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HomeMy WebLinkAboutCCP 09-22-1997 ",Wf~ .~":~.~",'."\I;""Y~lP'i~<~'C. '~]f),,:,,~';"'~'1'!'1II~~!~~<_.><>-:r:',,;;.;;~~f";"'~-'-<-"~~-;::-~, ,_ . ,,,,,,,,,,,,,' "':""""''''''''''''''''';'''FJ'[''E:;' 'j;:'?!, ~.--~ - - AGENDA =. . 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 - I 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 I" 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 I I 9:30 P.M. 4. Adjourn I The above times may vary depending upon length of issue discussion. ~ \1 M:\USERSISHEILA \COUNCILIAGENDAS\SPECIAL\SP9,22,AG 1 I ~'---_. - - ~ -- - CITY OF ARDEN HILLS :. MEMORANDUM . DATE: September 19, 1997 . TO: Mayor and City Council ~ FROM: Brian Fritsinger, City Administrat I SUBJECT: Administrator Comments for the September 22, 1997 Special Council I Meeting - 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. I BF/sls M:\USERSISHElLA \COUNCILIADMlNCOMISPECIAL\9.22CNCL. WPD . . . .. . I' .... < :- 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 I ------------ - I . . 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, ~ . - -- ... ' I . . 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 .. . I . 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. . I 3. Snow storage easement required on the north side of Gateway Boulevard (plan I -. 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 . I 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. I ------- I 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...". .. . I 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. I I - I I . Ie I I I I . . I .. I ------- - - -- ---- - ~ E~ot1 A .'.~~ ' ' I .. GATEWAY BUSINESS CENTER I I . , Northeast Ouadrant , of Interstate 35W . I and 694 , ,I , . ,. Arden Hills, I Minnesota >1 . tJ , . . - I I , I - . . I 821.Raymond Ayenue . .. Suite 100 St. Paul, Iv[N 55114 . . " t,<,j CIVll. ENGINEERING lANDSCAPE ARCHITECTURE I ENVIRONMENTAL SERVICES URBAN PLANNING f' 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{~ ~ 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 "3/'ij 'I - I 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 - 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. . . I 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). .. ~,,,,,,,,,wm,,'". L",...i.'~..~I"l'~":I(fl\!"ll'l\t; , LW~O''''''''','''''''''' l'R:U'S.I"l'A"'.;J',I; . . U)",,;,!ll.l:CYJO,", .~I'...'u:f:.~ I "('IS I ~ 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. I I . I I fI HKS ASSOCIATES, INC. Page 2 GATEWAY BUSINESS CENTER September 17, 1997 for Welsh Development Co., LLC ~."'u"'''''"''" . lX"lhC\I'f i\Il':iUlf_<_Tnli I . . . ""'" ""','"'' ",,,,CO> . rIlB.\:'- l.t.~""I:>OQ , .r.;j)"~ljl.t'r-r1<l" 'l.l1H'lCES ' . --- -- ---- ---------.--------- 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 ~"'HL"L"'''''L 1._'''I'','':'''!'_,\~':llrn_'.111U . L"~ m\" "~.,, r.,;. ~l' H\' 1(1'..' '-;'''''''''_\;'0.''''''(' . .~:~"'''''''~,r..... o>...,'I",."IIV".~L1Hl\:f.> I f,(Cl5 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. I . I -- HKS ASSOCIATES, INC. Page 4 GATEWAY BUSINESS CENTER September 17, 1997 for Welsh Development Co., LLC ~."'''''''''''"'''" J.,\~P''',,''! .~"d1'n'.I(Sf . . l<-,,'r~("'''''~l.\'. ~n"'l,~1:5 l'ItI'.\:O<P'-""'"'' .. - ... ' ':.H;"IlI~' n,,," ~~M'l<:f.' 7/'1r' 'I 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 I HKS ASSOCIATES, INC. Page 5 GATEWAY BUSINESS CENTER .. September 17, ] 997 for Welsh Development Co., LLC ~.."''''''''''''''''''. 1.\....!,~l."'1...U1ullll.crn<.l ".~'rll,:'_';\lf"l:,\:,"t::l\'RT:' . tK.'.\" i'l_\~"l....r, .~."..,..t ,~",,j.), \,::,'."'.l('r;","~:,~'lf;f:" I 'e(~>, 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. I I it HKS ASSOCIATES, INC. Page 6 GA TEW A YBUSINESS CENTER September 17, 1997 for Welsh Development Co., LLC ~''"'''.".''''.'''''. . '. . l"""",:"",~.,'l: "'~'_'.')'lf.< H'l<lc 1(';~'Il<<"_'Il~~r.\'. "'nIl "'P' I '.111; 1.." I"_\..~l.',;. , , """'lu:u:-r,,'.' <T:W-(n'~ -------------- qlv~ I . 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 I I I HKS ASSOCIATES, INC. Page 7 GA TEW A Y BUSINESS CENTER .. September 17, 1997 for Welsh Development Co., LLC ~'''''''''''u'''' 1..'''l'-"(,'''',,,.jl,:JtirU'-rrlil.' '. 1'''''l,U.~,'lI'.-''I;\C ,""11\'10':_1'''' l;lt'"""I..,_",,,r. I .. ' t,)""',,, ,'!I<'" 'H"~I'_:H ---- I' l.t{'f:~ 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. 1 1 tI HKS ASSOCIATES, INC. Page 8 GATEWAY BUSINESS CENTER September 17, 1997 for Welsh Development Co., LLC 100m",,,,,,,,,,,,,,, ' . '"''"''' ",,,m.,,uu'.. 1 . l!"~r\l."'''''1!'.'''''''l.~UI\Ir..i'.'I' l'Mlh...I.'_'L......I...r. ' ~ ..'.'.."l~.~l'_ l:.;....-"':nl.n'~... 'I'~jnlt:l;S "1'1r' I 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 I I I HKS ASSOCIATES, INC. Page 9 GATEWAY BUSINESS CENTER .. September 17, 1997 for Welsh Development Co" LLC lI:I{S nn' "",,<,"'" . . 1..,"r..... v' Ulltnt:, n t<l I..'.',,''':.'''',..,' ,. ;,.,~.",'h t-IUI.\' "L'~'.:."" I ~"''''''';'-'--;',.t'''''r'''_'~b''tn':_'' _11,/'1< 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. . I I t' HKS ASSOCIATES, INC, Page 10 GA TEW A Y BUSINESS CENTER September 17, 1997 for Welsh Development Co., LLC ~w,u,,,."''''''. I..l..,l>\('.-\/'t:.",at;f\fn:crnu: . . ,"'M""''''' "",,"" l'~f;."', "1_._~'1,"'" , . "),,.I~~I.'_Tl,,;o._~~l>.,I<:C'i -~ ')/~ I . 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 - 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 -- September 17,1997 for Welsh Development Co.; LLC ~ ,m', ,,,,,,,,,,,,. l.\"I,~'_Vl', A~l'l1nl"'-l'l'lU . f."..\ ;a":"_\lf~n.t: ~~K\ln:~ . " ~;,~.. "1.\.,:,-,:0;.. , n",,.,,,'n':<_I,,.~E)l."lCF$ I I''l('{~ 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. I . I I . I I f1j. HKS ASSOCIATES, INC. Page 12 GATEWAY BUSINESS CENTER September 17, 1997 for Welsh Development Co" LLC ~nm""""""M , i,.~"r>,".u'r ..Jl.:mUCl H"tU: I .. .,,,,,,,,,.,,,,,,,,.,,..m . 1'1",.,;0. "I S".' 1"'-' . . I:P'....H:lITI"'. ~U4~"'~..... JIi/,/S I DEVELOPMENT DATA I PLAN'..'i' ~ ....,,::.:...... ~" .. 'i" 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 -- 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) I I I I I I HKS ASSOCIATES, INC. Page 13 GA TEW A Y BUSINESS CENTER .. September 17, 1997 for Welsh Development Co., LLC ~'''''..'''''''''''o 1""."H"C~I'f. 'LJI1;"',n......rnu. . _ ~.~"H<,ul'.\Il<.o.'..nL ~1'Jn'tf:t:~ l'~:l.\:- ",.\..:-1."11. I ' t ...,"~.l tl.l .rfl'~:'-"_ ~12Jl~ ICf.~ I l'(cf< I LOT COVERAGE f' T .nTIRT ",'",:: ';',7,': """"'" "";"",,,';',',,' .... "t"'i>""" 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 ~".""".,."'"'''' l_'",;lh'.'.'l'~: ..uu,<tnv.(:H'IlL' . f.;-.;.ll\..,...-\lL"<!',U ~.t:.Kn{"f::" l'"" I." 1',_\:'<I,~','i. ..t..:..:.."L'.....~',...... ~:.."-:,.,('...r;\)...-.~I''''h:~S I'/'I~ I I COMBINEDDEVELOPl\1El'!':[',{LO':['S);2aod 3)j'i,!2';:'J,:"~,"'<":"'!; :;".';... ....,. . ,'.'.....,.,..,.. '.i'...... -- 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 . .' ,,,.,~.,,,"'nnm.,, ~.:-,'~'ll\<I'.'lt':O;I,'1. .~lCM\-Ub . I-ll.~.\:'< 1'1.~s;<;i."lG . ,;,'''';IK,{:n,}''.,'i~IHlCfS I IS(c.f~ 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 ~,,,,,.,,,q,,..,,, . ""."", ""C,,""" l"~ l.",,,\),":'n.\~_ -<"11\'J('1..~ . \.1;.<.1,."1.....,,1';<.. ,-,......,:l<. en<'" ~tj<\lt_t.\ , '/,/, , I 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 I I I ~"""L"""""'". .. .. ... L"',"," ,,,,,,,,,m. .r:,"'illt<',,~a:""I'.\L "JI:N.nCli~ . . ('IUU:'O'I'I.~'i~J'G . . 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" I" "l~ ~ . ,tN . -- -------- P: \97030 - Gateway lo4aster\IJAAWINGS\PHJj.A5 Thu Sep 18 09: 55: 41 1997 HKS Associates, tnc. 16121 659-9132 '1/ (y.~ I I , II..... ;J> I - ~, ~ ~ Vl I ~.... r"'"l - - b!'" - I - 0:"'" t-..) - , ~ i j - - , - I , - I i - I I , I I , I I I !In I ill! [I ,II! .! . I. /0 I II .. ~ !! ~ r I I ! ~ r 1 ! "' I ! ~H I ~ ~Ij I i fa) I .; ~{~ . J_, , r~ 1 .'. : III r: i: .. :1 I I! I - . . . . . , , , . . . I . ... . . . , , . . 0 , , . . II ~ . . , > ~ ..... " I I ~g~ ~ !I ,,'" ~ t ~=t1 "" . n I ' ~ ~ M ~ I ~~ ~ ~ I .' ~ ~ r I ' 1> :z , M 2 .. .. ! I'll." ... hi.l.' -.0 , ' ~ , ~ ~~, ~ t " ;. , I~ ~ I I - - . , Ir! l , c . , , - n J.....I. ... -i , , . ~ i It,., : l~ ~ . , . . - I _____________n_.__ I W: \PAOJECTS\97030 - Gatewav'Ma5ter\DRA~rNGS\PH4Y5 Tl'lu Sep 18 13: 33: 35 1997 HKS Associates, Inc. 16121 659-9732 I l(Z(t.if'i I I it , --.- --'-. -'-- , i . "~1 , i . h ~ (:~' I i ~" ~ "') t ",. " ~ .\ .' ~~- ~ I ~ II uo2:t> ~ U:::C! If) , 0> AI m , ~~ g~-~ I I I lIP illl / Iii I .." ! I "'1 , - - ., I t u I !a ::u , II" i .. ,J I h~ ~i ... '''' r!. .. '" III I n \ H \:'-. I , .- ---- -. -. -- I \\~ - / -" / \ \ /1 ;' I ~ ' to' ~ M < -~ , [_,,_nn . . ~ ", . .. C f~ g, t -C <=l." ~ . ~ D.~ , , . u I ~X~ ,~ , ':;:0 I :,,,~ ~- 0' o ~ , I:":Z ....~ . -" / I I l<:.:l ~... ~ '1''' . ~ ~ n ~ ~g n ". , ~ ,- n ~[ . I I ~ . I ~ . fi':l 1 I .--, ~ , : I I ::A E ~ !~ ~ ~ r I ' , , I ~ 2: I r 0 - M ~ I ,,!~! .1 Ill::' ..., ,0 ~ ~Ii ,. " .. iI . ! . I~ ~. ~ in 'c.-i ;1.'::;" 'f I "'~ iiiis 1- ;: lo! i . c , r !~ n -- .... m;i . !~~ '::~:' iOiO !! " I' " mn .. I ,-I'- . ::l.ll ;:l;:l ;:~~~;: " IPROJECTS\97030 - -Gateway'M I a5t~r\ORA:1'I1NGS\P H4 PS Ttl _ u Sep 18 l3.: 3]' 56 . 1997 HK SAssociates I . nc. (5121 659-9732 , , , ! I I I I I I il I , I ! ,,' , II . .' .... ...." I ' . . . .. ,,' . : -: : . i . .' . . I , III . " . I ~ ~a! . . : ::::: ,,' I ! 'il ' .: -:' -: -: . . Ii .:' ," .-:...-:,,-:., I ! . 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I I V'I(Cf( W: \PAOJECTS\97030 ~ Gateway Haster\ORAWINGS\PH.4Y5 Tnu Sep 18 13: 34: 11 1997 HXS Associates, Inc. 16121 659-9732 I it , -- , // , /" '~l , ' I II: / i I !;,/ , \ ,~. CO' ! I ..., , UJ i ~ ...." j ,. ..- l ;;: I " , " '" ~ " 0 I I I I I I I I lIP I h!1 III I I :Oi' ! ... :.11 - il'! Illl! I i ~ II" I~l .. ,I ! fd ~l ... '''' n f!1 Hi . I . n ~ \ rl I I - I I - " ; I ... I ;' I . I I a \ ~ . ~ , . , , . ! ..0( e... ,. I ",~o:I E~ . ~~ 5i =<!i . . .. z .,.i .I I f<:;l l5 ! ~ . _ n . o ~ , I ~ , ~ .: { ", , I , , , I I -e! !.. ~ I II I i r & & ~ n z ~ 0 ~ ~ Xii l!i:: ... i hill" . 0 i ~ ; !I' ,;' ~ ~ 8 j . % ~ ~ IO! I - ~ , c n ItN . l~ ~ ,,";, I I' ~ ,./'0. - -- -.--.-- . 9.46 1997 Hl<S Associates, Inc. (6121 659-97]2 VSl'fr I \DRAW rNGS\PH4j.A5 Thu Sep 18 09. 2 . P: \97030 - Gate...ay Haster , I I . ,I , I I .. . J . . \ , I I I ! ~ -/ / . , r ~ h" "I' , i I , "'-" '~/' \ "';' , ~ P /' I -- ':/:' /' " , \ < \ ""011"'" I \ , 6~~~':! " p.OlllM , " I p.O<lO'<i \ , , ------. 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"l '! ;JI~~~ ~ ~ i ~ ~ I ~~ E Iii r ~~~~ " ~ ~ :< m ~ ~ c ~ ~<J~~ R R ~~i'l .. - ~ ~ ~~t~ (j ~g~!, ~ ~ nl 0 i~n ~ ~i!" ffi ~ 3~ (fI m -lr r ;ll ~ ill 'l'l~ r ~ OO~ illiiiO ~~ ~;!"'''I U~ ~~~ ..~~ I)lffi~l)l, mOm m fw-<f .. l> ::<" m I=\vol= II _ i!l !l"~" ~r<' ~~ :I" ~g" _ m rr 2 ;ll g -<-< m .. .. 1\ " u I .. ~ 3 ill ~ .. I 2/, ~ I it I I ~ ~ , &'..rtl. .. <4- 2'..2" I .. Z '!I'.2" ij; l> : (;\ ~ m 2'-e." I <! 1"1- - - ~ 'I Qf; ~~ ~ " ,. I \ ~ I 11Z~~t:::l I ..-3t?::1 ~ \ \ 1 t?::I UJ ~ t:t:j I I ~8 iflZ I I I l--< t?::I .J I I I I ') 1'1. , I L- __ ~ ~al~" U , Ie L .J i "P:I~ ~-ffi I ~ !a~~ i ~ l'~_~ "- .~~~. ~ I r N 6~~~ ~ 2~!n ~ m l>~ ~~~~ ~ hi~ ~ ~~a~ I ~ '" r I I I l>:J!c"l I !!!~ ~l>~~ i'Ilu;~ 'l!lll~'l!' i :s:~-{!; 028 <~... F\P~F h~ . !!l~ {;.... (p I -:t""'m ~9~ ~ .., m if 1> .. w ~~ ~ - ir.. .H .. lli .-:- U ~ I I I I ~ ~ I ;;, Z I OJ ):>. "(0 I -;" m I 15'-,,- "l - 2'.8" &" 9'-2" 4~ 2'.2" 11-__ , I I I r(J > II~&:~~ I I I 11~@t=:o .". ;1 I I 11~~rt:rj "! I I I ~::::~U2Z I I L.1- - - r 1 ) I ~ ~ il!....Ill ~ III '! ;J!~U ~ ~ ~ ~~~~ s ,.. m m "~~i~ Hi l' I m ~ ~. nt ~ nt ,.. ~ ffi02~ il! il! il! J!!B~g >- - iIi ~ ~u~ IJ ~ ~ia~ M ~2~~ ~ I i~rnijf ~ ~E :>: oijf~ ~ ill ~ ~ .mil! ,.. ~o ~ I J I In ilI-O ~~ ~U>-I I I mOl ~!; f!;~ OI~~ :<!!l!!l S!ffi~!2. m ~~i~ p. :<..~ ,.. ,.. ill ",. '" ~,.... /;F :t>- ~~t ~ ill ~ ~~ .. .. ~ 8 I I ;;- .. d ~ 3 ill i " >- >- EitR",.,.. 0 ''1' I 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. - I I I .. I I I I I I I tI I -- W: \PROJfCTS\97030 ~ Gate....ay Master\DRAliiINGS\SASE.p5 Thu Sep 18 13: 19: 03 1997 HKS Associates. Inc. 16111 659-9131 ,/, 'I ." I , -- ~ ~~:":..: - ..:~~.~ ~: ,.:~::' .::::::~~~~~: =.~:~:~. - ~:~~_:~:_. ~. :.~_:~~ ........h......_.h_...__ - "_' h_ .. . __. '''h..n. .' , , 'I I I , I I Iii I I I' . I i 1 I, j i I I I .' , I ..'/ , / I ! ~ ,/ " If rp " {I' ~ J I ~ ~ .' ~ W " I ~ I ~ : :, I .I ~.. i I ~ I : j iil I II' f "I tJ hi ;u ,0- ., ili , ,: [1 0, I " I, I I 0 ~~ #.' I " ( ,. ~ ~'I' , ,I .e>' $, , or I #...,." '.,' I '.'.'. I . if : 4,1>> /" - i jl t .,,,,.,,,4t"""'" ':"" '( ;..., . , ~,'1';i;I,;,li,liili,ilil iii!, ~,_ ..J ; , , I i I ..! '$ ~ : I : ~ -:~ I r E" " r; , n z I . ~ 2 i . I II: ii klll ...8! ' ; l' , -- I .Iol , . n , I.J::>. . l~~ I J' : ,0 . I -------- _____.____._n____ ------ -----.-- --- --- -'-- ~ --" '-"-- - ,,---,. -- --- -- - - - x. ' W BENSHOOF & ASSOCIATES,. 0 I 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 I FAX NO.: qJ,3 -733'1 I LIST OF ENCLOSURES: COP1 ~t Ollr l'I.~o ""14 Ko"",j L,J..... 1Z0,J JJ,)' I ~ -ar.UJ........"J,llo... .~ G.S-,....'Y ~IIJ:"<.l~ (fA./-.r OC-eN/Mi" .... D,.., ~ 'ZJ....;.., h,~ )\Lu.,...i'Z,cJ lolS J,.. r-ov{J.. y..... \NO{ . _~ llou...,.. Y~oJ. A,-su,'kJ CtJ..ru...r..., ,\~r.) .t Rl f.. r...,rove.....e.....I-.r, I :r:.' ILr~ J.o u..,t So~J./-. ,.7r~" .u.>t:~ ....,...1<.. I I I I I THIS TRANSMITTAL IS BEING SENT BY:_P<..Jv- )./"h,I'r.t'J I IF YOU DO NOT RECEIVE 7 PAGES, INCLUDING THIS SHEET, ~ PLEASE CALL 612/832-9858. ~ I -.---------.- I' ..........:;;,.0 G>c:.. t..;:;lnu.....,... <.:< M':;'':'U\~" C",,;. ..1......-::.... .;)......U.... r- "'-''::..J "-', I BENSHOOF & ASSOCIATES, INC. 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. t' I --- --- ---' --- - ,................., "'......' ........ ....'-' ........... ''-'' ,............ ,-.,. ,-,-,,-,.-, ',10 I I COUNTY HIGHWAY 96 I -- ( 422 I r 6 523 ) 31 ~ I r 1 Cl I tj 104 47 0:: tJ ~ ~ I ;:) ~ I I N I t 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 I ---- I ..__..... w. ......_., ................... ....... .~, "-"-" .... . .--..........-. -'-- -~- .--' , - 'lIp 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 t' I ..___ '_, A __ -' --. -- ,~. ''-'~. --~_. -~- --- -~-, . - - - -I Sl,o 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, I I I 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. -- I --- ~'-, '-" .--......, ~,. .~-- -" --- --- --- ,-- - ,-- "-. .......' -., -- I' r (ofp ., I it I I COUNTY HIGHWAY 96 I -. ( 422 I r 15 523 ) " I 79~ r 1 1 Cl ~ 211 96 a: Ie ~ :5 I ~ :::i ?f I 1 N I t I NOT TO SCALE ... .... I r " FIGURE 2 .., 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 \.. ...,j I "'.ow..... '-', ....-.-, ...-';:;'':;' c.c.'1-=-n...our <..:< M..J..J'-"~, 0....::.. ....yO;" ....__0..... (-'-" ..... 'I 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. I I ~ I . I I I I I I TOTAL P. 07 -- I ----.-- ---- -----.- ---- - - ------ I' ,..,.....u~...._-....J;;.,J, ....."-' ........ .L;i(;;.'...;on,......r <...< r-'....;,..."-"..., c.:......,;. 0....,;;;, :;1..;..0..... r.'-'J.-............ 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 . 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 Ie "\,IltA..~t. c~ rD'; /-..o",or"""c-J. J.. ~O".J L,t.... A.,.,J. ( I 7/, If. .,If M.t ;C 0,1001 t.....,.. 7 rvltJ./M$ or- CA....""'.,....h-' f I I I I I I THIS TRANSMITTAL IS BEING SENT BY: 'filer I!....I{-v(.., , .. IF YOU 00 NOT RECEIVE 3 PAGES, INCLUDING THIS SHEET, PLEASE CALL 612/832-9858. I n '.''-'<.J ~... ... __..., '-',~ ~... .................,.....'"', '-'- ,.....""'-' ~, ...,"'- ..........;.. ..-''-"..... , .....-, ........ '1 W 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 .. I 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 I I I I I I I Trip generation details were provided in a letter 10 Kevin Rillgwald dated June 23. 1997. rf' TOTAL P. 03 I 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 r 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 - 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 .. I -------- --- 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. -- I __n ..____._____ I 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 - 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 Ie I I I M:\USERSISHEILAIADMIN\PLANNINGlGBDlPURCHASE,MEM I I I I .. I fUtW".:&1 NCl.ej.el<.- PArcels PARCEL NOr:: A - . I l<b.:.Mo U\'4: ~ (;.t..\..J' ~.",.".) 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. I 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. I I 52Q/091-29C&.apr -- I ~ o,,~~"!::rA" I' Posl-lt" Fax Note It-! F/orr.:: r .-.Je'H~ I F.lt" F~'Il1 I ...00' . I P,w:a 2 7022 &.1. I - -, - r..ctt I oJ :rI i PAllaI. I I JI _as. ~y ~ UI!: OF tmllSTA'Il!: MWI'. 3eW I P"-'. PAllll:21.~ 1t375 sr. 2lI.5S< $I: I "'IM:IOTA TlI.VcsFu 1lA11.llolr I I ~ I I 0 100 I Ni091-1l REV, 5-27-97 GATEWAY [g~1XI0~lllf' I BUSINESS 1] DISTRICT . uumJ:l I - ~. -- ~ '. I 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 .. I <:0'd 6t'1Jl. l.C6 <:t9 . tJ. d '3>113<1 'g A3IOt:ICIEl aJ:l;:t l.66t-6t-d3S ......... . I 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 I 2 m.d 61>0<' l.C6 1:19 '~'d '~I3Q ~ A3la~a G0:D <.66t-61-d3S ....... . I .. 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. -. 3 I 1'0'd 6NU. .!Z6 <:19 .1:1. d '3)iI 3<1 'S "'3I<I~E1 1;:0:1;:1 1.661-61-cGS . I fI 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 I 4 S0'd 61>01. lZ6 G19 '\!"d '3>1I3a 'll .l.31Q~a: 1>0:1;:1 1.66t-6t-d3S -- ---.-- --.---------.---.--.- . I -. 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. -. 5 I 9O.d 6t>Ol. lZ6 GTS '~'d '3~'3a ~ A3;a~8 t>O:>:T l.66T-6T-d3S --.-...------- . I f' (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 I 6 roOd 6~ lZ6 2:i9 'I;:lOd '3>iI3CI 'g A3-.aI;:l~ S0:~i 1.66,-6i-d3S ---------------------- __n_.____________ _____.______n_______._._ - I 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 7 I 80'd 61>0lo loGE; c:'t9 . tI' d '3>f13Cl '8 A3-,atl<la S0;~'t lo66't-6't-d3S ---------------- - I it 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 I 8 60'd 6i'0lo loG6 2':t9 'tl.d '3>H3a '8 A3latlda 90:~t lo66t-6t-d3S -- ---- --- - I 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. 9 I 0rd 61'0<' a:6 <':19 '~'d '3~I3a ~ ^3la~a 90:~1 <.661-61-d3S - I 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 H'd 6NJl. 1.G6 cI9 'I;j'd '3)113a 'll A3'1<Il:1~a l.O:>:I 1.661-6I-d3S - I 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 -- 11 I <:l"d 6M'1<'. <'.C6 <:19 '~'d '~I3a ~ A3'~~a <'.o:n <'.661-61-d3S I ,- 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. I 12 ~t'd 61>01. l.G6 Gt9 'lj'd '3>tl3a '8 A3Lal:lda 80:~t 1.66t-6t-d3S I (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 I I I .. 13 I I>l:"d 61>0<. LZ6 cI9 '~'d '3~13a ~ A3la~~a S0:n l.66I-61-d3S I .- 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: I I I I I .- I 14 St'd 6t'1ll. 1.<:6 <:19 'l:j . d '3>U 3G '8 A3"la'*!a 60;[:1 l.661-61-cBS 91"d "1l:J.L0.l. I -. EXHIBIT A Legal Description of the Land I I - I I I I fill I I I I I I I -. I 91'd 61>0... .!Z6 219 . tj . d '3>1I3G 'll )'3"1atj<lEl 60:>::1 l.661-61-d3S I~ 1 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 I < I I - I I I . ~ I - .-- _m__ -- I ) , . '" .'.' 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. I ~ I . '\.. " .. I 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 I I I I '" . I ,,~ - 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- I 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> - .t --,~~","~- -->.~.~~- '.."":';~ ,.~,...,:",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 . - ~ -. .--- . - . 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. ------ c- ----- . . 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, . -..-....------ . 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 -- -- , 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 80:Si 1.66i-6i-d3S "" . 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 . (i) m'd 61>0l. .1.2:6 2:19 "l:j'd '3>U3a 'g ...~a 611:S1 L661-61-d3S - ------ . ARTICLE V Insurance and Condemnation Section 5.1. Insurance 17 Section 5.2. Condemnation 19 ARTICLE VI - - 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 '- 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 (ii) . to(J'd 6t'01. 1.C6 c19 '~'d '3~13a ~ A3~~ 6();Sl l.661-61--d3S -- e 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 e TESTIMONIUM 33 SIGNATURES 33 SCHEDULE A Description of Redevelopment Property SCHEDULE B Description of Public hnprovements SCHEDULE C Assessment Agreement "". e (ill) S0'd 6t'0l. 1Z6 2:19 'I;j . d . 3)11 3<I '8 ^31Qt1~ 60:S1 .!.661-61-d3S . 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 90'd 6~Ol. LZ6 Z't9 '1;1' d '3>H3a 'll A31(!I:I<lEl 60:S't 1.66't-61-d3S e 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: e . e 2 l.0"d 6l>0L l.G6 Gt9 '~'d '3~I3a ~ A3lO~a 0t:St l.66t-6t-d3S ---- -" ---- . 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. . 3 80'd 6t>O.!. .!.<:6 <:19 'I;:j'd '3>113<1 'g A3-.atlC!E1 Ol:Sl .!.661-61-d3S ---- . "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, 4 GO'd GPOOl. aG c:t9 'l:f'd '3)H3Q '8 ^:na~a H:St l.6Gt-6t-d3S --.- . "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. -. "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. . 5 Ot"d 61>0l. l.G6 Zt9 '\J'd '3)H3a 'g ^3"l(!\J~ tt:St l.66t-6t-d3S e "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. e e 6 H'd 61>01. 1.G6 <:t9 . t:I' d '3>fl30 'jl A3Iat:I~ -.-- H:St l.66t-6t-d3S - . 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. . 7 Gt'd 61'01. 1.G6 Gt9 .l;I'd '3)113a '8 ^3'1a~a Gt:St l.66t-6t-d3S --- e (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 $2Q,OOO.OO, . 8 Lt'd 6N'll, l.G6 Gt9 "tt'd '3>1I3Q '8 A31Ott1:la Gt:St ~66t-6t-d3S . ARTICLE UI Acquidtion ofProverty:. puhlic Imnrovpmp.nb Section 3.1. Status ofPrllPertv. The Redevelopment Property consists of several Parcels of property owned by multiple owners. The Redeveloper has enlered into purchase agreements with all of the owners of the Redevelopment Property. One of the Parcels of the Redevelopment Property is the City Property which is OWned by or is proposed to be acquired by the City. The City and Redeveloper have entered mlo the City Purchase Agreement under which the" Redeveloper is entitled to purchase such property, The Redeveloper shall be respoo$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 9 I'.'d 61'0.'. lZ6 c.9 '~'d '3~I3a ~ A3Ia~~ (.:S. .'.66.-6.-d3S - . (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 10 Sl'd 6t'01. 1.1:6 1:19 'I:!'d '3)lI3G '8 A31a1:!l:lll t1:S1 1.661-61-d3S -- . 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: It 9t"d 6Nll. l.G6 1':i9 '~.d '3~I3a ~ ^3lQ~~ vi:Si l.66i-6i-d3S . (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 12 lord 6N31o lZ6 <:1:9 'l;:!'d '3>tI3a 'S A3l<Il:!l:le S1::S1: l.661:-61:-Cl3S . (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. , 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 13 81.d 61>0lo lo.o6 .ot9 '\:I'd '3)tI3a '3 A3'la~a SI:SI l.661-61-d3S - .,.- - . 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, - - . , . 14 6t"d 6to0l. /..;<:.6 Zl9 'l;j'd '3>tI3C1 'S A31C1l:1l:l6 9l:Sl 1,66l-6l-d3S - --" m . 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 IS 0C:'d 61'0l. lZ6 2:t9 '~'d '3~I3a ~ A3Ia~~a 9t:St l.66t-6t-d3S . 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 16 tc'd 61>0l. l.c6 ct9 'l;;1'd '3>iI3a '8 A3l<1\:JClEl lot :St l.66t-6t-d3S . 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. . . 11 ,:G'd 6N31. lZ6 <:19 "l;'d '3>1130 '3 A3l(jt:l~ 1.1:S1 1.661-61-c:l3S . 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 18 ~'d 6N'l1. l.G6 <:19 'I;j'd '3)1130 '8 A3I(II:l<lll 8t:St 1.661-61-d3S . 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 19 t'c'd 61'01. 1.G6 c~9 't:J'd '3>1130 '8 )'3lCItli:la 8t :St 1.66t-6t-<135 ------.-.--- . 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. ':. (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). . 20 SG'd 6to01. a6 c:t9 'tj'd '3>H31l 'il A3lill:lOla 6t:St l.66t-6t-d3S . 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, 21 9C:'d 6vel. 1.C:6 c:.9 '~'d '3~I3a ~ ^3la~a 6.:St 1.66t~6t-d3S . 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 -- 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 22 <.G'd 6NIL. <.G6 <:t9 't1'd '3>113<1 'g A3'l<Il:I<lS: o<:,St L.66t-6t-d3S - ------- - ------- . 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 23 81O'd GN'l1.. I..GG 10,9 '~'d '3~t3a ~ A3la~~a ,,,,s, I..GG,-G,-d3S -------.------.- . 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. e 24 6C:'d 6v0l. lZ6 c:'t9 'I;j'd '3>H30 '2 A3l(lI;j~ 'tc::s't 1.66l-6't-d3S . 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 25 OC'd 6l'Ol. 1.<:6 <:,9 .~'d '~13a ~ ^3lO~~a "oS, 1.66,-6,-d3S e 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 26 1E"d 6NJ<. <'<:6 <:19 't:J'd '3>iI3<I '8 A3l(lt:!ClEl u:St <.66t-6t-d3S -------.-.--..--.---...- ----.--...--------.-------- -.------ . 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. . 27 1;:~'d 61"01. 1.<::6 1;:i9 '~'d '3~I3a ~ ^31O~~a ~1;::Si 1.66i-6i-d3S e (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. -- . . . 28 ~~'d 6P0l. lZ6 <:19 . t:J. d '3)i 130 '8 ,l,3IatR:la l'<:.s. l.66.-6.-d3S --- .---..-- - --------- -------- . 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 t'>;'d 6Nll. lZ6 1:,9 'l;j"d '3)iI3<I '8 A3lGl:Ida t'1::S, 1.66,-G,-d3S e 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 30 ~'d 6t>01. lZ6 <:19 'tj'd '3>1130 'll A3latj~a S<::Sl 1.661-61-d3S . written demand by the Authority, pay to the Authority the reasonable fees of such attorneys and such other expenses so incurred by the Authority. -- . . . 31 9~'d 61'01.. 1..<:6 <:I9 'i:j'd '3>tI3<l '8 A3l(!~a S<::SI 1..661-6I-d3S ^_.~-- e 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. 32 l.~'d 6t'Ol. l.G6 0019 . l:;I' d '3>113<1 '3 A3lGtIC!a 9G:S1 l.66t-61-d3S . 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. . 33 Sl;:'d 6VOl. l.c6 ct9 '~'d '3~I3a ~ ^3lQ~~ l.c:st 1.66t-6t-cBS -- - - 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 ~'d 6\70l. lZ6 <:l9 't!' d '3)lJ3cr '8 A3'l(1tRla lZ:Sl L66l-6l-d3S - ------- e SCHEDULE A Description of Redevelopment Property and AmberJack Property Redevelopment Property: -- City Property AmberJack Property: e A-I e lav.d 6v0.1. lZ6 c,9 't:J'd '3)iI30 '8 A:no~ 8<::$, l.66 ,-6 ,-cBS -- . SCHEDULE B Description ofthe Public: Improvements 14th Street Improvements u West Round Lake Road Improvements . Highway 96 Improvements . B.I ll>"d 6l>Ol. l.c6 c19 't;I'd '3>tI3a 'll ^31at;l~ 8G:Sl 1.661-61-d3S e 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 . ~v'd 6v0.!. .!.C6 c:t9 '~'d '3~[3a ~ ~~a &:St .!.66t-6t-d3S ----..----- ------ . 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 - . e 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. -- 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 . C-4 SV'd 6v0.!. .!.G6 C:t9 '~'d '3~I3a ~ ^3~a &:St .!.66t-6t-d3S ----- --- . 9j>'d 1l:llO.l e EXHIBIT A Legal Description of Land -- e . C-5 9v'd 6ve.!. .!.G6 C:19 '~'d '3~I3a ~ A31a~ 6G:St .!.661-6 t-d3S