inspection was completed on the current remodeling of the Exchange Bank Building to ensure that progress is ongoing and meets the agreed upon schedule. At this time the progress includes the removal ofthe Great Hall ceilings, the reconstruction ofthe roof area and some preliminary repair work on the Oak Street staircase. The roof reconstruction includes adding insulation to the decking area for the purpose of adding a conventional "wet" sprinkler system instead of a more costly "dry" system. Thus far, the submittal or approval dates for the tasks identified in the schedule established by the EDA are as follows: 1. a. Application for building permit for fire escape and Grand Hall remodeling was submitted on May 31, 2006. b. The review of construction plans was completed on June 16,2006. The HPC's approval of a Certificate of Appropriateness was obtained on June 27,2006. The contractor picked up and paid for the building permit on July 6, 2006. Construction commenced on July 13, 2006. 2. The sprinkler plans were submitted on June 26, 2006 and are currently being reviewed by the Fire Marshal. The review should be completed and the permit issued by approximately July 28, 2006. The installation ofthe sprinkler system can then commence as soon as the work on the roof is completed. 3. The contractor has submitted the electrical specifications to the State Board of Electricity. The State inspector for this geographic area has not seen the permit or plans. The State Board of Electricity has indicated that they are behind in processing by 2-3 weeks, which may account for the fact that the local inspector has not yet received the paperwork in question. The contractor has confirmed that the required submittal has been completed, that the installation of the new electrical system or equipment will begin as soon as the interior framing is complete, and that all required state inspections will take place as part of this process. . City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.cLfarmington.mn.us CERTIFICATE OF APPROPRIATENESS This is to certify that the activity or work described below has been reviewed by the Heritage Preservation Commission (HPC) pursuant to 92-11-6 of the City Code and determined to have no adverse effect on any property designated or determined eligible for designation as a Farmington Heritage Landmark, subject to the following stipulations and conditions: 1) The proposed work will result in minimal alteration of the building's exterior and will not remove or alter any historic material or distinctive architectural feature. . 2). Installation of the new door on Oak St. will retain the existing window and door openings, preserve in place the existing transom window and stoop, and install a new door that is compatible in materials, color, and texture with the historic character of the building. 3) Every reasonable effort shall be made to protect and preserve original historic interior features affected by or adjacent to the proposed demolition and stair construction work. 4) Prior to any demolition or new construction work, the owner or the contractor shall record existing conditions in the work areas with good quality color photographs and a sketch plan that will be turned over to the city for archival purposes. 5) A set of as-built plans should be produced on a durable medium (vellum or Mylar) and deposited with the Heritage Preservation Commission to provide a permanent record of the changes made to the historic building. Applicant name and address: Hosmer Brown, owner, Exchange Bank Building, 344 Third Street, Farmington, MN 55024 Description of activity or work: Stair tower addition and interior renovations of the . Exchange Bank building, 344 Third Street. Appropriate City permits required for renovations proposed. Date ofHPC review: June 27,2006 . This Certificate of Appropriateness does not constitute approval, endorsement or recommendation by the Heritage Preservation Commission for issuance of any city permit or license. ~E~ ( C . Ch' Ken Stewart, HP VIce mrperson . . . . . 1. 2. 3. 4. MINUTES HERITAGE PRESERVATION COMMISSION REGULAR MEETING June 27, 2006 CALL TO ORDER Secretary Burke called the meeting to order at 7:00 p.m. Present: Tim Burke, Edgar Samuelson, Ken Stewart Absent: Beverly Preece Also Present: Robert Vogel, Consultant; Lisa Shadick, Administrative Services Director; Kevin Carroll, Community Development Director; Hosmer Brown IV, Cynthia Muller, Executive Assistant APPROVAL OF AGENDA MOTION by Samuelson, second by Stewart to approve the agenda. APIF, MOTION CARRIED. APPROVAL OF MINUTES MOTION by Samuelson, second by Burke to approve the April 25, 2006 minutes. Voting for: Burke, Samuelson. Abstain: Stewart. MOTION CARRIED. PUBLIC HEARINGS - None 5. REPORTS - None 6. UNFINISHED BUSINESS a) Heritage Landmark Designation Project The reports for six landmark designations will be brought to the August 22, 2006 meeting. 7. \( NEW BUSINESS a) Exchange Bank Building Renovations The Exchange Bank Building was designated as a heritage landmark in July 2003. The current owner, Mr. Hosmer Brown, has been working on some renovations. Comments on the revisions were provided from the Minnesota Historical Society and from HPC Consultant Robert Vogel. Consultant Vogel stated landmark designations should not include the interior of buildings. Renovations include the stairway on Oak Street and adding a fire escape from the second floor. The HPC was asked to issue a Certificate of Appropriateness for the renovations to the stairway and the fire escape stating they meet preservation standards and City code. The architect should document any work being done. Work will begin 14 days after a permit is received and will be completed this year. Consultant Vogel recommended approval subject to the following conditions: 1. The proposed work will result in minimal alteration of the building's exterior and will not remove or alter any historic material or distinctive architectural feature. HPC Minutes (Regular) June 27, 2006 Page 2 2. Installation ofthe new door on Oak Street will retain the existing window and door openings, preserve in place the existing transom window and stoop, and install a new door that is compatible in materials, color, and texture with the historic character of the building. 3. Every reasonable effort shall be made to protect and preserve original historic interior features affected by or adjacent to the proposed demolition and stair construction work. 4. Prior to any demolition or new construction work, the owner or the contractor shall record existing conditions in the work areas with good quality color photographs and a sketch plan that will be turned over to the City for archival purposes. 5. A set of as-built plans should be produced on a durable medium (vellum or mylar) and deposited with the Heritage Preservation Commission to provide a permanent record of the changes made to the historic building. MOTION by Samuelson, second by Burke to approve a Certificate of Appropriateness with the conditions in the staffreport. APIF, MOTION CARRIED. b. McVicker Building Proposal The McVicker lot was acquired by the HRA as a tax-forfeited property. The EDA is selling the lot to Mr. Joe Heinen who is proposing a mixed-use building with retail on the first floor and apartments above. The exterior of the building will be brick and glass. HPC comments include: - The building should be flush to the sidewalk. - It should be shorter than three stories. - It should follow a traditional pattern where the dimensions of the second floor are the same as the first floor. - It should be compatible with surrounding buildings. The building needs a Certificate of Appropriateness because it is within the line of sight of historical buildings. Several drawings were presented and it was determined option B for the west elevation would be best. The walkway by the mural would require an easement and the City would maintain it or not deed the south 20 ft. of the property. The EDA will determine which option to use. . 1- . Options for the stairway leading from the second floor of the adjacent Gossips building include: - Constructing a new staircase from the back of the building. - Keep the existing staircase and sell Gossips a strip of property. The fayade of the McVicker building could be extended up to Gossips so the staircase is not visible from the front. - Have an exit from the second floor of Gossips in the McVicker building. - Construct an exterior stairway between the two buildings and branch it off to the . second floor of both buildings. The EDA was leaning towards this option. Mr. Heinen was hoping a combination of options would meet a Certificate of Appropriateness. Consultant V ogel1iked option B because the building looks . . . Page 1 of 1 Tina Schwanz From: snyderschreier [snyderschreier@email.msn.com] Sent: Thursday, July 20,20064:54 PM To: Tina Schwanz Subject: Farmington Area Historical Society Tina, This e-mail is to confirm that I received your phone message regarding the use of the old municipal liquor store. As I stated in my reply to your answering machine on Thursday afternoon, the Farmington Area Historical Society is not interested in the use of the building. Our focus is research, publications, presentations and tours. We have no use for a 'museum' building. We hope to have a place at the future community center to better share our research and collections with the residents of Farmington. Thank you for thinking about us. David Schreier 7/20/2006 . . . 7/18/2006 9:56 AM FROM: 952-846-0257 Hawk's Sewing _Design TO: BID Hawk's Sewing & Design 2990B 145TH STREET WEST ROSEMOUNT, MN 55068 DATE CUSTOMER NAME BUSINESS NAME ADDRESS CITY, STATE, ZIP PHONE: FAX: E-MAIL: PROJECT NAME Phone: (952) 890-4824 Fax: (952) 846-0257 E-mail hawlcsewing@usfamily.net 1 651 463-2591 PAGE: 002 OF 002 07/0312006 (SECOND COpy 7/18120C TINA CITY OF FARMINGTON 325 OAK STREET FARMINGTON, MN 55024 651-463-1800 651-463-2591 ---- 30(/305 ~RD STREET '-----"'" 6) TERMS TO START PROJECT: 1) BID GOOD FOR 90 DAYS 2) SIGNED COpy OF THIS BID 3) 50% DOWN PAYMENT 4) BALANCE DUE 15 DAYS NET FROM THE DATE OF INSTALLATION I FRAME; HEIGHT PROJECTION WIDTH STYLE FABRIC PRICE I 1 2' - 9" l' - 9" 4' - 9" CASCADE WITH 9" FREE SUNBRELLA $250.00 HANGING CURTAIN 2 21- 9" l' - 9" 16' - 0" CASCADE WITH 9" FREE SUNBRELLA $800.00 HANGING CURTAIN 3 21- 9" l' - 9" 33'- 3" CASCADE WITH 9" FREE SUNBRELLA $1.700.00 HANGING CURTAIN PRINTING WILL BE AN ADDITIONAL CHARGE IF NO CURTAIN IS REQUIREC SUBTRACT $180.00 - - C-LJ....\". y' ~\., t\ '- } y\ 0 c...v.A TcJ i..,yv - SUBTOTAL $2,750.00 MN SALES TAX $178.75 CUSTOMER SIGNATURE Questions? 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Oq>COI-r.? ccEc ~=~oa.."C<(--coOlWC'XOlOl...Jc..>OlC_-O.- E-o <( E~CCCO<(LU~~ enCCOEEcE EL-EuC EL->>>9.0I-cc~ro>9.L-L-OL- w~~:2:8m~~~~~~w~550:::2:~~~~~~ ~ c Ol ~ o Q) > Ol o C"t) ~ooooooO::O::O::O::O::a..o..a..o.._a.._o.._a.._.o..<(oo S:enenenenenen~~~~~___ Ieneneneneneno..o..o..o..o..Ll.LLLl.LLLl.LLLl. LWO . . . CONTRACT FOR PRIVATE DEVELOPMENT FARMINGTON, MINNESOTA THIS AGREEMENT, made on or as of the _day of ,2006, by and between the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON, a public body corporate and politic under the laws ofthe State of Minnesota (the "EDA") and JOSEPH M. HEINEN (the "Developer"). WITNESSETH: WHEREAS, the Authority was created pursuant to Minnesota Statutes, Sections 469.001-.047 (the "Act") and was authorized to transact business and exercise its powers by a resolution of the City Council ofthe City of Farmington (hereinafter the "City") pursuant to Section 469.003 (formerly Section 462.425) of the Act; and WHEREAS, there has been a proposal that the EDA approve the sale of the real property described in Exhibit "A" attached hereto (the "Property") to the Developer for development of at least a 10,000 square foot mixed-use building that would include lower level retail or commercial and second story residential units in the City of Farmington (the "Project"); and WHEREAS, the EDA believes that the Project and fulfillment generally of this Agreement is in the best interest ofthe EDA and the health, safety, morals and welfare of the residents of the City of Farmington and in accord with the public purposes and provisions ofthe applicable state and local laws and requirements. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: I 13774v.5 ARTICLE I. DEFINITIONS . In this Agreement, unless a different meaning clearly appears from the context: "Act" means Minnesota Statutes, Sections 469.001-469.047 (formerly Municipal Housing and Redevelopment Act, Minnesota Statutes, Sections 462.411-462.711), as amended. "Agreement" [or "Contract") means this Contract for Private Development by and between the EDA and the Developer, as the same may be from time to time modified, amended or supplemented. "Articles and Sections" mentioned by number only are the respective Articles and Sections ofthis Agreement so numbered. "City" means the City of Farmington, Minnesota. "County" means the County of Dakota, Minnesota. "Deed" means the warranty deed to be executed by the EDA conveying the Property to the Developer. "Developer" means Joseph M. Heinen, or any assigns that have received prior written . approval from the EDA. "EDA" means the Farmington Economic Development Authority. "Event of Default" means an action by the Developer listed in Article VII of this Agreement. "Minimum Improvements" means at least a 10,000 square foot building constructed of brick and stone and appurtenant improvements thereto constructed on the Property and driveways, walks and parking fixtures and equipment by the Developer, in accordance with all applicable local, state and federal regulations governing such facilities, and in conformance with site plans as the same have been submitted to the EDA. "Parties" means the Developer and the EDA. "Party" means either the Developer or the EDA. "Project" means the Property and the completed Minimum Improvements thereon. "Property" means the two parcels of real property as legally described in Exhibit "A" attached hereto. . 113774 2 . . . "Purchase Price" means the sum of Thirty Thousand and No/lOO Dollars ($30,000.00) less the amount of the deferred streetscape assessments due on the date of Closing, whiCli the Developer shall pay the EDA for the purchase of the Property. "State" means the State of Minnesota. "Unavoidable Delays" means delays outside the control ofthe Party claiming its occurrence which are the direct result of strikes, other labor troubles, unusually severe or prolonged bad weather, Acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the City) which directly result in delays. Unavoidable delays shall not include delays in the Developer's obtaining permits or governmental approvals necessary directly to enable construction of the Minimum Improvements. ARTICLE II. REPRESENTATIONS AND WARRANTIES Section 2.1. Representations and Warranties by the EDA. The EDA represents and warrants that: (a) The EDA is a public body corporate and politic duly organized and existing under the laws of the State. Under the provisions ofthe Act and the laws ofthe State, the EDA has the power to enter into this Agreement and carry out its obligations hereunder. (b) The activities of the EDA are undertaken for the purpose of creating additional job opportunities within the City and to enhance the economic diversity ofthe City and to provide essential products and services within the City. (c) The EDA makes no representation or warranty, either express or implied, as to the Property or its condition or soil conditions thereon, or that the Property is suitable for the Developer's needs except as specifically set forth in this Agreement. (d) Subject to satisfaction ofthe terms and conditions ofthis Agreement, the EDA will convey the Property to the Developer for development in accordance with the terms of this Agreement. Section 2.2. Representations and Warranties by the Developer. The Developer represents and warrants that: (a) The Developer has the capacity to enter into this Agreement and to perform its obligations hereunder. (b) When the Property is conveyed to the Developer, the Developer will construct, operate and maintain the Minimum Improvements upon the Property in 113774 3 accordance with the terms of this Agreement, and all local, state and federal laws . and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations). (c) The Minimum Improvements will be constructed by the Developer, at its sole expense, in such manner, and at such expense as are necessary to make the Property usable by the Developer, including all such improvements as are necessary to make said facility comply with all applicable federal, state and local rules, regulations, ordinances and laws. (d) The Developer will use its best efforts to construct the Minimum Improvements in accordance with all local, state or federal energy-conservation laws or regulations. (e) The Developer will use its best efforts to obtain, in a timely manner, all required permits, licenses and approvals and to meet, in a timely manner, all requirements of all applicable local, state and federal laws and regulations which must be obtained or met before the Minimum Improvements may be lawfully constructed. The EDA will cooperate to expedite the processing of any application filed with the City by the Developer. The EDA does not hereby warrant or represent that the City will approve an application filed by Developer, except as expressly provided in this Agreement. (1) The Developer will cooperate with the EDA, and the EDA will cooperate with the . Developer with respect to any litigation commenced with respect to the Property or the Minimum Improvements. (g) The Developer will construct the Minimum Improvements on the Property in accordance with the plans approved by the EDA. (h) The construction of the Minimum Improvements would not be undertaken by the Developer and, in the opinion of the Developer, would not be economically feasible within the reasonably foreseeable future but for the financial assistance and benefit provided to the Developer by the EDA under this Agreement. (i) Neither the execution and delivery ofthis Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions ofthis Agreement is prevented, limited by or conflicts with, or results in a breach of, the terms, conditions or provisions of any corporate restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound or constitutes a default under any of the foregoing. 0) Whenever any Event of Default occurs and ifthe EDA shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement of performance or observance of any obligation or agreement on . the part of the Developer under this Agreement, the Developer agrees that it shall, 113774 4 . . . within ten (10) days of written demand by the EDA, pay to the EDA the reasonable fees of such attorneys and such other expenses so incurred by the EDA. ARTICLE III. CONVEYANCE OF PROPERTY Section 3.1. Status of Property. Subject to the satisfaction ofthe terms and conditions of this Agreement, the EDA agrees to sell the Property to the Developer and the Developer agrees to purchase the Property from the EDA in "as-is" condition. The EDA agrees to convey the Property to the Developer by Quitclaim deed. The EDA's deed to the Developer will be subject to a restrictive covenant prohibiting the sale of any portion of the Property separate and apart from any other portion ofthe Property and ~equiring lot combination for tax purposes with Dakota County. Section 3.2. Conditions Precedent to Conveyance of Property. (a) The EDA's obligation to convey the Property shall be subject to the satisfaction of, or waiver in writing by the EDA of, all of the following conditions precedent: (i) The Developer not being in default under the terms of this Agreement; (ii) The Developer having secured all governmental permits and approvals, including building permits necessary to be obtained in order to permit conveyance of the Property to Developer and construction of the Minimum Improvements; (iii) The Developer shall have submitted to the EDA and the EDA shall have approved Construction Plans for the Minimum Improvements pursuant to Article IV of this Agreement; (iv) City approval of a special assessment agreement for deferred streetscape assessments; and tv\ (v) Developer entering into an agreement at Closing, in a fOrm acceptable,Jo</ ~S EDA, permitting access to the second story ofthe building located at\S 13 Jj\.~ 3rd St., Farmington, MN 55024.\..~/ (vi) At closing, Developer executing an easement in favor ofthe City for public sidewalk, trail and utility purposes over the southernmost 15 feet of the Subject Property in a form acceptable to the City. -=-- (b) The Developer shall be obligated to accept title to the Property subject to satisfaction, or waiver in writing by the Developer, of the following conditions precedent: 113774 5 (i) The EDA not being in default under the terms ofthis Agreement; and . (ii) The Developer having secured the EDA's approval of the Construction Plans and all other governmental permits and approvals, including building permits and a waiver of plat to combine Lots 3 and 4 ofthe Subject Property, necessary to construct the Minimum Improvements; and (iii) Approval of the environmental condition ofthe Property; and (iv) Approval of the condition of the soil for the construction of the Minimum Improvement; (v) The Developer determining that City water and sewer are available to the Property and that the water pressure is adequate to sprinkler the building; (vi) The EDA obtaining interest in fee title to the Subject Property (vii) Developer determining that it is satisfied with the title to the property and the results of a survey of the property prior to the Closing Date. Section 3.3. Purchase Price. The purchase price for the Subject Property shall be Thirty Thousand and No/l 00 Dollars ($30,000.00) less the amount of the two deferred streetscape assessments against the Subject Property on the date of Closing, payable at Closing. . Section 3.4. Closing. (a) Within ten (10) days after the satisfaction and/or waiver of all ofthe conditions contained in Section 3.2 of this Agreement, and in any event no later than September 29,2006 ("Closing Date") provided all conditions precedent for the EDA and Developer to close have either been met or waived, and the Developer pays the EDA the Purchase Price, the EDA shall convey the Property to the Developer through the execution and delivery of the Deed with a restrictive covenant prohibiting sale of any portion of the Property separate and apart from any other portion ofthe Property and all other documents reasonably required by Developer and the Title Company. This closing shall be at a location designated by the EDA. (b) The Developer shall take possession of the Property upon execution and delivery of the Deed by the EDA at closing. (c) The Deed shall be in recordable form and shall be promptly recorded along with this Agreement. (d) At closing, the Developer shall pay: all closing costs including, but not limited to, state deed tax relating to the conveyance ofthe Property, all title insurance company fees for title insurance premiums, if any, one half of closing costs, all . 113774 6 . recording fees and conservation fees. Property taxes shall be prorated to the closing date. Developer shall assume all pending and levied assessments (e) At closing, Developer shall execute any and all documents necessary to combine the two parcels that make up the Property. (f) At the time of the conveyance of the Property by EDA to Developer, EDA shall deliver to Developer (if EDA has not already done so): (i) (i) (E mail) all plans, reports, drawings, appraisals, environmental tests, soil borings, real estate tax notices and other records in EDA's possession or control related to the Property; (ii) all other documents reasonably required by Developer's title agent in order to complete the transaction described herein. (g) Developer shall execute and deliver all documents necessary for closing of this Agreement, including: (i) the sidewalk easement identified under Section 3.2(a)(vi); . ~~?- ~~ / (ii) and special assessment agreement with the City for deferred assessments identified under Section 3.8 (ii) the access agreement identified under Section 3.2(a)(v). Section 3.5. Title. EDA shall furnish a title insurance commitment certified to date to include proper searches covering bankruptcies, state and federal judgments and liens, and levied and pending special assessments. Developer agrees to accept an owner's title policy in lieu of an abstract of title. EDA and Developer shall share equally in the costs associated with the issuance of such commitment. Developer shall pay the premium for any owner's and mortgagee's policies oftitle insurance. The commitment for title insurance shall be issued in the full amount of the Purchase Price by a title ins V v- 'L It\.. Le.. S uyer ("title insurer"). :>'" . Section 3.6. Physical Inspection. Developer and its agents will have the right, from time to time prior to the Closing, to enter upon the Subject Property to examine the same and the condition thereof and to conduct such surveys and to make such engineering and other inspections, tests and studies as Developer determines to be reasonably necessary, all at Developer's sole cost and expense. The EDA shall pay one-halfthe cost of a survey of the Subject Property upon receipt of the survey. Developer will conduct such examinations or surveys during normal business hours to the extent practicable. Developer will conduct all examinations and surveys ofthe Subject Property in a manner that will not harm or damage the Subject Property so that it cannot be restored to its prior condition or cause any claim adverse to the EDA and will restore the Subject Property to its condition prior to any such examinations or surveys immediately after conducting the same. Developer will indemnify, defend, and hold the EDA harmless from and against any claims for injury or death to persons, damage to property or 113774 7 other losses, damages or claims, including, in each instance, reasonable attorneys' fees and . litigation costs, arising out of any action of any person or firm entering the Subject Property on Developer's behalf as aforesaid, which indemnity will survive the Closing and any termination ofthis Agreement without the Closing having occurred. Notwithstanding the foregoing, Developer will not be liable merely for the discovery of a pre-existing condition at the Subject Property. Section 3.7. Charges to be Paid by Developer. (a) The Developer shall be responsible to pay, at closing, any of the following charges and fees that may be applicable: (i) surface water management fees; (ii) water main trunk area charges; (iii) water treatment plant fees; (iv) water quality pond fee; (iv) sanitary trunk area charges; (v) park dedication fees; and . (vi) GIS fees. (b) The Developer shall be responsible to pay, prior to obtaining a building permit for the Minimum Improvements, any of the following charges and fees that may be applicable, and other charges and assessments as may be imposed, such as (but not limited to) the following: (i) water and sewer connection charges; (ii) building permit fees; and (iii) erosion control fees. Section 3.8. Taxes and Deferred Assessments. Except as otherwise provided herein, the EDA shall pay all general real estate taxes and installments of special assessments due and payable in the year prior to the Date of Closing and years prior thereto. The EDA and Developer shall prorate all general real estate taxes due and payable on the Subject Property in the year in which the Date of Closing occurs on a per diem basis. Except as otherwise provided below, EDA shall pay on or before Closing all levied and pending special assessments associated with the Subject Property as ofthe date of this Agreement. Seller shall assume deferred assessments for the Downtown Streetscape Project against each of the two lots making up the Property. The total amount of these two assessments is $14,532.73 through December 31,2006. This Agreement is . 113774 8 . . . contingent upon the City of Farmington's reassessment of the streetscape assessments to the Subject Property prior to or at the time of Closing, pursuant to a special assessment agreement in a form acceptable to the City which would provide for payment ofthe assessment over ten (10) years, with interest accruing at the rate of6.5% per year until the assessments are paid in full. Section 3.9. Other Charges. In addition to the utility charges and other charges and fees referred to in this Contract, other fees due the City are building permit fees such as for signs, electrical, and plumbing. ARTICLE IV. CONSTRUCTION OF MINIMUM IMPROVEMENTS Section 4.1. Construction of Minimum Improvements. The Developer agrees that it will construct the Minimum Improvements on the Property in accordance with construction plans approved by the EDA, (the "Construction Plans") and will operate and maintain, preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof in good repair and condition. Section. 4.2. Construction Plans. (a) On or before September 29,2006, the Developer shall submit to the EDA a site plan for the Property ("Site Plan") and the Construction Plans for the Minimum Improvements. The Construction Plans shall provide for the construction ofthe Minimum Improvements and shall be in conformity with this Agreement, the Site Plan, and all applicable state and local laws and regulations. The EDA and/or the City Engineer shall approve the Construction Plans in writing if, in the reasonable discretion of the EDA and/or City Engineer: (i) the Construction Plans conform to the terms and conditions ofthis Agreement; (ii) the Construction Plans conform to all applicable federal, state and local law, ordinances, rules and regulations; (iii) the Construction Plans are adequate to provide for the construction of the subject Minimum Improvements; (iv) the Construction Plans do not provide for expenditures in excess ofthe funds which will be available to the Developer for the construction of the Minimum Improvements; and (v) no Event of Default has occurred and is continuing. No approval by the EDA and/or City Engineer under this Section 4.2 shall relieve the Developer of the obligation to comply with the terms of this Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the Minimum Improvements. No approval by the EDA and/or City Engineer shall constitute a waiver of an Event of Default. The EDA and/or City Engineer shall review the Construction Plans within thirty (30) days of submission of a complete set of Construction Plans and either approve the same or provide Developer with a list of specific required changes to be made to the Construction Plans. Upon making the specific changes to the Construction Plans as required by the EDA and/or City Engineer, the Developer shall submit the Construction Plans with the required changes to the City Engineer for his 113774 9 approval and if Developer made the required changes, the Construction Plans . shall be approved. (b) If the Developer desires to make any material change in any Construction Plans after their approval by the EDA and/or City Engineer, the Developer shall submit the proposed change to the City Engineer for his approval. Ifthe Construction Plans, as modified by the proposed change, conform to the requirements of this Section 4.2 ofthis Agreement with respect to such previously approved Construction Plans, the EDA and/or City Engineer shall approve the proposed change and notify the Developer in writing of its approval. Section 4.3. Construction of Minimum Improvements. The Developer shall commence construction of the Minimum Improvements on or before October 31, 2006. Subject to Unavoidable Delays, the Developer shall substantially complete construction of the Minimum Improvements, except for landscaping; exterior matters such as final lift of asphalt, striping, etc.; and minor "punch list items", on or before June 30, 2007. Section 4.4. Construction Requirements. In constructing the Minimum Improvements, the Developer shall comply with all federal, state and local laws and regulations, including the following requirements: a. Erosion Control and Fees. After the site is rough graded, but before any utility construction is commenced or building permits are issued, an erosion control plan shall . be implemented by the Developer and inspected and approved by the City. The City may impose additional erosion control requirements if it is determined that the methods implemented are insufficient to properly control erosion. All areas disturbed by the excavation and back-filling operations shall be re-seeded forthwith after the completion of the work in that area. All seeded areas shall be fertilized, mulched and disc anchored as necessary for seed retention. The parties recognize that time is of the essence in controlling erosion. If the Developer does not comply with the erosion control plan and schedule, or supplementary instructions received from the City, or in an emergency determined at the sole discretion of the City, the City may take such action as it deems appropriate to control erosion immediately, without notice to the Developer. The City will endeavor to notify the Developer in advance of any proposed action, but failure of the City to do so will not affect the Developer's and the City's rights or obligations hereunder. If the Developer does not reimburse the City for any costs of the City incurred for such work within thirty (30) days, the City may upon any available security to pay such costs. No building permits will be issued unless the development is in full compliance with the erosion control requirements. The Developer is responsible for Erosion Control inspection fees at the current rate(s). The Developer is also responsible for a Water Quality Management Fee based upon the number of acres acquired by the Developer. This fee is due and payable at the time of closing or at such other time as may be mutually agreed upon by the parties hereto. b. License. The Developer hereby grants the City, its agents, employees, officers and . contractors, a license to enter the Property to perform all necessary work and/or 113774 10 . inspections deemed appropriate by the City during the installation of public improvements by the City. The license shall expire after the public improvements installed pursuant to the Development Contract have been installed and accepted by the City. c. Clean UP. The Developer shall weekly, or more often if required by the City Engineer, clear from the public streets and property any soil, earth or debris resulting from construction work by the Developer or its agents or assigns. All debris, including brush, vegetation, trees and demolition materials, shall be disposed of off site. Burning of trees and structures shall be prohibited, except for fire training only. The City has a contract for street cleaning services. The City will have the right to clean the streets as outlined in current City policy. The Developer shall promptly reimburse the City for street cleaning costs. . d. Enforcement; Liens. The Developer shall reimburse the EDA and/or City for costs incurred in the enforcement of this Contract, including engineering and attorney's fees. In the event that the City receives claims from labor, materialmen, or others that have performed work required by this Contract, that the sums due them have not been paid, and the laborers, materialmen, or others are seeking payment from the City, the Developer hereby authorizes the City to commence an Interpleader action pursuant to Rule 22, Minnesota Rules of Civil Procedure for the District Courts, to draw upon any available security in an amount up to 125% of the claim(s) and deposit the funds in compliance with the Rule, and upon such deposit, the Developer shall release, discharge, and dismiss the City from any further proceedings as it pertains to the funds deposited with the District Court, except that the Court shall retain jurisdiction to determine attorneys' fees pursuant to this Contract. e. Bills. The Developer shall pay in full all bills submitted to it by the City within thirty (30) days after receipt. If the bills are not paid on time, the City may halt all site development work until the bills are paid in full. Bills not paid within thirty (30) days shall accrue interest at the rate of eight percent (8%) per annum. Ifthe bills are not paid within sixty (60) days, the EDA and/or the City has the right to draw from the Developer's security to pay the bills. Section 4.5. Failure to Accept Title to Property or to Construct. In the event all conditions precedent herewith are met or waived and the Developer fails to accept title to the Property pursuant to Article III or construction ofthe Minimum Improvements is not completed as provided in Section 4.3 ofthis Agreement, the Developer shall be liable to the EDA for the amount ofthe EDA's expenses as liquidated damages. . As security for the obligations created in this Section and elsewhere herein, the Developer shall arrange to have the EDA and the City named as additional insureds on any payment or performance bond(s) that the Developer obtains from its construction contractor(s). As further security for the aforesaid obligations, the Developer shall ensure that the terms of its construction financing and/or title insurance include a provision requiring City approval prior to the payment or disbursement of any funds for construction-related expenses. The provisions of this Section 113774 11 shall not be construed to prejudice or limit any additional rights ofthe EDA under Article VII of . this Contract. ARTICLE V. REAL PROPERTY TAXES Section 5.1. Developer's Obligations. The Developer shall pay all real property taxes payable with respect to the Property after closing. Section 5.2. Review Waiver. The Developer agrees that prior to the year 2010: (a) It will not seek administrative review or judicial review of the applicability of any tax statute relating to the taxation of real property contained on the Property determined by any tax official to be applicable to the project or the Developer or raise the inapplicability of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; (b) It will not seek administrative review or judicial review of the constitutionality of any tax statute relating to the taxation of real property contained on the Property determined by any tax official to be applicable to the project or the Developer or raise the unconstitutionality of any such tax statute as a defense in any proceedings. ARTICLE VI Events of Default . Section 6.1. Events of Default Dermed. The following shall be "Events ofDefauIt" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides), anyone or more of the following events: (a) Failure by the Developer to pay when due any payments required to be paid under this Agreement or to pay when due ad valorem taxes on the Property. (b) Failure by the Developer to commence, diligently pursue and complete construction of the Minimum Improvements, or portions thereof, pursuant to the terms, conditions and limitations of this Agreement. (c) Failure by Developer to observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed hereunder. (d) The Developer does any of the following: (i) files any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under United States Bankruptcy Laws or any similar federal or state laws; or (ii) make an assignment for the benefit of its creditors; or (iii) admit, in writing, its inability to pay its debts generally as they become due; or (iv) be adjudicated, bankrupt or insolvent. . 113774 12 . . . (e) If any warranty or representation by the Developer in this Agreement is untrue in any material respect. (f) Default of the Developer under the Business Subsidy Agreement. Section 6.2. EDA's Remedies on Default. Whenever any Event of Default by Developer referred to in Section 7.1 of this Agreement occurs, the EDA may take anyone or more of the following actions and unless otherwise provided such actions may be taken only after providing thirty (30) days written notice to the Developer of the Event of Default and the Event of Default has not been cured within said thirty (30) days or, if the Event of Default is by its nature incurable within thirty (30) days, the Developer does not provide assurances to the EDA reasonably satisfactory to the EDA that the Event of Default will be cured and will be cured as soon as reasonably possible: (a) Suspend its performance under the Agreement until it receives assurances from the Developer, deemed adequate by the EDA, that the Developer will cure its default and continue its performance under the Agreement. (b) Terminate this Agreement; (c) In the event of default by the Developer with respect to the Developer's obligation to complete the Minimum Improvements, the EDA may, at its option, perform the work and the Developer shall promptly reimburse the EDA for any expense incurred by the EDA, provided the Developer, except in an emergency as determined by the EDA or as otherwise provided for in this agreement, is first given written notice of the work in default, not less than 72 hours in advance. This Contract is a license for the EDA to act, and it shall not be necessary for the EDA to seek a Court order for permission to enter the land. When the EDA does any such work, the EDA may, in addition to its other remedies, assess the cost in whole or in part. In the event of a default or upon breach of the terms of this Contract, the EDA may, without notice to the Developer, draw upon any security provided for under the terms ofthis Contract. (d) Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to the EDA to collect any payments due or damages arising under this Agreement or to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement. Section 6.3. Revesting Title in EDA Upon Happening of Event Subsequent to Conveyance to Developer. In the Event that subsequent to the execution and delivery of the Deed the Developer shall fail to complete construction of the Minimum Improvements in conformity with this Agreement and obtain a Certificate of Completion and such failure shall not be cured within thirty (30) days after written notice to do so, or within a reasonable amount of time thereafter if Developer is diligently proceeding with the construction of the Minimum Improvements, then the 113774 13 EDA shall have the right to immediately re-enter and take possession of the Property and to . terminate (and revest in the EDA) the estate conveyed by the Deed to the Developer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to the Developer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Developer and failure on the part of the Developer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, the EDA at its option may declare a termination in favor the EDA of the title, and all of the rights and interests in and to the Property conveyed to the Developer, and that such title and all rights and interests of the Developer, and any assigns or successors in interest to and in the Property, shall revert to the EDA. Section 6.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to the EDA is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. Section 6.5. Attorneys' Fees. Whenever any Event of Default occurs and either the EDA shall employ attorneys or incur expenses for the collection of payments due or to become due or for the enforcement of performance or observance of any obligation or agreement on the part of the Developer under this Agreement, the Developer agrees that it shall, within ten (10) days of written . demand by the EDA pay to the EDA the reasonable fees of such attorneys and such other expenses so incurred by the EDA; provided, that the Developer shall only be obligated to make such reimbursement if the other party prevails in such collection or enforcement action. ARTICLE VII. ADDITIONAL PROVISIONS Section 7.1. Restrictions on Use. The Developer agrees for itself and its successors and assigns and every successor in interest to the Property, or any part thereof, that the Developer and such successors and assigns shall devote the Property to, and only to, and in accordance with, the uses specified in the City Code. Section 7.2. Equal Employment Opportunity. The Developer, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in this Agreement it will comply with all applicable federal, state and local equal employment and nondiscrimination laws and regulations. Section 7.3. Conflicts of Interest. No member of the governing body or other official of the EDA shall have any financial interest, direct or indirect, in this Agreement, the Project or any contract, agreement or other transaction contemplated to occur or be undertaken thereunder or with respect thereto, nor shall any such member of the governing body or other official participate in any decision relating to the Agreement which affects his personal interest or the interest of any . corporation, partnership or association in which he is, directly or indirectly, interested. No member, 113774 14 . . . official or employee of the EDA shall be personally liable to the Developer or any successors in interest, in the event of any default or breach by the EDA or for any amount which may become due to the Developer or successor or on any obligations under the terms ofthe Agreement. Section 7.4. Waiver and Release by Developer. The Developer hereby waives, releases and forever discharges the EDA from any claim for costs incurred in preliminary plans, specifications, site testing improvements, professional fees or legal fees in connection with the Project. Section 7.5. Titles of Articles and Sections. Any titles of the several parts, Articles and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 7.6. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested or delivered personally; and (a) In the case of the Developer, is addressed or delivered personally to: Joseph M. Heinen 1200 Willowbrook Drive Wayzata, MN 55391 (b) In the case of the EDA, is addressed or delivered personally to: Economic Development Authority in and for the City of Farmington City ofFannington 325 Oak Street Farmington, MN 55024 with a copy to: Farmington Economic Development Authority Attorney Andrea McDowell Poehler CAMPBELL KNUTSON Professional Association 1380 Corporate Center Curve, Suite #317 Eagan, Minnesota 55121 Telephone: (651) 452-5000 (c) Either Party may, upon written notice to the other Party, change the address to which such notices and demands are made. Section 7.7. Disclaimer of Relationship. The Developer acknowledges that nothing 113774 15 contained in this Agreement nor any act by the EDA or the Developer shall be deemed or construed . by the Developer or any third person to create any relationship of third-party beneficiary, principal and agent, limited or general partner or joint venture between the EDA and the Developer. Section 7.8. Covenants Running with the Land. The terms and provisions of this Agreement shall be deemed to be covenants running with the Property and shall be binding upon any successors or assigns of the Developer and any future owners or encumbrancers of the Property. Section 7.9. Counterparts. This Agreement is executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 7.10. Law Governing. This Agreement will be governed and construed in accordance with the laws of Minnesota. Section 7.11. Facsimile Signature. The parties hereto acknowledge and agree that in order to expedite the signing of this Agreement and the processing, and review and compliance with the terms hereof, the parties may utilize facsimile equipment to transmit and convey signatures hereto and such other information as may be necessary. With respect to any such transmission bearing a signature for any party hereto and on which the receiver is or may be reasonably expected to rely, than if such a facsimile transmission is corroborated by regular facsimile printout showing the telephone number from which transmitted together with a date and time of transmission, it shall be binding on the sending party and may be relied upon by the party receiving the same. The sending party hereby acknowledges such reliance and weighs any defenses to the use of such documents or . signatures. . 113774 16 . . . IN WITNESS WHEREOF, the EDA has caused this Agreement to be duly executed in its name and behalf, and the Developer has caused this Agreement to be duly executed in its name and behalf, on or as of the date first above written. Economic Development Authority in and for the City of Farmington By: Its President By: Kevin Carroll Its Executive Director JOSEPH M. HEINEN 113774 17 STATE OF MINNESOTA) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this _ day of , 2006, by and Kevin Carroll, the President and Executive Director, respectively, of the Economic Development Authority in and for the City of Farmington, Minnesota, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the public body corporate and politic. Notary Public STATE OF MINNESOTA) )ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of 2006, by Joseph M. Heinen. Notary Public DRAFTED BY: CAMPBELL KNUTSON, P.A. 1380 Corporate Center Curve, Suite #317 Eagan, Minnesota 55121 Telephone: (651) 452-5000 113774 18 . . . . . . EXHIBIT" A" LEGAL DESCRIPTION OF THE PROPERTY Parcell: That part of Lots 5 and 6, Block 23, Town of Farmington, Dakota County, Minnesota, described as follows: Beginning at a point on the West line of Lot 6, Block 23, Town of Farmington, Dakota County, Minnesota distant 20 feet North of the Southwest 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 Parcel 2: All that part of Lots 7 and 8, Block 23, Town of Farmington, Dakota County, Minnesota, described as follows: Beginning at the Northwest 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