HomeMy WebLinkAbout2007-06-13 CC
CITY COUNCIL & WORK
SESSION MEETING
COUNCIL MEETING
lVednesday,June13,2007
6:30 p.m. wlWork Session to follow
L CALLTOORDER
1. RoD Call
U. PUBUC BEARINGS
1. Mr. Sambath Cheath, 7323 Deer Pass Drive, Request for Reduction in
Easemeat to AIIew COll8tradiea of a Beek (Pages 1...2)
m. APPROVAL OF AGENDA
IV. APPROVAL OF COlJNcn. MINUTES
1. May 23, 2007 City CouncO Closed Session Meeting Minutes (Page 3)
2. May 23. 2007 City CODeD Work Session Meetiq Miaates (page 4)
3. May 23, 2.7 City CouncD Meeting Minutes (Pages 5-12)
V. CONSENT AGENDA
1. City of Centerville May 24, 2.7 through June 13, 2M7 Claims (Page 13)
2. CenteIUIiaI FIre Departm.ent Claims tIIro.... JUDe 7,2807 (Paae 14)
3. Encroadunent Agreement, 1636 Dupre Road - Fence Construction in
DrainageIIJtiIity Easemeat (Pagel 15-22)
4. Encroadunent Agreement, 6851 Beaver Pond Way - Fence Construction in
DrainageIIJtIHty Easement (Pages 2J.3O)
5. Archaeological Research Services - 51,220 (Grant Requirement) (Pages 31-
32)
6. Res. #IG7-XXX - Authorizing the Mayor & City Administrator to Execute
the CDBG PartnersIaip Program Coop. AanemeM (Previously Modelled to
Approve - March 28, 2007, Housekeeping) (Page 33)
VL AWARDSJPRESENTATIONSlAPPEARANCES
1. Mr. John Golden, 1654 , ...keland Cire1e, Request for Encroadunent
Agr\aIeDt Anodated with CoDStracted Pool in ~..... (Paps 34-39)
VB. OLD BUSINESS
1. Res. m-xxx - AppNIatIac orOA Members (Pages 40)
2. Parks & Recreation Committee's Recommendation for Bid Options &
ResideDt Coaeems... JIiddep Spriaa Park, 1681 LaMotte Drive (Pages 41-
45)
vm. NEW BUSINESS
1. Res. 1187-XXX - V...... Part ofDraiDagelUtIIIty E......t oa Lot S, BIoek
1, Deer Pass (7323 Deer Pass Drive) (page 46)
2. C8D8ider OptIon Agreement for PurduJse.r 2085 Cedar Street BuIl4-.
**Available Prior to Meeting or at Meeting**
IX. ANNotJNCEMENTS/UPDATES
1. City A4D1inatrator, Mr. DaDas LanGn
2. CcmmaemonltIve Ite_ ror SesqaieeatemdaI (Update)
3. SUlDDler Meeting Schedule
:x. ADJOURNMENT
COUNCIL WORKSESSION MEETING
L CALL TO ORDER
1. RoD Call
u. ITEMS OF DISCUSSION
1. Developers Agreement (Downtown RHlevelopment - Beard Group)
m. ADJOURNMENT
* *REMINDERS* *
Council Meeting - June 27,2007,6:30 p.m. Council Chambers
Planning" Zoning Commission - July 3,2007, 6:30 p.rn. Council Chambers
Parks" Recreation Committee - July, 2007, 6:30 p.rn. Council Chambers
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Mot ~.
The City Council ofCenterville, Minnesota met in a closed session on Wednesday, May
23, 2007, at 8:03 p.m. in City Hall. Present were Mayor Mary Capra, Council members
Linda Broussard-Vickers, Michelle Lakso, Tom Lee and Jeff Paar. Also present were
Administrator Dallas Larson and Kurt Glaser, City Attorney and City Engineer Mark
Statz. The purpose of the closed meeting was for attomey-client discussion of pending
litigation involving a condemnation of property and to discuss possible purchase of real
estate.
The Council received an update from Attorney Kurt Glaser on the condemnation of
property from Sheehy Construetion. An ofter of settlement was reviewed,
The second item of business was to review details ofa poSSlDle real estate purchase. The
Council discussed the cost details and the benefits of purcluJairtg the property. The
Council agreed that they should view the property as soon as possible. Statfwill schedule
a viewing of the property within the next two weeks.
The meeting was reopened to the public at 8:40 p.m. This being the last item of business,
a motion was made by Broussard Vtckers to adjourn the meeting. Motion seconded by
Paar, all present voted in favor. The motion passed.
Dallas Larson, City Administrator
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city Council 2007-05-23, 8:45 p.m.
Minutes of Work Session
Present were Mayor Mary Capra, Council members Miehel1e Lakso, Linda Broussarc:l-
Vickers, Jeff Paar, and Tom Lee. Also present were City Attorney Kurt Glaser and City
E~ Mark Statz.
city Attorney Glaser reviewed the status of the developer agreement with Beard Group
for downtown redevelopment. He indicated that statt bad met with the developer and
their attorney last Thw'sday and had worked out nearly aU of the outstanding issues.
Glaser suggested that the Council schedule a work session to meet with the developer and
get a report on the major provisions of the agreement. Then the developer could be
excused and the Council could fi'eely discuss the issues and costs to the City. An
additional follow-up work session may be needed be to make sure all of the council
concerns are addressed. It is hoped that the asreement could be ready for approval by the
end of June.
The Council discussed the utility rates and a report prepared by John Meyer, Finance
Director. Meyer sugpsted that rates do not need to be raised at this time. While the
operating revenue does not fully cover all of the operating costs, interest and other
income do cover costs and provide a slight increase in retained earnings. The Council
expressed concern that not fully covering all of the operating costs could be a problem
later if interest income should drop. Staff' was directed to budget for small increase for
2008 in order to avoid larger increases later. In the area of stormwater utility charges, it
was sugested that the rates for commercial and industrial properties should be modified
to better recognize the amount of impervious surmce. This will be addressed as the
budget is prepared for 2008.
Administrator Larson presented options for sign types and possible locations for
C01IlIIlUIrity entry-welcome sips. This is one of the Council goals for 2007. It was
suggested that four signs might be constructed at the major entrances of the City.
Specifiailly they are on the east and west edges of the city along CSAH 14 and on the
south edge of the City along CSAH 21 and CSAH 54. Also recommended would be an
upgrade to the City Hall sip to include an e1ectrooic message board. A budget estUnatt
was presented indicating that these signs could cost between $25,000 and $35,000 each
depencJittg on the sip type selected and whether they would be lighted.
Adjourned at approximately 9:40 p.rn.
Dallas Larson
City Administlator
1
CITY OF CENTERVILLE
CITY COUNCIL WORKSESSION & MEETING
May 23, 2007
6:30 p.m.
Pursuant to due call and notice thereof, the City of Centervi1le held their regularly scheduled
meetfug on May 23,2007, at City Hall, 1880 Main Street.
PRESENT: Mayor Mary Capra
Council Member Tom Lee
Council Member Jeff Paar
Council Member Michelle Lakso
Council Member Linda Broussard
ABSENT: None.
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STAFF:
City Administrator Dallas Larson
City Attorney Kurt Glaser
City Engineer Mark Statz
I. CALL TO ORDER
Mayor Capra called the May 23, 2007, City Council meeting to order at 6:35 p.m.
ll. APPROVAL OF THE AGENDA
Mayor Capra requested the following changes: add Item 13a to Item 1 of the Consent
Agenda.
Mayor Capra verbalized the changes to New Business: add Item 1 Resolution #07-XXX;
A Resolution Declaring Adequacy of Petition for Improvement of Part of Old Mill Road,
add Item 2 Resolution #07~018; A Resolution Ordering Improvement of Part of Old Mill
Road. Item 1 will now be Item 3, Item 2 will now be Item 4 and Item 3 will now be Item
5, and add Item 6 Approval of Grant Agreement (DEED-Downtown Redevelopment.
Mayor Capra added Item 1 Status of 21 st A venue/Backage Road Condemnation to the
Closed Session agenda.
Mayor Capra deleted Item 3, Status of 21 st Avenue/Backage Road Condemnation from
the Work Session agenda and added Public Works Space Needs Alternatives.
Motion bv CouneD Member Pur. seconded bv CouneD Member Broussard. to
aDDrove the Henda as amended. AD in favor. Motion carried unanimousIv.
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City of Centerville
Council Meeting Minutes
May 23, 2007
m. PUBLIC BEARINGS
1. Proposed Improvements (Water Main. Sanitary Sewer. Street Pavement Curb.
Storm Sewer and Related Drainwze) of Old Mill Road - Hanza1 Addition.
Mayor Capra opened the public hearing at 6:36 p.m.
City Administrator Larson stated that the proposed improvements are for a portion of Old
Mill Road north of Revior Street. He reported that notices were sent to all affected
property owners. He commented that the purpose of the meeting was to decide if the
project should proceed. He stated that Council previously authorized advertisement for
bids and the preparation of plans and specifications.
City Engineer Statz explained that the improvements would take Old Mill Road from a
paved rural road with no utilities to a street with improvements such as sewer and water,
curb and gutter, and the ability to handle storm water ponding. He stated that sewer and
water would be stubbed out for the proposed Hanzal Addition. He reported that the
project starts at the north line of the Acorn Creek Development and finishes at the City
limits. City Engineer Statz indicated that there are no plans to stub or interconnect with
Lino Lakes. He clarified that no sidewalk plans exist for the project.
City Administrator Larson reported that there are five affected property owners. He
explained that the three properties owners on the west side of the road signed special
assessment agreement waivers of hearing and appeal and the two ten acre properties on
the east side received an estimate of special assessment in the amount of $97,932 each.
He informed Council that this is not the time to decide what the special assessments
would be.
Mayor Capra invited members of the audience to speak at this time.
Mr. Patrick Fruth, 7384 Old Mill Road, reported that a sewer was stubbed onto his
property 12 years ago. He stated they would need to sell and move out of the City
because they could not afford a $100,000 assessment. He commented that they have
lived there for 30 years and would not benefit from this project.
Mayor Capra questioned where the stub is.
City Administrator Larson pointed out the stub location on the site plan and stated that
the property might not have been specially assessed.
Councilmember Lee commented that the road is currently a cul-de-sac.
Mayor Capra clarified that there was not a sewer assessment at that time.
Discussion ensued.
Page 2 of8
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C~ of Centerville
Council Meeting Minutes
May 23, 2007
Mrs. Cathy Fruth, 7384 Old Mill Road, reported that when the sewer was stubbed in 12
years ago, it was to redirect traffic off Old Mill Road in anticipation of selling and
developing the property. She stated that the sewer and water is available to them on the
front and the back of their property. She stressed that there is no benefit to them and it
would cost them from $65,000 to $100,000.
Councilmember Paar asked Mrs. Fruth if they ever had plans to sell their property.
Mrs. Fruth replied that they did have it sold in 1999 and were stopped by the City
because the sewer and water system was not large enough to support a development at
that time as Rehbein was finishing his development. She stated that they have just
reinvested $150,000 into their property with the intention of retiring on their property.
She indicated that they feel they are being forced out.
Councilmember Lakso asked Mrs. Fruth what her plans are for the mandatory sewer
hookup in 2012.
Mrs. Fruth replied that she did not know and is waiting to see what the City decides. She
stated that she could hook up to City sewer now from the comer of their property and did
not understand why they should pay for the road assessment in front of the property.
Councilmember Paar stated that they were not technically assessed before.
Mrs. Fruth stated that they are zoned rural residential, one home per ten acres. She
believes that she is being assessed for imaginary lots.
Councilmember Paar informed Mrs. Fruth that the Pavement Management Plan was
approved in 2003-2004 and her road was slated to be done in 2009. He stated that it
would be much cheaper to pay the assessment now rather than in 2009.
Mrs. Fruth questioned why it would go past her property on their side of the road.
Councilmember Paar replied that when the Pavement Management Plan is implemented,
the entire road would be done.
Mrs. Fruth inquired about plans to go as far as Lino Lakes.
Mayor Capra replied that it had nothing to do with Lino Lakes.
Mrs. Fruth questioned if they would be double taxed for both the front and back if she
chose to develop.
Mayor Capra explained that the developer would pay for the expansion of utilities.
Councilmember Paar explained that the plan was put into place before Mr. Hanzal moved
to his property. He commented that these items are not always printed in the newspaper.
Page 3 of8
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city of Centerville
Council Meeting Minutes
May 23, 2007
Mrs. Fruth stated that they feel pressured to go along with Mr. Hanzal so he gets what he
wants.
Discussion ensued.
Mrs. Norma Essex, 7333 Old Mill Road, stated that at the first Planning and Zoning
meeting, Mr. Hanzal indicated that he would be connecting the water that drains directly
into the creek and hooking up to the storm sewer system. She questioned if that was still
the plan.
City Engineer Statz replied that it would be hooked up to flow into a pond rather than
directly into the creek.
Motion bv Council Member Lee. seconded bv Council Member Pur. to close the
Public Hearin!! at 6:55 p.m. AU in favor. Motion earried unanimousIv.
2. Amend and Restate Resolution #06-046. Establishinll an Economic Development
Authority ffiDA).
Mayor Capra opened the public hearing at 6:55 p.m.
City Administrator Larson reported that the purpose of this item is because Council
passed a resolution several months ago to require members of the EDA to be residents of
Centerville, and has since thought it might be wise to have the option to consider non-
residents or those who might be business owners within the City. He explained that this
resolution modifies the original resolution, giving Council the latitude and the option to
not select a resident for the EDA.
Discussion ensued.
Motion bv Council Member Pur. seconded bv Council Member Lee. to close the
Public Hearin!! at 6:57 p.m. AU in favor. Motion earried unanimousIv.
IV. APPROVAL OF COUNCIL MINUTES
1. Mav 9. 2007 City Council Meetinll Minutes
Mayor Capra made the following changes: strike the word "with" from front end loader
on page three of nine, item eight; add the word "Ice" to fishing event on page four of
nine, line seven; next sentence, to formalize the final bid; added "Gustafson Excavating
submitted the low bid of $218,721.25" to the motion on page eight of nine; and corrected
the spelling of parish on page nine of nine.
Page 4 of8
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City of Centerville
Council Meeting Minutes
May 23, 2007
Motion by Council Member Broussard. seconded by Council Member Lakso. to
aDDrove the May 9. 2007 City Council meetine: minutes as amended. All in favor.
Motion carried nnAnimousIv.
V. CONSENT AGENDA
1. City of Centerville May 10. 2007 throwzh May 23. 2007 Claims.
2. Centennial Fire Deoartment Claims through Mav 16. 2007.
3. Centennial Lakes Police Deoartment Claims through Mav 10.2007.
Motion by Council Member Broussard seconded bv Council Member Pur to
aDDrove the Consent Ae:enda as amended. All in favor. Motion carried
unanimousIv.
VI. A WARDSIPRESENTATIONS/APPEARANCES
None
VU. OLD BUSINESS
1. Commemorative Merchandise for Sesauicentennial (Tabled from Previous
Meeting)
City Admini~tor Larson directed Council to the Staff memo with a breakdown of
commemorative merchandise costs. He stated there is interest from businesses to
contribute to the commemorative items.
Discussion ensued.
Motion bv Council Member Lakso. seconded by Council Member Pur to direct
Staff to move forward with the Dins and fishine: lures. not to exceed a cost of $1.500
and to look for a SDonsor for the lures. Vote: 4 Aves. 1 Nav (Broussard) Motion
carried.
2. ProDosal of Mr. Randv Larson. Can Dad Camera. Sesauicentennial Photos
Mr. Randy Larson presented the new budget proposal for the Sesquicentennial photos. He
summarized that the costs of items one through seven and reported a total of $1427.00.
Discussion ensued.
Councilmember Broussard asked Mr. Larson if Can Dad Camera had insurance.
Mr. Larson replied he did not; however, the pilot carries insurance. He stated that he
would be raising prices significantly due to the need for new equipment and are-analysis
of the cost of doing business.
Page 5 of8
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City of Centerville
Council Meeting Minutes
May 23, 2007
Discussion ensued.
Motion bv Council Member Pur. seconded by Council Member Broussard. to
aoorove Can Dad Camera bude:et items 1. 3. 5. 6. and 7 with payment made as the
work is aeeomoUshed: Can Dad Camera to purchase e:eneral liabilitv insurance
prior to the event addine: the City as an additionally insured on the ooliCY at a cost
to the City. AD in favor. Motion earried UDa.Dimouslv.
vm. NEW BUSINESS
1. Resolution #07-XXX: A Resolution Declaring Adeauacy of Petition for
Improvement of Part of Old Mill Road
City Attorney Glaser suggested that Council reconsider adopting this Resolution as it is
not necessary to adopt it. He explained the timeline and issues involved should the
resolution be adopted.
Discussion ensued.
No motion was made.
2. Resolution #07-018: A Resolution Ordering Improvement of Part of Old Mill
Road
Councilmember Lee commented that he struggled with this, understands this project
would happen, and because the property has the potential to become many lots, the
assessment is what it is.
Motion by Council Member Lee. seconded by Council Member Paar. to aoorove
Resolution #07-018: A Resolution orderine: imorovement of oart of Old Mill Road.
AD in favor. Motion carried unanimously.
Councilmember Broussard commented that if the scope was limited to the north property
line, the three property owners on the west side of the road would be responsible for
100% of the assessment. She stated that the preliminary numbers are apt to change after
the final bids are in.
Discussion ensued.
3. Consider Bids for Hidden Spring Park. 1601 LaMotte Drive
City Engineer Statz discussed the bids received for Hidden Spring Park. He stated that he
listed the alternative bids depending upon what work is done: Alternative #1:
Transplanting the Lilacs, Alternative 2: Install four Picnic Tables including one
handicapped table, and Alternative 3: Shoreline Restoration. He stated that the base bid
Page 6of8
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City of Centerville
Council Meeting Minutes
May 23, 2007
includes the site work, rain garden, trails, benches, and the remaining park amenities. He
reported that Jay Brothers is the low bidder if only the base bid were awarded and
Council must decide on the alternative options they want. If Alternative 3 is chosen, then
the low bidder is Veit and Company.
Discussion ensued.
City Attorney Glaser recommended that Council select the bidder and decide on the
alternative choices later.
Motion bv Council Member Broussard. seconded by Council Member Lakso. to
accept the bid from Veit and Companv. Ltd. in the amount of $198. 921.00 and
Alternative 3. in the amount of $19.360 for ffidden SPrin2 Park. 1601 LaMotte
Drive. All in favor. Motion carried unanimouslv.
Councilmember Broussard stated that she would like to look at the line items for possible
cost reductions at the next meeting. She asked that Parks and Recreation look at the line
items and report its recommendations back to Council.
Mayor Capra asked Staff to obtain references on the previous Veit and Company's
shoreline work and to ask Rice Creek Watershed District if they have worked with them
on other projects.
4. Resolution #07-019: Establishine: Economic DeveloDment Authority (EDA)
Motion bv Council Member Lakso. seconded by Council Member Broussard to
approve Resolution #07-019: EstabIishin2 Economic Development Authoritv lEDA).
All in favor. Motion carried unanimously.
5. ADtlroval ofXcel Utility Relocation Proposal. Not Including Tree Removal
City Administrator Larson explained that Xcel has presented a Utility Relocation
Proposal. He stated tree removal which is an additional City cost is not included in the
estimate.
Discussion ensued.
Motion bv Council Member Lee. seconded bv CouncH Member Pur. to approve the
Xeel Utilitv Relocation ProposaL as submitted. AU in favor. Motion carried
nnAnimouslv.
6. Approval of Grant Agreement (DEED - Downtown Redevelopment)
City Administrator Larson explained that the City was awarded a grant for approximately
$588,000 for downtown redevelopment. He stated Staff recommends Council approval.
Page 7 of8
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City of Centerville
Council Meeting Minutes
May 23, 2007
Discussion ensued.
Motion by Council Member Lakso. seconded by Council Member Paar. to approve
the Grant Aereement (DEED - Downtown Redevelopment) and authorizine: the
mavor and clerk to execute . the ae:reement. All in favor. Motion carried
oDAnimousIv.
IX. ANNOUNCEMENTSIUPDATES
1. City Administrator Larson
City Administrator reported that Anoka County updated the information on the CSAH 14
project indicating it has not received approval to go out for bids. He stated that Anoka
County anticipates the construction start date would be August 20, 2007.
2. Mayor Capra and Council Members
Mayor Capra reported that she received a package from the Historical Society of Little
Canada that included a copy of a French newspaper published in Centerville from 1850 to
1910. She commented that she would bring these to the next meeting.
The City Council recessed to a Closed Session at 8:00 p.m.
XI. CLOSED SESSION (pending Litigation)
1. Status of 21 st A venue/Backage Road Condemnation
XII. ADJOURNMENT
Motion by Counc_ember . seconded by to adiourn the May 23. 2007 City
Council Meetine: at 9:40 p.m. All in favor. Motion carried unanimousIv.
Transcribed by:
Dianna Wise, Recording Secretary
TimeSaver off Site Secretarial, Inc.
Page 8 of8
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<E.shJbfisfzed' 1857
CITY OF CENTERVILLE
06/07/07 9:18 AM
Page 1
.Check Summary Register@)
Name
10100 MAIN STREET BANK
PaId Chk# 022404 EAGLE GARAGE DOOR
Paid Chk# 022405 INTERNATIONAL UNION OF
Paid Chk# 022406 PERA
PaId Chk# 022407 aWEST
Paid Chk# 022408 AFLAC
Paid Chk# 022409 ARMSTRONG CRANE &
PaId Chk# 022410 BOBCAT COMPANY
PaId Chk# 022411 CENTENNIAL LAKES POUCE
Paid Chk# 022412 CENTER POINT ENERGY
Paid Chk# 022413 CHURCH OF ST GENEVIEVE
PaId Chk# 022414 CITY OF CIRCLE PINES
PaId Chk# 022415 CONNEXUS ENERGY
Paid Chk# 022416 CONSTRUCTION BULLETIN
PaId Chk# 022417 CORNER EXPRESS
PaId Chk# 022418 HACH COMPANY
Paid Chk# 022419 HAWKINS WATER TREATMENT
Paid Chk# 022420 HUGO FEED MILL
PaId Chk# 022421 HUGO MILL OUTDOOR POWER
PaId Chk# 022422 KEY AUTOMOTIVE SERVICE
Paid Chk# 022423 LARSON, DALLAS
PaId Chk# 022424 MARATHON ASHLAND
PaId Chk# 022425 MATERIALS MANAGEMENT
Paid Chk# 022426 MENARDS - FOREST LAKE
PaId Chk# 022427 METRO SALES INCORPORATED
Paid Chk# 022428 MINNESOTA CITY/COUNTY
Paid Chk# 022429 NCPERS LIFE INSURANCE
Paid Chk# 022430 ON SITE SANITATION
PaId Chk# 022431 PRESS PUBUCATlONS
PaId Chk# 022432 SAM'S CLUB
Check Date
MAY 2007 to JUNE 2007
Check Amt
5/3112007
5/3112007
5/3112007
5/31/2007
6/612007
6/612007
6/612007
6/612007
6/612007
6/612007
6/612007
6/612007
6/612007
6/612007
6/612007
6/612007
6/612007
6/612007
6/612007
6/612007
6/612007
6/612007
6/612007
6/612007
6/612007
6/612007 .
6/612007
6/612007
6/612007
Total Checks
$145.00 REPAIR GARAGE DOOR SWITCH
$90.00 J. MCPHERSON, T PETERSON, & A.
$2,398.27 PAYROLL WIH 5-31-07
$467.93 PHONE SERV 651-429-4750 - THRU
$45.88 JUNE 2007 AFLAC - RH572
$1,110.00 HOIST AS DIRECTED AT LAURIE LA
$3,640.00 SWEEPER 721 GUTTER BRUSH
$41,498.29 JUNE POUCE SERVICES
$180.59 6970 LAMOTTE DRIVE - SERV THRU
$200.00 RENT CHURCH COMM. BLDGJBUSINE
$6,247.13 JUNE PRlN. PYMT - POUCE BLOG
$444.93 STREET UGHTS - 395653-219699
$153.87 AD FOR BIDS OLD MILL ROAD UTIL
$417.52 FUEL FOR APRIL 2007
$231.80 SPANOS REAGENT 1000ML & FREE C
$765.80 CHEMICALS
$157.25 SUPPUES
$64.13 SUPPUES
$60.32 SUPPUES
$127.07 MILEAGE REIMBURSEMENT
$178.94 FUEL FOR MAY
$500.00 ANNUAL MEMBERSHIP FEES 7-1-07
$50.83 SUPPUES
$525.00 MODEL #A204P - CITY HALL COPIE
$85.49 MEMBERSHIP DUES
$32.00 T. BENDER & J. MEYER UFE INS.
$692.00 6970 LAMOTTE DR - LAMOTTE PARK
$170.20 PROP VACATION - REAR DRAINAGE
$284.78 SUPPUES
$61,165.02
Please remember that there will be an updated list of disbursements for approval on 6-13-07.
.
.rr.,,-
~.7J
/3
CEN"fENN1AL FIRE OISTRICT CtI8Ck RegIsIItr FIRE GL Page: 1
GL Posllng Perfod(e): CS07 - f18I07 Jun 01, 2tXJ7 12:29prn
Check Issue Dale(e): oeml2OO7 . 0ErI0112OO7
Per Dat8 Check No Vendor No PaJ88 Invoice DescrIpIion Inv Amount
0fJI07 0lW1K1l 2888 20140 MILO BENNETT TIE DO\\tIS 38.30
08K11 O8lD1K1l 2687 20400 DAVID B~UDER STAMPS 4.00
oem 06101/07 2.688 30480 CENTENNIAL UTILITIES APRIL UTluhE$ 2416.11
STATION 1
08107 08101107 2889 30485 CENTER MART FUEL 37.40
0MJ7 CJM)1JD7 2890 30490 CENTERPOINT ENERGY STATION 2 GAS 81..
08K11 08101K1l 2691 40200 DIVERSIFIED TEXTURING & PAR TAGS ENGRAVED 71.50
CS07 OfW1 fl17 2892 50130 EMeRGENCY MEDICAL PRODUCTS MEDICAL SUPPLIES 179.47
08107 08101107 2893 60100 FAlRVlEW MEDICAL EXPENSE 74.00
08107 08101D1 2S84 eoeoo FRANKLIN PRODUCTS FIRE PREVENTION 214.33
SUPPLY
FIRE PREVENTION 228.28
SUPPLY
FIRE PREVENTION 1~.83
SUPPLY
Total 2894 688.42
08107 OCW1107 2695 8020D JANET HAAPOJA MILEAGE .IMB 21.00
06K11 06J01 /07 2898 9OC1lO IAFC MEMBERSHIP MEMBERSHIP DUES 195.00
08107 0SI01~7 2887 80161 IMAGE PRINTING & GRAPHICS SAFElY CAMP FLYERS 63.23
06107 OBI01Arl 2898 120460 CITY OF UNO LAKES TOWELS 19,577.59
0BK1l 0lW1JD7 2889 130440 METRO FIRE FLOWlF1T TESTS 2,820.00
08K11 08101107 2700 130460 METROCALL PAGERS 89.74
08107 O8I01/CT1 2701 130830 MINNESOTA FIRE CHIEF MAGAZINE MAGAZINE 248.00
SUBSCRtP'nON
08107 08101107 2702 180500 RANDY ROLSTAD BLDG UGHT REPL 48.71
STATION 3
Totals: 24,162.83
M = Manual Check, V = Void Check
/1
ruille
APPLICATION FOR FENCE PERMIT
an infoImation on tbis appIicitiQn.
~~~~lCr~
PERMIT NUMBER:
Phone: Day. (~ttln- J"*,"J Night <JzIDl!!1...- J?h1
. ~: 7!.ii1..fi:;vlllD.. statJfl-AL- Zip: S5n~?B'
E-mail address
J:st. Cost ofPrejed: S~ "i, tt:c
, v'"
= (A Sepamte BuitditJg Permit is Needed)
Location ofPtOJ-ly.
SiteAddressfHouse No. :
Legall"-aia&n ofPmpert,:
SizeofLotorPMc:el: . CjO]- ~ CunentZoniDg: Pas
1;pe of Construdion: ( '" Check all tIiiil apply.)
WoOd: .L 6' or Under:
CbamLiDk: 6" 1" GrOver:
Split Rail (Front Yard):
Decorative (From Yard): _
~): 8 QLI ( S.p\i+ 0li \ ~~
Footage: "'" '2...4.0
ConInictor: ~Jv1 ef7lS
Anticipited StattingDate: oS- 1:z2..jl?Y
Phone{~~ )'SZO -
~ZZ
LiceDsef# (fit.; J."f(:.s:J. ZJ)OQk5(sO
R~M CompIetioD Date: OS I~o--:f
AsketcIi.dIawD io scale muSt be lttt8ched s1IowiDg; A Lot lines 1IDd comer pins; B. DimeDsions of , existing buildiDp and proposect
new fem:e; C. ~ &om lot lilies _1 mil" ... AD f'.asemtq~ ~ aDd chaiua&G) Eo Utility lines enteriDg the pIGtJerty.
Center pius BDJSt be esfabIis11ed and marked by tIIe'owner and visible for iDspeWon. Two eepies or CODStnactioBpJausmuSt also be
SIIbmitted.
". . LiDc SeJbac"R:
'~aUhe Pl'opeal.t Iiomtbe stRet:
Live ODra Comer Lot? ;'\0
~.~~~ ~ .
I hctebydecJare tltai 1 am dill: 0\\'Det~ or ~.agd'eflle owner. _nhe abwe desLiW property and l-.ee to conskw:t the r.ce <<8$8
'.~" descritietl in ~ . tbe ~ ... ~ dd pemsaic1inlpmtemei1t WithilJ. tb City of ~8Ii4_.tftj:
fotqPiuainfODDation c:ontaine4 on .. ~ is a lmeand cmrec:t IMtMmRt ofDl)' inIemions. ADprovisicms otIaws lQd(4di""'-':e9 5"~
this~ of'wodt will be complied witb.\VIiether ~Wlteiein or not. The gnmting. of a permit does ilGl presume to give il1dhbdty to ~Or
caiiCeI the provisioiIs of anyotJier state Or !4x:aI1aW ~ fences Or OOftSh.lMion thereof. I amlem.mt tbat 8Dy IitiIity cbat .mUUtie iDCWed as
a result of aatditioJu 01' alterattoas to the property will be at my expeare. 8Jld I will be RIpIJII5iIIJe for tile cost of theptlU'l diedc of' tb&
applkation eve. tIJouiIt I do DOt eonttnue the prujed. I also IIIldentaad daat tile CIty of' bmtembe Is Il8t verifyIna my property u. t&ey
are only vIsQaIIy IDspediiIg &rI8t IIHwe oItl8iDeda cenDlcate of survey or have esposecJ tile eDstlag lIIOBumenls. I'agree to _leId eJttlrely
respoIISlbIe fOr the plscemem of t'eitce iUJ4 it Ie tEa.. tauue It III cIctamJJIed. to be fa 8 drabuIge/DtiI.i easement It will be teDUWed stmy
expaise and If iD the t\mai'e it is . to M Oil tile- ~. line or aeigJIbon property. without proper alNdtfag neigfJtJor apprimd
filed witfI the CIfy ole... removed at Fences sII80 IID& Impede water cIrainagWftowage.
Sigaature of Date: Os- IkJ 0 7-
front Setback"
Left Sideline;
.
.1'4
,
tl
ft.
Rear Setback
RigfIt sicielme:
z.. tl
~ ft.
,
_..._..'<)t:."""--....~...-CIIrI ....-..-....-..
Fence PennitApprovedBy: Date: ~f!Y5!!J
Fence Permit Denied For: Oats: --1-1_
Attached I.eUeJs From AbuIIing
Property Owners on Fie withClly:
Data: --1---1_
Date: --1---1_
Date: _1---1_
MAY 2 .. .2007
TOTAl FEES DUE: S. SD.OD
CENTERVILLE. MN
,/~
RNa.~ml(~-~€(:ENTD\'IUE
Name b olt3r~ Address .. batt: D5:l211 OY-
AU ~ ~ BE DRAWN TOSCAU IiDdCOllfata 1be=hdMD~~: NortJt Armw. all dbdt,i~ SlteetSaudaBeys
with stteet IIiiIiIs. ~ oriot or lots. aU ,~~ em lots. aU 'CXiSdDJ u1iIIIy fiDes aDd ~ _ ~ ftom aU
~ Ihles. .
G)A . CrossbatehaU existing buildings. Label property lines.-- ~Sa S-H, . ~ Rv\,' u" ' tr\ II" 2t'
-,~ +- Indieate North. in tH Citde - f01pCl9!tl.~
P ..... ,~- .~'., j. i", \ j. ,'. ,ie "
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v . f .. "\ _ ~< r. ....,'f.
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. /J ;;/ ,r\ ,.' "'." ,_
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16
ENCROACHMENT AGREEMENT
AOREEMBNT ("Agreement") made this ~ day of ~ ~ by and
between the CITY OF CENTERVILLE, a Minnesota municipal corporation ("Cityj, and
~i~ -\ -/MiD] ~/1 J. f ("LaDdownor(sY,).
RECITALS
A. Landowners own in fee as joint tenants the real property situated in Anoka
County, Minnesota, legally described as follows ("Subject Propertyj:
(Insert legal description)
B. Landowners' desire to locate a fence partially within the right-of-way/drainage
and utility easement(s) in their side. rear yard or both easement(s). Landowners seek permission
from the City to encroach in the City's right-of-way/drainage and utility easement
NOW, lHBREFORE, IN CONSIDERATION OF TIIEIR MUTUAL COVENANTS,
THE PARTIES AGREE AS FOLLOWS:
1. The City hereby grants Landowners permission to encroach into the City's right-
of-way/drainage and utility easement for their side. rear yard or both easement(s) to the extent
indicated on the Certificate of Smvey attached hereto as EXHIBIT "A".
1
/1
2. NotlDng in this Agreement shall be deemed an abandonment, vacation or waiver
of the City's interest in the right-of-way/drainage and utility easement(s).
3. Landowners, for themselves, their heirs, successors and as.crigJ1!1, hereby agree to
defend, indemnify and hold the City harmless from all costs and expenses, claims and liability,
including attorney fees, relating to or arising out of the grant to Landowners' of permission to
encroach into the City's right-of-way/drainage and utility easement(s). Landowners further
agree to indemnify. and hold the City harmless from any damage caused to the Subject Property
as a result of maintenance of the City's right-of-way/drainage and utility easement(s), including
any damage to the fence caused in whole or part by the encroachment into the City's right-of-
way/drainage and u1ility easement(s).
4. The City does not warrant title or guarantee the continuing right of Landowners to
maintain the fence in the City's right-of-way/drainage and utility easement(s).
5. Landowners may not replace the fence in the City's right-of-way/drainage and
utility easement(s) if the fence is damaged to more than fifty percent (500A>>) of its fair market
value, as measured immediately prior to the damage.
6. The City may direct removal of the fence, at the Landowners' sole cost and
expense, upon thirty (30) days written notice if the City determines it.has a use for the right-of-
way/drainage and utility easement(s) and that the fence interfere with said use.
7. This Agreement shall nm with the land and' shall be recorded against the title to
the Subject Property.
2
It
CITY OF CENTERVILLE
By:
Mary Capra, Mayor
By:
STATE OF MlNNESOTA )
)ss.
COUNTY OF ANOKA )
The foregoing instrument was acknowledged before me this _ day of ,
, by and Mary Capra, Teresa Bender, Mayor and City Clerk,
respectively, of the City ofCenterville, a Minnesota a municipal corporation.
Notary Public
STATE OF MlNNESOTA )
) SSe
COUNTY OF ANOKA )
1If\f\1J The fore oing instrument w acknowledged before me this ~ day of ~
~. (insert names of individuals who signed document)
(insert single person, husband and wi or??).
NOrARYPUIUC-MlNNESOTA
MtCol...~ ElplrusJan. 3f, 2010
DRAFTED BY CITY OF CENTERVILLE
1880 Main Street
Centerville, MN 55038
3
I~
CERTIFICATE
OF SURVEY
for
PROCRAFT BOMBS, INC.
~~
TIC
913.08
fi$
---
i$
[] Denotes Wood Stoke Set
For &ctI'IlIfIon Only
- Denotes Surfoce DraInage
( ) Denotes Proposed Elevotlon
x Denotes ExIsting EleJ
917.3 Top of Block Elevot
976.9 GDrr1ge ROOt" Elevot
908.5 Lowest ROOT EleVllt/on
~ of BuDding: A Wood Frame House
T.N.H. II Betwer Pond Rd.
Benchmark: It: fJurJree Rd.
Elevation = 976.93
ALL BUILDING DIMENSIONS ,/
AND nOOR ELEVATIONS MUST "
BE VERIFIED BY BUILDER. G
O ')
~-
..........
~
,
1,.
Scale: t" = 30'
Denotes 7/2 Inch by 74 inch Iron p/pB
o monument set, morked with a plastic
cap in$Cl'/bed -RLS 25343"
. Denotes Iron pipe mOttU1fH1flt founct
marked "RLS 75672-'
7he orientation of this 8eDrlng S)Sfem
Is based upon the recorded plat of
HUNTERS CROSSING 2ND ADDITION.
LOWfST POSSIBLE FLOOR
ELEVATION = 907.9 PER
GRADING PLAN. -__
~~
~
Lot 3, Block 3,
HUNTER CROSSING 2ND ADDITION,
Anoka County, Minnesota.
--
--
~II~ sarw,ad ayJU".'D"- _
710 CGSt RllIer Rood.
~ UN. !S5XJS
Ph. 7BS-712-9D!19 FtIJI: 763-712-90S5
Job NtI. 152-87 tIoaIt-PlIfPI DCF At:t1d F1Ie 152-17
@2tJrU-Mldnst I.IIIId SIInejIn II tN/ ~ lilt:. - Aft_Is ~
I hfnby t:IIrlJIy """ this W1MIJS pia ",. report .. fJI'BPQnId by me ",. rmdsr my
dhct superw1sIGn tlIId fhot I am CI duly I.lcensed LfI1id $meJGl' rmdsr the '- 01
the SttIfft of MiutaotD.
and
No .....1IfA..Jk... whoflsoGl'lIt' Is t>>dendtld to svbsequent.own.s. mtII~ ",. tJtIe
~ unless this SU1WJ' hotI ... redafed for this purpose by the sutWJlllr.
Doted this 22nd day of Od . 2004..
,
By
. 20'- .
AsbuIIt
JfJ
~. ..-,.-
/f/-
, .
May 19~ 2{J,)l
To whom it may contem:
Heidi and Greg Brandt have.ompcmrlssionto. build a fence that adjoins OUT fence.
Thank you,
f!/'-..
Kurt and Shelley IJeVltt
1628 Dupre Rei
Centerville
~
i.",:,
II
May 21,2007
To Whom It May Concern:
We are giving the abutting property owners, Gregg and Heidi Brandt, permission to place
their fence one foot away from the property line on their property.
Regards,
~~
Steven and Rebecca McBride
1644 Dupre Rd
Centerville, MN 55038"
ll-
G~':'2~j[)"
APPLICA nON FOR FENCE PERMIT
PRINT all information on this applicatioJL
PERMIT NUMBER:
Name: ~ Phone: Day:~-~ Nigbt~Ml-
Address:j,g.c;.i ~ . ~ ~y City:. lU~ State:.MAL ZJR:S~-~ go I
-mailaddress '4ff~~~.~~
Location of Property: c.J
Site AddressIHouse No. : 61(5 I ~ ppNl) WAY ~ ('~~/I) r: I ,i,f.J
Legal Description of Property: I
Size of Lot or Parcel: ffAb" X IhS' Current Zoning: RBS.I22.Est. Cost of ProJect: $ 7, 000* ()O
T~pe of Construction: ( ./ Check all that apply.) /
Wood: ..L 6' or Under: .y....
Chain Link: 6' I" or Over: _ (A Separate Building Permit is Needed)
Split Rail (Fmnt Yard):
Decorative (Front Yard): _
~ CAufitlZJJiA ClJAflJ U#Jl</Ar:rf~,4-rIIJt;, 84Al2l> fAJOob
Footage:
Confractor:TfJWNt~IJAt[/l. '( ~c.6 Phonl~~ 42.> -S~sc # 2~~ ~~2-
Anticipated Starting Date: -! -1 Estimated Completion Date: -1--1
A sketch drawn to scale must be attached showing; A. Lot lines and comer pins; B. Dimensions of existing buildings and proposed
new fence; C. Distances from lot lines and buildings. D. All Easements (Utility and drainage) E. Utility 1ines entering the property.
Corner pins must be established and marked by the owner and visible for inspection. Two copies of construction plans must also be
SIlbmined.
Property Line Setbacks: Front Setback: ft. R<<:ar Setback: ft.
Looking at the Property from the street: Left Sideline: ft. Right Sideline: ft.
Live on a Comet Lot? N f) / (\ ).
Work in RigbtofWay? ~...lee: A:rr~l-le-b ~IJRv~y
I hereby declare that I am the owner. or authorized agent of the owner. of the above descn'bed property and I agree to construct the fence or use
herein described in accordance with the regulations and ordiDances that govern said improvement within the City of Centerville and that the
foregoing information contained on this application is a true and correct statement of my intentions. All provisions of laws and ordinances governing
this type of work will be complied with whether specified herein or not The granting of a pennit does not presume to give authority to violate or
cancc1 the provisions of any other state or loca1law regulating fences.or construction thereof. I uudenta,nd that any utUlty that must be moved as
a result of additions or alterations to the praperty \VOl be at my expense and I wiD be responsible for the cost of the plan check of this
appUcatlon even though I do not continue the project. (also uuderstand that the City of Centervllle is not \'erifylng my property Unes, they
are only \isuaDy laspettIDg that I have obtained a certificate of survey or have exposed the edstiDg monuments. I agree to be held entirely
responsible for the placement of tbe fence and If In the future It Is determined to be In a dralll8ge'utUity easement It wDI be removed at my
expense and If In tbe future It Is determined to be on the property line or neighbors property, without proper abutting neighbor approval
flmI With the Cty ofCen'~f It 1JD alnl:1~ed ~ my expense. Fences shaD not Impede water dralnagelt1owage.
Signature of Applican1: ~ Date: r:, ~l, I) 1
...........................,.,... (The following to be completed by the City) ..............0..........
Fence Pennit Approved By: ~. Date: "/~ (;)?
Fence PermIt DenIed For: Date: --1-1_
Attached Letters From Abutting
Property 0wneIs on FOe with City. .
Date: --1-1_
Date: --1-1_
Date: _'-1_
TOTAL FEES DUE: $ 50.00
23
FENCE APPLICATION SKETCH - CITY OF CENTERVILLE
Name Address Date I I
ALL SKETCHES MUST BE DRAWN TO SCALE and contain the following information: North Arrow, aU abutting streets and alleys
with street names. dimensions of lot or lots, all e.ustiDg boildiags on lots, all existing utility lines and easement$, and distances from aU
property lines. .
O Crosshatch all existing buildings. Label property lines.
~ Indicate North in the Circle
PUA$ ~~ 1I1lA-~ h SmCH
(@eAPH PA~~J IIN1 ~L1~~Y
ClZf!flFlCATg a
24
1____
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__..._._..____. ___~.__ '__~_- -. 1-.7)~-_A-;.;-;-r-.T---.--- ... .
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)
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. ['I ~ I ~ ~ 1lRAIHAGE-" UIDlY EASaIEN~_
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)> e.. / . NN ..Ie..
-7: . (II, 1Il 13'-4- .. " 13'-8': ~ (II
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Jim and Mami Kaufer
6857 Beaver Pond Way
Centerville, MN 55038
(651) 429-4525
June 4, 2007
This notice is to inform the City of Centerville, its Planning Board, City Council, or
any other relevant authoritative committee, that our next-door neighbors, Michael
and Naomi Hayes, residif.l9at 6851 Beaver Pond Way, have discussed with us
their plans for building a fence between our properties.
By notice of this letter, we give Michael and Naomi Hayes our permission to
place the fence up to the property line dMding our properties. It will be Michael
and Naomi Hayes' responsibility to maintain the fence dMding our properties.
Sincerely,
L'
\
Marni Kaufer
~.~
~,
21/
ENCROACHMENT AGREEMENT
AGREEMENT ("Agreement") made this _ day of . by and
between the CITY OF CENTERVllLE, a Minnesota municipal corporation ("City''), and
("Landowner(s)j.
RECITALS
A. Landowners own in fee as joint tenants the real property situated in Anoka
County; Minnesota, legally descn"bed as follows ("Subject Property"):
(Insert legal description)
B. Landowners' desire to locate a fence partially within the right-of-way/drainage
and utility easement(s) in their side. rear yard or both easement(s). Landowners seek permission
. from the City to encroach in the City's right-of-way/drainage and utility easement.
NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS,
THE PARTIES AGREE AS FOLLOWS:
1. The City hereby grants Landowners permission to encroach into the City's right-
of-way/drainage and utility easement for their side. rear vard or both easement(s) to the extent
indicated on the Certificate of Survey attached hereto as EXHIBIT "A'".
1
J?
2. Nothing in this Agreement shall be deemed an abandonment, vacation or waiver
of the City's interest in the right-of-way/drainage and utility easement(s).
3. Landowners, for themselves, their heirs, successors and assigns, hereby agree to
defend, indemnify and hold the City harmless from all costs and expenses, claims and liability,
including attorney fees, relating to or arising out of the grant to Landowners of permission to
encroach into the City's right-of-way/drainage and utility easement(s). Landowners further
agree to indemnify and hold the City harmless from any damage caused to the Subject Property
as a result of maintenance of the City's right-of-way/drainage and utility easement(s), including
any damage to the fence caused in whole or part by the encroachment into the City's right-of-
way/drainage and utility easement(s).
4. The City does not warrant title or guarantee the continuing right of Landowners to
maintain the fence in the City's right-of-way/drainage and utility easement(s).
5. . Landowners may not replace the fence in the City's right-of-way/drainage and
utility easement(s) if the fence is damaged to more than fifty percent (500A.) of its fair market
value, as measured immediately prior to the damage.
6. The City may direct removal of the fence, at the Landowners' sole cost and
expense, upon thirty (30) days written notice if the City determines it has a use for the right-of-
way/drainage and utility easement(s) and that the fence interfere with said use.
7. This Agreement shall run with the land and shall be recorded against the title to
the Subject Property.
2
~7
CITY OF CENTERVILLE
By:
Mary Capra, Mayor
By:
Teresa Bender, City Clerk
LANDOWNERS
By.~Ao
By.~~~
STATE OF MINNESOTA )
)sSe
COUNTY OF ANOKA )
The foregoing instrument was acknowledged before me this _ day of .
~ by and Mary Capra, Teresa Bender, Mayor and City Clerk,
respectively, of the City ofCenterville, a Minnesota a municipal corporation.
No1:aty Public
STATE OF MINNESOTA )
) SSe
COUNTY OF ANOKA )
The ~ ~ was acknowkdg,ed before me this & -day of Oa;u .
~41 . 'hlJ . (insert names of individuals who signed' document)
'7t~, ( ert8/11g1eperson,~:~or??).
c x5r~
Notary Public .
DAAFTED BY CITY OF CENTERVILLE
1880 Main Street '
Centerville, MN 55038
a .::.
..,6.. .. ........3UN
3
So
ARCHAEOLOGICAL RESEARCH SERVICES
1812 15~h Avenue Sou~h
MINREAPOLIS, MR 55404-2119
Phone: 612-870-9775
Fax: 612-870-9789
~
<
.J ~
~~
Da~e: June 6, 2007
To: John Meyer, Financial Director
City of Centerville
From: Christina Harrison
Re: 1601 Lamont Drive: Archaeological Phase I Investigation
I have now reviewed the information you gave me about this project
as well as our own files for past work in the Centerville area. An
area adjacent to Centerville Lake should definitely be considered
to have high archaeological potential as this area is known to
have attracted Native Americans as well as early Euroamerican
settlers and a number of archaeological sites already have been
recorded around the northern and western shores of the lake.
As the project area is quite small, I estimate that we could
conduct a Phase I investigation in one day. As we already have
most of the needed background information on file, the preparation
of a report would take about as many hours.
We could take care of the work early part of next week. My cost
estimate is:
principal Investigator, 1 hr @ $100
Field/Lab director, 16 hrs @ $50
Research Staff, 10 hrs @ $25
Mileage/Clerical Expenses
To~al
$100
800
250
70
$1,220
Should any archaeological evidence be found that needs further
evaluation, another day or two of fieldwork and analysis would be
required.
We have conducted a number of surveys in your area, including the
Anoka-Isanti Phase of the Statewide Archaeological Survey and,
since then, various smaller scale compliance surveys related to
specific construction projects. I would be happy to send you a
complete list of our research experience.
3/
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32
tervi{{e
'Esta6lisliea 1857
1880 Main Street . Centerrlifl'e, 9IJ!J{ 55038
(651)429-3232 . P~(651)429-8629
. .
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF CENTERVlLLE
RESOLU11ON I07-oXX
A RESOLU'nON AUTHORIZING THE MAYOR AND CITY ADMINISTRATOR TO EXECUTE THE
COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT PARTNERSHIP
PROGRAM
COOPeRA11VEAGREEMENT FORANOKA COUNTY
s
WHEREAS, Anoka County has been classified as an Urban County eDgible to receive Community
Development Block Grant Funds and HOME Investment Partnership funds through the Depar1ment
of Housing and Urban Development; and
WHEREAS, each community In Anoka County has the option to opt In or out of the Anoka County
CDBG and HOME programs; and
WHEREAS, each community who opts In must enter Into a Cooperative Agreement every three
years to continue to be Included In the Urban Countr, and
WHEREAS, by opting into the Anoka County program and authorizing the Cooperation Agreement,
the CIty of Centerville wID be eDgible to apply for CDBG and HOME funds through the County; and
WHEREAS, the City of CenterviIle has elected to opt In since Anoka County became an Urban
Countr,
NOW, THEREFORE, BE IT RESOLVED, that the City of CenterviUe City CouncD authorizes and
directs the Mayor and City Administrator to execute ttte Anoka County Cormwnity Development
Block Grant and HOME Inves1ment Partnership Program Cooperative Agreement
Adopted by the
AlTEST:
City CouncR this
day of
. 2007.
. CIty Clerk
. Mayor
~'3
Page 1 of2
T.... Bender
Fntm: Statz. Mark R (Mark.S1atz(Iboneatro.com)
Sent: Friday, June 01. 2007 8:57 AM
To: dlarsonOcentervtllemn.com
Cc: Paul Palzer; TBender@CentervlUernn.com
8uIIjed: 1864 Lakefand CIrcle
SCANNED
JUN ~ 4 2007
Dallas,
I was In town yesterday to meet with the Backage Roac:t contractor to discuss finalizing the Job.
SInce I was In town, I stopped by 1654 Lakeland Circle. I spoke with Mrs. (blanking on the name
at the moment) and explained my concerns.
As stated In my review letter, I would stltl not recommend giving up any of the easement. Also, In
my letter, I say "...unless the property owner can demonstrate that the proposed Improvements
can be made without Impact to the drainage swale...". I think that a swale can be graded and stiR
leave the pool and deck In place. Therefore, I have asked the homeowner to grade this swale
before the council meeting (In other words "demonstrate- how It will work). I am going to be In
town on Tuesday (6/6) to meet with Paul on the 2009 streets and then to attend the Shudy site
viSit. I will meet with the homeowners at this time to go over the swale grading In detail and he
told me he would complete the work shortly thereafter (In time for the CC meeting on the 13th).
I think that If the swale Is properly graded by the 13th, I could support an encroachment
agreement for both the deck and the pool. Here are my reasons why:
. The pool 1$ "portable", so If there ended up being a probfem, It wouldn't be the end of the
world to have It removed. '
. The deck, without the pool would not be a problem. If the pool was not where It Is, a swale
could easily be maintained even with the deck In place.
. With both the pool and the deck, a small swale can be graded and will probably be fine.
. The drainage really only affects these people's home. If there's a problem, It will only be
with their own house.
. There Isn't a lot of drainage coming through the swale. The property to the north has cut off
his drainage by the nature of how his home site was graded, so It's Just the north half of this
homeowners lawn that Is contributing.
In summary, I still stand behind the statements In my letter. The only Change Is that the
homeowner would like to take me up on the opportunity to "demonstrateD It can work.
Mark a.tz, PI
AssocIate
Tel 651-604-4709
Ceo 6S1..77~5126
~.com
I rx1 Bonestroo
2335 Highway 36 W
St. Paul, MN 55113
Tel 651-636-4600
Fax 651-636-1311
www.bonestroo.com
6/4/2007
JI
This emaiI has been scanned by the Mess.. Email Security System.
For more information please visit http://www.messagelabs.comIemaiI
6/4/2007
Page2of2
35
3/P
May 30, 2007
RE
MAY 3 11007
2335 Highway 36 W
St Paul, MN 55113
Tel 651-636-4600
Fax 651-636-1311
www.bonestroo.com
. Bonestroo
Dallas larson
Administrator
City of Centerville
1880 Main Street
Centerville, MN 55038
CENTERVILLE, MN
Re: 1654 lakeland Circle - Proposed Easement Vacation
City of Centerville
Bonestroo File No.: 000616-07000-0
Dear Dallas:
As requested, we have evaluated the possibility of vacating portions of the drainage and utility easement in
the rear yard of the property at 1654 lakeland Circle (lot 15, Block 2 - lakeland Hills).
As is depicted on the certificate of survey, there is a large distance between the west edge of the easement
and the edge of the pond (approx. 57 feet). After examining the grading plan, it appears that this area,
west of the pond, was designated drainage and utility easement to accommodate drainage from north to
south as shown on the attached sketch. Therefore, unless the property owner can demonstrate that the
proposed improvements can be made without impact to the drainage swale, we would not recommend any
easement vacation. Thisdrainage:swale is especially critical because the homeowner's house sits one foot
below the overflow elevation of the pond. Proper drainage through the swale protects the home from
flooding.
Please call with any questions.
Sincerely,
BONESTROO
~4~
Mark Statz, PE
City Engineer
651-604-4709
Attachments: Sketches of Area
copy:. Paul Palzer ~ Public Works Director
St Paul
St Cloud
Rochester
Milwaukee ;::< 1
Chicago ~
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tervi{{e
'Esta6{isftet{ 1857
1880 9tLain Street . CentervilCe, 9II!N 55038
(651)429-3232 . P~(651)429-8629
('
S'fATE 01' MINNESOTA
COUNTY OF ANOn
CITY OF CENTERVILLE
RESOLUTION m-oxx
A RESOLUTION APPOINTING MEMBERS 10 THE ClTY'S ECONOMIC
DEVELOPMENT AUTHORITY
WHEREAS, the City of Centerville bas established an Economic Development
Authority; and
WHEREAS, determined it in the best interest of the City to appoint two (2) members of
the public to serve on the authority along with Council; and
WHEREAS, accepted applications, held interviews and determined that Ms. Jenny
Dosch and Mr. Michael Warner to be the best suited candidates for the positions;
NOW, TIIEREFORE, BE IT RESOLVED, that the City Council of the City of«Centerville appoints Ms. Jenny Dosch and Mr. Michael Warner to its Economic
Development Authority.
Adopted by the
2007.
city Council this
day of
Mary Capra, Mayor
Attest:
Teresa Bender, Oerk
~IJ
MEMO
TO: Honorable Mayor and City CouneD Members
FROM: Kim Stephan
DATE: June7,2007
SUBJECT: Reeommendations for Hidden Spring Park Improvements
The following discussion was had at the regularly scheduled June 6, 2007 Parks & Recreation Committee
meeting.
Chairperson Seeley requested clarification on the attached letter from Mr. Mark Statz regarding possible cost
reductions. Mr. Statz replied:
First, a preface: It would be my preference to keep all the Items in the project. I thin/c the Items we bid are
all integral to the Park's success. rd hIlte to see the City spend hundreds of thousands of dollars on the land
and improvements and stop $15,000 short of a great Park and settle for a good Park.
Item 2 - 7ree Trimming, ClearlnwGrubbing - ThIs would eliminote all tree work from the contract.
Ultimate savings, would depend on how much of the work your Public Works Department could hondle.
Some of the tree removals are pretty large and should probably be handled by professl01lQ/s.
Item 3 - Rain Garden Plantings - My thougth here was thllt we could reduce the number ofplantings. but not
eliminate all the plantings. The rain garden is part of our obligation to RCWD and we can't just eliminate
all the plontings. The total value of all the plantings In the rain garden and swale is around $27,000. I
figured we could eliminate about half the plantings without raising any flags with RCWD (holf of$27.oo0 is
$13.500). Jfthose plantings were eli11dnated, we'd have to supplement with special seeding, which Ifigured
would be about an additional $1,500. thus the $12,000 savings.
Item 4 - Limestone Outcropplngs - ThIs would remove all the limestone outcroppings in the Rain Garden
and Swale (from rain garden to where the two swales connect). The bid tab shows a cost of $8,150 for
these. I have estimated we could get them to agree to $7,500. as there would probably be some minor
modifications which may cost a bit. ThIs would lJ!l1. eliminate the limestone In the Artesian well or on the
swale from the well pond to the connection point.
Item 5 - Drln/cing Fountain - This would eliminate the drinking fountain and water service to the drln/cIng
fountain. .
The committee was supplied with the Hidden Spring Park Project Manual from Bones1roo, but requests the
specifications in layman's terms. They would also like a time line of what is being done and when. Both
Chairperson Seeley and Vice-Chairperson Amundsen were invited to the pre-construction meeting and will
attend, if they are able. Council Member Lee will get specifications and a time line provided to the
4/
committee.
The committee was disappointed that with all the research they had done with the Rice Creek Watershed
District and Anoka County Conservation Department, supplying Mr. Statz with all the documentation on rain
gardens and lake shore restoration, that none of this information was used. Neither of the teJh~tatives the
committee had worked with were contacted. The committee felt strongly about using the recommendations
from the Anoka County Conservation Department
The committee also feels strongly that some of the plpting selections are not appropriate for a rain garden
and would like to see a list of pl~T before the plants are ordered. They also do not believe the option of
removing half of the p1antings from the rain garden to save money is feasible, as it will defeat the pmpose
and make the rain garden less effective.
The committee discussed all of the options to potentially reduce costs, but felt there was nothing that could
be cut that would make a significant difference, except for engineering fees. While the committee
understands the need for engineering, they do not understand how the engineering fees became so high to
oversee the construction of the park. The committee questions whether this is a ~ expense or if
moving forward, staff can oversee the construction, reducing engineering costs.
The committee would like to leave Alternative #2, Picnic Tables in the bid. These are tables made with
recycled materials that will be heavy and bolted down as to not be Vandali7,ed. The committee did not feel
$7,600 for tables and $1,000 for benches was out of line for ones that will be permanent
Motion was made by Chairpenon Seeley, seconded by Vice-Chairpenon Am_dsen to reeGDUDend
that City Co_ell aeeept the bid for Hidden Spring Park as is, induding Alternative ##2, Plenic Tables
and potentially redueing the amo_t of engineering semees required. AD in favor. Motion earried
u".niJnously.
4l-
2335 Highway 36 W
51 Paul. MN 55113
Tpl 651.636-4600
Fax 651-636-1311
www.bom!suoo.tom
June 5, 2007
Dallas Larson
City of Centerville
1880 Main Street
Centerville, MN 55038
.. Bonestroo
Re: Hidden Spring Park - Possible Cost/Scope Reductions
City of Centerville
Bonestroo File No.: 000616..Q7155.0
Dear Dallas:
The Hidden Spring Park project was awarded to Veit Construction Co. based on their base bid, plus
Alternate 3 (Shoreline Restoration). The total contract amount is $218,281. We understand that the City
Council may wish to reduce this expenditure by redudng the scope of the base bid.
We have reviewed the project which was bid to find items which could be eliminated or scaled back to cut
costs. A list of those items (along with estimated savings) in order of our preference follows:
1. Electrical work (outlet and overhead lights- in Pavilion)
2. Tree trimming, dearing/grubbing (could be done by public works)
3. Rain Garden Plantings and Swale Plantings (reduce but not eliminate)
4. limestone Outcrops (in Rain Garden and along swale)
5. Drinking Fountain
6. Trash/Recycling Bins
7. Grills
S10,000
S 13,000
512,000
$7,500
$5,000
$1,500
$1,000
Since all of these items were part of the base bid, we would need to negotiate a change order to eliminate
any of them. The prices shown are only an estimate of what could be saved by removing them from the
project.
Please call with any questions.
Sincerely,
BONESTROO
~~
Mark Statz, PE
City Engineer
651.604.4709
{opr. PaulPa~er
St. Paul
SL Cloud
Rothestefi
Milwaukee / :2
Chicago ~
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MEMO
TO: Honorable Mayor and City CouneD Memben
FROM: Kim Stephan
DATE: June 7, 2007
SUBJECT: Residents Input on mdden Spring Park Improvements
Lino Lakes residents from LaMotte Drive were in attP.ndarlce at the June 6, 2007 Parks & Recreation
Committee meeting to discuss their concerns regarding Hidden Spring Park. Mr. Mike Mastro, 1553
LaMotte Drive, stated he had attended one of the first City Council meetings where the possibility of
purchasing 1601 LaMotte Drive was discussed and he left with the impression that since he lives in Lino
Lakes, and this park is in Centerville, that his concerns were irrelevant Chairperson Seeley assured the Lino
Lakes residents that the Committee/City certainly would like to be a good neighbor and welcomes their
input.
Mr. Mastro said the biggest concerns of the residents were security and a berm/fence separating the park
from abutting neighbors and stated that there were already issues involving misuse of the park. He also felt
if the park were administered correctly the park would be a nice addition to the area.
Mr. Roger Hoffineister, 1589 LaMotte Drive, stated there was already a problem with kids throwing big logs
in water causing a hazard for boats and he questioned who do they call with problems like that? They did
call the police in that instance, but who is responsible for addressing these issues? The police referred the
problem to Public Works.
Mr. Roger Spinner, 1581 LaMotte Drive stated his concerns included the above mentioned items with
addition to trash that will get out on the lake and potentially blow down the shore1and. He also mentioned a
pier or fi~hing dock would be a major problem for the lakeshore property owners as the lake is shallow in
front of their homes and there are jslands which require boats to go past the park property or to the south end
of the lake to enter the deeper part of the lake.
Mr. Mike Slettery, 1587 LaMotte Drive, stated his property abuts the park on the south and has noticed that
the people who have been using the park, to this point, seem to be local kids and while that is great, they are
also experiencing loud noise and graphic sexual language coming from the park. He is also concerned with
vauliqliRm and asked if any provision for fencing or marking the property line is planned. Mr. Slettery said
he would like the look of a split rail fence to define the property line, but that doesn't do much for noise. He
felt a berm and a privacy fence would make it more private. He also stated there is a section of chain link
fence that appears to be remaining from the St Paul Water Utility fence which partially goes down the south
property line to his garage and wooden fence posts that are knocked down that looks like it also belongs to
1601 LaMotte Drive. Mr. Slettery is doing landscaping up to this fence in the next few weeks and would
like it removed. Ms. Stephan will pass this information onto the City Administrator and Public Works. Mr.
Slettery felt 1i1ac bushes were not enough of a division between the properties. Mr. Slettery asked if park
hours were going to be posted, what they would be and would they be strictly enforced. He also suggested a
gate be put at both Hidden Spring and Lamie LaMotte Memorial Parks that could be closed when the park
was closed as he felt there are misuses of both parks.
,II
Mr. Jack McDonald, 6901 LaMotte Drive, was concerned about the lake quality and requested the committee
contact Anoka County, Rice Creek. Watershed District and the DNR regarding getting help to clean up the
weeds and algae in the lake. Vice-Chairperson Amundsen assured the residents in attendance that the
committee was in contact with all of the above agencies and was doing everything possible to make this park
an environmentally friendly park. He reiterated this will be an adult park. There will not be a dock, pier or
boat launch at this park and after the lake shore restoration is cOmpleted it is the committee's desire to have it
posted as no fishing or swimming. The residents were in favor of the no fishing or swimming as they felt
that would eliminate some of the potential problems.
Mrs. Dorothy Mastro, 1553. LaMotte Drive, added her concern for the speed of traffic going down LaMotte
Drive, particularly during ball games and suggested signage reflecting Children at Play or something similar.
Chairperson Seeley stated there will not be parking at Hidden Spring Parle, but a crosswalk going to the
parking lot at Laurie LaMotte Memorial Park. This may cause some traffic concerns in the begjnning.
ChaiJperson Seeley repeated the concerns of the residents and stated, as a Park Board, we.1ry and balance the
needs of the community with the needs of property owners abutting parks. ChaiJperson Seeley stated if we
close the park up with too much fencing we will not be able to get the policing we need and that is why the
fence and lilacs were removed from the front of the property. The lilacs were available and while the cost to
relocate them was too expensive, the committee still favors a hedge of lilacs along the south property line.
Concerning whom do residents contact regarding problems at the park, Chairperson Seeley said the best
option is the police. There is nothing the committee or the City can do if there are problems in the evening,
the police will monitor it on a regular basis and any possible problems hopefully will be headed off right
away.
Mr. Slettery asked if the committee was in favor of boundary on the property line, such as a fence.
Chairperson Seeley said the committee would have to discuss it The committee was not in favor of a berm
or privacy fence, though Mr. Slettery was certainly within his rights to put up a fence if he so desired.
ChaiJperson Seeley did say the committee would look at posting private property signage. Mr. Mastro said
he had talked to Mr. Bill Tschida, St. Paul Water Utility, regarding people fishing from their property in
front of the pump house. Mr. Tschida stated they would consider adding on to the existing fence extending it
to the water's edge to discourage people fishing from this property. Council Member Lee said it may not
be possible, as it would also involve the City, RCWD and the DNR.
Chairperson Seeley thanked the group for coming and their valuable input.
~5
tervi{{e
'Esta6[isfiet{ 1857
1880 9dain Street . Centeruiffe,!M!N 55038
(651)429-3232 . P~(651)429-8629
STATE OF MINNESOTA
COUNTY 01' ANOn
CITY OF CENTERVILLE
RESOLUTION #07..oXX
A RESOLUTION VACATING PART OF A DRAINAGE AND UTJLITY EASEMENT
ON LOT 6, BLOCK 1, DEER PASS
WHEREAS, it has been proposed to vacate the following described easement, and
WHEREAS, following duly given notice, the City Council of Centervi1le has held a
public hearing and considered comments and objections thereto and found that the
vacation of said easement is in the public interest
NOW TlI.ucEFORE, BE IT RESOLVED BY THE CITY COUNCB. OF
CENTERVD.,LE, ANOn C01JNTY, MINNESOTA, that following described
easement is hereby vacated:
SEE EXHIBIT A. ATTACHED HERETO
Adopted by the City Council ofCentervi11e this _ day of June, 2007.
Mary Capra, Mayor
Attest:
Teresa Bender, City Clerk
I, Teresa Bender, duly qualified and acting City Clerk for the City of Centervi11e,
Minnesota, do hereby certify that. the foregoing is a true and correct copy of a
resolution duly adopted by the City Council ofCentervi11e and on file in my office.
Date
Teresa Bender
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CITY OF CENTERVll..LE
NlONTHL Y ENGINEER'S REPORT
For June 13,2007 City Council Meeting
Italics = New information.
Normal = No change from last report.
1. Pheasant Manh 3rd Addition (000616-03134-0). A walk-thru inspection of the project site
will be conducted within a couple of weeks before the wear course is scheduled The walk-thru
will be completed with the Developer, Public Works 8taft and Bonestroo. James R. Hill has
submitted the Record Plan Drawings and will be reviewed by the Public Works Staff and
Bonestroo.
2. Bunten Crossing 3rd Addition (000616-05141-0). The Record Plans were completed by
Bonestroo and delivered to the Public Works Staff The Developer is working with the builder
to restore some eroded areas on the project site. They are also working with a resident in
completing the restoration of their yard A walk-thru inspection of the project site will be
conducted within a couple of weeks before the wear course is scheduled
3. 21st AvenuelBackage Road (000616-05143-0). The additional 21-inch pipe required by the
County has been installed. Road construction has continued All underground utilities are now
installed and curb & gutter is scheduled for early next week Contractor continues to excavate
poor materials that lie underneath Parcel D.
4. 2006 Storm. Water Analysis (000616-06146-0). On hold until the 2009 Street Project is better
defined.
5. Old Mill Road Improvements (000616-06147-0). Plans and specs are being completed. The
bid date is set for June 12th.
6. Fairview Street Improvements (000616-06148-0). The contract has been awarded to
Gustafson Excavating and a preconstruction conference was held Construction has just
begun.
7. Block 7 Redevelopment Grading and Utility Improvements (000616-06152-0). All
underground installation is completed. Contractor has started their punch list work.
Contractor still needs to complete the mandrel test and remove the silt fence they installed
8. Centerville Townoffice Park 2nd Addition (000616-06152-0). Construction is underway.
9. Rgn7.f1l's Addition (000616-06154-0). On hold until the Old Mill Road improvements are
approved.
10. ffidden Spring Park (000616-07155-0). The project has been awarded to Veit Construction.
A preconstruction conference has been scheduled for June 15th.
11. Downtown Overhead Power Relocation (000616-07156-0). Easements and right-of-way on
Clearwater Street have been staked. Tree work on Clearwater and Chaucey Barret is done.
Last word was that Xcel will begin the pole installation next week City staff is working with
the County on easements on the Chauncy Barrett property.
12. Comprehensive Plan (000616-07157-0). The Background Report was presented to a joint
meeting of the Planning Commission and City Council on June 5, 2007.
13. 2009 Street and Utility Improvements (000616-07158-0). We have begun oW' investigation
of the condition of streets in the proposed project and will be evaluating the appropriate level
of improvements.
14. CSAH 14 Construetion Services (000616-07159-0). Once the project is awarded, we will be
acting as the City's representative in the field during construction.
15. Miscellaneous
. We submitted a scope of services and engineering proposal for the production of a
Downtown Redevelopment Comprehensive Infrastructure Plan. This would layout,
conceptually, the sewer, water, storm water, and street systems to allow continuity and
reliability of these systems as they are designed and constructed in phases. Included
with this proposal is a separate estimate to complete an EA W if it is necessary. This
proposal also now includes topographic survey work.
. We are working with the Public Works department to shape a pond and ditch
maintenance policy/plan and annual budget.
. End of me11W-
Sergeant Aldrich # I 04
Centennial Lakes Police Department
54 North Rd
Circle Pines, MN 55014
(763) 784-2501
~'-l\
June 6, 2007
To: Dallas Larson
Re: Monthly activity in Centerville
Dallas,
This report if for the month of May. I work on June 13, and plan on attending the
council meeting.
Again, there were no major incidents occurring in Centerville during the month of
May. There were two separate vandalism reports at Acorn Park. Both incidents involved
spray paint attacks on the playground equipment. Officers are aware of the incidents and
are providing extra patrol in late afternoon and evening hours. At this time there are no
known suspects.
There were three DWI arrests and one minor consumption arrest in May. There
were 167 vehicle stopped, and 74 citations issued. During the May Seatbelt
Mobilization, officer wrote 199 seatbelt citations between the three cities. The
Mobilization ran from May 21 through June 6. Are totals were down from last year, but I
believe that seatbelt compliance has increased.
Officers are continuing to monitor traffic on Mill rd. After looking at several of
the officers' logs, I did not observe any citations written for speed. I believe are presence
is a great deterrent.
Officers continued to enforce the fishing and trespassing issues on the 7300 block
of Main. One citation was issued for no license. The CSO's are continuing to monitor
ordinance violations, and there did not appear to be any citations issued.
Any questions or concerns please contact me 763-235-2570
Sgt Aldrich # 1 04
MAY 2007
CITY OF CENTERVILLE
CITY COUNCIL REPORT
1. Financial Statement & Budget Report
2. Bank Reconciliation & Fund Cash Balance
Prepared By: John W. Meyer
Finance Director
-
General Fund
MQnthly Financial Report
Month Ended May 31,2007
MTD YTD Budget Variance % of Budget
&/31/07 2007 2007 +(-) Used
Revenues:
Property Taxes 0.00 15,255.29 1,915,900.00 1,900,644.71 0.80%
other Taxes & Assessments 0.00 2,668.30 46,000.00 43,331.70 0.00%
Ucenses & Permits 22,790.80 94,145.20 160,000.00 65,854.80 58.84%
BuDding Inspection 21,478.80 66,527.95 110,000.00 43,472.05 60.48%
Fines & Forfeits 2,921.55 13,685.70 40,000.00 26,314.30 34.21 %
Intergovernmental 0.00 0.00 117,000.00 117,000.00 O.OOOA.
Fire ReDef AId 0.00 0.00 95,000.00 95,000.00 O.OOOA.
Charges for Services 550.00 875.50 2,000.00 1,124.50 43.78%
Interest Earnings 1,382.50 23,476.90 58,000.00 34,523.10 40.48%
MIscellaneous Revenues 25.00 64.73 15,000.00 14,935.27 0.43% .
Refunds & Reimbursements 92.98 5,303.66 4,000.00 (1,303.66) 132.59%
Fund Balance 0.00 0.00 0.00 0.00 0.00%
Total Revenues 27,762.83 1 &&,47&.28 2,3&7,800.00 2,202,424.72 8.&9%
Expenditures: II
Current II
General Government
Mayor and Council 2,502.88 11,790.14 35,000.00 23,209.86 33.69%
Elections 0.00 0.00 0.00 0.00 0.00%
Planning & Zoning 148.35 1,705.64 20,000.00 18,294.36 8.53%
Administration 42,489.82 155,187.76 385,000.00 229,812.24 40.31%
Financial Administration 0.00 3,000.00 18,000.00 '15,000.00 16.67%
Assessing 0.00 18,165.00 18,000.00 (165.00) 100.92%
Legal 9,157.10 41,187.97 65,000.00 23,812.03 63.37%
City Hall 1,345.12 15,272.73 40,000.00 24,727.27 38.18%
Total General Government 66,843.27 248,309.24 681,000.00 334,690.78 42.39%
Public Safety
Police Protection 6,871.33 223,119.33 649,000.00 425,880.67 34.38%
FIre Protection 0.00 49,475.00 194,000.00 144,525.00 25.50%
BuDding Inspection 14,248.20 57,013.71 158,000.00 100,986.29 36.08%
Electrical Inspection 0.00 1,958.40 9,000.00 7,041.60 21.76%
CM! Defense 436.56 436.56 4,000.00 3,563.44 10.91%
Animal Control 0.00 303.84 2,000.00 1,696.16 15.19%
Total Public Safety 21,&&8.09 332,308.84 1,018.000.00 883,893.18 32.71%
Public Works
Public Works 19,943.07 65,979.78 175,000.00 109,020.22 37.70%
Engineering Services 5,141.40 7,412.21 25,000.00 17,587.79 29.65%
Recycling 2,260.79 4,680.01 5,000.00 319.99 93.60%
Streets 2,046.62 3,397.56 80,000.00 76,602.44 4.25%
Street Ughtlng 2,259.$9 13,945.76 30,000.00 16,054.24 46.49%
Total Public Works 31,8&1.77 96,41&.32 316,000.00 218,684.88 30.21%
6/512007
3:35 PM .
budget GF 2007.x1s
~~ MTD YTD % of Budget
Budget Variance
6/31107 2007 2007 +f-) Used
Culture and Recreation
ParkIRec. Committee 127.48 827.48 3,000.00 2,172.52 27.58%
Park/Rec. Programs 0.00 10,417.34 15,500.00 5,082.66 67.21 %
Park Maintenance 8,300.78 20,536.90 67,000.00 46,463.10 30.65%
Total Culture and Recreation 8.428.28 31,781.72 86,600.00 63,718.28 37.17%
Communn, Development 48,107.60 147,668.38 0.00 (147,656.38) 0.00%
Economic Development
Economic Development 22.20 2,345.n 6,200.00 3,854.23 37.84%
EDC - Frozen Fete Des Lacs 0.00 0.00
EDC - Business Directory 0.00 0.00
EDC - Business Promotion 0.00 1,n1.39
EDC - Miscellaneous 22.20 22.20
Cougar Cash 0.00 0.00
Total Economic Development 22.20 2,34&.n 8,200.00 3,864.23 37.84%
Unallocated
Miscellaneous 0.00 0.00 0.00 0.00 0.00%
Refunds & Reimbursements 0.00 0.00 0.00 0.00 0.00% I
City Summer Festival 0.00 18,394.00 25,000.00 6,606.00 73.58% I
Total Miscellaneous 0.00 18,394.00 2&,000.00 1,808.00 73.&8"k I
Total Current Expenditures 166,409.19 874,209.27 2,028,700.00 1,302,147.11 43.09% I
Capital OuUay
General Government 0.00 0.00 5,000.00 5,000.00 0.00%
Public Safety 0.00 0.00 5,000.00 5,000.00 0.00%
Streets and Highways 0.00 125,391.52 113,000.00 (12,391.52) 110.97%
Culture and RecreatIon 0.00 0.00 25,000.00 25,000.00 0.00%
Total Capital OuUay 0.08 126,391.62 148,000.00 22,808.48 84.72%
TOTAL EXPENDITURES 166,409.19 _,_.79 2, 171,7Ob.00 1,324,766.69 46.92%
EXCESS (DEFICIT) OF REVENUES (137,848.38) (844,126.61) 181,200.00 877,889.13 N1A
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating Transfer In 0.00 0.00 0.00 0.00 N1A
Operating Transfer Out 0.00 0.00 (181,200.00) (181,200.00) N1A
Sale of General fixed Assets 9,611.00 9,611.00 0.00 (9,611.00) N1A
TOTAL OTHER FINANCING 9,111.08 9,111.00 (181 ,200.00) (190,811.00) N1A
SOURCES (USES)
EXCESS (DEFICIENCY) OF (128,036.38) (834,614.61) 0.00 881,868.13
REVENUE AND OTHER FINANCING
SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES
PREPARED BY: JOHN W. MEYER, FINANCE DIRECTOR
6/5/2007
3:35 PM
budget GF 2oo7.x1s
6/512007
4:06 PM
budget report water 07.x1s
Sewer Fund
Monthly Financial Report
Month Ended May 31,2007
MTD YTD Budget Variance % of Budget
&/31/07 2007 2007 +(-) Used
Operating Revenue:
Charges for Services 44.796.30 140.566.31 260.000.00 119.433.69 54.06%
Total Operating Revenue 44,796.30 140,566.31 260,000.00 119,433.69 54.06%
Operating Expenses:
Salaries and Benefits 8,251.87 49.778.95 65,000.00 15,221.05 76.58%
Professional Services 0.00 0.00 5,000.00 5.000.00 0.00%
Supplies 1.495.87 8.471.92 10,000.00 1,528.08 84.72%
MCES Disposal Charges 12,344.38 61,721.90 149,000.00 87.278.10 41.42%
Utilities 151.94 796.49 1.000.00 203.51 79.65%
Depreciation 0.00 0.00 90,000.00 90,000.00 0.00%
Total Operating Expenses 22,244.08 120,769.26 320,000.00 199,230.74 37.74%
OPERATING INCOME 22,662.24 19,797.05 (60,000.00) (79,797.0&) 0.00%
Nonoperating Revenue (Expense)
Interest on Investments 1.908.45 32.508.77 60,000.00 27.491.23 54.18%
Special Assessments 0.00 327.78 40.000.00 39,672.22 0.82%
Hook up Fees and Unit Charges 8,867.00 43.585.00 50,000.00 6,415.00 87.17%
Other Equipment (750.O4) (750.04) 0.00 750.04 0.00%
Interest Expense 0.00 0.00 (9.000.00) (9.000.00) 0.00%
Refunds & Reimbursements Rev 0.00 0.00 0.00 0.00 0.00%
Refunds & Reimbursements Exp 0.00 0.00 0.00 0.00 0.00%
Total Nonoperating Revenue . 10,026.41 76,671.51 141,000.00 66,328.49 63.67%
(Expense)
INCOME BEFORE OPERATING 32,&77.66 96,468.56 81,000.00 (14,468.56) 117.86%
TRANSFERS
OPERATING TRANSFERS OUT 0.00 0.00 0.00 0.00 0.00%
NET INCOME 32,&77.66 96,468.56 81,000.00 (14,468.56) 117.86%
CREDIT FOR DEPRECIATION ON 0.00 0.00 0.00 0.00 0.00%
CONTRIBUTED ASSETS
NET INCREASE IN RETAINED 32,&77.66 96,468.56 81,000.00 (14,468.56~. 117.ark
EARNINGS
PREPARED BY:
JOHN MEYER
FINANCE DIRECTOR
61512007
4:11 PM
budget report sewer 07.x1s
2007 MONTHLY CASH/GENERAL LEDGER BALANCE RECONClUAll0NS
2007 Interest 1/3112007 212812007 3/3112007 413012007
Bank Checking statement Balance $ 2,231,704.28 $ 2,184,289.31 $ 1,139,180.91 $ 999,165.22
Outstanding Deposits $ 992.34 $ 0.02 $ 0.02 $ 0.02
Outstanding Checks $ (94,070.87) $ (886,419.20) $ (138,499.23) $ (112,664.71)
Monthly Interest $ 26,834.87 $ 8,899.97 $ 6,737.63 $ 4,342.26 $ 3,696.68
Net Checking Account Balance $ 2,138,625.75 $ 1,297,870.13. $ 1,000,681.70 $ 886,500.53
Investments
MaInstreet Bank Rex CO
Beginning $ 265,934.53 $ 265,934.53 $ 265,934.53 $ 268,885.31
Other Tansactlons $
Monthly Interest $ 2,950.78 $ $ 2,950.78
ending Balance $ 265,934.53 $ 265,934.53 $ 268,885.31 $ 268,885.31
Malnstreet Bank CD's
Beginning
1000669381 COARS
4.24% 1000532637 COARS
5.41% 1001349356 COARS $ 3,000,000.00 $ 3,000,000.00 $ 3,039,673.91 $ 3,039,673.91
Other Transactions
Monthly Interest - CD $ $ $ $
Monthly Interest - COARS $ 39,673.91 $ 39,673.91
EndIng Balance $ 3,000,000.00 $ 3,000,000.00 $ 3,039,673.91 $ 3,039,673.91
MaInstreet Bank - Subtotal $ 5,404,560.28 $ 4,563,804.66 $ 4,309,240.92 $ 4,195,059.75
Smith Barney
Smith Bamey Money Fund
Beginning $ 10,969.20 $ 15,887.73 $ 25,533.32 $ 38,122.30
Monthly Adjustments $ 41,903.97 $ 4,918.53 $ 9,645.59 $ 12,588.98 $ 11,579.54
Other Transactions
endIng Balance. $ 15,887.73 $ 25,533.32 $ 38,122.30 $ 49,701.84
Smith Barney Gov't Bonds
Beginning $ 1,770,493.16 $ 1,770,493.16 $ 1,770,493.16 $ 1,770,493.16
FHLB OTD 9/29103 $ 100,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00
FHLB OTD 6I30I03 $ 100,411.37 $ 100,411.37 $ 100,411.37 $ 100,411.37
FHLMC OTD 8/14/03 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00
FHLMC OTD 6/30/03 $ 99,750.00 $ 99,750.00 $ 99,750.00 $ 99,750.00
FNMA OTD 217103 $ 205,000.00 $ 205,000.00 $ 205,000.00 $ 205,000.00
FNMA OTD 3130104 $ 100,000.12 $ 100,000.12 $ 100,000.12 $ 100,000.12
FNMA OTD 4/8/04 $ 200,394.17 $ 200,394.17 $ 200,394.17 $ 200,394.17
FHLB OTD 4/19104 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00
FHLM OTD 1 ~128103 $ $ $ $
FHLM OTD 3/25/04 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00
FHLM OTD 3/17/04 $ 99,937.50 $ 99,937.50 $ 99,937.50 $ 99,937.50
FHLM OTD 3/24/04 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00
FHLM OTD 2127/03 $ 165,000.00 $ 165,000.00 $ 165,000.00 $ 165,000.00
Other TJ'anSl!Ictlons
Monthly FaIr Market Adjustments $
EndIng Balance $ 1,770,493.16 $ 1,770,493.16 $ 1,770,493.16 $ 1,770,493.16
Smith Barney CD's
BegInning $ 475,100.00 $ 475,100.00 $ 475,100.00 $ 475,100.00
DIrect Merchants Bank $ $ $ $
Capitol One Bank $ $ $ $
Hemisphere NatJ Bank $ 96,000.00 $ 96,000.00 $ 96,000.00 $ 96,000.00
Lehman Brothers Bank $ 96,000.00 $ 96,000.00 $ 96,000.00 $ 96,000.00
CIB Bank $ 89,100.00 $ 89,100.00 $ 89,100.00 $ 89,100.00
Compass Bank $ $ $ $
1 st. NatJ Bk of Nevada $ 80,000.00 $ 80,000.00 $ 80,000.00 $ 80,000.00
Cole Taylor Bank $ 96,000.00 $ 96,000.00 $ 96,000.00 $ 96,000.00
Other Transactions
Monthly Adjustments $
EndIng Balance $ 457,100.00 $ 457,100.00 $ 457,100.00 $ 457,100.00
Smith Barney - Subtotal $ 2,243,480.89 $ 2,253,126.48 $ 2,265,715.46 $ 2,277,295.00
Total Cashllnvestments Per Statement $ 7,648,041.17 $ 6,816,931.14 $ 6,574,956.38 $ 6,472,354.75
General Ledger Cash Balance $ 7,648,041.17 $ 6,816,931.14 $ 6,574,956.38 $ 6,472,354.75
Total Monthly Interest & Adjustments $ 111,363.53 $ 13,818.50 $ 16,383.22 $ 59,555.93 $ 15,276.22
2007 MONTHLY CASH/GENERAL LEDGER BALANCE RECONClUAnC
2007 Interest &131/2007 6130/2007 7/31/2007 8131/2007
Bank Checking Statement Balance $ 888.767.08
OutstandIng Deposits $ 0.02
Outstanding Checks $ (101,476.21)
Monthly Interest $ 26,834.87 $ 3,158.33
Net CheckIng Account Balance $ 767.281.87 $ $ $
Investments
MaInstreet Bank Rex CO
Beginning $ 288,886.31
Other Tansactlons
Monthly Interest $ 2,950.78
ending Balance $ 288,886.31 $ $ $
Malnstreet Bank CO's
Beginning
1000669381 COARS
4.24% 1000532637 COARS
5.41% 1oo1349356COARS $ 3,039,673.91
Other Transactions
Monthly Interest - CD $
Monthly Interest - COARS $ 39,673.91
ending Balance $ 3,039,873.91 $ $ $
Malnstreet Bank . Subtotal $ 4,075,841.09 $ $ $
Smith Barney
Smith Barney Money Fund I i
Beginning $ 49,701.84 I I
Monthly Adjustments $ 41,903.97 $ 3,171.33
Other Transactions $ 80,000.00
. Ending Balance $ 132,873.17 $ $ $
Smith Barney Gov't Bonds
Beginning $ 1,770,493.18
FHLB OTD 9129/03 $ 100,000.00
FHLB OTD 6130/03 $ 100.411.37
FHLMC OTD 8/14/03 $ 1&0,000.00
FHLMC OTD 6130103 $ 99,7&0.00
FNMA OTD 2/7/03 $ 205,000.00
FNMA OTD 3130104 $ 100,000.12
FNMA OTD 418104 $ 200,394.17
FHLB OTD 4/19/04 $ 2&0,000.00
FHLM OTD 11/28103 $
FHLM OTD 3/25/04 $ 1&0,000.00
FHLM OTD 3/17/04 $ 99,937.&0
FHLM OTD 3/24104 $ 1&0,000.00
FHLM OTD 2/27/03 $ 185.000.00
Other Transactions
Monthly Fair Marf<et Adjustments $
ending Balance $ 1,770,493.18 $ $ $
Smith Barney CD's
Beginning $ 4&7,100.00
DIrect Merchants Bank
Capitol One Bank
Hemisphere NatI Bank $ 98,000.00
Lehman BrothelS Bank $ 98,000.00
CIB Bank $ 89,100.00
Compass "Bank
1 st. NatI Bk of Nevada $
Cole Taylor Bank $ 98,000.00
Other Transactions
Monthly Adjustments $
ending Balance $ 377,100.00 $ $ $
Smith Barney . SubtDtaI $ 2,280,488.33 $ $ $
Total CasMnvestments Per Statement $ 8.3&8.307 A2 $ $ $
General Ledger Cash Balance $ 8,3&8,307.42
Total Monthly Interest & Adjustments $ 111,363.53 $ 8.329.68 $ $ $
CITY OF CENTERVILLE
Cash Balances jwm
MTD MTD Current
FUND Oeser Account Debit CredIt Balance
Last Dim 10100
GENERAL FUND G 101-10100 $115,686.75 $267,924.45 $902,036.24
MOUND~LDEBTSER~CE G 306-10100 $0.00 $0.00 $22,878.11
21ST AVE IMP DEBT SER~CE G 308-10100 $0.00 $0.00 $41,447.89
JOINT POUCE STATION 2005A G 309-10100 .$0.00 $6,247.13 $7,578.79
MUNI STREET IMP DEBT SER~CE G 312-10100 $6,572.09 $0.00 $329,501.14
IND PARK TlF 1-4 DEBT SERV G 317-10100 $0.00 $0.00 $15,494.40
PARKVIEW DEVELOPMENT DEBT SERV G 324-10100 $0.00 $0.00 $2,365.45
ElEMWA~RMNN~DEBTSERV G 325-10100 $0.00 $0.00 $6,463.41
G.O. Bond Phe8sant 12001 G 327-10100 $371.32 $0.00 $425,825.19
G.O. Bond Hunters Cross I 2000 G 336-10100 $54.35 $0.00 $62,649.99
CSAH 14 WATERMAlN G 339-10100 $0.00 $0.00 -$0.07
PHEASANT MARSH II G.O. 2002 G 342-10100 $639.84 $0.00 $733,473.21
PEL TIER PRESERVE DEBT SER~CE G 345-10100 $16,446.18 $0.00 -$6,935.08
Hunters Crossing II G.O. Bond G 346-10100 $595.30 $431.25 -$84,519.62
GO Bond 2006A (Hunter3lback) G 348-10100 $80.15 $0.00 $126,374.44
PARK CAPITAL PROJECT G 402-10100 $0.00 $22,363.86 $47,776.48
21ST AVENUE IMPROVEMENTS G 408-10100 $0.00 $0.00 $1,090.71
MUNI STREET CAPITAL PROJECT G 412-10100 $98.88 $0.00 $106.595.48
PEDESTRIAN TRAIL WAYS G 414-10100 $0.00 $0.00 $12,817.25
STORM WATER IMP PROJECTS G 415-10100 $5,311.04 $3.957.04 $313,196.58
PHEASANT MARSH III G 443-10100 $44.53 $1,297.69 $46,782.74
HU~RS CROSSING PHASE II G 446-10100 $0.00 $0.00 $45,103.63
C~R~LLE TOWN OFFICE PARK G 447-10100 $0.00 $0.00 $8,437.00
HUNTER'S CROSSING 3RD ADDN G 448-10100 $149.96 $100.00 $171,389.56
2006 Municipal Improvements G ~101oo $112.06 $1,-676.00 $111,995.04
WA~R FUND G 601-10100 $38,032.09 $16,543.49 $620,924.88
SEWER FUND G 602-10100 $62,718.85 $41,287.85 $2,269,393.15
CABLE TV FUND G 614-10100 $0.00 $1,131.96 $16,171.43
Last Dim 10100 $246,913.39 $362,960.72 $6,356,307.42
$246,913.39 $362,960.72 $6,356,307.42
06104107 3:28 PM
Page 1
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Council Wort Se80n
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June 7 ~ 2007
DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF CENTERVILLE, MINNESOTA
AND
CENTERVILLE MAINSTREET, LLC
Dated:
. 2007
This document was drafted by:
BRADLEY & DEIKE, P. A.
4018 West 65th Stree4 SUite 100
Edina, MN 55435
Telephone: (952) 926-5337
TABLE OF CONTENTS
Page
Introduction................................................................................................................................... 1
ARTICLE I DEFINITIONS..... ......... ............ ...... .......... .......... .............. ........................ ....... 2
Section 1.1. Definitions............................................................................................. 2
ARTICLE II REPRESENTATIONS ... ...................... .................. ............ ............ ................. 7
Section 2.1. Representations of th.e City .................................................................. 7
Section 2.2. Representations ofth.e Developer ........................................................ 8
ARTICLE ill ACQUlSmON AND CONVEYANCE OF PROPERTY; CITY
ASSISTANCE... ............. ..... ..................... ............ .......... .............. ............. .... 10
Section 3.1. Development Proposal Generally...................................................... 10
Section 3.2. Development Proposal Specifically................................................... 10
Section 3.3. Developer Actions ............................................................................. 12
Section 3.4. City Actions ....................................................................................... 13
Section 3.5. Conditions Precedent to City's Initiation of Eminent Domain
Action................................................................................................. 15
Conveyance of Parcels .......... .... .... ............. ........................... ............. 16
Schedule of Phases and Sub-Phases .................................................. 17
Reimbursement-for Public Development Costs................................. 17
City Rights to Acquire Acquisition Property from Developer .......... 17
Section 3.6.
Section 3.7.
Section 3.8.
Section 3.9
Section 3.10
Section 3.12
City Costs.. ........ .............. ............ ........ ..... ........ ..... .................. ........ ... 17
Business Subsidy Law....................................................................... 17
ARTICLE N CONSTRUCTION OF MINIMUM IMPROVEMENTS .............................. 19
Section 4.1. Construction and Operation of Minimum Improvements.................. 19
Section 4.2. Construction Plans ............................................................................. 19
Section 4.3. Timing of Construction....................................................................... 20
ARTICLE V IN"SURANCE.. ... ........ ..... ................. ..... ...... .......... ............ ...................... ....... 20
Section 5.1. Insurance ............................................................................................ 20
ARTICLE VI TAXES; TAX IN'CREMENT ........................................................................ 21
Section 6.1. Real. Property Taxes .................................. ......................................... 21
Section 6.2. Creation of Tax Increment Districts .................................................. 21
ARTICLE VII MORTGAGE FIN'ANCIN'G .......................................................................... 22
Section 7.1. Limitation Upon Encumbrance of Property ....................................... 22
Section 7.2. Approval of Mortgage........ ................. ....................................... ........ 22
Section 7.3. Modification for th.e Benefit of Mortgagees ..................................... 22
ARTICLE VITI PROIDBmONS AGAIN'ST ASSIGNMENT AND TRANSFER;
INDEMNIFICA nON....... .............. .... ......... ......... ........ ..... ......................... ... 23
Section 8.1.' Transfer of Substantially All Assets .................................................. 23
Section 8.2.
Prohibition Against Transfer of Property and Assignment of
Agreement........................ ....................................................................................................................................... 23
Section 8.3.
Section 8.4.
Release and Indemnification Covenants ............................................ 24
ApprovaJ.s ............................................ ...................... ........................................................... ............................. 25
ARTICLE IX DEVELOPER EVENTS OF DEF AUL T....................................................... 25
Section 9.1. Events of Default Defined .................................................................25
Section 9.2. Remedies on Default.......................................................................... 26
Section 9.3. No Remedy Exclusive........................................................................ 27
Section 9.4. No Implied Waiver ............................................................................ 27
Section 9.5. Agreement to Pay Attorney's Fees and Expenses .............................. 27
ARTICLE X ADDmONAL PROVISIONS ...................................................................... 27
Section 10.1. Restrictions on Use ............................................................................ 27
Section 10.2. Conflicts of Interest...... ...................... ................ ...................... ......... 27
Section 10.3. Titles of Articles and Sections ...........................................................27
Section 10.4. Notices and Demands ........................................................................ 28
Section 10.5. Counterparts ........ ..... ......................... .......... .................... ................... 29
Section 10.6. Modification...... ................ ............ .... .................... ......... ............ ........ 29
Section 10.7. Law Governing .................................................................................. 29
Section 10.8. City Approvals .....'.............................................................................. 29
Section 10.9. Rule of Construction .......................................................................... 29
SCHEDULE A-I DESCRIPTION OF DEVELOPMENT PROPERTY
SCHEDULE A-2 PICTORIAL OF PROJECTS
SCHEDULE B PERMITTED ENCUMBRANCES
SCHEDULE C DEPICTION OF MINIMUM IMPROVEMENTS
SCHEDULE D PUBLIC DEVELOPMENT COSTS
SCHEDULE E ESTIMATES OF FINANCIAL ASSISTANCE
SCHEDULE F FORM OF NOTE
SCHEDULE G PUBLIC IMPROVEMENTS
SCHEDULE H CITY FEE SCHEDULE
SCHEDULE I SCHEDULE OF DEVELOPMENT ACTIVITIES
DEVELOPMENT AGREEMENT
THIS AGREEMENT, made as of the _ day of . 2007, by and between
the City of Centerville, Minnesota, a statutory city under the laws of the State of Minnesota (the
"City") and Centerville Mainstreet, LLC, a Minnesota limited liability company (the
"Developer").
WITNESSETH:
WHEREAS, in the summer of 2005, the City commissioned Damon Farber Associates to
lead a community task force to prepare a master plan, a set of design guidelines and zoning
amendments for the redevelopment of the City's downtown area; and
WHEREAS, on January 11, 2006, the City adopted a master plan and development
guidelines (collectively, the "Mastel' Plan") to provide a suggested framework for the
redevelopment of the City's downtown as a vibrant mixed-use destination; and
WHEREAS, subsequent to the adoption of the Master Plan the City discussed the Master
Plan and the redevelopment contemplated in the Master Plan with interested real estate
developers; and
WHEREAS, at a joint City Council and City Planning Commission work session held on
August 9, 2006, the Developer presented its qualifications to act as developer of the
redevelopment projects contemplated in the Master Plan; and
WHEREAS, the City and the Developer entered into a Preliminary Development
Agreement dated as of September 13, 2006 (the "Preliminary Development Agreement"), which
designated the Developer as the exclusive developer of the property encompassed by the Master
Plan and pursuant to which the City and Developer agreed to attempt to negotiate a definitive
development agreement that would set forth their respective rights and responsibilities with
regard to the implementation of the Master Plan; and
WHEREAS, pursuant to Minnesota Statutes, Sections 469.124 to 469.134, the City is
authorized to establish municipal development districts to facilitate the development and
redevelopment of areas of the City; and
WHEREAS, the City has created its Municipal Development District No. 1 (the
"Project") by adopting a development program (the "Development Programj which Project
encompasses the area covered by the Master Plan (which area is referred to herein as the "Project
Area''); and
WHEREAS, pursuant to the Minnesota Tax Increment Financing Act, Minnesota
Statutes, Sections 469.174 to 469.1799, the City is authorized to finance the capital and
adminimative costs of a municipal development district with tax increment revenues derived
from one or more tax increment financing districts established within such municipal
development district; and
WHEREAS, among the major objectives of the City in establishing the Project are to
eradicate blight and blighting conditions existing within the City, to enhance the tax base of the
City, to provide decent, safe, and sanitary housing opportunities for the residents of the City, to
promote and secure the prompt commercial development of certain real property located in th~
Project Area which property is not now in productive use or in its highest and best use, in a
manner consistent with the City's Comprehensive Plan and with a minimum adverse impact on
the environment, and to promote and create additional employment opportunities within the City
for residents of the City and the surrounding area, thereby improving living standards and
reducing unemployment;
WHEREAS, the City is willing to consider creating a series of tax increment financing
districts to provide a source of funds to offset a portion of the extraordinary costs associated with
the redevelopment of the Project as the Developer proceeds with the various phases of the
redevelopment effort; and
WHEREAS, as a part of the implementation of the Master Plan, within the Project Area
the City has acquired one parcel of property (the "City Property") and the City has the legal
authority to acquire other properties in order to facilitate the redevelopment of the Project Area;
and
WHEREAS, the City is willing to work with the Developer under the terms provided in
this Agreement to acquire properties in the Project Area in order to assist in the redevelopment
effort; and
WHEREAS, due to the high costs associated with the redevelopment of land which is
occupied by structures the City and Developer have determined that the redevelopment of the
Project Area, as provided herein would not be economically feasible absent the financial and
other assistance on the part of the City contemplated by this Agreement; and
WHEREAS, the City believes that the redevelopment of the Project Area as more fully
set forth in this Agreement pursuant to the terms of this Agreement, and fulfillment of this
Agreement are vital and are in the best interests of the City and the health, safety, morals and
welfare of its residents, and in accordance with the public purpose and provisions of the
applicable state and local laws and requirements under which the Project has been undertaken
and is being assisted.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
ARTICLE I
DEFINITIONS
2
Section 1.1. Definitions. All capitalized terms used and not otherwise defined herein
shall have the following meanings unless a different meaning clearly appears from the context:
"Acquisition Property" means that portion of the Development Property described as
such on the attached Schedule A-I proposed to be acquired by the City and/or the Developer
pursuant to the terms of this Agreement
"Acf'means Minnesota Statutes, section 469.124 to 469.134.
"Agreemenf' means this Agreement, as the same may be from time to time modified,
amended or supplemented in accordance with its terms.
"Available Tax Increment" means with respect to any Phase or Sub-Phase a portion of
the Tax Increment generated with respect to the Phase or Sub-Phase and the portion of the
Development Property on which the Phase or Sub-Phase is located that is negotiated by the City
and Developer as necessary to make development of the Phase or Sub-Phase fincancially
feasible.
"City" means the City of Centerville, Minnesota.
"City Property" means that portion of the Development Property described as such on the
attached Schedule A-I that is owned by the City.
"Construction Plans" means the Construction Plans for any Phase or Sub-Phase and shall
include but not be limited to the plans, specifications, drawings and related documents of the
construction work to be performed by the Developer on the Phase or Sub-Phase, and the plans
(a) shall be as detailed as the plans, specifications drawings and related documents which are
submitted to the building inspector of the City, and (b) shall include at least the following: (1)
site plan; (2) foundation plan; (3) floor plan for each floor; (4) cross sections of each (length and
width); and (5) elevations (all sides).
"County" means Anoka County, Minnesota.
"Developer" means Centerville Mainstreet, LLC, a Minnesota limited liability company,
its successors and assigns.
"Development Property" means the real property identified on Schedule A-I and
depicted on Schedule A-2, and consisting of the City Property and the Acquisition Property.
"Event of Defaulf' means any of the events described in Section 9.1.
"Holder" means the owner of a Mortgage.
"Master Plan" means the Master Plan and Development Guidelines for Downtown
Centerville prepared by Damon Farber Associates, Benshoof& Associates and KKE Architects,
Inc. and adopted by the City Council of the City on January 11,2006.
3
"Minimum Improvements" means the improvements to be constructed on the
Development Property for each applicable Phase or Sub-Phase. The parties' current
understanding as to what will constitute the Minimum Improvements, and the Phases and Sub-
Phases thereof, is generally depicted on Schedule C . to this Agreement The Minimum
Improvements will be more SPeCifically defined pursuant to Section 3.3(c) and 3.4(c).
''Mortgage'' means any mortgage or security agreement in which the Developer has
granted a mortgage or other security interest in the Development Property, or any portion or
Parcel thereof, or any improvements constructed thereon, and which is a permitted encumbrance;
"Net Proceeds" means any proceeds paid by an insurer to the Developer or the City or the
City under a policy or policies of insurance required to be provided and maintained by the
Developer and remaining after deducting all expenses (including fees and disbmsements of
counsel) incurred in the collecti,on of such proceeds.
''Note'' or -''Notes'' means any tax increment revenue note or notes issued by the City as
reimbursement to the Developer for Public Development Costs incurred and paid by the
Developer for each Sub-Phase, each of which notes shall be substantially in the form of the note
attached hereto as Schedule F.
"Parcel" means a portion of the Development Property on which a Phase or Sub-Phase
will be constructed.
"Permitted Encumbrances" means the encumbrances described in Schedule B to this
Agreement
"Person" means any individual, corporation, partnership, joint venture, association, joint-
stock company, trust, unincorporated organi7.ation, or government or any agency or political
subdivision thereof.
"Phase" means the development of the Development Property pursuant to this Agreement
in the following separate consecutive order: Phase I, Phase IT, Phase ill or Phase IV. Each Phase
will be completed prior to the parties being bound to proceed to any subsequent Phase.
"Phase r' means that portion of the Minimum Improvements currently anticipated to be
constructed on Blocks [1, 2, 7, 8 & 9] of the Development Property. It is currently anticipated
that Phase I will consist of the construction of the following in four (4) Sub-Phases: (a) _
L-) for-sale townhomes ("Sub-Phase I-Bl-2''), (b) L-) affordable [tax credit] rental
units ("Sub-Phase I-B7''), (c) () square feet of first floor retail space and at
least _ L-) rental units ("Sub-Phase I-B8''), and (d) () square feet
commercial building ("Sub-Phase I-B9''). It is currently anticipated that Phase I will be financed
according to the sources and uses attached hereto as Schedule C-1.
"Phase IT" means that portion of the Minimum Improvements currently anticipated to be
constructed on [Blocks 5, 6 and SWC/EHj of the Development Property. It is currently
anticipated that Phase IT will consist of the construction of the following in three (3) Sub-Phases:
(a) _ L-) square feet of first floor retail space and at least _ L-) rental units ("Soo-
4
Phase 1-B4"), (b) _ L..J square feet of first floor retail space and at least _ L..J rental
units ("Sub-Phase 2-B5"), and (c) _ L..J for-sale townhomes ("Sub-Phase 2-BE-W'').
"Phase III" m~ that portion of the Minimum Improvements currently anticipated to be
constructed on [Block 4 and Lake Area] of the Development Property. It is currently anticipated.
that Phase III will consist of the construction of the following in two (2) Sub-Phases: (a) _
L..J for-sale townhomes ("Sub-Phase 3-B 1 0''), and (b) L-J senior cooperative
units ("Sub-Phase 3-B6).
"Phase IV" means that portion of the Minimum Improvements currently anticipated to be
constructed on [Block 3] of the Development Property. It is currently anticipated that Phase IV
will consist of the construction in one Phase of the following: _ L..J square feet of first
floor retail space and at least _ L..J rental units ("Sub-Phase 4-B3'').
"Preliminary Development Agreement" means the Preliminary Development Agreement
dated as of September 13,2007, between the City and Developer.
"Project" means the City's Municipal Development District No.1.
"Project Area" means the real property located within the boundaries of the Project.
"Project Plan" means the development program adopted by the City in connection with
the creation of the Project
"Public Development Costs" means costs incurred by the Developer in connection with
the acquisition of the Development Property and the development of the Minimum
Improvements assuming the parties agree on which costs will be reimbursed by the City under
this Agreement A list of the types of costs that the parties contemplate will be Public
Development Costs for each Phase and Sub-Phase is attached hereto as Schedule D.
"Public Improvements" means the public improvements preliminarily described on
Schedule E to this Agreement which the parties expect will be constructed in connection with the
development of the Minimum Improvements. The Public Improvements will be more
specifically defined pursuant to Section 3.3(c) and Section 3.4(c).
"State" means the State of Minnesota.
"Sub-Phase" means each individual component of each Phase, as generally described in
the description for each applicable Phase.
"Tax Increment" means that portion of the real property taxes paid with respect to the
.Property and Improvements that is received by the City as tax increment pursuant to the Tax
Increment Act, after deducting amounts required by law to be deducted therefrom.
"Tax Increment Act" means the Tax Increment Financing Act, Minnesota Statutes,
Sections 469.174-469.1799, as amended and as it may be further amended from time to time.
5
''Tax Increment District" means any tax increment district created within the Project Area
pursuant to the terms of this Agreement.
"Tax Increment Plan" means the tax increment financing plan adopted by the City in
connection with its creation of a Tax Increment District.
"Termination Date" means, as to each Phase, the earlier of: (a) substantial completion of
the Minimum Improvements, (b) the date the parties agree in writing that they are unable to
reach an agreement as to an additional Phase pursuant to Section 3.2(d), or (c) .20_.
''Unavoidable Delays" means delays, outside the control of the party claiming its
occurrence, which are the direct result of strikes, other labor troubles, unusually severe or
prolonged bad weather, acts of God, terrorist acts, fire or other casualty to the Minimum
Improvements, litigation commenced by third parties which, by injunction or other similar
judicial action or by the exercise of reasonable discretion, directly results in delays, acts of any
federal, state or local governmental unit (or the City) which directly result in delays (except with
respect to performance of the City's obligations hereunder), failure to receive or delays in the
receipt of necessary approvals from federal, state or local authorities, which directly result in
delays. Time lost as a result of Unavoidable Delays applicable to any deadline set forth in this
Agreement shall be added to extend said deadline by a number of days equal to the number of
days lost as a result of Unavoidable Delays. In order for a party to have the benefit of an
Unavoidable Delay the party must notify the other party of the existence and nature of the
Unavoidable Delay on or prior to the date of the occurrence of the event giving rise to the
Unavoidable Delay.
6
ARTICLE n
REPRESENTATIONS
Section 2.1. Representations of the City.
representations:
The City makes the following
(a) The City is a statutory city under the laws of the State. Under the provisions of
the Act, the City believes that it has the power to enter into this Agreement and carry out its
obligations hereunder, and has duly authorized the execution, delivery and performance of this
Agreement by action of its City Council.
(b) The activities of the City are undertaken pursuant to the Act and are undertaken in
accordance with the Project Plan in furtherance of the objectives of the Project and the Project
Plan which include, but are not limited to, the pmposes of clearing blighted, deteriorated,
deteriorating, under used and inappropriately used areas of the City, increasing the property tax
base in the City; promoting the development of underutilized land; eliminating and removing
buildings that are economically or functionally obsolete; producing decent, safe and sanitary
housing within the City, providing maximum opportunity, consistent with the sound needs of the
City as a whole for redevelopment by private enterprise; providing general design guidance in
conjunction with suitable development controls in order to enhance the physical environment of
the area, and creating employment opportunities within the City.
(c) To the best of the City's knowledge and belief, the Project is a "development
district" within the meaning of the Act and was created, adopted and approved in accordance
with the terms of the Act
(d) The City will, at no cost to the City, cooperate with the Developer with respect to
any litigation commenced with respect to the Project Plan, Project, or Minimum Improvements.
(e) The City will, at no cost to the City, cooperate with and assist the Developer in
obtaining governmental approvals, permits and authorizations necessary to construct the
Minimum Improvements.
(f) There are no pending or threatened legal proceedings of which the City is aware
which if successful would threaten the economic viability of the City or the validity or
enforceability of this Agreement or which would restrain or enjoin the transactions contemplated
by this Agreement.
(g) The City agrees to cooperate with Developer with respect to obtaining any
required rezoning, permits, licenses and approvals needed for the redevelopment of the
Development Property and will join in the execution of any documents and instruments which
may be required or which may be reasonably requested by Developer in connection therewith;
provided, that the City shall not by virtue of this Agreement be bound to grant any zoning or
other approvals which may only be granted by the City after the holding of a hearing on the
matter.
7
(h) The City has no knowledge of any facts the existence of which would cause it or
the Development Property to be in violation of any local, state or federal law, regulation or
review procedme, including but not limited to environmental laws, or which would give any
person a valid claim under any such law, regulation or review procedme.
(i) Except for facts disclosed in any environmental assessment or report prepared on
behalf of the City or the Developer, the City has no knowledge of the presence of hazardous
substances (as the same are described in the regulations promulgated under the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended, and/or in the
environmental laws of the State of Minnesota, and specifically including petroleum and related
hydrocarbons and their by-products, asbestos and polychlorinated biphenyls) in, on or under the
Development Property.
G) The City will promptly share with Developer any information which comes to the
attention of the City which relates to hazardous substances on the Development Property, and
will promptly provide copies to Developer of any reports, correspondence and other
documentation relating to the same.
(k) There is no litigation, condemnation or proceeding of any kind pending or to the
City's knowledge threatened, against any portion of the Development Property.
Q) The City has no knowledge of any new or additional fees, charges or expenses not
currently part of the City fee structure for similar developments that the Developer will be
required to pay in order to construct the Minimum Improvements and Public Improvements. A
copy of the City's current fees is attached as Schedule G. (Is this aeeeptable?)
(m) The City represents and warrants that there will be no certified, pending or levied
special assessments upon the Development Property arising from the Public Improvements or the
development of Minimum Improvements on the Development Property, except as the City and
Developer may agree as a method of financing the Public Development Costs. (Is this
aeeeptable?)
Section 2.2. ReDresentations of the Develoner. The Developer makes the following
representations:
(a) The Developer is a 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,
member con1ro1 agreement, bylaws or the laws of the State, has power to enter into this
Agreement and has duly authorized the execution, delivery and performance of this Agreement
by proper action of its members.
(b) If the Developer acquires the Development Property or any Parcel thereof
pursuant to the terms of this Agreement, the Developer will construct the Phase or Sub-Phase
thereon in accordance with the terms of this Agreement, the Development Plan and all local,
state and federal laws and regulations (including, but not limited to, environmental, zoning,
building code and public health laws and regulations), subject to variances necessary to construct
the improvements contemplated in the Construction Plans approved by the City.
8
(c) Except for facts disclosed in any environmental assessment or report prepared on
behalf of the City or the Developer, the Developer has received no notice or communication
from any local, state or federal official that the activities of the Developer or the City in the
Project Area may be or will be in violation of any environmental law or regulation, and the
Developer, to the best of its knowledge, is aware of no facts the existence of which would cause
it to be in violation of any local, state or federal environmental law, regulation or review
procedure.
(d) The Developer will cooperate with the City with respect to any litigation
commenced with respect to the Development Plan, Project, or Minimum. Improvements.
(e) The Developer would not be able to construct the Minimum. Improvements but for
the execution of this Agreement and the tax increment and other assistance to be provided
hereunder.
(f) The Developer will obtain, or cause to be obtained, in a timely manner, all
required permits, licenses and approvals and will meet, in a timely manner, all requirements of
all applicable local, state, and federal laws and regulations which must be obtained or met before
the Minimum. Improvements may be lawfully constructed.
(g) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement is prevented, limited by or conflicts with (unless all necessary
waivers, consents or the like have been obtained) or results in a breach of, material terms,
conditions or provision of any contractual restriction, evidence of indebtedness, agreement or
instrument of whatever nature to which the Developer is now a party or by which it is bound, or
constitutes a material default under any of the foregoing.
(h) The Develope:r will cooperate fully with the City in determining a mutually
acceptable resolution of any traffic, parking, trash removal or public safety problems which may
arise in connection with the construction and operation of the Minimum. Improvements.
9
ARTICLE m
ACQUISITION, FINANCING AND CONSTRUCTION PLANS
Section 3.1. Development Proposal Generallv. The City selected the Developer as the
exclusive developer to work with the City to implement the concepts contained in the Master
Plan for the revita1i7ation and redevelopment of the Project Area. The Project Area property,
encompassed by the Master Plan, is the Development Property and consists of the City Property
and the Acquisition Property. The City owns the City Property. Multiple parties own the
Acquisition Property. The City determined that the Developer's proposal for the redevelopment
of the Development Property is in the best interests of the City and the City's residents and that,
therefore, the City is willing to sell the City Property to the Developer for the sum of
$ . and assist the Developer by using its best efforts to acquire the Acquisition
Property, if requested by Redeveloper. Furthermore, the City agrees to use its best efforts to
obtain and provide certain funding, including but not limited to Tax Increment generated by the
Minimum Improvements, to offset a portion of the Developer's costs, all as provided for in this
Agreement. Due to the high cost of acquiring and redeveloping the Development Property, the
City has determined that the Minimum Improvements would not be constructed without the
financial participation of the City as proposed by the Developer. Generally, the City and
Developer intend that during the term of this Agreement they will endeavor to do the following:
(a)
Phases;
Further refine the plans for the development of the various Phases and Sub-
(b) Attempt on a voluntary basis to secure control of the Development Property
through the negotiation of options or purchase agreements with the owners thereof;
(c) Identify those Parcels of the Development Property that they will be tmable to
acquire on a voluntary basis;
(d) Analyze the financial feasibility of the development of the Minimum
Improvements, including the amount of any necessary public financial assistance; and
(e) Identify the sources of available funds to be used to provide the identified
necessary public financial assistance.
(f) Analyze the applicability of the Minnesota Business Subsidy Law, MinneSota
Statutes, sections 1161.993 to 116J.995.
Section 3.2. Development Proposal Specifically. The Developer and City have
analyzed the Developer's proposed development of Phase I and the Developer has committed to
undertake the development of that Phase, subject to the terms of this Agreement The City and
Developer intend that during the term of this Agreement they' will endeavor to reach a final
agreement on the following for each Sub-Phase of each applicable Phase, prior to proceeding
with the next Phase:
10
(a) Acquisition:
(i) For Phase I only, negotiate the terms of the sale by the City to the
Developer of the City Property.
(ii) Developer shall attempt on a voluntary basis to secure control of the
Acquisition Property included in that particular Phase through the negotiation of options
or purchase agreements with the owners thereof.
(ill) Developer will identify to the City those Parcels of the Acquisition
Property for that particular Phase that it will be unable to acquire on a voluntary basis.
(iv) City will determine whether it can use its eminent domain authority to
acquire those portions of the Acquisition Property for that particular Phase that Developer
is unable to acquire on a voluntary basis.
(v) City and Developer will determine whether they can agree on the terms
and conditions of the City's acquisition of any portion of the Acquisition Property that
Developer is unable to acquire on a voluntary basis for that particular Phase, including,
without limitation, the amounts of deposits and security to be provided by the Developer
to the City to cover the City's costs of acquisition and related relocation costs.
(b) Financing:
(i) For Sub-Phases other than the Sub-Phases in Phase I the City and
Developer will determine whether they can agree on the financial feasibility of the
development of the Minimum Improvements and Public Improvements for each Sub-
Phase of the applicable Phase.
(ii) For Sub-Phases other than the Sub-Phases in Phase I Developer will
identify the sources of available funds to be used to construct the Minimum
Improvements and Public Improvements for each Sub-Phase of the applicable Phase.
(ill) For Sub-Phases other than the Sub-Phases in Phase I City shall use its best
efforts to endeavor to obtain and procure any available and necessary public financial
assistance for each Sub-Phase of the applicable Phase, including but not limited to grants
and Tax Increment.
(iv) For Sub-Phases other than the Sub-Phases in Phase I City and Developer
will negotiate the terms of any Notes to be issued to the Developer to reimburse the
Developer for Public Development Costs rell:!1ed to such Sub-Phases.
(c) Construction Plans:
(i) For Sub-Phases other than the Sub-Phases in Phase I Developer and City
will refine and agree upon final Construction Plans for the development of the Minimum
11
Improvements for each Sub-Phase of the applicable Phase. For Phase I the Developer
will submit Construction Plans to the City by the times set forth on Schedule I.
(ii) For Sub-Phases other than the Sub-Phases in Phase I Developer and City
will refine and agree upon final Construction Plans for the development of the Public
Improvements for each Sub-Phase of the applicable Phase. For Phase I the Developer
and City will agree upon Construction Plans for the Public Improvements by the times set
forth on Schedule I.
(d) If the parties are unable to reach an agreement on the acquisition, financing and
Construction Plans for any Phase as generally described above and specifically described in
Sections 3.3 and 3.4, for each Sub-Phase of each Phase by the anticipated commencement date
for that Phase as set forth on Schedule I attached hereto, either party may terminate this
Agreement upon written notice to the other upon which this Agreement shall terminate as it
relates to that Phase and all subsequent Phases. If the parties do reach an agreement on the
acquisition, financing and construction Plans for a Phase, they agree to negotiate a definitive
development agreement memorializing the terms and conditions for the development for such
Phase.
Section 3.3. Developer Actions. During the term of this Agreement, for each
applicable Phase, the Developer agrees to undertake the following actions:
(a) Acquisition Activities:
(i) On or before September 30, 2007 for Phase I, or at least L-J
days prior to the anticipated commencement date of each subsequent Phase as set forth on
Schedule I, the Developer shall attempt to secure on a voluntary basis, purchase
agreements or options under which it may acquire the Acquisition Property necessary to
construct the Phase.
(ii) Upon request by the City the Developer agrees to inform the City of the
status of the negotiations with owners of the Acquisition Property.
(ill) With respect to those Parcels in each Phase which the Developer is unable
to secure purchase agreements or options, the Developer shall report to the City and
provide such documentation as the City may require detailing the Developer's efforts to
acquire the Parcel.
(iv) For each Phase, Developer shall cause to be prepared by a qualified
relocation consultant acceptable to the City a relocation plan detailing the relocation
benefits and payments estimated to be payable to persons displaced from the Acquisition
Property.
(v) Prior to the City's initiation of a proceeding to acquire a Parcel of the
Acquisition Property through the use of its powers of eminent domain, the Developer will
enter into a contract with a relocation consultant, acceptable to the City, to provide
relocation services relative to the relocation of all persons and entities involuntarily
12
displaced as a result of the development of the Minimum Improvements. The contract
shall provide that upon completion of the relocation of all such persons, such relocation
consultant shall provide to the City a certification, in a form acceptable to the City, to the
effect that such persons and entities have been relocated in accordance with State law and
the fedeml Uniform Relocation Act The contract shall also provide that the relocation
consultant will provide reports to the City, upon request by the City, as to the status of the
relocation of parties displaced from the Acquisition Property.
(b) Financing Activities:
(i) Within sixty (60) days after either the date of this Agreement for Phase I,
or thereafter at least <--J days prior to the anticipated commencement date of
each subsequent Phase as set forth on Schedule I, the Developer shall provide to the City
for its review and approval a preliminary financial plan showing how the Developer
intends to :finance the acquisition of the applicable Development Property and the
construction of the Minimum Improvements and Public Improvements for the applicable
Phase.
(ii) Within sixty (60) days after either the date of this Agreement for Phase I,
or thereafter at least <--J days prior to the anticipated commencement of each
subsequent Phase as set forth on Schedule I, the Developer shall provide to the City such
documentation as the City may require to allow the City and its consultants to undertake
a preliminary feasibility analysis of the Developer's proposed development for the
purpose of determining, to the City's satisfaction, that the Developer's proposed
development is financially feasible, which analysis will be for the benefit of the City only
and neither the Developer nor any third party shall be entitled to rely thereon; and
(ill) The Developer will assist the City in identifying available public financial
assistance.
I Construction Planning Activities:
(i) Within <--J days after either the date of this Agreement for
Phase I, or thereafter at least L-J days prior to the anticipated commencement
of each subsequent Phase as set forth on Schedule I, the Developer shall provide to the
City the Construction Plans for the construction of the Minimum Improvements for that
Phase; and
(ii) Within <--J days after either the date of this Agreement for
Phase I, or thereafter at least L-J days prior to the anticipated commencement
of each subsequent Phase as set forth on Schedule I, the Developer shall provide to the
City the Construction Plans for the construction of the Public Improvements related to
that Phase.
Section 3.4. City Actions. During the term of this Agreement, for each applicable
Phase, the City agrees to undertake the following actions:
13
(a) Acquisition Activities:
(i) The City will analyze and respond to the information provided to the City
by the Developer pursuant to Section 3.3(a).
(ii) The City will negotiate in good faith the terms of the sale of the City
Property to Developer.
(ill) The City will cooperate and assist the Developer in its efforts to secure
control of the Acquisition Property.
(iv) The City will attempt to identify which properties of the Acquisition
Property the City has the legal authority to acquire using its powers of eminent domain
should it not be possible to acquire the properties on a voluntary basis.
(v) Upon receipt of a request from the Developer, the City will hold a public
hearing on the question of whether the City should institute a proceeding to acquire any
Parcel using its powers of eminent domain as provided in this section, which decision
shall be in the City's discretion. The City and Developer shall reach agreement on the
various deposits and other security that must be provided to the City to make funds
available to pay the costs of acquisition and related relocation costs prior to
commencement of any such eminent domain action.
(b) Financing Activities:
(i) The City will analyze and respond to the information provided to the City
by the Developer pursuant to Section 3.3(b).
(ii) The City will identify more specifically the nature, location and costs of
the Minimum Improvements and Public Improvements and procure available and
necessary public financial assistance.
(ill) The City will, to the extent possible, structure funding for the Public
Improvements to be exempt from public bidding requirements.
(iv) The City will prepare applications for grants and other funding that the
City and Developer agree should be sought in connection with the development of the
Minimum Improvements and construction of the Public Improvements.
(v) The City will analyze the feasibility of creating the Tax Increment
Districts as redevelopment tax increment districts, as defined in the Tax Increment Act,
including the schedule for creating the Tax Increment Districts.
(vi) If applicable, the City will, subject to legal limitation, endeavor to create
the Tax Increment Districts.
(vii) If applicable, the City will take all actions necessary to issue the Note or
Notes for each Sub-Phase of the applicable Phase.
14
(c) Construction Planning Activities:
(i) The City will analyze and respond to the information provided to the City
by the Developer pursuant to Section 3.3(c).
(ii) The City will either approve or provide comments regarding Construction
Plans proposed by Developer in accordance with Section 4.2.
Section 3.5. Conditions Precedent to City's Initiation of Eminent Domain Action. The
City's obligation to initiate a proceeding to acquire a Parcel of the Acquisition Property through
the use of its powers of eminent domain shall be subject to satisfaction, or waiver in writing by
the City, of all of the following conditions precedent:
(a) The Developer not being in default under the terms of this Agreement;
(b) The City having determined, in its sole discretion and based on documentation
acceptable to the City, that the Developer has used its best efforts to acquire the Parcel for a
reasonable price and has been unable to do so;
(c) The Developer having completed to the satisfaction of the City all of the activities
detailed in section 3.3 with respect to the Phase or Sub-Phase to be constructed on the Parcel;
(d) The Developer having provided a firm. commitment for financing, acceptable to
the City, sufficient to pay all costs of acquiring the Parcel and constructing Public Improvements
or the relevant Phase or Sub-Phase of the Minimum Improvements and all related costs;
(e) The City and its consultants having undertaken a final feasibility analysis of the
Developer's proposed Phase or Sub-Phase and det~ed, to the City's satisfaction, that the
development is financially feasible, which analysis will be for the benefit of the City only and
neither the Developer nor any third party shall be entitled to rely thereon;
(f) The Developer and City having reached agreement on the terms under which the
City will undertake the eminent domain action, including, without limitation, the deposits and
other security to be provided to the City to cover the City's costs of acquisition and related.
relocation costs and such deposits and security having been provided;
(g) The City having held the public hearing described in Section 3.4 and following
such public hearing having determined to initiate an action to acquire the Parcel using its powers
of eminent domain;
(h) The City having adopted a resolution authorizing and directing the
commencement of proceedings to acquire the Parcel; and
(i) The Developer having provided to the City evidence, in a form approved by the
City, demonstrating that the Developer has acquired marketable title to all other Parcels of the
Acquisition Property necessary to construct the Phase or Sub-Phase or Public Improvements to
be constructed on the Parcel.
15
The City believes that it has the legal authority to acquire the Parcels comprising the Acquisition
Property that are necessary to construct the Public Improvements but makes no warranties or
guaranties to the Developer that it will be able to do so. The Developer acknowledges that the
City does not warrant the successful conclusion of any eminent domain action or vacation
procedures or the accomplishment of any particular result or timetable because of the many
variables inherent in any litigation or legal proceeiling. The City shall not be liable to any party
for any consequential or other damages that may arise out of any delays due to eminent domain
actions, vacation procedures, envirQnmental conditions, court challenges or elements outside the
control of the City. Once the eminent domain action has been initiated, the City agrees to
diligently pursue the same to completion.
Section 3.6. Convevance of Parcels.
(a) If the City acquires a Parcel of the Acquisition Property that is to be conveyed to
the Developer, the City will convey such property to the Developer, subject to the terms and
conditions of this Agreement.
(b) In consideration of the Developer's payment of the costs of acquiring the Parcel,
no additional payment will be required of the Developer to acquire the Parcel.
(c) The City shall convey title to and possession of the Parcel to the Developer under
a standard quit claim deed (the "Deed") containing the reversionary clause described in Section
9.3 of this Agreement. The conveyance of the Parcel and the Developer's use of the Parcel shall
be subject to all of the conditions, covenants, restrictions and limitations imposed by this
Agreement and the Deed. The conveyance of title to the Parcel and the Developer's use of the
Parcel shall also be subject to Permitted Encumbrances and building and zoning laws and
ordinances and all other local, state and federal laws and regulations.
(d) The City's obligation to convey a Parcel, or any portion thereof, to the Developer
shall be subject to satisfaction of all of the following conditions precedent:
(i) the Developer shall not be in default under any term of this Agreement;
(ll) the Developer shall have approved or waived any objections to title to the
Parcel in accordance with Section 3.4 hereof;
(ill) the Developer shall have closed on its financing for the construction of the
Phase or Sub-Phase of the Minimum Improvements to be constructed on the
Parcel to be conveyed;
(iv) the Developer shall have submitted and the City and City shall have
approved all building plans for the Phase or Sub-Phase and the Developer shall
have obtained any other governmental approvals necessary to allow the
construction and operation of the Phase or Sub-Phase; and
(v) the Developer and the City shall have agreed on a schedule for the
construction of the Phase or Sub-Phase.
16
(e) The City shall execute and deliver to the Developer the Deed on the later of: (i)
seven (1) days after all of the conditions contained in subsection 3.6(d) have been satisfied; or
(ii) on such other date as the City and the Developer shall agree in writing.
(f) The Deed shall be promptly recorded by or on behalf of the Developer. The
Developer shall pay all recording costs, including State deed tax, and all other closing costs
related to the City's conveyance of the Parcel.
Section 3.7. Schedule of Phases and Sub-Phases. The City selected the Developer to
be the developer of the Project Area as contemplated in the Master Plan because of the
Developer's experience in undertaking mixed use redevelopment projects. The Developer's
ability to construct the Phases is subject to a variety of factors including market and financing
conditions, reaching agreement with the City on financial assistance, determining the feasibility
of the Public Improvements relating to the Phases and other matters. However, the Developer
has arrived at anticipated commencement dates for the various Phase and Sub-Phases, which
dates are contained on Schedule I hereto. The Developer commits to construct Phase I in
accordance with the schedule set forth on Schedule I.
Section 3.8. Reimbursement for Public Develol'ment Costs. (a) The City and
Developer acknowledge and agree that the redevelopment of the Project Area through the
development of the Minimum Improvements is not financially feasible without the provision of
financial assistance to offset the extraordinary costs associated with the redevelopment of land
occupied by buildings that will have to be demolished. Therefore, the City is willing to use
Available Tax Increment to reimburse the Developer on a ''pay as you go" basis for certain costs
of the development Such costs are referred to herein as the "Public Development Costs" and are
generally described on Schedule D to this Agreement Attached to this Agreement as Schedule E
are the parties' current estimates of the amount of reimbursements that will be necessary for each
Phase. Estimates of the sources and uses of funds relating to each of the Sub-Phases of Phase I
are set forth on Schedules C-I. However, such estimates are preliminary and are subject to
change as the plans for the Phases and Sub-Phases become more refined. Prior to the
commencement of any Phase or Sub-Phase the City and the Developer will have to agree, as a
condition precedent to proceeding with the Phase or Sub-Phase, on the actual amount of costs to
be reimbursed using Available Tax Increment for the Phase or Sub-Phase.
(b) The Developer shall be solely responsible for all aspects of constructing the
Minimum Improvements. The City's reimbursement of the Developer for the Public
Development Costs shall be accomplished through the City's issuance and delivery of the Notes
to the Developer. It is anticipated that the City will issue a Note for each Phase of the Minimum
Improvements to reimburse the Developer for the Public Development Costs associated with the
Phase. The Note for each Phase will be issued upon completion of construction of the Phase and
upon receipt by the City of documentation showing that the Developer has incurred Public
Development Costs associated with that Phase equal to or exC'.P.PJ1ine the principal amount of the
Note.
(c) The City's reimbursement of the Developer for the Public Development Costs
shall be through "the issuance of the Notes which shall occur at the times stated in subsection (b)
17
above. The Notes shall be substantially in the form of the Note attached to this Agreement as
Schedule F, with all blanks properly filled in. Each Note shall be ~ as of the date of its
issuance and shall be payable together with simple non-compounding interest at a rate to be
negotiated by the City and Developer prior to commencement of the Phase for which the Note is
issued from the date of the issuance of the Note until the Note is paid in full or terminated.
Interest shall be computed on the basis of a 360-day year of twelve (12) 30-day months.
Section 3.10. City Rights to Acquire Acquisition Propertv from Developer. (We need
to discuss what, if any, rights the City wiD have to aequire properties that the Developer
has aequired or secured purchase agreements for if the Developer does not proceed with
development on that property)
Section 3.11. City Costs. (We need to discuss what costs the city wiD be paying and
what we expect the developer to pay. )
18
ARTICLE IV
CONSTRUCTION OF MINIMUM IMPROVEMENTS
Section 4.1. Construction and Operation of Minimum Improvements. The Developer
agrees that it will construct the Minimum Improvements on the Development Property in
accordance with the approved Construction Plans, together with any changes approved by the
City and any changes not requiring the Authority's approval, and at all times prior to the
Termination Date will operate and maintain, preserve and keep the Minimum Improvements or
cause the Minimum Improvements to be maintained, preserved and kept with the appurtenances
and every part and parcel thereof, in good repair and condition.
Section 4.2. Construction Plans. As provided in Section 3.3, prior to commencement
of any Phase or Sub-Phase, the Developer shall cause to be provided to the City Construction
Plans for the Phase or Sub-Phase, which shall be subject to approval by the City as provided in
this Section 4.2. Construction Plans for Phase I will be submitted by the times set forth on
Schedule I hereto. The Construction Plans shall provide for the Phase or Sub-Phase to be
constructed on the Development Property, and shall be in conformity with this Agreement, and
all applicable state and local laws and regulations. The City shall approve the Construction Plans
in writing if: (a) the Construction Plans conform to the terms and conditions of this Agreement;
(b) the Construction Plans conform to the terms and conditions of the Development Program and
are consistent with the Master Plan; (c) the Construction Plans conform to all applicable federal,
state and local laws, ordinances, rules and regulations; (d) the Construction Plans are adequate
for purposes of this Agreement to provide for the construction of the Minimum Improvements;
(e) the Construction Plans will result in improvements of such nature and quality as the City
determines. will justify the City's assistance contemplated by this Agreement and (e) no Event of
Default under the terms of this Agreement has occurred; provided, however, that any such
approval of the Construction Plans pursuant to this Section 4.2 shall constitute approval for the
purposes of this Agreement only and shall not be deemed to constitute approval or waiver by the
City with respect to any building, zoning or other ordinances or regulation of the City, and shall
not be deemed to be sufficient plans to serve as the basis for the issuance of a building permit if
the Construction Plans are not as detailed or complete as the plans otherwise required for the
issuance of a building permit.
The Construction Plans must be rejected in writing by the City within thirty (30) days of
submission or shall be deemed to have been approved by the City. If the City rejects the
Construction Plans in whole or in part, the Developer shall submit new or corrected Construction
Plans within thirty (30) days after receipt by the Developer of written notification of the
rejection, accompanied by a written statement of the City specifying the respects in which the
Construction Plans submitted by the Developer fail to conform to the requirements of this
Section 4.2. The provisions of this Section 4.2 relating to approval, rejection and resubmission
of corrected Construction Plans shall continue to apply until the Construction Plans have been
approved by the City; provided, however, that in any event the Developer shall submit
Construction Plans which are approved by the City prior to commencement of construction of
19
the Minimum Improvements. Approval of the Construction Plans by the City shall not relieve
the Developer of any obligation to comply with the terms and provisions of this Agreement, or
the provision of applicable federal, state and local laws, ordinances and regulations, nor shall
approval of the Construction Plans by the City be deemed to constitute a waiver of any Event of
Default
If the Developer desires to make any material change in the Construction Plans after their
approval by the City, the Developer shall submit the proposed change to the City for its approval.
If the Construction Plans, as modified by the proposed change, conform to the approval criteria
listed in this Section 4.2 with respect to the original Construction Plans and do not constitute a
material modification to the appearance, quality, scope, size or use of the respective Phase or
Sub-Phase or to the site plan therefore, the City shall approve the proposed change. Such change
in the Construction Plans shall be deemed approved by the City unless rejected in writing within
ten (10) days by the City with a statement of the City's reasons for such rejection.
Approval of Construction Plans hereunder is solely for purposes of this Agreement and
shall not constitute approval for any other City purpose.
Section 4.3. Timing of Construction. The timing of construction of each Phase or Sub-
Phase of the Minimum Improvements shall, subject to Unavoidable Delays, occur in accordance
with a schedule agreed upon by the City and Developer prior to the Developer's commencement
of the Phase or Sub-Phase. The construction of Phase I will occur in accordance with the
Schedule set forth on Schedule I. The currently anticipated commencement dates for the
remainder of the Phases and Sub-Phases are set forth on Schedule I hereto.
ARTICLE V
INSURANCE
Section 5.1. Insurance.
(a) The Developer will provide and maintain or cause to be maintained at all times
during the process of constructing each Phase and Sub-Phase (and, from time to time at the
request of the City, furnish the City with certificates of insurance on):
(i) Builder's risk insurance, written on the so-called ''Builder's Risk
- Completed Value Basis" in an"amount equal to one hundred percent (100%) of
the insurable value of the Phase or Sub-Phase at the date of completion, and with
coverage available on the so-called "all risk" form of policy; the interest of the
City shall be protected by naming the City as an additional named insured;
(il) Commercial general liability insurance (including operations,
premises, "X.C.U." where applicable, Products/Completed Operations,
Contractual Liability, Broad Form Property Damage and Independent Contractors
with limits against bodily injury and property damage of not less than $1,000,000,
together with excess umbrella limits of not less than $1,000,000; and
20
(ill) Worker's compensation insurance, with statutory coverage.
(b) All insurance required in this Article VI shall be taken out and maintained in
responsible insurance companies selected. by the Developer which are authorized. under the laws
of the State to assume the risks covered thereby. The Developer shall deposit annually with the
City a certificate or certificates or binders of the respective insurers stating that such insurance is
in force and effect. Unless otherwise provided in this Article VI, each policy shall contain a
provision that the insurer shall not cancel or materially modify it without giving written notice to
the Developer and the City at least thirty (30) days before the cancellation or modification
becomes effective. As soon as reasonably possible, the Developer shall furnish the City
evidence satisfactory to the City that the policy has been renewed or replaced by another policy
conforming to the provisions of this Article VI, or that there is no necessity therefore under the
terms hereof. In lieu of separate policies, the Developer may maintain a single policy, or blanket
or umbrella policies, or a combination thereof, which provide the total coverage required herein,
in which event the Developer shall deposit with the City a certificate or certificates of the
respective insurers as to the amount of coverage in force upon the Minimum Improvements.
ARTICLE VI
TAXES, TAX INCREMENT
Section 6.1. Real Property Taxes. The Developer shall prior to the Termination Date
pay when due and prior to the imposition of penalty all real property taxes payable with respect
to all parts of the Development Property acquired and owned by it subsequent to the date of its
acquisition of title to the Development Property (or part thereof) and until title to the property is
vested in another person.
Section 6.2. Creation of Tax Increment Districts. (a) The City intends to create a
series of Tax Increment Districts to provide a source of funds to finance the reimbursement of
the Developer for its payment of the Public Development Costs. The City has preliminarily
analyzed the legal feasibility of creating the Tax Increment Districts and believes that it will be
possible to do so. The timing of the creation of the Tax Increment Districts will be agreed upon
by the City and the Developer. The City agrees that it will retain consultants to assist it in the
creation of the Tax Increment Districts, including the preparation of tax increment financing
plans. Under the Tax Increment Act, the City may not approve the creation of any Tax
Increment District until it has held a public hearing on the matter. Therefore, the City can not
warrant that the Tax Increment Districts will be created.
(b) During the process of creating each Tax Increment District, the City will use its
best efforts to comply with all statutory requirements. The City will also provide the Developer
an opportunity to review all documentation. relative to the creation of the Tax Increment District
so that the Developer can make its own informed determination as to whether the Tax Increment
District complies with applicable law. The City does not intend to warrant to Developer that the
Tax Increment Districts comply with applicable law. In the event of a challenge to the validity
of any Tax Increment District or any action that otherwise seeks to prevent or delay the
21
Developer's proposed development, the Developer and the City will discuss their options and
formulate a course of action.
ARTICLE VB
MORTGAGE FINANCING
Section 7.1. Limitation Upon Encumbrance of Property. Prior to the completion of a
Phase or Sub-Phase of the Minimum Improvements, as determined by the City, neither the
Developer nor any successor in interest to the Parcel of the Development Property on which the
Phase or Sub-Phase will be built, or any part thereot: shall engage in any financing or any other
transaction creating any mortgage or other encumbrance or lien upon the Development Property,
other than Permitted Encumbrances, whether by express agreement or operation of law, or suffer
any encumbrance or lien to be made on or attach to the Development Property, other than
Permitted Encumbrances, except:
(a) for the purposes of obtaining funds only to the extent necessary for the acquisition
of the Development Property and making the Minimum Improvements (including, but not
limited to, labor and materials, equipment, professional fees, real estate taxes, construction
interest, organi7.ation and other indirect costs of development, costs of constructing the Minimum
Improvements, an allowance for contingencies, costs of issuance of any Note issued to fund
construction or acquisition of the respective Phase or Sub-Phase, amounts required to fund any
Note reserves relating to construction or acquisition of the Phase or Sub-Phase, and amounts
required to fund any required escrow accounts); and
(b)
and 7.2.
only upon the prior written approval of the City in accordance with Sections 7.1
Section 7.2. Apnroval of Morte:age. The City shall approve a Mortgage if:
(a) the City first receives a copy of all mortgage documents;
(b) the mortgage loan, together with other funds available to the Developer, will, in
the reasonable judgment of the City, be sufficient to construct the subject Phase or Sub-Phase of
the Minimum Improvements; and
(c) the City is not entitled under Section 9.2 to exercise any of the remedies set forth
therein as a result of an Event of Default
Section 7.3. Modification for the Benefit of Mortgae:ees. (b) In order to facilitate
the obtaining of financing for the construction of the Minimum Improvements, the City agrees
that it will consider reasonable modifications of this Article vn or Article V, intercreditor
agreement or waiver of its rights hereunder to accommodate the interests of the holder of a
Mortgage, provided, however, that the City determines, in its reasonable judgment, that any such
modification(s) will adequately protect the legitimate interests and security of the City under this
Agreement.
22
ARTICLE vm
PROHIBITIONS AGAINST ASSIGNMENT AND
TRANSFER; INDEMNIFICATION
Section 8.1. Transfer of Substantially all Assets. As security for the obligations of the
Developer under this Agreement, the Developer represents and agrees that prior to the
Termination Date, the Developer will not dispose of all or substantially all of its assets; provided
that the Developer may sell or otherwise transfer to any Person all or substantially all of its assets
and thereafter be discharged :from liability hereunder (except as otherwise provided under clause
(ii)(B) below) if (i) the transferee Person assumes in writing all of the obligations of the
Developer under this Agreement; and (ii) the City receives either (A) such new security from the
successor Developer to assure completion of the respective Project as the City reasonably deems
necessary or desirable, or (B) such evidence as the City shall reasonably require, including an
opinion of counsel, that the existing obligations of the Developer under this Agreement will
remain in effect and will be enforceable against the existing Developer upon a default by the
successor Developer.
Section 8.2. Prohibition Against Transfer of Propertv and AssiW'ment of Agreement.
The Developer represents and agrees that prior to the Termination Date:
(a) Except only by way of security for, and only for, the purpose of obtaining
financing necessary to enable the Developer or any successor in interest to the Development
Property, or any part thereof, to perform its obligations with respect to acquiring the
Development Property and making the Minimum Improvements under this Agreement, and any
other purpose authorized by this Agreement, the Developer has not made or created and will not
make or create or suffer to be made or created any total or partial sale, assignment, conveyance,
or lease (other than in the normal course of business), or any trust or power, or transfer in any
other mode or form of or with respect to the Agreement or the Development Property or any part
thereof or any interest therein, or any contract or agreement to do any of the same, without the
prior written approval of the City.
(b) The City shall be entitled to require, except as otherwise provided in the
Agreement, as conditions to any such approval that:
(i) Any proposed transferee shall have the qualifications and financial
responsibility, in the reasonable judgment of the City, necessary and adequate to
fulfill the obligations undertaken in this Agreement by the Developer.
(ii) Any proposed transferee, by instrument in writing satisfactory to
the City and in form recordable among the land records, shall, for itself and its
successors and assigns, and expressly for the benefit of the City, have expressly
assumed all of the obligations of the Developer under this Agreement and agreed
to be subject to all the conditions and restrictions to which the Developer is
subject (unless the Developer agrees to continue to fulfill those obligations, in
which case the preceding provisions of this Section 8.2(b)(ii) shall not apply);
23
provided, however, that the fact that any transferee of, or any other successor in
interest whatsoever to, the Development Property, or any part thereof, shall not,
for whatever reason, have assumed such obligations or so agreed, and shall not
(unless and only to the extent otherwise specifically provided in this Agreement
or agreed to in writing by the City) deprive the City of any rights or remedies or
controls with respect to the Development Property or the construction of the
Minimum Improvements; it being the intent of the parties as expressed in this
Agreement that (to the fullest extent permitted at law and in equity and excepting
only in the manner and to the extent specifically provided otherwise in this
Agreement) no transfer of, or change with respect to, ownership in the
Development Property or any part thereof, or any interest therein, however
consummated or occurring, and whether voluntary or involuntary, shall operate,
legally or practically, to deprive or limit the City of or with respect to any rights
or remedies or controls provided in or resulting from this Agreement with respect
to the Minimum Improvements that the City would have had, had there been no
such transfer or change. In the absence of specific written agreement by the City
to the contrary, no such transfer or approval by the City thereof shall be deemed
to relieve the Developer, or any other party bound in any way by this Agreement
or 'otherwise with respect to the construction of the Minimum Improvements,
from any of its obligations with respect thereto.
(ill) There shall be submitted to the City for review and prior written
approval all instruments and other legal documents involved in effecting the
transfer of any interest in this Agreement or the Development Property governed
by this Article vm.
Section 8.3. Release and Indemnification Covenants.
(a) Except for any will:ful misrepresentation or any grossly negligent act or omission,
willful or wanton misconduct or any unlawful act of the indemnified parties, the Developer
releases the City and the governing body members, officers, agents, servants and employees
thereof (hereinafter, for purposes of this Section 9.3, the "indemnified parties") from, covenants
and agrees that the indemnified parties shall not be liable for, and agrees to indemnify and hold
harmless the indemnified parties against, any loss or damage to property or any injury to or death
of any person occurring at or about or resulting from any defect in the Minimum Improvements.
(b) Except for any will:ful misrepresentation or any grossly negligent act, willful or
wanton misconduct or any unlawful act of the indemnified parties, the Developer agrees to
protect and defend the indemnified parties, now or forever, and further agrees to hold the
indemnified parties harmless, from any claim, demand, suit, action or other proceeding
whatsoever by any person or entity whatsoever arising or purportedly arising (i) from any
violation of any agreement or condition of this Agreement by the Developer (except with respect
to any suit, action, demand or other proceeding brought by the Developer against the City to
enforce its rights under this Agreement) or (ii) the acquisition, construction, installation,
ownership, and operation of the Minimum Improvements by the Developer.
24
(c) The indemnified parties shall not be liable for any damage or injury to the persons
or property of the Developer or its officers, agents, servants or employees or any other person
who may be about the Minimum Improvements due to any act of negligence of any person, other
than any act of negligence on the part of any such indemnified party or its officers, agents,
servants or employees.
(d) All covenants, stipulations, promises, agreements and obligations of the City
contained herein shall be deemed to be the covenants, stipulations, promises, agreements and
obligations of the City, respectively, and not of any governing body member, officer, agent,
servant or employee of the City in the individual capacity thereof.
(e) Without limiting any other provision of this Agreement, the Developer hereby
agrees to protect and defend the City and the governing body members, officers, agents, servants
and employees thereof, now or forever, and further agrees to hold the aforesaid harmless from
any claim, demand, suit, action or other proceeding whatsoever by any person or entity
whatsoever for relocation benefits or assistance under State or federal law as a result of the
Developer's or the City's activities under this Agreement
Section 8.4. Aporovals. Notwithstanding Sections 8.1 and 8.2, any approval of a
transfer of interest in the Developer, this Agreement, or all or a part of the Development Property
required to be given by the City under this Article VIII may be denied only in the event that the
City reasonably determines that the ability of the Developer to perform its obligations under this
Agreement and its obligation, to pay ad valorem real property taxes assessed with reSPect to the
Development Property, or the overall financial security provided to the City under the terms of
this Agreement, or the likelihood of the Minimum Improvements being successfully cons1ructed
and operated and maintained pursuant to the terms of this Agreement, will be materially
impaired by the action for which approval is sought.
ARTICLE IX
DEVELOPER EVENTS OF DEFAULT
Section 9.1. Events of Default Defined. Anyone or more of the following shall be an
"Event of Default" under this Agreement
(a) Failure by the Developer to timely pay pursuant to Article VI all ad valorem real
property taxes assessed with respect to the Development Property.
(b) Failure by the Developer to cause the construction of the Minimum Improvements
to be commenced and completed pursuant to the terms, conditions and limitations of Article IV.
(c) Failure by the Developer to cause the Minimum Improvements to be
reconstructed when required pursuant to Article VI.
(d) Transfer of any interest in the Developer or the Project in violation of the
provisions of Article VIII.
25
(e) Failure by the Developer to substantially observe or perform any other material
covenant, condition, obligation or agreement on its part to be observed or performed under this
Agreement
(f) The Holder of any Mortgage on the Development Property, or any improvements
thereon, or any portion thereot: commences foreclosure proceedings as a result of any default
under the applicable Mortgage documents.
(g) The Developer shall
(A) file any petition in bankruptcy or for any reorgani7'ation,
arrangement, composition, readjustment, liquidation, dissolution, or similar relief
under the United States Bankruptcy Act of 1978, as amended or under any similar
federal or state law; or
(B) make an assignment for the benefit of its creditors; or
(c) admit in writing its inability to pay its debts generally as they
become due; or
(D) be adjudicated a bankrupt or insolvent; or if a petition or answer
proposing the adjuration of the Developer, as a bankrupt or its reorgani7.ation
under any present or future federal bankruptcy act or any similar federal or state
law shall be filed in any court and such petition or answer shall not be discharged
or denied within ninety (90) days after the filing thereof; or a receiver, trustee or
liquidator of the Developer, or of the Project, or part thereot: shall be appointed in
any proceeding brought against the Developer, and shall not be discharged within
ninety (90) days after such appointed, or if the Developer, shall consent to or
acquiesce in such appointment
Section 9.2. Remedies on Default Whenever any Event of Default referred to in
Section 9.1 occurs and is continuing, the City may immediately suspend its performance under
this Agreement and may take anyone or more of the following actions after (except in the case
of an Event of Default under subsections (a) or (g) of Section 9.1) the giving of thirty (30) days'
written notice to the Developer of the Event of Default by the City, but only if the Event of
Default has not been cured within said thirty (30) days, or if the Event of Default cannot be cured
within thirty (30) days and the peveloper does not provide assurances to the City reasonably
satisfactory to the City that the Event of Default will be cured as soon as reasonably possible.
(a) The City may terminate this Agreement
(b) The City may draw upon any guarantee or security provided to the City pursuant
to any of the terms of this Agreement according to its terms.
(c) The City may take any action, including legal, equitable or administrative action,
which may appear necessary or desirable to collect ariy payments due under this Agreement, to
26
sue for money damages, or to enforce performance and observance of any obligation, agreement,
or covenant of the Developer under this Agreement
Section 9.3. No Remedv Exclusive. No remedy herein conferred upon or reserved to
the City is intended to be exclusive of any other available remedy or remedies, but each and
every such remedy shall be cumulative and shall be in addition to every other remedy given
under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or
omission to exercise any right or power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient
Section 9.4. No Implied Waiver. In the event any agreement contained in this
Agreement should be breached by any party and thereafter waived by any 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. Agreement to Pay Attorney's Fees and Expenses. Whenever any Event of.
Default occurs and the City shall employ attorneys or incur other reasonable expenses for the
collection of payments due or to become due or for the enforcement or performance or
observance of any obligation or agreement on the part of the Developer herein contained, the
Developer agrees that it shall, on demand therefore, pay to the City the reasonable fees of such
attorneys and such other reasonable expenses so incurred by the City.
ARTICLE XI
ADDmONAL PROVISIONS
Section 10.1. Restrictions on Use. The Developer agrees for itself, assigns and every
successor in interest to the Development Property, or any part thereof, that the Developer and
such successors and assigns shall during the term of this Agreement devote the Development
Property to, and in accordance with, the uses specified in this Agreement.
Section 10.2. Conflicts of Interest No member of the governing body or other official
of the City shall have any financial interest, direct or indirect, in this Agreement, the
Development Property or the Minimum Improvements, or any contract, agreement or other
transaction contemplated to occur or be undertaken thereunder or with respect thereto, nor shall
any such member of the governing body or other official participate in any decision relating to
the Agreement which affects his or her personal interests or the interests of any corporation,
partnership or association in which he or she is directly or indirectly interested. No member,
official or employee of the City shall be personally liable to the Developer in the event of any
default or breach by the City under the terms of this Agreement.
Section 10.3. Titles of Articles and Sections. Any titles of the several parts, articles and
Sections of the Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
27
Section 10.4. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under this Agreement by any party to any
other shall be sufficiently given or delivered if it is dispatched by registered or certified mail,
postage prepaid, return receipt requested, or delivered personally, and
(a) in the case of the Developer is addressed to or delivered personally to:
Centerville Mainstreet, LLC
Attention: Ronald G. Mehl
750 2nd Street NE - Suite 100
Hopkins, Minnesota 55343
with a copy to:
Lindquist & Vennum P.L.L.P.
Attention: Laura Krenz
4200 IDS Center
80 South Eighth Street
Minneapolis, Minnesota 55402
(b) in the case of the City, is addressed to or delivered personally to the City at:
City of Centerville - City Hall
Attention: Dallas Larson
1880 Main Street
Centerville, MN 55038-9794
with a copy to:
City of Centerville - City Hall
Attention: John Meyer
1880 Main Street
Centerville, MN 55038-9794
with a copy to:
Smith & Glaser, L.L.C.
Attention: Kurt B. Glaser
510 1st ave N. - Suite 610
Minneapolis, MN 55403
(c) in the case of the holder of the First Mortgage, is addressed or delivered personally to
the address supplied;
or at such other address with respect to any such party as that party may, from time to time,
designate in writing and forward to the other, as provided in this Section.
28
Section 10.5. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument
Section 10.6. Modification. If the Developer is requested by the holder of a Mortgage
'or by a prospective holder of a prospective Mortgage to amend or supplement this Agreement in
any manner whatsoever, the City will, in good faith, consider the request with a view to granting
the same unless the City, in their reasonable judgment, conclude that such modification is not in
the public interest, or will significantly and undesirably weaken the financial security provided to
the interests of the City as of the date of this Agreement by the terms and provisions of this
Agreement. Notwithstanding the forgoing, the City's financial security shall not be deemed
significantly or undesirably weakened by any refinancing of the Project which does not increase
Developer's debt on the Project beyond the debt existing on the date of this Agreement
Section 10.7. Law Governine:. This Agreement will be governed and construed in
accordance with the laws of the State.
Section 10.8. City Approvals. Any approval, execution of documents, or other action to
be taken by the City pursuant to this Agreement, for the purpose of carrying out the terms of this
Agreement or for the purpose of determining sufficient performance by Developer under this
Agreement, may be made, executed or taken by the Mayor and Administrator of the City without
further approval by the City Council. The Mayor and Administrator of the City may, but shall
not be required to, consult with other City staff with respect to such matters.
Section 10.9. Rule of Construction. The parties agree that this Agreement is not
intended, nor shall it be construed, as a joint venture or other partnership between the City and
the Developer or as empowering the Developer to act as an agent of the City, it being the intent
of the parties that the Developer is at all times acting as an independent contractor and not as a
partner or agent of the City.
29
IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in
its name and on its behalf and its seal to be hereunto duly affixed, the City has caused this
Agreement to be duly executed in its name and on its behalf, and the Developer has caused this
Agreement to be duly executed in its name and on its behalf, on or as of the date first above
written.
CITY OF CENTERVILLE
By:
Its: Mayor
By:
Its: City Administrator
(SEAL)
CENTERVILLE MAINSTREET, LLC
By:
Its:
By:
Its:
This is a signature page to the Development Agreement between the City of Centerville and
Centerville Mainstreet, LLC.
.30
SCHEDULE A-I
The Development Prope~: Property List
ANOKA
COUNlY PID#
OWNER
ADDRESS
CITY, STATE & ZIP
233122210022 IND SCHOOL DISTRICT #12 4707 NORlH RD CIRCLE PINES MN 5S014-0OOO
233122210023 IND SCHOOL DISTRICT #12 NO ADDRESS CIRCLE PINES MN 5S014-0000
233122210024 MAGILL PROPERTIES lNC 7709 20TH AVE N LlNO LAKES MN 5S038-0000
233122210025 STEFFEL PAUL H 1709 MAIN ST CENTERVILLE MN SS038-0000
233122210028 UNDERWOOD SCOTT 211 BIRCH ST WHITE BEAR LAKE MN S5110
23312221ooS1 SCHEIBLAUER PAMELAR 1737 MAIN ST HUGO MN SS038-0000
HELMBRECHT JERRY T & MARY
23312221OOS2 10 174S MAIN ST CENTERVILLE MN SS038-00OO
2331222100SS OPP DONAlD W & MYRNAD IS54 HOLLY DR HUGO MN SS038-0000
233122210056 GNADKE RANDY J & HEIDI F 17S1 MAIN ST CENTERVILLE MN SS038-00OO
233122220004 SHEPPARD ROBERT & SUSAN 169S MAIN ST HUGO MN SS038-OOOO
23312222000S SHEERAN ROBERT B 1691 MAIN ST CENTERVILLE MN SS038-00OO
233122220008 BRILOWSKI MARK G & WENDY K 7124 MAIN ST CENTERVILLE MN SS038-OOOO
233122220009 ANOKACOUNlYOF 32S E MAIN ST ANOKA MN SS303-OOOO
233122220010 COUNlY OF ANOKA 325 E MAIN ST ANOKA MN SS303-OOO0
233122220011 ANOKA COUNTY OF 32S E MAIN ST ANOKA MN SS303-OOOO
23312222OO1S CAMP PATRICIA R 7121 CENTERVILLE RD CENTERVILLE MN SS038-OOOO
233122220016 CAMP-BARON PATRICIA R 7121 CENTERVILLE RD CENTERVILLE MN SS038-OOOO
23312223000S CENTERVILLE CITY OF 1694 SOREL ST CENTERVILLE MN SS038-0000
233122230006 CENTERVILLE CITY OF 1694 SOREL ST CENTERVILLE MN SS038-0000
233122230008 CENTERVILLE CITY OF 1880 MAIN ST CENTERVILLE MN 5S038-0000
233122230009 CENTERVILLE CITY OF 1694 SOREL ST CENTERVILLE MN SS038-0000
233122230010 CENTERVILLE CITY OF 1880 MAIN ST CENTERVILLE MN 5S038-0000
233122230011 MARSHALL ERICK IS80 SOREL ST CENTERVILLE MN 5S038-0000
233122230012 EDBERG REBECCA A 1680 SOREL ST CENTERVILLE MN 5S038-0000
233122230013 BURKE PAUL 1683 LAKELAND CIRCLE CENTERVILLE MN SS038-0000
233122230014 CENTERVILLE CITY OF 1694 SOREL ST CENTERVILLE MN SS038-0000
23312223OO1S David Killan 169S SOREL ST CENTERVILLE MN SS038-0000
233122230016 LINDSAY JULIE A 1687 SOREL ST CENTERVILLE MN SS038-0000
233122230017 M & M ENDEAVORS LLC 2119S IVERSON A VB N FOREST LAKE MN SS02S-OOOO
233122230018 KNABE ROBERT C PO BOX 304 HUGO MN SS038-0304
233122230019 M & M ENDEAVORS LLC 2119S IVERSON A VB N FOREST LAKE MN 5S02S-OOOO
233122230021 CARPENTER COLLEEN 6885 20TH A VB S CENTERVILLE MN SS038-0000
233122230022 CARPENTER COLLEEN 6885 20TH AVES CENTERVILLE MN 5S038-0000
233122230023 CHURCH OF ST GENEVIEVE 7087 GOIFFON ST CENTERVILLE MN 5S014-0000
233122230046 DESPEN PETER M 1688 HERITAGE ST CENTERVILLE MN 5S038-0000
233122230047 BROWN DAVID 704S CENTERVILLE RD CENTERVILLE MN SS038-OOOO
233122230048 HIGHLAND CHRISTINE 1680 HERITAGE ST CENTERVILLE MN SS038-0000
.233122240038 GAlNSLEY MARGARET 1724 HERITAGE ST CENTERVILLE MN SS038-OOOO
233122240004 BUSSE RICHARD 0 JR 1748 HERITAGE ST HUGO MN SS038-0000
23312224000S HENSEL LEO W & MARGARET M 1744 HERITAGE ST CENTERVILLE MN SS038-OOOO
A-I
ANOKA
COUNTYPID#
OWNER
ADDRESS
CITY, STATE & ZIP
233122240009 FERWERDA JONATHAN M 1716 HERITAGE ST CENTERVILLE MN 55038-0000
233122240010 RIVARD HAROLD L & ANGELA M 7046 CENTERVILLE RD HUGO MN 55038-0000
233122240038 GAINSLEY MARGARET 1724 HERITAGE ST CENTERVILLE MN 55038-0000
233122240039 GAINSLEY MARGARET 1724 HERITAGE ST CENTERVILLE MN 55038-0000
233122240012 NEISIUS mOMAS J 7048 PROGRESS RD HUGO MN 55038-0000
233122240013 MCKAY CURTIS L & RHONDA J 1749 HERITAGE ST CENTERVILLE MN 55038-0000
MORAVEC GARY M & MICHELLE
233122240014 A 1745 HERITAGE ST HUGO MN 55038-0000
ANDERSON MARGARET A & PAUL
233122240015 A 7072 PROGRESS RD CENTERVILLE MN 55038-0000
ANDERSON PAUL A & MARGARET
233122240016 A 7072 PROGRESS RD HUGO MN 55038-0000
23312224002S MONTAIN PAUL 6510 CENTERVILLE ROAD CENTERVILLE MN 55038-0000
233122240026 RIVARD MARCEL H 7026 CENTERVILLE RD #103 CENTERVILLE MN 55038-0000
233122240027 NOBLE WELDING 707521 ST A VB SO CENTERVILLE MN 55038-0000
233122240028 WJB ENTERPRISES INC 7098 CENTERVILLE RD CENTERVILLE MN 55038-0000
233122240029 WJB ENTERPRISES INC 7098 CENTERVILLE RD CENTERVILLE MN 55038-0000
233122240030 BISEK WILLIAM J 7098 CENTERVILLE RD CENTERVILLE MN 55038-0000
233122240040 MONTAINPAULD 6510 CENTERVILLE ROAD HUGO MN 55038-0000
233122240041 MONTAINPAULD 7082 CENTERVILLE RD CENTERVILLE MN 55038-0000
233122240031 GOETZ GINA M 1721 HERITAGE ST CENTERVILLE MN 55038-0000
233122240032 KINNING RICHARD W 7059 PROGRESS RD HUGO MN 55038-0000
233122240033 KING STEVEN D & DONNA K 1724 SOREL ST HUGO MN 55038-0000
233122240034 FISHER DAVID D 7072 CENTERVILLE RD HUGO MN 55038-0000
233122240035 SMITH lAMES H 1629 PELTIER LAKE DR HUGO MN 55038-0000
233122240036 BELDEN IOHN C & JULIANNE M 7056 CENTERVILLE RD HUGO MN 55038-0000
233122240043 PIERSIAK mOMAS R 7096 PROGRESS RD CENTERVILLE MN 55038-0000
233122240044 HILLMAN M R & REHBEIN C I 7086 PROGRESS RD CENTERVILLE MN 55038-0000
SUGDEN CHRISTOPHER &
233122240045 JENNIFER 7082 PROGRESS RD CENTERVILLE MN 55038-0000
233122240134 MILLS MYRA G 1744 MAIN ST CENTERVILLE MN 55038-0000
233122240020 MENSCH MARY 1742 MAIN ST CENTERVILLE MN 55038-0000
233122240021 MAROIS ION 1740 MAIN ST CENTERVILLE MN 55038-0000
233122220003 LALONDE WILLIAMS 1687 WESTVIEW ST CENTERVILLE MN 55038-0000
233122210013 DUPRE mOMAS I 1781 MAIN ST CENTERVILLE MN 55038-0000
233122220008 BRlLOWSKI MARK G & WENDY K 7124 MAIN ST CENTERVILLE MN 55038-0000
233122220015 CAMPPATRICIAR . 7121 CENTERVILLE RD CENTERVILLE MN 55038-0000
233122220016 CAMP - BARON PATRICIA R Unassil!lled Status CENTERVILLE MN 55038-0000
233122220018 PI BURKE INVESTMENTS LLC 7105 MAIN ST CENTERVILLE MN 55038-0000
23312222019 ANOKA COUNTY Unassimed Status ANOKA MN 55303-0000
SCHEDULE A-2
PICTORIALS OF PROJECT AREAS
SCHEDULE B
PERMITfED ENCUMBRANCES
SCHEDULE C
DEPICTION OF MINIMUM IMPROVEMENTS
I //
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Sources & Uses 58 TOlvnholllc Units
Project I-Bl-2
SOURCE..~ OF FUNDS
First Mortgage
Additional Gap Financing Required
Tax Increment Financing
Greater Minnesota Housing Funds (MHF A)
Sales Proceeds Office Condo & Townhome Lots
TOWllhol1le~
Souih
58 LoIs
$
94,339
1,298,500
3,480,000
Total Sources of Funds
s
4,872,839
USES OF FUNDS
Acquisitions Costs
Demolition / Site Preparation
Relocation Specialist
Consttuction Costs / Improvements
Cash Accounts (Tax & Isurance Escrows, Marketing Costs, Etc...)
$
2,233,400
150,000
111,670
971 ,500
MUnicipal Costs
Sewer and Water Access Charge
Park Dedication Fee
Building Inspection Fees
Public Improvements
FINANCING GAP
188,500
34,800
212,906
183,675
34,800
116,000
635,588
S 4,872,839
$
S 94,339
Professional Services
Soft Cost Contingency
Closing Costs
Cost of Financing
Tax Credit Fees
Develo Fee
Total Uses of Funds
Project I-B7
SOURCES OF FUNDS
First Mortgage $ 1,949.589
Tax Credit Equity 5.115.353
Tax Increment Financing 436.700
Greater Minnesota Housing Funds (MHF A)
HOME Funds (Anoka County) 300.000
Housing Incentive Funds (Anoka County) N/A
Deferred Developer Fee 162.419
(Surplus) I Gap
Total Sources of Funds S 7,964,061
USES OF FUNDS
Acquisitions Costs $ 420.000
Demolition I Site Preparation
Relocation Specialist
Construction Costs I Improvements 5.173,278
Cash Accounts (Tax & Insurance Escrows. Marketing c 60,250
Municipal Costs
Sewer and Water Access Charge 61.500
Park Dedication Fee 24.600
Building Inspection Fees 13.735
Public Improvements 200.000
Professional Services 747.477
Soft Cost Contingency 35.000
Closing Costs 16.357
Cost of Financing 208.767
Developer Fee 1.003.096
Total Uses of Funds S 7,964,061
Financing Gap
$
CENTERVILLE, l\llNNESOT A - Sonrces & Uses
Project I-B8
Summary
Sources & Uses
Sales Proceeds (Senior Cooperative)
$
12,000.000 $
$
12,000,000
Additional Gap FinanclDg Required (surplus required for I-B9)
Tax Increment Financing - Note # 1
Tax Increment Financing - Note #2
Greater Minnesota Housing Funds (MHF A)
Sales Proceeds (Office Condo & Townhome Lots)
(393,003)
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41,803
136.800
(351,200) .
961,988
1.550.000
1,550,000
Total Sources of Fonds
$
12,859,949 $
1,728.603 S 14,160,788
ITSE..q OF FUNDS
Acquisitions Costs $ 1.074,220 Included in Housing $ 1,074,220
Demolition I Site Preparation 50.000 Included in Housing 50,000
Relocation Specialist 53.711 Included in Housing 53,711
Construction Costs I Improvements 7,190.108 1.162.500 8,352,608
Cash Accounts (Tax & Isurance Escrows. Marketing Costs, Etc...) 176.329 81.470 257,799
Municipal Costs
Sewer and Water Access Charge 163.171 12,800 175,971
Park Dedication Fee 35.971 14.100 50,071
Building Inspection Fees 23.251 7.100 30,351
Public Improvements 1,248.460 246.000 1,494,460
Professional Services 1.639.099 58.160 1,697,259
Soft Cost Contingency 50.000 25.000 75,000
Closing Costs 34.076 8.693 42,770
Cost of Financing 478.555 75,279 553,835
Developer Fee 642.997 37.500 680,497
Total Uses of Fonds S 12,859,949 S 1,728,603 S 14,588,551
$ $
FINANCING GAP $ (393,003) 41,803 $ (351,200)
CENTERVILLE, 1\11NNESOT A - Anchor Tenant
Project I-B9
SOURCES OF FUNDS
First Mortgage $ 2,190,821
Additional Gap Financing Required 353,505
Tax Increment Financing 194,200
Greater Minnesota Housing Funds (MHF A)
Sales Proceeds Office Condo & Townhome Lots
Total Sources of Funds S 2,738,526
USES OF FUNDS
Acquisitions Costs $ 280,000
Demolition I Site Preparation
Relocation Specialist
CorumwmonCosts/~pro~mmts 1,910,066
Cash Accounts (Tax & Isurance Escrows, Marketing Costs, Etc...) 64,020
Municipal Costs
Sewer and Water Access Charge 11,000
Park Dedication Fee 9,648
Building Inspection Fees 12,515
Public ~provemmts
Professional Services 238,115
Soft Cost Contingmcy 30,000
Closing Costs 14,820
Cost of Financing 86,130
Tax Credit Fees
Develo Fee 82,212
Total Uses of Funds $ 2,738,526
$
FINANCING GAP $ 353,505
SCHEDULE D
PUBUC DEVELOPMENT COSTS
The folloWing constitute the types of Public Development Costs that to be incurred by Developer
and reimbmsed as provided in the Agreement:
Land acquisition
Relocation
Demolition
Site preparation
Environmental remediation
Costs of designing and constructing the Public Improvements
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SCHEDULE E
ESTIMATES OF FINANCIAL ASSISTANCE
The following are preliminary estimates of public financial assistance to be made available to the
Developer:
ESTIMATES OF PUBUC
ASSISTANCE
MN DEED Redevelopment Grant $ 588,900.00
Beard EMV
*Tax Increment Financing - Phase One $2,819,152.00 $ 4,544,800.00
*Tax Increment Financing - Phase Two $4,577,035.00 $ 5,120,000.00
*Tax Increment FInancing - Phase
Three $1,206,540.00 $10,560,000.00
*Tax Increment FInancing - Phase Four $ 770,358.00 $ 5,400,000.00
*Tax Increment FInancing - Total $9,373,085.00 $75,624,800.00
The city will file grant applications for potentially additional public assistance
The above estimates were prepared using estimates of market values provided by the Developer.
SCHEDULE F
FORM OF NOTE
SCHEDULE G
PUBUC IMPROVEMENTS
The following constitute descriptions of the Public Improvements together with pteHminary cost
estimates for the work:
Leaal. Ena
Location ~ Water Sewer Storm & Adm J:gtg!
Centervlne Road - WestvIew to
Heritage $452,535.00 $29,020.00 $86,225.00 $77,812.50 $258,237.00 $903,829.50
Sorel - Goiffon to progress $278,087.50 $42,510.00 $33,435.00 $72,287.50 $170,528.00 $596,848.00
Heritage - Goiffon to progress $167,O30.~ $47,922.50 $23,246.25 $44,237.50 $112,974.50 $395,410.75
Progress - Heritage to Westvlew $366,781.25 $48,185.00 $52,387.50 $37,762.50 $202,046.50 $707,162.75
Main Street - Golffon to progress $455,000.00 $80,000.00 $0.00 $150,000.00 $274,000.00 $959,000.00
$1,719,433.75 $167,637.50 $195,293.75 $382,100.00 $985,786.00 $3,450,251.00
Phase One $687,773.50 $48,053.75 $133,735.00 $347,824.90 $1,217,387.15
Phase Two $601,801.81 $107,537.50 $142,906.25 $133,735.00 $394,392.23 $1,380,372.79
Phase Three $257,915.06 $12,046.25 $26,193.75 $57,315.00 $141,388.03 $494,858.09 .
Phase Four $171,943.38 $26,193.75 $57,315.00 $102,180.85 $357,632.98
$1,719,433.75 $167,637.50 $195,293.75 $382,100.00 $985,786.00 $3,450,251.00
Public Improvement Costs estimated by Mark statz, Bonestroo Ine.
SCHEDULE H
City Fee Schedule
SCHEDULE I
Timing of Development Activities
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PURCHASE AGREEMENT
TIllS AGREEMENT' is made as of June . 2007, by and between the CITY OF
CENTERVILLE, MINNESOTA., ("Seller") and THE BEARD GROUP, INC. ("Buyer").
In considemtion of this Agreement, Seller and Buyer agree as follows:
1. Sale of Property. Seller agrees to sell to Buyer, and Buyer agrees to buy from Seller, the
following property (collectively, the "Property"): the real property located in the City of
Centerville (the "City"), and legally described on Exhibit A (the legal description is
subject to modification based on the survey of the real property described in Section 6.1
hereof) (the "Land"), together with (1) all buildings and improvements cons1ru.cted or
located on the Land (the "Buildings"), and (2) all easements and rights benefiting. or
appurtenant to the Land (collectively, the "Real Property" or the "Property").
2. Purchase Price and Manner of Payment. The total purchase price (the "Purchase Price")
to be paid for the Property shall be Four Hundred Twenty Thousand and No/I00 Dollars
($420,000.00). The Purchase Price shall be payable as follows:
2.1. $5,000.00 as earnest money ("Earnest Money"), which Earnest Money shall be
held Commercial Partners Title, LLC. ("Escrow Agent") in accordance with an
escrow agreement among Seller, Buyer and Escrow Agent The Earnest Money
shall be paid by Buyer within 48 hours after receiving a fully executed original of
this Purchase Agreement from Seller.
2.2. $415,000.00 in cash, certified check, cashier's check or by wire transfer of funds
on the Closing Date reduced by any Additional Earnest Money .deposited by
Buyer pursuant to Section 4.
3. Contingencies. The obligations of Buyer under this Agreement are contingent upon each
of the following:
3.1. Representations and Warranties. The representations and warranties of Seller
contained in this Agreement must be true now and on the Closing Date as if made
on the Closing Date.
3.2. Title. Title shall have been found acceptable, or been made acceptable, in
accordance with the requirements and terms of Section 6 below.
3.3. Access and Inspection. Seller shall have allowed Buyer, and Buyer's agents,
immediate access to the Real Property without charge and at all reasonable times
for the purpose of Buyer's investigation and testing the same. Seller shall make
available to Buyer and Buyer's Agents without charge all records, inventories,
perIi1its and correspondence in Seller's possession relating to Hazardous
- 1 -
Substances affecting the Property; and the right to interview employees of Seller
who may have knowledge of such matters. Buyer shall have been satisfied with
the results of all tests and investigations performed by it on or before the
Contingency Date.
3.4. Government Approvals. Buyer shall have obtained, at its sole cost and expense,
on or before the Contingency Date, all final governmental approvals necessary in
Buyer's judgment in order to make the use of the Property which Buyer intends,
including a commitment from the City for tax increment financing and a letter of
support from the City for the development of approximately forty-one (41)
affordable rental housing units. Seller shall cooperate in all reasonable respects
with Buyer in obtaining such approvals, and shall execute such applications,
permits and other documents as may be reasonably required in connection
therewith.
3.5. Financinll. Buyer shall have received, on or before the Contingency Date,
commitments for financing necessary and sufficient, in Buyer's opinion, to
implement Buyer's plans for and to complete the purchase and development of the
Property.
3.6. Environmental Assessment At Buyer's sole cost and expense, Buyer shall have
obtained and be satisfied with, in Buyer's sole discretion, on or before the
Contingency Date, a Phase I Environmental Site Assessment of the Property in
accordance with the Minnesota Pollution Control Agency V oluntaty Investigation
and Cleanup Guidance Document #8.
If any contingency has not been satisfied on or before October 30, 2007 (the
"Contingency Date''), or such other date determ.iD.ed pursuant to Section 6, as the case
may be, then this Agreement may be terminated by notice from Buyer to Seller. Upon
termination, the Earnest Money, and any interest accrued thereon, if any, shall be released
to Buyer and upon return; neither party will have any further rights or obligations
regarding this Agreement or the Real Property. All the contingencies are specifically for
the benefit of the Buyer, and the Buyer shall have the right to waive any contingency by
written notice to Seller. If this Agreement is not terminated by Buyer on or before the
Contingency Date, the Earnest Money shall be nonrefundable absent Seller's default
4. Closing. The closing of the purchase and sale contemplated by this Agreement (the
"Closing") shall occur on or before December 30, 2007 (the "Closing Date"). Buyer shall
have the right to extend the Closing Date for up to thirty (30) days. In order to extend the
Closing Da.re, Buyer shall, prior to the Closing Date, give written notice to Seller of the
extension and delivery to the Escrow Agent Ten Thousand and No/100 Dollars
($10,000.00) additional earnest money ("Additional Earnest Money''). The Closing shall
take place at the office of The Beard Grpup, Inc. in Hopkins, Minnesota. Seller agrees to
deliver possession of the Property to Buyer on the Closing Date.
-2-
4.1. Seller's Closin2 Documents. On the Closing Date, Seller shall execute and deliver
to Buyer the following (collectively, "Seller's Closing Documents"), all in form
and content reasonably satisfactory to Buyer:
4.1.1. Deed. A Warranty Deed conveying the Real Property to Buyer, free and
clear of all encumbrances, except the Permitted Encumbrances hereafter
defined.
4.1.2. FIRPTA Affidavit. A non-foreign affidavit, properly executed, containing
such information as is required by IRC Section 1445(b )(2) and its
regulations.
4.1.3. IRS Forms. A Designation Agreement desigTIating the "reporting person"
for purposes of completing Internal Revenue Form 1099 and, if applicable,
Internal Revenue Form 8594.
4.1.4. Well Certificate. A Certificate signed by Seller warranting that there are
no "Wells" on the Property within the meaning ofMinn. Stat. ~ 1031 or if
there are "Wells", a Well Certificate in the form required by law.
4.1.5. Storae:e Tanks. If the Property contains or contained a storage tank, an
affidavit with respect thereto, as required by Minn. Stat. ~ 116.48.
4.1.6. Individual Sewage Treatment Svstems. If the Property contains an
individual sewage treatment system, a disclosure statement as required by
Minn. Stat. ~ 115.55.
4.1.7. Other Documents. All other documents reasonably determined by Buyer
or Title to be necessary to transfer the Property to Buyer free and clear of
all encumbrances, except the permitted encumbrances.
,
4.2. Buyer's Closing Documents. On the Closing Date, Buyer will execute and deliver
to Seller the following (collectively, "Buyer's Closing Documents"):
4.2.1. Purchase Price. Funds representing the Purchase Price, by wire transfer
and execution or delivery of any required Seller's financing documents.
4.2.2. IRS Form. A Designation Agreement designating the "reporting person"
for purposes of completing Internal Revenue Form 1099 and, if applicable,
Internal Revenue Form 8594.
5. Prorations. Seller and Buyer agree to the following prorations and allocation of costs
regarding this Agreement:
5.1. Title Insurance and Closing Fee. Seller will pay all costs of the Title Evidence
and the fees charged by Title for any escrow required regarding Buyer's
-3-
Objections. Buyer will pay all premiums required for the issuance of any Title
Policy. Seller and Buyer will each pay one-half of any closing fee or charge
imposed by any closing agent or by the title company.
5.2. Deed Tax. Seller shall pay all State Deed Tax payable in connection with this
transaction. Buyer shall pay all Mortgage Registry Tax payable in connection
with Buyer's financing.
5.3. Real Estate Taxes and Special Assessments. All Real Estate Taxes and Special
Assessments payable in the years prior to the year in which the Closing occurs
shall be paid by Seller. Real Estate Taxes payable in the year in which Closing
occurs, and installments of Special Assessments payable therewith, shall be pro-
rated based upon a calendar year based upon the Date of Closing, except that if
Buyer's lender shall require Special Assessments to be prepaid, Seller shall prepay
the same on the Date of Closing.
5.4. Other Costs. All operating costs of the Property, if any, shall be allocated
between Seller and Buyer as of the Closing Date, so that Seller pays that part of
operating costs payable before the Closing Date, and Buyer pays that part of
operating costs payable from aild after the Closing Date.
5.5. Attorney's Fees. Each of the parties will pay its own attorney's fees, except that a
party defaulting under this Agreement or any Closing Document will pay the
reasonable attorneys' fees and court costs incurred by the nondefaulting party to
enforce its rights hereunder.
6. Title Examination. Title Examination will be conducted as follows:
6.1. Seller's Title Evidence. Seller shall, within twenty (20) days after the date of this
Agreement, furnish the following (collectively, "Title Evidence") to Buyer: (a) a
commitment ("Title Commitment") for an ALTA Form B 1990 Owner's Policy of
Title Insurance insuring title to the Real Property, deleting standard exceptions
and including affirmative insurance regarding zoning, contiguity, appurtenant
easements and such other matters as may be identified by Buyer, in the amount of
the Purchase Price, issued by a title insurance company acceptable to Buyer
("Title"); (b) if the Property is abstract property, Seller shall also deliver to Title or
Buyer an Abstract of Title to the Real Property certified to a current date to
include all appropriate judgment and bankruptcy searches; (c) an ALTA survey
prepared by a registered land surveyor and certified to Buyer and Buyer's lender, if
ariy, within thirty (30) days from the date hereof showing the Real Property and
location of all buildings and easements thereon and such other information and
containing such matters as Buyer or Buyer's lender shall reasonably request.
6.2. Buyer's Objections. Within twenty (20) days after receiving the last of the Title
Evidence, Buyer will make written objections ("Objections") to the form and/or
-4-
contents of the Title Evidence. Buyer's failure to make Objections within such
time period will constitute waiver of Objections. Any matter shown on such Title
Evidence and not objected to by Buyer shall be a "Permitted Encumbrance"
hereunder. Seller will have thirty (30) days after receipt of the Objections to cure
the Objections, during which period the Closing will be postponed, if necessary.
Seller shall use its best efforts to correct any Objections. To the extent an
Objection can be satisfied by the payment of money, Buyer shall have the right to
apply a portion of the cash payable to Seller at the Closing to satisfaction of such
Objection, and the amount so applied shall reduce the amount of cash payable to
Seller at the Closing. If the Objections are not cured within such thirty (30) day
period, Buyer will have the option to do any of the following:
6.2.1. Terminate this Agreement and receive a refund of the Earnest Money and
the interest accrued and unpaid on the Earnest Money, if any.
6.2.2. Withhold from the Purchase Price an amount which, in the reasonable
judgment of Title, is sufficient to assure cure of the Objections. Any
amount so withheld will be placed in escrow with Title, pending such
cure. If Seller does not cure such Objections within sixty (60) days after
such escroW is established, Buyer may then cure such Objections and
charge the costs against the escrowed amount The parties agree to
execute and deliver such documents as may be reasonably required by
Title, and Seller agrees to pay the charges of Title to create and administer
the escrow.
6.2.3. Waive the objections and proceed to close.
7. Operation Prior to Closing. During the period from the date of Seller's acceptance of this
Agreement until the Closing Date (the "Executory Period"), Seller shall operate and
maintain the Property in the ordinary course of business in accordance with prudent,
reasonable business standards, including the maintenance of adequate liability insurance.
Seller shall execute no contracts, leases or other agreements regarding the.Property during
the Executory Period that are not terminable on or before the Closing Date, without the
prior written consent of Buyer, which consent may be withheld by Buyer at its sole
discretion.
8. Representations and Warranties by Seller. Seller represents and warrants to Buyer as
follows:
8.1. Existence: Authoritv. Seller is duly organized, qualified and in good standing,
and has the requisite power and authority to enter into and perform this
Agreement and Seller's Closing Documents; such documents have been duly
authorized by all necessary action; such documents are valid and binding
obligations of Seller, and are enforceable in accordance with their terms.
- 5-
8.2. Environmental Laws. To the best of Seller's knowledge, no toxic or hazardous
substances or wastes, pollutants or contaminants (including, without limitation,
asbestos, urea formaldehyde, the group of organic compounds known as
polychlorinated biphenyls, petroleum products including gasoline, fuel oil, crude
oil and various constituents of such products, and any hazardous substance as
defined in any state, local or federal law, regulation, rule, policy or order relating
to the protection of the environment) (collectively, "Hazardous Substance") have
been generated, treated, stored, transferred from, released or disposed of, or
otherwise placed, deposited in or located on the Property, nor has any activity
been undertaken on the Property that would cause or contribute to the Property
~ming a treatment, storage or disposal facility within the meaning of, or
otherwise bring the Property within the ambit of, any state, local or federal law,
regulation, rule, policy or order relating to the protection of the environment. To
the best of Seller's knowledge, there has been no discharge, release or threatened
release of Hazardous Substances from the Property. To the best of Seller's
knowledge, there are no Hazardous Substances or conditions in or on the Property
that may support a claim or cause of action under any state, local or federal law,
regulation, rule, policy or order relating to the protection of the environment. The
Property is not now, and to the best knowledge of Seller never has been, listed on
any list of sites contaminated with Hazardous Substances, nor used as landfill,
dump, disposal or storage site for Hazardous Substances.
8.3. FIRPTA. Seller is not a "foreign person", "foreign partnership", "foreign trust" or
"foreign estate", as those terms are defined in Section 1445 of the Intema1
Revenue Code.
8.4. Wells and Individual Sewae:e Treatment Systems. The Seller certifies and
warrants that the Seller does not know of any "Wells" on the described Property
within the meaning of Minn. Stat. ~ 1031 or "Individual Sewage Treatment
Systems" on the described Property within the meaning of Minn. Stat. ~ 115.55.
This representation is intended to satisfy the requirements of those statutes.
8.5. Storage Tanks. No above ground or underground tanks are located in or about the
Property, or have been located under, in or about the Property and have
subsequently been removed or filled. To the extent storage tanks exist on or
under the Real Property, such storage tanks have been duly registered with all
appropriate regulatory and governmental bodies, and otherwise are in compliance
with applicable federal, state and local statutes, regulations, ordinances and other
regulatory requirements.
8.6. Reports. Seller has delivered to Buyer copies of all environmental reports and
studies relating to the Property which are in the possession of Seller.
8.7. No Conflict or Lien. Neither the execution or delivery of this Agreement nor the
consummation of the transaction as contemplated herein will conflict with or
-6-
result in a breach of any contract, license or undertaking to which Seller is a party
or by which any of its property is bound, or constitute a default thereunder or,
except as contemplated herein, result in the creation of any lien or encumbrance
upon the Property.
8.8. No Proceedinp:s. No legal or administrative proceeding is threatened or pending
against Seller which would adversely affect its right to convey the Real Property
to Buyer as contemplated in this Agreement. There are no condemnation or
eminent domain proceedings pending or threatened with respect to the Real
Property and there are no legal or administrative proceedings pending or
threatened affecting the Real Property.
8.9. Utilities. Water, gas, telephone, electricity and storm sewer utilities are currently
available on or near the Real Property and with the capacity to handle the
proposed improvement without additional cost to Buyer.
8.10. Private Restrictions. There are no and will be no private restrictions that affect
the uses which may be made of the Real Property by Buyer, including, but not
limited to, the size or cost of any building or structures to be placed on the Real
Property, limitations on use or restrictions in regard to fences, roofs, garages and
heights of buildings or structures to be placed on the Real Property, agreements to
subject architectural plans to an association or other group, provisions requiring
the joining with others in group actions, or restrictions imposed on the Real
Property due to its historical significance.
8.11. Additional Interests. There are no property interests or other improvements that
are owned by Seller and which are necessary or useful for the operation of the
Property that are not being conveyed pursuant to this Agreement.
Seller will indemnify Buyer, its successors and assigns, against, and will hold Buyer, its
successors and assigns, harmless from, any expenses or damages, including reasonable
attorneys' fees, that Buyer incurs because of the breach of any of the above
representations and warranties, whether such breach is discovered before or after Closing.
Consummation of this Agreement by Buyer with knowledge of any such breach by Seller
will not constitute a waiver or release by Buyer of any claims due to such breach.
9. Condemnation. If eminent domain proceedings are threatened or commenced against all
or any part of the Property, Seller shall immediately give notice to Buyer, and Buyer shall
have the right to terminate this Agreement and receive back all Eamest Money by giving
notice within thirty (30) days after Seller's notice. If Buyer shall fail to give the notice,
then the parties shall proceed to Closing, and Seller shall assign to Buyer all rights to
appear in and receive any award from such proceedings.
10. Broker's Commission. Seller agrees to pay any and all broker's commissions in
connection with this transaction, if any, and agree to indemnify and hold the Buyer
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harmless from all claims, damages, costs or expenses of or for any other such fees or
commissions resulting from their actions or agreements regarding the execution or
performance of this Agreement, and will pay all costs of defending any action or lawsuit
brought to recover any such fees or commissions incurred by the other party, including
reasonable attorneys' fees.
11. Assimlment. Either party may assign its rights under this Agreement before or after the
Closing. Any such assignment will not relieve such assigning party of its obligations
under this Agreement.
12. Survival. All of the terms of this Agreement and warranties and representations herein
contained shall survive and be enforceable after the Closing.
13. Notices. Any notice required or permitted hereunder shall be given by personal delivery
upon an authorized representative of a party hereto; or if mailed in a sealed wrapper by
United States registered or certified mail, return receipt requested, postage prepaid; or if
transmitted by facsimile copy followed by mailed notice; or if deposited cost paid with a
nationally recognized, reputable overnight courier, properly addressed as follows:
If to Buyer:
The Beard Group, Inc.
750 2nd S1reet NE, Suite 100
Hopkins, MN
Attention: Ronald G. Mehl
Facsimile #: (952) 930-0631
If to Seller:
The City of Centerville
City Hall
1880 Main Street
Centerville, MN 55038-9794
United States of America
Attention: John Meyer
Facsimile #: (651) 429-3232 Ext 11
Notices shall be deemed effective on the earlier of the date of receipt or the date of
deposit, as aforesaid; provided, however, that if notice is given by deposit, the time for
response to any notice by the other party shall commence to run one business day after
any such deposit. Any party may change its address for the service of notice by giving
notice of such change ten (10) days prior to the effective date of such change.
14. Miscellaneous. The paragraph headings or captions appearing in this Agreement are for
convenience only, are not a part of this Agreement, and are not to be considered in
interpreting this Agreement. This written Agreement constitutes the complete agreement
between the parties and supersedes any prior oral or written agreements between the
parties regarding the Property. There are no verbal agreements that change this
Agreement, and no waiver of any of its terms will be effective unless in writing executed
-8-
by the parties. This Agreement binds and benefits the parties and their successors and
assigns. This Agreement has been made under the laws of the State of Minnesota and
such laws will control its interpretation.
15. Remedies. If Buyer defaults under this Agreement, Seller's sole right will be to terminate
this Agreement pursuant to Minnesota Statute Section 559.21 and obtain the Earnest
Money as liquidated d8mages and the Buyer will not be liable for damages or specific
performance. If Seller defaults under this Agreement, the Earnest Money and the
Additional Earnest Money, if any, shall be returned to Buyer, and Buyer shall recover as
damages from Seller all of Buyer's out-of-pocket costs and fees, including without
limitation, attorneys' fees, accountants' fees and other consultants' fees incurred. by Buyer
in preparing and negotiating this Agreement, preparing for the closing, obtainine
financing commitments, investigating the status, title and condition of the Property, and
other similar and reasonable costs and expenses, or shall recover specific performance of
this' Agreement
16. Withdrawal of Offer. This Agreement shall be deemed to be withdrawn, unless accepted
by Seller, and a fully executed counterpart of this Agreement returned to Buyer on or
before June 15,2007.
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Seller and Buyer have executed this Agreement as of the date first written above.
SET.T .Ell:
City of Centerville, Minnesota
Date of Signature
. 2007
By:
Its
Seller's Tax I.D. Number
BUYER:
The Beard Group, Inc.
Date of Signature
. 2007
By:
Its
Buyer's Tax lD. Number
-10 -
-~ "",.,
ESCROW RECEIPT
The undersigned, Commercial Partners Title, LLC ("Escrow Agent"), acknowledges receipt of
Ten Thousand and Noll 00 Dollars ($5,000.00) (the "Deposit") to be held by it pursuant to the
Purchase Agreement to which this Escrow Receipt is attached. Escrow Agent agrees to hold the
Deposit in accordance with the terms of the Purchase Agreement and disburse the same strictly in
accordance with such terms. Escrow Agent shall invest the Deposit in such interest-bearing
accounts or instruments as shall be approved by both Buyer and Seller. Interest shall accrue for
the benefit of Buyer.
Seller and Buyer represent that their respective Tax J.D. Numbers are as follows: Seller,
; Buyer,
Escrow Agent shall have no responsibility for any decision concerning performance or
effectiveness of the Purchase Agreement or to resolve any disputes concerning the Purchase
Agreement Escrow Agent shall be responsible only to act in accordance with the joint and
mutual direction of both Seller and Buyer, or in lieu thereof, the direction of a court of competent
jurisdiction. Seller and Buyer undertake to hold Escrow Agent harmless from all claims for
damages arising out of this Escrow Receipt and do hereby agree to indemnify Escrow Agent for
an costs and expenses in connection with this escrow, including court costs and attorneys' fees,
except for Escrow Agent's failure to account for the funds held hereunder, or acting in conflict
with the terms hereof.
The fees and charges of the Escrow Agent shall be paid by Buyer.
ESCROW AGENT:
Commercial Partners Title, LLC
By
Its
SELLER:
City of Centerville, Minnesota
By
Its
BUYER:
The Beard Group, Inc.
By
Its
EXOl8IT A
(Legal Description)