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HomeMy WebLinkAboutCCAgenda_04Jan7it i• CITY OF FALCON HEIGHTS Regular Meeting of the City Council City Hall 2077 West Larpenteur Avenue AGENDA January 7, 2004 A. CALL TO ORDER: 7:00 PM B. ROLL CALL: GEHRZ KUETTEL LAMB LINDSTROM TALBOT WORTHINGTON SHEA KODLUBOY ATTORNEY ENGINEER C. OATH OF OFFICE D. COMMUNITY FORUM: E. PRESENTATION: Recognition of CERT graduates and awarding of CERT pins F. APPROVAL OF MINUTES: * November 26, 2003 * December 8, 2003 * December 10, 2003 TAB 1 G. PUBLIC HEARINGS: None Scheduled H. CONSENT AGENDA: 1. General Disbursements through December 31, 2003: $ 198,816.33 Payroll (12/15/03-12/30/03): $ 12,140.07 TAB 2 2. Licenses TAB 3 3. Review and adopt Council standing rules TAB 4 4. Resolution designating official depositories for 2004 TAB 5 5. Consider Resolution 04-02 approving a 3% standard compensation increase for regular employees in 2004 TAB 6 6. Appointment of City Engineer for 2004 TAB 7 • i• FALCON HEIGHTS CITY COUNCIL AGENDA -2- January 7, 2004 H. CONSENT AGENDA (continued) 7. Appointment of City Attorneys for 2004 TAB S 8. Designation of official newspaper for 2004 TAB 9 9. Final payout of $1,767.68 to Allied Blacktop for 2003 sealcoating TAB 10 project 10. Acceptance of 2004 SCORE Grant from Ramsey County TAB 11 I. POLICY AGENDA: 1. 2004 Council liaison assignments TAB 12 2. Commission reappointments-Planning, Parks & Recreation and TAB 13 Neighborhood 3. Request for action on the option to waive the statutory tort limits • under the LMCIT insurance plan TAB 14 4. Grant Agreement with Sherman & Associates for the expenditure of Met Council Grant Funds TAB 15 5. Consideration of amendment to the Building Official Agreement, and appointment of Steve Westerhaus as Building Official TAB 16 6. Consideration of the amended and restated multifamily development agreement TAB 17 J. REPORTS FROM COUNCIL MEMBERS: K. INFORMATION AND ANNOUNCEMENTS: L. ADJOURNMENT • CITY OF FALCON HEIGHTS COUNCIL MINUTES November 26, 2003 Mayor Gehrz convened the regular City Council meeting at 7:00 PM. PRESENT: Mayor Sue Gehrz, Council members Laura Kuettel, Robert Lamb, Peter Lindstrom and Richard Talbot Also present: City Administrator Heather Worthington, City Attorney Matthew Foli and Deputy Clerk Mary Shea Kodluboy COMMUNITY FORUM: There was no commentary from the audience. PRESENTATION: None Scheduled APPROVAL OF MINUTES: Council member Kuettel recommended approval of the Council minutes dated November 12, 2003, with one change on page 3, paragraph 3, last sentence. The sentence should read: "She asked that she be able to take a peek at the newsletter before it goes out in December." The motion was unanimously approved. PUBLIC HEARINGS: Consider the Vacation of Street Easements and an Alley Administrator Worthington said the City proceeded with a condemnation of the frontage road adjacent to the new Dino's parcel in late August: The City has agreed to vacate the easements on those parcels, and convey the land to the two adjacent landowners, Dino Adamidis and Steve Wellington, for use as parking. She utilized the overhead projector to describe the easement areas being proposed for vacation. The City will retain an access easement across the alley right-of--way, and across the parking lot for purposes of access for residents adjacent to the new Dino's parcel. The access on the site will not change from its current configuration, and will still allow residents and patrons of the shopping center access to their homes via the alley, and the parking lot for the Falcon Crossing Center via the alley and parking lot, as well as access for public safety vehicles. Attorney Foli explained that just a small portion of the alley that runs east/west will be vacated and Administrator Worthington highlighted the location on the overhead projector. Council member Lamb asked if the sidewalk and bus stop will remain and Administrator Worthington told him they would. Council member Lindstrom said that the general consensus of the Planning Commission, during their review of the site plan for Dino's new restaurant, was that some green space remain, but recognized the importance of having adequate parking spots to meet code requirements. Dino's initial site plan included adrive-thru, but Dino removed the drive-thru. FALCON HEIGHTS CITY COUNCIL MINUTES -2- November 26, 2003 Consider the Vacation of Street Easements and an Alley (continued) Council member Kuettel said that residents will still be able to access that area and Administrator Worthington said that access won't change. The Public Hearing was opened to the audience for commentary. There was no commentary from the audience and the Public Hearing was closed. Council member Lindstrom asked for an update regarding Dino's. Administrator Worthington said the contractor is attempting to get the concrete curbing and asphalt in before winter. The sewer work was being done earlier in the day. Construction will take about 60-90 days. Construction has been slowed because they found an old structure on the site that had been demolished years ago and dumped into the basement. That material had to be removed before construction could begin. They are making decent progress. Council member Lamb said that the City Council has essentially already approved this. Administrator Worthington said that a neighbor came in with questions about alley access and they were answered. The construction foreman also changed the curbing for him so that his access will be better. RESOLUTION 2003-23 Kuettel moved adoption of Resolution 2003-23 vacating street easements and alley, as described in Exhibit A, outlined below. The motion was unanimously approved. EXHIBIT "A" The easement for street purposes granted by the State of Minnesota to the City of Falcon Heights by quit claim deed dated May 17, 1997 and filed June 4, 1997 as Document Number 1155682 with the Ramsey County Registrar of Titles, affecting only that part of the land evidenced by Certificate of Title No. 153297 described below: That part of the Westerly 159.5 feet, except the North 49.5 feet thereof, of the Northwest Quarter of the Northwest Quarter of Section 22, Township 29, Range 23 West, Ramsey County, Minnesota, lying Northerly of the Westerly extension of the Southerly line of Tract A, Registered Land Survey Number 2; which lies Easterly of Line 1 described below: Line 1. Commencing at the Northwest corner of said Section 22; thence run Easterly along the North line thereof on an azimuth of 88 degrees 48 minutes 49 seconds for 159.53 feet; thence on an azimuth of 179 degrees 53 minutes 31 seconds for 89.90 feet to the point of beginning of Line 1 to be described; thence on an azimuth of 269 degrees 53 minutes 31 seconds for 39.50 feet; thence on an azimuth of 179 degrees 53 minutes 31 seconds for 550.89 feet and there terminating. a FALCON HEIGHTS CITY COUNCIL MINUTES -3- November 26, 2003 Consider the Vacation of Street Easements and an Alley (continued) 2. The easement for street purposes granted by the State of Minnesota to the City of Falcon Heights by quit claim deed dated May 17, 1997 and filed June 4, 1997 as Document Number 1155682 with the Ramsey County Registrar of Titles, affecting only that part of the land evidenced by Certificate of Title No. 81354 described below: That part of the west 110 feet of Lots 1, 2 and 3 and the west 19.31 feet of Lot 23 and Lot 24 of Block 10, FALCON HEIGHTS ADDITION, according to the recorded plat thereof and on file in the office of the County Recorder in and for Ramsey County, Minnesota; which lies easterly of Line 1 described below: Line 1. Beginning at the southwest corner of Section 15, Township 29 North, Range 23 West; thence run easterly along the south line thereof on an azimuth of 88 degrees 48 minutes 49 seconds for 159.53 feet; thence on an azimuth of 359 degrees 35 minutes 10 seconds for 147.84 feet; thence on an azimuth of 269 degrees 35 minutes 28 seconds for 39.50 feet; thence on an azimuth of 359 degrees 35 minutes 28 seconds for 2000 feet and there terminating. 3. The alley in Block 10, FALCON HEIGHTS ADDITION, lying west of the plat of KELLER'S • RE-ARRANGEMENT OF BLOCK 10, FALCON HEIGHTS ADDITION. CONSENT AGENDA: Kuettel moved approval of the Consent Agenda, as outlined below. The motion was unanimously approved. 1. General Disbursements through November 20, 2003: $ 106,471.89 2. Payroll (11/01/03-11/15/03): $ 11,086.32 Council member Lindstrom asked how many people use the web-streaming component. Administrator Worthington said that she didn't believe there was a counter on it. The City does get between 20-45 hits on its web-site each day. POLICY AGENDA Purchase of New Playground Equipment for Community Park Administrator Worthington said the Parks and Public Works 5-Year Capital Improvement Plan has the small play structure at Community Park scheduled for replacement in 2003. $15,000 was budgeted for replacement. The reasons for replacing this structure: The parts are made from treated lumber, which contains chemicals; the tires hold water, which can become a breeding ground for mosquitoes; the slide is damaged and replacing the splintered lumber creates a • liability; and the surface and edging are not ADA compliant. 3 FALCON HEIGHTS CITY COUNCIL MINUTES -4- November 26, 2003 Purchase of New Playground Equipment for Community Park (continued) Administrator Worthington said that Community Park currently lacks play equipment that encourages creative play. Staff provided the Park Commission diagrams of different types of play structures that stimulate creative play. After reviewing these structures the Park Commission preferred the "Schooner" model manufactured by Play World Systems and distributed by Midwest Playscapes of Chaska, MN. The total cost to install this structure, including ADA compliant curbing and surface, is $21,500. The Lauderdale/Falcon Heights Lions Club has donated $3,000 toward the purchase of this playground. There was $6,000 budgeted for rubber ADA surfacing at the Grove Park in 2003, but by using ADA compliant engineered wood fiber the City saved $5,000. Staff recommends using $3,500 of this money to help pay for the surface, curbing and installation of the new play structure at Community Park. On November 10, 2003, the Park Commission voted unanimously to recommend to the City Council the purchase and installation of the "Schooner" play structure, at a total cost of $21,500. Council member Kuettel, for the benefit of the cable audience, explained that she is the Council liaison to the Park Commission. Council member Kuettel said the playground is really used and the new play structure will be good for 2-12 year olds. It is important for the residents to have a . safe place to take their children. Council member Lamb asked if the City has finished complying with the ADA requirements. Can this money be diverted? Administrator Worthington said that the City is in compliance with the 2003 ADA Plan. Also, the money will be utilized for the same purpose. Council member Lamb said that even though the bid is for $21,500, the City can still keep the project within budget, with the help of the Lions. He thanked the Falcon Heights/Lauderdale Lions for their continued support. Council member Lindstrom said that during the Christmas season, the Lions sell Christmas trees at Community Park. Council member Kuettel commented that she and Council member Lindstrom, members of the Lions Club, will be taking their turns selling Christmas trees at Community Park. Mayor Gehrz said it is important that people know that when they are looking at the bill for the new play structure, the cost includes freight ($1,272.73) and sales tax ($1,074.27). Anytime the City purchases something they have to pay sales tax on it. People think the City doesn't have to pay sales tax but it does. What will happen with the old equipment? Will we move it or sell it? Administrator Worthington said that because of the chemicals in the treated wood, it will have to go to a recycling firm that handles hazardous waste. She went on to say that the lease agreement with the University of Minnesota, the underlying landowner, stipulates that any improvements on the park stay with the park if/when it reverts to the owner. • FALCON HEIGHTS CITY COUNCIL MINUTES -5- November 26, 2003 Purchase of New Playaround Equipment for Community Park (continued) Mayor Gehrz thanked the Lions for their generous donation of $3,000. Without their help the City would not be able to offer as many amenities to the community. Council member Lamb asked why the City doesn't replace the rotting wood on the existing structure. Would the liability then shift from the manufacturer to the City? Administrator Worthington said that would be much like voiding a warranty. There are much better materials available now that are much safer. The surfaces are much more forgiving. The chips are recycled rubber so they will be safer to fall into. Mr. Thomas Lageson, 1740 North Pascal Street, asked if the playground equipment at the Falcon Heights Elementary School is of the same material. Administrator Worthington said that right now the City is in the process of re-examining the agreement with ISD 623 regarding that equipment. That was a joint project in the past and the City would like it to be a joint project in the future. In response to a question about space and comparability in size to the existing playground equipment at Community Park, Administrator Worthington said the new playground equipment will take more space. The use zone will be 47' x 27'. Council member Kuettel said that 36 kids can play on the new equipment. It will be a larger piece of equipment. Administrator Worthington said that the City will be buying the equipment now and storing it until spring. Council member Kuettel commented that by doing this, the City will save a chunk of money. Talbot moved approval of the purchase and installation of a new play structure for Community Park, at a total cost of $21,500. The motion was unanimously approved. Request from John Zanmiller West St. Paul City Council member, to be re-appointed to the St. Paul Regional Water Services Board of Directors There was a brief Council discussion about Mr. Zanmiller's request to be reappointed to the St. Paul Regional Water Services Board of Directors. Kuettel moved approval of the reappointment of Mr. John Zanmiller to the St. Paul Regional Water Services Board of Directors, contingent upon him making semi-annual reports to the City Council and the community. The motion was unanimously approved. REPORTS FROM COUNCIL MEMBERS: Council member Lamb said that he, Mayor Gehrz, Heather Worthington and Deb Jones toured the Housing Resources Center and met with their representatives. It is anon-profit organization • with the mission to promote affordable housing.. • FALCON HEIGHTS CITY COUNCIL MINUTES -6- November 26, 2003 REPORTS FROM COUNCIL MEMBERS: Council member Lamb said that Housing Resources Center offers six different programs: Information and assistance programs, construction management services, home improvement and purchase programs, senior housing regeneration program, rehabilitation incentive program and rental assistance. It was a very interesting visit. He was impressed at the lack of bureaucracy and the paperwork did not seem very burdensome. Their programs would be applicable in our community. The City's annual subscription rate would be $5,000 and this would make all of the City's residents eligible. Their programs are not restricted to people with low incomes. He suggested that maybe in January all of the Council could familiarize themselves with this organization. Council member Talbot said that he has worked with the Housing Resources Center for three years and has used them as a resource on behalf of the City of Roseville. They are a good organization. It is important to keep the City's housing stock as vital as possible. HRC offers low interest loans and grants and the City can use them as a resource. INFORMATION AND ANNOUNCEMENTS: • Council member Lamb gave a brief update regarding the new 2-sort recycling program and said the new method should be easier for residents, at no additional cost to the City. Council member Kuettel suggested that residents considering purchasing Christmas trees do so from the Lions. They will begin selling trees at Community Park the day after Thanksgiving. Council member Talbot said that the City sponsored community playroom at the Falcon Heights United Church of Christ nursery is open on Wednesday and Friday mornings from 9:30 AM to 12 noon. Adults may bring their infants and preschool age children to meet with others during the winter season for indoor social and recreational opportunities. If anyone has questions, check the City web-site or call City Hall. Mayor Gehrz read a letter of thanks from the Mayor of Saint Paul, Randy Kelly, to Bill Maertz, Parks and Public Works Director, for his assistance with the removal and transport of a 45' Colorado blue spruce donated by Falcon Heights residents Brad and Whitney Burke to the City of St. Paul for their holiday festivities. She said the City has received a $50.00 contribution from the St. Paul Foundation for completion of a survey about racism. The money will go into the Friends of the Parks Fund for improvements and scholarship funds. She said the County has contracted with Paul Kirkwold, recently retired County Manager, to be Project Manager of the 800 MHz communication system task force. Policy makers will figure out how to pay for the new system and identify people from the various communities to serve on the task force. She said the Metropolitan Council has adjusted their projected population numbers for Falcon Heights. They are now projecting a population of 6,100 by 2010. FALCON HEIGHTS CITY COUNCIL MINUTES -7- November 26, 2003 INFORMATION AND ANNOUNCEMENTS: Mayor Gehrz said the University continues to invite discussion about a stadium. They are no longer talking about a joint stadium plan between the University and the Vikings. They are looking at a 55,000 seat capacity stadium and would park about 6,000 cars at the State Fair on game days. A bigger threat would be a Vikings stadium on the fairgrounds. The Neighborhood Commission will be sponsoring CPR training on Saturday, December 6, at a nominal cost of $25.00, and she invited residents to sign up. Some of the funds from the State CERT grant will be used to design and distribute a refrigerator magnet that will be distributed via the City newsletter or a separate mailing. Council member Lindstrom asked if the telephone numbers will stay the same for a period of time. Administrator Worthington said the main number will stay the same for at least a year. The magnets are inexpensive and it was felt it is important to get this piece out to people. Mayor Gehrz said that she met recently with Tom Lageson, one of the candidates for City Council this fall. He e-mailed a nice written report to the Council and is in attendance this evening to review some of the resident concerns expressed to him during his door-to-door campaigning. Mr. Lageson gave a brief, oral review of his written report. One of the most common resident concerns is speeding and he named a number of City streets and areas where • residents feel excessive speeding is occurring. Mayor Gehrz suggested that residents contact City Hall or the police department about speeding problems in their neighborhoods. She said the City has a supply of "Sidewalk Sammy's" available for purchase by residents for $35.00 each. "Sidewalk Sammy" can be moved around a block to aid in slowing traffic. Council member Talbot commented that speeders aren't from Richfield, they are from our neighborhoods. They aren't thinking as they drive through our neighborhoods, they are on autopilot. They need to assume personal responsibility for their driving habits. Administrator Worthington said the Ramsey County Board of Commissioners has established tree and shrub waste drop-off sites at the compost sites and this should eliminate some of the storage on private property. On Monday evening, December 8, 2003, 7 PM at City Hall, the City will hold its Truth in Taxation hearing, a hearing required by State statute. The City is proposing a 0% or flat levy for 2004. The regular City Council meeting was adjourned at 8:30 PM. Respectfully submitted, Mary Shea Kodluboy Deputy Clerk • CITY OF FALCON HEIGHTS COUNCIL MINUTES December 8, 2003 Mayor Sue Gehrz convened the Truth in Taxation Hearing at 7:00 PM. PRESENT: Council members Laura Kuettel, Robert Lamb, Peter Lindstrom and Richard Talbot. Also present: City Administrator Heather Worthington, Finance Director Roland Olson and Deputy Clerk Mary Shea Kodluboy COMMUNITY FORUM: There was no commentary from the audience. PUBLIC HEARINGS: Truth in Taxation Hearin Mayor Gehrz said that the subject of this evening's meeting was the Truth in Taxation Public Hearing and she outlined the protocol that would be followed. The viewing audience and those in attendance will have the opportunity to learn and ask questions about the proposed 20041evy and budget this evening, but City Council action on the proposed 20041evy and budget will • take place at the Council meeting on December 10, 2003. She said that an oral presentation will be made by Administrator Worthington, with assistance from Finance Director Roland Olson. Administrator Worthington explained that each year, cities over 5,000 in population are required by the State Legislature to hold Truth in Taxation Hearings to explain their proposed budget and levy for the following year and the tax notices that are mailed in mid-fall each year by the County. Each taxing authority (County, City, School District) is required to hold these hearings. Administrator Worthington utilized the LCD and overhead projectors to present information about the 0% increase in Falcon Heights' levy for 2004 and the proposed budget of $1,429,919 for 2004. The Public Hearing was opened to the audience for commentary. Ms. Janet Massey, 1743 Maple Court, said that she came to the meeting this evening because she is interested in the process and what the City Council does. Mayor Gehrz thanked Ms. Massey for coming this evening. She said she knows that people watch the Council meetings on television and it is nice when there is someone live in the audience. • There was no further commentary from the audience and the Public Hearing was closed. 8 FALCON HEIGHTS CITY COUNCIL MINUTES -2- • December 8, 2003 Truth in Taxation Hearing (continued) Council member Lamb asked if fiscal disparities are going up or down in 2004. Administrator Worthington said that it will be up about $3,000 in 2004. Council member Lamb said the City is levying the same amount of money for 2004 as it did for 2003. He asked if the City has a breakdown of the residential parcels. Administrator Worthington said that this year's statement from the County did not break down the information as thoroughly as in the past. She gave a brief, oral review of the stratified percentage change and change in total property tax from 2003 to proposed 2004 on residential properties in Falcon Heights. Council member Lamb said that the point he is trying to get to is that the City is holding its dollar amount constant. Some people are seeing City property tax increases on their proposed property tax statements and he would like to know why. Finance Director Olson said that on the homestead credit, $304 is the maximum credit. Properties valued at $76,000 or less are the only ones getting the homestead credit. The Legislature adopted a sliding scale. Residents are losing some of their homestead credit. There were some class rate changes for commercial, industrial, and apartment buildings. Mayor Gehrz said the Council will be voting on the levy on budget at the regular Council • meeting at 7:00 PM on Wednesday, December 10, 2003. The meeting was adjourned at 7:30 PM. Respectfully submitted, Mary Shea Kodluboy Deputy Clerk 9 CITY OF FALCON HEIGHTS COUNCIL MINUTES December 10, 2003 Mayor Gehrz convened the regular Council meeting at 7:00 PM. PRESENT: Mayor Sue Gehrz, Council members Laura Kuettel, Robert Lamb, Peter Lindstrom and Richard Talbot Also present: City Administrator Heather Worthington, Finance Director Roland Olson, Parks/Public Works Director Bill Maertz, Deputy Clerk Mary Shea Kodluboy, Parks Commission Chairperson Chuck Long, and Falcon Heights/Lauderdale Lions Club President John Anderson COMMUNITY FORUM: There was no commentary from the audience. PRESENTATION: Donation from the Falcon Hei~hts/Lauderdale Lions Club for play~round equipment at Communit~Park Mr. John Anderson, President of the Falcon Heights/Lauderdale Lions Club, presented a check for $3,000 to Chuck Long, Parks Commission Chair, and said that this contribution is for the • purchase of new playground equipment at Community Park. He reminded the viewing audience that the money is raised through the Lions Club's annual Christmas tree sales at Community Park. Parks Commission Chair Long accepted the check for $3,000 on behalf of the City and thanked the Lions Club for their generous contribution. He said the new playground equipment will replace the current structure that has outlived its useful life. The Lions Club has supported the City's parks and recreation programs and has provided funds for the new picnic shelter, the gate and the iron fencing. Council member Talbot thanked the people who take the time to write and submit grant applications on behalf of the City. APPROVAL OF MINUTES: The December 8, 2003 Council meeting minutes will be available for Council consideration at the January 7, 2004 Council meeting. PUBLIC HEARINGS: None Scheduled CONSENT AGENDA: Kuettel moved approval of the Consent Agenda, as outlined below. The motion was unanimously approved. 1. General Disbursements through December 5, 2003: $ 33,345.14 • 2. Payroll (11/15/03-11/30/03): $ 11,569.20 /D FALCON HEIGHTS CITY COUNCIL MINUTES -2- December 10, 2003 CONSENT AGENDA (continued) 3. Liquor Licenses - Ciatti's, J's Liquor and Pizza Hut. Approvals contingent upon the City's receipt of all necessary paperwork, insurance and fees by December 31, 2003. 4. Increase Budget Line Items in the Community Development Fund 5. Establish the budget line items of the Special Revenue Fund CERT/CCC 6. Increase Budget Line Items in the Special Revenue Fund 204 POLICY AGENDA: Consideration of Resolution 03-24 Adopting the 2003 Property Tax Lew of $874,338 Mayor Gehrz explained to the viewing audience that the City's Truth in Taxation hearing was held on Monday evening, December 8, and Administrator Worthington and Finance Director Olson had made presentations. There was one resident in attendance that wanted to learn more about the process. The levy and budget being proposed for 2004 are the culmination of more than six months of work on the part of the City Council and staff. • Administrator Worthin on introduced Finance Director Olson and said that on Monday evening Council member Lamb had a question about property tax increases/decreases. Finance Director Olson utilized the overhead projector to give an overview of the proposed levy and budget for 2004, and describe the major factors that affect property taxes for residential, apartment buildings and commercial/industrial. Administrator Worthington commented that the only item that the City has control over is the tax levy, the spending. Mayor Gehrz explained, for the benefit of the viewing audience, that the basis for the discussion is that the City did not increase the taxes from 2003 to 2004. The intent was to use other resources to maintain current City services. The City kept the levy the same but some properties are seeing a slight increase in their property taxes to be paid in 2004. The question being asked is why is that? Finance Director Olson has explained the combination of factors. RESOLUTION 2003-24 Talbot moved adoption of Resolution 2003-24 approving the property tax levy for 2004 in the amount of $874,338. The motion was unanimously approved. Council member Kuettel said that staff and the City Council have worked long and hard on the budget and have tried to be as creative as possible. FALCON HEIGHTS CITY COUNCIL MINUTES -3- December 10, 2003 Consideration of Resolution 03-25 Adopting the 2004 Budget Mayor Gehrz said that the City lost $100,000 of Local Government Aid in 2003 and will lose $100,000 in 2004. This money helps the City pay for services that are mandated by the State. To handle the loss, the City decided to transfer approximately $135,000 from reserves and created a Reserve Policy. Council member Lindstrom said the City has lost Local Government Aid but has also lost tens of thousands of dollars in State tax. For a number of years, cities have had to pay sales tax on their purchases. That adds up to quite a bit of money. Council member Talbot said that in December, it seems like such a quick, simple thing, but the City Council and staff started working on the budget in June, 2003. Mayor Gehrz said that this year, the State Fair started to assist with paying for some of the policing costs. The City has applied for and received grants, and will continue to develop new sources. She invited anyone with ideas that are legal to let the City know about them. RESOLUTION 2003-25 Lamb moved adoption of Resolution 2003-25 approving the 2004 budget in the amount of $1,429,919. The motion was unanimously approved. Purchase of 10 SCBA Units for Fire Department Administrator Worthington said that in mid-2003, the City received a grant in the amount of $12,904.02 for the purchase often (10) Self-Contained Breathing Apparatus (SCBA), with the requirement that the City purchase at least $18,000 worth of equipment in order to receive the grant. The cost per SCBA was estimated at $1,800 for the purpose of that grant, based on information Ramsey County obtained. The Fire Department needs to replace 10 units at this time. When the City bid out the SCBA's, however, the per-unit cost was almost twice that amount, $3,295.00. The City's participation in the original grant would have been $6,000; the participation amount would now be almost $20,045.98. If the City does not apply to the County to use this grant by December 31, 2003, the City will lose the money. Staff has been exploring all other options, including replacing our SCBA with ahigh-pressure system (we now have low-pressure SCBA), and obtaining other price quotes. The units we are considering are the lowest price we can get, but these units are not part of Saint Paul's Joint Purchasing Master Contract, unfortunately, as Saint Paul has converted to ahigh-pressure system. If we were to purchase high-pressure units, we would need to convert our entire SCBA group over to high-pressure for safety reasons, and replace our cascade system (which is used for • filling the tanks). I~ • FALCON HEIGHTS CITY COUNCIL MINUTES -4- December 10, 2003 Purchase of 10 SCBA Units for Fire Department (continued) Administrator Worthington said this would exceed the amount we would pay for the low- pressure SCBA we are hoping to replace at this time (approximately $37,500 for the SCBA and $5,000 for the cascade system, for a total of $42,500). For this reason, staff is recommending that we purchase l Olow-pressure SCBA units at a cost of $3,295.00, for a total of $32,950.00, minus the $12,904.02 grant, for a final total of $20,045.98. Staff also considered purchasing fewer units; however, the rate of return on the City's investments is at less than 2% at this time, and the price increase in SCBA units has been close to 5% per year in the last several years. For this reason, it makes sense to replace those ten units now, rather than replace them at a rate of one or two per year for the next five years. The purchase of these units will be funded out of the Public Safety Capital fund, and the City will not be replacing any more SCBAs until 2007. A brief discussion followed. Kuettel moved approval of the expenditure of $20,045.98 for the purchase often SCBA, and application to the County for the grant in the amount of $12,904.02. The motion was unanimously approved. • Establishment of NE Quadrant Traffic Task Force Administrator Worthington said that in mid-2003, during the public hearing on the new Dino's restaurant site plan, several neighbors in the Crawford/Arona area expressed concern about the amount of cut-through traffic and the speed of that traffic on local, residential streets. At that time, the Planning Commission suggested that a task force be developed to meet, discuss and research these issues. Staff mailed out invitations to residents in the NE Quadrant on July 16, soliciting members for the task force. Positive responses were received from the following residents and business owners in the area interested in serving on the Task Force: Nina Semmelroth Wendy Noble Jeanette Pasek Thomas McClellan Doug Bossard Rachel Berger Don Sobania Jason Adamidis (representing Dino's) Cap Hanson Administrator Worthington said that after the first meeting, staff will report back to the Council on the Task Force's recommendations for moving forward, and establish a policy to guide future requests for traffic studies. Council member Lindstrom asked what the projected timeframe will be and Administrator • Worthington projected it will be a six to eight month process. • FALCON HEIGHTS CITY COUNCIL MINUTES -5- December 10, 2003 Establishment of NE Quadrant Traffic Task Force (continued) Council member Talbot said that traffic is a hot issue and it isn't something that is easily resolved overnight. He endorsed the formation of a Traffic Task Force. Lindstrom moved approval of the establishment of the NE Quadrant Traffic Task Force, and endorsement of the roster. The motion was unanimously approved. Technolog~pgrades Due to the Conversion of the City's Computer Network Administrator Worthington said the City is in the process of converting its computer network over to Roseville's network. As part of the conversion, there are several workstations that either need to be upgraded or replaced because the hardware will not support the network program that Roseville uses. Roseville will make new computers available to us at their contract price, and used computers for a nominal fee. In addition, we will be able to purchase software upgrades for some existing computers under their contract arrangement. The following workstations will be updated, or replaced: • Department: Public Works 1 new, 1 used $1,200 Planning 1 new $1,100 Finance 1 new $1,000 Recreation 1 used $100 Forestry 1 used $100 Administration 3 upgrades $1,353 Total $4,853 While this amount does not exceed the Administrator's expenditure limit, it is very close, so staff wanted to get Council approval on this expenditure. The funds for this expenditure will be taken from the 2003 CIP allocation under General Capital for Computer Replacement in the amount of $4,000, and $853 from the GIS line item in the General Capital portion of the budget. The increased functionality, and network services will also be provided to our GIS efforts, so this is a logical funding source for this expenditure. A brief discussion followed. Kuettel moved approval of the expenditure of $4,853 for the replacement and upgrade of computer equipment due to the conversion of the City's computer network. The motion was • unanimously approved. FALCON HEIGHTS CITY COUNCIL MINUTES -6- • December 10, 2003 REPORTS FROM COUNCIL MEMBERS: Council member Kuettel said that the 1-day immunization program offered at Twin City Co-ops earlier in the day was very popular. Normally they get about 70 people and this year they had over 600. She said there is an article in this week's issue of the Roseville Review about Rolf Leary, a resident of Falcon Heights, who participated in the World Trade Center Site Memorial Competition. His design, a 4" high hand blown glass tear drop on a wooden base, has a panel for personal memorials and can be lighted from below. The TearDrops can be purchased through the Hamline United Methodist Church and Blomberg Pharmacy. INFORMATION AND ANNOUNCEMENTS: Council member Lamb said the Twin Cities has experienced its first big snow of the snow of the season. He asked Falcon Heights residents to make an effort to shovel around fire hydrants and take a couple of extra minutes to shovel their sidewalks. Council member Talbot said that there has been talk about connecting with neighbors. Be neighborly. Be a friend. See if anyone on your block needs help. Maybe the kid down the block needs a job. He thanked the Lions Club for their $3,000 gift and suggested that residents buy a . Christmas tree from them. Council member Lindstrom said that he also wanted to thank the Lions Club. It's great to know that the money raised in the community goes back into the community. Mayor Gehrz reminded everyone that the Council meetings' schedule for January, 2004, will be different. The Council held two meetings this week, with tonight's meeting being the last one for December. Because of the gap between now and the regularly scheduled meeting on January 14, it was decided to hold the first January Council meeting on January 7 and the second meeting on January 28. She read a thank you note from Patrick Norris, a St. Paul resident employed by Hermes Floral, who participated in the second series of CERT trainings just completed. There were 21 graduates and she hopes they will be able to attend the first Council meeting in January. On Saturday, December 6, twelve people participated in a CPR training program offered by the Neighborhood Commission. She said that she hopes everyone has a safe and happy holiday season. Administrator Worthington reminded the cable audience that the City doesn't declare snow emergencies. When there is a snowfall of 2", vehicles are to be moved off the streets until they are plowed curb to curb. She asked people to shovel their sidewalks, particularly for the benefit of elderly and children. Even if you live in rental housing, please shovel your sidewalks. Council member Talbot said that people need to keep their vehicles off the streets if it continues • to snow. IS FALCON HEIGHTS CITY COUNCIL MINUTES • December 10, 2003 The regular City Council meeting was adjourned at 8:15 PM. Respectfully submitted, Mary Shea Kodluboy Deputy Clerk • • -7- /L • ITEM: Disbursements and Payroll SUBMITTED BY: Roland O.Olson, Finance Director CONSENT Hl 1/07/04 REVIEWED BY: Heather Worthington, City Administrator EXPLANATION: Summarv• 1. General Disbursements through December 31, 2003 in the Amount o£ 2. Payroll (12/15/03-12/30/03) in the Amount of: ATTACHMENTS: ~ General Disbursements • Payroll • ACTION REQUESTED: ~ Approval $198,816.33 $ 12,140.07 DATE 12/29/03 TIME 08:40 CITY OF FALCON NEIGH COUNCIL REPORT PAGE APPROVAL OF BILLS PERIOD ENDING: 12-31-03 ~K# VENDOR NAME DESCRIPTION DEPT. AMOUNT METROPOLITAN COUNCIL JAN/04 S.S. -------- 40,261.00 MINNESOTA GFOA 2004 MEMBERSHIP -------- 40.00 MN NCPERS LIFE INSURANCE JAN/04 INS -------- 48.00 42923 LEAGUE MN CITIES INS TRUS 2004 WORKMANS COMP INS -------- 9,476.00 NORTHWEST YOUTH & FAMILY 2004 COOPERATIVE SVC -- 7,358.00 ST ANTHONY VILLAGE JAN/04 POLICE SVCS -------- 38,585.84 *** TOTAL FOR DEPT 00 95,768.84 RCLLG RCLLG MTG:TALBOT&KUETTEL LEGISLAT 70.00 RAMSEY COUNTY CITYSHARE/TNT NOTICES LEGISLAT 306.17 LILLIE SUBURBAN NEWSPAPER TRUTH-N-TAXATION NOTICE LEGISLAT 66.96 LILLIE SUBURBAN NEWSPAPER STREET EASEMENT/ALLEY LEGISLAT 33.48 *** TOTAL FOR DEPT 11 476.61 AMERICAN OFFICE PRODUCTS NAME PLATE ADMINIST 10.65 AMERICAN OFFICE PRODUCTS PAPER/ENVELOPES/BINDERS ADMINIST 429.32 AMERICAN OFFICE PRODUCTS INKCARTRIDGES ADMINIST 121.67 42926 ICMA RETIREMENT TRUST 457 302632 WORTHINGTON ADMINIST 200.00 H.P. PIPEWORKS REFUND/OVER PYMT ON PRMT ADMINIST 30.50 METROPOLITAN AREA MANAGE- NOV MEETING EXP ADMINIST 18.00 METROPOLITAN AREA MANAGE- DEC HOLIDAY MEETING EXP ADMINIST 60.00 42917 PERA DEC 1-15 PERA WITHHOLDGS ADMINIST 1,357.20 42922 PERA DEC 16-31 PERA WITH ADMINIST 1,404.10 RCLLG RCLLG MTG:WORTHINGTON ADMINIST 35.00 2924 RAMSEY COUNTY DEC/03 INS PREMIUMS ADMINIST 4,252.45 2919 U.S. POSTMASTER STAMPS FOR MAILINGS ADMINIST 740.00 *** TOTAL FOR DEPT 12 8,658.89 NORTH SUBURBAN ACCESS CO. REIMB;MAUREEN CABLE WORK COMMUNIC 67.20 NORTH SUBURBAN ACCESS CO. REIMB;MAUREEN CABLE WORK COhIMUNIC 100.80 MCI WORLDCOM RES SVC LONG DIST CHRGS COMMUNIC 26.47 42918 U.S. POSTMASTER POSTAGE BULK MAILINGS COMMUNIC 1,500.00 QWEST TELE COMMUNIC 603.03 NEXTEL COMMUNICATIONS,INC WIRELESS SVC NOV22-DEC21 COMMUNIC 26.44 *** TOTAL FOR DEPT 16 2,323.94 CITY OF LITTLE CANADA 3RD & 4TH QTR BLDPERMITS PLANNING 10,561.20 42921 PAKOY, GENE 4TH QTR MECHANICALS PLANNING 1,799.63 *** TOTAL FOR DEPT 17 12,360.83 SBC PAGING PAGER RENTALS EMERGENC 33.46 XCEL ENERGY ELECT CIVIL DEFENSESIREN EMERGENC 6.28 NEXTEL COMMUNICATIONS,INC WIRELESS SVC NOV22-DEC21 EMERGENC 39.66 *** TOTAL FOR DEPT 21 79.40 RAMSEY COUNTY 2002 CITATION BOOKS POLICE 1,157.40 RAMSEY COUNTY 2003 CITATION BOOKS POLICE 1,196.80 *** TOTAL FOR DEPT 22 2,354.20 AMERIPRIDE LINEN&APPAREL LINEN CLEANING FIRE HALL FIRE FIG 52.77 AMERIPRIDE LINEN&APPAREL FIRE HALL LINEN CLEANING FIRE FIG 52.77 KEEPRS,INC./CY'S UNIFORMS NAME TAGS 3 FIRE FIGHTRS FIRE FIG 52.11 • EMERGENCY APPARATUS-MAINT 757-TRANS& GENERATOR SVC FIRE FIG 2,051.73 ~°°~ A~~ iS DATE 12/29/03 TIME 08:40 CITY OF FALCON NEIGH COUNCIL REPORT PAGE 2 APPROVAL OF BILLS PERIOD ENDING: 12-31-03 •CK# VENDOR NAME DESCRIPTION DEPT. AMOUNT -------- ------------------------- ------------------------ -------- ----- HINRICHS,RICH 4TH QTR CLEANING FIREHAL FIRE FIG 350.00 HINRICHS,RICH REIMB: LINEN FOR MATTRES FIRE FIG 47.88 KURHAJETZ, CLEM REIMB;PAPER/ADHESIVE POU FIRE FIG 19.47 KURHAJETZ, CLEM REIMB;TOOLS/WETDRY VAC FIRE FIG 207.48 MINNESOTA CONWAY FIRE EXTINGUISHER RECHRG FIRE FIG 43.50 OXYGEN SERVICE COMPANY TANK RENTALS FIRE FIG 45.00 OXYGEN SERVICE COMPANY TANK RENTALS FIRE FIG 59.98 SPARTAN PROMOTIONAL GROUP T-SHIRTS FOR FIRE FIGHTR FIRE FIG 304.20 SPARTAN PROMOTIONAL GROUP SWEATSHIRTS/SWEATPANTS FIRE FIG 1,348.92 VERIZON WIRELESS CELL PHONES FIRE TRKS FIRE FIG 20.89 QWEST TELE FIRE FIG 163.81 RAMSEY CTY FIRE CHIEFS 2 PHYSICAL AGILITY TESTS FIRE FIG 181.52 *** TOTAL FOR DEPT 24 5,002.03 BOARD OF WATER COMMISSNRS S.S. CITY HAL 11.69 BOARD OF WATER COMMISSNRS H2O CITY HAL 9.17 CINTAS CORPORATION #470 RUG SVC CITY HALL CITY HAL 32.48 CINTAS CORPORATION #470 RUG SVC CITY HALL CITY HAL 34.90 CINTAS CORPORATION #470 RUG SVC CITY HALL CITY HAL 34.90 CINTAS CORPORATION #470 RUG SVC/ CITY HALL CITY HAL 37.46 42925 HOME DEPOT CRC/GECF POINSETTAS IN LOBBY CITY HAL 219.80 GRAINGER, W. W., INC. RECIPOCATING SAW CITY HAL 279.75 GRAINGER, W. W., INC. TOWELS/TOILET TISSUE CITY HAL 326.66 MINNESOTA CONWAY FIRE EXTINGUISHER RECHRG CITY HAL 103.23 • XCEL ENERGY GAS CITY HAL 617.31 XCEL ENERGY ELECT CITY HAL 751.86 NEXTEL COMMUNICATIONS,INC WIRELESS SVC NOV22-DEC21 CITY HAL 66.11 *** TOTAL FOR DEPT 31 2,525.32 CITY OF ST PAUL CITYSHARE/2003 ST ELECT STREETS 416.27 ONE CALL CONCEPTS, INC LOCATES STREETS 3.10 XCEL ENERGY ELECT STREETS 36.30 XCEL ENERGY ELECT STREETS 85.78 XCEL ENERGY ELECT STREETS 7.44 XCEL ENERGY ELECT STREETS 10.83 XCEL ENERGY ELECT STREETS 72.52 XCEL ENERGY ELECT STREETS 1,787.99 XCEL ENERGY ELECT STREETS 7.38 XCEL ENERGY ELECT STREETS 65.79 XCEL ENERGY ELECT STREETS 7.38 SUPERAMERICA FUEL STREETS 45.60 *** TOTAL FOR DEPT 32 2,546.58 HOWARD GREEN COMPANYC. FH GENRAL SVCS ENGINEER 1,788.00 *** TOTAL FOR DEPT 33 1,788.00 BOARD OF WATER COMMISSNRS H2O PARK & R 19.48 BOARD OF WATER COMMISSNRS S.S. PARK & R 23.38 CITY OF ST PAUL FUEL FOR CITY TRKS PARK & R 122.88 CITY OF ST PAUL RIVER PRINT NOTICES PARK & R 64.73 HAR MAR LOCK & SVC CTR PARK BLDG KEYS PARK & R 18.96 42925 HOME DEPOT CRC/GECF HOCKEY BOARDS/SUPPLIES PARK & R 465.52 2926 ICMA RETIREMENT TRUST 457 302632 MAERTZ PARK & R 100.00 iQ DATE 12/29/03 TIME 08:40 CITY OF FALCON NEIGH COUNCIL REPORT PAGE 3 APPROVAL OF BILLS PERIOD ENDING: 12-31-03 ~CK# VENDOR NAME DESCRIPTION DEPT. AMOUNT -------- ------------------------- ------------------------ -------- 42926 ICMA RETIREMENT TRUST 457 302632 TRETSVEN PARK & R 100.00 NRG PROCESSING SOLUTIONS SOIL/SOD PARK & R 25.68 XCEL ENERGY ELECT GROVE PK PARK & R 20.89 XCEL ENERGY ELECT/GAS CURTIS PK PARK & R 81.20 XCEL ENERGY ELECT COMM PK PARK & R 548.54 XCEL ENERGY PROTECTIVE LITES PARK & R 21.98 ON SITE SANITATION 2 MONTHS PORTBLE TOILET PARK & R 186.95 ST. PAUL PIONEER PRESS REC COORD ADVERTISEMENT PARK & R 404.00 SUPERAMERICA FUEL PARK & R 25.03 QWEST TELE PARK & R 112.04 LILLIE SUBURBAN NEWSPAPER REC COORD ADVERTISEMENT PARK & R 200.00 *** TOTAL FOR DEPT 41 2,541.26 HOWARD GREEN COMPANYC. FOLWELL WATER MAIN WATER FU 294.18 *** TOTAL FOR DEPT 53 294.18 CAROLINA EMBLEM/EMBROIDRY CERT COMMUNITY PINS CCC/CERT 31.00 W.S. DARLEY & CO. FLARES FOR CERT OUTREACH CCC/CERT 94.38 KRISTIN GRANGAARD NEIGHBORHOOD COMM STAMPS CCC/CERT 37.00 KRISTIN GRANGAARD MISC SUPPLIES CCC/CERT 14.32 KRISTIN GRANGAARD REFRESHMENTS CCC/CERT 6.25 KRISTIN GRANGAARD REFRESHMENTS CCC/CERT 19.69 AALLWAYS ASSOCIATES INFORMATION MAGNETS CCC/CERT 916.09 *** TOTAL FOR DEPT 54 1,118.73 DISTRICT 10 RECYLING/COMM CLEANUP SOLID WA 1,871.43 *** TOTAL FOR DEPT 56 1,871.43 FIRE EQUIPMENT SPECIALTIE 10 SCSA UNITS FIRE & R 32,950.00 42916 HOM FURNITURE NEW MATTRESS SET FIRE & R 539.98 HOM FURNITURE SALES TAX/NEW MATTRESS FIRE & R 37.80 *** TOTAL FOR DEPT 64 33,527.78 KESTREL DESIGN GRP INC TROLLEY PATH ASSESSMENT PUBLIC W 20.00 *** TOTAL FOR DEPT 65 20.00 XCEL ENERGY ELECT SANITARY 22.58 QWEST TELE SANITARY 57.76 *** TOTAL FOR DEPT 75 80.34 HOWARD GREEN COMPANYC. CURTIS FIELD ENG STORM DR 5,108.12 *** TOTAL FOR DEPT 76 5,108.12 42920 COMMERCIAL PARTNERS INC CLOSING -SENIOR APT COMM. DE 20,000.00 *** TOTAL FOR DEPT 79 20,000.00 HOWARD GREEN COMPANYC. SHELDON ENG HOYT AVE 369.85 *** TOTAL FOR DEPT 85 369.85 *** TOTAL FOR BANK O1 198,816.33 • *** GRAND TOTAL *** 198,816.33 o!~ • • PERIOD END DATE 12/30/03 **FILE NDT UPDATED** SYSTEM DATE 12/26/03 C E E C K R E G I S T E R CHECK CHECK. EMPLOYEE NAME TYPE DATE NtII+IDER PAGE .1 CBECK CHECK Ntil~ER AMOUNT CDM 12 30 03 6 Si76AN GEFIIiZ 33291 303.34 COM 12 3D 03 12 LAURA A. RDETTEL 33292 277.05 COM 12 3D 03 13 PETER C. LINDSTROM 33293 277.D5 COM 12 3D 03 14 RICHARD P TALBOT JR 33294 177.05 . COM 12 30 03 15 ROBERT E LAMB 33295 277.05 COM I2 3D 03 34 Q•a'Mx+*+'*' RVRBFiJETZ 33296 287.20 COM 12 30 D3 42 MICHAEL D CLARKIN 33297 1D8.52 COM 12 30 03 66 ALFRED HERNANDEZ 33298 55.41 CDM 12 3D 03 74 MARK J ALLEN 33299 138.52 COM 12 3D 03 BS DANIEL B JOHN80N-POWER6 333D0 54.64 CDM 12 3D 03 9l RICHARD H HINRICHB 33301 3B.fi4 COM l2 3D 03 1003 HEATHER WORTHINGTON 33304 1350.21 COM 12 3D 03 l0D7 PATRICIA PffiLLIPS 33305 122.63 CDM 12 3D 03 1D13 WILLIAM MAERTZ 33306 1557,59 COM 12 30 03 1030 MARY A. KODLVBDY 33307 1294.76 COM 1z 3D 03 1033 DAVE TRETSVEN 333DB 1119.82 COM 12 3D D3 1038 DEHOuav K JONES 33309 1147,19 COM 12 3D 03 1D41 DANIEL 8 JOHNSON-POWERS 3331D 25.85 COM 12 3D 03 1103 DIANE METER 33311 34.38 CDM 12 3D 03 1136 ROLAND O OL60N 33312 13DD.OD COM I2 3D 03 1142 ANTHONY ANDERBDN 33313 125.60 COM 12 30 03 1143 CDLIN 8 raT.T•awn*t 33314 690.39 CDM 12 3D 03 1169 JAY PAUL KURTIB. 33315 73.88 CDM 12 3D 03 1173 ELIZABETH M POSTIGO 33316 17.42 COM 12 3D D3 1176 MICHAEL P ECRHERG 33317 140.38 COM 12 30 03 1178 PETER M FISCHER 33318 101.08 COM 12 3D D3 1161 LEAB A BICKER 33319 103.89 'COM 12 30 03 2006 DAMON J. WICKS&M 33320 140,38 CDM 12 30 03 2035 ROSS A. BERNANDEZ 33321 72.03 COM 12 3D 03 2D3T TAYLOR COX 33322 12.93 CDM 12 30 03 2D45 ANDREW P. SCHIPPEL 33323 51.72 COM 12 30 03 2D46. nrmaFa L. ROTFII+iAN 33324 55.41 COM 12 30 03 2D47 KARL GRUHER 33325 101.08 COM 12 30 D3 •2048 TOM HEALKE 33326 51.72 CDM 12 3D 03 2049 COI~TOR CDX 33327 12.93 COM 12 30 03 1039 CRAIG A 6TIER 33328 442.33 COMPUTER CHECKB 1214D,07 MANUAL CHECKS NOTICE6 OF DEP06IT ~ , ****TDTALB**** 1214D.07 °~Ca • • CONSENT H2 1/07/04 ITEM: Licenses SUBMITTED BY: Mary Shea Kodluboy, Deputy Clerk REVIEWED BY: Heather Worthington, City Administrator EXPLANATION: Summary: Attached are lists of the businesses that the City requires be licensed by the City. These lists reflect the businesses that have, to date, submitted licensing applications and fees for 2004. ATTACHMENTS: • Businesses located in Falcon Heights • General contractors • Home occupations • Massage therapy businesses • Mechanical contractors • Refuse/recycling haulers • Tree trimming/treating/removal services ACTION REQUESTED: • Approval ~1 2004 FALCON HEIGHTS LICENSED BUSINESSES American Family Insurance 1551 West Larpenteur Falcon Heights, MN 55113 Thomas M. Diaz & Thomas R. Larson, Owners Insurance sales & service 651-209-8900 Buck's Unpainted Furniture 1639 West Larpenteur Falcon Heights, MN 55113 Randall Buck, Owner Blomberg Pharmacy 1583 North Hamline Avenue Falcon Heights, MN 55108 Julie Johnson and Norma Nisle, Owners Chin's Kitchen 1533 West Larpenteur Avenue Falcon Heights, MN 55113 Mei Mei Ho, Owner Ciatti's, Inc. • 1611 West Larpenteur Falcon Heights, MN 55113 Kevin P. Scheif, Owner Clips & Styles 1555 West Larpenteur Falcon Heights, MN 55113 Lawrence Herber, Owner Coffee Grounds 1579 North Hamline Falcon Heights, MN 55113 David Lawrence, Owner Dino's Gyros 1670 North Snelling Avenue Falcon Heights, MN 55113 Constantine Adamidis, Owner Hair Designs Unlimited 1703 North Snelling Avenue Falcon Heights, MN 55113 Chant Ting Insixiengmay, Owner • Furniture 651-646-9647 Pharmacy/cards, gifts, health 651-646-9645 & beauty aids Chinese restaurant & take-out 651-646-0748 Restaurant & bar 651-644-2808 Beauty salon 651-645-0141 Coffee house 651-644-9959 Greek restaurant -fast food 651-645-8800 Beauty salon & barber shop 651-644-3211 as FALCON HEIGHTS LICENSED BUSINESSES - 2004 Hamline Hoyt Service, Inc. 1565 North Hamline Avenue Falcon Heights, MN 55113 Steven Horazdovsky, Owner Hermes Floral Company, Inc. 1790 West Larpenteur Falcon Heights, MN 55113 Donald Hermes, Owner J's Liquors 1557 West Larpenteur Falcon Heights, MN 55113 James Ward, Owner Edward Jones 1537 West Larpenteur Avenue Falcon Heights, MN 55113 Jon Snodgrass, Manager John A. Knutson & Co., PLLP 1781 North Prior • Falcon Heights, MN 55113 Robert N. Davis, Owner Sleep Concepts, Inc. 1705 North Snelling Avenue Falcon Heights, MN 55113 John Thorud, Owner Source Comics & Games 1601 West Larpenteur Falcon Heights, MN 55113 Bob Brynildson, Owner Automotive repair Florist -grows & sells floral products & supplies Liquor store Investment company Certified public accounting Bedroom furnishings -2- 651-645-5434 651-646-6344 651-644-6675 651-603-6945 651-641-1099 651-645-3973 Sale of hobbies, games, cards, 651-645-0386 comics TIES, Inc.- Technological and Information Education Technology training & support 651-999-6000 Services services to school districts 1667 North Snelling Avenue & local governments Falcon Heights, MN 55113 Co-Directors: Lee Whitcraft/Betty Schweizer Twin City Co-ops Federal Credit Union 651-215-3450 2025 West Larpenteur Avenue Falcon Heights, MN 55113 Cindy Hartley, Director of Facilities • (12/22/03) ~3 • • • 2004 GENERAL CONTRACTORS LICENSED BY THE CITY OF FALCON HEIGHTS Asphalt Driveway Company 651-494-9416 1211 East Highway 36 Maplewood, Minnesota 55109 Scott Smith, Owner E. L. Bulach Construction Company, Inc. 651-455-3384 1870 E. 50~' Street -Suite 14 Inver Grove Heights, Minnesota 55077 Steve Bulach, Owner Kraus-Anderson Construction Company 612-332-7281 525 South 8~' Street Minneapolis, Minnesota 55404 (12/19/03) ~4 • 2004 HOME OCCUPATIONS LICENSED BY THE CITY OF FALCON HEIGHTS Attention Technology 2129 Larpenteur Ave West Falcon Heights, Minnesota 55113 Carol Kindschi, Owner Thomas D. Betz, private counseling 1865 Fairview Avenue North Falcon Heights, Minnesota 55113 Thomas Betz, owner Independent Practice of Gloria Burgess 1488 West Idaho Avenue Falcon Heights, Minnesota 55108 Gloria Burgess, Owner Rose Bed & Breakfast 2129 Larpenteur Avenue West Falcon Heights, Minnesota 55113 Lawrence Greenberg, Owner Virtual Junction Business Solutions 1854 North Arona Street Falcon Heights, Minnesota 55113 Vicki Besemer, Owner 651-642-9104 651-644-6699 651-222-5687 651-642-9417 651-917-2120 (01 /02/04) 2004 MASSAGE THERAPY BUSINESSES LICENSED IN THE CITY OF FALCON HEIGHTS Hair Designs Unlimited 651-644-3211 1703 Snelling Avenue Falcon Heights, Minnesota 55113 C. Ting Insixiengmay, Owner Ferencz Mihaly Vincze-Turcean, Massage Therapist • (12/22/03) • ~L 2004 MECHANICAL CONTRACTORS LICENSED BY THE CITY OF FALCON HEIGHTS Air Mechanical Inc. 763-434-7747 16411 Aberdeen St Ham Lake MN 55304 Boehm Heating Co 651-644-1410 1598 Selby Ave St. Paul, MN 55104 CenterPoint Energy-Minnegasco 763-757-6202 13562 Central Ave NE Anoka, MN 55304 Centraire Htg. & AC., Inc. 952-941-1044 7402 Washington Ave S Eden Prairie, MN 55344 Fireside Hearth & Home 651-633-2561 2700 North Fairview • Roseville, MN 55113 Home Energy Center .763-476-1990 15200 25~' Ave N # 128 Plymouth, MN 55447 Horwitz, Inc. 763-425-7566 8825 Xylon Ave N Brooklyn Park, MN 55445 McQuillan Bros. Plumbing & Heating Co 651-292-0124 688 Hague Ave St. Paul, MN 55104 Norbloom Plumbing 612-827-4033 2905 Garfield Ave So Minneapolis MN 55408 St. Paul Plumbing & Heating 651-228-9200 640 Grand Ave St. Paul, MN 55105 • ~1 MECHANICAL CONTRACTORS LICENSED • BY THE CITY OF FALCON HEIGHTS - 2004 -2- Snelling Co. 651-646-7381 1404 Concordia St. Paul, MN 55104 Wenzel Heating & A/C/Forced Air, Inc. 651-894-9898 4131 Old Sibley Memorial Hwy-#200 Eagan, MN 55122 • • (12/22/03) • I• • 2004 REFUSE/RECYCLING HAULERS LICENSED IN FALCON HEIGHTS R=Residential C=Commercial BFI Waste Services 651-455-8634 4325E 66th St Inver Grove Heights, MN 55076 (R & C) (R & C) (R & C) Keith Krupenny Disposal Service 651-457-3680 (rolloff dumpsters only) E-Z Recycling 651-644-6577 875 Prior Ave St Paul, MN 55104 Gene's Disposal Service 651-426-1224 5923 Oneka Lake Blvd N Hugo, MN 55038 1214 Hall Ave West St Paul, MN 55118 Onyx Waste Services Midwest, Inc. 651-459-3029 dba Superior Services St Paul 1375 7~' Ave Newport, MN 55055 Walter's Recycling & Refuse . 763-780-8464 2830 101St Ave Circle Pines, MN 55014 Waste Management of MN Inc 952-890-1100 10050 Naples St NE Blaine, MN 55449 (R & C) (R only) (R & C) (12/22/03) a9 • 2004 TREE TRIMMING/'I'REATING/REMOVAL SERVICES LICENSED BY THE CITY OF FALCON HEIGHTS Date Licensed • • Hugo's Tree Care, Inc. 14728 Irish Ave N Hugo, MN 55038 Sydney Harrison, Owner Northeast Tree, Inc. 2527 Jackson St NE. Minneapolis, MN 55418-3625 George and Lynn Welles, Owners Precision Landscape & Tree 50 South Owasso Blvd E Little Canada, MN 55117 Lawrence Groholski, Owner 651-429-4705 12/03 612-910-8280 12/03 651-484-2726 12/03 (12/ 19/03 ) 3v CONSENT H3 1/07/04 ITEM: Review and adopt Council standing rules SUBMITTED BY: Heather Worthington, City Administrator EXPLANATION: Summary: Each year at the first Council meeting, the City Council reviews the operating procedures it intends to use, and decides if changes are warranted. Staff has no recommendations for changes in the standing rules at this time. ATTACHMENT: • City Council Standing Rules, last amended 1/11/95 ACTION REQUESTED: • Adopt standing rules as amended 1/11/95 for 2004 31 Amended 1/11/95 • B. CITY COUNCIL STANDING RULES INTRODUCTION In the belief that the best decisions are made by the best informed decision makers and that the public decision process is best served when the public has every opportunity to present views, the following rules are established to govern regular and special council meetings as well as formal public hearings. There are several goals behind these rules. 1. In general, free and open discussion by-all interested parties should be an essential part of the decision-making process. 2. The council process should have as little procedural overhead as possible. 3. Time is better spent on substantial matters rather than proforma matters. MEMBERSHIP • The formal council membership consists of the four councilmembers and the mayor. All five have one vote each and all five can introduce motions. For purposes of leading the meeting, the mayor, or in the absence of the mayor the acting mayor, will be considered the chairperson. RULES Agenda 1. To be considered, an item must be on the agenda and the agenda must be distributed to all the council members and any other persons having responsibility for an item at least three working days prior to the meeting. An agenda can be modified with addenda by a majority vote but this should be used only for minor items or items with extreme time constraints. 2. An item can be moved from the consent agenda to the action agenda at the request of any council member. 3. Since there will be audience and cable TV viewers not familiar with each item, the chair will give a brief explanation of each item as it is addressed. C7 Page 2 • 4. The order of items on the agenda need not be followed absolutely. The chair may adjust the order in the interest of: a. Filling in time before a scheduled item, i.e. a public hearing. b. Grouping several items to best make use of consultant time. c. Accommodating individuals who have attended the meeting specifically to provide .input on an item. Process - Regular and Special Council Meetings 1. For these proceedings the council will use the 'open discussion' procedure. That is, discussion is open to any member before or after a motion is made. This privilege is also extended to the city administrator, city clerk and any of the consultants who may have an interest in or can contribute to the item at hand. 2. At the discretion of the chair, this privilege is also extended to those members of the audience who wish to provide input. The chair may also rule out of order any input felt to be redundant, superfluous or irrelevant. 3. The chair can make liberal use of the "unanimous consent" procedure. That is, items that in the judgment of the chair are likely to be unanimously approved, can be introduced for approval with the statement "If there are no objections, stands approved (or denied) . " If any council member has an objection, the item reverts to the standard motion procedure. This "unanimous consent" procedure cannot be used for items requiring formal votes, i.e. resolutions or for approval of the consent agenda. 4. The standard motion procedure is changed to not require a second. A motion need only be made to be considered. This also applies to amendments. 5. To eliminate confusion, only one amendment will be considered at a time and that amendment must be germane to the motion. An amendment cannot itself be amended. If a change to an amendment is deemed appropriate, the amendment should be withdrawn and reintroduced accordingly. &. The general mode of voting will be by acclamation but with enough clarity that the individual votes can be recorded in the minutes. If in doubt the city clerk can request a clarification. 33 Page 3 C7 7. The meeting will be video taped and the video tape will be retained for 3 months following approval of the minutes for that meeting. The standard retention can be extended if in the judgment of the mayor, city administrator, city clerk or any councilmember such action is warranted. 8. If the council action is the result of a resident request and that request is denied in whole or in part, reasons of fact supporting the denial will be made part of the public record. 9. No council meeting will extend beyond 10:30 P.M. except by unanimous vote. This rule is not subject to the modification or suspension provisions of the Standing Rules. Process - Public Hearings Since a public hearing is a more formal procedure and often requires certain procedures and actions to be legal, the meeting rules are changed accordingly. 1. The primary aim of a public hearing is to take input from the public. To accomplish this in the most effective manner the chair • will introduce the hearing with an explanation of the issues. This explanation will be given by the chair or a person designated by the chair. The use of explanatory visual aids is encouraged. 2. Following the explanation, input from the public will be taken. Prior to accepting input, though, the chair will state the areas where input will be appropriate, the maximum time to be allotted to any individual presenter and any other procedural rules deemed appropriate to guarantee that all concerned parties have a fair and adequate opportunity to be heard. 3. All individuals wishing to speak must fill out and submit an identification form and speak into a recording microphone. Individuals not wishing to speak in public may provide a written statement. The council may take up to 15 minutes to review written statements presented at the meeting. If the council decides to not act on the issue at the public hearing meeting, it may by majority vote extend the time where written input will be taken to a day no later than 1 week before the next meeting where a deciding vote is planned. 4. All speakers are expected to be business-like, to-the-point and courteous. Anyone not abiding by these rules will be considered out of order. • 34 Page 4 • 5. The council will refrain from initiating a discussion during the public input phase of the hearing except to clarify points brought up. These 'point of information' requests should be held to a minimum. 6. Once the public testimony phase is complete the chair will announce the public hearing to be closed and the council will revert back to its open discussion mode of operation. From this point on public input will only be appropriate when solicited by the council. 7. It shall be the intent of the council to vote on the issue at the same meeting as the public hearing and as close in time to the public hearing as possible. Should it be necessary to defer voting until a later date, that procedure will be clearly explained to the audience. 8. No public hearing will extend beyond 10 P.M. • 9. If the motion contains conditions, as may occur in conditional use or variance requests, those conditions will be conveyed in writing to the requestor. 10. If the public hearing is the result of a resident request and that request is denied in whole or in part, reasons of fact supporting the denial will be made part of the public record. 11. If the public hearing is to set an assessment rate, the assessment formula(s) under discussion cannot be altered. This implies that the council has fully discussed any formulas prior to the hearing and that the appropriate legal, fiscal and engineering consultants have passed on formula(s) viability, legality and feasibility. 12. If the hearing is to set an assessment, it cannot be scheduled later than the first meeting in September. This is to allow time to correct any errors prior to the time needed to certify the rolls to the county. • 3S Page 5 ADOPTION/MODIFICATION/SUSPENSION These rules with the exception of the mandatory 10:30 P.M. adjournment can be adopted, modified or suspended in whole or in part by a 3/4 vote of the council. If suspended, they are automatically reinstated at the next meeting. Should they be suspended or a situation occurs that is not covered by the standing rules, Sikkink's Seven Motion System (attached) will apply. ANNUAL REVIEW These rules will be reviewed annually at the first meeting in February. INTERPRETATION The chair will interpret the rules. However, the chair's interpretation can be appealed by any council member and can be overruled by a majority vote. • • 36 SIKKINK'S SE1/i3V M~TI~N SYSTEM • ~ General Rules for a Simatified System of Parliamemarv Procedure 1. The purpose of this decision-making system is to allow efficient decision making that represents a majority position. Any motion, request, discussion or proposal which seems to have as its purpose unreasonable delay, manipulation, or the goal of serving individual ends rather than group ends can be ruled out of order by the chair. Such a ruling by the chair will 6e subject to the motion called appeal. 2. Free and open discussions are valued in this decision-making system. For that reason most motions are discussable and the motion to restrict discussion requires a 2!3 vote in order to pass. In recognizing persons for discussion, the .chair first recognizes the person who made the motion, next recognizes other persons and always recognizes a person who has not spoken, over a person who has already participated in the discussion. As far as possible the chair should try to alternately recognize persons representing different viewpoints. 3. In examining the chart ori-the fi~ilowing page,-you will Hate that five of the seven motions are amendable.: However, only one amendment at a time may be considered. As soon as that amendment is passed or defeated, another amendment may be proposed. 4. The number in front of the motion fisted indicates the rank of each motion. Thus, #1 -General motions are lowest in rank and #7 -Restrict Debate motions are highest in rank. Two rules apply: (1 } You usually cannot consider two motions of the same rank at the same time, and (2} If a motion of one rank is being considered, a motion of the same rank or lower rank is usually out of order but a motion of higher rank is in order. While these rules generally apply, the chair may allow some flexibility in certain circumstances. These situations almost always occur with motions #5, 6, and 7. For example, if #7 - °Restrict Discussion" is being discussed and a member wants a secret ballot vote on the matter, Request. while lower in rank, could be used to accomplish this purpose. The chair is allowed to make ai! decisions on exceptions but al[ such decisions are subject to appeai_ 31 Apa(ies Needs Can be Vvte Wfiat RecoQ_ Needs Dis- Amend- Re- . To _ Motion Purpose Situatjons ninon Second cussed able ua fired • To stop or All dis- 1. Restrict limit cussable Yes Yes Yes Yes 2/3 Discussion discussion motions 2. Appeal To let the To decision Majority group vote of the chair- Nc y~ y~ ~ an a chair's person _ decision Chair de= 3. Request Not a motion cider sub- but away to Any appro- jeci to question. priate No No Nc HO appeal chailenge,or situation seek help _ 4. Postpone To delay action on General any general motions Yes Yes y~ y~ Majority motion to a future time 5. Refer To have a general General motion motions ~ Yes Yes Yes Yes Malonty studied by a committee 6. Meeting To recess Terming- during a Made to tion meeting or recess ar Yes y~ Yes Yes Majority to end a adjaum . meeting 7. General To bring up business For doing for majority business Yes ~ Yes Yes Yes Majority decisions by the group ~• 3Y CONSENT H4 • 1/07/04 ITEM: Resolution designating official depositories for 2004 SUBMITTED BY: Roland Olson, Finance Director REVIEWED BY: Heather Worthington, City Administrator EXPLANATION/SUMMARY: US Bank System, LMC 4M Fund (checking account) US Bank National Association RBC Dain Rauscher Citigroup Global Mkts, Inc. (formerly Solomon Smith Barney) Edward D. Jones Wachovia Securities (formerly Prudential) Minnesota Municipal Money Market Fund (4m Fund) and (4M Plus Fund) MBIA Municipal Investors Service Corporation US Bancorp Piper Jaffrey Wells Fargo Brokerage Services, LLC • All investments are made according to State law and the City's Investment Policy. The Administrator of Finance Director are authorized to deposit general and other funds therein and handle investments and transfers of funds for the City of Falcon Heights. Collateral is furnished by the financial institutions as required by law. ATTACHMENTS: • Resolution designating the City's official depositories for 2004 • City of Falcon Height's Investment Policy ACTION REQUESTED: • Adoption of Resolution 04-01 approving the official depositories for 2004 • 3Q No. 2004-01 CITY OF FALCON HEIGHTS COUNCIL RESOLUTION Date: January 7, 2004 A RESOLUTION DESIGNATING THE OFFICIAL DEPOSITORIES FOR THE CITY OF FALCON HEIGHTS BE IT HEREBY RESOLVED, by the city council of the City of Falcon Heights that the following financial institutions be designated as depositories for funds of the City of Falcon Heights: US Bank System, LMC 4M Fund (checking account) US Bank National Association RBC Dain Rauscher Citigroup Global Mkts, Ina (formerly Solomon Smith Barney) Edward D. Jones Wachovia Securities (formerly Prudential) Minnesota Municipal Money Market Fund (4M Fund) and (4M Plus Fund) MBIA Municipal Investors Service Corporation US Bancorp Piper Jaffrey Wells Fargo Brokerage Services, LLC BE IT FURTHER RESOLVED that the Administrator or Finance Director is authorized to deposit general and other funds therein and handle investments and transfers of funds for the City of Falcon Heights. Collateral shall be furnished by the financial institutions as required by law. ------------------------------------------------------------------- Moved by: Approved by: Susan L. Gehrz, Mayor January 7, 2004 GEHRZ In Favor Attested by: KUETTEL Heather M. Worthington LAMB Against City Administrator LINDSTROM January 7, 2004 TALBOT 40 • FALCON HEIGHTS INVESTMENT POLICIES A. Daily Cash Balance Cash Forecasting and Pooling of Investments The City policy requires the pooling of all available case and investing the total cash at the highest available rate. Efficient investment of funds starts with knowing what your cash is on a daily basis, and what your future cash needs will be, particularly for major bill paying times such as bond payment dates. This includes making weekly deposits of cash receipts and maintaining small balances in checking and savings accounts. B. Safety of Principal Safety of principal is the first priority in investing City funds. The City is only authorized to invest in those investments complying with the requirements of Minn. Stat. § § 118A.04, 118A.05 and 118A.06 C. Authorized Investments Examples of authorized investments are as follows: 1. Direct U.S. Government obligations a. Treasury Bills . b. U.S. Treasury Certificates c. Treasury Notes d. Treasury Bonds e. Treasury Strip Coupon f. Treasury Receipt 2. Shares in investment companies whose only investments are U.S. Government and Agency issues. 3. Obligations of the State of Minnesota. 4. Bankers acceptances of United States banks eligible for purchase by the Federal Reserve System. 5. Commercial Paper -rated A-1, P-1 and F-1 (when available) for maturities of 270 days or less. 6. Irrevocable Letter of Credit (LOC). 7. Interest bearing deposits - (Checking Accounts, CD's, money market savings, ordinary savings) must be collateralized at a minimum of 110% of face value. • 4T D. Collateralization All deposits in any bank, trust company, or thrift institution over $100,000 must be collateralized. Collateralizationmgy be in the form of securities, or notes on first mortgages as outlined below. Any collateral pledged to the City's account shall be accompanied by an assignment thereof to the municipality from the depository. Collateral shall be deposited with the treasurer, and shall not be deposited in the bank, trust company, or thrift institution holding it. Securities pledged as Collateral The total amount of collateral computed at market value must be in an amount of at least 110% of all deposits over $100,000. Securities pledged may be obligations which are legally authorized investment for debt service funds under Minnesota Statutes Annotated 475.66, Subdivision 3, and qualified state and local government obligations acceptable to the Finance Director or City Administrator. • E. Scheduled Maturity The City schedules a payroll twice a month and pays other claims every other week in conjunction with Council meetings. The City makes large bond principal and/or interest payments on February 1, March 1, June 1, August 1, and September 1 of each year. The other large claim is the Metropolitan Waste Control Commission bill which is due the first of each month. The City schedules its investments to mature with these dates when possible. F. LiquiditX The City invests approximately 10-25 percent of its available funds in liquid instruments. These may be instruments such as Commercial Paper or collateralized Insured Savings Accounts (Money Market Accounts). The City will maintain small balances in checking and savings accounts. These balances will be to meet normal monthly payments, and payroll. Therefore, the purpose of having part of the City's investment portfolio in liquid funds is to insure that funds could be available should unexpected large bills be presented for payments. C] 4~ G. Local Investments One hundred (100 ercent of P the total investment portfolio shall be invested in certificates of deposit or other instruments through banks or other financial institutions. These investments may be scheduled maturities, or they may be part of the investment strategy of securing maximum interest rates for part of the investment portfolio. H. Maximum Interest Earnin s After the liquidity needs, and scheduled maturity needs are satisfied, the balance of these funds available for investment are placed with institutions that offer the highest rate of return consistent with the maturities as determined by the City. Quotations are taken by telephone for all investments, whether they are short or long term. These investments must be in authorized investments. 3 APPENDIX 1. Specific Types of Investments Instruments issued by the United States Government may be direct Treasury Obligations, or they may be obligations of a federal agency or federal instrumentality. All government issues are now in book entry form and are not registered to the owner. Principal and interest is credited directly to the bank and the owner of record. Some Examples are as follows: United States Government Investments Direct United States Treasury Obligations: Treasury Bills Treasury Bonds Treasury Notes Certificates of Indebtedness Zero Coupon Treasuries Federal Agencies and Instrumentalities: Federal Home Loan Banks Federal National Mortgage Association Federal Farm Credit System Federal Land Banks (No New Issues) Federal Intermediate Credit Bank (No New Issues) Banks for Cooperatives (No New Issues) Investments purchased at a discount & maturing at par FNMA Discount Notes Federal Farm Credit Bank, Discount Notes Federal Home Loan Bank, Discount Notes Commercial Paper Banker's Acceptance Treasury Bills Treasury Strip Coupon ($1,000 denomination) Treasury Receipt (Larger Denomination) Investments issued at nar with interest coupons Treasury Bonds Treasury Notes Commercial Notes (GMAC) FNMA Debenture or Bond Federal Home Loan Bank Bond Federal Farm Credit System Wide Bonds Further information on various types of United States Government Investments are as follows: TREASURY ISSUES United States Treasury Certificates -These are coupon issues. They are issued at par and usually carry two coupons. They mature no more than one year after issue. Treasury Bills -Offered each week by the Treasury Department with 90 to 182 day maturities. Monthly Treasury Bills are offered with a maturing of one year. Widely traded and offered at a discount and maturing at par. May be purchased through dealer banks and bond brokers and sold to them. Bills may be purchased directly from the Federal Reserve Bank of Minneapolis, in which case there is no service charge. Treasury Notes -Issued with maturities of from two to ten years, minimum denomination is $5,000. They carry coupons redeemable every six months. Treasury Bonds -All new issues issued for periods often years or longer in denomination of $1,000 to $1,000.000. They carry semi-annual interest coupons. Some treasury bonds are . callable by the government before maturity, and others have fixed maturities. FEDERAL AGENCY ISSUES Federal Agency Issues are not guaranteed by the United States Government and therefore produce somewhat higher yields than Treasuries. The previous experience of the agency is important when investing in agencies. Federal Home Loan Bank Notes -Issued by the Federal Home Loan Bank system, which are instrumentalities of the United States and are under the supervision of the Home Loan Bank Board. Federal National Mort~aee Association Debentures - (FNMAI - Payment of certificates are guaranteed by FNMA. Three types of securities are available, debentures, short-term notes, and participation certificates. Federal Land Bank Notes and Bonds -Twelve Federal Land Banks were organized under the Federal Farm Loan Act to provide long term farm mortgages at reasonable cost. The banks operated under the general supervision of the Farm Credit Administration and the Secretary of Agriculture. (No new issues being issued.) 5 4S Federal Intermediate Credit Bank Debentures -The Federal Intermediate Credit Bank debentures ranged in maturity from 1-9 months, and were issued every month. They usually were not as marketable as Treasury Bills, but usually carried a little higher interest rate. Twelve Federal Intermediate Credit Banks were created under the Federal Farm Loan Act of 1923 and provide funds for seasonal production processing, etc. The banks aze under the supervision of the Farm Credit Association, which is under the direction of the Secretary of Agriculture (No new issues being issued.) Banks for Cooperatives -Debentures are issued for a maximum six month period. There aze fewer of these types of issues than the other agency issues mentioned above. (No new issues being issued.) Federal Farm Credit System Wide Bonds -These new investments replace Federal Land Bank Notes and Bonds, Federal Intermediate Credit Bank debentures, and Banks for Cooperatives. Because of market conditions, the majority are used for short term periods, but may go up to three years. OTHER INVESTMENTS Shares in Investment Companies Whose Only Investments aze United States Government and Agency Issues -Company must be registered under the Securities Act of 1933, whose shares are registered under the Securities Act of 1940 (Mutual Funds) if the only investments of the Company are in obligations of the United States, or fully guaranteed by the United States or in obligations of Instrumentalities of the United States, such as those listed in Minnesota Statues 475.66. Funds Which the State Auditors Office has Indicated Meet State Investment Criteria - Franklin Custodian Funds, Inc., United States Government Security Series Lord Abbett, United States Government Securities Fund (Lord Abbett), State Bond United States Government Securities,Inc. Capital Alliance Bond Fund United States Government Portfolio, Fidelity Institutional Cash United States Government Portfolio. There may be additional funds which meet the State Auditor's criteria, which I do not have information on. If in doubt, contact the State Auditor's Office. Obligations of the State of Minnesota or Minnesota Municiyalities -Obligations of the State of other Municipalities are rarely used, as the yield is usually less than on United States Government obligations, because of tax considerations. A City may invest idle funds in its own obligations, particularly in temporary improvement bonds authorized under the local improvement code Minnesota Statutes 429.091. These obligations must mature within three years. • 46 Bankers Acceptances -Cities can invest in bankers acceptances of United States Banks eligible for purchase by the Federal Reserve System. These instruments typically aze created from a letter of credit issued in a foreign trade transaction. Maturities on Bankers Acceptances run from 30 to 180 days, which the 90-day acceptance the standard. Historically, Bankers Acceptances have been a very safe investment vehicle. Commercial Paper -Cities are authorized to invest in Commercial Paper issued by United States Corporations or their Canadian Subsidiary, if it is of the highest quality (Al.P 1 or better), and matures in 270 days or less. Commercial Paper is a short term unsecured promissory note. Commercial Paper is issued at a discount, and matures at paz. One of the most important factors in determining whether an issuer's commercial paper is worthy, is the nature of the underlying bank line of credit. These credit lines aze of four kinds: 1. Standard Line Agreements (when activated, converts to a standazd bank note at a specific date.) 2. Swing Line (issuer may borrow one day and repay the next.) 3. Revolving Line (long term flexible line of credit virtually guaranteeing a bank loan at any time upon request by the issuer.) 4. Irrevocable Letter of Credit (a Financial institution guarantees unequivocally that funds will be available to redeem the commercial paper upon maturity. Tlus is the most secure of the four.) Interest Bearing Deposits (CDs,I etc. May be interest beazing checking accounts, money market savings account, CDs, and ordinary savings account. Bank or Savings & Loan must be neamed as a depository by the City, and all deposits over the $100,000 Federal insurance must be collateralized. (See separate section on collateralization.) Lea_gLuP of Cities -Money Market Fund - An alternative is to use the League of Cities program for the investment of your City's idle funds. An advantage is that you have the benefit of professional management. The League program offers a money mazket fund as well as the availability of Certificates of Deposit. For more information call 1-800-333-6000, ext. 6423, or (612) 342-6423. Repurchase Agreements -Short term transactions involving the simultaneous sale of securities by the seller to the investor and the agreement by the seller to repurchase at a later date. Overnight Repo -refers to those transactions whereby the repurchase occurs the next day. If properly handled, Repos offer an investment alternative. • ' 4'1 Government National Mortg~a~e Association G.N.M.A. - a government guaranteed security. A certificate represents a share in a pool of FHA or VA mortgages. A problem associated with GNMAs, is that they are along-term investment, and therefore subject to market fluctuations. 2. Support for Persons Doing. the Investing Financial institutions can exert tremendous pressure on the persons in smaller communities to place all of the City's funds with them. However, even a small fraction of one percent difference in interest earnings can make a substantial difference in the amount of interest earnings the City realizes. It is, therefore, important that the person doing the investing be given the support from City Attorney, City Administrator, and Council, so that they can do the investment job in the most professional way. This means placing investment funds with the institution that gives the City the best return on its investment. • 8 CONSENT H5 • 1/07/04 ITEM: Consider Resolution 04-02 approving up to a 3% standard compensation increase for regular employees in 2004, subject to review and recommendation by supervisor SUBMITTED BY: Heather Worthington, City Administrator EXPLANATION: Summary: The Council is being asked to formally approve up to a 3% salary increase for regular employees with a satisfactory performance in 2004. This increase is budgeted for in the 2004 budget. Staff received their performance evaluations the first full week of January which were conducted by their supervisor or the City Administrator. ATTACHMENT: • Resolution 04-02 • ACTION REQUESTED: • Approval of 3% standard compensation increase for regular employees for 2004, subject to review and recommendation by supervisor y9 • No. 2004-02 CITY OF FALCON HEIGHTS COUNCIL RESOLUTION Date: January 7, 2004 • • RESOLUTION AUTHORIZING COMPENSATION INCREASE FOR REGULAR EMPLOYEES WHEREAS the 2004 budget includes a 3% standard compensation increase for regular employees; NOW THEREFORE, BE IT RESOLVED that the City Administrator is hereby authorized to award up to a 3% compensation increase for regular employees for the year 2004. Moved by: GEHRZ KUETTEL LAMB LINDSTROM TALBOT In Favor Against Approved: Susan L. Gehrz, Mayor January 7, 2004 Attested: Heather M. Worthington City Administrator January 7, 2004 Sc CONSENT H6 1/07/04 r: ITEM: Appointment of City Engineer for 2004 SUBMITTED BY: Heather Worthington, City Administrator EXPLANATION: Summary: Staff recommends that the contract with Howard R. Green Company, Inc., be continued for 2004, and that Terry Maurer be appointed as the City Engineer. ACTION REQUESTED: • Approval of Terry Maurer and Howard R. Green Company as the City Engineer for 2004 C s • • • • • • CONSENT H7 1/07/04 ITEM: Appointment of City Attorneys for 2004 SUBMITTED BY: Heather Worthington, City Administrator EXPLANATION: Summary: Staff recommends the following individual's contracts be renewed as City Attorneys for 2004. (Minnesota statute requires formal appointment to these posts.) Roger Knutson, Campbell Knutson Martin Costello, Hughes and Costello ACTION REQUESTED: • Approval of the City Attorneys for 2004 City Attorney (Civil) City Attorney (Criminal) ~~ • • • CONSENT H8 1/07/04 ITEM: Designation of official newspaper for 2004 SUBMITTED BY: Heather Worthington, City Administrator EXPLANATION: Summary: State statute requires that a city designate a legal newspaper of general circulation in the city. This newspaper is used when the city is required to publish legal notification regarding public hearings, elections and city financial matters. There are three local papers that service Falcon Heights: Focus News, Park Bugle and the Roseville Review. Staff recommends that the City designate the Roseville Review as its legal newspaper in 2004 for the following reasons. • The Roseville Review circulates to most households in Falcon Heights. • The Roseville Review is a weekly publication. A monthly publication such as the Park Bugle would not suit the City's needs, as the City Council meets twice a month, and legal notices must be published on a more timely schedule. ATTACHMENTS: • Letter dated December 15, 2003 from Jeffery Enright, publisher of the Roseville Review ACTION REQUESTED: • Designate the Roseville Review as the City's legal newspaper for 2004 • S3 L' 'e Suburban Newspapers, Inc. 2515 E. Seventh Avenue North St. Paul, MN 55109 !651) -777-8890 December 1 ~. ~(1f 1 Heather Worthington, City Administrator Falcon Heights City Hall 2077 W. Larpenteur Ave. Falcon Heights, MN 55113 Dear Ms. Worthington: Thank you for the opportunity to bid on public notice publication services for the City oi~ Falcon Heights. Lillie Suburban Newspapers has been serving the needs of the Falcon Heights area for ~~~ years, and is pleased to provide ongoing coverage of city government and school issues anti community events. Lillie Suburban Newspapers is the oldest weekly newspaper company in the St. Paul area. It was founded in 1938 by the late T. R. Lillie. His son, N. Theodore Lillie, and grandson, Jeffer~~ Lnright. are continuing the family tradition of publishing award-winning community newspapers ~in the Si Paul suburbs. It is our sincere desire to provide the best possible local news coverage in the Roseville-Falcon Heights-Little Canada area. Our experienced news staff provides readers with awell-balanced, li~~el~ and informative product each week. We realize that Falcon Heights area residents look to the Roseville Review as one of their primary sources of information about city activities and meetings. as well as local events throughout the community; and we will continue to publish the city's press releases and photos. The Roseville Review is distributed to homes in Falcon Heights by paper carriers and throu~~h the mail. The newspaper has the official designation of the neighboring communities of St. Anthony anu Maplewood, and the Mounds View School District. Noon Thursday is the deadline each week for submitting public notices to our office. Late public notices are accepted up to 10 a.m. Friday for the Tuesday newspaper. Public notices should be directed to Brenda Boogren, Lillie Suburban Newspapers, 2515 E. Seventh Ave., North St. Paul, 1~1N 55109. Our fax number is 651/777-8288. Notices may also be sent via e-mail to lillienews(«aol.com Legal publication rates for minutes, advertisements for bids and other notices are as follows: $2.79 per column inch for cone-time publication $2.49 per column inch for each additional publication Thank you for considering the Roseville Review as the official legal newspaper for the City ul Falcon Heights for 2004. If you have any further questions, don't hesitate to call us. Sincerely, Jeffery Enright Publisher Ramsey County Review • Maplewood Review :• Oakdale-Lake Elmo Review • Review Perspectives LilliE New Brighton Bulletin • Shoreview Bulletin • St. Anthony Bulletin +: South-West Review NEWS Roseville-Little Canada Review •? Woodbury-South Maplewood Review • East Side Review • • ~~_ ~ ~ _ - ~'~" DEC 2 6 2003 newspapers December 16, 2003 City of Falcon Heights Heather Worthington, City Administrator 2077 W. Larpenteur Ave. Falcon Heights, MN 55113 Dear Ms Worthington: The Sun-Focus would like to be considered for designation as the legal newspaper for the City of Falcon Heights for the year 2004. All published legal notices are posted on our website (www.mnSun.com) at no additional charge. This is an enhancement to the local news coverage already available on the Internet and will broaden the readership of your legal notices. One of the main benefits of publishing your legal notices with the Sun-Focus is our home delivery. Sun Newspapers has become the primary source of community news in the suburbs. Your notices in our paper have the best chance of being seen and read. Despite rising costs of operating our newspapers, there will be no rate increase during the calendar year 2004. Our legal prices will remain the same. The rate structure for legals effective January 1, 2004 will be: 1 column width: $ .45 per line -per insertion ($4.95 per col. inch) There are 10 lines per inch Our columns are 11 picas 10 points wide Two notarized affidavits on each of your publications will be provided with no additional charge. The deadline for regular length notices is 11:00 am the Monday prior to publication. E-mailing the legal notices is an efficient and accurate way of getting the notices to us. The e-mail address for the legal department is legals@mnsunpub.com. We still accept notices on disk, faxed or through the mail. If you require more information to make your decision, please contact me or Meridel Hedblom, our Legal Representative, at 952-392-6829. Thank you for considering the Sun-Focus as the official newspaper for your community. Sincerely, ~ ~'" ~ ,,~ ,,. , ~, ~f "'~ ..._.... C Jeffrey Coolman Vice President of Sales and General Manager 10917 VALLEY Vow Roan ®ED~N PxA1RiE ®Mi»sorA 5534 ®95~-8~9-0797 ®F~: 95~-9~1-3588 • • .7 CONSENT H9 1/07/04 ITEM: Final payment of $1,767.68 to Allied Blacktop for 2003 sealcoating project SUBMITTED BY: Heather Worthington, City Administrator EXPLANATION: Summary: The 2003 Sealcoating project is complete, and staff recommends final payment of the retainage in the amount of $1,767.68 to Allied Blacktop. ACTION REQUESTED: • Approval of final payment of retainage to Allied Blacktop in the amount of $1,767.68 • • ITEM: SUBMITTED BY: REVIEWED BY: EXPLANATION: CONSENT H10 1/7/04 Acceptance of 2004 SCORE Grant from Ramsey County Heather Worthington, City Administrator Roland Olson, Finance Director Summary: Staff recommends acceptance of the 2004 SCORE grant to help offset recycling costs for the residents of Falcon Heights. ATTACHMENT: • 2004 SCORE Grant Agreement ACTION REQUESTED: • Acceptance of the 2004 SCORE Grant • CJ ~~ AGREEMENT BETWEEN • RAMSEY COUNTY AND CITY OF FALCON HEIGHTS FOR A SCORE FUNDING RECYCLING GRANT This Agreement is between Ramsey County (the "County")and the City of Falcon Heights (the "Municipality"). 1. OBLIGATIONS a. Reimbursement 1. The Municipality is obligated to provide for curbside recycling for at least four materials, including programs or provisions for assuring residential recycling service is available to residents on-site at all multi-unit housing and manufactured home parks. The County may deny reimbursement to the Municipality, or seek recovery of payments disbursed to the Municipality, if the Municipality is unable to verify that recycling collection service is provided at each place of residence. The County may deny reimbursement, or seek recovery, of that portion of the grant amount equivalent to the proportion of households not provided recycling collection service. 2. The Municipality is required to credit the County and the State of Minnesota's SCORE fund as funding sources in any public education materials. 3. The Municipality shall incur expenses for reimbursement by the County in accordance with the budget, presented in Attachment A, which is attached and incorporated into this Agreement. Reimbursement is not to be requested for expenses reimbursed by other sources or for expenses that do not meet the eligibility criteria outlined in the SCORE grant application guidelines. Proper documentation is required for reimbursement. 4. The County shall reimburse the Municipality for adequately documented requests consistent with Attachment A submitted by the Municipality. 5. The County's obligation under this Agreement is subject to the availability and provision of funding from the State of Minnesota. The County may immediately cancel this Agreement or reduce the reimbursement to the Municipality to the extent funds received from the State are reduced or eliminated. The County is acting as fiscal agent for the Municipality and in no event shall be obligated to reimburse the Municipality in an amount in excess of that actually received from the State. 6. Reimbursement will be made according to the following schedule: For the period of: January 1 -March 31 April 1 -June 30 July 1 -September 30 October 1 -December 31 • b. Reports Reimbursement will occur after: April 1, 2004 July 1, 2004 .October 1, 2004 January 1, 2005 The Municipality shall submit two reports to the County. The first is due to the County on August 15, 2004. The second is due on February 1, 2005. The report due August 15, 2004, will include program information for January 1 through June 30, 2004. The second report will include information for July 1 through December 31, 2004. These reports are to include information on recycling at all residential units, including multi-family buildings and manufactured home parks, even if the Municipality does not provide collection services to those units. ~~ • 2. The reports shall be submitted on forms provided by the County. c. Financial Report The Municipality shall be required to submit, if requested by the County, an audited financial report to the Ramsey County Budget and Accounting Office. The report shall show how funds received from Ramsey County were disbursed. 2. TERM The term of this agreement shall be from January 1, 2004, through December 31, 2004, the date of signatures notwithstanding. 3. CANCELLATION Either party may cancel this Agreement at any time upon thirty (30) days written notice to the other party. In the event of termination, the Municipality shall be entitled to reimbursement for those eligible expenses incurred up to the termination date, provided the expenses have been incurred according to the budget shown in Attachment A and the Municipality is not otherwise in default of any terms and conditions in this Agreement. 4. DEFAULT Any of the following shall constitute default on the• part of the Municipality: a. The failure of the Municipality to use funds in a manner consistent with this Agreement and Attachment A. b. The failure of the Municipality or its (sub)contractor(s) to use their best efforts to ensure the maximum collection and marketing of recyclable materials from all residential units. c. The failure of the Municipality to provide information satisfactory to the County as required in this Agreement, including information requested on the report forms provided by the County. d. The failure of the Municipality to meet any terms and conditions of this agreement. 5. GENERAL CONDITIONS a. All services and duties performed by the Municipality pursuant to this Agreement shall be performed to the satisfaction of the County and in accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations as a condition of payment. The Municipality agrees that it will comply with all federal, state, and local statutes and ordinances relating to nondiscrimination. b. The Municipality shall at all times be an independent contractor and shall not be the employee of the County for any purpose. The County shall not be responsible~for the payment of any taxes, either federal or state, on behalf of the Municipality, nor shall the County be responsible for any fringe benefits. No Civil Service or other rights of employment will be acquired by virtue of Municipality's services. c. The Municipality and County mutually agree to defend, hold harmless, and indemnify the other party, its officials, agents, and employees, from any liability, loss, or damage they may suffer • as a result of demands, claims, judgments, or costs arising out of or caused by the indemnifying party's performance of their respective obligations under the provisions of this Agreement. This provision shall not be construed nor operate as a waiver of any applicable • limits of or exceptions to liability set by law. d. All data collected, created, received, maintained, or disseminated for any purpose in the course of this Agreement is governed by the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, or any other applicable State statute, any State rules adopted to implement the Act and statutes, as well as federal statutes and regulations on data privacy. The Municipality agrees to abide by these statutes, rules, and regulations. e. All books, records, documents, and accounting procedures and practices of the Municipality and its (sub)contractor(s), if any, relative to this Agreement are subject to examination by the County and the State Auditor, as appropriate, in accordance with the provisions of Minnesota Statutes §16C.05, Subd. 5. The Municipality shall make all reasonable efforts to ensure that their employees, officials and subcontractors do not engage in violence while performing under this agreement. Violence, as defined by the Ramsey County Workplace Violence Prevention and Respectful Workplace Policy, is defined as words and actions that hurt or attempt to threaten or hurt people; it is any action involving the use of physical force, harassment, intimidation, disrespect, or misuse of power and authority, where the impact is to cause pain, fear or injury. h. The Municipality will be required to pay interest of 1'h percent per month or any part of a month to any subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100.00 or more is $10.00. For an unpaid balance of less than $100.00, the Municipality shall pay the actual penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from the Municipality must be awarded its costs and disbursements, including • attorney's fees, incurred in bringing the action. i. All equipment purchased using funds provided in this Agreement shall remain the property of the Municipality. j. Any amendments to this Agreement shall be in writing and signed by both parties. 6. RECYCLING MARKETS SUPPORT FUND During 2004, the County will reserve for the Municipality a portion of the County Recycling Markets Support Fund for the Municipality. This portion will be the proportion of the Municipality's population residing in Ramsey County to the entire Ramsey County population, according to 2000 Metropolitan Council population figures, multiplied by the total amount of the Support Fund. To gain access to these funds, the Municipality must first apply to the County, in accordance with the County's guidelines in place at the time for distribution of the Recycling Markets Support Fund. The Municipality will be allowed to incur expenses for reimbursement in accordance with its application, including eligible activities and maximum potential reimbursement amount, once such application is approved by the County. The County shall reimburse the Municipality for adequately documented requests consistent with such an approved application. The Municipality must provide evidence, upon request from the County, that no Support Fund monies were used to landfill recyclable materials and transport materials to a landfill. The County reserves the right at any time to amend the total amount of the Support Fund, to amend the guidelines for distribution of the Support Fund, or to eliminate the Support Fund. 7. WASTE REDUCTION The Municipality shall comply with Minnesota Statues §115A.151 regarding recycling in local • government facilities. The Municipality and its (sub)contractor(s) shall participate in a recycling program for at least four broad types of recyclable materials and shall favor the purchase of recycled products in its procurement processes. All reports, publications and documents produced S9 c: • • as a result of this agreement shall be printed on both sides of the paper, where commonly accepted publishing practices allow, on recycled and recyclable paper using soy-based inks, and shall be bound in a manner that does not use glue. 8. PUBLIC ENTITIES MANAGEMENT OF WASTE The Municipality shall comply with Minnesota Statutes §115A.46 and §115A.471 when arranging for the management of mixed municipal solid waste (MSW) and assure delivery of such waste to a waste processing facility for resource recovery. RAMSEY COUNTY By County Manager Date Funds are available, code: 2004-12901-581080-425101-G213001 By Budget and Accounting Insurance Approved and Approved as to Form: By Assistant County Attorney Recommended: By Director, Department of Public Health CITY OF FALCON HEIGHTS By_ Title: Approved as to Form: By Date Municipality Attorney By Clerk-Treasurer 6a • • irk f~ ATTACHMENTA FALCON HEIGHTS 2004 SCORE FUNDING GRANT BUDGET ADMINISTRATION: PROMOTION ACTIVITIES: EQUIPMENT: COLLECTION OF RECYCLABLES: (DETAIL) Collection contractor TOTAL SCORE GRANT: $ 0.00 $ 0.00 $ 0.00 $ 10,680.00 $ 10,680.00 61 POLICY I1 • 1/07/04 ITEM: 2004 Council liaison assignments SUBMITTED BY: Mayor Gehrz EXPLANATION: Summary: Council members are each assigned to serve as a liaison between the City Council and the various Commissions each year. Assignments for 2004 are as follows: Planning Commission -Peter Lindstrom Parks & Recreation Commission -Laura Kuettel Solid Waste Commission -Robert Lamb Neighborhood Commission -Sue Gehrz Human Rights Commission -Laura Kuettel • Cable Commission -Rick Talbot Cable Commission Alternate -Robert Lamb Northwest Youth & Family Services Joint Powers Board -Peter Lindstrom Ramsey County League of Local Governments - Campus/Community Task Force -Sue Gehrz and Heather Worthington ACTION REQUESTED: • Discussion • Motion to approve 2004 Council liaison assignments • L~ • POLICY I2 1/07/04 ITEM: Reappointment of Commissioners and Appointment of Commissioner SUBMITTED BY: Sue Gehrz, Mayor EXPLANATION: Sum The following commissioners are recommended for reappointment to their respective commissions: Parks and Recreation Commission Chuck Long Denise Deen Patrick Dolan Jim Evans Planning Commission Pamela Harris Patrick Ryan • Tom Lageson Michael Tracy Jim DeLeo Ann Ziebarth The following resident is recommended for appointment to the Neighborhood Commission: Susan Majerus ACTION REQUESTED: • Approval of reappointment of Commissioners to the Parks and Recreation and Planning Commissions and appointment of Commissioner to the Neighborhood Commission • • POLICY I3 • 1/07/04 ITEM: Request for action on the option to waive the statutory tort limits under the LMCIT insurance plan SUBMITTED BY: Heather Worthington, City Administrator REVIEWED BY: Roland Olson, Finance Director EXPLANATION: Summary: The League of Minnesota Cities Insurance Trust (LMCIT) is requesting that cities determine if they wish to waive the statutory tort limits of $1,000,000. Under these limits an individual can settle for no more than $300,000 for a single claim and a single claim for all parties cannot exceed $1,000,000. Under certain circumstances the LMCIT, which represents the city in these claims, may negotiate above the legal liability limit if necessary because some claims like employment are exempt from the cap. The general counsel from the LMCIT said that cities made different choices depending upon their circumstances. However, he perceived that maintaining the limit was prudent in many cases. The city has had no claims with settlements for several years. • In 2000, 2001, 2002, and 2003 the city council voted not to waive the statutory tort limits. Staff also consulted with city attorney, Roger Knutson, to determine if the situation had changed, and he recommended that the city not waive the statutory tort limit again this year. • Goa14: To provide a responsive and effective city government. • Strategy 6: To effectively manage the city's financial resources. ATTACHMENTS: ^ Waiver form ACTION REQUESTED: ^ Discussion ^ Motion not to waive the city's statutory tort limit of $1,000,000 • G4 LMCIT LIABILITY COVERAGE -WAIVER FORM Cities obtaining liability coverage from the League of Minnesota Cities Insurance Trust must decide whether or not to waive the statutory tort liability limits to the extent of the coverage purchased. The decision to waive or not to waive the statutory limits has the following effects: If the city does not waive the statutory .tort limits, an individual claimant would be able to recover no more than $300,OOO.on any claim to which the statutory tort limits apply. The total which all claimants would be able to recover for a single occurrence to which the statutory tort Limits apply would be limited to $ I,000,000. These statutory tort limits would apply regardless of whether or not the city purchases the optional excess liability coverage. If the city waives the statutory tort limits and :does not purchase .excess liability coverage, a single claimant could potentially recover up to $1,000,000. on a single occurrence. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to $1,000,000., regardless of the number of claimants. If the city waives the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount. up to the limit of the coverage purchased. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Claims to which the statutory municipal tort limits do not apply are not affected by this decision. This decision must be made by the city council. Cities purchasing coverage must complete and return • this form to LMCIT before the effective date of-the coverage. For further information, contact LMCIT. You may also wish to discuss these issues with your city attorney. The City of accepts liability coverage limits of $ from the League of Ivlinnesota Cities Insurance.Trust (LMCIT). Check one: The city DOES NOT NAIVE the monetary limits on municipal tort liability established by Minnesota Statutes 466.04. The city WAIVES the monetary limits on tort liability established by Minnesota Statutes 466.04, to the extent of the limits of the liability coverage obtained from LMCIT. Date of city council meeting Signature Position Return this completed form to LMCIT, 145 University Ave. W., St. Paul, 1VIN. SSI03-2044 • Page 1 of 1 GS POLICY I4 1/07/04 ITEM: Grant agreement between City and Sherman Associates SUBMITTED BY: Heather Worthington, City Administrator EXPLANATION: Summary: In 2002 and 2003, the City received $1,450,000 in grants from the Metropolitan Council for the redevelopment of the SE Corner. These grant monies will be available to Sherman Associates for certain aspects of the redevelopment project. As such, the city has been advised by our legal counsel to enter into a grant agreement with Sherman Associates for the future release and expenditure of those funds. This will mirror the city's agreements with the Metropolitan Council, and hold Sherman Associates responsible for meeting the requirements of the grant agreements, as well as the measurable goals and specific aspects of the redevelopment as laid out in the Redevelopment Agreement and the grant paperwork. Mr. Sherman signed the grant agreement during the closing on the Senior Apartments on December 30, 2003. ATTACHMENT: • • Grant Agreement ACTION REQUESTED: • Approval of the Grant Agreement with Sherman Associates C, GG u GRANT AGREEMENT THIS AGREEMENT is made as of the 18th day of December, 2003, by and between the CITY OF FALCON HEIGHTS, a Minnesota municipal corporation (the "City") and SHERMAN ASSOCIATES, INC., a Minnesota corporation (the "Master Developer") FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP, a Minnesota limited partnership (the "Multifamily Developer"), TOWNHOMES AT TOWN SQUARE LLC, a Minnesota limited liability company (the "Townhome Developer"), and TOWN SQUARE SENIOR APARTMENTS LLC, a Minnesota limited liability company (the "Senior Developer") RECITALS • WHEREAS, the Multifamily Developer, the Townhome Developer and the Senior Developer are sometimes referred to in this Agreement individually as a "Developer", or collectively as the "Developers". WHEREAS, the Developers have presented to the City a proposal under which they will redevelop certain blighted real property located in the City and legally described on Exhibit A attached hereto (the "Property") into amixed-income, mixed-use town square project for the City (the "Town Square Project") as follows: (a) the Multifamily Developer proposes to construct a 119 unit multifamily rental project which will include approximately 12,000 square feet of commercial retail space on the first floor and abelow-grade parking structure (the "Multifamily Development"); and • C'] (b) the Townhome Developer proposes to construct a 14 unit for-sale townhome project (the "Townhome Development"); and (c) the Senior Developer proposes to construct a 56 unit senior rental project which will include abelow-grade parking structure (the "Senior Development"). WHEREAS, the City has entered into Development Agreements with the Multifamily Developer, the Townhome Developer and the Senior Developer, each dated July 18, 2003, (each a "Development Agreement"), which Development Agreements include, among other things, the terms and conditions under which each Developer will construct its respective component of the Town Square Project. WHEREAS, the Development Agreement with the Multifamily Developer includes, among other things, the terms and conditions under which the City agreed to acquire the Property exercising its powers of eminent domain and to transfer the Property to the Multifamily • Developer, which in turn has agreed to convey portions of the Property to the Townhome Developer and the Senior Developer. WHEREAS, City is the recipient of certain funds totaling $1,450,000.00 pursuant to the following grants relating to the Town Square Project (the "Grants"): (a) Metropolitan Livable Community Act, Livable Communities Demonstration Account, Grant No. SG-02-155, $1,000,000.00 (the "Livable Communities Grant"); (b) Metropolitan Livable Communities Act, Local Housing Incentives Account, Grant No. SG-03-48, $150,000.00; and (c) Metropolitan Livable Communities Act, Local Housing Incentives Account, Grant No. SG-02-62, $300,000.00. • G8 WHEREAS, the City utilized $1,090,000.00 of the Grants to help fund the acquisition of • the Property needed for the Town Square Project and the Master Developer, on behalf of the Developers, funded the balance of the acquisition cost. WHEREAS, among the City's goals for the Town Square Project are the redevelopment of blighted property, creation of affordable housing, remediation of environmental conditions, infrastructure improvements, and retail opportunities, and the utilization of the Grants for acquisition of the Property needed for the Town Square Project will further such goals. WHEREAS, the City, the Developers and the Master Developer have made certain representations and statements relating to the Town Square Project to be carried out and completed by the Developers which were contained in and made part of the various applications for the Grants. WHEREAS, the City has transferred the Property to the Multifamily Developer pursuant to a Quit Claim Deed of even date herewith in accordance with the Development Agreement and in consideration of such transfer the City has requested that the Developers and the Master Developers enter into this Agreement relating to the Grants. NOW, THEREFORE, the City, the Developers, and the Master Developer agree as follows: 1. Each Developer and the Master Developer will abide by all terms and conditions of the any Grant agreements relating to the use of the funds made available from the Grants, including, but not limited to, the return of the Grant funds if all major components of the Town Square Project are not completed. "Major components" are the Multifamily Development, the Townhome Development and the Senior Development. • G9 2. The City agrees to deposit the $360,000.00 in Grant funds remaining from the • Livable Communities Grant pursuant to the Master Disbursement Agreement dated as of December 1, 2003, by and among the Senior Developer, Glaser Financial Group, Inc., a Minnesota corporation (the "First Mortgage Lender"), Ramsey County Housing and Redevelopment Authority ("Ramsey County HRA"), the City and Commercial Partners Title, LLC (the "Title Company") to be disbursed to the Senior Developer in accordance with the terms of such Master Disbursement Agreement. 3. The Developers and the Master Developer, and each of them, will indemnify and hold the City harmless from any and all claims against the City, including reasonable attorney's fees and costs, relating in any way to the use of the Grant funds. [The remainder of this page has been left blank intentionally. Signature pages follow.] • • ~a SIGNATURE PAGE TO TO GRANT AGREEMENT IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered as of the day and year first above written. CITY OF FALCON HEIGHTS By: • • By: Susan L. Gehrz, Mayor Heather Worthington, City Administrator '71 • SIGNATURE PAGE TO TO GRANT AGREEMENT IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered as of the day and year first above written. By: SHERMAN ASSOCIATES, INC. George E. Sherman, President FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP • By: Sherman Associates, Inc. Its General Partner By: George E. Sherman, President TOWNHOMES AT TOWN SQUARE LLC By: George E. Sherman, President FALCON HEIGHTS SENIOR APARTMENTS LLC By: George E. Sherman, President ~a CJ • • • r~ POLICY IS 1/7/04 ITEM: Consideration of amendment to the Building Official Agreement with Little Canada, and appointment of Steve Westerhaus as the Building Official SUBMITTED BY: Heather Worthington, City Administrator REVIEWED BY: Roger Knutson, City Attorney EXPLANATION: Summary: In 2002, the City signed an agreement with Little Canada for provision of building inspection services. In November, the two city administrators met to discuss the agreement, and the performance of the building official. Both parties agreed that the arrangement was working very well, and that staff was pleased with the performance of the building official. At that time, both parties had some recommendations for improvements to the contract, including a specific provision that will allow for fire inspections (this had been a service included under "building inppections"); and a billing rate adjustment which will require Falcon Heights to pay 35% of the cost of the Building Official, and Little Canada 65% (the previous agreement had Little Canada billing Falcon Heights at an hourly rate for those services). This will amount to $35,791.70 per year which will be billed to Falcon Heights. This is still considerably less than the private contract Falcon Heights had up unti12002. ATTACHMENT: • Revised agreement with Little Canada for the provision of building inspection services ACTION REQUESTED: • Approval of the revised agreement '13 FIItST AiI~NDNIENT TO AGREEMENT THIS FIRST AMENDMENT TO THE AGREEMENT for Building Official Services ("Amendment") is entered into by and between The City of Little Canada, Minnesota hereinafter referred to as "Little Canada") and the City of Falcon Heights, Minnesota, (hereinafter referred to as "Falcon Heights"). Whereas, Little Canada and Falcon Heights entered into an Agreement for Building Official Services effective January 1, 2003, and Whereas, Little Canada and Falcon ~ieights desire to amend the Agreement to ensure an equitable arrangement exists between the two parties and to update the Agreement to reflect current conditions, NOW, TIiEREFORE, In consideration of the understanding herein set forth, Little Canada and Falcon Heights agree to amend the Agreement as follows: 1. Section 2, Services Provided, paragraph f. is hereby amended as follows: f. Little Canada shall use its best efforts to find "fill-in" Building Official services to address vacations, sick leave, or any unexpected absence in the position of Building Official. The costs for these services shall be billed at the same hourly rate as . provided for in Exhibit B. 2. Section 2, Services Provided is hereby amended by adding the following provision: h. Little Canada shall be permitted to employee additional persons as necessary to provide supplemental Fire Marshal services to Falcon Heights. The billing rate for this person shall be the same as the rate for the Building Official as indicated in Exhibit B of the Agreement. 3. Section 3. Payment is hereby amended as follows: It is agreed that Little Canada will bill Falcon Heights for building inspection and fire marshal on a quarterly basis. The billing rate shall be based upon the calculation as depicted in Exhibit B, attached hereto. This rate shall be adjusted based upon any change (increase or decrease) to the components with appropriate supporting documentation. A revised Exhibit B shall be prepared and forwarded to Falcon Heights upon any adjustment to the rate components. It is also understood that past billings may have to be adjusted based upon the effective date of any changes to the billing components. Little Canada will endeavor to matte such adjusted billings as soon as practical. Furthermore, it is also understood that the minimum amount Falcon Heights shall pay on an annual basis is 35% of the total cost of the Building Official position based upon the computation depicted in E,~hibit B. Billing shall occur on a . quarterly basis and provide for the actual hours expended times the hourly rate in Exhibit B as well as for 1/4 of the of the annual minimum amount due, with the actual amount due for that quarter to be the lugher of those two figures. Should '14 l~ actual billing costs exceed the minimtun due, credit will be provided on the following quarter's bill." 4. This First Amendment shall be effective on January 1, 2004, regardless of the date of execution. • In witness hereof, the parties have executed this Amendment on the respective dates indicated below. CITY OF LITTLE CANADA sy: 1VIichae I. Fahey Its: Mayor By• / Joe Hanson s: City Adnunistrator Dated this f~~day of December, 2003. CITY OF FALCON HEIGHTS sy: Susan L. Gehrz Its: Mayor By: Heather M. Worthington Its: City Administrator Dated this day of , 7S Z a y Z W a O V U W a 'z_^ V Z .^^.~ ...I W U H w _J m a J J W Z W C7 ~ Z ZO Z W ~ W ~ V ~ ~ > Z _ O_ a Q ~ ~ = a w d w o U N o o r W ^rNfA ~ d~MO N U ~ J a pW=~~ aW~W NQ~~.J ~ ~ ~ ~~Q'a LL ~ N Z2 SQ Ut t.Z W a ~ -a ^>~>Z}}~F cWnmmOQJ2Yo QQaQ~.apO W c°o ~ WzOz°~2~6s ~p p~ rn ~ w O 20 a~w wzzza c~ a ~.Qa~ooo w J ~ o 2 m ~ m ^ ^ ^ ^a fAfW(AOW U =LLa~mmmm0 ~" h i~ CO 'cY Q~ N et N ~ 00 10 N Ifs N CD N ~' r M fD OD r t0 7 NCV~Ot~JCstetCV ~ N O O = r ~ I II II 0 m N X T } R ~ w J O ~ ~ d' 'ti O N W Z ~ ~ ? 0 a ~ _.I ~ CO W N F - ~ ZW~ QU W U p Y ~ Z d ~ ~-ZWUH C90 D~UC~~ ? ~ W V ~ ~ cn z 2 p a^ m a ~_~~~¢ Z } ~ W= U O U 2 J Q Y H Z Z J S ~ p¢~~ Q W U~ W~ Z O V w ~ w LL a^> O Z m S~a320>aosQ z c 0 w x W m J_ ~} F- U 2 U Q w w w m Z 0 U W W W U' W Q z a N W O w U 2 u~ z z a QW W J_ Q H Q W 2 F Z O O W Q CO w m _J y W i U w Q w J '1~ • • • POLICY I6 1/7/04 ITEM: Consideration of the Amended and Restated Multifamily Development Agreement SUBMITTED BY: Heather Worthington, City Administrator REVIEWED BY: Matthew Foli, Campbell Knutson EXPLANATION: Summary: This agreement combines the original Development Agreement and the first amendment, both effective July 18, 2003, and a new paragraph 10.10 regarding the park dedication fee into one document. The Amended and Restated format is easier for recording purposes than a new second amendment to the original development agreement would be. This document will be used when the developer of the SE Corner, Sherman Associates, closes on their mortgage with HUD for the multi-family building sometime next month. ATTACHMENT: • Amended and Restated Multifamily Development Agreement ACTION REQUESTED: • Approval of the Amended and Restated Multifamily Development Agreement '~ 1 • • AMENDED AND RESTATED DEVELOPMENT AGREEMENT By and Between THE CITY OF FALCON HEIGHTS and FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP DRAFTED BY: CAMPBELL KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, MN 55121 Telephone: (651) 452-5000 78 • SCHEDULE A SCHEDULE B SCHEDULE C SCHEDULE D SCHEDULE E SCHEDULE F SCHEDULE G SCHEDULE H SCHEDULEI SCHEDULE J SCHEDULE K LIST OF SCHEDULES Description of Multifamily Development Property Site Plan for Falcon Heights Town Square Description of Senior Development Property Description of Townhome Development Property Business Subsidy Agreement Certificate of Completion Multifamily TIF Note Plat of Falcon Heights Town Square Restaurant Parcel Shopping Center Parcel Snelling Avenue Parcel '79 AMENDED AND RESTATED DEVELOPMENT AGREEMENT THIS AMENDED AND RESTATED DEVELOPMENT AGREEMENT ("Agreement"), made on or as of the day of , by and between the City of Falcon Heights, a Minnesota municipal corporation (hereinafter referred to as the "City"), and Falcon Heights Town Square Limited Partnership, a Minnesota limited partnership (hereinafter referred to as the "Multifamily Developer"), amends and restates the Development Agreement between the parties, dated effective July 18, 2003 and the First Amendment to Development Agreement between the parties, dated effective July 18, 2003. WITNESSETH: WHEREAS, the City is a municipal corporation organized and existing pursuant to the Constitution and laws of the State of Minnesota and is governed by the Council of the City (the "Council"); and WHEREAS, the City has established within the City its Municipal Development District No. 1 pursuant to Minnesota Statutes, Sections 469.124 - 469.134, providing for the development and redevelopment of certain areas located within the City (which development district is hereinafter referred to as the "Project"); and WHEREAS, the City has approved the establishment of its Tax Increment Financing • District No. 1-3 within the Project pursuant to Minnesota Statutes, Sections 469.174-469.179 (which tax increment financing district is hereinafter referred to as the "Tax Increment District"); and WHEREAS, pursuant to Minnesota Statutes, Section 469.176, subdivision 4, tax increment derived from the Tax Increment District may be used in accordance with the tax increment financing plan created in connection with the establishment of the Tax Increment District to pay the capital and administration costs of the Project; and WHEREAS, pursuant to Minnesota Statutes, Section 469.126, the City is authorized within the Project to acquire, construct, reconstruct, improve, alter, extend, operate, maintain or promote developments; and WHEREAS, the Multifamily Developer has presented to the City a proposal under which the Multifamily Developer would redevelop certain real property located within the Tax Increment District as more particularly described in Schedule A attached hereto and made a part hereof (the "Multifamily Development Property"); and WHEREAS, the Multifamily Developer's proposal for the Multifamily Development Property is to construct an approximately 119 unit multifamily rental project which would include approximately 12,000 square feet of commercial retail space on the first floor and a below-grade parking structure (the "Multifamily Development"); and r ~; ;".~'~=December 29, 2003 8D WHEREAS, the redevelopment of the Multifamily Development Property is part of a larger redevelopment project known as "Falcon Heights Town Square" which will involve the redevelopment of the Multifamily Development Property and certain real property adjacent to the Multifamily Development Property also located within the Tax Increment District (the "Town Square Site"); and WHEREAS, the site plan for the Town Square Site attached hereto as Schedule B and made a part hereof shows (i) the Multifamily Development, (ii) a 56 unit senior rental project which would include abelow-grade parking structure (the "Senior Development") to be constructed on the real property described on Schedule C attached hereto and made a part hereof (the "Senior Development Property"), and (iii) a 14 unit for-sale townhome project (the "Townhome Development") to be constructed on the real property described on Schedule D attached hereto and made a part hereof (the "Townhome Development Property"); and WHEREAS, the City will enter into a Development Agreement with Town Square Senior Apartments LLC, a Minnesota limited liability company (the "Senior Developer") with respect to the Senior Development (the "Senior Development Agreement") and a Development Agreement with Townhomes at Town Square LLC, a Minnesota limited liability company (the "Townhome Developer") with respect to the Townhome Development (the "Townhome Development Agreement"); and WHEREAS, the Multifamily Developer has as part of its proposal requested that the City provide certain financial assistance to aid in the development of the Multifamily . Development, without which assistance such development would not be feasible; and WHEREAS, the City believes that the redevelopment of the Multifamily Development Property and the provision of the housing and retail space as proposed by the Multifamily Developer is in the best interest of the City and its residents and in accord with the public purposes and provisions of applicable federal, state and local laws under which the Multifamily Development is being undertaken and assisted; and NOW THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, the terms defined in the recitals shall have the meanings set forth therein and the following terms shall have the following meanings, unless a different meaning clearly appears from the context: "Acquisition Costs" means the total amount paid by the City to acquire or attempt to acquire the Shopping Center Parcel, the Snelling Avenue Parcel and the Snelling Avenue Frontage Road -North of Larpenteur, including, but not limited to, the following: (1) the amount of compensation paid by the City for the real property either by settlement or as r~~~-'~=? (;'~~December 29, 2003 81 determined in the eminent domain proceedings to the owners of the Shopping Center Parcel and Snelling Avenue Parcel; (2) any payment to any owner or tenant for loss of going concern value; (3) any payment for fixtures; (4) relocation benefits paid to an owner or tenant pursuant to Minn. Stat. Ch. 117, the Federal Uniform Relocation Assistance Act, or any other state or federal statute or regulation; (5) costs incurred by the City in providing relocation services; (6) all appraisal costs; (7) reasonable legal fees incurred by the City in any aspect of either the eminent domain proceeding or relocation benefit process; (8) appraisal, relocation and other expert witness fees and costs, and any other reasonable litigation expenses incurred in connection with the eminent domain proceedings or relocation benefit process. "Act" means Minnesota Statutes, Sections 469.124-469.134, as amended. "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Business Subsidy Agreement" means the agreement in the form attached hereto as Schedule E executed by the City and the Multifamily Developer pursuant to Section 10.8 of this Agreement. "Certificate of Completion" means the certificate in substantially the form attached hereto as Schedule F signed by the City certifying completion of the Minimum Improvements. "City" means the City of Falcon Heights, a Minnesota municipal corporation, or its • successors or assigns. "Closing Date" means the closing date of the First Mortgage Loan. "Commercial Component" means that portion of the Minimum Improvements consisting of approximately 12,000 square feet of retail space. "Construction Development Contract" means the Development Contract to be entered into between the City and the Developers, and mutually agreeable to the City and the Developers, regarding platting, public improvements and other matters relating to the redevelopment of the Town Square Site. "Construction Plans" means the site plan, utility plan, grading and drainage plan, landscape plan, elevations drawings, materials list and related documents on the construction work to be performed by the Multifamily Developer on the Multifamily Development Property, or in the public right of way as may be required by the City in its approval process, and which will be submitted to and approved by the City Council of the City, together with any conditions imposed by the City Council in connection with its approval. "Completion Date" means the date a Certificate of Completion with respect to the Minimum Improvements is delivered. • "County" means Ramsey County, Minnesota. .. 3 ',-~~December 29, 2003 8~ • "Developers" means collectively, the Multifamily Developer, the Senior Developer and the Townhome Developer. "Environmental Laws" means all present or future laws, statutes, treaties, rules, regulations, orders, ordinances, permits, licenses, judgments or decrees enacted by any Governmental Authority to regulate any materials, wastes and/or substances in the environment. "Event of Default" means an action by the Multifamily Developer listed in Article IX of this Agreement. "First Mortgage Lender" means Glaser Financial Group, Inc. "First Mortgage Loan" means a loan from the First Mortgage Lender and insured by the Federal Housing Administration of HUD pursuant to Section 221(d)(4) of the National Housing Act of 1984, as amended, and the regulations thereunder. "Governmental Authority" means the United States Environmental Protection Agency, the United States Department of Labor, the United States Department of Transportation, or any other local, state or federal government authority. "Hazardous Material" means any substance, waste, or material now or hereafter determined by any Governmental Authority to pose a risk of injury to health, safety and/or property, including but not limited to (i) all materials, wastes and substances now or hereafter designated as hazardous or toxic by any Governmental Authority, (ii) all materials, wastes and substances now or hereafter designated or defined as hazardous, extremely hazardous or toxic pursuant to the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. 9601, et seq.), the Resource Conservation and Recovery Act (42 U.S.C. 6901 et seq.), or any other Environmental Laws, and (iii) asbestos, urea formaldehyde, polychlorinated biphenyls, and petroleum products. "HUD" means the Department of Housing and Urban Development. "Maturity Date" means the date that the Tax Increment District is terminated. "Met Council LCDA Funds" means the funds in the total amount of $1,000,000, awarded to the City by the Metropolitan Council for the redevelopment of the Town Square Site. "Minimum Improvements" means the improvements to be constructed by the Multifamily Developer on the Multifamily Development Property consisting of the Commercial Component, the Multifamily Component, and the Parking Component. "Mortgage" means any mortgage loan to the Multifamily Developer that is secured, in whole or in part, with the Minimum Improvements and the Multifamily Development Property. :~ ~.-~ (?=1='December 29, 2003 83 "Multifamily Component" means that portion of the Minimum Improvements consisting of approximately 119 units of multifamily rental housing. "Multifamily Developer" means Falcon Heights Town Square Limited Partnership, a Minnesota limited partnership, and its successors and assigns. "Multifamily Development" means the Multifamily Development Property and the Minimum Improvements to be constructed thereon as provided in this Agreement. "Multifamily Development Property" means the real property legally described on the attached Schedule A. "Multifamily TIF Note" means the Taxable Tax Increment Revenue Note to be issued by the City pursuant to this Agreement, which Note shall be substantially in the form of the note attached to this Agreement as Schedule G. "Multifamily Available Tax Increment" means one hundred percent (100%) of the Tax Increment received by the City with respect to the Multifamily Development Property in the six (6) month period preceding a Scheduled Payment Date under the Multifamily TIF Note. For purposes of determining the amount of Multifamily Available Tax Increment, 53.25% of the original net tax capacity of the Tax Increment District shall be allocated to the Multifamily Development Property. • "Multifamily Supplemental Available Tax Increment" means that portion of the Supplemental Available Tax Increment allocated to the Multifamily TIF Note. "Note" means the Multifamily TIF Note. "Parking Component" means that portion of the Minimum Improvements consisting of a below-grade structure which will contain approximately 150 parking stalls. "Plat" means the plat of subdivision of the Town Square Site, known as Falcon Heights Town Square, a copy of which is attached hereto as Schedule H. "Preliminary Plans" means the site plan and building elevations submitted to the City in connection with the City's planned unit development approval process. "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 plan and development program adopted in connection with creation of the Project. "PUD Agreement" means the Planned Unit Development Agreement to be entered into between the City and the Developers, and mutually agreeable to the City and the Developers. :F~~ €~ v~l-~ .:~ ~`('~' December 29, 2003 8~ . "Reimbursable Costs" means the portion of the costs to be incurred by the Multifamily Developer in connection with the development of the Minimum Improvements to be reimbursed by the City through the issuance and payment of the Note which costs are further described in the Tax Increment Plan, including land acquisition costs and parking facilities. "Relocation Benefits" means the relocation assistance, services, payments and benefits required under Minnesota Statutes Sections 117.50-117.56. "Restaurant Parcel" means the real property depicted and legally described on Schedule I currently improved by a restaurant commonly known as "Dino's Gyros". "Senior Developer" means Town Square Senior Apartments LLC, a Minnesota limited liability company, and its permitted successors and assigns. "Senior Development Property" means the real property legally described on the attached Schedule C. "Senior TIF Note" means the Taxable Tax Increment Revenue Note to be issued by the City pursuant to the Senior Development Agreement, which Note shall be substantially in the form of the note attached to such Agreement. • "Shopping Center Parcel" means the real property depicted and legally described on Schedule J currently improved by a shopping center commonly known as "Northome Shopping Center". "Snelling Avenue Parcel" means the real property depicted and legally described on Schedule K currently used as a service drive and to be included in the Multifamily Development Property. "State" means the State of Minnesota. "Supplemental Available Tax Increment" means one hundred percent (100%) of the Townhome Available Tax Increment which amount shall be applied as follows: (i) to the amount necessary to make a scheduled payment under the Multifamily TIF Note up to the amount of property taxes actually paid by the Multifamily Developer with respect to the Multifamily Development Property in such six (6) month period; (ii) to the amount necessary to make a scheduled payment under the Senior TIF Note up to the amount of property taxes actually paid by the Senior Developer with respect to the Senior Development Property in such six (6) month period; and (iii) the balance which is to be retained by the Townhome Developer. "Tax Increment" means that portion of the real property taxes paid with respect to the Multifamily Development Property and the Minimum Improvements, or the Townhome Development Property and the Townhome Minimum Improvements, as applicable that is remitted to the City as tax increment pursuant to the Tax Increment Act. • .. .... -~`~ - ~ ._ _. 6 a~.~k~~-~--==~'~December 29, 2003 8S "Tax Increment Act" means the Tax Increment Financing Act, Minnesota Statutes, Sections 469.174-469.179, as amended and as it may be further amended from time to time. "Tax Increment District" means the City's Tax Increment Financing District No. 1-3. "Tax Increment Plan" means the tax increment financing plan adopted by the City in connection with its creation of the Tax Increment District, which plan together with the information and findings contained therein is hereby incorporated herein and made a part hereof by reference. "Title Company" means Commercial Partners Title LLC. "Townhome Available Tax Increment" means one hundred percent (100%) of the Tax Increment received by the City with respect to the Townhome Development Property in the six (6) month period preceding a Scheduled Payment Date under the Townhome Development Agreement after deducting the City's accumulated actual administrative expenses, as defined in the Act, which shall not exceed the lesser of (i) $5,000 in the six (6) month period, or (ii) an amount equal to ten percent (10%) of the Tax Increment generated in the six (6) month period, which amount is to be retained by the City for administrative purposes. "Townhome Developer" means the Townhomes at Town Square LLC, a Minnesota limited liability company, and its permitted successors and assigns. "Townhome Development Property" means the real property legally described on the attached Schedule D. "Townhome Minimum Improvements" means 14 townhouses for sale to owner- occupants to be built on the Townhome Development Property. "Town Square Site" means the real property depicted on Schedule B attached hereto to be known as "Falcon Heights Town Square" which includes the Multifamily Development Property, the Senior Development Property and the Townhome Development Property. "Unavoidable Delays" means delays in the performance of obligations relating to the construction of the Minimum Improvements due to unforeseeable causes beyond the control of the Multifamily Developer, including but not limited to causes which are the result of acts of God, acts of the public enemy, acts of terrorism, unforeseen adverse weather conditions, strikes, other labor troubles, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, results in delays, acts of any federal, state or local governmental unit, and which directly results in delays, delays in delivery of materials for the Minimum Improvements or soil conditions of the Multifamily Development Property. ARTICLE II Representations rr,t,~ ~ - ~~~, ~ + ~ 7 :ITi~~~-~ ? . ~' L'r3' December 29, 2003 86 Section 2.1. Representations by the Cites The City makes the following representations • as the basis for the undertaking on its part herein contained: (a) The City is a statutory city under the laws of the State. Under the laws of the State, the City has the power to enter into this Agreement and to perform its obligations hereunder. (b) The City has taken all action necessary to create the Project, the Project Plan, the Tax Increment Plan, the Tax Increment District and to approve this Agreement and to authorize the execution and delivery of this Agreement, the Note and any other documents or instruments required to be executed and delivered by the City pursuant to this Agreement. (c) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the City is now a party or by which it is bound, or constitutes a default under any of the foregoing. (d) There is not pending, nor to the best of the City's knowledge is there threatened, any suit, action or proceeding against the City before any court, arbitrator, administrative agency or other governmental authority that materially and adversely affects the validity of any of the transactions contemplated hereby, the ability of the City to perform its obligations hereunder, or as contemplated hereby or thereby, or the validity or enforceability of this Agreement. (e) The City has received no notice or communication from any local, state or federal official that the activities of the Developers or the City in the Project Area may be or will be in violation of any Environmental Laws. The City is aware of no facts the existence of which would cause it to be in violation of any Environmental Laws. (f) The City has no actual knowledge of any actions, claims, suits, or proceedings pending or threatened against the City or the Town Square Site which relate to any violation or alleged violation of any Environmental Laws. (g) The City will reasonably cooperate with the Developers with respect to any litigation commenced by third parties with respect to the Town Square Site. Section 2.2. Representations by the Multifamily Developer. The Multifamily Developer represents that: (a) The Multifamily Developer is a limited partnership duly organized and authorized to transact business in the State, is not in violation of any provisions of its Certificate of Limited Partnership, its Partnership Agreement or the laws of the State, has power to enter into this Agreement and has duly authorized the execution, delivery and performance of this Agreement by proper action of its General Partner. • ~4Ei~~3~c~i3is, ~~2i'£~£=~f~ ~~`3~ 'x:_3Eeg ~"~'~e c4 ?-~-:-~ .'-'R . "' "=?~' December 29, 2003 8'1 (b) The Multifamily Developer will construct the Minimum Improvements in . accordance with the terms of this Agreement and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations), except for variances necessary to construct the improvements contemplated in the Construction Plans approved by the City. (c) The Multifamily Developer has received no notice or communication from any local, state or federal official that the activities of the Multifamily Developer or the City in the Project Area may be or will be in violation of any Environmental Laws. The Multifamily Developer is aware of no facts the existence of which would cause it to be in violation of any Environmental Laws. In the event that it is necessary to take any action to obtain any necessary permits or approvals with respect to the Multifamily Development Property under any local, state or federal environmental law or regulation, the Multifamily Developer will be responsible for taking such action and the City agrees to reasonably cooperate with the Multifamily Developer with respect to obtaining any such permits or approvals. (d) The Multifamily Developer will obtain, 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. The City agrees to reasonably cooperate with the Multifamily Developer with respect to obtaining any such permits, licenses and approvals. . (e) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the Multifamily Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (f j The Multifamily Developer would not acquire the Multifamily Development Property and construct the Minimum Improvements but for the execution of this Agreement and the tax increment assistance made available under this Agreement. (g) The Multifamily Developer will reasonably cooperate with the City with respect to any litigation commenced by third parties with respect to the Development. ARTICLE III Redevelopment Site Assembly Section 3.1. Acquisition of Restaurant and Snelling Avenue Parcels. The City and the Multifamily Developer acknowledge and agree as follows: (a) The Multifamily Developer has acquired the Restaurant Parcel. :1~~~~~ ;-1.:_'.(`~~December 29, 2003 88 (b) The City will exercise, to the extent of its legal authority to do so, its powers of eminent domain to acquire the Snelling Avenue Parcel and the Snelling Avenue Frontage Road - North of Larpenteur and convey the parcels to the Multifamily Developer in consideration of the Multifamily Developer's payment of the Acquisition Costs. The Multifamily Developer shall pay the Acquisition Costs upon receipt of Quit Claim Deeds ~~ +'~° ~ -~ ^*+^°~°a ~-°r°*-- ~~ ~ed~le-~14. Section 3.2. Acauisition of Shopping Center Parcel. The Multifamily Developer has used its best efforts to acquire the Shopping Center Parcel directly from its third party owner pursuant to terms and conditions that are feasible for the redevelopment of the Town Square Site. As of the date of this Agreement, the Multifamily Developer has been unsuccessful in its efforts to acquire the Shopping Center Parcel pursuant to such terms and conditions. The City, therefore, will exercise its powers of eminent domain, to the extent of its legal authority to do so, to acquire the Shopping Center Parcel and convey such parcel to the Multifamily Developer pursuant to this Agreement. Section 3.3. Commencement of Proceeding. T T~°~ °°°^•~*~°~ °~ +~~^ ^ a +, *The City will proceed to acquire the Shopping Center Parcel, the Snelling Avenue Parcel and the Snelling Avenue Frontage Road -North of Larpenteur as expeditiously as practical. The Multifamily Developer shall pay for all Acquisition Costs with respect to the Shopping Center Parcel, the Snelling Avenue Parcel and the Snelling Avenue Frontage Road -North of • Larpenteur. The City acknowledges that time is of the essence and agrees to pursue its acquisition responsibilities in an expeditious manner, including use of the "quick take" condemnation process pursuant to Minnesota Statutes, Section 117.42. The City may take a reasonable time to exhaust settlement before initiating condemnation. Section 3.4. Costs of Acquisition. T'~~^ ^ m°„am°~~ _; ~~~~~~~~The Multifamily Developer shall immediately depositing Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00) with the City to be applied by the City at its discretion to cover Acquisition Costs. To the extent that the deposit is not sufficient to cover all Acquisition Costs, the Multifamily Developer shall pay to the City within fifteen (15) days of written demand by the City, or sooner if the payment is needed to meet any deadline imposed by any statute, regulation, settlement or court order, any additional amount necessary to meet such obligations. Developer will indemnify and hold harmless the City from all Acquisition Costs. Section 3.5. Conveyance of Parcels. Prior to the City taking title to and possession of the Shopping Center Parcel or in any other way obligating itself to acquire the parcel, Multifamily Developer shall pay to the City all Acquisition Costs incurred to date, compensation to be paid to acquire the Shopping Center Parcel and deposit with the City an additional amount to cover future Acquisition Costs which are reasonably identifiable at that time. As soon as possible after the City takes title to and possession of the Shopping Center Parcel and the Snelling Avenue Parcel, the City shall convey title to the Shopping Center Parcel and the Snelling Avenue Parcel to the Multifamily Developer pursuant to Quit Claim Deeds ~„ +~° ~ ~. ^++^^~-^a ~ + ;~sl}ed~$~4. ~lt~lt # .:~:1 R ~~~~~~~~~~}~~ ,mow _ _ ~_ 10 ,'~~~~~~ ?-1. ''~~December 29, 2003 89 Section 3.6. Platting of Town Square Site. The Multifamily Developer shall obtain approval of a Plat of the Town Square Site, known as Falcon Heights Town Square, and a Planned Unit Development ("PUD") of such property, all in accordance with City ordinances and procedures. In connection with approval of the Plat, the Multifamily Developer will enter into a PUD Agreement and Construction Development Contract. The parties agree and understand that on or before the Closing Date of the First Mortgage Loan, the Multifamily Developer will (a) close on acquisition of the Shopping Center Parcel, any portion of the Snelling Avenue Parcel required for the Multifamily Development Property and the Restaurant Parcel, (b) file the Plat, and (c) convey portions of the platted property to the Senior Developer and the Townhome Developer, all as further described in this Article. Section 3.7. Convevance of Senior Development Property. The Multifamily Developer will convey the Senior Development Property to the Senior Developer for such consideration as the Multifamily Developer and the Senior Developer mutually agree. Section 3.8. Convevance of Townhome Development Property. The Multifamily Developer will convey the Townhome Development Property to the Townhome Developer for such consideration as the Multifamily Developer and the Townhome Developer mutually agree. ARTICLE IV Tax Increment and Other Public Assistance • Section 4.1. Tax Increment Certification. The City has established the Tax Increment District pursuant to the Tax Increment Act. Section 4.2. Reimbursable Costs. The City acknowledges that the high cost of acquiring the Multifamily Development Property and preparing it for development necessitates the City's provision of certain financial assistance to aid the Multifamily Developer. Therefore, the City agrees that it will reimburse the Multifamily Developer for the Multifamily Developer's payment of Reimbursable Costs of developing the Minimum Improvements. The City's reimbursement of the Multifamily Developer shall be accomplished through the City's issuance and payment of the Note. The Multifamily Developer shall be solely responsible for initial payment of the Reimbursable Costs and all construction work related thereto. The City's sole obligation in such regard shall be to issue the Note at the time stated in this Agreement and to pay the Note in accordance with its terms. Section 4.3. Issuance of Note. The City's shall issue the Note on the Closing Date. The Note shall be substantially in the form of the Multifamily TIF Note attached to this Agreement, with any blanks properly filled in. The Note (i) shall be dated as of the date of its issuance, (ii) shall bear interest at the rate of interest payable on the Developer's First Mortgage Loan plus the applicable mortgage insurance premium to such loan, and (iii) shall show a principal amount sufficient to cover the property taxes actually paid by the Multifamily Developer with respect to the Multifamily Development Property as provided in the Note taking into account the interest rate determined under clause (ii) of this sentence. Interest shall begin to accrue at the later of (a) submission by the Multifamily Developer to the City of invoices and certifications in such form . as the City may reasonably require, demonstrating that the Multifamily Developer has paid the ,T, , t ~ _ ~ ~-,,. ~ f ,~ . f 11 a~x ei tsc`Ti~i ~ zae'i°e t l~ ii~v:Fe x~_ix a i~r' ~ .~ ~.~~~~~ December 29, 2003 9~ Reimbursable Costs, and (b) January 1, 2005. The term of the Note shall coincide with the term of the Tax Increment District. Section 4.4. Conditions Precedent. The City's obligation to issue the Note shall be subject to satisfaction, or waiver in writing by the City, of all of the following conditions precedent: (a) the Multifamily Developer shall not be in default under the terms of this Agreement; (b) the Multifamily Developer shall have secured all governmental permits and approvals, including building permits, necessary to construct and operate the Minimum Improvements; (c) the Multifamily Developer shall have obtained and submitted to the City acceptable evidence of ability to finance the Minimum Improvements as required under Section 7.1 of the Agreement; and (d) The Multifamily Developer shall have submitted to the City and the City shall have approved Construction Plans for the Minimum Improvements pursuant to Section 5.3 of this Agreement. Section 4.5. Developer Acknowled eg_ment. The Multifamily Developer acknowledges • that the City has made no warranties or representations to the Multifamily Developer as to the amounts of Tax Increment that will be generated or that the Tax Increment pledged to the payment of the Note will be sufficient to pay the Note in whole or in part. Nor is the City warranting that it will have throughout the term of this Agreement and the Note the continuing legal ability under State law to apply Tax Increment to the payment of the Note, which continued legal ability is a condition precedent to the City's obligations under the Note. r] L Section 4.6. Assi~. The Multifamily Developer intends to assign the Note to the First Mortgage Lender and HUD. The City agrees to cooperate with the Multifamily Developer in connection with such assignment, including the execution of such assignment documents as are required by the First Mortgage Lender or HUD. Section 4.7. Real Pro~ert_y Taxes; Special Assessments. The Multifamily Developer shall pay all ad valorem taxes and special assessments levied on the Multifamily Development Property which are payable subsequent to the date Developer acquires title to the Multifamily Development Property and prior to the Maturity Date. Section 4.8. Other Public Assistance. The City agrees to cooperate and assist the Multifamily Developer in obtaining any financing for the Development in addition to the financing provided by the City pursuant to this Agreement. ARTICLE V ~~~ ~~ '~-^" : ~=' ~'~December 29, 2003 91 shall be in substantial conformity with the Construction Plans as submitted by the Multifamily • Developer and approved by the City, subject to changes permitted under Section 5.4. Section 5.6. Certificate of Completion. The Multifamily Developer shall notify the City when construction of the Minimum Improvements has been substantially completed. The City shall promptly inspect the Minimum Improvements in order to determine whether such Minimum Improvements have been constructed in substantial conformity with the approved Construction Plans. If the City determines that the Minimum Improvements have not been constructed in substantial conformity with the approved Construction Plans, the City shall deliver a written statement to the Multifamily Developer indicating in adequate detail the specific respects in which the Minimum Improvements have not been constructed in substantial conformity with the approved Construction Plans and Developer shall promptly remedy such deficiencies. Promptly upon determining that the Minimum Improvements have been constructed in substantial conformity with the approved Construction Plans, the City will furnish to the Multifamily Developer a Certificate of Completion certifying the completion of the Minimum Improvements. The Certificate of Completion issued for the Minimum Improvements shall conclusively satisfy and terminate the agreements and covenants of the Multifamily Developer in this Agreement to construct the Minimum Improvements. The Multifamily Developer shall cause the Certificate of Completion to be recorded in the proper office for recordation of deeds and other instruments pertaining to the Multifamily Development Property. Section 5.7. Zoning and Permitting. Nothing in this Agreement shall be deemed to excuse the Multifamily Developer from complying with the City's normal zoning and construction permitting process as it relates to the development of the Minimum Improvements. ARTICLE VI Insurance and Condemnation Section 6.1. Insurance. (a) The Multifamily Developer will provide and maintain or cause to be provided and maintained at all times during the process of constructing the Minimum Improvements and, from time to time at the request of the City, furnish the City with proof of payment of premiums on: (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 Minimum Improvements at the date of completion, and with coverage available in nonreporting form on the so called "all risk" form of policy; (ii) General liability insurance (including operations, contingent liability, operations of subcontractors, completed operations, Broadening Endorsement including contractual liability insurance) with limits against bodily injury and property damage of not less than $2,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used); and ._, 5, t ~ ..,~ ~,t,,,, +„ .ar ~~~,,_ ,~, .~ + ,, 14 ~, ;~ ~~~~=_' (?A~December 29, 2003 93 (iii) Worker's compensation insurance, with statutory coverage and employer's liability protection. (b) After completion of construction of the Minimum Improvements, the Multifamily Developer shall maintain, or cause to be maintained, at its cost and expense, and from time to time at the request of the City shall furnish proof of the payment of premiums on, insurance as follows: (i) Insurance against loss and/or damage to the Minimum Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses, including (without limiting the generality of the foregoing) fire, extended coverage, all risk vandalism and malicious mischief, boiler explosion, water damage, demolition cost, debris removal, and collapse in an amount not less than the full insurable replacement value of the Minimum Improvements, but any such policy may have a deductible amount of not more than $25,000. No policy of insurance shall be so written that the proceeds thereof will produce less than the minimum coverage required by the preceding sentence, by reason of co-insurance provisions or otherwise, without the prior consent thereto in writing by the City. The term "full insurable replacement value" shall mean the actual replacement cost of the Minimum Improvements (excluding foundation and excavation costs and costs of underground flues, pipes, drains and other uninsurable items) and equipment, and shall be determined from time to time at the request of the City, but not more frequently than once every three years, by an insurance consultant or insurer, selected and paid for by the Multifamily Developer and approved by the City. (ii) Comprehensive general public liability insurance, including personal injury liability (with employee exclusion deleted), and automobile insurance, including owned, non-owned and hired automobiles, against liability for injuries to persons and/or property, in the minimum amount for each occurrence and for each year of $2,000,000.00. (iii) Such other insurance, including worker's compensation insurance respecting all employees of the Multifamily Developer, in such amount as is customarily carried by like organizations engaged in like activities of comparable size and liability exposure; provided that the Multifamily Developer may be self-insured with respect to all or any part of its liability for worker's compensation. (c) The policies of insurance required pursuant to Subsections (a) and (b) above shall be in form and content satisfactory to the City and shall be placed with financially sound and reputable insurers licensed to transact business in the State, the liability insurer to be rated A or better in Best's Insurance Guide and shall contain an agreement of the insurer to give not less than thirty (30) days' advance written notice to the City in the event of cancellation of such policy or change affecting the coverage thereunder and shall name the City as an additional named insured or loss payee, as appropriate. • :~ ~~_*:, .~--~~J;~ ~ December 29, 2003 9y (d) The Multifamily Developer agrees to notify the City promptly in the case of damage exceeding $25,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. In the event of any such damage, the Multifamily Developer will forthwith repair, reconstruct and restore the Minimum Improvements to substantially the same or an improved condition or value as existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration, the Multifamily Developer will apply the proceeds of any insurance relating to such damage received by the Multifamily Developer to the payment or reimbursement of the costs thereof. Any insurance proceeds remaining after completion of such repairs, construction and restoration shall be remitted to the Multifamily Developer. (e) The City agrees that any interest on its part by virtue of this Agreement in the application or receipt of any proceeds of insurance under the policies required by subsections (a)(i) or (b)(i) above shall be subordinate to the interest of the Multifamily Developer's lenders of financing for the construction of the Minimum Improvements. Section 6.2. Condemnation. In the event that title to and possession of the Minimum Improvements or any material part thereof shall be taken in condemnation or by the exercise of the power of eminent domain by any governmental body or other person, the Multifamily Developer shall, with reasonable promptness after such taking, notify the City as to the nature and extent of such taking. Upon receipt of any condemnation award, the Multifamily Developer shall elect to either: (a) use the entire condemnation award to reconstruct the Minimum Improvements (or, in the event only a part of Minimum Improvements have been taken, then to S reconstruct such part) within the Tax Increment District; or (b) retain the condemnation award whereupon in the event that a substantial portion of the Multifamily Development Property and Minimum Improvements have been taken, the City's obligations under the Note shall be terminated. ARTICLE VII Mortgage Financing Section 7.1. Mortgage Financing, Prior to the issuance of the Note to the Multifamily Developer, the Multifamily Developer shall provide to the City evidence that the Multifamily Developer has secured or will secure financing sufficient for construction of the Minimum Improvements. If the City finds that the evidence is acceptable, then the City shall notify the Multifamily Developer in writing of its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within fourteen (14) days from the date when the City is provided the evidence. If the City rejects the evidence as inadequate, it shall do so in writing specifying the basis for the rejection. In any event, the Multifamily Developer may resubmit adequate evidence that it has secured or will secure financing after such rejection. Section 7.2. Mortga eeg 's Option to Cure Events of Default. Upon the occurrence of an Event of Default under this Agreement, the City agrees to use its best efforts to provide the mortgagee under any Mortgage with written notice of such Event of Default and such mortgagee • shall have the right, at its option, to cure or remedy such Event of Default; provided, that a ~~._}~ i #, ~".-'=~~December 29, 2003 9s failure to give such notice shall not impair the City to exercise any remedy available to it as a result of such Event of Default. Section 7.3. Subordination of Agreement. In order to facilitate the obtaining of financing for the construction of the Minimum Improvements, the City agrees that it will consider and agree to reasonable requests to subordinate its rights with respect to the Multifamily Development Property and the Minimum Improvements to the rights of the Multifamily Developer's lenders under their loan documents. ARTICLE VIII Prohibitions Against Assignment and Transfer, Indemnification Section 8.1. Prohibition Against Transfer of Development Property and Assignment of Agreement. The Multifamily Developer represents and agrees that the Multifamily 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, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Multifamily Development Property (except for leases of residential units or leases of retail space, assignments or encumbrances in favor of a lender providing construction or permanent financing for the Minimum Improvements, or easements or other encumbrances necessary for the Development) or any part thereof or any interest herein or therein, or any contract or agreement to do any of the same, without the prior written approval of the City, which approval shall not be unreasonably withheld or delayed. No • assignment or transfer shall relieve the Multifamily Developer of any liability under this Agreement unless the City agrees in writing to such release. The restrictions on transfer and encumbrance of the Multifamily Development Property set forth in this Section shall terminate with respect to the Minimum Improvements on the expiration of the term of this Agreement. Section 8.2. Release and Indemnification Covenants. (a) The Multifamily Developer releases from and covenants and agrees that the City and the governing body members, officers, agents, servants and employees thereof (referred to for purposes of this Section collectively as 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, except to the extent caused by the negligence, gross negligence, willful misrepresentation or any willful or wanton misconduct of the Indemnified Parties. (b) Except when caused by any negligence, gross negligence, willful misrepresentation or any willful or wanton misconduct of the Indemnified Parties, the Multifamily Developer agrees to protect and defend the Indemnified Parties, 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 arising or purportedly arising from this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Minimum Improvements. .~;=rte '~;--~'~~December 29, 2003 9~ • (c) 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 and not of any governing body member, officer, agent, servant or employee of the City in the individual capacity thereof. ARTICLE IX Events of Default Section 9.1. Events of Default Defined. The term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides), any failure by Developer or the City to substantially observe or perform any material covenant, condition, obligation or agreement on its part to be observed or performed hereunder. Section 9.2. City's Remedies on Default. Whenever any Event of Default by Developer occurs, the City may take any one or more of the following actions after providing thirty (30) days written notice to the Multifamily Developer of the Event of Default, but only if the Event of Default has not been cured within said thirty (30) days, provided, however, that if such Event of Default is by its nature incapable of cure within thirty (30) days if the Multifamily Developer provides to the City evidence, reasonably acceptable to the City, that the Event of Default will be cured and will be cured as soon as reasonably possible, then the Multifamily Developer shall have such additional time as is reasonably necessary to cure such Event of Default but only so long as the Multifamily Developer is diligently pursuing such cure: (a) Suspend its performance of the City's obligations under this Agreement and the Note until the Event of Default is cured. If the City suspends its performance of its obligation to make payments due under the Note, the City shall make the suspended payments to the Multifamily Developer within five (5) business days following the Multifamily Developer's cure of the Event of Default. The City is not obligated to invest any amounts the City retains as a result of the City's suspension of its performance of its obligation to make payments under the Note, and is not obligated to pay Developer interest on the amount of the suspended payments between the date the payment is suspended and the date the City makes the suspended payment to the Multifamily Developer. (b) Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to the City to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the Multifamily Developer under this Agreement. Ic- If Developer defaults on its obligation to pay Acquisition Costs under Article III, the City may abandon the condemnation proceeding. Any costs incurred by the City, inc-uding any amounts the City is obligated to pay to owners named in the condemnation petition or other individuals or entities for attorneys fees, appraisal fees, relocation payments and other costs shall be considered Acquisition Costs. • -~,,,f ~ ;, ~-~„ ~, ~~ ~ 18 ;` ~~?~ '~=' ~~December 29, 2003 R'~ Section 9.3. Developer's Remedies on Default. Whenever any Event of Default by City i occurs, the Multifamily Developer may take whatever action, including legal, equitable or administrative action (including an action for specific performance), which may appear necessary or desirable to the Multifamily Developer to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the City under this Agreement after providing thirty (30) days written notice to the City of the Event of Default, but only if the Event of Default has not been cured within said thirty (30) days, provided, however, that if such Event of Default is by its nature incapable of cure within thirty (30) days if the City provides to the Multifamily Developer evidence, reasonably acceptable to the Multifamily Developer, that the Event of Default will be cured and will be cured as soon as reasonably possible, then the Multifamily Developer shall have such additional time as is reasonably necessary to cure such Event of Default but only so long as the City is diligently pursuing such cure. Section 9.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to the City or Developer 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 maybe deemed expedient. In order to entitle the City or the Multifamily Developer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article IX. Section 9.5. No Additional Waiver Im lied b One Waiver. In the event an y a~rccmcnt contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 9.6. Costs of Enforcement. Whenever any Event of Default by the Multifamily Developer occurs and the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement of performance or observance of any obligation or agreement on the part of the Multifamily Developer under this Agreement, the Multifamily Developer agrees that it shall be liable for the reasonable fees of such attorneys and such other reasonable expenses so incurred by the City. ARTICLE X Additional Provisions Section 10.1. Representatives Not Individually Liable. No member, official, or employee of the City shall be personally liable to the Multifamily Developer, or any successor in interest, in the event of any default or breach or for any amount which may become due to Developer or its successor or on any obligations under the terms of the Agreement. • .~ ~ 3 ~~-1-~='!='~"December 29, 2003 98 Section 10.2. 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. Section 10.3. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and (a) in the case of the Multifamily Developer, is addressed to or delivered personally to the Multifamily Developer at 233 Park Avenue South, Suite 201, Minneapolis, Minnesota 55415; and (b) in the case of the City, is addressed to or delivered personally to the City at City Hall, 2077 West Larpenteur Avenue, Falcon Heights, Minnesota 55113. or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. Section 10.4. Disclaimer of Relationships. Nothing contained in this Agreement nor any act by the City or the Multifamily Developer shall be deemed or construed by any person to create any relationship of third-party beneficiary, principal and agent, limited or general partner, or joint venture among the City, the Multifamily Developer, and/or any third party. • Section 10.5. Modifications. This A reement ma be modified solel throu h g y y g written amendments hereto executed by the Multifamily Developer and the City. Section 10.6. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 10.7. Judicial Interpretation. Should any provision of this Agreement require judicial interpretation, the court interpreting or construing the same shall not apply a presumption that the terms hereof shall be more strictly construed against one party by reason of the rule of construction that a document is to be construed more strictly against the parry who itself or through its agent or attorney prepared the same, it being agreed that the agents and attorneys of both parties have participated in the preparation hereof. Section 10.8. Business Subsidy Agreement. The City has held a public hearing on the provision of a business subsidy to the Multifamily Developer as required by Minnesota Statutes, Sections 116J.993 to 116J.995. After the public hearing the City found that there are no wage or job goals required of the Multifamily Developer because the primary purpose of the City in assisting the Multifamily Developer's development is to eliminate blighted and deteriorating improvements on the subject property and to provide affordable housing for low and moderate income persons and their families, and not for the purposes of job creation or retention. Notwithstanding the foregoing, at the time of conveyance of the Shopping Center Parcel to the C7 ~ ~r.,~+ : ~ r~-,~.- r . <,f n ~ ,~,~ 20 .kt~~~e-l ~. `?A~~December 29, 2003 99 Multifamily Developer, the Multifamily Developer shall enter into the Business Subsidy Agreement to satisfy the other requirements of the law. Section 10.9. Term. The term of this Agreement shall be effective from the day and year first above written until the Maturity Date. Section 10.10. Park Dedication Fee. The Multifamily Developer agrees to pay to the City 5150,000.00 as the Park Dedication Fee applicable to the following three developments known as the Town Square Project: (1) the Multifamily Development to be constructed on real property legally described as Lot 1, Block 1, Falcon Heights Town Square Second Addition; 12- the Senior Development to be constructed on real property legally described as Lot 1, Block 1, Falcon Heights Town Square; and 13- the Townhome Development to be constructed on real property legally described as Lot 2, Block 1, Falcon Heights Town Square. The Park Dedication Fee will be paid in two installments: 575,000.00 will be paid on the closing date of the first mortgage loan for the portion of the Town Square Project commonly referred to as the Multifamily Development; and 575,000.00 will be paid on December 31, 2005. ARTICLE XI HUD Requirements Section 11.1. Subordination. Notwithstanding anything in this document to the contrary, except the requirements in 26 U.S.C. 42(h)(6)(E)(ii), the provisions hereof are expressly subordinate to the promissory note dated as of , 2003, given by Developer to Glaser Financial Group, Inc. (the "HUD Note"), the mortgage securing the HUD Note (the "HUD Mortgage"), the regulatory agreement executed in connection with the HUD Note (the "HUD Regulatory Agreement") (collectively, the "HUD Loan Documents"), and subordinate to all applicable HUD mortgage insurance (and Section 8, if applicable) regulations and related administrative requirements. In the event of any conflict between the provisions of this document and the provisions of applicable HUD regulations, related HUD administrative requirements, or HUD Loan Documents, the HUD regulations, related administrative requirements or HUD Loan Documents shall control. Section 11.2. Foreclosure. In the event of foreclosure of the HUD Mortgage or transfer of title by deed in lieu of foreclosure, any and all land use covenants contained herein shall automatically terminate (except that the requirements set out in 26 U.S.C. 42(h)(6)(E)(ii) that for three (3) years low income tenants may not be evicted and their rents may not be raised may remain on the Project, as defined in the HUD Note. Section 11.3. Default. Failure to comply with the land-use covenants contained herein will not serve as basis for default on the HUD Mortgage. Section 11.4. Covenants. The covenants contained herein are not included in any of the HUD Loan Documents. • •~?r~r-i ' _--'q'tr=December 29, 2003 loa Section 11.5. Enforcement. Enforcement of the covenants herein will not result in any claim against the Project, the proceeds from the HUD Mortgage, any reserve or deposit required by HUD in connection with the mortgage transaction, or the rents or other income and the Property other than from available Surplus Cash, as defined in the HUD Regulatory Agreement. Section 11.6. Amendment. So long as the Development is subject to a mortgage insured or held by HUD, any subsequent amendment to this document is subject to prior written HUD approval of such amendment. Section 11.7. No Action. No action shall be taken in accordance with the rights granted herein, or prohibiting the Multifamily Developer from taking any action, except in strict accordance with the National Housing Act, applicable mortgage insurance regulations, HUD Loan Documents, or if applicable, Section 8 of the U.S. Housing Act of 1937 and the regulations thereunder. Section 11.8. Covenant. The Multifamily Developer warrants that the covenants contained herein do not conflict with any applicable HUD mortgage insurance regulation of Section 8 of the U.S. Housing Act of 1937 and the regulations thereunder. [The remainder of this page has been left blank intentionally. Signature pages follow.] LJ .~~.~~~ ~_, ?~~December 29, 2003 101 • SIGNATURE PAGE TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and the Multifamily Developer has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. CITY OF FALCON HEIGHTS By Susan L. Gehrz, Mayor C • By Heather M. Worthington City Administrator/Clerk STATE OF MINNESOTA ) SS. COUNTY OF RAMSEY ) The foregoing instrument was acknowledged before me this day of by Susan L. Gehrz and by Heather M. Worthington, respectively the Mayor and City Administrator/Clerk of the City of Falcon Heights, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public ,!~~~~~~i L :'~~~~December 29, 2003 ~ba SIGNATURE PAGE TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and the Multifamily Developer has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP By: Sherman Associates, Inc. Its: General Partner By George E. Sherman Its President STATE OF MINNESOTA ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of by George E. Sherman, the President of Sherman Associates, Inc., a Minnesota corporation, the General Partner of Falcon Heights Town Square Limited Partnership, a Minnesota limited partnership, on behalf of the limited partnership. • } ''s:ri~E~l zz~i}3: ~ +-£.~~rx i£?rzz~:.~}3~ .'rt=rt~-~'??~=r .-~~~~ ~ (.:~~?December 29, 2003 Notary Public 24 103 • SCHEDULE A TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP Legal Description of Multifamily Development Property Real property situated in Ramsey County, Minnesota, legally described as follows: Outlot A, FALCON HEIGHTS TOWN SQUARE • • la4 SCHEDULE B TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP Site Plan for Falcon Heights Town Square (See Attached) • • IaS • SCHEDULE C TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP Legal Description of Senior Development Property Real property situated in Ramsey County, Minnesota, legally described as follows: Lot 1, Block 1, FALCON HEIGHTS TOWN SQUARE • ID6 SCHEDULE D TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP Legal Description of Townhome Development Property Real property situated in Ramsey County, Minnesota, legally described as follows: Lot 2, Block 1, FALCON HEIGHTS TOWN SQUARE • • Io'~ SCHEDULE E TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP BUSINESS SUBSIDY AGREEMENT THIS AGREEMENT, made on or as of the day of , by and between the City of Falcon Heights, a Minnesota municipal corporation (hereinafter referred to as the "City"), and Falcon Heights Town Square Limited Partnership, a Minnesota limited partnership (hereinafter referred to as the "Multifamily Developer"). WHEREAS, the Multifamily Developer and the City have entered into an Amended and Restated Development Agreement dated effective as of (the "Contract") pursuant to which the Multifamily Developer has agreed to construct a mixed use residential/commercial development within the City; and WHEREAS, in order to induce the Multifamily Developer to undertake such development, the City has agreed in the Contract to provide certain assistance to the Multifamily Developer by reimbursing the Multifamily Developer for certain costs of preparing such property for construction of the development; and • WHEREAS, Minnesota Statutes, sections 116J.993 to 116J.995, provides that a government agency that provides financial assistance for certain purposes must enter into a business subsidy agreement setting forth goals to be met and the financial obligations of the recipient of the assistance if the goals are not met; and WHEREAS, the City Council of the City has held a public hearing concerning the assistance to be provided to the Multifamily Developer and has determined that the goals sought to be accomplished by assisting the Multifamily Developer do not include wage and job goals; and WHEREAS, the City and the Multifamily Developer agreed in the Contract that they would enter into this Business Subsidy Agreement to satisfy the requirement of sections 116J.993 to 116J.995. 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 Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears • from the context: 1 os • "Act" means Minnesota Statutes, Sections 116J.993-.995. "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Benefit Date" means the earlier of: (i) the date that the Commercial Component of the Improvements is completed; or (ii) the date that the Commercial Component of the Improvements is first occupied. "City" means the City of Falcon Heights, Minnesota. "Commercial Component" means that portion of the Improvements consisting of approximately 12,000 square feet of retail space. "Contract" means the Amended and Restated Development Agreement between the City and the Multifamily Developer dated effective as of "Multifamily Developer" means Falcon Heights Town Square Limited Partnership, a Minnesota limited partnership, its successors and assigns, or any future owners of the Multifamily Development Property. • "Multifamily Development Property" means the real property described as such in the Contract. "Improvements" means the construction by the Multifamily Developer of a commercial/residential development pursuant to the Contract. "State" means the State of Minnesota. "Subsidy" means the tax increment financing assistance provided to the Multifamily Developer under the Contract and which is attributable to the Commercial Component; provided, that the amount of the Subsidy at any particular time shall not exceed the amount that has been actually paid to the Multifamily Developer. ARTICLE II Job and Wage Goals; Required Provisions Section 2.1. Emnloyment and Wage Requirements. The City has determined that no wage and job goals will be imposed on the Multifamily Developer. Section 2.2. Reports. The Multifamily Developer agrees that it will provide to the City and any other authorized agency all reports required by the Act. Such reports shall be submitted at the times required by the Act. • ld9 Section 2.3. Continuing Obli ag tion. The Multifamily Developer agrees that it will continuously operate the Commercial Component of the Improvements for a period of at least five (5) years from the Benefit Date. Section 2.4. Required Provisions. The following provisions are required by the Act: (a) The Subsidy is being provided for the public purposes of developing redeveloping property containing substandard buildings and improvements. The Subsidy is necessary to offset the high costs associated with acquiring the Multifamily Development Property and preparing it for development. Absent the Subsidy, redevelopment of the Multifamily Development Property would not be economically feasible. (b) The Subsidy is being financed with tax increment generated from the City's Tax Increment Financing District No. 1-3, a redevelopment tax increment district. ARTICLE III Default Section 3.1. Defaults Defined. It shall be a default under this Agreement if the Multifamily Developer fails to comply with any term or provision of this Agreement, and fails to cure such failure within thirty (30) days after written notice to the Multifamily Developer of the default, but only if the default has not been cured within said thirty (30) days. Section 3.2. Remedies on Default. The parties agree that the Subsidy is a forgivable loan, repayable only if the Multifamily Developer fails to fulfill its obligations under section 2.3 of this Agreement. Upon the occurrence of a failure to continue operations as required by Section 2.3 the Multifamily Developer shall repay to the City upon written demand from the City a "pro rata share" of the Subsidy and interest on the Subsidy at the implicit price deflator as defined in Minnesota Statutes, Section 275.50, subd. 2, accrued from the Benefit Date. The term "pro rata share" means sixty (60) less the number of months of operation (where any month in which the Improvements are in operation for at least fifteen (15) days constitutes a month of operation), commencing on the Benefit Date and ending with the date the Multifamily Developer ceases operation as reasonably determined by the City, divided by 60. Section 3.3. Costs of Enforcement. Whenever any default occurs under this Agreement and the City shall employ attorneys or incur other expenses for the collection of payments due or for the enforcement of performance or observance of any obligation or agreement on the part of the Multifamily Developer under this Agreement, the Multifamily Developer shall be liable to the City for the reasonable fees of such attorneys and such other expenses so incurred by the City. • ~!b ARTICLE IV Miscellaneous Section 4.1. Provisions of Agreement Not Affected. Except as expressly provided herein, this Agreement is not intended to modify or limit in any way the terms of the Contract. Section 4.2. 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. Section 4.3. Modifications. This Agreement may be modified solely through written amendments hereto executed by the Multifamily Developer and the City. Section 4.4. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 4.5. Judicial Interoretation. Should any provision of this Agreement require judicial interpretation, the court interpreting or construing the same shall not apply a presumption that the terms hereof shall be more strictly construed against one party by reason of the rule of construction that a document is to be construed more strictly against the party who itself or through its agent or attorney prepared the same, it being agreed that the agents and attorneys of both parties have participated in the preparation hereof. The City and Multifamily Developer agree that this Agreement is intended to satisfy the requirements of the Act, which is incorporated herein and made a part hereof by reference. In the event that any provision of this Agreement conflicts with the terms of the Act, the terms of the Act shall govern. IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and the Multifamily Developer has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. CITY OF FALCON HEIGHTS By Susan L. Gehrz, Mayor By Heather M. Worthington City Administrator/Clerk STATE OF MINNESOTA ) SS. COUNTY OF RAMSEY ) The foregoing instrument was acknowledged before me this day of by Susan L. Gehrz and by Heather M. Worthington, respectively the Mayor and City Administrator/Clerk of the City of Falcon Heights, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. • Notary Public COUNTY OF HENNEPIN ) By C7 STATE OF MINNESOTA FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP By: Sherman Associates, Inc. Its: General Partner George E. Sherman Its President SS. The foregoing instrument was acknowledged before me this day of by George E. Sherman, the President of Sherman Associates, Inc., a Minnesota corporation, the General Partner of Falcon Heights Town Square Limited Partnership, a Minnesota limited partnership, on behalf of the limited partnership. Notary Public iia SCHEDULE F TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP CERTIFICATE OF COMPLETION WHEREAS, the City of Falcon Heights, a Minnesota municipal corporation (hereinafter referred to as the "City"), and Falcon Heights Town Square Limited Partnership, a Minnesota limited partnership (hereinafter referred to as the "Multifamily Developer") by an Amended and Restated Development Agreement dated (the "Agreement"), has assisted Multifamily Developer in the financing of the Minimum Improvements (as defined in the Agreement) constructed upon the following described land in the County of Ramsey, State of Minnesota (the "Multifamily Development Property"): Lot 1, Block 1, Falcon Heights Town Square Second Addition; and WHEREAS, the Agreement contained certain covenants and conditions and the • Multifamily Developer has fully and duly performed all of said covenants and conditions insofar as the Multifamily Developer is able; and WHEREAS, the issuance of this Certificate of Completion by the City is not intended nor shall it be construed to be a warranty or representation by the City as to the structural soundness of the improvements, quality of materials, workmanship or the fitness of the improvements for their proposed use; and NOW, THEREFORE, this is to certify that all building construction and other physical improvements specified to be done and made by the Multifamily Developer under the Agreement have been completed and all of the covenants and conditions in the Agreement relating thereto have been duly and fully performed by the Multifamily Developer therein and that the provisions of the Agreement in favor of the City therein are hereby released absolutely and forever insofar as it applies to the construction of the Minimum Improvements on the Multifamily Development Property, and the County Recorder and the Registrar of Titles, as applicable, in and for the County of Ramsey, State of Minnesota is hereby authorized to accept for recording and to record this instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions regarding the construction of the Minimum Improvements on the Multifamily Development Property as provided in the Agreement. I~3 IN WITNESS WHEREOF, the City has caused this Certificate to be duly executed in its name and behalf on or as of the day of 200_. CITY OF FALCON HEIGHTS By Susan L. Gehrz, Mayor By STATE OF MINNESOTA ) SS. COUNTY OF RAMSEY ) Heather M. Worthington City Administrator/Clerk The foregoing instrument was acknowledged before me this day of 200_, by Susan L. Gehrz and by Heather M. Worthington, respectively the Mayor and City Administrator/Clerk of the City of Falcon Heights, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. • Notary Public DRAFTED BY: CAMPBELL KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, MN 55121 Telephone: (651) 452-5000 SCHEDULE G TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF FALCON HEIGHTS TAXABLE TAX INCREMENT REVENUE NOTE (FALCON HEIGHTS TOWN SQUARE PROJECT-MULTIFAMILY TIF NOTE) The City of Falcon Heights, Minnesota (the "City"), hereby acknowledges itself to be indebted and, for value received, promises to pay to the order of Falcon Heights Town Square Limited Partnership, a Minnesota limited partnership, or its permitted assigns (the "Owner"), solely from the source, to the extent and in the manner hereinafter provided, the principal amount of this Note, being Dollars ($ .00) (the "Principal Amount"), together with interest thereon at the rate of percent (_%) per annum (the "Rate"). Interest shall begin to accrue on the unpaid principal amount of this Note on January 1, 2005. The amounts due under this Note are payable on June 30 and December 31 of each year commencing on June 30, 2006, and continuing to and including December 31, 2031 (the "Scheduled Payment Dates"). This Note is the note referred to as the Multifamily TIF Note in that certain Amended and Restated Development Agreement dated as of ,between the City and the Owner (the "Agreement"). Each payment on this Note is payable in any coin or currency of the United States of America which on the date of such payment is legal tender for public and private debts and shall be made by check or draft made payable to the Owner and mailed to the Owner at its postal address within the United States which shall be designated from time to time by the Owner. The Note is a special and limited obligation and not a general obligation of the City, which has been issued by the City pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Section 469.178, subdivision 4, to aid in financing a "project", as therein defined, of the City consisting generally of defraying certain capital and administrative costs incurred and to be incurred by the City within and for the benefit of its Municipal Development District No. 1 (the "Project"). THIS NOTE IS SPECIAL AND LIMITED AND NOT A GENERAL OBLIGATION OF THE CITY PAYABLE SOLELY OUT OF AVAILABLE TAX INCREMENT, AS DEFINED BELOW, AND NEITHER THE STATE NOR ANY POLITICAL SUBDIVISION THEREOF SHALL BE LIABLE ON THIS NOTE, NOR • /~ S SHALL THIS NOTE BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN AVAILABLE TAX INCREMENT. The Scheduled Payment of this Note due on any Scheduled Payment Date is payable solely from and only to the extent that the City shall have received in the six (6) month period preceding such Scheduled Payment Date "Multifamily Available Tax Increment" and/or "Multifamily Supplemental Available Tax Increment". For purposes of this Note, Multifamily Available Tax Increment and Multifamily Supplemental Available Tax Increment with respect to any Scheduled Payment Date shall have the meaning set forth in the Agreement and shall be referred to collectively in this Note as "Available Tax Increment". Available Tax Increment constitutes all or a portion of the tax increment generated in the calendar year of the Scheduled Payment Date with respect to that certain real property described on the attached Exhibit A (hereinafter referred to as the "Property"). The City shall pay on each Scheduled Payment Date to the Owner, the Available Tax Increment received by the City in the six (6) month period preceding such Scheduled Payment Date. To the extent that on the Maturity Date (as defined in the Agreement) after making any Scheduled Payment to be made on such date, the City has not paid the entire Principal Amount and interest due under this Note, this Note shall nonetheless terminate and the City shall have no further obligations hereunder. All payments made by the City under this Note shall be first applied to accrued interest and then to the Principal Amount. • The City's obligations herein are subject to the terms and conditions of the Agreement. The City's payment obligations hereunder may be suspended pursuant to Section 9.2 of the Agreement. If the City suspends its performance of its obligation to make payments due under this Note, the City shall make the suspended payments to the Owner within five (5) business days following the cure of the Event of Default (as defined in the Agreement). The City is not obligated to invest any amounts the City retains as a result of the City's suspension of its performance of its obligation to make payments under this Note, and is not obligated to pay Owner interest on the amount of the suspended payments between the date the payment is suspended and the date the City makes the suspended payment to the Multifamily Developer. This Note shall not be payable from or constitute a charge upon any funds of the City, and the City shall not be subject to any liability hereon or be deemed to have obligated itself to pay hereon from any funds except Available Tax Increment, and then only to the extent and in the manner herein specified. The Owner shall never have or be deemed to have the right to compel any exercise of any taxing power of the City or of any other public body, and neither the City nor any director, commissioner, council member, board member, officer, employee or agent of the City, nor any person executing or registering this Note shall be liable personally hereon by reason of the issuance or registration hereof or otherwise. This Note shall not be transferable or assignable, in whole or in part, by the Owner without the prior written consent of the City. The City hereby consents to the assignment of this IIG Note to the First Mortgage Lender and HUD (as such terms are defined in the Agreement). This • Note is issued pursuant to Resolution of the City and is entitled to the benefits thereof, which resolution is incorporated herein by reference. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law; and that this Note, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the City of Falcon Heights, by its City Council, has caused this Note to be executed by the manual signatures of the Mayor and the City Administrator/Clerk of the City and has caused this Note to be dated CITY OF FALCON HEIGHTS By Susan L. Gehrz, Mayor n By Heather M. Worthington City Administrator/Clerk • EXHIBIT A TO UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF FALCON HEIGHTS TAXABLE TAX INCREMENT REVENUE NOTE (FALCON HEIGHTS TOWN SQUARE PROJECT-MULTIFAMILY TIF NOTE) Legal Description of Development Property Lot 1, Block 1, Falcon Heights Town Square Second Addition Lot 2, Block 1, Falcon Heights Town Square 118 • SCHEDULE H TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP PLAT OF FALCON HEIGHTS TOWN SQUARE (See Attached) • ~i9 SCHEDULEI TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP RESTAURANT PARCEL Real property situated in Ramsey County, Minnesota, legally described as follows: Tract A, Registered Land Survey No. 73. n U • SCHEDULEJ TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP SHOPPING CENTER PARCEL Real property situated in Ramsey County, Minnesota, legally described as follows: Parcel 1: Tracts A through K, Registered Land Survey No. 94. Parcel 2: Tract A, except the North 38.33 feet of the West 70 feet thereof and except the South 51.67 feet of the North 90 feet of the West 73 feet of Tract A, Registered Land Survey No. 2. Parcel 3: The West 506.5 feet except the West 426.5 feet of the South 150 feet of the North 359.5 feet of the . Northwest Quarter of the Northwest Quarter of the Northwest Quarter of Section 22, Township 29, Range 23, except public streets and highways. l91 SCHEDULE K TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP SNELLING AVENUE PARCEL Real property situated in Ramsey County, Minnesota, legally described as follows: That part of the Westerly 159.5 feet, except the North 49.5 feet thereof, of the Northwest Quarter of the Northwest Quarter of Section 22, Township 29 North, Range 23 West, Ramsey County, Minnesota, lying Northerly of the Westerly extension of the Southerly line of Tract A, Registered Land Survey Number 2; which lies Easterly of Line 1 described below: Line 1. Commencing at the Northwest corner of said Section 22; thence run Easterly along the North line thereof on an azimuth of 88 degrees 48 minutes 49 seconds for 159.53 feet; thence on an azimuth of 179 degrees 53 minutes 31 seconds for 89.90 feet to the point of beginning of Line 1 to be described; thence on an azimuth of 269 degrees 53 minutes 31 seconds for 39.50 feet; thence on an azimuth of 179 degrees, 53 minutes 31 seconds for 550.89 feet and there terminating. • A • AMENDED AND RESTATED DEVELOPMENT AGREEMENT By and Between • THE CITY OF FALCON HEIGHTS and FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP DRAFTED BY: CAMPBELL KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, MN 55121 Telephone: (651) 452-5000 • • LIST OF SCHEDULES SCHEDULE A SCHEDULE B SCHEDULE C SCHEDULE D SCHEDULE E SCHEDULE F SCHEDULE G SCHEDULE H SCHEDULE I SCHEDULE J SCHEDULE K Description of Multifamily Development Property Site Plan for Falcon Heights Town Square Description of Senior Development Property Description of Townhome Development Property Business Subsidy Agreement Certificate of Completion Multifamily TIF Note Plat of Falcon Heights Town Square Restaurant Parcel Shopping Center Parcel Snelling Avenue Parcel • • AMENDED AND RESTATED DEVELOPMENT AGREEMENT THIS AMENDED AND RESTATED DEVELOPMENT AGREEMENT ("Agreement"), effective the 7th day of January, 2004, by and between the City of Falcon Heights, a Minnesota municipal corporation (hereinafter referred to as the "City"), and Falcon Heights Town Square Limited Partnership, a Minnesota limited partnership (hereinafter referred to as the "Multifamily Developer"), amends and restates the Development Agreement between the parties, dated effective July 18, 2003 and the First Amendment to Development Agreement between the parties, dated effective July 18, 2003. WITNESSETH: WHEREAS, the City is a municipal corporation organized and existing pursuant to the Constitution and laws of the State of Minnesota and is governed by the Council of the City (the "Council"); and WHEREAS, the City has established within the City its Municipal Development District No. 1 pursuant to Minnesota Statutes, Sections 469.124 - 469.134, providing for-the development and redevelopment of certain areas located within the City (which development district is hereinafter referred to as the "Project"); and WHEREAS, the City has approved the establishment of its Tax Increment Financing District No. 1-3 within the Project pursuant to Minnesota Statutes, Sections 469.174-469.179 (which tax increment financing district is hereinafter referred to as the "Tax Increment District"); and WHEREAS, pursuant to Minnesota Statutes, Section 469.176, subdivision 4, tax increment derived from the Tax Increment District may be used in accordance with the tax increment financing plan created in connection with the establishment of the Tax Increment District to pay the capital and administration costs of the Project; and WHEREAS, pursuant to Minnesota Statutes, Section 469.126, the City is authorized within the Project to acquire, construct, reconstruct, improve, alter, extend, operate, maintain or promote developments; and WHEREAS, the Multifamily Developer has presented to the City a proposal under which the Multifamily Developer would redevelop certain real property located within the Tax Increment District as more particularly described in Schedule A attached hereto and made a part hereof (the "Multifamily Development Property"); and WHEREAS, the Multifamily Developer's proposal for the Multifamily Development Property is to construct an approximately 119 unit multifamily rental project which would include approximately 12,000 square feet of commercial retail space on the first floor and a below-grade parking structure (the "Multifamily Development"); and • WHEREAS, the redevelopment of the Multifamily Development Property is part of a larger redevelopment project known as "Falcon Heights Town Square" which will involve the redevelopment of the Multifamily Development Property and certain real property adjacent to the Multifamily Development Property also located within the Tax Increment District (the "Town Square Site"); and WHEREAS, the site plan for the Town Square Site attached hereto as Schedule B and made a part hereof shows (i) the Multifamily Development, (ii) a 56 unit senior rental project which would include abelow-grade parking structure (the "Senior Development") to be constructed on the real property described on Schedule C attached hereto and made a part hereof (the "Senior Development Property"), and (iii) a 14 unit for-sale townhome project (the "Townhome Development") to be constructed on the real property described on Schedule D attached hereto and made a part hereof (the "Townhome Development Property"); and WHEREAS, the City will enter into a Development Agreement with Town Square Senior Apartments LLC, a Minnesota limited liability company (the "Senior Developer") with respect to the Senior Development (the "Senior Development Agreement") and a Development Agreement with Townhomes at Town Square LLC, a Minnesota limited liability company (the "Townhome Developer") with respect to the Townhome Development (the "Townhome Development Agreement"); and WHEREAS, the Multifamily Developer has as part of its proposal requested that the City provide certain financial assistance to aid in the development of the Multifamily Development, without which assistance such development would not be feasible; and WHEREAS, the City believes that the redevelopment of the Multifamily Development Property and the provision of the housing and retail space as proposed by the Multifamily Developer is in the best interest of the City and its residents and in accord with the public purposes and provisions of applicable federal, state and local laws under which the Multifamily Development is being undertaken and assisted; and NOW THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: ARTICLE I Definitions Section l.l. Definitions. In this Agreement, the terms defined in the recitals shall have the meanings set forth therein and the following terms shall have the following meanings, unless a different meaning clearly appears from the context: "Acquisition Costs" means the total amount paid by the City to acquire or attempt to acquire the Shopping Center Parcel, the Snelling Avenue Parcel and the Snelling Avenue Frontage Road -North of Larpenteur, including, but not limited to, the following: (1) the amount of compensation paid by the City for the real property either by settlement or as • 2 determined in the eminent domain proceedings to the owners of the Shopping Center Parcel and Snelling Avenue Parcel; (2) any payment to any owner or tenant for loss of going concern value; (3) any payment for fixtures; (4) relocation benefits paid to an owner or tenant pursuant to Minn. Stat. Ch. 117, the Federal Uniform Relocation Assistance Act, or any other state or federal statute or regulation; (5) costs incurred by the City in providing relocation services; (6) all appraisal costs; (7) reasonable legal fees incurred by the City in any aspect of either the eminent domain proceeding or relocation benefit process; (8) appraisal, relocation and other expert witness fees and costs, and any other reasonable litigation expenses incurred in connection with the eminent domain proceedings or relocation benefit process. "Act" means Minnesota Statutes, Sections 469.124-469.134, as amended. "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Business Subsidy Agreement" means the agreement in the form attached hereto as Schedule E executed by the City and the Multifamily Developer pursuant to Section 10.8 of this Agreement. "Certificate of Completion" means the certificate in substantially the form attached hereto as Schedule F signed by the City certifying completion of the Minimum Improvements. "City" means the City of Falcon Heights, a Minnesota municipal corporation, or its successors or assigns. "Closing Date" means the closing date of the First Mortgage Loan. "Commercial Component" means that portion of the Minimum Improvements consisting of approximately 12,000 square feet of retail space. "Construction Development Contract" means the Development Contract to be entered into between the City and the Developers, and mutually agreeable to the City and the Developers, regarding platting, public improvements and other matters relating to the redevelopment of the Town Square Site. "Construction Plans" means the site plan, utility plan, grading and drainage plan, landscape plan, elevations drawings, materials list and related documents on the construction work to be performed by the Multifamily Developer on the Multifamily Development Property, or in the public right of way as may be required by the City in its approval process, and which will be submitted to and approved by the City Council of the City, together with any conditions imposed by the City Council in connection with its approval. "Completion Date" means the date a Certificate of Completion with respect to the Minimum Improvements is delivered. "County" means Ramsey County, Minnesota. "Developers" means collectively, the Multifamily Developer, the Senior Developer and the Townhome Developer. "Environmental Laws" means all present or future laws, statutes, treaties, rules, regulations, orders, ordinances, permits, licenses, judgments or decrees enacted by any Governmental Authority to regulate any materials, wastes and/or substances in the environment. "Event of Default" means an action by the Multifamily Developer listed in Article IX of this Agreement. "First Mortgage Lender" means Glaser Financial Group, Inc. "First Mortgage Loan" means a loan from the First Mortgage Lender and insured by the Federal Housing Administration of HUD pursuant to Section 221(d)(4) of the National Housing Act of 1984, as amended, and the regulations thereunder. "Governmental Authority" means the United States Environmental Protection Agency, the United States Department of Labor, the United States Department of Transportation, or any other local, state or federal government authority. "Hazardous Material" means any substance, waste, or material now or hereafter determined by .any Governmental Authority to pose a risk of injury to health, safety and/or property, including but not limited to (i) all materials, wastes and substances now or hereafter designated as hazardous or toxic by any Governmental Authority, (ii) all materials, wastes and substances now or hereafter designated or defined as hazardous, extremely hazardous or toxic pursuant to the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. 9601, et seq.), the Resource Conservation and Recovery Act (42 U.S.C. 6901 et seq.), or any other Environmental Laws, and (iii) asbestos, urea formaldehyde, polychlorinated biphenyls, and petroleum products. "HUD" means the Department of Housirig and Urban Development. "Maturity Date" means the date that the Tax Increment District is terminated. "Met Council LCDA Funds" means the funds in the total amount of $1,000,000, awarded to the City by the Metropolitan Council for the redevelopment of the Town Square Site. "Minimum Improvements" means the improvements to be constructed by the Multifamily Developer on the Multifamily Development Property consisting of the Commercial Component, the Multifamily Component, and the Parking Component. "Mortgage" means any mortgage loan to the Multifamily Developer that is secured, in whole or in part, with the Minimum Improvements and the Multifamily Development Property. 4 "Multifamily Component" means that portion of the Minimum Improvements consisting of approximately 119 units of multifamily rental housing. "Multifamily Developer" means Falcon Heights Town Square Limited Partnership, a Minnesota limited partnership, and its successors and assigns. "Multifamily Development" means the Multifamily Development Property and the Minimum Improvements to be constructed thereon as provided in this Agreement. "Multifamily Development Property" means the real property legally described on the attached Schedule A. "Multifamily TIF Note" means the Taxable Tax Increment Revenue Note to be issued by the City pursuant to this Agreement, which Note shall be substantially in the form of the note attached to this Agreement as Schedule G. "Multifamily Available Tax Increment" means one hundred percent (100%) of the Tax Increment received by the City with respect to the Multifamily Development Property in the six (6) month period preceding a Scheduled Payment Date under the Multifamily TIF Note. For purposes of determining the amount of Multifamily Available Tax Increment, 53.25% of the original net tax capacity of the Tax Increment District shall be allocated to the Multifamily Development Property. "Multifamily Supplemental Available Tax Increment" means that portion of the Supplemental Available Tax Increment allocated to the Multifamily TIF Note. "Note" means the Multifamily TIF Note. "Parking Component" means that portion of the Minimum Improvements consisting of a below-grade structure which will contain approximately 150 parking stalls. "Plat" means the plat of subdivision of the Town Square Site, known as Falcon Heights Town Square, a copy of which is attached hereto as Schedule H. "Preliminary Plans" means the site plan and building elevations submitted to the City in connection with the City's planned unit development approval process. "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 plan and development program adopted in connection with creation of the Project. • "PUD Agreement" means the Planned Unit Development Agreement to be entered into between the City and the Developers, and mutually agreeable to the City and the Developers. "Reimbursable Costs" means the portion of the costs to be incurred by the Multifamily Developer in connection with the development of the Minimum Improvements to be reimbursed by the City through the issuance and payment of the Note which costs are further described in the Tax Increment Plan, including land acquisition costs and parking facilities. "Relocation Benefits" means the relocation assistance, services, payments and benefits required under Minnesota Statutes Sections 117.50-117.56. "Restaurant Parcel" means the real property depicted and legally described on Schedule I currently improved by a restaurant commonly known as "Dino's Gyros". "Senior Developer" means Town Square Senior Apartments LLC, a Minnesota limited liability company, and its permitted successors and assigns. "Senior Development Property" means the real property legally described on the attached Schedule C. "Senior TIF Note" means the Taxable Tax Increment Revenue Note to be issued by the City pursuant to the Senior Development Agreement, which Note shall be substantially in the form of the note attached to such Agreement. "Shopping Center Parcel" means the real property depicted and legally described on Schedule J currently improved by a shopping center commonly known as "Northome Shopping Center". "Snelling Avenue Parcel" means the real property depicted and legally described on Schedule K currently used as a service drive and to be included in the Multifamily Development Property. ..ti,F1-L1f1 C~ 1.~ 7ii'' ~- { T ?b FF~ (( l R a~ ''l~ ) ,.s i. s .rt~.w.. = S' ~. ,. L - l ^'~~ .__ I~!4~.~ C:I.~I. ~)F 1 i.~} ! 1~3 i~'t 1 .~ . ri ..t'.? l ~. t, f~, ~ .)3'1~}. t. (7'q,'.-~i.,~~ t._~ ~i ,. 1{>'„T ~ ~.. ;..4.{~C)i,i.!t: `_' ~ ji ~ !Lh~~,.~, U~,.t'~.___...._ ~.~.1}~~~S~a~i1°,. ~!...~.~~~ _;,_)-~~~ F...._.„..r.__~~„..~ "State" means the State of Minnesota. "Supplemental Available Tax Increment" means one hundred percent (100%) of the Townhome Available Tax Increment which amount shall be applied as follows: (i) to the amount necessary to make a scheduled payment under the Multifamily TIF Note up to the amount of property taxes actually paid by the Multifamily Developer with respect to the Multifamily Development Property in such six (6) month period; (ii) to the amount necessary to make a scheduled payment under the Senior TIF Note up to the amount of property taxes actually paid by the Senior Developer with respect to the Senior Development Property in such six (6) month period; and (iii) the balance which is to be retained by the Townhome Developer. "Tax Increment" means that portion of the real property taxes paid with respect to the Multifamily Development Property and the Minimum Improvements, or the Townhome Development Property and the Townhome Minimum Improvements, as applicable that is remitted to the City as tax increment pursuant to the Tax Increment Act. "Tax Increment Act" means the Tax Increment Financing Act, Minnesota Statutes, Sections 469.174-469.179, as amended and as it may be further amended from time to time. "Tax Increment District" means the City'.s Tax Increment Financing District No. 1-3. "Tax Increment Plan" means the tax increment fmancing plan adopted by the City in connection with its creation of the Tax Increment District, which plan together with the information and findings contained therein is hereby incorporated herein and made a part hereof by reference. "Title Company" means Commercial Partners Title LLC. "Townhome Available .Tax Increment" means one hundred percent (100%) of the Tax Increment received by the City with respect to the Townhome Development Property in the six (6) month period preceding a Scheduled Payment Date under the Townhome Development Agreement after deducting the City's accumulated actual administrative expenses, as defined in the Act, which shall not exceed the lesser of (i) $5,000 in the six (6) month period, or (ii) an amount equal to ten percent (10%) of the Tax Increment generated in the six (6) month period, which amount is to be retained by the City for administrative purposes. "Townhome Developer" means the Townhomes at Town Square LLC, a Minnesota limited liability company, and its permitted successors and assigns. "Townhome Development Property" means the real property legally described on the attached Schedule D. "Townhome Minimum Improvements" means 14 townhouses for sale to owner- occupants to be built on the Townhome Development Property. "Town Square Site" means the real property depicted on Schedule B attached hereto to be known as "Falcon Heights Town Square" which includes the Multifamily Development Property, the Senior Development Property and the Townhome Development Property. "Unavoidable Delays" means delays in the performance of obligations relating to the construction of the Minimum Improvements due to unforeseeable causes beyond the control of the Multifamily Developer, including but not limited to causes which are the result of acts of God, acts of the public enemy, acts of terrorism, unforeseen adverse weather conditions, strikes, other labor troubles, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, results in delays, acts of any federal, state or local governmental unit, and which directly results in delays, delays in delivery of materials for the Minimum Improvements or soil conditions of the Multifamily Development Property. ARTICLE II Representations Section 2.1. Representations by the City. The City makes the following representations as the basis for the undertaking on its part herein contained: (a) The City is a statutory city under the laws of the State. Under the laws of the State, the City has the power to enter into this Agreement and to perform its obligations hereunder. (b) The City has taken all action necessary to create the Project, the Project Plan, the Tax Increment Plan, the Tax Increment District and to approve this Agreement and to authorize the execution and delivery of this Agreement, the Note and any other documents or instruments required to be executed and delivered by the City pursuant to this Agreement. (c) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the City is now a party or by which it is bound, or constitutes a default under any of the foregoing. (d) There is not pending, nor to the best of the City's knowledge is there threatened, any suit, action or proceeding against the City before any court, arbitrator, administrative agency or other governmental authority that materially and adversely affects the validity of any of the transactions contemplated hereby, the ability of the City to perform its obligations hereunder, or as contemplated hereby or thereby, or the validity or enforceability of this Agreement. (e) The City has received no notice or communication from any local, state or federal official that the activities of the Developers or the City in the Project Area may be or will be in violation of any Environmental Laws. The City is aware of no facts the existence of which would cause it to be in violation of any Environmental Laws. (f) The City has no actual knowledge of any actions, claims, suits, or proceedings pending or threatened against the City or the Town Square Site which relate to any violation or alleged violation of any Environmental Laws. (g) The City will reasonably cooperate with the Developers with respect to any litigation commenced by third parties with respect to the Town Square Site. Section 2.2. Representations by the Multifamily Developer. The Multifamily Developer represents that: (a) The Multifamily Developer is a limited partnership duly organized and authorized to transact business in the State, is not in violation of any provisions of its Certificate of Limited Partnership, its Partnership Agreement or the laws of the State, has power to enter into this Agreement and has duly authorized the execution, delivery and performance of this Agreement by proper action of its General Partner. (b) The Multifamily Developer will construct the Minimum Improvements in accordance with the terms of this Agreement and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations), except for variances necessary to construct the improvements contemplated in the Construction Plans approved by the City. (c) The Multifamily Developer has received no notice or communication from any local, state or federal official that the activities of the Multifamily Developer or the .City in the Project Area may be or will be in violation of any Environmental Laws. The Multifamily Developer is aware of no facts the existence of which would cause it to be in violation of any Environmental Laws. In the event that it is necessary to take any action to obtain any necessary permits or approvals with respect to the Multifamily Development Property under any local, state or federal environmental law or regulation, the Multifamily Developer will be responsible for taking such action and the City agrees to reasonably cooperate with the Multifamily Developer with respect to obtaining any such permits or approvals. (d) The Multifamily Developer will obtain, 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. The City agrees to reasonably cooperate with the Multifamily Developer with respect to obtaining any such permits, licenses and approvals. (e) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the Multifamily Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (f) The Multifamily Developer would not acquire the Multifamily Development Property and construct the Minimum Improvements but for the execution of this Agreement and the tax increment assistance made available under this Agreement. (g) The Multifamily Developer will reasonably cooperate with the City with respect to any litigation commenced by third parties with respect to the Development. ARTICLE III Redevelopment Site Assembly Section 3.1. Acquisition of Restaurant and Snelling Avenue Parcels. The City and the Multifamily Developer acknowledge and agree as follows: 9 (a) The Multifamily Developer has acquired the Restaurant Parcel. (b) The City will exercise, to the extent of its legal authority to do so, its powers of eminent domain to acquire the Snelling Avenue Parcel and the Snelling Avenue Frontage Road - North of Larpenteur and convey the parcels to the Multifamily Developer in consideration of the Multifamily Developer's payment of the Acquisition Costs. The Multifamily Developer shall pay the Acquisition Costs upon receipt of Quit Claim Deeds. Section 3.2. A~cc uisition of Shopping Center Parcel. The Multifamily Developer has used its best efforts to acquire the Shopping Center Parcel directly from its third parry owner pursuant to terms and conditions that are feasible for the redevelopment of the Town Square Site. As of the date of this Agreement, the Multifamily Developer has been unsuccessful in its efforts to acquire the Shopping Center Parcel pursuant to such terms and conditions. The City, therefore, will exercise its powers of eminent domain, to the extent of its legal authority to do so, to acquire the Shopping Center Parcel and convey such parcel to the Multifamily Developer pursuant to this Agreement. Section 3.3. Commencement of Proceeding. The City will proceed to acquire the Shopping Center Parcel, the Snelling Avenue Parcel and the Snelling Avenue Frontage Road - North of Larpenteur as expeditiously as practical. The Multifamily Developer shall pay for all Acquisition Costs with respect to the Shopping Center Parcel, the Snelling Avenue Parcel and the Snelling Avenue Frontage Road -North of Larpenteur. The City acknowledges that time is of the essence and agrees to pursue its acquisition responsibilities in an expeditious manner, including use of the "quick take" condemnation process pursuant to Minnesota Statutes, Section 117.42. The City may take a reasonable time to exhaust settlement before initiating condemnation. Section 3.4. Costs of Acquisition. The Multifamily Developer ~~~::~_~_'>.:~:' ._...._.~.:.',::`°'~~ deposit~~c~~ Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00) with the City to be applied by the City at its discretion to cover Acquisition Costs. To the extent that the deposit is not sufficient to cover all Acquisition Costs, the Multifamily Developer shall pay to the City within fifteen (15) days of written demand by the City, or sooner if the payment is needed to meet any deadline imposed by any statute, regulation, settlement or court order, any additional amount necessary to meet such obligations. Developer will indemnify and hold harmless the City from all Acquisition Costs. Section 3.5. Conveyance of Parcels. Prior to the City taking title to and possession of the Shopping Center Parcel or in any other way obligating itself to acquire the parcel, Multifamily Developer shall pay to the City all Acquisition Costs incurred to date, compensation to be paid to acquire the Shopping Center Parcel and deposit with the City an additional amount to cover future Acquisition Costs which are reasonably identifiable at that time. As soon as possible after the City takes title to and possession of the Shopping Center Parcel and the Snelling Avenue Parcel, the City shall convey title to the Shopping Center Parcel and the Snelling Avenue Parcel to the Multifamily Developer pursuant to Quit Claim Deeds. 10 Section 3.6. Platting of Town Square Site. The Multifamily Developer shall obtain approval of a Plat of the Town Square Site, known as Falcon Heights Town Square, and a Planned Unit Development ("PUD") of such property, all in accordance with City ordinances and procedures. In connection with approval of the Plat, the Multifamily Developer will enter into a PUD Agreement and Construction Development Contract. The parties agree and understand that on or before the Closing Date of the First Mortgage Loan, the Multifamily Developer will (a) close on acquisition of the Shopping Center Parcel, any portion of the Snelling Avenue Parcel required for the Multifamily Development Property and the Restaurant Parcel, (b) file the Plat, and (c) convey portions of the platted property to the Senior Developer and the Townhome Developer, all as further described in this Article. Section 3.7. Convevance of Senior Development Property. The Multifamily Developer will convey the Senior Development Property to the Senior Developer for such consideration as the Multifamily Developer and the Senior Developer mutually agree. Section 3.8. Conveyance of Townhome Development Property. The Multifamily Developer will convey the Townhome Development Property to the Townhome Developer for such consideration as the Multifamily Developer and the Townhome Developer mutually agree. ARTICLE IV Taz Increment and Other Public Assistance Section 4.1. Tax Increment Certification. The City has established the Tax Increment District pursuant to the Tax Increment Act. Section 4.2. Reimbursable Costs. The City acknowledges that the high cost of acquiring the Multifamily Development Property and preparing it for development necessitates the City's provision of certain financial assistance to aid the Multifamily Developer. Therefore, the City agrees that it will reimburse the Multifamily Developer for the Multifamily Developer's payment of Reimbursable Costs of developing the Minimum Improvements. The City's reimbursement of the Multifamily Developer shall be accomplished through the City's issuance and payment of the Note. The Multifamily Developer shall be solely responsible for initial payment of the Reimbursable Costs and all construction work related thereto. The City's sole obligation in such regard shall be to issue the Note at the time stated in this Agreement and to pay the Note in accordance with its terms. Section 4.3. Issuance of Note. The City's shall issue the Note on the Closing Date. The Note shall be substantially in the form of the Multifamily TIF Note attached to this Agreement, with any blanks properly filled in. The Note (i) shall be dated as of the date of its issuance, (ii) shall bear interest at the rate of interest payable on the Developer's First Mortgage Loan plus the applicable mortgage insurance premium to such loan, and (iii) shall show a principal amount sufficient to cover the property taxes actually paid by the Multifamily Developer with respect to the Multifamily Development Property as provided in the Note taking into account the interest rate determined under clause (ii) of this sentence. Interest shall begin to accrue at the later of (a) submission by the Multifamily Developer to the City of invoices and certifications in such form 11 as the City may reasonably require, demonstrating that the Multifamily Developer has paid the Reimbursable Costs, and (b) January 1, 2005. The term of the Note shall coincide with the term of the Tax Increment District. Section 4.4. Conditions Precedent. The City's obligation to issue the Note shall be subject to satisfaction, or waiver in writing by the City, of all of the following conditions precedent: (a) the Multifamily Developer shall not be in default under the terms of this Agreement; (b) the Multifamily Developer shall have secured all governmental permits and approvals, including building permits, necessary to construct and operate the Minimum Improvements; (c) the Multifamily Developer shall have obtained and submitted to the City acceptable evidence of ability to finance the Minimum Improvements as required under Section 7.1 of the Agreement; and (d) The Multifamily Developer shall have submitted to the City and the City shall have approved Construction Plans for the Minimum Improvements pursuant to Section 5.3 of this Agreement. Section 4.5. Developer Acknowledgement. The Multifamily Developer acknowledges that the City has made no warranties or representations to the Multifamily Developer as to the amounts of Tax Increment that will be generated or that the Tax Increment pledged to the payment of the Note will be sufficient to pay the Note in whole or in part. Nor is the City warranting that it will have throughout the term of this Agreement and the Note the continuing legal ability under State law to apply Tax Increment to the payment of the Note, which continued legal ability is a condition precedent to the City's obligations under the Note. Section 4.6. Assignment. The Multifamily Developer intends to assign the Note to the First Mortgage Lender and HLTD. The City agrees to cooperate with the Multifamily Developer in connection with such assignment, including the execution of such assignment documents as are required by the First Mortgage Lender or HUD. Section 4.7. Real Properiy Taxes; Special Assessments. The Multifamily Developer shall pay all ad valorem taxes and special assessments levied on the Multifamily Development Property which are payable subsequent to the date Developer acquires title to the Multifamily Development Property and prior to the Maturity Date. Section 4.8. Other Public Assistance. The City agrees to cooperate and assist the Multifamily Developer in obtaining any fmancing for the Development in addition to the financing provided by the City pursuant to this Agreement. 12 ARTICLE V Construction of Minimum Improvements Section 5.1. Construction of Minimum Improvements The Multifamily Developer agrees that it will construct the Minimum Improvements on the Multifamily Development Property in substantial conformity with the approved Construction Plans and will 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 5.2. Preliminary Plans. The City and the Multifamily Developer acknowledge that before the date of this Agreement the Multifamily Developer submitted to the City Preliminary Plans for the Minimum Improvements. The Preliminary Plans have been reviewed and approved by the City. Section 5.3. Construction Plans. The Multifamily Developer shall deliver the Construction Plans for the Minimum Improvements to the City. The City shall review the Construction Plans and will deliver to the Multifamily Developer within fifteen (15) days after receipt of the Construction Plans, a written statement approving the Construction Plans or a written statement rejecting the Construction Plans and specifying the deficiencies in the Construction Plans. If the City rejects the Construction Plans, in whole or in part, the . Multifamily Developer will submit new or corrected Construction Plans within fifteen (15) days after written notification to the Multifamily Developer of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans will continue to apply until the Construction Plans have been approved by the City. The City's approval of the Construction Plans shall not be unreasonably withheld, conditioned or delayed. Section 5.4. Changes to Plans. If the Multifamily Developer desires to make any changes in any Construction Plans after their approval by the City, .the Multifamily Developer shall submit the proposed change to the City for its approval provided that no approval shall be required if the aggregate amount of such changes do not alter the construction cost for the Development by an increase or decrease of more than ten percent (10%) and if such change is not otherwise required to be submitted to the City pursuant to City law and ordinances or pursuant to any agreement entered into in connection with the City's planned unit development approval. The City's approval of changes pursuant to this Agreement will not be unreasonably withheld, conditioned or delayed. If the Construction Plans, as modified by the proposed change, are acceptable to the City, the City shall approve the proposed change and notify the Multifamily Developer in writing of its approval. Any requested change in the Construction Plans shall, in any event, be deemed approved by the City unless rejected, in whole or in part, by written notice by the City to the Multifamily Developer, setting forth in detail the reasons therefor. Such rejection shall be made within ten (10) days after receipt of the notice of such change. Section 5.5. Commencement and Completion of Construction Subject to Unavoidable Delays, the Multifamily Developer shall commence construction of the Minimum Improvements within thirty (30) days after the Closing Date and complete such construction within twenty four (24) months after commencement. All work with respect to the Minimum Improvements to be 13 constructed or provided by the Multifamily Developer on the Multifamily Development Property shall be in substantial conformity with the Construction Plans as submitted by the Multifamily Developer and approved by the City, subject to changes permitted under Section 5.4. Section 5.6. Certificate of Completion. The Multifamily Developer shall notify the City when construction of the Minimum Improvements has been substantially completed. The City shall promptly .inspect the Minimum Improvements in order to determine whether such Minimum Improvements have been constructed in substantial conformity with the approved Construction Plans. If the City determines that the Minimum Improvements have not been constructed in substantial conformity with the approved Construction Plans, the City shall deliver a written statement to the Multifamily Developer indicating in adequate detail the specific respects in which the Minimum Improvements have not been constructed in substantial conformity with the approved Construction Plans and Developer shall promptly remedy such deficiencies. Promptly upon determining that the Minimum Improvements have been constructed in substantial conformity with the approved Construction Plans, the City will fizrnish to the Multifamily Developer a Certificate of Completion certifying the completion of the Minimum Improvements. The Certificate of Completion issued for the Minimum Improvements shall conclusively satisfy and terminate the agreements and covenants of the Multifamily Developer in this Agreement to construct the Minimum Improvements. The Multifamily Developer shall cause the Certificate of Completion to be recorded in the proper office for recordation of deeds and other instruments pertaining to the Multifamily Development Property. Section 5.7. Zoning and Permitting. Nothing in this Agreement shall be deemed to excuse the Multifamily Developer from complying with the City's normal zoning and , construction permitting process as it relates to the development of the Minimum Improvements. ARTICLE VI Insurance and Condemnation Section 6.1. Insurance. (a) The Multifamily Developer will provide and maintain or cause to be provided and maintained at all times during the process of constructing the Minimum Improvements and, from time to time at the request of the City, furnish the City with proof of payment of premiums on: (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 Minimum Improvements at the date of completion, and with coverage available in nonreporting form on the so called "all risk" form of policy; (ii) General liability insurance (including operations, contingent liability, operations of subcontractors, completed operations, Broadening Endorsement including contractual liability insurance) with limits against bodily injury and property damage of not less than $2,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used); and 14 (iii) Worker's compensation insurance, with statutory coverage and employer's liability protection. (b) After completion of construction of the Minimum Improvements, the Multifamily Developer shall maintain, or cause to be maintained, at its cost and expense, and from time to time at the request of the City shall furnish proof of the payment of premiums on, insurance as follows: (i) Insurance against loss and/or damage to the Minimum Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses, including (without limiting the generality of the foregoing) fire, extended coverage, all risk vandalism and malicious mischief, boiler explosion, water damage, demolition cost, debris removal, and collapse in an amount not less than the full insurable replacement value of the Minimum Improvements, but any such policy may have a .deductible amount of not more than $25,000. No policy of insurance shall be so written that the proceeds thereof will produce less than the minimum coverage required by the preceding sentence, by reason of co-insurance provisions or otherwise, without the prior consent thereto in writing by the City. The term "full insurable replacement value" shall mean the actual replacement cost of the Minimum Improvements (excluding foundation and excavation costs and costs of underground flues, pipes, drains and other uninsurable items) and equipment, and shall be determined from time to time at the request of the City, but not more frequently than once every three years, by an insurance consultant or insurer, selected and paid for by the Multifamily Developer and approved by the City. (ii) Comprehensive general public liability insurance, including personal injury liability (with employee exclusion deleted), and automobile insurance, including owned, non-owned and hired automobiles, against liability for injuries to persons and/or property, in the minimum amount for each occurrence and for each year of $2,000,000.00. (iii) Such other insurance, including worker's compensation insurance respecting all employees of the Multifamily Developer, in such amount as is customarily carried by like organizations engaged in like activities of comparable size and liability exposure; provided that the Multifamily Developer may be self-insured with respect to all or any part of its liability for worker's compensation. (c) The policies of insurance required pursuant to Subsections (a) and (b) above shall be in form and content satisfactory to the City and shall be placed with financially sound and reputable insurers licensed to transact business in the State, the liability insurer to be rated A or better in Best's Insurance Guide and shall contain an agreement of the insurer to give not less than thirty (30) days' advance written notice to the City in the event of cancellation of such policy or change affecting the coverage thereunder and shall name the City as an additional named insured or loss payee, as appropriate. (d) The Multifamily Developer agrees to notify the City promptly in the case of damage exceeding $25,000 in amount to, or destruction of, the Minimum Improvements or any 15 portion thereof resulting from fire or other casualty. In the event of any such damage, the Multifamily Developer will forthwith repair, reconstruct and restore the Minimum Improvements to substantially the same or an improved condition or value as existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration, the Multifamily Developer will apply the proceeds of any insurance relating to such damage received by the Multifamily Developer to the payment or reimbursement of the costs thereof. Any insurance proceeds remaining after completion of such repairs, construction and restoration shall be remitted to the Multifamily Developer. (e) The City agrees that any interest on its part by virtue of this Agreement in the application or receipt of any proceeds of insurance under the policies required by subsections (a)(i) or (b)(i) above shall be subordinate to the interest of the Multifamily Developer's lenders of financing for the construction of the Minimum Improvements. Section 6.2. Condemnation. In the event that title to and possession of the Minimum Improvements or any material part thereof shall be taken in condemnation or by the exercise of the power of eminent domain by any governmental body or other person, the Multifamily Developer shall, with reasonable promptness after such taking, notify the City as to the nature and extent of such taking. Upon receipt of any condemnation award, the Multifamily Developer shall elect to either: (a) use the entire condemnation award to reconstruct the Minimum Improvements (or, in the event only a part of Minimum Improvements have been taken, then to reconstruct such part) within the Tax Increment District; or (b) retain the condemnation award whereupon in the event that a substantial portion of the Multifamily Development Property and Minimum Improvements have been taken, the City's obligations under the Note shall be terminated. ARTICLE VII Mortgage Financing Section 7.1. Mortgage Financing Prior to the issuance of the Note to the Multifamily Developer, the Multifamily Developer shall provide to the City evidence that the Multifamily Developer has secured or will secure financing sufficient for construction of the Minimum Improvements. If the City finds that the evidence is acceptable, then the City shall notify the Multifamily Developer in writing of its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within fourteen (14) days from the date when the City is provided the evidence. If the City rejects the evidence as inadequate, it shall do so in writing specifying the basis for the rejection. In any event, the Multifamily Developer may resubmit adequate evidence that it has secured or will secure financing after such rejection. Section 7.2. Mortgagee's Option to Cure Events of Default. Upon the occurrence of an Event of Default under this Agreement, the City agrees to use its best efforts to provide the mortgagee under any Mortgage with written notice of such Event of Default and such mortgagee shall have the right, at its option, to cure or remedy such Event of Default; provided, that a failure to give such notice shall not impair the City to exercise any remedy available to it as a result of such Event of Default. 16 Section 7.3. Subordination of Agreement. In order to facilitate the obtaining of fmancing for the construction of the Minimum Improvements, the City agrees that it will consider and agree to reasonable requests to subordinate its rights with respect to the Multifamily Development Property and the Minimum Improvements to the rights of the Multifamily Developer's lenders under their loan documents. ARTICLE VIII Prohibitions Against Assignment and Transfer, Indemnification Section 8.1. Prohibition Against Transfer of Development Property and Assi~mnent of Agreement. The Multifamily Developer represents and agrees that the Multifamily 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, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Multifamily Development Property (except for leases of residential units or leases of retail space, assignments or encumbrances in favor of a lender providing construction or permanent financing for the Minimum Improvements, or easements or other encumbrances necessary for the Development) or any part thereof or any interest herein or therein, or any contract or agreement to do any of the same, without the prior written approval of the City, which approval shall not be unreasonably withheld or delayed. No assignment or transfer shall relieve the Multifamily Developer of any liability under this Agreement unless the City agrees in writing to such release. The restrictions on transfer and encumbrance of the Multifamily Development Property set forth in this Section shall terminate with respect to the Minimum Improvements on the expiration of the term of this Agreement. Section 8.2. Release and Indemnification Covenants. (a) The Multifamily Developer releases from and covenants and agrees that the City and the governing body members, officers, agents, servants and employees thereof (referred to for purposes of this Section collectively as 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, except to the extent caused by the negligence, gross negligence, willful misrepresentation or any willful or wanton misconduct of the Indemnified Parties. (b) Except when caused by any negligence, gross negligence, willful misrepresentation or any willful or wanton misconduct of the Indemnified Parties, the Multifamily Developer agrees to protect and defend the Indemnified Parties, 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 arising or purportedly arising from this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Minimum Improvements. (c) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and 17 obligations of the City and not of any governing body member, officer, agent, servant or employee of the City in the individual capacity thereof. ARTICLE IX Events of Default Section 9.1. Events of Default Defined. The term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides), any failure by Developer or the City to substantially observe or perform any material covenant, condition, obligation or agreement on its part to be observed or performed hereunder. Section 9.2. Citv's Remedies on Default. Whenever any Event of Default by Developer occurs, the City may take any one or more of the following actions after providing thirty (30) days written notice to the Multifamily Developer of the Event of Default, but only if the Event of Default has not been cured within said thirty (30) days, provided, however, that if such Event of Default is by its nature incapable of cure within thirty (30) days if the Multifamily Developer provides to the City evidence, reasonably acceptable to the City, that the Event of Default will be cured and will be cured as soon as reasonably possible, then the Multifamily Developer shall have such additional time as is reasonably necessary to cure such Event of Default but only so long as the Multifamily Developer is diligently pursuing such cure: (a) Suspend its performance of the City's obligations under this Agreement and the Note until the Event of Default is cured. If the City suspends its performance of its obligation to make payments due under the Note, the City shall make the suspended payments to the Multifamily Developer within five (5) business days following the Multifamily Developer's cure of the Event of Default. The City is not obligated to invest any amounts the City retains as a result of the City's suspension of its performance of its obligation to make payments under the Note, and is not obligated to pay Developer interest on the amount of the suspended payments between the date the payment is suspended and the date the City makes the suspended payment to the Multifamily Developer. (b) Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to the City to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the Multifamily Developer under this Agreement. (c) If Developer defaults on its obligation to pay Acquisition Costs under Article III, the City may abandon the condemnation proceeding. Any costs incurred by the City, including any amounts the City is obligated to pay to owners named in the condemnation petition or other individuals or entities for attorneys fees, appraisal fees, relocation payments and other costs shall be considered Acquisition Costs. Section 9.3. Developer's Remedies on Default. Whenever any Event of Default by City occurs, the Multifamily Developer may take whatever action, including legal, equitable or administrative action (including an action for specific performance), which may appear 18 necessary or desirable to the Multifamily Developer to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the City under this Agreement after providing thirty (30) days written notice to the City of the Event of Default, but only if the Event of Default has not been cured within said thirty (30) days, provided, however, that if such Event of Default is by its nature incapable of cure within thirty (30) days if the City provides to the Multifamily Developer evidence, reasonably acceptable to the Multifamily Developer, that the Event of Default will be cured and will be cured as soon as reasonably possible, then the Multifamily Developer shall have such additional time as is reasonably necessary to cure such Event of Default but only so long as the City is diligently pursuing such cure. Section 9.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to the City or Developer 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. In order to entitle the City or the Multifamily Developer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article IX. Section 9.5. No Additional Waiver Im lip ed by One Waiver. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 9.6. Costs of Enforcement. Whenever any Event of Default by the Multifamily Developer occurs and the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement of performance or observance of any obligation or agreement on the part of the Multifamily Developer under this Agreement, the Multifamily Developer agrees that it shall be liable for the reasonable fees of such attorneys and such other reasonable expenses so incurred by the City. ARTICLE X Additional Provisions Section 10.1. Representatives Not Individually Liable. No member, official, or employee of the City shall be personally liable to the Multifamily Developer, or any successor in interest, in the event of any default or breach or for any amount which may become due to Developer or its successor or on any obligations under the terms of the Agreement. Section 10.2. 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. 19 Section 10.3. Notices and Demands Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by .registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and (a) in the case of the Multifamily Developer, is addressed to or delivered personally to the Multifamily Developer at 233 Park Avenue South, Suite 201, Minneapolis, Minnesota 55415; and (b) in the case of the City, is addressed to or delivered personally to the City at City Hall, 2077 West Larpenteur Avenue, Falcon Heights, Minnesota 55113. or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. Section 10.4. Disclaimer of Relationships Nothing contained in this Agreement nor any act by the City or the Multifamily Developer shall be deemed or construed by any person to create any relationship of third-party beneficiary, principal and agent, limited or general partner, or joint venture among the City, the Multifamily Developer, and/or any third party. Section 10.5. Modifications. This Agreement may be modified solely through written amendments hereto executed by the Multifamily Developer and the City. Section 10.6. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 10.7. Judicial Interpretation. Should any provision of this Agreement require judicial interpretation, the court interpreting or construing the same shall not apply a presumption that the terms hereof shall be more strictly construed against one party by reason of the rule of construction that a document is to be construed more strictly against the party who itself or through its agent or attorney prepared the same, it being agreed that the agents and attorneys of both parties have participated in the preparation hereof. Section 10.8. Business Subsidy Agreement. The City has held a public hearing on the provision of a business subsidy to the Multifamily Developer as required by Minnesota Statutes, Sections 116J.993 to 116J.995. After the public hearing the City found that there are no wage or job goals required of the Multifamily Developer because the primary purpose of the City in assisting the Multifamily Developer's development is to eliminate blighted and deteriorating improvements on the subject property and to provide affordable housing for low and moderate income persons and their families, and not for the purposes of job creation or retention. Notwithstanding the foregoing, at the time of conveyance of the Shopping Center Parcel to the Multifamily Developer, the Multifamily Developer shall enter into the Business Subsidy Agreement to satisfy the other requirements of the law. Section 10.9. Term. The term of this Agreement shall be effective from the day and year first above written until the Maturity Date. `, 20 Section 10.10. Park Dedication Fee. The Multifamily Developer agrees to pay to the City $150,000.00 as the Park Dedication Fee applicable to the following three developments known as the Town Square Project: (1) the Multifamily Development to be constructed on real property legally described as Lot 1, Block 1, Falcon Heights Town Square Second Addition; (2) the Senior Development to be constructed on real property legally described as Lot 1, Block 1, Falcon Heights Town Square; and (3) the Townhome Development to be constructed on real property legally described as Lot 2, Block 1, Falcon Heights Town Square. The Park Dedication Fee will be paid in two installments: $75,000.00 will be paid on the closing date of the first mortgage loan for the portion of the Town Square Project commonly referred to as the Multifamily Development; and $75,000.00 will be paid on December 31, 2005. ARTICLE XI HUD Requirements Section 11.1. Subordination. Notwithstanding anything in this document to the contrary, except the requirements in 26 U.S.C. 42(h)(6)(E)(ii), the provisions hereof are expressly subordinate to the promissory note dated as of , 200_, given by Developer to Glaser Financial Group, Inc. (the "HUD Note"), the mortgage securing the HUD Note (the "HUD Mortgage"), the regulatory agreement executed in connection with the HUD Note (the "HUD Regulatory Agreement") (collectively, the "HUD Loan Documents"), and subordinate to all applicable HUD mortgage insurance (and Section 8, if applicable) regulations and related administrative requirements. In the event of any conflict between the provisions of this document and the provisions of applicable HUD regulations, related HUD administrative requirements, or HUD Loan Documents, the HUD regulations, related administrative requirements or HUD Loan Documents shall control. Section 11.2. Foreclosure. In the event of foreclosure of the HUD Mortgage or transfer of title by deed in lieu of foreclosure, any and all land use covenants contained herein shall automatically terminate (except that the requirements set out in 26 U.S.C. 42(h)(6)(E)(ii) that for three (3) years low income tenants may not be evicted and their rents may not be raised may remain on the Proj ect, as defined in the HUD Note. Section 11.3. Default. Failure to comply with the land-use covenants contained herein will not serve as basis for default on the HUD Mortgage. Section 11.4. Covenants. The covenants contained herein are not included in any of the HUD Loan Documents. Section 11.5. Enforcement. Enforcement of the covenants herein will not result in any claim against the Project, the proceeds from the HUD Mortgage, any reserve or deposit required by HUD in connection with the mortgage transaction, or the rents or other income and the Property other than from available Surplus Cash, as defined in the HUD Regulatory Agreement. 21 Section 11.6. Amendment. So long as the Development is subject to a mortgage insured or held by HUD, any subsequent amendment to this document is subject to prior written HUD approval of such amendment. Section 11.7. No Action. No action shall be taken in accordance with the rights granted herein, or prohibiting the Multifamily Developer from taking any action, except in strict accordance with the National Housing Act, applicable mortgage insurance regulations, HUD Loan Documents, or if applicable, Section 8 of the U.S. Housing Act of 1937 and the regulations thereunder. Section 11.8. Covenant. The Multifamily Developer warrants that the covenants contained herein do not conflict with any applicable HUD mortgage insurance regulation of Section 8 of the U.S. Housing Act of 1937 and the regulations thereunder. [The remainder of this page has been left blank intentionally. Signature pages follow.] C, 22 SIGNATURE PAGE TO AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and the Multifamily Developer has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. CITY OF FALCON HEIGHTS By Susan L. Gehrz, Mayor By Heather M. Worthington City Administrator/Clerk STATE OF MINNESOTA ) SS. COUNTY OF RAMSEY ) The foregoing instrument was acknowledged before me this day of by Susan L. Gehrz and by Heather M. Worthington, respectively the Mayor and City Administrator/Clerk of the City of Falcon Heights, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public • 23 SIGNATURE PAGE TO AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and the Multifamily Developer has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP STATE OF MINNESOTA COUNTY OF HENNEPIN By: Sherman Associates, Inc. Its: General Partner By George E. Sherman Its President SS. The foregoing instrument was acknowledged before me this day of by George E. Sherman, the President of Sherman Associates, Inc., a Minnesota corporation, the General Partner of Falcon Heights Town Square Limited Partnership, a Minnesota limited partnership, on behalf of the limited partnership. Notary Public • • • 24 SCHEDULE A TO AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP Legal Description of Multifamily Development Property Real property situated in Ramsey County, Minnesota, legally described as follows: Outlot A, FALCON HEIGHTS TOWN SQUARE • • SCHEDULE B TO AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP Site Plan for Falcon Heights Town Square (See Attached) • • SCHEDULE C TO AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP Legal Description of Senior Development Property Real property situated in Ramsey County, Minnesota, legally described as follows: Lot 1, Block 1, FALCON HEIGHTS TOWN SQUARE • SCHEDULED TO AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP Legal Description of Townhome Development Property Real property situated in Ramsey County, Minnesota, legally described as follows: Lot 2, Block 1, FALCON HEIGHTS TOWN SQUARE • • SCHEDULE E TO AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP BUSINESS SUBSIDY AGREEMENT THIS AGREEMENT, made on or as of the day of , by and between the City of Falcon Heights, a Minnesota municipal corporation (hereinafter referred to as the "City"), and Falcon Heights Town Square Limited Partnership, a Minnesota limited partnership (hereinafter referred to as the "Multifamily Developer"). WHEREAS, the Multifamily Developer and the City have entered into an Amended and Restated Development Agreement dated effective as of January 7, 2004 (the "Contract") pursuant to which the Multifamily Developer has agreed to construct a mixed use residentiaUcommercial development within the City; and WHEREAS, in order to induce the Multifamily Developer to undertake such development, the City has agreed in the Contract to provide certain assistance to the Multifamily Developer by reimbursing the Multifamily Developer for certain costs of preparing such property for construction of the development; and WHEREAS, Minnesota Statutes, sections 116J.993 to 116J.995, rovides that a P government agency that provides financial assistance for certain purposes must enter into a business subsidy agreement setting forth goals to be met and the financial obligations of the recipient of the assistance if the goals are not met; and WHEREAS, the City Council of the City has held a public hearing concerning the assistance to be provided to the Multifamily Developer and has determined that the goals sought to be accomplished by assisting the Multifamily Developer do not include wage and job goals; and WHEREAS, the City and the Multifamily Developer agreed in the Contract that they would enter into this Business Subsidy Agreement to satisfy the requirement of sections 116J.993 to 116J.995. 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 . Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Act" means Minnesota Statutes, Sections 116J.993-.995. "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Benefit Date" means the earlier of: (i) the date that the Commercial Component of the Improvements is completed; or (ii) the date that the Commercial Component of the Improvements is first occupied. "City" means the City of Falcon Heights, Minnesota. "Commercial Component" means that portion of the Improvements consisting of approximately 12,000 square feet of retail space. "Contract" means the Amended and Restated Development Agreement between the City and the Multifamily Developer dated effective as of January 7, 2004. "Multifamily Developer" means Falcon Heights Town Square Limited Partnership, a Minnesota limited partnership, its successors and assigns, or any future owners of the Multifamily Development Property. "Multifamily Development Property" means the real property described as such in the Contract. • "Improvements" means the construction by the Multifamily Developer of a cornmerciaUresidential development pursuant to the Contract. "State" means the State of Minnesota. "Subsidy" means the tax increment financing assistance provided to the Multifamily Developer under the Contract and which is attributable to the Commercial Component; provided, that the amount of the Subsidy at any particular time shall not exceed the amount that has been actually paid to the Multifamily Developer. ARTICLE II Job and Wage Goals; Required Provisions Section 2.1. Embloyment and Wage Requirements. The City has determined that no wage and job goals will be imposed on the Multifamily Developer. Section 2.2. Re .torts. The Multifamily Developer agrees that it will provide to the City and any other authorized agency all reports required by the Act. Such reports shall be submitted at the times required by the Act. • • Section 2.3. Continuing Obli ation. The Multifamily Developer agrees that it will continuously operate the Commercial Component of the Improvements for a period of at least five (5) years from the Benefit Date. Section 2.4. Required Provisions. The following provisions are required by the Act: (a) The Subsidy is being provided for the public purposes of developing redeveloping property containing substandard buildings and improvements. The Subsidy is necessary to offset the high costs associated with acquiring the Multifamily Development Property and preparing it for development. Absent the Subsidy, redevelopment of the Multifamily Development Property would not be economically feasible. (b) The Subsidy is being financed with tax increment generated from the City's Tax Increment Financing District No. 1-3, a redevelopment tax increment district. ARTICLE III Default Section 3.1. Defaults Defined. It shall be a default under this Agreement if the Multifamily Developer fails to comply with any term or provision of this Agreement, and fails to cure such failure within thirty (30) days after written notice to the Multifamily Developer of the default, but only if the default has not been cured within said thirty (30) days. Section 3.2. Remedies on Default. The parties agree that the Subsidy is a forgivable loan, repayable only if the Multifamily Developer fails to fulfill its obligations under section 2.3 of this Agreement. Upon the occurrence of a failure to continue operations as required by Section 2.3 the Multifamily Developer shall repay to the City upon written demand from the City a "pro rata share" of the Subsidy and interest on the Subsidy at the implicit price deflator as defined in Minnesota Statutes, Section 275.50, subd. 2, accrued from the Benefit Date. The term "pro rata share" means sixty (60) less the number of months of operation (where any month in which the Improvements are in operation for at least fifteen (15) days constitutes a month of operation), commencing on the Benefit Date and ending with the date the Multifamily Developer ceases operation as reasonably determined by the City, divided by 60. Section 3.3. Costs of Enforcement. Whenever any default occurs under this Agreement and the City shall employ attorneys or incur other expenses for the collection of payments due or for the enforcement of performance or observance of any obligation or agreement on the part of the Multifamily Developer under this Agreement, the Multifamily Developer shall be liable to the City for the reasonable fees of such attorneys and such other expenses so incurred by the City. • ARTICLE IV . Miscellaneous Section 4.1. Provisions of Agreement Not Affected. Except as expressly provided herein, this Agreement is not intended to modify or limit in any way the terms of the Contract. Section 4.2. 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. Section 4.3. Modifications. This Agreement may be modified solely through written amendments hereto executed by the Multifamily Developer and the City. Section 4.4. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 4.5. Judicial Interpretation. Should any provision of this Agreement require judicial interpretation, the court interpreting or construing the same shall not apply a presumption that the terms hereof shall be more strictly construed against one party by reason of the rule of construction that a document is to be construed more strictly against the party who itself or through its agent or attorney prepared the same, it being agreed that the agents and attorneys of both parties have participated in the preparation hereof. The City and Multifamily Developer agree that this Agreement is intended to satisfy the requirements of the Act, which is incorporated herein and made a part hereof by reference. In the event that any provision of this Agreement conflicts with the terms of the Act, the terms of the Act shall govern. • • IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and the Multifamily Developer has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. CITY OF FALCON HEIGHTS By Susan L. Gehrz, Mayor By Heather M. Worthington City Administrator/Clerk STATE OF MINNESOTA ) SS. COUNTY OF RAMSEY ) • The foregoing instrument was acknowledged before me this day of by Susan L. Gehrz and by Heather M. Worthington, respectively the Mayor and City Administrator/Clerk of the City of Falcon Heights, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public COUNTY OF HENNEPIN ) STATE OF MINNESOTA FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP By: Sherman Associates, Inc. Its: General Partner By George E. Sherman Its President SS. The foregoing instrument was acknowledged before me this day of by George E. Sherman, the President of Sherman Associates, Inc., a Minnesota corporation, the General Partner of Falcon Heights Town Square Limited Partnership, a Minnesota limited partnership, on behalf of the limited partnership. Notary Public SCHEDULE F • TO AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP CERTIFICATE OF COMPLETION WHEREAS, the City of Falcon Heights, a Minnesota municipal corporation (hereinafter referred to as the "City"), and Falcon Heights Town Square Limited Partnership, a Minnesota limited partnership (hereinafter referred to as the "Multifamily Developer") by an Amended and Restated Development Agreement dated January 7, 2004 (the "Agreement"), has assisted Multifamily Developer in the financing of the Minimum Improvements (as defined in the Agreement) constructed upon the following described land in the County of Ramsey, State of Minnesota (the "Multifamily Development Property"): Lot 1, Block 1, Falcon Heights Town Square Second Addition; and WHEREAS, the Agreement contained certain covenants and conditions and the Multifamily Developer has fully and duly performed all of said covenants and conditions insofar as the Multifamily Developer is able; and WHEREAS, the issuance of this Certificate of Completion by the City is not intended nor shall it be construed to be a warranty or representation by the City as to the structural soundness of the improvements, quality of materials, workmanship or the fitness of the improvements for their proposed use; and NOW, THEREFORE, this is to certify that all building construction and other physical improvements specified to be done and made by the Multifamily Developer under the Agreement have been completed and all of the covenants and conditions in the Agreement relating thereto have been duly and fully performed by the Multifamily Developer therein and that the provisions of the Agreement in favor of the City therein are hereby released absolutely and forever insofar as it applies to the construction of the Minimum Improvements on the Multifamily Development Property, and the County Recorder and the Registrar of Titles, as applicable, in and for the County of Ramsey, State of Minnesota is hereby authorized to accept for recording and to record this instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions regarding the construction of the Minimum Improvements on the Multifamily Development Property as provided in the Agreement. IN WITNESS WHEREOF, the City has caused this Certificate to be duly executed in its name and behalf on or as of the day of , 200_. Cl CITY OF FALCON HEIGHTS By Susan L. Gehrz, Mayor By Heather M. Worthington City Administrator/Clerk STATE OF MINNESOTA ) SS. COUNTY OF RAMSEY ) • The foregoing instrument was acknowledged before me this day of 200_, by Susan L. Gehrz and by Heather M. Worthington, respectively the Mayor and City Administrator/Clerk of the City of Falcon Heights, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. DRAFTED BY: CAMPBELL KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, MN 55121 Telephone: (651) 452-5000 Notary Public • SCHEDULE G TO AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF FALCON HEIGHTS TAXABLE TAX INCREMENT REVENUE NOTE (FALCON HEIGHTS TOWN SQUARE PROJECT-MULTIFANIILY TIF NOTE) The City of Falcon Heights, Minnesota (the "City"), hereby acknowledges itself to be indebted and, for value received, promises to pay to the order of Falcon Heights Town Square Limited Partnership, a Minnesota limited partnership, or its permitted assigns (the "Owner"), solely from the source, to the extent and in the manner hereinafter provided, the principal amount of this Note, being Dollars ($ .00) (the "Principal Amount"), together with interest thereon at the rate of percent (_%) per annum (the "Rate"). Interest shall begin to accrue on the unpaid principal amount of this Note on January 1, 2005. The amounts due under this Note are payable on June 30 and December 31 of each year commencing on June 30, 2006, and continuing to and including December 31, 2031 (the "Scheduled Payment Dates"). This Note is the note referred to as the i Multifamily TIF Note in that certain Amended and Restated Development Agreement dated as of between the City and the Owner (the "Agreement"). Each payment on this Note is payable in any coin or currency of the United States of America which on the date of such payment is legal tender for public and private debts and shall be made by check or draft made payable to the Owner and mailed to the Owner at its postal address within the United States which shall be designated from time to time by the Owner. The Note is a special and limited obligation and not a general obligation of the City, which has been issued by the City pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Section 469.178, subdivision 4, to aid in financing a "project", as therein defined, of the City consisting generally of defraying certain capital and administrative costs incurred and to be incurred by the City within and for the benefit of its Municipal Development District No. 1 (the "Project"). THIS NOTE IS SPECIAL AND LIMITED AND NOT A GENERAL OBLIGATION OF THE CITY PAYABLE SOLELY OUT OF AVAILABLE TAX INCREMENT, AS DEFINED BELOW, AND NEITHER THE STATE NOR ANY POLITICAL SUBDIVISION THEREOF SHALL BE LIABLE ON THIS NOTE, NOR SHALL THIS NOTE BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN AVAILABLE TAX INCREMENT. • The Scheduled Payment of this Note due on any Scheduled Payment Date is payable solely from and only to the extent that the City shall have received in the six (6) month period preceding such Scheduled Payment Date "Multifamily Available Tax Increment" and/or "Multifamily Supplemental Available Tax Increment". For purposes of this Note, Multifamily Available Tax Increment and Multifamily Supplemental Available Tax Increment with respect to any Scheduled Payment Date shall have the meaning set forth in the Agreement and shall be referred to collectively in this Note as "Available Tax Increment". Available Tax Increment constitutes all or a portion of the tax increment generated in the calendar year of the Scheduled Payment Date with respect to that certain real property described on the attached Exhibit A (hereinafter referred to as the "Property"). The City shall pay on each Scheduled Payment Date to the Owner, the Available Tax Increment received by the City in the six (6) month period preceding such Scheduled Payment Date. To the extent that on the Maturity Date (as defined in the Agreement) after making any Scheduled Payment to be made on such date, the City has not paid the entire Principal Amount and interest due under this Note, this Note shall nonetheless terminate and the City shall have no further obligations hereunder. All payments made by the City under this Note shall be first applied to accrued interest and then to the Principal Amount. The City's obligations herein are subject to the terms and conditions of the Agreement. The City's payment obligations hereunder may be suspended pursuant to Section 9.2 of the Agreement. If the City suspends its performance of its obligation to make payments due under • this Note, the City shall make the suspended payments to the Owner within five (5) business days following the cure of the Event of Default (as defined in the Agreement). The City is not obligated to invest any amounts the City retains as a result of the City's suspension of its performance of its obligation to make payments under this Note, and is not obligated to pay Owner interest on the amount of the suspended payments between the date the payment is suspended and the date the City makes the suspended payment to the Multifamily Developer. This Note shall not be payable from or constitute a charge upon any funds of the City, and the City shall not be subject to any liability hereon or be deemed to have obligated itself to pay hereon from any funds except Available Tax Increment, and then only to the extent and in the manner herein specified. The Owner shall never have or be deemed to have the right to compel any exercise of any taxing power of the City or of any other public body, and neither the City nor any director, commissioner, council member, board member, officer, employee or agent of the City, nor any person executing or registering this Note shall be liable personally hereon by reason of the issuance or registration hereof or otherwise. This Note shall not be transferable or assignable, in whole or in part, by the Owner without the prior written consent of the City. The City hereby consents to the assignment of this Note to the First Mortgage Lender and HUD (as such terms are defined in the Agreement). This ,- Note is issued pursuant to ~ - ~' a. ~. _. ___,. -. , r ....,t -~,w • IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law; and that this Note, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the City of Falcon Heights, by its City Council, has caused this Note to be executed by the manual signatures of the Mayor and the City Administrator/Clerk of the City and has caused this Note to be dated , CITY OF FALCON HEIGHTS By By_ Susan L. Gehrz, Mayor Heather M. Worthington City Administrator/Clerk • EXHIBIT A TO UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF FALCON HEIGHTS TAXABLE TAX INCREMENT REVENUE NOTE (FALCON HEIGHTS TOWN SQUARE PROJECT-MULTIFAMILY TIF NOTE) Legal Description of Development Property Lot 1, Block 1, Falcon Heights Town Square Second Addition Lot 2, Block 1, Falcon Heights Town Square • • SCHEDULE H TO AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN • THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP PLAT OF FALCON HEIGHTS TOWN SQUARE (See Attached) • • SCHEDULE I TO AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP RESTAURANT PARCEL Real property situated in Ramsey County, Minnesota, legally described as follows: Tract A, Registered Land Survey No. 73. SCHEDULE J TO AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP SHOPPING CENTER PARCEL Real property situated in Ramsey County, Minnesota, legally described as follows: Parcel 1: Tracts A through K, Registered Land Survey No. 94. Parcel 2: Tract A, except the North 38.33 feet of the West 70 feet thereof and except the South 51.67 feet of the North 90 feet of the West 73 feet of Tract A, Registered Land Survey No. 2. Parcel 3: The West 506.5 feet except the West 426.5 feet of the South 150 feet of the North 359.5 feet of the Northwest Quarter of the Northwest Quarter of the Northwest Quarter of Section 22, Township 29, Range 23, except public streets and highways. • SCHEDULE K TO AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF FALCON HEIGHTS AND FALCON HEIGHTS TOWN SQUARE LIMITED PARTNERSHIP SNELLING AVENUE PARCEL Real property situated in Ramsey County, Minnesota, legally described as follows: That part of the Westerly 159.5 feet, except the North 49.5 feet thereof, of the Northwest Quarter of the Northwest Quarter of Section 22, Township 29 North, Range 23 West, Ramsey County, Minnesota, lying Northerly of the Westerly extension of the Southerly line of Tract A, Registered Land Survey Number 2; which lies Easterly of Line 1 described below: Line 1. Commencing at the Northwest corner of said Section 22; thence run Easterly along the North line thereof on an azimuth of 88 degrees 48 minutes 49 seconds for 159.53 feet; thence on an azimuth of 179 degrees 53 minutes 31 seconds for 89.90 feet to the point of beginning of Line 1 to be described; thence on an azimuth of 269 degrees 53 minutes 31 seconds for 39.50 feet; thence on an azimuth of 179 degrees, 53 minutes 31 seconds for 550.89 feet and there terminating. • L~ ~, - ...~.. ~.,_._ _J S ...1°i~~i t~ ~/..~ ~ 'Y.~..y"v"+ k.~.s ~~.,.~„ ~{ `~. F "~.C~ f Ri % 4.~ '~ I ^,'.. ~~ t'3~~1L~~~~' SIIT~;'~c;C.t ~2;. .~21"'`~~',' ~~f?~i1?~>' l~•`i;IiS1~ S~'!1:t1, i~,'~:~i~x`w- (.~4:i'~s"1L"fit!. r~~ ~t~1~C~~x~` ,,r ,. !„ ~. ,C~L~ F `S., `? k~` 3.14". ~ i. -~"iR :. ) ~.~ ~.~~ 3... 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Fit ~ "~'.;r~'. ~~.° S. ., ~3«<+,.~..z +(-}i Sc'1.7tj~ ~it~,CTiGI"E ! ~, 1~1i. ~,:F"1_ i~.~.1S+I1?.11;~.1 1~~~ its C1.C,;.?1'E;€~' ~i .ltltt?1:~I1~t; `~~ ;~,1E;CG~`I3C:~.5 IL3t.•(3~.(,:`. zC:C;I iS.li.I7.C~ CAP 2.t? ?ZI~?1ttt.~~ :}3..~°~~ G~~'~IGE::9 .J .7 ;~"l_t?sl-1TE%S ? tl :~:.'w~vzJa_l:s .Li~1 ~-°-~'/.C?"t .~~E'.i, 11_>E;~.C~ C3I1 4~ti c~~'111?L1L~1 C7~ ~~p~ C~.~ni'~~S ~, 121t22ti1~S W'.`<'s' S~Ct~x"}.CI:S ~i?1; ;~~.~J t~~t' ~:~.1C,`I"lC~ :?~ ~l?1 fLtiz?'a?li.i~i C)d__:>{~ L?~TIt'-~; ~~r 1?"?i??13.~~5 m~~s' ?(~;01"1fES iJt ~,~~,(}()(1 I'°~?~ El.t1C~ 1~"s~1'~' • • ~0 1 • Association of Metropolitan Municipalities December 30, 2003 Ms. Heather Worthington Administrator 2077 West Larpenteur Avenue . Falcon Heights, MN 55113-5594 Dear Heather: Enclosed please find an invoice for your city's 2004 AMM membership dues. As we noted in our preliminary dues notice this past summer, the AMM Board of Directors has reduced our 2004 operating budget and frozen member dues at their 2003 level in an effort to respond to these challenging economic times. Your continued membership and participation in AMM is greatly appreciated. During 2004, AMM will be focusing its legislative efforts on the state budget, spending and expenditure limits including levy limits, transportation funding and regional government issues. At the regional level, we will be closely monitoring the Metropolitan Council's work developing the four policy plans that coincide with the 2030 Framework. Again, thank you for your continued membership. If you have any questions or if we can. be of assistance at any time throughout the year, please don't hesitate to call me at (651) 215 - 4001. Sincerely, ~~~ Eugene Ranieri Executive Director • 145 University Avenue West Saint Paul, Minnesota 55103-2044 Telephone: (651) 215-4000 Fax: (651) 281-1299 E-mail: amm@amm145.org Association of Metropolitan Municipalities (AMM) 145 University Ave W, St. Paul, MN 55103-2044 Phone: 651-215-4000 SOLD TO Account # 218 Phone: 651-644-8675 Heather Worthington c/o Falcon Heights 2077 W Larpenteur Ave Falcon Heights, MN 55113-5594, USA Sales Order #595 i SHIP TO Phone: 651-644-8675 Heather Worthington c/o Falcon Heights 2077 W Larpenteur Ave Falcon Heights, MN 55113-5594, USA Date Ordered: 12/30/2003 Account Terms: Net 30 Shipper: Due Date: 01/30/2004 Tag Status: Taxable Salesperson: Laurie Jennings Customer PO: Reference: 2004 Membership Dues Item # Description Unit Ordered Ship Tag Unit Price Total Membership Dues for the City of Falcon Heights 1 0 ^ $1,985.00 $0.00 Thank you! Pretax Subtotal: $ 1,985.00 Taxable Items: $ 0.00 Nontaxable Items: $ 1,985.00 Amount Paid as of Printout Date: $ 0.00 0 Percent Sales Tax: $ 0.00 Balance Due as of Printout Date: $1,985.00 Sales Order Total: $1,985.00 V /',. ~ /~~j`~ l ~~ Page 1 of 1 ~C 1 ~ Association of 9AN 0 5 2A03 Metropolitan Municipalities DATE: December 31, 2003 TO: Chief Administrative Official FROM: Eugene Raniexi, Executive Director RE: 2003 Elected Officials Salary Survey Enclosed is a copy of the 2003 Elected Officials Salary Survey. Each AMM member city receives one copy free and additional copies may be obtained for $15.00 each. We hope you will find this survey useful. We sincerely appreciate the time and effort each participating city put forth to make this survey possible. Again, thank you and • please call Laurie Jennings in our office (651) 215-4000 if you have questions or want additional copies. 145 University Avenue West • Saint Paul, Minnesota 55103-2044 Telephone: (651) 215-4000 Fax: (651) 281-1299 E-mail: amm@amm145.org C ~~ O ~ ~ CJ ~ .~ ~. C •1•.+ O PQ C_ L'Z ~~ ~R v ., c i.. • a,,., c Q _ ~ ~ ~ ~ 0 av ~o 0 h ~ ~ N ~ i M O ~ h ~ ti O CS o`'i ~ ~_ w N N ~' ~ e- ~ , ~o° ~ o ~~ h '~ ~ ~ N b h ~ ci ti ~ O h • • O O i. 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' ' ice C ~ ~ ~ ~ ~ U N I-~ Cfl O M f~ M to ~T O O M O O O N l1) r O CO ti CO M (D •~ N C ~ W _QII V N N 00 O CO CD 00 ~ ~ '~7' Cfl M r of r r ~ O r O ~ Cfl x 03 ~ 6g •~ U •~ O G a N N N CD M M ~ N N N d' ~ ti ~ ~ y ~ ~ E N 4 ~ C .~ U o U ao ~ O ~ ~ ~ .~ U o. U r" °' ~ J a o Y ~ ~ co a O m ~ ~ 03 o y ~ •~ ~ o ~, ~ ~ -o ~ • - n a~ a~i a cA ~ ~ ~ -c ~ ~ ~ ~ a o ~ Z r? ~ Y ~ .~ N -~ j ~ ~ 00 Z 00 (j ~ ~ _ ~ z z O ~ ~ ~ ~ in c'=n i~ ~ «~ U +~ « ~ O~ a n ij 1 ~-~~~ ~I ~~ ~~ Northwest Youth ~L F~I1111y S e~'V1 ~eS 3-190 Lc~xin,~Ilon .•1l~c~nrrc~ ,~'nr~h, .S}ri/c ?0? . Shnr'et'feir.:11 ~ i j I?(~ . 1'hnr~e /6~ 1) -l,Qf-3~S'O~Y :' - t rrx (h~I) -l~Yh-3~,~,~ To our Friends at the City of Falcon Heights, The following is a brief report on Northwest Youth & Family Services' ro directly affect the residents of your community. If you have an p ~'ams that report, please call Kay Andrews, Executive Director, at (651) 486-3808 ext 243 ores Lauren Edlund, Development Assistant, at (651) 486-3808 ext. 256. City of Falcon Heights Report Period: Jan. 1, 2003 to September 30, 2003 Annual City Contract for Service 2003: Your contract for service covers mental health, diversion, youth-run business and$7~243 chore programs. All other services are provided as an additional benefit. senior In addition to city support, NYFS actively seeks operating funds from foundatio businesses, state and county contracts for service, civic groups and individuals. Ts~ • this collaborative effort, we are able to fund a wide range of services to families ~ ough individuals in need. d Total market value of contracted services through September 30: Total market value ofnon-contracted services through September 30: $2215 Total market value of all services through September 30: $11,010 (Please note that these numbers represent the market value of services provided, not what NYFS char es for these services. Because of your collaboration with NYFS, many of these services a $13,22$ charge or on a sliding-fee scale based on income.) g re offered free of Contracted Services: Mental Health Counselin Market Value `# Served Ffours of Servi e g Senior Chore Seniors $1 615 S Clients c 17 $600 1 Senior 30 Non-Contracted Services Market Valu Skill Builders Presentations e $300 # Served Hours of Service Project Engage 83 Clients 5 • $10,710 1 Youth 126 _.. 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C e `~ ~";~ L ~ 3 M r ,, {;.~. a = ~ a V U 3 y K C O N U Q1 • Campus/Community Advisory Committee Thursday, January 15, 2004 3:30 to 5:00 p.m. Skok Hall, 2"d floor conference room AGENDA 3:30 Introductions 3:40 Directions in Student Affairs on the Twin Cities Campus-Jerry Rinehart, Associate Vice Provost for Student Affairs 4:00 University's 2004 capital banding request/legislative • session outlook-Dick Hemmingsen, Associate Director of Government Relations (invited) 4:15 On-campus stadium feasibility study-Brian Swanson, Office of Budget and Finance and lead planner for the stadium feasibility study 4:45 Chiller Plant update-Roger Wegner, Capital Planning and Project Management ~'~~;~,~ Q~~~~r'~si~ G'~~~da~.~, a~o~- S/05~, Consf ~x~~ ~l~y, ~~~ tiaver~r-,~e-r. 4:55 Roundtable reports 5:00 Adjourn The Campus/Community Advisory Committee will meet on the third Thursday of the first month of each quarter in 2004. Meetings are scheduled for April 15, July 15, and October 21. Send suggested agenda items to Carolyn Manthei-Lund at manth002(a~umn.edu, or 612-624-7324. /~~~~i - d~'y ,~ftG~'. ~o~:c~1 e ~vQ%L~l y ,i~oact . ~ ~r~~vG%L,~ . ~ 500 ~ rceecCea! ~al~ ~v~.G~ ~i~~~rrnr~,clni~ 5i o~ T, ST. PAUL CAMPUS CHILLED WATER PROPOSED UNDERGROUND DISTRIBUTION ~, ~b ~ f,Ffk,wf~,:,:~ F~IS ROUTES i j ; ._~ I ~ 'i'ii j ,~-__-~_~--_. ~~~ ~ q{I ~~ ` OvYMW1r i !°~ i L L'''~. a` --;oz s /sA;a)) ~ ~~C•~`~`'`.~~ ~ ~~~ ~ i awn _~HC~"1 r S[t \..~~ ~< < 620 ~ /~- / / ~ MIST I LI100 TONS _ ~ `~.~, ~. `_ I ~ I (~ (IISM1~) ~ ~ ~~i i ~( SOD _ WSL ~ ~ ~ 4 `\ ~ ~ ~ 2TON \ .~~ ~. NfxOaw wE. 1 ` ~I //' bC~1I G ~ ~, T 5 _~ c> °~~ ~/ 81N"9RDrXV-E-~ r• /Q I I eurcau Svc. I It Jn I ~ I~~ r-^(` // ~iI ~ 328 .f ~ C1/6S SOOn OI1p Q ~ 3 a s „~ YL ~ ! MM[~6 6 I~ d ~ ~ . e 320 T 131 TO 5 ~~nrr«r. ~ j u~ ID00 Q I ,~ . S 0, ~ I„IM,IOII_ I iv.~yN+/f,MIH ^ ~~~ a ~' «.,. n O s -~ ~ ~'~ ~ ~~ !~ ,~ PCLANT R 501 1 MaOx ~i//~~d+ // COR11[R IWf MYP w ~~° ~°"~ 1 °,%~ ~~ V mt ~ "suss c „'il1 ~ c+alsx . ~ ~~ 1T0 T 5 ~ ~ _~ Ki ~~+ / I p~u wD. 3 r w fI i • t O I) h~ Fl. 6103 • STATE OF MINNESOTA FAIRGROUNDS ~ .~! ' CHILLED WATER DISTRIBUTION REQUIRED ~~ 1 ~ ~. ~ ~>`~ i TO SERVE BUILDINGS WITH LESS THAN _ ~\~"J~ ~ ~ ~ w ~ 2 YEARS REMIANING LIFE ~ - - FUTURE CHILLED WATER DISTRIBUTION ;~ y ~ ' J ~ ~ TO BE MODELED IN PHASE I T~ -~ii ~ l_% - --~ ,-~ ® I ~ VALVE LOCATIONS • Summary Governor's Recommended 2004 Capital Budget (dollars in millions) • The Governor presented his recommendations under 5 broad themes. The total recommendation was $759.7 million. The recommendation included $689 million of General Fund supported GO Bond financing. Theme Amount Percentage Education (K-12 and Higher Education) .$195.6 25.7% Economic Development, Housing and Transportation $194.0 25.5% Environment $172.4 22.7% Safer Communities $108.4 14.3% Effective Government and Public Services $89.3 11.8% Total Capital Recommendation $759.7 100% • • Within the Education theme the Governor recommended: Organization Amount % °f Education % of Total Minnesota State Colleges and Universities $88.6 45% 12% University of Minnesota $76.6 39% 10% Department of Education $24.2 12% 3% Minnesota State Academies $4.3 2% 1% Perpich Center for Arts Education $1.8 1 % 0% Total $195.6 100% The Governor's $76 million recommendation for the University included 4 projects. - Higher Education Asset Preservation and Replacement: $38 million - UMD Life Science Building Renovation: $9.3 million (plus $4.7 million in U funds.) - Kolthoff Hall Renovation: $16.0 million. (plus $8.0 million in U funds.) - Education Sciences (MRRC) Renovation: $13.3 million (plus 6.7 million in U funds.) The Governor's recommendation for MNSCU was comparable to the University. MNSCU received $75.4 million of GO Bond Funding (versus $76.6 million for the University) and is required to contribute $13.2 million in User Financed bonds. The University's required user financing was not included in the recommendation because the University will issue its own debt of $19.4 million. • The Governor also recommended a $20 million research facility for the Mayo Clinic that will be funded through the University. Overview The University of Minnesota learning experience provides students with broad based skills in critical thinking,. communication, and problem solving which are the foundation for the pursuit of advanced education and successful- careers. We also believe that the University experience can contribute significantly to the creation of good citizens-- individuals who are engaged in their communities, concerned with social justice, .and _ awaze of the complex and rapidly changing cultural and global environment in which we live. The development of these skills and chazacteristics, however, is not. confined to any particulaz element. of the academic curriculum. Indeed, many of the traits associated with ..success beyond the University are just as likely to be developed during a student's co- curricular experiences as-they are in the classroom. Given the progress the University has made the past. few years in attracting outstanding students and enhancing their learning experience, it is time to become more explicit and purposeful regarding both the broader developmental outcomes we believe our students should achieve, and the role that civic engagement plays in helping. students. attain these outcomes. Student Experience Outcomes Among the characteristics associated with good citizenship and success beyond the Universityare the following: Re~gansibility ._ '_- Self-.Confidence Accountability Humility Independence Resilience Goal Orientation Appreciation of Differences Positive Self-Ima e Tolerance of Ambiguity r We need to introduce students to these expectations during their first encounters with the University, and we need to develop within our graduation planning efforts a variety of "paths" related to these outcomes and to civic engagement. These paths should reflect student interests, academic fields, and future goals, as well as community needs. Students understand that their academic progress is of great concern to the University; they need to have a similar expectation regarding the importance of their overall development as well-rounded, engaged citizens. Rinehart, Swan, Nobbe November 2003 EXECUTIVE SUMMARY SECTION I-EXECUTIVE SUMMARY Markin consulting was engaged by the Minnesota State Agricultural Society (the MSAS) to identify, analyze and quantify economic benefits to the Twin Cities metropolitan area from the operation of the Minnesota State Fair and Fairgrounds. The MSAS, responsible for the operation and maintenance of the Fairgrounds, both operates the annual 12-day Minnesota State Fair (the Fair) and .rents the Fairground's facilities for commercial, consumer,~agricultural and equestrian events and activities on a year-round basis. This section presents a summary of the estimated economic impacts of the MSAS as detailed in the remainder of this report. EXPENDITURES IMPACTS The operations of the MSAS including the annual Fair and non-Fair events and activities generate specific expenditure impacts, fuither explained in Section II. The estimated annual expenditure impacts are shown in Table 1. Table 1 . Minnesota State Agricultural Sceiety Summary of Estimated Annual Expenditure Imnacts Souce of lntitial Induced Total • Minnesota State Agricultural Society Operations Annual Fair Impacts Local concessionaire and rideJgame operators Non-local concessionaires, ride and game operators and commercial exhibitors Non-local competitive livestock exhibitors Annual Non-Fair Impacts Event promoters Non-local participants and exhibitors Local concessionaire All Activities 28.000.000 $45.OU0,600 573.000.0(10 515,2UU,ODU $16,80(),000 $32,OOU,0(H) 4,100,000 3,700.000 7,8o(l,U(H) 2,1(>n.ooo z.3(w.ooo , 4.4o0,orx1 521,4(10.000 $22,800,(100 44 2(Hl 000 $400,000 5300.000 57On,000 15,000,000 16.300,000 31,300,000 1 IOU 00 1,3(IU.U(lU 2.4(N).oOU 16 500 (10(1 $17,000,000 34 400 0(10 565.9U0,OOO $85,700,0(1(1 5151,61)0,000 Due to the variability of events and activities in any given year and the margin of error of survey responses, the annual impacts are estimated to range between $147 millivn and $157 millivn. MARKIN CONSULTING EXECUTIVE SUMMARY • EARNINGS IM19PACTS Included in the expenditure impacts shown in Table 1 are salaries and wages paid to MSAS employees, as well as to employees of local-area concessionaires and ride/game operators, hotels, restaurants and . shops. These salaries and wages, refetTed to as earnings impacts, are presented in the table below. Minnesota State Agricultural Society Summary of Estimated Annual Earnings Impacts Earnings Source of Impact Impacts Operations $19,140,000 Annual Fair Activities 14,070,000 Annual Non-Fair Activities 10,680,000 All Activities ~ $43,890,000 • • Of the $152 million of expenditure impacts shown in Table 1, almost $44 million of that amount represents earnings paid to employees both directly and subsequently involved in supporting the activities of the MSAS and its users through local, businesses and their employees. EMPLOYMEN'T' IM1IPACTS Table 2 The employment impacts represent the number of jobs supported by the amount of salaries and wages paid, presented as earnings impacts in Table 2. The table below presents the estimated number of jobs, direct and induced, related to those activities. . Minnesota State Agricultural Society Summary of Estimated Annual Employment Impacts Souse of Impact Direct Jobs Induced Jobs Total Jobs Operations 2,460 ~ 450 2,910 Annual Fair Activities 1,210 770 1,980 Annual Non-Fair Activities 80 580 660 All Activities 3,750 1,800 5,550 Tablc 3 The 2,460 jobs shown as "Direct Jobs" for Operations represent the estimated number of employees (not all full-time equivalents) of the MSAS operations, including about 78 full-time, around 262 seasonal and about 2,120 Fair-time. The remaining direct jobs represent local employees who work for concessionaires, ride and game operators and event promoters during the Fair and year-round events. The number of jobs shown as "Induced Jobs" represent the jobs that are supported by the re-spending of dollars in the local area, as well as staffing of hotels, restaurants and shops to support the non-local patrons and participants of events held at the Fairgrounds. MARKIN CONSULTING 2 EXECUTIVE SUMMARY FISCAL IMPACTS The operation of the Fair and Fairgrounds, as well as events held at the Fairgrounds, create certain fiscal . impacts in the form of sales, lodging and fuel taxes. State sales taxes are generated by activities of the MSAS during the Fair and non-Fair events from admission sales, grandstand ticket sales, parking revenue and carnival sales, as well as concession sales. In addition, the off-grounds expenditures made.by non- local patrons and participants of events held at the Fairgrounds generate sales, local option, fuel and lodging tax revenue for state and local governmental jurisdictions. Table 4 below presents the estimated annual taxes generated by the MSAS operations and events held at the Fairgrounds. Table 4 Minnesota State Agricultural Society Su of Estimated Annual Tax Im acts Souce of Impact Tax Amount State Sales Tax $4,191,000 Local Option Tax ~ 82,000 Fuel Tax 73,000 Lodging Tax 202,000 Total 4 548 000 • For the complete report, please contact: Minnesota State Fair, 1265 N. Snelling Ave., St. Paul MN 55108, or email, fairinfo@mnstatefair.org IVIARKIN CONSULTING 3 • • The 2004 Capital Request, guided by principles of stewardship and sustainability, supports the University's mission through investment in academic infrastructure and preserves past investments in existing buildings through repair and renovation. There are four components of the 2004 Capital Request: HEAPR: Traditional (48% of requested funds) Higher Education Asset Preservation and Replacement (HEAPR) funds will be used to make health and safety improvements, utility .upgrades, and building system improvements for more than 100 projects on the Twin Cities, Duluth, Morris, and Crookston campuses, and at research centers and stations throughout the state. HEAPR: Major Building Renewal (39% of requested funds) The University will contribute funds for program investments not covered by. HEAPR, for the renovation of four existing buildings-the Life Science Building on the Duluth campus and on the Twin Cities campus: Kolthoff Hall, the Education Sciences Building (the former MRRC), and classrooms and .other learning environments in the Academic Health Center. New Construction (11% of requested funds) Funds for two new projects are being requested this year. In partnership with the Morris community, a biomass heating plant addition and a football stadium will be shared with the school district. On the Duluth campus, students will help fund an addition to the Sports and Health Center to meet their demand for greater access. OF WHAT WE Planning Funds (2% of requested funds) The University is also requesting planning funds to design much-needed classroom space for expanding undergraduate and graduate business programs on the Duluth and Twin Cities campuses. FINANCIAL SUMMARY systemwide UNIVERSITY'S 2004 CAPITAL REQUEST (in millions) HEAPR: Traditional $90.0 HEAPR: Major Building Renewal $74.0 UMD Sports and Health Center Addition $12.0 UMM Biomass Heating Plant Addition and Football Facility $g,0 Planning for Carlson School Expansion and Classrooms $2,5 Planning for UMD Business School and Utility Infrastructure $2.2 TOTAL. CAPITAL INVESTMENT $188.7 FUNDING SUMMARY (in millions) State Bonds $155.5 University Financing $33.2 TOTAL CAPITAL INVESTMENT $88,7 The Uni~rersity of Minnesota is on equal opportunity educator and employer. • . I ~ ~ • HIGHER EDUCATION ASSET •••••••••~~~~••~~~•~~••••~~••••••••• PRESERVATION AND REPLACEMENT ~~;~~ • • ~ .. , ~- ~~} (HEAPR) ~~~ ,~ • Systemwide ~ ~r ~ I a ~ ~ ; ~ FACILITIES AND PROGRAM ~;'- _; ~ ~ _ ~ s,. ° , The University's physical assets include more ~.~, . ~ ~, ; ,~: ~ ~ ~.", than 800 buildings. Approximately 65 percent of -,r ~ '~~ ~ ~ the major campus buildings are more than 30 ~; ~ ~ ~ ~~` ~~ ~~ ~ ~ years old; 25 percent are more than 70 years ~ ' ~ ` ~ 1 ' old. , *~ ~~ _~ 1 • The University is committed to the preservation ~.' ~. '''~~ "" ~ of its existing buildings. ~ ~ " •HEAPR funds are an essential part of the '~; Universit~s investment in and commitment to ~°~ ~ maintaining its existing buildings. _ t. `` "r HEAPR funds are used to make health and safety _ ~; `l ~ ~ improvements, utility upgrades, and building "' " ` system improvements (MS 135A.046). • • HEAPR funds assist the University in meeting its obligation to provide safe and accessible REQUEST campuses for the 60,000 students, staff, and guests who use its facilities each day: $90 million • Renewing existing roofs, building interiors and PROTECT SCOPE exteriors, and electrical and mechanical systems- . will extend the useful life of University buildings. Funds will be used to maximize the life of the . • Replacing aging and obsolete cooling equipment, University's existing physical plant by completing more than 100 projects on all four campuses and heating systems, and electrical distribution at research centers and stations throughout the systems will increase efficiency and reliability and .state. Individual projects fall into one of three minimize the risk of system failure. categories. • Among the many HEAPR projects, the Crookston Health, Safety, and Accessibility $15.1 million campus will have its heating plant upgraded; an improved ventilation system in Bohannon Hall 'Building Systems. $43.5 million on the Duluth campus will improve the indoor Utility, Infrastructure $31.4 million .air quality; sprinklers and alarms will be installed in Moos Tower on the Minneapolis campus to improve security; the roof will be replaced at : rneun;~rsr,.osM;~~esomsa„eq„oioPPorr„~;~.edu~~rora„demP~oyer the Minnesota Landscape Arboretum; and on the Twin Cities campus in St. Paul, the storm water management system will be .brought into compliance with state .regulations. • • .................................... KOLTI~OFF HALL .•. ,,j t f;, , . -~_,,r~ Twin Cities campus- ~ ~ ~ .:~ u ~ ~. u 't. FACILITIES AND PROGRAM ^s~ :+~: The Department of Chemistry is ranked 21st among 168 chemistry departments in the `~''~ i~ ~ ~" country, 11th among public universities. ~ ~' ~ ,~ Chemistry is the largest Ph.D. granting progrom ~ .k , ~ ;` , at the University of Minnesota • The National Science Foundation and the „~„~' ~~; National Institutes of Health provided $9.1 ~*=~~°u million in grants to support basic and applied "~ -_, research in chemistry in fiscal year 2003. s " ~"' `~` ' • Department of Chemistry faculty conduct .The entire. HVAC and electrical systems need nutting-edge research. in emerging fields such as to be upgraded to safely support teaching biocatalysis, nanoscience, and chemical biology. This research supports the University's work in _ and research activities, which will substantially biotechnology. improve the air quality and ameliorate any current health risks. • Remodeled labs will support a new inter- disciplinary program in chemical biology. In - collaboration with the Medical School, this REQUEST program is aimed at the development and integration of modern chemical methods to $16.8 million + $7..2 million University contribution understand biological problems at the PROJECT SCOPE molecular level. One or more chemistry courses are required Funds will be used to replace obsolete mechanical, in 43 undergraduate programs. In 2002-03, electrical, and HVAC systems to more safely 11,.156 students were enrolled in chemistry support teaching and research activities in classes. chemistry. Sprinkler and alarm systems will be installed; elevators and restrooms will be •Kolthoff Hall houses teaching and research labs upgraded; and repair of the building's interior and for the Department of Chemistry. It is used daily exterior will extend the useful life of Kolthoff Hall. by nearly 500 students and faculty. • The Department of Chemistry has provided outreach to more than 2,000 K-12 StUdentS In me University ofMinnesotoisanequalopportuniryedumtorandemployer. each of the past 10 years, stimulating student interest in the study of chemistry. The 35-year-old structure is sound, however, the obsolete mechanical system connot provide adequate ventilation to laboratories-that regularly use toxic chemicals, which is limiting- the level of research activities in the building. 1 .. ~ ~ •^ I .. FACILITIES AND PROGRAM The Education Sciences Building (the former Mineral Resources Research Center) will be occupied by three College of Education and Human Development (CEHD) units: the Department of Educational Psychology, the Center for Applied Research in Educational Improvement (CARE/); and the Center for Early Education and Development (GEED). These units attract $8 to $9 million annually in sponsored research • `CEHD has trained more than 100 superin- tendents and nearly 700 principals and other K-12 administrators in the state. • Nearly 40 percent of the Teacher of the Year -Award recipients in Minnesota are University of Minnesota alumni. • The renovated building will. provide space for continuing education-for thousands.of teachers, administrators, and other professionals who work with CEHD faculty on reading education, disability services, and classroom technology- solving real problems in real schools. The opportunity for professors, researchers and graduate students to work in close proximity .will enable them to conduct integrated research projects,. attract additional sponsored funding, and enhance research that.will benefit Minnesota's school children, teachers, and administrators. • Student and faculty interaction would increase by bringing them together in one space rather than the six spaces they currently occupy. A recent facility assessment of the renovated building concluded that it is structurally sound and well suited for adaptive ,reuse. ,.~, ~~ _~ ,gtt~ ter„ ~<~ ~ ~ '~~ ~t ~~ - ~ ~ . , ,, ~~~ ~~~~ ~~xx.~~ . _~. _ -- - - ~~~ • The openness and large volume of the existing interior space allows cost-effective conversion to ..new use. • The renovated building would hold 40-50 faculty and 80-100 researchers and graduate students. .REQUEST $13.3 million + $6.7 million University contribution PROTECT SCOPE Funds will be used to design, renovate, furnish, and equip-the Education Sciences Building (the former Mineral Resources Research Center). The .building exterior will be restored, all physical and code deficiencies will be corrected, building systems will be modernized, and the interior wi11 be reconstructed to house. offices and research space for the College of Education and Human Development. The University of Minnesota is on equal opportunity educoror and employer. • • 1 • e • °•••••••••°•°•••••••••••••••••••• ACADEMIC HEALTH CENTER ~` ° • ~ EDU 9. ~ l . CATIONAL FACILITIES t 1 ~ ~~'k l.~ o -~ ~ Twin Cities. campus .~ ~ ~„ FACIUTIES~AND PROGRAM --_.;:~ ~ After years of investment in research facilities ~ _ ,, ~ ~ ~ " ~ , the Academic Health Center (AHC) must now update its learning environments ~ ~' ; 4~"~'~f ~ ~ ~°~ " ~~ r . • Renovation of Academic Health Center class- ~„ ~ Q~.,i.~ rooms and other learning environments will - .improve conditions for nearly 7,000 full-year- "" " equivalent students who use the facilities. • The future of Minnesota's health rests with health ~ _:~ ~ '- professional students..The next generation of health professionals requires new skills and _ competencies that are part of a new curriculum . - • Mayo Auditorium will be restored, meeting . • Upgraded learning environments must be contemporary technology and infrastructure needs and ADA provisions. provided to stay competitive and to continue to attract the best and brightest students who • The Veterinary Medicine Teaching Center will be expect the best learning resources. furnished vvith a flexible, flat-floor classroom to AHC educational facilities require substantial accommodate 200 people, seminar rooms, and distance education facilities. improvements to support the changes in health professional curricula and teaching methods. • The renovated Veterinary Medicine Teaching • Most AHC classrooms are now 25 years old and Center will serve as a resource to the agricultural community. have notbeen substantially improved since they were constructed. - Seventy-five percent of classrooms are large, REQUEST tiered, fixed-seating classrooms of 100+ seats that lack flexibility. $9.6 million + $6.4 million University contribution • To meet modern educational needs, more RROJECT SCOPE flexible, adaptable space will allow for a range of Funds will be used to renovate existing teaching learning environments.. facilities throughout the•AHC including Mayo • More-small-group space for problem-based Auditorium, Veterinary Medicine Teaching Center learning, more flexible large-group space, and (old Dairy Barn), and classrooms and instructional improved technology in all spaces including labs in various AHC buildings. computer-based testing facilities, computer labs, and simulation facilities are needed. Renovation of classrooms and teaching The University of Minnesoto is on equal opportunity educator and employer. laboratories in nine AHC buildings on the .Twin Cities campus in Minneapolis and St. Paul is • proposed. Planneng for CARLSON SCHOOL ... ... e • , EXPANSION AND CLASSR0011itS ._, - • °: ~ `~~~'~= Twin Cities campus .~'~ ~ .. FACILITIES AND PROGRAM The Carlson School of Management (CSOM) will better meet the needs of Minnesota's business community by turning out more graduates of the undergraduate business program and the full- time M.B.A. program by adding more classroom space in a new facility. • CSOM currently admits 300 freshman and 150 transfer students each year, attracting students. of .high academic achievement. • CSOM is expanding its undergraduate business program by 50 percent-to admit 150 more freshman and 100 more transfer students. • Fifty-three percent of incoming freshman are in the top five percent of their class. With average ACT scores of 28, they are in the top seven '..percent of students nationvvide. To support the growth in CSOM programs and to address the instructional requirements of -the College of Liberal Arts, the following will be added: four 160-seat classrooms, six 90-seat classrooms, one 60-seat classroom, and twenty 20-person breakout rooms. • In addition to classrooms, the new facility will provide space for: faculty and teaching assistants in the expanded undergraduate business program; advisers in a larger undergraduate Business Career Center; on-campus interviews by prospective employers;. a new undergraduate computer lab; and informal individual and group study space. • To meet the competitive demands of incoming .students and to better facilitate the instructional .process, classrooms would support different teaching methods using state-of-the-art information technology and equipment. REQUEST $1.7 million + $0.8 million University contribution PROJECT SCOPE. Funds will be used to design a new instructional facility adjacent to the existing Carlson School of Management on the Twin Cities campus in Minneapolis. The facility will include undergraduate classrooms for CSOM and the College of Liberal. - Arts, undergraduate computer laboratories, and offices for CSOM's undergraduate student support service programs. The University of Minnesota is an equal opportunity educator and employer. • • • "+ J .. O o ._ .~, ; _ ~~ Y' ^ ~~ i t~ ~ ~ ~ ~; c~ ~ ~~ 4~ ~,~ z~~ ~- ~~ . ~~ Q ~~ I M 3 'a O C> ~ ~ • N G ~ ~ ~ ~ (ry _ ~ :Q M ~ ~ d C1 Q y ~ ~ ~ ~ p ,+ ~+ ~ ~ N ~ ~ ~ G ~ ~ ~ - Ri d ~ (~ LL '~ ~ Q ~ 0 ~ ~ ~~ ~ ~ ~ ~ Q 'V - ~-- - ~ Q ~ ~ ~ 3 _ ~ y 0 . °' Q~~C) ~ r a M ~ ~ Z ~ O ~ ~ ~ N ~ ~; ~ ~~ U N ~ ~ y tQ ~ i4 y ~ ~ y ~ '+-+ p V ~ ~ ~ -~'+ . Q y ~ p j N '~ ca ~ L ~ ~ ~~ r> ~ _ LL .. 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' /~~~ pew j ~ t ~ .jy`.- ~ ' a. ~ , 's" _ . ~ v ~-_. a i~..; ~ ~r ' ~ ' r ' t y ..rv 'k :w. r ~'~ ~_ £ rr ~ '~{3:1t+ a..~ ~ ,.s h. _ ~~H''ui.} ~' ~ ~ S :a • ~I i i J ~ ~ i~ r--t ~ ~ ~ f~~ if ,~ ~ • a+.. ~ ~~ ~ ~*' r~ ~~~~ O ~~ ^/^~ i.~.. `~ ~ ~~ V a II0 ~0 i r i• ~~ 1~ { '~ ~ a ~. ~ ~ ~ / / r~ i ~ ~ ~ ~ ~ ~~ o o _ -. ~ I~..1 ~`1 ;:.. ~ .-. .~' .:~t~.. ~ • .~ / .. o ~L~ ~ ~~ o o ~ ,~ . ~J %. j ~,- j---- l o - - .p O ! ,y / \~` / F ~ ~ f C ~ _,J ~ ~ O I TlM AIWNfIN ~p^0 `J CITY OF 2077 W.LarpenteurAvenue Falcon Heights, MN 55113-5594 email: mail@ci.falcon-heights.mn.us website: www.ci.falcon-heights.mn.us January 15, 2004 Ms. Diane Cormany Best in Real Estate Editor The Business Journal 527 Marquette Avenue, Suite 300 Minneapolis, MN 55402 RE: Falcon Heights Town Square Dear Ms. Cormany: Phone - (651) 644-5050 Fax - (651) 644-8675 I write today to heartily recommend the Falcon Heights Town Square project for the Best in Real • Estate award in the category of Best New Mixed Use Development. In 2000, the City became aware of the potential for redevelopment of the Southeast corner of Snelling and Larpenteur Avenues when the shopping center parcel in that location came onto the market for sale. That touched off resident visioning meetings, developer selection through an innovative RFP process based on the design guidelines, and finally, groundbreaking in October, 2003. From the start, the Falcon Heights community has been involved in determining the direction this project would take. No less than 20 community meetings were held to take feedback, formulate ideas, and discuss concerns with our residents. The redevelopment site was home to an aging, poorly maintained shopping center for nearly 50 years. It had become a drag on surrounding property values, and was no longer a suitable gateway for our city. Despite several attempts, the site had never been the object of a serious redevelopment bid. Market studies showed that a mix of housing and a more modest retail presence would be best for the corner, and when the city solicited proposals from developers, seven came forward with plans. Sherman Associates was clearly the strongest applicant in terms of residential work, multi-use work, and their experience in the first ring suburbs. Despite a challenging financial environment, they were able to pull together a patchwork quilt of financing, with modest city participation. From the beginning, there was strong support for their project, largely due to their willingness to listen, maintain design and planning flexibility, and their sheer doggedness in seeing this project come to fruition. L~ HOME OF THE MINNESOTA STATE FAIR AND THE U OF M INSTITUTE OF AGRICULTURE ~~~ PRINTED ON RECYCLED PAPER Ms. Diane Cormany, Best in Real Estate Editor • January 15, 2004 -2- It is with great pleasure and pride that I strongly recommend the Falcon Heights Town Square project for the Best in Real Estate Award, 2003. Warmest regards, CITY OF FALCON HEIGHTS ~ `.~ Susan L. Gehrz Mayor • ."", ",y ~ , "., _._. . liviocities.htz}rtaFaafs;Latq'. ,~.~IIALLS: Cities`lead.th~ c~i~Cge on :filling space George Sherman said Falcon Heights got involved in the redevelopment of . Northome Shopping Center, shown above, to prevent the center's decline.:...:. evely ors, =cities revive ~. p Sri r~alls o drew ~ ra~fic- p 0Y NICOLE 6AnnISON STAFE REPORTER Jn areal-estate mazket increasingly domi- nated by mixed-use development, lifestyle centers and resurgent downtown retailing, 1950s-era strip malls Gave become obsolete. The central cities and imter-ring suburbs, in pazticular, are faced with a slew of half- emptyaging malls. These properfles can lead to die deterioration of surrounding residen- tial neighborhoods and drag down property values. Savvy developers and city administrators are workbrg to redevelop or revamp aging strip complexes to make them more compet- itive. The idea is to attract Idgher profile, national tenants that will pay lugher rents and attract more shoppers. Creathig neighbor- hood retail centers also helps meet the sur- roundingresidents' needs. The attention tlrat aging strip centers have received in the past few yeazs is necessary if the complexes are to compete with newer forms of retail, experts say. With roughly 5h percent more retail space per person today that there was 15 years ago, consumers have found that they lrave an endless array of choices, said Michael Bayer, senior resident • fellow at -The Urban Land lnstt[ute , ut Washhtgton, D.C. "There simply isn't as much basins§s," ' Bayer said. "When you combine all tlresenew forms of retailing with the oversupply of retailing, you can understand whyolder obso- leteproperties am suffering." Puhliclprivate partnerships Some cities are taking an increasingly pub- ' Bc role in the redevelopment of the centers. ' The city of Palcon Heights helped speaz- head the redevelopment of Northome Shopping Center, located on the southeast comer of Snelling and Larpenteur avenues. The 60-year-old site consists of two parcels: the shopping center parcel owned by JEM- JAHS Partners in Minneapolis and the Dinos restaurant parcel owned by Dino Adamidis. The city of Falcon Heights became interested in the redevelopment of the strip mall about three years ago, when the shopping center portion was put on the mazket. While fine city doesnt own the site or have control o£ it, administrators wanted to make sure that whoever purchased the shopping center would redevelop it iota something MALLS ~ PAGE 26 scheduled Biigltop; h a siiialler nd a fined-- dents wifft iurpnrlfo- i1 to repo-.; EngelsNa;' ; jest _ "it's -- 2- :. e~ ~~~~ Northwest Youth ~ ~c ~ ~~ ~~ & F 0 e, ~, ~~,~~ arnily Services ~' ~ ~~" Please join us in ~~'~ ~' celebration and honor of ~~ ~~ these special individuals who ~~~, ~~ have demonstrated outstanding S'e~1Ce t0 y~utl.• A wa~•d ~~ service and commitment to area ,youth. The 2004 award recipients are: B a n quet Thursday, ::February 5, 2004 Wendy Benson ~ 5.:30 to 8:30 p.m. Lawrence Fetter Mounds View Community Center ,Dale GunderSOn 5394 Edgewood Drive, Mounds View Mary Sue Hansen- , -'Ron Lehman Tickets: $2s yang LlU Please RSVP by Friday, Tan. 30, 2004 ' ~{~'~ b callin John Baile at Y g Y Terence Quigley _ o0 (651) 486-3808 ~ ~~¢, • Minnesota State Fairgrounds 2004 Schedule of Events (January -Octo ber) .Event Dates Event Facilities 1/18/04 - 1/18/04 Frigid 5K Running Race Coliseum (portion) and various roads 3/12/04 - 3/14/04 Minnesota Deer Classic Coliseum 3/20/04 - 3/21/04 Weapons Collectors Coliseum Show & Sale- Winter 3/26/04 - 3/28/04 Super Golf Sale- Winter Coliseum 4/1/04 - 4/4/04 Shrine Circus Coliseum, Cattle Barn (portion), Warm-up Arena 4/17/04 - 4/18/04 GSTA Car Show Coliseum 4/17/04 - 4/18/04 Antique Spectacular Show Education Building, Progress Center, 4-H Building ~ Flea Market- Spring (first floor and outside bays), Blocks 24, 25, 30, 31 4/23/04 - 4/25/04 Super Computer Sale- Education Building Spring 4/23/04 - 4/25/04 Horse Expo Coliseum, Horse Barn, Sheep/Poultry Barn, Swine 4/24/04 - • 4/26/04 - 4/28!04 - 5/3/04 4/30/04 - 5/2/04 5/1/04 - 5/2/04 5/2/04 - 5/2/04 5/2/04 - 5/2/04 5/7/04 - 5/9/04 5/8/04 - 5/9/04 5/9/04 - 5/9/04 5/12/04 - • 5/14/04 - 5/15/04 - 5/15/04 - 5/16/04 Barn (portion), Cattle Barn, Judging Arena, Coverall, Campgrounds, DNR building, Block 49, Military Relic Show- Spring Progress Center FFA Cattle & Livestock Coliseum Show Denny Hecker Automotive Block 55 (portion) Sale- April Sahara Sands Spring Coliseum, Horse Barn, Judging Arena, Warm-up Classic Arena, Campgrounds Living Green Expo Education Building (entire), Home Improvement and 4/25/04 4/26/04 5/15/04 5/16/04 5/15/04 Spring Extravaganza Car Show & Swap Meet Northland Antique Toy, Doll & Advertising Show Saddlebred Horse Show Weapons Collectors Show & Sale- Spring First Fifty Auto Parts Sale & Swap Meet YMCA Garage Sale- Spring Watercolor Art Show St. Paul Chamber Orchestra Benefit Gala Rubber Stamp & portions of Block 31 Streets north of Randall and south of Hoyt, Agrimart, Block 15 restrooms. Progress Center Coliseum, Horse Barn, Warm-up Arena, Judging Arena Progress Center Streets north of Randall Avenue and South of Hoyt Avenue, Block 15 restrooms Merchandise Mart Arts Center Progress Center Education Building r Scrapbook Expo ~ 5/22/04 - 5/22/04 Model Railroad & Hobby Education Building Sale- Spring 5/22/04 - 5/22/04 Smiie Network Fundraising Gala Progress Center 5/22/04 - 5/23/04 Fine Antique Show Fine Arts Building 5/28/04 - 5/31/04 MAQHA Corporate Coliseum, Horse Barn, Campgrounds, Judging Challenge Arena, Warm-up Arena 6/2/04 - 6/7/04 Denny Hecker Auto Sale- Block 55 & 56 June 6/4/04 - 6/6/04 Mazda Ride 8~ Drive Block 27 ~ Block 40 6/4/04 - 6/6/04 Gem, Mineral, Fossil, Progress Center Jewelry Show 8~ Sale 6/6/04 - 6/6/04 GMCCA Car Show 8~ Swap Streets north of Randall and south of Hoyt, Block Meet 15 Restrooms 6/12/04 - 6/13/04 Antique Spectacular Show Education Building, Progress Center, Baldwin Park, 8~ Flea Market- Summer 4-H (first floor), Blocks 24, 25, 30, 31 6/12/04 - 6/13/04 Parelli Natural Coliseum & Horse Barn (portion) Horsemanship Seminar 6/18/04 - 6/20/04 MSRA Back to the 50's Car Education Building, Outside Areas*, Coliseum Show (portion), Merchandise Mart, Bandshell, Warm-Up Arena, Home Improvement, Progress Center, Modern Living, Empire Commons • 6/23/04 - 6/26/04 Tanbark Horse Show Coliseum, Horse Barn, Judging Arena, Coverall, Campgrounds 6/26/04 - 6/26/04 Heart of the City Church Blocks 15, 16, 19, 20, Progress Center Picnic 7/1/04 - 7/4/04 Morgan Horse Show Coliseum, Horse Barn, Judging Arena, Coverall, Campgrounds 7/3/04 - 7/4/04 Hmong Festival Parking Block 55 (south of Como Ave.) 7/7/04 - 7/12/04 Denny Hecker Automotive Block 55 (portion) Sale- July 7/9/04 - 7/11/04 Super Computer Sale- Education Building Summer 7/9/04 - 7/10/04 Used Book Fair Progress Center 7/16/04 - 7/18/04 Car Craft Car Show Blocks 11 - 16, 19-21, 23-26, 29 - 32, 34-45 7/21/04 - 7/24/04 Polaris 50th Anniversary Education Building, Home Improvement, 4-H (first Celebration floor and outside bays), Crysteel Building, Progress Center, Blocks 22-25, 30 & 31, Campgrounds 8/4/04 - 8/9/04 Denny Hecker Automotive Block 55 (portion) Sale- April • 8/6/04 - 8/8/04 Reining Horse Show Coliseum, Horse Barn, Warm-up Arena, Judging Arena 9/16/04 - 9/19/04 Fall Arabian Horse Show Coliseum, Horse Barn, Judging Arena, Coverall, 9/17/04 - 9/ 19/04 - %l,1.J%rVT ° 9/26/04 9/19/04 9/25/04 - 9/25/04 9/25/04 - 9/26/04 9/30/04 - 10/3/04 10/2/04 - 10/2/04 10/2/04 - 10/3/04 10/2/04 - 10/3/04 10/2/04 - 10/3/04 10/2/04 - 10/2/04 10/5/04 - 10/10/0 • 10/9/04 - 10/10/0 10/13/0 - 10/24/0 10/13/0 - 10/16/0 10/14/0 - 10/18/0 10/15/0 - 10/17/0 10/16/0 - 10/17/0 10/17/0 - 10/17/0 10/21 /0 - 10/21 /0 10/22/0 - 10/24/0 10/22/0 - 10/24/0 10/22/0 - 10/24/0 Campgrounds Oktoberfest Block 30 Motorcycle Swap Meet Blocks 8 & 9 (North of Hoyt Ave) ~t~iJ4G111 VrAY\A~G V~YI.% Horse Show VVIIJli 1.V111, I Il%131, Vfll ll, VC.Itllli LJG~11, 4%f.11Jy 1111J. /"~I GIIQ, Coverall, Horse Barn Annex, Campgrounds Model Railroad Show- Education Building Fall Twin Cities Arts & Crafts Progress Center Sale (Mission Furniture) Minnesota 4-H Horse Coliseum, Horse Barn, Judging Arena, Cattle Barn, Show Coverall, Campgrounds District 10 ~ 12 Blocks 8 & 9 Neighborhood Clean-Up Midwest Fall Swapmeet 8< Blocks 6-9 Antique Auto Show Antique Spectacular Show Grandstand (first & second floors), Infield & Flea Market Weapons Collectors Education Building Show and Sale- Fall Junior League Garage Sale Empire Commons Minnesota Harvest Horse Coliseum, Horse Barn, Judging Arena, Coverall Show Comic Book Convention Education Building, Annex, Theatre Wilsons Leather Clothing Empire Commons Sale YMCA Garage Sale- Fall Merchandise Mart Denny Hecker Automotive Block 55 (portion) Sale- October Super Computer Sale- Education Building Fall Military Relic Show- Fall Progress Center Roadsters Swap Meet Blocks 8 - 9 (north of Hoyt Ave.) Parking for Education Block 55 (south of Como Ave.} Minnesota Conference Minnesota Beef Expo Coliseum & Cattle Barn Woodworks 2004 Education Building, Creative Activities Annex, Home Improvement Building Ski Show Progress Center