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Home My WebLink About04/07/2016 EDAC PacketCITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEETING Thursday, April 7, 2016 8:00 A.M. Community Room AGENDA 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF MINUTES. January 7, 2016 & March 3, 2016 3. DISCUSSION ITEMS A. 35E Distribution Facility — Tax Increment Financing Policy B. 49 Club Demolition C. Project Updates • Watermark • Legacy at Woods Edge • North Oaks Company Development 4. ADJOURN CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES DATE: January 7, 2016 MEMBERS PRESENT: Nathan Vojtech, Rebecca Glewwe, Chad Wagner, Tami Wier MEMBERS ABSENT: Lou Masonick, Thomas Colgan, Julie Schwartz, Don Johnson OTHERS PRESENT: Michael Grochala, Keith Dahl, Kirsten Barsness APPROVAL OF MINUTES It was moved by Rebecca Glewwe to approve the minutes of December 3, 2015. The motion was seconded by Chad Wagner and passed unanimously. BUSINESS RETENTION & EXPANSION PROGRAM Mr. Dahl outlined the scope of work staff has completed in researching, inventorying, and evaluating local businesses in Lino Lakes. He presented the comprehensive business inventory and discussed the parameters used to identify the businesses on the list. Mr. Dahl then introduced and turned it over to Kirsten Barsness, Development Consultant, to lead the EDAC discussion on identifying additional parameters to refine the comprehensive business inventory. EDAC discussion lead to the identification of additional parameters: • Identifying companies with higher growth trends (Sales Volume) • Focusing on a specific industry • Ranking companies based on longevity within Lino Lakes • Identifying companies that have had City assistance in the past EDAC also recommended refining the comprehensive business inventory by looking at what assistance the City can offer companies. Kirsten also mentioned that another way to refine the comprehensive business inventory is by mapping the businesses to locate clusters throughout the City. PROJECT UPDATES Mr. Grochala provided an overview of ongoing projects throughout Lino Lakes. The owner of the 49 Club is reviewing the development agreement sent over by the City for demolition of the building. The developer of the Jenson property submitted concept designs however; the plans were not consistent with the planned use in the area. Mattamy Homes will likely submit plans at the end of January for the Watermark project; the development of 372 acres located in the northwest quadrat of I-35E and Main St. Storm water drainage is the main area of concern for the watermark project as feasibility studies are being conducted for the area. A development agreement has been reached with DR Horton for the property located in the Residential Block of Legacy at the Woods Edge. The North Oaks Company is reviewing their concept plans for the planned residential community located south of County Road J/Ash Street, west of CSAH 21/Centerville Road and north of Wilkinson Lake Boulevard. ADJOURNMENT The meeting was adjourned at 8:55 AM. CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES DATE: March 3, 2016 MEMBERS PRESENT: Nathan Vojtech, Chad Wagner, Don Johnson MEMBERS ABSENT: Lou Masonick, Thomas Colgan, Julie Schwartz, Rebecca Glewwe, Tami Wier OTHERS PRESENT: Michael Grochala, Kirsten Barsness APPROVAL OF MINUTES The approval of minutes was postponed until the next meeting. BUSINESS RETENTION & EXPANSION PROGRAM Kirsten Barsness, Development Consultant, discussed the BRE program business list. Ms. Barsness discussed in detail the evaluation process for the business list and the categories businesses were sorted into. Michael Grochala, Community Development Director, noted that the list may change slightly and discussed a few possible changes. EDAC members voiced observations on the list. Topics of conversation included: • Molin Concrete expansion • Growing companies to keep an eye on • Companies sharing space • Size of companies The "Next Steps" discussion outlined in the staff report has been postponed until more EDAC members are present for discussion. PROPOSED WAREHOUSE/DISTRIBUTION FACILITY — 35E CORRIDOR Mr. Grochala presented the staff report. Staff is looking for input from EDAC members. Main points of discussion included tax base, surrounding businesses, traffic, drainage, berming and landscaping, storage, and involvement with the City of Centerville. PROJECT UPDATES 1 Mr. Grochala provided updates on projects throughout Lino Lakes. Mr. Grochala announced that there will be a joint City Council and Advisory Board meeting on Wednesday, March 23, 2016 at 6:OOpm in the Council Chambers. ADJOURNMENT The meeting was adjourned at 9:02 AM. ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala EDAC MEETING DATE: April 7, 2016 TOPIC: 35E Distribution Center and Tax Increment Financing BACKGROUND As previously discussed staff has been working with United Properties on a proposed industrial warehousing/distribution facility along 35E. The facility would be approximately 410,000 square feet with a proposed value of 16 to 20 million dollars. The property is zoned L-I, Light Industrial. Warehouse and distribution facilities are a permitted use in this district. It is also anticipated that the applicant will request financial assistance in the form of Tax Increment Financing. Tax Increment Financing (TIF) TIF is a financing tool frequently used for economic development purposes. In simple terms TIF is a funding mechanism that uses the increased taxes paid by development (increment) to offset project development costs. It is often used to fund public improvements, write down land costs, or fund site development costs. The developer is reviewing project development costs and preparing an application for City review. At this time staff is interested in have a general discussion on the topic. Consideration of a Tax Increment Financing package will be based on both City TIF policy and our Business Subsidy requirements. ATTACHMENTS 1. Distribution Facility Concept Plan 2. TIF Explanation Handout 3. Lino Lakes TIF policy 4. 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DISTRIBUTION PARKING DATA 459,800 S.F. AT 1/2000 = 230 STALLS REQUIRED 338 STALLS DEMONSTRATED I � LU 1 Iw I< ILU V I L A M P E R T A R C H I T E C T S 420 Summit Avenue St. Paul, MN 55102 M PM1anv:]Z.]55.1211 Fax:]fi5.>5].IBL9 IvmpartBlvmpart—vreM1.evm ARCHITECT CERTIFICATION: I HEREBY r TIFY NAT THIS PLAN. SPECIFICATION OR REPORT WAS PREPARED BY ME OR UNDER MY DIRECT SUPERNSION AND TRAT I AM DULY LICENSED ARCHITECT N LAWS v\M,% TA. CIJ LE`��A�I \PE T��X4 1 66 v /`Ia"- IUNITEO �� j��_ PROPERTIES 3600 American BWd. W. Suit. 750 Bloomington, MN 55431 952-835-5300 W LU W c y Q U Z LU W U i Qt� LU Q W J J m U C,yrigFl 2015 I--- Lampert ArtM1llocle. P.A. Project Designer: JAMES 8 Drawn By. JRB Checked By. LL Revisions 11/2/15 PRELIMINARY SITE PLAN Sheet Number A 1 Project No. 151007-1 C� • e . y� n ��,. ?:y1 -- `► :.. _ �_� ray "�f,• I JA it lk es -. awaroff'o, Ila 77 - .r— MEN 11 € • MINE- M HOUSE RESEARCH Short Subjects Joel Michael Updated: October 2010 Tax Increment Financing What is TIF? Tax increment financing (TIF) uses the increased property taxes that a new real estate development generates to finance costs of the development. In Minnesota, TIF is used for two basic purposes: To induce or cause a development or redevelopment that otherwise would not occure.g., to convince a developer to build an office building, retail, industrial, or housing development that otherwise would not be constructed. To do so, the increased property taxes are used to pay for costs (e.g., land acquisition or site preparation) that the developer would normally pay. • To finance public infrastructure (streets, sewer, water, or parking facilities) that are related to the development. In some cases, the developer would be required to pay for this infrastructure through special assessments or other charges. In other cases, all taxpayers would pay through general city taxes. How does TIF When a new TIF district is created, the county auditor certifies (1) the current work? net tax capacity (i.e., property tax base) of the TIF district and (2) the local property tax rates. As the net tax capacity of the district increases, the property taxes (i.e., the "tax increment") paid by this increase in value is dedicated and paid to the development authority. The tax increment is limited to the tax derived from the certified tax rate. Increases in value that generate increment may be caused by construction of the development or by general inflation in property values. The authority uses the increment to pay qualifying costs (e.g., land acquisition, site preparation, and public infrastructure) that it has incurred for the TIF project. How is TIF used to There is a mismatch between when most TIF costs must be paid —at the pay "upfront" beginning of a development —and when increments are received —after the development costs? development is built and begins paying higher property taxes. Three basic financing techniques are used to finance these upfront costs: Bonds. The authority or municipality (city or county) may issue its bonds to pay these upfront costs and use increment to pay the bonds back. Often, extra bonds are issued to pay interest on the bonds ("capitalizing" interest) until increments begin to be received. Interfund loans. In some cases, the authority or city may advance money from its own funds (e.g., a development fund or sewer and water fund) and use the increments to reimburse the fund. Pay-as-you-go financing. The developer may pay the costs with its own funds. The increments, then, are used to reimburse the developer for these costs. This type of developer financing is often called "pay-as-you-go" or "pay -go" financing. What governmental Minnesota authorizes development authorities to use TIF. These authorities are units can use TIF? primarily housing and redevelopment authorities (HRAs), economic development authorities (EDAs), port authorities, and cities. In addition, the "municipality" (usually the city) in which the district is located must approve the TIF plan and some key TIF decisions. TIF uses the property taxes imposed by all types of local governments. But the school district and county, the two other major entities imposing property taxes, are generally limited to providing comments to the development authority and city on proposed uses of TIF. The state -imposed tax on commercial -industrial and seasonal -recreational properties is not captured by TIF. What is the but for Before an authority may create a TIF district, it and the city must make "but -for" test? findings that (1) the development would not occur without TIF assistance and (2) that the market value of the TIF development will be higher (after subtracting the value of the TIF assistance) than what would occur on the site, if TIF were not used. What types of TIF Minnesota allows several different types of TIF districts. The legal restrictions districts may be on how long increments may be collected, the sites that qualify, and the created? purposes for which increments may be used vary with the type of district. District type Use of Increment Maximum duration Redevelopment Redevelop blighted areas 25 years Renewal and renovation Redevelop areas with obsolete uses, not meeting blight test 15 years Economic development Encourage manufacturing and other footloose industries 8 years Housing Assist low- and moderate -income housing 25 years Soils Clean up contaminated sites 20 years Compact development Redevelop commercial areas with more dense developments 25 years How many TIF According to the 2010 report of the Office of State Auditor (OSA), there were districts exist? 2,048 active TIF districts in 2008. The graph shows the relative shares by type of district. Redevelopment (950) \ Economic Development (454) TIF Districts by Type in 2008 (2,048 districts) Housing Renewal (25) Special Laws (7) Soils (20) Pre-1979 (47) Source: 2010 Report of the State Auditor For more information: Contact legislative analyst Joel Michael at 651-296-5057. Also see the House Research web site for more information on TIF at www.house.mn/hrd/issinfo/tifmain.htm. The Research Department of the Minnesota House of Representatives is a nonpartisan office providing legislative, legal, and information services to the entire House. House Research Department 1 600 State Office Building I St. Paul, MN 55155I 651-296-6753 I www.house.mn/hrd/hrd.htm City of Lino Lakes, Minnesota TIF policy: 1. Prospects must qualify according to the City business subsidy selection criteria. 2. TIF will be used to pay qualifying reimbursable costs, which include special assessments, land write down, administrative fees, landscaping and site preparation. 3. Land write down will be based on a minimum of 10,000 square feet (or more) of facility per acre of land. 4. Each project will be self-sufficient within the allowable TIF capacity of the district. 5. TIF commitments will not exceed 16% of the estimated market value. 6. Administrative fees (upfront escrow) will be reimbursed using TIF funds at the completion of the project. 7. Assessments will be paid upfront in the Apollo Business Park to allow for a more expedient return of the city's investment in the park's improvements. 8. In other TIF districts, the subsidy for land and assessments will be on a pay-as-you-go basis. 9. If the subsidy includes upfront payments of assessments, the city will be reimbursed first from available increment. The grantee will receive its pay-as-you-go after the city is paid back. 10. The source of the 10% local contribution will be identified before the project is approved. (This local contribution requirement was eliminated by the legislature in 2001.) Exhibit A CITY OF LINO LAKES BUSINESS SUBSIDY CRITERIA (Revised June 23, 2003) Section 1. Purpose; Statutory Compliance 1.01 The purpose of this document is to establish the criteria to be considered by the city of Lino Lakes (the "City") in processing, evaluating and reviewing requests for business subsidies. It is the intent of the City in adopting these revised criteria to comply with Minnesota Statutes, Sections 116J.993 through 116J.995 (the "Act"). The City hereby adopts the definitions contained in the Act for application in the criteria. 1.02. Business subsidy criteria were adopted by the City on July 23, 2001 and are hereby revised. The City has the option to amend these criteria again in the future if doing so is determined necessary or appropriate. Amendments to these criteria are subject to the public hearing requirements of the Act. 1.03. These criteria are intended to set specific minimum requirements which recipients must meet to be eligible to receive business subsidies. The City will not adopt business subsidy criteria on a case by case basis. 1.04. In accordance with the Act, all business subsidy requests must comply with the Act and other applicable Minnesota statutes. The City's ability to grant business subsidies is subject to the limitations established in the Act. Section 2. Goals and Objectives 2.01 It is the City's intent to advance the following goals and objectives in granting business subsidies: (a) Projects must be consistent with Lino Lakes' comprehensive plan and any other similar plan or guide for development of the community. (b) Business subsidies will not be provided for projects which have the financial feasibility to proceed without a public subsidy. (c) Potential recipients will be required to provide such studies, reports, appraisals, financial information or other data as may be requested by the City prior to consideration of a request for a business subsidy. 2.02 Business subsidies must be justified by evidence that the project cannot proceed without the benefit of the subsidy. If tax increment financing is used to grant a subsidy, the recipient must demonstrate compliance with all statutory RHB-232656vt 1 LN140-12 requirements of the TIF Act, including the "but for" test, and any TIF policy adopted by the City. The recipient will be required to provide all documentation necessary for the City to make the requisite fundings under the TIF Act and the Act. 2.03 Recipients will be required to enter into an agreement with the City which is consistent with statutory requirements and which contains measurable, specific and tangible goals. The agreement must include a commitment to remain in business in Lino Lakes for a minimum of five years after the benefit date, unless waived by the City, and a requirement to comply with the specific job and wage goals established for the project, if any. Section 3. Business Subsidy Criteria 3.01 The City recognizes that every proposal is unique. Nothing in these criteria shall be deemed to be an entitlement or to establish a contractual right to a subsidy. The City may modify these criteria from time to time and reserves the right to evaluate each project on its individual merits. The City may deviate from these criteria by documenting in writing the reason for the deviation and attaching a copy of the document to its next annual report to the Minnesota state agency charged with administration thereof. 3.02 The following criteria shall be utilized in evaluating a request for a business subsidy: (a) Public purpose. A business subsidy must meet a public purpose, including but not limited to increasing the tax base. Job retention may only be considered a public purpose if the loss of jobs is specific and demonstrable. (b) Increase in tax base. While an increase in the tax base cannot be the sole rounds for granting a subsidy, the City believes it is a necessary condition for any subsidy. (c) Jobs and Wages. In instances in which job creation is determined to be a goal, it is the City's intent that the recipient create the maximum number of livable wage jobs at the site. This may include jobs to be retained but only if retention is specific and demonstrable. The job and wage goal must be attained within two years of the benefit date. The City may, after a public hearing, extend for up to one year the period for meeting the job and wage goal. Qualifying jobs are those which pay, at a minimum, 110 percent of the federal minimum wage, plus benefits. Any deviation from the established wage level must be documented in conformity with the requirements set forth in the Act. If the City, following a public hearing, determines that job creation or retention is not part of the public purpose of the subsidy, the wage and job goal may be set at zero. xxs-232656v1 2 LN140-12 (d) Economic Development. Projects should promote one or more of the following: 1. Encourage economic and commercial diversity within the community; 2. Contribute to the establishment of a critical mass of commercial development within an area; 3. Increase the range of goods and services available or encourage fast growing or other desirable businesses to locate or expand within the community; 4. Promote redevelopment objectives and removal of blight, including pollution cleanup; 5. Promote the retention or adaptive reuse of buildings of historical or architectural significance; 6. Promote additional or spin-off development within the community; or 7. Encourage full utilization of existing or planned infrastructure improvements. Section 4. Minimum Requirements 4.01. In order for a recipient to be eligible for a business subsidy, the following minimum requirements must be met; (a) Compliance with Sections 2.01 a, b, and c; (b) Compliance with Section 3.02 b; and (c) Compliance with Sections 3.02 c or d. Section 5. Compliance and Reporting Requirements 5.01 Any subsidy granted by the City will be subject to the requirement of a public hearing, if necessary. 5.02 It will be necessary for both the recipient and the City to comply with reporting and monitoring requirements of the Act. 5.03 A recipient may be authorized to move from Lino Lakes within five years of the benefit date only if, after a public hearing, the City approves the request to move. x1B-232656v1 3 LN140-12 ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3B STAFF ORIGINATOR: Michael Grochala EDAC MEETING DATE: April 7, 2016 TOPIC: 49 Club Demo BACKGROUND The 49 Club, located at the corner of Hodgson Road and County Road J, has been vacant since approximately 2003. The site has become a blighted location with illegal dumping and vandalism taking place on a regular basis. The city has received numerous complaints regarding the property. The site has been the topic, along with the neighboring 17 acre Jensen property, of several development proposals. However, none have advanced past the concept phase due to a number of complicating factors including the need for public improvements, multiple property owners, and council concern over the intensity of prior commercial development proposals. Staff has been recently working with the owner of the property regarding potential demolition of the building. The owner is proposing to complete the demolition this spring. Staff is very interested in this project as a means to clean up the site, eliminate the blight and assist redevelopment efforts. However, removal of the building has the potential to eliminate one of the financial tools available to assist with redevelopment. The use of Tax Increment Financing (TIF) has previously been discussed to help offset utility, road or land assemblage costs to facility redevelopment of the corner. In order to establish a TIF District after demolition, the request for certification of the TIF District must be filed with the County within three years of the parcel being occupied by a substandard building. An actual project would need to occur within 4 years or the site would be dropped from the district and no longer eligible for TIF. To retain our ability to use TIF staff has listed out the steps that the EDA/City would need to follow in order to demolish a building prior to a redevelopment TIF District being established: 1) The EDA Board finds by resolution (adopted before demolition) that the parcel was occupied by a structurally substandard building and that after demolition and clearance the EDA intends to include the parcel within a TIF district; 2) The City Council adopts resolution and makes blight findings regarding the building (based on report); 3) EDA Board adopts resolution approving a preliminary development agreement with the owner regarding future redevelopment of the site. Staff did retain the services of LHB Corporation to determine the eligibility of the property for TIF purposes and to document the condition of the building. The report verifies that the building is substandard and meets the TIF district eligibility requirements. ATTACHMENTS 1. Draft Preliminary Development Agreement 2 PRELIMINARY DEVELOPMENT AGREEMENT THIS PRELIMINARY DEVELOPMENT AGREEMENT (this "Agreement"), dated this day of , 2016, by and between the Lino Lakes Economic Development Authority, a municipal corporation and political subdivision under the laws of the State of Minnesota (the "EDA") and DM Land, LLC, a Minnesota limited liability company, or its successors or assigns (the "Developer"): WITNESSETH WHEREAS, the EDA desires to promote redevelopment of property known as the 49 Club Site, located in the City of Lino Lakes, and legally described in Exhibit A (the "Property'); and WHEREAS, the Developer owns the Property and intends to demolish the restaurant building and garage currently located on the Property; and WHEREAS, pursuant to a report from LHB, dated March 27, 2015, the buildings are in substandard condition; and WHEREAS, by resolution adopted on the date hereof, the EDA Board has found the buildings located on the Property to be structurally substandard within the meaning of Minnesota Statutes, Section 469.174, subd. 10; and WHEREAS, the EDA and the Developer have determined that is in the best interest of the parties to demolish the existing building and agree to cooperate with respect to potential future redevelopment of the Property, all as further described in this Agreement; NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations set forth herein, the parties agree as follows: shall: 1. During the term of this Agreement, the Developer (or its successors and assigns) (a) At no cost to the EDA, cause the existing buildings on the Property to be demolished and all demolition debris to be removed from the Property as soon as reasonably practicable after the date of this Agreement. The parties agree that such demolition shall occur no later than July 31, 2016. (b) Maintain the Property in compliance with City ordinances. (c) If the Developer determines not to undertake redevelopment of the Property directly, it will use its best efforts to seek a successor entity that will proceed with such redevelopment. (d) Negotiate in good faith with the EDA regarding any proposed 445151v1 JAE WA445-15 redevelopment of the Property, including any possible public financial assistance related thereof, all with the goal of entering into a contract for private redevelopment (the "Contract"). 2. During the term of this Agreement, the EDA agrees to: (a) Review any proposed successor to the Developer, and if the EDA determines to approve that successor, thereafter cooperate with the successor as the Developer under this Agreement. (b) Cooperate with the Developer or its successor in evaluating any redevelopment proposal submitted by the Developer, including whether any public financial assistance is warranted in connection with that effort. (c) Proceed to seek all necessary information with regard to the anticipated public costs associated with any proposed redevelopment. (d) If the EDA determines that tax increment assistance is reasonably necessary in order to induce the proposed redevelopment of the Property, with the Developer's assistance, begin the process to create a redevelopment, a housing or a renewal and renovation tax increment financing district encompassing the Property, including the preparation of a tax increment financing plan, pursuant to Minnesota Statutes, Sections 469.174 through 469.1799, as amended (collectively, the "TIF Act"); provided that parties agree and understand that the EDA must file a request for certification of such a tax increment financing district within three years after the date of demolition of the building on the Property, unless Section 469.174, subd. 10(d) is hereafter amended to extend that time period. (e) Negotiate in good faith with the Developer or a successor regarding any proposed redevelopment of the Property, including any possible public financial assistance related thereto, all with the goal of entering into a Contract. 3. It is expressly understood that execution and implementation of the Contract shall be subject to: (a) A determination by the EDA in its sole discretion that its undertakings are feasible based on (i) the projected tax increment revenues and any other revenues designated by the EDA; (ii) the purposes and objectives of any tax increment, development, or other plan created or proposed for the purpose of providing financial assistance for the Redevelopment; and (iii) the best interests of the EDA. (b) A determination by the EDA that any EDA financial assistance is reasonably necessary in order to make the Redevelopment financially feasible. (c) A determination by the Developer or its successor that the Redevelopment is economically feasible and in the best interests of the Developer or his successor. 445151v1 JAE WA445-15 2 4. This Agreement is effective from the date hereof through December 31, 2017. After such date, neither party shall have any obligation hereunder except as expressly set forth to the contrary herein. Notwithstanding anything to the contrary herein, the term of this Agreement may be extended by mutual written agreement of the parties, provided that the EDA's approval of such extension may be given by the EDA Executive Director. 5. The Developer shall solely be responsible for all costs incurred by the Developer, and the EDA shall be solely responsible for all costs incurred by the EDA, in connection with the negotiation and drafting of this Agreement and the parties obligations hereunder. 6. This Agreement may be terminated upon ten (10) days written notice by either party to the other of any of the following events of default, only if such events of default shall remain uncured during the aforementioned notice period: (a) an essential precondition to the execution of the Contract cannot be met; or (b) if, in the sole discretion of the EDA, an impasse has been reached in the negotiation or implementation of any material term or condition of this Agreement or the Contract; or 7. If any portion of this Agreement is held invalid by a court of competent jurisdiction, such decision shall not affect the validity of any remaining portion of the Agreement. 8. In the event any covenant contained in this Agreement should be breached by one party and subsequently waived by another 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. This Agreement may not be amended nor any of its terms modified except by a writing authorized and executed by all parties hereto. 9. Notice or demand or other communication between or among the parties shall be sufficiently given if sent by mail, postage prepaid, return receipt requested or delivered personally: (a) As to the EDA: Lino Lakes Economic Development Authority Lino Lakes City Hall 600 Town Center Pkwy Lino Lakes, NIN 55014-1182 Attn: Community Development Director 445151v1 JAE WA445-15 (b) As to the Developer: DM Land, LLC 14814 102" d Street Circle N Stillwater, MN 55082 Attn: Damon K. Lawson 10. This Agreement may be executed simultaneously in any number of counterparts, all of which shall constitute one and the same instrument. 11. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 445151v1 JAE WA445-15 4 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day and year first above written. LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY Its President Its Executive Director DM LAND, LLC Damon K. Lawson Its 476746v1 JAE LN140-114 S-1 EXHIBIT A DESCRIPTION OF PROPERTY Parcel A Address: 6007 Hodgson Road, Lino Lakes, Minnesota PID: 31-31-22-43-0007 Parcel B Address: 295 Ash Street, Lino Lakes, Minnesota PID: 31-31-22-43-0006 Parcel C Address: [no street address] PID: 31-31-22-43-0017 476746v1 JAE LN140-114 A-1