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Home My WebLink About1994-02-25 CC Packet Special Meeting ~ ,e q+fJ r illwater "~ ~ TH;:-;RTHPLACE OF MINNESOTA ~ . February 25, 1994 MEMORANDUM TO: MAYOR AND COUNCIL FROM: MORLIWELDON, CITY CLERK C" ~~.~ :.,....... ~ . . .. - -.- ......--.._----~..,..- "- -,---"-"'-'-"'._"'~.- _...._~.."' ",,-"-,.-~- ~- "----.- "--"~--"",..-_...,. ,- '-"-"-~'-' .. -" - RE:= ..~~~~~iEmAL~~OUNCiI3NiETlNGRET-----....., ..." - -~ -- -' ---.....,.. - .' .~t~~..~,{f~I~~1{[~~d~~1SI~~~..:,.. "'Ttle~4~i~#~dl~1,j99~:'~':""" ,.,., -.,-. c .".~- ""._ ~~;, :~E3..qj1~~lg9J1:!11,,'~'~.:r~:~:;:,...~;,.___.j:,:-,if;t, ("...~~~~~;;_.,~i;..j.~:~rt~~~,:.;~,~~,.~,:,-_.~~..,.,,~:.'"-_,,~..,:~:._ .-.._-"'.....,-._""'.:::'~"".._'"";.>oo,~""'"~'::...___..',..' ~"_~.~:,~"""'-"';,..._':.1,,;;;:.,;..;_:;t_.;;..,.;.:4:_;..:c.~. .. -- .. .... ---,' .. ~-- .. .. - - '-- This mem(y{s~a~~eniinaer-107COtlIl6i{ih~t-a.Special'Meeti;g~~~~~-S';h~d~l~cl~f~I~~~i~ii.'~~i:~~,~~::;~:: ;', March 1, 1994, at 4:30 p.m., in the Stillwater City Hall Council Chambers, 216 NorthF6urth . . Street, Stillwater, MN, to discuss the following: , ., --'_':'.'-<~"'~=-':':;-~~;",~,,=- ,. _ n___'~~.,.__....._;_..~ ~..~ -.-----. ._---- -----......-- _:"- 1". ""-..c:.:' :>'. ':"'C'" _ =. -....: :"_~ ,-""",:';,-...-."",~~.,,,,-_-....._ W~~ksh6p3ta::ai~cliss: tax . inSr~rii~rit. fimmcing assist~~ ,for~~q~t~'1'lijt~"~f#iffi~f~f~'I12l{{f.g(;_.,:" ~ development. - . 2. Any other business Council may wish to discuss. j ~ CITY HAll: 216 NORTH FOURTH STillWATER. MINNESOTA 55082 PHONE: 61 e MEMORANDUM FROM: Mayor and City Council C\ Diane Deblon, Finance Director $2r February 25, 1994 TO: DATE: SUBJECT: Financial Implications of Hotel Request The developer of the hotel has requested and/or proposed specific financial terms that will impact on the City's financial status. The 1994 Budget includes~income from this lease 'in'the'amount nf $55,000;" cAn amount -1esS...-.L:::::..L than this will have a negative impact on the 1994 Budgeted revenues. The special-assessnients-are'-f6Ythe""D6WftlowIflmprovemenCproject" and':are:-befug'Paidccby;c~,#g,;---,-_L';, ;-,~- ,,- CUB. Any reduction and/or elimination of these assessments will have a negative impact on the bonds sold to finance that project. e I have previously estimated the amount of net TIF generated by the hotel project at approximately $32,000 per year. Further, it is my recommendation to the City Council that if the tax increment assistance is provided, it should be on a pay-as-you-go basis, with the City NOT bonding for the project. ',..,e~::-- .- ..:."--",,- - ,..., .. _ MEMORANDUM TO: Mayor and City Council FR: Steve Russell, Community Development Director V DA: February 17, 1994 RE: Consideration of TIF Request for Redevelopment of a Downtown Hotel Background: The City Council previously approved a special use permit and design review permit for the development-bf.a, hotel using ,the :Lumberman's~cl1~Jlge. ,p_uilding~nd '".__~, building-aIl addition to that strllcturewherethegrocerycstore.nowsitslCases DP /93- Hr---a:nd'SUP'93~25). '.- 'The,:pr-oposed 'hotel -would '~have;90=iguest:il"oQm$i:"~~:o~'~,~i';:- restaurantdseating J40,i diners and 'meeting_ facilities'for?OO-maximum.,~:The_i3,si',_, --,:-,.~=-~~ ~.,-.:c._. develop~~~:h.a~~:=pffi..J!i~d. ..the ;_attacl1ed ,project=des~.riptiQ!!T~'Project ::cbudgeti'"'__:" '---::7'7~':;;:c=' ~'f easibility'=study'aI1~J)I'Oforma.~::~'?,~-7:';i. :.::. ,', '.. ;, ~..~ 1}-F";::~;-;:,;:.'~::~:~;';'~~:--Z~J,2;:~~;':S:~_f.:.~,;;-j;;;;:;'-,-",:.;:;;''f:S:;,;. ....,'.....-.--... , -:." -- ;... -'- .-'~ ,._,'-,.~: --_.'--",,<:-. According to the developers estimate, the project would benefit the City of Stillwater by attracting 39,091 overnight visitors to the area, expenditures from those visitors of $1.5 million. The hotel would employ 25 'full-time equivalent employees and 50 _ restaurant employees with a combined payroll of over $1 million. In order for the hotel project to be economically feasible for the developer, the developer has requested City assistance comprised of the nine items as contained in the letter of January 17, 1994. This staff report goes over each item as listed providing background information and staff recommendation. The staff recommendation is based in the City's Tax Increment Financing Policy, past city assistance practices and legal and financial advice from the city attorney and finance director. Item #1. 1. Subordinated Land Lease. a. 50 year term. b. Monthly lease payments not to exceed $4,000 per month for the first three years once the hotel opens. Starting the 4th through the 20th year, the monthly payment will be $4,762 per month. After 20 years, the base will be renegotiated based on a formula agreed to now. --,-'-~'~....... F_+.~~~-:;~~~":~:c~'~7::?=~1IEiommm:will.rr~~~~~?~;Uy-:~~t~:.~~~~~~~;~~~hJ~~;~~~~; d. The lease payments to the city will begin after an occupancy permit has ,~.;.~;.~,~~~,~~.__<~li~~~!~~:~~e city. r=:;:;;;~=L::~,:",.,','~,,,cc-::~,,,."",.......~~~:9o=-,,Wg,,--'j'f',,.,;;.,'''"''K5Ji'.~:~~.:Q~,...:.~'"..",,1<:.--.::~'!'~~.~ , .,.. _:u.i~~~~ _.-,~~.~,];l~~~Z ,~ ... a. The request for a 50-year term subordinated ground lease to secure a mortgage for the building construction is reasonable. The term of the lease would need to be at least as long as the mortgage term. - If our lease were subordinated to the tenants mortgage, we could be faced with either stepping into the tenant/mortgagee's position to make their mortgage payments in the event they are in default, or, if foreclosure actually is undertaken, to buyout the underlying mortgage ($3 million) in order to protect the real estate we own from forfeiture. b. The City owns the land under the Lumberman's Exchange building. The land was purchased in June 1991 from the Glacier Park Company as a part of a larger purchase of 6.2 acres. An appraisal of the land under the Lumberman's building, grocery store and Hooley parking lot was prepared indicating a land only value of $635,00 and an annual lease value of $57,150 per year adjusted every 5 years (appraisal attached). The lease payment by the developer is less than the market values, based on the appraisal, and is tied to a 20-year non -adjusted lease. c. The request proposes that Paul Hoffman (the developer) not personally guarantee the land lease. This is of concern since he is the person with the financial ability to guarantee payments to the city of the land lease amount if the tenant defaults. Mr. Hoffman will not guarantee the lease the city should require that some other financially secure entity assure payment of the land lease. - d. In order for the lease payment to begin after occupancy either Super Valu would have to pay the lease amount for the time of construction or the city would forgive the payment ( 6 - 12 months, $35,000 - $70,000). 2. The City of Stillwater or Cub Foods will absorb all special assessments that are av:ainst the property. Special assessments as a result of the Downtown Improvement Project (1991- 92), total approximately $70,000. The developer is requesting the city or Cub pay that amount. Typically assessments are considered as part of the purchase price and paid off at time of purchase. The City of Stillwater has not previously provided this type of assistance although it is TIF eligible. 3. The City of Stillwater will not unreasonably withhold the approval of the plans and specifications. Approval must be received within 10 business days after receipt by City. The City reviews plans and specifications in a timely manner depending on work load and completeness of plans. As long as all design permit conditions of approval are met the 10 day building plan review period can be met. 4. For securities purposes, we need full disclosure of the lease in effect -between - Cub Foods and the City of Stillwater. A copy of the lease between Super Valu and the City is attached to this e document. Cub (Super Valu) has agreed to pay $70,000 a year land lease (the-'----'------ . - ! 2 t4'" , e e cost of purchase of the leased land to the City) amount until a purchaser of the buildings is found. 5. If the City of Stillwater deems bondin~ of contractors is necessary, only subcontracts will be bonded. Bonding of the contractors is not requires because the hotel project is not a public project. Depending on the level of City assistance the developer receives from the City, the City may want a third party agreement between the tenant's mortgagee and the City directing payment of funds to the contract suppliers based on satisfactory completion of portions of construction. 6. After the City of Stillwater agTees with all items listed, a period of 150 days will be allowed to finalize financin~ and raise the required equity. This request would result in a loss of leasepayrtients"totl1e_(jity',forothe150-- , day-period'-ozl'$40;-OOO .-There'-'is :no" precederice~rtir-::-thls,-type-:-6fasSIstairce-::~::':~~~ Although agai~jt could beT~F_ ~ligible. -' ,L,':~;c::':~":;;~c':"__':,, _._~ ... . -. .. - .-... -0 . . . Th7CifY~f-Stillwater-WilirtijEu~if;~nablY'wrfhhi[df~~~~llitf~~:-;.' and Will. notuIu"easonably, withholdapprovalregardifilfcsw€15f::the"llolel"m''':''c'c-,' future years. 7. The City usually has language in the agreement with developers where City assistance is involved that protects our interest but does not unreasonably withhold approval of the sale of development. 8. The City of Stillwater will provide the necessary licenses includin~ a liquor license for the operation of food and bevera~e on the premises. A liquor licenses has been approved through special legislation for the hotel restaurant. The license would be available for the intended purpose so long as the holder meets the normal requirement of the license. 9. As we have discussed in the past, there are several extraordinary development costs that are eligible for TIF financin~. Since lender constraints will not allow the partnership to borrow additional funds for extraordinary site related costs, we will need the Cityof,Stillwater to. provide the followin~ funds for the project: Parkin~ Lot Improvements - West Side Only 76,000 Landscapin~ and other site requirements 40,000 Hooley's and Lumberman's Demolition 100,000 Flood Plain improvements to Lumberman's 80,000 Structural improvements for poor soils 75,000 _~=:"-=;~"~-,::~~;~::c~~~~=:~;~~;~~..2~~~~0i::~ ~,,',"',' " ',~:.',--'_,'.". ',...,.., The,,' ,c.os,t. S ..,li,'S, t".ed_,'~1?o,'.,"v,', .e,__.,...",Wl.." ..,.th,."." ~"e, ".,.,~."e, x, c"ep". ti"".. o"",."n.. '.Ot,.,.',.,t""ne.,p.rI, . v" a,,' t~':,pa,.", ',!killg,..c,li,S,' ~,,',~~s.,",e, ?,',',-'l,?t.,."..,-. >. .,'.;;-:,;:.,:,~~~;-.l,!llp1'9:YemeI!t-f?'app~~ece:J.igI1:~!~~:rlIt~n!mS';~.B~~d'f~'m~~~S'O~olt~ne:. .- ~5~r~~~::~!f~~~~~...~~;~ I~ a $1.3 million current value approximately $30,000 a year of TIF funds would be e available from the new construction. Depending on project completion date there are 14 or 15 years of TIF proceeds available from the project. Based on City TIF policy this amount could be available for TIF costs on a "pay as you go" basis. The "pay as you go" method of assistance was used for the Desch building and Brines building. This method of assistance reduces the risk of the city for bond mortgage repayments if project taxes are not paid. The amount of TIF that is generated from the project would not cover the $400,000 TIF assistance requested. Summary Recommendation regarding request for City assistance: Request Recommendation 1 a(l) 50-year term OK a(2) Su bordination No b $4,762/month 20 yrs. Market Value ($51,150/yr.) - 5 year escalator c Nopersonal guarantee Require guarantee .-_._. +--,,- ----~._-. d No lease payment to occupancy No "~_._7_='::-;'~--;;.:';":::,:::;.; 2. Special Assessment absorbed No 3. Issue permits Yes 4. Lease disclosure Provided e 5. Bonding of contractors Require some type of security agreemen t depending on assistance 6. 150 days no lease payment No 7. Not withhold approval Can agree to process in timely manner 8. Liquor licenses Provide licenses 9. TIF request $400,000 Estimated $30,000 per year "pay as you go" TIF assistance The above recommendation is consistent with other City TIF assistance projects where the TIF generated by the new development is provided to assist the project. The City Council can consider the developers request in light of the overall benefit of the project to the downtown and community and determine the amount of City assistance available and the amount of "business risk" the City is willing to take. Attachments: TIF preapplication, project budget, proforma and feasibility study. Lease agreement Appraisal ~---_._-'-_._-". .., -"'0 ,"'." 4 .... ,.,--,,,. II. t /IrF~ ~ ~ rlF ~/f~ e CITY OF STILLWATER PRE-APPLICATION TAX INCREMENT FINANCING ASSISTANCE Legal name or 2~plicant: stillwater Hotel Partnership-A Wisconsin Limited Partnership to be tonned. Address: 2019 Valley Fair Mall, Appleton, WI 54915 Telephone number: 414-731-2322 Name of contac: person: Paul J. Hoffman or Richard J. Anheier REQUESTED I~FOR~ATION Addendums shall be attached hereto addressin9 in detail the follo~jng: 1. Amap showing,theexactboundari es of proposed--.devel.opment .-El}closed 3. Give a.. gerleral des cript iO[l;9L the pfoje<::-Lt!1cluQJB-9;~:?jz:.e::~~9JlcL~,c~:'~,~::,,"'::~': .}ri.~'~~~T~~~t~~)'N~s;~~:IT~~~'~~oj~~fear~1fr~.ibt~~f,;~-~ia~tfE;~~="~T,:~, flow; timing of the project; other pertinent information.'Seeenclosed '. narrative The existing Comprehensive Plan Land Use designation and zoning of the property. Include a statement as to how the proposed development.. will conform to the land use designation and how the property will be zoned. Explain any discrepancies between the proposed development and th~ ex i sti ng 1 a,!d use designati on and zoni ng. -Have been. working with City. of Si11lwater Planmng Dept. and the~.proposedplanfa.l.lsw1th1n tlie canprehenS1ve ~ ~atement identifying the public improvements requested to be financed and why the costs of the improvement cannot be paid by the developer. See enclosed letter. 2. e 4. 5. A statement identifying the public benefits of the proposal including estimated increase in property valuation, new jobs to be created and other community assets. See enclosed narrative. 6. A written perspective of the developers company or corporation, principals, history and past projects. Brochure enclosed. Applicant understands and agrees that the information contained in this application, and the information contained in items above, is intended for use by the City of Stillwater, its officers, employees, and agents in connection with the City's consideration of possible tax increment bond financing for applicant's project; however, the City gives no assurance that this information may not be disclosed, in whole or part, to persons other than '-:==:::c.---' - City'sgfti cj,a 1 s,_...emp,loyees an,c1_a..9~~~s.," .-' _ _, ,_ _ _ _ c- ,c- c :-- "C-::-..- _ _ _ ~:.=. .~~.-:..::-_:.:-~,__ ' ~~'::,,~~~~:::~:-:_~:::'~.-~;::'::~:_'~=:~~~=_::~::~3~":~";~~~?~:i!J;;~~~'i0_c:;:f\~;:;~:r';~r;::~~.__...~~::. -'___:.">~;;,:-::::::,:;~:~~:;:_:/~~~~~~,~~",-:;;~,::~:,.,'0"'::-," '~'_"',':''"~'''~''',::<;~~:~. ;-~'-':'-::: " SIGNATURE -.. ..:, --~'-=~,o_~~;be~~e~~-oferFartneiSfiiup.:.kWiscbnsifi'1:lWted-:Parffi~f~fiip ,.. /' sj gnqtlJre. I I . ,aul=J'" <) iti,....~pplicant' s :;~..,. ,.- ",~:'~"'~~- '~':~~-:~.,'-.-::~~;~:~~,~:_7-~"'"'f- ~.,--" ,.--.~: '~'~'ir'::<..,",." ,',' c-:""""'-_':~;~;:j"".'~'7:.,,,~_",. , CITY OF STILLWATER PRELIMINARY AGREEMENT FOR TAX INCREMENT FINANCING e (1) This Preliminary Agreement made and entered into by and be~',yeen the City of Stillwater, a Municipality organized and operating under ~he laws of tf.e ,~~~~::>Qft"'\'ii-~Rt~?ta Jl1w;ei l}...9fter ca 11 ~d "City") and st~llwater Hotel Partnership a ~~~ orga111 zerurtd>W"the laws aT the State of WlsconSln (hereinafter called "Developer"). WITNESS~TH: (I I) WHEREAS, the City has received from Developer a request that the City provide tax increment assistance pursuant to Minnesota Statutes, Sections 469.124 through 469.134 and Sections 469.174 through 469.179 (collectively, the "Act") in connection with a project to be undertaken by the Developer within the City. (III) NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree as follows: A. The Developer agrees to deposit 'Nith the City $3,000 for any and all expenses and costs of the City in connection with the preparation of the deve 1 op1lent program and all documentation and procedures requi red by the Act in connection with the issuance of tax increment bonds, whether or not the tax ~ increment bonds are actually issued, as verified by itemized statements for ~ services rendered. Costs and expenses shall include, but not be limited to, all out-of-pocket expenses, all fees for legal services, all fees for architectural engineering and financial services including feasibility reports, all administration costs, appra~sa1 costs, all costs of reports and hearings. Monies not expended will be refunded to the applicant. Additional expenses, if any, will be passed to the developer. B. The City Council reserves the right to deny any application for financing at any stage of the proceedings prior to its entering into a Development Agreement. . C. All applications and supporting materials and documents shall remain the property of the City. All such materials may be subject to disclosure and/or public review under applicable provisions of State Law. (IV) IN WITNESS WHEREOF, the City and the Developer have executed this Agreement. Approved by the City of Stillwater, Minnesota, this , -i-9-&9. 1994 day of CITY OF STILLWATER Wallace Abrahamson, Mayor ,."it ... ..-_"....,.."._...J'.,.,._" >_ ,.~_. W' _"'w......~ e COUNTRY SUITES HOTEL AND RESTAURANT STILLWATER, MN. Prepared by Bill Bell of Motel Development and Management PROJECT DESCRIPTION The Country Suites Hotel will be built on the existing Hooley Super Market site. The hotel will be attached to the Lumbermen's Exchange Building which is on the National Register for historical buildings. Country Suites is franchised by Carlson Companies along with Radisson Hotel, Colony Resorts, TGI Friday Restaurants and Country Kitchens. The Lumbermen's Exchange building will be converted to 30 unique hotel suites, some with private large 2 person whirlpool baths. "Thi s "buildihg-~Wo\1td-;be' ' 'attached" tora ~new':structur:-e>.::t:ha t'Lwoul-d-"''',~'...!~'''7'-'~'''''; house 3.0 - two~,r.:9()!!b":El1,!i t:,eswj"tJ"l",p9,;L<;onies., oYE:rrlqoking,otp.e 'St:,';c:EgJ,x__:;;c . River and 30 rooms'with 'two-queen sized beas--~~ch~dn-:-'t:he'.Wate'r;\?~:;::-=~;':: Street >sid~ of::t:,h~,buildin~j :()yerlookingdo\'into\m'~SSil1~Ci,t-e:r:-;": '-'," ~~g~~~~~~fi~::J~t6t~~J~i~~~~i~~~n1i~~~1:~i~~~~~f~1i~~~d' . stairway would lead to the second floor which would consist of a restaurant and lounge with 140 seats and a balcony facing the St. Croix River. The restaurant would have glass walls which would provide the diners with a spectacular view of the river, the colorful trees on each bank and the boating activity on the river. The balcony would be used for outdoor dining during the summer. e The third floor will consist of banquet rooms and meeting rooms accommodating approximately 200 persons in the largest room. Traffic to the hotel will generally flow down Main Street (Highway 95) turning east on Myrtle Street to the motel entrance. Traffic could also follow Chestnut Street to Water Street and proceed 1 block north to the motel entrance. Parking for hotel and restaurant guests will be in what is now the Hooley parking lot and in the public parking areas east and north of the hotel and restaurant. A 90 room hotel with 70% occupancy will need parking for approximately 63 cars. The restaurant would require parking for approximately 90 cars at peak times as a Saturday night when a wedding reception would be served in the banquet area and the The hotel market will include AndersenWindows';.Cub'Foods, "-and~'''c;,~ c;". ,.-:- other corporations in the area. In addition, the hotel will be market ed:to"CoJ.:e,s_ ip tb,e-:Tw.:LI1C;i,..ties.J:or 'meetiTIJ,""'-=seminars " "-;::""':-...,~~i"';,.~_~,~:~.~,,~~: ----"';;~~.~~ ..;<~~~h-'7'=~~~*';':~,",~:':;::''''''''''~''''--;~- ,"'" """" etreaCI;F .' , -"'c."," . '" ""~::"':";_'l~~'l,~:'ti,~_~_' , Stillwater now has. The hotel will also be marketed to tour bus groups traveling through the area. e The hotel will also attract weekend guests from the upper midwest. We will include in our promotions' weekend packages to include the dinner train and St. Croix River Tours. The Lowell Inn is an outstanding attraction and will get considerable restaurant business from hotel guests. The quaint and attractive gift shops and antique stores will provide outings for hotel guests. The merchants, restaurants and bars along Main Street and the river front will all benefit from the shopper-guests staying in the hotel. At 70% occupancy, a 90 room hotel will have 22,995 occupied rooms per year. Estimating an occupancy of 2 or more persons in 70% of the occupied rooms, there will be 39,091 overnight visitors per year in downtown Stillwater that do not stay in Stillwater now. The Minneapolis Conventions and Visitors Bureau told me that an average conventioneer spends $740.00 per day for lodging, meals, entertainment, gifts and other purchases. This seems a little high but assuming an expenditure of $400.00 per person per day, this would result in $15,636,400.00 being spent in downtown Stillwater by hotel guests. e It has been estimated that this money turns over 3 1/2 times minimum before it leaves the community which would impact the community by $54,727,400.00. The public benefits of this development would be as follows: 4. 1. Approximately $15,000,000.00 of new money coming into the community. Using a 3 1/2 times factor, the result will be $54,000,000.00 spent by motel guests and merchants in the area as the money goes through their hands. The hotel will employ a full time equivalent of 25 persons while the restaurant would employ a full time equivalent of 50 persons. This will result in an additional payroll in excess of $1,000,000.00 that would also turn over several times before leaving the community. Local contractors and workmen will, as much as possible, be contracted to build the hotel. The hotel will be an anchor to downtown Stillwater and would revitalize the area resulting in industrial and retail growth in Stillwater and across the river in Wisconsin. 2. 3. 5. e ........~.~.,....,......,...--_.-..".,...~-_.- .:. HOFFMAN DEVELOPMENT CORPORATION e January 17, 1994 Steve Russell Community Development Director City of Stillwater 216 N. Fourth Stillwater, MN 55082 Dear Steve: i _ _, u "~= C 'cu- .C 'CuC."'- ,," ,,-->,. ..,.._,'"':",.,='"~64-,;.~ "'=;~':= c" :~";;".:,.b'-'~'---'~;c -'):;-'.~'-=-C""'='?C. , I' '''u.' -. . Since Januaryl;'~1994:we have stepped back-and taken a long hard lookat~:,-" the proposed:9Q"r20!!!h2tel, de'{~l()RITI~I1t in StillwEit~r.':".eU:rp~~itio:ti.attliet;:72i#;:t::;;_::':,_u:;. '~2?~t:c='=='c-=' present '.tjme.~Qan.~~;-aUriill1anzed;as--:f611ows;':'-"'__S;.'~~~::=":f'~f~2~~g~i0~0'--'~t~E5E~~E~s'~;~_- e 1. 2. \Ve are still very interested in the project. We were very close to obtaining financing for the project but one bank canceled their interest in funding the construction loan related to the SBA loan. However, a different bank has been recommended to us by the SBA that hopefully will fund this construction loan. We also feel the other banks can be brought together again. One major concern by everyone is investor interest. We did circulate a document for initial investor interest. There was good interest however potential investors want to know the final financing and land lease arrangements which we were unable to fumish. Our plan is to update the information originally fUTIlished to potential investors after we finalize the details with the City of Stillwater and Cub Foods, and financing has been obtained. 3. In order for us to proceed any further, we need to have an understanding with the City of Stillwater. Enclosed is an outline of the major points as we see them. Our lenders also have been notified that we need to work out an understanding i ",'. ,with the City of Stilhvater before.doing aI1~~.II?:~E~,.~I:_~eJ1.~~~~t~,.Ihe""'7c-c"-,~~-c 2019 Valley Fair Mall · Appleton. Wisconsin 54915 · (414)731-2322 · FAX (414)731-4236 1. Subordinated Land Lease a. 50 year term. b. Monthly lease payments not to exceed 4000 per month for the first three years once the hotel opens. Starting the 4th through the 20th year, the monthly payments will be $4762.00 per month. After 20 years, the base will be renegotiated based on a formula agreed to now. c. Paul Hoffman will not personally guarantee the land lease. d. The lease payments to the City will begin after an occupancy permit has been obtained from the City. e 2. The City of Stillwater or Cub Foods will absorb all special assessments that are against the property. The City of Stillwater will not unreasonably withhold the approval of the plans and specifications. Approval must be received within 10 business days after receipt by City. For securities purposes, we need full disclosure of the lease in effect between Cub Foods and the City of Stillwater. If the City of Stillwater deems bonding of contractors is necessary, only subcontractors will be bonded. After the City of Stillwater agrees with all items listed, a period of 150 days will be allowed to finalize financing and raise the required equity . The City of Stillwater will not unreasonably withhold approval of the financing and will not unreasonably withhold approval regarding sale of the hotel in future years. The City of Stillwater will provide the necessary licenses including a liquor license for the operation of food and beverage on the premises. As we have discussed in the past, there are several extraordinary development costs that are eligible for TIF financing. Since lender constraints will not allow the partnership to borrow additional funds for extraordinary site related costs, we will need the City of Stillwater to provide the following funds for the project: e 3. 4. 5. 6. 7. 8. 9. Parking Lot Improvements-West Side Only Landscaping and other site requirements Hooley's and Lumberman's demolition Flood plain improvements to Lumberman's Structural improvements for poor soils Utility work to serve project Miscellaneous and contingency 76,000.00 40,000.00 100,000.00 80,000.00 75,000.00 6,000.00 23.000.00 400,000.00 -,<,e --_.--.~-~-~~,,,,,-,-.....",...,,,.......",,~;.,;c;~_~~,~,'';;:~ ._c _ :..:_---..:...:-~{;;.-:.,":l':..,'~".]o~'::.... e e e , ' The City of Stillwater will recover a major portion of these funds through tax incremental financing. Expenditures not eligible for recovery through TIF would be a contribution by the City of Stillwater necessary to bring this needed project to downtown Stillwater. As stated previously. we are very anxious to move ahead on the project but will not do so until the above items are agreed to. We look forward to meeting with you on January 19. 1994 at 10:00 AM. We feel confident that with the continued support of the City of Stillwater. we can move ahead on this challenging and important community project. Sincerely. HOFFMAN DEVELOPMENT CORPORATION a~tJJ \, .(2jL'~ ~Chard J. AnhrJ;.er Chief Financial Officer RJAjlg cc: Bill Bell ,.,~.~.i~,~~~.. , . /7~ fk~ OS-lug-93 e STILLi1TIB BOTIL P111111SIIP lPPLITOI. KISCOISII PiOJIC! BODGIT PUP1tlD AOGOST 4. 1993 SCBlDOLI 1 t lIistU{ Building 575000 >>esip and Construction 3801949 lestauut Iqaipaent 150000 _ lRrniture, fixtures and Iquiplent 300000 Operating Supplies and Iquiplent 60000 OlDen Legal 25000 Lendors Leea! 15000 Soil Tests 5000 ~nstruction Lou fee 20000 bteril Interest 100000 '1ppraisal , '" ,- . 1000 leas i b i Ii ty~Stlldr~=~,'=~_ci'--':~~;_~:"'::"::"'."'_.~::::~~~-; ':, 10000 hteril RealbtatfTaxe.~~~:.:'.. - -'--- --,- ~:t::~:::;!i~~~t~~~1~t~t2'_~;_~ lranchise fee - . -, " ,," . c--'._._,"~ ioriiag Capital !iscelIaneous & Contingency uueloplent Securities COI.issions Offerin€ IIpenses - 84051 ,5000 50000 ninoo 85000 Total Project Costs ~o~ooo Source of funds lirs t !ortgage Li.ited Partnership Iquity 3000000 2600000 Total funds Avai:able 5600000 ." . 'THESEPROJECIIONS,(SCHEPULESA THRu E) REPRESENT AMEllE pREDICTION OF FUTURE EVENTS BASED UPON ~:'2'"~-:':_:~~ASS~~~S~~~~~~~g;r~~~~~Y!:7t1<lP~NOto.yo-~~I-~R:-Y!'Qli~ INDI<:!,TE ,THE ACTUAL . ,.,.'.- . FINANCIAL RESl11.TS THAT'TH~'I'KOJECT'~"A'rTA'IN'~~'~f.~~' - ~~Y::THE~-,>"C'"'" HOFFMAN CORPORATION AND HAVE NOT BEEN JNDEPENDENI1.Y REVIEWEiY6iFVERIFIED:-:-::' . .. ~7~..-".";,,,;..,;z;=-,..~.;;:;c:.-:'/::'.'/t? Exhibit B FEASIBiliTY STUDY FOR e COUNTRY SUITES BY CARLSON HOTEL / BANQUET / MEETING ROOMS RESTAURANT/LOUNGE STillWATER, MINNESOTA .---...,...... ,.-- .~~ .\.~. - ... ~ ~. ~.:' .., .~. '. ,.;..-::.......2.-, '. .. ,'- ..,8i....,. ,-III3eI,--, - "I..~-,~=,=-.-""-,=.-,,,-,.,-, ......,..,..,-.~-,.,- '------"ASSOClAJES' ,......",,' "., .,~:. . . - .'- "', . '- "", -.-,,""-,-, ...:'...~._.,-'..' --.-",,~.,... - ..,.~-.'""""~_... ,_..~.,~,..,.:;,," ..~,'''',."..:-:-;o:~-='~~ . THIS NOTICE IS NOT INTENDED TO BE AN OFFER OR SOLICITATION OF THE UNITS, WHlCH WU-L BE OFFERED EXCLUSIVELY PURSUANT TO A CONFIDENTIAL OFFERING MEMORANDUM (INCLUDING THE EXHIBITS THERETO), WHlCH wn.L BE PREPARED IN CONNECTION THEREWITH AND MADE AVAD..ABLE TO PROSPECTIVE INVESTORS. NO OFFERS OR SUBSCRIPTIONS OF UNITS MAY BE MADE EXCEPT BY PERSONS WHO HAVE RECEIVED AND REVIEWED THE CONFIDENTIAL e ASSOCIATES INC August 5, 1993 To Whom It May Concern: We have updated the study to determine the feasibility of building a 90 room Country Suites by Carlson Hotel in downtown Stillwater, Minnesota, Based onthe informationwe have gathered, wehave<c()ncluded.that'!h~h9!~!Woul.cl eXPE1ri~[lce, ',' an, oecu pahcy -of o5%-the' first year 'wltfl-aii~a'.'erage~dcmYl'ate-Ol$59713~resf.rltii1g~il1:gross-~tq'prn--:':-'-. revenue-of-'$1':476i:098i~otherlncomelo'1)e.added~-Vja'UlaIf.lqrua~:;g.:~f:EI- ~-i?f"':::i~:-7~:~-=;:~:-,~,; ',... -- - -. ~. ... -- ~..,_~:-":'::::HestcruratlLgental'~_"~"'7t- .",-"~.;,,. . ~~;:;::-,",~~Banquet]:tOom REmta:I:';'~,:'-: _.",:c:- "Phorie Income '-., ,'... Vending and Video Games Total Other Income ,~~~~~~: 9.600 . . .- $139.600 By the third year of operation, the hotel should experience a 72% occupancy at an average daily rate of $70.00 resulting in a gross room revenue of$1,702,944-tO' which would be added the other income of $139,600. To summarize: Total income: 65% $1,615,698 72% $1.842.544 Complete projections of expenses are being presented separately from this income study, The motel would employ a full-time equivalent of 22 persons while the restaurant would employ a full-time equivalent of 41 persons. This is an exciting project that will benefit the city and downtown busin,E1ssesin Stillwater. ,.'_. ,,' ,...," " _'_ ......'..r........._ .; ~'._ . . Respectfully submitted. H.R. "Bill" Bell, CHA President .. ~-."-"" '..-'~- '-",,- .-_.------ . ---,~---_..-._;....:'._- :....:....._,-.".,c.-:o~.."-.:c:."'.~:......,.;;.._..c:;;;r,..'.- ._'7__ .... .. _ ,"'-"-""'-'-"-.-'--' .,--_. ..-'-~ .... ...~,- ,-- '"-- . .-,'" ...-- -- ... . -.. _.....-- . _ ,_ .U~__ __.. _ .. -... - .- . .... ..... --~'_.. - :~_~,':::'~:::- :~.~'~7::.<,~..::;..;~-'tY,i.t:G;;;."'';;';';;:'Z:;::~"-~- .:.:..-;.~_-~~-~...:o..~-;_, ------- _c. ~~~~~~~t~:~~~~~5~~~05';awd;t~,,!Mi~n~i)'om~~5'5"400fI{~lefa(J~~9:~~~~;2~>;~~~l~.~C.d . -- . .. H. R. "BILL" BELL BILL BELL ASSOCIATES President - Senior Consultant e EDUCA TlON: Bachelor of Arts Washington State University School of Hotel, Restaurant and Institutional Management Advanced study at Michigan State University and Cornell University EXPERIENCE: Starting as Food and Beverage Controller at the Muehlebach Hotel. Kansas City. Missouri. Bill Bell advanced over fourteen years time and only three employers to Vice President of the Hotel and Restaurant Division for Investors Diversified Services and General Manager of the Marquette Inn and Northstar Inn in Minneapolis, Minnesota. In 1967, started consulting on a part-time basis and in 1974 established Bill Bell Associates, a full-time consulting company to the hospitality field. AREA OF SPECIALTY: · Operational Consulting and Problem Solving · Feasibility Studies · Interim Management . Motel and Restaurant Sales thru Eberhardt Co.. Minneapolis. Minnesota · Concept Development · Sales and Marketing PARTlAL CLIENT LIST: Green Giant Cargill. Inc. First National Bank, Uncoln, NE Madison Hotel Associates, Madison, WI Sheraton Motor Inns Holiday Inn, Watertown, SO Hamel Green & Abrahamson - Architects '.-- .,.~_.~.. - -- -::,:~,~,-:~~~,-~ e H.R. "Bilr Bell Page Two PARTIAL CUENT LIST: (continued) Pioneer Development, Wisconsin Rapids, WI - Feasibility Study Silver Fox Inn, Monticello, MN - Feasibility Study Travel Host Motels - Feasibility Study (7) Bob Stuchall, Hayward, WI - Feasibility Study Dayton-Hudson Corporation Women 'sClub__oLMinne~PQ,U~~::. :~:::;';;.~::::;;s: :;:~7 ,.' :'-:h.--_c:;::.'i:::L.2:i--:-:c..:':':~ _-"'7" ,-.- .'- W~~a.!~7fc:>untry9Iub . :" "C~.- Co,,_,. e"~'""".-"~c~- 7'~~ ".~.....-,.-'-'-~~_C Midland _. Hilfs-:CoLint,yClub ',_, . . -""'=:;::':":-"::'~' ::"="~~'~';,"c;-F:i='::S;f';:I.;i.;c.::.;;,.:c::;.::.. _ :-':'". .~_-':-::=-~=::::'::"~_:-:;""::''';'~~''":::''::":,::_-=:::~;~:::::_~--,~; .:'C.:~: ~,. - _~.-'..", - ~.-.-~'.,.,.., =-,~-.,.,._.,",,-,..,.---.- LafayetteCIU9 - :,.' ,":,.,,'.-. ..' ..',,' ,.,,'.,.. '. ....,.... .,.'~i.2~;,.-':: :::':',~""'.<::..i;"::;....~:;",,"c:~.., :.~"._~~,:- - ::~~~e~~~~~t:JI~6r~~~:;~irlneS01~'~$~t;;iM~!!:"*iii;,;~i;,~':. Austin Hotel Associates, Minnesota -:. Full Service .Mote(" -.~:,~:~--~.~-:~..:-::~-~'~ - '- ~ - Chequamegon Hotel, Ashland, WI - Hotel, Restaurant, Marina, Retail Historic Hotel (new), Hastings. MN - Hotel, Restaurants, Marina Country Hospitality Suites Hotel and TequilaberryResta.Ura.Qt..J:ganMN -.. --- Motel - Anoka, MN Hotels - S1. Thomas, V.I.: Atlanta, GA; Orlando,-..FL Suites Hotel - Fargo, NO Convention Center, Restaurant and Motel - Gering, NE Convention Center, Restaurant and Motel - La Junta, CO Motel, Restaurant and Convention Center - Iowa Falls, IA Country Suites Hotel - Chanhassen, MN' (Minneapolis) Country Suites Hotel - Coon Rapids, MN (Minneaoolis) Country Suites Hotel - Fargo, NO Country Inn - Fargo, NO Country Inn - Minot, NO Country Inn and Suites - Milwaukee, WI Country Inn - Spooner, WI :;>;:;-~'_.~"",",-_'.~";'''..w_.;'.,.,. INDEX The Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., 1 The Site .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3 The Market. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., 4 The Competition ....... . . . . . . . . . . . . . . . . . . . . . . . . .. '0 Conclusions and Recommendations . . . . . . . . . . . . . . . . . .. '6 ~-~-'.:~:~.~~;;~:::::>~'~:.:~' -,. e -:T""."~"",,,,___a ..-._~-_._.- e ",_:.;s:;,;;.;;".,.,:...;.,..,.:,:..,-,,;;...;:'....,P,-:.;'t- THE LoeA TION Stillwater, Minnesota is located 20 miles east of Minneapolis/St. Paul, Minnesota in the beautiful St. Croix Valley on Minnesota Highway 36 running east and west and 95 running north and sOl!t_h through the St. ~ ._--, -." .," --,.,--.-'.--'" ,."" --- ,- .."~- 0_' ,~___.,.._,__.._._______.____.__~___._. -"-~--"c-~>-'"-i.;,;.--,:"""",~:",,_,--,=____c_,. CroiXV~Uey~cQn~k.tiDg-:rayIR[?~:E91t~1'-n.the n9t1tl,::Mfl:Il!l~~~~,$t.,Croix;.",.~s~'o~~",,-;:'.::"" -,-.c:.o" ,,==-_:~:;,;:;''':~'':. ". - ,,. ",.. . ,.'. ,.. '.'... -='--:"'."....~c_~':-c-:-,:",~:"~:"'='~;c::,2.-:;.,::';i,,'c,-:;:.~~ ,. ......", StillwaterTiOaK-cP:ark':Hejghts_7;~iB~aYP9~, Afton '~~~~Jj,9~~~Qfl-4b.~ ~si.~tri;I;;0,;:-~;~c--:~,-;c, Hit:!~:g;';;{ei~ga~f~f~~~[~~t~;3~~~tiJ~~~~~~~~iiiilt;; at Hudson, approximately 15 miles sou~h. Stillwater is about 40 minutes from the Minneap9.lis/St.Paul airport. Stillwater is nestled in the St. Croix Valley by th~~LCr_oixRiyer.1"he . ' - - ,-- - terrain rises steeply on both the west and the eastto the top of the hill. It was originally a lumber town as were the other towns in the valley like Marine on the St. Croix and Taylors Falls. Stillwater is a very picturesque city on the banks of the St. Croix and has many older homes and older buildings in the business district. It is perhaps best known for the Lowell Inn (The Monticello of the West) which is a famous 21-room hotel with 3 restaurants. Although the ,...,._~.:_tl~~g:P~ifJt~rn;i~v,~2'\~~~~2r~i~~~~~~~~Qfj!~g~gQ~~p.d,;:=,,:;~~.;:.~=.,-,~:~:=-::: -.- ..----" --.; -'~c~::';~ -"". 7"='~_~:-'~'A--":~~_~.:-~::~~~:~'~'-::--:-:~,:==_,",:~:::_~:-",-'~:~ ',' :_c,c_~~::.;- _ ,-L~,',:~~",C~':: ,~~~r~\_~::~,:__'.lI_--:.._~.~~~~~;~~i~ charm, it is best known for the restaurants which have been recognized by --~-'--- . ._ ,',. ',',_,' '-._ C'_"" P:f~!:1%~2?-'~~.d~1!-_,>.~,~~~.:"~~'_'< ~"?f;,:;;j'f~CT"~C":~:~~~~~~~ "-..;..-~ Holiday magazine for many years as one of the best 100 restaurants in e North America. The population of the immediate Stillwater area is 24,407 according to the 1990 census. Stillwater 13,882 Oak Park Heights 3,486 Bayport 3,118 Grant Township 3,921 Since the area from the Twin Cities to Stillwater and east of the S1. Croix River in Wisconsin is built up with homes for people commuting to the Twin Cities to work the actual market population is much greater. In recent years Stillwater has become a tourist center and summer fun center for the Twin Cities and the Upper Midwest. The Lowell Inn for years has been the major attraction to Stillwater but their clientele has become older and the introduction of the riverboat cruises, The Minnesota Zephyr Dinner Train, many interesting boutiques and shops, several excellent restaurants and the natural charm of the setting and the city have made Stillwater a very popular and busy city. The major industries in the Stillwater area are tourism, manufacturing (Anderson Windows), Cub Foods and of course, the recreation and recreation-related activities and businesses due to the location on the S1. _.~_._..,._- -- Croix River. - 2 - . "u__ .>' ~,.'j--'"''~'';'''~:':''''~'''::''''''''' ";'.;L' : <::i;:~,:'::~'~:~>{'~:_~~~~::~;,:~~1:'""~~;:;:~.:}e:j" ... ;";'-::ri:;~:,f.ti;::-;'~;'':~::-~::'' e THE SITE The site for the proposed hotel restaurant facility is the Hooley Super Market and Cub Foods site in downtown Stillwater. The site faces the St. Croix River just west of the gazebo and north "'..<' - ,",-"--'- --::,~- :::::"__:':;::::':;'-'.:~::.:~:-:-:;;:? ~~:_'.7':':;':':::'",~-_:^ of the:bric;ige~.9fQssing the 'St.. Croi~ River. _:':::=~'::..:.;;...::.:,:::.::::_":-,~~_~'-_,7.- i-':';'_~;-=;';>;::2:',>:'"':'-:";;.-:'.:3< -- -. -:. '.". ._~-._-.- ___~___U" > -. .." - . ~~~~~~~~~}~~~;~~~r;120~~~~i)i.FY as YO~.:::~~:;,:~g~P~~t?~~,~.~~~1~~~lf_~- Highwa~~miO=~fiUwater.~Alsi~R1Qn~the soutb,;b~~~~~wj~~ty~PI~;~;;;;EZ;i~~'--' .' identify the property. The site is in the middle of the downtown bus.in.es$~,di$~rict tWithJts- - " restaurants, bars, boutiques. antique shops, et9' The site is just a few blocks south of the Minnesota Zephyr depot and just north of the riverboat launching docks so is well located for tourism. The site is approximately 3 miles north of Anderson Windows which is the major demand generator for room nights in the area. This site is in our estimation the best site available for a hotel-motel conference center in the Stillwater area. ~~~~-=-:: _:.:. '-~~- , '!!!!,Y!!L ., ~- .. .. .. .- - - .. - .. .... .... - ,,- '..-~-' ,-- -,.-.-~--'~"""'--'-'-~-'- ~- ". -- ,~--.".. ""- :-~::-c---'-:"~~:~~ THE MARKET e The market for the proposed motel will originate from four sources: Tourism Industrial - Commercial Meetings - Seminars - Retreats Special Events Tourism Due to the location near the Twin Cities major metropolitan area with a population of over 2.5 million and to the ambiance of Stillwater with the scenic river, boating, interesting shops and restaurants, Minnesota Zephyr, paddleboat rides, Stillwater attracts atremendous number of tourists to the area throughout the summer. The very large senior citizen market brings tourists to Stillwater on weekdays, as well as on weekends and during the summer "shoulder" months of April, May, September and October. During the winter there is downhill skiing at Aspen Alps and the Wild Mountain Ski area. There also is lots of cross country skiing in the area at Aamodt's Apple Orchard and several parks so there is winter activity as well. - 4 - -~... .,,:;.,:-~-:'t4:~~'~~C;":'-'. e The local merchants and Chamber of Commerce do an excellent job in promoting the beauty of the Christmas season and shopping in Stillwater with their Victorian Christmas December promotion. We estimate that 40 to 44% of the room night business will come from tourism and weekend business, Industry and Corporate "":-"-=:~1}c:t~~n:-V!indow~-is:the-.-major g enera!9f~,C?t~~~~~tEtQ1,2~rl2.ln~-'::~22::~<=,.,c- ,~_ _ .. ~;~=~-;~.~. ,-.~. .'~ ~ : --,~.=._-,-":-",,,-,:>,,.,:,~~-~,,,-,-,,~,, - -. - --~~~~~c~c~::=--~':.~-~:~;_~~~~-~~:~-$:;).-:-'-'_~~;'~-:::~~~~~~s:c~:--:::::-';c the_area:;:-:TIleY~!1?ye 1 ~ _di~t[f~utors who bring'GOnt!":~~tqri)~pt[gt9.f)~t~9~~~:~:-,<:,~~: --' '-:- =:- i~C$t~t~~~~Pb;r~;if'l~Jt7~~:AndetsOriCttiii:~~~~-ii~~S~~;7. _. - --~"'-". ,"",':--~'-"-; -- ".-",~."'. .......d';_____"'_~~;.~'C' Anderson Windows. In 1989 the plant ~ad 7,809 visitations of this type and in 1990 they had 7,462. Many of these individuals; st~y:-;ov~[nighLin.th~,;-,t - area. They have a number of groups that 90me ,in for schooling, presentations arriving on Saturday or Sunday and departing on Tuesday generally. This happens about 8 times a year with groups numbering 30 to 40 and sometimes larger. They also have an additional two to three groups per week that stay overnight. They often have groups requiring 15to 40 roornsandgeneraJly house two persons per room. Anderson executives and guests need a restaurant, lounge and I :===:~;;:~~;;11'~~~~,1~~:~~~~~?~~~lIJ!~:!iM~~f:S:EI:; I a buffet breakfast. ,'C-::"-'___ ""~-':----","-,--:, -' '" :_,:~- :'---" ---- .-''-'- <~- . " . .-..--- . ..~ -~. - - ~ - ..~"""""~~,k_...,:.__.~~~-:&. ..___~__~. At the present Anderson is using the Best Western Hudson House in Hudson, Wisconsin 15 miles away and sometimes uses a bus to transport them between the motel and the plant. They would like a facility closer to the plant if the hotel provided what they need in terms of clean, comfortable rooms, food service. beverage service and banquet meeting areas at a rate that was competitive with the market. Their local salesmen and executives will also frequent a good restaurant where their guests are staying. Cub Foods has an annual franchisee event requiring 45 rooms for 3 nights. They also have salespeople or clients using 3 to 4 rooms per week. One time per month they have a requirement for 15 rooms for 1 night. According to the 1993 Business Retention & Expansion Study, the major employers in the area are: - 6 - e "_.__'._. .'_____mU ----- --.'.. ,...-.c..-'..~..-.....__......~.._.,... , .,---...~:.- --..--.'.- .. .- ---- .._.~.,._,-,"'..," ,- ,,,-...'..-..-.......,.. ...-.-_._-----~ e Business Retention and Expansion Study Completed 1993 Comoanv Full- Time Anderson Corporation 3,668 Cub Foods, Inc. 240 Incstar, Inc. 330 UFE Incorporated 206 Hansman Industries, Inc. 140 Northern States Power Co. 110 Maple Island Inc. 40 _ . _Pierce BusinessBJoducts/ Inc~ Dahl-Tech: Inc:=='=__- 'd~_~" .,.=..,._..:30._" W. Ft"Medica[EfearonicS~,;~~"~=;'-~~'28->:-- ArT)~d~?ijj:PQwate~lcprg::~~[~~,?g~C K -S_UrU:;oiporatiOl\---~', ~ .'-[:=;;::=-~=---::---~Ig~~ Ammerman ManUfacturing, Inc.' , 15 Ideal Tool & Machine Co. 13 Micropure - Medical, Inc. 18 West Publishing Company 11 Valley Custom Mold 6 North Star Field Services 19 Grubb Equipment Corp. ' 8 NRS Engineering 10 Lonnie Lovness Accessories 8 Voyager Press 12 J.D. Rogers Group 40 Advanced R & D, Inc. 3 Part- Time Product Windows Projected increase to 375 by '998 70 Medical Diagnostic Products '3 Plastic Injection Molds 10 Sheet Metal Fabricator 5 Powder Milk Products ?~'~~~;:~:i-~~t~d _ .' Simulators'; . __ " _ ,: . --- ,:,.:~:;;;:Q.~~1~j~fJ5-r~captg:;:;.:,:~-::~~ "'~~-:-:f~;--:: ,', - ~~~ ~;~t:et}Jfrn~tt~l_ M-a911i6es ~~~~.:.~i.::- -"'-- Exhaust .. E qui prrient:. ;:---,ic-",;:",..~.;:f Injection Molds 5 Medical Products 150 ,\ i ".'.. Law;Books[[ext-Books . ",'.Pla'~titlnj~ctionMdds' Ele~tronic Pan.el? _'Pn e un atic/W-astew a te r Treatment Equipment 2 Semi-Conductor Testing Jewelry Book Assembly Wood Products Scientific Testing Other employees not included in Survey include:. Washington County Government 815 Independent School District #824 835 Lakeview Memorial Hospital 400 Design Fabricated Parts (3M) 250 .~=~~~~~~~'+~cl~~~"';~~~t.c~ Aamodt's Apple Orchard (Seasonal) . -- -'200 . -- . -:0-'7"-- ~:-~:~-:-::-;--;:::j-';=;:;';----~-:,:: :~;."",,:~ .____.m_ .._._ _,'_. .__ ,. - _. - _"0" . r-::;=~""_.'~.:=:="_~:"~'-' . In addition there are salesmen calling on the retail merchants and all of these companies. Many are from the Twin Cities area and do not require overnight facilities. In the past there has not been a good modern and reasonably priced hotel in Stillwater for the corporate traveler to stay in. We estimate that industry and corporate activity will generate 40 to 42% of the business for the hotel. Meetinas - Seminars - Retreats This market will be developed from Anderson Windows, Cub Foods and from Twin City companies like 3M, St. Paul Companies, insurance_. companies, major banking companies and other companies that do off site strategy meetings, corporate planning, etc. This market has to be cultivated and sold on your facility. The hotel in Stillwater with the after business hour activity and attractive restaurants, the river, golf clubs, etc. provides the type of facility and ambiance companies loOk for. According to HSMA (Hotel Sales Managers Association) over 70% of the meetings held are for 50 persons or less. This property would compete favorably with resorts like Rutgers and Maddens and with conference centers like Northland, Radisson (formerly Scanticon) and conference centers located around the Twin City area. We estimate this segment would generate 14 to 16% of the business. - 8 - e ~ ._-,,-,.,-_._..__._--. "-' < .., . ..-..~.. - - "".'.. , - e Special Event Business This segment includes demand generated by wedding receptions, class reunions, sports events like little league, hockey tournaments, amateur softball tournaments, etc. We estimate this segment would generate 2 to 4% of the business. ~:',~~-:--_~~'::-~-"- e THE COMPETITION In the downtown area of Stillwater there is only one hotel, the Lowell Inn. It has 21 rooms that are nicely decorated and furnished but small and quite expensive. Their rates are: $209 to $279 which includes dinner, breakiast and gratuities on weekends. During the week they are $10 cheaper. In addition there are several Bed and Breakiast operations in downtown Stillwater. These are in two and three story restored homes that have been modernized, many equipped with private baths and whirlpools and they serve a full breakiast. Their rates run from $75.00 to $125.00 per day and they have from 7 to 12 rooms each. These basically attract weekenders and some midweek business during the summer but are used little by the corporate business traveler. The Outing Lodge at Pine Points is not located in downtown Stillwater and is a "destination" Bed and Breakiast. They can handle smaller meetings or bridal dinners. - 10- ,-------'. .,....~~,.,"y e The Outing Lodge rates are: Queen Bedded Room with Bath 575 Suite with Jacuzzi $110 They have eight rooms in the main lodge. Their meeting charges are on a per person basis and are $48 per person for a meeting only. This includes a continental breakfast, morning coffee break, lunch, afternoon break and snack. The rate is $110 per pe.rs?nc:i!,~~EfY2~"~fuae"'a room ..~'c-':::.:: "~-=:~~ft1~~~-;;:~~'-~iSLI6~~1~a~rrTHighway 3~.:k~GtJ1~?~~Jf~~~~~~~f~I1~~~~f=-~~4::2,~....o ..,. .-.'-'-",". "~---~'---"'~"'- ---".--.~~'.."...,..'-'" ,. ,...-.....- .,.~~'..~., .....,....,....-,.-.0.'..../-"''''' - _~ -" ,. '- - '..... ", hil(le~iaLn~jq~~~g~intQwn.'.StiHwate.~~..'.'...They hav.~st~~~~~~~R~~~1~~1~:5~~~fS~~o0;F.~:~.' .;:~.. start at $36.95 for 1 person and $45.95 for 2 persons during the week; increasing to $50.95 on weekends for 1 or 2 P~.rsS>-Q? The Best Western Stillwater Inn, with 62 rooms, is located on top' of the hill about 2 blocks from the Super 8. Their rates starfa.t$42 for a budget queen single with upgraded and deluxe kings running $49 and an additional charge of $4 for the second person. Both of these motels are reasonably new, nice, well maintained and well managed but due to their location on a.cgmmuterhigt:!\'Yay without much corporate or industry nearby do an excellent business during the summer and slow down considerably in the winter. They both are on national reservation systems. There are several motels located in Hudson 15 miles south of Stillwater on Interstate 94. There is a Super 8, a Comfort Inn, The Best Western Hudson House and a 60-unit Fairfield Inn by Mariott. There is a dog track that opened in Hudson in June, 1991, but has not been successful and is rumored to be closing this fall. The Best Western Hudson House has a restaurant, lounge and banquet facilities and gets a great deal of business from Anderson Windows because it is the closest full service motel to the Stillwater- Bayport Anderson plants. The rates at the Hudson House Best Western are: Single Queen $48 Double $56 $58 Single King $50 Double Queen Executive With Sofa Sleeper $54 Double $62 Standard Corporate Rate $54 Anderson Window Rate $46 (Estimated) Fairfield Inn by Mariott, Hudson Wisconsin: Weekday Single $39.95 Double $45.95 Weekend Single $57.95 Double $57.95 The hotels that we feel are more comparable with the Country Suites Hotel to be located in downtown Stillwater are the S1. James Hotel and the Quiet House Best Western Hotel in Red Wing. - 12 - e -... ,_._"--;-.:-;..-,",--,,-,,,,:":,:,~...,... e The St. James Hotel is a very high quality 60 room restored hotel in downtown Red Wing. They have three sizes of rooms and their rates are: 1 or 2 persons $75.95 1 or 2 persons $95.00 1 or 2 persons in a large room with 1 or 2 ..._,Queen sized beds.. ~..; " ",""~,'~~".".'.,o:..",~,,,,_.,-.,'-,.-._~...~ ,,'--,.,_.. "0' .,.....,__....;O--":..,-~.-'.._~..,::'-.- ..They:have.8 15%discoL;Jnt.,for "._--,-~..~....._, .'"---~..-_.,-"- pr()b~t?-,y!(j~~tJ~E:i3ediWi6g.'.EQ#eBj_.Gorpora~~ : ~""-.- .-:.. '"'~._-.- The Quiet House Best Western in a new hotel on tehedge of Red Wing, near the Red Wing Pottery. Their rates \are: Weekdays: -- Single $67 Double :-.;$IZ. Weekends: Single $77 Double $87 They indicated their preferred corporate rate is $44 single on weekdays only. Restaurants There are a number of restaurants in Stillwater. The best known restaurants are in the Lowell Inn which has the Matterhorn Room, the Garden Court which is open on Friday and Saturday nights, as the smoking seating for the George Washington Room, which serves a full menu. The Matterhorn Room features a one menu dinner - The Beef Fondue complete with wine. The prices for lunch and dinner are very expensive at the Lowell Inn. There are a number of other restaurants in Stillwater: Brines Cat Ballou Clydes - in Bayport Dock Cafe Freight House Mad Capper Saloon Meisters Bar and Grill Savories St. Croix Club Trumps Bar and Grill Victorio's and many others including the chains like Perkins, Pizza Hut, Estebans, Dominos Pizza, Country Kitchen, etc. - 14- e e e Some of these restaurants serve breakfast - most lunch and dinner only. The menus are similar with sandwich, burgers, steaks, pasta, seafood and fowl. Prices generally run from $4 to $10 for lunch and dinner with the Dock Cafe's dinner menu having items priced from $11.95 to $17.95. They carry shrimp, salmon, steaks, etc. on their dinner menu. The restaurants all report being very busy in the summer and .- ..... '," ,. -'-....- ... '-.'0'_'0'_'___--- ...... full, "slbwing-dowIiIn]h~._~in!~t:~~:~:tQickjng . ---"... '-'-, ....... ..'" .. ... ... '-'-~'-:::-'--"-----~'-""-"""--' -~-~- --~':'~~Z:~-,~:_~_.~~.~:~,::::-;-::~~~,:.. wintE?r!l}~irweekend 'busiQess 'is,good and -~-.,,:":~~:.:.~;..:.~:~__.:_,._ :,.- ~_, - 'm _, _C"'_ ,~___.~__,.._....;~:::_--==...::~..." - - ..- '," ,.'- ,- - . .... from~k56~:6u~ih~s;a~cEre~id~~t~~j~[:Jn CONCLUSIONS AND RECOMMENDATIONS Downtown Stillwater is an excellent location for a hotel operation. The property should be profitable without depending on Anderson Windows business. however, with Anderson Windows business, it should do extremely well. We have concluded an gO-unit Country Suites type hotel should experience an occupancy of 70% to 75% after the first year and should do a minimum of 65% during the first year if aggressively marketed. We project the motel would have an average daily rate of over $69 the first year increasing as the occupancy increases to $72. We recommend that the hotel have 30 parlor or two room suites, 30 suites having two double or queen sized beds and 30 special suites of which 12 would have king sized beds. The living room or "parlor area" of the two room suites would be furnished with a sofa sleeper. We recommend there be a minimum of two deluxe honeymoon or executive suites with a double sized whirlpool, king sized bed and elaborate decor. We recommend there be eight two room or parlor suites with one king sized bed and a double sized whirlpool. - 16 - e -"",..,,-'A ._-~.Y e This combination of rooms would give the flexibility to do corporate and seminar type business housing two persons to a suite, to accommodate and bus tours and to enjoy a good family and couple get-a- way business. The whirlpool suites would be sold as special suites and on occasion used as upgrades for. the corporate business. These suites would be extremely popular for couples on weekends. ~" .' . -----~-~_:=~";:::.:~::'"~ ,_. ,"-,- -, " ~,__. _..._... _.. ""_.,,.._.__ _ ___,__..._.___" ~ __-" . ;___"', ,._.._.... ;:;'_;_-:=-'.,~:::,c"":,::-,=~_:....:....~:._,.:"..,.,,..":'_'_ --~~~~t~~~~ie~$-:~8~Uld.liiel1ornished 'W1t.~~i~~~~~~_~~~~i~~~~~~~i;~~;~~~~~~~~.' - oVeh;""-efng_efa1~Faflc!:sbfa sleep~ri~,Jhe two 'ropm;S,uite~.~qAA~i~C~Y.it~~:::;:::';::.:~'0~:""" .., ,..,- - ;;?:c;";;~:;~:~_= ,...".-~::.:'~_-~~~T~T"G~=: ." ..,.-.,~-2:~-:-:"--:?;.2-~c~;:f~~~~fi~~~.:;~' . - should have two telephones ,and twotelevision'~~l~"Wi!t)J~m9tf;;PRPJr9fs~,_~~_~~;iz~:- ,-~. ---- --~- - ~ --_.- ,~ " ..... _.,'e: ,._...;,~.,_...".<..,~"._., --- ---.-.----..---- We would also recommend a separate coffee maker in each suite. , . The tables in the rooms should double as a garne:.t?ble.and '," ,- -, - .. .._,.... -. - a desk for the commercial traveler so they should be large enough to do paper work on and should be well lighted. There should be additional phone lines run to each room with jack installed to accommodate the use of a portable fax machine or computer. It would be nice to have a small meeting - communications room off the lobby so a guest could have a conference call, send a fax, run r,c,,=-=====,-~,-~~=-~c:~copiesf€tc-. '.SGtt=of;afFoff~.~_y~~!r.~~..~~e9ff!~~tC?[~~~~~fli~QPe-:-Qf '~-;-- .- . -- ----~~--------'- ---------- '.~:~~~~~-~:~~~~~-~~~~-~~~~~ the corporate traveler. '-"'--,,-- We recommend a restaurant and bar be created that will seat e approximately 80 to 100 persons. There should be at least two conference- board meeting rooms that would accommodate up to 24 persons each. There should be banquet facilities to accommodate approximately 200 persons. This space could be divided into 2 rooms by the use of acoustically treated sound doors. We recommend the restaurant be leased to a qualified operator. We project this restaurant operation would do a gross food and beverage volume of $1.4 to $1.6 million and should pay rent based on a minimum or a percent of gross whichever is greater. Although this is a negotiable figure, the restaurant should pay 7 to 8% of gross revenues - net, net, net, as rent i.e. 7% of $1,500,00 or $105,000 which would be added to the cash flow available for debt service generated by the hotel operation. With the amount of boutiques. gift shops. etc. in downtown Stillwater we feel that any extra space available on the street level of the hotel could be rented as retail space. --~- - 18 - e BACK UP CALCULATIONS 90 x 365 = 32,850 available rooms x 65% = 21,352 occupied rooms Tourism: 42% of 21,352 occupied rooms = 8,968 @ $80 ADR = 762,280 90 rooms x 90% (May 16-0ctober 1) = 81 rooms x 132 days = 11,097 occupied rooms ... '.. -.---"'-.'--' 44fi___Sf~1~~f~~~Pi~sI:[~S91~::~~,..~68 @ $5g~9g~~~~li~Ei~~~~~:z Business:"~" ._ _", _, .,-:,.;_ . -,..,---,--~'-" C' 34 per nightx-S nightsper week ~= 170 x 52 weeks'f: 8,840 .... 200 per week x 44 weeks = 8,840 Meetinas & Seminars: 15% x 21,352 occupied rooms = 3,202 @ $60 = 192,120 20 per night x 3 nights per week x 52 weeks = 3,120 Special Events: 2% x 21,352 occupied rooms = 437 @ $80 = _.' '0. "..~. ..".- 34.000 Total occupied rooms 21,563 = Total Room Revenue $1,490,608 I Average Daily Rate = $69.13 ~;~-,'._r~.~;;;.;t---==:.-.::;;;;=~~~-=-' __ -'-==~~"C;::~'.,.:. .~..-s-~'::~~:~~~~:;~';'.'..:~"~~:;:-.;.~:~~~;;~:,::~~:2:~~~~.:'-~::-:- r~ e 05-!ug-93 STILLW!TIR HOTIL PAiTIEiSHIP SCBlDULI B lPPLITOl, WISCOHSIB PiOfOR!! STATKIIT or OPEi!TIORS ARD CASH rLOX - 90 UIITS PRIPARED AUGUST 4. 1993 Occupancy SOX 55% 60% 65% 70% 75% Annual Available iools 32850 32850 32850 32850 32850 32850 Annual Occupied Rools 16(25 18068 19710 21353 22995 24638 Average Daily Rate 71. 58 71. 58 71. 58 71. 58 71.58 71. 58 1001 Revenue 1175702 1293272 1410842 1528412 1645982 1763552 Telephone 20530 22585 24637 26690 . 28742 30296 !eeting Rool Incole 30000 30000 30000 30000 30000 . 30000 Recovery of Restaurant ieal Estate Tales 10000 10000 10000 10000 10000 10000 Other Incole 6000 6000 6000 6000 6000 6000 ---------------------------------------------.----------- Total Revenue 1242232 1361857 1481479 1601102 1720724 1839848 OPERATING IIPEISIS Payroll 252462 259445 266423 273406 280384 287368 Payroll Tues 27771 28539 29307 30075 30842 31610 Cable TV 6000 6000 - 6000 6000 6000 6000 Travel Agent COllissions 3600 3600 3600 3600 3600 3600 Credit Cards 22360 24513 26667 28820 30973 33117 Franchise Fees 52907 58197 63488 68779 74069 79360 Kanagelent Fees 35271 38798 42325 45852 49379 52907 Incentive !anagelent fee 0 0 0 12502 25205 38139 Utili ties 49689 544H 59259 64044 68829 73594 Insurance - Building and Liability 28000 28000 28000 28000 28000 28000 Insurance - Health 10000 10000 10000 10000 10000 10000 Insurance - Worklens COlpensation 8836 9081 9325 9569 9813 10058 Repairs and Maintenance 18633 20428 22222 24017 25811 27598 Maintenance Contracts 9600 9600 9600 9600 9600 9600 Pest Ruonl 720 720 720 720 720 720 Postage 1650 1650 1650 1650 1650 1650 Plant Lease 1500 1500 1500 1500 1500 1500 Supplies 31056 34046 37037 40028 43018 45996 Pool Sa! t 1200 1200 1200 1200 1200 1200 Telepbone 25000 25000 25000 25000 25000 25000 Unifons 2400 2400 2400 2400 2400 2400 Pager 720 720 720 720 720 720 Travel and Intertainlent 3000 3000 3000 3000 4000 4000 Real Estate Tales 160000 160000 160000 160000 160000 160000 !isce llaneous 1200 1200 1200 1200 1200 1200 &dverti sing 47028 51731 56434 61136 65839 70542 e Annual Audit 7200 7200 7200 7200 7200 7200 lefuse He.oval 4800 4800 4800 4800 4800 4800 --'--_._-~ Licenses 600 600 600 600 600 u_ 600 .~--'-"..;...~--,. Linen Replacelent 7054 7760 8465 9170 9876 10581 '- - - - - - - - - - .. - -- --- - -- - - -- ---.. -.. - ----- --'.... '... .-_'_'_.. _'~': .;;;:.,-;a';,;,.;.__...liII'h";",'''':;''- .'~~.__._-~.: "~_7-~ Total Operating Expenses 820258 854202 888141 934588 982229 1029060 r'~IC"~ I'H'" t, 11 ..'~~' ,.t,., '. '~,.,'~.. (" .,..,....", ., 1 ; I . j ~ I, 1 I" j, (;.., I E' I~; If, ~ t H1'1'1"I' ~,~I~~ ~ ,I .r ~ 1:1 ! l~ , 1:1 t ,', '1 ~11:l e 05.!1I-93 STILLIATli HOTIL P!2TIEiSHIP lPPLITOI, IIsCOISII PiOfOi!! STATKIIT or OPliATIOls AID CASH rLOX - 90 URITS PilPlilD AUGUST 4. 1993 SCHIDULE B Oecupucy 50% 55% 60% 65% 70% 75% let feltal Incole - Restaurant 75000 75000 75000 75000 75000 75000 --------------------------------------------------------- -~:!Itere!t IIpense'~".'"" .... .'.~~"6~'~'" ..... . - - .26.7frr~>".16JJ1L267716~5f2677'lf;'~6111I~~?2677iS~~:;i~~r.~~:f:5' .~~:c"-,".;cciubordinated Land ~ease"-..,'o3C ....;:"'".c-~c:-..~~~2~', _...-_511-50::.,51150 ""057150"-';'.'57150'-:'-- S71SO ~:c..:.:---57150.::.5:::.;::-,:-.:p-" ...,' ~~~~~::~:: of L... -~i;i-,~"'':t~~ji;f~i;j;;;~~~:m~~~[ .-1,8;::~~:~~Ii~i;1~lt~~f:;;,- bo~rtiution of Preopening l1pense ,;'10000 :., 100.00.: ~10000;~:'07,;o.10iD.[:o,...::~JlO.OOT::;-c:-JOOOO'S:;:;,..;:;;,~;;,,-,;::;':'~:.:;;. !lOrti.atioL of Orgatiution Costs 4000 tOOO 4000 4000 4000 4000" .--.-- ~ 0 - .~. o. , ,.:",;,_-,."".~,+,,,.o...::-'-. -.- ...-.-.--." 741514813495 885788 ;::=~ ..-=J~1-~~~ratingJ~Q.!e-_-:-~"'"o:~~C.2--=~~L:==-~cc. -- -~- - ., ---" ..- ~~-~-_:~~;~:=:~~"=;:~';:::;-:::.~~~::::;=~:::~~', . " ~-;;:~:~' '".=::;:'- ~.:~.-,:~~:;;::~~;;~ let Gain (Loss} -29997:,.: ,..55683-; 1 41361~~_2145U'-:;.+86S24 -;, ..358817 .-_,_.. L.,;'; ;;=,"; ." ," ,-'- :ess General Partners Share - 10% . . . 0.----; O. "H 0 -'1l027~~:28652" 3S882 --------------------------------------------------------- ht Gain (Lossi to Lilited Partners -29997- 55683~ Hl3,67' "," ,203H~s ;,257871 322935 .. ~-' ~et Gain (Lossl frol !bove -29997 55683 141367 214543 286524 358817 Add: ~!preciation 183105 183105 183105 183105 183105 183105 bortization of Loal! Costs 5000 5000 5000 5000 5000 5000 bor:ization of Preo;ening Expense 10000 10000 10000 10000 10000 10000 !Ionization of Orgatization Costs 4000 4000 4000 4000 4000 4000 .!SS: :rit:iple Reduction 56284 56284 562H 56284 56284 56284 :est!V! for Replace.:n t 23514 25865 28217 30568 32920 35271 !et Cash HOll 92310 175639 258911 329796 399425 469367 :es! General Partner: Share 0 0 0 17796 39942 46937 --------------------------------------------------------- :ilited Partner Iqui:r -',,,F"9~HP.:..~,il.72_6~,92p~?!!n'_' 312000 ....359(82 . 422430. .~. .".,~!~,"'~;!f~~.:'~'-'.;;~~"-,.::;.~:-~"~~;;~;:::;;;;~~.:.~~.~Z::;:~:.::~~~:~:";~:::.;~~~'n- . "i;:;=: . .... . 2600000 2600000-:-2600000",.2600000';2600000.;:;-'2600000- :':C'~~ifi,,;;.;:j;~-,'7::'-: ,:~n :o.=~.;,.~~~3~!~~~:Partn.~r~:s~~J~~., :~:::~:~, .~~:~. . - '015 05-Aug-53 e STILLWATIR HOTIL PAiTBEisHIP SCBlDULI C lPPLITOI. XISCOISII TII YIAI PROfOi!A STAT!IIT Of OPliATIOBS AID CASH rLON - 90 DilTS 75% OCCUPUCY PilPAitD AUGUST 4, 1993 Year 1 2 3 4 5 6 7 8 9 10 1001 Revenue 1763552 1798823 1834800 1871495 1908925 1947104 1986046 2025767 2066282 2107608 Telephone 30296 30902 31520 32150 32793 33449 34118 34801 35497 36207 !eeting Rool Incole 30000 30600 31212 31836 32473 33122 33785 34461 35150 35853 Recovery of Rest. R.I. Tal 10000 10200 10404 10612 10824 11041 11262 11487 11717 11951 Other Incole 6000 6120 6242 6367 6495 6624 6757 6892 7030 7171 -------------------------------------------------------------------------------------------- Total ievenue 1839848 1876645 1914178 1952461 1991511 2031341 2071968 2113407 2155675-2198789 "-=, OPIRATIIG EIPIISIS Parroll 287368 287943 288519 289096 289674 290253 2908H 291415 291998 .:292582 Payroll Tues 31610 31674 31737 31801 31864 31928 31992 32056 32120-,,, 32184cc::-;~ Cable TV 6000 6012 6024 6036 6048 6060 6072 6085 6097 ----.. . 6109 Tra,el Agent COllissions 3600 3607 3614 3622 3629 3636 3643 3651 3658 3665 Credi t Cards 33117 33780 34455 35114 35847 36564 37295 38041 38802 39578 franchise fees 19360 80947 91740 93575 104991 107091 109233 111417 113646 115918 !anagelent fees - filed 52907 53965 55044 56145 57268 58413 59581 60773 61988 63228 Incentive Banagelent fee 38139 41576 43707 47259 49452 53122 56868 60690 64591 68571 Utilities 73594 75066 76567 78098 79660 81254 82879 84536 86227 87952 Insurance - Building and Liability 28000 28560 29131 29714 30308 30914 31533 32163 32806 33463 Insurance - Health 10000 10200 10404 10612 10824 11041 11262 11487 11717 11951 Insurance - Worklens COlpensation 10058 10259 10U4 10674 10887 11105 11327 11553 11784 12020 Repairs and Baintenance 27598 28150 28713 29287 29873 30470 31080 31701 32335 32982 Baintenance Contracts 9600 9792 9988 10188 10391 10599 10811 11 027 11248 11473 Pest ieloval 720 734 749 764 779 195 811 827 844 860 Postage 1650 1683 1717 1751 1786 1822 1858 1895 1933 1972 Plant Lease 1500 1530 1561 1592 1624 1656 1689 1723 1757 1793 Supplies 45996 46916 47854 48812 49788 50784 51799 52835 53892 54970 Pool Salt 1200 1224 1248 1273 1299 1325 1351 1378 1406 H34 Telephone 25000 25500 26010 26530 27061 27602 28154 28717 29291 29877 Unifons 2400 2148 2497 2547 2598 2650 2703 2757 2812 2868 Pager 720 734 749 764 779 795 811 827 844 860 Travel and Intertainlent 4000 4080 4162 4245 4330 4416 4505 4595 4687 4780 Real Estate Tales 160000 163200 166464 169793 173189 17 6653 180186 183790 187466 191215 Biscellaneous 1200 1224 1248 1273 1299 1325 1351 1378 1406 1434 Advertising 70542 71953 73392 74860 76357 77884 79442 81031 82651 84304 Annual Audit 1200 7344 7491 7641 1794 1949 8108 8271 8436 8605 Refuse Reloval 4800 4896 4994 5094 5196 5300 5406 5514 5624 . .. 5736 . Licenses 600 612 624 637 649 662 676 689 103 "':717:' Linen Replacelent 10581 10793 11009 11229 11454 11683 11916 12155 12398 12646 Total Operating Elpenses -i~~;~6~--i~~6~oi--i~7i877--io;o~5~--iii66;7--ii;575~--ii55i75--ii7~;78--ii;5i67::i~~~~}~ I Cash Available for Debt Service - Hotel 810788 830244 842301 862408 87J813 895590 916792 . 938429 ' c960509:...~~.9830(0 .- - -,,~ .': c. ..:",:,;-,,"..-:- -.-.-.-..".......--:c:-~:.:....,' let Rental Incole - Restaurant 75000 75000 75000 75000 75000 75000 75000 "c''''15000 750bo"\';;'''t5OUO ------------------------------------------------------------------------------------------ as-be-93 e STILLXATIR HOTIL P!iTBliSHIP APPblTOI. WIsCOlsII TII TIAi PRorOiKA STATKIBT 0' OPIRATIOIS ARD CASH 'LON - 90 UIITS 751 OCClJP UCT PiIPAiXD AUGUST 4. 1993 SCHlDOLI C leu 1 2 3 4 5 6 7 8 9 10 let Operating Incole 885788 9052(( 917301 937408 949813 970590 991792 1013(29 1035509 10580(0 Interest IIpense 261716 262(36 256661 2503(4 2(3435 235877 227610 218568 208678 197860 Subordinated Land i.ease 57150 57150,.57150 57150 57150 57150 57150 57150 57150 57150 Depreciation " '",' .~_~,._J83105 J8310L_.J8310t~_183105 183105 ,_. 1~3105 J~lg5-: '161676 .161676. 161676 ~~~.~~~~~l!'::t~.za t~on of'. Loa '~~~~~s:~~=.:.3E.:,~:~~~.~500Qi:=~'c~~'~~:~.!!~i-: : - 5D006~ ~~~ -S!!~~ii~~~O~~~~ ~~;;~.~~) Q~~~~O~~~;., "~::,,:~. ;'ss~,;;;~h~tltHtl on of Pr~pelUJlg"lIpeJl$A ">L., .. lOOOO~",,=100002~lUO~., ul ODOO,. .=-',;!ttQa.D...~ n .... .", .'., it...",,~r-"-"&~~i~!''''~~!''-Y''''< ~ II " ::.::~:.:===A~~ti za t i on of Or g an iuti on-:,C.o.s ts :;.,:.__::.:~:. (OOO~:"":~ 9 ~9~:::::~]o.oq~~ ; ;;;: 4D 0 0,':.~~P,90,~~~.;,.:....~0,::~;j-:~;".~l=;~,,:':,:~:J~-~,"_~::.~, '0' , - ~. '--' C::___~'~.~'-__",";,-":~'-:;'::;'7_ __ _,_ _ _.-_. ~ - - 2-':.:::.~f-:'::;:; - '"..>-' '_ ~-~- ~ "'!:."7 ,:0' __~""'~"-.~ __ ,. _' _ _ -~7:_C7,__~ - -,~ - ---- '..'- '"., --~-. - -.-.. --=-:-:-:~::.=- ~~ ":-- . ~;';~. - - ~ ~~-':;:::'~-;;;~~ ~i::?<--~~';:';;.~.;~.~:;~-~~'~-';::~-:~i~~~_;'::'''~::_::~~:~~-\.::":::::~- ~~~;~:;~:~~;~~~~~;:~_:=-?~.~:-::~~. ~~,~.;=:~I~tqain (Loss} _ __~-= _.-- .-- ',~ :'~_-.""358811 '-3835Sl ~:t~13!5, \ 427809H712E~~t9n58~239Z1;~31~~}~;:t~,q~0-9~;':2:6U354c', , Less General Partners Share 35882'38355',,"40139" ,. 42181::44112 " .9U6'.S239h~,,;:57604,~'60800~, ',64135 ------------------------------------------------------------------------------------------ Ret Gain I Loss I to i.ili ted Partners 322935 345197 361247 385028 402411 445013 471535 .518(32 5(7204577219 letGai~ fLoss) fret Ab~ve~ -, '-.-- 358817 383553 "401385 (27809 447123'" "(9~(58' '523921"" '576035 :60800S':6413'54 , ".,:..:.~-",- 'i:"'i.';- :..~ ' ,,"', ~ Ada: Deprecia tion 183105 183105 183105 183105 183105 183105 183105 ' 161676 -161676 161676 Alortization of Loa~ Costs 5000 5000 5000 5000 5000 0 0 0 0 0 Alortiza:iou of Fre~pening EIpense 10000 10000 10000 10000 10000 0 0 0 0 0 AIGrtiza~ion of Organization :osts 4000 4000 4000 4000 4000 0 0 0 0 0 Less: Pritciple Reductict 5628( 61564 67339 73656 80565 88123 96390 105432 115322 126140 ieserve for Replacelent 35271 35976 36696 31430 38179 38942 39721 40515 41326 42152 ie. Cash BOll 469367 488117 499455 518828 530485 550498 570922'-591764 ' ,613033 - '634738 Less General Partn~:sShare -- - 46937 48812 ' 49946 51883 53048 55050 57092-"' 59176 -61303 63474 ------------------------------------------------------------------------------------------ Lil:ted Partners s~are 422430 439306 H9510 466945 477(36 495449 513829 532588 551730 571264 Lil~ted Partner iqcity 2600000 2600000 2600000 2600000 2600000 2600000 2600000 2600000 2600000 2600000 Casn on C!sh % iett!n 16.2l 16.9% 17 .3% 18.n 18.4% 19.1% 19.8% 20.5% 21.2% 22.0l 05-Aug-93 - ) STILLWATIR HOTIL PAiTllBSHIP APPLITOI, IISCOISIB TII TIAR SUK!ART Of ISTI!ATID PRITAI BlllfITS - 75% OCCUPABCT lSSU!IIG & LI!ITID PARTRIR IIYIST!IXr Of 150,000 PilPARID AUGUST 4, 1993 ISTIUTlD IsTIUnD GAIl CASH TUi (LOSS) rLOX 1 6200 8123 2 6628 8H8 3 6936 86H 4 7393 8979 5 7726 9181 6 85H 9527 n __."._ _',___.___" 7 9053 9881 8 9954 10242 9 10506 10610 ,~"_ ".___._..'~d_ "._._.... 10 11083 10985 --------- --------- 84023 94621 1015 el '015 IHuC-93 -- SrILLXATlR Hom. PUTKlRsHIP &PPLITOI. WI5COISIB TII TIAl PROfOi!! STATKIIT Of OPliATIOIS ARD CASH fLOX - 90 DilTS m occup UCy Pllum AUGOsT 4. 1993 SCBlDULI D 1001 Rnenue Telephole Seetinc iool In:ole iecoveO' of ies... R.I. Tal O~her bcole 1 1528412 26690 30000 10000 6000 2 1558980 27224 30600 10200 6120 3 4 1621963 28324 31836 10612 6367 5 6 7 8 9 10 Tear 1590160 27768 31212 10404 6242 1654402 28890 32473 10824 6495 1687490 29468 33122 11041 -662~ 1721240 1755665 30057 30658 33785 34461 11262 11487 ." 6757;;,,;,,6892~: 1790778 1826594 31272 31897 35150 35853 11717 11951 ; 7030,,,:' 7171 ':~.:~;'r~;(ievenue !;oc"',.,."'"'...,~~:--.-~ __~ ,'''_' _,', ~__"'"'.__.. --_____~_.__c_.-.-- ..~~~:"~~~~E:~~jpji~!~~~~~~--i733;;~.~ij!~I~llj~t~iiit.r[~J~6-~~i6"?}:-- .. - -. ,-,' ". .. - .- ,-_... --.-. ,;--", - .. ~=OPlBA T I KG IIPiiS i5''-:..-o:::::,::,::~:--:. ":.';:::~;,'::c;:::t;;; :::.---~.--:'~~;:;;;';---- ";~,,,-,,:;-"';::;::;;~:;,,~ ~~!~&:}k.m~~iiif~i!{t~~i~li!!~! --ij!!!!~~!~i!~~fft~~~.~: Travel Agent Couissions 3600 3607 3614" .3622 co 3629 3636 3643' 3651 3658 3665 Credit Cards 28820 29396 29984 30584 31196 31819 32456 33105 33761. 34442 franchise fees 68779 70154 79508 81098 90992 75937..77456. 79005.., .80585.,.82191- ~.: Suag e Ie n t 1 ee s .,:.~)~':~,;~"45852:-'46769::; 4 7105" 2 >i;~4~65gc . 49632~-:5.0625;S~tS 1631i;g-oJiJ267 &n:;~t-Snu:~'~;S(7 9 8}.:.f. '. :._'~~~-.~_::~- IneentiT e Bana(!I!Dt r ee-_--=~.~~~~~~~~;i12-50-2-.:::~~~,,;.~_15385-_-:,~.::-:',~i7l3:t ~.-~~-7~:20113:;:, ~ :'~lS11~::--~:~i7 52'0 ~- ~-=-~;:30' 1 f~~f3396'1 ~317Jl,9r~:~~;-4 0682 ,::::~: - -~- Dtiliti!s 64044 65325 66631 67964 69323 70710 72124 .,. 73567 75038. 76539 . hsurance - Building and Liability -28000 28560 29131?= 297L{_~:30308::: ;.J091L.;;:31533c-\l~:.-32163~5..;32806~;E,,"33463. hsurance . Health 10000 10200 10404' 10612 10824 11041 11262;"'11487 11717 11951 Insurance. WorIlens COlpensation 9569 9761 9956. 10155 10358 10565 10776 ,10992 11212 11436 ie?airs and !a:~t!nance 24017 24497 24987 25487 25996 26516 27047 27587 28139 28702 !aintenance Co~t!acts 9600 9792 9988 10188 10391 10599 10811 11027 11248 11473 fest ieloval 720 734 . 749 764 779 795 811 827 844 860 Postage 1650 1683 1717 1751 1786 1822 1858 1895 1933 1972 Plant Lease 1500 1530 1561 1592 1624 1656 1689 1723 1757' 1793 S~pplie! 40028 40828 41645 42478 43327 44194 45078 45979 46899 47837 Pool Salt 1200 1224 1248 1273 1299 1325 1351 1378 1406 1434 Ttlepho~e 25000 25500 26010 26530 27061 27602 28154,",. 28717 29291:':' 29877'., hifon! 2400 2448 2491 . - 2547 2598 2650 -2703~,-, 275k' ~ 2812'" 2868 Pager 720 734 749 764 779 795 811 827 844 860 Travel ond inte:tainlent 3000 3060 3121 3184 3247 3312 3378 3446 3515 3585 it!l i!:ate Tal:; 160000 163200 166464 169793 173189 176653 180186 183790 187466 191215 !iscellaneoQs 1200 1224 1248 1273 1299 1325 1351 1378 1406 1434 , UTertisillg61136 62359 63606 64879 66176 67500 68850 70227 71631 73064 I . L Annal Audlt 7200 7344 7491 7641 7794 7949 8108 8271 8436 8605 i --lmn hplaCea!;.~ '.. ,c-c.-::::.c:==9170 " '9354-~9S1t:"O,'913t:. 9926.,. 10125 ..3f032T".10534. '10745' 10960 ~i,u<~-~asLjn ilable foi~t T~e"le~~~~6W".u,~1;iJiii~j}:;:jii! - ~z 05-laC-93 e STILLXATli HOTIL PAiTllRsBIP SCBlDULI D APPLITOB. WISCOISII TII tlAR PiOrOR!A STATKIIT or OPliATIOIS AID CASH fLOX - 90 DIlTS 651 OCCOPUCY PRIP1RID AUGUST 4, 1993 Year 1 2 3 4 5 6 7 8 9 10 let Operating Incole 7U5H 757847 767759 78(635 794830 826611 8U695 863150 88198( 90120( Interest Ixpense 267716 26206 256661 2503U 2(3435 235877 227610 218568 208678 197860 Subordina ted Land Lease 57150 57150 57150 57150 57150 57150 57150 57150 57150 57150 Depreciation 183105 183105 183105 183105 183105 183105 183105u 161676 161676 161676 Alortization of Loa~ Costs 5000 5000 5000 5000 5000 0 -0 . 0 0 0 . __._.__.-.C......;...--'- Alortization of Preopening Expense 10000 10000 10000 10000 10000 0 0 0 0 Alortization of Organization Costs 4000 4000 4000 4000 4000 0 0 0 0 0 let GaiD (Loss} 2145(3 236156 251H3 275036 292140 350479 376830 425756 45U80 4H518 Less General Partne~s Share - 10% 11 027 23616 25184 27504 29214 35048 37683 42576 45H8 48452 ------------------------------------------------------------------------------------------ let Gain (Loss) to ~ilited Partners 203516 212540 226658 247533 262926 315431 339147 383181 409032 436066 Bet Gain fLoss I Froa Above 214543 236156 251843 275036 292140 350479 376830 425756 45U80 484518 Add: Depreciation 183105 183105 183105 183105 183105 183105 183105 161616 161676 161676 Alortization of Loa! Costs 5000 5000 5000 5000 5000 0 0 0 0 0 Alortization of Pre~pening Expense 10000 10000 10000 10000 10000 0 0 0 0 0 Alortization of Organization Costs 4000 4000 4000 (000 4000 0 0 0 0 0 Less: PriDciple Reductiot 5628( 6156( 67339 73656 80565 88123 96390 105432 115322 126140 ieserye for Replacuent 30568 31180 31803 32(39 33088 33750 34425 35113 35816 36532 let Cash HOIl 329796 3(5517 354805 371046 380592 411711 429120 H6887 465018 483522 Less General Partne:s Share 17796 3(552 35481 37105 38059 41171 42912 44689 46502 48352 ------------------------------------------------------------------------------------------ Li.ited Partners Share 312000 310966 319325 333942 3(2533 370540 386208 402198 418516 05170 Lilited Partner Iqc:ty 2600000 2600000 2600000 2600000 2600000 2600000 2600000 2600000 2600000 2600000 Cash on Cash % Return 12.0% 12.0% 12.3% 12.8% 13.2% H.3% 14.9% 15.5% 16.1% 16.7% ---J . -- .;.......__:.,,_.:\......,,-,~...._''''''.--;,-..:;;.;~.,;;,.;;~_.:--........;. .--":'~~~'. Os-he-93 e\ STILLI1TII HOTIL PAiTlliSHIP APPLITOI, NISCOISIJ TII TIAI SO!K!iT Of IsTI!!TID PilTAI AID !FIII TAl BlllfITs - 65% OCCUPAICY !SSU!IIG A LIBITID PAiTlli IIYIST!IIT Of $50,000 PilPAilD AUGUST 4. 1993 ISTIUTlD GAil TIlR (LOSS) ISTIK! nD CASH nON 1 3908 6000 -c., .~__2___J08L_~______. 5980 . '" '-,..""...'35-_u-~ '6141 ...~~~~~---ki~~~~~,,;=;,;c:;~;~~=~_:2J~l.1? 5.,.~_5HL________. .,' . 6587 6~,'i056.,.:""t':.--.::c_::,'~,.:."""' ~.".. .' :;,--.c-~ 7125 ~ .g~~;;~,~~~Z'-~~~f~2~I~,Y-:.,,;;=:i~~~i~~ 9 7853 . c." . 8048 10 8372 8368 1015 ~,-_v. --"~;~.~ -.~.. -.',.,-_. ,--- - ---'-,,-~ i015 IHuC-93 e STlLLIUIR HOTlL PARTHlRSRIP SCBlDULI I lPPLITOI. VIsCOBSII to TUR PR010RU suunT or OPlUnOKs AID CASH 'LOX - 90 UIITS m OCCUPUCT mUiln AUGUST t. 1993 Tear 1 2 3 4 5 6 7 8 9 10 8001 Revenae 1293272 1319137 1345520 1372431 1399879 1427877 1456434 1485563 1515274 1545580 Telephone 22585 23037 23497 23967 24447 24936 25434 25943 26462 26991 Seeting RooI Incoae 30000 30600 31212 31836 32473 33122 33785 34461 35150 35853 Recovery of Best. i.l. Tax 10000 10200 10404 10612 10824 11041 11262 11487 11717 11951 Oner lncOle 6000 6120 6242 6367 6495 6624 6757 6892 7030 7171 ------------------------------------------------------------------------------------------ ,~---,..------,,..,..-_._" Total Rennae 1361857 1389094 1416876 1445214 1474118 1503600 1533672 1564346 1595633 1627545 _', -",-__,'_'-C'-' :..'~_ .~- OP18!TIiS lIPIMSIS Payroll 259445 259964 260484 261005 261527 262050 262574 263099 263625 264153 PaTroll Taxes 28539 28596 28653 28711 28768 28825 28883 28941 28999 29057 Cable TY 6000 6012 6024 6036 60U 6060 6072 6085 6097 6109 Tralel Agent COllissions 3600 3607 3614 3622 3629 3636 3643 3651 3658 3665 Credi t Cards 24513 25004 25504 26014 26534 27065 27606 28158 28721 29296 fmchise lees 58197 59361 67276 68622 76993 78533 80104 81706 83340 85007 !mguent lees 38798 39574 40366 41173 41996 42836 43693 44567 45458 46367 Incentife !alligelent fee 0 0 0 0 0 0 0 0 2146 4793 Utiii ties 54474 55564 56675 57809 58965 60144 61347 62574 63825 65102 Insurance - Build~g and Liability 28000 28560 29131 29714 30308 30914 31533 32163 32806 33463 IlSurance - &ealt~ 10000 10200 10404 10612 10824 11041 11262 11487 11717 11951 Insurance - Voril~ns COlpensation 9081 9262 9447 9636 9829 10026 10226 10431 10639 10852 ReFairs and !aintenance 20428 20836 28338 28904 36853 37590 38342 39109 39891 40689 !aintenance Contr::ts 9600 9792 9988 10188 10391 10599 10811 11 027 11248 11473 Pm Reloval 720 734 149 764 779 795 811 827 844 860 Postage 1650 1683 1717 1751 1786 1822 1858 1895 1933 1972 Plant Lease 1500 1530 1561 1592 1624 1656 1689 1723 1757 1793 SuP?lies 34046 34727 35422 36130 36853 37590 38342 39109 39891 40689 Pool Salt 1200 1224 1248 1273 1299 1325 1351 1378 1406 1434 Te!ephone 25000 25500 26010 26530 27061 27602 28154 28717 29291 29877 Unifons 2400 2448 2497 2547 2598 2650 2703 2757 2812 2868 PaiH 720 734 149 764 779 795 811 827 844 860 Trclel and inter:!inlent 3000 3060 3121 3184 3247 3312 3378 3446 3515 3585 Real Istate Taxes 160000 163200 166464 169793 173189 176653 180186 183790 187466 191215 Kiscellaneous 1200 1224 1248 1273 1299 1325 1351 1378 1406 1434 Adlerti sing 51131 52765 53821 54897 55995 57115 58257 59423 60611 61823 Allt'Jal Audit 7200 7344 1491 7641 7794 7949 8108 8271 8436 8605 Refase ieaoval 4800 4896 4994 5094 5196 5300 5406 5514 5624 ....J7J6,~~~. Li~enses 600 612 624 637 649 662 676 689 703 717 Li:en Replacelent 7760 7915 8073 8235 8399 8567 8739 8913 9092 9273 -----.------------------------------------------------------------------------------------ To-.al Operating hpenses 854202 865930 891693 9041 49 931213 944438 957917 971654 987801 ~~04 ~~~~_ Cash Available fo~ Debt SerTice - 80 507655 542904 559162 575755592692 C' .... 523164 525183 5U06( 607831 622.'2L::~~:' ' ;;.;-,...~~.\"":.;:;.::.>.'~:~~>::::: ,_. Ie. Rental lncole - Restaurlllt 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 ------------------------------------------------------------------------------------------ . OS-AuC-93 e STILLXATIR HOTIL PliTllRSHIP lPPLITOR. MIsCOHSII " TII YIAi PiOfOR!A STATKIIT or OPliATIORS AID CASH fLOX - 90 DilTS 55% OCCUPUCY PilPAilD AUGUST 4. 1993 SCBlDULI I Year 1 2 3 4 5 6 7 8 9 10 Ret Operating Incoae 582655 59816( 600183 61606( 61790( 634162 650755 667692 682831 697827 Interest IIpense 267716 262436 256661- 2503(( 2(3(35 235877 227610 218568 208678, 197860 m__O,o__c$llbodlna ted Land .Lease~.d'...,., ..,.,--:~::.~_57150 "... 57150 .,-.,~sn50,__~715.o.,o_c.57150. ,..511~0.o.~-57150.,;".51l50~,--~S715Uc~~."51150 ~~ar:::.f LOi.~~l[f~~~~~~~~f~Jf~~~~. c::i~~~j!~~~~~E" bortization of Preopeninghpense 10000 10000, 10000.. .10000 0 UOOt.=;'~_.".::i-"'=:cccll."', O,~~~'~a~;~.c;O::.,.. , .. ..~, . -';'_..;.:::':":;"".,.:_';:'_";"';;_;"-:;_";";';:~'; __~_'~ _"'.______..~__..........:_.....;. _ .. _ .. ,'0_ .0" .'." -- .. - 0.-,.. .._._ .-....- 76 n3--='oc142Sl?: ,'J 06465 115 21r-Tf8rio'=--:- 18 289~-~~^2i'02;8'f2i.~55327 ~i:-211~1 (1 00 0 0 0 0 0 0 0 T"'~~-In~an (Loss} ~~-'-----'~"5"5D84 Less General Partners Share - 10% 0 -------------------------------~--------------------------------~------------------------- ".~ .':...-.."'~'"'-.,."--~ 76(73.., 8~~nl;,lJO\6J6~o i J15ZHc u...~5n~~trttn2nQ."i,,;~3'029~:_~,45~32t,L281141. ".'. ,>: ,~~~:,"~- ~~:~~;;":~::'-~~~'-"~~:,_~?~r ;','_;,"_'" ::O:~,..':'.~-:::~:~.,;~~)J:;~i~~~-:~:~-~.~:2:':::'-.:~ _ '0-:: .'~ _ '0," Bet Gain (Loss I to Lili ted Partners ,_<<' _55684 Ret Gain (Loss) fro I Above 55684 76(73 8U6L 106'65 Jl521L:,; 158030 182890 _, .230298 ~55321. .2811H Add: Depreciation 183105 183105 183105 183105 183105 183105 183105 161676 161676 161676 Alortization of Loan Costs 5000 5000 5000 5000 5000 0 0 0 0 0 Alortization of Preopening and Franc 10000 10000 10000 10000 10000 0 0 0 0 0 Alortization of Organization Costs 4000 4000 4000 4000 (000 0 0 0 0 0 Less: Principle Reductiot 56284" 61564 67339 73656 80565 88123 96390 105(32 115322 126140 Reserve for ieplacelent 25865 26383 26910 27((9 27998 28558 29129 29711 30305 30912 Bet Cash nOi 175639 190631 192122' 207(66 208757 22HH 240477 .256830 271376 ' 285765 Less General Partners Share 0 0 0 0 0 0 0 0 0 0 ------------------------------------------------------------------------------------------ Lilited Partners Share 175639 190631 192122 207(66 208757 22((54 240(77 256830 271376 285765 Lilited Partner Equity :;.;'c""''-'c:::":,t1asboLCash ..%.i e t urn 2600000 2600000 2600000 2600000 2600000 2600000 2600000 2600000 2600000 2600000 ,...~~~-~...~,}.:-Cf~~~~,~':~!~1l;:~-I:~;.,.!~.~~=;~~~=~~~~::=~~o~:~,~;~~~~~~~;~~:c~-;:,.. "":"....,,,..,,,_.~~~ ~ "._. __'_.~,"",,_,.'u;..~;;;.";...~':':.,-i.i..,...' ',. . 85-AIlI-93 e STILLIATIR HOTIL PARTIIRSHIP lPPLITOl, iISCOISII TII TIll SUK!!RY Of ISTIKATID PilTAI . BlllfITS - 55% OCCUPABCY ASsU!IBG A LI!ITID PAiTRl1 IlilSTKllT Of 150,000 PRIPAilD AUGUST 4, 1993 ISTIUTlD ISTUUID GAIl CASH TUI (LOSS) FLOW 1 1069 3378 2 1468 3666 -- .--_... . . - -- ~ - --..._--~- _.._~ 3 1618 3695 --"--"---'--' ._...- --_~""_,..O"~~,.."'=""::_-'-..... .~O"-,.; -,' -~""'...->'-"","~- --...... 4 20B 3990 "'C'-,',_ '''_-:''-'~;:;-::-,=,,:: .,~ .;-:.~_. -'~''''''-'--'--''--~'-- 5 2212 4014 6 3034 4316 7 3511 t&24 8 4422 4939 9 4902 5219 10 S398 5495 --------- --------- 29679 43335 /015 :__.:0. ; t . ~ I I I , . R. W Kirchner & Associates 4r'~'5~ -~~,~ RAYMOND W. KIRCHNER. SRPA. SRA Senior Real Property Appraiser 1923 South Greeley Street · Stillwater, MN 55082. (612) 439-3900 FAX: (612) 439-8977 July 29, 1993 Mr. Dave Magnuson, City Attorney 324 South Main Street Stillwater, Minnesota 55082 RE: Ground Lease Appraisal Stillwater Hotel Partnership 127 Water Street Stillwater, MN 55082 Dear Mr. Magnusson: In accordance with your request, I have inspected and hereby submit an appraisal report on the above referenced land, legally described as set forth in the text of the appraisal report. The property is the land under the Lumbermen's Exchange Building, adjacent Hooley's Food Market and the parking lot across Myrtle Street. It is a site totaling 52,888 square feet, more or less. It is located on Chestnut and Water Streets. At your request, the appraisal was confined to land value only and does not include the value of building improvements. After careful analysis of the property, I have concluded that as o~ July 23, 1993, the fair market value of the land is: SIX HUNDRED THIRTY FIVE THOUSAND DOLLARS ($635,000) Estimated reasonable annual l~nd lease amount if adjusted every 5 years is $57,150. R. ~ Kirchner & Associates -~ e NOTE: The appraisal represents the estimated value of the land only and does not include the value of the improvements on the land, i.e., buildings, parking lot surfacing and landscaping nor does it consider the effect if any; of the existing land lease between Burlington Northern Railroad Company and Super Value Stores. Further, this appraisal is subject to the Assumptions & Limitations set forth in the report and can not be fully understood without reading that part of the appraisal in its entirety. ; ! . -,"f-.-::~:::-:,::::,::" --- _._-=-:::~:~..:=;;.... .~....-':-. ',' ,-'.,--,'- ". Your. at ten tion~is calI ed .to-:t hea Cc:: omp any il}g.rep'Q.r,t.wh iCl1 ~~~~~~~~.:ri~~-;~~::;r:~,.,~.~~:~~~~~, ~~.~~~~;.~t.~i~~:[~'~;j~;~~~,~~{~,'II~,~t;~~~~~::., .. , .. .r"~,"'_; :,..~_"~r..:.,...".,,._._. _"-,,'.' ..,__....,_ ~.~. ,.-.,' ", '''-'~-- -....- .,,~- -_...---~~-~,~,.,.._-.~~ ~ _ _ .... .... .. _ .. .... ., .~-.~ f.--'.:. -, '. I L I I . I I .,..l~~,~. I I I I I I I Kirchner, SRA/SRPA General License #4000780 t. e e ~4:.q~ ~,~ tJI ~ '5h//...,.k_ ~ j~p~..,. "...It- , 1991, and the l ASSIGNMENT AND ASSUMPTION i ~ THIS ASSIGNMENT, made thi s . ~/) day of ~ between GLACIER PARK COMPANY (Asslgnor), a Delawarevcorporatlon, CITY OF STILLWATER (Assignee). WITNESSETH THAT: WHEREAS, Assignor has sold to Assignee certain premises situated in or near Stillwater, County of Washington, State of Minnesota, legally descri bed on Exh i bit A attached hereto and hereby made a part hereof (Premises); and WHEREAS, Assignor holds the Lessor's interest in that certain lease agreement, Number 211,866 dated September 1, 1973, by and between Glacier Park Company, by itself as successor in interest to Burlington Northern Ra i 1 road Company, as Lessor, and Super Valu, Stores"Jnc "" ,as Jessee,,:'.a_ copy of which is attached hereto as Exhibit.B a.nd hereby made a part hereof (Lease); and "".,,,,i ii "".' . ~...; WHEREAS, the property covered by the lease~':is :iocluded.in the - Premises sold to the Assignee; , . .- . - _*;, NOW, THEREFORE, in consideration of One"'Dollar '(ShOO) 'and other- good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: Assignor does hereby grant, transfer and assign to~Assignee all of its rights as Lessor in the Lease. Assignee hereby accepts this Assignment and assumes the lease and agrees to faithfully abide by, perform, and discharge each and every term, covenant, and condition of the Lease which are to be performed by the Lessor thereunder from the date hereof and to defend and hold Ass ignor harml ess from any 1 awsuits, cl aims, damages, costs and expenses, including actual attorneys' fees arising in connection with the Lease. This Assignment and Assumption shall be binding upon aT!d inure to the benefit of the successors and assigns of the parties hereto. The parties hereto have duly executed this Assignment and Assumption the day and year first above written. ASSIGNOR ASSIGNEE I I , I - ., I C'l1'Y"OF'STIlLWAlER" .. I i .,\ \ .... \ I.'....; . By: pJ~ ~ nt1e~' '.i~::'.~ Title: ! ~ : -' : M~j;cncr ., ,.:!'.... ? ::_._...,L. ,.-..,-,.., --.----;;, Sules & Property Management ; .,.~. '. i. I { e EXHIBIT "A" P a rce 1 1 That portiQn of Lots 1 through 8, Block 18, Original Town of Stillwater, Washington County, Minnesota, all described as follows, to-wit: ~ ~ The E as t e r 1 y 3~,~~:f~e to f.~?_~.<i:-,~tSJ:} ~r8ggh,.::tt~~J;Qi~~{~-l::!~.~~~~~~f:~J~j~~~~';25~T~~T~ ,..., ..-;o,::;,"'or the Wester-:lrn~9h't"::-of:"-YlaY~hne]Jf~:;2}lft'er'5~r~et;'~a,ccqrq~-mg;:-:tO';~e.... ...."..'~: .....'_,._' ~ ~~~ recorded PH' a tthereof;and t he Northerl'yrO-~O' reet of the'lJjctsJ:f:as:te'rJY ''20:0u ~ :".. . feet of sa i d:Lo t8,,-.BJock.18 ",lyi ng~~-S~te.rJi. 9f~: sa f.di1!~_s*~r}.Y:;[:;9~-of"'t/ay".o:r;.cc"':b~',"'; ;~' sa i d N. \ola t e r S tree t ..m....~..., .,c, r ; '., ,I. "?'~:"'~.:'~.:-'~~~-::.;:~_'::~_:=, ') ~-. -'--~-~. _H~--~--'-Parcel 2 ~ ~_._'.'_H Those portions of Block 27, Original Town of Stillwater, Minnesota, and that portion of the South half of the Easter)y extension of E. Myrtle Street, according to the recorded plat thereof, lying Easterly of the Easterly line of N. Water Street, according to the recorded p.lat thereof; -anct'lyirig' WesterlY'ofc~:;':; a 1 ine drawn parallel with and distant 66.0 fe'et Easterly'of ;as ~Iii'easuredat'.:.~- , right angles to, Burlington Northern Railroad CompanY'$ (formerly Northern Pacific Railway Company's) Original Main Track centerline, as originally located and constructed; EXCEPTING THEREFROM all that portion of the 23.5 foot wide strip of Burlington Northern Railroad Company's right-of-way, being 8.5 feet wide on the West side and 15.0 feet wide on the East side of said Original Main Track centerline upon, over and across said, Block 27. Parce 1 3 That portion of Block 18, Original Town of Stillwater, Minnesota; and that portion of the Easterly extension of (ommercialStreet,according to the recorded plat thereof, lying Easterly of the Easterly line of N. Water Street, according to the recorded plat thereof, and lying Westerly of a line drawn parallel with and distant 8.5 feet Westerly of, as measured'at right angles to, Burlington Northern Railroad Company's (formerly Northern Pacific Railway Company's) New Main Track centerline; as now located and constructed, and between the Easterly extensions of East Myrtle Street and East Mulberry Street, according to the recorded plat thereof. ..- .---- . ".---,.-.-"..,-.-.- .-....-. -- .,_. -.. .- - ----. ....-.. ---- . 'Parcel '4 P.M .,T~~~h ~~~~~~nc~~ng~~~i~~;;ot~1, ~~.~.;~E~o~~~~~f~~~~~~,,,;,, =i;~ ,.,.':~=---:....:~o f~i "';'iia~l-'T oWff"'Or ,-St~~U.r"7'Mi'nm:.so"'t;:a~""ft"ae~f1b~a'S;:~jl~:;.tlG,~i:t1':~';~~:;:t~~~"=:~: ==~~~';~';,;~~I~~~f~~~#f~=s~:::;'=~'.' "'."'~_JPw,,~,2~'i'i"" ',' " ., ~r e ~~ ~;~~::~ ~::::-'.'"::..~..~~::'-~ ."""C_ .', ~~_-rr~~;..,':~.., _~ Commencing at the intersection of the Westerly produced Northerly right-of-way line of E. Myrtle Street, according to the recorded plat thereof, and the shoreline of Lake St. Croix, Minnesota; thence Northerly along said shoreline to a point perpendicularly distant 140.0 feet Northerly of the Northerly right-of-way line of said Myrtle Street, being the True Point of Beginning of the parcel to. be described; thence Northerly along said .shoreline to the point of intersectian with the Easterly produced Nartherly line of Lat 4, Block 17, Stillwater, Washingtan County, Minnesata; thence Westerly along said produced line to a line drawn parallel with and perpendicularly distant 8.5 feet Easterly of Bu~l.ington Northern Railroad Company's (formerly Northern Pacific Railway Company's) most Easterly Spur track centerline, as now located and constructed upon, over and across said Section 28; thence Southerly along said parallel line and produced 10.0 feet Sauther1y of the Southerly terminus of said Spur track centerline; thence Westerly at right angles to said parallel line~a distance of 17.0 feet; 'thence Northerly and parallel with said Spur track~ce-nt~rlinB-.:a~(Hstance 'of 20'.0~ " feet; thence Westerly at right angles to safCf:S;pur--:'-tr-ad;=C-enterlirie t6~.the:::;; -::.: point af intersectian with a line drawn para'rre-l '~-it}{'~aH((perp'end'icularlY:~ ,-- distant 15.0 feet Easterly of Burlington NQrthein_: Rcfj-l-ro.ad":€ompaf\Y's 'most~"~ Eas terl y track center1; ne, as now lacated ancFc"dn's'(r;i[cte'd ;':::tn~n~~: SouthedY.'! a1ang said parallel line to the point of inters:.e,C''i:Joh.-'W1lh a-l.jnedra,!,n.:, parallel 'f/ith and distant 8.5 feet EasterlY-=of-,' 'aes rIieastzredatrightangles to, said Railroad Company's Original Main Tr"ack centerlfne, asariginally lo.cated and co.nstructed; thence So.utherly parallel with said Main Track centerline to the Nartherly line extended of E. Myrtle Street; thence Easterly a 1 oog sa i d extended Northerly 1 i ne af Myrtle Street to theintersecti on. with a line drawn parallel with and distant 66.0 feef['as~terlYof,'asmeasured at 'right angles to., said Original Main Track centerline; thence Northerly oarallel with said Main Track centerline to the intersection with a line drawn ~hrough the True Point af Beginning and parallel ~ith s~id Northerly line of E. Myrtle Street; thence Easterly to the True Paint of Beginning. List fI 2 Sequence ,f 231~ 108.20.2/231 .'..U~';l 2J't .. ("""0 :n :'" J,,:)_~. ,;,. '-' '-' . -- ~ _~ -o.;.;,J.- 1;;..-..-., 0-1 ORIGiNAL EXTENSION AGREEMENT LEASE NO. 211,866 e . AGREEMENT, made thi s 24th day of Apri 1, 1987, between BURLINGTON NORTHERN RAILROAD COMPANY (formerly BURLINGTON NORTHERN INC.), a Delaware corporation, hereinafter called "Lessor" and SUPER VALU STORES, INC., a Delaware corporation, hereinafter called "Lessee". WITNESSETH: By agreement dated September 1,1973, Lessor leased to Hooley Supermarkets, Inc. certain premises at Stillwater, Washington County, Minnesota, as more particularly described in said agreement for a term of twenty (20) years corrmencing September 1, 1973 and ending August 31, 1993. ,." "" '._. , " L e s s ee =ijesl.re57a-o~ex'f~n(Filn€r:--t~ rm=,J) f., sam s ag reenten~~.~}fnr,.i;;"aDi~ddjt..iJ~Jl ~l~~"f;i:v>g,;;;;( pJ,J:70--i:.. --- -.---yea rs to wh fcIiz~~.$.~~~~~~ee a b.lg--lQ:':9~}:;"jS ,':0 ,;"; :E;ii3?~~:~cS~:f}-;;k}::;~r-=-sr:-,"~S?-tt=~~~~~:_- ". " ,. . , NOW THEREFORE ,"it fsmlJtua lly agreed tha tagreemenCdated September cl ,l~f73' ahd"the:::,"'ti::;c term created thereby shall be and the same are hereby extended and renewed for a further period of five (5) years, commencing September 1, 1993 and ending August 31, 1998 upon terms and conditions as follows: __" _ 1. That Lessee shall have no right of renewal beyond August 31; 1998. 2. That except as herein provided, all other terms and conditions of ,said agreement dated September 1, 1973 shall be and remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed, in duplicate, the day and year first hereinabove written. Witnesses: BURLINGTON NORTHERN RAILROAD COMPANY t:2~4 ya#~~~) ::P/k;;;;;li ~ Title Vice President . ..... e , " . :" . ~. .,. . ,- ,,' .... ';&.. ~ ~ '~ :ti: , ',:)5 ,~--~i =--::.=:~ ~.. .'10 '. ,'.:" ~~J. . - ---- ~J: ,~' . ,. ' .:,-t .=~."--~,,.:, r..__L _.,.If._ '".. 4. !)!J.. ) . _ ,"".~j"'--; ~,,,,,,,"~:"l'~,..!t.,~.~.,___,,c:-' tt~~~~~~~~'~~~:'~~ r;~~~~:f~~1l;S-~S~-':';- /; A/flb/T" I. ) . 'f< I' - ( IJct.ooer 9, 1984 Super Va1u Stores, Inc. c/o ClJp Foods Box 9 Stillwater, Minnesota ....:. ~ ~ ; " ::;. ,:, " .... ~___;...~; ~...;,,~:) ;.-.....'-r...;i. :,>."': ,;1 ~. 55082 ,-,~ i ~" , , . ::. 6-entlemen: '; .~,;. ';"'..~::::::'-~.. RE: lease 211,866 - Stillwater, Minnesota- The subject agreement provideS for.rental review at five year intervals during the term thereof. In this regard, it has been determined .that. r~nt for the five year period camencing Janu.ary __1, "1985--and ..ending "" O~cember 31, 198~ will be $21,250.00 per year, plus additional rental as set forth in paragraph 15(d) of said lease. ' Kindly note jour records that the new rent will take effect January 1, 1985. Sincere 11 J T. J . Fa rre 11 Manayer - Leases etj f109.4 e lIo-oley'.5 SUl'-emarkct Lmnbcn-cn' s ,Exchange Bldg JoxA _.~,=---:- ~~ S t i 11 \'-i1.:el':=,':;=-~ti?'nn.e-sot jC::'S5'u:s-rS--.,,-: lktcEnsbel: 2>> 1980 Station: St111~ter, ~Gi purpose: Sup1lnt4rk~t,:Jpartt1ent oiice building ~d p3rking lot Lease No.: Zll ~ 866 Date: Septemb~r 1, 1973 Y re_s~8-k .F,ep.tal::.,,,;SlS;. 9 ~A~:QQ : Concerning your" lease as indicated ab9:Y~-: ::-::" -:-~ , ,"_' . _', ...~.,_._~' ,_w__ --'_.--~"" .,~-_..~.._.._- 0_., _ ._ ..._ _ _n ," __ .. ..---'_. .. ,---' ..... - - I ~cl Gcn'tlCQon: paragraph 3a of said lease provides in part that in the event the premises covered by said lease are" S\ll::)ject;.e<i tQ,special , assessments for public irnprovements,,,:tf1~,,,;"E:'eg:t;~1.. t:9I:"- s,?J.d,~." '..,-_.....,.',.,.,~,_.,- premises shall be automatically increased by an amouIitequal" .,' to S per cent per annum on t.."e total assessment chargeable to the leased premises. Burlington Northern I,S property was recently subject to special assessment in the sum of $ 4,'j:)S.97 for ~-tuuicip31 Par1tin?, Lot. Of said sum, there is chargeable to your site - $ ~,99S.~7 , \ 3' of that amount is $ 400.0,0 produces a rental of $ 15,9 SO. no ':.:;0 ~'.=", $ 16,3S0.00 which, added to the present rental of Effecti ve as of January 1 J 1981 the rental for the above lease will be billed at the new rate of $ 16,350.0U . per ann um. (5 !.f C -:'."1. .:; ~~ ... f. ~ I Very truly yours, A. 1'1. Grauel .~_:,_<_'_ _,.,. ____-'-~..,__=:,o..7~~~~"""~"';'O' --Gene r alMan age-I.'--Le as es bc: Director Joint Facilities. & cont~acts- ~fr. 1).,. E. ~ 1l-rink . _ . .~. d - '.1'" S I' r.u"-na . D1.-V~ r.1.nten ent . 4. ~~ ".~,~~- __~---~-'-.-~""' -~. ~-----" _n - __ _~~.,::c"""'~"'=-~"~~ -Y,':!'Y"N- -r':~~-'UTT'''~-'~~----~---'--'- n~_. jh~lllir ~ ,,,",,',~ ,;;-_,;;.,;,;;,-:;::;;;;;;;:..;;;;_-::-:;;;:;:.:::;:;;~ ~~ _::t:'lalr , ::::;:)-e-a;-t:"t;:' ,~ . =~_~,~~."""'_ .,..~_"~..,,,_?_,,,,,:._ _" _'';;;;<:~++-1~ - =" , ~~ -=: -~ ~.".. '_'~~;~:,~~~~~:~:~~_,~. _~.__~ ~~~~. [I~~_~'"- --,,-#.-::::....,~ . --;" _---:::';:~,:.~._ :-_:...:=-_ 'prooe"'" _ D,-u.1.e.IQn-,="-~~ll;,. '"'".. h_.:.-~Q,Xj -- ' '''-- '~'-, _~c' "_:-'~ ~ -~=~~~_:-:--.,.. ,. :-c~py~for"~gi~llea;~'""'-=':- ~ -.,: ';'-I';'~~ ,r~rT I ~~ .1;; ..,., e~ ~ ~: ":~-,;;-~~.:'.~"'- i"','.;~;';.._ ,_c,' -'__ ',_ ~~S~~;:, " ,....'".,..C_..;.,..:.".,.-...._:'" "0.. ~............_~ BURLINGTON NORTHERN INDUSTRIAL DEVELOPMENT AND PROPERTY MANAGEMENT DEPARTMENT Room 1018 176 East Fi fth Street St. Paul, Minnesota 55101 Telephone (612) 298-2121 December 4, 1979 Mr. Charles M. Hooley Hooley's Supermarket Lumbermen's Exchange Building Box A Stillwater, Minnesota 55082 Dear HI. Hooley: I ',.r- """"t Y*.. .......: -_ ...., ".. . ~ ,.." ~ \ \ \ \ \ \ \ HoolflY's Supermarket leases Burlingt.on!Nort.he:rJl~~~:t'yj,c:.:.s,~.:; ,. ., at Stillwater, M.innesota under Lease.:.:.NQ..:~~~11'i:8_~6 ,dat.~.~,_.~':~ ,', septf>.mbp.r 1, 1973. .s,~::::t:f'mt.F-;:' ': J.97-;. The agrea.ruent provides for rental review':a.t::J.:.iY'e:-ye~ ':":, ,-:.: iute-,r.; als durin.g the tarm thereof. In this regard it has been determined that rental for the five-year period con.nn.encing January 1, 1980, a.Tid ending December 31, 1984, \l1ill he $18,900.00 per yp.ar, payable~LoIl a.:quar,'t;~r,ly:L~is at. the ratE'! of $4,725.00. -- "". "~~.:.,: ::.' . Kindly note your records t.1.at the new rental r ate will ~okp. effect J~~uar: 1, 1930. Very truly yours, J. C. Weiland Assistant. Vice President bc: Mr. D. E. Brink ASSIGNMENT OF LEASE NO. 211,866 "...J AGREEMENT, made thi~ 18th day 01 August, 1980, among BURLINGTON NORTHERN INC" a Delaware co/poralion. hereinalter called Railway Company. HOOLEY SUPEIlMARKE:I'S, INC., a Minnesota corporation. now called CUB. INC. e . hereinalter called Assignar, and SUPER VAl>> STOnES, INC., a Delaware carparation J whase post .office address 18 P.O. Box 990, Minneapolis, ~N 5544G , hereinafter called Assignee: By lease numbered 211,866 and dated September 1, 1973, Railway Company leased to Assignor certain premises at Stillwater, Washington County, Slale of Minnesota. Assignor and Assignee desire that 'Assignor's interest in said lease be' assigned 'to Assignee and ~"f'lail",,-aYJ~.o.I11P.!I1Y cO,,,!!!nt thereto. ,.. :::': N OWTH e R EFCYRE;-:the partie~her!tto. iJl'tQn.ild.era liorlof theirmu tlTe3!V:'Q~~...!!mjs~fh/!t"~bY'~'~"'i?;;;"t~c,.;ji' agree _ "-",0".'" ..",.,..,~ L ,Far a valuable, consideralion. ,the fecp.ipt of which by Assigl1..0r is!lc'k't1ow1ed!Jl!d/:AssignOf. sells~_,_':':;,~:~;;c;~ _'.' '," ", assigns, 1ransfefsand-se.ts"overto Assighee all-()f--A-sslgnor's interest IIlaiiiriJ~f.:!ai(flease~1 itllesame fl'lay;'?f1""""",f".,,.!~,,,, '1W)' $ 1~~~~I.l!r~e~o! O!l!~~~!~en~~d or_~,odi Ii,ed 'a~d-a,~=_ ~ame may be _lle;~~"!:TI~~~!~2.n,~~~~~~'::":'.::;;Z~::E~~~~Ti0~i~- -'.~'-:' Assignee hmuyacceplSsaid assigi"~lentnndagrees to be bQvndbyan'd;-ttn"biI;I~.'hy~na~ e~rY":"';':'7:"':~"'~"!'" of the terms and conditions 01 said lellse "and hr.reby expressly assurrie's"'all'liaGmt'ilonii1d'agreeslo~p~\rto' ~. .' 0' : said Railway Coml'any all money~ which may be naw or hereafter due or payable 10 it under the terms of said lease, including payment of any nmtals Ime! taxes naw due and unpaid by Assignor. .....',.. ,,/- 3. Assignee shall use said pre,"is!!s for the purpose of maintaining and operating thereon a supermarket ,ll.partment and office building and automobilepar-Idn-g-' lot~Md :.1'01' 'no';':' other purpose. . ,,~," . 4. Railway Company consents to the assignment from Assignor to Assignee. provided that such consent shall not be construed as consent to any further assignment of said lease.' . 5. This agreement shall be effective as of August 18, 1980. 6. Prior to completion 01 this assignment a processing fee of One Hundred Dollars ($100.001 shall be paid to Railway Company. IN WITNESS WHEREOF. the parties hereto have executed lhese presents the day and year first above written, :7~:= - Assistant Vice President i~-~:~~rg"" ~ ';1 ~, \~J '." - A+t~ .-":"-';"':;";::;';';"';"'-~~~-""-~- .. -'-~ ~:;':'~-~-"';;PE;--V~'13'ro;;S:;Nc;':==::=::'---~. __-"w. -~---~-- By uL f) e ~ ,-. -,,;"'"""',.,....~7';.- - " " .~~.. .--'.::-~,..." ..,"" -'"..~.~,',...,.-.- " ..' '..-~.. . .~ ,..c'- _,_ _, ._," .' " ,~.c_ -"_..,,~." ,....-......:."-, .. -, .. - .,-- ,_..~_..._-~ -,~ --,.'- ~ . ;. --- '-.L r"rt' REIIT^L ^GnEemNT BY ~IUTUAL ^GnEE~mNT of the parties, the rental in that certain lease numbered 211,866, dated Septemher 1, 1973, between BURLINGTON NOR111ERN INC. nnd 1I00l.EY SUI'E1UI^RKETS, !HC., covering certain premises at Stillwater, Washington County, lIinnesota, more particularly in said lease described, is hereby determined to be as follo\~s: 1'1 fteen 'Ihousancl Nine lIundroo Fifty and No/IOO \Jollars ($15,950.00) per allnum for the t\~O (2) year period commencing January 1, 1980 and ending December 31, 1981, payabl e on a quarterly basis at the rate of 11lree ll\Ous3nd Nine Hundred Eighty-Seven and 50/100 \Jollars (,P,987.50). Eighteen lhousand Nine Hundred and No/IOO Dollars ($18,900.00) per anllum for the three (3) year period COllun('ncill~ January 1, 1982 and ending December 31; 1984, payable on a quarterly basis at the rate of FOllr 1110usand Seven Hundred Twenty-Five and No/IOO Dollars ($4,725.00) !; 1 ~ ,': ~ :"':'; .': n .,; pt,;,r iO(i C0:;~n~':lC ~ .' 2'.1. 1.~)~:.., r~:y;:.:~'~ '2 T '~';.,: .l u'-,'-..::~"." ,- .' -- -.". # " .. ,", ~ ,,:): ::::": :,,:. :C~_V"t IN 11ITNESS \1'/1[;R[;OI', the parties have executed these presents ,thies' ::; 4th day of ~Iarch, 1980. '<liI .;,," " i;.il'-,;. L', . /J- ~ . \'l1tnesses: , "J"...a...<lJ..t..-. /..J .)0.,,1,1,/ d -' Aa...n1.h-Ltt,t.4......u -/) . /7 r; '-:;(;"71..01(,- U- / p)A(IY\.....-. -'0 BURLINGTON NORlllERN INC. HOOLEY SUPEIU-li\RKETS, INC. /7 J' ./, By ( . h ,z'fL ',/71 :Zl,~/ Title: ,PIU~/...(;',~,f (J . '.';:' !:t~~::!;~~~~.::::;.;..;.;~~:.(, ;~~f~~!:-~.j ::t'.~ -~ ~::~::: :\-:.....:--.:..... :.r::;'~." -. . ,. , J............... .. ?. "rlt) . " '_ -. ( - I ! i /" ; ... MUENI)U~I TO UURI.INl;TON NORTIIERN INC. l.EASE NO. 211,866 ^TT^OIEU THERETO MID /11\01: ^ P^RT TIIERI:or e 15. (a) ^s rental for the one (1) year and four (4) month period beginning September 1, 1973 and ending Ilccemher 31, 1971\, l.essee shall pay in advance to Itailway Company the sum of lwclve lhous:md Nine IIwldred l11irty-seven and 50/100 Dollars ($12,937.50). (b) ^nnua1 rental for tl\c five (5) yenr period beginning January 1, 1975 lIIld ending Uecemher 31, 1979, sh~ll be 'Ihirteen lhousand and No/lOO Dollars ($13,000.00) payable qunrterly, in advnnce, at the rnte of TIlree 1110usand l\~o IIlnldred Fifty and No/100 IJollars (,$3 ,25n.OO). (c) Except as otheI'ldse provided in subparagraph (d) fol101~ing, annual rental for each succeeding five (5) years, that is; beginning January I, 1980 and January 1, 1985 and the Inst three (3) years and eir.ht (8) months, beginning January 1, 1990, of the term hereof, shall bc determined in the follOl~ing m:tnner: The parties shall by rental ngreo:!ment executed in writing by both parties, agree upon the ren tal to be paid during any .~ucceedingfi ve (5) ,yea,rper.i~d" Acceptan:c:;e,. . . of nny rentalJoLaIlJ~.portion of anysuccccding five (5)r~~(;~.r.rl?cf.~~i!l,,',o./;::'. " ...,..., 'accordance, wi~lt:l\!!'.~:):e-c,uted .rentn1'a(irecn.enf'-{\Wlicab Ie- to:s...itlr,e"9:.o.~~n.~:"-,:'...,,,>...:;,. '~:'-;--::Z.'" ,:,,_' ~_ ~~~~;:~e~~t~~~~~~.i~~t~~~f~~li~~i~a~~r1~:r~~~~~~;i~i;~~;~~~~;:r:]~='~~~l~:t;;Z::.-~~,~~;~,: period.'If;-ifffcr"'expiration of any five (5) year period/th,epa,r(fe's' J'alJtoqi1gi'ee'..:'.~:':"'.:: ,'... '..' u~on the, rel1,taLfor..thc, succe~di~.r,_P.:f~od~.ei th~r partY~~i,i.'1:~.,l~.~&~~~Wl"~.~t,\>"l;;;~~~;~~;~~::;;.~;;:~~t"'-'OS t., futheren ta1~bY'1I1IItual'llgreemen t:.-ln~)',YY , ell 0051 ng an appI,a.lSot:x.:,.l!,SA~.te.,lnMft C.r,H'..'~""'~~ >r~' .'. pFovi~ed ~aus e--t11:e . rental ',_ to b'c: determi ned in the fo 1101~i!lgimiWie:ri.I..:t11JLjjlil~1i:': '9C ~'::.:;.,.~~;'~.~~:~~~';~ . said premi s essll~!l1>~3~t6 i1i1inc<Cby Jlppr'aisers and th er~I'fri.1): .~Il ~I;t~1f.~.'f~~~5L~r ,::: .~\.;~~':C~~~;;; ;::;~: !~~':~;.;:: :,~ . Raili~aYCompariy -based upon the appraised valuation. TIll!' 'pnx:tydes1:rln'g'1:he . '. ,. ~ ", ,'. ',' ~,. =__n _ 0 h _~ '.~ appraisal may choose olle apprniser after I~hich the other party shall have tl~enty (20) days in which to choose an apprniser. Should a second appraiser not be chosen Idthin said twenty (20) days, the pnrty nnmil)g the first nppraisermay choose, the second appraiser. 11le tl~o so chosen shnll select a third ,nppr;iser w,ithin tl~ell~Y. (20) days, and if they fail ,to do so, the selection on :rp~iic~trqp;;';9f;~itl!~rp~:r.ty . may be made bY nn)' Justice ,of thc Supreme Court of the stntll 1!1 ~hich;-sa,'~"prelllises. are located. 111e decision of nny tl~O of such appraisers sllriH 'be binding ul'onthe parties, hut in no case shall thc rentnl bc less than thnt riRrced upon for thc'previous five (5) ye:rrs .o;f'::%he-.term.., If the term of this 1en!'e is :not amultipl~Qf fhe (5) . then rent:r1 for the final pcriod of lcss thanfi vc (5) yenrs sltnlll)edeterminc<l ii, the samc mnnner as hereJn:rhove providcd for thc fixi np, of annual ren tal during a five (5) yea.r period subsequcnt to the first five (5) year period. * ./"...-' ----._~~~'""-_.::--....::--,,"""" (d) Bcginning Jnnuary 1, 1985, :lnd during e:rch ycar there:rfter, in addition to payment of the annunl rental, determined ns specified in subparagraph (c) above, l.essee shall pny to nailway Campnny, without ~n)' deduction for expenses of any kind, a sum equ<ll to one-fourth 0/1\) of one per ccnt (a) (If all gross sales derived from operation of said supermarket, plus ten per cent (10'%) of all gross receipts realized hr l.csscc, out of the suhleasinr, of the premises or any portion thereof, including Lcssee's bul1dtngs locatcd thereon, plus ten pcr cent (l0~) of all gross reccipts derived from !':rid puUng lot, less the annunl rental v' alrendy }lnid for each such )'car pllr!'uant to subparagraph (c) altove. Lessee sh:rll, , Idthin t~/cnty (20) dnys follollin1: Jnl1lmry 1, 193(, anu uachyciii.th~i6.a,~tei:t)\at ' this leo.se remains in cffcct, fnrnish nai1l1ny Comp:IllY a statemunt prepared unuer onth by l.essee sho\.,ing the r,r05s rcceipts nccruing to I,cssec out of opcrntion of said supermarket and parking lot and rentals received f.rom subleasing during the previous tllelve (12) ",onth period. Additional rental due Rai1l~ny Company here- tmder attribut:lb Ie to said gross receipts, as hereinhcforr. in this subparagraph (d) provided, shall be paid within said twenty (20) da)' }lcriod and will nccompany snid statement addressed to the Industrial Development and Property tlnnnp.ement Department, l.ease Section, Uurlinr.tnn Northern Inc., 176 Enst Fifth Street, Saint Paul, ~linne50ta 55101. Lcssec agrees to keep proper records andllccountinr. of llllTllllI *The annual rental determined pursuant 1;0 this subparagraph (c) shall'lie'payable , ",.. "~--~- ~), ,,~~t~~~;~rq~i ~~;Wj,~~.~a~;:~~t.~Li~'~-=~?~'~:~"o-~d ~J~~'~c,~p'r~!c~':~~id!~~~,,;;"~~,,~~~?:.~;,-:.ic~~,-:~;,+~,~, . - 1 - e e "'''''..m.'.'"~'.:;;;'''''':;':'~ t'::~~::-:T . :', all gross receipts deri.ved from the operation of said supermarket, parking lot and subleasing and Railway COMpany sha.ll have the riltht to inspect such records at all reasonable times. 16. (a.) If all of the demised premises are tnken or condemned by public authori ty, this lease shnll terminate as of the date possession is taken; and if a portion of the demised premises are taken or condemned hy puhlic anthori ty and as a result of such pnrtinl tnkin~, the demised premises are no longer suitable, in the rensonable opinion of Lessee, for the purpose for I~hich they were lease<l, then the Lessee may, at its option, wi thin sixty (60) days follol~ing receipt by Lessee of Notice" of Tnking, terminate this lease by givinlt thirty (30) <lays I I~ritten notice thereof to P.ni lway Company, in which event this lease shall terminate as of the date possession is tal:en. In the event that the lease is terminated p"rsunnt to this sllopnr<1gr<1ph (n), the l1aihlllY Comp<1ny shall be en ti tIed to recci. ve IInd keep as its property tha t portion of the con<le.nUlation award attribut<1ble to the renl estnte taken by the public nuthority, and I.essee shall be en ti t led to recci ve and keep as its property that portion of the con- demnation awnrd at tributab Ie to the buildings and improvemen ts located on snid re<11 estnte. (b) If n portion of the demised premises are taken or condemne<l"by'a public authority, nn<l this lease is not terminated by Lessee pUTsuant tosuu-' parap,raph (a) of this paragrnph 16, the naih~ay Company 'shn-Ube ehlitled-to" ' recei ve and keep as its property the entire condemnationr1iwlird' fOr.' s:u'Cli"pai"tiiil taking, and the rent reserved hereunder by the Railway Com(l'ahy, s'liill1t?theteilfterCc-' be reduced in proportion to the amount of the demised priiinrs-es 50-' taken. !'" " ,::.,; ; , , ' ~-... .~. 17. (a) In the event thnt the buildi.ngs and improvement's- erEfcted'by:Lessee:on' ~ "".' the demised premises are destroyed, in I~hole or in pnrt,"by 'fire 'tir :otncr~c':asualtYi:;;":"': Lessee Jl1."lY, at its option, terminllte this lease hy givingcwrittell'noHce' thereof' :"",'~,~"~ to the Rnilway Company within sixty (60) days after such""dc'sth.iCtlOrij"in'which event this lense shnll terminate as of the dnte said notice is deposited in the United States registered or certified mail, postage prepaid, properly nddressed as follows: Burlington Northern Inc., In<lustrial Development and Property '~anR~ement Department, 176 Enst Fifth Street, St. Paul, ~Iinnesota 55101. In the event that this lease is so terminated, Lessee shall remove Lessee I s property and inipTClvemeilts from': the' demised premises IInd fill a) I excavations thereon I~ithin''tcil' 'llO)'d~ys' lifter such terntination, an<l in case of Lessee I s fnilure to do so, Raf1l~ny Company mny remove such property.and improvements and fill such excavations a.t the cost of Lessee, or may nppropriate the same to its own use without compensation'. ,';";,-,,; (b) In the event that the buildings an<l improvements erected by J.essee on the demise<l premises are destroyed, in I~hole or in p;\rt, by fire or other casualty, and Lessce does not termi nate this lellse I'ursunnt to sllhpnrngrnph (n) of this parllgraph 17, I.essee shllll commence the work of repai r,i np' IInd rehui.1ding said buildings and inlprovcl11ents within three (3) months after the elate of. said destruc- tion, and shnll complete the same 11ithin tl~elve (12) months aftcr the date of said destruction; pl"ovided, hOl'lever, that if delay in sai.d work is caused by or con- . tributed to by act or neglect of naih~ny Compnny or those acting for or tltlder naih~ay Company, labor di.sputes, fire or other casual ty, unusunl delays in trans- portntion, lUlnvoidahle casualties, ncts of (-o<l, or the puhlic enemy, governmental embargo restrictions, action or nonnction of public utili ties or of local, stntc or federal government affectlnl.! the progress of said work or other causes beyond Lessee I s control, then the tir'c of completion of such I~cirksh.an lie extended for a period of time ef\ui.volent to the time lost h)' such delay; nnd provided further, thnt durin!: the period of such work, the rent reserved hereunder hy the Railway Company shall be re<luced in proportion to the extent of said destruction. 18. Wherever in this lease the consent or approval of either party is required, such consent or approval shall not be unreasonably withheld. - 2 - " , .,. . '," ",' " ., /.... -- ,,_..I \ ., Re: See reverse side. HO. 2ll,ll66 ~"...' R.W.2 6-u 1M TERM LEASE BURLINGTON NORTHERN INC. :~".Inah., .allad Rallo..y Company. ha,.Ioy 1......0 . 1l00LEY SUPERMARKErS, INC., a Minnesota corporation, l....., the 'ollowlt,. pr.",".", .ltuot.tI 0' Caunfy or Washington .mI S.... of stillllater Minnesota herelnolt., coll.d ..0Uon, In ..... e t.-111 All that part of the premises of the said RailllaY Company as shown hatched blue on the print hereto attached, marked Exhibit "A" dated August 31, 1973, and made a part hereof. This agreement is intended to supersede those two certain written agreements of lease between the Northern Pacific Railway Company, predecessor in interest by merger to the herein lIll11\ed Railway Ccmpany, l\nd the Lellsee, covering all or part of the same premises and da.ted November 16, 1959 and February 18, 1964 j and upon' execution a.nd delivery hereof, said agreemenl;s of November 16, 1959 and February 18, 19611, shall stand cancelled and annulled 'Without prejudice to any existing liability. ...-- \ . .. .. ~. /(t:!(~.\K(~~~~"" . rfi ~'\:-l~""r.,;=~'~~' TO HAVE AHD TO HOLD .ulola.' f. tho p...I.I.n. r.ll.wlng I.. I~. I..m .r twenty (20) years comm.n.lng September 1, 1973 and .ndlng August 31, 1993. 1. (n) Les,ee sholl occupy and contin"e 10 use sold premise, durin9 .h. le~m '0' I1le purp.,' or maintaining ,and operating thereon a, supermarket, apartment and office boilding:and'autOlll.obller;perkillg lot and for no other purpose. ' ltF.'I3)1Cl fOe 1W n~""" ~",',-:~,::" (h) If CJ huild;", or I,uildlngs hoy~ nol c.'reoely h.en con!litrvel~,f 0" sdI'd p,e,n;,.s, Ue;.;ee .i.on; wlll.'"' s.r. months Dr t.... ; ..ff_clive clot. of thh leosI', 13."." ,he construction ond compl.t. wi,hin 18 mantlu or soid clOI., 0 hui1iUng 0' ~uildln9s GceG,di"g to ,ron' and specification, ,ub,."II.d tG o"d appra",.d by Rollwoy Compon, in advance 0' ton.lruclion.a..;....................,.~~......L-.. in-whol..o r.in_p ."1-1..,,. .........han .....i thin" th.~.&""on ,h, ...fhe'tIJ'.,rte~o"',.,."~he-wo,"-.-f~p.iti"'91'-f.h.ui ldi....,-e"..I-e~.......h.-+eNt_ wLlhin_l.w.lvlI.montlu.oh.,.,h..do'..o'.,oid ,d.,t,uclion.___. ... --:- ."1-'- 2. .4___""'".....,."..01-1. ..,..-.holl. poy-.It"...II)' In_odvo"c.., Ih.~u",..I__ ./'- See Addendum here~o attached and made a part hereof for the rent. ,'~,_'h. .u" I.';v~,( 5) yeor r-o" the" '",'m: .Thf! pOf"i .7..sh1l11.1,y....enta Mguemen," "txeevtttd. ;".wrl"nv.\tr-1:tGt"-p..,,'i'Ul. ..._. upon .th_ ....-... -..... nntal10 ". poid during any suC'ceedino 'ivlI! (5) reGr period. ^(C~ptQ"ce 0' ony r8n,,,1 for any ""rtion of ony succeedin, ~...'Jj)---- yea' prrfaJ nftl in occo,donclt witlt on e..ecul'!d renlnl ogreem"nl opplico"l" 110 said periGd e""n Ihou,'" a hill ho.!j..~endered and pllymenf nlodll! Ihereo', shall nal con!lti'ul. en "qteemenl os 110 ,he rGle of ,rntol '10 bIt pOid during SUcll_SUCf:dltling fi.,e (5) y.or pPori.. ad. If, nfter e)lpirnllon a' ony By!!' (5) yror p__riod, lI1e porli"s foil 110 agr.~ upon thll! 'f!nlol far lh.ooftJ!ceedin9 p~riod, eithe, porly dell!n,ing il i'flpossihle '10 fl. Ihe ,en'al hy In"'uol n9r"."'''n. mlJ"Y "y cltoosinq fin op!~ohl!'r-'8..r;e,.inoh.r pro"'ided couSt' III. ",nlol 110 "eo dehHml".d in ,heo fallaw;"9 mann"': 11up yolue arsoid prl!rnis'!s sl,o.ll bll!,.d:;f.rminf'!'d Ity apprai,ers o"d .h. r"n.or ,Itall It_ fix.. .d Ity Roilwo)' Can'Dony "osrd upon Ilu!' ,;p"","i,~"d yoluoliGn. Th.. portr<l';,i,ituJ ,II., approi,al moy choo,. On. or.proi"e, oft~, which ,hI!' ollt", party sholll'flv" Iw.",y (20) dny~ ,n _,.ief. I~cho,,'&'an opP,ofn,. SI.al,ld 0 "~'=Of,d opprcris.r nol h~ c .."eon wlll,in soi~ 'w."ly (20) Jnys, Ihe po"y nn",in9 Ihe linl ,oppr"i'S'F,nuIY chaos. .1.. ,,~co"d nrp,,,,iu.r. lhe 'wo ,a chos." ,1,011 s.lecl G .,.iro OP" p,oisl!"r wi '''i" 'we"'y (20) doys, Ot,.t.;r.'hfY" '.,iI fo dn so, Iheo ,~I.,cfi,," on opplicn'iCtn af .i,It", po"y ,"oy ..~ nu.dlt ity any Juslic"! of .h. Sur"""''' Coutl 0' ,h"J.lo'" ,,,-;.. ,ich ~"id pl"~"';~~~ nr~ laca'f'd. TI." d'!clsln., or o"y two of ,,,,.11 "'Pp,.,ise'" ,1,.,11 h.. """din9 'Jpan ,I.., porli.s, but in."o r.5s.- !,,,.,II,h~ ren,,,1 h. I." 11,0" 11,01 ogre'!d upon for Ihe Hnl f;",e (5l yea's of ,'\. t_"". If ,he 'erm 101 litis I~cr'e iJ..l'.,,..6,,hipl., of fiv'! (5) ,11(>n ren'nl for II.~ finol pe,iod 0' leu Ihan Ii". lS) yeors sl.oll b. cf.lenni".d in ,hI!' same mo""e' o7~.inDbo.v..p'ovid.cI.rl')r_'h. .(~.;"9 ef.a"".,,,1 r-"tol-dvring-o.r;y...(5)-Y.Gr.p.riatl. sUb'.ttufl'nllo ,h".fir,t."y. (5),y.or.p.,iod... . 3. (0) les'.e'~ol1 payoff g8nerol Iou", licen,. f.." Of' olh.r ehGfg.-s arplioeobl.-to- or ajs.,ud 'agoij"-" ;'OlG premises, or Gny pG.' lI,e,eoof, durIng Ihl!' I,.,," or ,hi, 11'01., inclt/tfing 11.0,1' for ,Ill! ye"r 1973 , .Yl!'n IhGugh such taxe,. lie""". rl!'f'S, a. 011... char91!!l: may ""I bit come due and p-tynbll'1 un'il .,her .wrjrotian 0' cOrlcellolion or lI,i, 1"(1'.. Any '''lt~ial a,s.Um."t lor puh.. lie impravem..n" os..".... 0' levi..d ..gain'" !'Ioid rremius, 0' any p",..heroof, wilt bo paid "1 Roilwo)' Company end ,r,. arlnual 'ent.,1 'p'!cjH~d obovl'! will \)" incte<t,ed fro," II.. dol. 0' such payment in a sum .~uollo 8~.af th. omount of such special asse".. me"'. If any '~..,,' ", ,p...ciol o,..,'sm""t ;, nrpUeobf" fa or ass.ss"d at I.vied agoins, ony troc' at pnrcel 01 which said rrC!'",ises ore n port, RO,d_oy COII."ony ",oy alloc"'~ Ih", .'''"., 01" special O'S"'ssment omon9 ,I,. various parts 0' soid ,rac' or porc.I, includ. ing sold p,p",,,...,, In Calif of Inw." Lf's~"'. _"I poy II.. part allocoled 10 ,did pre...is.s' nnd In ,h. co.. 0' 'pecial ass.S'm""" Roilwny Compun, will pay Ihe '0"'. 0"..1 L~n~1t will PdY increo'ed renlal as oboy., pravid.A. . (b) In cas., of "o"pO)'",..n' a' renlnl. lawlu, Hc.n,.. '..es. 0' o.her du'g",. .h. saln" ,ltoH, until poi of. .:on,llIul. 0 lien upo" any builrlin9' or ol',,,r pror..r'y ow"~d hy l.f'S'IOtO lo,:o'od I,PO" soid premis.s, .nd Ih. Ii." "'Of b. 'o'.cl,.,ed according 10 Inw. LlI!'J.. ,hol1 nol r"mov. ,aId hulldln9J Of .,It.r ruoporly un.il ,oid t.n'al IOIUS IIc.",. f.., 0' o'h.. char,., "'live 'a.n paid unl.ss dincl.d 10 dG '0 by Rallwoy Company. ". ,c. ,!ilh~ul Ihe ca",."t o..d arpr"vGI of th'! DivisiGn Supertnlenden' af Rail."..,y Cornp.GnY",no ,hvelU"" ~'I.GH_ I;e .'ti;tl~'d'_~"'sata ';'-J' ".,.! "' - ,'" "pr~n'i 'es 1" y ,L.,.. S.',.,.,.,,!f Ih" e sam,A is n(ll 10 bIt pl~cr~p~!~I_,I.~_I_O!~e,~.__ma. i,"__IrO~_-,."o.~',.....Rall~~~..cDlb,P,o~'t,.-.L'-.II..tf;1;~"'... i\1)';",P,",!t!J, jlnd,' ~,',.e>p ~"fr~""Y,_..":\t:'~',:;;;Y",."~;'i~,'.'~"~~,:~=:::>:~~: ~",-,'~~~_":_;;;';_~:"~;;:'~';:::';;'c.'::_~~.:::.~~.~.::::_\.r~,"t.d. ."Y:~H..~.,I~~""J_-~e,~)rd "".;" ..e1.j -p"rtm. Ie I 'wllft . colo, sotf_sraclo,y 'o~RoPT';o'k~~'!'i~;.:t'.i;'.~.sl1Dn nor;~iic .'a,.'-p'i-;:....c~_':-:!_-":!~~:~ ~. _':~"4.~'.==:~__..~_~' .:.- . -- - _..~-~---_~~_mll 10 h._pld.c~d_,dll~Jl'lt.erl.i,.1i..._9 mo!tctlJpon any parlo-f-''Iairf pn,mh., or u'ori-ony.Tmp..~ve....nl' 11t.;'.o"'~.cep" ',uch.,. 'Is 'n.c.,:' -;."",. ~_. 'ory 10 advertISe l.."",,'s 0""'" IJUlI"."'. 5. in) t.o huildlng or s'ructu,,, e'..ct~d on ~aid preml.,., ,hall hay.. ,,,,,;ngi"9 door Dr windoW' openl"9 'owDrd, ony roil Iroclt, which, wl,,,n oplOtn. will rl'!!1hicI ."" cI~.,'a,.c. 10 I.ss .I'on 'I.S f..t from II,. e,.nl., Iln. Clf,uch I,ncle. .. _ . . WOf._ ,... ._- '(h) L..... .I.nll n.1 pl..... p..mlll. h. pl...d. ..1. ..m.;n, ""y ",a,..I.I, S1.u.,u... ~I. a. a'~" .l..,.licllo" ,;lir,i..8-f~--~-.cc'c'-..-.' '''.~ ,j;s~~~i~~~~E~~~~,[~~::.5~~. ___~_c_ _~_::~:_.~~~:';.::'c."::_ _._~~;~_!iiC~~-::=::':~,::~~,:.~~,:f:~:.;-i;~Z:::.~ft%~;~:&.r~;~ ._,.._......~~~c e 6. (a) I. is understood by .hl! ;a.'ir.s ,It(ll .aid p,,"_i"lc.>s "'O! in clon9~I'OU. pro...,,,.Hy '0 ,h. hOC'" .f Roil...., Co""pony and .1,0' p,op.rly on ,n,eI p,~",i,e' ...,HI h. in don,,.., 0' in;u.y cu d'.","uclion 1ty fir. i"dd"n' '0 Ih~ o,,~'atlo". ,"oin'lI!'"once 0' h"prOV"M"n' 0' .ft,.. railway, "net LI!"Isf!''t deepph '.,i, f..",t!' ,,,hit"r't to ,.,c:I. d""9l:'''':' II is ,I,,.,..,ot'r.' ftg,...... ft. .n.. 0' tl.., "'0'''';.' 'consld.ratlonso' II,h I ",,, " II! wilhou' _hid, .1... same woul" nol h.. qr"n'!1'd, tI,", L.."~,.., 0.. '''",lfS ",II ';!I" 01 los., d.,...ct~.. or d..-s..uc'ion It, fire 10 '-"ildln,,", conten" or '0 any nlher f'lrnp""ty h,"ugl.. urltn D. in p,.wimi'y In ""aid Pl'.....""'. tty L.s,..., or ~y 0"' o.h., p.rson will. ,h. con.,.". Of knnwled'lt!'.' Les,.... wil"~ut '''!In,'' to wlu.,h,., ,,,ch Ii,. It. II." u!'uh 0' rw'!,1Igenc. '" ...i.conduC" 0' nny p."O" in th., employ or ,elviC',. of Rflilway Camro"", 0' of d"""ctiv.. ""pllonee" e",in~~, 'tr ,"ft('hi"e,,; ""CIltP' ,., II.. p'.mi... 0' Roilway Company and '0 ,01lin9 ,toc" helon';"9 'eo Railway Compony 0' '0 OIIUfS. ftnd 10 ,I.ir"'e"" 0' .hi," po"I.s in 'h. co.,,,. 0' "on,- po,'oli,,". L.ue. h.,..by i"dl!mnHies and og'f"U 10 p,nlec' Roifwoy Co"'pony ',orn 011 f"eI, loss. domog. at d.,lruefi,," to p,operty, 'ncludin9 do..." and couse' of ocHon n,,,",,.d 090i"SI Railway Co,npony hy ony Insu.., 0' lo,d p,ope,ly. (h) Le"." I'IlslIt a"..." to indlllmnif.,. and hold ha,mle" Railwny Comr"'ny fa.. la". d.",o,,,, ;...ju",., 41..,1. 'ro", .ny .cl or ol",h,lon 0' L.~..". Lf"~'.f!" ,,,v"e,,,. lIe'!'".e.,. ""'ploy",. 0' a9"nh. 10 ,h" r",son or p,o:/,-.rly 0' II.. po,I,.., I""elo ond ,h.i, e"'- rloy". an,f loll,.. P<!'I""" o,.r,nr.f'rfY n' Ony olh.r p"'Ufllt or eo'po,ettl"," wh,l. "n IU "ea' ..., pflt"";''''; and if ony clnim or liability olh., ".an f,om 'It" ,1.tllI ori"e ,o,n II.. joint or concurring no,lig""c" of ~olh po,"", 1'.""0, II ,lu.1I b" ",no DY tl.."" lIquOU" 7. II i, ogteed ilia' lit'! p,ovi,lon, of pO,a9'Gpl" 5 and 6 at. '0' ,he e'1uol p'ol"'c'ian of nny olh.r ,oilrood eo'"pany 0' componle, h,,'.lofo,. or h.,.olt., 9,anted ,h. lolnl u.. of Railway Compony's prope,ly of _hleh soiet p,.ml,.. 0'.0 pori. 8. (0) If Llfssee ,It nil d...rouh in OI,Y env~"onl or O',..~I"en' henin auu",.d, and ,uel, d.fnult ,1,011 no' I>e '....edh.d 0' corre:c,,,d .ilM" Ihitty (J)) ooys oft", w,illen noliCI!! by RnilwO'y Co,nrany 10 Lesse" or such de'ault, litis I.'ue .ltolll.rminole _'tI,oul fu,tlte, ntltle.. Any wolve' by Railway Company of any d.'o-vll ,ltoll nol b.. eon,l,ued os . waiver_o' ony tub'.cauent defoull. Wltll. ,uch de.. fault continues le's.. sit 011 no' '.move Itom told pr!!,";,.., any building 0' olher p,operly o.,ud It, l..'ee unle" directed 10 do '0 I,y Roil.....ay Company. (1,) If Railway Company ,hall 'equite laid premi,., '0' railroad pU'po,.s a' ony tim. durIng the Ilfr"" or ,hall d.sir. Ihe Some 'or any purposo wha'.v." 01 ony time olte, five y.ors from the dale h.,,,of, i, moy I.,m;no'. I),;' I.o.e upon w,ilten nOlic. 0' not Ie,. II10n ,i.. month,. In cose 0' sucl, I.,,,,;nolio,, Railway Company ,holl pu,cho,e 'rom Lene. th. building 0' buildings owned by Len.. loeoled on 'aid "re",I,,,,, bul ,hall no' pu,cho.,e e.,uip"'l!'nl 0' movable 'i..lv,., q, any 0' 'h_ conlenlt tI.e,eof wI,leh or" capable of being rl!n'av"d t1,'!,ef,am wilhoul domog~ '0 tlu said huilding 0' buildi"gso Raih,,,tliy Compnny ,haH pay 0 'vm equal 10 Ihe fair market v"lve or ,aid bvildin9 or building, 01 lite ,jrotll!' suel, noHce is giv.,n. If ,It. po,lies foil '0 ov,el!' on the ,nid valve, Ihe some .hol1 he d.t",mi"ed hy ,Iuee di"inll!,."h~d oPf,ol,e" sell!et'!d in ,lte "umner l'e'l!inb~'ore provld.". and ,f... volue og,!'ed upon by ony 'wo 01 ,niel ctpp,oisl!" ~hnll be poid hy Roi wny Comflony. In the ev~"1 of 11!,,,,il1olion ,.r thi., leo,l'! punuon' fo nolice in acco,donce with Il1i, porag,opl, 8(b). Ll!'s,el!. ~efo'e the terminotion dote Ii..ed in soid nolice. sl,.,1I 'ernov," f,om ,old prem;,es Less.e"s p,operly nof pu,cho.,ed by Railway Compony. and in co,'!' of roilu,e 10 do so, RotlwCty Company may remove ,uch p,op.,ly 01 f". cosio' L.,see. or may opp,ttprio'" ,om., to lis o.....n use withoul comp"n,otion. (el Any nolic. 10 be given by Railway Company os he,,,in provided s!toll ~I!' good II ,.ryod personally upon l.ssee. po,'ed upon said p'emi,es, 0' deposiled in Ihe Unit.d Slate' moils odd'es,~d 10 l.ss.e ot sti11wate,r, Minnesota 55002. 9. ElIfcepl as o,l,erwh. p,ovided in po,og,aph, 3(b) an~ S (0) h.,eor. upon ,he n:pi,ollo" of 'h;~ leo,.,'les;-..e, -b.foresoicl - lease e..pj,.~, , hall re",(I!~., Les s..', P'OPl!Ity.o.;dimp'ov.m_~"'." fromsa.i~p'e,"i'.,!so"d. fin 01.' ..c::aY..!llq~n1 "hJ:no"-~nd -In_-cJs'e o"::':~-:.::::.--:-, _-"^.:: '~..:~~' -. _:'~~':~ 'o.i1u,e lodo ,se, Rallwoy...Compony ",oy re",oves.uch prope.rty_. a!"!d..imp'oYe:~.nts__ <<:rn_d__~IJ~'~e:_:~~t~f!~-olJtf'i-': ~~'~.j;:o.S)-o':l:'.s,.., _~ ..;---.- ;..~-- ~~=:::::_'",~ c~-~'---ritdY-G'fpl'o"rhn.--1fr.l"'m...fo"ih----own'Us.-_if.hevt-eeMp..'n.o'~Oft"'~""'" ...",,-- - - ". _ '. ....,~.,.__ .. .....,..".......-.~.~:.~'~~ ~ 10. l-eue. shall.not permit the ..lth'~f1c~ 1)'- ony nU!1onc. nor ,lie IJccumutolion Df'~"'lft-.l:fii:-ii~ftfiwt i~n-~~fj:P'emfl~J. -.,-::~-~-:;..~t~~f'''~;'''''';' . ~ adi~ee"1 10 lit,. Iracks or R,~_i~~~r CO~P?"! -and "~.,II 0..1 _~'t~i",~' ".ep sam. in 0 el~-:n....o~~, ~~-"!~'.!!,~~~~~!~I...~~d__.-h.~..I1:o~*,~I~..; ,,".':;:~,"':" ~IZ..~....- ~ ~ .- ~ f_~_h~11 ICfW.'.. !!!'+a.__~~ 9..~!,tl..~--12~.!.'! ~r ~_~c. :_',~.~ ~~~~!!~~.-:..f!4~.oh I. mo I~ rial ~ . o~. ~?';~~:~r.!:~~'....!:::~~-~:-.~.~~.:.:..~..,::,:~~'::~~';.:~.--:-"~,.".;":"~~,-:~:-.::~:;::-.~:::~~::~::.~..-:~" ~ 11. Roilwoy Company ;e,.,v.s'''. righl o. any time 10 C"o"g~-,h. v,od. or ils lrocScS_~wt'fl:tdUl.l:britp'e";'Olron'"fb.'-L~.sse.'.~ 0,.-.41 i...."._:'. '.' <.___c ~::~.t>"--~:~;::~r;h':":dol:.-~:t;'p;;2~'se~:';:j.,:p::~~~:~t~~~~;~:;~":o'";:IY..':'I:;~:sr::~~;~~.,~~~:;~;;~~~t~;;-:;~A~~'~~:;~~!!:"'~'~J:.~~~ir~4~~~~~r:;~~" ",~~. ~ 12. Rollwoy Con'p~o"y-'ese'v", "HI tight 10 rnoi"toln 11.- e,..hlln9 facilllle, and 'a eon'nrU-'t'f~cn"'.h"7r1ti.'~'Ofts!fUcnol'; ~r o-ddH;~~:.;:'^~_~-..-=--- -: ." o..t.elli.J~....ou -'--Gid premisJu lo.r tb. b~ndi.t.9:ta'.=.tot:u'!~J!'-;.9~. of urvin9 Rollw"i'C9mJiini.o;~.ot~.il~.,j..e' ol-RaiJwoy C-omPo-nL"::::":':'==~"_~': ...., '~nd ~lso__lh" '1;'1119 .,,!!!. ~j_O_" ~so!d pr.mi~.t1- '&r'h"::-t!.,~.p!'. of cOl'1'lruclln9, '_COri1'lfYUt"";:~;t{nrF?,-;~.~P..!;.tl,."-g;'riID~aH':;,oricf ~ ::- remoyi,,9 ,aid facllllio.!a . -':,:._<>-- ..... . - .~--- . ._'_0 -... -----'----.:='.'''''''' .. ?~.;'~::;-:c~~.,-.: ~.:-:=.:'<<- ~ i :13. This 1.0,. Is,granled ,ubj.ct 10 p.r--milS. lea,., and lieen'It', If any, heretofore-gran'ed by'RaUwayCompany aUecllng ,aid p'.ml.~.~., ' : _. : f.,' .'" .:' ~ _ ) I": ~ ., i. _ '. ';,: .-. '. .: 14. fo) Wlthoul tit. written consent of Roilway Company, L.s,e. shall nol as,tgn this leo.. or any .i.,ter.,,' .hereln or sublet, and n" h.I" ell'eculor. oclrnlnlslra'or, '~ceivlt,. "'0,1.', ,herllf, I,us'.e 'n bonk,uplcy or other assign.. It., op.rotlon 01 low .hall assign or sublet wilhoul sueh wrill"" ~onsent. . - ~ . . (b) In II.. ev~n' of o"ignment bf thh I.o,lt Roilwoy CO"lpony, havIng no od.ie.., '~_!~'e'c.on.I'o_ry, i~.,'lal'sv-chltme.chdil_otr un.arn.d re:nlO'I hereunder to ",0 a. ,19n~ e. _Any Ol~tt' dispo,Uion of un.orn.d ro",,,I: -~ifrb'~..mo-a_~ by,1 ~oi-ttl-Gy~Co~panytmly' upon Ih."'~'--'-" iainl written requestof.both l.s,;o. and Les,.e'solslgn.e 01 Ih.Ii",_ 01 submlrtlnif.-o"d'eris111,irhel;t to' Railway Componf ror1ts, ~.-:.-<; cons.nl. ' - ...-" See Addendum hereto attached and made a part hereof' for paragraphs 15,16, 17, and 18. Rei (NP) #-87352, 11-16-59 and (NP) #94307, 2-18-64 IN WITNESS WHEREOF ,h. porl1., have .x.cu,.d ,his 1.0.. In duplicate .hls r: ..' ~.Y .f September I 19 73. '- ,; At'. SIirn.cr, ,;...I~A .n"d dell".,eJ In pres.,;e..-.' ,~ l:. . - .' }.. ,I .:. ---.;z; Jr./1:fl.-) /Lt/Jli";,U ) JI~.':/.(h k:t(tt!~~'L. .',. t:::.. V. , I ' ,. ) . ~ c: '. r-:-"-'~' .-=" ..l ,;. r. ~.: )00'