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HomeMy WebLinkAbout11-20-00 m CO C0 M O N (3) N M LL LO N OD �- 00 N N 6 t F- a d 00 Q � a O n M O N W N CN H E rai 6 N d7 C� n U a � m (D u-) r � xz N a o a E - a r a P- m M , cLO V U a U N = U Qo ti qt M r— r- N M CITY OF HASTINGS Monday COUNCIL MEETING 7:00 P.M. DATE: November 20, 2000 I. CALL TO ORDER: II. ROLL CALL: III. DETERMINATION OF QUORUM: IV. APPROVAL OF MINUTES: Approval of Minutes of the Regular Meeting of November 6, 2000 and the Special Meeting of November 9, 2000 V. COUNCIL ITEMS TO BE CONSIDERED: VI. CONSENT AGENDA: The items on the Consent Agenda are to be acted upon by the City Council in a single motion. There will be no discussion of these items unless a Councilmember or citizen so requests, in which event the items will be removed from the Consent Agenda to the appropriate department for discussion. 1. Pay All Bills As Audited 2. Snow Removal Agreement 3. Schedule Public Hearing — Solid Waste Collection Rate Adjustment 4. Pay Estimate #6, 2000 Improvement Program, Richard Knutson, Inc., $172,007.03 5. Accept Proposal, Bolton & Menk Engineering Services, for Project 2001-1, 4th Street and General Sieben Drive 6. Accept Addendum to Proposal, Bolton & Menk, Lock and Dam Access Road - Building Demolition 7. Approve Fourth Street Right-of-Way Agreement 8. Adopt Special Assessment-510 River St. 9. Approve Joint Powers Agreement for Dakota County Drug Task Force 10. Approve Transfer of 3.2% Beer License from Pizza Hut to Sky Ventures, LLC 11. Certification of Delinquent Annuals VII. AWARDING OF CONTRACTS & PUBLIC HEARING: 1. Public Hearing--Proposed Modification to Downtown Redevelopment Area Plan and TIF Plan aria Proposed Tax Increment District No. 3 for the Guardian Angels Redevelopment VIII. REPORTS FROM CITY STAFF: A. Public Works B. City Planner 1. First Reading & Order Public Hearing for Rezoning Bailey Ridge from R-1 to R-3 PRD 2. Site Plan/Development Agreement—Green Lawn Underground Sprinklers C. Administrator 1. Resolution--Approving Modification to Downtown Redevelopment Area and TIF Plan and Establishment of Tax Increment Financing District No. 3 (Qualified Housing District) 2. Land Acquisition Agreement IX. COMMENTS FROM AUDIENCE: X. UNFINISHED BUSINESS: XI. NEW BUSINESS: XII. REPORTS FROM CITY COMMITTEES, OFFICERS, COUNCILMEMBERS: XIII. ADJOURNMENT: Next Regular City Council Meeting on Monday, December 4, 2000 Hastings, Minnesota November 6,2000 The City Council of the City of Hastings, Minnesota met in regular meeting on Monday, November 6, 2000 at 7:00 p.m. in the City Hall Council Chambers, 101 4rn Street East, Hastings, Minnesota Members Present: Councilmember Yandrasits, Riveness, Simacek, Johnson, Hicks, Moratzka&Mayor Werner Members Absent: None Staff Members Present: David Osberg, City Administrator; Shawn Moynihan, City Attorney; Matt Weiland, City Planner; Tom Montgomery, Public Works Director; Marty McNamara,Parks & Recreation Director; and Melanie Mesko, Administrative Assistant/City Clerk Approval of Minutes Mayor Werner asked if there were any corrections or additions to the minutes of the regular meeting conducted October 16, 2000 and hearing none approved the minutes as presented. Council Items to be Considered City Administrator Osberg requested that two items be added to the Consent Agenda: The approval of the replacement squad car and approval of a street closing for Gobble Gait 2000 be added to the Consent Agenda. Moved by Councilmember Yandrasits, seconded by Councilmember Simacek, to add those two items to the Consent Agenda. 7 Ayes;Nays,None. Consent Agenda Moved by Councilmember Johnson, seconded by Councilmember Simacek, to approve the Consent Agenda as amended. 7 Ayes;Nays,None. 1. Pay All Bills As Audited 2. Dakota County Criminal Justice Information Integration Network 3. 1"Reading and Schedule Public Hearing-Annexation Ordinance 4. Donation of Land by Herman Fasbender 5. Resolution No. 11-1-00-Approval of Premise Permit for Lawful Gambling to be conducted at RJ's Tavern on-Main, 106 2nd Street East 6. Approval of Massage Establishment License and Request for Waiver of Fees 7. Resolution No. 11-2-00-Approval of Off-Sale Liquor License for Midwest Liquors, 982 General Sieben Drive 8. Pay Estimate#2, Repainting 4d' St. Tank, Champion Coatings, Inc., $78,185.00 Hastings City Council Minutes for Reeular Meeting on November 6,2000 Pe 2 of 6 9. Authorize Assessment of Sanitary Sewer Service Repair-510 River Street 10. Authorize Parks and Recreation Committee meeting on LeDuc House 11. Compensatory Time Carry Over-Police Department 12. Resolution No. 11-3-00-Wallin Park Youth Enrichment Grant Agreement 13. Resolution No. 11-4-00-Declaring Adequacy of Petitions and Order Feasibility Study a. Project#2001-7 Bohlkens 60h Addition b. Project #2001-8-Forest St. from 8th Street to 9th Street, and 91h Street from Forest to Walnut 14. Resolution No. 11-5-00-Empire &Rosemount Treatment Plants Expansion 15. Final Plat-Sieben 4th Addition Residential Solid Waste Collection Haulers License City Administrator Osberg stated that the Utility Committee of the City Council is recommending that the full City Council award the Residential Solid Waste and Recycling License to Waste Management. Moved by Councilmember Hicks, seconded by Councilmember Riveness, to approve the Residential Solid Waste Collection Haulers License to Waste Management and authorize the City Attorney and City Administrator to negotiate an agreement with Waste Management for the Residential Solid Waste Collection and Recycling Service. 7 Ayes;Nays,None. Miracle Recreation Equipment Company-Bleachers Civic Arena Moved by Councilmember Riveness, seconded by Councilmember Johnson, to award the contract to Miracle Recreation Equipment Company in the amount of $18,810.75 for bleachers for the new rink at the Civic Arena. These bleachers will meet all state safety code and ADA requirements. 7 Ayes;Nays,None. Public Hearing-Assessment Hearing for 1999 Street & Utility Improvement Program Mayor Werner opened the Public Hearing at 7:10 p.m. Rebecca Kiernan, 408 Ashland Street, stated that she felt she did not think she should be assessed for improvements as her previous curb and gutter was fine. Tom Field, 724 West 4th Street asked why property owners have to pay and why the City or the County doesn't pick up 100% of the cost. Edna Kilbride, 500 West 41h Street stated that the City took out her sidewalk and replaced it with a different one and she wanted to know why. Public Works Director Montgomery stated that he would get back to her with an answer. Hearing no further public comment, the public hearing for Project 1999-1 was closed at 7:15 p.m. Hastings City Council Minutes for Regular Meeting on November 6,2000 Pg 3 of 6 Public Hearing for Project 1999-4 Fourth Street from 5th to 17th Street The Public Hearing was opened at 7:15 p.m. Bruce Tosniss, 1517 Forest Street, questioned the amount of the assessment. Public Works Director Montgomery stated that actual project costs were $12.00 less per front foot than the estimate. Hearing no further public comments,the public hearing was closed at 7:18 p.m. Resolution No. 11-7-00-Public Hearing for Project 1999-5 Hampton Bank Alley The Public Hearing was opened at 7:19 p.m. David Fasbender, who owns apartments that abut the alley, stated that he felt the improvements did not help his property value. Hearing no further public comment, the public hearing was closed at 7:20 p.m. Public Hearing for Project 1999-6 There were no public comments to be heard. Moved by Councilmember Hicks, seconded by Councilmember Riveness, to approve Resolution No. 11-7-00 the adoption of the assessments for 1999 Street & Utility Improvements. 7 Ayes;Nays,None. Copy of resolution on file. Public Hearing Assessment Hearing for Traffic Signals at Hwy 55 and General Sieben Drive The Public Hearing was opened at 7:20 p.m. and there was no public comment to be heard. The public hearing was closed at 7:20 p.m. Moved by Councilmember Moratzka, seconded by Councilmember Hicks, to approve Resolution No. 11-8-00, adoption of Assessments for Traffic Signals at Highway 55 and General Sieben Drive. 7 Ayes;Nays,None. Copy of resolution on file. Street Vacation-2"d Street East The Public Hearing was opened at 7:21 p.m. City Planner Weiland stated that a petition has been received requesting the vacation of a portion of 2"d Street East between Lea Street and Bass Street. The reason for the vacation request is to provide more buildable area in front of the existing building and to line up a new home with the existing homes along 2"d Street. Hearing no further public comment the public hearing was closed at 7:25 p.m. Moved by Councilmember Yandrasits, seconded by Councilmember Riveness, to approve the street vacation for 2nd Street East. 7 Ayes;Nays,None. Rezoning—Riverdale (A to R-1) ' The Public Hearing was opened at 7:29 p.m. City Planner Weiland stated that this rezone request is consistent with the City's Comprehensive Plan and that this property has been identified for residential use in the City's Comprehensive Plans for the past 20 years. Weiland stated that the Planning Commission recommended approval of the Hastings City Council Minutes for Regular Meeting on November 6 2000 Pg 4 of 6 rezoning of the property to R-1 Low Density Residential at their October 9, 2000 Planning Commission meeting. Pat Rother, 2012 Nininger Road stated that she would like more thought put into the access for these homes and requested an EAW done. Ms. Rother presented a petition to the Council to keep green space. Mrs. Denn, 2036 Nininger questioned what kind of access will the County be providing. Hearing no further comments the public hearing was closed at 7:31 p.m. Moved by Councilmember Yandrasits, seconded by Councilmember Johnson, to approve the 2"d Reading for the Rezoning of Riverdale from A to R-1. 7 Ayes;Nays,None. Tree Aeration, Harold Featherstone Property Public Works Director Montgomery stated that he had been approached by Mr. Harold Featherstone to aerate his property to alleviate damage to oak trees that were damaged during the installation of underground utilities. Montgomery stated that Mr. Featherstone's request is for repair on his yard that is not in the City's right-of-way. Moved by Councilmember Hicks, seconded by Councilmember Moratzka, to not aerate Harold Featherstones land and establish a policy for this in the future and to communicate with contractors to be more careful in the future. 7 Ayes;Nays,None. Resolution No. 11-9-00-Order Feasibility Study for Extension of Sanitary Sewer and Water Utilities Greten Property Public Works Director Montgomery stated that the City Council is being requested to approve Resolution No. 11-9-00 ordering a feasibility study for Project 2001-9 Greten Property utility extensions and to require the Greten Property Developer to post a letter of credit in the amount of $50,000 prior to proceeding with work on the feasibility study. Moved by Councilmember Simacek, seconded by Councilmember Moratzka, to approve Resolution No. 11-9-00 ordering the Feasibility Study for the Greten Property. 7 Ayes;Nays,None. Copy of resolution on file. Discussion of Street and Utility Improvements Generated by Guardian Angels Block Development Public Works Director Montgomery stated that after review and preliminary design for water and sewer main replacements as part of the Guardian Angels street and utility improvements, staff is recommending the replacement of the galvanized water services rather than reconnecting them to a new water main. Due to the large amount of curb patching required when placing these services, staff is also recommending that Council consider street reconstructidn and amend the Guardian Angels Development Utility Replacement Feasibility Study to include street reconstruction. Hastings City Council Minutes for Regular Meeting on November 6, 2000 Pg 5 of 6 Councilmember Hicks stated that he would like a letter sent to all residents and have a public informational meeting before making this decision as it varies from previous Council approval. Public Works Director Montgomery asked for authorization to keep going on this project in order to get some costs together to be able to share with the residents. Councilmember Hicks stated the letter sent out should give a comparison of the entire cost compared to the reduced cost payment plan as approved by the Council. Moved by Councilmember Yandrasits, seconded by Councilmember Moratzka, to authorize Staff to develop a Feasibility Study for prices for street and utility improvements generated by the Guardian Angels Block Development and have a public informational meeting with the local residents. 7 Ayes;Nays,None. Special Use Permit for Temporary Fill in Floodplain-Surcharge New Road Alignment for Lock and Dam Road Moved by Councilmember Hicks, seconded by Councilmember Simacek, to approve the special use permit as presented. 7 Ayes;Nays,None. Minor Subdivision-1803 Westview Drive City Planner Weiland stated that staff has received an application and a request for a minor subdivision of property at 1803 Westview Drive. The request is to subdivide an existing lot into two separate lots. Weiland stated that the Planning Commission voted unanimously to recommend denial of the minor subdivision based on the following findings of fact: 1. Restricted covenants exist over the property; 2. Prior findings of the City Council; 3. Proposals contrary to the original intent of the Country Club Estates Plat; and 4. Proposal is detrimental to the original esthetic character, as the proposed lots are substantially smaller than the other lots in the subdivision. Larry McNamara, 1281 Southview Drive requested denial of the subdivision and stated that covenants run with the land and the Council has previously denied similar requests. Moved by Councilmember Moratzka, seconded by Councilmember Hicks, to prepare findings of fact for the denial of the minor subdivision request based on previous Council denials and covenants recorded against property. 3 Ayes;Nays, Moved by Councilmember Yandrasits, seconded by Councilmember Johnson, to approve the minor subdivision at 1803 Westview Drive with the conditions as outlined in the October 31, 2000 Planners Report. 4 Ayes; Nays, 3 Hastings City Council Minutes for Regular Meeting on November 6,2000 Pg 7 of 6 Final Plat-Bailey Ridge Todd Siewert, developer for the Final Plat at Bailey Ridge, requested that Council authorize a different street name than recommended by City Staff. Siewert had originally proposed Lukas Lane; discussions with City Staff provided the recommendation that proposed street instead be named 13Th Street to stay consistent with the street naming plan and also due to the fact that Lukas Lane sounds too close to Louis Lane, which is also located in the City. Moved by Councilmember Moratzka, seconded by Councilmember Riveness, to approve the Final Plat with Bailey Ridge with all staff recommendations as outlined in the November 2, 2000 Planners Report. 7 Ayes;Nays,None. Concept Plan-Century South (Greten Property) Moved by Councilmember Hicks, seconded by Councilmember Moratzka, to approve the Concept Plan for Century South. 7 Ayes;Nays,None. Adjournment Moved by Councilmember Simacek, seconded by Councilmember Johnson, to adjourn the meeting at 9:18 p.m. 7 Ayes;Nays,None. ATTEST Mayor City Clerk City of Hastings Special City Council Meeting Thursday, November 9, 2000 5:00 P.M. The City Council of the City of Hastings met in a Special City Council Meeting at 5:00 p.m. on Thursday, September 14, 2000 in the Volunteer Room at City Hall. Members Present: Mayor Werner, Councilmembers Hicks, Johnson, Yandrasits, Simacek, and Riveness. Members Absent: Councilmember Moratzka Staff Members Present: Dave Osberg, City Administrator Melanie Mesko, Administrative Assistant/City Clerk Resolution-- Canvass of 2000 General Election Results Administrative Assistant/City Clerk Mesko requested approval of a resolution canvassing the results of the 2000 General Election held on Tuesday,November 7,2000. The results for the City Councilmember Ward races are: Ward 1 Janette Yandrasits 1512 votes Ward 2 Turney E. Hazlet 895 votes Patrick Handlson 741 votes Ward 3 Ed Riveness 1535 votes Ward 4 Danna Elling Schultz 1337 votes Richard(Dick)Bond 927 votes The candidates in each ward receiving a plurality of votes have been elected to serve the position of Councilmember for the City of Hastings. Moved by Councilmember Johnson, seconded by Councilmember Simacek, to approve Resolution 11-12-00, Resolution on General Election,canvassing the results of the 2000 General Election. 6 ayes;Nays, none. Adiournment• Moved by Councilmember Simacek, seconded by Councilmember Johnson to adjourn the meeting at 5:03 p.m. 6 Ayes;Nays:None. Mike Werner Melanie Mesko Mayor Administrative Assistant/City Clerk vi-z MEMORANDUM TO: Honorable Mayor and City Councilmembers FROM: Dave Osberg, City Administrator DATE: November 16, 2000 SUBJECT: Snow Removal Agreement RECOMMENDED CITY COUNCIL ACTION It is recommended that the City Council take action approving the enclosed one year agreement with Ross Albertson for snow removal services at the City Hall, and various surrounding parking lots and other areas. No rate adjustment is proposed for the 2000- 2001 year. If David M. Osberg City Administrator CITY OF HASTINGS AGREEMENT FOR SNOW REMOVAL 2000-2001 This Agreement and fee schedule specify the work to be completed by Ross Albertson, 1332 Featherstone Road, Hastings, Minnesota, and the payments for the work to be made by the City of Hastings. The terms of this Agreement shall begin on November 21, 2000 and continue until May 1, 2001. 1.) Mr. Albertson shall be considered an independent contractor and shall provide evidence of comprehensive, liability and collision motor vehicle insurance, on all vehicles that will be used for snow removal operations, in amounts no less than that which is required by Law. The City of Hastings and the City Housing and Redevelopment Authority shall be named as additional insureds on the policy. The insurance, must include, at a minimum, public liability, personal ^` injury liability and motor vehicle insurance, all in the amounts of at least $1,000,000 per occurrence,and per year. This shall include an endorsement identifying the City of Hastings and the City Housing and Redevelopment Authority as an additional insured. Additionally, Mr. Albertson will be required to provide an agreement,holding harmless and agreeing to indemnify the City of Hastings and the City Housing and Redevelopment Authority,for damages that either may suffer, due to the negligence of Mr. Albertson. 2.) Contractor shall plow all snow,including sanding,de-icing and salt,from all sidewalks,steps and parking lots described on the attachment,and identified on the attached map. This does include the sidewalk on the north side of the Public Square, adjacent to the street, west of the main sidewalk(which runs north/south leading to the City Hall.) 3.) Any snowfall of 2" or more must be plowed from sidewalks and steps within 12 hours,and from parking lots within 24 hours. Iced areas on sidewalks and steps must be cleared and sanded as soon as possible, and in all cases within 12 hours. 4.) Contractor shall provide all equipment and supplies,except for de-icer for concrete and calcium chloride for all other areas, which is available at the Street Department. Contractor shall be responsible for pick up at the Street Department. 5.) If Mr. Albertson is disabled, or otherwise unable to perform these services, the agreement will be canceled, and the retainer shall be-pro-rated accordingly for the month in which services are unable to be performed. SNOW REMOVAL AREAS AND FEES AREA ONE Sidewalks adjacent to Oliver's Grove Park, abutting Second Street and Ramsey Street. Sidewalks adjacent to the old grain elevator site,abutting Second Street and Tyler Street,and the sidewalks adjacent to the Parking lo adjacenttat to the vacant lot anStreet and Tyler d sidewalk atlks 3 a andcRamsent to y1Strecipally owned parking lot. Sidewalk This area does include the steps behind the Johnson Hardware Parking Lot. In addition,clear snow and ice buildup at the sidewalk adjacent to 222 Ramsey Street. Snow Season Retainer: $19100.00 Per Event Charge: $ 180.00 AREA TWO The sidewalks on the south and west of the parking lot at Sibley and 4'Street, and the sidewalks on all four sides of the block bounded by 3'Street,4' Street, Sibley Street and Vermillion Streets. This does not include the Police Parking Lot(apron) in front of the garage doors. Snow Season Retainer: $19100.00 Per Event Charge: $ 165.00 AREA THREE The sidewalks inside the four sides of the block bounded by 3`d Street, 41 Street, Sibley Street and Vermillion Street. This includes all sidewalks leading to the doors of both the Police Station and City Hall, and three sets of steps: a.) adjacent to Vermillion Street; b.)the entire step area on the north side of City Hall; c.) adjacent to the Police Station. Snow Season Retainer: $19100.00 Per Event Charge: $ 150.00 The Snow Season Retainer shall be paid as follows: a.) Execution of the Agreement: $1,100.00 b.) January 1,2001 $1,100.00 c.) March 1, 2001 $1,1 Michael D. Werner,Mayor Ross Albertson Melanie Mesko, City Clerk (SEAL) --------------------- = LW CD Eddy Strcc, �---� — 10a 0 VGrmMiOn Street CD Ilei. — 3: r_fcY Street v o — i r RM S ? � E • v 4 _ L O ' Aamgey Street ' I • 1 i ' I I a I _ . 1'Yier Street ; _ w"1 0000 V1-3 MEMORANDUM TO: Honorable Mayor and City Councilmembers FROM: Dave Osberg, City Administrator DATE: November 16, 2000 SUBJECT: Schedule Public Hearing for Residential Solid Waste Collection Rate Decrease RECOMMENDED CITY COUNCIL ACTION It is recommended that the City Council take action scheduling a public hearing for Monday December 4, 2000 to receive comments from the public on the proposed rate decrease for residential solid waste collection. BACKGROUND City Ordinance requires the City Council to conduct a public hearing prior to passing on any rate adjustment for residential solid waste collection. Waste Management is proposing to decrease the residential solid waste collection rates effective January 1, 2001. Z ,!..,/aze.14,0, David M. Osberg City Administ or City of Hastings City Council Public Hearing Notice is hereby given that the Hastings City Council will conduct a Public Hearing on Monday December 4, 2000 at 7:00 PM in the Council Chambers at the Hastings City Hall, 101 East 4th Street, to hear public comment on the residential solid waste collection rate decrease proposed by Waste Management. Any person interested in commenting on the proposed solid waste collection rate decrease will be given an opportunity to do so. David M. Osberg City Administrator Publish: November 23, 2000 VI-4 w w o o w m m vcomovoo r4 r� L6 ri r.: of M M Mr` � O V (O LO r , �-- O N 1r� M � ONm O O v LO 'v I- N M VMNN � f� b4 fR EPr di EA EPr � JEW �Y w D ca LO a3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Z 6666666 W (f} U31 Ef!6% O O O C OOO a) c O N co O) W c �ycy� 0 W a Cl) Z O p j F- m Moots LnoLnO Q Z LLI Q vovo oC) 0000 a (J .00 NONO Mc- �1' NM y C C r- W m N cr > > O r F- W O C@ to co b3 In r (O h O O � r LL W O. N O N Ln EA OI Ln O M N Ln M OZ r 7 -0 69 69 LO (0r- COSTO F-- W a) YL � O LUQ N U a) L O M LO N N C aI O > LOco @ c rn V N a (° z � � m v w o F N M IT Ln CO y W c a u m � >1 d ar c (D > w vv a) ❑ cE ¢ Q E w o o 'ccm > c g ❑ Z ° O CL m � aO O CU U Q a� w � Q U) cn > N N O �- J 1 E ca z a° ° F- g ol CJ U) r H o m w Q H CD n o cu U r .Q Q Q VI-5 MEMO To: Honorable Mayor and City Council Members From: Tom Montgomery Subject: Accept Bolton&Menk Proposal, Project 2001-1, General Sieben Dr. and 4' Street Engineering Services Date: November 15, 2000 Enclosed for Council approval is a proposal from Bolton &Menk for the feasibility study, design, and construction staking and inspection for Project 2001-1, General Sieben Dr. and 4' Street improvements. This project will be a Municipal State Aid project and staff is proposing using MSA funds to pay the engineering costs. BOLTON & MINK , INC. Consulting Engineers & Surveyors 1515 East Highway 13 • Burnsville, MN 55337-6857 Phone (952) 890-0509 • FAX(952) 890-8065 November 13, 2000 Mr. Tom Montgomery, P.E. Director of Public Works City of Hastings 101 East 4" Street Hastings, MN 55033-1955 RE: Proposal for Professional Engineering and Surveying Services 4'hStreet West and General Sieben Drive - City of Hastings, MN City Project No. 2001-1 Dear Mr. Montgomery: Bolton & Menk, Inc. is pleased to offer the following proposal for the above referenced project. This proposal is based upon my discussion with you on October 30,2000. As apart of this proposal, we have reiterated the scope of work and have included an estimate of fees for our professional engineering and surveying services. I. Scone of Work In conjunction with the new high school being constructed in the City of Hastings,the City is proposing to improve segments of 46' Street West and General Sieben Drive to accommodate the anticipated increase in traffic volumes along these roads.Those segments scheduled for improvements include 4' Street West between General Sieben Drive and Pleasant Drive, and General Sieben Drive between 4' Street West and Trunk Highway 55. These streets are designated Mn/DOT State Aid routes. Anticipated improvements along these corridors include the reconstruction of the existing streets,and the extension of bituminous bike paths along the north side of 4'Street West and both sides of General Sieben Drive. No major public utility improvements are anticipated at this time. As a result of the proposed road and trail improvements along General Sieben Drive, additional right-of-way will need to be acquired and platted. It is our understanding that the City has completed all of the necessary field topography required for preliminary and final design, and that Braun Engineering has been retained to provide geotechnical evaluations and recommendations for the project. 1 MANKATO • FAIRMONT • SLEEPY EYE • BURNSVILLE • WILLMAR AMES, IA • LIBERTY, MO An Equal Opportunity Employer Professional engineering and surveying services requested of Bolton & Menk, Inc. to complete the improvements include the following: A. Preliminary Design and Cost Estimate Bolton & Menk, Inc. will develop preliminary construction plans utilizing City- furnished topography for the purposes of planning and cost estimating. The preliminary design of this project will illustrate the proposed street and trail surface improvements as well as any proposed sanitary sewer, watermain, or storm sewer improvements within the project area. A preliminary construction cost estimate for these improvements will also be prepared. It is our understanding that these preliminary designs and cost estimates will be used in a Feasibility Report prepared by the City. Illustrative figures of the proposed improvements will be created for use in the Feasibility Report if the City desires. B. Right of Way Legal Descriptions and Monumentation Based on the preliminary design of the General Sieben Drive improvements,Bolton &Menk, Inc. will prepare legal descriptions and create drawings for any additional right of way acquired along this corridor. Monumentation(property corners)for the proposed right of way will be set in the field. C. Final Design Including Plans and Specifications Final design for the 4'Street West and General Sieben Drive improvements will be completed based on the preliminary design and Feasibility Report. Detailed construction plans will be prepared illustrating plan and profile views of the street and utility improvements. Cross sections will include street and trail improvements. Special Provisions and construction cost estimates will also be prepared.Final plans will be designed to meet Mn/DOT State Aid standards and will be submitted for review by Mn/DOT's State Aid Office. D. Construction Staking Construction staking indicating cuts to the line and grade of the proposed utilities will be performed at intervals of no more than 100 feet. Curb stakes will be set along both sides of the roadways at intervals of no more than 50 feet. E. Construction Observation and Administration Full time construction observation is proposed for this project. Administration duties include bidding assistance, attendance at the preconstruction meeting and required project meetings, review of shop drawings and preparation of pay estimates. The projected fee estimate is based upon a four month, full time construction schedule. 2 II Estimate of Fees Our proposed engineering and surveying fees for the tasks described above are estimated as follows: A. Preliminary Design and Cost Estimate $ 23,200.00 B. Right of Way Legal Descriptions and Monumentation $ 3,500.00 C. Final design $ 49,600.00 D. Construction Staking $ 10,000.00 E. Construction Observation and Administration 1; TOTAL ESTIMATED FEES $143,100.00 Our fee of$143,100.00 is an estimate based on the scope of work described above. We propose to work on an hourly basis,not exceeding this amount,based on the scope of work. Please contact us once you have had a chance to review this proposal so we may draft a formal agreement. We are prepared to begin work on this project immediately. We look forward to providing these professional engineering services to you on this project and appreciate your consideration of Bolton & Menk, Inc. Please contact us if you have further questions, need additional information, or wish to discuss this proposal. Sincerely, BOLTON&MENK, INC. '-�/ reA 4 "_ Marcus A. Thomas,P.E. Project Manager cc: Mark D. Kasma,P.E.,BMI Office Manager FAProposals\HAS'nProposal 111000.wpd 3 VI-6 MEMO To: Honorable Mayor and City Council Members From: Tom Montgomery Subject. Accept Bolton&Menk Proposal,Project 2001-1, General Sieben Dr. and 4' Street Engineering Services Date: November 15, 2000 Enclosed for Council approval is an addendum to the Bolton &Menk proposal for the Lock and Dam access road and bike trail improvements engineering services to include preparation of specifications for the demolition of the Lake Rebecca bath house and vault toilet. ADDENDUM NO. 1 AGREEMENT FOR PROFESSIONAL SERVICES LOCK AND DAM ROAD/RIVERFRONT REDEVELOPMENT DEMOLITION PLAN CITY OF HASTINGS,MINNESOTA This Addendum shall become a part of the original Agreement for Professional Services, dated November 15, 1999. This addendum is in regards to the demolition of the existing beach house and restroom facility at Lake Rebecca. I.A. DEMOLITION PLAN For the purposes of this Addendum,Basic Services to be provided by the CONSULTANT for the Demolition Plan are outlined as follows: 1. Pre-demolition survey of the property including the beach house and restroom facility. 2. Plans and specifications illustrating the removal of the beach house and restroom facility and the disconnection and removal or abandonment of all public utilities. The removal and/or abandonment of underground sewage tanks or cells will be included in the plans and specifications. Private utilities such as gas and electric would be managed by their respective owners. Site restoration including backfill requirements will also be described. 3. A pre-bid meeting with potential contractors will be performed if required. It is unknown by the CONSULTANT if there is a presence of hazardous material on the site. If there are hazardous materials involved in the demolition of these buildings, BMI will coordinate with the hazardous materials consultant of the CLIENT's choice or we can offer suggestions of qualified firms. The hazardous materials consultant would be contracted directly with the CLIENT. This separate consultant would also be responsible for supervising the abatement and disposal of hazardous materials prior to demolition. Typical items that may be encountered and should be addressed by a hazardous materials consultant include, but are not limited to the following: 1. Asbestos abatement 2. Abatement of contaminakqd soils 3. Demolition of underground tanks (not including sewage storage facilities) 4. Abatement of other hazardous material including mercury, PCBs, etc. If it is determined that an Environmental Assessment Worksheet (EAW) or other special documentation or permitting is required, BMI will offer those services under a separate contract. Page 1 of 2 I.B. ENGINEERING COSTS The engineering cost for the above described services is $3,700.00 I.C. SIGNATURES This instrument embodies the whole agreement of the parties, there being no promises, terms, conditions, or obligation referring to the subject matter other than contained herein. This Agreement may only be amended, supplemented, modified, or canceled by a duly executed written instrument signed by both parties. IN WITNESS WHEREOF,the parties hereto have caused this Agreement to be executed in their behalf. CLIENT: CITY OF HASTINGS CONSULTANT: BOLTON&MENK, INC. Michael Werner, Mayor Mark D. Kasma,Burnsville Office Manager Attest: Melanie Mesko, City Clerk Myrna McInenly Date Date Page 2 of 2 VI-7 MEMO To: Honorable Mayor and City Council Members From: Tom Montgomery Subject: Approve 4th St. Right of Way Agreement Date: November 15, 2000 Enclosed for Council approval is an agreement with the Conzemius family for the acquisition of the 4' St. right of way connecting Farm to Pleasant Street. The road and utility construction was completed in 1999. The agreement calls for a$176,000 credit against the Conzemius property's assessment of$243,830.15 for the 4' Street improvements. AGREEMENT BY AND BETWEEN THE CITY OF HASTINGS AND CONZEMIUS FAMILY This Agreement is made and entered into as of the day of 000,by and between A.J.C. K'LEEN Associates, a Minnesota General Partnership, Quaas, formerly known as Kathleen L. Lipo, also known as Kathl .Lipp C. Quaas, as trustee of the Kathleen C. Quaas Living Trust Under A ment d the 2 , 1995,Lawrence N. Conzemius and Lawrence N. Conte than of Thomas nzemius, also known as Thomas Conzemius, Ward, hereafter all d to as "Conzemius Family" and City of Hastings, a Minnesota Muni ' oration, BACKGROUND A. In August 1999, Conze s Fami d the tered into an Agreement whereby Conzemius Family agre cone the Cit ermanent street and utility easement and a tempgAV constructi ent ov y described on Exhibit "A" (Easement Parcels). B. the to August 1999 Agreement, the parties agreed to continue egotiate acquisition of the Easement Parcels. C. Pursuant erms of the August 1999 Agreement, the City has constructed the ion of West 4`s et from Farm Street to Pleasant Drive, as well as the construction of idewalk and trail in that right-of-way. The parties then continued#to negotiate and have now reached an agreement for the acquisition of the permanent and temporary easements over the Easement Parcels. 1 E. The parties, by this Agreement, are memorializing the terms of the negotiated Agreement. NOW, THEREFORE, IT IS AGREED by all parties as follows: 1. Pursuant to the terms of the August 1999 Agreement, Conzemius F 1y shall convey to the City, if they have not already do a so,th nt street and utility easement and temporary constructi sement c e August 1999 Agreement. 2. In return for those two easements,the Cit compensate Conzemius Family$176,000.00 as payment for all sts, o sociated with the granting of the permanent street ement porary construction easement. This $176,000. ill be n paragraph 3. 3. It is agreed that Con s F will rec e a credit of$176,000.00 against the assessments to b ied on 119- 0-019-17 (Assessed Parcel)for the est 4d' sion a unicipal improvements. The amount to be agai sed Parcel will be$243,830.15. 4. the Ci ees to reimburse Conzemius Family$3,500.00 for their apprais iated with the City's acquisition of the West 4`, Street permane treet and utility and temporary construction easements. 5. The also shall be responsible to compensate Conzemius Family's 1999 cultural tenant for his crop loss suffered in 1999 as a result of the City's construction over the Easement Parcels. 2 6. This Agreement is a full, final and complete settlement of all claims, of any type, by either party against the other as a result of the acquisition of the easements over the Easement Parcels. 7. City acknowledges that Conzemius Family are entering into this A ment under the threat of condemnation. Dated this day of , 2 CITY D AST a Min Munic anon By: chael erner, Mayor (SEAL) Melanie Mesko, Administrative Asst./City Clerk A.J.C. K'LEENASSOCIATES, a Minnesota General Partnership , 2000. By: Its: Dated: , 2000. KATHLEEN C. QUAAS, formerly known as KATHLEEN L. LIFO, also known as KATHLEEN L. L.IPPO 3 Dated: 2000. RALPH QUAAS, also known as RALPH H. QUAAS KATHLEEN C QUAAS, as Trustee of the KATHLEEN C. QUAAS Living T nder Agreement dated the 23'd Of uary, 1995. �u Dated: , 2000. By: t A,,, KA NC AAS,Tru Dated: 12000. LA N. C Dated: " 2000. MA T. C S r Dated: , CE N. CONZEMIUS Guardian of G. Conzemius, also known as omas Conzemius,Ward. ACKNOWLEDGMENT S E OF MINNES A) )ss. OF TA ) regoing instrument was ack iowledged before me this day of , 2000, by Michael D. Werner and David M. Osberg, the Mayor and City Administrator of the City of Hastings, a Minnesota Municipal Corporation. NOTARY PUBLIC 4 ACKNOWLEDGMENT STATE OF MINNESOTA) )SS. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this_day of , 2000, by - and , the Chair and Cl of endent School District No. 200,Hastings, Minnesota. N LIC Nov ACKNOWLEDG NT STATE OF ) )SS. COUNTY OF ) The foregoing instrument w owle d befo a this_day of , 2000, by , the Ge artne A.J.C. en Associates, a Minnesota General Partnership, on behalf of the p P. NOTARY PUBLIC KNOWLEDGMENT STA OF WASHING )SS C TY OF e fore instrument was acknowledged before me this_day of , 2000, as,formerly known as Kathleen L.Lipo, also known as Kathleen L.Lippo and R so known as Ralph H. Quaas, Wife and Husband. NOTARY PUBLIC 5 ACKNOWLEDGMENT STATE OF WASHINGTON ) )ss. COUNTY OF ) The foregoing instrument was acknowledged before me this_day of 2000, by Kathleen C.Quaas,as Trustee of the Kathleen C.Quaas Living Trust er A ment dated the 23rd day of February, 1995. NOTARY LIC ACKNOWLEDG STATE OF CALIFORNIA ) )ss. COUNTY OF ) The foregoing instrument was ac edge day of , 2000, by Lawrence N. Conzemius and Mary T onze , Hus ife. UBLIC KNOWLEDGMENT STATE OF ) S. COUN F The foregoing in ent was acknowledged before me this—day of , 2000, b wrence N. Conze us, as Guardian of the Estate of Thomas G. Conzemius, also known as s Conzemius, d. NOTARY PUBLIC THIS INSTRUMENT WAS DRAFTED BY.• FLUEGEL &MOYNIHAN P.A. 1303 South Frontage Road, Suite 5 Hastings, MN 55033 (SMM) 6 vi-s CITY OF HASTINGS DAKOTA COUNTY,MINNESOTA Resolution No. RESOLUTION ADOPTING THE ASSESSMENT FOR THE SANITARY SEWER SERVICE REPAIR AT 510 RIVER STREET WHEREAS, the property owners at 510 River Street have requested that the City of Hastings fund their sanitary sewer service repair costs and assess these repair costs against their property over a period of ten years, and WHEREAS, the property owners at 510 River Street have signed a waiver of procedural irregularity and assessment appeal, NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS: 1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein, and each tract of land therein included is hereby found to be benefitted by the constructed improvement in the amount of the assessment levied against it. 2. Such assessment shall be payable in equal annual installments extending over a period of ten (10) years, the first of the installments to be payable on or before the first Monday in January 2001, and shall bear interest at the rate of 6.5% per annum from December 6, 2000. To the first installment shall be added interest on the entire assessment from December 6, 2000 until December 31, 2001. To each subsequent installment, when due, shall be added interest for one year on all unpaid installments. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole or part of the assessment on such property with interest accrued to the date of the payment to the City Clerk, except that no interest or Dakota County assessment certification fee`shall be charged if the entire assessment is paid within 30 days from the adoption of this resolution; and he may, at any time thereafter, pay to the County Treasurer the entire amount of the assessment remaining unpaid with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before December 30, or interest will be charged through December 31 of the next succeeding year. 4. The clerk shall forthwith, transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the Count, and such assessments shall be collected and paid over in the same manner as other municipal taxes. 5. The amount specially assessed is hereby declared to be $2,623.95. ADOPTED BY THE CITY COUNCIL OF HASTINGS, MINNESOTA, THIS 20"' DAY OF NOVEMBER, 2000. Ayes: Nays: Michael D. Werner, Mayor ATTEST: Melanie Mesko, City Clerk SEAL CITY OF HASTINGS 1010 Street East•Hastings,MN 55033-1955 651-437-4127•Fax: 651-437-7082 STATEMENT OF SPECIAL ASSESSMENTS Property ID Number: 19-10500-202-32 Property Owner: Karen R. Egeberg& Legal Description: N 100 ft. of E %2 of Lot 17, Wendy Loomis Blk 32 and N 100 ft. of Lots 18 thru 20, Blk 510 River St. 32, Original Town of Hastings Hastings, MN 55033 This is a Statement of Special Assessments against your property. The total assessment against your property is: $2,623.95 The Hastings City Council will adopt this proposed assessment against your property for sanitary sewer service repair to your property at 510 River Street at their Council meeting on November 20,2000. The City Council will adopt Special Assessments for the following improvements to your property: Sanitary Sewer Service Repair $2,623.95 A$20.00 per assessment Dakota County Certification Fee will be added to the assessment total and the assessment may be paid in 10 annual installments with interest at 6.5%per annum. The first year's interest will run from 30 days after the date of the Council's confirmation of this assessment to December 31 of the following year. The law provides that unpaid assessments become a lien against the property. As of the date of this notice the City has not adopted any deferment procedure pursuant to Section 435.193 to 435.195 of the Minnesota Statutes. If you have any questions about your assessment,please contact Tom Montgomery,Public Works Director at 437-4127. Hastings on the Mississippi VII-9 HASTINGS P MEMO POLICE DEPARTMENT TO: Mayor Mike Werner City Administrator Dave Osberg City Council Members FROM: Chief Mike McMenomy DATE: November 15, 2000 SUBJECT: Joint Powers Agreement, Dakota County Drug Task Force This memo is to request Council approval for this department to again be involved in the Dakota County Drug Task Force as we have been for the past 12 years. The Joint Powers Agreement is basically the same as in previous years, in which we have agreed to schedule and assign,Hastings officers to the Drug Task Force Unit, to investigate drug cases within the city of Hastings as well as other cities that are members of the Drug Task Force in Dakota County. MCM/dj VI-10 MEMORANDUM To: Mayor Werner and City Councilmembers From: Melanie Mesko, Administrative A5515tant/City Clerk Date: November 16, 2000 Re: Transfer of 3.2% Liquor License at Pizza Hut,1330 South Frontage Road Council Action Requested: Approve the transfer of 3.2% liquor license at Pizza Hut from Pizza Hut of the Northwest to 5ky Ventures, LLC, pending receipt of all paperwork and successful completion of background check. Background: Staff received an application from 5ky Ventures, LLC to transfer the current 3.2% liquor license at Pizza Hut. 51cy Ventures have completed all application materials and a background check 15 being conducted. Attachments• 1. Resolution Application materials on file CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION NO. 11- -00 RESOLUTION APPROVING APPLICATION FOR TRANSFER OF LIQUOR LICENSE AT PIZZA HUT WHEREAS, Sky Ventures, LLC has presented application to the City of Hastings to transfer the liquor license at Pizza Hut, 1330 South Frontage Road, Hastings, Minnesota; and WHEREAS, all necessary paperwork has been received and a background check is currently being conducted by the Hastings Police Department. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hastings that the Mayor and Administrative Assistant/City Clerk are authorized and directed to sign this resolution transferring the 3.2% liquor license at Pizza Hut, 1330 South Frontage Road, from Pizza Hut of the Northwest to Sky Ventures, LLC pending successful completion of background check. ADOPTED BY THE CITY COUNCIL OF THE CITY OF HASTINGS THIS 20'h DAY OF NOVEMBER, 2000. Ayes: Nays: Absent: Michael D. Werner Mayor Melanie Mesko Administrative Assistant/City Clerk (SEAL) VI-11 MEMO TO: Honorable Mayor and City Council members FROM: Lori A. Webster, Finance Director RE: Certification of Delinquent Annuals DATE: Thursday, November 16, 2000 Attached you will find the list of outstanding balances on delinquent final utility bills to be certified to Dakota County as annual assessments. These billings are over 60 days delinquent which then qualifies them for certification. Certifications will be made to the County on or before December 1, 2000 to for placement on the 2001 property tax statements. If you should have any questions regarding this information, please feel free to contact either Kim Niederkorn or myself. pN OO �C?• O_ CS O O O O O O Q Q Q Q N M M p Id. OM /71 (gyp M C6 rn C? W O oo Q n N ! r Cl) N a) N C �SCO pN �p� O y�yrQt) C(p m00 T O S GO`.-' nO C LLOj {L G �� p-O w �'g U Y 0 g Z M t D(V N O Cl) N M r M tOD MOOD 04 (MO 1�# r rot m 0 ak 4'] �Xk LOXk Nat CD CD W Q 0 Q C M � EL O E m a_a)i C!B ii c N N p N O p 0 C N N U T c CC v ? m :::a,:-::: � tr-° � Y �' yam• ¢ � O l0(J st p�j R co _m FOD n to th CV (l��p .�- %::".�''<%:is ui FA Fri Fri ' W L�3 N m M M M M a)M N M M 1� 1p� Fa C> > MV lOp 40') Oto t�J J ll') .0 l0 4'J Q' 1p � ZLOLO YZ � O Z Z a)Z V' •C N N h to G N o c O c ?i C N C j a o C x0 m Z m CO 'w M U:- 1Ll � O:.... m EL mm 0- O 8 �y� • r O k .� to H VV � p (y •--1 U 0 p a 0 o U '0 m H •�C^y .p is >` O f0 L T }T C 7 C=r ry C y S IV t t t iF iF it # iF VIII-B-1 Memo To: Mayor Werner and City Council From: Matthew Weiland, City Planner Date: November 16, 2000 Subject: 11T Reading/Order Public Hearing-Rezone Bailey Ridge (R-1 Low Density Residence to R-3 PRD Medium High Density Residence Planned Residential Development Siewert Construction has requested the rezoning of property (legally described below) from R- 1 Low Density Residence to R-3 PRD Medium High Density Residence Planned Residential Development . That part of the south 415 feet of the north one half of the southwest quarter of Section 29, Township 115 North, Range 17 West,Dakota County, Minnesota, lying westerly of General Sieben Dr, as platted in City Of Hastings Right of Way Map No. 1, on file and of record in the office of the County Recorder,Dakota County, Minnesota. Subject to any easement of record, if any. Containing 189,655 square feet more or less. Background Information: Comprehensive Plan Classification: The subject property is classified U-II(Urban Residential 4- 8 residential units/acre) in the City's 2020 Comprehensive Plan. The proposed development density for the subdivision is @8 units per acre. This is a consistent use with the comprehensive plan. Zoning Classification: The subject property is currently zoned R-1 low density residence. The property is in the process of being rezoned to R-3 Planned Residential Development. Planned residential developments and Townhomes are a permitted uses in this zoning district. Planned residential developments allow development to mix housing types and spread densities over the entire site. This project will have a high housing density while still retaining a large amount of open space. This allows a good balance for this site. Surrounding Properties: The subject property is adjacent to a mixed use development to the south consisting of single family and twin homes (zoned R-3), and vacant farm land to the West, and vacant commercial land to the North. Planning Consideration: This is a great location for this type of zoning. It is providing a housing type that the City is in need. It will provide a good transition between the commercial areas and the single family areas. The proposed zoning is consistent with the goals of the Comprehensive Plan. Planning Commission Recommendation: Planning Commission recommended approval of the rezoning of the property to R-3 PRD Medium High Density Residence Planned Residential Development at their 11/13/00 Planning Commission Meeting. Recommended Action: Recommendation to approve the first reading of an ordinance rezoning the property to R-3 PRD Medium High Density Residence Planned Residential Development and to order a public hearing for December 4th,2000. ORDINANCE NO. , SECOND SERIES AN ORDINANCE OF THE CITY OF HASTINGS,MINNESOTA AMENDING SECTION 10.01, SUBDIVISION 1 OF THE CITY CODE HAVING TO DO WITH: OFFICIAL ZONING MAP BE IT ORDAINED by the City Council of the City of Hastings as follows: Subdivision 1. The following described properties are hereby zoned from R- Low Density Residence to R-3 PRD Medium High Density Residence Planned Residential Development: That part of the south 415 feet of the north one half of the southwest quarter of Section 29, Township 115 North,Range 17 West,Dakota County, Minnesota, lying westerly of General Sieben Dr, as platted in City Of Hastings Right of Way Map No. 1, on file and of record in the office of the County Recorder,Dakota County, Minnesota. Subject to any easement of record, if any. Containing 189,655 square feet more or less. ADOPTED BY THE CITY COUNCIL THIS DAY OF , 2000. Michael D. Werner, Mayor. ATTEST: Melanie Mesko, Administrative Assistant/City Clerk I HEREBY CERTIFY that the above is a true and correct copy of an ordinance presented to and adopted by the City of Hastings, County of Dakota, Minnesota, on the day of , 2000, as disclosed by the records of the City of Hastings on file and of record in the office. Melanie Mesko,Administrative Assistant/City Clerk (SEAL) This instrument drafted by: City of Hastings 101 4th ST. Hastings, MN 55033 \ � - _•- z- 'e3'cL�!:�.moi` • 111111:11::IIC • / �E.iiiiil�l ■ IL "s Stt rt�4"'p P is� �wu Cid �� 'R+ ldlalz . 1 71 1 "'"" w P xw � �� � � �\������ t!a$.�✓c ..n r3 L n�f Ei£ sa� ILS €*t' 6 Rol Ju ® ro as;3, cm Pt iw. r i I ¢ e xz '3(� P 8 1 I:Pae t d Ponya/ etR f }r a In " @ n.1...j 9 I� 1 17 rTl s e.�.0�.b t„��`� _ � h u vin-6-2 Memo To: Mayor Werner and City Council From: Matthew Weiland, City Planner Subject: Site Plan- Green Lawn Underground Sprinklers, INC. Date: November 16, 2000 CC: Green Lawn Green Lawn Underground Sprinklers,INC has made application and requested site plan approval for a new business to be located in the industrial park. The lot is legally described as Lot 4, Block 1,Hastings Industrial Park No.2. The City Council recommended preliminary approval of the land sale to the applicants and offered them the land credit subsidy at their July 10th, 2000,City Council meeting based on several conditions. One of the conditions of the land sale and land credit program is the approval of a final site plan. Included with this memo are the following: Site Plan and a Site Location Map. Background Information: 1. Comprehensive Plan Designation: The subject property is guided Industrial in the Comprehensive Plan. The warehouse/office development proposed is a consistent and permitted use for this land use designation. 2. Zoning:The property is currently zoned I-1 Industrial Park. Office and warehousing uses are a permitted use in this zoning district. 3. Existing Conditions: The property is currently undeveloped. 4. Proposed Conditions: The applicant is proposing to construct an 5,000 sq ft building. The applicant's business installs and services underground sprinklers for residential and commercial properties. The applicant would use the building for storage and office space 5. Adjacent Land Uses: The Hastings Veterans Athletic Complex is directly north of this property. The Hastings Industrial Park surrounds the rest of the property. Page 2 Site Plan Proposed Uses and Lot Layout: The building and parking lot are laid out in a rational manner. Site Access: The access for the site will be off of Millard Ave. Zoning Setback requirements: Proposed parking areas are in compliance with zoning ordinance parking lot setback requirements, Building Setbacks: The building setbacks are determined through site plan review for this zoning district. The setbacks are appropriate based on the this building and other buildings in the area. It is the opinion of Staff that the proposed building is rationally sited relative to the parking lots and the site itself. Number of Parking Spaces: The site plan is indicating that the minimum parking requirements for this site can be met. The site plan indicates a larger parking lot than necessary to provide maneuvering room for vehicles to the garages. Sanitary,Water, Storm Sewer and Gradin Plans: The site plan has to be modified to illustrate the size, location, and elevation of the water and sewer lines. There are water and sewer lines stubbed into the property. A separate water meter should also be installed for irrigation. Site Landscaping: The landscaping or the project exceeds the minimum requirements of the Industrial Park. It will offer a good buffer and entrance area to the athletic complex to the north. Site Plan Issues: The proposed development is meeting the minimum standards of the proposed design guidelines for the Industrial Park. Some of these features include curbed parking lots, improved landscaping, and improved building design. Building Elevations: The building elevations exceeds the design guidelines for the Industrial Park. The building is an especially attractive building with the use of stone wainscoting and a pillared entrance area. Industrial Park Board Recommendation:The Industrial Park Board recommended approval of the Green Lawn Site Plan at their 11/16/00 meeting. There was not a full quorum present. Page 3 Recommended Action: Site Plan Motion to Recommend to the approval of the Green Lawn Underground Sprinklers, INC. Site Plan subject to following: 1. That the proposed structure and accessory items including, but not limited to, the parking lot and landscaping shall be completed pursuant to the approved site plan. Upon request for occupancy of the building, all uncompleted items contained within the site plan shall be addressed pursuant to city code escrow requirements. 2. That the site plan shall be modified to illustrate the size,location,and elevation of the water and sewer lines. 3. That a separate water meter should also be installed for irrigation. 4. That the drainage in the rear of the lot be directed towards the swale. 1 - •S]{�I�O - Ilrlrl q` - r r. o f .r 1 Ir 11 � 1 • 7 • L- u 1 : rod r r I � �r Memo To: Industrial Park Board From: Matthew Weiland, City Planner Subject: Green Lawn Underground Sprinklers- Development/Business Subsidy Agreement for sale of Industrial Park Property Date: November 16, 2000 CC: Green Lawn Green Lawn Underground Sprinklers Inc. has offered to purchase 1.2 acres of land land in the Industrial Park. The lot is legally described as Lot 4,Block 1, Hastings Industrial Park No. 2. They have also requested the Land Credit Program. The City Council recommended preliminary approval for the land sale and land credit program and their 7/10/00 City Council Meeting. The development/business subsidy agreements have now been prepared and are ready for final action. These agreements are included with this memo. Background Information The applicant is proposing to construct an 5,000 sq ft building and create 5 - 6 new jobs over the next 5 years.. The applicant's business installs and services underground sprinklers for residential and commercial properties. The applicant would use the building for storage and office space. The preliminary site plan and building elevations meet the design guidelines for the Industrial Park. The building is an especially attractive building with the use of stone wainscoting and a pillared entrance area. This is a good project that will enhance the Industrial Park and provide a model for future development in the park. This project would require the following items completed before the land sale could be closed: 1. Final Site Plan Approval 2. Signed Development/Purchase Agreement 3. Signed Subsidy Agreement 4. Final Building Plan Approval Business Subsidy: Land Value: $52,000.00 Land Subsidy: $51,199.00 to finalized after 5 years Page 2 Requested Action: Motion to recommend final approval of the land sale and approve the development an4 business subsidy agreements W c CL O L sN LI) n. -0 W p �f cn p - y w, CIO Q i z �_ W O Cr) U m OC d UJ U i c i i i i - CL j; uL € N Ya - N c fq r 3v 0 0 / C 0 �'�Q ♦ J J O � 00 v it d O ' m O O e v CD 7 r � i • � � OV November 9, 2000 PURCHASE AND DEVELOPMENT AGREEMENT . By and Between CITY OF HASTINGS, MINNESOTA and GREEN LAWN UNDERGROUND SPRINKLERS INC. Dated: 12000 This document was drafted by: ` BRADLEY & DEIKE, P. A. 5100 Eden Avenue, Suite 308 Edina, MN 55436 Telephone: (952) 926-5337 Rjd agrmt/hastings green lawn TABLE OF CONTENTS Page PREAMBLE 1 ARTICLE I Definitions Section 1.1. Definitions 2 ARTICLE II Representations Section 2.1. Representations by the City 4 Section 2.2. Representations by the Developer 4 ARTICLE III Conveyance of Property Section 3.1. Status of Property 5 Section 3.2. Agreement to Sell 5 Section 3.3. Conditions Precedent to Conveyance 6 Section 3.4. Title 7 Section 3.5, Environmental Assessment 7 Section 3.6. Closing 7 Section 3.7. Access to Property 8 Section 3.8. Assessments 8 Section 3.9. Business Subsidy Agreement 10 Section 3.10.City Costs 10 ARTICLE IV Construction of Improvements Section 4.1. Construction of Improvements 11 W Section 4.2. Construction Plans and Site Plan 11 Section 4.3. Commencement and Completion of Construction 11 ARTICLE V Insurance Section 5.1. Insurance 12 ARTICLE VI Taxes Section 6.1. Real Property Taxes 14 ARTICLE VII Financing Section 7.1. Mortgage Financing 14 Section 7.2. Limitation on Encumbrance of Property 14 ARTICLE VIII Prohibitions Against Assienment and Transfer; Indemnification Section 8.1. Prohibition Against Transfer of Property and Assignment of Agreement 14 Section 8.2. Release and Indemnification Covenants 15 ARTICLE IX Events of Default Section 9.1. Events of Default Defined 16 Section 9.2. Remedies on Default 16 Section 9.3. No Remedy Exclusive 17 (ii) Section 9.4. No Additional Waiver Implied by One Waiver 17 Section 9.5. Effect of Termination of Agreement 17 Section 9.6. Costs of Enforcement 17 ARTICLE X Additional Provisions Section 10.1.Representatives Not Individually Liable 17 Section 10.2.Provisions Not Merged With Deed 18 Section 10.3.Titles of Articles and Sections 18 Section 10.4.Notices and Demands 18 Section 10.5.Disclaimer of Relationships 18 Section 10.6.Modifications 18 Section 10.7.Counterparts 18 Section 10.8.Judicial Interpretation 18 Section 10.9. Severability 18 Section 10.10. Termination 19 SCHEDULE A Description of Property SCHEDULE B Business Subsidy Agreement (iii) PURCHASE AND DEVELOPMENT AGREEMENT THIS AGREEMENT, made on or as of the day of , 2000, by and between the City of Hastings, Minnesota, a home rule charter city under the laws of the State of Minnesota (hereinafter referred to as the "City"), and having its principal office at 101 4th Street East, Hastings, Minnesota 55033-1955, and Green Lawn Underground Sprinklers Inc., a Minnesota corporation (hereinafter referred to as the "Developer"), having its principal office at 17525 Orlando Avenue, Hastings, Minnesota 55033. WITNESSETH: WHEREAS, the City is a home rule charter city under the laws of the State of Minnesota and is the owner of certain real property located in an industrial park within the City (which real property is referred to herein as the "Property"); and WHEREAS, the City has identified as one of its objectives the encouraging of economic development and job growth within the City by inducing and assisting new business to locate in the City and existing businesses to expand their operations; and WHEREAS, the Developer has presented to the City a proposal by which it would purchase the Property from the City and construct thereon a building of approximately 5,000 square feet with a market value for real property tax purposes of at least$200,000; and WHEREAS, the Developer has further proposed that in consideration of the City's conveyance of the Property the Developer will meet certain employment and wage requirements within specified times after conveyance of the Property; and WHEREAS, the Developer has represented to the City that the Developer is unable to secure the necessary financing to acquire the Property and construct the Improvements if the Developer is required to purchase the Property for its current market value; and WHEREAS, the City is willing to sell the Property to the Developer but only if the Developer complies with its construction, employment and other covenants under this Agreement. NOW, THEREFORE, in consideration of the mutual covenants and obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Assessments"means the assessments to be levied against the Property pursuant to Section 3.8 of this Agreement. "Business Subsidy Agreement" means the agreement in the form of Schedule B to this Agreement to be executed by the City and the Developer pursuant to Section 3.9 of this Agreement as required pursuant to Minnesota Statutes, sections 116J.993 to 116J.995. "City" means the City of Hastings, Minnesota. "Construction Credit" means the credit to be given to the Developer against the Developer's obligations to pay the Assessments calculated as provided in Section 3.8 of this Agreement. "Construction Plans" means the plans, specifications, drawings and related documents on the construction work to be performed by the Developer on the Property which shall be at least as detailed as the plans to be submitted to the building inspector of the City and shall include such supplemental information as the City may require. "County" means Dakota County, Minnesota. "Developer" means Green Lawn Underground Sprinklers Inc., a Minnesota corporation, its successors and assigns, and any future owners of any interest in the Property. "Event of Default" means an action listed in Section 9.1 of this Agreement. "Hazardous Substances" means asbestos, urea formaldehyde, polychlorinated biphenyls, nuclear fuel or materials, chemical waste, radioactive materials, explosives, known carcinogens, petroleum products and also all dangerous, toxic or hazardous pollutants, contaminates, chemicals, materials or substances defined as hazardous or as a pollutant or contaminant in, or the release or disposal of which is regulated by, any Laws or Regulations, as hereafter defined. Laws or Regulations mean and include the Comprehensive Environmental Response and Liability Act ("CERCLA" or the Federal Superfund Act) as amended by the Superfund Amendments and Reauthorization Act of 1986 ("SARA") 42 U.S.C. 9601-9675; The Federal Resource Conservation and Recovery Act of 1986 ("RCRA"); the Clean Water Act, 33 U.S.C. 1321, et seq.; the Clean Air Act 42 U.S.C. 7401, et seq., all as the same maybe from time to time amended, and any other federal, state, county, municipal, local or other statute, law ordinance or 2 regulation which may relate to or deal with human health or the environment including, without limitation, all regulations promulgated by a regulatory body pursuant to any such statute, law or ordinance. "Holder" means the owner of a Mortgage. "Improvements" means the construction by the Developer of a building of approximately 5,000 square feet on the Property in accordance with the Construction Plans. "Job Credit" means the credit to be given to the Developer against the Developer's obligations to pay the Assessments calculated as provided in Section 3.8 of this Agreement. "Mortgage" means any mortgage, lien or other encumbrance made or permitted to be made by the Developer which is secured, in whole or in part,by the Property. "Permitted Encumbrances" means the Assessments: the provisions of this Agreement: reservations of minerals or mineral rights to the State of Minnesota; public utility, roadway and other easements which will not adversely affect the development and use of the Property pursuant to the Developer's Construction Plans; building laws, regulations and ordinances consistent with the Improvements; real estate taxes that Developer agrees to pay or assume pursuant to this Agreement; restrictions, covenants and easements of record that do not materially adversely affect the development and use of the Improvements; and exceptions to title to the Property which are not objected to by Developer upon examination of the title evidence to be delivered to the Developer pursuant to Section 3.4 of this Agreement. "Property" means the real property described in Schedule A of this Agreement. "State" means the State of Minnesota. "Unavoidable Delays" means delays which are the direct result of acts of God, unforeseen adverse weather conditions, strikes, other labor troubles, fire or other casualty to the 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 in enforcing its rights under this Agreement)which directly result in delays. 3 ARTICLE II Representations Section 2.1. Representations by the City. The City makes the following representations as the basis for the undertaking on its part herein contained: (a) The City is a home rule charter city organized and existing under the laws of the State. Under the laws of the State, the City has the power to enter into this Agreement and to perform its obligations hereunder. (b) The Property is directly accessible to city sewer and water located in the adjacent right-of-way or in a utility easement. (c) To the best of the City's knowledge and belief, at the time of execution by the City of this Agreement, there are no environmental proceedings, applications, ordinances, petitions, court pleadings, resolutions, investigations by public or private agencies, or other matters pending which could prohibit, impede, delay or adversely effect the contemplated use of the Property. (d) To the best of the City's knowledge and belief, no underground storage tanks or Hazardous Substances have been, or pending the conveyance of the Property shall be, installed, used, incorporated into, discharged, released, stored, generated, disposed of, or allowed to escape in, to, or upon the Property. (e) To the best of the City's knowledge and belief, no investigation, administrative order, consent order or agreement, litigation, or settlement with respect to Hazardous Substances is proposed, threatened, anticipated or in existence with respect to the Property. (f) The Property: (i) consists of approximately 1.2 acres; (ii) is currently zoned I-1; (iii) is not in the designated 100 year flood plain area; and (iv) does not currently receive preferential tax treatment (i.e. Green Acres). Section 2.2. Representations by the Developer. The Developer represents that: (a) The Developer is a Minnesota corporation duly organized and authorized to transact business in the State, is not in violation of any provisions of its articles of incorporation, bylaws or the laws of the State, has power to enter into this Agreement and has duly authorized the execution, delivery and performance of this Agreement by proper action of its directors. (b) The Developer will construct the Improvements in 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), except for variances necessary to construct the improvements contemplated in the Construction Plans and site plan approved by the City. 4 (c) The Developer has received no notice or communication from any local, state or federal official that the activities of the Developer or the City in the Project Area may be or will be in violation of any environmental law or regulation. The Developer, to the best of its knowledge, is aware of no facts the existence of which would cause it to be in violation of any local, state or federal environmental law, regulation or review procedure. In the event that the City is required to take any action to obtain any necessary permits or approvals with respect to the Property under any local, state or federal environmental law or regulation, the Developer will cooperate with the City in connection with such action. (d) The Developer has or will obtain, in a timely manner, all required permits, licenses and approvals, and will 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 Improvements may be lawfully constructed and operated. All representations set forth in Section 2.1 and 2.2. of this Agreement shall be true and correct in all material respects as of the date of closing on conveyance of the Property to the Developer. ARTICLE III Conveyance of Property Section 3.1. Status of Property. The City owns fee title to the Property. The City acquired the Property as part of an industrial park and developed the industrial park through the installation of infrastructure in order to provide readily available sites for businesses seeking industrial space. The public improvements to the industrial park benefited all parcels of property in the industrial park. The City is willing to initially convey the Property to the Developer for a purchase price less than the value of the Property and the costs that the City has incurred in developing the Property in consideration of the Developer's covenants and obligations under this Agreement. The Developer and the City have agreed that the value of the Property and public improvements that have been installed by the City that is in excess of the purchase price may be assessed against the Property and may be repayable in accordance with Section 3.8 of this Agreement. 3.2 Agreement to Sell. (a) The City and the Developer agree that the value of the Property in its current improved state is at least $52,000.00. However, the Developer has stated that it is unable to pay more than a nominal amount for the purchase of the Property. Therefore, the City agrees that it will sell the Property to the Developer in consideration for the Developer's payment of a purchase price of $1.00 per acre ($1.00 total) and the performance of the Developer's other covenants under this Agreement. The Developer agrees that it will purchase the Property for the purchase price of$1.00 and that it will fulfill all of the other obligations of the Developer set forth herein. 5 (b) The purchase price to be paid by the Developer to acquire the Property shall be payable by means of cash or certified funds on the date of closing on the sale of the Property to the Developer. Section 3.3. Conditions Precedent to Conveyance. The City's obligation to sell and the Developer's obligation to purchase the Property shall be subject to satisfaction of all of the following conditions precedent: (a) The Developer having obtained the requisite approval of the City hereunder and all applicable governmental agencies and instrumentalities, municipal, county, state and federal, to the development of the Property through the construction of the Improvements in accordance with the Developer's Construction Plans and site plan. (b) The Developer having obtained: (i) amendments, revisions, exceptions or changes as may be necessary to applicable zoning codes and ordinances; (ii) special use permits, if applicable, (iii) building permits for the Improvements; (iv) driveway permits; (v) roadway access rights and permits; (vi) environmental consents, if necessary; (vii) vacations and variances deemed necessary by Developer or as may be otherwise required to permit Developer to construct the Improvements in accordance with the Developer's Construction Plans and site plan; and (viii) the City's approval of the Developer's Construction Plans and site plan for the Improvements. (c) The Developer having determined that the Property has soil bearing characteristics sufficient to support the Improvements. (d) The Developer having reviewed and approved, or waived any objections to, title to the Property pursuant to Section 3.4 of this Agreement. (e) Developer shall have secured construction and permanent mortgage loan financing sufficient for the acquisition of the Property and construction of the Improvements, which financing shall contain terms acceptable to the City by which the Developer's lender agrees to be bound by and subject to the Assessments. (f) A written guarantee, in a form acceptable to the City, of the Developer's obligations under this Agreement executed by . (Matt, do you want anyone to guarantee the Developer's obligations?) In the event that the above conditions precedent have not been satisfied, or waived in writing by both the City and Developer, by a date forty five (45) days from the date of this Agreement, either the City or Developer may terminate this Agreement by giving written notice of termination to the other party, whereupon this Agreement shall be null and void and the Developer and City shall execute an instrument in recordable form canceling this Agreement. Upon termination of this Agreement, the City and the Developer shall have no further obligations to the other under this Agreement, except as stated in Section 9.5 of this Agreement. 6 Section 3.4. Title. (a) The Developer has obtained a commitment for the issuance of an owner's policy of title insurance for the Property naming the Developer as the proposed insured party. The Developer shall be allowed twenty (20) days after the date hereof for examination of said title and the making of any objections thereto, said objections to be made in writing or deemed to be waived. The Developer may not object to Permitted Encumbrances. The Developer's objections shall be made in writing or shall be deemed waived. If any objections are so made, the City shall be allowed ninety(90) days from notice thereof to cure the title defect or exception, either by the removal thereof or by the procurement of title insurance endorsements satisfactory to Developer providing coverage against loss or damage as a result of such defect or exception. If the City does not cure such title defect or exception to Developer's satisfaction within said ninety (90) days, the Developer may, at its option, either (i) terminate the Agreement upon written notice to the City upon which this Agreement shall be null and void and the Developer and the City shall execute an instrument in recordable form canceling this Agreement; or (ii) waive the title defect or exception and proceed with the closing on the purchase of the Property. If the Developer waives the title defect or exception and proceeds to acquire the Property, the City shall have no further obligations with respect to any such defects or exceptions. The cost of obtaining the title insurance commitment and the cost of title insurance shall be borne by the Developer; provided that the City shall pay the cost of updating the abstract or registered property abstract for the Property or, if there is no abstract or registered property abstract in the possession of the City, the costs of updating title for purposes of the issuance of the title insurance commitment. (b) Within a reasonable time after the date hereof, the Developer shall obtain and furnish to the City, at the Developer's expense, a survey of the Property prepared by a registered surveyor certified to date, showing: (i) the number of square feet contained in the Property, measured to the right-of-way line of public roads upon which the property abuts; (ii) the exact legal description of boundary lines of the Property; (iii) encroachments from or onto the Property, if any; (iv) location of utility lines and easements of any kind, of record or appearing thereon, if any; (v) assumed bearings used by the surveyor; and (vi) direct legal access from a public road to the Property. The City will reimburse the Developer for the above portions of the survey but not those portions that are attributable to the Developer's preparation of its site plan for the Improvements. Section 3.5 Environmental Assessment. The Developer has reviewed and approved the environmental condition of the Property and the surrounding real estate. The Developer agrees that if it closes on the acquisition of the Property it will be purchasing the Property in its current condition and the City shall have no obligations to the Developer with respect to any environmental conditions existing on the Property. Section 3.6 Closing. (a) Closing on the conveyance of the Property to the Developer shall occur on or before ten (10) business days after satisfaction, or waiver, of all of the conditions precedent set forth in Section 3.3 of this Agreement. (b) At closing on conveyance of the Property, the City shall deliver to the Developer: (i) a warranty deed duly executed and acknowledged, in recordable form, conveying to the Developer marketable title to the Property subject only to Permitted Encumbrances; (ii) the 7 ALTA Owner's title insurance policy described in Section 3.4 (the premium for which and the cost of obtaining the commitment for which shall be paid by Developer); and (iii) a Seller's Affidavit, in customary form, relative to judgments, federal tax liens, mechanic's liens and outstanding interests in the Property. (c) At closing on the conveyance of the Property the City will pay the following costs: (i) The cost of updating title to or continuing the abstract for the Property; (ii) State deed tax; (iii) Conservation fee payable in connection with the conveyance; and (iv) The portion of the survey costs described in Section 3.4(b). At closing on the conveyance of the Property the Developer will pay the following costs: (i) The purchase price; (ii) The cost of obtaining the title insurance commitment and the policy of title insurance; (iii) The costs described in Section 3.10; (iv) The cost of the Survey related to preparing Developer's site plan showing the Improvements. (v) Recording fees for the deed, this Agreement and any other documents required to be recorded in connection with the conveyance; and (vi) Closing costs. Section 3.7 Access to Property. During the term of this Agreement, the Developer and his authorized representatives shall be permitted access to the Property at reasonable times for the purpose of architectural inspection and design studies and the taking of such soil borings and tests as are deemed reasonably necessary by Developer. Developer hereby agrees to indemnify, defend, and hold harmless the City, its officers, agents, employees and commissioners from and against any and all damage to property or injury to person arising out of the Developer's exercise of its right of access to the Property under this Section. The Developer shall be entitled to actual possession of the Property on the date of closing on conveyance of the Property to the Developer. • e_ Section 3.8. Assessments. (a) The Developer agrees that it will pay to the City the current value of the Property and the improvements that have been made to the land by the City prior to the date hereof if and to the extent required by this Section. The value of the land that is not being paid in the form of the purchase price paid at the time of conveyance of the Property is 8 agreed to be $51,999.00. In order to secure the City's interest in being paid such amount the Developer and the City agree that the City may at the time of closing on the sale of the Property to the Developer or at any time thereafter assess such amount against the Property with the same force and effect as an assessment under Minnesota Statutes, Chapter 429. Such amount so assessed is referred to herein as the "Assessments" and shall constitute a special assessment lien against the Property enforceable in the manner applicable to the lien of assessments levied under said Chapter 429. The Developer agrees that this Agreement constitutes a petition to assess the Property and that no further consent or agreement by the Developer is necessary to levy the Assessments. The Developer further agrees that it will not contest the amount or validity of the Assessments on constitutional, statutory, procedural or other grounds and shall cause any Holder and any transferee of Developer's acquiring an interest in the Property or Improvements to execute an instrument, in a form acceptable to the City, acknowledging the validity of the lien of the Assessments and subjecting the Holder's lien or the transferee's interest to the lien of the Assessments. In addition, the Developer will upon request by the City execute such other documents as the City may from time to time reasonably request to continue the perfection of the lien of the Assessments as a first lien on the Property. Payment of the principal amount of the Assessments shall be deferred but shall be due and payable on 1, 2005, unless accelerated pursuant to Section 9.2 or unless satisfied as provided in Section 3.8(e), except as the payment obligation may be reduced pursuant to Section 3.8(b) and (c). No interest shall accrue with respect to the Assessments until 1, 2005, or the date that the Assessments may be accelerated pursuant to Section 9.2, but if the Developer fails to pay any amount that is owed on 1, 2005, or on the date that the Assessments are declared due and payable in accordance with Section 9.2, the unpaid balance shall accrue interest from such date until paid at the prime rate of interest in effect on the date the Assessments are due as announced by Norwest Bank Hastings. (b) The amount of the Assessments to be paid by the Developer to the City on 1, 2005, shall be reduced by an amount referred to herein as the "Construction Credit". The Construction Credit shall be equal to the market value of the Improvements, exclusive of the value of the Property, for real property tax purposes, on the January 2nd prior to the date the Assessments are due, divided by 10. For example, if the value of the Improvements, exclusive of land value, on January 2, 2005, is $200,000.00 the amount of the Construction Credit available on 1, 2005, would be $20,000.00. No Construction Credit shall be available to reduce the Assessments unless the Developer has completed, to the satisfaction of the City, all aspects of the Improvements, including, without limitation, any site improvements shown on the approved Construction Plans. (c) The amount of the Assessments to be paid by the Developer to the City on 1, 2005, shall be further reduced by an amount referred to herein as the "Jobs Credit". Prior to closing on the conveyance of the Property to the Developer the Developer shall furnish to the City payroll records in such form as the City may require documenting the wages paid by the Developer, in the twelve month period preceding the closing. The City shall determine such total wage amount for such twelve month period and such amount shall be referred to as the "Existing Payroll". The Jobs Credit shall be equal to the annual payroll, in excess of the Existing Payroll, in the twelve(12)month period immediately preceding the date that the Assessments are due of the Developer's operations on the Property, divided by 27,000, with the result then being 9 multiplied by $5,400.00. For example, if the annual payroll of the Developer, in excess of the Existing Payroll, for the twelve (12) month period is $160,000.00 the amount of the Jobs Credit (($160,000.00/27,000) x $5,400.00) shall be $32,000.00. For purposes of determining the Developer's annual payroll, only gross wages paid to employees shall be considered. A maximum of$50,000 of the aggregate gross wages paid to all employees who are also owners of any interest in the Developer, may be included in the gross wages paid by Developer. No Jobs Credit shall be available to reduce the Assessments unless the Developer has completed, to the satisfaction of the City, all aspects of the Improvements, including, without limitation, any site improvements shown on the approved Construction Plans. If the Assessments as reduced by the Construction Credit and the Jobs Credit are less than zero, the Developer shall not be entitled to any payment from the City. (d) The Developer shall provide within ten (10) days of request by the City all documentation requested by the Authority to determine the amount of the Assessments that may be due under this Section. The City will, to the extent permitted by law, maintain the confidentiality of all information provided to the City under this subsection. (e) At any time prior to 1, 2005, the Developer may prepay the amount of the Assessments that are due at such time based on documentation provided to the City by the Developer as to the amount of the Jobs Credit and the Construction Credit to which the Developer is entitled at such time. The Developer's right to prepay the Assessments or seek a determination that no Assessments are payable shall be subject, however, to the condition that the Developer shall have completed construction of the Improvements as evidenced by the City's delivery of a certificate of occupancy, including all site improvements or, if items cannot be completed due to weather conditions, the Developer has established an escrow acceptable to the City to guarantee the completion of such unfinished items. Upon such prepayment or upon the Developer's demonstration to the City that no amount of the Assessments is due, the City will execute a certification in recordable form certifying that the Assessments have been paid in full and discharged as a lien from the Property. Notwithstanding the full or partial termination of the Assessments that may be due under this Agreement, such payment shall not terminate or reduce the Developer's obligations, including possible repayment obligations, under the Business Subsidy Agreement. Section 3.9. Business Subsidy Agreement. The financial assistance being provided to the Developer by the City under this Agreement constitutes a "subsidy" within the meaning of Minnesota Statutes, sections 116J.993 to 116J.995. Therefore, at the time of closing on the conveyance of the Property to the Developer by the City, the City and the Developer shall enter into the Business Subsidy Agreement to satisfy the requirements under said statutory provisions. The repayment obligations set forth in the Business Subsidy Agreement are mandated by State law and are separate and distinct from the obligations of the Developer under this Agreement. Therefore, the Developer's repayment obligations under the Business Subsidy Agreement shall not be satisfied in whole or in part by any Construction Credit or Jobs Credit that the Developer may have earned under this Agreement. Section 3.10. Cites. The Developer shall pay all of the City's out-of-pocket costs paid or payable by the City to attorneys or consultants in connection with the negotiation and 10 preparation of this Agreement and related documents, financial reviews of this transaction, and the conveyance of the Property, including closing and recording costs. The City estimates that such costs will be approximately $ and agrees that the maximum costs for which the Developer will be liable relative to the negotiation and preparation of this Agreement shall be ARTICLE IV Construction of Improvements Section 4.1. Construction of Improvements. The Developer agrees that it will construct the Improvements on the Property in accordance with the approved Construction Plans and site plan and at all times will operate and maintain, preserve and keep the Improvements or cause the 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 and Site Plan. (a) The City's willingness to convey the Property to the Developer is predicated upon and subject to the Developer's agreement that it will construct the Improvements and that the Improvements will be of such quality and nature as will satisfy the City's goals for the development of the Property. Therefore, within thirty(30) days from the date of this Agreement, the Developer shall provide to the City for its review and approval Construction Plans and a site plan for the Improvements. The Construction Plans and site plan shall provide for the construction of the Improvements and shall be in conformity with this Agreement and all applicable state and local laws and regulations. The City shall approve the Construction Plans and site plan in writing if, in the sole discretion of the City, the proposed Improvements are of such a nature and quality as to justify the City's conveyance of the Property. Such Construction Plans and site plan shall, in any event, be deemed approved unless rejected in writing by the City, in whole or in part within thirty (30) days after the date of their receipt by the City. Nothing in this Section shall be deemed to relieve the Developer's obligations to comply with the requirements of the City's normal construction permitting process. (b) If the Developer desires to make any material change in any Construction Plans or site plan after their approval by the City, the Developer shall submit the proposed change to the City for its approval. If the Construction Plans and site plan, as modified by the proposed change, conform to the requirements of this Agreement and such changes do not materially alter the nature, quality or exterior appearance of the Improvements, the City shall approve the proposed change and notify the Developer in writing of its approval. Any requested change in the Construction Plans or site plan shall, in any event, be deemed approved by the City unless rejected, in whole or in part, by written notice by the City to the Developer, setting forth in detail the reasons therefor. Such rejection shall lie made within ten (10) days after receipt of the notice of such change. Section 4.3. Commencement and Completion of Construction. (a) The Developer agrees for itself, its successors and assigns, and every successor in interest to the Property, or any 11 part thereof, that the Developer, and its successors and assigns, shall promptly begin and diligently prosecute to completion construction of the Improvements within the period specified in this Section 4.3 of this Agreement. (b) Subject to Unavoidable Delays, the Developer shall commence construction of the Improvements by ' and shall complete such construction by The Developer shall, however, be entitled to request additional time to complete the Improvements, together with any site improvements shown on the site and building plans approved by the City; provided, that any such request shall be made prior to the date that completion is required and that the City may require security from the Developer to assure that any uncompleted work is completed. (c) The Developer shall only be deemed to have fulfilled his obligations to construct the Improvements if upon completion of the Improvements the Improvements, exclusive of the value of the Property, have a market value for tax purposes of at least $200,000.00. ARTICLE V Insurance Section 5.1. Insurance. (a) The Developer will provide and maintain at all times during the process of constructing the Improvements and, from time to time at the request of the City, furnish the City with proof of payment of premiums on: (i) Builder's risk insurance, written on the so-called "Builder's Risk -- Completed Value Basis," in an amount equal to one hundred percent (100%) of the insurable value of the Improvements at the date of completion, and with coverage available in nonreporting form on the so called "all risk" form of policy. The interest of the City shall be protected in accordance with a clause in form and content satisfactory to the City; (ii) Comprehensive general liability insurance in amounts required by the City's code of ordinances; and (iii) Worker's compensation insurance, with statutory coverage and employer's liability protection. (b) Prior to the date that the Developer pays to the City any amount of the Assessments that is due under Section 3.8 or that it is determined that no amount is due or the date that the Developer has fulfilled all ofits obligations under the Business Subsidy Agreement, whichever, is later, the Developer shall maintain, at its cost and expense, and from time to time at the request of the City shall furnish proof of the payment of premiums on, insurance as follows: 12 (i) Insurance against loss and/or damage to the Improvements under a policy or policies covering such risk as are ordinarily insured against by similar businesses, including (without limiting the generality of the foregoing) fire, extended coverage, all risk vandalism and malicious mischief, boiler explosion, water damage, demolition cost, debris removal, and collapse in an amount not less than the full insurable replacement value of the Improvements, but any such policy may have a deductible amount of not more than $25,000.00. No policy of insurance shall be so written that the proceeds thereof will produce less than the minimum coverage required by the preceding sentence, by reason of co-insurance provisions or otherwise, without the prior consent thereto in writing by the City which consent shall not be unreasonably withheld. The term "full insurable replacement value" shall mean the actual replacement cost of the Improvements (excluding foundation and excavating costs and costs of underground flues, pipes, drains and other uninsurable items) and equipment, and shall be determined from time to time at the request of the City, but not more frequently than once very three years, by an insurance consultant or insurer, selected and paid for by the Developer and approved by the City. All policies evidencing insurance required by this subparagraph (i)with respect to the Minimum Improvements shall be carried in the names of the Developer and the City as their respective interests may appear and shall contain standard clauses which provide for net proceeds of insurance resulting from claims per casualty thereunder to the Improvements to be made payable to the Developer. (ii) Comprehensive general public liability insurance, including personal injury liability (with employee exclusion deleted), and automobile insurance, including owned, non-owned and hired automobiles, against liability for injuries to persons and/or property, in the minimum amount for each occurrence and for each year of $1,000,000.00, for public liability and shall be endorsed to show the City as an additional insured. The policies of insurance required pursuant to clauses (i) and (ii) above shall be in form and content satisfactory to the City and shall be placed with financially sound and reputable insurers licensed to transact business in the State, the liability insurer to be rated A or better in Best's Insurance Guide. The policy of insurance delivered pursuant to clause (i) above shall contain an agreement of the insurer to give not less than thirty (30) days' advance written notice to the City in the event of cancellation of such policy or change affecting the coverage thereunder. (c) The Developer agrees to notify the City immediately in the case of damage to or destruction of, the Improvements or any portion thereof resulting from fire or other casualty. In the event of any such damage or destruction, the Developer will forthwith repair, reconstruct and restore the Improvements to substantially the same or an improved condition or value as existed prior to the event causing such damage. Failure by the Developer to rebuild the Improvements shall constitute an Event of Default under this Agreement which shall entitle the City to declare the Assessments due under Section 9.2 of this Agreement. (d) The City agrees that, if requested by the Developer's lender of financing for the construction of the Improvements, it will subordinate its rights relative to the receipt and 13 application of the proceeds of insurance under this Agreement to the lien of such lender's mortgage. ARTICLE VI Taxes Section 6.1. Real Property Taxes. Real estate taxes due and payable in the year shall be apportioned between the Developer and the City as of the date of conveyance of the Property, with the result that the City shall pay that portion of such taxes attributable to the period of the year prior to the conveyance and the Developer shall pay that portion of the taxes attributable to the period of time commencing with the date of conveyance. Real estate taxes and assessments due and payable in the year and all prior years, deferred real estate taxes (i.e. Green Acres), and all pending or levied special assessments, if any, shall be paid by the City. After its acquisition of the Property, the Developer shall pay all real property taxes and special assessments in a timely manner and prior to the imposition of penalties. ARTICLE VII Financing Section 7.1. Financing. Prior to the City's conveyance of the Property to the Developer, the Developer shall submit to the City evidence, satisfactory to the City, that the Developer has obtained mortgage or other construction and permanent financing in an amount sufficient for acquisition of the Property and construction of the Improvements. Section 7.2. Limitation Upon Encumbrance of Property. Prior to the date that the Developer pays to the City any amount of the Assessments that is due under Section 3.8 or that it is determined that no amount is due or the date that the Developer has fulfilled all of its obligations under the Business Subsidy Agreement, whichever, is later, 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 or lien to be made on or attach to the Property, except for the purposes of obtaining funds only to the extent necessary for acquiring and constructing the Improvements without the prior written approval of the City. All financing and other transactions shall contain an agreement in a form acceptable to the City by which a proposed Holder agrees to be bound by and subject to the Assessments. ARTICLE VIII Prohibitions Against Assienment and Transfer,Indemnification Section 8.1. Prohibition Against Transfer of Property and Assignment of Agreement. (a) The Developer represents and agrees that prior to the date that the Developer pays to the City 14 any amount of the Assessments that is due under Section 3.8 or that it is determined that no amount is due or the date that the Developer has fulfilled all of its obligations under the Business Subsidy Agreement, whichever, is later, 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 constructing the Improvements under this Agreement, and any other purpose authorized by this Agreement, the Developer (except as so authorized) has not made or created, and will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Property or any part thereof or any interest herein or therein, or any contract or agreement to do any of the same, without the prior written approval of the City. The City may require as a condition to the approval of any transfer, sale or assignment that the Developer pay to the City the amount of the Assessments determined to be due on the date of the transfer, sale or assignment calculated in the manner provided in Section 3.8. (b) In the absence of specific written agreement by the City to the contrary, no transfer of the Property or approval by the City thereof shall be deemed to relieve the Developer, or any other party bound in any way by this Agreement, from any of its obligations hereunder. Section 8.2. Release and Indemnification Covenants. (a) The Developer releases from and covenants and agrees that the City and the governing body members, officers, agents, servants and employees thereof shall not be liable for and agrees to indemnify and hold harmless the City and the governing body members, officers, agents, servants and employees thereof against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Improvements. (b) Except for any willful misrepresentation or any willful or wanton misconduct or negligence of the following named parties, the Developer agrees to protect and defend the City and the City and the governing body members, officers, agents, servants and employees thereof, now or forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Improvements. (c) Nothing in this Agreement is intended or shall be deemed to constitute a waiver by the City of any immunity or limits on liability under State law, including, without limitation, Minnesota Statutes, Chapter 466,relative to tort or other claims. 15 ARTICLE IX Events of Default Section 9.1. Events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides), any one 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 real estate taxes or special assessments when due. (b) Failure by the Developer to reconstruct the Improvements when required pursuant to Section 5.1 of this Agreement. (c) Failure by the Developer to obtain financing, if required, for construction of the Improvements pursuant to the terms and conditions of Section 7.1 of this Agreement. (d) Failure by the Developer to commence and complete construction of the Improvements and any site improvements as shown on the Developer's site and building plans approved by the City Council of the City or specified as conditions of the City's approval pursuant to the terms, conditions and limitations of Article IV of this Agreement. (e) Failure by Developer to provide any documentation or information required to be provided under the terms of this Agreement. (f) Failure by Developer to observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed hereunder. (g) 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) admits, in writing, its inability to pay his debts generally as they become due; or (iv) be adjudicated, bankrupt or insolvent; or (v) if a petition or answer proposing the adjudication of the Developer, as a bankrupt under any present or future federal bankruptcy act or any similar federal or State law shall be filed in any court and such petition or answer shall not be discharged or denied within sixty (60) days after the filing thereof; or (vi) a receiver, trustee or liquidator of the Developer, or of the Property and Improvements, shall be appointed in any proceeding brought against the Developer and shall not be discharged within sixty(60) days of such appointment, or if the Developer shall consent to or acquiesce in such appointment. Section 9.2. Remedies on Default. Whenever any Event of Default occurs, the City may immediately suspend its performance under this Agreement and may take any one or more of the following actions after providing thirty(30) days written notice to the Developer of the Event of Default,but only if the Event of Default has not been cured within said thirty(30) days: 16 111 (a) Terminate this Agreement. (b) Declare immediately due and payable the Assessments. (c) Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. Section 9.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the City or Developer 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 City 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 IX. Section 9.4. No Additional Waiver Implied by One Waiver. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent,previous or subsequent breach hereunder. Section 9.5. Effect of Termination of Agreement. In the event that this Agreement is terminated pursuant to Section 3.3 or Section 9.2, all provisions hereof shall terminate except that Sections 2.2, 3.10, 8.2, and 9.6 shall survive such termination and any cause of action arising hereunder prior to such termination shall not be affected. Section 9.6. Costs of Enforcement. Whenever any Event of Default occurs and the City 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 and the City prevails in such action or effort, the Developer agrees that it shall, within ten(10) days of written demand by the City, pay to the City the reasonable fees of such attorneys and such other expenses so incurred by the City. ARTICLE X Additional Provisions Section 10.1. Representatives Not Individually Liable. No member, official, or employee of the City shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach or for any amount which may become due to Developer or successor or on any obligations under the terms of the Agreement. 17 Section 10.2. Provisions Not Merged With Deed. None of the provisions of this Agreement are 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 10.3. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 10.4. 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 to or delivered personally to the Developer at 17525 Orlando Avenue Vermillion, Hastings, Minnesota 55033; and (b) in the case of the City, is addressed to or delivered personally to the City at City Hall, 101 4th Street East, Hastings, Minnesota 55033-1955, 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. Section 10.5. Disclaimer of Relationships. The Developer acknowledges that nothing contained in this Agreement nor any act by the City or the Developer shall be deemed or construed by the Developer or by any third person to create any relationship of third-party beneficiary, principal and agent, limited or general partner, or joint venture between the City, the Developer and/or any third party. Section 10.6. Modifications. This Agreement may be modified solely through written amendments hereto executed by the Developer and the City. Section 10.7. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 10.8. Judicial Interpretation. Should any provision of this Agreement require judicial interpretation, the court interpreting or construing the same shall not apply a presumption that the terms hereof shall be more strictly construed against one party by reason of the rule of construction that a document is to be construed more strictly against the party who itself or through its agent or attorney prepared the_same, it being agreed that the agents and attorneys of both parties have participated in the preparation hereof. Section 10.9. Severability. In the event that any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 18 Section 10.10. Termination. This Agreement shall terminate upon the payment by the Developer of the Assessments determined to be due under this Agreement or upon a determination that no amount of the Assessments are due and upon Developer's satisfaction of all obligations under the Business Subsidy Agreement. Upon such termination, the City shall provide the Developer with a certificate evidencing the termination of this Agreement and the Assessments. The provisions of this Agreement contained in Section 8.2 of this Agreement shall, however, survive such termination with respect to matters arising prior to the date of termination of this Agreement. 19 IN WITNESS WHEREOF, the City 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. CITY OF HASTINGS By Michael D. Werner, Mayor By Melanie Mesko, City Clerk GREEN LAWN UNDERGROUND SPRINKLERS INC. By Its By Its STATE OF MINNESOTA) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this — day of , 2000, by Michael D. Werner, and Melanie Mesko, the Mayor and City Clerk of the City of Hastings, a home rule charter city under the laws of the state of Minnesota. Notary Public STATE OF MINNESOTA) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this_ day of , 2000, by and the and of Green Lawn Underground Sprinklers Inc., a Minnesota corporation, on behalf of the corporation. Notary Public 20 CITY OF HASTINGS 101 4th Street East • Hastings, MN 5503S3C1ii-FPPULE A 651-437-4127 • Fax: 651-437-7082 Description of Property Lot Y ' Block L, Hastings Industrial Park Number D�, according to the recorded plat thereof, Dakota County, Minnesota. �r Hastings on the Mississippi CITY OF HASTINGS 101 4th Street East • Hastings, MN 550ACW-WULE B 651-437-4127 • Fax: 651-437-7082 BUSINESS SUBSIDY AGREEMENT By and Between CITY OF HASTINGS and GREEN LAWN UNDERGROUND SPRINKLERS INC. Dated: This document was drafted by: BRADLEY &DEIKE,P. A. 5100 Eden Avenue, Suite 308 Edina, MN 55436 Telephone: (952) 926-5337 _ _ r Hastings on the Mississippi BUSINESS SUBSIDY AGREEMENT THIS AGREEMENT, made on or as of the day of , 2000, by and between the City of Hastings, Minnesota, a home rule charter city under the laws of the State of Minnesota (hereinafter referred to as the "City"), and having its principal office at 101 4th Street East, Hastings, Minnesota 55033-1955, and Green Lawn Underground Sprinklers Inc., a Minnesota corporation (hereinafter referred to as the "Developer"), having its principal office at 17525 Orlando Avenue, Hastings,Minnesota 55033. WITNESSETH: WHEREAS, the Developer and the Authority have entered into a Purchase and Development Agreement dated as of , 2000, (the "Contract") pursuant to which the Developer has agreed to construct certain improvements on real property within the City of Hastings,Minnesota; and WHEREAS,in order to induce the Developer to undertake such development, the City has agreed in the Contract to provide certain assistance to the Developer through its sale of the property subject to the Contract to the Developer at a cost below market value; and WHEREAS, Minnesota Statutes, sections 116J.993 to 116J.995, provides that a government agency that provides financial assistance for certain purposes must enter into a business subsidy agreement setting forth goals to be met and the financial obligations of the recipient of the assistance if the goals are not met; and WHEREAS, the City and the Developer agreed in the Contract that they would enter into this Business Subsidy Agreement to satisfy the requirement of sections 116J.993 to 116J.995. 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: ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Act" means Minnesota Statutes, Sections 116J.993-.995. "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Benefit Date"means the date that the Property is conveyed by the City to the Developer. "City" means the City of Hastings, Minnesota. "Contract" means the Purchase and Development Agreement between the City and the Developer dated as of , 2000. "Developer" means Green Lawn Underground Sprinklers Inc., a Minnesota corporation, or its successors and assigns, or any future owners of the Property. "Improvements" means the construction activities to be undertaken by the Developer pursuant to the Contract. "Property" means the real property described as such in the Contract. "State" means the State of Minnesota. "Subsidy" means on any particular date $51,999.00, less any portion of such amount that the Developer has as of such date repaid to the City pursuant to the terms of the Contract. ARTICLE II Job and Wage Goals, Required Provisions Section 2.1. Employment and Wage Requirements. The Developer shall meet or cause to be met within two (2) years of the Benefit Date the wage and job goals set forth on the attached Exhibit A. Section 2.2. Reports. The Developer agrees that it will provide to the City all reports required by the Act. Such reports shall be submitted at the times required by the Act. Section 2.3. Continuing Obligation. The Developer agrees that it will continuously operate the Improvements for the purposes described in the Contract for a period of at least five (5) years from the Benefit Date. Section 2.4. Required Provisions. The following provisions are required by the Act: (a) By providing the Subsidy to the Developer the City is seeking to accomplish the public purposes of encouraging the development of property that is currently underutilized, expanding the tax base of the City and State, creating new job opportunities within the City at competitive wages for low and moderate income persons and facilitating the expansion of a local business. (b) The City has determined that the Subsidy is necessary because the Developer is unable to pay the full market value of the Property and still construct the Improvements of the size and quality proposed. By reducing the front end costs of the Developer's business expansion, more funds will be available for ongoing operations costs and the risk of failure will thereby be reduced. (c) The Developer has no parent corporation. (e) The following is a list of all financial assistance from all other state or local government agencies: None. ARTICLE III Default Section 3.1. Defaults Defined. It shall be a default under this Agreement if the Developer fails to comply with any term or provision of this Agreement, and fails to cure such failure within thirty (30) days written notice to the Developer of the default, but only if the default has not been cured within said thirty(30) days. Section 3.2. Remedies on Default. The parties agree that the Subsidy is a forgivable loan, repayable only if the Developer fails to fulfill its obligations under sections 2.1 and 2.3 of this Agreement. Upon the occurrence of a failure to create jobs as required by Section 2.1 or a failure to continue operations as required by Section 2.3 the Developer shall repay to the City upon written demand from the City a "pro rata share" of the Subsidy and interest on the Subsidy at the implicit price deflator as defined in Minnesota Statutes, Section 275.50, subd. 2, accrued from the Benefit Date. The term "pro rata share"means percentages calculated as follows: (a) if the failure relates to the number of jobs, the jobs required less the jobs created, divided by the jobs required; (b) if the failure relates to wages, the number of jobs required less the number of jobs that meet the required wages, divided by the number of jobs required; (c) if the failure relates to a failure to continue operations of the Minimum Improvements in accordance with Section 2.3, sixty (60) less the number of months of operation (where any month in which the Improvements are in operation for at least fifteen (15) days constitutes a month of operation), commencing on the Benefit Date and ending with the date the Developer ceases operation as reasonably determined by the City, divided by 60; and (d) if more than one of clauses (a) through (c) apply, the sum of the applicable percentages, not to exceed 100%. Section 3.3. Costs of Enforcement. Whenever any default occurs under this Agreement and the City shall employ attorneys or incur other expenses for the collection of payments 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 shall be liable to the City for the reasonable fees of such attorneys and such other expenses so incurred by the City; provided, that the Developer shall only be obligated to make such reimbursement if the City prevails in such collection or enforcement action. ARTICLE IV Miscellaneous Section 4.1. Provisions of Agreement Not Affected. This Agreement is not intended to modify or limit in any way the terms of the Contract. Section 4.2. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 4.3. Modifications. This Agreement may be modified solely through written amendments hereto executed by the Developer and the City. The Developer and City agree that if the Act is amended by the State legislature so as to shorten or eliminate the requirement that this Agreement contain the operating covenant contained in Section 2.2 and such amendment applies to this Agreement, the Developer and City will amend this Agreement to reflect such amendment to the law. Section 4.4. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 4.5. Judicial Interpretation. Should any provision of this Agreement require judicial interpretation, the court interpreting or construing the same shall not apply a presumption that the terms hereof shall be more strictly construed against one party by reason of the rule of construction that a document is to be construed more strictly against the party who itself or through its agent or attorney prepared the same, it being agreed that the agents and attorneys of both parties have participated in the preparation hereof. The City and Developer agree that this Agreement is intended to satisfy the requirements of the Act, which is incorporated herein and made a part hereof by reference. In the event that any provision of this Agreement conflicts with the terms of the Act, the terms of the Act shall govern. IN WITNESS WHEREOF, the City 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. CITY OF HASTINGS By Michael D. Werner, Mayor By Melanie Mesko, City Clerk GREEN LAWN UNDERGROUND SPRINKLERS INC. By Its By Its STATE OF MINNESOTA) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of , 2000, by Michael D. Werner, and Melanie Mesko, the Mayor and City Clerk of the City of Hastings, a home rule charter city under the laws of the state of Minnesota. Notary Public STATE OF MINNESOTA) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this_ day of , 2000, by and the and of Green Lawn Underground Sprinklers Inc., a Minnesota corporation, on behalf of the corporation., Notary Public EXHIBIT A Wage and Job Goals The Developer will create not less than 4 new full time or full time equivalent jobs at a wage of not less than $8.00 per hour. • e AGREEMENT AND CONSENT THIS AGREEMENT AND CONSENT is made and entered into as of the day of , 2000 by a ("Lender"), having its principal office at WITNESSETH: WHEREAS,the City of Hastings(the "City")has entered into a Purchase and Development Agreement dated as of_ (the "Development Agreement"), with Green Lawn Underground Sprinklers INC (the "Developer"); and WHEREAS, pursuant to the Development Agreement the City has agreed to sell to the Developer certain real property located within the City which real property is described on the attached Exhibit A and is referred to herein as the"Property", and WHEREAS,under the Development Agreement a portion of the purchase price to be paid by the Developer to acquire the Property is being deferred and placed as a special assessment lien against the Property(the"Assessment")and may have to be paid at some point in the future, all as is more specifically described in the Development Agreement; and WHEREAS,the Lender is making a loan in the principal amount of (the "Loan")to the Developer for the purpose of constructing certain improvements on the Property, which loan will be evidenced by a promissory note (the"Note") and secured by a Combination Mortgage, Security Agreement and Fixture Financing Statement (the"Mortgage"); and WHEREAS, the City has required as a condition of its sale of the Property to the developer that the Lender enter into this Agreement and Consent, without which the City would not convey the Property to the Developer. NOW, THEREFORE, in consideration of the covenants and undertakings of the City under the Development Agreement,the Lender does hereby agree as follows: Section 1. Subject to satisfaction of all conditions precedent contained in the documents relating to the Loan,the Lender will make to Loan to the Developer. Section 2. The Lender agrees that the Mortgage and the rights of the Lender, its successors and assigns, in and to the Property are subject and subordinate to the Assessments, as defined in the Development Agreement. If the Lender, or its successors and assigns,takes title to or possession of the Property through foreclosure of the Mortgage or a deed in lieu thereof,the Lender shall take title to and possession to the Property subject to the Assessments, the validity of which the Lender agrees that it will not contest. The Lender shall be entitled to the benefit of the provisions of the Development Agreement relating to the Assessments, including without limitation the provisions of Section 3.8(e)of the Development Agreement. Section 3. The Lender's agreements and consent contained in this Agreement and Consent are given subject to the understanding that the City has approved the Developer's evidence of financing as required in Section 7.1 of the Development Agreement and that the City's rights with respect to the receipt and application of the proceeds of insurance are subordinate to the lien of the Mortgages as provided in Section 5.1(d)of the Development Agreement. IN WITNESS WHEREOF,the Lender has executed this Agreement and Consent as of the date first written above. 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A-•° PZ m r ----o ---- -i h 4 a o i I I -�--- 4 - , 4 I d G---------- -----------........... -- Ir I I I _ LL —�—— x .o-s•s -i•s.ats rti Ir I TTT I � I - IIs ilggl I I II I � � -- I Otraao as as x,a tt I -------- 1----- ------ I ------------------�J _ .0-35 iV0 V111-C-1 November 16, 2000 TO: The Honorable Mayor & City Council FROM: John Grossman, HRA Director RE: Guardian Angels Block redevelopment financing Modification to Downtown Redevelopment Area Plan Modification to Downtown Tax Increment Financing Plan TIF District No. 3 and its Financing Plan for Guardian Angels Requested Action: Approve the attached Resolution approving the Downtown TIF District No. 1 plan modifications and establishing the TIF district No. 3 (qualified housing district) and approving its plan for the Guardian Angels redevelopment. Summary: The purpose of these plans is to facilitate the redevelopment of the Guardian Angels block by establishing a housing TIF district to pay for a part of the affordable housing, and by modifying the existing downtown redevelopment area boundary and TIF plan to allow for a $100,000 loan as additional financing for the housing. The attached TIF District No. 1- 3 Overview and Plan has been prepared by Ehlers & Associates, the public financial advisors of the Hastings HRA. Mark Ruff of Ehlers will make a presentation and answer your questions on how TIF is to be set up, used and administered in this development. Loren Brueggemann, representing the developer of the Guardian Angels block, Sherman Associates, will present a report on the progress of the financing the entire proposal. We understand that most of the financing has been approved and Sherman intends to close on the purchase of the property in mid-December and start work in early 2001. Sequence of actions relating to TIF modifications and District No. 3 The City, Planning Commission, HRA and County have taken steps 1 through 9 in respect to making the modifications and establishing the new housing district as required bylaw. We have reached the last steps, 10 and 11, final approval to execute the documents. 1. July 10: The City Council approved the concept of the financing plan for the redevelopment of the Guardian Angels block including tax increment financing, CDBG funds, HRA loan and Liveable Communities grant. 2. August 21: The City Council approved the Guardian Angels redevelopment site plan and re-zoned the property to R-4 PRD. These actions were recommended by the Planning Commission. 3. September 5: City Council authorizes the HRA to start the process of establishing a TIF housing district and to prepare a development agreement. 4. September 18. City Council order Public Hearing on Housing TIF District and modifications to Downtown TIF District. See attached notice. 5. October 2: Council authorized Liveable Communities Grant application on behalf of Guardian Angels redevelopment. 6. October 16: The City Council requested Dakota County CDA to reallocate $85,000 of Hastings' current CDBG balances for the Guardian Angels redevelopment. The CDA Board will take action on December 12. 7. October 23: The Planning Commission reviewed and found the Guardian Angels redevelopment plan consistent with the comprehensive plan and zoning code. See attachment. 8. November 9: The Housing and Redevelopment Authority reviewed and found the Guardian Angels tax increment financing plan conforms in all respects to the tax increment law. See attachment. 9. November 14. The Dakota County Board approved resolution finding the modifications and proposed District No. 3 are consistent with the County's position on using TIF. See attachment. 10. November 20: Public hearing; Council will consider action on proposed modifications and establishment of housing district. 11. December 12: HRA will consider execution of the Development Agreement which defines the conditions under which the tax increment will be paid. A. Proposed modification of the Downtown Redevelopment Area See maps attached to Overview. The existing Downtown TIF district No. 1 (parcels from which TIF is collected and the duration of the district) is not changed. The TIF boundary is shown by the dashed line. The downtown redevelopment area (parcels on which TIF may be used) is modified to included the Guardian Angels block and two parcels on the adjacent block, shown by the hatched area. The solid line will then be the boundary of the redevelopment area. Modification is necessary to permit a loan to be made of downtown TIF funds to the Guardian Angels development. The modification contributes to Comprehensive Plan policies: historic preservation, encouraging infill housing development, and maintaining a balanced supply of housing for varying income levels and types that meet life-cycle needs. The modification contributes to three Downtown Redevelopment Area goals: to assist redevelopment by private parties, to assist development of multi-family housing, and to assist historic preservation. B. Proposed modification to Downtown TIF District No. 1 Financing Plan. See attached Subsection 2.8. The budget on page 2-4 shows a reallocation of TIF revenue through 2006. The last budget modification was 1996. The $100,000 for Housing development assistance is the proposed Guardian Angels loan. In addition, this modification budgets more funding for acquisition and public works costs, taking into account a more public and less intense development of the river front and the needs of a possible commuter rail station. C. Guardian Angels TIF District No. 3 (Qualified Housing District) See location map for District No. 3 attached to the Overview. The area included in this new district will be Block 30 only. When the developer closes on the sale of the block, the County will reassess the market value of the block. The taxes paid on that market value prior to redevelopment will go to the city, county and school district. The taxes paid on the increase in value caused by the redevelopment and new construction will go to the developer. This will be a"pay as you go" district which means the increment helps pay the developer's debt instead of a City debt. There is no risk to City finances because the increment will be paid annually to the developer after the developer pays real estate taxes. D. Tax Increment Financing Plan for District No. 3. See attached Tax Increment Projections. The increment is an annual income which retires approximately $484,000 of a $1.5 million MHFA mortgage for 25 years. These principal and interest payments will total around $1.12 million. The amount to be paid by increment is specified and limited. If the amount of increment goes up over time, the debt may be paid off earlier. A qualified housing district meets the "but for" test for TIF districts because the need and public purpose of the TIF assistance for affordable rents is clear. By paying for approximately one third of the mortgage, the increment contributes directly to affordable rents. Without TIF the rent of the affordable townhouses and apartments would be approximately $125 per month more to service the mortgage debt. Under the terms of the development agreement, the rents must remain affordable for the life of the district. In addition they must remain affordable for 30 years, the term of them mortgage. This new housing district contributes to the housing goals and policies of the City's Comprehensive Plan: historic preservation, encouraging infill housing development, and maintaining a balanced supply of housing for varying income levels and types that meet life-cycle needs. Attachments: 1. The Resolution 2. Overview of Modifications and Housing TIF district No. 3 including maps of the Downtown Redevelopment Area modification and of the Guardian Angels TIF District No. 3. 3. Financing Plan for Downtown Redevelopment TIF District 4. Financing Plan for the Guardian Angels Housing TIF District 5. Notice of public hearing. 6. HRA and Planning Commission Resolutions. 7. Dakota County Resolution. S. The complete TIF modification and plan document for Districts 1 and 3. C:\VANN \Profiles\jgrosm=\Personal\HRA\GA.TIFplan.PC.wpd r FINDINGS CITY COUNCIL CITY OF HASTINGS DAKOTA COUNTY STATE OF MINNESOTA Dated November 20,2000 RESOLUTION NO. RESOLUTION ADOPTING THE MODIFICATION TO THE REDEVELOPMENT PLAN FORHASTINGS DOWNTOWN REDEVELOPMENT AREA AND THE TAX INCREMENT PLAN FOR TAX INCREMENT FINANCING DISTRICT NO.1;AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 3 WITHIN HASTINGS DOWNTOWN REDEVELOPMENT AREA AND ADOPTING THE TAX INCREMENT FINANCING PLAN THEREFOR. Council member introduced the following resolution and moved its adoption: BE IT RESOLVED by the City Council(the"Council").of the City of Hastings, Minnesota(the"City"), as follows: Section 1. Recitals. 1.01. The Board of Commissioners(the'Board")of the Hastings Housing and Redevelopment Authority(the"HRA") has heretofore established Hastings Downtown Redevelopment Area and adopted the Redevelopment Plan therefor.It has been proposed by the HRA and the City that the City adopt the Modification to the Redevelopment Plan for Hastings Downtown Redevelopment Area and the Tax Increment Plan for Tax Increment Financing District No. 1; and establish Tax Increment Financing District No.3(the"District")therein and adopt the Tax Increment Financing Plan therefor(collectively,the"Plans"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, 469.001 through 469.047 and 469.174 through 469.179, all inclusive, as amended, (the "Act") all as reflected in the Plans, and presented for the Councirs consideration. 1.02. The HRA and City have investigated the facts relating to the Plans and have caused the Plans to be prepared. 1.03. The HRA and City have performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Plans, including,but not limited to,notification of Dakota County and Independent School District No.200 having taxing jurisdiction over the property to be included in the District,a review of and written comment on the Plans by the City Planning Commission, and the holding of a public hearing upon published notice as required by law. 1.04. Certain written reports (the 'Reports") relating to the Plans and to the activities contemplated therein have heretofore been prepared by staff and submitted to the Council and/or made a part ofthe City files and proceedings onthe Plans. The Reports include data, information and/or substantiation constituting or relating to the bases for the other findings and determinations made in this resolution. The Counc(i,hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. Section 2. Findings for the Adoption and Approval of the Plans. 2.01. The Council hereby finds that the Plans, are intended and, in the judgment of this Council, the effect of such actions will be,to provide an impetus for development in the public purpose and accomplish certain objectives as specified in the Plans,which are hereby incorporated herein. Section 3. Findings for the Establishment of Tax Increment Financing District No 3 3.01. The Council hereby finds that the District is in the public interest and is a "qualified housing district" under Minnesota Statutes, Section 469.174, subd. 11 and Minnesota Statutes, Section 273.1399, subd. 1(c). 3.02. The Council further finds that the proposed development would not occur solely through private investment within the reasonably foreseeable future and therefore the use of tax increment financing is deemed necessary, that the Plans conform to the general plan for the development or redevelopment of the City as a whole, and that the Plans will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development of the District by private enterprise. 3.03. The City finds that the District is a qualified housing district and is exempt from state aid losses in accordance with Minnesota Statutes, Section 273.1399 subd. 6(c). 3.04. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. Section 4. Public Purpose 4.01. The adoption of the Plans conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the City which is already built up,to provide housing opportunities,to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. Section 5. Approval and Adoption of the Plans. 5.01. The Plans,as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein,are hereby approved,ratified,established,and adopted and shall be placed on file in the office of the City Administrator. 5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and to negotiate, draft,prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 5.03 The Auditor of Dakota County is requested to certify the original net tax capacity of the District, as described in the Plans,and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased, and the City staff is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify,together with a list of all properties within the District,for which,building permits have been issued during the I8 months immediately preceding the adoption of this resolution. 5.04. The City Administrator is further authorized and directed to file a copy of the Plans with the Commissioner of Revenue. The motion for the adoption of the foregoing resolution was duly seconded by Council member and upon a vote being taken thereon,the following voted in favor thereof: and the following voted against the same: WBEREUPON,the Mayor declared the Resolution to be duly passed. CITY OF HASTINGS Michael D. Werner, Its Mayor ATTEST: Melanie Mesko,Administrative Assistant/City Clerk CERTIFICATION Melanie Mesko,Administrative Assistant/City Clerk, of the City of Hastings, does hereby certify the foregoing Resolution is a true and correct copy of the Resolution that was duly adopted at a regular meeting of the City Council of the city of Hastings held November 20, 2000. (SEAL) Melanie Mesko Administrative Assistant/City Clerk EXIT A RESOLUTION# The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 3 as required pursuant to MS., Section 469.175, Subd. 3 are as follows: 1. Finding that Tax Increment Financing District No. 3 is a quaked housing district as defined in M.S., Section 469.174, Subd 11 andMS., Section 273.1399, Subd 1(c). The District consists of one parcel. The District is being created to facilitate the construction of a 10 unit rental townhouse development and the rehabilitation of the former Guardian Angels School into 20 units of rental housing. The housing project will provide quality affordable housing and reuse under utilized property in the City of Hastings. Other development not assisted by tax increment includes a daycare,shelter,and community center. The market value of non-assisted housing or commercial property will be less than 20%of the total economic and/or construction value of the planned improvements. The development receiving assistance in the District will consist entirely of housing facilities which meet all of the requirements for a low-income housing credit under section 42 of the Internal Revenue Code of 1986. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment f nancing is deemed necessary. The City has determined that, in view of reduced revenues from a housing facility intended for occupancy by low and moderate income persons,the development proposed in the Plan would not be financially feasible without substantial public assistance, including federal low income tax credits and tax increment financing. In making this finding,the City has relied upon the developer's pro forma submitted to the City and Authority, and requirements of other state and local assistance to the development. 3. Finding that the Tar Increment Financing Plan for Tax Increment Financing District No. 3 conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the Plan and found that the Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for Tar Increment Financing District No. 3 will afford maximum opportunity, consistent with the sound needs of the City as a whole,for the development or redevelopment of Hastings Downtown Redevelopment Area by private enterprise. Through the implementation of the Plan,the HRA or City will increase the availability of safe,decent,and affordable lifecycle housing in the City. TIF District No. 1-3 Overview City of Hastings Proposed action: 1. Modification to the Redevelopment Plan for Hastings Downtown Redevelopment Area. 2. Establishment of Tax Increment Financing District No. 1-3 and the adoption of the Tax Increment Financing Plan. Type of TIF District: A Qualified Housing District(A portions of units are both rent and income restricted.) Legal Description: All of Block 30, Original Town of Hastings Location: See the attached map Proposed The District is being created to facilitate the construction of a 10 unit rental townhouse development: development and the rehabilitation of the former Guardian Angels School into 20 units of rental housing. The housing project will provide quality affordable housing and reuse under utilized property in the City of Hastings. Other development not assisted by tax increment includes a daycare, shelter, and community center. Estimated annual $463000 tax increment: Proposed uses: The TIF Plan contains the following budget: Land/Building Acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $200,000 Site Improvements/Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 Streets & Sidewalks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 Parking Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 Renovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 Public Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 Loan Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 Administrative Costs (up to 10%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,000 SUBTOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.250,000 Bond Principal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000 Loan Principal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.250.000 Form of financing: The project will be financed by a pay-as-you-go note. The City reserves the right to issue bonds as well as authorizing a pay-as-you-go-note. Additional indebtedness may be required to finance other authorized activities. Maximum duration: The duration of District No. 1-3 will be 25 years from the date of receipt of the first increment by the City. The date o£receipt by the City of Hastings of the first tax increment will be approximately 2003. Thus,it is estimated that District No. 1-3,including any modifications of the Plan for subsequent phases or other changes,would terminate after 2028 or when the Plan is satisfied If increment is received in 2002 due to inflation,the term of the District will be 2027. The City reserves the right to decertify District No. 1-3 prior to the legally required date. E H L E R S 3060 Centre Pointe by: Ehlers&Associates, Inc. ointe Drive, Roseville, MN 55113-1105 & ASSOCIATES INC (651)697-8500 fax (651)697-8555 www.ehiers-inc.com 4C!±6'' Administrative fee: Up to 10%of annual increment, if costs are justified. LGA/HACA No penalty or local contribution required. penalty: 3 Year Activity Rule At least one of the following activities must take place in the District within 3 years from the date (§469.176 Subd. 1a) of certification: ❑ bonds have been issued ❑ the authority has acquired property within the district ❑ the authority has constructed or caused to be constructed public improvements within the district The estimated date whereby this activity must take place is March,2003. 4 Year Activity Rule After four years from the date of certification of the District one of the following activities must (§469.176 Subd 6) have been commenced on each parcel in the District: ❑ demolition ❑ rehabilitation ❑ renovation ❑ other site preparation(not including utility services such as sewer and water) If the activity has not been started by the approximately March,2004,no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. 6 Year Rule Within 5 years of certification revenues derived from tax increments must be expended or (§469.1763 Subd 3) obligated to be expended. Tax increments are considered to have been expended on an activity within the District if one of the following occurs: ❑ the revenues are actually paid to a third party with respect to the activity ❑ bonds, the proceeds of which must be used to finance the activity, are issued and sold to a third party, the revenues are spent to repay the bonds, and the proceeds of the bonds either are reasonably expected to be spent before the end of the later of(i)the five year period, or (ii) a reasonable temporary period within the meaning of the use of that term under §. 148(cxl)of the Internal Revenue Code,or are deposited in a reasonably required reserve or replacement fund ❑ binding contracts with a third party are entered into for performance of the activity and the revenues are spent under the contractual obligation ❑ costs with respect to the activity are paid and the revenues are spent to reimburse a pay for payment of the costs, including interest on unreimbursed costs. Any obligations in the Tax Increment District made after approximately March, 2005,will not be eligible for repayment from tax increments. The previous summary contains an overview of the basic elements of the proposed Tax Increment Financing Plan for Tax Increment Financing District No. 1-3. More detailed information on each of these topics can be found in the complete TIF Plan. YA I� r: 1 = Mo • -=` \2 : ,none::::-_-,k ww - nnli Inm 1 , PC �� ��•� x �.a � � ALJ e �� • ^ r Fm m �� S yy MEN LA lip VM Tj Ir 1"t 5 ✓ 'C �w, ,.t�� s Y I f g+a<R 4^ u I J � J JT l # djy ¢ r s ■ s ` ■ J � I � i z4 1 �S � Ell r ry Q � Fid LA 30 { r p� It S y S 4 LL cy) >1 LU 0 0 .— LI.- 4-a0- ca z Cl)O 0 U CCS � 0 Q +�-, •� -� ,-�. � 4-a co U) _j L 711 L r . 5 I�]-j TYLER ST El t 1 L,-! RAMSEYST LF 1 Ln C.D cy) -li r L L-4-- SIBLEY ST Lj L L7 1 L VERMILLION ST Downtown Redevelopment tax increment project costs,2000-2006 • Acquisition $1,400,000 • Public Improvements 1,200,000 • Commercial rehabilitation loans/interest reductions 200,000 • Housing development assistance 100,000 • Administrative costs 300,000 • Interest Costs 210.000 TOTAL PROJECT COSTS $3,410,000 Loan/Bond Proceeds 3.200,000 TOTAL FINANCING AND PROJECT COSTS $6,610,000 Estimated costs associated with Downtown Redevelopment Tax Increment Financing District are subject to change. The cost of all activities to be considered for tax increment financing will not exceed the budget above without formal modification pursuant to applicable statutory requirements. Subsection 2-9. Sources of Revenue/Bonded Indebtedness Public improvements costs,acquisition,relocation,and site preparation costs and other costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The HRA reserves the right to use other sources of revenue legally applicable to the Redevelopment Plan and the Tax Increment Financing Plan,including,but not limited to, special assessments,general property taxes,state aid for road maintenance and construction, proceeds from the sale of land, other contributions from the Developer and investment income,to pay for the Estimated Public Costs. The HRA reserves the right to incur bonded indebtedness as a result of the Tax Increment Financing Plan. As presently proposed, the implementation of the plan for the development of the Hastings Downtown Redevelopment Area could include a general obligation or revenue bond issue,interfund loan,or pay-as-you- go note of approximately$3,200,000. Additional indebtedness may be required to finance other authorized activities. Repayments of the loans might not be considered tax increment upon repayment or other disposition of the proceeds given statutory definitions of tax increment for pre-1979 districts. The estimated sources of funds for the Downtown TIF District are contained in the table below. Sources Total Cash balance $1,100,000 Tax increment received: 2000-06 2,310,000 Loan/Bond Proceeds 3,200,000 TOTAL $6,610,000 Hastings HRA Modification to the Redevelopment Plan for the Hastings Downtown Redevelopment Area 2-4 11/15/00 City of Hastings:Tax Increment Projections-Guardian Angels Page 1 T.I.F.CASH FLOW ASSUMPTIONS Inflation Rate: 0.0000% Pay-As-You-Go Interest Rate: 6.500% Tax Extension Rate: 1.300000 Pay 01 Est. BASE VALUE INFORMATION Total Tax Value Capacity 19-32150-010-30 609,000 8,392 Estimate 0 0 0 0 Total Original Market Value 609,000 8.392 Property is currently exempt from real estate taxes. Class Rate: Multi-Family Market Rate 2.4000% Pay 00 Multi-Family 4(d) 1.0000% Pay 00 Original Tax Capacity(when certified-currently exempt property): 0 Pay 00 Original Tax Capacity(when use is changed): 8,392 Pay 00 PROJECT VALUE INFORMATION Type of Tax Increment District: Qualified Housing Type Of Units MV Per Total Market Total Tax Year Year Project Unit Value Capacity Completed Payable Townhomes-Mkt. 4 70,727 282,908 6,790 2001 2003 Daycare/Community/Shelter 795,725 25,555 2001 2003 Affordable townhom 6 70,727 424,362 4,244 2001 2003 Affordable apts. 20 50,437 1,008,740 10,087 2001 2003 Total 30 2,511,735 46,675 SUMMARY Total Annual Taxes* 60,678 Total Annual Tax Increment Afler Admin. 44,792 'Does not include market value tax rates,which are not captured by tax increment r HA100-01 - Prepared by Ehlers/Publimrp Inc. tifplan091800.123 11/15/00 City of Hastings:Tax Increment Projections-Guardian Angels Page 2 TAX INCREMENT CASH FLOW Original Project Captured Semi-Annual City/HRA Semi-Annual Cumul. Years of PAYMENT DATE/ 'PERIOD BEGINNING Tax Tax Tax Gross Tax Admin. Net Tax NPV Tax PERIOD ENDING Yrs. Mth. Yr. Capacity Capacity Capacity Increment 10.00% Increment 6.50% Increment Yrs. Mth. Yr. 0.0 02-01 2001 0 0 0 0 0 0 0 0.0 0.5 08-Ot 2001 0.5 08-01 2001 0 0 0 0 0 0 0 0.0 1.0 02-01 2002 1.0 02-01 2002 0 0 0 0 0 0 0 0.0 1.5 08-01 2002 1.5 08-01 2002 0 0 0 0 0 0 0 0.0 2.0 02-01 2003 2.0 02-01 2003 8,392 46,675 38,283 24,884 (2,488) 22,396 19,086 0.5 2.5 08-01 2003 2.5 08-01 2003 8,392 46,675 38,283 24,884 (2,488) 22,396 37,571 1.0 3.0 02-01 2004 3.0 02-01 2004 8,392 46,675 38,283 24,884 (2,488) 22,396 55,475 1.5 3.5 08-01 2004 3.5 08-01 2004 8,392 46,675 38,283 24,884 (2,488) 22,396 72,815 2.0 4.0 02-01 2005 4.0 02-01 2005 8,392 46,675 38,283 24,884 (2,488) 22,396 89,609 2.5 4.5 08-01 2005 4.5 08-01 2005 8,392 46,675 38,283 24,884 (2,488) 22,396 105,874 3.0 5.0 02-01 2006 5.0 02-01 2006 8,392 46,675 38,283 24,884 (2,488) 22,396 121,628 3.5 5.5 08-01 2006 5.5 08-01 2006 8,392 46,675 38,283 24,884 (2,488) 22,396 136,885 4.0 6.0 02-01 2007 6.0 02-01 2007 8,392 46,675 38,283 24,884 (2,488) 22,396 151,663 4.5 6.5 08-01 2007 6.5 08-01 2007 8,392 46,675 38,283 24,884 (2,488) 22,396 165,975 5.0 7.0 02-01 2008 7.0 02-01 2008 8,392 46,675 38,283 24,884 (2,488) 22,396 179,837 5.5 7.5 08-01 2008 7.5 08-01 2008 8,392 46,675 38,283 24,884 (2,488) 22,396 193,262 6.0 8.0 02-01 2009 8.0 02-01 2009 8,392 46,675 38,283 24,884 (2,488) 22,396 206,265 6.5 8.5 08-01 2009 8.5 08-01 2009 8,392 46,675 38,283 24,884 (2,488) 22,396 218,858 7.0 9.0 02-01 2010 ).0 02-01 2010 8,392 46,675 38,283 24,884 (2,488) 22,396 231,055 7.5 9.5 08-01 2010 1 9.5 08-01 2010 8,392 46,675 38,283 24,884 (2,488) 22,396 242,868 8.0 10.0 02.01 2011 1 10.0 02-01 2011 8,392 46,675 38,283 24,884 (2,488) 22,396 254,310 8.5 10.5 08-01 2011 10.5 08-01 2011 8,392 46,675 38,283 24,884 (2,488) 22,396 265,391 9.0 11.0 02-01 2012 11.0 02-01 2012 8,392 46,675 38,283 24,884 (2,488) 22,396 276,123 9.5 11.5 08-01 2012 11.5 08-01 2012 8,392 46,675 38,283 24,884 (2,488) 22,396 286,518 10.0 12.0 02-01 2013 12.0 02-01 2013 8,392 46,675 38,283 24,884 (2,488) 22,396 296,585 10.5 12.5 08-01 2013 12.5 08-01 2013 8,392 46,675 38,283 24,884 (2,488) 22,396 306,336 11.0 13.0 02-01 2014 13.0 02-01 2014 8,392 46,675 38,283 24,884 (2,488) 22,396 315,779 11.5 13.5 08-01 2014 13.5 08-01 2014 8,392 46,675 38,283 24,884 (2,488) 22,396 324,925 12.0 14.0 02-01 2015 14.0 02-01 2015 8,392 46,675 38,283 24,884 (2,488) 22,396 333,784 12.5 14.5 08-01 2015 14.5 08-01 2015 8,392 46,675 38,283 24,884 (2,488) 22,396 342,363 13.0 15.0 02-01 2016 15.0 02-01 2016 8,392 46,675 38,283 24,884 (2,488) 22,396 350,673 13.5 15.5 08-01 2016 15.5 08-01 2016 8,392 46,675 38,283 24,884 (2,488) 22,396 358,721 14.0 16.0 02-01 2017 16.0 02-01 2017 8,392 46,675 38,283 24,884 (2,488) 22,396 366,515 14.5 16.5 08-01 2017 16.5 08-01 2017 8,392 46,675 38,283 24,884 (2,488) 22,396 374,065 15.0 17.0 02-01 2018 17.0 02-01 2018 8,392 46,675 38,283 24,884 (2,488) 22,396 381,376 15.5 17.5 08-01 2018 17.5 08-01 2018 8,392 46,675 38,283 24,884 (2,488) 22,396 388,458 16.0 18.0 02-01 2019 18.0 02-01 2019 8,392 46,675 38,283 24,884 (2,488) 22,396 395,316 16.5 18.5 08-01 2019 18.5 08-01 2019 8,392 46,675 38,283 24,884 (2,488) 22,396 401,959 17.0 19.0 02-01 2020 19.0 02-01 2020 8,392 46,675 38,283 24,884 (2,488) 22,396 408,393 17.5 19.5 08-01 2020 3.5 08-01 2020 8,392 46,675 38,283 24,884 (2,488) 22,396 414,624 18.0 20.0 02-01 2021 40.0 02-01 2021 8,392 46,675 38,283 24,884 (2,488) 22,396 420,659 18.5 20.5 08-01 2021 20.5 08-01 2021 8,392 46,675 38,283 24,884 (2,488) 22,396 426,504 19.0 21.0 02-01 2022 21.0 02-01 2022 8,392 46,675 38,283 24,884 (2,488) 22,396 432,165 19.5 21.5 08-01 2022 21.5 08-01 2022 8,392 46,675 38,283 24,884 (2,488) 22,396 437,648 20.0 22.0 02-01 2023 22.0 02-01 2023 8,392 46,675 38,283 24,884 (2,488) 22,396 442,958 20.5 22.5 08-01 2023 22.5 08-01 2023 8,392 46,675 38,283 24,884 (2,488) 22,396 448,101 - 21.0 23.0 02-01 2024 23.0 02-01 2024 8,392 46,675 38,283 24,884 (2,488) 22,396 453,082 21.5 23.5 08-01 2024 23.5 08-01 2024 8,392 46,675 38,283' 24,884 (2,488) 22,396 457,907 22.0 24.0 02-01 2025 24.0 02-01 2025 8,392 46,675 38,283 24,884 (2,488) 22,396 462,579 22.5 24.5 08-01 2025 24.5 08-01 2025 8,392 46,675 38,283 24,884 (2,488) 22,396 467,105 23.0 25.0 02-01 2026 25.0 02-01 2026 8,392 46,675 38,283 24,884 (2,488) 22,396 471,488 23.5 25.5 08-01 2026 25.5 08-01 2026 8,392 46,675 38,283 24,884 (2,488) 22,396 475,733 24.0 26.0.02-01 2027 26.0 02-01 2027 8,392 46,675 38,283 24,884 (2,488) 22,396 479,844 24.5 26.5 08-01 2027 26.5 08-01 2027 8,392 46,675 38,283 24,884 2,488 22,396 483,826 25.0 27.0 02-01 2028 Totals 1,244,212 124,421 1,119,791 Present Values 547,585 53,758 483,826 HA100-01 Prepared by Ehlers/Publicorp Inc. tifplan091800.123 PUBLIC NOTICES V NOTICE OF PUBLIC HEARING NOTICE OF ASSESSMENT LIEN CITY OF HASTINGS FORECLOSURE SALE THIS COMMUNICATION S FROM A DE DAKOTA COUNTY COLLECTOR. THIS COMMUNICATION IS. STATE OF MINNESOTA ATTEMPT TO COLLECT A DEBT AND AI NOTICE IS HEREBY GIVEN that the City Council of the City of Hastings,Dakota County,State of FOR ON THAT PIUURP.OSE.AINED WILL BE USI Minnesota,will hold a public hearing on November 20,2000,at approximately 7:00 p.m.at the Hast- NOTICE IS HEREBY GIVEN THAT default t Ings City Council Chambers In City Hall, 101 4th Street Fast,Hastings,Minnesota,relating to the been made in the terms and conditions of t Proposal of the Hastings Housing Redevelopment Authority(the"HRA')to adopt the Modification to Declaration Establishing a Plan for Apartmt U's Redevelopment Plan for Hastings Downtown Redevelopment Area;to establish Tax Increment Finandng District No.3(a qualified housing tax Increment financing disUkt)within Hastings Down- Ownership for Pursuant a the s,a Coote mi n< town Redevelopment Area and adopt the Tax Increment FinancingPlan the"PIs 9 recordminlurAct the Windham Hills,a County Recorder suant to Minnesota Statutes,480.001 through 469.047 and Sectins 469.174 to 6464 9.179 f all Inclu- recorded in the Count of the County Recorder sive,as amended.Copies of the Plane are on file and available for public inspection at the office of and for Dakota County,Minnesota on Decent the City Administrator at City Hell, 3,1974 as Document No.443443(the"Datta The property to be Included in Tax Increment Financing District No.3 ic located within Ha s dorfl,and the By-Laws of Windham Hills Com Downtown Redevelopment Area and the City of Hastings.A map of Hastings Downtown Rede minium Appartments Association(the"By-Lawl ment Area and Tax Increment Financing District No.3 therein is set to below.Sub' to certain Which Ls Exhibit A to the Declaration. limitations,tax increment from Tax Increment Financia District No.3 may be LEGAL DESCRIPTION OF PROPERTY: within the boundaries of Hastings Downtown Redevelopment Area y spent on eligible uses ' Aparhnent No. 112,Apartment Ownership No.18,Windham Hills Condominium,Dako- ta County,Minnesota LIENEE: eter J. the 41.1en CITY OF H A S T I N Ga S Modification LIENOR:WindhamdHil s Conddominium of Pow town Apartments Association,a Minnesota non- profit corporation (the'Association"or I' Project Area I MOUNT DUE AND CLAIMED TO BE DUE w. BY THE LIENEE TO THE ASSOCIATION N�`-•��� AS OF THE DATE OF THIS NOTICE INCLUDING TAXES,IF ANY,PAID BY THE ASSOCIATION: $3,726.13. \ ' r._ Said amount Includes unpaid ease n Jand/or Installments thereof,late charges,. ,re: {,l .. I I ;1 '• NSF charges,costs of collection and foreciosin to attorney's fees and all other charges(coli ' _ �' referred to hereinafter as the"Debr)assessed I� ' �r l e'r and levied against said property by the Associ 7prT��T 'Fl '�— - tion through the date of this Notice, iI F `' ITr L - the Declaration,the By-Laws and Minrnesp w f TI .=r-� _... Statutes,Chapter 5158.Pursuant to Minneso - Statutes Section 5158.3-118 and Section 17.G , �•, I tai )�� sm team the Dedaretlon,the Debt creates a ken h favor ��- the Association upon and against said property. Pursuant to the Declaration,the By-Laws at Minnesota Statutes,Chapter 5158,the Lienee • a r y:,.:;,>:; • financial) obligated to and/oressments _;I-L7F C .. .. � I Y 9 pay ro the Aaaoclaticn r P' !I .ea e.{--�.. I amen x..a r of(asmay be accelerated by the Assoc dor re •e a a L4_ a kI'.T late charges,interest,NSF charges,costs of a 'r• --aa— lection and foreclosure,attorney's fees incurre e ► -- i' by the Association in collection of the Debt,ar foreclosure the Association's lien against Ila All interested persons me a properly,and all other amounts which the Aamr Ing in writing. y appear the hearing and present their views orally or prior to the meet- ation assesses to'and levies against said props BY ORDER OF THE CITY COUNCIL OF ty from and after the date of this Notice,whk THE CITY OF HASTINGS,MINNESOTA additional assessments,fees,charges and otlu M. amounts are part of the Associa8ods ken 1118 , City David dminiatrator 32M Prim'rt subject to this foreclosure. DATE AND PLACE OF RECORDING OF LIE? The ved0ed Lien Statement In favor of t? It elation Is dated May 3,2000 and record, h office of the County Recorder In and for uaxot N I N I NG E R TOWNSHIP No.�'Minnesota an May S.2000 as oa.amet No.1889272 All pre-foreclosure requirements have bee PUBLIC HEARING wmpfiedwith p �dingetlawaootherwiisse�m actions now Notice is.hereby given that the Nininger Town Board will hold a public hearing on Tuesday, er the Debtor any portion thereof.The Liens has not been released from his personal obkga November 21 at 2000 at 7:00 p.m.at the Nininger Town Hall to consider the, " streets and alleys: 8th SL Lying West of the West line of Campbell Ave.(also known as Jason A of the West line of Breckenridge Ave. Breckenridge Ave.and Donnelly Ave.Lying South of the South line of 124th as 8th SL)and North of the center One of County Road 87. The alleys in blacks 102 and'103 City of Nininger. All interested parties may attend. 11KJ-16 Judy Krupich Nininger Township t • e NOTICE OF MORTGAGE FORECLOSURE SALE CERTIFICATE OF ASS THE RIGHT TO VERIFICATION OF THE DEBT MINNESOTA SECRETA AND IDENTIFICATION OF THE ORIGINAL Minnesota Statutes( CREDITOR WITHIN THE TIME PROVIDED.BY I.State the exact assumed LAW IS NOT AFFECTED BY THIS ACTION. the business is or will be cont NOTICE IS HEREBY GIVEN:That default has ucts Research. occurred in the conditions of the mortgage dated 2•State the address of the F October 28,1995,executed by Donald A.Nelson business:8556140th Street Y and Lesley J.Nelson,husband and wife,as mort- MN 55124. .-Vagor(s),to Great Lakes Mortgage,a partner- - 3.List the name and compie -ship,as mortgagee,moordetl•,In the office of the all persons conducting busine County Recorder of Dakote'County,on Decem- ber 26, 1995 as Document No. 1320306,which Street ,Apple Valley;Mh mortgage conveyed and mortgaged the following 4.I."rutty that I am aumoriz .described property,situated ithe county of tificate and I further certify the Dakota and State of Minnesota: by signing this certificate,I am suo)ect to the DWELLING Ot-LCJo i n.,v rwv ..,., - Lot 10, Block 2, Greenleaf 9th Addition, penalties of peq'ury as set forth In Minnesota NOT PROPERTY USED IN AGRICULTURAL according to the recorded pint th.r.nf nn fii. Statutes section 609.48 as if I had ainnM+hi. ,,.,•,N.i ANTI ARF ARANDONED. HASTINGS HOUSING AND REDEVELOPMENT AUTHORITY CITY OF HASTINGS DAKOTA COUNTY STATE OF MINNESOTA RESOLUTION NO. 6-2000 RESOLUTION ADOPTING THE MODIFICATION TO THE REDEVELOPMENT PLAN FORHASTINGS DOWNTOWN REDEVELOPMENT AREAAND THE TAX INCREMENT PLAN FOR TAX INCREMENT FINANCING DISTRICT NO.1;AND ADOPTING THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3 WITHIN HASTINGS DOWNTOWN REDEVELOPMENT AREA. WHEREAS, it has been proposed by the Board of Commissioners (the "Board") of the Hastings Housing and Redevelopment Authority(the"HRA")and the City of Hastings(the"City") that the HRA adopt the Modification to the Redevelopment Plan for Hastings Downtown Redevelopment Area and adopt a Modification to the Tax Increment Financing Plan(the'Plans")for Tax Increment Financing District No.3 (the"District"),all pursuant to and in conformity with applicable law,including Minnesota Statutes, Sections 469.001 through 469.047,and Sections 469.174 to 469.179,inclusive,as amended(the"Act"),all as reflected in the Plans and presented for the Board's consideration; and WHEREAS,the HRA has investigated the facts relating to the Plans and has caused the Plans to be prepared; and WHEREAS,the HRA has performed all actions required by law to be performed prior to the adoption of the Plans. The HRA has also requested the City Planning Commission to provide for review of and written comment on the Plans and that the Council schedule a public hearing on the Plans upon published notice as required by law. NOW, THEREFORE,BE IT RESOLVED by the Board as follows: 1. The HRA hereby fords that the District as modified herein is in the public interest and is a "qualified housing district" under Minnesota Statutes, Section 469.174, subd. 11 and Minnesota Statutes, Section 273.1399, subd. 1(c), and finds that the Plans conform in all respects to the requirements of the Act and will help fulfill a need to provide affordable housing in the City. 2. The HRA further finds that the Plans will afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development or redevelopment of the project area by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible. 3. Conditioned upon the approval thereof by the City Council following its public hearing thereon, the Plans, as presented to the HRA on this date, are hereby approved, established and adopted and shall be placed on file in the office of the City Administrator. 4. Upon approval of the Plans by the City Council, the staff, the HRA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and for this purpose to negotiate,draft,prepare and present to this Board for its consideration all further plans,resolutions,documents and contracts necessary for this purpose. Approval of the Plans does not constitute approval of any project or a Development Agreement with any developer. 5. Upon approval of the Plans by the City Council, the City Administrator is authorized and directed to forward a copy of the Plans to the Minnesota Department of Revenue pursuant to Minnesota Statutes 469.175, subdivision 2. 6. The City Administrator is authorized and directed to forward a copy ofthe Plans to the Dakota County Auditor and request that the Auditor certify the original tax capacity of the District as described in the Plans, all in accordance with Minnesota Statutes 469.177. Approved by the Board of Commissioners of the Hastings Housing and Redevelopment Authority this day of /LJ/V� 2000. Chair ATTEST: five it PLANNING COMMISSION CITY OF HASTINGS, MINNESOTA RESOLUTION RESOLUTION OF THE CITY OF HASTINGS PLANNING COMMISSION FINDING THAT THE MODIFICATION TO THE REDEVELOPMENT PLAN FOR HASTINGS DOWNTOWN REDEVELOPMENT AREA AND THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT DISTRICT NO.I AND THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3 CONFORM TO THE GENERAL PLANS FOR THE DEVELOPMENT AND REDEVELOPMENT OF THE CITY. WHEREAS,the City Council for the City of Hastings,Minnesota, (the"City")and the Hastings Housing and Redevelopment Authority(the HRA)have proposed to adopt a Modification to the Redevelopment Plan for Hastings DowntownRedevelopmentArea andthe Tax IncrementFinancmgPlan for Tax IncrementDistrict No. 1 and a Tax Increment Financing Plan for Tax Increment Financing District No. 3 (the"Plans")and has submitted the Plans to the City Planning Commission (the "Commission") pursuant to Minnesota Statutes, Section 469.175,,Subdivision 3, and WHEREAS,the Commission has reviewed the Plans to determine their conformity with the general plans for the development and redevelopment of the City as described in the comprehensive plan for the City. NOW, THEREFORE, BE IT RESOLVED by the Commission that the Plans conform with the general plans for the development and redevelopment of the City as a whole. Dated: October 23, 2000 ATTEST: City Planner 11114.00 12:15 DAKOTA COUNTY-TREASURERS OFFrCE 001 Supporting Documents: Previous Board Action(s): Attachment A:Summary , Attachment B:Correspondence from City of Hastings dated 1015100 Attachment C:Table of Contents for Proposed Modlflcatlons and Plan (complete copy on file with Clerk to the Board) Attachmonl D:Site Maps RESOLUTION Review Of Proposed Modification To Tax Increment Financing District No. 1 And Review Of Proposed Tax Increment Financing District No. 3 In The City Of Hastings WHEREAS, the City of Hastings is proposing a modification to the Tax Increment Financing (TIF)Plan for the Downtown Redevelopment TIF District No. 1, and the establishment of TIF District No. 3, a Qualified Housing District In the City of I castings; and WHEREAS, the Dakota County Highway department has reviewed the modification for Hastings Downtown Redevelopment TIF District No. 1 and proposed TIF plan for Hastings TIF District No. 3 and has found that there are no County road Impacts that require TIF revenue from the City of Hastings; and WHEREAS, the stated purpose of the modification Is to authorize the acquisition of additional property within the Downtown Revelopment Area and to authorize an Increase In the budgeted project costs for TIF District No. 1 for the years 2000 through 2006;and WHEREAS,the stated purpose of proposed TIF District No. 3 is to facilitate the rehabilitation of the former Guardian Angels School into 20 rental housing units and the construction of a 10-unit rental townhouse development,for a total of 30 units; and WHEREAS, the.30-unit housing development Is a "Qualified Housing District"pursuant to Minn. Stat. § 469.174 subd. 11 and Minn. Stat. § 273.1399, subd. 1 (c). NOW,THEREFORE, BE IT RESOLVED,That the Dakota County Board of Commissioners hereby acknowledges receipt of the proposed modification to the TIF Plan for TIF District No. 1 and receipt of the TIF plan for proposed TIF No. 3; and BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby finds that the use of tax Increment financing, as presented In the plans for modlflcatlon to Redevelopment TIF District No. 1 and proposed TIF District No. 3 (a Qualified Housing District), is consistent with the County's position on Tax Increment Financing as set forth lig Its 1967 Tax Increment Financing Position Paper. Poet-It"'Fax Note 7671 4201*". 7o cTo�r% (-X-05Sm From 3 — �0 QZ Phone M 8 1- g Fax A Fax M t .4-a�1 as it , Administrator's Comments: Reviewed by(If required): ❑ Recommend Action ❑ County Attorney's OfOce ❑ Do Not Recommend Action ❑ Financial Services ❑ Reviewed-No Recommendation ❑ Risk Management O Revlowed-Informatlon Only 0 Employee Relations U Submitted at Commissioner Request D Informatlon Technology Count Administrator _ 11/1di2000 10;03 AM Page 2 tArimll-14,doc Agenda Page No. i Draft as of November 15, 2000' For City Council approval MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE HASTINGS DOWNTOWN REDEVELOPMENT AREA and MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1 and the TAX INCREMENT FINANCING PLAN for the establishment of TAX INCREMENT FINANCING DISTRICT NO. 3 (a qualified housing district) HASTINGS HOUSING AND REDEVELOPMENT AUTHORITY CITY OF HASTINGS DAKOTA COUNTY STATE OF MINNESOTA Public Hearing: November 20,2000 Adopted: E H L E R S Prepared by: EHLERS&ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 & ASSOCIATES INC (651)697-8500 fax: (651)697-8555 www.ehlers-ine.com TABLE OF CONTENTS (for reference purposes only) SECTION I - MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE HASTINGS DOWNTOWN REDEVELOPMENT AREA . . . . . . . . . . . . . . . . . . 1-2 Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-2 Section 1.4 Statement of Objectives and General Standards of Redevelopment . . . . 1-2 Section 1.5 Boundaries of the Redevelopment Project . . . . . . . . . . . . . . . . . . . . . . . . . . 1-2 Section 1.6 Property Acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3 Section 1.7 Estimated Public Redevelopment Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3 EXHIBIT 1-A - PARCEL LIST OF HASTINGS DOWNTOWN REDEVELOPMENT AREA 1-4 SECTION II - MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1 . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-1. Forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-2. Statutory Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-3. Statement of Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-4. Redevelopment Plan Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-2 Subsection 2-5. Legal Description of Property of Downtown RedevelopmentTIF District2-2 Subsection 2-6. Classification of Downtown Redevelopment TIF District . . . . . . . . . . . 2-3 Subsection 2-7. Property To Be Acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-3 Subsection 2-8. Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-3 Subsection 2-9. Sources of Revenue/Bonded Indebtedness . . . . . . . . . . . . . . . . . . . . 2-4 Subsection 2-10. Duration of Downtown Redevelopment TIF District . . . . . . . . . . . . . . 2-4 Subsection 2-11. Estimated Impact on Other Taxing Jurisdictions . . . . . . . . . . . . . . . . . 2-5 Subsection 2-12. Administrative Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5 Subsection 2-13. Administration of Downtown Redevelopment Tax Increment Financing District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5 Subsection 2-14. County Road Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5 Subsection 2-15. Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5 APPENDIX 2-A-BOUNDARY MAP OF HASTINGS DOWNTOWN REDEVELOPMENT AREA AND DOWNTOWN REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT . . . . . . . 2-7 SECTION III - TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1 Subsection 3-16. Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1 Subsection 3-17. Statutory Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1 Subsection 3-18. Statement of Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1 Subsection 3-19. Redevelopment Plan Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1 Subsection 3-20. Description of Property in the District and Property To Be Acquired . 3-2 Subsection 3-21. Classification of the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-2 Subsection 3-22. Duration of the Dislrict . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-3 Subsection 3-23. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements . . . . . . . . . . . . . . . 3-3 Subsection 3-24. Sources of Revenue/Bonded Indebtedness . . . . . . . . . . . . . . . . . . . . 3-4 Subsection 3-25. Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-5 Subsection 3-26. State Tax Increment Financing Aid (Local Contribution) . . . . . . . . . . . 3-6 Subsection 3-27. Fiscal Disparities Election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-6 Subsection 3-28. Business Subsidies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-6 Subsection 3-29. County Road Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-7 Subsection 3-30. Estimated Impact on Other Taxing Jurisdictions . . . . . . . . . . . . . . . . . 3-8 Subsection 3-31. Supporting Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3-8 Subsection 3-32. Definition of Tax Increment Revenues . . . . . . . . . . . . . . . . . . . . . . . . 3-8 Subsection 3-33. Modifications to the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-9 Subsection 3-34. Administrative Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-9 Subsection 3-35. Limitation of Increment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-10 Subsection 3-36. Use of Tax Increment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-11 Subsection 3-37. Excess Tax Increments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-12 Subsection 3-38. Requirements for Agreements with the Developer . . . . . . . . . . . . . . 3-12 Subsection 3-39. Assessment Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-12 Subsection 3-40. Administration of the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-13 Subsection 3-41. Annual Disclosure Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-13 Subsection 3-42. Reasonable Expectations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-13 Subsection 3-43. Other Limitations on the Use of Tax Increment . . . . . . . . . . . . . . . . 3-13 Subsection 3-44. Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-14 APPENDIX A- PROJECT DESCRIPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-15 APPENDIX B-MAP(S)OF THE HASTINGS DOWNTOWN REDEVELOPMENT AREA AND THE DISTRICT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1 APPENDIX C - DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT . . . C-1 APPENDIX D - ESTIMATED CASH FLOW FOR THE DISTRICT . . . . . . . . . . . . . . . . . . . . . D-1 APPENDIX E - HOUSING QUALIFICATIONS FOR THE DISTRICT . . . . . . . . . . . . . . . . . . E-1 APPENDIX F - BUT/FOR QUALIFICATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-1 MUNICIPAL ACTION TAKEN (This Municipal Action is not part of the Redevelopment Plan and is only for convenience of reference.) Based upon the statutory authority described in the Redevelopment Plan attached hereto,the public purpose findings by the City Council and for the purpose of fulfilling the City's development objectives as set forth in the Redevelopment Plan,the City Council has created,established and designated the Hastings Downtown Redevelopment Area pursuant to and in accordance with the requirements of the Municipal Redevelopment Project Act and the TIF Act as defined in the definitions of this document. Downtown Redevelopment Tax Increment Financing District, a redevelopment tax increment financing district,was established at the same time that the Hastings Downtown Redevelopment Area was established. The following municipal action was taken in connection therewith: The Hastings Downtown Redevelopment Area and Downtown Redevelopment Tax Increment Financing District(a redevelopment tax increment financing district): December 4.1974:The Hastings Downtown Area Redevelopment Plan for the Hastings Downtown Redevelopment Area was adopted by the City Council in and for the City of Hastings. The document is dated December 3, 1974. February 4. 1985: The Hastings Downtown Area Redevelopment Plan for the Hastings Downtown Redevelopment Area was modified by the City Council in and for the City of Hastings. The document is dated February 4, 1985. June 15, 1987: The Hastings Downtown Area Redevelopment Plan for the Hastings Downtown Redevelopment Area was modified by the City Council in and for the City of Hastings. The document is dated June 15, 1987. October 21.1996:The Hastings Downtown Area Redevelopment Plan for the Hastings Downtown Redevelopment Area was modified by the City Council in and for the City of Hastings. The document is dated October 21, 1996. A formal Tax Increment Financing Plan for the Hastings Downtown Area Redevelopment Area was also adopted. November 20, 2000: The Hastings Downtown Area Redevelopment Plan for the Hastings Downtown Redevelopment Area was modified by the City Council in and for the City of Hastings. The document is dated November 20,2000. A formal Tax Increment Financing Plan for the Hastings Downtown Area Redevelopment Area was also adopted Hastings HRA Modification to the Redevelopment Plan for the Hastings Downtown Redevelopment Area 1-1 SECTION 1-MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE HASTINGS DOWNTOWN REDEVELOPMENT AREA Foreword The following text represents a Modification to the Redevelopment Plan for the Hastings Downtown Redevelopment Area. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for the Hastings Downtown Redevelopment Area. Generally, the substantive changes include modifying the boundaries of the Hastings Downtown Redevelopment Area as specified below. For further information, a review of the Redevelopment Plan for the Hastings Downtown Redevelopment Area as adopted December, 1974 and modified in 1977, 1985, 1987 and most recently on October 21, 1996, is recommended. It is available from the HRA Director at the Hastings Housing and Redevelopment Authority. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within the Hastings Downtown Redevelopment Area. Section 1.4 Statement of Objectives and General Standards of Redevelopment The Authority seeks to achieve one or more of the following objectives with respect to such property within the Redevelopment Project as the Authority may determine and in such circumstances and upon such terms as the Authority may deem appropriate or necessary; (a) Remove structurally substandard buildings which are incapable of being rehabilitated; (b) Acquire and remove economically or functionally obsolete or underutilized buildings and/or land; (c) Eliminate blighting influences which impede potential development in the area; (d) Provide redevelopment sites of such size and character to assure development of the area,strengthen the downtown economy and improve sources of public revenue; (e) Provide land for needed expansion of existing businesses in the area; (f) Provide adequate streets,utilities and other public improvements and facilities to enhance the area for both new and existing development; (g) Preserve the historical character of the downtown area by rehabilitating structurally sound buildings to conform to the redevelopment plan and historic preservation guidelines; (h) Provide a maximum opportunity, consistent with sound needs of the City as a whole, for redevelopment by private enterprise; (i) Provide new housing sites and incentives to rehabilitate existing housing stock. Section 1.5 Boundaries of the Redevelopment Project. The boundaries of the Hastings Downtown Redevelopment Area are being expanded to include the area in Tax Increment Financing District No. 3 and two other parcels. See the map in Appendix B for further Hastings HRA Modification to the Redevelopment Plan for the Hastings Downtown Redevelopment Area 1-2 information. The boundaries of the Redevelopment Project will be increased to include the following parcels: Parcel Numbers 19-32150-010-30 19-32150-020-29 19-32150-032-29 Section 1.6 Property Acquisition The following are additional parcels within the Hastings Downtown Redevelopment Area that are being identified for acquisition: Parcel Numbers 19-32150-010-30 19-32150-020-29 19-32150-032-29 19-32150-040-02 19-32150-090-06 19-32150-060-06 19-32150-050-06 19-32150-081-05 19-32150-080-05 19-32150-071-05 19-32150-070-05 19-32150-020-05 19-32150-080-17 19-32150-063-17 19-32150-061-17 19-32150-060-17 19-32150-040-17 19-32150-030-17 19-32150-021-17 19-32150-020-17 19-32150-040-32 19-32150-030-32 19-32150-020-32 19-32150-011-32 19-32150-010-32 Section 1.7 Estimated Public Redevelopment Costs. This modification authorizes the HRA and City to expend tax increment from the Tax Increment Financing District No. 3 for qualified activities identified in the budget of the TIF Plan. The budget for District No. 1 is also being modified. Hastings HAA Modification to the Redevelopment Plan for the Hastings Downtown Redevelopment Area 1-3 EXHIBIT 1-A PARCEL LIST OF HASTINGS DOWNTOWN REDEVELOPMENT AREA Hastings Downtown Redevelopment Area of the Hastings Housing and Redevelopment Authority consists of the following portions of the City of Hastings, Dakota County,Minnesota: Parcel Identification Numbers: 19-32150-010-01 19-32150-080-05 19-32150-041-14 19-32150-071-18 19-32150-020-01 19-32150-081-05 19-32150-042-14 19-32150-080-18 19-32150-030-01 19-32150-050-06 19-32150-045-14 19-32150-081-18 19-32150-040-01 19-32150-060-06 19-32150-060-14 19-32150-020-19 19-32150-041-01 19-32150-061-06 19-32150-061-14 19-32150-021-19 19-32150-070-01 19-32150-090-06 19-32150-062-14 19-32150-022-19 19-32150-083-01 19-32150-010-11 19-32150-063-14 19-32150-030-19 19-32150-084-01 19-32150-020-11 19-32150-071-14 19-32150-031-19 19-32150-020-02 19-32150-030-11 19-32150-072-14 19-32150-040-19 19-32150-040-02 19-32150-040-11 19-32150-080-14 19-32150-071-19 19-32150-060-02 19-32150-060-11 19-32150-081-14 19-32150-080-19 19-32150-070-02 19-32150-070-11 19-32150-022-15 19-32150-081-19 19-32150-071-02 19-32150-080-11 19-32150-023-15 19-32150-010-20 19-32150-080-02 19-32150-010-12 19-32150-031-15 19-32150-010-21 19-32150-020-03 19-32150-042-12 19-32150-040-15 19-32150-011-21 19-32150-040-03 19-32150-060-12 19-32150-050-15 19-32150-020-21 19-32150-050-03 19-32150-080-12 19-32150-051-15 19-32150-030-21 19-32150-051-03 19-32150-010-13 19-32150-052-15 19-32150-040-21 19-32150-052-03 19-32150-011-13 19-32150-061-15 19-32150-070-21 19-32150-063-03 19-32150-012-13 19-32150-062-15 19-32150-080-21 19-32150-064-03 19-32150-013-13 19-32150-070-15 19-32150-081-21 19-32150-070-03 19-32150-020-13 19-32150-080-15 19-32150-020-22 19-32150-071-03 19-32150-021-13 19-32150-010-16 19-32150-030-22 19-32150-081-03 19-32150-031-13 19-32150-011-16 19-32150-031-22 19-32150-020-04 19-32150-032-13 19-32150-012-16 19-32150-040-22 19-32150-021-04 19-32150-033-13 19-32150-020-17 19-32150-060-22 19-32150-040-04 19-32150-061-13 19-32150-021-17 19-32150-061-22 19-32150-050-04 19-32150-070-13 19-32150-030-17 19-32150-080-22 19-32150-051-04 19-32150-082-13 19-32150-040-17 19-32150-081-22 19-32150-061-04 19-32150-083-13 19-32150-060-17 19-32150-010-32 19-32150-062-04 19-32150-010-14 19-32150-061-17 19-32150-011-32 19-32150-080-04 19-32150-011-14 19-32150-063-17 19-32150-020-32 19-32150-082-04 19-32150-020-14 19-32150-080-17 19-32150-030-32 19-32150-083-04 19-32150-023-14 19-32150-042-18 19-32150-040-32 19-32150-084-04 19-32150-024-14 19-32150-050-18 19-32150-041-32 19-32150-085-04 19-32150-030;1,4 19-32150-060-18 19-32150-010-30 19-32150-020-05 19-32150-031-14 19-32150-061-18 19-32150-020-29 19-32150-070-05 19-32150-032-14 19-32150-070-18 19-32150-032-29 19-32150-071-05 Hastings HRA Modification to the Redevelopment Plan for the Hastings Downtown Redevelopment Area SECTION II-MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1 Subsection 2-1. Forward The HRA,staff and consultants have prepared the following information to expedite the modification to the Redevelopment Plan and Tax Increment Financing Plan for the Hastings Downtown Redevelopment Area and Tax Increment Financing District("Downtown TIF District'). On December 3, 1974,the Hastings Housing and Redevelopment Authority adopted its Hastings Downtown Area Redevelopment Plan,which was subsequently adopted by the City Council of the City of Hastings on December 16, 1974. The Redevelopment Area Project also constituted a tax increment financing district, currently known as a pre-1979 redevelopment tax increment district. The Redevelopment Plan was amended in 1977, 1985, 1987 and 1996, to better describe development and redevelopment efforts withing the Redevelopment Area Project. In 1995, the Minnesota Legislature passed special legislation enabling the Redevelopment Area Project to continue to collect tax increments through the year 2006 instead of requiring that the tax increment district be decertified in the year 2001. The current Redevelopment Plan and attached Tax Increment Financing Plan for the pre-1979 tax increment district are intended to accomplish the following: 1. Allow the geographic area of the Redevelopment Area Project (but not the tax increment financing district)to be expanded to included additional property. 2. Increase the budget for the tax increment district to account for and describe anticipated revenues and expenditures through the year 2006 and utilization of existing HRA tax increment balances. 3. Enable the HRA, and City Council to issue interfund loans, revenue and/or general obligation tax increment bonds to accomplish the anticipated development and redevelopment efforts within the Redevelopment Area Project, including a loan to the potential development on the site of the former Guardian Angels church. Subsection 2-2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end,the HRA has certain statutory powers pursuant to the TIF Act to assist in financing eligible activities related to these development needs. This Section contains the Tax Increment Financing Plan for the Downtown TIF District. Other relevant information is contained in the Redevelopment Plan for the Hastings Downtown Redevelopment Area. Subsection 2-3. Statement of Objectives The Downtown TIF District is a pre-1979 redevelopment district. The Downtown TIF District was created to facilitate achieving the objectives set forth in the Redevelopment Plan for the Hastings Downtown Redevelopment Area. The objectives expected to be achieved through the use of tax increment financing include, but are not limited to: (a) Remove structurally substandard buildings which are incapable of being rehabilitated; Hastings HRA Modification to the Redevelopment Plan for the Hastings Downtown Redevelopment Area 2-1 (b) Acquire and remove economically or functionally obsolete or underutilized buildings and/or land; (c) Eliminate blighting influences which impede potential development in the area; (d) Provide redevelopment sites of such size and character to assure development of the area,strengthen the downtown economy and improve sources of public revenue; (e) Provide land for needed expansion of existing businesses in the area; (f) Provide adequate streets,utilities and other public improvements and facilities to enhance the area for both new and existing development; (g) Preserve the historical character of the downtown area by rehabilitating structurally sound buildings to conform to the redevelopment plan and historic preservation guidelines; (h) Provide a maximum opportunity, consistent with sound needs of the City as a whole, for redevelopment by private enterprise; (i) Provide new housing sites and incentives to rehabilitate existing housing stock. The activities contemplated in the present Redevelopment Plan and Tax Increment Financing Plan do not preclude the undertaking of other qualified redevelopment activities. These activities are anticipated to occur over the life of the tax increment district. Subsection 2-4. Redevelopment Plan Overview 1. Property to be Acquired- Selected property located within the Downtown TIF District by the HRA and is further described in Section 2.7 of this Plan. 2. Relocation - Complete relocation services are available pursuant to Minnesota Statutes, Chapter 117 and other relevant state and federal laws. 3. Upon approval of the developer's plan relating to the project and completion of the necessary legal requirements, the HRA may sell to the developer selected properties that they may acquire within the Downtown TIF District or may lease land or facilities to the developer. 4. The HRA may perform or provide for some or all necessary acquisition, construction, relocation,demolition,and required utilities and public streets work within the Downtown TIF District. Subsection 2-5. Legal Description of Property of Downtown Redevelopment Tax Increment Financing District ._ Downtown TIF District encompasses all property and adjacent rights-of-way identified by the parcel numbers as listed in Appendix B. See the map in Appendix A for further information on the location of the Downtown TIF District. Hastings HRA Modification to the Redevelopment Plan for the Hastings Downtown Redevelopment Area 2-2 Subsection 2-6. Classification of Downtown Redevelopment Tax Increment Financing District ■ The Downtown TIF District is a pre-1979 redevelopment district.No additional property is being added to the Downtown TIF District at this time Subsection 2-7. Property To Be Acquired The HRA may acquire any parcel within the Downtown Redevelopment Area and the Downtown TIF District including interior and adjacent street rights of way. 1. Any properties identified for acquisition will be acquired by the HRA only in order to accomplish one or more of the following: provide land for needed public streets, utilities and facilities; carry out land acquisition,site improvements,clearance,rehabilitation and/or development to accomplish the uses and objectives set forth in this plan. 2. The following are conditions under which properties not designated to be acquired may be acquired: The HRA may acquire property by gift,dedication,condemnation or direct purchase from willing sellers in order to achieve the objectives of this tax increment financing plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. The property to be acquired as of the November 20, 2000 modification includes, but is not limited to,the following parcels: Parcel Identification Numbers: 19-32150-020-29 19-32150-071-05 19-32150-030-17 19-32150-032-29 19-32150-070-05 19-32150-021-17 19-32150-040-02 19-32150-020-05 19-32150-020-17 19-32150-090-06 19-32150-080-17 19-32150-040-32 19-32150-060-06 19-32150-063-17 19-32150-030-32 19-32150-050-06 19-32150-061-17 19-32150-020-32 19-32150-081-05 19-32150-060-17 19-32150-011-32 19-32150-080-05 19-32150-040-17 19-32150-010-32 Subsection 2-8. Uses of Funds To facilitate the creation and development of the Downtown Redevelopment Area,this Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the Downtown TIF District is outlined in the following table. The costs outlined below are in addition to costs authorized in the original Redevelopment Plan and Tax Increment Financing Plan dated December 16, 1974 and amended in 1977, 1985, 1987, and is a refinement of and increase in the budget amendments in 1996. Hastings HRA Modification to the Redevelopment Plan for the Hastings Downtown Redevelopment Area 2-3 Downtown Redevelopment tax increment project costs,2000-2006 • Acquisition $1,400,000 • Public Improvements 1,200,000 • Commercial rehabilitation loans/interest reductions 200,000 • Housing development assistance 100,000 • Administrative costs 300,000 • Interest Costs 210,000 TOTAL PROJECT COSTS $3,410,000 Loan/Bond Proceeds 3.200,000 TOTAL FINANCING AND PROJECT COSTS $6,610,000 Estimated costs associated with Downtown Redevelopment Tax Increment Financing District are subject to change. The cost of all activities to be considered for tax increment financing will not exceed the budget above without formal modification pursuant to applicable statutory requirements. Subsection 2-9. Sources of Revenue/Bonded Indebtedness Public improvements costs,acquisition,relocation,and site preparation costs and other costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The HRA reserves the right to use other sources of revenue legally applicable to the Redevelopment Plan and the Tax Increment Financing Plan,including,but not limited to, special assessments,general property taxes,state aid for road maintenance and construction, proceeds from the sale of land,other contributions from the Developer and investment income,to pay for the Estimated Public Costs. The HRA reserves the right to incur bonded indebtedness as a result of the Tax Increment Financing Plan. As presently proposed, the implementation of the plan for the development of the Hastings Downtown Redevelopment Area could include a general obligation or revenue bond issue,interfund loan,or pay-as-you- go note of approximately$3,200,000. Additional indebtedness may be required to finance other authorized activities. Repayments of the loans might not be considered tax increment upon repayment or other disposition of the proceeds given statutory definitions of tax increment for pre-1979 districts. The estimated sources of funds for the Downtown TIF District are contained in the table below. Sources Total Cash balance $1,100,000 Tax increment received: 2000-06 2,310,000 Loan/Bond Proceeds • 3,200,000 TOTAL $6,610,000 Hastings HRA Modification to the Redevelopment Plan for the Hastings Downtown Redevelopment Area 2-4 Subsection 2-10. Duration of Downtown Redevelopment Tax Increment Financing District Pursuant to 1995 Minnesota Laws, Chapter 265,Article 5, Section 37,the duration of the Downtown TIF District will be through the tax year payable 2006. The HRA does reserve the right to decertify the Downtown TIF District prior to the legally required date. Subsection 2-11. Estimated Impact on Other Taxing Jurisdictions Due to class rate compression, no additional tax increment is expected to be produced in excess of the estimates listed in previous modifications. Subsection 2-12.Administrative Expenses In accordance with Minnesota Statutes, Section 469.174, Subdivision 14,and Minnesota Statutes, Section 469.176, Subdivision 3 administrative expenses means all expenditures of an authority other than amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the district,relocation benefits paid to or services provided for persons residing or businesses located in the district or amounts used to pay interest on,fund a reserve for,or sell at a discount bonds issued pursuant to Section 469.178. Administrative expenses also include amounts paid for services provided by bond counsel,fiscal consultants,and planning or economic development consultants. No tax increment shall be used to pay any administrative expenses for the tax increment financing district which exceed ten percent of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the project,whichever is less. Pursuant to Minnesota Statutes,Section 469.176,Subdivision 4h,tax increments may be used to pay for the county's actual administrative expenses incurred in connection with the Downtown TIF District. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to Minnesota Statutes, Section 469. 177, Subdivision 11, the county treasurer shall deduct an amount equal to 0.1 percent of any increment distributed to an authority or municipality and the county treasurer shall pay the amount deducted to the state treasurer for deposit in the state general fund. Subsection 2-13.Administration of Downtown Redevelopment Tax Increment Financing District Administration of the Downtown TIF District will be handled by the Executive Director of the Authority. Subsection 2-14. County Road Costs Pursuant to Minnesota Statutes,Section 469.175,Subdivision 1 a,the county board may require the authority to pay for all or part of the cost of county roa4 improvements if the proposed development to be assisted by tax increment will in the judgement of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or other county plan. The improvements outlined in the Plan serve as notice to the county that the development of the residential facilities will be assisted with tax increment. In the opinion of the Authority and consultants,the proposed Hastings HRA Modification to the Redevelopment Plan for the Hastings Downtown Redevelopment Area 2-5 development will have little or no impact upon county roads. If the county elects to use increments to improve county roads, it must notify the Authority within thirty days of receipt of this plan. Subsection 2-15.Summary The HRA is modifying Downtown Redevelopment Tax Increment Financing District to preserve and enhance the tax base, redevelopment substandard areas, and increase employment of the City. The Tax Increment Financing Plan for Downtown Redevelopment Tax Increment Financing District was prepared by Ehlers and Associates, Inc., Hastings HRA Modification to the Redevelopment Plan for the Hastings Downtown Redevelopment Area 2-6 APPENDIX 2-A BOUNDARY MAP OF HASTINGS DOWNTOWN REDEVELOPMENT AREA AND DOWNTOWN REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT Hastings HRA Modification to the Redevelopment Plan for the Hastings Downtown Redevelopment Area 2-7 • fWIN all's mIn y4y4 � ■ IMMA VIII r ry • .ti KXf 4�>R ( �$ ` un T0.Y' ■7■ i s, 1.� `�8� r� # ,axe^aha ��F � ■ I ' J �• � hiw ry �y���+ mak_ a � ® �� � � ■ d + ■m rw r M:Z L'TA QI ■ 7 R� SECTION 111 TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3 Subsection 3-16. Foreword The Hastings Housing and Redevelopment Authority(the "HRA"),the City of Hastings(the "City"), staff and consultants have prepared the following information to expedite the establishment of Tax Increment Financing District No. 3 ("the District"),a qualified housing tax increment financing district, located in the Hastings Downtown Redevelopment Area. Subsection 3-17.Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end,the HRA and City have certain statutory powers pursuant to Minnesota Statutes ("MS.'), 469.001 through 469.047, inclusive, as amended, and M.S., Sections 469.174 through 469.179, inclusive, as amended (the "Tax Increment Financing Act" or"TIF Act"), to assist in financing public costs related to this project. This Section contains the Tax Increment Financing Plan(the"Plan")for Tax Increment Financing District No. 3. Other relevant information is contained in the Modification to the Redevelopment Plan for the Hastings Downtown Redevelopment Area. Subsection 3-18.Statement of Objectives The District currently consists of one parcel of land and adjacent and internal rights-of-way, which is the former Guardian Angels church, school and rectory. The District is being created to facilitate the construction of a 10 unit rental townhouse development and the rehabilitation of the former Guardian Angels School into 20 units of rental housing. A private developer, Sherman Associates, is proposing to purchase the entire block and redevelop it into housing,a family shelter,community center space,and daycare space at a total cost of$5.9 million for redevelopment. Contracts for this have not been entered into at the time of preparation of this Plan,but the date when development is likely to occur is 2001. This Plan is expected to achieve many of the objectives outlined in the Redevelopment Plan for the Hastings Downtown Redevelopment Area, including the provision for affordable housing in the City and reuse of an under utilized property. The activities contemplated in the Modification to the Redevelopment Plan and the Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of the Hastings Downtown Redevelopment Area and the District. Subsection 3-19. Redevelopment Plan Overview 1. Property to be Acquired- Selected property located within the District may be acquired by the HRA or City and is further described in this Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the HRA or City may sell to a developer selected properties that they Hastings HRA Tax Increment Financing Plan for Tax Increment Financing District No.3 3-1 may acquire within the District or may lease land or facilities to a developer. 4. The HRA or City may perform or provide for some or all necessary acquisition, construction,relocation,demolition,and required utilities and public streets work within the District. Subsection 3-20. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of-way identified by the parcel(s) listed below. See the map in Appendix B for further information on the location of the District. Parcel Numbers Legal Description 19-32150-010-30 All of Block 30, Original Town of Hastings Portions of this parcel may be decertified after subdivision of the site into separate parcels. The HRA or City may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the HRA or City only in order to accomplish one or more of the following:storm sewer improvements;provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The HRA or City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 3-21.Classification of the District The HRA and City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.179, as amended, inclusive, find that the District, to be established, is a qualified housing district pursuant to M.S.,Section 469.174,Subd. 11 and M.S.,Section 273.1399,Subd. 1(c) as defined below: Minnesota Statutes, Section 469.174, Subdivision 11: "Housing district"means a type of tax increment financing district which consists of a project, or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income, as defined in chapter 462A, Title II of the National Housing Act of 1934, the National HousingAct of 1959, the United States Housing Act of 1937, as amended, Title V of the Housing Act of 1949, as amended, any other similar present or future federal, state, or municipal legislation, or the regulations promulgated under any of those acts.A district does not qualify as a housing district under this subdivision if the fair market value of the improvements which are constructed in the district for commercial uses or for uses other than low and moderate income housing consists of more than 20 percent of the total fair market value of the planned improvements in the development plan or agreement. The fair market value of the improvements may be determined using the cost of construction,capitalized income,or other appropriate method ofestimating market value. Housing project means a project, or portion of a project,that meets all the qualifications of a housing district under this subdivision, whether or not actually established as a housing district. Minnesota Statutes, Section 273.1399, subd. 1(c): Hastings HRA Tax Increment Financing Plan for Tax Increment Financing District No.3 3-2 "Qualified housing district"means: (1) a housing district for a residential rental project or projects in which the only properties receiving assistance from revenues derived from tax increments from the district meet all of the requirements for a low-income housing credit under section 42 of the Internal Revenue Code of 1986, as amended through December 31, 1992, regardless of whether the project actually receives a low-income housing credit; or (2) a housing district for a single-family home ownership project or projects, if 95 percent or more of the homes receiving assistance from tax increments from the district are purchased by qualified purchasers. A qualified purchaser means the first purchaser of a home after the tax increment assistance is provided whose income is at or below 70 percent of the median gross income for a family of the same size as the purchaser. Median gross income is the greater of (i) area median gross income, or(ii) the statewide median gross income, as determined by the secretary of Housing and Urban Development. In meeting the statutory criteria the HRA and City rely on the following facts and findings: ❑ The District consists of one parcel. ❑ The development will consist of 30 units of rental townhomes/apartments of which 26 units are expected to be affordable. ❑ Under the 20/50 criteria, first, 20% of the units must have rents at or below $616 per month for a 1- bedroom unit, $738 per month for a 2-bedroom unit,and$854 for a 3-bedroom unit,including utilities (for 2000). Second, 20%of the units must be reserved for residents with incomes at or below 50%of the area median income ($23,000 per year for one person families, $26,300 per year for two person families, and $29,550 for three person families using gross incomes.) ❑ The market value of non-assisted housing or commercial property will be less than 20%of the total fair market value of the planned improvements. For purposes of calculating the 20%, the developer has presented evidence that both the capitalized value and the construction/renovation costs for the commercial uses will be less than 20%of the total capitalized value and construction/renovation costs. Pursuant to 469.176 Subd.7,the District does not contain any parcel or part of a parcel that qualified under the provisions of Section 273.111 or 273.112 of Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 3-22. Duration of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1,the duration of the District must be indicated within the Plan. Pursuant to M.S., Section 469.176, Subd. lb,the duration of the District will be 25 years after receipt of the first increment by the HRA or City(a total of 26 years). The date of receipt by the City of the first tax increment is expected to be 2003. Thus,it is estimated that the District,including any modifications of the Plan for subsequent phases or other changes,would terminate after 2028,or when the Plan is satisfied. If increment is received in 2002,the term of the District will be 2027. The HRA or City reserves the right to decertify the District prior to the legally required date. Subsection 3-23. Original Tax Capacity,Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuant to M.S.,Section 469.174,Subd. 7 and M.S.,Section 469.177,Subd. 1,the Original Net Tax Capacity Hastings HRA Tax Increment Financing Plan for Tax Increment Financing District No.3 3-3 (ONTC)as certified for the District will be based on the market values placed on the property by the assessor in 2000 for taxes payable 2001. Pursuant to M.S., Section 469.177, Subds. 1 and 2,the County Auditor shall certify in each year(beginning in the payment year 2002)the amount by which the original value has increased or decreased as a result of: 1. change in tax exempt status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to adjustments, negotiated or court-ordered abatements; 4. change in the use of the property and classification; 5. change in state law governing class rates; or 6. change in connection with previously issued building permits. In any year in which the current Net Tax Capacity value of the District declines below the ONTC,no value will be captured and no tax increment will be payable to the HRA or City. The original local tax rate for the District will be the local tax rate for taxes payable 2001, assuming the request for certification is made before June 30,2001. The Original Tax Capacity and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity(CTC)ofthe District,within the Hastings Downtown Redevelopment Area,upon completion of the project,will annually approximate tax increment revenues as shown in the table below. The HRA and City request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures,beginning in the tax year payable 2003. The project tax capacity listed is an estimate of values when the project is completed. Project Estimated Tax Capacity upon Completion (PTC) 439440 Original Estimated Net Tax Capacity(ONTC) 59120 Estimated Captured Tax Capacity (CTC) 38,320 Original Local Tax Rate 1.20216 Pay 2000 Estimated Annual Tax Increment(CTC x Local Tax Rate) $469067 Percent Retained by the HRA 100% Pursuant to M.S., Section 469.177, Subd. 4, the HRA shall, after due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175,Subd. 4,with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen(18)months immediately preceding approval of the Plan by the municipality pursuant to M.S., Sevtion 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The HRA has reviewed the area to be included in the District and found no parcels for which building permits have been issued during the 18 months immediately preceding approval of the Plan by the City. Hastings HRA Tax Increment Financing Plan for Tax Increment Financing District No.3 3-4 Subsection 3-24.Sources of Revenue/Bonded Indebtedness Public improvement costs, acquisition, renovation, relocation, utilities, parking facilities, streets and sidewalks,and site preparation costs and other costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The HRA or City reserves the right to use other sources of revenue legally applicable to the HRA or City and the Plan,including,but not limited to,special assessments, general property taxes,state aid for road maintenance and construction,proceeds from the sale of land,other contributions from the developer and investment income,to pay for the estimated public costs. The HRA or City reserves the right to incur bonded indebtedness or other indebtedness as a result of the Plan. As presently proposed,the project will be financed by a combination of an interfund loan and pay-as- you-go note. Additional indebtedness may be required to finance other authorized activities, including general obligation tax increment bonds.. The total principal amount of bonded indebtedness or other indebtedness related to the use of tax increment financing will not exceed$1,000,000 without a modification to the Plan pursuant to applicable statutory requirements. This provision does not obligate the HRA or City to incur debt. The HRA or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The HRA or City may also finance the activities to be undertaken pursuant to the Plan through loans from funds of the HRA or City or to reimburse the developer on a"pay-as-you-go"basis for eligible costs paid for by a developer. The estimated sources of funds for the District are contained in the table below. SOURCES OF FUNDS TOTAL Tax Increment $1,250,000 PROJECT REVENUES $1,250,000 Loans Proceeds $750,000 Bond Proceeds $250,000 TOTAL PROJECT AND FINANCING REVENUES $2,2509000 Subsection 3-25. Uses of Funds Currently under consideration for the District is a proposal to facilitate the construction of a 10 unit rental townhouse development and the rehabilitation of the former Guardian Angels School into 20 units of rental housing. A private developer,Sherman Associates,is proposing to purchase the entire block and redevelop it into housing and community center/shelter/daycare space at a total cost of$5.9 million for redevelopment The HRA and City have determined that it will be necessary to provide assistance to the project for certain costs. The HRA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. Hastings HRA Tax Increment Financing Plan for Tax Increment Financing District No.3 3-5 USES OF FUNDS TOTAL Land/Building Acquisition $200,000 Renovation $300,000 Site Improvements/Preparation $5,000 Public Utilities $5,000 Parking Facilities $5,000 Streets and Sidewalks $10,000 Administrative Costs(up to 10%) $125,000 PROJECT COSTS TOTAi, 5650.000 Loans Principal $750,000 Loan/Pay-As-You-Go Interest $600,000 Bond Principal $250,000 TOTAL FINANCING AND PROJECT COSTS $2,250,000 The above budget is organized according to the OSA reporting forms. Estimated costs associated with the District are subject to change among categories without a modification to this Plan. The cost of all activities to be considered for tax increment financing will not exceed,without formal modification,the budget above pursuant to the applicable statutory requirements. The HRA may expend funds for qualified housing activities outside of the District boundaries. Subsection 3-26. State Tax Increment Financing Aid (Local Contribution) The provisions ofMS., Section 273.1399(LGA/HACA penalty)do not apply to qualified housing districts pursuant to M.S., Section 273.1399, Subd. 6(c). Subsection 3-27. Fiscal Disparities Election If commercial property is located in the District,the contribution will be from outside the District(Election A). Subsection 3-28. Business Subsidies Pursuant to M.S. Statutes 116J.993, Subdivision 3, the following forms of financial assistance are not considered a business subsidy: (1) a business subsidy of less than $25,000; (2) assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; (3) public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) redevelopment property polluted by contaminants as defined in section 116J.552, subdivision 3; (5) assistance provided for the sole purpose of renovating old or decaying building stock or bringing it Hastings HRA Tax Increment Financing Plan for Tax Increment Financing District No.3 3-6 up to code and assistance provided for designated historic preservation districts,provided that the assistance is equal to or less than 50% of the total cost; (6) assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) assistance for housing; (8) assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under 469.174, subdivision 23; (9) assistance for energy conservation; (10) tax reductions resulting from conformity with federal tax law; (11) workers' compensation and unemployment compensation; (12) benefits derived from regulation; (13) indirect benefits derived from assistance to educational institutions; (14) funds from bonds allocated under chapter 474A,bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c)(3)of the Internal Revenue Code of 1986, as amended through December 31, 1999; (15) assistance for a collaboration between a Minnesota higher education institution and a business; (16) assistance for a tax increment financing soils condition district as defined under section 469.174, subdivision 19; (17) redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) general changes in tax increment financing law and other general tax law changes of principally technical nature. (19) Federal assistance until the assistance has been repaid to, and reinvested by,the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; (21) Business loans and loan guarantees of$75,000 or less; and (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration. The HRA or City is providing tax increment financing for the purpose of housing and therefore the provisions of M.S., Section 116J.993 to 116J.994, which states that a local unit of government granting financial assistance to a business for economic development or job growth purposes,including tax increment financing, must establish business subsidy criteria and approve a business subsidy agreement with the business receiving the assistance, do not apply. Subsection 3-29.County Road Costs Pursuant to M.S., Section 469.175, Subd. ]a,the county board may require the HRA or City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will,in the judgement of the county,substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. In the opinion of the HRA and City and consultants,the proposed development outlined in this Plan will have little or no impact upon county roads. If the county elects to use increments to improve county roads,it must notify the HRA or City within forty-five days of receipt of this Plan. Subsection 3-30. Estimated Impact on Other Taxing Jurisdictions Hastings HRA Tax Increment Financing Plan for Tax Increment Financing District No.3 3-7 The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the Plan would occur without the creation of the District. However, the HRA or City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for"test was not met: IMPACT ON TAX BASE 1999/2000 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Completion to Entity Total Dakota County 267,170,433 38,320 0.0143% City of Hastings 9,589,823 38,320 0.3996% Hastings ISD No. 200 15,155,039 38,320 0.2529% IMPACT ON TAX RATES 1999/2000 Percent Potential Extension Rates of Total CTC Taxes Dakota County 0.272470 22.67% 38,320 10,441 City of Hastings 0.380880 31.68% 38,320 14,595 Hastings ISD No. 200 0.548810 45.65% 38,320 21.030 Total 1.202160 100.00% 46,067 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the 1999/Pay 2000 rate. The total net tax capacity for the entities listed above are based on Pay 2000 figures. The District will be certified under the actual 2000/Pay 2001 rates,which were unavailable at the time this Plan was prepared. Subsection 3-31.Supporting Documentation Pursuant to M.S. Section 469.175 Subd]a, clause 7 the Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469.175 Subd 3, clause (2). Following is a list of reports and studies on file at the City that support the authority's findings: • Dakota CDA Housing Survey • Applications for various funding sources including the Metropolitan Council and MHFA. Subsection 3-32. Definition of Tax Increment Revenues Pursuant to M.S.,Section 469.174,Subd. 25,tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1. taxes paid by the captured net tax capacity,but excluding any excess taxes,as computed under M.S., Section 469.177; 2. the proceeds from the sale or lease of property,tangible or intangible, purchased by the authority Hastings HRA Tax Increment Financing Plan for Tax Increment Financing District No.3 3-8 with tax increments; 3. repayments of loans or other advances made by the authority with tax increments; and 4. interest or other investment earnings on or from tax increments. Subsection 3-33. Modifications to the District In accordance with M.S., Section 469.175, Subd. 4, any: 1. reduction or enlargement of the geographic area of the Hastings Downtown Redevelopment Area or the District; 2. increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determination was not a part of the original plan,or to increase or decrease the amount of interest on the debt to be capitalized; 3. increase in the portion of the captured net tax capacity to be retained by the HRA or City; 4. increase in total estimated tax increment expenditures; or 5. designation of additional property to be acquired by the HRA or City, shall be approved upon the notice and after the discussion,public hearing and findings required for approval of the original Plan. Pursuant to M.S. Section 469.175 Subd. 4(b),the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a qualified housing district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria ofMS., Section 469.174,Subd. 11 and M.S., Section 273.1399, Subd. 1(c) must be documented. The requirements of this paragraph do not apply if(1) the only modification is elimination of parcel(s)from the Hastings Downtown Redevelopment Area or the District and(2)(A)the current net tax capacity of the parcel(s)eliminated from the District equals or exceeds the net tax capacity of those parcel(s)in the District's original net tax capacity or(B)the HRA agrees that, notwithstanding M.S.,Section 469.177,Subd. 1,the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s)eliminated from the District. The HRA or City must notify the County Auditor of any modification that reduces or enlarges the geographic area of the Hastings Downtown Redevelopment Area or the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the Plan. Subsection 3-34.Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, and M.S., Section 469.176, Subd. 3, administrative expenses means all expenditures of the HRA or City, other than: 1. amounts paid for the purchase of land; 2. amounts paid to contractors or others-providing materials and services, including architectural and engineering services,directly connected with the physical development of the real property in the project; 3. relocation benefits paid to or services provided for persons residing or businesses located in the project; or 4. amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or Hastings HRA Tax Increment Financing Plan for Tax Increment Financing District No.3 3-9 5. amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in sections 1 to 3. For districts for which the request for certification were made before August 1, 1979,or after June 30, 1982, administrative expenses also include amounts paid for services provided by bond counsel,fiscal consultants, and planning or economic development consultants. Tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total tax increment expenditures authorized by the Plan or the total tax increment expenditures for the Hastings Downtown Redevelopment Area, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the county's actual administrative expenses incurred in connection with the District. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the county treasurer shall deduct an amount equal to 0.25 percent of any increment distributed to the HRA or City and the county treasurer shall pay the amount deducted to the state treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities'use of tax increment financing. Subsection 3-35. Limitation of Increment Pursuant to M.S., Section 469.176, Subd. la, no tax increment shall be paid to the HRA or City for the District after three (3) years from the date of certification of the Original Net Tax Capacity value of the taxable property in the District by the County Auditor unless within the three(3)year period: (a) bonds have been issued in aid ofthe project containing the district pursuant to M.S.,Section 469.178,or any other law,except revenue bonds issued pursuant to M.S., Sections 469.152 to 469.165, or (b) the HRA or City has acquired property within the District,or (c) the HRA or City has constructed or caused to be constructed public improvements within the District. The bonds must be issued, or the HRA or City must acquire property or construct or cause public improvements to be constructed by approximately November, 2003 and report such actions to the County Auditor. The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to M.S., Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel Hastings HRA Tax Increment Financing Plan for Tax Increment Financing District No.3 3-10 but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to(1) construction or opening of a new street, (2)relocation of a street,and(3)substantial reconstruction or rebuilding ofan existing street. The HRA or City or a property owner must improve parcels within the District by approximately November, 2004 and report such actions to the County Auditor. Subsection 3-36. Use of Tax Increment The HRA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. to pay the principal of and interest on bonds issued to finance a project; 2. to finance,or otherwise pay public redevelopment costs of the Hastings Downtown Redevelopment Area pursuant to the M.S., Sections 469.001 to 469.047; 3. to pay for project costs as identified in the budget set forth in the Plan; 4. to finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. to pay principal and interest on any loans,advances or other payments made to or on behalf the HRA or City or for the benefit of the Hastings Downtown Redevelopment Area by a developer; 6. to finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7. to accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Revenues derived from tax increment from a housing district must be used solely to finance the cost of housing projects as defined in M.S.,Section 469.174, Subd 11. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the HRA or City may be included in the cost of a housing project. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Hastings HRA Tax Increment Financing Plan for Tax Increment Financing District No.3 3-11 Tax increments generated in the District will be paid by Dakota County to the HRA for the Tax Increment Fund of said District. The HRA or City will pay to the developer(s)annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements,demolition and relocation,site preparation,and administration. Remaining increment funds will be used for HRA or City administration(up to 10 percent)and the costs of public improvement activities outside the District. Subsection 3-37. Excess Tax Increments Pursuant to M.S., Section 469.176, Subd. 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the Plan, including the amount necessary to cancel any tax levy as provided in M.S., Section 475.61, Subd. 3, the HRA or City shall use the excess amount to do any of the following: 1, prepay any outstanding bonds; 2. discharge the pledge of tax increment therefor; 3. pay into an escrow account dedicated to the payment of such bonds; or 4. return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. In addition,the HRA or City may, subject to the limitations set forth herein, choose to modify the Plan in order to finance additional public costs in the Hastings Downtown Redevelopment Area or the District. Subsection 3-38. Requirements for Agreements with the Developer The HRA or City will review any proposal for private development to determine its conformance with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings,landscaping plan,grading and storm drainage plan,signage system plan,and any other drawings or narrative deemed necessary by the HRA or City to demonstrate the conformance of the development with City plans and ordinances. The HRA or City may also use the Agreements to address other issues related to the development. Pursuant to MS, Section 469.176, Subd. 5, no more than 10 percent, by acreage, of the property to be acquired in the District as set forth in the Plan shall at any time be owned by the HRA or City as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments from property acquired is pledged,unless priorto acquisition in excess of 10 percent of the acreage,the HRA or City concluded an agreement for the development of the property acquired and which provides recourse for the HRA or City should the development not be completed. Subsection 3-39.Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8,the HRA or City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the assessor who shall review the plans and specifications for the improvements to be constructed,review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the assessor shall also certify the minimum Hastings HRA Tax Increment Financing Plan for Tax Increment Financing District No.3 3-12 market value agreement. Subsection 3-40.Administration of the District Administration of the District will be handled by the HRA Director. Subsection 3-41.Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subd. 5, 6 and 6a, the HRA or City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor,County Board,County Auditor and School Board on or before August 1 of each year. M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M.S. Section 469.175 Subd. 5 and Subd. 6, the Office of the State Auditor will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 3-42. Reasonable Expectations As required by the Tax Increment Financing Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Plan. In making said determination,reliance has been placed upon written representation made by the developer to such effect and upon HRA and City staff awareness of the feasibility of developing the project site. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions)exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. Subsection 3-43. Other Limitations on the Use of Tax Increment 1. General Limitations. All revenue derived from tax increment shall be used in accordance with the Plan. The revenues shall be used to finance, or otherwise pay public redevelopment costs of the Hastings Downtown Redevelopment Area pursuant to the M.S., Sections 469.001 to 469.047. These revenues shall not be used to circumvent existing levy limit law.No revenues derived from tax increment shall be used for the acquisition,construction,renovation,operation,or maintenance of a building to be used primarily and regularly for conducting the business of a municipality,county,school district,or any other local unit of government or the state or federal government or for a commons area used as a public park, or a facility used for social, recreational,,or conference purposes.This provision shall not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure or of a privately owned facility for conference purposes. 2. Restriction on Pooling, Five Year Limit. Pursuant to M.S., Section 469.1763, (1)At least 80% of the Tax Increment derived from the District must be expended on Public Costs incurred within said district, and up to 20%of said tax increments may be spent on Public Costs incurred outside of the District but Hastings HRA Tax Increment Financing Plan for Tax Increment Financing District No.3 3-13 within the Hastings Downtown Redevelopment Area; provided that in the case of a housing district, a housing project,as defined in M.S.,Section 469.174,Subd. 11 is deemed to be an activity in the District, and(2)Pubic Costs within the District shall be limited to reimbursement of Public Costs paid before or within fiver years after certification of said district by the County Auditor and interest on all such unreimbursed expenditures. Subsection 3-44. Summary The Hastings Housing and Redevelopment Authority is establishing the District to provide an impetus for residential development and provide safe and decent life cycle housing in the City. The Tax Increment Financing Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Point Drive, Roseville,Minnesota 55113-1105,telephone(651)697-8500. Hastings HRA Tax Increment Financing Plan for Tax Increment Financing District No.3 3-14 APPENDIX A PROJECT DESCRIPTION The project consists currently of a vacant school building,a vacant rectory,a historically designated church building and annex and a playground/parking lot. The total property is about 2.0 acres of land. The redevelopment project as proposed by Sherman Associates is as follows: 1. Rehabilitate the vacant school building into twenty(20)affordable apartment units. Such units will be elevator accessed. The building exterior will be restored to its original historical image. The lower level (which is garden level) will become an affordable daycare, preschool and latchkey program. 2. The rectory will be converted to fifteen (15)bed domestic abuse shelter for women and children. The shelter will be operated by Community Action Council. 3. The church building and annex will be converted into a community center. 4. The vacant playground will be used to construct six(6)affordable townhomes and four(4)market rate townhomes. The tax increment will only be utilized to benefit the buildings which house the affordable rental units. No more than 20% of the market value (as calculated by both capitalized value and construction/renovation costs)will be in buildings which do not include affordable housing units. Construction is expected to commence in 2001. No local contribution is required. Other HRA and City funds are expected to enhance the historical nature of the site as well as MHFA ad Met Council funds to finance the affordable units and public spaces in project. The annual tax increment of about $40,000 to $45,000 will be utilized to pay costs associated with the acquisition and renovation of the affordable housing units. annual interest due on the mortgage on the housing. Thus,less rent is required annually from each unit. The annual rebate spread over twenty-six(26) affordable units equally to a reduction in monthly rent per unit of in excess of$125 per unit per month. But for thhis annual tax increment,these rents would thus be necessarily higher. APPENDIX A-15 APPENDIX B MAP(S)OF THE HASTINGS DOWNTOWN REDEVELOPMENT AREA AND THE DISTRICT APPENDIX B-t LL Cy) C; -0 0 0 1:3 w 4— 's cc CO CL CL C31) C) co � TYLER ST RAMSEYST -l-,j I-j L-rj W 77�- Lo i Co L CO L lr-� SIBLEY ST - J Fi4 VERMILLION ST PE P, in APPENDIX C DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT The District encompasses all property and adjacent rights-of-way identified by the parcel(s) listed below. Parcel Numbers Leal Description 19-32150-010-30 All of Block 30, Original Town of Hastings APPENDIX C-] APPENDIX D ESTIMATED CASH FLOW FOR THE DISTRICT APPENDIX D-1 11/15/00 City of Hastings',Tax Increment Projections-Guardian Angels Page 1 T.I.F.CASH FLOW ASSUMPTIONS Inflation Rate: 0.0000% Pay-As-You-Go Interest Rate: 6.500% Tax Extension Rate: 1.300000 Pay 01 Est. BASE VALUE INFORMATION Total Tax Value Capacity 19-32150-010-30 609,000 8,392 Estimate 0 0 0 0 Total Original Market Value 609,000 8,392 Property is currently exempt from real estate taxes. Class Rate: Multi-Family Markel Rate 2.4000% Pay 00 Multi-Family 4(d) 1.0000% Pay 00 Original Tax Capacity(when certified-currently exempt property): 0 Pay 00 Original Tax Capacity(when use is changed): 8,392 Pay 00 PROJECT VALUE INFORMATION Type of Tax Increment District: Qualified Housing Type Of Units MV Per Total Market Total Tax Year Year Protect Unit Value _Capacity CompetedPayable To hnwomes-Mkt. 4 70,727 282,908 6,790 2001 2003! iDaycare/Community/Shelter 795,725 25,555 2001 20031 iAffordable townhom 6 70,727 424,362 4,244 2001 2003 Affordable apts. _ 20 50,437 1,008,740 10,087 2001 2003 Total 30 _ 2,511,735 _ 46,675 SUMMARY Total Annual Taxes' 60,678 Total Annual Tax Increment After Admin. 44,792 *Does not include market value tax rates,which are not captured by tax increment HA100-01 Prepared by Ehlers/Publicorp Inc. tifplan091800.123 11/15/00 City of Hastings:Tax Increment Projections-Guardian Angels Page 2 TAX INCREMENT CASH FLOW Original Project Captured Semi-Annual City/HRA Semi-Annual Cumul. Years of PAYMENT DATE/ PERIOD BEGINNING Tax Tax Tax Gross Tax Admin. Net Tax NPV Tax PERIOD ENDING Yrs. Mth. Yr. Capacity Capacity Capacity Increment 10.00% Increment 6.50% Increment Yrs. Mth. _ Yr. 0.0 02-01 2001 0 0 0 0 0 0 0 0.0 0.5 08-01 2001 0.5 08-01 2001 0 0 0 0 0 0 0 0.0 1.0 02-01 2002; 1.0 02-01 2002 0 0 0 0 0 0 0 0.0 1.5 08-01 2002' 1.5 08-01 2002 0 0 0 0 0 0 0 0.0 2.0 02-01 20031 2.0 02-01 2003 8,392 46,675 38,283 24,884 (2,488) 22,396 19,086 0.5 2.5 08-01 20031 2.5 08-01 2003 8,392 46,675 38,283 24,884 (2,488) 22,396 37,571 1.0 3.0 02-01 2004 3.0 02-01 2004 8,392 46,675 38,283 24,884 (2,488) 22,396 55,475 1.5 3.5 08-01 2004' 3.5 08-01 2004 8,392 46,675 38,283 24,884 (2,488) 22,396 72,815 2.0 4.0 02-01 2005 4.0 02-01 2005 8,392 46,675 38,283 24,884 (2,488) 22,396 89,609 _ 2.5 4.5 08-01 2005, 4.5 08-01 2005 8,392 46,675 38,283 24,884 (2,488) 22,396 105,874 3.0 5.0 02-01 20061 5.0 02-01 2006 8,392 46,675 38,283 24,884 (2,488) 22,396 121,628 3.5 5.5 08-01 2006' 5.5 08-01 2006 8,392 46,675 38,283 24,884 (2,488) 22,396 136,885 4.0 6.0 02-01 2007 6.0 02-01 2007 8,392 46,675 38,283 24,884 (2,488) 22,396 151,663 4.5 6.5 08-01 2007 1 6.5 08-01 2007 8,392 46,675 38,283 24,884 (2,488) 22,396 165,975 5.0 7.0 02-01 2008. 7.0 02-01 2008 8,392 46,675 38,283 24,884 (2,488) 22,396 179,837 5.5 7.5 08-01 2008 7.5 08-01 2008 8,392 46,675 38,283 24,884 (2,488) 22,396 193,262 6.0 8.0 02- 2009 8.0 02-01 2009 8,392 46,675 38,283 24,884 (2,488) 22,396 206,265 6.5 8.5 08-01 2009 8.5 08-01 2009 8,392 46,675 38,283 24,884 (2,488) 22,396 218,858 7.0 9.0 02-01 2010 9.0 02-01 2010 8,392 46,675 38,283 24,884 (2,488) 22,396 231,055 7.5 9.5 08-01 2C 9.5 08-01 2010 8,392 46,675 38,283 24,884 (2,488) 22,396 242,868 8.0 10.0 02-01 20, 10.0 02-01 2011 8,392 46,675 38,283 24,884 (2,488) 22,396 254,310 8.5 10.5 08-01 20111 10.5 08-01 2011 8,392 46,675 38,283 24,884 (2,488) 22,396 265,391 9.0 11.0 02-01 20121 11.0 02-01 2012 8,392 46,675 38,283 24,884 (2,488) 22,396 276,123 9.5 11.5 08-01 20121 11.5 08-01 2012 8,392 46,675 38,283 24,884 (2,488) 22,396 286,518 10.0 12.0 02-01 2013 12.0 02-01 2013 8,392 46,675 38,283 24,884 (2,488) 22,396 296,585 10.5 12.5 08-01 2013 12.5 08-01 2013 8,392 46,675 38,283 24,884 (2,488) 22,396 306,336 11.0 13.0 02-01 2014 13.0 02-01 2014 8,392 46,675 38,283 24,864 (2,408) 22,396 315,779 11.5 13.5 08-01 2014 13.5 08-01 2014 8,392 46,675 38,283 24,864 (2,488) 22,396 324,925 12.0 14.0 02-01 2015 14.0 02-01 2015 8,392 46,675 38,283 24,884 (2,488) 22,396 333,764 12.5 14.5 08-01 2015 14.5 08-01 2015 8,392 46,675 38,283 24,884 (2,488) 22,396 342,363 - 13.0 15.0 02-01 2016 15.0 02-01 2016 8,392 46,675 38,283 24,884 (2,488) 22,396 350,673 13.5 15.5 08-01 2016 15.5 08-01 2016 8,392 46,675 38,283 24,884 (2,488) 22,396 358,721 14.0 16.0 02-01 2017 16.0 02-01 2017 8,392 46,675 38,283 24,884 (2,488) 22,396 366,515 14.5 16.5 08-01 2017 16.5 08-01 2017 8,392 46,675 38,283 24,884 (2,488) 22,396 374,065 15.0 17.0 02-01 2018 17.0 02-01 2018 8,392 46,675 38,283 24,884 (2,488) 22,396 381,376 15.5 17.5 08-01 2018 17.5 08-01 2018 8,392 46,675 38,283 24,884 (2,488) 22,396 388,458 16.0 18.0 02-01 2019 18.0 02-01 2019 8,392 46,675 38,283 24,884 (2,488) 22,396 395,316 16.5 18.5 08-01 2019 18.5 08-01 2019 8,392 46,675 38,283 24,884 (2,488) 22,396 401,959 17.0 19.0 02-01 2020 19.0 02-01 2020 8,392 46,675 38,283 24,884 (2,488) 22,396 408,393 17.5 19.5 08-01 2020, 19.5 08-01 2020 8,392 46,675 38,283 24,884 (2,488) 22,396 414,624 18.0 20.0 02-01 20 20.0 02-01 2021 8,392 46,675 38,283 24,884 (2,488) 22,396 420,659 18.5 20.5 08-01 20: 20.5 08-01 2021 8,392 46,675 38,283 24,884 (2,488) 22,396 426,504 19.0 21.0 02-01 20221 21.0 02-01 2022 8,392 46,675 38,283 24,884 (2,488) 22,396 432,165 19.5 21.5 08-01 2022 21.5 08-01 2022 8,392 46,675 38,283 24,884 (2,488) 22,396 437,648 20.0 22.0 02-01 20231 22.0 02-01 2023 8,392 46,675 38,283 24,884 (2,488) 22,396 442,958 20.5 22.5 08-01 20231 22.5 08-01 2023 8,392 46,675 38,283 24,884 (2,488) 22,396 448,101 21.0 23.0 02-01 20241 23.0 02-01 2024 8,392 46,675 38,283 24,884 (2,488) 22,396 453,082 21.5 23.5 08-01 2024 23.5 08-01 2024 8,392 46,675 38,283' 24,884 (2,488) 22,396 457,907 22.0 24.0.02-01 2025 24.0 02-01 2025 8,392 46,675 38,283 24,884 (2,488) 22,396 462,579 22.5 24.5 08-01 2025 24.5 08-01 2025 8,392 46,675 38,283 24,884 (2,488) 22,396 467,105 23.0 25.0 02-01 2026 25.0 02-01 2026 8,392 46,675 38,283 24,884 (2,488) 22,396 471,488 23.5 25.5 08-01 2026 25.5 08-01 2026 8,392 46,675 38,283 24,884 (2,488) 22,396 475,733 24.0 26.0 02-01 2027 26.0 02-01 2027 8,392 46,675 38,283 24,884 (2,488) 22,396 479,844 24.5 26.5 08-01 2027 26.5 08-01 2027 8,392 46,675 38,283 24,884 2,488 22,396 483,826 25.0 27.0 02-01 2028 Totals 1,244,212 (124,421) 1,119,791 Present Values 437,585 (53,758) 483,826 HA100-01 Prepared by Ehlers/Publicorp Inc. tifplan091800.123 APPENDIX E HOUSING QUALIFICATIONS FOR THE DISTRICT ISI Jl ........ t 1t1C1115 ( 1I 111? I7111S 1CRTC ; AQ 11?4 OflIIY I'll No.of Bedrooms 50%of Median 60%of Median Income Income 1-bedroom $616 $739 2-bedroom $738 $886 3-bedroom $854 $1,025 4-bedroom $952 $1,143 Source: Minnesota Housing Finance Agency *Rent restrictions include all utility costs NCO 1 ST7 TI>IN �QiTt+,L IIS ll Ht3>CI G Dakota lllndi n�nenme Mod II :.::. :... ... ... No. of Persons 50%of Median 60%of Median Income Income I-person $23,000 $27,600 2-person $26,300 $31,560 3-person $29,550 $35,460 4-person $32,850 $39,420 Source: Minnesota Housing Finance Agency ***NOTE: These numbers are adjusted annually. All income and rent figures reported in this memo are for 1999. Updated numbers for the year 2000 will be available in February or March. APPENDIX E-1 APPENDIX F BUT/FOR QUALIFICATIONS The developer has submitted an application to the Minnesota Housing Finance Agency for a variety of State and Federal funds to provide for the redevelopment of the District and affordable rents for 26 of the 30 units of housing. The application is on file with the HRA and demonstrates the financial need of the project for tax increment assistance. In addition, the HRA's financial advisor has reviewed the project's pro forma based upon current funding sources and has found the assistance to be at an acceptable level.. APPENDIX F_t vilr-c-2 MEMORANDUM TO: Honorable Mayor and City Councilmembers FROM: Dave Osberg, City Administrator DATE: November 16, 2000 SUBJECT: Land Acquisition Agreement RECOMMENDED CITY COUNCIL ACTION It is recommended that the City Council take action approving the enclosed Agreement between the City of Hastings, Independent School District#200 and Conzemius family. BACKGROUND Major components of the agreement are as follows: 1.) The School District will be the owners of Parcels B and A, as identified on the attached exhibit A. Property is currently owned by Conzemius 2.) Conzemius family will receive a combined total of$262,840 cash from the City and School District. 3.) The City will forgive certain special assessment interest for properties in the vicinity, in an amount totaling $199,754.40 4.) Conzemius will become the owner of Outlot C, as identified on the attached Exhibit C. Property is currently owned by School District. 5.) School District will not object to the commercial development of the Conzemius property. 6.) Conzemius will develop 10 acres of land urban residential (8 or more units per acre) 7.) The City will receive and act on a petition for annexation of Conzemius property, for property currently immediately adjacent to and abutting the City limits. 8.) The City will receive a petition for annexation for additional property (after#7 has been completed) and determine whether there is a demonstrated need in the City for land proposed to be annexed which cannot be served elsewhere in the City limits. 9.) Payment of certain other costs incurred during the course of the negotiations and acquisition. Cash proceeds under Item#1 will be provided for in the following manner by the City and School: a.) Sale of School Property east of General Sieben Drive b.) School cash payment in the amount equal to"two acres" of cash value. c.) City payment from the cash proceeds of the sale of excess City land (ponding basin) that will be received as a result of the Marketplace West Development land sale. For over two years, City Staff has been working with representatives from the School District and the Conzemius family in an attempt to reach an agreement on the acquisition of certain property in the area near the new High School, to allow for a complete High School site and the alignment of General Sieben Drive and 4`h Street West. Acquisition of the additional property allows for completion of the High School, construction of the ponding basin, athletic fields and parking lots, and yet retains the road, and other public infrastructure improvements needed in the area. The City Council approved an earlier agreement (attached) in 1999, memorializing certain preliminary elements of the agreement, and recognizing the responsibilities of each party to negotiate an agreement. While the entire property east of General Sieben Drive was once thought to be available for private development, the School District has used much of it for the construction of the ponding basin, with approximately 3-3.5 acres available for sale for private development. The School District will sell that property for private development, and use those proceeds as a part of the entire formula used to reimburse the Conzemius family for the acquired property. Appraisals were completed on the entire project, and numerous meetings have been conducted with City Staff, School Officials and the Conzemius family. The Planning Committee discussed the contents of the agreement at a meeting that was conducted earlier this summer, and approved many of the key elements outlined in the agreement. The figures agreed upon in the settlement proposal are an attempt to compromise on the appraisals that were conducted by both the City and Conzemius. However, the appraisals conducted by the City, did not recognize severance damage attributable to the separation of the remaining property in the area owned by Conzemius. In an attempt to reach an agreement on this entire acquisition process, and avoid condemnation, efforts have focused on seeking to provide a partial recognition of the severance damages, by reducing special assessment interest that has been deferred over the last 20 years in some cases, on property owned by Conzemius, in the immediate vicinity. Reduction of the special assessments interest as outlined in the agreement is being completed only in amounts equal to the years in which the bonds were paid off, thus assuring that the interest and principal payments are complete, before any special assessment interest is reduced or eliminated. The agreement also attempts to recognize the efforts of the City to plan for future growth areas, and yet retain certain flexibility for Conzemius on the development options. Staff has worked hard on this agreement during the last several years, and a great deal of compromise on behalf of all parties has been achieved to reach the settlement agree me efore the City ouncil. Staff would recommend its approval. David M. Osberg City Administrat cc. Nick C zem' Way a gen AGREEMENT This agreement is made and entered into as of the day of June, 1999,by and between A.J.C. K'LEEN Associates, a Minnesota General Partnership, Kathleen C. Quaas, formerly known as Kathleen L. Lipo, also known as Kathleen L. Lippo, Kathleen C. Quaas, as trustee of the Kathleen C. Quaas Living Trust Under Agreement dated the 23`d day of February, 1995, Lawrence N. Conzemius and Lawrence N. Conzemius Guardian of Thomas G. Conzemius, also known as Thomas Conzemius, Ward("Conzemius"), Independent School District No. 200, Hastings, Minnesota, ("School District") and City of Hastings, a Minnesota Municipal Corporation, ("City"). BACKGROUND A. The School District is constructing a new senior high school, part of which is in the City of Hastings, the construction of which will require the realignment of West 4th Street and the extension of General Sieben Drive. B. In order to extend and realign West 4th Street, it is necessary for the School District and the City to acquire parcels A and B,which are described on attached Exhibit 1, which parcels are now owned by Conzemius. C. All parties to this Agreement have been discussing the acquisition of parcels A and B,but have not reached an agreement as yet. D. School District desires to begin the grading of its high school site as soon as possible, which would include parcels A and B. 1 E. All parties to this agreement understand that if necessary, both School District and City have the legal authority to condemn parcels A and B, which condemnation proceeding could involve the use of the "quick take"proceeding, which would give title to parcels A and B to the School District or City essentially 90 days after commencing the condemnation proceeding. F. Conzemius' are willing to convey to School District, fee title to parcels A and B at this time, subject to the agreement by School District and City of Hastings to commence condemnation proceedings by a date certain if the parties are unable to reach an agreement as to the acquisition price for said parcels A and B. NOW, THEREFORE, IT IS AGREED by all parties as follows: 1. Subject to the provisions of this agreement, Conzemius' agree to convey by Warranty Deed, fee title to parcels A and B, to School District. 2. School District and City agree that by Conzemius' conveying fee title to School District, School District and City are not relieved of their obligation to pay for parcels A and B. School District and City agree that Conzemius' are conveying fee title to parcels A and B to School District at this time,prior to receiving any payment, solely because of Conzemius' desire not to hold up or delay grading of the high school site. All parties agree that Conzemius', by conveying fee title to parcels A and B at this time, are NOT relinquishing any rights Conzemius' have for just compensation for parcels A and B. 3. All parties agree to continue to try to reach an agreeable price for parcels A and B. In the event the parties cannot reach an agreement on price by September 1, 1999, 2 then School District and City agrees that by November 1, 1999, they will commence condemnation proceedings for parcels A and B, where the issue of just compensation for said parcels will be determined. 4. In any condemnation proceedings regarding parcels A and B, School District and City will NOT raise as a defense that Conzemius' have already conveyed fee title to parcels A and B. Any condemnation proceeding will be conducted as if Conzemius' own the property on the date the condemnation proceedings were commenced. 5. School District and City agree that Conzemius' are also conveying parcels A and B at this time under a threat of condemnation. If the parties are able to reach an agreed upon price for parcels A and B, the City and School District agree to prepare any documentation necessary to establish that the acquisition was made under the threat of condemnation. Dated this day of , 1999. CITY OF HASTINGS, a Minnesota Municipal Corporation By: -Q� Michael D. Werner, Mayor (SEAL) By: David M. Osberg, City-Ad ' istrator 3 Dated this day of ' 1999. A.J.C. K'LEENASSOCIA TES, a Minnesota General Partnership ..� B Its: (i• ,tom KATHLEEN C. QUAAS, formerly known as KATHLEEN L. LIFO, also known as KATHLEEN L. LIPPO KATHLEEN C. QUAAS, as Trustee of the KATHLEEN C. QUAAS Living Trust Under Agreement dated the 23'd day of February, 1995. ByXATHLIFEN C. QUAAS, Trustee LAWRENCE N. CONZE 1 ` ( u LAWRENCE N. CONZEMIUS ardian o Thomas G. Conzemius, also kno s Thomas Conzemius, Ward. 4 w Dated this10 day of A , 1999. INDEPENDENT SCHOOL DISTRICT NO. 200, Hastings, Minnesota By: �P' vl;� ` �?� its Nair By. �(� its Clerk THIS INSTRUMENT DRAFTED BY. FLUEGEL, MOYNIHAN& CLINTON, 15.:4. 1303 South Frontage Road, Suite 5 Hastings, MN 55033 (SMM) 5 as � CY) 1 _O 0) Y\\ N I �/ L.LI 1 ZN Z m 3:3t N W � I NN u P, 0.zu U OO7I _j Q _ C U) o 0 � x CL \ W U) z Q 0 = U i i i W f \� N 1 H AGREEMENT BY AND BETWEEN THE CITY OF HASTINGS, INDEPENDENT SCHOOL DISTRICT NO, 200 AND CONZEMIUS FAMILY THIS AGREEMENT, is made and entered into this_day of , 2000, by and between the City of Hastings, a Minnesota Munici rpor after"City") and Independent School District No. 200, Hastings,Mi sota (he er stri and A.J.C. K'LEEN Associates, a Minnesota General , Kathleen C. Q erly known as Kathleen L. Lipo, also known as Kathleen L. n C. Quaas as Trustee of the Kathleen C. Quaas Living Trust Under Agree ted the February, 1995, Lawrence N. Conzemius and Lawrence N. of as G. Conzemius, also known as Thomas Conzemius, Ward( inafter onze dy") R TALS W EAS, the S istrict i ew high school in the City of Hastings, which din d"Hastings High School"; and WHE 'ngs plat will require the extension of General Sieben Drive fr est Fo orth to Featherstone Road; and WHEREAS, H gh School plat will also require the realignment of West Fourth along the sout edge of Hastings High School plat,which property is presently owned y; and 1 WHEREAS, the City and School District have agreed to work with each other to acquire these additional lands from the Conzemius Family so as to offset the land used for the extension of General Sieben Drive and the realignment of West Fourth Street; and WHEREAS, Conzemius Family are the owners of property described on hed Exhibit "A"• and WHEREAS, all parties have reached an agreem garding of the property described on Exhibit "A" and wish to memo ' that ement. NOW THEREFORE, it is hereby agreed betwe s as follows: 1. In consideration of the terms of this a ment, Family agrees to convey to the School District, by Warranty De a title to cels described on Exhibit"A". Upon execution of this agr ent, C grees to deliver to School District, an abstract certified to dat he pro y desc ' on Exhibit "A" or a commitment for title insurance for the prope n Exhi ". chool District shall have 20 days from the recei s abstr nsuran ent to examine title and raise any title objections. istri objections, Conzemius Family shall have 60 days thereafter to ectio In consi the Conzemius Family conveying the property described on E it "A" to the Sch District, Conzemius Family shall receive a combined total of 40.00 in cas in the City and School District. additional compensation for the Conzemius Family conveying the property described on Exhibit "A", the City agrees to forgive interest which has accrued on deferred special assessments which were levied against the property described on Exhibit`B" as Exhibit 2 "B". This forgiveness shall run from the time the bonds for each particular improvement were paid off through December 31, 2002. Any deferred assessments levied against property described on Exhibit`B" as Exhibit `B", which have not been paid off by Conzetnius Family by December 31, 2002, shall again begin to accrue interest at the original rate of inte beginning January 1, 2003. The parties agree the value of this forgiven ss of in eferred assessments has a value of$150,710.40 as of December 999. F deferral interest on these bonds for three additional years, throw ece 31, 2002, nal value of$49,044.00. Total value of deferred interest on 'al assessments through December 31, 2002 is $199,754.40. The interest forgiveness and the tollin describ is paragraph includes only those assessments by the City for w the b d off in full. It does not include any assessments which are ng or ch may levied in the future. 4. School District s to co by W ty Deed to Conzemius Family, at no cost,Out astings ool plat, street, utility and trail easements, as shown on Exhibi 5. ct agr tit will not object to any requests by Conzemius Family to co rcially devel rty owned by the Conzemius Family which lies south of the chool plat. 6. Con 'us Family agrees that the 10 acres of their land that they currently own tified in the approved City of Hastings Comprehensive Plan will be guided and developed urban residential,i.e., eight or more residential units per acre. This property is shown on Exhibit "D" as Exhibit "D". 3 7. The City agrees to receive a petition for the annexation of land described on Exhibit "D" as Exhibit "D". Upon receipt of such petition, the City will act on the petition as allowed by Minnesota law. 8. After the land described in Exhibit"D"has been annexed to the C' e City agrees to receive a petition for annexation of land described Exhib' xhibit "E". The petition for annexation will be presented to the Hastings Council ation as t whether there is a demonstrated need in the City for th d pr ed to be an need cannot be served elsewhere in the City limits. 9. As additional costs incurred by Conze s F f this project, the City and School District agree to reimburse Conze ' follow (a) $1,500.00 for cro ages (b) $2,500.00 fo raisal s (c) $1,844.7 engin fees $ terest Dated this , 2000. CITY OF HASTINGS, a Minnesota Municipal Corporation By: Michael D. Werner,Mayor (SEAL) By: David M. Osberg, City Administrator 4 Dated this_day of 2000. INDEPENDENT SCHOOL DISTRICT NO. 200., Hastings, Minnesota By: hair By: `1 , its Clerk A N ASS S, eral ership Dated: 120 I Dated: KATHLEEN C. QUAAS, formerly known as KATHLEEN L. LIFO, also known as KATHLEEN L. LIPPO Dat 0. RALPH QUAAS, also known as RALPH H. QUAAS 5 KATHLEEN C QUAAS, as Trustee of the KATHLEEN C QUAAS Living Trust Under Agreement dated the 23'd day of February, 1995. Dated: , 2000. By: KATHLEEN C. QUA Tn Dated: , 2000. LAWREN. C MIUS Dated: , 2000. MA ONZE Dated: 12000. NC CONZEMIUS Guardian of omas G. nzemius, also known as omas zemius,Ward. s � OWLEDGMENT STATE CO Y OF DAKOT e The foregoing ' trument was acknowledged before me this day of , 2000, hael D. We and David M. Osberg, the Mayor and City Administrator of the City of a Mi a Municipal Corporation. NOTARY PUBLIC 6 ACKNOWLEDGMENT STATE OF MINNESOTA) )SS. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this_day of 2000, by and , the Chair andKofendent School District No. 200, Hastings, Minnesota. N LIC ACKNOWLED NT STATE OF ) ) SS. COUNTY OF ) The foregoing instrument w owl ed befor a this_day of , 2000, by , the Ge artn A.J.C. en Associates, a Minnesota General Partnership, on behalf of the p ship. NOTARY PUBLIC CKNOWLEDGMENT ST OF WASHIN )SS. NTY OF he fore instrument was acknowledged before me this_day of ,2000, aas, formerly known as Kathleen L.Lipo, also known as Kathleen L.Lippo and so known as Ralph H. Quaas, Wife and Husband. NOTARY PUBLIC 7 ACKNOWLEDGMENT STATE OF WASHINGTON ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this_day of , 2000, by Kathleen C.Quaas,as Trustee of the Kathleen C.Quaas Living Trust er ment dated the 23rd day of February, 1995. AML NOTAR LI NW ACKNOWLEDG STATE OF CALIFORNIA ) )ss. COUNTY OF ) The foregoing instrument was ac ledge day of , 2000, by Lawrence N. Conzemius and Mary on ,Hu Wife. PUBLIC ACK DGMENT STATE OF IA )s . COUNTYIV e foregoing i was acknowledged before me this_day of , 2000, by rence N. Conze s, as Guardian of the Estate of Thomas G. Conzemius, also known as as Conzemius, d. 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