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HomeMy WebLinkAbout2014-06-03 CC Packeti 1 1 t e r INF OIRTNFLACE OF MINNESOTA REVISED AGENDA CITY COUNCIL MEETING Council Chambers, 216 Fourth Street North June 3, 2014 REGULAR MEETING RECESSED MEETING 4:30 P.M. AGENDA I. CALL TO ORDER II. ROLL CALL III. OTHER BUSINESS 1. Police Department Annual Report (Available Tuesday) 2. Police Services Policy and related fees (Resolution — Roll Call) IV. STAFF REPORTS 3. Police Chief 4. Fire Chief 5. City Clerk 6. Community Development Dir. 7. Public Works Dir. 8. Finance Director 9. City Attorney 10. City Administrator 7:00 P.M. AGENDA 4:30 P.M. 7:00 P.M. V. CALL TO ORDER VI. ROLL CALL VII. PLEDGE OF ALLEGIANCE VIII. APPROVAL OF MINUTES 11. Possible approval of May 20, 2014 regular meeting minutes IX. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS X. OPEN FORUM The Open Forum is a portion of the Council meeting to address Council on subjects which are not a part of the meeting agenda. The Council may take action or reply at the time of the statement or may give direction to staff regarding investigation of the concerns expressed. Out of respect for others in attendance, please limit your comments to 5 minutes or less. XI. CONSENT AGENDA (ROLL CALL) all items listed under the consent agenda are considered to be routine by the city council and will be enacted by one motion. There will be no separate discussion on these items unless a council member or citizen so requests, in which event, the items will be removed from the consent agenda and considered separately. 12. Resolution 2014-089, directing payment of bills 13. Possible approval of Sunday Taproom License — Lift Bridge Brewery 14. Resolution 2014-090, approval of 2014 Grant Agreement for Municipal Recycling Grant Distribution 15. Resolution 2014-091, approval of Agreement with RES Specialty Pyrotechnics for July 4, 2014 Fireworks 16. Possible approval to purchase an ID printer - MIS 17. Possible approval to purchase 2 computers — Engineering Finance 18. Possible approval to purchase an IPad - MIS 19. Possible approval of temporary liquor license — Log Jam Days 20. Resolution 2014-092, approval of non-exclusive wharfage permit — St. Croix Sailing Club 21. Possible approval of 2014 Case DV23 Dual Drum Roller — Public Works 22. Possible approval of temporary liquor license — St. Mary's Church — September 7, 2014 XII. PUBLIC HEARINGS - OUT OF RESPECT FOR OTHERS IN ATTENDANCE, PLEASE LIMIT YOUR COMMENTS TO 10 MINUTES OR LESS. 23. This is the date and time for a public hearing to consider the proposed adoption of a modification of the development program for Development District No. 1 and the proposed adoption of the Tax Increment Financing Plan for District No. 11. (Resolution — Roll Call) XIII. UNFINISHED BUSINESS 24. Possible approval of assessment policy (Resolution — Roll Call) (Available Tuesday) XIV. NEW BUSINESS 25. Possible approval of No Parking on 4th Street N (Resolution — Roll Call) 26. Possible approval of Access point on North Frontage Road between Greeley Street and Osgood Avenue (Resolution — Roll Call) 27. Possible approval of feasibility report and calling for hearing for the 2014 Street Improvements (Resolution — Roll Call) 28. Possible approval to replace K-9 Vehicle/Leasing New Unmarked Car XV. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS (CONTINUED) XVI. COMMUNICATIONS/REQUESTS XVII. COUNCIL REQUEST ITEMS XVIII. STAFF REPORTS (CONTINUED) XIX. ADJOURNMENT TO EXECUTIVE SESSION — DISCUSSION ON POSSIBLE LAND PURCHASE 2013 Annual Report Stillwater Police Department Chief John Gannaway Captain Craig Peterson (retired 01/30/13) Captain Nathan Meredith (promoted 1/31/13) Patrol Division Sergeant Jeff Magler Sergeant Chris Felsch Sergeant Steve Hansen Sergeant Brian Bruchu (promoted 02/01/13) Officer Brad Allen (retired 10/06/13) Officer Sandra Vetsch Officer Kyle Sykes Officer Chris Kopel Officer Ryan Mitchell Officer Dave Wulfing (K9) OfficerChyrisse LeMoine Officer Austin Peterson Officer John Siebenaler Officer Jason Belisle Officer DanYoung Officer Brent Campbell (hired 04/26/13) 6/3/2014 1 Investigations Sergeant Jeff Stender Officer Chris Crayne Officer Andrea Olson Records and Dispatch Linda Thompson Alicia Hill Stillwater Police Department Chief John Gannaway Community Service Officers Brad Junker Dennis Pasket Community Resource Officer Hunter Julien Mission Statement The Mission of the Stillwater Police Department is to provide a superior police service to the citizens of Stillwater. The department and all of its members are devoted to providing a fair and equitable police service to all citizens having contact with the department. The department is committed to maintaining Stillwater as a safe and peaceful community. 6/3/2014 2 Statistics Grand Totals 2013 11966 2012 11798 2011 12015 2010 13737 2009 13700 End ofYearTotals 2013 Statistical Summary Average of 32.8 Calls for Service/ICR's per day 11% Increase in overall traffic enforcement 38% Decrease in Burglaries 18% Decrease in Part II Offenses (assaults, narcotics, juvenile issues) 6/3/2014 3 14000 12000 10000 8000 6000 4000 632 zoao Part I Offenses Yearly Comparison 8Q5Q— 8 8 31- 997 706 1 Part II Offenses Part III, IV & V Offenses Traffic Yearly Totals • 2013 -2012 2011 2013 • 9 Vehicle Searches -Narcotics • 7 Building Searches • i Warrant Arrest • 2 SuspectTracks • 4 School Narcotics Sniffs kf 2013 Kg Report 32 Calls for Service 2013 Points of Interest • Completed U.S.P.C.A Narcotics Certification 11/01/13 • Completed U.S.P.C.A. PD1 Certification 05/13/13 with a score of 607/70o qualifying for National Trials • Renewed DEA Narcotics License • Completed 127 Hours of in-service K9 Training 6/3/2014 4 Investigations • Each investigator had approximately 20-30 open cases at a time • Juvenile Investigator's role at the school was increased • Focus on training in technology as its role increases in criminal activity • Child protection, sexual assaults and white collar crime investigations were a focal point for the unit in 2013 Programs • School Resource Officer Stillwater Junior High—Investigator Andrea Olson devoting 20 hours per week in the school • National Night to Unite—Officer Dan Young • Firearms SafetyTraining—Sergeant Steve Hansen • Motorcycle Unit—Officer Brent Campbell (summer 2014) • Police Reserve Unit—Officers Ryan Mitchell and Chyrisse LeMoine • Crime Mapping 6/3/2014 5 Night to Unite Neighborhood Watch WARNING NEIGHBORHOOD WATCH PROGRAM IN FORCE WE IMMEDIATELY REPORT ALL SUSPICIOUS ACTIVITIES Crime Prevention Officer DanYoung • Education and Training Crimes Against the Elderly Shoplifting Prevention (downtown businesses) School Presentations Youth Group Tours Brochures, Books and Pamphlets on a wide range of crime prevention topics (available to the public) Firearms Safety Training • October 2013 Stillwater PD sponsored another annual DNRYouth Hunting and Firearms Safety Course that had 20 students from the Stillwater area • The course consisted of 6 classroom session and one field/range day • Topics covered: safe firearm handling, hunter responsibility and ethics, wildlife identification, first aid and survival, Hunting state laws and city ordinances • 15 instructors and assistants from SPD made the course a success once again. Instructors included officers/reserves/csos/retired employees 6/3/2014 6 02-23-2013 to 04-04-2013 Csrdinanoo Violations/Nuisarecc issues 2013 Ordinance Violations ▪ -au mOor vWuns� Crlma,_lypo -+ Abnnaonnal,l k Yafli0 P,.3 y r Cr)m ••• Fsol Goan Up AnInval noon On an nl, nn r 9iuu®war. .4.6c Agamagssamia Pm/any • ...moons SVUCturu,Bull0tno en Propany \`r ,J3 102 Ilk 226 2f2 Crime Mapping it 1m s'.52. o HW'f pl W. 300 ' 3126 g tgl�,:.e ,,se, Pr. .E. re. EJgK Gei_,, S, �� y. g� 'L'11 ; ... n� 1st^ $ �. T `4 23 Ni fes, ,g i ...5,rM P to j$ _. a13 275 r13 flanaay. 04-02-201211:5255.5505110. Bar Crines t1pAata —Nam, Cfifwl3 .400ed.. 4013 Bar and t 1grfer Incidarefa/Qrlrrraa dip Ounraeny coo.. a ralr _ i uommaaaa Psnrtsi mgr.* au. w Navbet G rime_ TaPa � naea sr�aa ri 0abxad Ps tV rf.�A.fan Pr.ny1-1 Grime Data Legend 2013 1.011oe Crime pato coil oMrer values crlrr,e type i Cami•mnda19oOlary Y 12.12010011-11.0p5.0505 fie.ldenli.t Burglary Tneft frons wrsrfe - Tamper with Motor Vehicle Crime Mapping Mop by Hunter Julien #243 6/3/2014 7 2013-2014 Personnel Changes • Retirement of Craig Peterson as Captain • Nate Meredith promoted to position of Captain • Brian Bruchu promoted to Sergeant • Retirement of Patrol Officer Brad Allen • Brent Campbell hired as Patrol Officer • Retirement of Leo Miller Nuisance Officer • Hunter Julien hired as Patrol Officer from Community Resource Officer position (2014) ▪ John Stringer hired as new Community Resource Officer (2014) 2014 Goals and Initiatives • Implementation of new Records Management System Tiburon • Planning of new Law Enforcement Facility 6/3/2014 8 6/3/2014 9 EXHIBIT "A" TO RESOLUTION #2014-089 Page 1 LIST OF BILLS Abrahamson Nurseries Action Rental Inc. Arch of Angels Preschool Cheryl Olsen Aspen Mills Bald Eagle Sportsmens Assoc. Bryan Rock Products Inc. C & H Distributors LLC Carquest Auto Parts CDW Government Inc. Century Link Century Power Equipment Cities Digital Solutions Comcast Crayne Chris Daniels Christina ECM Publishers Environmental Equipment & Services Fastenal Company Fun Jumps HAF Construction Harris Services LLC Holiday Credit Office Jefferson Fire and Safety Inc. Joel Smith Heating 7 AC Inc John Deere Landscapes Kopel Chris Lamke Jay Loffler Companies Inc. M.J. Raleigh Truck Co. Mansfield Oil Company Marshall Electric Company Menards Midwest Fence Minnesota Department of Health MN Dept of Transportation MSP Outdoor Services Inc My Alarm Center NAPA Auto Parts National Animal Control Assn Training Natural Resource Group LLC Needels Supply Inc. Northland Graphics Performance Plus LLC Quill Corporation RDO EQUIPMENT CO. Mulch for rain gardens Mixing trailer and concrete Park Deposit Refund Uniforms Range charges Fine ag lime enp Fire extingguisher Auto parts and supplies Ink cartridges Phone Supplies LaserFiche annual support Internet, TV, Voice Reimburse for training expenses Park Fee Refund Park & rec cancelled meeting Gutter brooms Supplies Dunk tank and velcro wall Grading Escrow Refund Repair at rec center Fuel Fireade Refund of permit Airless paint sprayer Reimburse for Title round punch shields Parking violation Refund Network computer support Sand Fuel Replace timers Supplies Fence Hospitality fee Traffic signal maint Yard clean up Alarm Monitoring Services Auto parts and supplies Animal control course Parking ramp Cleaning chemicals Stamps Screening Supplies Knife element oilfilter 333.00 180.00 100.00 262.24 275.00 526.39 67.27 190.70 170.48 119.69 99.90 8,683.00 540.70 27.94 100.00 17.40 420.00 230.38 400.00 5,000.00 256.60 54.14 475.00 84.50 2,349.01 188.90 30.00 67.50 336.13 4,319.67 209.00 347.43 14,618.00 35.00 65.80 4,322.50 84.87 730.00 525.00 11,555.87 1,030.33 670.84 1,009.06 209.97 155.50 EXHIBIT "A" TO RESOLUTION #2014-089 Page 2 RiedelI Shoes Inc. Rose City Sign Company Sams Marine Inc Sentry Systems Inc. Springbrook Software Inc. Sprint PCS St. Croix Boat and Packet Co. St. Croix Harley-Davidson Stillwater Motor Company T.A. Schifsky and Sons Telemetry and Process Controls Tessman Seed Co. St. Paul Titan Machinery Tri-State Bobcat Tri-State Pump and Controls Inc. USAble Life Valley Trophy Inc. Verizon Wireless Viking Auto Sprinkler Co. Wahl Thomas WalMart Community Washington County Recorder WET Technology Inc. Ziegler Inc. LIBRARY Baker and Taylor Brodart Co Comcast Fremming Susan E Friends of the Saint Paul Public Library Midwest Tape Office of MN IT Services Paper Roll Products Petrie Angela Quill Corporation Stillwater Public Library Foundation Toshiba Business Solutions Washington County Library CREDIT CARDS Tom Ballis Active 911 Port Supply West Marine USPS Skates Parking lot sign and pay machine repair Repair engine Mercury 225 hp Alarm monitoring HR Online ESS Contract Cell phone Ramp cleaning & arena billing Repair Supplies Fine asphalt Service Chemicals Extra keys for loader Filters Float and filter assembly Term Life Insurance Retirement plaque CeII phone Inspection AeroVator Parts Binders and USB drives Assessing Service Fee Chemical for condensor Engine radiator repair Materials Materials Telecommunications Staff reimbursement Strategic planning Materials Telephone General Supplies Staff Development General supplies Reimbursement Maintenance Contract Materials Subscription Oil Postage 124.24 1,332.36 613.40 150.53 600.00 96.00 34,952.99 1,533.88 914.53 110.98 3,984.60 307.76 17.73 134.40 376.53 422.40 73.60 1,476.77 1,024.00 757.64 76.55 96,160.11 962.27 4,046.96 42.82 571.81 56.90 31.00 4,000.00 824.55 339.20 89.95 396.00 320.39 350.00 43.55 637.30 65.58 74.94 12.70 EXHIBIT "A" TO RESOLUTION #2014-089 Page 3 Larry Hansen Auto Glass Express Grandview Lodge GTS Education Incord Ltd Sign Cads Systems MAY MANUALS Eastman Angela Postmaster Xcel Energy ADDENDUM Campbell Brent Clark Dan Delta Dental Emergency Automotive Tech Emergency Medical Products Fury Motors L3 Communications Magnuson Law Firm MN CBA MN Dept of Pub Safety DVS Stillwater Medical Group Viking Inductrial Center Washington County Wulfing David Xcel Adopted by the City Council this 3rd Day of June, 2014 Rear window of squad Lodging for conference Conference Polyester twist sand cord Maintenance Agreement Event Coordinator Utility Billing Postage Energy Reimburse for fuel Custodian COBRA Repairs Squads Hand held pulse OX with adult sensor Repairs to squad Equipment for squad Professional Service Courses Title Ap Forfieture Doctor fees Oxygen Sensor Special Assessment Fee Reimburse for K9 boarding Electricity , Gas 416.72 201.78 225.00 97.00 902.50 2,242.00 2,836.36 17,952.65 52.54 1,057.50 210.50 380.00 634.50 2,493.08 16,026.00 7,863.14 380.00 20.75 87.00 378.53 6,258.00 70.00 28,485.11 TOTAL 308,852.29 MINNESOTA DEPARTMENT OF PUBLIC SAFETY Alcohol & Gambling Enforcement Name of organization Minnesota Department of Public Safety Alcohol and Gambling Enforcement Division 444 Cedar Street, Suite 222, St. Paul, MN 55101 651-201-7500 Fax 651-297-5259 TTY 651-282-6555 APPLICATION AND PERMIT FOR A 1 DAY TO 4 DAY TEMPORARY ON -SALE LIQUOR LICENSE Address Name of making application t *i/C ,,0- 111 City ( , —CA Business phone Date organized State Tax exempt number Minnesota Date set ups will be sold SI"Ai\iS/ .(---€fileilf*Xf Organization officer's name Type of organization Club El Charitable City X flAickeLeAle..../ Add New Officer Location where permit will be used. If an outdoor area, describe. e4e4A Zip Code Home phone Religious LJ Other non-profit State Zip Minnesota If the applicant will contract for intoxicating liquor service give the name and address of the liquor license providing the service. If the applicant will carry liquor liability insurance please provide the carrier's name and amount of coverage. APPROVAL APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL AND GAMBLING ENFORCEMENT City/County Date Approved City Fee Amount Permit Date Date Fee Paid Signature City Clerk or County Official Approved Director Alcohol and Gambling Enforcement NOTE: Submit this form to the city or county 30 days prior to event. Forward application signed by city and/or county to the address above. If the application is approved the Alcohol and Gambling Enforcement Division will return this application to be used as the permit for the event. Page 1 of 1 JUN -03-2014 10:42 Washington ou�.ty June 3, 2014 WASH CTY ADMIN 651 430 6017 P.002 Mr. David T. Magnuson City of Stillwater Attorney 324 Main Street South, Suite #260 Stillwater, MN 55082 Re: City of Stillwater Tax Increment Financing District #11 Dear Mr. Magnuson: Board of Commissioners Fran Miran, District 1 Ted Bearth, District 2 Gary Kriesel, District 3 Autumn Lehrke, Chair, District 4 Lisa Weik, District 5 Thank you for the opportunity to provide comments concerning the establishment of tax increment financing (TIF) district #11 within the City of Stillwater for a planned redevelopment to include a hotel, restaurant and retail spaces. Washington County recently adopted an economic development strategic plan. The plan identifies the county's intent to support the economic development efforts of our cities and other partners that help sustain a premier quality of life for our residents, expands the county tax base, and that creates and sustains living wage jobs across all employment sectors. Pursuant to Minnesota Statute 479.175, subdivision 2, and eons stent with the county's economic development strategic plan, Washington County submits the following comments: 1. The County Board supports the city's effort to redevelop the downtown area included in this tax increment financing district to increase the tax base and facilitate the creation of additional jobs, especially those jobs that are high -paying, livable wage positions. 2. The TIF district proposal has been reviewed by our Taxation Division staff and no administrative issues were identified. 3. The TTF district proposal has been reviewed by our Public Works DepartnZent and they did not identify any significant impact to the county's transportation system. We appreciate the opportunity to provide comments on the proposed district. We request that these comments be incorporated into the record at the public hearing on June 3, 2014. Sincerely, evin Corbrid Deputy County Administrator c Washington County Board of Commissioners Larry Hansen, City of Stillwater Government Center • 14949 62nd Street North • P, 0, Box 6 • Stillwater, MN 550e2-0006 Telephone: 651-430-6001 • Fax: 651.430-6017 • rrY: 6514430-6246 www.co,washington,mn,us Washington County is an equal opportunity organization and employer TOTAL P.002 APPROVAL OF ASSESSMENT POLICY WHEREAS, the City Council originally passed an assessment policy statement on May 3, 1993; and WHEREAS, City has discussed and reviewed proposed amendments to the assessment policy on May 20, 2014; and WHEREAS, the final amended assessment policy statement was presented to Council on June 3, 2014. NOW THEREFORE BE IT RESOLVED that the City Council hereby adopts the Assessment Policy Statement dated May 4, 1993 and amended on June 3, 2014. Adopted by the City Council of the City of Stillwater, Minnesota this 3`d day of June, 2014 CITY OF STILLWATER Ken Harycki, Mayor ATTEST: Diane F. Ward, City Clerk ASSESSMENT POLICY STATEMENT CITY OF STILLWATER ADOPTED MAY 4, 1993 AMENDED JUNE 3, 2014 TABLE OF CONTENTS Section I - General Policy Statement 1 Section II - Methods of Assessment 4 Section III - Improvement Type and Cost Apportionment 10 Section IV - Assessment Conditions 13 Section V - Supplemental Assessment Policy Guidelines 15 Section VI — Definitions 18 Exhibit "A" Summary of Actions and Resolutions 20 0 CITY OF STILLWATER ASSESSMENT POLICY FOR LOCAL IMPROVEMENTS SECTION I - GENERAL POLICY STATEMENT A. PURPOSE. The purpose of this Assessment Policy is to provide a fair and equitable manner of recovering and distributing the cost of public improvements. While there is no perfect assessment policy, it is important that assessments be implemented in a reasonable, consistent and fair manner. There may be exceptions to the Assessment Policy when unique situations or circumstances exist which may require special consideration and discretion by the City Council. Therefore the assessment policy is intended to serve as a guide for a systematic assessment process in the City of Stillwater. B. PROCEDURE. The procedures used by the City of Stillwater ("City") for levying special assessments are those specified by Minnesota Statutes which provide that all or a part of the cost of improvements may be assessed against benefitting properties. The procedures for local improvements are summarized in Exhibit "A". While establishing the authority by which communities may proceed to construct public facility projects, the statutes provide no guide as to how costs are to be apportioned. Therefore, it is the responsibility of the local legislative body to establish a fair and reasonable method by which properties will be assessed. C. ASSESSMENT CRITERIA. Three basic criteria must be satisfied before a particular parcel can be validly assessed. They are: 1. The land must have received special benefit from the improvement. 2. The amount of the assessment must not exceed the special benefit. 3. The assessment must be uniform in relation to the same class of property within the assessment area. The primary test for determining the validity of a special assessment is whether the improvement for which the assessment was levied has increased the market value of the property against which the assessment operates in at least the amount of the assessment. It is important to recognize that the actual cost of extending an improvement past a particular parcel is not the sole determining factor in determining the amount to be assessed. An exception might be a project initiated by a single property owner/developer where market value increase may not be a relevant factor given the nature of the improvement. Another test for determining the validity of a special assessment is whether the assessment is based on a uniform method for all like classes of property. For example, the use of a front 1 foot assessment for some properties and the use of a per lot assessment for other properties of the same class for a related improvement could result in a non-uniform assessment rate which could mean the assessment would be set aside or could be thrown out by the courts. D. INITIATION OF IMPROVEMENTS. Public Improvements may be initiated in the following manner: 1. Council Initiated. The City Council, on its own motion and without petition, may order the improvement on at least a 4/5 vote of the City Council. However, the City must still follow all statutory provisions related to the local improvement process. 2. Property Owner Petition. The City Council may decide, by simple majority, on an improvement after receiving a petition for said improvement from the owners of not Tess than 35 percent (35%) of the properties abutting on the streets named in the petition as the location of the improvement. In addition, all owners of real property abutting upon any street named as the location of any improvement may petition the City Council to construct the improvement and to assess the entire cost against their property. In the latter case, the City Council may, without a public hearing, adopt a resolution determining such fact and ordering the improvement. However, it is advisable to conduct public hearings on the improvement to avoid misunderstanding by the petitioners and to also inform the general public about the nature of the project. Proper waiver of assessments and/or agreements should be obtained from each property owner affected by the improvement. 3. Developer Request. A developer who is the owner of all the property within the proposed subdivision may petition the City Council to construct the improvement and to assess the entire cost against the developer's property pursuant to Minnesota Statutes. In such event, the City may, without a public hearing, adopt a resolution determining such fact and ordering the improvement. However, a developer's agreement, including a valid and enforceable waiver of assessments if appropriate, shall be negotiated and executed prior to said authorization. It may also be advisable to conduct public hearings on the improvement to avoid misunderstanding by the petitioners and to also inform the general public about the nature of the project. E. PROJECT COSTS. Project costs shall include, but not be limited to, the following: 1. Construction costs (day labor or contractual). 2. Engineering and consulting fees. 3. Administrative fees. 4. Right-of-way acquisition/condemnation costs. 5. Legal fees. 2 6. Capitalized interest. 7. Financing costs. The entire project shall be considered as a whole for the purpose of calculating and computing an assessment rate. However, project costs for work of a dissimilar nature (i.e., where a project contains different types of work such as street resurfacing in one project area and street reconstruction in another area)shall be calculated separately and assessed separately according to benefit received. If City staff has doubt as to whether or not the costs of the project may exceed the special benefits to the property, the City Council should obtain such appraisals as may be necessary to support the proposed assessment. Appraisals may be obtained any time after the improvement has been ordered including prior to actually awarding the bid or entering into a contract for the work. The City Council may also conduct assessment hearings and actually adopt the assessment roll any time after the improvement hearing and before a contract for the work is awarded. The Assessment Policy, in brief summary, consists of six (6) main sections addressing General Policy Statement, Methods of Assessment, Improvement Type and Cost Apportionment, Assessment Conditions, Supplementary Guide section and a Definition section. A summary of actions and resolutions is also included as Exhibit "A". 3 SECTION 11 - METHODS OF ASSESSMENT The nature of an improvement determines the method of assessment. The objective is to choose an assessment method which will arrive at a reasonable, fair and equitable assessment which will be uniform upon the same class of property within the assessed area. The most frequently recognized assessment methods are: the unit assessment, the front footage assessment and the area assessment. Depending upon the individual project, any one or a combination of these methods may be utilized to arrive at an appropriate cost distribution. City staff will consider all methods and weigh their applicability to the project and present a recommendation to the City Council in the form of a mock assessment roll (or rolls). A description of each assessment and its corresponding policy application is presented. A separate section (Section III) will identify the appropriate matchup of method with a specific type of project and analyze why each is generally used. A. Unit Assessment. A unit assessment shall be derived by dividing the total project cost by the number of Residential Equivalent Density (RED) units in the project area. A RED unit is defined as a single family residential unit. All platted and unplatted property will be assigned RED unit values equivalent to the underlying zoning. When the existing land use is Tess than the highest and best permitted use, the Council may consider the current use as well as the full potential of land use in determining the appropriate number of RED units. Otherwise, the following RED chart will apply on a per unit basis, subject to adjustment by the Council for any inequities: Single family 1.00 RED Duplex 1.00 RED Condominium 0.80 RED Multifamily (3 units or more) 0.80 RED Townhouse 0.80 RED Commercial RED units = SAC units Industrial RED units = SAC units House Apartment 1.00 RED +0.2 RED for each additional unit The unit approach has proven to be the best method in those instances whereby the improvement largely benefits everyone to the same degree and the cost of the improvement is not generally affected by parcel size. B. Area Assessment. The assessable area shall be expressed in terms of the number of acres or the number of square feet subject to assessment. When determining the assessable area, the following considerations will be given: 1. Ponding Assessment Consideration. Lakes, ponds and swamps may be considered a part of the assessable area of a parcel. However, the property owner has the option of 4 providing a storm water pending easement to the City for the land under the lake, pond or swamp if integrated into the storm water management system. If such pending easement is accepted based upon its functional integration into the storm water management system, a reduction in area equal to the area of the easement for the lake, pond or swamp will be subtracted from the gross area assessment of the parcel. Lots utilizing a pending area for the purpose of density credit shall be charged for that area within the portion of the easement necessary to meet minimum lot standards. 2. Road Right -of -Way Assessment Consideration. Up to 20 percent (20%) of the gross acreage may be deducted for street right- of -way purposes within unplatted parcels of five acres or more depending upon the parcel configuration. Parcels of Tess than five acres may not qualify and may be assessed full acreage. The reason for this size restriction is that, in most instances, parcels of less than five acres cannot support an internal public road system. 3. Park Dedication Assessment Consideration. When park land is dedicated as part of a residential development, as required by Subdivision Code - Chapter 31.06, the developer shall not be assessed an acreage charge on the portion of land dedicated. C. Front Footage Assessment. The actual physical dimensions of a parcel abutting an improvement (i.e., street, sewer, water, etc.) shall NOT be construed as the frontage utilized to calculate the assessment for a particular parcel. Rather, an "adjusted front footage" will be determined. The purpose of this method is to equalize assessment calculations for lots of similar size. Individual parcels by their very nature differ considerably in shape and area. The following procedures will apply when calculating adjusted front footage. The selection of the appropriate procedures will be determined by the specific configuration of the parcel. All measurements will be scaled from available plat and section maps and will be rounded down to the nearest 1/2 foot dimension with any excess fraction deleted. Categorical type descriptions are as follows: 1. Standard Tots 2. Rectangular variation lots 3. Triangular lots 4. Cul-de-sac lots 5. Curved lots 6. Irregularly shaped lots 7. Corner lots 8. Flag lots 9. Double frontage lots 10. Large tracts The ultimate objective of these procedures is to arrive at a fair and equitable distribution of cost whereby consideration is given to lot size and parcels are comparably assessed. 5 1. Standard Lots. In this instance, the adjusted front footage for rectangular Tots will be the actual front footage of the lot. The frontage measured shall be the lot width at the front lot line. MAIN AVENUE 50' A 90' B Adj. Front Footage EXAMPLES LotA=50' Lot B = 90' 2. Rectangular Variation Lots. For a lot which is approximately rectangular and uniform in shape, the adjusted front footage is computed by averaging the front and back sides of the lot. This method is used only where the divergence between front and rear lot lines is 20 feet or less. MAIN AVENUE 90' A 110' 70' B 80' Adj. Front Footage EXAMPLES Lot A = 90 + 110 = 100' 2 Lot B = 70 + 80 = 75' 2 3. Triangular Lots. For a triangular shaped lot, the adjusted front footage is computed by averaging the front and back lot lines. The measurement at the back lot line shall not exceed a maximum distance in depth of 150 feet. MAIN AVENUE 6 Adj. Front Footage EXAMPLES Lot A = 100 + 40 = 70' 2 LotB=40+130=85' 2 Lot C = 120 + 0 = 60' 2 4. Cul -de -Sac Lots. The adjusted front footage for those lots that exist on cul-de-sacs will be calculated at the midsection of the lot• at the most reasonably defined and determinable position. This line will be computed by connecting the midpoints of the two side lot lines. Or, if the Tots are similar in nature and configuration, a common lot width, such as the standard set back of 30 may be assigned based upon an evaluation of typical Tots within the subdivision. A B \ 0 00 Adj. Front Footage EXAMPLES LotA=75' Lot B = 110' Lot C = 80' 5. Cuved Lots. In certain situations such as those where lots are located along meandering trail system streets, read patterns create curvilinear frontages. In such instances, the adjusted front footage will be the width of the lot measured at the midpoint of the shortest side lot line. Adj. Front Footage EXAMPLES LotA=70' Lot B = 90' Lot C = 150' 6. Irregularly Shaped Lots. In many cases, unplatted parcels that are legally described by a metes and bounds description are irregular and odd shaped. The adjusted front footage will be calculated by measuring the lot width at the 30 foot building setback line. MAIN AVENUE a m 115' 140' 125' B C 7 Adj. Front Footage EXAMPLES LotA=115' Lot B = 140' Lot C = 125' 7. Corner Lots. a. On a corner lot, 100 percent (100%) of the adjusted front footage of the short side will be assessed and 35 percent (35%) of the adjusted front footage of the long side will be assessed for improvements benefitting the respective sides. The length of the property sides and not the orientation of the principal building shall determine adjusted front f90tage in this case. A series of lots (two or more) under common ownership shall be considered as one parcel or lot for determining which is the short or long side of a property. However, this shall only apply to series of lots on which only one principal building is situated. A 125' N 1.11 B N ci 150' 100' MAIN AVENUE (Side 1) Adj. Front Footage EXAMPLES Lot A Side 1 = 43.75' Side 2 = 95' Lot B Side 1 = 87.5' Side 2 = 125' b. General Commercial Zoned Corner Lots. No allowance relief will be granted because of the higher inherent property value associated with improved traffic frontage and greater visibility along business district and industrial park intersections. The adjusted front footage shall be the entire frontage measured along the setback line comprising the building envelope. A 130' 25 �n ti 0 m 155' N N 0 25' B 275' MAIN AVENUE 300' Adj. Front Footage EXAMPLES Lot A = 280' Lot B = 390' 8. Flag Lots. Properties which utilize a narrow private easement or maintain ownership of access to their property exceeding a minimum length of 125 feet, thereby having a small frontage on a street, will be assigned an adjusted front footage of 80 feet. This 8 dimension is consistent with the subdivision ordinance which prescribes such length as the minimum lot frontage along a public roadway. The adjusted front footage for flag Tots whose driveway access is under 125 feet will be measured at the building setback line from the access terminus. MAIN AVENUE 170' w D z w > a z a 2 Adj. Front Footage EXAMPLES LotA=80' Lot B = 90' 9. Double Frontage Lots. If a parcel, other than a corner lot, comprises frontage on two streets and is eligible for subdivision, then an adjusted front footage assessment will be charged along each street. For double frontage Tots lacking the necessary depth for subdivision, only a single adjusted front footage will be computed. MAIN AVENUE iln CN N 110' A 110' MAIN AVENUE 0 N 80' B 9 Adj. Front Footage EXAMPLES Lot A = 220' Lot B = 80' SECTION III - IMPROVEMENT TYPE AND COST APPORTIONMENT A. Street Reconstruction. These projects consists of reconstructing the street section down to the sub base if necessary. New concrete curb and gutter may be installed in areas where it does not exist and/or replaced in areas where the concrete curb is in poor condition. The condition of the existing drainage system, storm sewers, watermains, sanitary sewers and sidewalks will be looked at and, if necessary will be replaced or newly installed. 100% of all street related costs associated with street reconstruction shall be assessed including but not limited to asphalt removals, asphalt, sub -grade, sub -base. All other costs will be assessed according to the cost apportionment list below. However, the overall assessed cost shall not exceed 70% of the total project costs. B. Mill and Overlay. Mill and Overlay or street resurfacing is where a new bed of road material such as bituminous is installed over an existing paved road to a specific thickness. New concrete curb and gutter may be installed in areas as needed or where the existing concrete curb is in poor condition. The condition of the existing drainage system, storm sewers, watermains, sanitary sewers and sidewalks will be looked at and if necessary they will be and replaced or newly installed as part of a mill and overlay project. 100% of all street related costs associated with street reconstruction shall be assessed including but not limited to asphalt removals, asphalt, sub -grade, sub -base. All other costs will be assessed according to the cost apportionment list below. However, the overall assessed cost shall not exceed 80% of the total project costs C. Sidewalk. Sidewalk improvements may be done in conjunction with a street reconstruction or as a separate project. In any event, 50 percent (50%) of the cost of sidewalk improvements shall be assessed to benefitted properties on a front footage basis. The remaining cost shall be recovered by means of the general ad valorem property tax paid by the entire community or by other funds that may become available to the City for infrastructure cost recovery D. Sealcoating. Sealcoating shall be -treated as a general maintenance expense and shall be paid from the City's current operating funds. No assessments will be levied for sealcoating projects. E. Sanitary Sewer, Storm Sewer and Water Mains. Repair and replacement of sewers, sanitary and storm and water main is usually done in conjunction with a street reconstruction 10 project and the cost of this work should be included as part of the total major street project cost. 50% of the cost of this work shall be assessed, including curb and gutter. The remaining cost shall be recovered by means of the general ad valorem property tax paid by the entire community or by other funds that may become available to the City for infrastructure cost recovery. If it is determined that the repair and replacement work results in a greater benefit to some properties and not to others, the Council should consider establishing a different assessment rate based on the benefits received. F. Sanitary Sewer and Water Trunk Improvements. Trunk sewer and water mains are usually designed to carry larger volumes of flow than are necessary within an immediate property area in order to serve additional properties beyond the area of their immediate placement. Therefore, 100 percent (100%) of the cost of trunk improvements will be assessed on a unit basis to all properties within a district deemed to be benefitted from the trunk improvements. G. Sewer and Water Services. Individual sewer and water services benefit only the properties they serve and 100 percent (100%) of their cost shall be assessed to the property for which they are installed. H. Drainage Improvements. Storm drainage and ponding/basin systems are usually constructed to serve a specific drainage or "watershed" district. The cost of drainage improvements shall be 100 percent (100%) assessed to the properties within the drainage district. The cost may also be levied on an ad valorem tax basis to the properties within the district as provided by Minnesota Statutes. Storm sewer reconstruction normally takes place together with street reconstruction projects and the costs shall be assessed in accordance with the assessment policies related to street improvements. I. Special Consideration. Special consideration shall be given to the "age" of a street or utility system when determining the proportion of cost to be assessed to benefitted properties. If it is necessary to reconstruct or resurface a street or perform major repair/replacement work on sewer and water utilities before a reasonable amount of time (15 to 20 years for resurfacing, 20 to 25 years for partial reconstruction and 25 to 30 years for total reconstruction} the assessment shall be calculated on a pro -rata basis. The remaining cost shall be recovered by means of the general ad valorem property tax paid by the entire community or by other funds that may become available to the City for infrastructure cost recovery. J. Industrial Park Assessments. The Industrial Park is generally bounded by Orleans Street to the north, Greeley Street to the east, CSAH County Road 5 to the west and Highway 36 to the south. 11 The following assessment methods shall be used for Industrial Park improvement projects: 1. Area Assessment - a. Total or partial street reconstruction projects b. Water and sewer mains c. Storm sewer/drainage. d. Trunk sanitary sewer. 2. Unit Basis - a. Sewer services b. Water services 3. Front Footage Method a. Street Reconstruction Projects b. Mill and Overlay Projects c. Watermain d. Storm Sewer e. Sanitary Sewer One hundred percent (100%) of the cost of improvements shall be assessed to benefitted properties except that the assessment for street construction costs shall not exceed $9,800 per acre. This assessment rate shall be adjusted from time to time based on the Engineering News Record Index. The remaining cost shall be recovered by means of the general ad valorem property tax paid by the entire community or by other funds that may become available to the City for infrastructure cost recovery. 12 SECTION IV - ASSESSMENT CONDITIONS A. Term of Assessment. The term of special assessments shall normally be for a ten (10) year period. However, in some cases the project costs could warrant either shorter or longer terms. For example, sidewalk improvements undertaken separately may be assessed for over a five (5) year period because the costs are usually nominal (under $2,000). On the other hand, some major reconstruction projects where several types of improvements are involved could lead to a very high assessment which could create a financial hardship if assessed for a ten (10) year term. A fifteen (15) to twenty (20) year term may be appropriate in this case. In any event, the assessment term should never exceed the potential life of the improvement. B. Interest Rate. The interest rate charged on assessments for all projects financed by debt issuance shall be one and one-half percent (1-1.2%) greater than the net interest rate of the bond issue or debt used to finance the improvement. This is necessary in order to ensure adequate cash flow when the City is unable to reinvest assessment prepayments at an interest rate sufficient to meet the interest cost of debt or when the City experiences problems of payment collection delinquencies. Interest on initial special assessment installments shall begin to accrue from the date of the resolution adopting the assessment. Owners must be notified by mail of any changes adopted by the City Council regarding interest rates or prepayment requirements which differ from those contained in the notice of the proposed assessment. C. Payment Procedures. The property owner has five available options when considering payment of assessments: 1. Tax Payment. If no payment is undertaken by the property owner, then special assessment installments will appear annually on the individual's property tax statement for the duration of the assessment term. 2. Full Payment. No interest will be charged if the entire assessment is paid within 30 days of the date of adoption of the assessment roll. 3. Partial Payment. The property owner has a one-time opportunity to make a partial payment reduction of any amount against his/her assessment. This option may only be exercised within the 30 -day period immediately following adoption of the assessment roll. 4. Prepayment. The property owner may at any time prior to November 15 of the initial year, prepay the balance of the assessment with interest accrued to December 31 of 13 that year. The property owner may also choose to pay the remaining assessment balance at any time, with the exception of the current year's installment of principal and interest. 5. D. Appeals Procedures. No appeal may be taken as to the amount of any assessment adopted unless a written objection signed by the affected property owner is filed with the city clerk's office prior to the assessment hearing or presented to the presiding officer at the hearing. The property owner may appeal an assessment to District Court by serving notice of the appeal upon the Mayor or city clerk within 30 days after the adoption of the assessment and filing such notice with the District Court within 10 days after service of the appeal upon the Mayor or city clerk. E. Reapportionment Upon Land Division. When a tract of land against which a special assessment has been levied is subsequently divided or subdivided by plat or otherwise, the City Council may, on application of the owner of any part of the tract or on its own motion, equitably apportion among the various Tots or parcels in the tract all the installments of the assessment against the tract remaining unpaid and not then due if it determines that such apportionment will not materially impair collection of the unpaid balance of the original assessment against the tract. The apportionment shall be done on the same basis as the original assessment unless another method of apportioning can be done with the owner's acceptance and if the apportionment will not materially impair collection of the unpaid balance of the assessment against the tract of land. In any case, the City Council may require furnishing of a satisfactory surety bond in certain cases as specified in Minnesota Statutes Section 429.071, Subd. 3. Notice of the apportionment and of the right to appeal shall be mailed to or personally served upon all owners of any part of the tract. F. Senior Citizen Deferral. Chapter 56.OS of the Stillwater City Code allows the City Council, at its discretion, to defer the payment of any special assessment for local improvements constructed by the City when it determines by a three-fifths (3/5) vote that the property being assessed is homestead property and that one or more of the owners of the property is sixty-two (62) years of age or over and that the payment of the assessment would be a hardship for the owner thereof. The interest for senior citizen deferral shall be at the same rate that the City sets for other property owners for the improvement. 14 SECTION V - SUPPLEMENTAL ASSESSMENT POLICY GUIDELINES A. Areas Partially Served by Utilities. Any tract of land, lot or parcel whereby a project improvement, such as a sewer or water lateral or ending street terminus, does not extend fully past or beyond the property shall be considered served, benefited and assessed accordingly. The current special assessment shall be subject to an adjusted front footage not to exceed 150 feet and a maximum current acreage of 2.5 acres, provided said assessment does not exceed the special benefit conferred upon the affected property. If an improvement benefits, non -abutting properties which may be served by the improvement when later extensions or improvements are made but are not initially assessed, the City may reimburse itself for all or part of the costs incurred by assessing those non -abutting properties at the time of the later extensions or improvements. However, proper notice must be given of that fact at the time of making the extensions or improvements to the previously unassessed non -abutting properties. The City may also establish "hookup" charges to recover costs of sewer and water main improvements not initially assessed. B. Preliminary Plat Consideration. Land could be considered for assessment based on preliminary plat consideration. This consideration will occur only when the following scenarios exits: (1)the City Council has approved a preliminary plat, and (2) a public hearing ordering the improvement project has not yet occurred. In the event this exists, assessment frontages may be calculated based upon the proposed lot configuration within the preliminary plat. Road right-of-way within the proposed street alignment will not be subject to assessment. C. Tax Exempt Property. Other than land under City ownership, there are three categories of tax exempt properties. Said properties shall be assessed as follows: 1. Churches and schools shall be assessed in the same manner as commercial and industrial zoned property, as long as the assessments do not exceed the special benefits conferred. Acreage assessment shall be based upon the gross acreage of the site. Adjusted front footage shall be similarly calculated along the building setback line in its entirety. 2. State land is normally exempt from assessment unless otherwise negotiated or agreed upon by the affected state agency. 3. County land is subject to assessment and shall be assessed in the same manner as commercial and industrial zoned property, as long as the assessments do not exceed the special benefits conferred. 15 D. Municipal Property Assessments. City owned property is divided into three classifications for the purpose of determining assessment participation. They are: 1. Public facility land 2. Public right-of-way 3. Park land Public facility property is defined as land utilized for public buildings such as city halls, fire halls, libraries, maintenance garages, municipal parking lots, etc. Public facility property within a project area will participate in the total assessable cost of an improvement and will be treated in the same manner as any other benefited parcel. Public right-of-way property consisting of all City acquired easements, subject to fee title, for the specific purpose of utility placement or street construction will be exempt from assessment. Park land assessment eligibility is further categorized according to the following descriptions: 1. "Community Parks" are characterized by a higher degree of intense public use and are relatively Targe in area size. They are normally associated with athletic events and sporting activities, i.e., softball, football, baseball, hockey, etc. Park lands of this nature will be subject to assessments. Because community parks provide citywide benefit, the cost of these assessments shall be recovered be a special levy upon the ad valorem taxes. 2. "Neighborhood Parks" accommodate open space objectives within residential development and are passive in use as indicated by such features as playground structures. Because neighborhood parks are commonly used by the immediate residents of the area, such park land will not be assessed if it .comprises Tess than 25 percent of the aggregate project area. Larger parks representing an area greater than 25 percent of the aggregate project area shall participate in the assessment process in the same manner as community parks. 3. "Parkland Dedication" is required either in the form of cash in lieu of land or a land grant. The developer shall be responsible for the payment of all special assessments existing at the time of dedication. Depending upon the amount of land involved, the development shall not be assessed trunk acreage for that portion exceeding the minimum percentage dedication requirement for park purposes. 16 E. Tax Forfeiture Assessments. When a parcel of tax forfeited land is returned to private ownership, and the parcel is benefited by an improvement for which special assessments were cancelled because of the forfeiture, the City may, upon notice and hearing as provided for the original assessment, make a reassessment or a new assessment as to the parcel in an amount equal to the amount remaining unpaid on the original assessment. F. First Serve Situations. If the plans of the City and a developer coincide in regard to utility installations on certain properties, the plans of the City shall receive first consideration. In that event, the City may, upon notice and hearing, assess all unplatted parcels according to this Policy if the improvements are approved prior to hardshell consent of the unplatted properties. G. New Subdivisions. The improvement costs of new subdivisions shall be the sole responsibility of the property developer except consideration shall be given for assessing any other properties that receives special benefit from the improvements. H. State Aid Participation. 1. Residential Improvements - Residential lots abutting and having access to collector streets (streets which are designated as part of the City's Municipal State Aid System and qualify for state aid funding) shall be assessed the residential equivalent of a standard City street, normally consisting of a 30 foot paved roadway within a 50 foot right-of-way. This cost shall be determined by the City Engineer during the preparation of the feasibility report. The difference in cost shall be reimbursed by applicable state aid funds. In no event shall the assessment exceed fifty percent (50%) of the project cost. 2. Industrial Park Improvements - Land abutting and having access to streets in the industrial park shall be assessed in accordance with Section III, J, whether or not the street is designated MSA. Any MSA funds received by the City for work in the Industrial Park shall be "pooled" and used to offset the cost of the street improvements within the Industrial Park Area. 17 SECTION VI - DEFINITIONS Adjusted Front Footage The number of feet actually utilized in calculating an assessment for a particular property. This may differ from the actual front footage of the property. Assessment The dollar amount charged against a property receiving an improvement benefit. Condominium Drainage District Lateral Multifamily Nuisance Abatements Individual ownership of a unit in a multi -unit structure (similar to an apartment building). A special relationship exists whereby the individual owns the actual air space within the physical confines of the unit but not the barrier walls themselves. An area defined by the City Engineer which shall form the physical boundaries where benefit exists within a storm sewer project. Property to be included within a district shall be all land which contributes to storm water runoff, as well as land serving as a collector basin for storing such water. Natural geographical features normally form these boundaries. A lateral sewer is designated to collect the sewage from a project area for conveyance to a trunk facility. A water lateral is sized to provide water in sufficient volumes and pressure as required t serve a defined project area. A structure of more than two units, the primary purpose of which is to provide rental or leased living space to the general public. Building characteristics include common hallways for access purposes and a common parking lot. The elimination of a nuisance whereby the City acts on behalf of the property owner as authorized by ordinance to eliminate problems such as junk, weeds, dead trees, etc. The City may collect the charges for all or any part of the 18 Oversizing Public Improvement Townhouse Utility Improvement Area cost of eliminating any such nuisance by levying a special assessment against the property benefited. A pipe which is designed and constructed larger and/or deeper than necessary to serve a specific project area. A project undertaken by the City under the authority granted in MSA 429.021 for the purpose of installation of improvements such as street, curb and gutter, sewer, water, etc. A public hearing shall be conducted to determine the necessity and common good of the project as it affects the community. Upon authorization, the City will proceed with construction and administration of the project. Single family attached units in structures housing three or more contiguous dwelling units, sharing a common wall, each having separate individual front and rear entrances; the structure is that of a row -type house as distinguished from multiple - dwelling apartment buildings. A defined area within which all properties are deemed to have been served by an important project and are considered to receive the benefit. 19 EXHIBIT "A" SUMMARY OF SCHEDULE OF ACTIONS AND RESOLUTIONS FOR LOCAL IMPROVEMENT PROJECTS 1. Initiation of proceedings either by the Council or by petition of affected property owners. Owners may waive public hearing and submit "Agreement of Assessment and Waiver of Irregularity and Appeal." Adopt Resolution "Declaring Adequacy of Petition and Ordering Preparation of Report" (should be published because of appeal process) or, if not using petition, "Ordering Preparation of Report on Improvement (need not be published). 2. Preparation of report on the proposed improvement, submission to and approval by Council, Council then accepts the report and orders a Public Hearing. (When a petition signed by 100% of the landowners requests the improvement, the Council may order the improvement without a hearing.) Adopt Resolution "Receiving Report and Calling Hearing on Improvement" (need not be published). 3. After a public hearing, or if hearing is waived, adopt following Resolution: Adopt Resolution "Ordering Improvement and Preparation of Plans and Specs". 4. After submission to and approval by Council the following Resolution is required: Adopt Resolution "Approving Plans and Specifications, Ordering Improvement and Advertisement for Bids". 5. After receiving bids, Council will adopt the following Resolution awarding the bid: Adopt Resolution "Accepting Bid". (Need not be published). 6. After work is completed and receiving Engineer's recommendation for final acceptance, the following Resolution is adopted: Adopt Resolution "Accepting Work". 20 7. Assessment Proceedings: Adopt Resolution "Declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment". Adopt Resolution for "Hearing on Proposed Assessment" (need not publish resolution - but must publish and mail hearing notice. 8. After hearing and adopting assessment, adopt the following Resolution: Adopt Resolution "Adopting Assessment". (Need not be published.) 21 Memorandum Date: May 29, 2014 To: City Administrator Larry Hansen From: Chief John Gannaway Subject: Replacing K-9 Vehicle/Leasing New Unmarked Car Squad car #227 (2009 Dodge Charger), the K-9 squad, has significant mechanical issues. The engine needs to replaced, and we just replaced the front end in order to make the vehicle drivable. The only available police package type vehicle available in the Police Dept. fleet is Squad car #209, a black unmarked Ford SUV. We are proposing to take #227 out of service and replacing it with #209. When this happens, we will have to replace #209. We are requesting to replace it with a leased vehicle from Enterprise Leasing Company, whom you are aware that we have utilized to replace four unmarked police vehicles in the recent past. We cannot replace #227 with a leased vehicle as Enterprise does not deal with police package- type/pursuit rated vehicles. Normally, when we order vehicles from Enterprise, we have a wide variety of vehicles to choose from. But ordered vehicles take 6-8 weeks to build. Unfortunately in this case, we do not have the luxury of time to wait for a vehicle to built, so we need to order a vehicle that a dealer has in stock, so it limited our options. We have selected a 2014 Ford Explorer. The other vehicles available were either full-sized SUV's or smaller sedans or SUV's, but only had 4 cylinder engines, which are underpowered for law enforcement use. We will be trading in three police vehicles, which will be credited towards the new lease. The three vehicles are the current two vehicles utilized by the Reserves (which are scheduled to be rotated this year) and the K-9 squad. Enterprise has quoted us a conservative estimate of $22,000 credit towards the lease of the Ford Explorer. This is far more than we would receive selling the vehicles at the State Auction. The cost of the 2014 Ford Explorer will be $214.36 per month. We will finance this out of our maintenance budget for remainder of 2014, and then include it in our lease vehicle budget for 2015. Squad 209 will have to be converted to a K-9 vehicle, and will cost in the area of $4,000. This will be financed from our K-9 Fund (donations received), which has a balance of $6,000. enterprise fleet manageme Open -End (Equity) Lease Rate Quote Quote No: 2600729 Prepared For: City of Stillwater Meredith, Nate Unit # Year 2014 Make Ford Model Explorer Series Base 4dr 4x4 Vehicle Order Type In -Stock Term 60 State MN Customer# 475255 Date 05/30/2014 AE/AM JP8/HHT $ 30,106.40 $ 622.43 $ 352.75 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 22,000.00 $ 0.00 $ 0.00 $ 0.00 $ 8,106.40 $ 81.06 Depreciation Reserve @ 1.0000% $ 58.22 Monthly Lease Charge (Based on Interest Rate - Subject to a Floor)2 Capitalized Price of Vehicles Use Tax 7.1250% State MN Initial License Fee Registration Fee Other Capitalized Price Reduction Tax on Capitalized Price Reduction Gain Applied From Prior Unit Tax on Gain On Prior Security Deposit Extended Service Contract Total Capitalized Amount (Delivered Price) Order Information Driver Name Exterior Color (0 P) Ingot Silver Metallic Interior Color (0 I) Medium Light Stone w/Cloth Bucket Seats Lic. Plate Type Unknown GVWR 0 $ 139.28 Total Monthly Rental Excluding Additional Services Additional Fleet Management Master Policy Enrollment Fees $ 0.00 Commercial Automobile Liability Enrollment Liability Limit $0.00 $ 0.00 Physical Damage Management Comp/Coll Deductible 0 / 0 $ 75.08 Full Maintenance Programa Contract Miles 100,000 OverMileage Charge $ 0.0000 Per Mile Incl: # Brake Sets (1 set = 1 Axle) 2 # Tires 0 Loaner Vehicle Not Included $ 75.08 Additional Services SubTotal $ 0.00 $ 214.36 $ 3,242.80 $ 350.00 Use Tax 7.1250% Total Monthly Rental Including Additional Services Reduced Book Value at 60 Months Service Charge Due at Lease Termination Quote based on estimated annual mileage of 20,000 (Current market and vehicle conditions may also affect value of vehicle) (Quote is Subject to Customer's Credit Approval) Notes State MN Enterprise FM Trust will be the owner of the vehicle covered by this Quote. Enterprise FM Trust (not Enterprise Fleet Management) will be the Lessor of such vehicle under the Master Open - End (Equity) Lease Agreement and shall have all rights and obligations of the Lessor under the Master Open - End (Equity) Lease Agreement with respect to such vehicle. ALL TAX AND LICENSE FEES TO BE BILLED TO LESSEE AS THEY OCCUR. Lessee hereby authorizes this vehicle order, agrees to lease the vehicle on the terms set forth herein and in the Master Equity Lease Agreement and agrees that Lessor shall have the right to collect damages in the event Lessee fails or refuses to accept delivery of the ordered vehicle. Lessee certifies that it intends that more than 50% of the use of the vehicle is to be in a trade or business of the Lessee. LESSEE City of Stillwater BY TITLE DATE ` INDICATES ITEMS TO BE BILLED ON DELIVERY. 1 Capitalized Price of Vehicle May be Adjusted to Reflect Final Manufacturer's Invoice. Lessee Hereby Assigns to Lessor any Manufacturer Rebates And/Or Manufacturer Incentives Intended for the Lessee, Which Rebates And/Or Incentives Have Been Used By Lessor to Reduce the Capitalized Price of the Vehicle. 2 Monthly Lease Charge Will Be Adjusted to Reflect the Interest Rate on 510 Delivery Date (Subject to a Floor). 3 The inclusion herein of references to maintenance fees/services are solely for the administrative convenience of Lessee. Notwithstanding the inclusion of such references in this [Invoice/Schedule/Quote], all such maintenance services are to be performed by Enterprise Fleet Management, Inc., and all such maintenance fees are payable by Lessee solely for the account of Enterprise Fleet Management, Inc., pursuant to that certain separate [Maintenance Agreement] entered into by and between Lessee and Enterprise Fleet Management, Inc.: provided that such maintenance fees are being billed by Enterprise FM Trust, and are payable at the direction of Enterprise FM Trust, solely as an authorized agent for collection on behalf of Enterprise Fleet Management, Inc. Printed On 05/30/2014 03:54 PM Page 1 of 6 Open -End (Equity) Lease Rate Quote Quote No: 2600729 Aftermarket Equipment Total Description (B)illed or (Clapped Price remote start C $ 549.00 Total Aftermarket Equipment Billed $ 0.00 Total Aftermarket Equipment Capitalized $ 549.00 Aftermarket Equipment Total $ 549.00 Printed On 05/30/2014 03:54 PM Page 2 of 6 prise Open -End (Equity) Lease Rate Quote Quote No: 2600729 VEHICLE INFORMATION: 2014 Ford Explorer Base 4dr 4x4 - US Series ID: K8B Pricing Summary: Base Vehicle Total Options Destination Charge Total Price INVOICE MSRP $ 30,173.00 $ 32,015.00 $ 925.00 $ 1,060.00 $ 895.00 $ 895.00 $ 31,993.00 $ 33,970.00 SELECTED COLOR: Exterior: UX - (0 P) Ingot Silver Metallic Interior: 7L - (0 I) Medium Light Stone w/Cloth Bucket Seats SELECTED OPTIONS: CODE DESCRIPTION INVOICE MSRP 100A Equipment Group 100A NC NC 113WB 113" Wheelbase STD STD 153 License Plate Bracket NC NC 41H_ Engine Block Heater (Regional) NC NC 44C Transmission: 6-Spd SelectShift Automatic (TR -CG) NC NC 52T Trailer Tow Package (Class III) $ 497.00 $ 570.00 53M SYNC w/MyFord Communications/Entertainment System $ 258.00 $ 295.00 64C Wheels: 17" Steel w/Wheel Covers Included Included 7 Cloth Bucket Seats Included Included 7L_01 (0 I) Medium Light Stone w/Cloth Bucket Seats NC NC 85B SIRIUS Satellite Radio $ 170.00 $ 195.00 998 Engine: 3.5L Ti -VCT V6 (FFV) Included Included COOLER Engine Oil Cooler Included Included PAINT Monotone Paint Application STD STD PIN 4.7 Pin Wiring Harness Included InCluded STDAX 3.65 Axle Ratio Included Included STDGV GVWR: 6,160 Ibs Included Included STDRD Radio: AM/FM Stereo w/Single CD/MP3 Capable Included Included STDTR Tires: P245/65R17 AS BSW Included Included UX_01 (0 P) Ingot Silver Metallic NC NC Printed On 05/30/2014 03:54 PM Page 3 of 6 CONFIGURED FEATURES: Body Exterior Features: Number Of Doors 4 Rear Cargo Door Type: liftgate Driver And Passenger Mirror: power remote folding side -view door mirrors Convex Driver Mirror: convex driver and passenger mirror Spoiler: rear lip spoiler Door Handles: black Front And Rear Bumpers: body -coloured front and rear bumpers with black rub strip Front License Plate Bracket: front license plate bracket Body Material: galvanized steel/aluminum body material Roof Rack: rails only Trailering Hitch: class III trailering with harness, hitch Body Side Cladding: black bodyside cladding Grille: grey grille Exhaust Tip: chrome tip exhaust Convenience Features: Air Conditioning manual air conditioning Air Filter: air filter Rear Air Conditioning: rear air conditioning with separate controls Cruise Control: cruise control with steering wheel controls Power Windows: power windows with driver 1 -touch down 1/4 Vent Rear Windows: power rearmost windows Remote Keyless Entry: keyfob (all doors) remote keyless entry Illuminated Entry: illuminated entry Integrated Key Remote: integrated key/remote Auto Locking: auto -locking doors Steering Wheel: steering wheel with manual tilting, manual telescoping Day -Night Rearview Mirror: day -night rearview mirror Driver and Passenger Vanity Mirror: driver and passenger -side visor mirrors Front Cupholder: front and rear cupholders Floor Console: full floor console with covered box Overhead Console: full overhead console with storage Glove Box: Illuminated locking glove box Driver Door Bin: driver and passenger door bins Rear Door Bins: rear door bins Seatback Storage Pockets: 2 seatback storage pockets Driver Footrest: driver's footrest Retained Accessory Power: retained accessory power Power Accessory Outlet: 4 12V DC power outlets Entertainment Features: radio SiriusXM AM/FM/Satellite with seek -scan, single in -dash CD player MP3 Player: MP3 decoder Radio Data System: radio data system Voice Activated Radio: voice activated radio Speed Sensitive Volume: speed -sensitive volume Steering Wheel Radio Controls: steering -wheel mounted audio controls Speakers: 12 speakers 1st Row LCD: 2 1st row LCD monitor Wireless Connectivity: wireless phone connectivity Antenna: integrated roof antenna Lighting, Visibility and Instrumentation Features: Headlamp Type delay -off projector beam halogen headlamps Front Wipers: variable intermittent speed -sensitive wipers wipers Front Windshield Visor Strip: front windshield visor strip Rear Window wiper: fixed interval rear window wiper with heating wiper park Rear Window Defroster: rear window defroster Tinted Windows: deep -tinted windows Dome Light: dome light with fade Front Reading Lights: front and rear reading lights Variable IP Lighting: variable instrument panel lighting Printed On 05/30/2014 03:54 PM Page 4 of 6 Display Type: analog display Tachometer: tachometer Compass: compass Exterior Temp: outside -temperature display Low Tire Pressure Warning: low -tire -pressure warning Trip Computer: trip computer Trip Odometer: trip odometer Water Temp Gauge: water temp. gauge Clock: in -dash clock Systems Monitor: systems monitor Oil Pressure Warning: oil -pressure warning Water Temp Warning: water -temp. warning Battery Warning: battery warning Lights On Warning: lights -on warning Key in Ignition Warning: key -in -ignition warning Low Fuel Warning: low -fuel warning Low Washer Fluid Warning: low -washer -fluid warning Door Ajar Warning: door -ajar warning Trunk Ajar Warning: trunk -ajar warning Brake Fluid Warning: brake -fluid warning Safety And Security: ABS four-wheel ABS brakes Number of ABS Channels: 4 ABS channels Brake Type: four-wheel disc brakes Vented Disc Brakes: front and rear ventilated disc brakes Spare Tire Type: compact spare tire Spare Tire Mount: spare tire mounted inside under cargo Driver Front Impact Airbag: driver and passenger front -impact airbags Driver Side Airbag: seat -mounted driver and passenger side -impact airbags Overhead Airbag: Safety Canopy System curtain 1st, 2nd and 3rd row overhead airbag Knee Airbag: knee airbag Occupancy Sensor: front passenger airbag occupancy sensor Height Adjustable Seatbelts: height adjustable front seatbelts Seatbelt Pretensioners: front seatbelt pre-tensioners 3Point Rear Centre Seatbelt: 3 point rear centre seatbelt Side Impact Bars: side -impact bars Tailgate/Rear Door Lock Type: tailgate/rear door lock included with power door locks Rear Child Safety Locks: rear child safety locks Ignition Disable: SecuriLock immobilizer Panic Alarm: panic alarm Electronic Stability: AdvanceTrac w/Roll Stability Control electronic stability stability control with anti -roll Traction Control: Terrain Management System ABS and driveline traction control Front and Rear Headrests: manual adjustable front head restraints Rear Headrest Control: 3 rear head restraints 3rd Row Headrests: 2 fixed third row head restraints Seats And Trim: Seating Capacity max. seating capacity of 7 Front Bucket Seats: front bucket seats Number of Driver Seat Adjustments: 8 -way driver and passenger seat adjustments Reclining Driver Seat: manual reclining driver and passenger seats Driver Lumbar: manual driver and passenger lumbar support Driver Height Adjustment: power height -adjustable driver and passenger seats Driver Fore/Aft: power driver and passenger fore/aft adjustment Driver Cushion Tilt: power driver and passenger cushion tilt Front Centre Armrest Storage: front centre armrest Rear Seat Type: rear manual reclining 60-40 split -bench seat Rear Folding Position: rear seat tumble forward 3rd Row Seat Type: fixed third row 50-50 split -bench seat 3rd Row Electric Control: fold into floor third row seat Leather Upholstery: cloth front and rear seat upholstery Door Trim Insert: cloth door panel trim Headliner Material: full cloth headliner Printed On 05/30/2014 03:54 PM Page 5 of 6 Full Carpet Floor Covering: carpet floor covering Dashboard Console Insert, Door Panel Insert Combination: metal -look instrument panel insert, door panel insert, console insert Shift Knob Trim: leatherette shift knob Floor Mats: carpet front and rear floor mats Interior Accents: chrome and metal -look interior accents Cargo Space Trim: carpet cargo space Trunk Lid: plastic trunk lid/rear cargo door Cargo Tie Downs: cargo tie -downs Cargo Light: cargo light Standard Engine: Engine 290 -hp, 3.5 -liter V-6 (regular gas) Standard Transmission: Transmission 6 -speed automatic w/ OD and auto -manual Printed On 05/30/2014 03:54 PM Page 6 of 6 GREATER STILL WATER CHAMBER. of COMMERCE Board of Directors Kevin Sandstrom Chair Paul McCarthy Vice Chair Steve O'Brien Past Chair Todd Streeter President Chuck.LeRoux Secretary Chris Schiltz Treasurer Paula Hamann Susan St. Ores Gretchen Stein Dave Wettergren City of Stillwater Diane Ward 216 Fourth St. N. Stillwater, MN 55082 City Council and Staff: June 3, 2014 Both Todd Streeter, Executive Director of the Greater Stillwater Chamber and I would like to commend the City of Stillwater on hiring Angela Mens -Eastman as the City's Event Coordinator. She has a wealth of event knowledge and experience and we were impressed by her calm demeanor during questionable weather situations that fortunately didn't materialize. Angela was available to us all three days of our event, including Friday, which was set aside for load in. She monitored and orchestrated the load in and breakdown of food vendors and supervised health inspections and vendor operations. There were very few issues with the event but Angela offered her expertise to help us fine tune several areas which was greatly appreciated. We will conduct an "event wrap-up" meeting with Angela to note what went smoothly and what we should work on for our next event in that location. We found Angela to be personable, knowledgeable in event planning, and extremely helpful. In closing, the hiring of Angela will be an asset to the City and event managers as she is truly a great resource for all those planning/holding events. We will be thrilled to work with her again on the Fall Colors Fine Art & Music Festival. Sincerely, Dolly Parker Todd Streeter Events & Operations Manager Executive Director 200 Chestnut Street East • Suite 204 • Stillwater, MN 55082 • Phone: 651.439.4001 • Fax: 651.439.4035 GreaterStillwaterChamber.com NAPC NATIONAL. ALLIANCE of PRESERVATION COMMISSIONS FYI P.Q. Box 1605 Athens, Georgia 30603 Phone: (706)369-5881 Fax: (706)369-5864 napc@uga.edu http://napc,Liga.edu FOR IMMEDIATE RELEASE May 29, 2014 Stillwater Heritage Preservation Commission wins 2014 NAPC Commission Excellence Award The Stillwater Heritage Preservation Commission has been selected as a recipient of a Commission Excellence Award from the National Alliance of Preservation Commissions (NAPC). The NAPC Commission Excellence Awards recognize and honor the outstanding efforts and achievements of local preservation, historic district, and landmark commissions, and boards of architectural review. The program is intended to highlight 'best practices' and exceptional accomplishments by historic preservation commissions at the local level, for both large and small communities, to protect historic districts and landmarks through legislation, education and advocacy. The NAPC Commission Excellence Awards are the only national awards program specific to the work of local preservation commissions. The Stillwater Heritage Preservation Commission was honored in the category of "Best Practices: Public Outreach" for their efforts in creating two programs geared towards educating the public on the town's history and important cultural resources. The first program was the Heirloom Homes and Landmark Sites Program. This program is meant to honor property owners who maintain the historic character of their building or site and educate the public about these resources. Through the use of an extensive website that provides information on the resources, city residents are able to create a personalized tour to visit the properties. The second program is a series of self -guided podcast tours focused on the Downtown Commercial Historic District. This program has helped to draw in visitors to the downtown, as well as provide historic information about these resources and the town not only locally, but nationally and internationally. The award will be presented as part of a ceremony at NAPC's biennial FORUM conference in Philadelphia, PA on Saturday, July 19, 2014. FORUM 2014 will bring together over 500 preservation professionals and commission members from across the country for a week of training, education and networking. FORUM is held in different destination cities every two years and is the only national conference dedicated to the important work of volunteer commission members in locally -designated historic districts. Founded in 1983, NAPC's mission is to build strong local preservation programs through education, advocacy, and training. For more information, visit http://napc.uga.edu/. CONTACT: Paul Trudeau NAPC Program Director 706-369-5881 ptrudeau@uga.edu Abbi Wittman, City Planner City of Stillwater 651-430-8822 awittman@ci.stillwater.mn.us ### education + advocacy + training BOARD AGENDA JUNE 3, 2014 — 9:00 A.M. Board of Commissioners Fran Miron, District 1 Ted Bearth, District 2 Gary Kriesel, District 3 Autumn Lehrke, Chair, District 4 Lisa Weik, District 5 1. 9:00 Roll Call Pledge of Allegiance 2. 9:00 Comments from the Public Visitors may share their comments or concerns on any issue that is a responsibility or function of Washington County Government, whether or not the issue is listed on this agenda. Persons who wish to address the Board must fill out a comment card before the meeting begins and give it to the County Board secretary or the County Administrator. The County Board Chair will ask you to come to the podium, state your name and address, and present your comments. Your comments must be addressed exclusively to the Board Chair and the full Board of Commissioners. Comments addressed to individual Board members will not be allowed. You are encouraged to limit your presentation to no more than five minutes. The Board Chair reserves the right to limit an individual's presentation if it becomes redundant, repetitive, overly argumentative, or if it is not relevant to an issue that is part of Washington County's responsibilities. 3. 9:05 Consent Calendar — Roll Call Vote 4. 9:05 Community Services — Dan Papin, Director Resolution - Appointment and Swearing in of New Veterans Service Officer Ryan Carufel 5. 9:20 County Attorney — Pete Orput, County Attorney Pledge to Graduate Award Winner 6. 9:25 Public Works — A. Resolution — Bid Award for County State Aid Highway (CSAH) 21 and CSAH 29 Turn Lane Projects - Corey Slagle, Transportation Manager B. Budget Amendment — Replace Law Enforcement Center Roof System— Greg Wood, Building Services Manager 7. 9:40 General Administration — Kevin Corbid, Deputy Administrator A. Resolution — 2014 First Quarter Donations B. Comments on City of Stillwater's Proposal to Establish Tax Increment Financing District No. 11 8. 9:55 Commissioner Reports — Comments — Questions This period of time shall be used by the Commissioners to report to the full Board on committee activities, make comments on matters of interest and information, or raise questions to the staff. This action is not intended to result in substantive board action during this time. Any action necessary because of discussion will be scheduled for a future board meeting. 9. Board Correspondence 10. 10:10 Adjourn 11. 10:15 to 10:45 — Board Workshop with Public Works Discuss Future Role of the County in Land Use Planning and Management Assistive listening devices are available for use in the County Board Room ul.., , reara.s,..ln,,..a (1 ,o n. ,tswirrt, ... lanai Laoe horror .,m -non (RR1).sOliellel EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER WASHINGTON COUNTY BOARD OF COMMISSIONERS CONSENT CALENDAR * JUNE 3, 2014 The following items are presented for Board approval/adoption: DEPARTMENT/AGENCY Administration Accounting and Finance Community Services Public Health and Environment Public Works ITEM A. Approval of the May 27, 2014, Board meeting minutes. B. Approval to revise Policy #2506 to increase county change funds by $75. C. Approval of the Amendment to contract with Frazier Recovery Home which is a Group Residential Housing (GRH) Board and Lodge facility that accepts GRH payment for room and board. D. Approval of contract with Star Services to provide consultation to the Community Services Department in conjunction with the grant that was received from the Department of Human Services to develop more individual housing options. E. Approval of the Workforce Center's Local Plan for Workforce Investment Act programs for program year 2014. F. Approval to enter into an agreement with Tehout Selameab of Arcadia Research and Evaluation L.L.C. for the purpose of carrying out the Statewide Health Improvement Program grant evaluation requirement. G. Approval of Amendment 1 to contract with The Brickman Group Ltd. For landscape maintenance services to extend the term of the contract to April 15, 2015. Consent Calendar items are generally defined as items of routine business, not requiring discussion, and approved in one vote. Commissioners may elect to pull a Consent Calendar item(s) for discussion and/or separate action. Assistive listening devices are available for use in the County Board Room rrt.., . r.aaH mccieMnro .rick M .c�.r,;rry .,. '.,pimp MIr.;ar r' ' r•a"IRR1 415 Rnnn EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER Summary of Proceedings Washington County Board of Commissioners May 27, 2014 FYI Present were Commissioners Fran Miron, District 1; Ted Bearth, District 2; Gary Kriesel, District 3; Autumn Lehrke, District 4; and Lisa Weik, District 5. Absent none. Board Chair Lehrke presided. Accounting and Finance Approval to close the county's secondary depository bank accounts. Commissioner Reports — Comments — Questions The Commissioners reported on the following items: - Commissioner Weik — reported that the Counties Transit Improvement Board (CTIB) will have a special workshop to discuss projects prior to the next CTIB meeting in June; - Commissioner Miron — reported on the Foster Care Recognition event held last Thursday. Community Services Approval of the 2014-2016 Group Residential Housing rate 2 agreement with Phoenix Service Corporation, Inc. General Administration Approval of the following actions: - May 20, 2014, Board meeting minutes; - Board Chair to sign thank you letters to members of the county legislative delegation; - Update on legislative issues regarding campaign finance for local candidates and contribution limits for campaigns; - June 17, 2014, Board meeting to be an afternoon meeting, with the Board of Appeal and Equalization to begin at 5:00 p.m.; - Board correspondence was received and placed on file. Human Resources Approval of the following actions: - Contract with AFSCME Non -Exempt bargaining unit for 2014 and 2015; - Contract with AFSCME Exempt bargaining unit for 2014 and 2015. Information Technology Approval of the following actions: - Contract with Mobile Radio Engineering, Inc., to replace water damaged Public Safety Radio Equipment in the Law Enforcement Center; - Contract with CenturyLink for 36 month fixed pricing agreements for Phone Lines and Integrated Service Digital Network with a Primary Rate Interface covering the period of June 2014 — May 2017. Library Approval to cancel existing three-year agreement with Thomson Reuters for Westlaw services and approval of new Thomson Reuters contract for services from June 1, 2014, through May 31, 2017. Property Records and Taxpayer Services Approval of the plat of Arcola Bluffs on the St. Croix in Stillwater Township. Public Health and Environment Update on the BizRecycling program which provides free assistance to businesses and institutions to increase recycling opportunities and recovery of organic materials. Public Works Approval of the following actions: - Table Amendment #4 to a contract with Hunt Electric Corporation to update labor rates; - Resolution No. 2014-056, bid award for County State Aid Highway 10 to Valley Paving, Inc. A complete text of the Official Proceedings of the Washington County Board of Commissioners is available for public inspection at the Office of Administration, Washington County Government Center, 14949 62"d Street N., Stillwater, Minnesota. Summary of Proceedings Washington County Board of Commissioners May 20, 2014 FYI Present were Commissioners Fran Miron, District 1; Ted Bearth, District 2; Gary Kriesel, District 3; Autumn Lehrke, District 4; and Lisa Weik, District 5. Absent none. Board Chair Lehrke presided. Accounting and Finance Approval to revise Policy #2506, to increase county change funds by $1,200. Commissioner Reports — Comments — Questions The Commissioners reported on the following items: - Commissioner Kriesel — expressed his condolences to the family of Lt. Col. Hiram Mann, one of the famed Tuskegee Airmen who recently passed away; a moment of silence was held for Lt. Col. Hiram Mann; - Commissioner Miron — reported he attended a meeting yesterday that discussed a control structure on Bald Eagle Lake and a letter will be drafted for the County Board to be sent to the Commissioner of the Department of Natural Resources; two open houses will be held for the Rush Line Corridor on May 28 and 29; and the Youth Service Bureau in Forest Lake presented awards to Kathy Bystrom, Community Health Outreach Manager, Fairview; and Rachel Huset, student at Forest Lake High School; - Commissioner Weik — announced that May is Mental Health month; and that the Federal Permitting Dashboard fast -tracked the Gateway Corridor project. General Administration Approval of the following actions: - May 13, 2014, Board meeting minutes; - Reappointment of Eric Lindberg, Stillwater Township, and Victoria Dupre, May Township, to the Carnelian -Marine -St. Croix Watershed District Board of Managers to terms expiring June 21, 2017; - Recommended project for funding through the 2013 Countywide Mission Directed Budget Savings program, with a portion of the savings to be dedicated to the county's Other Post Employment Benefit Plan; - Legislative update presented; - Letter of recognition to be sent to the legislative delegation that carried the county's legislative agenda forward this year; - Board correspondence was received and placed on file. Property Records and Taxpayer Services Approval of application to renew an On Sale and Sunday Liquor License for the Afton Apple Orchard, Cenco Farms, Inc., located in Denmark Township. Public Health and Environment Approval of letter to the Public Health Accreditation Board in support of the Public Health and Environment Department's application for national accreditation. Public Works Approval of the following actions: - Resolution No. 2014-054, bid award for County State Aid Highway 9 and County Road 91 to Hardrives, Inc.; - Resolution No. 2014-055, request funding from the Minnesota Department of Transportation through the 2016 Metro Municipal Agreement Program; - Board workshop held to discuss the Counties Transit Improvement Board (CTIB) revised draft program of projects prior to the CTIB meeting on May 21; - Board workshop held to discuss the State and Federal regulations and county practices related to traffic controls for school areas, including school warning signs, school crosswalks, and school speed limits. A complete text of the Official Proceedings of the Washington County Board of Commissioners is available for public inspection at the Office of Administration, Washington County Government Center, 14949 62nd Street N., Stillwater, Minnesota. BOARD AGENDA MAY 27, 2014 — 9:00 A.M. Board of Commissioners Fran Miron, District 1 Ted Bearth, District 2 Gary Kriesel, District 3 Autumn Lehrke, Chair, District 4 Lisa Weik, District 5 1. 9:00 Roll Call Pledge of Allegiance 2. 9:00 Comments from the Public Visitors may share their comments or concerns on any issue that is a responsibility or function of Washington County Government, whether or not the issue is listed on this agenda. Persons who wish to address the Board must fill out a comment card before the meeting begins and give it to the County Board secretary or the County Administrator. The County Board Chair will ask you to come to the podium, state your name and address, and present your comments. Your comments must be addressed exclusively to the Board Chair and the full Board of Commissioners. Comments addressed to individual Board members will not be allowed. You are encouraged to limit your presentation to no more than five minutes. The Board Chair reserves the right to limit an individual's presentation if it becomes redundant, repetitive, overly argumentative, or if it is not relevant to an issue that is part of Washington County's responsibilities 3. 9:10 Consent Calendar — Roll Call Vote 4. 9:10 Public Health and Environment — Danielle Lesmeister, Environmental Specialist Update on BizRecycling Program 5. 9:20 Public Works — Cory Slagle, Transportation Manager Resolution — Bid Award for County State Aid Highway 10 Paving Project 6. 9:30 General Administration — Kevin Corbid, Deputy Administrator 7. 9:40 Commissioner Reports — Comments — Questions This period of time shall be used by the Commissioners to report to the full Board on committee activities, make comments on matters of interest and information, or raise questions to the staff. This action is not intended to result in substantive board action during this time. Any action necessary because of discussion will be scheduled for a future board meeting. 8. Board Correspondence 9. 9:45 Adjourn 10:00 Finance Committee Assistive listening devices are available for use in the County Board Room Irt..,,, accrc..,ra d,,ia.,g„..00 hn..;ar rra-lea ” " (RFV e011 5,1,1/1 EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER WASHINGTON COUNTY BOARD OF COMMISSIONERS CONSENT CALENDAR * MAY 27, 2014 The following items are presented for Board approval/adoption: DEPARTMENT/AGENCY Administration Accounting and Finance Community Services Human Resources Information Technology Library Property Records and Taxpayer Services Public Works ITEM A. Approval of the May 20, 2014, Board meeting minutes. B. Approval to close the county's secondary depository bank accounts as follows: Central Bank, Stillwater; Security State Bank of Marine, Marine on St. Croix; First State Bank & Trust, Bayport; and Lake Elmo Bank, Lake Elmo. C. Approval of the 2014-2016 Group Residential Housing rate 2 agreement with Phoenix Service Corporation, Inc. D. Approval of contract with the AFSCME Non -Exempt bargaining unit for 2014 and 2015. E. Approval of contract with the AFSCME Exempt bargaining unit for 2014 and 2015. F. Approval of contract with Mobile Radio Engineering, Inc. to replace water damaged Public Safety Radio Equipment in the Law Enforcement Center. G. Approval of two contracts with CenturyLink for the following telephone services: 36 month fixed pricing agreement for Phone Lines covering the period of June, 2014 — May, 2017; and 36 month fixed pricing agreement for Integrated Service Digital Network with a Primary Rate Interface covering the period of June, 2014 — May, 2017. H. Approval to cancel existing three-year agreement with Thomson Reuters for Westlaw services and approval of new Thomson Reuters contract for services from June 1, 2014 through May 31, 2017. I. Approval of the plat of Arcola Bluffs on the St. Croix in Stillwater Township. J. Approval of Amendment #4 to Contract with Hunt Electric Corporation to update labor rates. Consent Calendar items are generally defined as items of routine business, not requiring discussion, and approved in one vote. Commissioners may elect to pull a Consent Calendar item(s) for discussion and/or separate action. Assistive listening devices are available for use in the County Board Room If imnu nmrl nesieLnnrn 4,,a M l, nr Inr,g ar nlmee null �aTn Aan_anln EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER i 1 1 a t e r INF OIRTNFLACE OF MINNESOTA AGENDA CITY COUNCIL MEETING Council Chambers, 216 Fourth Street North June 3, 2014 REGULAR MEETING RECESSED MEETING 4:30 P.M. AGENDA I. CALL TO ORDER II. ROLL CALL III. OTHER BUSINESS 1. Police Department Annual Report (Available Tuesday) 2. Police Services Policy and related fees (Resolution — Roll Call) IV. STAFF REPORTS 3. Police Chief 4. Fire Chief 5. City Clerk 6. Community Development Dir. 7. Public Works Dir. 8. Finance Director 9. City Attorney 10. City Administrator 7:00 P.M. AGENDA 4:30 P.M. 7:00 P.M. V. CALL TO ORDER VI. ROLL CALL VII. PLEDGE OF ALLEGIANCE VIII. APPROVAL OF MINUTES 11. Possible approval of May 20, 2014 regular meeting minutes IX. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS X. OPEN FORUM The Open Forum is a portion of the Council meeting to address Council on subjects which are not a part of the meeting agenda. The Council may take action or reply at the time of the statement or may give direction to staff regarding investigation of the concerns expressed. Out of respect for others in attendance, please limit your comments to 5 minutes or less. XI. CONSENT AGENDA (ROLL CALL) all items listed under the consent agenda are considered to be routine by the city council and will be enacted by one motion. There will be no separate discussion on these items unless a council member or citizen so requests, in which event, the items will be removed from the consent agenda and considered separately. 12. Resolution 2014-089, directing payment of bills 13. Possible approval of Sunday Taproom License — Lift Bridge Brewery 14. Resolution 2014-090, approval of 2014 Grant Agreement for Municipal Recycling Grant Distribution 15. Resolution 2014-091, approval of Agreement with RES Specialty Pyrotechnics for July 4, 2014 Fireworks 16. Possible approval to purchase an ID printer - MIS 17. Possible approval to purchase 2 computers — Engineering Finance 18. Possible approval to purchase an IPad - MIS 19. Possible approval of temporary liquor license — Log Jam Days 20. Resolution 2014-092, approval of non-exclusive wharfage permit — St. Croix Sailing Club 21. Possible approval of 2014 Case DV23 Dual Drum Roller — Public Works XII. PUBLIC HEARINGS - OUT OF RESPECT FOR OTHERS IN ATTENDANCE, PLEASE LIMIT YOUR COMMENTS TO 10 MINUTES OR LESS. 22. This is the date and time for a public hearing to consider the proposed adoption of a modification of the development program for Development District No. 1 and the proposed adoption of the Tax Increment Financing Plan for District No. 11. (Resolution — Roll Call) XIII. UNFINISHED BUSINESS 23. Possible approval of assessment policy (Resolution — Roll Call) (Available Tuesday) XIV. NEW BUSINESS 24. Possible approval of No Parking on 4th Street N (Resolution — Roll Call) 25. Possible approval of Access point on North Frontage Road between Greeley Street and Osgood Avenue (Resolution — Roll Call) 26. Possible approval of feasibility report and calling for hearing for the 2014 Street Improvements (Resolution — Roll Call) XV. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS (CONTINUED) XVI. COMMUNICATIONS/REQUESTS XVII. COUNCIL REQUEST ITEMS XVIII. STAFF REPORTS (CONTINUED) XIX. ADJOURNMENT TO EXECUTIVE SESSION — DISCUSSION ON POSSIBLE LAND PURCHASE JOHN GANNAWAY CHIEF OF POLICE Memorandum THE BIRTHPLACE OF MINNESOTA POLICE DEPARTMENT Date: May 30, 2014 To: City Administrator Larry Hansen From: Chief John Gannaway Subject: Fees for Police Services Police Services requested for EVENTS, SPECIAL EVENTS and EVENTS w/CONTRACT. NATHAN MEREDITH CAPTAIN -Event permit application to be reviewed by the Stillwater Police Department to determine the number of Police Department employees and/or Police Reserves needed. The Stillwater Police Department retains the right to require more services than requested if determined to be necessary. - Fees for Police Department employees will be charged at the on -duty overtime rate per employee; with a two (2) hour minimum. The total estimated cost will be invoiced and paid to the City of Stillwater prior to the event. -Fees for Police Department volunteers (Police Reserves) will be charged at $15/hr. per reserve; with a two (2) hour minimum. The total estimated cost will be invoiced and paid to the City of Stillwater prior to the event. (Reserves will not be hired in lieu of employees, but as a supplement to employee staffing.) Police Services requested for other activities that do not fall under EVENTS, SPECIAL EVENTS or EVENTS w/CONTRACT. - Activity to be reviewed by the Stillwater Police Department at the time of request. The Stillwater Police Department retains the right to require more services than requested if determined to be necessary. -Fees for Police Department employees will be charged at the off-duty officer rate of $40/hr. per off- duty officer; with a three (3) hour minimum. This rate will be paid directly to the off-duty officer at the time of the event. - Fees for Police Department volunteers (Police Reserves) will be charged at $20/hr. per reserve; with a three (3) hour minimum. This rate will paid directly to the reserve officer at the time of the event. (Reserves will not have priority over employees in staffing any activity; if the activity cannot be staffed with employees, the opportunity will then be offered to members of the reserve program.) 216 North 4th Street • Stillwater, Minnesota 55082 Business Phone: (651) 351-4900 • Fax: (651) 351-4940 Police Response/Assistance: 911 www.ci.stillwater.mn.us APPROVING POLICE SERVICES POLICY AND RELATED FEES BE IT RESOLVED, by the City Council of Stillwater, MN that the Police Services Policy and fees for services as follows hereby approved. Police Services requested for EVENTS, SPECIAL EVENTS and EVENTS w/CONTRACT. 1. Event permit application to be reviewed by the Stillwater Police Department to determine the number of Police Department employees and/or Police Reserves needed. The Stillwater Police Department retains the right to require more services than requested if determined to be necessary. 2. Fees for Police Department employees will be charged at the on -duty overtime rate per employee; with a two (2) hour minimum. The total estimated cost will be invoiced and paid to the City of Stillwater prior to the event. 3. Fees for Police Department volunteers (Police Reserves) will be charged at $15/hr. per reserve; with a two (2) hour minimum — as previously approved by Resolution 2013-040. The total estimated cost will be invoiced and paid to the City of Stillwater prior to the event. (Reserves will not be hired in lieu of employees, but as a supplement to employee staffing.) Police Services requested for other activities that do not fall under EVENTS, SPECIAL EVENTS or EVENTS w/CONTRACT. 1. Activity to be reviewed by the Stillwater Police Department at the time of request. The Stillwater Police Department retains the right to require more services than requested if determined to be necessary. 2. Fees for Police Department employees will be charged at the off-duty officer rate of $40/hr. per off- duty officer; with a three (3) hour minimum. This rate will be paid directly to the off-duty officer at the time of the event. 3. Fees for Police Department volunteers (Police Reserves) will be charged at $20/hr. per reserve; with a three (3) hour minimum. This rate will paid directly to the reserve officer at the time of the event. 4. (Reserves will not have priority over employees in staffing any activity; if the activity cannot be staffed with employees, the opportunity will then be offered to members of the reserve program.) Adopted by the City Council of the City of Stillwater this 20th day of May, 2014. Ken Harycki, Mayor ATTEST: Diane F. Ward, City Clerk i 1 1 a t e r IMF OIRTNELACE OF MINNESOTA CITY COUNCIL MEETING MINUTES May 20, 2014 REGULAR MEETING 7:00 P.M. Mayor Harycki called the meeting to order at 7:06 p.m. Present: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, Mayor Harycki Staff present: City Administrator Hansen City Attorney Magnuson Police Chief Gannaway Fire Chief Glaser Community Development Director Turnblad Public Works Director Sanders Administration Secretary Manos PLEDGE OF ALLEGIANCE Mayor Harycki led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to approve the May 6, 2014 regular and recessed meeting minutes. All in favor. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS St. Croix Crossing Update - Jon Chiglo, Project Manager Jon Chiglo, Project Manager, updated the Council on the project. All grading and utility work should be completed in 2014 so there will be very minimal traffic impacts after this year. Construction on the fourth pier is beginning Bridge segments will be installed beginning this fall. A no -wake zone will be in effect for most of the summer. The project is on schedule to be completed in the fall of 2016. Councilmember Polehna thanked Mr. Chiglo and staff for keeping the Council and the public informed about the project. Certificate of Appreciation - Carol Danielson Motion by Councilmember Menikheim, seconded by Councilmember Kozlowski, to adopt Resolution 2014-083, Certificate of Appreciation to Carol Danielson for her dedicated service to the City of Stillwater. Ms. Danielson's last day is Friday, May 30tH Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, Mayor Harycki Nays: None City Council Meeting May 20, 2014 OPEN FORUM There were no public comments. STAFF REPORTS Police Chief Gannaway notified the Council that with the warm weather, there will be more enforcement of motorcycle laws. Fire Chief Glaser noted that Ken Olson will be retiring and his position will be posted. The half - marathon and 5k will be held this Saturday. He reported on the FamilyMeans meeting about becoming a dementia -capable community. Community Development Director Turnblad stated that the Jon Francis Run has applied for an event permit to occur during Log Jam days and that staff recommends approving the event permit. Councilmember Weidner asked Event Coordinator Eastman what she thought and she also recommended approval. Motion by Councilmember Polehna, seconded by Councilmember Kozlowski, to approve the event permit for the Jon Francis Run. All in favor. Community Development Director Turnblad continued that the St. Joseph Township Park and Recreation Board is interested in partnering with the City to create a trail on the Kolliner Park property using river crossing project mitigation funds. The next step is to look for grant money for the planning process. Police Chief Gannaway agreed to contact the St. Croix County Sheriff to discuss public safety jurisdiction issues. Community Development Director Turnblad informed the Council that the National Alliance for Preservation Commissions awarded the Stillwater Heritage Preservation Commission its 2014 Commission Excellence Award for public outreach efforts. Public Works Director Sanders reported that on May 28, Washington County will conduct another open house at Our Saviors Lutheran Church for the County Road 5 pedestrian and traffic improvements. Mayor Harycki noted that the Lily Lake Ice Arena and St. Croix Valley Rec Center Manager, Doug Brady and his staff won a state award from Ice Arena Managers. CONSENT AGENDA Resolution 2014-076, directing payment of bills Resolution 2014-077, approval of Letter of Understanding for Impound Housing Services - Animal Humane Society (2014) Resolution 2014-078, approval of contract with SRF Consulting Group Possible approval of retail fireworks permit for Target — 2021 Market Drive Resolution 2014-079, approving Submitter License Agreement with Simplifile, LC Resolution 2014-080, vacating drainage easement within Lot 1-13, Block 1, Matt Hooley Addition Resolution 2014-081, approving the abatement of certain special assessments Resolution 2014-082, approving the issuance of an on -sale Micro Brewer Tap Room and Micro Brewer Off -Sale Liquor License to Maple Island Brewing LLC Resolution 2014-084, approving Joint Powers Agreement with the State of Minnesota Department of Military Affairs Page 2 of 6 City Council Meeting May 20, 2014 Motion by Councilmember Kozlowski, seconded by Councilmember Polehna, to adopt the Consent Agenda. Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, Mayor Harycki Nays: None PUBLIC HEARINGS Case No. ZAT/2014-10. A public hearing to consider a request for a zoning text amendment to Municipal Code Section 41-7: Seasonal Outdoor Sales, establishing design review standards for certain seasonal food vendors. Community Development Director Turnblad requested that the Council open the hearing and table it to the June 17, 2014 meeting. Mayor Harycki opened the public hearing. Motion by Councilmember Kozlowski, seconded by Councilmember Polehna, to table Case No. ZAT/2014-10 to June 17, 2014. Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, Mayor Harycki Nays: None Case No. SUP/2014-7. A public hearing to consider a Special Use Permit and Variance request for an addition to the existing Hotel Facility, creating a new primary entrance located at 101 Water Street South. (Continued from 3/18/2014, 4/1/2014, 5/6/2014) Community Development Director Turnblad reviewed the request that St. Croix Preservation Co., Inc. plans to build a 20 -room addition onto the north side of Water Street Inn. A number of items require approvals from the Heritage Preservation Commission, Planning Commission, Parking Commission and City Council. The Council's role in this case is threefold: decide whether to approve amendments to Water Street Inn's existing Special Use Permit; decide whether to approve a variance for the tower height; and decide whether to allow relocation of Myrtle Street's south curb -line. On April 1, 2014 the Council conceptually approved the Special Use Permit amendments and the height variance, but tabled the request to allow the curb -line of Myrtle Street to be relocated. Staff has met with the owner and design consultant to try to minimize the narrowing of Myrtle Street. The current site plan (dated May 13, 2014) shows the south curb -line being relocated only three feet northward, and then just around the base of the tower. The new plan widens Myrtle Street's surface from 28 feet to 32 feet for a significant portion of the block and accommodates a drop-off and pick-up lane at the hotel's front door; reduces the width of the road from 28 feet to 26 feet 6 inches, but only at the base of the tower which exceeds minimum code standards; does not move the north curb -line of Myrtle Street; and provides public sidewalks on both the north and south sides of Myrtle Street. City staff finds the May 13th site plan to be a safe option for both vehicular and pedestrian traffic. Roger Tomten, ARCHNET, explained the plan revisions. On a question by Councilmember Weidner, about the trash enclosure and when the dumpsters now sitting next to the public amenities are going to be removed, Mr. Tomten responded that the temporary trash enclosure will go before the Heritage Preservation Commission at its June meeting. A trash enclosure and grease recycling area will be located on the Water Street side of the building. Page 3 of 6 City Council Meeting May 20, 2014 Chuck Dougherty, owner, noted the temporary trash enclosure can be built in a couple days once approved. Mayor Harycki opened the public hearing. There were no public comments. Mayor Harycki closed the public hearing. Councilmember Weidner expressed concern that the project will not be built according to plans. He also would like a guarantee of compliance with parking fees. Councilmember Kozlowski agreed that trash containment is a concern. City Attorney Magnuson suggested that the Council state in the findings that the permit is a conditional use permit, in order to give the City more enforcement authority than in the case of a special use permit. Motion by Councilmember Weidner, seconded by Councilmember Menikheim, to Resolution 2014- 085, a resolution approving an amended special use permit for the Water Street Inn located at 101 Water Street South, Case No. SUP/2014-7 with the following additions: adding language indicating that the special use permit is a conditional use permit; requiring that a new temporary trash enclosure be completed by July 1, and upon issuance of a Certificate of Occupancy for the addition, will be removed within two weeks; requiring that the trash receptacles in the parking lot be removed on or before July 1; and incorporating the conditions established by the Heritage Preservation Commission into the final conditional use permit. Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, Mayor Harycki Nays: None Motion by Councilmember Weidner, seconded by Polehna, to adopt Resolution 2014-086, a resolution approving a variance to the Central Business District Parkside Height Overlay District for the Water Street Inn located at 101 Water Street South, Case No. V/2014-7. Ayes: Councilmembers Menikheim, Kozlowski, Polehna, Mayor Harycki Nays: Councilmember Weidner Community Development Director Turnblad stated he will bring back documentation of the Council's conceptual approval for the curb -line relocation. UNFINISHED BUSINESS Log Jam Update — Brad Glynn, The Locals & Angela Eastman, City Event Coordinator Brad Glynn updated the Council. The event has been scaled down due to funding coming in slower than anticipated; the budget is now about $170,000. Cassie McLemore discussed the venues. The committee is considering a $10 charge after 6 p.m. to get into the fenced area and giving a $300 coupon book in exchange. Erin McQuay explained the parade route, fishing tournament, lumberjack demonstration, soapbox derby, and presented the internal schedule. Paul Creager added that there will be a marching band competition as part of the parade. Page 4 of 6 City Council Meeting May 20, 2014 Event Coordinator Eastman indicated to the Council that she will review the schedule and continue to work with The Locals. Discussion on Assessment Policy Public Works Director Sanders led a discussion of funding mechanisms for future street projects. He recommended that Council consider raising the assessment rate from 50% to 75% on reconstruction projects and from 50% to 80% on mill and overlay projects, as well as raising storm water utility rates to help pay for the City's portion of costs for curb and gutter installation. This would raise about $87,000 annually. City Administrator Hansen confirmed that the present assessment policy is not a sustainable way to fund street projects. So far the City has used creative mechanisms but this is becoming more difficult. Mayor Harycki stated he would like to see more about the impacts of cash flow changes as bonds mature. Councilmember Weidner stated he would like to see the street improvement projects assessed at a higher rate to make them more self-sustaining. Councilmembers Menikheim and Kozlowski agreed. Motion by Councilmember Weidner, seconded by Councilmember Menikheim, to prepare a final street improvement assessment policy of 80% for mill and overlay, and 75% for reconstruction projects, and pass Resolution 2014-087, approving increase is storm sewer rate. Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, Mayor Harycki Nays: None Possible approval of Lowell Park Improvements Public Works Director Sanders explained that Staff is working on a few details to finish the amphitheater area, including the installation of 400 amp electric service to the stage, and construction of steps from pedestrian plaza. The funds for these projects, totaling $78,000, would come from the lease of the South Main Barge Terminal property for bridge construction staging. Motion by Councilmember Polehna, seconded by Councilmember Kozlowski, adopting Resolution 2014-088, approving Lowell Park Improvements to release funds to finish the Lowell Park Improvement Project in the amount of $78,000 and to approve Marshall Electric and Xcel Energy to install the electricity to the site and Curbmasters to install the steps. Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, Mayor Harycki Nays: None NEW BUSINESS Discussion of Stillwater Country Club's request for a permit to construct an on-site septic system Community Development Director Turnblad informed the Council that Stillwater Country Club would like to build a small snack building with restroom facilities in the northwest corner of the golf course. Municipal sewer and water are not in Stonebridge Trail fronting the area proposed for the new building, but are available from Johnson Court at an estimated cost of around $60,000, compared with about $17,000 for a septic system. The Council should decide whether to grant the permit for an on-site septic system. Staff recommends requiring hookup to City services. Page 5 of 6 City Council Meeting May 20, 2014 Mayor Harycki asked if the Council might consider installing a public restroom for use with the Brown's Creek Trail. Councilmember Weidner questioned the logic of extending public sewer and water since this is the geographical edge of the City. Dave Wolf the Stillwater Country Club General Manager and Tom St. Clair a club member stated that hooking up to City services would be too costly. A member has donated money for this project and would like to see it completed soon. Motion by Councilmember Weidner, seconded by Councilmember Menikheim, to grant Stillwater Country Club a permit for an on-site septic system. Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Mayor Harycki Nays: Councilmember Polehna COUNCIL REQUEST ITEMS Councilmember Polehna updated the Council on Beyond the Yellow Ribbon activities. ADJOURNMENT Motion by Councilmember Kozlowski, seconded by Councilmember Weidner, to adjourn the meeting at 9:34 p.m. All in favor. Ken Harycki, Mayor ATTEST: Diane F. Ward, City Clerk Resolution 2014-076, directing payment of bills Resolution 2014-077, possible approval of Letter of Understanding for Impound Housing Services Animal Humane Society (2014) Resolution 2014-078, approval of contract with SRF Consulting Group Resolution 2014-079, approving Submitter License Agreement with Simplifile, LC Resolution 2014-080, vacating drainage easement within Lot 1-13, Block 1, Matt Hooley Addition Resolution 2014-081, approving the abatement of certain special assessments Resolution 2014-082, approving the issuance of an on -sale Micro Brewer Tap Room and Micro Brewer Off -Sale Liquor License to Maple Island Brewing LLC Resolution 2014-083, Certificate of Appreciation - Carol Danielson Resolution 2014-084, approving Joint Powers Agreement with the State of Minnesota Department of Military Affairs Resolution 2014-085, a resolution approving an amended special use permit for the Water Street Inn located at 101 Water Street South, Case No. SUP/2014-7 Resolution 2014-086, a resolution approving a variance to the Central Business District Parkside Height Overlay District for the Water Street Inn located at 101 Water Street South, Case No. V/2014-7. Resolution 2014-087, approving increase is storm sewer rate. Resolution 2014-088, approving Lowell Park Improvements Page 6 of 6 EXHIBIT "A" TO RESOLUTION #2014-089 Page 1 LIST OF BILLS Abrahamson Nurseries Action Rental Inc. Arch of Angels Preschool Cheryl Olsen Aspen Mills Bald Eagle Sportsmens Assoc. Bryan Rock Products Inc. C & H Distributors LLC Carquest Auto Parts CDW Government Inc. Century Link Century Power Equipment Cities Digital Solutions Comcast Crayne Chris Daniels Christina ECM Publishers Environmental Equipment & Services Fastenal Company Fun Jumps HAF Construction Harris Services LLC Holiday Credit Office Jefferson Fire and Safety Inc. Joel Smith Heating 7 AC Inc John Deere Landscapes Kopel Chris Lamke Jay Loffler Companies Inc. M.J. Raleigh Truck Co. Mansfield Oil Company Marshall Electric Company Menards Midwest Fence Minnesota Department of Health MN Dept of Transportation MSP Outdoor Services Inc My Alarm Center NAPA Auto Parts Mulch for rain gardens Mixing trailer and concrete Park Deposit Refund Uniforms Range charges Fine ag lime enp Fire extingguisher Auto parts and supplies Ink cartridges Phone Supplies LaserFiche annual support Internet, TV, Voice Reimburse for training expenses Park Fee Refund Park & rec cancelled meeting Gutter brooms Supplies Dunk tank and velcro wall Grading Escrow Refund Repair at rec center Fuel Fireade Refund of permit Airless paint sprayer Reimburse for Title round punch shields Parking violation Refund Network computer support Sand Fuel Replace timers Supplies Fence Hospitality fee Traffic signal maint Yard clean up Alarm Monitoring Services Auto parts and supplies National Animal Control Association Training Animal control course Natural Resource Group LLC Needels Supply Inc. Northland Graphics Performance Plus LLC Quill Corporation RDO EQUIPMENT CO. Parking ramp Cleaning chemicals Stamps Screening Supplies Knife element oilfilter 333.00 180.00 100.00 262.24 275.00 526.39 67.27 190.70 170.48 119.69 99.90 8,683.00 540.70 27.94 100.00 17.40 420.00 230.38 400.00 5,000.00 256.60 54.14 475.00 84.50 2,349.01 188.90 30.00 67.50 336.13 4,319.67 209.00 347.43 14,618.00 35.00 65.80 4,322.50 84.87 730.00 525.00 11,555.87 1,030.33 670.84 1,009.06 209.97 155.50 EXHIBIT "A" TO RESOLUTION #2014-089 Page 2 Riedel! Shoes Inc. Rose City Sign Company Sams Marine Inc Sentry Systems Inc. Springbrook Software Inc. Sprint PCS St. Croix Boat and Packet Co. St. Croix Harley-Davidson Stillwater Motor Company T.A. Schifsky and Sons Telemetry and Process Controls Tessman Seed Co. St. Paul Titan Machinery Tri-State Bobcat Tri-State Pump and Controls Inc. USAble Life Valley Trophy Inc. Verizon Wireless Viking Auto Sprinkler Co. Wahl Thomas WalMart Community Washington County Recorder WET Technology Inc. Ziegler Inc. LIBRARY Baker and Taylor Brodart Co Comcast Fremming Susan E Friends of the Saint Paul Public Library Midwest Tape Office of MN IT Services Paper Roll Products Petrie Angela Quill Corporation Stillwater Public Library Foundation Toshiba Business Solutions Washington County Library CREDIT CARDS Tom Ballas Active 911 Port Supply West Marine USPS Skates Parking lot sign and pay machine repair Repair engine Mercury 225 hp Alarm monitoring HR Online ESS Contract Cell phone Ramp cleaning & arena billing Repair Supplies Fine asphalt Service Chemicals Extra keys for loader Filters Float and filter assembly Term Life Insurance Retirement plaque CeII phone Inspection AeroVator Parts Binders and USB drives Assessing Service Fee Chemical for condensor Engine radiator repair Materials Materials Telecommunications Staff reimbursement Strategic planning Materials Telephone General Supplies Staff Development General supplies Reimbursement Maintenance Contract Materials Subscription Oil Postage 124.24 1,332.36 613.40 150.53 600.00 96.00 34,952.99 1,533.88 914.53 110.98 3,984.60 307.76 17.73 134.40 376.53 422.40 73.60 1,476.77 1,024.00 757.64 76.55 96,160.11 962.27 4,046.96 42.82 571.81 56.90 31.00 4,000.00 824.55 339.20 89.95 396.00 320.39 350.00 43.55 637.30 65.58 74.94 12.70 EXHIBIT "A" TO RESOLUTION #2014-089 Page 3 Larry Hansen Auto Glass Express Rear window of squad 416.72 Grandview Lodge Lodging for conference 201.78 GTS Education Conference 225.00 Incord Ltd Polyester twist sand cord 97.00 Sign Cads Systems Maintenance Agreement 902.50 MAY MANUALS Eastman Angela Event Coordinator 2,242.00 Postmaster Utility Billing Postage 2,836.36 Xcel Energy Energy 17,952.65 ti 1 lwatec Administration Memorandum To: Mayor & City Council From: Diane Ward, City Clerk Date: 5/30/2014 Re: New Sunday Taproom liquor license — Lift Bridge Brewery During the 2013 Legislative Session the Sunday Taproom license was added to Statute regulating Liquor Licenses allowing for Breweries with Taprooms to serve on Sundays. An application has been received from the Lift Bridge Brewery for a new Sunday Taproom liquor license. . The license fee will be the same as other Sunday Licenses ($200.00) I do not see any issues providing them with this Sunday license. RECOMMENDATION: It is recommended that Council authorize the issuance of the new Sunday liquor license. Being that they just went through the renewal process staff determined that background check and the usual inspections need not be completed. However, it should be conditioned upon approval Minnesota Liquor Control. ACTION REQUIRED: If Council concurs with the recommendation, they should pass a motion adopting a resolution entitled "Approving Issuance of Sunday Taproom Liquor License to Lift Bridge Technologies, LLC, DBA: Lift Bridge Brewing Company." APPROVING THE ISSUANCE OF A NEW SUNDAY TAPROOM LIQUOR LICENSE TO LIFT BRIDGE TECHNOLOGIES, LLC DBA: LIFT BRIDGE BREWING COMPANY WHEREAS, an application has been received for a new Sunday Taproom liquor license for Lift Bridge Brewing Technologies, LLC, DBA: Lift Bridge Brewing Company located at 1900 Tower Drive. WHEREAS, Council reviewed the request at their regular meeting of June 3, 2014, and WHEREAS, all required forms have been submitted and fees paid. NOW THEREFORE, BE IF RESOLVED that the City Council of Stillwater, Minnesota, hereby approves the issuance of a Sunday Taproom On -liquor license; conditioned upon approval by Alcohol and Gambling Enforcement Division. (AGED). Adopted by Council this 3rd day of June, 2014. Ken Harycki, Mayor Attest: Diane F. Ward, City Clerk APPROVING THE 2014 GRANT AGREEMENT FOR MUNICIPAL RECYCLING GRANT DISTRIBUTION WITH WASHINGTON COUNTY BE IT RESOLVED by the City Council of Stillwater, MN that the acceptance of the 2014 recycling grant distribution from Washington County, as on file with the City Clerk is hereby approved and that the Mayor are authorized to execute the agreement on behalf of the City of Stillwater Adopted by the Stillwater City Council this 3`d day of June, 2014. Ken Harycki, Mayor ATTEST: Diane F. Ward, City Clerk 2014 GRANT AGREEMENT FOR MUNICIPAL RECYCLING GRANT DISTRIBUTION THIS AGREEMENT made and entered into by and between the County of Washington, hereinafter referred to as the "County", and the City of Stillwater, 216 4th St N., Stillwater, MN 55082, hereinafter referred to as the "Grantee". WHEREAS, the County desires to encourage and provide opportunities for residential recycling to reduce the County's reliance on solid waste disposal facilities, and WHEREAS, the Washington County Board of Commissioners has budgeted funds to be used to further develop recycling projects in the County. NOW, THEREFORE, the parties hereto agree as follows: 1. Term: The term of the Agreement shall be from the date this Agreement is approved by the County to December 31, 2014. 2. The County's Obligations: The County will pay the Grantee an amount of up to $34,392.00 which is to be used for recycling program expenses in 2014. Payments will be made within 60 days of execution of this Agreement. 3. The Grantee's Obligations: a. The Grantee agrees to follow their 2014 Grant Application Guidelines (Exhibit A) and 2014 Municipal Recycling Grant Applications. b. The Grantee will use all recycling grant money received in 2014 as a result of this Agreement, for base funding activities, recycling projects, and public education related to recycling, as indicated in Exhibit A. If all recycling grant funds are not used within the grant period, the Grantee must return unexpended funds to the County unless the County approves utilizing the unspent funds for recycling projects the following year. c. The Grantee shall sign and return this Agreement to the County by August 1St, 2014. d. The Grantee will prepare and submit annual recycling reports to the County. The reports shall cover the time period from January 1 to December 31 and shall be submitted to the County by February 15th of the year following the reporting period. The annual reports will be made on a form provided by the County. e. Pursuant to Minnesota Statutes Sections 115A.46 and 115A.471, all waste generated by city/township government activities (including city/town halls, public works buildings, parks, and for city/townships that arrange for waste -1- services on behalf of their residents) shall be delivered to the Ramsey/Washington County Resource Recovery Facility in Newport for disposal. Failure to comply with this provision shall constitute a breach of this Grant Agreement. f. The parties agree that if the Grantee contracts or otherwise arranges for municipal solid waste hauling service on behalf of its residents and/or businesses and the Grantee issues bills for this service, the Grantee shall bill the County Environmental Charge (CEC) as a separate line item on the solid waste bill and shall make reasonable effort to collect the CEC. Exception to this provision is if the licensed hauler collected the CEC for the previous year. All County Environmental Charges collected shall be remitted to the County according to section 14.5 of Washington County Ordinance #178 or its replacement, Ordinance #194, effective July 1st, 2014. Failure of the Grantee to comply with this provision shall constitute a breach of this Grant Agreement and will result in loss of grant funds. 4. Indemnification and Insurance: a. The Grantee agrees it will defend, indemnify and hold harmless the County, its officers and employees against any and all liability, loss, costs, damages and expenses which the County, its officers or employees may after sustain, incur, or be required to pay arising out of the Grantee's performance or failure to adequately perform its obligations pursuant to this Agreement. b. The Grantee further agrees that in order to protect itself as well as the County under the indemnity provision set forth above, it will at all times during the term of this Agreement keep in force. 1. General liability insurance in the amount of $500,000 for bodily injury or property damage to any one person and $1,500,000 for total injuries or damages arising from any one incident as set forth in Minnesota Statutes §466.04. 2. Any policy obtained and maintained under this clause shall provide that it shall not be canceled, materially changed, or not renewed without thirty (30) days prior notice thereof to the County. A Certificate of Insurance evidencing this coverage must be provided to the County before this Agreement is effective. c. Workers Compensation insurance as statutorily required. 5. Data Practices: All data collected, created, received, maintained, or disseminated for any purposes by the activities of Grantee because of this Agreement is governed by the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as amended, the -2- Minnesota Rules implementing such Act now in force or as adopted, as well as Federal regulations on data privacy. 6. Condition Subsequent It is understood and agreed that in the event that reimbursement to the County from state sources is not obtained and continued at a level sufficient to allow the Grant, the obligations of each party hereunder shall thereupon be reviewed to determine the necessity of renegotiating all or parts of this Agreement. 7. Records Availability and Retention: Pursuant to Minnesota Statute Section 16C.05, Subd. 5, the Grantee agrees that the County, the State Auditor, or any of their duly authorized representatives at any time during normal business hours and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt, and transcribe any books, documents, papers, records, etc. which are pertinent to the accounting practices and procedures of the Grantee and involve transactions relating to this Agreement. Grantee agrees to maintain these records for a period of six (6) years from the date of teriuination of this Agreement. 8. Independent Contractor: Nothing contained in this Agreement is intended or should be construed as creating the relationship of co-partners or joint ventures with the County. No tenure or any rights or benefits, including Worker's Compensation, Unemployment Insurance, medical care, sick leave, vacation leave, severance pay, PERA, or other benefits available to County employees, shall accrue to the Grantee or employees of the Grantee performing services under this Agreement. 9. Nondiscrimination: During the performance of this Agreement, the Grantee agrees to the following: No person shall, on the grounds of race, color, religion, age, sex, sexual preference or orientation, disability, marital status, public assistance status, criminal record, creed or national origin, be excluded from full employment rights in, participation in, be denied the benefits of, or be otherwise subjected to discrimination under any and all applicable Federal and State Laws against discrimination. 10. Firearms Prohibited: Unless specifically required by the terms of this contract, no provider of services pursuant to this contract, including but not limited to employees, agents or -3- subcontractors of the Grantee shall carry or possess a firearm on county premises or while acting on behalf of Washington County pursuant to the terms of this agreement. Violation of this provision shall be considered a substantial breach of the Agreement; and, in addition to any other remedy available to the county under law or equity. Violation of this provision is grounds for immediate suspension or termination of this contract. 11. Noncompliance by Grantee: If the County finds that there has been a failure to comply with the provisions of this Agreement, the County may terminate the Agreement at any time following seven (7) days written notice to the Grantee and upon failure of the Grantee to cure the default within the seven day period. The County will require the Grantee to repay the grant funds in full or in a portion determined by the County. Nothing herein shall be construed so as to limit the County's legal remedies to recover grant funds. 12. Termination: This Agreement may be canceled by either party upon thirty (30) days written notice. Notice to the Cities shall be mailed to the City Administrator or to the City Clerk if there is no Administrator. Notice to Townships shall be mailed to the Township Clerk. Notice shall be sent to the official business address of the City or Township. Notice to the County shall be mailed to: Department of Public Health and Environment, 14949 62nd Street N, PO Box 6, Stillwater, MN 55082-0006. 13. Merger and Modification: a. It is understood and agreed that the entire Agreement between the parties is contained here and that this Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter. All items referred to in this Agreement are incorporated or attached and are deemed to be part of this Agreement. b. Any material alterations, variations, modifications, or waivers of provisions of this Agreement shall be valid only when they have been reduced to writing as an Amendment and signed by the parties. -4- IN WITNESS WHEREOF, the parties have executed this Agreement on the dates indicated below. GRANTEE BY TITLE DATE FEDERAL ID # -5- WASHINGTON COUNTY BY Lowell Johnson, Director Department of Public Health and Environment DATE APPROVE AS TO FORM BY Ass't Washington Co. Attorney DATE 5// 11/ 2014 WASHINGTON COUNTY MUNICIPAL CURBSIDE RECYCLING AND WASTE REDUCTION GRANT GUIDELINES (EXHIBIT A) 1. The city or township curbside recycling program shall be established by ordinance or a contract with a recycling contractor and be in operation during 2014. 2. The curbside recycling grant funds may be used for the following recycling program expenses: public education, administrative costs, curbside bins, waste reduction initiatives, and commercial recycling projects. 3. Administrative expenses are eligible under this grant program if they are for the purpose of implementing, maintaining, or improving the performance of the curbside recycling program. Administrative expenses include staff and legal costs only. 4. Expenditures for capital items other than curbside recycling bins are not eligible for funding under this grant program. 5. For major expenditures or major changes to existing programs, a curbside recycling work plan must be submitted and approved by the Department of Public Health and Environment (Department). The work plan shall be submitted on a form provided by the Department with the grant application. 6. At a minimum, the following materials must be included in the curbside program: glass jars and bottles, newspaper, beverage cans, steel food cans, corrugated cardboard, and either glossy magazines or mixed paper. Cities and townships may require the collection of additional materials (see page 3). 7. If recycling services are provided by a contractor, a written agreement must be executed between the city/township and the contractor. The agreement must require the contractor to provide verification on the types and amounts of materials recycled. A copy of the agreement, and any major revisions to it, must be provided to the Department with the grant application. Exhibit A: Curbside Grant Guidelines, Page 1 8. If curbside recycling services are mandated through an ordinance, a copy of the ordinance must be submitted with the grant application if major revisions have been made. 9. All multifamily housing units (apartments, town homes, condominiums, etc.) must have on-site recycling collection services available. 10. Curbside recycling annual reports shall be submitted to the Department on forms provided by the Department by February 15th of the year following the reporting period. 11. Cities/Townships shall require their recyclables collectors to submit weight receipts for materials recycled. The cities/townships shall verify and retain weight receipts. The Department will audit a city or township's weight receipts when deemed necessary. 12. Pursuant to Minnesota Statutes 115A.46 and 115A.471, all waste generated by city/township government activities (including city/town halls, public works buildings, parks, and for city/townships that arrange for waste services on behalf of their residents) shall be delivered to the Ramsey/Washington County Resource Recovery Facility in Newport for disposal. Failure to comply with this provision shall constitute a breach of the Grant Agreement. 13. Cities and townships that contract or otherwise arrange for municipal solid waste hauling service on behalf of residents and/or businesses and issues bills for this service shall bill the County Environmental Charge (CEC) as a separate line item on the solid waste bill and make reasonable effort to collect the CEC. All County Environmental Charges collected shall be remitted to the County according to section 14.5 of Washington County Ordinance #178 or its replacement, Ordinance # 194, effective July 1st, 2014. Failure of the Grantee to comply with this provision shall constitute a breach of this Grant Agreement and will result in loss of Grant funds. Exhibit A: Curbside Grant Guidelines, Page 2 Standard List of Materials to be Collected Curbside Paper • Mail, office and school papers • Magazines and catalogs • Newspapers and inserts • Phone books • Books • Shredded Paper (in closed paper bags) • Cereal, cracker, and pasta boxes • Shoe boxes, gift boxes and electronics boxes • Toiletry and medication boxes • Cardboard • Pop and beer boxes Cartons • Milk, soup and broth cartons • Juice boxes • Wine and juice cartons Glass • Food and beverage bottles and jars Metal • Food and beverage cans • Aluminum foil and trays (rinsed and clean) Plastic #1-#7 • Water, soda and juice bottles • Milk and juice jugs • Ketchup and salad dressing bottles • Yogurt, pudding and fruit cups, • Margarine, cottage cheese and other tubs • Produce, deli and take out containers (except for black containers) • Dishwashing liquid bottles • Detergent jugs • Shampoo, soap and lotion bottles (remove pump) • Clear packaging from toys and electronics • Disposable cups and bowls • Medicine bottles Exhibit A: Curbside Grant Guidelines, Page 3 APPROVING CONTRACT WITH RES SPECIALTY PYROTECHNICS BE IT RESOLVED, by the City Council of Stillwater, MN that contract between RES Specialty Pyrotechnics and the City of Stillwater, for 4th of July Fireworks, as on file with the City Clerk, is hereby approved. BE IT FURTHER RESOLVED, that the Stillwater City Council authorizes the Mayor and City Clerk to sign the contract. Adopted by the City Council of the City of Stillwater this 3rd day of June, 2014. Ken Harycki, Mayor ATTEST: Diane F. Ward, City Clerk AGREEMENT This Agreement is made this day of June, 2014, between the City of Stillwater, Washington County, Minnesota ("City") and RES Specialty Pyrotechnics, 21595 286th Street, Belle Plaine, Minnesota 56011 ("Contractor"). WITNESSETH: WHEREAS, the City desires to provide a fireworks display for the 4th of July; and WHEREAS, the Contractor is capable of fulfilling this need by rendering pyrotechnic expertise; NOW, THEREFORE, in consideration of the terms and conditions expressed herein, the parties agree as follows: I. DUTIES OF THE CONTRACTOR 1. The Contractor, for and in consideration of the sum of Forty-two Thousand Dollars ($42,000.00), including tax, to be paid hereinafter set forth, agrees to furnish the City one fireworks display, as outlined in the proposal submitted and attached to this Agreement as "Exhibit A," and by this reference made a part hereof, including the services of the Contractor's expert operators to be in full charge and to the fire display to be given on the evening of July 4, 2014, at Legion Beach, located in Houlton, Saint Croix County, Wisconsin, weather permitting. 2. The fireworks display must be digitally choreographed to music provided by the Contractor and the timing of the fireworks must be electronically fired with the music provided. In addition, the music element of the display described in Exhibit A in the contract is amended to provide enhanced system according to the specification established by the City Administrator. 3. Upon arrival at the shoot site on July 4, 2014, the Contractor must furnish the City with a shell inventory form outlining the specific quantities and sizes of each shell type that have been brought to the site. The contractor must comply with City requests to verify the sizes and counts of shells brought by the Contractor. 4. Following the shoot, a shell count shall be conducted and any unused shells shall remain the property of the City to be stored by the Contractor. The Contractor agrees to furnish all equipment and all personnel necessary to set-up and shoot the fireworks display. The Contractor agrees to scan the designated shoot site for paper or garage left from the display or its operators before departing the site. 5. The Contractor agrees to abide by safety standards and procedures as required by the City and as established by the American Pyrotechnic Association and the State of Minnesota. 6. The Contractor agrees to provide safety equipment for the crew including, but not limited to fire extinguishers, hearing plugs, hard hats, eye goggles, cotton coverings, and First Aid supplies. 7. The Contractor shall obtain Fire Marshall's permit from the City of Stillwater for the fireworks display, complying with all additional requirements set forth by the City Fire Marshall. 8. The Contractor shall comply with all applicable federal, state and local laws, ordinances, rules and regulations. 9. The Contractor agrees that in order to protect itself and the City under the indemnity provision set forth above, it will at all times during the term of this Agreement, keep in force policies of insurance as indicated in this contract. The insurance protection will have the following limits: A. Comprehensive Commercial General Liability: (1) Bodily Injury (including completed operations and products liability). (2) Property Damage Liability Insurance will provide Explosion, Collapse and Underground coverages where applicable. (3) Personal Injury, with employment exclusion deleted: $5,000,000 Combined Single Limits B. Comprehensive Automobile Liability: (1) Bodily Injury: $ 500,000 Each Person $1,000,000 Each Occurrence (2) Property Damage: $ 100,000 Each Occurrence C. Workers' Compensation coverage. The Contractor further agrees to name the City as additional insured in said insurance policies and to provide a certificate of said insurance to the City prior to commencing work. The Contractor agrees to notify the City twenty-five (25) days prior to cancellation or a change in any of the aforementioned insurance policies. II. DUTIES OF THE CITY 1. The City agrees to furnish, at its cost, to the Contractor, sufficient space for the safe and proper presentation of the fireworks display and all necessary Police protection, to provide the necessary perimeters for restricting the public from gaining access to the shoot site. 2. Upon execution of the terms of this Agreement, following the fireworks display on the night of July 4, 2014, payment shall be made in full by the City within two weeks. III. MISCELLANEOUS 1. The Parties agree that should inclement weather prevent the fireworks display from occurring on July 4, 2014, the Contractor shall be entitled to a fee charge of Three Thousand Dollars ($3,000.00). In the event of a cancellation for inclement weather, the fireworks display will be rescheduled to Saturday, July 5, 2014 or other mutually agreed upon date 2. It is agreed that nothing herein contained is intended or should be construed in any manner as creating or establishing the relationship of co-partners between the parties hereto or as constitution the Contractor staff as the agents, representatives or employees of the City for any purpose in any manner whatsoever. The Contractor and its staff are to be and shall remain an independent contract with respect to all services performed under this Agreement. The Contractor represents that it has, or will secure at its own expense, any and all personnel required in performing services under this Agreement. Personnel, while engaged in the performance of any work or services required by the Contractor under this Agreement, shall not be consider employees of the City, and any and all claims that may or might arise under the Workers' Compensation Act of the State of Minnesota on behalf of said personnel or other persons while so engaged, and any and all claims whatsoever on behalf of any such person or personnel arising out of employment or alleged employment including, without limitation, claims of discrimination against the Contractor, its officers, agents, contractors or employees shall in no way be the responsibility of the City, and the Contractor shall defend, indemnify and hold the City, its officers, agents and employees harmless from any and all such claims regardless of any determination of any pertinent tribunal, agency, board, commission or court. Such personnel or other persons shall not require nor be entitled to any compensation, rights or benefits of any kind whatsoever from the City, including, without limitation, tenure rights, medical and hospital care, sick leave, Workers' Compensation, Unemployment Compensation, disability, severance pay and PERA. 3. The Contractor shall defend, indemnify and hold harmless the City, its officials, employees and agents, from any and all claims causes of action, lawsuits, damages, losses or expenses, including attorney's fees, arising out of or resulting from the Contractor's (including its officials, employees or agents) performance of the duties under this Agreement. 4. Any amendments to this Agreement shall be in writing and executed by the parties in the same manner as this Agreement. 5. This Agreement shall be interpreted under the laws of the State of Minnesota. 6. The parties mutually and severally guarantee the terms, conditions, and payments of the Agreement which shall be binding upon the parties, heirs executors, administrators, successors and assigns. 7. Both parties agree to adhere to the provision of the Americans with Disabilities Act of 1990, 72 U.S.C., Section 12101-12213 (1990) ("ADA"), if applicable. 8. This Agreement shall not be assignable except at the written consent of the City. 9. This Agreement represents the entire agreement between the City and the Contractor and supersedes and cancels any and all prior agreements or proposals, written or oral, between the parties relating to the subject matter hereof, and amendments, addenda, alterations or modifications to the terms and conditions of this Agreement shall be in writing and signed by both parties. 10. The Contractor agrees, as a condition of being awarded this Agreement, to require each of its agents, officers and employees to abide by the City's policies prohibiting sexual harassment, firearms, unlawful discrimination and smoking, as well as all other reasonable work rules, safety rules or policies regulating the conduct of persons on City property at all times while performing duties pursuant to this Agreement. The Contractor agrees and understands that a violation of any of these policies or rules constitutes a breach of the Agreement and sufficient grounds for immediate termination of the Agreement by the City. 2014. IN WITNESS WHEREOF, the parties have set their hands this day of June, CITY OF STILLWATER By Ken Harycki, Mayor STATE OF MINNESOTA )ss COUNTY OF WASHINGTON) • ATTEST: By Diane F. Ward, Clerk CONTRACTOR RES SPECIALTY PYROTECHNICS By , Its President The foregoing instrument was acknowledged before me this day of June, 2014, by Ken Harycki, Mayor and Diane F. Ward, Clerk, for the City of Stillwater. STATE OF MINNESOTA )ss COUNTY OF WASHINGTON) • Notary Public The foregoing instrument was acknowledged before me this day of June, 2014, by , President, for RES Specialty Pyrotechnics. Notary Public STAFF REQUEST ITEM Department: MIS Date: 5/28/2014 DESCRIPTION OF REQUEST (Briefly outline what the request is) Purchase of ID printer. Our current printer died last year and we have not been to print any badges since then. FINANCIAL IMPACT (Briefly outline the costs, if any, that are associated with this request and the proposed source of the funds needed to fund the request) Money has been budgeted for this purchase. Total cost will be $2799.00. ADDITIONAL INFORMATION ATTACHED Yes X No ALL COUNCIL REQUEST ITEMS MUST BE SUBMITTED TO THE CITY CLERK A MINIMUM OF FIVE WORKING DAYS PRIOR TO THE NEXT REGULARLY SCHEDULED COUNCIL MEETING IN ORDER TO BE PLACED IN THE COUNCIL MATERIAL PACKET. Submitted by: Rose Holman 101/4i)Zi Date: 5/28/14 Let. afol-tvvk 444.1,\ Prepared by: Angie Lueschen, IdentiSys Inc. May 28, 2014 City of Stillwater Prepared for: Rose Holman Prepared by Angie Lueschen IdentiSys Inc. 7630 Commerce Way Eden Prairie, MN 55344 Ph. 952-469-5060 Fax 952-469-3091 www.identisys.com Product Quotation Printer Options CD800 Printer $2799.00 • Double Sided Printer, Ethernet/USB connectivity Zebra Series 7 Printer $3299.00 • Double Sided Printer, Ethernet/USB connectivity Trade in of old printer ($150.00) Printer Options with Lamination — ordered with lamination CD800 CLM • Double Sided Printer, Ethernet/USB connectivity • Single sided laminator Zebra Series 7 Printer • Double Sided Printer, Ethemet/USB connectivity • Single sided laminator Trade in of old printer Add on Laminators *upgradeable with technician, so pricing would be plus labor CD800 single sided laminator Zebra single sided laminator Services Please inquire if you are interested in any on-site services $5099.00 $5199.00 ($150.00) $2499.00 $2299.00 Lead Time: 1 week Zebra with lam 1 - 2 weeks, Datacard CD800 CLM end of May Payment Terms: Net 30 days Quotation expires in 30 days Price does not include tax or shipping • Page 2 STAFF REQUEST ITEM Department: Engineering/Finance Date: 5/28/2014 DESCRIPTION OF REQUEST (Briefly outline what the request is) Purchase of two computers for the Engineering and Finance Departments. These will replace the current computers which are old and are running Windows XP. Windows XP has been reached end of life for Micorsoft and is no longer supported. We are currently working to replace all computers still running XP. FINANCIAL IMPACT (Briefly outline the costs, if any, that are associated with this request and the proposed source of the funds needed to fund the request) Money has been budgeted for this purchase. Total cost will be approximately $2000. ADDITIONAL INFORMATION ATTACHED Yes No X ALL COUNCIL REQUEST ITEMS MUST BE SUBMITTED TO THE CITY CLERK A MINIMUM OF FIVE WORKING DAYS PRIOR TO THE NEXT REGULARLY SCHEDULED COUNCIL MEETING IN ORDER TO BE PLACED IN THE COUNCIL MATERIAL PACKET. Submitted by: Rose Holman Date: 5/28/14 ,4211/414. (96.i?kidtAtidA,/ STAFF REQUEST ITEM Department: MIS Date: 5/28/2014 DESCRIPTION OF REQUEST (Briefly outline what the request is) Purchase of Apple iPad for the MIS Department. This will used for troubleshooting various software/hardware programs and support. FINANCIAL IMPACT (Briefly outline the costs, if any, that are associated with this request and the proposed source of the funds needed to fund the request) Money is available for this purchase in the MIS budget. Total cost will be approximately $600. ADDITIONAL INFORMATION ATTACHED Yes No X ALL COUNCIL REQUEST ITEMS MUST BE SUBMITTED TO THE CITY CLERK A MINIMUM OF FIVE WORKING DAYS PRIOR TO THE NEXT REGULARLY SCHEDULED COUNCIL MEETING IN ORDER TO BE PLACED IN THE COUNCIL MATERIAL PACKET. Submitted by: Rose Holman Date: 5/28/14 am.b.sevIlli" eizitAA4 FLA G MINNESOTA DEPARTMENT OF PUBLIC SAFELY Alcohol & Gambling Enforcement Name of organization Minnesota Department of Public Safety Alcohol and Gambling Enforcement Division 444 Cedar Street, Suite 222, St. Paul, MN 55101 651-201-7500 Fax 651-297-5259 TTY 651-282-6555 APPLICATION AND PERMIT FOR A 1 DAY TO 4 DAY TEMPORARY ON -SALE LIQUOR LICENSE T e Lica(S Address 82.2) Aodev, - Ave . w. Name of person making application City Date organized JI,t v e 21 , tot 3 shllA04 er A -SS I i M a l Nno{ Date set ups will be sold Jll,(1 1$-2-0, 2-0I� Organization officer's name State ElNJ4* Tax exempt number 440-32411(e4 Minnesota Business phone (oSI 5g1 8 '7D Zip Code 6508'2_ Home phone Type of organization Club fl Charitable fl Religious City State Minnesota ther non-profit Zip 50g2— Location where permit will be used. If an outdoor ar�a, describe. 1\1() ► Lowell ��,1-► - d av�� 1� Aro S -h I(vvvc h —file area_ [An l I fvicI arid w rsfh�JIfhe appnt will contract for intoxicatingliquor servicegive the name and address of the liquor license providingthe service. q If the applicant will carry liquor liability insurance please provide the carrier's name and amount of coverage. APPROVAL APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL AND GAMBLING ENFORCEMENT City/County Date Approved e )(426©x. � $,75,'O City Fee Am nt Permit Date —/9—/4 Date Fee Paid Signature City Clerk or County Official Approved Director Alcohol and Gambling Enforcement NOTE: Submit this form to the city or county 30 days prior to event. Forward application signed by city and/or county to the address above. If the application is approved the Alcohol and Gambling Enforcement Division will return this application to be used as the permit for the event. Page 1 of 1 MEMORANDUM TO: Mayor and City Council FROM: Larry D. Hansen, City Administrator SUBJECT: Non -Exclusive Wharfage Permit St. ix Sailing Club Mr. John Henley, St. Croix Sailing Club has submitted a request for a non-exclusive wharfage permit to accommodate 12-15 sailboats at the Levee adjacent to South Lowell Park for June 28 and June 29' 2014. They requested and Council approved a wharfage permit last year. I am not aware of any complaints or problems from last year. There is no charge for this permit. RECOMMENDATION: Staff recommends approval of the request and issuance of the Non -Exclusive Wharfage Permit. APPROVAL OF NON-EXCLUSIVE WHARFAGE PERMIT BETWEEN THE CITY OF STILLWATER AND JOHN HENLEY, ST. CROIX SAILING CLUB BE IT RESOLVED, by the City Council of Stillwater, Minnesota that the Non -Exclusive Wharfage Permit between the City of Stillwater and John Henley, St. Croix Sailing Club, as on file with the City Clerk, is hereby approved and authorizes the Mayor and City Clerk to sign the permit. Adopted by the City Council of the City of Stillwater this 3rd day of June, 2014. Ken Harycki, Mayor ATTEST: Diane F. Ward, City Clerk NON-EXCLUSIVE WHARFAGE PERMIT THIS PERMIT, made this 3rd day of June, 2014, by and between the City of Stillwater, a Minnesota municipal corporation ("City"), and JOHN HENLEY, ST. CROIX SAILING CLUB, ("Permittee"). WITNESSETH, the City, in consideration of the following covenants, does hereby allow Permittee to temporary wharfage on the St. Croix River. 1. Description of Vessels. A non-exclusive wharfage permit to accommodate 1245 sailboats. 2. Description of Mooring Site. Levee adjacent to South Lowell Park. 3. Term. This permit will be for the following term: June 28 and 29th, 2014. 4. Cancellation. The City reserves the right to cancel this Wharfage Permit at any time after 24 hours written notice of cancellation. 5. Fee. Prior to the permit taking effect, the Permittee must pay to the City Clerk a permit fee of $0. 6. Utilities. Permittee is solely responsible for its own utility charges, including electricity, water, gas, and garbage collection. 7. Non -Exclusive. Permittee may use the premises described in common with the public and other boat users and any wharfage fee will not grant any special use or favor to the Permittee beyond the rights of the public, except as specifically granted in the permit. 8. As Is. The City makes no warranty relative to the river and the Permittee takes the same as is and assumes all risks incidental thereto. 9. Hold Harmless and Indemnity. Permittee will indemnify and hold harmless the City from any and all claims or causes of action or damage arising out of the Permittee's activities of the premises. 10. Swimming or Diving Prohibited. The Permittee will not allow any swimming or diving from any moored vessel and will post in a conspicuous place on the vessel a sign for the purpose of warning patrons that must read as follows: "NO SWIMMING OR DIVING WITHIN 100 FEET OF LEVEE." 11. Additional Requirements. The City reserves the right to impose additional restrictions upon the Permittee, if necessary, to protect the health, safety or welfare of the inhabitants of the City. IN TESTIMONY WHEREOF, both parties have hereunto set their hands and seals the day and year hereinbefore written, CITY OF STILLWATER: By Ken Harycki, Mayor and Diane F. Ward, City Clerk PERMITTEE: ST. CROIX SAILING CLUB By John Henley Its STATE OF MINNESOTA ) COUNTY OF WASHINGTON ) On this 3rd day of June, 2014, before me a Notary Public, within and for said County and State, personally appeared Ken Harycki and Diane F. Ward, to me personally known to be the Mayor and City Clerk of the City and that the instrument was signed by authority of the City Council. Notary Public STATE OF MINNESOTA ) COUNTY OF WASHINGTON ) On this day of June, 2014, before me a Notary Public, within and for said County and State, personally appeared John Henley, the , duly authorized agent of St. Croix Sailing Club. Notary Public iliwater HBIRTHPLACE O 1- MINNESOTA MEMORANDUM TO: Mayor and City Council FROM: Tim Moore, Public Works Superintendant DATE: May 29, 2014, SUBJECT: Possible Purchase 2014 Case DV23 Dual Drum Roller Background Currently, the City of Stillwater Public Works Department has a 1980 Rosco Asphalt roller. This piece of equipment is over 34 years old, Tacks many of the safety features on newer rollers, has limited parts availability and lacks the ability to be used on many larger projects done by city forces. Discussion Public works has tested rollers over the past year built by several manufactures of medium duty and heavy equipment. Staff has felt that one particular roller manufactured by Case will best suit the needs of the city for years to come. Titan Machinery Construction Division from Rogers, MN is the Case dealer and submitted a quote for a 2014 Case DV23 Dual Drum roller of $30,000.00 including $4000 for the trade in of the 1980 Rosco roller and Mark Twain conveyor. Recommendation Staff recommends the purchase of the 2014 Case DV23 Dual Drum roller from Titan Machinery Construction Division for $30,000.00 including the trade in of the 1980 Rosco roller. This purchase will be paid for from the $30,000.00 budgeted in Streets Capital Outlay. 40.4,-N4L i,? Page 1 of 1 http://www.casece.com/en us/Gallery/Photo/CMP DV23/CMP DV23_Photo2_500x333.j... 5/29/2014 MAGNUSON LAW FIRM LICENSED IN MINNESOTA AND WISCONSIN THE GRAND GARAGE 324 MAIN STREET SOUTH • SUITE #260 ' STILLWATER, MN 55082-5165 TELEPHONE: (651)439-9464 • FACSIMILE: (651)439-5641 www.MAGNusoNLAwFam.com DAVID T. MAGNUSON CASI R. BUTTS DTMAGNUSON@MAGNUSONLAWFIRM.COM CRB a MAGNUSONLAWFIRM.COM MEMORANDUM TO: Mayor, City Council and Staff FROM: David T. Magnuson DATE: May 29th, 2014 RE: Public Hearing on Creation of Tax Increment Financing District No. 11 and the Adoption of A Financing Plan Therefor Enclosed is a copy of the proposed Tax Increment Plan for Tax Increment Financing District No. 11. This Redevelopment District is proposed to have a twenty-five year duration and intended to assist with City redevelopment of a dilapidated site within the City. The Development expected to occur within the District is set forth in a section of the Plan and the maps and fiscal studies attached to the District Plan are integral to your consideration. Also enclosed are copies of the required invitations to comment sent to the County of Washington, the local County Commissioner and School District No. 834. We suggest that the hearing be opened for public comment but that the Council take action on the approval or creation of the District. At that hearing we will assist the Council in developing the necessary written findings and supporting facts for a number of determinations with regard to the District that are required by State law a draft of a proposed resolution and findings are attached to this report under tab G. Staff will be willing to answer questions that the Mayor and Council might have and assist in answering questions posed by the public. Respectfully, DTM/jp Attachments 2 David T. Stillwater nuson Attorney CITY OF STILLWATER, MINNESOTA DOCUMENTS RELATED TO ESTABLISHMENT OF Tax Increment Financing District No. 11 June 3, 2014 TABLE OF CONTENTS CITY OF STILLWATER, MINNESOTA CITY OF STILLWATER FOR THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 11 (a Redevelopment District) City Resolution Calling for Public Hearing A Notice to County Board Member, Gary Kriesel, who Represents District Regarding Tax Increment Financing District No. 11, Affidavit of Service on Gary Kriesel.. B Notice to County Auditor, Kevin Corbid, Assessment & Taxation Department Regarding Tax Increment Financing District No. 11, Affidavit of Service upon Kevin Corbid ........0 Notice to Clerk, George Hoeppner, School District No. 834 Regarding Tax Increment Financing District No. 11 and Affidavit of Service upon George Hoeppner D Building Inspection Report E Public Hearing Notice and Affidavit of Publication F City Minutes and Resolution Approving Tax Increment Financing District No. 11 (proposed) .G Certificate of Filing .... (future action) Tax Increment Financing Plan ..I County Auditor's Certificate of Original Net Tax Capacity (future action) ..J Certificate of Filing Plan with Minnesota Department of Revenue (future action) K Contract for Private Redevelopment between the City and Stillwater Caves, LLC State of Minnesota County of Washington City of Stillwater i11water Administration CERTIFICATION I, Diane F. Ward, City Clerk of the City of Stillwater, Minnesota, do hereby certify that the attached RESOLUTION NO. 2014-061, RESOLUTION CALLING FOR A PUBLIC HEARING BY THE CITY COUNCIL ON THE PROPOSED ADOPTION OF A MODIFICATION OF THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE PROPOSED ADOPTION OF THE TAX INCREMENT FINANCING PLAN FOR DISTRICT NO. 11, is a true and correct copy of said Resolution on file in the office of the City Clerk. SEAL • /ea/Vea...ra • Diane F. Ward, City Clerk RESOLUTION NO. 2014-061 RESOLUTION CALLING FOR A PUBLIC HEARING BY THE CITY COUNCIL ON THE PROPOSED ADOPTION OF A MODIFICATION OF THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE PROPOSED ADOPTION OF THE TAX INCREMENT FINANCING PLAN FOR DISTRICT NO. 11 BE IT RESOLVED by the City Council (the "Council") of the City of Stillwater, Minnesota (the "City"), as follows: Section 1, Public Hearing. This Council will meet on June 3, 2014, at approximately 7:00 p.m., to hold a public hearing on the proposed adoption of a Modification to the Development Program for Development District No. 1, all pursuant to Minnesota Statutes Section 469.124 to 469.134, inclusive, as amended, the proposed Adoption of the Financing Plan of Tax Increment Financing District No. 11 (a "Redevelopment District"), all pursuant to and in accordance with Minnesota Statutes Sections 469.174 to 469.179, inclusive, as amended. Section 2. Notice of Hearing; Filing of Program Modification and Plan. The City Attorney is authorized and directed to prepare a Modification to the Development Program for Development District No. 1 and a Tax Increment Financing Plan for Tax Increment Financing District No. 11 and to forward documents to the appropriate taxing jurisdictions, including Washington County and Independent School District No. 834. The City Administrator is authorized and directed to cause notice of the hearing, together with an appropriate map as required by law, to be published at least once in the official newspaper of the City not later than 10 nor more than 30 days prior to June 3, 2014, and to place a copy of the Program Modification and Plan_on file in the City Administrator's office at City Hall and to make the copy available for inspection by the public. Dated: April 15, 2014 Attest: Larry D. Hagen, City Administrator STATE OF MINNESOTA ) ) ss COUNTY OF WASHINGTON ) AFFIDAVIT OF MAILING I, Barbara A. Simonet, being duly sworn upon oath, state that on the 16th day of April, 2014, I mailed the Tax Increment Financing Plan for Tax Increment Financing District No. 11 within Development District No. 1, for the Public Hearing to be held by the City Council on June 3rd, 2014, by enclosing a true and correct copy thereof an envelope, addressed as follows: Commissioner Gary Kriesel Washington County Government Center 14949 — 62nd Street North Stillwater, MN 55082-0006 Mr. George Hoeppner Clerk Independent School District No. 834 1875 South Greeley Street Stillwater, MN 55082 Mr. Kevin Corbid Auditor/Treasurer Washington County Government Center 14949 — 62nd Street North Stillwater, MN 55082-0006 which are the last known addresses of said parties and depositing the same, with postage prepaid, in the United States mail at Stillwater, Minnesota. Subscribed and sworn to before me this 16th day of April, 2014. Barbara A. Simonet JULIE ANN PARKS Notary Public r Minnesota MAGNUSON LAW FIRM LICENSED IN MINNESOTA AND WISCONSIN THE GRAND GARAGE 324 MAIN STREET SOUTH • SUITE 4260 • STILLWATER, MN 55082-5165 TELEPHONE: (651) 439-9464 • FACSIMILE: (651) 439-5641 WWW . MAGNU S ON LA W FI RM. COM DAVID T. MAGNUSON DTMAGNUSON@MAGNUSONLAWFIRM. COM April 16, 2014 Commissioner Gary Kriesel Washington County Government Center 14949 — 62nd Street North Stillwater, MN 55082-0006 Re: Tax Increment Financing District Plan for Establishment of Tax Increment Financing District No. 11 Dear Commissioner Kriesel: CASI R. Burrs CRB@MAGNUSONLAWFIRM.COM Enclosed please find one (1) copy of the proposed Tax Increment Financing Plan for Tax Increment Financing District No. 11 within Development District No. 1, all within the City of Stillwater, to be considered by the City Council of the City of Stillwater at a hearing to be held at approximately 7:00 p.m. on June 31d, 2014, at City Hall. The Minnesota Tax Increment Financing Act at Section 469.175, Subd. 2a, of the Minnesota Statutes requires that prior to the establishment of a tax increment financing district, the City must provide an opportunity to the members of the County Board to meet with the City to review the fiscal and economic implications of the proposed tax increment financing plan. The City proposes to establish the Tax Increment Financing Plan for Tax Increment Financing District No. 11 in order to facilitate the redevelopment of Historic buildings in the Downtown area of the City into a mixed use redevelopment consisting of a 35 room boutique hotel, a restaurant and retail spaces. We invite you to attend the Public Hearing to be held by the City Council on June 3rd, 2014, beginning at approximately 7:00 p.m., or to direct any comments or questions you may have to my office. It would be most helpful if written comments could be submitted prior to the Hearing. Also, City Staff would be happy to meet with you with regard to the proposal. Yours very truly, David T. Magri son Stillwater City Attorney DTM/bas Enclosure (TIF Plan District 11) STATE OF MINNESOTA COUNTY OF WASHINGTON ) ss AFFIDAVIT OF MAILING I, Barbara A. Simonet, being duly sworn upon oath, state that on the 16th day of April, 2014, I mailed the Tax Increment Financing Plan for Tax Increment Financing District No. 11 within Development District No. 1, for the Public Hearing to be held by the City Council on June 3`d, 2014, by enclosing a true and correct copy thereof an envelope, addressed as follows: Commissioner Gary Kriesel Washington County Government Center 14949 — 62nd Street North Stillwater, MN 55082-0006 Mr. George Hoeppner Clerk Independent School District No. 834 1875 South Greeley Street Stillwater, MN 55082 Mr. Kevin Corbid Auditor/Treasurer Washington County Government Center 14949 — 62nd Street North Stillwater, MN 55082-0006 which are the last known addresses of said parties and depositing the same, with postage prepaid, in the United States mail at Stillwater, Minnesota. Subscribed and sworn to before me this 16th day of April, 2014. Barbara A. Simonet JUL IE ANN PARKS Not2ry Public Gur"7;s��4 &4 ri 4 Januar 31 2015 = MAGNUSON LAW FIRM LICENSED IN MINNESOTA AND WISCONSIN THE GRAND GARAGE 324 MAN STREET SOUTH • SUITE #260 • STILLWATER, MN 55082-5165 TELEPHONE: (651) 439-9464 • FACSIMILE: (651)439-5641 W W W.MAGNUSONLAWFIRM.COM DAVID T. MAGNUSON DTMAGNUSON@MAGNUSONLAWFIRM.COM Mr. Kevin Corbid Auditor/Treasurer Washington County Government Center 14949 — 62nd Street North Stillwater, MN 55082-0006 April 16, 2014 Re: Tax Increment Financing District Plan for Establishment of Tax Increment Financing District No. 11 Dear Mr. Corbid: CASI R. BUTTS CRB tt MAGNUSONLA WFIRM. COM Enclosed please find one (1) copy of the proposed Tax Increment Financing Plan for Tax Increment Financing District No. 11 within Development District No. 1, all within the City of Stillwater, to be considered by the City Council of the City of Stillwater at a hearing to be held at approximately 7:00 p.m. on June 3rd, 2014, at City Hall. The Minnesota Tax Increment Financing Act at Section 469.175, Subd. 2a, of the Minnesota Statutes requires that prior to the establishment of a tax increment financing district, the City must provide an opportunity to the members of the County Board to meet with the City to review the fiscal and economic implications of the proposed tax increment financing plan. The City proposes to establish the Tax Increment Financing Plan for Tax Increment Financing District No. 11 in order to facilitate the redevelopment of Historic buildings in the Downtown area of the City into a mixed use redevelopment consisting of a 35 room boutique hotel, a restaurant and retail spaces. We invite you to attend the Public Hearing to be held by the City Council on June 3rd, 2014, beginning at approximately 7:00 p.m., or to direct any comments or questions you may have to my office. It would be most helpful if written comments could be submitted prior to the Hearing. Also, City Staff would be happy to meet with you with regard to the proposal. Yours very truly, David T. lagnu.on Stillwater ttomey DTM/bas Enclosure (TIF Plan District 11) STATE OF MINNESOTA COUNTY OF WASHINGTON ) ss AFFIDAVIT OF MAILING I, Barbara A. Simonet, being duly sworn upon oath, state that on the 16th day of April, 2014, I mailed the Tax Increment Financing Plan for Tax Increment Financing District No. 11 within Development District No. 1, for the Public Hearing to be held by the City Council on June 3rd, 2014, by enclosing a true and correct copy thereof an envelope, addressed as follows: Commissioner Gary Kriesel Washington County Government Center 14949 — 62nd Street North Stillwater, MN 55082-0006 Mr. George Hoeppner Clerk Independent School District No. 834 1875 South Greeley Street Stillwater, MN 55082 Mr. Kevin Corbid Auditor/Treasurer Washington County Government Center 14949 — 62nd Street North Stillwater, MN 55082-0006 which are the last known addresses of said parties and depositing the same, with postage prepaid, in the United States mail at Stillwater, Minnesota. Subscribed and sworn to before me this 16th day of April, 2014. Notary Public Barbara A. Simonet JULIE ANN PARKS Notary Pudic Minnesota" C C;uv sSvJssiw � E ,Jan :31: 2095 MAGNUSONLAWFIRM LICENSED IN MINNESOTA AND WISCONSIN THE GRAND GARAGE 324 MAIN STREET SOUTH • SUITE 4260 • STILLWATER, MN 55082-5165 TELEPHONE: (651) 439-9464 • FACSIMILE: (651) 439-5641 W W W. MAGNUSONLAWFIRM.COM DAVID T. MAGNUSON DTM4GNUSON Ct MAGNUSoNLAWFIRM.COM Mr. George Hoeppner, Clerk Independent School District No. 834 1875 South Greeley Street Stillwater, MN 55082 April 16, 2014 CASI R. BUTTS CRB@MAGNUSONLAWFIR:M.COM Re: Tax Increment Financing District Plan for Establishment of Tax Increment Financing District No. 11 Dear Mr. Hoeppner: Enclosed please find one (1) copy of the proposed Tax Increment Financing Plan for Tax Increment Financing District No. 11 within Development District No. 1, all within the City of Stillwater, to be considered by the City Council of the City of Stillwater at a hearing to be held at approximately 7:00 p.m. on June 3rd, 2014, at City Hall. The Minnesota Tax Increment Financing Act at Section 469.175, Subd. 2a, of the Minnesota Statutes requires that prior to the establishment of a tax increment financing district, the City must provide an opportunity to the members of the School Board to meet with the City to review the fiscal and economic implications of the proposed tax increment financing plan. The City proposes to establish the Tax Increment Financing Plan for Tax Increment Financing District No. 11 in order to facilitate the redevelopment of Historic buildings in the Downtown area of the City into a mixed use redevelopment consisting of a 35 room boutique hotel, a restaurant and retail spaces. We invite you to attend the Public Hearing to be held by the City Council on June 3rd, 2014, beginning at approximately 7:00 p.m., or to direct any comments or questions you may have to my office. It would be most helpful if written comments could be submitted prior to the Hearing. Also, City Staff would be happy to meet with you with regard to the proposal. Yours very truly, David T. Ma Stillwater City DTM/bas Enclosure (TIF Plan District 11) son ttorney Redevelopment Eligibility Assessment Proposed Luna Rosa Redevelopment Area Stillwater, MN Prepared by: City of Stillwater Community Development T)epartment QUALIFICATION REQUIREMENTS The properties were surveyed and evaluated to ascertain whether the qualification tests for tax increment eligibility fbr a redevelopment district, required under the following Minnesota Statutes, could be met. Minn.esoia Statute Section 469.174, Subdivision 10, clause (a) (1) requires two tests for occupied parcels: 1. Coverage Test - "parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots or similar structures..." Note: The coverage required by the parcel to be considered occupied is defined under Minnesota Statute Section 469.174, Subdivision 10, clause (e) which states: "For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures unless 15% of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots or other similar structures." 2. Condition of Buildings Test - " ... and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; " The tetiu 'structurally substandard', as used in the preceding paragraph, is defined by a two-step test: Step One: Under the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10, clause (b), a building is structurally substandard if it contains "defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar :factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." Step Two:. Notwithstanding the foregoing, the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10, clause (c) also provides that a building may not be considered structurally substandard if it: "... is in compliance with building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site." Based on the above requirements, the substandard determination of a particular building is a two- step process; therefore, the findings of each step are independent of each other and both steps must be satisfied in order for a building to be found structurally substandard. It is not sufficient to conclude that a building is structurally substandard solely because Step 2 is satisfied. It is theoretically possible for a building to require extensive renovation in order to meet current building codes but still not meet the main test of Step 1. 1 Furthermore, deficiencies included in Step 1 may or may not include specific code deficiencies as listed in Step 2. In many cases, specific building code deficiencies may well contribute to the data which supports satisfying Step 1; conversely, it is certainly possible that identified hazards or other deficiencies which could be included in Step 1 do not necessarily constitute current building code deficiencies. By definition, the nature of the two steps is slightly different. Step 1 is more subjective, whereas Step 2 is an objective test. Step 1 deficiencies are less technical and not necessarily measurable to the same extent of the code deficiencies in Step 2. To the end that technical, measurable building code deficiencies support the satisfaction of the less technical Step 1, the following code requirements are defined in terms that go beyond the technical requirements of the code and demonstrate their relevance in teinrs deficiencies in essential utilities and facilities, light and ventilation, etc. .." International Building Code (IBC): The purpose of the IBC is to provide minimum standards to safeguard life or limb, health, property and public welfare by regulating and controlling the design, construction, quality of materials, use and occupancy, location and maintenance of all buildings and structures (IBC 101.3). A deficiency in the building code (insufficient number of building exits, insufficient door landing area, etc.) adversely affects one or more of the above standards to safeguard 'life or limb .. .and public welfare; therefore, a deficiency in the building code is considered a deficiency in one or more "essential utilities and facilities, light and ventilation, etc.", Minnesota Accessibility Code. Chanter 1341: This chapter sets the requirernents for accessibility all building occupancies. The Minnesota Accessibility Code closely follows the Americans with Disabilities Act Accessibility Guidelines (ADAAG) which sets the guidelines for accessibility to places of public accommodations and commercial facilities as required by the Americans with Disabilities Act (ADA) of 1990. The ADA is a federal anti -discrimination statute designed to remove barriers that prevent qualified individuals with disabilities from enjoying the same opportunities that are available to persons without disabilities (ADA Handbook). Essentially, a deficiency in the accessibility code (lack of handrail extension at stairs or ramp, lack of clearance at a toilet fixture, etc.) results in a discrimination against disabled individuals; therefore, a deficiency in the accessibility code is considered a deficiency in "essential utilities and facilities". Minnesota Food Code. Chapter 4626: This chapter is enforced by the Minnesota Department of Health and is similar to the 113C in that it provides minimum standards to safeguard public health in areas ofpublicicommercial food preparation. A deficiency in the food code (lack of non-absorbent wall or ceiling finishes, lack of hand sink, etc.) causes a condition for potential contamination of food; therefore, a deficiency in the food code is considered a deficiency in "essential utilities and facilities". National Electric Code (NEC): The purpose of the NEC is the practical safeguarding of persons and property from hazards arising from the use of electricity. The NEC contains provisions that are considered necessary for safety (NEC 90-1 (a) and (b)). A deficiency in the electric code (insufficient electrical service capacity, improper wiring, etc.) causes a hazard from the use of electricity; therefore, a deficiency in the electric code is considered a deficiency in "essential utilities and facilities". International Mechanical Code (IMC): The purpose of the IMC is to provide Minimum standards to safeguard life or limb, health, property and public welfare by regulating and controlling the design, construction, installation, quality of materials, location, operation, and maintenance or use of heating, ventilating, cooling, and other appliances (IMC 101.3). The IMC sets specific requirements for building ventilation, exhaust, intake and relief. These requirements translate into a specified number of complete clean air exchanges for a building based on its occupancy type and occupant load. A deficiency in the mechanical code adversely affects the 'health ... and public welfare' of a building's occupants; therefore, a deficiency in the mechanical code is considered a deficiency in "light and ventilation". Note: The above list represents some of the more common potential code deficiencies considered in the assessment of the buildings in the proposed district. This list does not necessarily include every factor included in the data used to satisfy Step 1 for a particular building. Refer to individual building reports for specific findings. Finally, the tax increment law provides that the municipality may find that a building is not disqualified as structurally substandard under Step 2 on the basis of "reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. Items of evidence that support such a conclusion [that the building is structurally substandard] include recent fire or police inspections, on-site property appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence." MEASUREMENTS AGAINST TECHNICAL TEST REQUIREMENTS COVERAGE TEST • The total square foot area of each property parcel was obtained from county records (GIS) and general site verification. The total extent of site improvements on each property parcel was digitized from recent aerial photography. The total square footage of site improvements was then digitally measured and confirmed by general site verification. The total percentage of coverage of each property parcel was computed to determine if the 15% requirement was met. Refer to the attached maps: Impervious Surfaces map and Percent Impervious by Parcel map. The total percentage of all qualifying property parcels was compared to the total area of all parcels to determine if the 70% requirement was mel. The area occupied by public rights-of-way has not been considered in the coverage test calculations. The study revealed that the total area of the District is 25, 369 square feet and 24,321 square feet are covered. Therefore, 96% of the area is covered well in excess of the required 70%. 3 CONDITIONS OF BUILDING TEST Building Deficiencies: Step 1 (systems Condition Deficiencies) — determining the combination of defects or deficiencies of sufficient total significance to justify substantial renovation or clearance. On-site evaluations — Evaluation of each building was made by reviewing available information from city records and making interior and/or exterior evaluations. The evaluator noted deficiencies in structural elements, essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors. The inspection revealed substantial structural deficiencies. If action is not taken soon the structure area is in significant danger of collapse. Building Deficiencies: Step 2 (Code Deficiencies) — determining technical conditions that are not in compliance with current building code applicable to new buildings and the cost to correct the deficiencies: The report of AMCON dated October 14, 2013 is incorporated into these findings as if set forth verbatim. The report is attached as Exhibit "A". The estimated cost of new construction of the same square footage structure to average commercial standards is estimated to be $4,000,000, The extra only costs related to code deficiency is evaluated to be $1,462,000. Therefore, in order to correct deficiencies in the existing structure to satisfy the Building Codes it would cost 36.6% of the cost of constructing a new structure of the same square footage and type on the site. Dated: May 13, 2014 4 Respec ally Submitted: Bill ` u ...bla Community Development Director Cindy Sehi Building Official $LAfvc. �rSror / J Lia I . G'tiST!W^ICN MANAGEMENT I GE'I RAI. CONTRACTING subject: Stillwater Hotel Date: October 14, 2013 The following is an overview of extraordlnary costs associated with the renovation/repositioning of the existing property consisting of 4 buildings and general parking area located at402 South Main street, Stillwater Mn. The attached plan Identifies four primary buildings induded in the work. These are identified as the North three story building currently housing a retail space on the 1st floor and two stories of unoccupied space, a Center infill building consisting of a single story restaurant with an partial 2r4 story condominium, the four story south building (originally 5 story) housing the balance of restaurant at the :a floor and floors 2-4 are currently unoccupied. The two story East wing Is comprised of a 1SI floor coffee/Ire cream shop and second floor unoccupied one bedroom apartment. The goal of the Stillwater Hotel project is to reposition this existing non-performing property into a viable Stillwater destination comprised of a 42 room boutique hotel with related support retail, restaurant and bar. General scope of work is comprised of the following: Exterior Restoration/sfte development: $591,800 The four buildings are in various levels of general deterioration. Scope of work assodated with the exterior restoration consist primarily of overall building tuck pointing of masonry /stone joints, reconstruction of existing parapets, cutting new /restoration of existing openings, reconstruction of existing brick corbelling condition at two story east building, structural stabilization of south building's south and west walls and the retaining wall surrounding the upper parking area. Included in pricing is media blasting of interior stone/masonry wall scheduled for exposure within future finished spaces. Demolition/primary structural modification $332,200 All four buildings are in various stages of partial demolition, Included in this portion of the work is general demolition of existing occupied and unoccupied interior spaces, removal of exlsting/temporary roofing, exterior demolition consisting of cutting of new openings, excavation of existing/demolition associated with the lnfilled south building lost in earlier fire. Structural modification as part of this scope of work consists of installation of new foundation/ structural steel framing associated with stabilizing the north 3 story building, foundations/structural modification for support of added two story addition above the center infill area, structural modification associated with removal of the existing ice house structural space and reconstruction to accommodate new three story addition above existing. Each area requiring structural modification included cutting/demo of existing stone outcropping/bluff materials necessary for new foundation work. Exhi it A 5565 Elaine Avenue, suite 250, Inver Grove Heights, MN 55076-1207; Te: 651.379.9090 1 Fex: 651 X79.9091 Email: cussev@amconcorstiuction.com ; Website: www.emconconstruction.com DESIGN/BUILD ; CONSTRUCTION MANAGEMENT j GENERA?. corin.p.cmic Interior Reconstruction $127,200 A Structural survey/evaluation of the existing buildirgs has determined several areas within the building lack sufficient shucturai support to accommodate the Improvements planned without primary structural infTestructurc., modification and general reconstruction of floor systems. Structural modification consists of modification to/replacement of existing load bearing walls/beams/framed floor systems necessary to accommodate the planned floor loading. in additional all Floors and roof are scheduled for new primary sheathing to address floor loading distribution, Fire Protection $57,800 The existing 4 buildings are currently protected via a single zone dry fire protection system. This system Is circa 1940-50 vintage which s not compliant with current fire code requirements. Included to budgeting for the building is the complete replacement of the fire protection system consisting of a new fire riser/manifold, all new piping system and restoration/maintetning existing dry system at the existing caves (Dry system require In the cave give no heat source and potential for freeze up of a wet system) The budget above reflects complexity of working within four distinction buildings and related caves, Overfill removal and replacement of fire protection system exceeds $120,000 Elevator $46,200 In order to accommodate Handicapped /ADA accessibility the elevator scheduled for the project requires a 7 stop elevator with front and rear door access to aorommodate due to varying building floor elevation. Budget cast noted above reflects added cost to elevator in order to accommodate needed accessibility. Exterior Upgrades; $207,400 The proposed design scheme has taken into consideration the historic character of the building with emphasis on maintaining the primary East and North elevations. Significant deterioration of the West and South elevations along with e proposed restoration of en existing 3 story portion of the building previously lost in a fire at the south building results in introducing a new exterior finish/character to this side of the building. Intent is to replace/restore existing windows/store fronts and entrances sensitive to original design. The combined projectloned costs associated with restoration/structural modification and sensitivity to historical characteristics of the buildings improvements are projected at $1,462,600 these extraordinary cost add a level cfcomplexity to the project unique to this property typically not germane to a typical green field project development. 5565 Nam Avenue, suite 250, Inver trove Heights, MN 55076-12071 Tei: 651-379.9090 I Fax: 651.379.909! Email: cusise v@amconconstrucuon wm 1 website: www.arrconconstruction.com AFFIDAVIT OF PUBLICATION STATE OF MINNESOTA ) ss COUNTY OF WASHINGTON ) Charlene Vold being duly sworn on an oath, states or affirms that they are the Authorized Agent of the newspaper(s) known as: Stillwater Gazette and has full knowledge of the facts stated below: (A) The newspaper has complied with all of the requirements constituting qualifica- tion as a qualified newspaper as provided by Minn. Stat. f331A.02, §331A.07, and other applicable laws as amended. (B) This Public Notice was printed and pub- lished in said newspaper(s) for I succes- sive issues; the first insertion being on 05/07/2014 and the last insertion being on 05/07/2014. By: QL�- a Authorized Agent Subscribed and sworn to or affirmed before me on 05/07/2014. 1)0,314,4 M Notary Public Rate Information: (I) Lowest classified rate paid by commercial users for comparable space: 540.00 per column inch Ad ID 216314 City of Stillwater (Official Publication) NOTICE.OF PUBLIC HEARING OF THE CITY OF STILLWATER COUNTY OF WASHINGTON STATE OF MINNESOTA NOTICE IS HEREBY GIVEN that the City Council of the City of Stillwater, County of Washington, State of Minnesota, will hold a public hearing on Tuesday, June 3-d, 20124 at approximately 7:00 p.m., at City Hall, 216 North Fourth Street, Stillwater, Minnesota, on the following matters: the proposed adoption of a modification to the Development Program for Development District N. 1, and the establishment of the Tax increment Financing Plan for Tax Increment Financing District No. 11 within Develop- ment District No. 1, pursuant to and in accordance with Minnesota Stat- utes, §469 .124 to 469.134 and 469.17 4 to 469.179. Attached as Exhibit "B" is the area of Tax Increment Financing District No. 11 and attached as Exhibit 'A" is a map of Development District No, 1. IT 13 A copy of the modified Development Program and the Tax Increment Fi- nancing Plan for Tax increment Financing District No. 11 are on file and available for public inspection at the Office of the City Clerk. All interested persons may appear at the hearing and present their views orally or in writing. Dated: May 1, 2014 BY ORDER OF THE CITY COUNCIL /s/ Diane F. Ward, City Clerk 216314 05/07/14 11F Dist 11 PHN CITY OF STILLWATER COUNTY OF WASHINGTON STATE OF MINNESOTA Council member introduced the following resolution and moved its adoption: RESOLUTION NO. 2014— RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1, THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 11 (A REDEVELOPMENT DISTRICT) AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR; THE TERMINATION OF TAX INCREMENT FINANCING, PURSUANT TO AND IN ACCORDANCE WITH MINNESOTA STATUTES SECTIONS 469.124 TO 469.134 AND 469.174 TO 469.179 BE IT RESOLVED by the City Council (the "Council") of the City of Stillwater, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01 The City Council (the "Council") of the City of Stillwater (the "City") has heretofore established Development District No. 1 and adopted the Development Program therefor. It has been proposed by the City that it adopt a modification to the Development Program for Development District No. 1, the establishment of Tax Increment Financing District No. 11 (a "Redevelopment District"), and adopt a Tax Increment Financing Plan (the "Plan") therefor, pursuant to and in accordance with Minnesota Statutes Sections 469.124 TO 469.134 and 469.174 to 469.179. 1.02 The City has investigated the facts relating to this action and has caused the documents needed to take this action to be prepared. 1.03 The City has performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Plan, including, but not limited to, notification of Washington County and Independent School District No. 834 having taxing jurisdiction over the property to be included in the District, notification of the County Commissioner in whose district the City is located, and the holding of a public hearing upon published notice as required by law. 1.04 Certain written reports (the "Reports") relating to the Plan and to the activities contemplated therein have heretofore been prepared by staff and submitted to the Council and are made a part of the City files and proceedings on the Plan. The Reports include data, information and substantiation constituting or relating to the bases for the other findings and determinations made in this Resolution. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this Resolution to the same extent as if set forth in full herein. 1.05 The City is amending the Development Program for Development District No. 1, to accommodate the establishment of Tax Increment Financing District No. 11, but is not altering the boundaries of Development District No. 1. Section 2. Findings for the Adoption and Approval of the Plan. 2.01 The Council hereby finds that the Plans are intended and, in the judgment of this Council, the effect of such actions will be, to provide an impetus for development, having a public purpose and will accomplish the objectives as set forth in the Plan, which are hereby incorporated herein. Section 3. Findings for the Establishment of Tax Increment Financing District No. 11. 3.01 The Council hereby finds that the District is in the public interest and is a "redevelopment district" under Minnesota Statutes, Section 469.174, Subd. 10(a)(1). 3.02 The Council further finds that the proposed redevelopment would not occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Tax Increment Financing Plan, that the Plan conforms to the general plan for the development or redevelopment of the City as a whole; and that the Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development or redevelopment of the project by private enterprise. 3.03 The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reason and supporting facts for each determination in writing, attached hereby as Exhibit A. Section 4. Public Purpose. 4.01. The adoption of the Plan conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the City which is already built up, to provide employment opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. Section 5. Approval and Adoption of the Plan: Establishment of Tax Increment Financing District No. 1. 5.01 The Plan, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established and adopted and shall be placed on file in the office of the City Administrator. There is established in the City within Development District No. 1, Tax Increment Financing District No. 11, the initial boundaries which are fixed and determined in the Plan. 5.02 The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plan and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 5.03 The Auditor of Washington County is requested to certify the original net tax capacity of the District, as described in the Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the City of Stillwater City Council is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. 5.04 The City Administrator is further authorized and directed to file a copy of the Plan with the Commissioner of Revenue. The Motion for the adoption of the foregoing resolution was duly seconded by Council member Junker, and upon a vote being taken thereon, the following voted in favor thereof: Councilmembers and the following voted against the same: None. Dated: June 3rd, 2014. CITY OF STILLWATER Ken Harycki, Mayor ATTEST: Diane F. Ward, City Clerk EXHIBIT A The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 11, as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, are as follows: 1. Finding that Tax Increment Financing District No. 11 is a redevelopment district as defined in Minnesota Statutes. Section 469.174, Subd. 10(a)(1). The District consists of 14 parcels. Each parcel is at least 70 percent occupied by buildings, streets, utilities, paved or gravel parking lots, or vacant, unused, inappropriately used rail yards, railroad right—of—way and excessive or abandoned railroad right—of—way. A parcel was not considered occupied unless it was at least 15% covered by buildings or paved parking lots. The total percentage of all qualifying property parcels was compared to the total area of all parcels to determine if the 70% requirement was met. The area occupied by public right-of-way has not been considered in the coverage test calculations. The study revealed that the total area of the District is 25, 369 square feet and 24,321 square feet are covered. Therefore, 96% of the area is covered well in excess of the required 70%. Further — Evaluation of each building was made by reviewing available information from city records and making interior and/or exterior evaluations. .The evaluators noted deficiencies in structural elements, essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors. The inspection revealed substantial structural deficiencies in 100% of the structures. If action is not taken soon the structures are in significant danger of collapse and, in order to correct existing deficiencies in existing structures it would cost 36.6% of the cost of constructing new structures of the same square footage and type on the site. The above information is contained in the Redevelopment Eligibility Report prepared by the Community Development Department dated May 13, 2014, which report is on file in the Office of the City Clerk and which report is adopted by reference in these findings. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur within the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of tax Increment Financing District No. 11 permitted by the Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the redevelopment proposed in this Plan meets the City's objectives for redevelopment. Due to the high cost of redevelopment on the parcels currently occupied by substandard buildings, and the cost of financing proposed improvements, development is feasible only through assistance, in part, from tax increment financing. The parcels in this site have remained undeveloped because of the high costs associated with building code compliance and the correction of deficiencies. This information is also contained in the Redevelopment Eligibility Reports. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the Plan: The City supports this fording on the grounds that the cost of site and public improvements and utilities add unreasonably to the total redevelopment cost. Historically, site and public improvement costs in the plan area have made redevelopment unfeasible without tax increment assistance. Therefore, the City reasonably determines that no other redevelopment of similar scope is anticipated in the plan area without substantially similar assistance being provided to the development. The City finds that no development would occur in the plan area without the assistance that can be provided with tax increment. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. If all development which is proposed to be assisted with tax increment were to occur in the District, the total increase in market value would be up to $9,333,702. The present value of tax increments from the District is estimated to be $3,556,544. It is the Council's finding that no development with a market value greater than $9,333,702 would occur without tax increment assistance in this district within 25 years. This finding is based upon evidence from general past experience with the high cost of acquisition and public improvements in the general area of the District (see Cash flow analysis in Exhibit B of the TIF Plan). 3. Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 11 conforms to the general plan for the development or redevelopment of the municipality as a whole. 4. Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 11 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Development District No. 1 by private enterprise. The site contains remnants of old foundations, and dilapidated stone buildings, and ground water seepage have made development and redevelopment unfeasible. Redevelopment will require significant dewatering because of ground water seepage from the outcropping of limestone in the area. Redevelopment of Area with mixed uses that will provide maximum opportunity for the citizens of the City, consistent with the sound needs of the City for redevelopment of Area by private enterprise. 5. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax base of the State and add a high quality development to the City. THE CITY OF STILLWATER MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 and the TAX INCREMENT FINANCING PLAN For the establishment of TAX INCREMENT FINANCING DISTRICT NO. 11 (A REDEVELOPMENT DISTRICT) within DEVELOPMENT DISTRICT NO. 1 Public Hearing for consideration of adoption June 3rd, 2014 TABLE OF CONTENTS Page Article 1— 1 Modification to the Development PROGRAM for Development DISTRICT No. 1 1 Section 1.01. Forward. 1 Article 2 — 1 Tax Increment Financing Plan for Tax Increment Financing District No. 11 1 Section 2.01. Forward. 1 Section 2.02. Statutory Authority. 1 Section 2.03. Statement of Objectives. 1 Section 2.04. Development Program Overview. 2 Section 2.05. List of Expected Development Activities. 2 Section 2.06. Property to be Included in the District Acquired. 2 Section 2.07. Classification of the District. 3 Section 2.08. Duration of the District. 4 Section 2.09. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements. 4 Section 2.10. Sources of Revenue/Bonded Indebtedness. 6 Section 2.11. Uses of Funds 7 Section 2.12. State Tax Increment Financing Aid (Local Contribution). 8 Section 2.13. Fiscal Disparities Election. 9 Section 2.14. Business Subsidies. 9 Section 2.15. County Road Costs. 9 Section 2.16. Estimated Impact on Other Taxing Jurisdictions 10 Section 2.17. Supporting Documentation. 10 Section 2.18. Definition of Tax Increment Revenues ..10 Section 2.19. Modifications to the District. 10 Section 2.20. Administrative Expenses. 11 Section 2.21. Limitation of Increment. 12 Section 2.22. Use of Tax Increment 13 Section 2.23. Excess Tax Increments. 14 Section 2.24. Requirements for Agreements with Developer 15 Section 2.25. Assessment Agreements. 15 Section 2.26. Administration of the District. 15 Section 2.27. Annual Disclosure Requirements. 15 Section 2.28. Reasonable Expectations. 16 Section 2.29. Other Limitations on the Use of Tax Increment. 16 Section 2.30. Summary. 17 Exhibit A: Exhibit B Exhibit C Map of Development District No. 1; Map of Proposed Tax Increment District No. 11 Fiscal Analysis for Establishment of District i ARTICLE 1 — MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 Section 1.01. Forward. The following text represents a Modification to the Development Plan for Development District No. 1. This modification represents a continuation of the goals and objectives set forth in the Development Program for Development District No. 1 (District). Generally, the substantive changes include these changes described in Article 2 in the Tax Increment Financing Plan for Tax Increment Financing District No. 11 (Plan). For further information, a review of the Development Program for Development District No. 1 is recommended. It is available from the City Administrator at City Hall. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Development District No. 1. ARTICLE 2 — TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 11 Section 2.01. Forward. The City Council for the City of Stillwater (the "City"), staff and consultants have prepared the following information to expedite the establishment of Tax Increment Financing District No. 11 (the "District"), a redevelopment tax increment financing district, located in Development District No. 1. Section 2.02. Statutory Authority. Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the City has certain statutory powers pursuant to Minnesota Statutes §§469.124 through 469.134, inclusive, as amended, and Minn. Stat. §§469.174 through 469.179, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This Article contains the Tax Increment Financing Plan (the "Plan") for Tax Increment Financing District No. 11. Section 2.03. Statement of Objectives. The District is being created to facilitate the construction of a Hotel, Restaurant and related commercial uses, public and private parking facilities, pedestrian walkways, and right-of- way for sewer, water and storm sewer facilities. A Contract has been entered into on December 13, 2013 between the City of Stillwater and Stillwater Caves, LLC and based upon the commitments set forth in the Contract, development is likely to occur in 2014. This Plan is also expected to achieve many of the objectives outlined in the Development Program for Development District No. 1. The activities contemplated in the Development Program and the Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Development District No. 1 and Tax Increment Financing District 11. Section 2.04. Development Program Overview. 1. Property to be Acquired — In order to marshal' the property and assemble it for Development, the City may acquire fractional interests in property within the District for reconveyance to Developers of the Redevelopment Property. 2. Relocation — Relocation services, to the extent required by law, are available pursuant to Minn. Stat. Chapter 117 and other relevant state and federal laws. 3. The City may perform or provide for some or all necessary construction, relocation, demolition, and required utilities and public street work including storm sewer and percolating water control, pollution and hazardous waste abatement within the District if needed. Section 2.05. List of Expected Development Activities. 1. Hotel in Joseph Wolf Block. A Development contract was executed by the City of Stillwater and Stillwater Caves, LLC a Minnesota Limited Liability Company on December 3rd, 2013, providing for the redevelopment of the Historic Joseph Wolf Block into a 37 room hotel, a 60-80 seat restaurant and up to 4,000 square feet of retail space. Section 2.06. Property to be Included in the District. 1. The following parcels will be included in the District: Parcel Numbers 28.030.20.44.0095 28.030.20.41.0132 28.030.20.41.0140 28.030.20.41.0141 28.030.20.41.0142 28.030.20.41.0143 28.030.20.41.0144 28.030.20.41.0146 28.030.20.41.0149 28.030.20.41.0151 28.030.20.41.0152 28.030.20.41.0153 28.030.20.41.0154 28.030.20.41.0155 2 2. Property to be Acquired. (a) Property to be Acquired — In order to assemble property Development the City may acquire fractional interests in the property within the District for reconveyance to Developers of Redevelopment Property. (b) Relocation — Relocation services, to the extent required by law, are available pursuant to Minn. Stat. Chapter 117 and other relevant state and federal laws. (c) The City may perform or provide for some or all necessary construction, relocation, demolition, and required utilities and public street work storm sewer and percolating water control and pollution and hazardous waste abatement within the District. Section 2.07. Classification of the District. The City, in determining the need to create a tax increment financing district in accordance with Minn. Stat. §§469.174 to 469.179, as amended, inclusive, find that the district, to be established, is a redevelopment district pursuant to Minn Stat. §469.174, Subd. 10(a)(1) as defined below: 1. "Redevelopment district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists: (a) parcels consisting of 70 percent of the area in the district are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; or 2. For purposes of this subdivision, "structurally substandard" means containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. 3. A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. 4. A parcel is deemed to be occupied by a structurally substandard building for purposes of the finding under paragraph (a) if all of the following conditions are met: 3 (a) the parcel was occupied by a substandard building within three years of the filing of the request for certification of the parcel as part of the district with the county auditor. 5. For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots or other similar structures. In meeting the statutory criteria, the City relied on the following facts and findings: El The District is a redevelopment district consisting of 14 parcels. El An inventory shows that parcels consisting of 70 percent of the area in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures. E I An inspection of the buildings located within the District finds that more than 50 percent of the buildings are structurally substandard as defined in the TIF Act. Pursuant to Minn. Stat. §469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of §273.111 or §273.122 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Section 2.08. Duration of the District. Pursuant to Minn. Stat. §469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of the District must be indicated within this Plan. Pursuant to Minn. Stat. §469.176, Subd. lb, the duration of the District will be 25 years after receipt of the first increment by the City. The date of receipt by the City of the first tax increment is expected to be 2015. Thus, it is estimated that the District, including any modifications of the Plan for subsequent phases or other changes, would terminate after 2040, or when the Plan is completed. If increment is received in 2016, the term of the District will be 2041. The City reserves the right to decertify the District prior to the legally required date. Section 2.09. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements. Pursuant to Minn. Stat. §469.174, Subd. 7 and Minn. Stat. §469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2014 for taxes payable 2015. Pursuant to Minn. Stat. §469.177, subds. 1 and 2, the County Auditor must certify in each year (beginning in the payment year 2015) the amount by which the original value has increased or decreased as a result of: 4 1. change in tax exempt status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to adjustments, negotiated or court—ordered abatements; 4. change in the use of the property and classification; 5. change in state law governing class rates; or 6. change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the City. The original local tax rate for the District will be the local tax rate for taxes payable 2015, assuming the request for certification is made before July 1, 2014. The Original Tax Capacity and the Original Local Tax Rate for the District appear in the table below. Pursuant to Minn. Stat. §469.174, Subd. 4 and Minn. Stat. §469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Tax Increment Financing District No. 11, upon completion of the project, will annually approximate tax increment revenues as shown in the table below. The City requests 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2015. The Project Tax Capacity (PTC) listed is an estimate of values when the project is completed. Projected Estimated Tax Capacity upon Completion (PTC) $185,924 Original Estimated Net Tax Capacity (ONTC) $ 36,508 Estimated Captured Tax Capacity (CTC) $149,416 Original Local Tax Rate 116.248% Estimated Annual Gross Tax Increment (CTC x Local Tax Rate) $173,693 Percent Retained by the City 100% Pursuant to Minn. Stat. §469.177, Subd. 4, the City shall, after a due and diligent search, accompany it's required for certification to the County Auditor or its notice of the District enlargement pursuant to Minn. Stat. §469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the Plan by the municipality pursuant to Minn. Stat. §469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. 5 The City has reviewed the area to be included in the District and determined after diligent search that the following building permits have been issued during the 18 months immediately preceding approval of the Plan by the City: Building Permit Date Work Parcel Number Address Numbers Valuation Issued Performed 1. 28.030.20.41.0154 402 Main St. S. 2013-00096 $25,000 3/1/13 Repair Water Damage 2. 28.030.20.41.0154 402 Main St. S. 2012-00462 $3,600 7/1/12 Section 2.10. Sources of Revenue/Bonded Indebtedness. Replace AC behind Forget Me Not Public improvement costs, acquisition, relocation, utilities, parking facilities, streets and sidewalks, site preparation costs and other costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to use other sources of revenue legally applicable to the City and the Plan, including, but not limited to, special assessments, general property taxes, state aid for road maintenance and construction, proceeds from the sale of land, other contributions from developers and investment income, to pay for the estimated public costs. The City reserves the right to incur bonded indebtedness or other indebtedness as a result of the Plan. As presently proposed, the projects will be financed by pay—as—you—go notes and interfund loan/transfers. Additional indebtedness may be required to finance other authorized activities. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The City may also finance the activities to be undertaken pursuant to the Plan through loans from funds of the City or to reimburse the developer on a "pay—as—you—go" basis for eligible costs paid for by a developer. 6 The estimated sources of funds for the District are contained in the table below: REVENUES AND OTHER FINANCING SOURCES (OFSs) BUDGET AMOUNT Tax Increment Revenue $4,168,632 Interest on Invested Funds $500,000 Bond Proceeds $ Loan Proceeds $500,000 Special Assessments $50,000 Sales/Lease Proceeds $ Loan/Advance Repayments $500,000 Grants $ Interfund Loans $4,044,659 TOTAL PROJECT AND FINANCING REVENUES $9,763,291 Section 2.11. Uses of Funds. Currently under consideration for the District is a proposal to facilitate construction of the improvements listed in Section 3.03 of the Plan. The City has determined that it will be necessary to provide assistance to the project for certain costs. The City has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. 7 EXPENDITURES AND OTHER FINANCING USES (OFUs) BUDGET AMOUNT Land/Building Acquisition Site Improvements/Preparation Costs Installation of Public Streets Parking Facilities Streets and Sidewalks Public Park Facilities Social, Recreational, or Conference Facilities Interest Reduction Payments Bond Principal Payments Bond Interest Payments Loan Principal Payments Loan/Note Interest Payments Administrative Expenses Interfund Loans/ interest payments PROJECT COSTS TOTAL $ 3,125,000 $ 3,900,000 $ 1,000,000 $ 1,000,000 $ 50,000 $ —0- -0- -0— $ 0- -0- -0— $ 862,500 $173,497.52 $ 294,219 $ 350,000 $9,763,291.52 The above budget is organized according to the Office of State Auditor (OSA) reporting forms. Estimated costs associated with the District are subject to change among categories without a modification to this Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to Minn. Stat. §469.1763, Subd. 2, no more than 25 percent of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside of the District but within the boundaries of Redevelopment Tax District No. 11, (including administrative costs, which are considered to be spent outside of the District) subject to the limitations as described in this Plan. Section 2.12. State Tax Increment Financing Aid (Local Contribution). Minn. Stat. §273.1399 (LGA/HACA penalty) was repealed by the 2001 Legislature and does not apply to the District. If required by future legislation, it is the City's intention to consider taking the steps necessary to preserve state—paid local government aid. 8 Section 2.13. Fiscal Disparities Election. Pursuant to Minn. Stat. §469.177, Subd. 3, the City may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to Minn. Stat. §469.177, Subd. 3, clause a, (outside the District) are followed, the following method of computation shall apply: 1. The original net tax capacity and the current net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured net tax capacity and no tax increment determination. Where the original net tax capacity is less than the current net tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. 2. The county auditor shall exclude the retained captured net tax capacity of the authority from the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the lesser of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. The City shall submit to the County Auditor at the time of the request for certification which method of computation of fiscal disparities the City Elected. The City chooses to calculate fiscal disparities by clause A. Section 2.14. Business Subsidies. To the extent applicable, the City agrees to comply with Minn. Stat. §116J.993 to 116J.994, which states that a local unit of government granting financial assistance to a business for economic development or job growth purposes, including tax increment financing, must establish business subsidy criteria and approve a business subsidy agreement with the business receiving the assistance. The City has heretofore established business subsidy criteria, all of which is on file with the City Administrator. Section 2.15. County Road Costs. Pursuant to Mimi Stat. §469.175, Subd. la, the county board may require the City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgment of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. 9 If the county elects to use increments to improve county roads, it must notify the City within forty-five days of receipt of this Plan. In the opinion of the City and consultants, the proposed development outlined in this Plan will have little or no impact upon county roads. Section 2.16. Estimated Impact on Other Taxing Jurisdictions. The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the Plan would occur without the creation of the District. However, the City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District is first calculated as if the "but for" test was not met in the Estimated Impact on Other Taxing Jurisdiction Report page of the Fiscal Analysis attached as Exhibit C. The same page of the Fiscal Analysis attached as Exhibit B, displays the captured tax capacity when all construction is completed. The tax rate used for calculations is the final 2014 rate. The total net capacity for the entities listed above are based on final Pay 2014 figures. The District will be certified under the actual 2014/Pay 2015 rates. The estimated impact on other taxing jurisdictions by reason of the establishment of the District prepared by Springsted Financial Consultants is attached as Exhibit C. Section 2.17. Supporting Documentation. Pursuant to Minn. Stat. §469.175, Subd. la, clause 7, the Plan must contain identification and description of studies and analyses used to make the determination set forth in Minn. Stat. §469.175, Subd. 3, clause (2) and the findings are required in the resolution approving the TIF district. A list of reports and studies that support the City's findings is on file at the City. Section 2.18. Definition of Tax Increment Revenues. Pursuant to Minn Stat. §469.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources. 1. taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under Minn. Stat. §469.177; 2. the proceeds from the sale or lease of property, tangible or intangible, purchased by the authority with tax increments; 3. repayments of loans or other advances made by the authority with tax increments; and 4. interest or other investment earnings on or from tax increments. Section 2.19. Modifications to the District. In accordance with Minn. Stat. §469.175, Subd. 4, any: 10 1. reduction or enlargement of the geographic area of Development District No. 1 or the District; 2. increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized; 3. increase in the portion of the captured net tax capacity to be retained by the City; 4. increase in total estimated tax increment expenditures; or 5. designation of additional property to be acquired by the City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original Plan. Pursuant to Minn. Stat. §469.175, Subd. 4(b), the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a redevelopment district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of Minn. Stat. §469.174, Subd. 10, paragraph (a), clauses (1) to (5), must be documented in writing and retained. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from Development District No. 1 or the District; and (2) (a) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or (b) the City agrees that, notwithstanding Minn. Stat. §469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. The City must notify the County Auditor of any modification that reduces or enlarges the geographic area of Tax Increment District No. 11. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the Plan. Section 2.20. Administrative Expenses. In accordance with Minn. Stat. §469.174, Subd. 14, and Minn. Stat. §469.176, Subd. 3, administrative expenses means all expenditures of the City, other than: 1. amounts paid for the purchase of land; 2. amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the project; 3. relocation benefits paid to or services provided for persons residing or businesses located in the project; or 11 4. amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to Minn. Stat. §469.178; or 5. amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in sections 1 to 3. For districts for which the request for .certification were made before August 1, 1979, or after June 30, 1982, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total tax increment expenditures authorized by the Plan or the total tax increment expenditures for Development District No. 1, whichever is less. Pursuant to Minn. Stat. §469.176, Subd. 4h, tax increments may be used to pay for the county's actual administrative expenses incurred in connection with the District. The county may require payment of those expenses by February 15th of the year following the year the expenses were incurred. Pursuant to Minn. Stat. §469.177, Subd. 11, the county treasurer shall deduct an amount (currently at .37 percent) of any increment distributed to the City and the county treasurer shall pay the amount deducted to the state treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. Section 2.21. Limitation of Increment. Pursuant to Minn. Stat. §469.176, Subd. la, no tax increment shall be paid to the City for the District after three (3) years from the date of certification of the Original Net Tax Capacity value of the taxable property in the District by the County Auditor, unless within the three (3) year period: 1. bonds have been issued in aid of the project containing the District pursuant to Minn. Stat. §469.178, or any other law, except revenue bonds issued pursuant to Minn. Stat. §469.152 to 469.165, or 2. the City has acquired property within the District, or 3. The City has constructed or caused to be constructed public improvements within the District. The bonds must be issued, or the City must acquire property or construct or cause public improvements to be constructed by approximately May 1, 2019 and report such actions to the County Auditor. The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited 12 in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to Minn. Stat. §469.176, Subd. 6: "if, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to Minn. Stat. §469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by December 31st of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street." The City or a property owner must improve parcels within the District by approximately May 1, 2018 and report such actions to the County Auditor. Section 2.22. Use of Tax Increment. The City hereby determined that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. to pay the principal of and interest on notes and bonds issued to finance a project; 2. to finance, or otherwise pay the cost of redevelopment of projects pursuant to Minn. Stat. §§469.124 to 469.134; 3. to pay for project costs as identified in the budget set forth in the Plan; 13 4. to finance, or otherwise pay for other purposes as provided in Minn. Stat. §469.176, Subd. 4; 5. to pay principal and interest on any loans, advances or other payments made to or on behalf of the City or for the benefit of projects by a developer; 6. to finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal and interest on bonds pursuant to the Plan or pursuant to Minn. Stat. Chapter 462C., Minn. Stat. §§469.152 through 469.165, and/or Minn. Stat. §469.178; and 7. to accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to Minn. Stat. Chapter 462C, Minn Stat. §469.152 through 469.165, and/or Minn. Stat. §469.178. 8. to repay and retire loans made to the District by the City from other City funds. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by Minn. Stat. §469.176, Subd. 4. Tax increments generated in the District will be paid by Washington County to the City for the Tax Increment Fund of the District. The City will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used by City administration (up to 10 percent) and the costs of public improvement activities inside and outside of the District. Section 2.23. Excess Tax Increments. Pursuant to Minn. Stat. §469.176, Subd. 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the Plan, including the amount necessary to cancel any tax levy as provided in Minn. Stat. §475.61, Subd. 3, the City shall use the excess amount to do any of the following: 1. prepay any outstanding bonds; 2. discharge the pledge of tax increment therefore; 3. pay into an escrow account dedicated to the payment of such bonds; or 4. return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. In addition, the City may, subject to the limitations set forth herein, choose to modify the Plan in order to finance additional public costs in Development District No. 1 or the District. 14 Section 2.24. Requirements for Agreements with Developer. The City will review any proposal for private development to determine its conformance with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the City to demonstrate the conformance of the development with City plans and ordinances. The City may also use the Agreements to address other issues related to the development. Pursuant to Minn Stat. §469.176, Subd. 5, no more than 25 percent, by acreage, of the property to be acquired in the District as set forth in the Plan shall at any time be owned by the City as a result of acquisition with the proceeds of bonds issued pursuant to Minn. Stat. §469.178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of 25 percent of the acreage, the City concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the City should the development or redevelopment not be completed. Section 2.25. Assessment Agreements. Pursuant to Minn. Stat. §469.177, Subd. 8, the City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the county assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the county assessor shall also certify the minimum market value agreement. Section 2.26. Administration of the District. Administration of the District will be handled by the City Administrator. Section 2.27. Annual Disclosure Requirements. Pursuant to Minn. Stat. §469.175, Subd. 5, 6 and 6a the City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board, County Auditor and School Board on or before August 1 of each year. Minn. Stat. §469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by Minn. Stat. §469.175, Subd. 5 and Subd. 6, the Office of the State Auditor will direct the County Auditor to withhold the distribution of tax increment from the District. 15 Section 2.28. Reasonable Expectations. As required by the TIF Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Plan. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon City staff awareness of the feasibility of developing the project site. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Section 2.29. Other Limitations on the Use of Tax Increment. 1. General Limitations. All revenue derived from tax increment shall be used in accordance with the Plan. The revenues shall be used to finance, or otherwise pay the cost of redevelopment of the Development District No. 1 pursuant to the Minn. Stat. §469.090 to 469.1082. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. 2. Pooling Limitations. At least 75 percent of tax increments from the District must be expended on activities in the District or to pay bonds, or the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the district. 3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 75 percent test set forth in paragraph (2) above only if the five year rule set forth in Minn. Stat. §469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of the District, 75 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in Minn. Stat. §469.1763, Subd. 5. 16 4. Redevelopment District. At least 90 percent of the revenues derived from tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation of redevelopment and renewal and renovation districts under Minn. Stat. §469.176, Subd. 4j. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition, and rehabilitation of structures, clearing of the land, the removal of hazardous substances or remediation necessary for the development of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the City, including the cost of preparation of the development action response plan, may be included in the qualifying costs. Section 2.30. Summary. The City of Stillwater is establishing the District to preserve and enhance the tax base, redevelop substandard areas, and provide employment opportunities in the City. The Tax Increment Financing Plan for the District was prepared by Magnuson Law Firm, 324 Main Street South, Suite 260, Stillwater, MN 55082, telephone (651) 439-9464, fax (651)-439-5641. 17 EXHIBIT A MAP OF DEVELOPMENT DISTRICT NO. 1 er g Department elopment istrict #1 m • Y SUNNY 1 Y NG p�� N,� tH a �2 MYfl ERMA 2 G• 2 \ 1 M ? UT 111.1 IT OLIVE :•.���©a W OAK "1"4111111111111611 PINE N �\N=, s LiLake 5T. ®®® ��� I HUDSL. ••MNG N W Egni '�YO� SUR RY LN TROTTER % W �� ppp CIR 5 • ILAND PA CIRGK •.�1 N��i®®� ,i� N 1 •RLEANS S W ORLEANS q U ra Corporate Limits As existing Dec 4, 2012 m w MAW EXHIBIT B MAP OF PROPOSED TAX INCREMENT DISTRICT NO. 11 It hr7y 6 ,+T C/ 31 - 26 c,4tom" l • bag1.4 • is 101 - TIF DIST. NO. 11 1 \ • • 0y • !i r ,s 1/4- • J 1l�l"• . /' 12 :.itiyyK?�1 13 • 4 -1i �+Nt •J 9'�'{L ' .mow _-�• EXHIBIT B EXHIBIT C FISCAL ANALYSIS FOR ESTABLISHMENT OF DISTRICT DRAFT MEMORANDUM TO: Sp f ing ted Larry Hansen, City Administrator Sharon Harrison, Finance Director Bill Turnblad, Community Development Director Dave Magnuson, City Attorney FROM: Mikaela Huot, Vice President/Consultant Julian Bradshaw, Analyst Springsted Incorporated 380 Jackson Street, Suite 300 Saint Paul, MN 55101-2887 Tel: 651-223-3000 Fax: 651-223-3002 www.springsted.com CC: David MacGillivray, Principal DATE: March 14, 2014 SUBJECT: Preliminary Financing Projections for Stillwater Caves, LLC Project The purpose of this memo is to outline the financial components of a proposed redevelopment tax increment financing (TIF) district in the City of Stillwater. The City has asked Springsted to evaluate the tax increment financing (TIF) project as proposed by the redeveloper, Stillwater Caves, LLC., for its proposed approximate $9.3 million dollar mixed use redevelopment comprising of a 35 room boutique hotel, a 60-80 seat restaurant and retail space. In order to estimate potential tax increment revenues, we have made assumptions based on the information that is currently known and available. The City entered into a Contract for Private Redevelopment with Stillwater Caves, LLC for the proposed redevelopment project. Pursuant to the terms of the Contract, the City would finance upfront certain project costs in an amount not to exceed $287,500 and would issue a Tax Increment Note to the Redeveloper in an amount not to exceed $862,500 with an interest rate of 3.25% to finance certain redevelopment costs. We have assumed that the proposed project would qualify under the Tax Increment statute as a redevelopment district. Tax Increment Financing (TIF) District — Redevelopment In order for the proposed project to qualify as a tax increment financing Redevelopment District, one or more of the following conditions must exist and be reasonably distributed throughout the district: (1) parcels comprising at least 70% of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50% of the buildings, not including City of Stillwater, Minnesota Stillwater Caves, LLC. TIF Project March 14, 2014 Page 2 outbuildings, are structurally substandard requiring substantial renovation or clearance. A parcel is deemed "occupied" if at least 15% of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or other similar structures. (2) the property consists of vacant, unused, underused, inappropriately used, or infrequently used railyards, rail storage facilities, or excessive or vacated railroad right-of-ways; or (3) tank facilities, or property whose immediately previous use was for tank facilities, as defined in section 115C.02, subdivision 15, if the tank facilities: (1) have or had a capacity of more than 1,000,000 gallons; (ii) are located adjacent to rail facilities; and (iii) have been removed or are unused, underused, inappropriately used, or infrequently used. Tax Increment Assumptions To estimate the amount of TIF revenues generated by the proposed development, certain assumptions were made based on the value of the project, construction schedule, and anticipated financing terms and are outlined as follows: • TIF District term o Maximum Term of Redevelopment District is 25 years after receipt of first increment for a total of 26 years o Contract states that TIF will be received from Aug ust 1, 2016 to February 1, 2040 ■ Results in an estimated 24 year term • Base value of land: $1,862,900 (According to Washington County) Parcel ID Market Value Tax Capacity 28.030.20.44.0095 $71,000 $1,420 28.030.20.41.0132 $185,700 $2,964 28.030.20.41.0140 $1,500 $30 28.030.20.41.0141 $110,700 $2,214 28.030.20.41.0142 $110,700 $2,214 28.030.20.41.0143 $164,100 $3,282 28.030.20.41.0144 $126,100 $ 2,522 28.030.20.41.0146 $116,200 $2,324 28.030.20.41.0149 $45,400 $908 28.030.20.41.0151 $1,500 $30 28.030.20.41.0152 $1,500 $30 28.030.20.41.0153 $1,500 $30 28.030.20.41.0154 $186,500 $3,730 28.030.20.41.0155 $740,500 $14,810 Total $1,862,900 $36,508 City of Stillwater, Minnesota Stillwater Caves, LLC. TIF Project March 14, 2014 Page 3 • Estimated Land and Building upon completion: o Estimated Total Market value of $9,333,702 (minimum assessment agreement) • Construction commences in 2014 o Construction 100% complete by December 31, 2014 o 100% assessed in January of 2015 for taxes payable in 2016 • 2014 tax rates remain constant through term (Rates Provided by Washington County) o City : 58.359% o County: 30.099% o School: 23.150% o Other: 4.641% Total 116.248% • Class rates remain constant through term • 2014 fiscal disparities contribution of 35.6545% o Contract for Private Redevelopment states contribution will be made by properties outside the district • 0% annual market value inflator assumed • Present Value Assumptions o $287,500 City Upfront Contribution ■ No Interest Rate • Dated Date of June 30, 2014 o $862,500 TIF Note • 3.25% Discount Rate • Dated Date of June 30, 2014 • Contract for Private Redevelopment Terms o 25% withheld and applied to $287,500 up front City payment until satisfied o 10% withheld for administrative expenses after upfront payment of $287,500 is satisfied o Remaining annual amounts pledged to redeveloper for $862,500 TIF Note Proposed Stillwater Caves, LLC Redevelopment Project Redevelopment Tax Increment Financing District Estimated Gross Revenue (over 24 years) $4,153,632 Estimated amount withheld by City for Reimbursement of Upfro nt Costs * $302,869 Estimated amount withheld by City for Administrative Expenses $294,219 Estimated Net Revenue over 24 years) $3,556,544 * with estimated $15,369 surplus based on reimbursement amount of $287,500 City of Stillwater, Minnesota Stillwater Caves, LLC. TIF Project March 14, 2014 Page 4 Proposed Stillwater Caves, LLC Redevelopment Project Redevelopment Tax Increment Financing District Estimated Net Revenue over 24 years) $3,556,544 Principal Payment to Developer $862,500 Interest Payment to Developer (3.25%) $173,498 Total Payment To Developer $1,035,998 Estimated Remaining TIF $2,520,546 The above table illustrates the projected net revenues (and present value) that a Redevelopment TIF district would generate over the course of twenty four years (the maximum term for a Redevelopment District is 26 years), assuming an estimated value of $9,333,702 at completion (per the Assessment Agreement included as Exhibit B of the Contract for Private Redevelopment). The terms of the Contract indicate the City will provide the developer with upfront financing of $287,500 which will be repaid from an increased withholding amount of 25% in the early years of the district until complete reimbursement. Once the amount is satisfied the City's annual withholding will drop to 10%. It is important to note that the pay 2014 tax rates were used to produce these estimates. Tax rates may fluctuate over the term of the district. Depending on any adjustments to future rates that are lower than payable 2014 rates, the projected tax increment revenues may be impacted. All revenues derived from a tax increment district shall be used in accordance with a tax increment financing plan. Thank you for the opportunity to be of assistance to the City of Stillwater. Please let us know how we can best assist you as this project moves forward and should you have any questions please feel free to contact us. Projected Tax Increment Report City of Stillwater, Minnesota Tax Increment Financing (Redevelopment) District No. 11 Proposed Stillwater Caves Redevelopment Project Draft Projections with EMV of $9,333,702 with No Annual MV Inflator Less: Less: Retained Times: Less: Less: City Less: Annual Total Total Original Fiscal Captured Tax Annual State Fwd. Annual Upfront Cost Admin. Period Estimated Net Tax Net Tax Disp.@ Net Tax Capacity Gross Tax Deduction Net Tax Reimbursement Retainage Ending Market Value Capacity Capacity* 0.0000% Capacity Rate*` Increment 0.360% Increment 25.00% 10.00% (1) (2) (3) (4) (6) (6) (7) (8) (9) (10) (11) (12) Annual Net Revenue (13) 12/31/14 1,862,900 36,508 36,508 0 0 11624810 12/31/15 1,862,900 36,508 36,508 0 0 116.248% 12/31/16 9,333,702 185,924 36,508 0 149,416 116.248% 12/31/17 9,333,702 185,924 36,508 0 149,416 116.248% 12/31/18 9,333,702 185,924 36,508 0 149,416 116.248% 12/31/19 9,333,702 185,924 36,508 0 149,416 116.24810 12/31/20 9,333,702 185,924 36,508 0 149,416 116.248% 12/31/21 9,333,702 185,924 36,508 0 149,416 116.248% 12/31/22 9,333,702 185,924 36,508 0 149,416 116.248% 12/31/23 9,333,702 185,924 36,508 0 149,416 116.248% 12/31/24 9,333,702 185,924 36,508 0 149,416 116.248% 12/31/25 9,333,702 185,924 36,508 0 149,416 116.248% 12/31/26 9,333,702 185,924 36,508 0 149,416 116.248% 12/31/27 9,333,702 185,924 36,508 0 149,416 116.248% 12/31/28 9,333,702 185,924 36,508 0 149,416 116.248% 12/31/29 9,333,702 185,924 36,508 0 149,416 116.248% 12/31/30 9,333,702 185,924 36,508 0 149,416 116.248% 12/31/31 9,333,702 185,924 36,508 0 149,416 116.24810 12/31/32 9,333,702 185,924 36,508 0 149,416 11624856 12/31/33 9,333,702 185,924 36,508 0 149,416 116.24856 12/31/34 9,333,702 185,924 36,508 0 149,416 11624856 12/31/35 9,333,702 185,924 36,508 0 149,416 116.248% 12/31/36 9,333,702 185,924 36,508 0 149,416 116.248°, 12/31/37 9,333,702 185,924 36,508 0 149,416 116.248% 12/31/38 9,333,702 185,924 36,508 0 149,416 116.248% 12/31/39 9,333,702 185,924 36,508 0 149,416 116.248% 0 0 173,693 173,693 173,693 173,693 173,693 173,693 173,693 173,693 173,693 173,693 173,693 173,693 173,693 173,693 173,693 173,693 173,693 173,693 173,693 173,693 173,693 173,693 173,693 173,693 0 0 0 0 0 0 0 0 625 173,068 43,267 0 625 173,068 43267 0 625 173,068 43,267 0 625 173,068 43,267 0 625 173,068 43,267 0 625 173,068 43,267 0 625 173,068 43,267 0 625 173,068 0 17,307 625 173,068 0 17,307 625 173,068 0 17,307 625 173,068 0 17,307 625 173,068 0 17,307 625 173,068 0 17,307 625 173,068 0 17,307 625 173,068 0 17,307 625 173,068 0 17,307 625 173,068 0 17,307 625 173,068 0 17,307 625 173,068 0 17,307 625 173,068 0 17,307 625 173,068 0 17,307 625 173,068 0 17,307 625 173,068 0 17,307 625 173,068 0 17,307 0 0 129,801 129,801 129,801 129,801 129,801 129,801 129,801 155,761 155,761 155,761 155,761 155,761 155,761 155,761 155,761 155,761 155,761 155,761 155,761 155,761 155,761 155,761 155,761 155,761 $4,168,632 $15,000 $4,153,632 $302,869 8294219 53,556,544 'Estimated original net tax capacity based on proposed properties to be included within Redevelopment TIF District assuming one property owner and classified as commercial -industrial **Final payable 2014 tax rates for local taxing entities as provided by Washington County Total term of District estimated to be 24 years based on terms provided in Contract for Private Redevelopment dated November 20, 2013. Maximum redevelopment district term is 26 years. Projected Repayment of Upfront City Costs City of Stillwater, Minnesota Tax Increment Financing (Redevelopment) District No. 11 Proposed Stillwater Caves Redevelopment Project Draft Projections with EMV of $9,333,702 with No Annual MV Inflator Note Date: 06/30/14 Note Rate: 0.00% * Amount: $287,500 Cumulative Unpaid Semi -Annual Loan Interest Accrued Net Balance Date Principal Interest P & 1 Due Interest Revenue Outstanding (1) (2) (3) (4) (5) (6) (7) (8) 287,500.00 02/01/15 0.00 0.00 0.00 0.00 0.00 0.00 287,500.00 08/01/15 0.00 0.00 0.00 0.00 0.00 0.00 287,500.00 02/01/16 0.00 0.00 0.00 0.00 0.00 0.00 287,500.00 08/01/16 21,633.50 0.00 21,633.50 0.00 0.00 21,633.50 265,866.50 02/01/17 21,633.50 0.00 21,633.50 0.00 0.00 21,633.50 244,233.00 08/01/17 21,633.50 0.00 21,633.50 0.00 0.00 21,633.50 222,599.50 02/01/18 21,633.50 0.00 21,633.50 0.00 0.00 21,633.50 200,966.00 08/01/18 21,633.50 0.00 21,633.50 0.00 0.00 21,633.50 179,332.50 02/01/19 21,633.50 0.00 21,633.50 0.00 0.00 21,633.50 157,699.00 08/01/19 21,633.50 0.00 21,633.50 0.00 0.00 21,633.50 136,065.50 02/01/20 21,633.50 0.00 21,633.50 0.00 0.00 21,633.50 114,432.00 08/01/20 21,633.50 0.00 21,633.50 0.00 0.00 21,633.50 92,798.50 02/01/21 21,633.50 0.00 21,633.50 0.00 0.00 21,633.50 71,165.00 08/01/21 21,633.50 0.00 21,633.50 0.00 0.00 21,633.50 49,531.50 02/01/22 21,633.50 0.00 21,633.50 0.00 0.00 21,633.50 27,898.00 08/01/22 21,633.50 0.00 21,633.50 0.00 0.00 21,633.50 6,264.50 02/01/23 6,264.50 0.00 6,264.50 0.00 0.00 6,264.50 0.00 $287,500 $0.00 $287,500.00 $0.00 $287,500.00 Surplus Tax Increment Total Net Revenue 15,369.00 $302,869.00 assumes no interest rate included in reimbursement of City upfront costs of $287,500 Projected Pay -As -You -Go Note Report City of Stillwater, Minnesota Tax Increment Financing (Redevelopment) District No. 11 Proposed Stillwater Caves Redevelopment Project Draft Projections with EMV of $9,333,702 with No Annual MV Inflator Note Date: 06/30/14 Note Rate: 3.25% Amount: $862,500 Cumulative Unpaid Semi -Annual Loan Interest Accrued Net Balance Date Principal Interest P & I Due Interest Revenue Outstanding (1) (2) (3) (4) (5) (6) (7) (8) 862,500.00 02/01/15 0.00 0.00 0.00 16,429.43 16,429.43 0.00 862,500.00 08/01/15 0.00 0.00 0.00 30,445.06 30,445.06 0.00 862,500.00 02/01/16 0.00 0.00 0.00 44,460.69 44,460.69 0.00 862,500.00 08/01/16 6,424.18 58,476.32 64,900.50 58,476.32 0.00 64,900.50 856,075.82 02/01/17 50,989.27 13,911.23 64,900.50 13,911.23 0.00 64,900.50 805,086.55 08/01/17 51,817.84 13,082.66 64,900.50 13,082.66 0.00 64,900.50 753,268.71 02/01/18 52,659.88 12,240.62 64,900.50 12,240.62 0.00 64,900.50 700,608.83 08/01/18 53,515.61 11,384.89 64,900.50 11,384.89 0.00 64,900.50 647,093.22 02/01/19 54,385.24 10,515.26 64,900.50 10,515.26 0.00 64,900.50 592,707.98 08/01/19 55,269.00 9,631.50 64,900.50 9,631.50 0.00 64,900.50 537,438.98 02/01/20 56,167.12 8,733.38 64,900.50 8,733.38 0.00 64,900.50 481,271.86 08/01/20 57,079.83 7,820.67 64,900.50 7,820.67 0.00 64,900.50 424,192.03 02/01/21 58,007.38 6,893.12 64,900.50 6,893.12 0.00 64,900.50 366,184.65 08/01/21 58,950.00 5,950.50 64,900.50 5,950.50 0.00 64,900.50 307,234.65 02/01/22 59,907.94 4,992.56 64,900.50 4,992.56 0.00 64,900.50 247,326.71 08/01/22 60,881.44 4,019.06 64,900.50 4,019.06 0.00 64,900.50 186,445.27 02/01/23 61,870.76 3,029.74 64,900.50 3,029.74 0.00 64,900.50 124,574.51 08/01/23 75,856.16 2,024.34 77,880.50 2,024.34 0.00 77,880.50 48,718.35 02/01/24 48,718.35 791.67 49,510.02 791.67 0.00 49,510.02 0.00 08/01/24 0.00 0.00 0.00 0.00 0.00 0.00 0.00 02/01/25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 08/01/25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 02/01/26 0.00 0.00 0.00 0.00 0.00 0.00 0.00 08/01/26 0.00 0.00 0.00 0.00 0.00 0.00 0.00 02/01/27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 08/01/27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 02/01/28 0.00 0.00 0.00 0.00 0.00 0.00 0.00 08/01/28 0.00 0.00 0.00 0.00 0.00 0.00 0.00 02/01/29 0.00 0.00 0.00 0.00 0.00 0.00 0.00 08/01/29 0.00 0.00 0.00 0.00 0.00 0.00 0.00 02/01/30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 08/01/30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 02/01/31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 08/01/31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 02/01/32 0.00 0.00 0.00 0.00 0.00 0.00 0.00 08/01/32 0.00 0.00 0.00 0.00 0.00 0.00 0.00 02/01/33 0.00 0.00 0.00 0.00 0.00 0.00 0.00 08/01/33 0.00 0.00 0.00 0.00 0.00 0.00 0.00 02/01/34 0.00 0.00 0.00 0.00 0.00 0.00 0.00 08/01/34 0.00 0.00 0.00 0.00 0.00 0.00 0.00 02/01/35 0.00 0.00 0.00 0.00 0.00 0.00 0.00 08/01/35 0.00 0.00 0.00 0.00 0.00 0.00 0.00 02/01/36 0.00 0.00 0.00 0.00 0.00 0.00 0.00 08/01/36 0.00 0.00 0.00 0.00 0.00 0.00 0.00 02/01/37 0.00 0.00 0.00 0.00 0.00 0.00 0.00 08/01/37 0.00 0.00 0.00 0.00 0.00 0.00 0.00 02/01/38 0.00 0.00 0.00 0.00 0.00 0.00 0.00 08/01/38 0.00 0.00 0.00 0.00 0.00 0.00 0.00 02/01/39 0.00 0.00 0.00 0.00 0.00 0.00 0.00 08/01/39 0.00 0.00 0.00 0.00 0.00 0.00 0.00 02/01/40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $862,500 $173,497.52 $1,035,997.52 $264,832.70 $1,035,997.52 Surplus Tax Increment 2,520,546.48 Total Net Revenue $3,556,544.00 Final Draft November 20, 2013 CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE CITY OF STILLWATER, MINNESOTA AND STILLWATER CAVES, LLC A MINNESOTA LIMITED LIABILITY COMPANY This document was drafted by: David T. Magnuson Magnuson Law Firm 324 Main Street South, #260 Stillwater, MN 55082-5165 651/439-9464 TABLE OF CONTENTS Section 1.1. Definitions 2 Section 2.1. Representations by the City. 4 Section 2.2. Representations and Warranties by the Redeveloper 4 Section 3.1. Conditions Precedent to City Actions 5 Section 3.2. Limitation on City Financial Obligations. 6 Section 3.3. The City's Promises and Covenants that will Survive the Closing. 6 Section 3.4. Redeveloper's Responsibility. 7 Section 4.1. Construction of Minimum Improvements. 8 Section 4.2. Construction Plans, Changes. 8 Section 4.3. Commencement and Completion of Construction 9 Section 4.4. Certificate of Completion. 9 Section 4.5. Indemnity. 9 Section 5.1. Insurance. 9 Section 6.1. Real Property Taxes. 11 Section 7.1. Financing 12 Section 7.2. Limitation Upon Encumbrance of Property 12 Section 8.1. Representation as to Redevelopment. 12 Section 9.1. Events of Default Defined. 13 Section 9.2. Remedies on Default. 14 Section 9.3. No Remedy Exclusive 15 Section 9.4. No Additional Waiver Implied by One Waiver. 15 Section 10.1. Conflict of Interests; City Representatives Not Individually Liable. 15 Section 10.2. Equal Employment Opportunity. 15 Section 10.3. Titles of Articles and Sections. 15 Section 10.4. Notices and Demands. 15 Section 10.5. Counterparts 16 Exhibit A Exhibit B Exhibit C Redeveloper Minimum Improvements Assessment Agreement Certificate of Completion -i- CONTRACT FOR PRIVATE DEVELOPMENT THIS AGREEMENT, (the "Redevelopment Contract") effective the 3 `` Y eda of 2013 between THE CITY OF STILLWATER (the "City"), a home rule charter city of the State of Minnesota, having its principal offices at 216 North 4th Street, Stillwater, Minnesota 55082, and STILLWATER CAVES, LLC (the "Redeveloper"), a Minnesota limited liability company, having its principal office at 7651 Old Central Avenue N.E., Fridley, Minnesota. WITNESSETH: WHEREAS, the City is a home rule charter city organized and existing pursuant to the Constitution and laws of the State of Minnesota and is governed by the Council of the City; and WHEREAS, pursuant to the Municipal Development District Act, Minnesota Statutes, Section 469.124-469.134, as amended, the Council is authorized to establish development districts in order to provide for the development and redevelopment of the City; and WHEREAS, the Council of the City has adopted a development program (the "Program") pursuant to the Municipal Development District Act; and has established a development district (the "Development District") pursuant to the Municipal Development District Act; and will establish Tax Increment Financing District No. 11 (the "Financing District") and adopted a Tax Increment Financing Plan (the "Plan") also pursuant to Minn. Stat. §469.174 through §469.179 of the State of Minnesota; and WHEREAS, the major objectives of the Council in establishing the Development District were to: remove, prevent, or reduce blight, blighting factors, causes of blight, or the spread of blight and deterioration; eliminate unsafe structures and conditions; provide land for needed public parking, utilities, and facilities; remove incompatible land uses, eliminate obsolete or detrimental uses; and assemble land for redevelopment; and WHEREAS, the City believes that the development and redevelopment of the Development District and the Financing District pursuant to this Agreement, and fulfillment generally of the terms of this Agreement, are in the vital and best interests of the City and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable federal, state and local laws under which the Program and the tax increment financing plan is being undertaken, and; NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: ARTICLE 1 Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: 1.1.1. "Act" means collectively the Municipal Development District Act, Minn. Stat. §469.124 et sem., as amended, and Minn. Stat. §469.174 through §469.179. 1.1.2. "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. 1.1.3. "Assessment Agreement" means an agreement made pursuant to Minn. Stat. §469.177, Subd. 8, a copy of which is attached as Exhibit B. 1.1.4. "Available Tax Increments" means 75% of those tax increments actually received in the six months preceding each date of payment of the balance of the Tax Increment described in Section 3.3.2 B. from the Redevelopment Property, until the City is reimbursed $287,500 and thereafter 90% of the Increment. 1.1.5. "Certificate of Completion" means the certification, in the form of the certificate contained in Exhibit E attached to and made a part of this Agreement, provided to the Redeveloper, pursuant to Section 4.4 of this Agreement. 1.1.6. "City" means the City of Stillwater, Minnesota. 1.1.7. "Construction Plans" means the plans, specifications, drawings and related documents for the construction work to be performed by the Redeveloper on the Redevelopment Property which (a) are the plans, specifications, drawings and related documents which are submitted to the building inspector of the City; and (b) must include at least the following: (i) site plan; (ii) foundation plan; (iii) floor plan for each floor; (iv) elevations (one side); (v) facade and landscape plan; and (vi) such other plans or supplements to the foregoing plans as the City may reasonably request. 1.1.8. "County" means the County of Washington, Minnesota. 1.1.9. by the City. "Development District" means Municipal Development District No. 1 created 1.1.10. "Event of Default" means an action by the Redeveloper described in Section 9.1 of this Agreement. 1.1.11. "Holder" means the grantee under any Mortgage. 1.1.12. "Lot" means any Lot within the Plat of Joseph Wolf Brewery addition and CIC No. 214 as on file and of record in the office of the County Recorder or any lot or parcel created by a restated or amended Plat or CIC Declaration. 2 1.1.13. "Minimum Improvements" means the improvements to be constructed by the Redeveloper on the Redevelopment Property, as detailed in the construction plans, a general description is attached hereto as Exhibit A. 1.1.14. "Minnesota Environmental Policy Act" means the statutes located at Minn. Stat. §116D.01 et seq., as amended. 1.1.15. "Minnesota Environmental Rights Act" means the statutes located at Minn. Stat. §116B.01 et seq., as amended. 1.1.16. "National Environmental Policy Act" means the federal law located at 42 U.S.C. 4331 et seq., as amended. 1.1.17. "Net Proceeds" means any proceeds paid by an insurer to the Redeveloper or the City under a policy or policies of insurance required to be provided and maintained by the Redeveloper pursuant to Article 5 of this Agreement and remaining after deducting all expenses (including fees and disbursements of counsel) incurred in the collection of the proceeds. 1.1.18. "Permitted Encumbrances" means the encumbrances described in Section 7.2 of this Agreement. 1.1.19. "Plat" means the Joseph Wolf Brewery addition or any restated or amended Plat of the same property if approved by the Stillwater City Council. 1.1.20. "Program" means the development program approved by the City in connection with the creation of the Development District, as it may be amended or modified. 1.1.21. "Project" means the construction of the Minimum Improvements on the Redevelopment Property and the construction of the Public Improvements by the Redeveloper. 1.1.22. the Redeveloper. "Public Improvements" means any public improvements to be constructed by 1.1.23. "Redeveloper" means Stillwater Caves, LLC, a Minnesota limited liability company, or an assignee permitted by Section 8.1.1 of this Agreement. 1.1.24. "Redevelopment Property" means the property within the Plat of Joseph Wolf Brewery Addition. 1.1.25. "State" means the State of Minnesota. 1.1.26. "Unavoidable Delays" means delays which are the direct result of strikes, other labor troubles, fire, unreasonable weather, floods or other casualty to the Minimum Improvements litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the City) which directly result in delays, shortage of materials, war, terroristic acts, acts of God, or any other cause beyond the reasonable control of Redeveloper. 3 ARTICLE 2 Representations and Warranties; Interpretive Rule Section 2.1. Representations by the City. The City makes the following representations as the basis for the undertaking on its part herein contained: 2.1.1. The City is a charter city of the State with all the powers of a charter city duly organized and existing under the laws of the State. 2.1.2. The City has created, adopted and approved the Development District in accordance with the terms of Minn. Stat. §469.124 — 469.134, known as the City Development District Act. 2.1.3. The City will create Tax Increment District No. 11, a Redevelopment District and will present the District to the Washington County Auditor for certification of the original net tax capacity prior to July 1, 2014, and will elect that fiscal disparity payments will not be the obligation of the District. 2.1.4. The City has adopted a Business Subsidy Policy as required by Minn. Stat. §116J.993, et seq., however, the assistance provided pursuant to this Agreement is not a business subsidy pursuant to Minn. Stat. §116J.993, subd. 3(7) and (17). 2.1.5. As of the date of execution of this Agreement, the City has received no notice or communication from any local, state or federal official that the activities of the Redeveloper or City in the Financing District may be or will be in violation of any environmental law or regulation. As of the date of execution of this Agreement, the City is aware of no facts, the existence of which could cause the Redevelopment Property to be in violation of any local, state or federal environmental law, regulation or review procedure or which would give any person a valid claim under the Minnesota Environmental Rights Act. 2.1.6. Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions this Agreement is prevented, limited by or conflicts with or results in a breach of the terms, conditions or provisions of statute, home rule charter, ordinance, any evidence of indebtedness, agreement or instrument of whatever nature to which the City is now a party or by which it is bound, or constitutes a default under any of the foregoing. Section 2.2. Representations and Warranties by the Redeveloper. The Redeveloper represents and warrants that: 2.2.1. The Redeveloper will construct, operate and maintain the Minimum Improvements in accordance with the terms of this Agreement, the Assessment Agreement, and all local, state and federal laws and regulations including, but not limited to, environmental, zoning, building code and public health laws and regulations. This will not warrant the conduct of tenants that might occupy the Minimum Improvements under a lease or operating agreement. 4 2.2.2. At such time or times as will be required by law, the Redeveloper will have complied with all applicable local, state and federal environmental laws and regulations. As of the date of execution of this Agreement, the Redeveloper has received no notice or communication from any local, state or federal official that the activities of the Redeveloper or the City in the Financing District may be or will be in violation of any environmental law or regulation. As of the date of execution of this Agreement, the Redeveloper is aware of no facts the existence of which could cause the Redevelopment Property to be in violation of any local, state or federal environmental law, regulation or review procedure or which would give any person a valid claim under the Minnesota Environmental Rights Act. 2.2.3. Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any corporate restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the Redeveloper is now a party or by which it is bound, or constitutes a default under any of the foregoing. 2.2.4. The Redeveloper agrees that it will indemnify, defend, and hold harmless the City, its governing body members, officers, employees, agents and contractors, from any and all claims or causes of action, of whatsoever nature, arising or purportedly arising out of the actions of the Redeveloper, its officers, employees, agents or contractors in connection with this Agreement or the construction, installation, ownership or operation of the Minimum Improvements; except for claims caused by the negligence of the City or its contractors or assigns. ARTICLE 3 City and Redeveloper Responsibility Section 3.1. Conditions Precedent to City Actions. Without limiting any other provision of this Agreement, the City will not be obligated to provide Tax Increment Assistance unless and until the following conditions have been satisfied with respect to the Redevelopment Property and the Minimum Improvements to be constructed thereon, all of which must be satisfied or waived in writing by August 15, 2014. 3.1.1. The Redeveloper has funded mortgage financing or owner's equity in at least the amount sufficient to fund the construction of the Minimum Improvements. 3.1.2. The Redeveloper has submitted to the City that executed binding construction contracts that will provide for construction of the Minimum Improvements within the time frames specified for the construction in this Agreement. 3.1.3. The Redeveloper has received a design permitting special, conditional or planned development permit for the Private Improvements and building permit as required by Heritage Preservation Committee ("HPC"), the City Planning Commission, the Stillwater Community Development Director, the Building Official, the City Engineer, and the City Council, and the design of the infrastructure and privately constructed utilities have been approved by the City. The City will process any application filed by the Redeveloper 5 expeditiously and in good faith. When lawfully allowed to do so, the City will assist the Redeveloper in obtaining necessary permits from other government agencies. 3.1.4. The Redeveloper executes and delivers to the City the Assessment Agreement attached to this Agreement as Exhibit B. It is agreed, that at the request of the Redeveloper, and after the City has been reimbursed the up -front increment described in the Section 3.2.2.A., the market value initially established in the Assessment Agreement may be adjusted to reflect the then current value. Section 3.2. Limitation on City Financial Obligations. 3.2.1. In no event will the City be obligated to expend any more funds than expressly described in this agreement. 3.2.2. In the event that the Redeveloper has not satisfied all conditions by August 15, 2014, or such other date as the parties agree in writing, this will be an Event of Default. Section 3.3. The City's Promises and Covenants that will Survive the Closing. 3.3.1. The City covenants that the following actions will be taken and during the term of this Agreement. 3.3.2. Tax Increment Assistance. The City will provide Tax Increment Assistance in the amount of $1.15 Million to the Redeveloper, if the Assistance can be amortized from Available Tax Increments or the Tax Increment Assistance must be reduced accordingly. The Tax Increment Assistance is provided to reimburse the Redeveloper for a portion of the cost of eligible Site Improvement expenses. Payment of the Tax Increment Assistance will be payable as follows: A. The City agrees to pay $287,500 (the "Upfront Payment") following satisfaction of all Conditions Precedent to City Actions referenced in Section 3.1, directly to the Redeveloper's construction mortgagee or lender, to be disbursed for construction of the Minimum Improvements. B1. Provided that no Event of Default has occurred and be continuing hereunder and the balance of the Tax Increment Assistance is payable from Available Tax Increments on each February 1 and August 1, commencing August 1, 2016, if the Minimum Improvements are completed by December 31, 2014 or commencing on August 1, 2017, if the Minimum Improvements are completed after December 31, 2014 and before August 15, 2015. B2. The City agrees to issue at the request of the Redeveloper a Tax Increment Note in the amount of $862,500 if the Note can be amortized from Available Tax Increments, at an interest rate of 3.25%. C. The sole source of funds, if any, from which the City is obligated to pay the balance of the Tax Increment Assistance is the Available Tax Increments derived from the Redevelopment Property in the six months 6 preceding each date of payment and nothing herein may be construed to obligate the City to use any of its general funds or other municipal funds to reimburse the Redeveloper for eligible costs, and in no event shall the City be required to use any of its general funds or other municipal funds for any purpose, including for the purpose of reimbursing the Redeveloper or any of its creditors or assigns. D. The obligation of the City to apply Available Tax Increments to payment of the Tax Increment Assistance terminates on the earlier of: (i) February 1, 2040; (ii) upon the occurrence of an Event of Default hereunder. E. It is the obligation of the Redeveloper or its Mortgage Lender to submit to the City in a timely manner, proof of payment of land write down and site improvement expenses in a format approved by the City Treasurer and as required by the Minnesota Tax Increment Financing Act. Section 3.4. Redeveloper's Responsibility. 3.4.1. Hook-up. As part of the construction of the Minimum Improvements the Redeveloper must connect existing ground water flow from within the redevelopment property to an existing storm sewer stub previously constructed by the City. The Redeveloper's obligation to establish this connection is limited to the sum of $25,000 of costs. 3.4.2. As Built Plan. Within sixty (60) days after completion of construction of the Hook-up, the Redeveloper, through its contractor or engineer, must prepare and file with the City a full set of "as built" plans, showing the location of connection and Hook-up. Failure to file the "as built" plans as required by this Section will be grounds for the City to suspend the issuance of certificates of occupancy. 3.4.3. Erosion Control Measures During Construction. The Redeveloper agrees that it will construct erosion control devices in conformance with the approved Construction Plans for the Public and Minimum Improvements. The erosion control plan must protect any ponds, wetlands and the St. Croix River from erosion, pollution and siltation throughout the construction of the Minimum Improvements. Any deficiency or failure of erosion control must be corrected within seventy—two (72) hours of written notice or the City may draw upon the security provided under this Agreement in the amount of the costs incurred in curing the deficiency. 3.4.4. City Regulations. The Redeveloper acknowledges that the property is regulated by the City and that a default under City ordinances or condition of approval of any permit is a default under this Agreement, including but not limited to, the following regulations: A. A National Pollution Discharge Elimination System general storm water permit for construction activity must be obtained by the Redeveloper or its agent, from the MPCA before grading begins. B. The Redeveloper must comply with all conditions of approval imposed by the City as part of any permit or approval granted by the City during approval of the Project. C. Payment of any fees or charges normally due at the time of issuance of any building permits and payment of any hook—up charges imposed on the Redevelopment Property. 3.4.5. Damage to City, County and State Facilities. The Redeveloper will be responsible for any damage caused to any City, County and State facilities or improvements including roads, storm water systems, sewer and water facilities whether done by the Redeveloper, its contractors, agents or employees and for any repair or clean-up costs or expenses incurred by the City, County and State in taking remedial action. 3.4.6. Final Inspection. At the written request of the Redeveloper and upon completion of the Minimum Improvements, the City Engineer or designee and the Redeveloper's engineer will make a final inspection of the work. When the City Engineer is satisfied that all work is completed in accordance with the approved plans and specifications, and the Redeveloper's engineer has submitted a written statement attesting to same, the City Engineer or his designee, will recommend that the Minimum Improvements be accepted by the City. Upon the recommendation of the City Engineer, the City will accept the Minimum Improvements. 3.4.7. Replacement. All work and materials performed and furnished on the Hook- up by the Redeveloper, its agents and 'subcontractors, found by the City to be defective within one year after acceptance by the City, must be repaired or replaced by Redeveloper at Redeveloper's sole expense to the reasonable satisfaction of the City. ARTICLE 4 Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements. 4.1.1. The Redeveloper agrees that it will construct, or cause to be constructed, the Minimum Improvements on the Redevelopment Property in accordance with the approved Construction Plans and preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition. Section 4.2. Construction Plans, Changes. 4.2.1. If the Redeveloper desires to make any material change in the Construction Plans, the Redeveloper must submit the proposed change to the City for its approval. The request must be filed with the Community Development Director. Minor modifications and modifications that do not change the exterior of any structures may be approved by the Community Development Director. Other modifications must be approved by the City Council and the committee or authority that granted any permit or approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Agreement, the City must approve the proposed change and notify the Redeveloper in writing of its approval. 8 Section 4.3. Commencement and Completion of Construction. 4.3.1. The Redeveloper must commence construction of the Minimum Improvements by August 15, 2014, or on the date the parties agree in writing. The Redeveloper must complete this construction by December 31, 2014. All work with respect to the Minimum Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property must be in conformity with the Construction Plans as submitted by the Redeveloper and approved by the City. 4.3.2. The Redeveloper agrees for itself, its successors and assigns, and every successor in interest to the Redevelopment Property, or any part thereof, that the Redeveloper, and its successors and assigns, will promptly begin and diligently prosecute to completion the redevelopment of the Redevelopment Property through the construction of the Minimum Improvements thereon, and that the construction must in any event be commenced and completed within the period specified in this Section 4.3 of this Agreement subject to unavoidable delays. It is intended and agreed that these agreements and covenants will be covenants running with the land and that they will, in any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in the Agreement itself, be, to the fullest extent permitted by law and equity, binding for the benefit of the City and enforceable by the City against the Redeveloper and its successors and assigns. Until construction of the Minimum Improvements has been completed, the Redeveloper must make reports, in the detail and at the times reasonably requested by the City, as to the actual progress of the Redeveloper with respect to the construction. Section 4.4. Certificate of Completion. 4.4.1. Promptly after completion of the Minimum Improvements in accordance with the Construction Plans the City will furnish the Redeveloper with Certificate of Completion for the Minimum Improvements in the form attached as Exhibit C. The certification by the City is a conclusive determination of satisfaction and termination of the agreement with respect to the obligations of the Redeveloper, and its successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. Section 4.5. Indemnity. 4.5.1. The Redeveloper further agrees that it will indemnify, defend, and hold harmless the City, its officers, employees, contractors and agents, in connection with any liens or claims from persons or entities related to the furnishing of labor or materials in connection with construction of the Minimum Improvements by Redeveloper, its agents or assigns except for the negligent acts of the City or its contractors or assigns. ARTICLE 5 Insurance Section 5.1. Insurance. 5.1.1. The Redeveloper will provide and maintain at all times during the process of constructing the Minimum Improvements and, from time to time at the request of the City, furnish the City with proof of payment of premiums on: 9 A. Builder's Risk Insurance, written on the so-called `Builder's Risk -- Completed Value Basis," in an amount equal to one hundred percent (100%) of the insurable value of the Minimum Improvements at the date of completion, and with coverage available in nonreporting form on the so-called "all risk" form of policy. The interest of the City will be protected in accordance with a clause in form and content satisfactory to the City. B. Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) with limits against bodily injury and property damage of not less than $1,500,000 for each occurrence (to accomplish the above -required limits, an umbrella excess liability policy may be used) . On this policy the City must be named as an additional insured as their interests may appear. C. Worker's compensation insurance, with statutory coverage. 5.1.2. The policies of insurance required pursuant to clauses A. and B. above must be in form and content reasonably satisfactory to the City and must be placed with financially sound and reputable insurers licensed to transact business in the State. The policy of insurance delivered pursuant to clause A. above will contain an agreement of the insurer to give not less than thirty (30) days advance written notice to the City in the event of cancellation of the policy or change affecting the coverage thereunder. 5.1.3. All insurance required in Article 5 of this Agreement will be taken out and maintained in responsible insurance companies selected by the Redeveloper which are authorized under the laws of the State to assume the risks covered thereby. The Redeveloper will deposit annually with the City policies evidencing all such insurance, or a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. 5.1.4. The Redeveloper agrees to notify the City immediately in the case of damage exceeding $25,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. In the event that any such damage does not exceed $25,000, the Redeveloper will forthwith repair, reconstruct and restore the Minimum Improvements to substantially the same or an improved condition or value as it existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration, the Redeveloper will apply the Net Proceeds of any insurance relating to such damage received by the Redeveloper to the payment or reimbursement of the costs thereof. 5.1.5. In the event the Minimum Improvements or any portion thereof is destroyed by fire or other casualty and the damage or destruction is estimated to equal or exceed $25,000, then the Redeveloper must within one hundred and twenty (120) days after such damage or destruction, proceed forthwith to repair, reconstruct and restore the damaged Minimum Improvements substantially the same condition or utility value as it existed prior to the event causing such damage or destruction. To the extent necessary to accomplish the repair, reconstruction and restoration, the Redeveloper will apply the Net Proceeds of any insurance - 10 - relating to such damage or destruction received by the Redeveloper to the payment or reimbursement of the costs thereof. Any Net Proceeds remaining after completion of construction will be disbursed to the Redeveloper. The obligations set forth herein shall terminate with respect to any particular improvements upon issuance of a Certificate of Completion for such improvements. Further, the City will consider favorably a Redeveloper request for an extension of the time limit in this Section pending receipt of insurance proceeds. 5.1.6. If the Redeveloper is in compliance with the terms this Agreement and then any Net Proceeds of insurance relating to the damage or destruction received by the City must be released from time to time by the City to the Redeveloper upon the receipt of a certificate of an authorized representative of the Redeveloper specifying the expenditures made or to be made or the indebtedness incurred in connection with the repair, reconstruction and restoration and stating that the Net Proceeds, together with any other moneys legally available for the purpose, will be sufficient to complete the repair, construction and restoration. 5.1.7. The Redeveloper must complete the repair, reconstruction and restoration of the Minimum Improvements, whether or not the Net Proceeds of insurance received by the Redeveloper for these purposes are sufficient. Any Net Proceeds remaining after completion of the repairs, construction and restoration must be remitted to the Redeveloper. ARTICLE 6 Real Property Taxes and Assessments Section 6.1. Real Property Taxes. 6.1.1. The Redeveloper and its permitted assigns must pay when due all real property taxes payable with respect to the Redevelopment Property including installments for special assessments, if any, payable therewith and thereafter; and, 6.1.2. That prior to the Termination Date, the Redeveloper, its assignees, transferees and successors in title: A. will not seek administrative review or judicial review of the applicability or constitutionality of any tax statute relating to the taxation of real property contained on the Redevelopment Property determined by any tax official to be applicable to the Minimum Improvements or the Redeveloper or raise the inapplicability or constitutionality of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; provided, however, that "tax statute" does not include any local ordinance or resolution levying a tax; and B. will not seek any tax deferral or abatement, either presently or prospectively authorized under Minn. Stat. §469.181, or any other state or federal law, of the taxation of any real property within the Redevelopment Property between the date of execution of this Agreement and the Termination Date. -11- C. Will not at any time during the term of this Agreement, seek to reduce the market value of the Redevelopment Property below the assessed minimum market value as set forth in the Assessment Agreement. ARTICLE 7 Financing Section 7.1. Financing. 7.1.1. The Redeveloper must have submitted prior to commencement of construction of the Minimum Improvements evidence of a commitment for financing or equity infusion that is deemed by the City to be sufficient for construction of the Minimum Improvements as required by this Agreement. Section 7.2. Limitation Upon Encumbrance of Property. 7.2.1. Prior to the completion of the Minimum Improvements, as certified by the City, neither the Redeveloper nor any successor in interest to the Redevelopment Property upon which the Minimum Improvements are to be constructed or any part thereof will engage in any financing or any other transaction creating any mortgage or other encumbrance or lien upon the Redevelopment Property, whether by express agreement or operation of law, or suffer any encumbrance or lien to be made on or attach to the parcel, except: A. for the purposes of obtaining funds only to the extent necessary for constructing the Minimum Improvements (including, but not limited to, labor and materials, professional fees, real estate taxes, construction interest, organizational and other indirect costs of development, costs of constructing the Minimum Improvements, and an allowance for contingencies); B. operating agreements; and C. for the purposes of obtaining funds necessary for constructing tenant required improvements and operating costs. ARTICLE 8 Prohibitions Against Assignment and Transfer Section 8.1. Representation as to Redevelopment. 8.1.1. The Redeveloper represents and agrees that its purchase of the Redevelopment Property, and its other undertakings pursuant to the Agreement, are, and will be used, for the purpose of redevelopment of the Redevelopment Property and not for speculation in land holding. The Redeveloper further recognizes that, in view of (a) the importance of the redevelopment of the Redevelopment Property to the general welfare of the City; (b) the public aids that have been made available by the City for the purpose of making the redevelopment possible; and (c) the fact that any act or transaction involving or resulting in a significant change in the identity of the parties in control of the Redeveloper or the degree of their control is for - 12 - practical purposes a transfer or disposition of the property then owned by the Redeveloper, the qualifications and identity of the Redeveloper are of particular concern to the City. The Redeveloper further recognizes that it is because of the qualifications and identity that the City is entering into the Agreement with the Redeveloper, and, in doing so, is further willing to accept and rely on the obligations of the Redeveloper for the faithful performance of all undertakings for the foregoing reason the Redeveloper may not assign this Agreement or any interest therein, or transfer the Redevelopment Property or any part thereof to any person, firm or corporation, without the express written consent of City. The City's consent may be withheld for any reason. Any transfer of this Agreement through merger, consolidation or liquidation, or any change in ownership of the shares of voting stock or material change in management position of Redeveloper shall constitute an assignment or this Lease, and, as such shall require the prior written consent of the City. This provision does not apply nor does it prohibit an assignment of the Developer's interest in this Agreement to an entity that is wholly owned by the current principals of the Developer, nor will this provision prohibit the assignment of the TIF note to third parties. ARTICLE 9 Events of Default Section 9.1. Events of Default Defined. The following are "Events of Default" under this Agreement and the term "Event of Default" means, whenever it is used in this Agreement (unless the context otherwise provides), any one or more of the following events: 9.1.1. Failure by the Redeveloper to pay when due or to provide when required any payments required to be paid or provided under this Agreement, including real estate taxes and installments of special assessments due and payable on the Redevelopment Property before they become delinquent. 9.1.2. Failure by the Redeveloper to provide and maintain any insurance required to be provided and maintained by Section 5.1 of this Agreement or failure by the Redeveloper to reconstruct the Minimum Improvements when required pursuant to Section 5.1 of this Agreement. 9.1.3. Failure by the Redeveloper to satisfy all conditions precedent to City as set forth in Section 3.1 by August 15, 2014, unless waived in writing by the City. 9.1.4. Failure by the Redeveloper to commence and complete construction of the Minimum Improvements pursuant to the terms, conditions and limitations of Section 3.1 of this Agreement. 9.1.5. Failure by the Redeveloper to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder, including, but not limited to a violation of any covenant or undertaking of this Agreement. - 13 - 9.1.6. The Redeveloper makes any changes to the Construction Plans of the Public or Minimum Improvements without approval of the City of any permit or approval described in Section 3.1.3 of this Agreement. 9.1.7. The Redeveloper constructs Minimum Improvements that are materially different from the Minimum Improvements described in the approved Construction Plans, and the changes have not been approved in writing by the City. 9.1.8. The Redeveloper: A. files any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any state or federal bankruptcy law; B. makes an assignment for the benefit of its creditors; C. admits in writing its inability to pay its debts generally as they become due; or D. is adjudicated bankrupt or insolvent. Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section 9.1 of this Agreement occurs, the City may take anyone or -more of the following actions: 9.2.1. Suspend its performance under the Agreement. 9.2.2. Terminate this Agreement and the obligation to pay over the Available Tax Increments to the holder of any Tax Increment Bond. 9.2.3. Withhold the Certificate of Completion. 9.2.4. Subject to the rights of a Holder of a Mortgage, withhold the Net Proceeds from the insurance policies provided to the City pursuant to Section 5.1 of this Agreement in accordance with the terms of the policies. 9.2.5. Take whatever action, including legal or administrative action, which may appear necessary or desirable to the City, including any actions to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the Redeveloper under this Agreement. 9.2.6. Notwithstanding any provision of Section 9.2 or any subpart, or Section 3.8.4C, the City will continue to pay to the holders any Tax Increment Bond, or other instrument issued pursuant to Section 3.3.2, the principal and interest on the Tax Increment Bond during any period of default if real estate taxes and installments of special assessments due and payable on the Redevelopment Property are paid before they become delinquent. - 14 - Section 9.3. No Remedy Exclusive. 9.3.1. No remedy conferred upon or reserved to the City is intended to be exclusive of any other available remedy or remedies, but each remedy is cumulative and is in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default will impair any right or power or may be construed to be a waiver thereof, but any right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the City or the Redeveloper to exercise any remedy reserved to it, it will not be necessary to give notice, other than the notice that may be required in this Article 9. Section 9.4. No Additional Waiver Implied by One Waiver. 9.4.1. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver will be limited to the particular breach so waived and will not be deemed to waive any other concurrent, previous or subsequent breach hereunder. ARTICLE 10 Additional Provisions Section 10.1. Conflict of Interests; City Representatives Not Individually Liable. 10.1.1. No member, official, or employee of the City will have any personal interest, direct or indirect, in the Agreement, nor will any such member, official, or employee participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership, or association in which he is, directly or indirectly, interested. No member, official, or employee of the City will be personally liable to the Redeveloper, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Redeveloper or successor or on any obligations under the terms of the Agreement, except in the case of willful misconduct. Section 10.2. Equal Employment Opportunity. 10.2.1. The Redeveloper, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in the Agreement it will comply with all non-discrimination and affirmative action requirements applicable under any state, federal or local law, ordinance or regulation. Section 10.3. Titles of Articles and Sections. 10.3.1. Any titles of the several parts, Articles, and Sections of the Agreement are inserted for convenience of reference only and will be disregarded in construing or interpreting any of its provisions. Section 10.4. Notices and Demands. 10.4.1. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement by either party to the other will be sufficiently - 15 - given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and A. in the case of the Redeveloper, is addressed to or delivered personally to; and /0 90f S-44--77/1/0/2_ 5r 8L,4,,v .14/ B. in the case of the City, is addressed to or delivered personally to the City Administrator at 216 North 4th Street, Stillwater, Minnesota 55082; or at another address with respect to either party as that party may, from time to time, designate in writing and forward to the other party as provided in this Section. Section 10.5. Counterparts. 10.5.1. This Agreement may be executed in any number of counterparts, each of which will constitute one and the same instrument. IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Redeveloper has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. ATTEST: Diane F. Ward, City Clerk - 16 - CITY OF STILLWATER By Ken cki, Mayor STILLWATER CAVES, LLC a Minnesota limited liability company By C-) Its STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON ) On this /914»day of /�� 'iK, 2013, before me, a Notary Public within and for said County, appeared Ken Harycki, and Diane F. Ward, to me personally known who, being duly sworn, did say that they are the Mayor and City Clerk named in the foregoing instrument and that this instrument was signed as the free act and deed of the CITY OF STILLWATER, Minnesota, a Minnesota municipal corporation. NANCY MANOS NOTARY PUBLIC - MINNESOTA My Commission Expires Jan. 31, 2015 STATE OF MINNESOTA ) ss COUNTY OF WASHINGTON AdiarLi The foregoing instrument was acknowledged before me this 3'`f`7 day of 2013, by c o4.Ey 4_, 9 v/2-57 4 i) , the t -4N p&&2 , duly authorized agent for the Redeveloper, STILLWATER CAVES, LLC. Notary Public -17- 4-07/"" ems,----- DAVID TERRY MAGNUSON NOTARY PUBLIC MINNESOTA My Commission Expires Jan. 31, 2015 EXHIBIT A Redevelop the historic Joseph Wolf Block into a 35 room boutique hotel, a 60-80 seat restaurant, and retail space. Parcel 1: Lot 3, Block 1, Joseph Wolf Brewery Addition, Tying below a plane surface at elevation 706.1 feet, above mean sea level; Except: That part of Lot 3, Block 1, Joseph Wolf Brewery Addition, Washington County, Minnesota, below elevation 706.1 feet, and lying Northerly and Easterly of the following described line: Commencing at the Northeast corner of said Lot 3; thence South 17 degrees 47 minutes 34 seconds East, assumed bearing, along the East line of said Lot 3, a distance of 26.16 feet to the Point of Beginning of the line to be described; thence South 71 degrees 45 minutes 21 seconds West, a distance of 49.50 feet; thence North 17 degrees 45 minutes 43 seconds West a distance of 18.07 feet to the Northerly line of said Lot 3, and there terminating. Parcel 2: Units 1 through 6, inclusive, Common Interest Community Number 214, a Condominium, The Brewery, Washington County, Minnesota. Lots 1 and 4, Block 1, Joseph Wolf Brewery Addition, Washington County, Minnesota. Lots 2, 8, 9 and 10, Block 1, Joseph Wolf Brewery Addition, Washington County, Minnesota, lying below a plane surface at elevation 706.1 feet above mean sea level li IT B ASSESSMENT AGREEMENT AND ASSESSOR'S CERTIFICATE BETWEEN THE CITY OF STILLWATER, MINNESOTA AND STILLWATER CAVES, LLC A MINNESOTA LIMITED LIABILITY COMPANY WASHINGTON COUNTY, MINNESOTA AND COUNTY ASSESSOR OF THE COUNTY OF WASHINGTON ASSESSMENT AGREEMENT THIS AGREEMENT, made on or as of the day of , 2013, between The City of Stillwater, Minnesota, a municipal corporation (the "City"), and Stillwater Cave, LLC (the "Owners"), and the County Assessor of the County of Washington (the "Assessor"). WITNESSETH, that WHEREAS, on or before the date hereof, the City and the Owner, entered into a Contract for Private Redevelopment ("Redevelopment Contract") for the real property located in the City of Stillwater hereinafter referred to as the "Project" and legally described as on Schedule A, Washington County, Minnesota; and WHEREAS, the City and Redeveloper to established a minimum market value for Redevelopment Property and the Minimum Improvements constructed thereon, pursuant to Minnesota Statutes, Section 469.177, Subdivision 8; and WHEREAS, the City and the Assessor have reviewed the plans for the Minimum Improvements; NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: 1. As of January 2, 2015, the minimum market value of the Property Project shall be not less than Nine Million Three Hundred Thirty-three Thousand Seven Hundred Two and no/100 Dollars ($9,333,702.00). The parties expect that construction of Minimum Improvements will be substantially completed by December 31, 2014. 2. The parties hereto agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered such supplements hereto and such further instruments as may be reasonably required for correcting any inadequate or incorrect description of the project or for carrying out the expressed intention of this Agreement. 3. The minimum market value shall be of no further force and effect and this Agreement shall terminate on (i) the date when the Redevelopment Contract either expires or terminates and in no event shall this Agreement have any force or effect after December 31, 2040. 4. This Agreement, with the Redevelopment Contract, shall be promptly recorded by the Redeveloper with a copy of Minnesota Statutes, Section 469.177, Subdivision 8, set forth in Schedule A hereto. 5. Neither the preambles nor provisions of this Agreement are intended to be construed as modifying the terms of the Redevelopment Contract between the City and the Redeveloper. 6. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which constitute but one and the same instrument. 7. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. CITY OF STILLWATER By Ken Harycki, Its Mayor By Diane F. Ward, Its Clerk STATE OF MINNESOTA ) ss. COUNTY OF WASHINGTON ) On this day of , 2013, before me a Notary Public within and for said County, appeared Ken Harycki, and Diane F. Ward, to me personally known who, being duly sworn, did say that they are the Mayor and City Clerk named in the foregoing instrument and that this instrument was signed as the free act and deed of the City of Stillwater, Minnesota, a municipal corporation. Notary Public -2- STATE OF MINNESOTA ) ss COUNTY OF WASHINGTON ) Drafted by: Stillwater Caves, LLC The foregoing instrument was acknowledged before me this day of , 2013, by Stillwater Caves, LLC. David T. Magnuson (#66400) Magnuson Law Firm 324 Main Street South, Suite #260 Stillwater, MN 55082-5165 651-439-9464 (phone) Notary Public -3- SCHEDULE A TO ASSESSMENT AGREEMENT LEGAL DESCRIPTION: Parcel 1: Lot 3, Block 1, Joseph Wolf Brewery Addition, lying below a plane surface at elevation 706.1 feet, above mean sea level; Except: That part of Lot 3, Block 1, Joseph Wolf Brewery Addition, Washington County, Minnesota, below elevation 706.1 feet, and lying Northerly and Easterly of the following described line: Commencing at the Northeast corner of said Lot 3; thence South 17 degrees 47 minutes 34 seconds East, assumed bearing, along the East line of said Lot 3, a distance of 26.16 feet to the Point of Beginning of the line to be described; thence South 71 degrees 45 minutes 21 seconds West, a distance of 49.50 feet; thence North 17 degrees 45 minutes 43 seconds West a distance of 18.07 feet to the Northerly line of said Lot 3, and there terminating. Parcel 2: Units 1 through 6, inclusive, Common Interest Community Number 214, a Condominium, The Brewery, Washington County, Minnesota. Lots 1 and 4, Block 1, Joseph Wolf Brewery Addition, Washington County, Minnesota. Lots 2, 8, 9 and 10, Block 1, Joseph Wolf Brewery Addition, Washington County, Minnesota, tying below a plane surface at elevation 706.1 feet above mean sea level. SCHEDULE B TO ASSESSMENT AGREEMENT CERTIFICATION BY COUNTY ASSESSOR The undersigned, having reviewed the improvements to constructed and the market value assigned to the land upon which the improvements are to be constructed, and being of the opinion that the minimum market value contained in the foregoing Agreement appears reasonable, hereby certified as follows: The undersigned Assessor, being legally responsible for the assessment of property in Washington County, Minnesota, hereby certifies that the market value assigned to the land and improvements are reasonable, with regard to the property legally described in Schedule A. STATE OF MINNESOTA ) COUNTY OF WASHINGTON ) ss. County Assessor, Washington County The foregoing instrument was acknowledged before me this day of 2013, by , the County Assessor of the County of Washington. Notary Public SCHEDULE C TO ASSESSMENT AGREEMENT CONSENT TO ASSESSMENT AGREEMENT BY MORTGAGE HOLDER (the "Lender"), does hereby consent to all terms, conditions and provisions of the foregoing Assessment Agreement and agrees that, in the event it purchases the Redevelopment Property at a foreclosure sale or acquires the Redevelopment Property through a deed in lieu of foreclosure or otherwise in satisfaction of the indebtedness owed by the Redeveloper, it and its respective successor and assigns, shallbe bound by all terms and conditions of the Assessment Agreement, including but not limited to the provision which requires that the minimum market value of the Redevelopment Property shall be maintained throughout the term of the Assessment Agreement. IN WITNESS WHEREOF, we have caused this Consent to Assessment Agreement to be executed in its name and on its behalf of this day of , 2013. LENDER: By Its STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON ) The foregoing instrument was acknowledged before me this day of , 2013, by , the of on behalf of the Lender. Notary Public EXHIBIT C CERTIFICATE OF COMPLETION WHEREAS, the City of Stillwater, Minnesota, a municipal corporation (the "City"), entered into a certain Contract for Private Redevelopment ("Contract") with Stillwater Caves, LLC, a Minnesota corporation (the "Redeveloper"), dated as of , 2013, (the "Agreement") and recorded in the Office of the County Recorder in and for the County of Washington and State of Minnesota, as Document Number , which provided for the Redevelopment of the following land described in Exhibit A in the County of Washington and the State of Minnesota, (the "Property"), NOW THEREFORE, this is to certify that all building construction and other physical improvements specified to be done and made by the Redeveloper has been completed in accordance with the Contract, all lawful Codes, Laws, Rules and Ordinances now in effect. Dated this day of , 2013. CITY OF STILLWATER Ken Harycki, Its Mayor ATTEST: Diane F. Ward, Its City Clerk STATE OF MINNESOTA ) ) ss COUNTY OF WASHINGTON ) The foregoing instrument was acknowledged before me this day of November, 2013, by Ken Harycki, Mayor and Diane F. Ward, Clerk, for the City of Stillwater. Notary Public MEMORANDUM TO: Mayor and City Council 7\4 FROM: Shawn Sanders,Director of Public Works DATE: May 27th 2014 RE: No Parking on North Fourth Street DISCUSSSION: Staff has received a request from a property owner on North Fourth Street north of Poplar Street, regarding the amount of vehicles parked in the street. Poplar Street was constructed in 2004 and has street width of 24 feet. Since then a new home was constructed on one of the vacant lots and is now being used as group home. This has caused a lot of traffic to where vehicles are parking on both sides of the street. With the narrow roads, and vehicles parked on both sides, thru traffic is tight and at times not passable, and is concern especially for emergency vehicles. After hearing from some of the other property owners on the street, they would like to see something done as well, in the form of restricting parking on one side of the street. After consideration, it is proposed to restrict parking on the east side of the street. RECOMMENDATION It is recommended that Council prohibit parking on the east side of North Fourth Street, north of Poplar Street. If approved public works staff will install "No Parking " signs on the east side of this section of road. ACTION REQUIRED If council concurs with the recommendation they should adopt Resolution No. 2014 - PROHIBITING PARKING ON THE EAST SIDE OF NORTH FOURTH STREET NORTH OF POPLAR STREET. RESOLUTION PROHIBITING PARKING ON THE EAST SIDE OF NORTH FOURTH STREET NORTH OF POPLAR STREET WHEREAS, upon request and further study to improve traffic flow the east side of North Fourth Street north of Poplar Street is designated as no parking; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STILLWATER, MINNESOTA, to implement the traffic control change. Adopted by the Council this 3rd day of June 2014. Attest: Diane F. Ward, City Clerk Ken Harycki, Mayor MEMORANDUM TO: Mayor and City Council FROM: Shawn Sanders, Director of Public Works DATE: May 27th 2014 RE: Access point on North Frontage Road between Greeley Street and Osgood Avenue DISCUSSSION: Last month, at the direction of City Council, a letter was written to MNDOT to consider a "right in" only access point along the North Frontage Road between Osgood and Greeley Street. MNDOT reviewed the traffic operation and the crash history for this site , and has indicated that they are willing to pursue implementing a right -in only at the existing location (see attached map). This would be at no cost to the City but MNDOT is asking for some maintenance responsibility, mainly in the form of snow plowing. This should be an not issue for the City. RECOMMENDATION It is recommended that Council approve the plan as presented and adopt to resolution to Approve the Layout Flap for St. Croix Crossing Project. ACTION REQUIRED If council concurs with the Recommendation they should adopt Resolution No. 2014 - APPROVAL OF LAYOUT FLAP FOR ST. CROIX RIVER CROSSING PROJECT MNDOT is requesting approval in the form of a resolution APPROVAL OF LAYOUT FLAP FOR ST. CROIX CROSSING PROJECT WHEREAS, the Commissioner of Transportation has prepared a layout flap in response to the City of Stillwater's ("City") request for altering access off of TH36 and onto the North Frontage Road between Greeley Street and Osgood Avenue; and WHEREAS, the City has previously provided municipal consent of the St. Croix Crossing Project (the "Project") layout with Resolution 2006-240; and WHEREAS, the Project's layout flap3 on Layout 38 Copy 1 dated 5/22/14 has been provided to the City and is on file in the Minnesota Department of Transportation office, Waters Edge, Roseville, Minnesota; and WHEREAS, the City will be responsible for any future maintenance of their requested altered access. NOW, THEREFORE, BE IT RESOLVED that the Project layout flap for the improvement of Trunk Highway within the corporate limits is hereby approved under Minn. Stat. §161.164. Adopted by the City Council of the City of Stillwater this 3rd day of June, 2014. Ken Harycki, Mayor ATTEST: Diane F. Ward, City Clerk eEsp44'o Minnesota Department of Transportation �1 St. Croix Crossing Project ►�° 1862 Greeley Street S. °F Tp Stillwater, MN 55082 Businesses along NFR in Stillwater and Oak Park Heights 5-22-14 Recently, I have heard from a number of businesses along the North Frontage Road about the importance to maintain an access point from westbound Highway 36 to the North Frontage Road, in a location between Greeley Street and Osgood Avenue. As with any design of a highway, MnDOT's primary concern is with the safety of the travelling public. Too many access points along a highway can create unsafe situations by creating more points where crashes can then occur. The city of Stillwater has requested that MnDOT provide a right -in only at this location. After consideration, MnDOT will be adding a right -in only access point back into the St. Croix Crossing Project as shown in the attached and will work with the city of Stillwater to do so. MnDOT anticipates constructing this right -in only access point by the fall of 2014. The close proximity of Highway 36 to the North Frontage Road does not provide adequate space for trucks to make the turn from Highway 36 at this location. Because of MnDOT's concerns about safety and operations, signage stating "No -Trucks Allowed" will be present at the intersection. Note that if any safety or operational problems begin appearing, MnDOT will remove the access point. Safety problems include any increases in crashes and operational problems are defined by any delays to the travelling public. Reg Jon t iglo St. Croix Crossing Project Director Attachment: Right -in only graphic Cc: MN State Representative - Kathy Lohmer City of Stillwater — Larry Hansen City of Oak Park Heights — Eric Johnson Washington County — Wayne Sandberg Project File An Equal Opportunity Employer (4) b�%sti Minnesota Department of Transportation 7 " St. Croix Crossing Project !!rya 1862 Greeley Street S. Stillwater, MN 55082 May 22, 2014 Larry Hansen City Administrator City of Stillwater 216 North Fourth Street Stillwater, MN 55082 MAY 2 2 2014 BY: St. Croix Crossing Project — S.P. 8214-114 (TH 36) Right -in only access point along North Frontage Road between Greeley Street and Osgood Avenue Re -submission of Layout Flap3 on Layout 3B Copy 1, dated 5/22/14 --Request for approval from Stillwater under Minn. Stat. § 161.164, Subdivision 2 Dear Mr. Hansen: As you are aware, Mn/DOT has developed the St. Croix Crossing Project working with your community. Recently, we have received your attached correspondence requesting a right -in only along the North Frontage Road between Greeley Street and Osgood Avenue. MnDOT has reviewed the traffic operations and crashes at this location, and are willing to pursue implementing the right -in only. Because of this access alteration request, and in accordance with Minnesota Statute 161.164, Subdivision 2, Mn/DOT is re -submitting this layout flap of the affected portion of the construction plans to your city for approval. MnDOT will pay for the construction of the access alteration, but we are requesting that the City of Stillwater be responsible for the maintenance costs and maintenance responsibilities associated with the access point. As you recall, the City of Stillwater already offered municipal consent of the previous St. Croix Crossing Project layout through Resolution 2006-240. Mn/DOT is now seeking layout flap approval of the attached and per M.S. 161.164, Subdivision 2: "The governing body must approve or disapprove the changes, in writing, within 60 days from the date the commissioner submits them." An Equal Opportunity Employer D Also the decision to approve or disapprove of the layout flap must be recorded on a resolution. I have drafted a sample resolution that is also attached, that you may consider using for this project. Thank you for your continued support of this project. If you have any questions, please contact me at 651-366-4316. Sincerely, Todd Clarkowski St. Croix Crossing Project Coordinator Attachments: -- City of Stillwater 5-7-14 letter requesting access alteration -- Layout Flap3 on Layout 3B Copyl — right -.in only, dated 5-22-14 -- Sample Resolution Cc: Jon Chiglo, St. Croix Crossing Project Director File e. THE BIRTHPLACE OF MINNESOTA May 7,2014 Mr. Jon Chiglo Transportation Department Mn/DOT 395 John Ireland Blvd, Suite 120 St Paul. MN 55155-1899 Re: City of Stillwater Dear Mr, Chiglo: At the May 6, 2014 Council Meeting, the City Council discussed the meeting that had taken place at Joseph's Restaurant regarding the closing of the existing access on Highway 36. While Council understands MnDOT's position, they were sympathetic to the concerns of arca businesses that would be affected. The Council suggests that MnDOT consider a "right in only" at this intersection and restrict out flowing traffic. The Council's support for this action is limited in that it must be deemed safe and otherwise fit MnDOT criteria. Thank you for your consideration. Very truly yours, Larry D. Hansen City Administrator LDH/nm cc: Senator Karin Housley Representative Kathy Lohmer Representative Bob Dettmer CITY HALL: 216 NORTH FOURTH STREET • STILLWATER, MINNESOTA 55082 PHONE: 651-430-8800 • WEBSITE: www,ci.stiliwater.mn.us AIP • I •••••:11 I ! (3, \ _J ,WWS,11-MeNWO.M0 "ma kr, .1 rtg 1-] Fu.,-*,...ak• 1- --=-A— r I I !, ! , 1. I r .i f ....:..._,.1 4 Ell ! 11 / ! ! '1 CITY OF STILLWATER 60TH ST. N. (N. FRONTAGE RD.) TYPICAL SECTIONS I P. , ! ,/ t J •—•,- t `r,13/ 1 i i / I _ p.) / , . _I "-t! J'•-; \ i . ! 1 I I CITY OF OAK PARK HEIGHTS - • - c_ OREN 13 S4EINFEET C. 60TH ST. N. (N. FRONTAGE RD.) LJ_J c- ri . , it -I •,1k,• A 1- 0 _ cJ, Reviewed fly T.H. 36 W.B. 4 Mr - 3 liRIERIMIN irtiffiligligiiiiiiirdbfilaisitilrilialeir.asirinsummaliwirdmirAinaidr..,, 0 mi grommum ,•, i 'IN In 60TH ST. N. SD- TRS'T. N. ( S. ERONTAGE Ra.) (S. FRONTAGE, RD. ) IJ 1 c. OLENE AVE. N. „ q. 014,AltA AVE. N. g s s !=x r.1 i LEGEND ROADWAY Am CURB AND GUTTER EOROREULD 3B I 60TH -ST. N. (S. FRONTAGE RD.) ME ,E=1 j RD TURNING TEMPLATEr7, DESIGN VEHICLE S -BUS -36 j (NORTH FRONTAGE N. FRONTAGE RD. ------. \ #k C 114 36 WB .3 OC ift 1 •-, 1 , : • ' i ,-• , '.., 41, i'.., ;.•,. c.,,,,,, , 2:2:, Csa--_- 3 Er ,•!:•-•• •, r•1 MEMORANDUM TO: Mayor and City Council FROM: Shawn Sanders, Director of Public Works DATE: May 27th, 2014 RE: Feasibility Study for 2014 Street Improvement Project Project No. 2014-02 DISCUSSION For the 2014 Street Improvement Project, it is proposed that certain streets in the Industrial Park undergo a mill and overlay project. The streets in the project area include, Curve Crest Boulevard from County Road 5 to Washington Avenue, Orleans Street from County Road 5 to Curve Crest Boulevard and Market Drive from Curve Crest Boulevard to Orleans Street. Original construction dates of these streets range from 1984 for Orleans Street, east of County Road 5 to 1994 for Market Drive and Curve Crest Boulevard. The roads in the project area have not had any major repair since its construction. The street exhibits transverse and longitudinal cracking that have been patched resulting in an uneven driving surface. PROPOSED PROJECT The majority of the project area would receive a two-inch mill and overlay project, with the exception of Orleans Street east of Washington Avenue, which would get a 1.5 inch mill and overlay. In all, 7300 feet or 1.4 miles would be milled and overlaid as part of this project. Included in the project, cracked or settled concrete sections would be replaced, catch basin manholes would be rehabbed, and ADA accessible ramps would be installed at all street intersections. Also, on eastbound Curve Crest Boulevard, a left turn lane would be installed at the Rec Center. PROJECT COST AND FINANCING The total estimated construction cost is $655,143.18. Engineering and administrative costs are estimated to be $131,028.64, based on 20% of the construction cost. The total estimated project cost is $786,171.82. According to City Assessment Policy, properties within the Industrial Park shall be assessed 100% of the cost of improvements. This covers the majority of the project, with exception of the area along the north side of Orleans Street, where the assessment rate for mill and overlays project would be 80%. It is proposed to assess the project using the front footage method. For the project this is 13,391 feet of frontage. Properties in the industrial park would be assessed at a $62.23 per lineal foot of frontage and the properties on the north side of Orleans Street would be assessed at rate of $37.69 per lineal foot. As stated in our assessment policy residential lots abutting collector streets, which are designated as a Municipal State Aid Street, shall be assessed for a residential equivalent of a standard city street. This would mean a credit in the assessment rate, in the amount of $4.32 will be given to the residential properties on the north side of Orleans Street. Also, since many of the streets are being improved earlier than their expected 25 year life, a credit will be given based on the remaining years of life since the last construction. Summary of the cost breakdown in computing the assessment amount is as follows: Property Assessments (Non City) $496,438 (64%) City Property $138,409 MSAS credit $12,038 Street Life Credit $109,409 City Responsibility (Orleans Street) $28,847 $785,141 PROPOSED SCHEDULE (PRELIMINARY) June 3'd, 2014 Feasibility Study July 1St, 2014, Public Hearing/ Order Improvement July 15th, 2014 Approve plans/ Order Advertisement for Bids August 19th, 2014 Accept Bids/ Award Contract September -November 2014Construction October 2014 Assessment Hearing RECOMMENDATION Since the project is technically and financially feasible, it is recommended that Council approve the feasibility report for the 2014 Street Improvement Project (Project 2014-02) and order a public hearing to be held on July 1St, 2014 at 7:00 PM. ACTION REQUIRED If Council concurs with the recommendation they should pass a motion adopting Resolution No. 2014- , RESOLUTION RECEIVING REPORT AND CALLING HEARING ON 2014 STREET IMPROVEMENT PROJECT, (PROJECT 2014-02). RESOLUTION RECEIVING REPORT AND CALLING HEARING ON 2014 STREET IMPROVEMENT PROJECT (PROJECT 2014-02) WHEREAS, pursuant to resolution of the Council adopted November 19, 2014 a report has been prepared by the City Engineer with reference to the 2014 Street Improvement Project; and WHEREAS, the report provides information regarding whether the proposed project is necessary, cost-effective, and feasible, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF STILLWATER, MINNESOTA: 1. The Council will consider the improvement of such street improvements in accordance with the report and the assessment of abutting property for a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429 at an estimated total cost of the improvement of $786,171.82 2. A public hearing shall be held on such proposed improvement on the 1st day of July 2014, at the Stillwater City Hall Council Chambers at 7:00 p.m., or as soon as possible thereafter, and the clerk shall give mailed and published notice of such hearing and improvement as required by law. Adopted by the City Council of the City of Stillwater this 3rd day of June 2014. ATTEST: Diane F. Ward, City Clerk Ken Harycki, Mayor 2014 Street Improvement Project 2800111 I E 1144 PI ECM t' EWEN 500 50 00 NEI ®I= 1529 1532 MEM oo. 11W M I WI 1502 1530 DRIVING " ®®®- PARK ®®`r�:�• 1410 v 13 1406 1404 1 1677 1600 602 1620 622 1605 607 1110-1242 CURVE 1931-1901 1825 cil°- W 1701 CREST 1826 2000 1900 878 1826 700 1650 TOWER DRIVE 1730 1375 1809 1815 1835 1840 Mir Legend is 775 1645 1647 1634 1750 1778 1 825 0 A 1570-1240 WEST FRONTAGE ROAD STATE HIGHWAY 36 WEST FRONTAGE ROAD 845 875 1850 1902-1912 • Non -Industrial Industrial Park City Property Mill & Overlay 6011-I STREET NORTH STATE HIGHWAY 36 60TH STR 60111 STR NJ 1 inch = 583 feet Document Path: T92014 PROJECTS \2014-02 Street Project1GISVdarket Drive_Curve Crest_Odeansi.mxd MINNESOTA HISTORICAL & CULTURAL HERITAGE GRANTS May 20, 2014 Stuart Glaser City of Stillwater 216 North 4th Street Stillwater, MN, 55032 RE: Grant Number: 1404-03843 Dear Mr. Glaser: It is my pleasure to let you know that the Minnesota Historical Society has awarded a Minnesota Historical & Cultural Heritage Grant in the amount of $10,000 to the City of Stillwater for the Fire Station History Exhibit Plan project. The Society's Executive Council approved this project. You will receive information about the specific requirements associated with the grant in the coming weeks. One word of caution—work on the project must not commence until the grant agreements have been received and authorized by the Grants Office. The Society is honored to support your efforts to preserve our state's heritage. If you have questions about any aspect of your grant award, please feel free to call Melinda Hutchinson in the Grants Office at 651-259-3459. Best wishes for your success with the project ahead. Sincerely, 0/ f /�/ lam: . . jl Andrea Kajer Deputy Director, External Relations Minnesota Historical Society AK:mh Minnesota Historical Society, 345 Kellogg Boulevard West, Saint Paul, Minnesota 55102 651-259-3000 • 888-727-8386 • legacy.mnhs.org/grants Rik WATER AT FN W.,:/i1 LAND & /l1 LEGACY