HomeMy WebLinkAboutCCP 09-22-1997
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AGENDA
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. ARDEN HILLS CITY COUNCIL MEETING
ARMY RESERVE CENTER - 4655 NORTH LEXINGTON AVENUE
. MONDAY, SEPTEMBER 22, 1997, *APPROXIMATELY 8:30 P.M.
. NOTE CHANGE IN LOCATION
THE SPECIAL MEETING WILL BE HELD IMMEDIATELY FOLLOWING
I A JOINT MEETING OF THE CITY COUNCILS OF
ARDEN HILLS, NORTH OAKS AND SHOREVIEW -
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A SPECIAL MEETING OF THE
I ECONOMIC DEVELOPMENT AUTHORITY (EDA)
IS SCHEDULED FOR APPROXIMATELY 9:30 P.M.
I 8:30 P.M. 1. Call to Order
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I 8:30 P.M. 2. Approval of Meeting Agenda
I 8:30 P.M. 3. Unfinished and New Business
I a. Gateway Business District (GBD)
I. Planning Case #97-06, Planned Unit Development (PUD) final
Plans -and Final Plat, Welsh Development Company, LLC
I 2. Purchase and Sale Agreement, CitylWelsh Development
Company, LLC
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I 9:30 P.M. 4. Adjourn
I The above times may vary depending upon length of issue discussion.
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- CITY OF ARDEN HILLS
:. MEMORANDUM
. DATE: September 19, 1997
. TO: Mayor and City Council ~
FROM: Brian Fritsinger, City Administrat
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SUBJECT: Administrator Comments for the September 22, 1997 Special Council
I Meeting
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1. Unfinished and New Business. Gateway Business District (GBD)
. a. Planninl! Case #97-06. Planned Unit Development (PIll) Final Plans and
Final Plat. Welsh Development Comnanv. LLC
I The City Council is asked to approve the PUD final plans and final plat for
Planning Case #97-06, Welsh Development Company, LLC, This would include
revised building elevations, site plans, street vacations, park dedication and
. variances.
b. Purchase and Sale Agreement. CitvlWelsh Development Company. LLC
.. The City Council is asked to approve the Purchase and Sale Agreement for the
sale of property to Welsh Development Company, LLC, substantially in the form
I presented, subject to nonsubstantial changes being approved by the City's
Development Attorney and City Administrator; authorize the Mayor and City
Administrator to execute all necessary documentation; subject to conditions.
I The sale includes the former Kem Milling property and is proposed to include the
various slivers of property to be acquired from Naegele. Naegele has not yet
finalized its review of the Purchase Agreement, and will provide them to the City
. for final action on September 29,1997.
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:- CITY OF ARDEN HILLS
MEMORANDUM e
DATE: September 22, 1997
I TO: Mayor and City Council
. FROM: Kevin Ringwald, Community Development Director k
I SUBJECT: Case #97-06, PUD Final Plans (including variances) & Final Plat
(including street vacation and park dedication) -
Welsh Companies, 4000 Round Lake Road
. Reouest
The applicant is requesting approval of a Planned Unit Development (PUD) final Plan
(including variances), [mal plat, and a street vacation to facilitate the construction of a three
. phase office/industrial project consisting of a 104,532 square foot building (Phase II), 115,575
square foot building (Phase III), and a 102,360 square foot building (phase IV) on a 31. 76 acre
site zoned Gateway Business (Exhibits A and A-I).
I Background
" The Planning Commission on July 2, 1997 recommended approval of the PUD Master Plan
(including variances) and preliminary plat in Planning Case 97-06, subject to the following e
conditions:
. 1. Provision of the street name for the relocated 14th Street as Gateway Boulevard,
2. No issuance of occupancy permits until such time that the relocated Round Lake Road is
open for traffic and capable of accepting increased traffic.
I 3. Compliance with the approval of the Rice Creek Watershed District.
4. Approval of and compliance with an NPDES permit by the MPCA.
5. Compliance with the City Engineer's letter dated June 24, 1997,
I 6. The smallest amount of bare ground is exposed for as short a time as feasible.
7. Temporary ground cover, such as mulch, is used and permanent ground cover, such as
sod, is established,
I 8. Methods to prevent erosion and trap sediments are employed.
9. fill is stabilized to accepted engineering standards, approved by the City Engineer.
10. Approval of and compliance with wetland permits by the U.S. Army Corps of Engineers.
I 11. Modification of the landscape plan to provide the required landscape material.
12. Provision of style oftrash enclosures.
13. Provision of the type and size of the three (3) area identification signs.
I 14. Provision of low profile rooftop units painted to match the building's exterior and located
such that they will be screened to prevent direct viewing from the public's right-of-way,
I 15. Compliance with the lighting requirements of the Zoning Ordinance.
16. Determination by the City Council that an Environmental Impact Statement is not
t!'. warranted (negative declaration) or EIS adequacy determination is made,
17, Modification of the landscaping as outlined in Findings - Variance #3, item 2, e
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I 18. Modification of the building's exteriors (Phase II, III, and IV) as outlined in Findings-
t' Variance #5, items 2-13.
19. Modification of the parking spaces to eliminate the variance as outlined in Findings -
Other Variances, item 3.
20. Provision of the necessary drainage and utility easements on the plat.
. 21. Provision of the necessary access easements (Vaughn Towers) on the plat.
22. Extension of the relocated 14th Street to the southeastern-most portion of Lot 3.
23. Payment and/or dedication of park land as recommended by the Parks and Recreation
. Director.
24. Execution of all development agreements prior to consideration of the final plat by the
City Council.
I 25. Provision of revised design with more 3-D relief for the entrances and sides of Phase II
building to the City Council. -
26, Approval by the Fire Chief of all building address locations.
I The City Council on July 14, 1997, approved the PUD Master Plan, including Landscape Plan
I and Variances, and Preliminary Plat in Planning Case 97-06, subject to the following conditions:
I. Provision of the street name for the relocated 14th Street as Gateway Boulevard.
I STATUS - (Condition Satisfied). The plans provide for the new street names,
2. No issuance of occupancy permits until such time that the relocated Round Lake Road is
open for traffic and capable of accepting increased traffic.
Ie STATUS - (Pending). The applicant's traffic engineer has reviewed this condition and is
requesting a modification of this condition. The discussion on this modification can be found in
the Update section of this memorandum item number one.
I 3. Compliance with the approval of the Rice Creek Watershed District.
STATUS - (pending). This condition is reviewed for compliance during construction.
4, Approval of and compliance with an NPDES permit by the MPCA.
I STATUS - (pending). This condition is reviewed for compliance during construction.
5. Compliance with the City Engineer's letter dated June 24, 1997.
I STATUS - (Pending). The grading plan has been modified in an attempt to minimize the
exportation of material from the site. Therefore, the engineers letter is dated and he will be
providing a revised letter at the meeting.
I 6. The smallest amount of bare ground is exposed for as short a time as feasible.
STATUS - (Pending). This condition is reviewed for compliance during construction,
7. Temporary ground cover, such as mulch, is used and permanent ground cover, such as
I sod, is established.
STATUS - (Pending). This condition is reviewed for compliance during construction.
8. Methods to prevent erosion and trap sediments are employed.
I STATUS - (Pending), This condition is reviewed for compliance during construction,
9. Fill is stabilized to accepted engineering standards, approved by the City Engineer.
STATUS - (pending). This condition is reviewed for compliance during construction.
I 10. Approval of and compliance with wetland permits by the U.S. Army Corps of Engineers.
STATUS - (Pending). This condition is reviewed for compliance during construction,
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11. Modification of the landscape plan to provide the required landscape material. I
STATUS - (Pending). The revisions to the building locations and grading require additional ..
modifications to the landscape plan. The detailed discussion of this occurs in the Updates
section of this memorandum under item number ten.
12. Provision of style of trash enclosures.
STATUS - (Condition Satisfied). The applicant previously provided details of the style of trash I
enclosure that is being proposed (Exhibit B).
13. Provision of the type and size of the three (3) area identification signs.
STATUS - (Condition Satisfied). The applicant previously provided details of the style of trash .
enclosure that is being proposed (Exhibit C).
14. Provision oflow profile rooftop units painted to match the building's exterior and located
such that they will be screened to prevent direct viewing from the public's right-of-way. I
STATUS - (Pending). This condition is reviewed for compliance during constructi6n.
15. Compliance with the lighting requirements of the Zoning Ordinance.
STATUS - (Pending). This condition is reviewed for compliance during construction. I
16. Determination by the City Council that an Environmental Impact Statement is not
warranted (negative declaration) or EIS adequacy determination is made. I
STATUS - (Condition Satisfied). The City Council approved a negative declaration on the
need for an EIS with this project.
17. Modification of the landscaping as outlined in Findings - Variance #3, item 2. I
STATUS - (Condition Satisfied). The applicant has upgraded the size of the landscape material
provided along Gateway Boulevard (southwest comer of Phase II) in the area of the parking
setback variance as requested by the Staff. ~
18. Modification of the building's exteriors (Phase II, III, and IV) as outlined in Findings-
Variance #5, items 2-13.
STATUS - (Pending). The satisfaction of this condition is dependent on the City Councils .
acceptance of the proposed modifications to the exterior of the building which is discussed in the
Updates section of this memorandum under item nine.
19. Modification of the parking spaces to eliminate the variance as outlined in Findings - I
Other Variances, item 3.
STATUS - (Condition Satisfied). The parking spaces on the northeast comer of Phase II which I
required a variance have been eliminated from that part of the plan.
20. Provision of the necessary drainage and utility easements on the plat.
STATUS - (Pending). The satisfaction of this condition is discussed in the Updates section of I
this memorandum under item number four.
21. Provision of the necessary access easements (Vaughan Towers) on the plat.
STATUS - (Condition Satisfied). The plat shows the required access to the Vaughan property. I
22. Extension of the relocated 14th Street to the southeastern-most portion of Lot 3.
STATUS - (Condition Satisfied). The plat shows the required street extension.
23. Payment and/or dedication of park land as recommended by the Parks and Recreation I
Director.
STATUS - (pending). The recommendation of the Director of Parks and Recreation as to park
dedication is attached to this memorandum (Exhibit D). I
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I 24. Execution of all development agreements prior to consideration of the final plat by the
~ City CounciL
STATUS - (pending). The development agreement is being reviewed by the City Council at
this meeting
25. Provision of revised design with more 3-D relief for the entrances and sides of Phase II
I building to the City CounciL
STATUS - (Pending). The satisfaction of this condition is dependent on the City Councils
acceptance of the proposed modifications to the exterior of the building which is discussed in the
I Updates section of this memorandum under item nine,
26. Approval by the Fire Chief of all building address locations.
I STATUS - (pending). The applicant has attempted on several occasions to engage the services
of the LNFD as to their requirements in this and other areas without success,
27. The modifications for reliefto comers visible from Fourteenth Street would be
researched.
I STATUS - (Pending). The satisfaction of this condition is dependent on the City Councils
acceptance of the proposed modifications to the exterior of the building which is discussed in the
. Updates section of this memorandum under item nine.
28. The review of comer relief to be undertaken by the City Council at the time of the final
plat submittal.
I STATUS - (pending). The satisfaction of this condition is dependent on the City Councils
acceptance of the proposed modifications to the exterior of the building which is discussed in the
Updates section of this memorandum under item nine.
Ie Updates
I. Applicant's Traffic Engineer modification to Condition #2. The applicant requested
. that their traffic engineer review the capacity of the existing intersection of Highway 96
and West Round Lake Road to determine the maximum amount of development that
could be accommodated under the existing condition (Exhibit E). In short, the
. applicant's traffic engineer concludes that up to 200,000 square feet of additional
development can be accommodated under the existing condition, before the upgrade
I intersection is required. Also, the applicant's traffic engineer concluded that the
upgrading of West Round Lake Road from a two lane facility to a four lane divided
facility is not required as a part of this project. Therefore, it would appear to be
I appropriate to modify this condition to state; "No issuance of occupancy permits for that
part of the project (Phases II, III, and IV) greater than 200,000 square feet until such time
that the relocated Round Lake Road is open for traffic and capable of accepting increased
I traffic."
2, Road (Gateway Boulevard) is shifted six feet to the north (plan Sheet C4.0). The
applicant in an effort to minimize the extent to which they export soil from this project is
I proposing to increase the relative elevation of the site approximately two feet. In doing
this relative increase in site height the street height also had to increase to keep grades
stable. The railroad right-of-way to the south of Gateway Boulevard was a limiting factor
I in the grading scheme. The road bed of Gateway boulevard needed to be shifted six (6)
feet to the north within the right-of-way to accommodate the increased height of the road.
tt Even with the shift, the City will still need a slope easement from the railroad company.
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3. Snow storage easement required on the north side of Gateway Boulevard (plan I
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Sheet C3.0). The six foot shift of the road bed of Gateway Boulevard to the north causes
the boulevard of that right-of-way to be reduced by six feet. Therefore, an expanded (by
six feet) drainage and utility easement adjacent to the north right-of-way line of Gateway
Boulevard is required to replicate what was lost with the shift of the roadbed. .
4. Dedication of Gateway Boulevard(plan Sheet C3.0 & final plat). The final plat shows
Gateway Boulevard as Outlot A. The developer needs to transfer ownership of this outlot
to the City. I
5. Buildings are shifted slightly to the east (Plan Sheet C4,O). The buildings (Phases II,
III, and IV) have been shifted slightly to the east with the revised grading that was done.
The relationships of the buildings to each other and their respective required setbacks I
have been maintained. -
6. Relocated ponds from Phases III and IV. As a part of the grading revisions that have
been provided on the site. The two ponds on Phase III and the pond in front of the Phase I
IV building are being proposed to be relocated to the City pond on the Naegele property
at the south corner of Round Lake Road and 13th Street (under the NSP transmission I
lines). The easements for this pond have not yet been obtained, but are required for this
development.
7. Site Plan states 10 foot sign setback when 20 feet is required (Plan Sheet C3.0). The I
site plan states that the required sign setback from the right-of-way is ten (10) feet when
twenty (20). feet is required. As a note, the building plans show the signs with a twenty
(20) foot setback. ~
8. The west driveway onto Gateway Boulevard from Phase II was eliminated (plan
Sheet C1.Z). The increase in the height of the site required the elimination of the
driveway from the southwest corner of Phase II to Gateway Boulevard. The .
employee/customer parking lot has two points of access one from Gateway Boulevard
and one from Round Lake Court.
9. lZ" watermain is required on phase II (8" proposed) to replace existing lZ" .
watermain which is being relocated (Plan Sheet C6.0 & C3.Z). The existing 12 inch
watermain which is currently located in 14th Street is being relocated to Gateway
Boulevard. However, the Phase I building is serviced off of this line. Therefore, the I
water line through Phase II should also be a 12 inch line to ensure proper water flow. If
the applicant can show that Phase I can safely operate on an 8 inch line, then the 8 inch .
line could remain.
10. Building Elevation modifications to Phases III and IV (Plan Sheet A-3.3). The Staff
has previously provided the City Council (August worksession) with the proposed I
enhancements to the exterior of Phases III and IV. The only modifications that have been
done since then is to step the wing wall to enhance its aesthetic qualities.
11. Landscape is required behind and front of Phase 3 and Phase 4 (Plan Sheet Ll.0 & I
CZ.3 & Ll.3 & Ll.4). The revised grading which is being proposed raises the buildings
relative to the properties around the site. Previously, the applicant described how the
buildings would be effectively screened from Round Lake because of the elevation of the I
ground between the lake and the property, but by raising the site and the buildings the
effectiveness of this screen has been minimized. The two buildings will be above the -.
ground level of the land between the buildings and the lake. However, there will be
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I vegetation on the USFWS property and the conservation easement which will assist in the
fI screening of the buildings and the truck court yard between Phases III and IV. The Staff
believes that the applicant should provide for additional landscaping (evergreen trees) in
this area to make up for the lose of screening due to the revisions to the grading plan for
the site.
. 12. Proof of parking conflicts with pond on Phase 4 (plan Sheet CI.4). The tenant which
the applicant is courting for Phase IV has parking requirements which are less than those
I prescribed by the ordinance. In cases such as this the Zoning Ordinance (Section VI, F,
I, f) allows for "proof-of-parking". The applicant is proposing 37 "proof-of-parking"
spaces for Phase IV. However, 22 of these "proof-of-parking" spaces overlap the
I ponding easement which is required for the storm water needs of Phase IV,
13. Modular retaining wall by others on Phase 4 should be by developer (plan Sheet
C2.4). The plans provide for a modular retaining wall "by others". Since, the City's park
. trail is just to the east of this location, the Staff assumes that this means that this will be
the City's responsibility. Since, the retaining wall is needed for the grading of the site the
Staff believes that the wall should be provided by the developer not the City,
I 14. Outlet of pond on Phase 4 requires USFWS approval (plan Sheet C3.4). The storm
water pond on Phase IV has an outlet structure which is not on the applicants property, it
is on the U.S. Fish and Wildlife Service's (USFWS) property. Therefore, the applicant
I will need the approval of the USFWS for their proposed outlet structure for the storm
water pond on Phase IV.
15. Vaughan Objection (Exhibit F). The City received the attached objection from Dan
'- Vaughan regarding access to his property. The City Attorney has reviewed the objection
and has informed Staff that it is his opinion that the proposed access provides reasonable
access to the Vaughan property. Pursuant to City Council direction, the Staff has
I contacted Naegele to discuss access from their site to enhance the redevelopment of the
Vaughan property so that when a redevelopment plan is brought forth by Mr. Vaughan
I the enhanced access can be provided for.
REVISED Recommendation
I The Staff would recommend approval of the request of a Planned Unit Development (PUD) Final
Plan (including variances), final plat, and a street vacation to facilitate the construction of a three
phase office/industrial project consisting of a 104,532 square foot building (Phase II), 115,575
I square foot building (Phase III), and a 102,360 square foot building (phase IV) on a 31.76 acre
site zoned Gateway Business, subject to the following conditions:
I 1. No issuance of occupancy permits for that part of the project (Phases II, III, and IV)
greater than 200,000 square feet until such time that the relocated Round Lake Road is
open for traffic and capable of accepting increased traffic.
I 2. Compliance with the approval of the Rice Creek Watershed District.
3. Approval of and compliance with an NPDES permit by the MPCA.
4. Compliance with the City Engineer's letter dated June 24,1997,
I 5. The smallest amount of bare ground is exposed for as short a time as feasible.
6. Temporary ground cover, such as mulch, is used and permanent ground cover, such as
.. sod, is established.
7. Methods to prevent erosion and trap sediments are employed.
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8. Fill is stabilized to accepted engineering standards, approved by the City Engineer, I
9, Approval of and compliance with wetland permits by the U.S. Army Corps of Engineers. ..
10. Modification of the landscape plan to provide the required landscape material.
II. Provision oflow profile rooftop units painted to match the building's exterior and located
such that they will be screened to prevent direct viewing from the public's right-of-way.
12. Compliance with the lighting requirements of the Zoning Ordinance. I
13. Modification of the building's exteriors (Phase II, III, and IV) as outlined in Findings -
Variance #5, items 2-13.
14. Provision of the necessary drainage and utility easements on the plat. .
15. Payment and/or dedication of park land as recommended by the Parks and Recreation
Director.
16. Execution of all development agreements prior to consideration of the final plat by the I
City Council. -
17. Provision of revised design with more 3-D relieffor the entrances and sides of Phase II
building to the City Council. I
18. Approval by the Fire Chief of all building address locations.
19. The modifications for relief to comers visible from Fourteenth Street would be I
researched.
20. The review of comer relief to be undertaken by the City Council at the time of the [mal
plat submittal. .
21. Acquisition by the developer of all properties within the Phases II, III, and IV
development area.
22. Approval and execution of all of the purchase, sale, and development agreements ~
required to facilitate this project.
23. Provision of a slope easement from the railroad (MT Properties) for Gateway Boulevard.
24. Provision of additional easement (ie., snow storage, etc.,) on the north side of Gateway .
Boulevard to replicate the lost boulevard with the six foot shift of the roadbed.
25. Transfer of ownership of Outlot A from the applicant to the City.
26. Provision of the necessary easements for the relocated ponds. I
27. Provision of a 12 inch watermain on Phase II, unless it can be shown to the satisfaction of
Staff that an 8 inch water line will meet the requirements of the Phase II building. I
28. Provision of a modified landscape plan enhancing the area to the north of Phases III and
IV to effectively screen this area from Round Lake.
29. Modification of the site plan to provide the necessary parking stalls for Phase IV. I
30. Provision of the modular block retaining wall on Phase IV by the applicant.
31. Approval of the USFWS for the pond outlet structure from Phase IV onto their property.
Notes .
I. Pursuant to Section VIII, D, 6, c, of the Zoning Ordinance, "A vote of at least four-fifths
(4/5) of the full council is required for approval of the Master Plan". .
2. Pursuant to Section VIII, F, 2, of the Zoning Ordinance the PUD approval "... shall
automatically expire and become void one (1) year from the and after the date on which
the council granted such approval if the building permit or other approved improvements I
have not been issued a permit by the building inspector...".
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I 3, The City Code (Subdivision Ordinance) in Section 22-4, (b), (4), states that; "If the final
~ plat is approved by the city council, the subdivider shall record it with the county recorder
or registrar of titles within sixty (60) days after the date of approval; or otherwise, the
approval of the final plat shall be considered void ...". Therefore, if the City Council
approves the final plat on Monday, September 22, 1997, then the final plat would have to
I be recorded by Friday, November 21, 1997 or the final plat approval would be void.
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GATEWAY
BUSINESS CENTER I
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, Northeast Ouadrant
, of Interstate 35W . I
and 694
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,. Arden Hills, I
Minnesota
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821.Raymond Ayenue . ..
Suite 100
St. Paul, Iv[N 55114
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t,<,j CIVll. ENGINEERING
lANDSCAPE ARCHITECTURE
I ENVIRONMENTAL SERVICES
URBAN PLANNING
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I September 17, 1997
. Kevin Ringwald
Planner, City of Arden Hills
I 1450 West Highway 96
Arden Hills, MN 55112 --
I Re: Gateway Business Center
3rd Avenue NE and 14'" Street NE, Arden Hills, MN
HKS Project No. 97030
I Dear Mr. Ringwald:
I The following materials are enclosed for municipal approval of the above referenced project:
. 10 copies of Project Narrative including Variance Requests
Ie . 10 full size sets of all drawings
. 1 reduced set of (8-112" x 11") all drawings
I We have received Rice Creek Watershed District approval (including approval of off-site
wetland mitigation) based on the plans previously approved by the City. We request that the
project be considered at the City Council meeting scheduled for September 22,1997.
I If you have any questions or need any additional information, please contact either Harald
Eriksen or myself at our office.
I Very truly yours,
HKS ASSOCIATES, INC.
I ~4. fLr4{~
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I Alan Kretman AICP!ASLA
Director of Urban Planning/Landscape Architecture
I Enclosures
cc: Richard Zehring, Welsh Development Co" LLC
I Greg Stonehouse, MSA
tI OKS ASSOCIATES I"C
821 RAYMOND AVENUE SUITE 100
ST. PAUL, ~L'l 55114
I PHO"E 6121659-9732 FAX 61216S9-0891
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September 17, 1997 ..
GA TEW A Y BUSINESS CENTER I
Master Plan: Phases II, III and IV
3rd Avenue NE and Gateway Boulevard
Arden Hills, MN I
By:
WELSH DEVELOPMENT COMPANY, LLC - I
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8200 Normandale Boulevard, Suite 200
Minneapolis, Minnesota 55437-1060 I
REOUESTS I
This narrative represents the revisions made to our drawings in response to suggestions and comments
from the City following our initial plan submittals. I
The following items are requested for approval:
1. Approval of purchase agreements with Welsh Development Company, LLC regarding the Naglee tJ
and Darling properties.
2. Final Plat of "Gateway Addition" to create three lots within a 31.75 tract of land southwest of the I
Round Lake National Wildlife Refuge, east ofInterstate Highway 35W and north of Highway 694.
3. Approval of the development agreement for the proposed Gateway development. I
4. Approval of park dedication calculations associated with the "Gateway Addition" final plat.
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5, Minor modification to the General Development Plan approval for Phase II, III and IV of the 31.75
acre Gateway Business Center Planned Unit Development (PUD), including three office/warehouse I
buildings.
6. Request the identical variances as specified in our original submittal to the City of Arden Hills:
a. Minimum office component requirement within each office/warehouse building reduced from I
25% to 10%.
b. Minimum front yard parking setback for the Phase II deveIopment reduced from 50 feet to 13
feet. .
c. Minimum side yard parking setback for the Phase III and Phase IV building loading dock/service
areas reduced from 20 feet to 10 feet.
d. Allowable building finish expanded from stone, brick and glass to also include pre-cast, I
insulated concrete panels with architectural detailing and modulation of the building massing at
entrances with an Exterior Insulate Finished System (EIFS). ..
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~ 7. Site Plan Approval for the following developments which are consistent with the purpose and intent
of the (GB) Gateway Business Zoning district:
. a. Phase II: a 104,532 square foot office/warehouse complex parking and loading facilities on a
7.99 acre parcel.
b, Phase III: a 115,575 square foot office/warehouse complex parking and loading facilities on a
I 8,93 acre parcel.
c, Phase IV: a 102,360 square foot office/warehouse complex with parking and loading facilities
for an 11.72 acre parcel.
I 8. Approval of revised building elevations for phases 2, 3, and 4 of the Gateway BusinessCenter.
I A building permit application will be submitted to the City of Arden Hills following approval of the site
design and engineering plans.
. PROJECT UNDERSTANDING
I The Arden Hills Gateway Business Center is a proposed industrial development consisting of three
office/warehouse buildings with associated parking and truck loading facilities. These three buildings
Ie will be placed on a 31.75 acre site of previously "undeveloped and under-developed" land. The project
site shares its Northeastern boundary with the Round Lake National Wildlife Refuge and is bound to the
west by Interstate Highway 35W and Highway 694 to the south, The site is bordered to the east by.a
I horse pasture containing a radio tower.
The proposed Welsh Development site provides a tasteful, efficient development that corresponds with
I the envisioned land-use, promotes safe and orderly traffic flow, and creates a handsome business center
with proper site orientation and extensive landscaping.
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fI HKS ASSOCIATES, INC. Page 2 GATEWAY BUSINESS CENTER
September 17, 1997 for Welsh Development Co., LLC
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S'1'(s I
SUBMITTAL PACKAGE I
Attached with this narrative are thirty-one plan sheets identifying the project location, architecture, -.
existing conditions, site layout, grading, utilities, lighting and landscape. The attached sheets include the
following, with the exception of architectural drawings:
OVERALL: (97030) "::' , . ".' ..' , ,.. . .
Title Sheet CI.O
Existing Conditions and Eoundary Survey Plan C2.0 I
Preliminary Plat Plan C3.0
Architectural Site Layout Plan A1.0
Overall Site Layout Plan C4.0 I
Overall Grading Plan C5.0 - -
Overall Utility Layout Plan C6.0
Wetland Mitigation Grading Plan C7.0 I
Overall Landscape Layout Plan LI.O
Wetland Mitigation Landscape Plan L2.0
Landscape Details Sheet L3.0 I
Site Sections L4.0
Site Sections L5.0
PHASE 2:(97042) .. ,... .' .. . ,< " .'. . . ,. .. . .'" .'. I
Floor Plan A2.2
Building Elevation Plan A3.2 .,J
Preliminary Site Layout Plan Cl.2
Preliminary Grading, Drainage and Erosion Control Plan C2.2
Preliminary Utility Plan C3.2 I
Preliminary Landscape Plan Ll.2
PHASE3:T(97043)', , ., , :.":,...", . './/' --c .."",'.. I
Floor Plan A23
Building Elevation Plan A33
Preliminary Site Layout Plan CI.3 I
Preliminary Grading, Drainage and Erosion Control Plan C23
Preliminary Utility Plan C33
Preliminary Landscape Plan Ll.3 I
Floor Plan A2.4 I
Building Elevation Plan A3.4
Preliminary Site Layout Plan CI.4 I
Preliminary Grading, Drainage and Erosion Control Plan C2.4
Preliminary Utility Plan C3.4
Preliminary Landscape Plan Ll.4 I
HKS ASSOCIATES, INC. Page 3 GA TEW A Y BUSINESS CENTER -.
September 17, 1997 for Welsh Development Co., LLC
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I SITE DESCRIPTION
f' The project lies at the northeast comer of Interstate 35W & Highway 694; The northeast comer of the
site follows the boundary of the Round Lake National Wildlife Refuge. The current site has several small
I wetland depressions, an abandoned farm with two barns and a house, an existing horse pasture, and
several patches of disturbed woodland. Every effort was made through the site design to minimize
environmental impact and to mitigate unavoidable issues.
I Welsh Development Company proposes to locate three buildings of approximately 107,000 square feet
each on separate subdivided parcels. The design includes several detention ponds and an off-site
I regional pond, which will collect excess storm water runoff. In addition, an expanded wetland complex
is proposed in the southeast comer ofthe site to meet the mitigation requirement for filling existing
wetland areas. A new public road (Oateway Boulevard) is also proposed along the south boundary to
allow access to the developments. Access to the site is also available via Round Lake Road West and the
I proposed Round Lake Court Cul-du-sac.
Due to the scope of this project, an EA W was submitted and the City (the ROU) reached a negative
I decision on the need for an Environmental Impact Statement (EIS).
Adiacent Land Use
I Adjoining the site to the northeast is the Round Lake National Wildlife Refuge, currently zoned by the
Department of Natural Resources as "62-70 Recreational Development." To the west of the site is
Ie Interstate Highway 35W and to the south is Highway 694. A horse pasture, containing a radio tower,
borders the site on the east.
I DEVELOPMENT STANDARDS
I The proposed office/warehouse development is designed to meet or exceed the (OB) industrial zoning."
district's standards. The required building size, parking ratio, and landscaping all fall within the
regulations outlined in the OB section of the ordinance, The building and parking setbacks meet the
I intent of City requirements while enhancing the natural characteristics of the land. Intensive landscaping
has been proposed throughout the site to maintain a positive image from public right of ways.
I It is proposed that all ofthe parking and service drive areas have a bituminous surface with B612
concrete curb and gutter throughout the site, with typical lighting standards which have levels that will
comply with the City of Arden Hills code requirements.
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PARK DEDICATION I
Welsh Companies has been working with City staff to detennine the appropriate means of park ..
dedication for an industrial subdivision ofthis scale and location. The City's Park & Recreation goals
for this area include the preservation of the visual quality of Round Lake and to sensitively develop a I
City trail along the West Side of Round Lake. To accommodate these goals, the plat includes a
Conservation Easement along the entire Round Lake frontage, a Wetland Easement to preserve an
expanded wetland and a 20-foot wide Trail Easement, which will allow for a 10 foot wide bituminous
trail. The physical location of the trail easement falls entirely within the Conservation and Wetland I
Easements. The area ofthe Conservation Easement is 55,154.96 square feet and the area of the Wetland
Easement is 135,070 square feet, for a total of 190,229.96 square feet. The combined easements more
than satisfy the City's 10% Park dedication for the development, requiring 124,755.84 square feet of the I
1,247,558.4 square feet. --
SITE DESIGN I
Many factors were considered in creating an aesthetically pleasing business setting which minimizes, and I
' when possible avoids, impact to existing wetlands and compliment the natural attributes of the land,
The proposed Gateway Business Center consists of three office/warehouse building modules, each with a I
least one truck loading dock area with office and loading entrances located on opposite sides of one
another. The ratio of office to warehouse space within each module is proposed to be 80%
warehousel20% office. Each of the three buildings varies slightly in size due to the project site ~
constraints. The building sizes and orientation are as follows: The Phase II building is 104,532 sq. ft, in
size and is located in the southwestern portion of the site with loading areas on the north side and the
office/parking facilities along the south side of the building.' The Phase III building is 115,575 sq. ft. in .
size and is located southeast of II with parking/office areas facing northwest and loading areas facing
southeast. The Phase IV building is 102,360 sq. ft. in size and is located in the southeast portion of the
site with loading facilities facing northwest and parking/office areas facing southeast. I
The overall building placement and design creates shared access routes for loading docks to safeguard
pedestrian and vehicular circulation and to create an attractive visual image for the development. The I
access point of the existing 14th Street NE will be maintained as the proposed Round Lake Court.
Round Lake Court will serve as a shared truck loading access between the Phase II building and the
existing Phase I building on the northeast corner of the site. This design avoids impact to the three I
wetland areas adjacent to Round Lake Road West. Round Lake Court will tenninate in a cul-de-sac to ,
maximize the development potential of the site. A similar relationship exists between the Phase III and
IV buildings. The parallel placement of both buildings creates a shared service area and limited I
employee parking with access from Gateway Boulevard as it is proposed along the southern boundary of
the site. This alignment of Gateway Boulevard also creates a pennanent access route to the radio tower '
east of the development. Substantial landscaping and benning will shield both loading areas from public
view along the proposed Gateway Boulevard and Round Lake Road West. I
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HKS ASSOCIATES, INC. Page 5 GATEWAY BUSINESS CENTER ..
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I Through the wetland sequencing and master planning process, the project has been designed to minimize
,. impacts to the existing wetlands and the Round Lake Wildlife Refuge located to the Northeast. Existing
wetlands located on the Phase II and IV sites will be filled and mitigated according to State and Federal
Regulations. A created wetland on the Phase IV site will fulfill the first half of the 2: I mitigation.
Created uplands and stonnwater ponds on site, as well as created wetlands, uplands, and stonnwater
I ponds on adjacent sites will fulfill the second half of the 2: I mitigation.
Modifications to the original site plan has created eliminated the need for a landscape percentage
I variance on Phase II. The proposed landscape plan provides an average landscaping area of 54% over
the total development and adheres to City requirements with regards to the quantity of caliper inches and
the distribution of size. A significant number of the existing trees have been included within the overall
I landscape plan. Further proposed landscaping will enhance the natural resources of the site and create a
pleasing street wall, which helps to screen the parking area from the adjacent roads. '.
I We have worked in partnership with the City of Arden Hills Park and Recreation Director and the Corps
of Engineers to determine the best alignment of the public trail system easement. The easement runs
adjacent to the boundary along the Round Lake Wildlife Refuge. The overall design of this public trail
I system has been sensitive to the existing trees.
I UTILITIES & GRADING
Watermain
Ie There are two existing watermains on the site. The first, located on the northern portion of properly, is a
12" watermain. There is also an existing 8" watermain located along the western portion of the property,
. The 12" watermain will be removed from the area east ofthe proposed Round Lake Court. The
remaining portion will be left in place to serve the existing Phase I building. The City is proposing that
a new 12" watennain be constructed in the newly designed Gateway Boulevard right-of-way and that fire
I hydrants be placed along the street at standard intervals.
An 8" line will service each of the three new proposed buildings, connecting them to the watennain in
I the street. Fire hydrants will be located and spaced on each site to meet Fire Marshall requirements.
Sanitary Sewer
I An existing 8" sanitary sewer is located north of the completed Phase I Building. Another 18" sanitary
sewer is currently located south of the existing rail road tracks.
I A new 12" sanitary sewer main will be constructed within the proposed Gateway Boulevard right-of-way
space, Individual 8" sanitary sewer lines, connecting the proposed buildings to the street will service
each of the three new proposed buildings.
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Storm Sewer I
Generally, the storm water runoff on the-majority of the site flows south-westerly toward 1-35W and ..
1-694. The remaining portion of storm water runoff flows northerly into Round Lake. Storm water for
the majority of the site will be collected by a new storm sewer system. Storm sewer piping to individual
on-site ponding basins will carry the storm water on each site and to the regional pond southwest of the I
development. Each ponding basin will have a small outlet pipe connected to the City's system within the
proposed Gateway Boulevard right-of-way.
The City is proposing the construction of a new storm sewer system within the proposed Gateway I
Boulevard right-of-way. This new system will carry storm water to a new regional pond as proposed
south of 13th Street (south of the railroad tracks). All new storm sewers and ponding basins are designed I
to meet the requirements of the Rice Creek Watershed District. --
Gradin!!: I
The proposed earthwork operations will be conducted in order to provide a balanced site. All unsuitable
material will be excavated from the building areas approximately one foot below the proposed pavement I
surface and will be backfilled with suitable material to bring the building pads to grade. In addition, the
paved areas will be test rolled so that "soft spots" may receive further excavation to remove unsuitable
material. Erosion control measures will be placed prior to the start of grading operations and will remain .
in place until all slope stabilization has been completed.
VEHICULAR & PEDESTRIAN CIRCULATION .,t
--,
Pedestrian and vehicular circulation has been safeguarded through the creation of shared truck loading I
facilities, creating a distinct separation from the main parking facilities. The proposed termination of
the existing 14th Street NE as a cul-de-sac, is an integral part of insuring this separation. The proposed
Gateway Boulevard will be realigned to serve as the main access for all three buildings. The proposi::d _ I
Gateway Boulevard right-of-way will follow the southern border of the development and allow for
access to the radio tower east of the site.
The City of Arden Hills is planning to develop a pedestrian trail along Round Lake. Accommodation for I
this public project will be made available through the conservation easements proposed within the
development plan and a dedicated trail easement. I
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HKS ASSOCIATES, INC. Page 7 GA TEW A Y BUSINESS CENTER ..
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1 ARCHITECTURAL DESIGN
it Exterior materials proposed for the construction of the Phase II, III and IV office/warehouse buildings
are a combination of brick, glazing and EIFS at the front or office entry-side of the buildings with raked
I pre-cast concrete insulated panels at the rear or loading dock areas.
The image of the overall development is one of high quality, featuring attractive entries and
1 architectural fenestration, accentuated by glass and brick detailing. A homogeneous appearance is
provided by the addition of horizontal architectural elements.
1 VARIANCE REQUEST
-.
No modifications have been made to the variance requested during the initial submittal to the City.
I The Zoning Ordinance of the City of Arden Hills, Section V(K)(I) "Procedure," states as follows:
I "The prescribed procedure may be modified by the City to allow planningflexibility and
to encourage cooperative dialogue between the applicant and the City. "
1 These requests for modification were presented to the City of Arden Hills in the context of a request for a
Planned Unit Development (PUD) approval. The City's PUD Ordinance allows for some design
flexibility. The premise for justifying these variance requests include the unique character of the land
Ie and its context within this area of the City along with the overall goals of the City for development in the
Gateway Business Zoning District.
I Again, the following specific but modest variances are being requested from the City of Arden Hills'
Gateway Business (GB) Zoning District requirements:
I I. Minimum office component requirement within each office/warehouse building reduced from 25%
to 10%,
2. Minimum front yard parking setback for the Phase II development reduced from 50 feet to 13 feet.
1 3, Minimum side yard parking setback for the Phase III and Phase IV building loading dock/service
areas reduced from 20 feet to 10 feet.
1 4. Allowable building finish expanded from stone, brick and glass to also include pre-cast, insulated
concrete panels with architectural detailing and modulation of the building massing at the entrances
with Exterior Insulate Finished System (EIFS), which has the appearance of a cement stucco but is .
I an acrylic baked product.
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MINIMUM OFFICE COMPONENT PERCENTAGE I
The buildings will be a high profile, high quality office/warehouse building which will service ..
distribution and light manufacturing companies desiring space with easy access to Interstate 35W and
Interstate 694. Three $5,000,000 ( five million dollar) phases of planned investment have been designed
by Welsh. Gateway Business Center is based on the desire and need for such development as expressed I
by prospective tenants in the community of the Arden Hills. This project will be highly successful and
will set the stage for further completion of development in the Gateway District.
The typical tenant for the office/warehouse market is likely to have an office component of 10% to 20%. I
The desire is to continue the on-going relationship with the City of Arden Hills with the understanding
that tenants of this type do not typically have a 25% or greater office requirement. Therefore, the I
variance request to 10% is designed to allow for the flexibility to meet tenant requirements__
The City of Arden Hills shall be assured that there are no plans to be leasing space to bulk distribution I
tenants. Based upon the total cost ofthe project, this development would not be competitive with other
bulk distribution projects, nor is it intended to be.
MINIMUM FRONT YARD PARKING SETBACK (pHASE n ONLY) I
In order to create a visually arresting and attractive building design and layout, with reasonably I
marketable bay sizes and bay depths, we are also requesting variance from the 50 foot Front Yard
Setback to 14 feet (30 feet in some areas). The average front yard green space, created in the Phase II
development, is greater than the City code minimum of 50 feet. This variance will accommodate an f/J
efficient parking area design, which maximizes the landscape area created on this property.
MINIMUM SIDE YARD PARKING SETBACK (pHASE III AND IV)
Due to the truck apron length, we are also requesting a variance for the Side Yard Setback from the I
suggested 20 feet to 10 feet. This green space is more effectively utilized in other portions of these two
phases. The green area percentage for Phases II and III are 50.3% and 53.6%, respectively. I
When reviewing the site plan as a whole, and particularly when considering it in the context of the use
and layout of the undeveloped areas in this portion of the Park, each of these modest variances make I
great design sense. Furthermore, these modifications insure compliance with the City's request to keep
truck areas interior facing and obscured from freeway visibility. Several site sections have been drawn
to illustrate this area and how well it works to promote the City's goals. I
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HKS ASSOCIATES, INC. Page 9 GATEWAY BUSINESS CENTER ..
September 17, 1997 for Welsh Development Co" LLC
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I ALLOWABLE BUILDING FINISH
~ Welsh Development Co. is proposing a first class design, with first class exterior materials, but not
limited to stone, brick and glass as contemplated by the Zoning Ordinance. Furthermore, as is evident in
the architectural plans, that the high quality and good design of the proposed project, with its
I monumental entries, choice of colors, landscaping and architectural glass and brick detail, be accepted.
It is a high quality and economically feasible alternative.
. Welsh Development Company has made genuine effort to work with the design, configuration,
landscaping and other key provisions of the Gateway Business District Special Requirements. In fact, in
addition to the modified but very attractive finishes, design, access and landscaping presented, Welsh
I Development Co. has provided approximately $100,000 in additional exterior upgrades to both the
facade of the building as well as the landscaping and visual presentation to surrounding prop"erties and
streets.
I The proposed building is an unusually attractive building for its product type (office/warehouse). Its
design is reflective of not only the Gateway Business District and its zoning provisions, but also to the
I history, circulation and sight lines of the area.
I ENVIRONMENTAL REVIEW
Environmental Assessment Worksheet (EA W)
.. The proposed Gateway Business Center development surpasses the threshold requirement for
commerciallWarehouse developments as defined by the MN Environmental Review Board, MN Rule
. 4410.4300, subp. 14., to require a mandatory Environmental Assessment Worksheet (EA W). The EA W
publication date was June 2,1997, allowing for a 30-day comment period which ended on July 3,1997.
Based on the findings and conclusions of the EA Wand comments received, a negative decision was
I made by the City (the RGU) regarding the need for a Environmental Impact Statement (EIS).
Ecolol!icallv Sensitive Resources
I The spatial distribution of resources, such as wetlands, on and around the site precludes total avoidance
of impacts by a feasible and prudent project. This project has proposed to acquire contiguous parcels in
order to facilitate the master planning of the site in order to allow as much flexibility as possible in
I accommodating the physical constraints of the area. Through the wetland sequencing and master
planning process, the project has been designed to have minimal impacts on resources while fulfilling
only the project requirements.
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Wetland & Water Resource ImDacts .
-.
A total of 1.62 acres of wetland will be filled by the project. Per regulation by Minnesota's Wetland
Conservation Act and Section 404 of the Clean Water Act, the site design has undergone wetland
sequencing to avoid and minimize impacts, and no filling activities will occur with out concurrent
mitigation. The wetland sequencing reviewed the project design to see if any "prudent and feasible" I
alternatives exist. This review also makes a determination as to whether the project could have
reasonably be done at another site or on adjacent lands to avoid impacts, The proposed project
configuration was determined to be the preferred alternative by minimizing wetland impacts. The I
project is currently involved in the Watershed District and Corps of Engineers permitting processes.
Land Use Mana!!ement Concerns I
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The site is subject to MN DNR's shoreland management district. An additional conservation easement is
proposed along this shoreline. The slopes and elevation along the shoreline are such that they present I
possible erosion and scenic view issues, This part of the site has been avoided to minimize impacts,
Water Oualitv I
The proposed development will increase the storm water runoff due to the increased area of impervious
surfaces. Runoff will be directed to several retention basins and the discharge rates off the site will be I
limited to pre-developed rates. By pre-treating the storm water in ponds before discharge into the City
storm sewer and Round Lake the nutrient and sediment load of the discharge will not adversely affect the
quality of the receiving waters. eI
Traffic. Vehicle-Related Air Emissions. and Traffic Noise ImDacts
The project will add 550 parking spaces, generating an estimated total Average Daily Traffic (ADT) of .
5,106 trips. Estimated maximum peak hour traffic generated is 802 trips on weekdays at 4:30 - 5:30 p.m.
The results of the traffic capacity analyses indicate that the project will have no significant impact on the
signalized intersection at County Highway 96 and Round Lake Road. No mitigative measures need to be I
taken to effectively accommodate trips to and from the proposed project.
Sensitive Resources I
A Cultural Resources Assessment was performed on the site to evaluate any potential archeological,
historical, or architectural resources. Field investigation resulted in the identification of one non- I
significant historic farmstead with two structures still standing, and one prehistoric archaeological site.
The prehistoric site is located on the small peninsula on the southwestern shore of Round Lake. Though
the knoll on the peninsula is likely of natural origin, artifacts relating to the manufacture or maintenance I
of stone tools were observed on the knoll and in a subsurface test to the east. The site appears to be
small, but intact. The survey recommended that the site is significant for its potential to yield
information important to history or prehistory. Due to this recommendation, the site plan has been I
modified so that the archeological site will not be impacted. The Minnesota Historical Society made a
"no properties" finding within the area of potential effect for the project under Section 106 of the
National Historic Preservation Act of 1966. I
HKS ASSOCIATES, INC. Page 1I GATEWAY BUSINESS CENTER --
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I PHASING & TIMING
,. It is anticipated that General Development Plan approvals for Phase II, III and IV of the
Gateway Business Center will be granted following the City Council meeting on July 22, 1997, With
I approval in hand, a permit will be requested to initiate site grading. Architectural construction
documents have already been started,
It is the intent of Welsh Development Company to begin construction of the Phase II and IV site
I developments and the wetland mitigation requirements immediately following approval. This will allow
for building construction to proceed in the spring of 1998. Construction of the proposed Gateway
Boulevard right-of-way and Round Lake Court, as well as the proposed regional storm water
I management system, will run concurrent with the initial development construction this fall. The Phase
III building construction will follow next year. '"
I The Phase IV building is comprised of on 72,360 square feet section, which has been designed to suit the
development needs of the prospective tenant. The 81 spaces of parking provided for the "built to suit
development" meets the users specified requirements. The remaining 30,000 square feet, having a 20%
I office/80% warehouse ratio, requires an additional 48 parking spaces. The balance of parking for Phase
IV is provided by the 37 proof of parking spaces.
I Si!!na!!e
One free-standing, monument sign is proposed for each building phase. City requirements as defined by
Ie the Arden Hills Sign Ordinance will be meet with respect to easements, setback and dimension
restrictions. All of the proposed signs will be a minimum of twenty feet from any properly line.
Placement of the proposed signs were selected for maximize visibility from Gateway C~urt and Round
I Lake Road West.
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DEVELOPMENT DATA I
PLAN'..'i' ~ ....,,::.:...... ~" ..
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Existing Industrial I
Proposed Industrial
North Industrial
East Industrial I
Northeast (Round Lake) Park and Open Space
West 1-35W
South 1-694 and 1-35W I
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ZONING I
Existing G-B, Gateway Business
North G-B, Gateway Business
East G-B, Gateway Business I
West 35W, City of New Brighton
South G-B, Gateway Business
PARCEL AREAS ... . ., .'.........".....',",.,i.:.. I
... ....
Lot I, Block I 348,263.81 sq. ft. (7.99 Acres) ~
Lot 2, Block I 388,928.13 sq. ft, (8.93 Acres)
Lot 3, Block 1 510,672.46 sq. ft. (11.72 Acres)
Round Lake Court R.O.W. 30,847.61 sq. ft. (0.71 Acres) .
Gateway Boulevard R.O.W. 104.551.16 sq. ft. (2.40 Acres)
Total Area 1,383,263.10 sq. ft. (31.75 Acres)
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HKS ASSOCIATES, INC. Page 13 GA TEW A Y BUSINESS CENTER ..
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I LOT COVERAGE
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Lot Area
I Minimum Required 217,800.0 Sq. Ft. 5 Acres
Proposed 348,263.81 Sq. Ft. (100%) 7.99 Acres
Parking Lot Area 68,647.44 Sq. Ft. (19.7%) 1.57 Acres
I Building Area 104,532.0 Sq. Ft. (30.0%) 2.40 Acres
Landscape Area 175,084.00 Sq. Ft. (50.3%) 4.01 Acres
Lot Width
. Minimum Required 100.0 Ft.
Proposed 658.0 Ft.
Lot Depth --
I Minimum Required 130.0 Ft.
Proposed 485.0 Ft.
I LOT 2, BLOCK! '.'", ." '. "., . '.. . i',"",'i",',',' ,," """'''', """'"',,i.,,,",,'., '. ",''''i,,,,,:',','
Lot Area
Minimum Required 217,800.0 Sq. Ft. 5 Acres
Proposed 388,928.13 Sq. Ft. (100%) 8.93 Acres
I Parking Lot Area 65,098.73 Sq. Ft. (16.7%) 1.50 Acres
Building Area 115,575,00 Sq. Ft. (29.7%) 2.65 Acres
Ie Landscape Area 208,254.40 Sq. Ft. (53.6%) 4.78 Acres
Lot Width
Minimum Required 100.0 Ft.
I Proposed 421.0 Ft.
Lot Depth
Minimum Required 130.0 Ft.
Proposed 720.0 Ft.
I
LOT 3, BLOCK 1 " ",.i"'",.'" . . .i',""",','",.", ", , ""'".
Lot Area
n Minimum Required 217,800.0 Sq. Ft. 5 Acres
Proposed 510,672.46 Sq. Ft. (100%) 11.72 Acres
.. Parking Lot Area 109,085.91 Sq. Ft. (21.4%) 2.50 Acres
Lease Area 30,000 Sq. Ft. (5.9%) ,69 Acres
Building Area 72,360 Sq. Ft. (14.1%) 1.65 Acres
. Landscape Area 299,226.55 Sq. Ft. (58,6%) 6.87 Acres
Lot Width
Minimum Required 100.0 Ft.
. Proposed 700.0 Ft.
Lot Depth
Minimum Required 130.0 Ft.
I Proposed 600.0 Ft.
.. HKS ASSOCIATES, INC. Page 14 GA TEW A Y BUSINESS CENTER
September 17, 1997 for Welsh Development Co., LLC
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Lot Area
Minimum Required 871,200.0 Sq. Ft. 20 Acres
Proposed 1,247,864.4 Sq. Ft. (100%) 28.65 Acres
Parking Lot Area 242,832.08 Sq. Ft. (19.46%) 5.58 Acres I
Building Area 322,467.00 Sq. Ft. (25.84%) 7.40 Acres
Landscape Area 682,564.95 Sq. Ft. (54.70%) 15.67 Acres
I
ZONING STANDARDS I
-
Front Yard Setbacks'
Building 50 feet I
Parking 50 feet
Sign 10 feet I
Side Yard Setbacks;/.> ,'" . "." ..... ., .'.' .;.,'T'i ,-
Standard I
Building 20 feet
Parking (from any exterior 20 feet
project line) ~
Right of Way
Building 50 feet
Parking 50 feet
.
Reai'Yard Setbacks......
Building 20 feet
Parking 20 feet I
Building H:eight I
Lakeshore Setback
Building 100 feet I
Parking 50 feet
D rainage.lJ t.i1!fr;Easemellt{ Unl'#.#oth~6fiseiridiq(Jted) ,'. "~i. I
Front 12 feet
BacklRear 6 feet
I
I
HKS ASSOCIATES, INC. Page 15 GA TEW A Y BUSINESS CENTER ..
September 17, 1997 ~""".""m"'G for Welsh Development Co., LLC
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I PARKING
it Individual Phases
PHASE 2
I Required
Office (20%) 20,906.4 sq. ft. 1/250 sq. ft. 83.6 Spaces
I Warehouse (80%) 83,625.6 sq. ft. 111000 sq. ft. 83.6 Spaces
Total 104,532 sq. ft. 167 Spaces
Proposed 168 Spaces
I PHASE 3
Required -.
I Office (20%) 23,115,0 sq. ft. 11250 sq. ft. 92.46 Spaces
Warehouse (80%) 92,460.0 sq. ft. 1/1000 sq, ft. 92.46 Spaces
Total 115,575 sq. ft. 185 Spaces
I Proposed 196 Spaces
PHASE'4
I Required
Office (20%) 20,472 sq. ft. 1/250 sq. ft. 81.8 Spaces
Warehouse (80%) 81,888 sq. ft. 111000 sq. ft. 81.8 Spaces
Total 102,360 sq. ft. 164 Spaces
Ie Proposed 129 Spaces
Proof of Parking 37 Spaces
I Total Development
REQUIRED -;--- " '., ......' '.;,. . . ....---.---. ."H ..>;:':
I Office (20%) 64,493.4 sq. ft. 11250 sq. ft. 257.9 Spaces
Warehouse (80%) 257,973.6 sq. ft. 111000 sq. ft, 257.9 Spaces
Total 322,467.0 sq. ft. . 516 Spaces
I
PROPOSED :---.+.... .... ... ...... ....,;... .... .........,. ...... ......".; ...:;....:.....:.,...,,';..,
I Office (20%) 98.6 Spaces
Warehouse (80%) 394.4 Spaces
Sub-Total 493 Spaces
. Proof of Parking 37 Spaces
Total 530 Spaces
I
I
fI HKS ASSOCIATES, INC. Page 16 GATEWAY BUSINESS CENTER
September 17, 1997 for Welsh Development Co., LLC
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OWNER, DEVELOPER & APPLICANT I
WELSH DEVELOPMENT COMPANY, LLC ..
8200 Normandale Boulevard, Suite 100
Minneapolis, Minnesota 55437-1060 .
(612) 897-7800
Fax: (612) 897-7868
ARCHITECT .
GENESIS ARCHITECTS I
Lynn Sloat, ALA "
V ice President
8200 Normandale Boulevard, Suite 200 I
Minneapolis, Minnesota 55437-1060
(612) 897-7870
Fax: (612) 897-7704 I
SURVEYOR I
EGAN FIELD & NOWAK, INC.
Jack BoIke .-
7415 Wayzata Boulevard
Minneapolis, MN 55426
(612) 546-6837 I
Fax: (612) 546-6839
CIVIL ENGINEER, PLANNER & LANDSCAPE ARCHITECT I
HKS ASSOCIATES, INC. I
821 Raymond A venue, Suite 100
St. Paul, MN 55114
(612) 659-9732 I
Fax: (612) 659-0891
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CITY OF ARDEN HILLS I
MEMORANDUM ..
DATE: September 18, 1997
TO: Brian Fritsinger, City Administrator J I
FROM: Cindy S. Walsh, Parks and Recreation Director (!; I
SUBJECT: Park Dedication for Welsh Phases II, III, and IV
Back~round - I
Because of the subdivision involved in Phases II, III, and IV of the Welsh development, the I
developer is responsible for fulfilling park dedication requirements according to municipal code;
Section 22-9. Public use dedications detailed under this section of the code states that
dedications for commercial projects should not exceed ten percent. I
Calculation of Park Dedication
Because of the need to obtain property for a 10 foot bituminous trail along Round Lake, I have I
calculated the park dedication for all phases together rather than separately. Through park
dedication, I am hoping to obtain 20 feet of property along the north east property line of Phases
III and IV, which abuts the U. S, Fish and Wildlife Service property, and between the pond and tJ
wetland leading to the cul-de-sac. The attached map highlights the proposed trail area. This
would provide some flexibility in designing the trail so that we are able to avoid the larger oak
trees and wetland areas. The proposed trail provides for an access from 14th street (Gateway I
Boulevard) for trail users in the Gateway Business District.
The current fair market value ofthe property, which is 1,226,350 square feet in size, is I
$1,027,100, Welsh Companies, HKS, and I have calculated the property required to complete
the trail easement as 41,365.65, At a price of$,8375 per square foot, the trail property is valued I
at $34,643.73.
Value of Welsh property $1,027,100 I
Maximum Commercial Park Dedication Requirement XI0%
$ 102,710
Maximum Park Dedication Value in Cash $ 102,710 I
minus the value of land for trail construction $ 34,643.73
$ 68,066.27 I
Thus $68,066.27 is the additional cash in lieu of land remaining if Council were to require a
dedication in the amount of 10%, Another option for Welsh to fulfill the 10% park dedication I
requirement is to construct a portion of the trail equal to the $68,066.27 value remaining, If the
City Council wishes to pursue the trail construction as a partial fulfillment of park dedication, I
would work with Welsh Companies to determine the distance of trail that could be constructed, --
I
I' ~1
I Welsh Companies is proposing to use their required Conservation and Wetland easements to
it fulfill the City's Park Dedication requirement. The trail could then be constructed within these
easements. I do not concur with this proposal. Aside from the 10 feet of trail that will be
constructed, either within the proposed trail easement or the V,S, Fish and Wildlife property, the
City parks and trail system would not benefit from the conservation and wetland easements.
I These areas are required by the developer in addition to the park dedication requirement.
Recommendation
I I am recommending that Welsh be required to dedicate 20 feet for trail construction as indicated
by the attached map. In addition, if Council chooses to have the developer fulfill the 10%
I dedication, a fee of $68,066.27 or trail construction of that value would complete the park
dedication requirement.
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TRANSPORTATION ENGINEERS AND PLANNERS
7301 OHMS VoNE, SUITE 500' eOINA. MN 554391 (612) 832.9858 , F};)( (612) 832-9564 I
FACSIMILE TRANSMITTAL ..
DATE: 1J}7 /'17 JOB NO. "- 5$ I
PLEASE DELIVER THE FOllOWING PAGElS) TO: I
NAME: K,....~" R,,,,,,,,,,IJ _. I
ADDRESS: Go/ o~ A,.Jtr. I~.-/b
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FAX NO.: qJ,3 -733'1 I
LIST OF ENCLOSURES:
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TRANSPORTATION ENGINEERS AND PLANNERS
~ 7301 OHMS LANE. SUITE 500/ EDINA. MN 55439/ (612) 832-9858/ FAX (612) 832-9564
I August 5, 1997 REFER TO FILE; 96-53
I MEMORANDUM
I TO: Dick Zehring, Welsh Development Company
Kevin Ringwald, City of Arden Hills --
~I
FROM: James A. Benshoofand Peter A, Hultgren ..,oJ( 'J/
I RE: Ability of Roadway System to Accommodate Occupancy of Gateway
Business Center Before Completion of Improvements on Round Lake
I Road at Highway 96
PURPOSE
'e The purpose of this memorandum is to determine the amount of space in Ihe Gateway
Business Center that could be occupied without exceeding appropriate delay levels for
I Round Lake Road at its existing intersection with Highway 96. It is important to note that
further occupancy beyond the threshold level identified in the preceding step could occur
I if police officer traffic control is provided at the intersection during the time periods when
excessive delays otherwise would be experienced,
I EXISTING CONDmONS
I Highway 96 has two lanes of traffic in each direction at the Round Lake Road
intersection. Round Lake Road is stop controlled and has no pavement markings. The
pavement width on the approach to Highway 96 is wide enough so that two northbound
I lanes of traffic an: fonned, one for left turns and one for right turns, Road improvements
to Highway 96 are currently being constrocted on a segment in Shoreview. This
construction begins at the west leg approach to the Lexington Avenue intersection and
I extends eastward. To account for the effects of this construction, we decided to collect
weekday p,m. peak hour turn movements at the Round Lake Road and Highway 96
intersection rather Ihan rely upon the l1Jm movements we collected one year ago prior 10
I constIUcliolj. These turn movements are shown in Figure 1.
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COUNTY HIGHWAY 96 I
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( 422 I
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DATA COLLECTED JULY 23, 1997 I
NOT TO SCALE
FIGURE 1 I
WELSH DEVELOPMENT ABiliTY OF ROADWAY
COMPANY SYSTEM TO ACCOMMODATE EXISTING WEEKDAY I
GATEWAY BUSINESS P.M, PEAK HOUR TURN
W BENSHOOF & ASSOCIATES. INC. CENTER OCCUPANCY MOVEMENTS --
lIWrS.OtFJ.TlOflEJfGJ'UiERUNOPWcNER3
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Messrs, Zehring and Ringwald .3- Augusl S, 1997
I
METHODOLOGY
t-
To determine the amount of development occupancy which the current traffic system can
accommodate without special traffic management measures, a five step procedure has
I been followed:
1. Data collection. Detennine Ihe currenl delay experienced by motorists at the
I Round Lake Road and Highway 96 interseclion during Ihe weekday p,m. peak
hour. Collect current p"m. peak hour turn movements simultaneously at this
intersection,
I 2, Software ealibration. Calibrale the Highway Capacity Software (HCS) computer
model so that Ihe delay estimates computed using the current turn movemen15 are
I similar to the observed delay results of step },
3, Establish a delay threshold. Select a maximum tolerable delay for motorists at
I Ihe stop controlled inlersection of Round Lake Road and Highway 96,
4, Determine traffic system limitations. Using the RCS as calibraled in step 2,
I estimate the traffic delay resulting from additional traffic, The amounl of
additional traffic that can be accommodated on the currenl traffic system is limited
by the delay threshold of step 3.
'e 5, Determine occupancy limitations. The amount of occupied floor space that the
current traffic system can accommodate is determined by the traffic limitations of
I step 4 and the proposed development land use trip generation characteristics.
I ANALYSIS .
The critical movement at the Round Lake Road and Highway 96 intersection is the
I northbound left turn. This movement must yield right of way to cross traffic and
westbound left turns. Our staff observed the delay experienced by the northbound left
turn motorists while collecting Ihe turn movement data of Figure 1 on Wednesday, July
I 23. The average delay for northbound left turning motorists was observed 10 be 20.6
seconds during the peak hour of 4:30-5:30 p,m. The turn movements of Figure 1 were
then entered inlo the RCS, The parameters which detennine intersection delay were
I adjusted until Ihe RCS estimale of Ihe northbound left turn delay closely approximated
Ihat observed.
I There are many signalized intersections in the Twin Cities metropolitan area that run on
signal cycle lengths of 120 to 180 seconds during the p.m, peak hour, It is not uncommon
for a motorist on the minor street to encounter a delay of about 90 seconds at such
I signalized intersections. This level of delay will likely be experienced on Round Lake
Road after completion of the traffic signal illStallation at Highway 96, Therefore, we
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Messrs. Zehring and Ringwald -4- August 5, 1997
I
established 90 seconds as the maximum tolerable delay for northbound left turning --
motorists at the Round Lake Road intersection.
Having established 90 seconds as the delay threshold, the northbound left turn lraffic
volume was increased in the HCS unlil the e$limalCd delay was very nearly 90 seconds. I
Several iterations were necessary to determine the maximum volumes that could be added
to the inbound and outbound turn movements and still maintain a maximum delay of 90
seconds for the northbound left turn. Assigning the inbound and outbound trips in I
proportion to the observed turn movements results in the peak hour turn movemenls
shown in Figure 2. These turn movements representlhe maximum turn movemenlS that
result in a threshold delay of 90 seconds at the current stop conlrolled intersection of I
Round Lake Road and Highway 96. --
The final step was to convert the additional trips which resulled in the maximum Ihreshold I
delay into the amount of occupied floor area which will generate this number of trips, The
proposed development floor area will be divided into 20 percenl office space and 80
percent warehouse space, The lable below shows the forecast number of weekday p.m, I
peak hour trips generated by 200,000 sq, ft. of development when fully occupied.
Table of Weekday P,M. Peak Hour Trip Generationl I
Trips Inbound Outbound ~
Land Use Size (sa. ft.) Generated Trips Trips
Office 40,000 95 16 79
Warehouse 160 000 118 41 77 I
Total 200,000 213 57 156
This trip generation scenario results in the maximum turn movements of Figure 2. Thus, I
we conclude that the current stop controlled intersection can accommodate the I
development and full occupancy of200,OOO sq. ft, ofche Gateway Business Center,
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I The number of trips generated tor each land use (and the number inbound and outbound) are calculated I
ftom the rates published in Trip Genera/ion, 5th Edilion,lnstitule of Transportation Engineers, 1991. --
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WELSH DEVELOPMENT ABILITY OF ROADWAY
COMPANY SYSTEM TO ACCOMMODATe MAXIMUM WEEKDAY P.M,
I PEAK HOUR TURN
GATeWAY BUSINESS MOVEMENTS ACCOMODATED
W BENSHOOF & ASSOCIAlCS,/NC. CENTER OCCUPANCY BY EXIsnNG STOP
tI' TRANII'O_TATIORiIifOIJilU,.SAHO,t.uNEA8 .A.. CONTROL
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Mes-srs, Zehring and Ringwald .6- August 5, 1997
CONCLUSIONS 7(,Q I
We have demonstraled that the current stop controlled intersection can acconunodate the -.
increased Iraffic thaI would result from the occupancy of 200,000 sq, ft, of the Gateway
Business Center, We recommend that the City pennit the occupancy of 200,000 sq, ft, of I
the Gateway Business Center with no conditions linking occupancy 10 roadway
improvements" After 200,000 sq. ft. of space is occupied, it would be important to
determine whether Welsh desires 10 accomplish further occupancy before Ihe new I
intersection of Highway 96 and Round Lake Road, including its traffic signal conlrol, is
operational, If this is the case, another delay study should be perfonned at the Round
Lake Road and Highway 96 intersection. This study would detennine the extent to which I
further developmem occupancy could or could not be accommodated without roadway
improvements, If this monitoring reveals that further occupancy would result in-delays
exceeding Ihe 90 second threshold Iimil, Ihen police officer traffic control could be used to I
accommodate this increased occupancy until the roadway improvements have been
completed.
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TOTAL P. 07 --
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BENSHOOF & ASSOCIATES, INC.
I TRANSPORTATION ENGINEERS AND PLANNERS ""
etto FACSIMILE TRANSMITTAL
I DATE: All" N .' 19'7 JOB NO. H. - S3
I PLEASE DeLIVER THE FOLLOWING PAGElS) TO:
I NAME: Ktv;" Ki"'j.^"/J - -
I ADDRESS: C:l-y t ,4..Je.- li,-(toS
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I FAX NO.: '33 -7t39
I LIST OF ENCLOSURES:
.4 I(.~V' ",rJ..L D'" c:C....""h.J.s n",..J''''j . U-.J M..,t- r'o~J
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I THIS TRANSMITTAL IS BEING SENT BY: 'filer I!....I{-v(..,
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PLEASE CALL 612/832-9858.
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BENSHOOF & ASSOCIATES, INC, qll'u I
TRANSPORTATION ENGINEERS AND PLANNERS 7301 OHMS LANE, SUITE 500 f EDINA, MN 55439 f (612) 832-9858 f FAX (612) 832-9564 --
August 14, 1997 REFER TO FI~E: 96-53 I
Mr. Kevin Ringwald I
City of Arden Hills
1450 West Highway 96 I
Arden Hills, MN 55014
--
RE: Sequencing oflmprovements 10 Round Lake Road I
.
Dear Mr. Ringwald:
In our telephone conversation of August 5, 1997, you requested that we examine the I
sequence of planned improvements for Round Lake Road relative to the Gateway
Business Center development, and offer our comments. We have completed a basic, brief I
review of the proposed improvement sequence,
Our understanding of the sequence thaI the proposed improvements to Round Lake Road ~
will follow is;
I. Improvements will be made to 14th Street to provide access to the Gateway I
Business Center development.
2" The intersection of Round Lake Road and County Highway 96 will be relocated I
easlward aboul 500 feel, At the time of this relocation, the inlersection will be
constructed to provide two approaching northbound lanes and two southbound
departing lanes on Round Lake Road, The four lanes will transition to Iwo lanes I
to malch the existing roadway width of Round Lake Road at a point south of the
"5" -curve that will connect the existing north-south alignment of Round Lake
Road with the new intersection. A temporary traffic signal will be installed at the I
time of this intersection relocation and construction.
3. Round Lake Road will be widened from its existing two lanes to four lanes south I
of the "S>>-curve to 13th Street nand when future development beyond the
Gateway Business Center requires this widening,
4" County Highway 96 will be realigned approximately 50 feet north of its presenl I
alignment. Round Lake Road will be extended to reach the new alignment and the
intersection area will be reconstructed. A permanent traffic signal will be installed, I
..
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I ,'.......... ........ -"""-,, '-'............. c.c.'1~......ur.- '"" "..............,-_. ....,...- ....--- ~'-',-""" '.......... .....--
1''1(0 Mr. Kevin Ringwald -2. August 14, 1997
We understand that you are anticipating the completion of the first two sleps of the
~ improvement sequence prior to the occupancy of the four phases of the Gateway Business
Center. We concur with this b!lsic phasing sequence because it will accommodate the
projecled traffic volumes. In this context, we !IIso !Igree tht it is !Ippropriate for Round
I Lake Road to change from four lanes to two lanes south of the "S" -curve, provided there
is an appropriate transition from two southbound lanes to one southbound lane between
these sections of Round Lake Road, Based on the current intersection volumes and Ihe
I forecast trip generation I for the Gateway Business Center, the proposed improvements of
steps one and twO will enable Round Lake Road to adequately accommodate the amount
of traffic anticipated when full occupancy is achieved. We estimate that the p.m. peak
I hour volume on Round Lake Ro!ld will be 737 vehicles per hour and that the weekday
average daily traffic volume will be 5,128 vehieles per day. These volumes can be
effectively accommodated by the two lanes on Round Lake Road south of the "S" -curve
I and at Ihe improved south leg of the County Highway 96 intersection,
If you have any questions, please call me at 832-9858. , .
I
I Sincerely,
BENSHOOF & ASSOCIATES, INC.
Ie 4c- ;( .14-
I Peter A. Hu!tgTen
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I I Trip generation details were provided in a letter 10 Kevin Rillgwald dated June 23. 1997.
rf'
TOTAL P. 03
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BALE ANDERSON POLSTEINFxH~:J:E I\r 0 I~ 1
I
PEARSON & HILL, L TD, ,~US 0 8 1997
ATTORNEYS AT LAW --
607 MARQUETTE AVENUE. SUITE 400 0;"1 ;-.;iynpl H'llS
MINNEAPOLIS, MINNESOTA ll402,1796 ' - ~-'. ..",'1. _., h
TELEPHONE 612-H2,8063
TELEFAX 612-332-2089 I
WILLIAM G. DALE PAUL E. QVERSO:-':
MARK S, ANDERSON RYA:-': E. LA:-':CSEV
NElL POLSTEIN I
KENNETH W', PEARSON
PETER G, HfLL
August 7, 1997 I
--
City Council I
City of Arden Hills .'
1450 West Highway 96 VIA FACSIMILE AND U. S. MAIL
Arden Hills, MN 55112-5794 #633-7839 I
Re: FORMAL OBJECTION
Gateway Business District (GBD) I
Planning Case #97-06
Our File No. 1.3410
Ladies and Gentlemen: ~
On behalf of Arden Towers, Inc., this letter serves as a formal objection to the I
proposed easement access to the Vaughan property in the Plan Unit Development Master
Plan and Final Plan (PUD Plan) submitted for review by Welsh Development Company
according to Planning Case #97-06, The current proposed PUD Plan denies the Vaughan I
property reasonable access for commercial-industrial development use and threatens
access and utility service. I
At the July 28, 1997 hearing, the City Council voted to approve the proposed"
, '
improvements to Fourteenth Street NE without providing a sixty foot right-of-way (60' I
R,Q.W.) to the Vaughan property. The City Council based its vote on the belief that Dan
Vaughan had not contacted 'he City about potential development on the Vaughan
property. I was recently informed that such belief is inaccurate. I
Approximately one year ago, Dan Vaughan met with Mr, Brian Fritsinger, then
Arden Hills Community Development Director, at the Arden Hills City Hall and I
discussed general and specific development proposals for the Vaughan property. This
important fact coupled with other facts and concerns addressed at the July 28, 1997
hearing requires the City Council to re-examine Arden Towers, Inc. 's request for I
reasonable access to the Vaughan property outlined in the July 28, 1997 letter as follows:
--
I
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I CITY OF ARDEN HILLS
it MEMORANDUM
DATE: September 19, 1997
I TO: M.,.. ~d C;ty Co.". @
I FROM: Brian Fritsinger, City Administrato (3 f
SUBJECT: Welsh Purchase and Sale Agreement
I Requested Action
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I The City Council is asked to consider the approval of the Purchase and Sale Agreement between
the City of Arden Hills and Welsh Development Company, LLC.
I Backl:round
The City Council has been involved with negotiations on the development of the Gateway
Business District (GBD) with Welsh Development Company, LLC for the last two years. The
I developer has been in the process of obtaining the rights of ownership to several parcels of
property within the GBD.
Ie The Planning Commission and City Council previously reviewed Planning Cases #97-06 and
#97-17, which addressed the acquisition and sale of the property in question in August. The City
Council found that the proposed sale of City property to facilitate the proposed development in
I compliance with the City's Comprehensive Plan, This action was required by Section 20-24 (a),
(2), of the City Code,
I The subject property included in the attached Purchase and Sale Agreement includes several
pieces of property. The largest piece includes the former Kern Milling rendering plant. The
I other pieces of property include those properties which are being considered for acquisition from
Naegele Outdoor Advertising, Inc,
I What is the Purchase Price?
The purchase price for the property is proposed to be $408,640. This would include $323,385 at
the time of closing. The remaining $85,255 will be forgiven as a result of consideration for
I wetland mitigation being undertaken by the developer. The developer has indicated that he
would like to receive reimbursement for several costs which, if approved by the City Council,
affect the final sales price. These items were previously identified for the City Council and
I include:
. Removal ofKem Milling foundation- $61,405
I . Removal of Gas Piping - 4,060
. Removal of Water Main Piping - 8,210
..
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1
Memorandum, Welsh Purchase and Sale Agreement I
Page Two - September 19, 1997
Why is the City Being Requested to Off-Set These Additional Costs? ..
The City Council elected, at the time it demolished the Kem Milling plant, to leave the
foundation, It did this because it did not want to incur the additional expense, as the City did not I
know what type of future development would occur on the site. The City Council must now
decide whether or not it believes any of the three identified items are to be considered part of the
site development costs, and if so, whether the City should pay for them, I
Are There any Other Costs Which Would Affect the Sales Price?
The City is still waiting for final confirmation on the wetland mitigation issues, The fmal I
purchase price may also be adjusted once these numbers are finalized. .
When is the Closing Proposed to be? I
The closing is proposed to be on or before October 15, 1997.
What Other Actions are Related to this Purchase and Sale Agreement? I
The approval of this agreement is directly related to several other actions being considered by the
City of Arden Hills and the Arden Hills Economic Development Authority. Those include: I
. Approval of Planning Case #97-06, Planned Unit Development (PUD) Final
Plans, and Final Plat tJ
. Sale and Purchase Agreement, CitylNaegele Outdoor Advertising, Inc,
. Development Agreement
. Award of Construction Contract for Fourteenth Street Improvements I
. Authorization and Sale of Tax Increment Financing (TIF) Bonds
What is the Status ofthe Naegele Purchase Agreement? I
The attorneys for Naegele have not yet completed their review of the Purchase Agreement, and
as a result, the City has not formally come to terms on the acquisition of the strips of property to
be included in this sale with Welsh. Naegele representatives have assured us that the City will I
receive the Purchase Agreement early next week so it can be reviewed at the September 29, 1997
City Council meeting,
Recommendation I
The City Council is asked to approve the Purchase and Sale Agreement for the sale of property to I
Welsh Development Company, LLC substantially in the form presented subject to nonsubstantial
changes being approved by the City's Development Attorney and City Administrator. This
would also authorize the Mayor and City Administrator to execute all necessary documentation, I
This approval is subject to the following items:
. The approval and execution of the Sale and Purchase Agreement with Naegele I
Outdoor Advertising, Inc,
. The approval and execution of the Development Agreement.
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I EXHIBIT A-I
it PARCEL I:
Lots 19 and 20, Block 1; Lots 21 and 22, Block 2; Block 4; that part of Block 3 adjoining Block
I 4 and adjoining Lots 21 and 22 in Block 2 which is included between the extended
Northwesterly line of said Block 4 and the extended Southeasterly line of Lot 22 and Block 5
adjoining Lots 19 and 20, Block 1 which is included between the extension of the Southeasterly
I line of Lot 20 and the Northwesterly line of Lot 19; all in Butcher's Allotment No.1 of Grounds
in Section 21, Township 30 North, Range 23 West, Ramsey County, Minnesota,
I Abstract Property
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I PARCEL II:
I Lots 17 and 18, Block 1; that part of Block 5 lying Northerly of Lots 17 and 18; all in Butcher's
Allotment No.1 of Grounds in Section 21, Township 30 North, Range 23 West, Ramsey County,
I Minnesota.
Registered Property
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I M:\USERSISHEILAIADMIN\PLANNINGlGBDlPURCHASE,MEM
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PARCEL NOr:: A - . I
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That part of Lot 8, Block 1, Butchers Allotment No, 1 of Grounds in Section 21, Town 30N ..
Range 23W Ramsey Co. Minn,. according to said plat on file and record in the office of the
County Recorder, Ramsey County. Minnesota, lying Easterly ofa line drawn parallel with and
distant 30,00 feet Easterly of the following described line:
Beginning at a point on the Northerly line of Minnesota Transfer Railway Company right-of-way I
distant 35,00 feet Westerly of the Southeast comer of said LOI8; thence Northerly and parallel
to the .E:merly line of said Lot 8 to the Northerly line of Block 5 in said plat and there I
terminating.
PARCEL No,/B "-. I
Hm 5.-r-<<:r (..j~.,z.t.,..)
That par: "fBlock 5, Butchers Allotment No, 1 of Grounds in Section 21, Town 30N Range 23W I
Ramsey Co. Minn., according to said plat on file and record in the office of the County Recorder,
Ramsey County, Minnesota, lying Westerly of the Easterly line of the Westerly one half of Lot
12, Bloci.: I, in said pial and lying Easterly of a line drawn parallel with and distant 30.00 feet I
Easterly -:>f the following described line:
Beginning at a point on the Northerly line of Minnesota Transfer Railway Company right-of-way I
distant 35.00 feet Westerly of the Southeast corner of Lot 8, Block I, BUlchers Allonnent No.1
of Grounds in Section 21, Town 30N, Range 23W, Ramsey Co. Minn., according 10 said plat on
file and ,.)f record in the office of the County Recorder, Ramsey County, Minnesota; thence ~
Northerly and parallel to the Easterly line of said Lot 8 to the Northerly line of said Block 5 and
Ihere terminating.
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PARCEL NO. j A
1b.~9 ~~ (g,r:,...:) I
A 60,00 foot strip of land over that part of Lot 8, Block 1 and Block 5, all in Butchers Allotment
No, 1 of Grounds in Section 21, Town 30N Range 23W Ramsey Co, Minn., according to said
plat on me and record in the office of the County Recorder, Ramsey County, Minnesota, the I
centerli/:,: of which is described as follows:
Beginnin.i: at a point on the Northerly line of Minnesota Transfer Railway Company right-of-way I
distant 35.00 feel Westerly of the Southeasl comer of said Lot 8; thence Northerly and parallel
to the Easterly line of said Lot 8 to the Northerly line of said Block 5 and there lerrninaring.
Said strip of land is to extend by itS full width from the South line of said 1.01 8 to said North line I
of Block 5.
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September 19.1997 -.
PURCHASE AND SAI.F. AGRF.F.MF.NT I
TIllS AGREEMENT is made as ofthc _day ofSeptcmbcr, 1997, by and between I
the City of Arden Hills, a statutory city under the laws of the State of Minnesota, whose principal
business address is 1450 West Highway 96, Arden Hills, Minnesota 55112 ("Seller''), and Welsh
Development Company, LLC, a Minnesota limited liability company, whose principal business I
address is 8200 Nonnandalc Boulevard, Suite 200, Bloomington, Minnesota 55437-1060
(''Purchaser'').
For and in consideration of the mutual covenants hereinafter contained, Seller and I
Purchaser agree as follows:
l. PROPERTY. For the price and upon and subject to the tenns and I
conditions hereinafter set forth, Seller agrees to sell and convey to Purchaser and Purchaser
agrees to purchase from Seller the following described property (collectively, the "Property''): I
(I) The parcels of land in the City of Arden Hills, Ramsey County,
Minnesota, and legally descn'bed in Exhibit A attached hereto and made a part hereof (the ..
"Land");
(2) All buildings, structures and all other improvements, if any, located on the I
Land (the Improvements");
(3) All right, title and interest of Seller in and to all private streets, roads, I
avenues, alleys and passageways, opened or proposed, on the Land.; and
(4) All and singular the estates, rights, privileges, easements, and I
appurtenances belonging or in any way appertaining to the Land and the Improvements.
2. PURCHASE PRICE. I
The Purchase Price for the Property shall be Four Hundred and Eight Thousand Six
Hundred and Forty Dollars ($408,640.00) (the "Purchase Price") and shall be payable as follows: I
(1) At "Closing" (as hereinafter defined), the Purchaser shall pay to the Seller
by cash or certified check made payable to the Seller Three Hundred Twenty Three I
Thousand Three HlIDdred Eighty Five DoHan ($323,385.00),
(2) If certain construction which is consistent with the pr::nding approval by I
the Seller in Planning Case 97-06, as shown in such planning documents, takes place as
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it provided in this paragraph, then all or a portion of the remaining portion (the
I "R "O'Io;n;ng Portion") of the Purchase Price will be forgiven by the Seller, as provided
herein. The Remaining Portion of the Purchase Price is Eighty Five Thousand Two
Hundred Fifty Five Dollars ($85,255.00). If the Purehaser commences construction of a
I phase of the improvements described in Planning Case 97-06 by April 1, 1998, completes
construction of at least 100,000 square feet of improvements by December 31, 1998,
completes construction of at least 170,000 aggregate square feet of improvements by
I August 30, 1999, and completes construction of at least 270,000 aggregate square feet of
improvements by December 30, 1999, then the Remaining Portion of the Purchase Price
shall be forgiven in whole. If the Purchaser shall fail to commence or complete the
I improvements, or any portion thereof, consistent with the pending approval in Planning
Case No, 97-06 at the times stated in the preceding sentence, then all or a portion of the
Remaining Portion may, at the option of the Seller, be declared due and payable. The
I amount of the Remaining Portion that shall be due in such event shaIl be determined by
multiplying the RP.1'I'loining Portion by a fraction, the numerator of which is the total
square footage of improvements the construction of which has been completed and for
I which a certificate of occupancy has been issued by the Seller as of the date on which the
Seller is entitled to declare the Remaining Portion due, and the denominator of which is
270,000. In such event, the ROimlo;ning Portion, or part thereof, will be due and payable
Ie by the Purchaser by cash or certified check on within ninety (90) days after demand by
the Seller; provided that if the Purchaser has Dot paid the Remaining Portion to the Seller
by a date thirty (30) days after demand by Seller, interest shall accrue on the unpaid
I Remaining Portion from such date until paid at the mte of interest equal to two (2)
percentage points over the Prime Rate in effect as of such date as announced by NOIWest
Bank of Minneapolis.
I The basis for the reduction in the Purchase Price as described in 2(2) above is that the
Purchaser has agreed to assume certain costs of wetland mitigation necessitated by the
I construction by the Seller or the Arden Hills Economic Development Authority of a new road to
serve Phases n, ill and IV, The reduction in the Purehase Price is intended to partially"
compensate the Purchaser for the value of such costs of wetland mitigation asS\l!lled by. !he
I Purchas~ .
3. SURVEY.
I The Purchaser has caused a certified AI. TAlACSM survey of the Property ("Survey") to
be prepared by a surveyor licensed by the State of Minnesota. The Survey has been certified to
I Purchaser and the Title Company and shows (a) the location by courses and distances of the
Property with all boundaries staked, (b) all easements on or appurtenant to the Property, (c) all
encroachments, the extent thereof and establi~hed building lines, (d) the location of all means of
I ingress and egress to and from the Property and to and from all abutting public streets, (e) the
size and location of all Improvements, if any, on the Property, (f) the topographical features of
.- the Property at one foot contour intervals (g) all applicable setback lines. (h) the area of the
Property, and (i) such other pertinent facts as have been requested by Purchaser. The Survey is
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accompanied by a current surveyor's certificate in a fonn reasonably acceptable to Purchaser and
the Title Company, Purchaser shall be responsible for the cost of the Survey. I
4. TITLE,
(A) Within twenty (20) days after the date hereof, Purchaser shall obtain from the I
Title Company a commitment (the "Title Commitment") for a standard ALTA Fonn B owner's
title insurance policy (except that the standard exceptions relating to survey matters, rights of I
parties in possession, mechanic's liens, easements or claims of easements not of recont, and taxes
and assessments not shown by the public records, shall be eliminated) (the "Title Policy'') to be
issued upon Closing by the Title Company in the amount of the Purchase Price, insuring that as I
of the recording of the "Deed" (as hereinafter defined) good and marketable fee simple title to the.
Property is vested in Purchaser subject only to the "Permitted Exceptions" (as hereinafter
defined). The Title Commitment shall identify the Land by the legal description set forth on the I
Survey. Seller shall be responsible for the costs, if any, of the Title Commitment, and Purchaser
shall be responsible for the cost of the Title Policy,
(B) Purchaser shall have a period of thirty (30) days after receipt of the Title I
Commitment (including copies of all instruments descn'bed therein as exceptions to title) and the
Survey (the "Title Review Period''), to notify Seller of any objections to or defects in the ~
condition of title; PROVIDED, HOWEVER, that title exceptions pertaining to liens or
encumbrances of a definite or ascertainable amount that may be removed by the payment of
money ("Liens") at Closing shall not be deemed to make the Title Commitment unacceptable and I
Seller, at Seller's option, may use the Purchase Price to satisfy such Liens. Seller shall provide
written notice to Purchaser of the COmmencement of the Title Review Period. Those exceptions
to title which are disclosed by the Title Commitment (other than Liens) and are not objected to I
by Purchaser shall be deemed to be the "Permitted Exceptions." If such objection notice is not
delivered to Seller within the Title Review Period. the condition of Seller's title as disclosed by
the Title Commitment shall be deemed approved by Purchaser, and Purchaser shall take title I
subject to the exceptions set forth therein without any reduction in the Purchase Price except for
any Liens. If an objection notice is timely delivered, Seller shall use reasonable efforts to cure or
remove all such objections prior to the "Closing Date" (as hereinafter defined). If any objection I
has not been cured or removed prior to the Closing Date, Purchaser. at its election, shall either (i)
accept the Title Commitment as it is, subject to the righl to deduct the amount of all Liens from
the Purchase Price, except for liens created by Purchaser pursuant to its activities under this I
Agreement; (ii) terminate this Agreement; or (ill) extend the Closing Date for a period that
Purchaser and Seller deem reasonable for curing such objections, but not to exceed ninety (90)
days, If all objections to title are not cured within such extended period. if any. Purchaser shall I
then elect either (i) or (ii) above. Upon any such tm:nination, each party shall be released from
all duties or obligations contained herein (except for any liabilities accruing prior to such
termination) and in such event the parties shall execute an agreement in recordable form I
canceling this Agreement.
5. DEVELOPMENT AGREEMENT. -.
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Seller sha11 have the righl to review and approve Purchasers plans and specifications for
I the construction of the buildings and other improvements to be located on the Property in
accordance with that certain Development Agreement dated as of September -' 1997, (the
"Contract") between the Purchaser and the Arden Hills Economic Development Authority (the
I "Authority"). Purchaser covenants and agrees to comply with the provisions of the Contract
relative to the development of the Land.
I 6, WETLANDS MITIGATION.
As further eonsideration for the Seller's conveyance ofthe Property to the Purchaser, the
I Purchaser agrees that the Purchaser will be responsible for certain wetlands mitigation that will
be necessary by virtue of the construction of the Public Improvements to be constructed by the
Authority pursuant to the Contract as specifically set forth in Section 4,2 of the Contract,
I 7. Use.
Purchaser agrees that the Property sba11 be used for the construction and operation of the
I improvements described in the Contract, subject to the terms and limitations set forth in the
Cont\1lct and as described in the documents approved by the Seller in granting PUD approval to
the Purchaser's development.
Ie 8. REPRESENTATIONS AND WARRANTIES.
I (A) Seller represents and warranlS to Purchaser as follows, which representations and
warranties sha11 be deemed made by Seller as of the date hereof and as of the Closing Date, sba11
survive the Closing, and but for such representations and waaanties, Purchaser would not
I exe<:llte this Agreement:
(1) There iIfe no other parties in poS$cssion of any portion of the Property.
I (2) There are no pending or, to the best of Sellers knowledge, threatened
actions, suits, condemnation or other proceedings before or by any judicial body or any
I governmental authority, against or affecting Seller or the Property.
(3) Seller has the present full authority and power to execute this Agreement
I and to close the sale of the Property.
(4) (a) (i) Neither the Property nor any portion of the Project has ever been
I used by Seller to generate, manufacture, refine, transport, treat, store, handle, or dispose
of (collectively, "Use") any "Hazardous Material" (as hereinafter defined), (ii) Seller has
I no actual knowledge of the use of any Hazardous Material on, under, or in the Property or
any portion of the Project, except as may be stated in the environmental assessment
referenced in Section 10, (iii) Seller has no actual knowledge of any actions, claims, suits,
.. or proceedings pending or threatened against Seller or the Property or any portion of the
Project which relate to any violation or alleged violation of any "Environmental Laws"
(as hereinafter defined); and (iv) so long as Seller retains an interest in the project, Seller
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shall (A) not permit any Hazardous Material to be Used or otherwise released on, under,
or in the land, (8) comply, and shall cause all other persons to comply, with all I
Environmental Laws applicable to the project and (C) notifY Purchaser immediately and
in writing of any proceedings, actions, suits, or claims pending or tbrealened against
Seller relating to any 'riolation or alleged violation of any Environmental Laws with I
respect to the same.
(b) Seller shall indemnify and hold harmless Purchaser from and against all damages, I
loss, costs, actions, causes of actions and reasonable attomeys, fees and expenses arisi!1g out of a
breach of the foregoing wammties and representations.
(c) As used herein, I
(i) "Hazardous Material" shall be defined as any substance, waste, or I
material now or hereafter determined by any Governmental Authority to pose a
risk of injury to health. safety and/or property, including but not limited to (A) all
materials, wastes and substances now or hereafter designated as hazardous or I
toxic by the United States Environmental Protection Agency, the United States
Department of Labar, the United States Departmenl of Transportation or any other
Governmental Authority, (8) all materials, wastes and substances now or eI
hereafter designated or defined as hazardous, extremely hazardous or toxic
pursuant to the Comprehensive Environmental Response, Compensation and
Liability Act (42 U.S.C. 9601, et seq.), the Resource Conservation and Recovery I
Act (42 U.S,C. 6901 et seq.), or any other Environmental Laws, and (C) asbestos,
urea formaldehyde, polychlorinated biphenyls, and petroleum products.
(ii) "Environmental Laws" shall be defined as all present or future I
laws, statutes, treaties, rules, regulations, orders, ordinances, permits, licenses,
judgments or decrees enacted by any Governmental Authority to regulate any I
materials, wastes and/or substances in the environment.
(5) Seller possesses good and marketable fee simple title to the Property (or is I
a party to a valid and binding contracl to acquire such title and will do so on or before
Closing and sba1l1l:ansfer title to the same to Purchaser by speeial wammty deed (the
"Deed") dated as ofthe Closing, subject only to the Permitted Exceptions. I
(6) The Land is assessed as a separate tax parcel by the taxing authorities
having jurisdiction thereof. I
(7) Seller is not a "foreign corporation, "foreign partnership" or "foreign
estate" as those tenns are defined in the Internal Revenue Code of 1986, as amended, and I
that Seller will furnish to Purchaser a so-called "FIRPT A" certificate verifYing the
foregoing. -.
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(B) Purchaser represents and warrants to Seller thaI Purchaser has the full authority
I and power to execute this Agreement and to close the sale of the Property, which representation
and warranty shall be deemed made by Purchaser to Seller as of the Final Execution Date and
again as of the Closing Date, shall survive the Closing and, but for such representation and
I warranty, Seller would not execute this Agreement.
9. RISK OF LOSS; CONDEMNATION.
I (A) Seller shall bear the risk of loss until Closing. All hazard insuranSe, if any,
maintained by or on behalf of Seller in respect to the Property shall be canceled as of the Closing
I Date.
(B) If, prior to the Closing Date, all or any part oCthe Property shall be condemned by
I governmental or other lawful authority, Purchaser shall have the option of either (i) completing
this transaction, in which event (a) there shaH be no reduction of the Purchase Price, (b) Seller
shall have no duty to repair or restore, (c) Sener shall pay to Purchaser all condemnation
I proceeds theretofore or thereafter received by Seller with respect to such condemnation, (d)
Seller shall assign to Purchaser all rights of Seller in and to such condemnation proceeds, and (e)
Seller shall furnish to Purchaser such documents, cooperation and assistance as Purchaser
Ie requires to enforce the rights of Seller with respect thereto; or (ii) temrinating this Agreement, in
which event neither party shall have any further obligation to the other hereunder and the parties
shall execute an agreement in recordable fonn canceling this Agreement.
I 10, SUlTABD..ITY; INSPECTION PERIOD.
I (A) Purchaser shall have from the date hereof until October 1 S, 1997, (the "InSpection
Period") to determinc whether the Property is suitable for Purchaser's intended development and
operation with regard to the following criteria (the "Purchaser's Criteria"). Purchaser shall use
I diligent, good faith efforts to satisfy the Purchaser's Criteria.
To assist Purchaser in its determination of the suitability of the Property for the intended
I use, Seller shall, within ten (10) days of the date hereof, deliver to Purchaser copies of all
documents which pertain to restrictive covenants, plans, plats, surveys, reports, tests. studies, title
materials (including copies of exeeption documents rcfc:renced in the title policy or title
I commitment, as the case may be), and environmClltal infonnation that are in Seller's possession.
(1) Pwchaser may, at its sole risk, cost and expense, conduct or cause to be
I conducted soil conditions. and/or hazardous materials engineering tests and/or
environmental assessments of the Land and in this connection, it or its designated agents
may enter upon the Land for purposes of inspection, soil analysis, core drilling or other
I tests that may be deemed necessary or desirable by PUIChaser or its engineer (including,
without limitation, engineering tests to determine the existence, iC any, of any geological
.- faults in or undermining of the subsurface of the Land and the location thereof).
Purchaser shall restore or repair any damage caused, related to or arising out of
Purchaser's conducting of these tests. Purchaser shall indemnifY. hold harmless and, at
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Seller's option but with Purchaser's legal counsel, defend Seller against any and all --
claims, actions, causes of actions, expenses, eosts, penalties and liability brought by or I
owing to third parties arising out of its work or those of its employees, agents or
contractors on the Land which indemnity shall also include the payment of reasonable
attorneys' fees. I
(2) Purchaser shall determine whether the improvements contemplated by
Purchaser for the Property and the use thereof are permitted by all governmental or quasi- I
governmental authority (local, state OT federal), including but not limited to zoning,
subdivision and special use authorities. -
(3) Purchaser, at its sole cost and expense, shall determine that it shall have I
the right to construct and operate upon the Property, upon proper application to the
appropriate governmental authorities and at a cost reasonably acceptable to Purchaser, its I
proposed buildings and other improvements. Said applications and approvals (the
"Governmental Approvals'') shall include, but shall not be limited 10, the proper zoning
and all other authority to construct Purchaser's buildings and all other necessary or I
desirable improvements (including Purchaser's signage),
(4) Purchaser shall have satisfied itself as to the environmental condition of ..
the Land, based on environmental testing pursuant to this Section 10 and any
environmental reports furnished to the Purchaser by the Seller pursuant to this Section 10.
(B) If Purchaser shall determine that it is not possible to develop the Property as I
intended by Purchaser, then Purchaser may tenninate this Agreement by giving notice (the
"Teonination Notice") of its election to do so to Seller on or before the expiration of the I
Inspection Period. The Termination Notice shall set forth the reasons for the termination of this
Agreement in reasonable specificity. If the Termination Notice is not given on or before the
expiration of the Inspection Period (as the same may extended as herein provided) then Purchaser I
shall be conclusively presumed to have irrevocably waived the right to terminate under this
Section 10 and to have accepted the Property in its "as is" condition and the Seller sha1l have no
liability to the Purchaser on account of any conditions existing on the Land, This provision shall I
not abrogate Seller's express warranties and representations contained in this Agreement.
11. REAL ESTATE TAXES AND ASSESSMENTS. I
AU general real estate taxes and installments of special assessments levied or assessed
against the Property (collectively, "Taxes") shall be paid by Seller if the same are due and I
payable as of the Closing Date and by Purchaser if due and payable thereafter. All Taxes for the
tax fiscal year in which the Closing Date occurs shall be apportioned between Purchaser and
Seller on and as of the Closing Date, with Purchaser bearing only the expense of that proportion I
of such Taxes that the number of days in the proration period following and including the
Closing Date bears to 365, If the amount of Taxes to be borne by the parties as above provided is -.
not ascertainable on the Closing Date, the total thereof paid for the preceding tax fiscal period
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shall be used for purposes of such proration, and within thirty (30) days after the amount of such
I Taxes becomes known. the parties shall recompute such proration and llIljust the difference.
12. CONDITIONS PRECEDENT.
I (A) This Agreement and all obligations of Seller hereunder are expressly conditioned
on the following conditions precedent being in effect or complied with on and as of the Closing
I Date, and Purchaser covenants that it will use diligent, good faith efforts to cause such conditions
to be in effect or complied with: -
I (1) Purchaser's representations and warranties set forth in Section 8 shall
remain true and correct in all material respects. ."
I (2) Purchaser shall have executed and delivered or caused to be executed and
delivered to Seller and/or the Title Company, as herein provided, all documents,
instruments and information required to be delivered by Purchaser.
I (3) Purchaser shall be in compliance with all of its other obligations under this
Agreement and the Contract.
Ie (B) This Agreement and all obligations of Purchaser hereunder are expressly
conditioned on the following conditions precedent being in effect or complied with on and as of
I the Closing Date, and Seller covenants that it will use diligent, good faith efforts to cause such
conditions to be in effect or complied with:
I (1) The Tille Commitment, as redated to the Closing Date, shall disclose good
and marketable fee simple title to the Property vested in Seller free and clear of all
I encumbrances except the Permitted Exceptions, and the Title Company shall be prepared
to issue the Title Policy to Purchaser in the form required by Section 4 immediately upon
the recording of the Deed.
I (2) Seller' s representations and warranties set forth in Section 8 shall remain
true and correct in all material respects.
I (3) Seller shall have executed and delivered or caused to be executed and
delivered to Purchaser andlor the Title Company, as herein provided, all documents,
I instruments and information required to be delivered by Seller,
(4) Seller shall have complied with all of its other obligations under this
Agreement.
I 13. CWSING"
.. (A) Provided all of the conditions to closing set forth in this Agreement have been
satisfied or waived by the parties, and this Agreement has not been terminated by either party in
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accordance with the provisions herein set forth, the closing hereunder (the "Closing") shall be ..
through an escrow with the Title Company on the Closing Date. The Closing shall occur on or I
before October 15, 1997,
(B) The Closing shall be effected in accordance with the following procedure: I
Not less than five (5) days prior to the Closing Datc, Purchaser shall cause
(1)
the Title Company to prepare and deliver to Purchaser and Seller aprelimimuy closing I
statement for each party showing all amounts due from each party, including ~l closing
costs and expenses computed as set forth in this Agreement.
(2) On or before the Closing Date, Seller shall deliver or cause to be delivered I
to the Title Company the following;
(a) Full releases of all mortgages, deeds of trust and other financing I
instruments affecting the Property, duly executed by the holders thereof,
acknowledged and in proper form for recording. I
(b) The Deed, in a fonn reasonably approved by Purchaser and the
Title Company. fjI
(c) Such instruments and documents relating to the organization,
existence and authority of Seller as the Title Company shall require. I
(d) Such other documents, instruments, certificates and assurances as
shall be required by the provisions of this Agreement. I
(e) Seller's closing statement, duly executed.
(f) Such closing instructions to the Title Company as Seller shall I
desire, which shall not be inconsistent with the provisions of this Agreement
("Seller's Instructions''), I
(3) On or before the Closing Date, Purchaser shall deliver or cause to be
delivered to the Title Company the following: I
(a) By federal wire transfer of funds to the Title Company's escrow
account, an amolUlt equal to (i) the balance of the Purchase Price due at Closing, I
adjusted as herein provided, plus (ii) the aggregate amolUlt of closing costs for
which Purchaser is responsible as provided herein, all as shown on Purchaser's I
closing statement.
(b) Such instruments and documents relating to the organization, ..
existence and authority of Purchaser as the Title Company shall require.
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f' (c) Purchaser's closing statement, duly executed.
I (d) Such closing instructions to the Title Company as Purchaser shall
desire, which shall not inconsistent with the provisions of this Agreement
I (''Purchaser's Instructions").
(4) The parties shall obtain the advice of the Title Company as to whether it is
I in a position to (a) cause the Deed to be immediately recorded in the real estate records,
and (b) immediately issue the Title Policy to Purchaser, If the Title Company shall
advise affirmatively on the foregoing matters, then the parties shall instruct the Title
I Company to proceed to close the escrow in accordance with Seller's Instructions and
Purchaser's Instructions.
I (S) All costs and expenses of Closing the purchase and sale of the Property
shall be borne and paid at Closing unless otherwise stated herein, as follows:
I By Seller: Seller's Attorneys' Fees
Charges, if any, for the Title Commitment
Transfer Taxes and Deed Taxes
Ie One-half of the Escrow Fees of the Title Company
By Purchaser: Purchaser's Attorneys' Fees
I Premiums for the Title Policy
Recording Fees for Deed, except for Transfer Taxes
One-half of the Escrow Fees of the Title Company
I Survey Chatges ""
14. DEFAULT AND REMEDIES.
I (A) In the event Purchaser fails to comply with any or all of the obligations,
covenants, warranties or agreements to be perfouned, honored or observed by Purchaser under
I and pursuant to the terms and provisions of this Agreement and such default is not cured within
thirty (30) days after notice thereof from Seller (other than Purchaser's failure to tender the
Purchase Price at Closing, a default for which no notice is required), then Seller may either (i)
I terminate this Agreement and both parties shall be released from any further liability hereunder
except for the indemnification provisions of Section 17 hereof and the parties shall execute an
instrument in recordable form canceling this Agreement, or (ii) seek an action for specific
I performance against Purchaser to enforce the provisions of this Agreement so long as such action
is initiated within six (6) months after the date of the default. In addition, the Seller shall be
entitled to pursue such other rights and remedies which Seller may have at law or in equity by
I reason of Purchaser's default.
tt (B) In the event Seller fails to comply with any or all of the obligations, covenants,
warranties or agreements to be performed, honored or observed by Seller under and pursuant to
the tenns and provisions of this Agreement, and such default is not cured within thirty (30) days
I 10
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after notice thereof from Purchaser, then Purchaser may either (i) tenuinate this Agreement and -.
both parties shall be released from any further liability hereunder, except for the indt'mnification I
provisions of Section 17 hereof and the parties shall execute an instrument in recordable form
canceling this Agreement, or (ii) seek an action for specific performance against Seller to enforce
the provisions oftbis Agreement so long as such action is initiated within six (6) months after the I
date of the default, In addition, the Purchaser shall be entitled to pursue such other rights and
remedies which Purchaser may have at law or in equity by reason of Sellefs default.
(C) The failure of either patty to act upon a defaull of the other in any of the terms, I
conditions or obligations under this Agreement shall not be deemed a waiver of any Subsequent
breach or default under the tenus, conditions or obligations hereofby such defaulting patty. I
IS. NOTICES.
All notices, consents and other communications herein required or which either party I
desire to give to the other (''Notices'') shall be in writing and personally delivered or sent by
registered or certified mail or by overnight delivery service, postage prepaid, return receipt I
requested and shall be mailed to the parties at the respective addresses as provided below:
If to Seller: City of Arden Hills ~
1450 West Highway 96
Arden Hills, Minnesota 55112
Attn: City Administrator I
lito Purchaser: Welsh Development Company, LLC
8200 Normandale Blvd., Suite 200 I
Bloomington, Minnesota 55347-1060
Attn: Dick Zehring
With a copy to: Thomas Hart I
Winthrop & Weinstine, P.A.
30 East 7th Street, Suite 3200 I
S1. Paul, Minnesota 55101
All Notices shall be effective upon being deposited in tbe United States mail or delivered to the I
overnight courier in the manner prescribed above; however, the time period in which a response
to any such Notice must be given shall commence to run from the date of receipt by the
addressee thereof as shown on the return or courier receipt of the Notice. Rejection or other I
refusal to accept or the inability to deliver because of changed address of which no Notice was
given shall be deemed to be receipt of the Notice as of the date of such rejection, refusal or
inability to deliver. I
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16. MISC.RY.T .ANEOUS PROVISIONS,
I (A) Any of the representatioJls, warranties, covenants and agreements of the parties, as
well as any rights and benefits of the parties, pertaining to a period of time following the Closing
I of the transactions contemplated hereby, sball survive the Closing and shall not be merged
therein.
I (B) This Agreement shall be construed under and in accordance with the laws of the
State of Minnesota and according to its fair meaning and not in favor of or against any party,
I (C) This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective heirs, legal representatives, successors and assigns,
I (D) If any term, provision or condition contained in this agreement shall, in any
extent, be held to be invalid, illegal or unenforceable in any respect, the remainder of this
Agreement (or the application of such term, provision or condition to persons or circumstances
I other than those in respect of which it is invalid, illegal or unenforceable) sha11 not be affected
thereby, and each and every other term, provision and condition of this Agreement shall be valid
and enforceable to the fullest extent permitted by law.
Ie (E) This Agreement constitutes the sole and only agreement of the parties hereto and
supersedes any prior understandings or written or oral agreements between the parties respecting
I the within subject matter. This Agreement cannot be amended or modified except by written
agreement signed by Purchaser and Seller.
I (F) All parties hereto pledge their reasonable good faith efforts to act in a timely and
reasonable manner to consununate the transaction herein contemplated.
I (0) Timely performance by Seller and Purchaser is of the essence in this Agreement.
(H) Words of any gender used in this Agreement sbal1 be held and construed to
I include any other gender, and words in the singular number sball be held to include the plural,
and vice versa, unless the context requires otherwise,
I (I) The paragraph headings herein ate for reference purposes only and ate not
intended in any way to describe, interpret, define or limit the scope, extent or intent of this
I Agreement or any part hereof: The failure by either party to enforce against the other any term or
provision of this Agreement shall be deemed not to be a waiver of such party's right to enforce
against the other party the same or any other such term or provision,
I (J) This Agreement may be executed in multiple originals or countexparts, each of
which will be an original and, when all of the parties to this Agreement have signed at least OIle
.. (1) copy, such copies together will constitute a fully executed and binding Agreement.
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(K) If either party files any action or brings any proceeding against the other arising --
out of this Agreement, or is made a party to any action or proceeding brought by a third party I
arising out of this Agreement, then as between Purchaser and Seller, the prevailing party (i.e., the
party whose positi on is substantially upheld) shall be entitled to recover, as an element of its
costs of suit and not as damages, reasonable attorneys' fees to be fixed by the court, I
(L) If either party hereto shall be delayed or hindered in or prevented from the
performance of any act required hereunder by reason of strikes, lockout&, labor troubles, fires, I
Acts of God, natural disasters, inability to procure material, failure of power, restrictive
govemmenta1laws or regulations, riots, insurrection, war or other reason of a like nature not the
fault of the party delayed in performing work or doing acts required under this Agreement, the I
period for the performance of any such work or act shall be extended for a period equivalent to
the period of such delay.
(M) Each party represents and warrants to the other that neither it nor its agents or I
fCpresentatives have engaged or dealt with any broker, agent or finder with respect to thc
transaction contemplated herein, and each party agrees to indemnify and hold harmless the other I
party from any and all claims, costs, liabilities and expenses (including court costs and
reasonable attorneys' fees) incurred by the other party as a result of the indemnifYing party's
breach of its representation and warranty hereunder, eI
17. PlTRCHA!':F.R'S INDEMNIFICATION.
In the event that this Agreement is terminated by either Purchaser or SeUer prior to I
Closing, and notwithstanding the fact that such termination shall release Purch3ser from its
obligation to buy the Property, nothing herein shall be deemed to release Purchaser from any I
liability arising out of Purchasers activities (or those of its employees, agents, or contractors) on
the Land, including, but not limited to, its actions on the Land while exercising its rights
pursuant to Section 10 hereto, This provision shall survive Closing of the transaction herein I
contemplated and the delivery of the Deed. Nor shall any termination of this Agreement relieve
the Purchaser from any of ils obligations or liability under the Contract, unless specifically so
stated in the Contract. I
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IN' WITNESS WHEREOF, the parties have executed this Agreement as of the date and
I year first above written.
"SELLER"
I CITY OF ARDEN HlLLS
I By:
Name:
Title: -
I By:
Name:
I Title:
I "PURCHASER"
WELSH DEVELOPMENT
Ie COMPANY, LLC
By:
I Name:
Title:
I By:
Name:
Title:
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EXHIBIT A
Legal Description of the Land I
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fill
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91'd 61>0... .!Z6 219 . tj . d '3>1I3G 'll )'3"1atj<lEl 60:>::1 l.661-61-d3S
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l,' FILE
t. ..'__.__ ----... ,~, ,..".-,"
't.. ". ..
.,.__ 4(f-
I \, ,
JOINT COUNCIL WORKSHOP WITH
I , "''\, ARDEN HILLS, NORTH OAKS AND SHOREVlEW
ARMY RESERVE CENTER
I 4655 LEXINGTON A VENUE NORTH
ARDEN HILLS, MN 55112
CLASSROOMS 1 & 2
I SEPTEMBER 22,1997
7:00-8:3o-P,M,
I AGENDA -
I
1. INTRODUCTIONS
I 2. DISCUSSION REGARDING RENEGOTIATION OF A FIRE SERVICES
AGREEMENT WITH THE LAKE JOHANNA VOLUNTEER FIRE
I DEPARTMENT
3. DISCUSSION REGARDING HIGHWAY 96 RECONSTRUCTION
II 4. OTIIER ISSUES
I
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'" .'.'
I CITY OF ARDEN HILLS
~ MEMORANDUM
DATE: July 23, 1997
I TO: Fire Services Task Force
I FROM: Terrance Post, City Accountant @
I SUBJECT: Contract Discussion Issues
As a result of the fourth meeting of the Arden Hills Fire Services Task Force on July 22,1997,
I the group identified several changes they would support in the next round of contract
negotiations with the Lake Johanna Volunteer Fire Department (LJVFD), These negotiation
issues include the following: '
I 1. Endorsement of a change back to city representation on the Fire Board in the form
of a Joint Powers Agreement (JP A) structure.
I 2, Support for the creation of an independent full-time Fire Chief position selected
II by the contract cities, This would represent a change from the current method of
the LJVFD membership selecting the Chief.
3, Removal of capital expenditures from the LNFD budget. All such capital outlays
I would be approved, and funded, by individual contract cities.
I 4, Change in the current contract payment terms from semi-annually to monthly.
5. Establish a balance sheet cash cap ofLJVFD for working capital needs pUlposes
I only. Excess funds in excess of cap to be distributed back to contract cities on
proportional basis of contract revenues paid, For discussion purposes, the
December 31, 1995 cash and temporary investments balance of LJVFD was
I $793,404. The approximate contract cities services payments on a percentage
basis has been Arden Hills 28%; North Oaks 13%; and Shoreview 59%.
I 6. Eliminate detailed contract verbiage about ISO and replace with a requirement
that the organization's ISO rating must not be higher than 5,
I 7, Reduce the length of the fire protection contract from ten (10) years to three (3) to
five (5) years.
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Memorandum - Contract Discussion Issues Identification I
Page Two --
July 23, 1997
8, Once the benefits from TCAAP revenue have been equalized by contract city
since contract inception, apply TCAAP revenue against annual contract costs by I
City on a proportional basis to lower net contract costs for all the contract cities.
9, Contemplate the expansion of the fire service area to include TCAAP in regards I
to the City of Arden Hills.
10, Minnesota Statutes not withstanding, require LJVFD to make a positive I
declaration that pension liabilities are the sole responsibility and liabiliw of the
LJVFD Relief Association, and not the contract cities. I
11. Adopt language that if proposed LJVFD operating budgets are not received by
July I, the following year's budget will be the current year, less five percent (5%). I
12, Change the contract service year to begin on December I instead of January I,
with contract annual services then ending on November 30, instead of December I
31.
Further Actions W
Mr. Fritsinger and I will be meeting with staff representatives from the other contract cities to
gauge their level of support for the above-referenced contract discussion issues. The overall
theme of these discussions will be to increase the accountability level in dealing with this I
services provider.
We will keep you posted on developments resulting from these discussions. I
I
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I ' " FILE
I
Ie
I A JOINT MEETING OF THE
I CITY COUNCILS OF
I ARDEN HILLS, NORTH OAKS AND
SHORE VIEW
I
I WILL BE HELD ON
I MONDAY, SEPTEMBER 22, 1997
AT 7:00 P.M. AT THE
1- ARMY RESERVE CENTER
I (CLASSROOMS 1 AND 2)
I 4655 LEXINGTON A VENUE NORTH
I
I
I THANK YOU!
I
I ~ 'l/l"b I 'j?
I-
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I
I FILE
Ie
I A SPECIAL MEETING OF THE
I ARDEN HILLS CITY COUNCIL
I AND THE ARDEN HILLS
ECONOMIC
I DEVELOPMENT AUTHORITY
I
I WILL BE HELD ON
MONDAY, SEPTEMBER 22, 1997
1- AT APPROXIMATELY 8:30 P.M.*
I (*IMMEDIATEL Y FOLLOWING A JOINT
MEETING OF THE CITY COUNCILS OF
I ARDEN HILLS, NORTH OAKS
I AND SHOREVIEW)
I AT THE ARMY RESERVE CENTER
(CLASSROOMS 1 AND 2)
I 4655 LEXINGTON A VENUE NORTH
I THE PURPOSE OF THIS MEETING IS TO REVIEW AND CONSIDER
ACTION ON VARIOUS ISSUES RELATED TO THE CONTINUING
I DEVELOPMENT OF THE GATEWAY BUSINESS DISTRICT (GBD)
I- ~~ "'! /fir"!)
$
I
I
~ FILE
I .~
I-
I CITY OF
I
I ARDEN HILLS
I
I CONSULTING ENGINEER
INTERVIEWS
I
1- MONDAY, SEPTEMBER 22, 1997
FROM 2:30 THROUGH 6:00 P,M,
I
WILL BE HELD AT
I THE ARMY RESERVE CENTER
I (MEETING ROOMS 1 AND 2)
4655 LEXINGTON A VENUE NORTH
I
I
I
I THANK YOU!
I- \?z>
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--,~~","~- -->.~.~~- '.."":';~ ,.~,...,:",I'.,,,,,,.?,,:,._~'-<II",;I'lI~:,....., "-............''''':'~;;.'r. . ~:,_.:-"--,,~..;,.,,.,:..,.y..- "^,7"FI(-e';
AGENDA
. CITY OF ARDEN HILLS
ECONOMIC DEVELOPMENT AUTHORITY
SPECIAL MEETING
ARMY RESERVE CENTER - 4655 NORTH LEXINGTON AVENUE
MONDAY, SEPTEMBER 22,1997, *APPROXIMATELY 9:30 P,M.
II NOTE CHANGE INLOCATION II
-
9:30 P.M, 1, CaU to Order
(Approximate)
, 9:30 P,M, 2. Approval of Meeting Agenda
9:35 P,M, 3. Unfinished and New Business
a, Gateway Business District
1. Developer's Agreement, Welsh Development Company, LLC
10:00 P.M. 4. Adjourn
. The above times may vary depending upon length of issue discussion.
, .--- -~"""-----
CITY OF ARDEN HILLS
. MEMORANDUM
DATE: September 19, 1997
TO: Economic Development Authority (EDA) Board of Commissioners
FROM: Brian Fritsinger, Secretaryffreasurer ~
SUBJECT: Secretaryffreasurer Comments for the September 22, 1997 Special
EDA Meeting
.
1. Gatewav Business District
a. Developer's Agreement. Welsh Development Company, LLC
The EDA Board of Commissioners is asked to approve the Development
Agreement between the City of Arden Hills and Welsh Development Company,
LLC for the development of the Gateway Business District, substantially in the
form presented subject to nonsubstantial changes being approved by the EDA's
Development Attorney and City Administrator/EDA Secretary; authorize the
President and Secretary to execute all necessary documentation; subject to
. conditions.
BF/sls
M:IUSERSISHElLAICOUNCILIADMINCOMIEDA\9.22SECY.WPD
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CITY OF ARDEN HILLS
. MEMORANDUM
DATE: September 19, 1997
TO: Economic Development Authority (EDA) President and Commissioners
FROM: Brian Fritsinger, secretaryrrreasurec@)
SUBJECT: Development Agreement with Welsh Development Company
Requested Action -
The City Council is asked to consider the approval of a Development Agreement between the
City of Arden Hills and Welsh Development Company, LLC,
Back~round
The City Council has been working with Welsh Development Company, LLC for the past two
years on the development of the Gateway Business District (GBD). The first phase of this
development was the construction of the 154,000 square foot Manufactured Services Limited
(MSL) building completed this summer.
. What is the Description ofthe Proiect Included in the Agreement?
The development consists of the construction of a total of at least 270,000 square feet of
office/warehouse space, The redeveloper (Welsh) is responsible for the acquisition of all
property on which the private improvements will be constructed. The development is expected
to be constructed in three phases commencing in October, 1997, and concluding by August of
1999. Failure to build the phases in any particular order or by particular times is not a default so
long as the redeveloper is current on its payment of the special assessments, All construction
must be undertaken consistent with plans approved by the City and the Economic Development
Authority (EDA), and the Planned Unit Development (PUD) approvals granted by the City,
What Public Improvements are Necessary?
The EDA and City will be responsible for the construction of the Highway 96 and the Fourteenth
Street improvements. Those improvements will be completed in 1998, and will be paid for using
the proceeds of City tax increment bonds. It is anticipated that the improvements to Fourteenth
Street will begin in 1997, and to Highway 96 in 1998, The City and the EDA will also, at some
time, undertake the West Round Lake Road improvements and either use the proceeds of the
City's bonds to pay the costs or will undertake these improvements as a public improvement
project and assess the cost against all benefited properties,
Has the City Determined the Level ofthe Bonds to be Issued?
The City has not yet determined the level of bonds to be issued in order for this project to
proceed. Staffhas been working with Ehlers and Associates, and expects to have a formal
. recommendation available at the October 14, 1997 City Council meeting. The bond is estimated
to be in the area of $2.5 - $3,5 million.
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Memorandum, Development Agreement with Welsh Development Company
Page Two .
September 19, 1997
What Security will the Citv have for the City's Bonds?
The City's bonds will be payable out of tax increment generated by the project or, if tax
increment is insufficient, from general tax levies. To secure the redeveloper's obligations,
special assessments in the amount of63,5% of the cost of the Highway 96 and Fourteenth Street
improvement projects will be assessed against the redeveloper's property. The other 36.5% of
the cost of the projects will be paid from the anticipated tax increment from the project being
constructed on the property owned by AmberJack, Ltd. (MSL).
The assessments on the redeveloper's property will be released, in whole or in part, as the phases
of the development are completed and assessment agreements are executed establishing
minimum market values for tax purposes for the phases. So long as any assessments are
outstanding on a phase, the payment of the assessments is a personal obligation of the
redeveloper that allows the EDA to sue to collect the assessments, as well as foreclosing the
assessment lien.
What Happens if Excess Tax Increment is Generated?
If the AmberJack property actually generates tax increment that is greater than the tax increment
generated based on the minimum market value established in the assessment agreement, the EDA
agrees that the excess tax increment will be available to reimburse the redeveloper for its
payment of special assessments. Tax increment is only excess if it is not needed to pay the costs .
of the City's public improvement projects.
Also, tax increment that is in excess of the amount needed to pay the City's bonds or any costs of
the West Round Lake Road improvements that are not assessed against private property will be
used by the EDA to reimburse the redeveloper and AmberJack for any payments of assessments
for the West Round Lake Road improvements, to the extent that the EDA can legally do so. The
agreement does not include language which would allow the City to use excess proceeds towards
the acquisition of the ATS property before reimbursement to the redeveloper. The EDA should
carefully consider whether or not it wishes to have ATS included in the City's initial public
improvement costs,
Does the Al!reement Include State Mandated ,Job and Wage Goals?
Recent actions by the State of Minnesota require that any project receiving financial assistance
from a local government include job and wage goals. These goals will need to be reported to the
State in subsequent years, The EDA should find that its activities in this project are being
undertaken for redevelopment, and not for economic development or job growth purposes.
Therefore, the EDA fmds that the provisions of Minnesota Statues, Section 1161.991, which
requires the establishment of wage and job goals in projects assisted for economic development
or job growth purposes, does not apply, However, ifit is later determined that the Statute
applies, the wage and job goal established is one new job at minimum wage,
.
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Memorandum, Development Agreement with Welsh Development Company
e Page Three
September 19, 1997
Is the DevelQner Askin~ for the City to Incur any Additional Costs?
The developer has requested that the City incur the cost related to the revised plans and
specifications for Fourteenth Street improvements, The cost for these changes is estimated at
$180,000, The changes are a result ofthe developer revising the site plan for development in
order to reduce its cost for soil exporting, This issue is not directly identified in the current
Development Agreement, The EDA needs to determine if this is acceptable,
The second potential cost increase to the City is related to the changes in pond/wetland location,
At the time of this report being prepared, the final design had not been completed, and no cost
estimates prepared, The City and developer will need to resolve this issue,
Recommendation
The City Council is asked to approve the Development Agreement with Welsh Development
Company, LLC substantially in the form presented subject to nonsubstantial changes being
approved by the EDA's Development Attorney and City Administrator/Secretary; authorize the
President and Secretary/Treasurer to execute all necessary documentation and approve the
agreement subject to the following items:
. The approval and execution ofthe Sale and Purchase Agreement between the City
e of Arden Hills and Naegele Outdoor Advertising, Inc,
. Clarification on the costs related to the Highway 96 improvements,
. Determination ofthe wetland mitigation costs and agreement by the parties as to
who is paying for these costs.
. Completion of and compliance to all conditions identified on the approval of
Planning Case #97-06.
. Determination of the costs to the revised plans and specifications for Fourteenth
Street improvements and agreement by both parties as to who is paying for these
costs.
. The developer providing the accurate legal descriptions necessary to complete the
Development Agreement schedules,
SF /sls
M:IUSERSISHEILAIADMINIPLANNINGlGBDlDEV AGREE.MEM
e
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09/19197 .
DEVELOPMENT AGREEMENT
By and Between - -
ARDEN mY" ,8 ECONOMIC DEVELOPMENT AUTHORITY
and
.
WELSH DEVELOPMENT COMPANY, LLC
.
Dated as of: ,1997
This documenl was drafted by:
BRADLEY & DEIKE, P. A
5100EdcnAvenue, Suite 306
Edina, MN 55436
Telephone: (612) 927-4333
.
rjdlap'cement\AtdenHill$welshrevised
GO'd 6Nll. lZ6 2i9 '1;; . d '3)U3a 'll ),3"l(J'*I!I
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TABLE OF CONTENTS
~
PREAMBLE I
ARTICLE I
Definitions
- -
Section 1.1. Definitions 3
ARTICLE n
R~nre..c;entations
Section 2.1. Representations by the Authority 7
Section 2,2. Representations by the Rede"eloper 7
. ARTICLE m
Acquisition ofPl'Qperty: Public Tnwrovements
Section 3,l. Status of Property 9
Section 3.2. Conditions Precedent to Issuance of Bonds
and Construction of Public Improvements 9 .
Section 3.3, Title 10
Section 3.4, Public Improvements 10
Section 3.5. Special Assessments 11
Section 3.6. West Round Lake Road Improvements 13
ARTICLE IV
!::pnstmction of Minimum fmprovements
Section 4.l. Construction of Minimum hnprovements 14
Section 4.2. Construction Plans 14
Section 4.3. Commenceroent and Completion of
Construction 15
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ARTICLE V
Insurance and Condemnation
Section 5.1. Insurance 17
Section 5.2. Condemnation 19
ARTICLE VI
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Payment of Asses~ments: Tax Tncrement
Section 6.1. Payment of Assessments 20
Section 6.2. Tax Increment Certification 21
Section 6.3. Real Property Taxes 21
Section 6,4. Use of Tax Increment 22
Section 6.4. Assessment Agreement 22
ARTICLE vn
Mortmlge Fin~ndng .
Section 7.1. Financing 24
Section 7.2, Limitation Upon Encumbrance of Property 24
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ARTICLE VIII
Pronihitions Ai!ainst AssifJ'ment ~nd Transfer' Indemnification
Section 8,1. Representation as to Redevelopment 25
Section 8.2. Prohibition Against Transfer of
Property and Assignment of Agreement 2S
Section 8.3. Approvals 26
Section 8.4. Release and Indemnification Covenants 26
ARTICLE IX
Events of Default
Section 9.1. Events of Defaull Defined 28
Section 9.2. Authority's Remedies on Default 28
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Section 9,3. No Remedy Exclusive 29
Section 9.4, No Additional Waiver Implied by
One Waiver 29
Section 9,5. Costs ofEnfon:ement 29
ARTICLE X
Additinnsl p,.nvi~;nns
Section 10,1. Representatives Not Individually Liable 31 -.
Section 10.2, Restrictions on Use 31
Section 10.3. Provisions Not Merged With Deed 31
Seetion 10.4. Titles of Articles and Seetions 31
Section 10.5. Notices and Demands 31
Section 10,6, Disclaimer of Relationships 31
Section 10.7. Modifications 32
Section 10,8, Cou.nterparts 32
Section 10.9. Judicial Interpretation 32
Section 10.10. Wage and Job Goals 32
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SIGNATURES 33
SCHEDULE A Description of Redevelopment Property
SCHEDULE B Description of Public hnprovements
SCHEDULE C Assessment Agreement "".
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DEVELOPMENT AGREEMENT
TInS AGREEMENT, is made on or as of the _ day of ' 1997, by
and between the Arden Hills Economic Development Authority, a public body corporate and
politic (hereinafter referred to as the "Authority"), and having its principal office at 1450 West
Highway 96, Arden Hills, Minnesota 55112, and Welsh Development Company, LLC, a
Minnesota limited liability company (hereinafter referred 10 as "Redeveloper"), baving its
principal office at 8200 Normandale Boulevard, Suite 200, Bloomington, Minnesota. 55437-
1060.
WITNESSETH:
WHEREAS, the Authority is a political body corporate and politic and a political
subdivision of the State of Minnesota, organized and existing pursuant to the laws ofthe State of
Minnesota and is governed by the Board of Commissioners thaeof(the "Board"); and
WHEREAS, pursuant to Minne.qota !';latules. Section 469.124 to 469.134 and Sections
469.090 through 469.108 as amended, the Authority is authorized to establish municipal
development districts in order to provide for the development and redevelopment of the. City and .
to operate municipal development districts initially established by the City of Arden Hills (the
"City"); and
WHEREAS, pursuant to the Minnesota Tax Increment Financing Act, Minnesota
Slatules. Sections 469.174 to 469.179, as amended, the Authority is authorized to finance the
capital and administrative costs of a municipal developmenl district with tax increment generated
from tl1X increment financing districts established within such municipal development districts;
and
WHEREAS, the City has established its Municipal Development District No, 1
(hereinafter referred to as the "Project") in an area of the City (hereinafter referred to as the
"Project Area") pursuant to Minne.ota Stalllles, Sections 469,124 through 469.134; and
WHEREAS, pursuant to a resolution of the City Council of the City, the City Council
transferred control. authority and operation of the Project to the Authority; and
WHEREAS, in connection with the Project, there has been created Tax Increment
Financing District No, 2 (hereinafter referred to as the "Tax Increment District") pursuanl to the
Minnesota Tax Increment Financing Act and a tax increlllent plan therefor (the "Plan"); and
WHEREAS, the Redeveloper has presented to the Authority a proposal for the
development of a multi-phased office warehouse development within the Project; and
WHEREAS, in order to assist the Redeveloper in its development the Authority is .
prepared to pay certain public costs relaled to the development of the real property on which the
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Redeveloper has proposed to undertake its development (which property is descnoed on the
attached Schedule A and is hereinafter referred to as the "Redevelopment Property"); and
WHEREAS, the Authority belic:ves that the redevelopment of the Project Area pursuant
to this Agreement, and fulfillment generally of this Agreement, are in the vital and best interests
of the City and the health, safety, morals, and welfare of its residents, and in accord with the
public purposes and provisions of the applicable Stale and local laws and requirements IIDder
which the Project has been undertaken and is being assisted.
NOW, THEREFORE, in consideration oftha premises and the mutual obligati:ens of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
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ARTICLE I
Definitions
Section 1,1, Definition., In this Agreement, unless a differcnt meaning clearly appears
from the context:
"14th Street Improvements" means thaI portion of the Public Improvements described as
such on the attached Schedule B, including, without limitation, the constrUction of Ro~nd Lake
Court,
"Act" means Minnesota Statntes. Sections 469,124-469.134, and Sections 469.090-
469.108, as amended.
"Agreement" means this Agreement, as the same may be from time to time modified,
amended, or supplemented.
"AlllberJack" meanS AlllberJack, Ltd., an Arizona corporation.
"AmberJack Property" means all that certain real property legally described as such on
the attached Schedule A on which the PriOT Improvements have been constructed. .
"Assessment Agreement" means the agrea:nent, in the fOOD of the agreement contained in
Schedule C attached to and made a part of this Agreement, aIllong the Redeveloper, the
Authority, and the county assessor of the County, to be entered into pursuant to Section 6.5 of
this Agreement.
"AssesSlllents" means the special assessments to be levied against the Redevelopment
Property and AmberJack Property pursuant to Minnesota Statutes, Chapter 429, and Section 3.6
of this Agreement,
"Authority" means the Arden Hills Economic Development Authority, or its successors
or assigns.
"Bonds" means the taX increment general obligation bonds to be issued by the City to pay
the costs of the Public Improvements, or any portion thereof. The term "Bonds" shall also
include any bonds or obligatioDS issued to refinance any Bonds, or any portion thereof.
"City" means the City of Arden Hills, Minnesota.
"City Property" means thaI pOrtioD of the Redevelopment Property described as such on
the attached Schedule A.
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"City Purchase Agreement" means that certain Purchase and Sale Agreement dated as of
September -' 1997. between the Redeveloper and the City under which the City has agreed [0
sell and the Redeveloper has agreed to purchase the City Property.
"Condemnation Award" means the amount remaining from an award to the Redeveloper
for the acquisition of title to and possession of the Redevelopment Property or Minimum
Improvements. or any material part thereof; after deducting all expenses (including fees and
disbursements of counsel) incurred in the collection of such awaxd.
"Construction Plans" means the site plan, utility plan, grading and drainage plan,
landscape plan, elevations drawings and related documenls on the construction work to be
perfonned by the Redeveloper on the Redevelopment Property, together with the resolution of
the Authority approving such plans.
"County" means the County ofRam:;ey,
"Event of Default" means an action by the Redeveloper listed in Article IX of this
Agreement
"Highway 96 Improvements" means that portion of the Public Improvements described
. as such on the attached Schedule B.
"Holder" means the owner of a Mortgage.
"Market Value" means the market value of real property as detennined by the County
Assessor of the County for real estate tax purposes.
"Minimum Improvements" means the improvements to be constructed by Redeveloper on
the Redevelopment Property consisting of Phase II, Phase m, and Phase IV, all to be constructed
in accordance with approved Construction Plans,
"Mortgage" means any mortgage made by the Redeveloper which is sccured, in whole or
in part, with the Redevelopment Property and which is a pemlitted encumbrance pursuant to the
provisions of Articles VII and VITI of this Agreement,
"Net Proceeds" means any proceeds paid by an insurer to the Redeveloper or the
Authority under a policy or policies of insurance required to be provided and maintained by the
Redeveloper pursuant to Article V of this Agreement and remaining after deducting all expenses
(including fees and disbursements of counsel) incurred in the collection of such proceeds.
"Parcel" means 11 parcel of the Redevelopment Property on which a Phase is to be
construeted.
. ''Phase'' means either Phase II, Phase ill or Phase IV, as approved in the City's Planning
Case Number 96-12,
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"phase II" means that portion of the Minimum Improvements which will consist of not
less than 100,000 square feet of office/warehouse development.
"Phase ill" means that portion of the Minimum lmprovements which will consist of not
less than 100,000 square feet of office/warehouse development
''Phase N' means that portion ofthe Minimum Improvements which will consist of not
less than 70,000 square feet of officetwarehouse development.
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"Plan" means, collectively, the Tax Increment Financing Plan and Development PrOgram
;\dopted by the City in connection with the creation of the Tax Increment District and Project,
respectively, as modified as of the date of this Agreement, and as they may be further modified
from time to time.
"Prior Improvements" means the improvements previously constructed on the AmberJack
Property, consisting of an approximately 155,000 square foot office/warehouse building, as
approved in the City's Planning Case Number 96-12,
"Project" means the City's Municipal Development District No. 1 established by the City
ptll'SUant to the Development Program relating thereto, .
"Project Area" means the real property located within the boundaries oflbe Project.
''Public Improvements" means the improvements to be constructed by OD or behalf of the
Authority or the City pursuant to Section 3.4 of this Agrecment.
"Redeveloper" means Welsh Development COJll!lany, LLC, a Minncsota limited liability
company, its successors, assigns and any future owner of any fee simple interest in any Parcel of
the Redeve10pmenlProperty.
"Redevelopment Property" means the real property described in Schedule A of this
Agreement.
"State" means the State of Minnesota.
"Tax Increment" means that portion of the real property taxes paid with respect to the
Redevelopment Property, Minimum Improvements, AmberJack PrOperty and Prior
Improvements that is remitted to the Authority as tax increment pursuant to the TaX Increment
Act,
"Tax Increment Act" means the Tax Increment Financing Act, Minnesota SlatutCl;,
Sections 469.174-469.179, as amended.
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"Tax Increment District" means the Tax Increment Financing Districl No. 2 created by
City and ~t1ministered by the Authority.
"Tax Official" mean.s any City or county assessor; County auditor; City, County or Stale
board of equalization, the commissioner of revenue of the Stale, or any Stale or federal district
court, the tax court of the State, or the Slate Supreme Court.
"TerminatioD Date" means the date that the Bonds are paid in full.
"Unavoidable Delays" means delays which are the direct result of acts of God, umoreseen
adverse weather conditions, strikes, other labor troubles, unavailability of materials through no
fault ofRedevelopcr or the Authority, fire or other casualty to the Minimum Improvements .or the "
Public Improvements, litigation commenced by third parties which, by injunction or other similar
judicial action, directly results in delays, or acts of any federal. state, County or local
governmental unit (other than the Authority in enforcing its righlS under this Agreement) which
directly result in delays.
"West Round Lake Road Improvements" means that portion of the Public Improvements
described as such on the attached Schedule B.
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ARTICLE n
Re'pTesentations
Section 2,}, F-~res""'tations by the Authority. The Authority makes the following
representations and warranties as the basis for the undertaking on its part herein contained:
(a) The Authority is a public body politic and eotporate and a political subdivision of
the State duly organized and existing under the laws of the State. Under the provisio~s of the
Act, the Authority has the power to enter into tbis Agreement and carry out its obl1gations
hereunder,
(b) The Project is a "municipal development distriet" within the meaning of the Ar;t
and was created, adopted and approved in accordance with the termS of the Act.
(c) The Tax Increment District is a "redevelopment tax increment districl", which was
created, adopted, certified and approved pursuant to the Tax increment Act.
(d) The Authority will cooperate with the Redeveloper with respect to any litigation
commenced with respect to the plan, Projecl, or Minimum Improvements.
(e) The Authority has received DO notice or communication from any local, state or .
federal official that the activities of the Redeveloper or the Authority in the Project Area may be
or will be in violation of any environmental law or regulation. The Authority is aware of no
facts, the existence of which would cause the Redeveloper or the Redevelopment Property to be
in violation of any local, state or federal environmental law or regulation or review procedure or" ..'
which would give any person a valid claim under any of the foregoing.
Section 2.2, F.~re.qentatinn~ and Warr:;\nties .bv the RedevelQper_ The Redeveloper
represents and warrants that:
(a) The Redcveloper is a Minnesota limited liability company duly organized and
authorized to transact business in the State, is not in violation of any provisions of its articles of
organization, operating agreement or member control agreement or the laws of the State, has
power to enter into this Agreement and has duly authorized the execution, delivery and
performance of this Agreement by proper action of its governors.
(b) The Redeveloper will construct the Minimum Improvements in accordance with
the tenus oftbis Agreement and allloca1, stale and federal laws and regulations.
(c) The Minimum Improvements will be constructed at a cost sufficient to generate
improvements with a market value for tax purposes at least equal to the minimum marlcct values
required in Seclion 6,5 of this Agreemelll.
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(d) The Redeveloper has received no notice or communication from any local, state
or federal official that the activities of the Redeveloper or the Authority in the Project Area may
be or will be in violation of any environmental law or regulation. The Redeveloper is aware of
no facts the existence of which would cause it to be in violation of any local, state or federal
environmental law, regulation or review procedure or which would give any person a valid claim
under any of the foregoing.
(e) The Redeveloper will obtain, in a timely manner, all required permits, licenses
and approvals, and will meet, in a timely manner, all requirements of all applicable l,:!cal, state
and federal laws and regulations which must be obtained or met before the Minimum
Improvements may be lawfully constructed.
(t) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillD1ent 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 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.
. (g) The Redeveloper will cooperate with the Authority with respect to any litigation
commenced with respect to the Redevelopment Plan, Project, or Minimum Improvements.
(h) In the event that this Agreement is tenninated by the Authority as a result of an
Event of Default, the Redeveloper agrees that it will, within thirty (30) days of written demand
by the Authority, make arrangements, satisfaclory to the Authority, to reimburse the Authority
for all of its COSls and expenses, including reasonable fees of attorneys and consultants, incUrred. . .'
in connection with the negotiation, preparation and implementation of this Agreement; provided,
that if such lermination occurs prior to the sale of the Bonds and the letting of contracts for the
conslIuction of the Public Improvements, the maximum amounl thaI the Redeveloper shall be
obligated to pay under this subsection shall be $2Q,OOO.OO,
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ARTICLE UI
Acquidtion ofProverty:. puhlic Imnrovpmp.nb
Section 3.1. Status ofPrllPertv. The Redevelopment Property consists of several Parcels
of property owned by multiple owners. The Redeveloper has enlered into purchase agreements
with all of the owners of the Redevelopment Property. One of the Parcels of the Redevelopment
Property is the City Property which is OWned by or is proposed to be acquired by the City. The
City and Redeveloper have entered mlo the City Purchase Agreement under which the"
Redeveloper is entitled to purchase such property, The Redeveloper shall be respoo$ible for
securing all necessary purchase agreements to acquire the Redevelopment Property and for
taking all action necessary to permit the Redeveloper to acquire such properties,
The Redeveloper previously acquired and conveyed the AmberJack Property, on which
has been constructed the Prior Improvements,
Section 3.2. Cnnditions 'Precedent to TSSllance of the Bonds and Construction of Public
lmprovements. (a) The Aulhority's obligation to cause the City to issue the Bonds or to
commence construction of the Public Improvements shall be subject to satisfaction of aU of the
following conditions precedent:
(i> the Redeveloper shall not be in default under any term of this Agreement, notice .
of which shall have been given by the Authority to the Redeveloper;
(ii) the Redeveloper shall have secured the approval of all other governmental
agencies whose approval is required in order for the Redeveloper 10 construct and
operate the Minimum Improvements;
(ill) the Authority shall have been provided and approved evidence, reasonably
satisfactory to the Authority, that the Redeveloper has acquired sufficient title to
the Redevelopment Property to enable the Redeveloper to COnstl"uct and operate
the Minimum Improvements;
(iv) the Redeveloper shall have received a commitment for financing, which
conmrltment is reasonably satisfactory to the Authority, for the construction of at
least 100,000 square feet of the Minimum Improvements;
(v) the Redeveloper shall have acquired all parcels of the Redevelopment Property;
(vi) the Redeveloper shall have obtained and furnished to the Authority soil tests and
environmental assessments the result of which demonstrate to the satisfaction of
both the Authority and the Redeveloper t.l1at the Redevelopment Property does not
contain any adverse soil or environmental conditions that would preclude or
unduly delay the construction of the Minimum Improvements or any Phase .
thereof; and
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(vii) the Redeveloper shall have secured from the owner of the AmberJack Property an
executed Assessmenl Agreement as described in Section 6.5, unless the Authority
in its sole discretion, determines to proceed prior to securing such Assessment
Agreement.
Section 3.3. Iiili:. The Authority's obligations under this Agreement are conditioned on
the Redeveloper having acquired .lee title to the Redevelopment Property. Therefore, prior to the
issuance of any Bonds or the Authority's or City's commencement of the Public Improvements,
the Redeveloper shall provide to the Authority evidence in such form as the Authotity shall
reasonably require demonstrating that the Redeveloper has acquired fee title to the
Redevelopment Property and that such title is subject to no defects or encumbrances other than
those to which the Authority approves in writing, which approval shall not be unreasonably
withheld or delayed, or the Authority, in its sole disCl'etion, shall haVe approved the state of title
to the Redevelopment Property.
Section 3.4, Public ImnroVP.lT1ents. (a) In order to induce the Redeveloper to undertake
the development of the Minimum Improvements and to assist the Redeveloper in such
undertaking, the Authority will pay the cost of certain public improvements necessary to permit
. the development of the Minimum Improvements. The Public Improvements are more
specifically described on Schedule B to this Agreement and consist generally of the installation
of roads, utilities, landscaping, storm water and water line relocation.
(b) The 14th Street Improvements consist of the construction of a new road (l4th
Street) and the reconstruction of the public utilities serving all Phases of Ihe Minimum
Improvements. Subject to Unavoidable Delays and assuming that aU conditions to the issuance
of the Bonds and the commencement of the Public Improvements have been satisfied by ."
October14, 1997, the 14th Street Improvements will be commenced by November 1, 1997, and
will be compleled by September 30, 1998. Tne 141h Street Improvements will be constructed
pursuant to plans and specifications prepared by the Authority or the City in accordance with
City construction requirements, The 14th Street Improvements will be undertaken as a public
improvement project pursuant to Minnesota Statutes, Chapter 429, as is described in Section 3.6
of this Agreement. The 14th Street Improvements will be financed with the proceeds of the
Bonds.
(c) The West Round Lake Road Improvements consist of the reconstruction of West
Round Lake Road. The West Round Lake Road Improvements will be constructed and paid for
as described in Section 3.6 of this Agreement.
(d) The Highway 96 Improvements consist of improvements related to the
realignment of County Road 96, including the acquisition of property, signal improvements, and
road improvements. Subject to Unavoidable Delays and assuming that all conditions to the
e issuance ofthc Bonds and the commencement of the Public Improvements have been satisfied by
QClober14, 1997,the Highway 96 Improvements will be commenced by May 1, 1998, and will
be completed by December 31, 1998. The Highway 96 Improvements will be financed with the
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proceeds of the Bonds. The commencement and completion of the Highway 96 Improvements
shall also be subject to the granting of all necessary approvals therefor by the County and any
other govemmenlal \mil whose approval is necessary.
(e) The obligation of the Authority to proceed with the construction of the 14th Street
Improvements and the Highway 96 Improvements shall be subject to the satisfaction of all of the
conditions precedent conlained in Section 3.2. The Authority's obligation shall also be subject to
the Authority having determined that the nel proceeds of Bonds, payable solely from the Tax
Increment estimated by the Authority and Ihe City to bc generated from the construc~on of the
Minimum Improvements and Prior Improvements, can be sold in an amount sufficient fo pay aU
costs of the 14th Street Improvements and the Highway 96 Improvements. In the event that the
cost of the 14th Street Improvements and the Highway 96 Improvements will exceed
$ , based on bids received by the Authority for such work, the Authority will not
proceed with such work without meeting with the Redeveloper 10 anempl to dete1ll1ine whether
ways exist to reduce the cost of such work.
Section 3.5. Special AsseSm1ents. (a) The Authority intends to use Tax Increment 10
pay the Bonds issued to finance the 14th Street Improvements and the Highway 96
Improvements, As security for the payment of such Bonds, the 14th Street Improvements and
the Highway 96 Improvements will be undertaken as a public improvements project pursuant to
Minnesota Statutes, Chapter 429, and assessmenls will be levied as liens against the .
Redevelopment Property, The Redeveloper has petitioned the City to \mdertake the 14th Street
Improvements and Ihe Highway 96 Improvements and to assess the cost thereof against the
Redevelopment Property. The Redeveloper further agrees that, so long as the aggregate amount
of the Assessments against the Redevelopment Property do not exceed $ , it
will not conlest the amount or validity of the Assessments on constitutional, statutory, proceduul
or other grounds and shall cause any Holder and any transferee of Redeveloper's acquiring an
interest in the Redevelopment Property or Minimum Improvements, or any portion thereof, to
execute an instrument, in a form acceptable to the City, acknowledging the validity of the lien of
the assessments and subjecting the Holder's lien or the transferee's interest to the lien of the
assessments. In addition, the Developer will upon request by the City execute such other
documents as the City may from time to time reasonably request to continue the perfection ofthe
lien of the assessments as a first lien on thCl Redevelopment Property.
(b) The amount of !he Assessments to be levied against the Redevelopment Property
shall equal sixty three and one half percent (63.5%) orall costs of the design and construction of
the 14th Street ImproveJl\ents and the Highway 96 Improvements, the cost of acquiring any
property necessary to undertake such improvements, the costs of issuing the Bonds, and all costs
relating to the foregoing, The other thirty six and one half percent (36.5%) of such costs are
intended 10 be paid using the Tax Increment that will be generated from the AmberJack Property
and Prior Improvements based on the market valuCl to be established in the Assessment
Agreement to be executed by the owner of the AmberJack Property pursuant to Section 6.5. The
percentages of the total amounl of the Assessments to be levied against each Parcel of the .
Redevelopment Property shall be as follows:
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(i) Against the Parcel on which Phase II will be constructed shall be levied thirty
seven percent (37%) of the total;
(ii) Against the parcel on which Phase III will be constructed shall be levied thirty
seven percent (37%) of the total; and
(Hi) Against the Parcel on which Phase IV will be constructed shall be levied twenty
six percent (26%) of the total.
(c) The Assessments are intended to secure the payment of the Bonds --until the
Redeveloper has generated certain marlcet values of improvements that will generate Tax
Increment 10 pay the Bonds. Therefore, the Assessments are subjcct to discharge and release by
the City as described in this Subsection. All or a portion of the Assessments shall be discharged
and released as liens against each Parcel of the Redevelopment Property upon completion of the
Phase constructed on the Parcel. A Phase shall be deemed to be complete upon the issuance by
the City of a final certificate of occupancy for such phase. The amount of the Assessments that
will be released upon completion of each Phase shall be based on the Marlcet Value of the
completed improvements relative to the Market Value that was anticipated 10 be completed,
which anticipated Markel Value formed the basis for the issuance of the Bonds. The Bonds will
. be issued based on the assumption that the following Market Values will be generated from the
construction of the Minimum Improvements and the Prior Improvements:
(i) Phase II-$3,046,000,OO;
0
(ii) Phase ill-$3,046,000.00;
(iii) Phase IV-$2,132,200.00; and
(iv) Prior Improvements-$4,721 ,300.00,
Upon completion of each Phase, the amount of the outstanding Assessments that will be
discharged and released as liens on a Parcel on which a Phase has been completed shall be a
percentage of the outstanding Assessments calculated by dividing the minimum market value
established for such Phase in the Assessment Agreement for such Phase pursuant to Section 6.S
by the assumed value for the Phase sel forth above in this subsection by the amount of, For
example, if the minimum mw:ket value for Phase II as established by the Assessment Agreement
for Phase IT is $2,500,000.00, the amount of the outstanding Assessments on the Parcel on which
Phase IT is built will be reduced by eighty two percent (82%) which is $2,500,000.00 divided by
$3,046,000,00. If the percentage of reduction of the Assessments is less than one hundred
percent (100%), the percentage of the Assessments not released shall remain a lien on the
property and shall be payable in accordance with Section 6.1, subject to possible reduction later
to the extent that the Redeveloper generates Market Values on subsequent Phases that exceed the
. anticipated amounts set forth above. If the minimum market value of a Phase is greater than the
anticipated amount set forth above, the Redeveloper shall be entitled to have the outstanding
Assessments on another Parcel reduced as if such excess had been built on such Parcel
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(d) The reduction in the outstanding amount of any Assessments by virtue of the
completion of a Phase as described in (d) above s.hall nol be effective until the date that the
Authority receives the first payment of Tax Increment generated based on the completed Phase
unless the City has from the proceeds of the Bonds sufficient capitalized interesl to pay all Bond
debt service payments that will be rcquired to be made until the first payment of Tax Increment
based on the completed Phase or unless the Redeveloper provides a letter of credit or other
security to assure that the City will have revenues to make such Bond payments, in which cases
the reduction in the Assessments will occur at thc time of the issuance of a. certificate of
occupancy by the City for the phase, Until such time as the Assessments are released, the
Assessments shall remain a lien on the parcel and shall be payable in accordance with Section
6.1, Notwithstanding the foregoing, if after completion of a Phase, the Redeveloper makes a tax
payment that includes both a payment of an installment of the Assessments and TaX Increment
that is received by the Authority, the Authority will use the Tax Increment that is received to
reimburse the Redeveloper for its payment of the Assessment installment.
(e) The obligation of the Authority or City to reduce or discharge the AssesSJllcnts on
a Parcel as described in subsections (c) and (d) above shall be subject to satisfaction of the
following conditions precedent:
(i) The Redeveloper shall nol at such time be in default with respect to any of its .
monetary obligations under this Agreement; and
(ii) The Assessment Agreement for the phase on such Parcel shall have been executed
by the Authority, the Redeveloper, and the County Assessor of the County and shall have been
recorded against the subject property as described in Section 6.S.
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Section 3.6, West Ronnd T .ake Road I"'lW"vements. If the Authority and eity
determine to proceed with the West Round Lake Road Improvements using the proceeds of the
Bonds issued to finance the 14th Street Improvements and the Highway 96 Improvements, it may
do so and the cost of such improvements may be added to the Bonds and may be assessed against
all benefited properties. The Redeveloper agrees that the Redevelopment Property will be
benefited by such improvements and that it will not object to the undertaking of the improvement
project as an improvement project under Minnesota Statutes, Chapter 429. The project will be
assessed in accordance with the City's policies relative to the assessment of public improvements
and the Redeveloper reserves the right to contest the level of benefit attributed by the City to the
Redevelopment Property relative to other properties, The Authority agrees that, to the extent that
it is legally able 10 do so and without impairing its ability to assess the cost of the West Round
Lake Road Improvements against other benefited properties, it will use Tax Increment generated
from the Minimum hnprovements and Prior Improvements that is in excess of amounts
necessary to pay the Bonds or the cost of the West Round Lake Road Improvements that are not
assessed against private property to reimburse, first, subject to AmberJack's execution and
delivery of the Assessment Agreement and related documents relative to the AmberJack Property .
and Prior Improvements as desenl>ed in Section 6.S, AmberJack for the amount of any special
assessments levied against the AIDberJack Property for the West Round Lake Road
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Improvements, second, the Redeveloper for its payment of special assessments levied for the
West Round Lake Road Improvements. Amounts remaining sball be expended at the
Authority's discretion,
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ARTICLE IV
Construction ofMinimnm Improvements
Section 4,1. r.nn.tmction ofMin;mnm Improvements (a) The Redeveloper agrees that
it will constrUCt the Minimum Improvements on the Redevelopment Property in accordance with
the approved Construction Plans and that it will maintain, preserve and keep those portions of the
Minimum Improvements that it owns and controls, including but not limited to all landscaping
and exterior improvements, to be mainlained, preserved and kepI with the appurtenlll;Ce& and
every part and parcel thereof, in good repair and condition, during the term of this Agreement,
reasonable wear and tear and casualty excepted,
(b) The Redeveloper agrees that it will cooperate reasonably with the City and the
Authority in the resolution of any traffic. parking, Irash removal, public nuisances or safety
problems arising out of or relating to the Minimum ImprovementS.
Section 4.2. Cpnsl1'llction Plans (a) The City has granted planned unit development
approval for the Minimum Improvemenls. By May 1, 1998, the Redeveloper shall submit to the
Authority ConslIUction Plans for at leasllOO,OOO square feet of Minimum Improvements for its
approval. On or before August I, 1998, the Redeveloper shall submit to Ihe Authority
Construction Plans for at least an additional 70.000 square feet of the Minimum Improvements, .
and on or before Ma:y I, 1999. the Redeveloper shall submit to the Authority Construction Plans
for an additional 100,000 square feel of the Minimum Improvements. The Authority shall have
fourteen (14) days after receipt of a complete set of ConstTUction Plans for a phase to notify the
Redeveloper of its approval or rejection of such ConstrUCtion Plans or the Construction Plans
shall be deemed approved, which approval shall not be unreasonably withheld or delayed. The. ,
Redeveloper shall prepare all additional building plans and shall construct the Minimum
Improvements in a manner consistent with the Construclion Plans and all conditions imposed by
the City Council in granting planned unit developmcnl approval to the Redeveloper, The
Authority shall not be obligated to approve any Construction Plans that provide for the
construction of a Phase of a square footage less than the minimum amoWlts set forth in Section
1.1. The approval of the Construction Plans shall not relieve the Redeveloper of the obligation to
comply with the terms of this Agreemenl, applicable federal, state and local laws. ordinances,
JUles and regulations, or to construct the Minimum Improvements. Nothing in this Agreement
shall be deemed to limit in any way the Redeveloper's obligation to oomply with the City's
nonnal building construction permitting process.
(b) If the Redeveloper desires 10 make any lIlaterial change in any Construction Plans
after their approval by the Authority, the Redeveloper shall submit the proposed change to the
Authority and the City COWlcil for approval, which approval by the Authority shall not be
unreasonably withheld or delayed. For plIlposes of this Agreement, a "material" change in the
Construction Plans shall be any change that reduces the value of the Minimum Improvements
below the minimum market value established in the Assessment Agreement for the Phase or .
otherwise affects the validity of the Assessment Agreement, materially changes the exterior
appearance of the Minimum Improvements, changes the general nature or use of the Minimum
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Improvements or materially deviates from the plans approved in connection with the City's
granting of planned unit development approval. The Authority's rejection of a change in
Construction Plans that if approved would reduce the value of the Minimum Improvements shall
not be considered unreasonable on the part of tbe Authorily. Any requested change in thc
Construction Plans shall, in any event, be deemed approved by the Authority unless rejected, in
whole or in Pari, by written notice by the Authority to the Redeveloper, setting forth in detail the
reasons therefor. Such rejection shall be made within ten (10) business days after receipt by the
Executive Director of the AuthoQty of a written request for the change, which request shall
include the proposed change in the Construction Plans and a written narrative expl~g Ihe
purpose and details of the change, No approval of a change by the Authority under this
subsection shall relieve the Redeveloper of its obligation to obtain the approval of the City if
such approval is necessary.
(c) The Minimum lmprovements will be designed and constructed consislent with the
architectural theme approved by the City.
(d) The construction by the Authority of the Public Improvements will necessitate
certain wetlands mitigation, The Redeveloper agrees that the Minimum Improvements will be
designed to accommodate all such wetlands mitigation and to relieve the Authority of the
. responsibility therefor,
Section 4.3. c.ommP.ncernent and Comnletion of Construction. (a) Subject to
Unavoidable Delays, the Redeveloper shall commence construction of at least 10,000 square feet
of the Minimum Improvements by May I, 1998, or on such other dale as the parties shall agree.
Subject to Unavoidable Delays, the Redeveloper shall complete the construction of at least
100,000 square feet of the Minimum Improvements II by December 31, 1998, Subject" to .
Unavoidable Delays, the Redeveloper shall complete the construction of an aggregate of at least
170,000 square feet of the Minimum hnprovements by August 1, 1999, or on such other date as
the parties shall agree. Subject 10 Unavoidable Delays, the Redeveloper shall complete the
construction of an aggregate of at least 270,000 square feet of the Minimum hnprovements by
December 31, 1999, or on such other date as the parties shall agree. All work with r~ect to the
Minimum Improvements to be constructed or provided by the Redeveloper on the
Redevelopment Property shall be in conformity with the Construclion Plans as submitted by the
Redeveloper and approved by the Authority. The Redeveloper's failure to meet the construction
deadlines above shall not constitute an Event of Default under this Agreement if the Redeveloper
is current with respect to its obligations to pay installments of Assessments as described in
Section 6,1,
(b) In the event that the Redeveloper has not commenced the construction of at least
two Phases of the Minimum Improvemenls, excluding the Prior Improvements, by a date four (4)
years after the date hereof, the Authority shall have the right to purchase the Redevelopment
. Property, or any Parcel thereof, from the Redeveloper by paying to the Redeveloper the fair
market value of such parcel. Fair market value shall be determined through an appraisal process
under which the AUlhority and the Redeveloper each select an independent qualified appraiser
who in turn select a third appraiser. Each appraiser shall appraise the subject property and the
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value of the property shall be determined by averaging the three appraisals. The right of the
Authority under this subsection shall be documented in an option agreement that shall be in
recordable form and placed of record against the Redevelopment Property.
(c) 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 such
successors and assigns, shall promptly begin and diligently prosecute 10 completion the
redevelopment of the Redevelopment Property through the construction of the Minimum
Improvements thereon, andlhal such construction shaH in any cvent be commenced and
completed within the period specified in this Section 4.3 of this Agreement. .
Subsequent to
conveyance of the Redevelopmenl Property, or any part thereof, 10 the Redeveloper, and until
construction of the Minimum Improvements has been completed, the Redeveloper shall makc
construction progress reports, al such times as may reasonably be requested by the Authority, but
not more than once a month, as to the actual progress of the Redeveloper with respect to such
construction.
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ARTICLE V
IDinrance SInd Condemnation
Section 5.1. Insurance
(a) The Redeveloper will provide and maintain or cause to be provided and maintained at
all times during the process of constrUcting the Minimum IlJ1provements and, from time to time
at the request of the Authority, furnish Ihe Authority with proof of payment ofprcmi~~ on:
(i) Builder's risk or hazard insurance, written on the so-called "Builder's Risk -
Completed Value Basis," in an amount equal to one hundred percenl (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" fonn of policy. The
interest of the Authority shall be protected in accordance with a clause in fonn and content
satisfactory to the Authority;
(ii) Comprehensive general liability insurance (including operations, contingent
liability, operations of subcontractors, completed operations, Broadening Endorsement
. including contractual liability insurance) together with an Owner's Contractor's Policy with
limits against bodily injllI)' and property damage of not less than $2,000,000.00 fol' each
occurrence (to accomplish the above-required limits, an umbrella excess liability policy
may be used); and
(iii) Worker's compensation insurance, with slatulory coverage and employer's
liability protection.
(b) Upon cOlIlpletion of construction of the Minimum Improvements and priOl' to the
Termination Date, the Redeveloper shall maintain, at its cost and expense, and from time to time
at the request of the Authority shall furnish proof of the payment of premiums on, insurance as
follows:
(i) Insurance against loss and/or damage to the Minimum Improvements under a
policy or policies covering such risk as are ordinarily insured against by similar
businesses, including (without limiting the generality of the foregoing) fire, extended
coverage, all risk vandalism and malicious mischief, boiler explosion, water damage,
demolition cost, debris removal, and collapse in an amoWlt not less than the full insurable
replacement value of the Minimum Improvements, but any such policy may have a
deduclible amount of not more than $25,000, No policy of insurance shall be 50 written
that the proceeds thereof will produce less than the minimum coverage required by the
prC\;eding sentence, by reason of co-insurance provisions or otherwise, without the prior
consent thereto in writing by the Authority. The term "full insurable replacement value"
. shall mean the actual replacement cost of the Minimum Improvements (excluding
foundation and excavating costs and costs of1lllderground flues, pipes, drains and other
uninsurable items) and equipment, and shall be detennined from time to time at the
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request of the Authority, but not more frequently than once very three years, by an
insurance consultant or insurer, selected and paid for by the Redeveloper and approved by
the Authority. All policies evidencing insurance required by this subparagraph (i) with
respect to the Minimum Improvements shall be carried in the names of the Redeveloper
and the Authority as their respective interests may appear and shall contain standard
clauses which provide for Net Proceeds of insurance resulting from claims per casualty
thereunder to the Minimum Improvements to be made payable jointly 10 the Authority
and Redeveloper. The Authority and the Redcweloper shall jointly agree on the amount
of settlement. ~
(ii) Comprehensive general liability insurancc, including personal injury liability
(with employee exclusion deleted), and aUlomobile insurance, including owned, non-
owned and hired automobiles, against liabilily for injuries to persons and/or property, in
the minimum amOWlI for each occurrence and for each year of $2,000,000.00, for public
liability and shall be endorsed 10 show the Authority as additional insured,
(iii) Such other insurance, including workcr's compensation insurance respecting
all employees of the Redeveloper, in such amount as is customarily carried by like
organizations engaged in like activities of comparable size and liability exposure;
provided that the Redeveloper may be self-insured with respect to all or any part of its .
liability for worker's compensation.
(c) All insurance required in Article V of this Agreemenl shall be taken out and
maintained in responsible insurance companies selecled by the Redeveloper which are authorized
under the laws of the State to asS\lIl1e the risk covered thereby. The Redeveloper will deposil
annually with the Authority binders evidencing all such insurance, or a certificate or certificates ,
of the respective insurers stating that such insurance is in force and effect. Unless otherwise .<
provided in this Article V oflliis Agreement each policy shall contain a provision that the insurer
shall not cancel or modify it without giving written notice to the Redeveloper and the Authority
at least thirty (30) days before the cancellation or modification becomes effective. Not less than
fifteen (15) days prior to the expiration of any policy, the Redeveloper shall furnish the Authority
evidence satisfactory 10 the Authority that the policy has been renewed or replaced by another
policy conforming to the provisions of this Article V of this Agreement, or that there is no
necessity therefor under the terms hereof. In lieu of separate policies, the Redeveloper may
maintain a single policy, blanket or umbrella policies, or a combination thereof, having the
coverage required herein, in which event the Redeveloper shall deposit with the Authority a
certificate OT certificates of the respective insurers as to the amount of coverage in force upon the
Minimum Improvements,
(d) The Redeveloper agrees to notify the Authority immediately in the case of
damage to or destruction of, the Minimum Improvements or any portion thereof resulting from
fire or other casualty. In the event of any "partial" damage or destruction (as opposed to
"substantial damage", as defined below), the Redeveloper will forthwith repair, reconstruct and .
restore the Minimwn Improvements to substantially the same or an improved condition or value
as existed prior to the event causing such damage and, to the extent necessll1j' to accomplish sueh
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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.
The Redeveloper shall complete the repair, reconstmction and restoration of the
Minimum Improvements, whether or not the Net Proceeds of insurance received by the
Redeveloper for such purposes are sufficient to pay for the same. Any Net Proceeds remaining
after completion of such repairs, eonstruction and restoration shall be remitted to the
Redeveloper.
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(e) In the event that the Minimum lInprovements, or any Phase thereof, are
substantially damaged destroyed, the Redeveloper in lieu of rebuilding the Minimum
Improvements, or the phase, shall have the option of entering into an agreement with the
Authority and City pursuant to which the Redeveloper agrees that the outstanding amount of the
Bonds will be reassessed against Ihe Parcel on which the Phase was destroyed and agrees that the
timely payment of the amounts so reassessed shall again be the personal obligation of the
Redeveloper, subject to release as herein set forth. The amount of the Assessments to be
reassessed shall be the amount of the Assessments that were terminated and discharged pursuant
to Section 3,5, less any amounl that had been paid subsequent to the temrination of the
. Assessments under Section 3.5. The Redeveloper shall also secure the agreements of any holders
of any interest in the subject Parcel subjecting their interests in the Parcel to the lien of the
Assessments, For pUJposed thereof, the term "substantially damaged or destroyed" shall mean
any damage or destruction which renders fifty percent (50%) or more of the rentable square
footage of any Phase untenentable.
Section 5.2. Use of Insllr',"ce Proceeds, Notwithstanding anything to the contrary
contained herein, the rights of the AUlhority hereunder in and to any insurance proceeds paid or
payable upon damage to or destruction of any part of the Minimum Improvements shall be
subordinate and junior to the claim or rights therein of the holder of any mortgage encumbering
the part of the Minimum Improvements with respect to which such proceeds are payable.
Section 5,3. Condemnation In the event that title to and possession of the Minimum
Improvements or any material part thereof shall be taken in condemnation or by the exercise of
the power of eminent domain by any governmental body or other person (except the Authority or
the City) prior to the Tennination Date, the Redeveloper shall, with reasonable promptness after
such taking, notifY the Authority as to the nature and extent of such taking. Upon receipt of any
Condemnation Award, the Redeveloper shall elect to either: (a) use Ihe entire Condemnation
Award to reconstruct the Minimum Improvements (or, in the event only a part of Minimum
Improvements have been taken, then to reconstruct such part) within the Tax Increment District;
or (b) have the Assessments reassessed against the affecled Parcel and assume the obligation to
pay such Assessments as described in"Section 5.1(e).
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ARTICLE VI
Payment of Assessment.., Tax Jner"ment
Section 6,1. Payment of Assessments (a) The Bonds will be sized and issued based on
the assumption tbat the Redeveloper will construct the Minimum Improvements and the owner of
the AmberJack Property has constructed the Prior Improvements and that such improvements
will have Market Values equal to or greater than the Market Values sel forth in SectioD 3.6(c) of
this Agreement. The Redeveloper agrccs thaI, subject to the limitations contained in this
subsection (b) below, it will pay when due and prior to the imposition of penalty the-principal
amount of and interest on the outstanding amount of the Assessments, Such obligation shall be a.
personal obligation of the Redeveloper and shall be in addition to any other remedy available to
the City under State law relative to the enforcement of the lien of the Assessments against the
Redevelopment Property, subject to release of such persona1liability as set forth in section 8.2(b)
hereof. In the evenl that the Redeveloper fails to pay when due any installment of the
Assessments the Authority or the City may take any legal action deemed appropriate to collect
the unpaid installment and shall be entitled to recover all of its costs of collection, including
reasonable attorneys' fees. In addition, if the Redeveloper fails to pay an installment of the
Assessments with respecl to any Parcel within sixty (60) days after written demand by the
Authority, the Authority or City may declare the entire outstanding Assessments on such Parcel
immediately due and payable upon which the Redeveloper shall be liable for the entire principal .
amount of the outstanding Assessments, together with accrued interest until the same is paid in
full. J"he obligation of the Redeveloper 10 pay the Assessments as provided in this Section 6.1 of
this Agreement shall be absolule and unconditional irrespective of any defense or any rights of
setoff, recoupment or counterclaim it might otherwise havc against the Authority or any other
government body or other person. The Redeveloper shall not fail to make any required pa)'lllents
for any cause or circumstances whatsoever, including any change in law, Unavoidable Delays, .
or any other event even ifbeyond the control of the Redeveloper, subject 10 subsection (b) of this
Section 6.1.
(b) The Redeveloper's personal obligation to pay the Assessments as set forth in this
Scctio"n 6.1 is predicated upon the Redeveloper's understanding and assumption that it will be
able to construct the Minimum Improvements without delay due to certain types of causes
beyond its control. Therefore, the Redeveloper's personal obligation to pay Assessments when
due under this Section 6.1 shall be subject to suspension in the event that the Redeveloper is
unable to construct in a timely manner a Phase due to the unanticipaled discovery of conditions
affecting the Redevelopment Property which prevent or delay the construction of the Minimum
Improvements, such as the discovery of adverse environmental conditions on the property that
were not disclosed by the testing and assessments referenced in Section 3.3(a)(vi), The
Redeveloper's personal obligation to pay Assessments may also be suspended in the event that
the unanticipated actions of third parties directly render the Redeveloper unable to construct the
Minimum Improvements in a timely manner or directly result in the prohibition of such
construction. J"he Redeveloper's personal obligation to pay Assessments shall not be subject to
suspension due to any other reason including, without limitation, adverse market conditions, .
inability to oblain financing, acts of Redeveloper's lenders, prospective lenders, tenants,
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transferees, or prospective tenants or transferees or the Redeveloper's failure to obtain necessary
governmental permits or approvals except for the City's or Authority's failure to grant approvals
necessary to carry out the Redeveloper's development as set forth in plans that the City and
Authority have approved. In order for the Redeveloper 10 be entitled to suspend its personal
obligation to pay the Assessments due to a delay as described above, il must within ninety (90)
days after first learning of the cause of the delay, notify the Authority in writing describing the
cause for the delay and describing the actions that Ihe Redeveloper intends to take to eliminate
the cause of the delay. The Redeveloper shall diligently take all reasonable action to attempt to
eliminale the cause for the delay. If the Redeveloper's personal obligation to pay the
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Assessments are entilled to be suspended due to a delay described above, the obligations shall
only be suspended for a period of time equal to the period of time that the Redeveloper is
actually delayed, If an excused delay relates only to a portion of the Redevelopment Property
and not to the entire property, the Redeveloper's obligalionto pay Assessments shall be
suspended only with respect to the Assessmenls levied on the portion of the property the
development of which has been delayed,
The relief that may be accorded to the Redeveloper under this subsection extends only to
the Redeveloper's personal obligation to pay the Assessments and the Authority's right to
accelerate the Assessments under this Section 6.1 and shall nol affect the timing of payment of
. the Assessments, and the Assessmenls shall remain due and payable as special assessments, in
accordance with their terms, against the Redevelopment Property.
Section 6.2. Tax Tnerement Certification, The Tax Increment District has been established
and the County auditor of the County has certified the original tax capacity of the Tax Increment
District pursuant to Minnesota Stalutes, Section 469.177.
Section 6.3, Real Propetty Taxes, The Redeveloper agrees that prior 10 the Termination
Dale it will not take any of the following actions to the extent that it would reduce the Market
Value of any Parcel of the Redevelopment Property below the minimum market values to be
cstablished in the Assessmenl Agreements pursuant to Section 6.5: (1) il will not seek
administrative review or judicial review of the applicability of any tax statuto determined by any
Tax Official to be applicable to the Project or the Redeveloper or raise the inapplicability of any
such tax statute as a defense in any proceedings, including delinquent tax proceedings; (2) it will
not seek administrative review or judicial review of the constitutionality of any tax statute
detennined by any Tax Official 10 be applicable to the Project or the Redeveloper or raise the
unconstitutionality of any such tax statute as a defense in any proceedings, including delinquent
tax proceedings; (3) it will not cause a reduction in the Market Value of the Redevelopment
Property below the Minimum Market Value set forth in the Assessment Agreement to be entered
into pursuant to Section 6.5 through: (A) willful destruction of the Redevelopment Property, or
any part thereof; (B) willful refusal to reconstruct damaged or destroyed property pursuant to
Section 5.1 oftbis AgJ:eement, except as otherwise contemplated herein; (C) a request to the city
asscssorofthe City or the county assessor of the County to reduce the Market Value of all or any
e portion of the Redevelopment Property; (P) a petition to the board of equalization of the City or
the boatd of equa1ization of the County to reduce the Market Value of all or any portion of the
Redevelopment Property; (E) a petition to the board of equalization of the State or the
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commissioner of revenue of the State to reduce the Market Value of all or any portion of the
Redevelopment Properly; (F) an action in a DistricI Court of the State or the Tax Court of the
State pursuant to Minnesnla ~tatutes Chapter 278, seeking a reduclion in the Market Value of
the Redevelopment; (G) an application 10 the commissioner of revenue of the State requesting an
abatement ofreaJproperty taxes pursuanl to Minnesota Statutes, Chapter 270; and (H) any other
proceedings, whether administrative, legal or equitable, with any administrative body within the
City, the County, or the State or with any court of the State or the federal government, The
Redeveloper shall not, prior to the Termination Date, apply for a deferral of property tax on the
Redevelopment Property pursuant 10 Minnesota Statutes. Section 469.181. -.
Section 6,4, Use oCTax Increment. (a) The Redevelopment Property is located in the Tax
Increment District. Excepl as provided in subsection (b) of this Section, the Authority shall be
free to use any tax increment received from the Tax Increment District for any putpose for which
such increment may lawfully be used pursuant to the provisions of the Act and the Tax Increment
Act, and the Authority shall have no obligations to the Redeveloper with respect to the use of
such increment, except as expressly set forth herein,
(b) In the event thaI the value actually given for real property tax PllIposes to the
Prior Improvements and Amberlack Property is higher in any year than the minimum market
value established for such property in the Assessment Agreement relating to such property, the .
additional Tax Increment generated in such year as a result of such higher value shall be used by
the Authority in accordance with this subsection. Such additional Tax Increment shall be used to
pay the following costs in the following order:
(i) First, the Authority shall reserve the additional Tax Increment to be used to pay
any amount of the cost of the 14th Street Improvements or the Highway 96 Improvements for
which the Authority has insufficient proceeds oflhe Bonds to do so. The Authority shall have no
obligation to use such additional Tax Increment for any other pllIpose unli! the Authority has
determined the amount of all costs of the 14th Streel Improvements or the Highway 96
Improvemen15,
(ii) Second, the Authority shall 'reserve the additional Tax Increment to be used to pay
any amount of the cost of the West Round Lake Road Improvements that is not assessed against
properties benefited by such improvemenls.
(ill) Third, to reimburse Amberlack and the Redeveloper for its payment of special
assessments for the West Round Lake Road Improvements in the order and as described in
Section 3.6 of this Agreement.
(iv) Fourth, the Authority shall use such additional Tax Increment to reimburse the
Redeveloper for its payment of any installment of the Assessments. Such reimbursement shall
only be made at such time as the Authority has determined that no costs described in (i) or (ii)
remain to be paid. The Authority shall only be obligated to reserve the additional Tax Increment .
generated in years that Assessments are outstanding on the Redevelopment Property. At such
time as there are no Assessments outstanding with respect to the Redevelopment Property, the
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.
Authority shall be free to use any additional Tax Increment for any purpose the Authority deems
appropriate.
Section 6,5. A~~es~ment A~eement (a) Prior to the commencement of the construction
of any Phase, the Redeveloper and the Authority shall enter into an Assessment Agreement,
substantially in the fonn of the Assessment Agreement contained in Schedule C of this
Agreement. The Assessment Agreement shall establish a Minimum Market Value for the Phase
and Parcel on which the Phase is to be constructed and shall continue in effect until the
Termination Date. The Minimum Market Value for each Phase shall be based on the
Construction Plans for $UCh Phase and shall be reviewed and approved by Ihe CountY Assessor
of the County as reasonable. On or before October 14, 1997, the Redeveloper shall cause
AmberJack to enter into an Assessment Agreement, in a fonn acceptable to the Authority,
eslablishing a Minimum Market Value of $4,721,300,00 for the Prior Improvements until the
Termination Date; provided that the execution of such an agreement shall be a condition to the
issuance of the Bonds and commencement of the Public Improvements and not an Event of
Default hereunder.
(b) It is intended that the Assessment Agreement for each Parcel and for the
AmberJack Property shall be binding on the Redeveloper, its lenders, transferees, their
. successors and assigns, and the owners of any right, title or interest in such property until the
Tennination Date. Therefore, with respect to any Parcel and the AmberJack Property, the
Redeveloper shall cause to be executed and recorded against the subject property such
agreements as the Authority may reasonably require from Redeveloper's lenders, transferees or
third parties agreeing that their interests in the Redevelopment Property are subject to the tenns
of the Assessment Agreement. The securing of such agreements relative 10 the Redevelopment
Property shall be a condilion precedent to the reduction of the Assessments on such Parcel
pursuant to Section 3.6. The securing of such agreements relative to the AmberJack Propeny
shall be a condition precedent to the issuance of the Bonds and the letting of contracts for the
Public Improvements.
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ARTICLE vn
Mnrtl'age Financiol'
Section 7.1. Financins:, No later lban October 14, 1997, the Redeveloper shall provide to
the Authority a commitment from a lending institution (or other reasonable evidence of the
availability of financing) to provide financing sufficient for construction of al least 100,000
square feet of the Minimum hnprovements, and no later tban April I, 1998, the Redeveloper
shall close on such financing. --
Section 7.2. I.imilation Upon Encumbrance (If Property. Subject to Section 8.2 of this
Agreement, prior to completion of construction of a phase on a Parcel, neither the Redeveloper
nor any successor in intercsllo the Redevelopment Property, or any part thereof, shall engage in
any financing or any other transaction creating any mortgage or other encumbrance or lien upon
the Parcel or Phase, whether by express agreement or operation of law, or 6Uffer 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 Phase on the Parcel (including,
but not limited to, land and building acquisition, including the purchase price paid, labor and
materials, professional fees, fees and COSIs associated with obtaining construction and permanent
financing, real estate taxes, construction interest, organizational and other indirect costs of
development, costs of constructing the Phase, and an allowance for contingeneies); and (b) only .
upon the prior written approval of the Authority, which approval shall not be unreasonably
withheld and shall be deemed to have been given if the Authority fails to respond, in writing
specifying the reasons for disapproval, within ten (10) days of a request for approval from
Redeveloper, For the purposes of such mortgage financing as may be made pursuant to the
Agreement, the Redevelopmenl Property may, at the option of the Redeveloper (or successor:!n
interest), be divided into several parts or parcels, provided that such subdivision, in the
reasonable opinion of the Authority, is not inconsistent with the pmposes of the Redevelopment
Plan and the Agreement and is approved in writing by the Authonly.
At such time as the option agreement referenced in Section 4.3(b) has been recorded
against the Redevelopment Property as an encumbrance prior to and superior to all other
mortgages, liens or other encumbrances other than those to which the Authority may agree in
writing, the Authority agrees that the provisions of this Section shall no longer be effective and,
requested by the Redeveloper, the Authority will execute an amendment to this Agreement
deleting this Section 7,2.
e
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ARTICLE vm
Prnbihitinns Afainst A~sigJlment and
Transfer, Indemnification
Section 8. J. Representation as to Redevelnnment The Redeveloper represents and
agrees Ihat its purchase of the Redevelopment Property, and its other undertakings pursuant to
the Agreement, are, and will be used, for the purpose of development of the Redevelopment
Property and not for speculation in land holding, The Redeveloper recognizes that, in.yiew of (a)
the importance of the redevelopment of the Redevelopment Property to the general welfare ofthe
community, and (b) the substantial financing and other public aids that have been made available
by the City and the Authority for the pUIJlOse of making such redevelopment possible, the
qualifications and identity of the Redeveloper are of particular concern to the community aud the
Authority, The Redeveloper further recognizes that it is because of such qualifications and
identity that the Authority is entering into the Agreement with the Redeveloper, and, in so doing,
is further willing to accept and rely on the obligations of the Redeveloper for the faithful
performance of all undertakings and covenants hereby by il to be performed,
Section 8.2. Efohibition Against Transfer ofPm;perty and AssilP'ment of Ajp"eement. (a)
e For the foregoing reasons Ihe Redeveloper represents and agrees that prior to the completion of
construction of a Phase, except only by way of security for, and only for, the purpose of
obtaining financing necessary to enable the Redeveloper or any successor in interest to the
Redevelopment Property, or any part thereof, to perform its obligations with respect to making
the Minimum Improvements or under this Agreement, and any other puxpose authorized by the
Agreement, the Redeveloper (except as so authorized) has not made or created, and that it will
not, make or create, or suffer to be made or created, any total or partial sale, assignment"..
conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with
respect to the Agreement, the Redevelopment Property, or any part thereof or any interest
therein, or any contract or agreemenl to do any of the same, without the prior written approval of
the Authority, with such approval to not be unreasonably withheld, delayed or conditioned.
(b) Notwithstanding the foregoing to the contrary, prior to or after completion of a
Phase the Redeveloper may consolidate with or merge into another entity or sell or otherwise
transfer to any person, all or any part of its interest in the Parcel or Phase and thereafter be
discharged from liability hereunder to the extent of the interest so transferred, if (i) the
Redeveloper is not in default of any of its material obligations under this Agreement, (il) the
transferee enters into a written agreement assmning the Assessments and all of the obligations of
the Redeveloper under this Agreement not retained by the Redeveloper, if any, in form and
substance reasonably acceptable to the Authority, (Hi) the transferee has experience in
perfonning obligations of the type imposed on the Redeveloper under this Agreement, and (iv)
the transferee is either (A) approved by the Authority, which approval shall not be unreasonably
withheld or conditioned (and ifnot given or denied within thirty (30) days after request therefor
e shall be deemed to be given), or (B) has a net worth of $5,000,000 or more, computed in
accordance with glIDerally accepted accoWlting principles. in which event such transferee shall
not be subject to approval by the Authority, If the proposed transferee or assignee does not meet
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-------.-.--..--.---...- ----.--...--------.-------- -.------
.
the foregoing net worth requirements, the Authority shall consent to the proposed transfer in the
event that the proposed transferee provides a financing commitment, letter of credit or other
credit enhancement acceptable to the Authority in its reasonable discretion or otherwise
demonstrates to the Authority, in its sole discretion, that such transferee has, or has access to,
financial resources necessary to complete the development as required herein of the Phase or
Parcel which is proposed to be transferred and otherwise to perform the obligation of the
Redeveloper herein as to such Phase or Parcel. In the event of a consolidation, merger or sale in
accordance with this subsection the Redeveloper shall be discharged from liability hereunder
with respect to the interest transferred and shall not be liable for any actions of th9., successor
entity or purchaser or have any liability under tbis Agreement with respect to matters arising
subsequent to such consolidation, merger or sale which relate to the interest so transferred.
Section 8.3. Aporovals, Any approval required to be given by the Authority under this
Article VITI of this Agreemenl may be denied only in the event that the Authority reasonably
detennines that the ability of the Redeveloper to perform its obligations under this Agreement
will be materially impaired by the action for which approval is sought,
Section 8.4, Release and Indemnification Covenants. (a) Except for any willful
misrepresentation or any willful or wanton misconduct or negligence of the following narned
parties, the Redeveloper releases from and covenmts and agrees that the Authority and the
governing body members, officers, agents, servants and employees thereof shall not be liable for .
and agrees to indemnify and hold harmless the Authority and the governing body members,
officers, agents, servants and employees thereof against any loss or damage to property or any
injury to or death of any person occurring at or about or resulting from any defecl in the
Minimum Improvements, excluding any Public Improvements on or about the Redevelopment
Property.
(b) Except for any willful misrepresentation or any willful or wanton misconduct or
negligence of the following narned parties, the Redeveloper agrees to protect and defend the
Authority and the City and the governing body members, officers, agenls, servants and
employees thereof, now or forever, and further agrees to hold the aforesaid harmless from any
claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever,
other than the Redeveloper, arising or purportedly arising from this Agreement, or the
transactions contemplated hereby or the acquisition, construction, installation, ownership, and
operation of the Minimum Improvements, excluding any Public Improvements on or about the
Redevelopment Property.
(c) The Authority and the governing body members, officers, agents, servants and
employees thereof shan not be liable for any damage or injury to the persons or property of the
Redeveloper or its officers, agents, servants or employees or any other person who may be about
the Redevelopment Property, Adjacent Property or Minimum Improvements due to any act of
negligence of any person other than the Authority, its governing body members, officers, agents,
servants and employees. .
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(d) All covenants, stipulations, promises, agreements and obligations of the Authority
contained berein shall be deemed to be the covenants, stipulations, promises, agreements and
obligations of the Authority and not of any governing body member, officer, agent, servant or
employee of the Authority in the individual capacity thereof.
--
.
.
.
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--- .---..-- - --------- --------
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ARTICLE IX
Events nrDefault
Section 9.1. Events of Default Defined, The following shall be "Events of Default" under
this Agreement and the term "Event of Default" shall mean. whenever it is used in this
Agreement (unless the context otherwise provides), anyone or more of the following events:
(a) Failure by the Redeveloper to pay when due any payments required .to be paid
under this Agreement.
(b) Failure by the Redeveloper to reconstruct the Minimum Improvements or to
exercise its option to have the Assessments reassessed against a Partel as described in Sections
5.1 and 5.2 of this Agreement,
(c) Failure by the Redeveloper to obtain financing for constIUction of the Minimum
Improvements or provide evidence that the Redeveloper has sufficient funds committed for such
purpose pursuant to the terms and conditions of Section 7.1 of this Agreement.
(d) Failure by the Redeveloper to commence and complete construction of the .
Minimum Improvements, or portions thereof, pursuant to the tem1S, conditions and limitations of
Article IV of this Agreement.
(e) F allure by Redeveloper to observe or perform any other covenant, condition,
obligation or agreement on its part to be observed or performed hereunder.
(f) The Redeveloper does any ofthe following: (i) file any petition in bankruptcy or
for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or
similar relief under United Stales Bankruptcy Laws or any similar Federal or State Laws; or (ii)
make an assigmnenl for the benefit of its creditors; or (Hi) admit, in writing, it inability to pay its
debts generally as they become due; or (iv) be adjudicated, bankrupt or insolvent.
(g) There occurs a default by the Redeveloper under a Mortgage or other instrument
securing Redeveloper's financing permitted under this Agreement, the Holder of such Mortgage
exercises its remedies as a result of such default, such exercise of remedies adversely affects the
Redeveloper's interest in the Redevelopment Property, and tbe Redeveloper does not cure the
basis for the default.
Section 9.2, Authority's Remedies on Default Whenever any Event of Default by
Redeveloper referred to in Section 9.1 of this Agreement occurs, the Authority may suspend its
performance under this Agreement until it receives assurances from the Redeveloper, deemed
adequate by the Authority, that the Redeveloper will cure its default and continue its
performance under this Agreement, and may take any one or more of the following actions after e
providing thirty (30) days written notice to the Redeveloper of the Event of De faull, but only jf
the Event of De fault has not been cured within said thirty (30) days, or if the Event of Dc fault is
29
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by its nature incapable of being cured within said thirty (30) days, the Redeveloper does not
provide assurances to the Authority, deemed satisfactory to the Authority in its reasonable
discretion, that the Event of Default will be cured and will be cured as soon as reasonably
possible:
(a) Terminate this Agreement.
(b) Withhold the Certificate of Completion.
(c) Declare immediately due and payable by the Redeveloper the a:o:iount of the
Authority's assistance which has not been recovered by the Authority from Tax Increment, which
amount shall be calculated as provided in Section 5. 1 (e) of this Agreement.
(d) Take whatever action, including legal, equilable or administrative action, which
may appear necessary or desirable to the Authority to collect any payments due under this
Agreement, or 10 enforce performance and observance of any obligation, agreement, or covenant
of the Redeveloper under this Agreement.
(e) If the Eveot of Default consists of the Redeveloper's failure to pay the
Assessments as described in Section 6.1, the Authority may also declare due and payable the
e outstanding amounl of the Assesmlents as described in Section 6.1, subject to the provisions of ,
Section 6.1(b).
Section 9,3. No Remeily Exclu..~ive No remedy herein conferred upon or reserved to the
Authority or Redeveloper is intended to be exclusive of any other available remedy or remedies,
but each and every such remedy shall be cumulative and shall be in addition to every other.
remedy given under this Agreement or now or hereafter existing at law or in equity or by statute.
No delay or omission to exercise any right or power accruing upon any defaull shall impair any
such right or power or shall be construed to be a waiver thereof, but any such right and power
may be exercised from time to time and as often as may be deemed expedient. In order to entitle
the Authority or the Redeveloper to exercise any remedy reserved to iI, it shall not be necessary
to give notice, other than such notice as may be required in this Article IX. 1bis Agreement shall
be enforceable only by the Authority, the City, and any public body which is a successor of the
Authority.
Section 9.4, No Additional Waiver Implied bv One Waiver. In the event any agreement
conlained in this Agreemenl should be breached by either party and thereafter waived by the
other party, such waiver shall be limited to the particular breach so waived and shall not be
deemed to waive any other concurrent, previous or subsequent breach hereunder.
Section 9.5. ('.osls of Enmrcemenl. Whenever any Event of Default occurs and, after
expiration of the applicable cure period without cure thereof, the Authority shall employ
e attorneys or incur other expenses for the collection of payments due or to become due or for the
enforcement of perfozmance or observance of any obligation or agreement on the part of the
Redeveloper under this Agreement, the Redeveloper agrees that it shall, within thirty (30) days of
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.
written demand by the Authority, pay to the Authority the reasonable fees of such attorneys and
such other expenses so incurred by the Authority.
--
. .
.
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ARTICLE X
Additional Provisions
Section 10.1. Renresentatives Not Individually Liable, No member, official, or employee
of the Authority shall be personally liable to the Redeveloper, or any successor in interest, in the
event of any default or breach or for any amount which may become due to the Redeveloper or
successor or On 3ny obligations under the terms of the Agreement.
-.
Section 10.2. Restrictions on Use, The Redeveloper agrees for itself, and its successors
and assigns, and every successor in interest to the Redevelopment Property, or any part thereof,
that the Redeveloper, and such successors and assigns, shall devote the Redevelopment Property
to, and only to and in accordance with, the uses specified in this Agrc<:ment and shall use such
property solely for the uses specified in this Agreement.
Section 10.3. Provisions Not Mer~ed Wilh Deed. None of the provisions of this
Agreement are intended to or shall be merged by reason of any deed transferring any interest in
the Redevelopmenl Property and any such deed shall not be deemed to affect or impair the
provisions and covenllJJ.ts of this Agreement and all such provisions shall nm with the land and
. be binding upon and inure to the benefil of the parties hereto and their successors and assigns.
Section lOA, Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of the Agreement are inserted for convenience of reference ollly and shall be
disregarded in construing or intetpreting any of its provisions.
Section 10.5. Notices and Demands. Except as otherwise expressly provided in this'
Agreement, a notice, demand, or other communication under the Agreement by either party to
the other shall be sufficiently given or delivered ifit 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 pmonally to the
Redeveloper at 8200 Nonnandale Boulevard, Suite 200, Bloomington, Minnesota 55347-1060;
and
(b) in the case of the Authority, is addressed to or delivered personally to the
Authority at 1450 West Highway 96, Arden Hills, Minnesota 55112, Attn: City Administrator;
or at such other address with respect to either such party as that party may, from time to time,
designate in writing and forward to the other as provided in this Section.
Section 10.6. Disclaimer of Relationships The Redeveloper acknowledges that nothing
contained in this Agreement nor any act by the Authority or the Redeveloper shall be deemed or
. const:r:ued by the Redeveloper or by any third person to create any relationship of third-party
beneficiary, principal and agent, limited or general partner, or joint venture between the
Authority, the Redeveloper or any third party.
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.
Section 10.7. Modifications This Agreement may be modified solely through written
amendments hereto executed by the Redeveloper and the Authority, The Authority and the
Redeveloper will consider any requests for modification of this Agreement, but neither party
shall be obligated to agree to any requested modification,
Section 10.8. Counteqlarts, This Agreement is executed in any number of counterparts,
each of which shall constitute one and the same instrument
--
Section 10.9, Judicial Intemretalion. Should any provision of this Agrecment require
judicial interpretation, the cowt interpreting or construing the same shall not apply a presumption
that the terms hereof shall be more strictly construed against one party by reason of the rule of
construction that a document is to be construed more strictly against the party who it$elf or
through its agent or attorney prepared the same, it being agreed that tbe agents and attorneys of
both parties have participated in the preparation hereof.
Section 10,10, Wae-e ~ntl Job Goals. (a) The Authority has delennined that its
undertakings with respect to the Project and the Tax Increment District pursuant to this
Agreement are for the purpose of redeveloping the Project area and are not for economic
development or job growth purposes. Therefore, it is the opinion of the Authorily that the
provisions of Minnesota Statutes, section 1161.991, are not applicable. However, in the event .
that it is determined by a cowt or other governmental entity with jurisdiction to make such
determination that Minnesota Statutes. section 1161,991, is applicable, the job and wage goal to
be met for such putpose shall be one (1) new job paying a wage no less than federal or State
minimum wage, whichever is higher. The Redeveloper understands that if Minnesota Statutes.
section 1161,991, is determined to be applicable and the Redeveloper fails to meet such wage and
job goals within two years from the date of this Agreement, it will be required to repay the
assistance provided by the Authority under this Agreement, in accordance with Minnesota
Statutes, section 116J.991. Also, if Minnesota Statutes, section 116J,991, is delermined to be
applicable, the Redeveloper will provide, upon request by the Authority, evidence showing its
compliance with the requirements of this Section and Section 116J.991.
.
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-- - -
e
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in
its name and behalf 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,
ARDEN BILLS ECONOMIC
DEVELOPMENT AUTHORITY
By
Its
By
lIS
WELSH DEVELOPMENT
COMPANY,LLC
By
Its
By
e Its
STATE OF MINNESOTA)
)ss.
COUNTY OF )
The foregoing instrwnent was acknowledged before me tbis _ day of ,1997,
by and , the and the
of the Arden Hills Economic Development Authority, a public body
politic and coxpornte, on behalf of the Authority.
Notaxy Public
STATE OF MINNESOTA)
)ss,
COUNTY OF )
The foregoing instrument was acknowledged before me this day of ,
1997, by and , the
and of Webh Development
Company, LLC, a Minnesota limited liability company, on behalf of the limited liability
company.
e Notary Public
34
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SCHEDULE A
Description of Redevelopment Property and AmberJack Property
Redevelopment Property:
--
City Property
AmberJack Property: e
A-I e
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--
.
SCHEDULE B
Description ofthe Public: Improvements
14th Street Improvements
u
West Round Lake Road Improvements
. Highway 96 Improvements
.
B.I
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SCHEDULE C
-
ASSESSMENT AGREEMENT
and
ASSESSOR'S CERTIF1CATION
By and among
ARDEN HILLS ECONOMIC DEVELOPMENT AUTHORITY e
WELSH DEVELOPMENT COMPANY, LLC,
and
COUNTY ASSESSOR OF THE COUNTY OF RAMSEY
This document was drafted by:
BRADLEY & DEIKE, P.A.
5100 Eden Avenue, Suite 306
Edina, Minnesota 55436 e
C-l
<:I"d 61'0l. lZ6 <:19 'I;!'d '3>113(1 '8 A3lOl;!~ 8G:S1 l.661-61-d3S
.
TmS AGREEMENT, dated as of this _ day of .1997, by and between the
Arden Hills Economic Development Authority, a body politic and corporate (the "Authority")
and Welsh Development Company, LLC, a Minnesota limited liability company (the
"Redeveloper").
WITNESSETH: that
WHEREAS, on or before the date hereof the Authority and Redeveloper have entered
into a Development Agreement (the "Agreement") regarding certain real property located in the
City of Arden Hills, pursuant to whieh the Authority is to provide certain assistaiice to the
Developer relative to the Developer's development of such property, hereinafter referred to as the
Redevelopment Property and legally described in Exhibit A hereto; and
WHEREAS, it is contemplated that pursuant to said Agreement the Redeveloper will
constrUct an office/warehouse development on the Redevelopment Properly; and
WHEREAS, the Authority and Redeveloper desire to establish a minimum market value
for said land and the improvements to be constructed thereon, pursuant to Minnesota Statutes
Section 469.171, Subdivision 8; and
. WHEREAS, the Authority and the County Assessor for the County of Ramsey have
reviewed the preliminary plans and specifications for the improvements which it is contemplated
will be erected.
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. Commencing on January I, 199-, the minimum market value which shall be
assessed for the land described in Exhibit A and the above described improvements shall be not
less than Dollars ($ ).
2. This Agreement shall terminate in its entirety on the Termination Date, as defined
in the Agreement.
3. This Agreement shall be promptly recorded by the Redeveloper. The Redeveloper
shall pay all costs of recording.
4. Neither the preambles nor provisions of this Agreement are intended to, nor shall
they be construed as, modifying the terms of the Agreement between the Authority and the
Redeveloper.
C-2
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.
5. This Agreement shall inure to the benefit of and be binding upon the successors
and assigns of the parties.
ARDEN HILLS ECONOMIC
DEVELOPMENT AUTHORITY
By
Its
By -
Its
WELSH DEVELOPMENT
COMPANY, LLC
By
Its
By
Its .
STATE OF MINNESOTA)
)ss.
COUNTY OF . )
The foregoing instrument was acknowledged before me this _ day of _. 1997; by
and . the and
of the Arden Hills Economic Development Authority, a public body
politic and corporate, on behalf of the Authority.
Notary Public
STATE OF MINNESOTA)
)ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of .
1997, by and . the
and of Welsh Development
Company, LLC, a Minnesota limited liability company, on behalf of the limited liability
company. e
Notary Public
C-3
vV'd 6VU .!.G6 c:t9 '~'d '3>1I3a '3 A31(1t1l:!!1 6G:St .!.66t-6t-d3S
-
.
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CERTIFICATION BY COUNTY ASSESSOR
The undersigned, having reviewed the plans and specifications for the improvements to
be constrUcted and the markct value assigned to the land upon which the improvements are to be
constructed, and being of the opiniOll. that the minimum market value contained in the forcgoing
Agreement appears reasonable, hereby certifies as follows: The undersigned assessor, being
legally responsible for the assessment ofthe above described property, certifies that the market
values assigned to such land and improvements upon completion of the improvements are
reasonable.
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County Assessor for the COlll1ty
of Ramsey
STATE OF MINNESOTA)
)ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of ,
. 1997, by the County Assessor for the County of Ramsey.
Notary Public
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EXHIBIT A
Legal Description of Land
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